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CORPORATE SOCIAL RESPONSIBILITY REPORT
To Create Wonderful World
2014Tianma Microelectronics Co., Ltd.
Tianma Microelectronics Co., Ltd.
February 2015
Corporate Social Responsibility Report 2014
2
Brief introductionEvery year since 2012, Tianma has issued the corporate social responsibility (CSR) report to the
public, for the purpose of disclosing its ideas and activities regarding social responsibility. This
report is the third annual Corporate Social Responsibility (CSR) report of Tianma Microelectronics
Co., Ltd., which is aimed to provide stakeholders information regarding corporate actions and
performance in terms of economic, social and environmental affairs. In the meanwhile, we want to
take this chance to say thanks to all who have made suggestions to the completion of the report. We
will continue the follow-up efforts to improve the quality of corporate social responsibility report.
Content definition This report is based on the principles of the substantiality, stakeholder participation as well as
sustainable development under Global Reporting Initiative (Global Reporting Initiative, referred
GRI) guideline. We have identified the key stakeholders following a comprehensive analysis and
evaluation of the business operating environment. We have communicated and conducted dialogues
with stakeholders through a questionnaire to collect their concerns and needs, and prioritize
the list as well. After evaluation, the disclosing items, content and indicators of the report have
been finally confirmed. The disclosed Tianma 2013 CSR indicators have never been revised.
Data collectionTo effectively show the content and performance of 2014 company's GRI indicators in terms of economic,
environmental and society Etc., According to the state quo of the company. We selected 34 general
standard disclosures and 31 specific standard disclosures under G4 standard. According to the selected
indicators, the company has conducted an on-site investigate and survey, for example on-site surveys,
employee interviews, information consulting, and on-site observations etc., to determine the scope of
the report and extent of data collection, and find ways to improve the collection and calculation methods.
ScopeUnless otherwise stated, the organizational scope of this report covers all entities which
the company has control of or significant impact upon, such as financial and operation
policies and measures, and are consistent with the scope of the company's annual report.
(The boundaries of part of the indicators may be different. See the remarks for details.)
Compiling basisThis report made reference to Global Reporting Initiative, GRI "sustainability reporting
guidelines version 4.0"(G4), and prepared according to the core option.
Expressions statementFor convenient expression and reading," Tianma Microelectronics Co., Ltd." Will be referred
to as "the company", "Tianma", "Shenzhen industrial base" or "we" in the report.
This report has both online version and the print version, online version can be read at
Tianma Microelectronics co., Ltd. Website www.tianma.cn
Tel: (86)755-8622 5773 / 8622 5777 Fax: (86) 755 - 8622 5772 E-mail: [email protected]
Reporting Period
Jan. 1st - December
31st, 2014
Reporting Cycle
Once a year
ABouT ThiS REPoRT
3
ConTEnTS
P04/ Message from the Chairman and General Manager
·Company overview
·Chronicle of TIANMA events
·Corporate governance and decision-making systems
·CSR management system
·Stakeholder communication and response
P06/ About the company
P85/ Appendix
·Human rights and fair treatment
·Employee care
·Training and career development
·Remuneration and welfare
P56/ For the Employees·Environmental protection
·Eco-friendly operation
·Hazardous substance management
P44/ For the Environment
·Financial performance
·Business development
·Investor relations
P36/ For the Shareholders·Compliance operation
·Business ethics management
P24/ For the Government
·Technological development
and innovation
·Supplier management
·Customer relations
P68/ For the Partners·Serve the community
P78/ For the Community
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MESSAgE FRoM ThE ChAiRMAn AnD gEnERAL MAnAgER
Tianma supports a wide range of applications in mobile terminals,
vehicle-mounted devices, medical equipment, and industrial control
equipment, aiming at becoming a world's leading display company
respected by the society and loved by the employees. Over the
past year, facing the opportunities and challenges from the external
market, the whole company worked as one, sparing no effort to seize
market opportunities, develop major accounts, and focus on product
transformation. Base on the win-win relationship with whole industry
chain and all stakeholders. We expanded the market share, improved
the industrial position of the company, and constantly created
considerable profits.
The past year is a year of honor. First, the A-Si LCMs for
smartphones, topped the list of worldwide sales. Seeing a continuous
expansion in the middle and high-end markets, the products captured
the biggest market shares in the market segments concerning high-
end medical equipment, HMI, aero-entertainment, navigation and
measurement, laying a solid market foundation for building Tianma
into a world's leading brand. Second, with great achievements in
helping customers make successes, we were heavily awarded,
Brand image has been improved significantly. With awards covering
the Award of Global Best Partner, Best Service Award, Diamond
Award, Best Delivery & Support Award, Perfect Quality Award,
Core Supplier Award, Supplier Quality Award, Excellent Supplier
Strategy Cooperation Award, and so on, which laid a solid customer
foundation for building Tianma into a world's leading brand. Third,
our performance in CSR system construction was recognized by the
society. In 2014, Tianma ranked 24 on the list of "2013 Top 100 Listed
Companies in Social Responsibility Development in china", and held
the 7th position on the list of the "2013 Top 20 Listed Companies in
Social Responsibility Development in Guangdong".
The past year is a year of rapid growth. And to becoming a world's
leading enterprise. Tianma has done well in terms of industrial
layout. On the one hand, through the restructuring of major assets,
the equities of the production line jointly built by Tianma and the
local government were injected into the listed company. As a result,
the market capitalization, asset size, core competitiveness, risk
resistance capacity, and profitability of the listed company were
greatly increased, which indicates that more values were created for
the shareholders. On the other hand, to bear the social responsibility
as an industry leader, Tianma was active in building new production
lines. At present, the construction of the G5.5 AM-OLED mass
production line is in smooth progress, and the building of G6 LTPS
production line is in the works. Tianma has more actively fulfilled its
social responsibility.
The past year is a year of harvest in "innovation" and "science and
technology". Through technological progress and product application
innovation, Tianma created surprises one after another, reversing
people's understanding of traditional manufacturing. In terms of
technological progress, it developed a wide range of techniques,
including LTPS-TFT, Oxide-TFT, AM-OLED displays technology,
flexible displays, see-through displays, 3D displays, IN-CELL/
ON-CELL integrated touch screens. In terms of product R&D, as
a forerunner in the industry, we helped our customers realize the
world premieres of a number of products. Besides, the LTPS-TFT
developed by us was widely recognized by many famous brands, and
the "4.0 inch in-cell Capacitive Touch Panel", a key technological
innovation project of the company, won the title of "National Key New
Product" from the Ministry of Science and Technology.
Based on the core values of "Passion, Efficiency and win-win",
we created an upbeat and positive corporate cultural environment.
Various activities such as learning and sharing were conducted
to help the staff have a good understanding of the core values of
Tianma, and put these values in practice. From recruitment and
remuneration incentives, to performance assessment, promotion,
and awarding, the core values were injected into each link of the
company. For example, to award and motivate excellent teams and
individuals with great contributions to the company, Tianma held the
"Star of Sense of Value", and annual excellent teams and individuals
awarding activities. In addition, the company conducted a series of
cultural activities, for the purpose of guiding the staff to go ahead
towards the correct position. The healthy and positive corporate
environment played an effective role in enhancing the cohesion and
competitiveness of the company.
We made rapid progress in the implementation of corporate
cultural and talent development strategies. According to the
globally competitive strategic goals regarding talent development, it
developed the management standard of three types of core talents,
namely, key management talents, backbone technical talents, and
core professional talents, and built a echeloned talent pool through
Passion · Efficiency · Win-win
5
assessing, identifying and developing the core talents of the company.
Developing the leadership of the management talents is a focus
of Tianma's talent development plan. The "Roc Program" aiming
at middle managements who have High potential and the "LAMP
Series" training program aiming at middle and basic management
were conducted to accelerate the promotion of the leadership of
management. Company managers In terms of career development,
a position system integrating the "management sequence, technical
sequence, professional sequence and operating sequence" was
built to pave a straight road for the individual development of the
employees. And at the same time, a classified and layered promotion
assessment system was built based on the talent strategies and
core values of the company, for the purpose of matching employees
with positions, raising their enthusiasm and morale, and enhancing
the strength of the talents. Performance management reform is also
a part of the talent strategy. In line with its development strategy,
innovative idea, improvement requirements, and core values, the
company conducted a performance management reform, through
which, the leadership of the management, as well as the organizing
capacity and profitability of the company was continually increased.
To create a better working and living environment for employees, the
company built professional management platforms according to the
needs of employees in eating, accommodation, travel and working,
and the requirements of environmental protection. In addition, a
variety of activities, like sports games, singing contests and get-
togethers, were organized, forming a characteristic corporate cultural
environment in which everyone in Tianma works and lives happily.
As a corporate citizen, Tianma has never forgotten the responsibility
of promoting harmonious economic, social and environmental
development. Following the concept of "eco-friendly and harmonious
development", we have been engaged in realizing "green
manufacture". To save and improve the efficiency of resources,
a number of measures relating to energy saving, water saving,
comprehensive resource utilization, and resource recycling were
taken from a long-term perspective. In 2014, more subsidiaries
were covered by the ISO50001,and ISO14064,Clean energy was
actively used; a series of energy saving strategies and plans were
developed to lower energy consumption and reduce greenhouse
gas emission; eco-friendly materials were used to reduce the
generation and discharge of wastes; and continuous investment
was put into energy conservation and emissions reduction facilities,
environmental detection, and the treatment of waste gas, waste
water and solid waste. Occupational health, safety management and
risk management were still the focuses of the company, and more
efforts of risk management were put into ensuring intrinsic safety and
production line, so as to realize harmonious development of corporate
benefits, employee values, social benefits and environmental benefits.
In the future,tianma wil aim at becoming a world's leading innovative
technical company,and keep pushing forward its systematic
improvement in technology, culture, management and operation.To
progress faster in the future, we will increase investment in technical
R&D and innovation, while cooperating closer with upstream and
downstream business partners to expand market share. On the road
of sustainable development, Tianma, sticking to the goal of becoming
an excellent corporate citizen in the world, will join hands with our
stakeholders like business partners, employees, shareholders, as well
as environment, community and government, to build a brighter future
when more people can taste the fruits of technological innovation.
Passion · Efficiency · Win-win
Chairman
You Lei
General Manager
Liu Jingyu
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our Mission
To Create A Wonderful World
our Vision
Being the world's leading display company respected by the society and loved by the employees.
ABouT ThE CoMPAny
our Values
Passion·Positive attitude, openness, sharing
·Respect people, develop people, provide the platform of
development for employees with willingness and capability
·Fair, open, justice and brainstorming environments
Efficiency·Set clear goals
·Maximize corporate values as a whole
·Responsibility and quality
·Simplified and value-added work process
Win-win·Win-win with employees: helping employees to realize
their dreams, enjoy work and enjoy life
·Win-win with customers: Helping Our customers to
succeed
·Win-win with shareholders: Continuously creating value
for our shareholders
·Win-win with our business partners
Be a responsible corporation to society
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Tianma's people Tianma's strength
Tianma's image
·Honesty , sincerity, integrity
·Strive to practice the values
·Managers transfer positive energy, shouldering
responsibility for the healthy growth of team members
·Active, enthusiastic service
·Through cultural and talent strategy, quality strategy,
product and technology leadership strategy
to promote and enhance organizational capacity
·Information disclosure: VI, website
·Exhibitions & press conference: the administrative
system of entire company and other functional systems
Brand strategy
R&D Supply chain
Quality of workManufacture
Focus on the mass production of middle and high-end
smartphones and professional displays product
Care and meet customer demands, improve supplier
quality, support core business development
Pay attention to the normalized operating standards,
optimize the tache of process which is lengthy and not
value-added, create an efficient and positive learning
organization, and build high-quality combat-worthy
teams
Focus on the manufacturing capacity and quality
management system of middle and high-end
smartphones and professional displays product
Quality strategy
Marketing Supply chain supply
Manufacturing capacity
R&D technology
Pay close attention to target customer market
strategy; participate in the planning of customer
products in advance; focus on target customers'
middle and high-end smartphones market; improve
the market permeability of major products
Create a stable, flexible supply chain to meet the
company's core business needs, and actively cultivate
strategic business partners
Learn global excellent factories, looking for gaps, build
optimal production lines and the industry-leading ability
to achieve products.Reserve forward-looking technology, Lead the trend
and plan according to available resources, focus on
competitive smartphones products and professional
display areas.
Product & technology
leadership strategy
Passion Creativity Initiative Knowledge Diligence Obedience
35% 25% 20% 15% 5% 0%
·Talent review, and echelon construction
·Ability Cultivation of middle-level, grass-roots staff
·The development of top management leadership
·Respect and cultivate employees·Bring employees' potential into full play·Help employees fulfill their dreams
·Implant the core values in the behaviors of employees
·Let core values guide our work effectively
·Put corporate culture into practice
Cultural
& talent strategy
Strategic goals
Orientation: a world's leading innovative,
Growth high-tech company
Goal: a world's leading display producer
Business strategies
Consumer business
High-end mobile smart terminals
Key words: leading mass
production,leading technology.
Professional display business
A world's leading display producer
Key words: high quality; market leader
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
8
industry bases
Business scope
The company is engaged in the design, production and sales of LCDs and related materials,
equipment and products; technical development, consulting, service and transfer related to
LCDs; ordinary freight transport; information technology & consulting service; the sales of
LCDs and related materials as an agent; the leasing of mechanical equipment and self-owned
properties (to the exclusion of financial leasing); and export & import businesses (businesses
forbidden by laws, administrative regulations and the State Council are not included, and
limited businesses are conducted upon administrative approval).
Main products
The company focuses on the consumer market of mobile terminal displays, and the market
of professional displays employed in vehicle-mounted devices, medical equipment, and
industrial control equipment. Displays for the two markets are widely used in the production
of smartphones, tablet PCs, vehicle-mounted devices, medical equipment, industrial
instruments, wearable smart devices, smart furnishing, and so on.
30%
Company name (Chinese)
天马微电子股份有限公司
Company name (English)
TIANMA MICROELECTRONICS CO.,LTD.
Legal representative
You Lei
Registered address
South Section, 22/F, Hangdu Building, CATIC, Middle Shennan Road, Shenzhen, China
Main office address
7/F, 64th Building, Jialong Industrial Zone, Majialong, Nanshan District, Shenzhen, China
Time of registration
November 8, 1983
Business area
Mainland China, Hong Kong, Japan, US, Korea and so on
ownership nature
Listed company
Stock exchange
Shenzhen Stock Exchange
Change of operation location or business
During the reporting period, Wuhan in mainland, and Japan were added as operation locations.
Company profile
Tianma Microelectronics Co., ltd., founded
in 1983 and listed on the Shenzhen Stock
Exchange (ShenTianma A; 000050) in
1995, is an innovative high-tech company
specializing in providing LCD solutions and
fast service support to our customers around
the world.
Tianma Microelectronics Co., Ltd. ("the company" or "Shenzhen industrial base" in short)
Shanghai Tianma Microelectronics Co., Ltd. ("Shanghai Tianma" or "Shanghai G4.5 industrial base" in short)
Chengdu Tianma Microelectronics Co., Ltd. ("Chengdu Tianma" or "Chengdu G4.5industrial base" in short)
Shanghai AViC optoelectronics Co., Ltd. ("AVIC Optoelectronics" or "Shanghai G5industrial base" in short)
Wuhan Tianma Microelectronics Co., Ltd. ("Wuhan Tianma" or "Wuhan industrial base" in short)
nLT Technologies, Ltd. ("NLT" in short)
CoMPAny oVERViEW
21,684.11million
100%
14.31% 14.31%
100%
35.63%
39.37%
6.88% 7.16%25.76%
62.52% 8.86%
State-owned Assets Supervision and Administration Commission of the State Council
AVIC International Shenzhen Co., Ltd.
AVIC International Holdings Limited
AVIC International Holding Corporation
Tianma Microelectronics Co., Ltd.
National Council for Social Security
Fund
Beijing Plateau Hanhua Equity Investment Fund (limited
partnership)
Aviation Industry
Corporation of China
AVIC CCB Aviation Industry Equity Investment (Tianjin)
Co., Ltd.
Equity & control relationship between the company and its controlling shareholders
Remarks: the "five companies in four cities" refer to Tianma Microelectronics Co., Ltd.,
Shanghai Tianma Microelectronics Co., Ltd., Chengdu Tianma Microelectronics Co., Ltd.,
Shanghai AVIC Optoelectronics Co., Ltd. and Wuhan Tianma Microelectronics Co., Ltd.
Total market value
9
organizational Chart
Tianma Micro-Electronics (USA) Inc. (TMUSA)
Tianma Micro-Electronics Korea Co., Ltd. (TMK)
Tianma Europe GmbH (TME)
Tianma NLT America Inc. (TNA)
Achievement Electronics Limited
Tianma Microelectronics Co., Ltd.
General Manager
Consumer GoodsBusiness Division
Professional Display Business Division
R&
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Shanghai Tianma Microelectronics Co., ltd
Chengdu Tianma Microelectronics Co., ltd.
Wuhan Tianma Microelectronics Co., ltd.
Shanghai AVIC Optoelectronics Co., ltd.
NLT Technologies, Ltd.
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
10
gLoBAL TEChniCAL SERViCE PLATFoRMS
We have built industrial bases in Shenzhen, Shanghai, Chengdu,
Wuhan and Japan, and have set up global technical service platforms
in major developed countries and regions like the USA, Korea,
Europe and Hong Kong.
11
Chengdu Tianma Microelectronics Co., ltd.
Wuhan Tianma Microelectronics Co., ltd.
Shanghai Tianma Microelectronics Co., ltd.
Shanghai AViC optoelectronics Co., ltd.
Tianma Micro-Electronics Korea Co., Ltd.
(TMK)
nLT Technologies, Ltd.
Achievement Electronics Limited
Tianma nLT America inc. (TnA)
Tianma Micro-Electronics (uSA) inc.
(TMuSA)
Tianma Europe gmbh (TME)
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
Tianma Microelectronics Co., Ltd.
12
In November, Tianma was founded.
In November, Tianma built the first LCD production line in China.
In March, Shenzhen Tianma (ShenTianma A; 000050) was listed on the Shenzhen Stock Exchange.
In August, the STN-LCD developed by Tianma won the first prize of the Award for Scientific and Technical Progress in Shenzhen.
In July, Tianma was selected as the Vice Presidency of the First of Board of Directors of the China Optics and Optoelectronics Manufactures Association LCD Branch.
In August, Tianma obtained the Certificate of High-tech Enterprise issued by the National Science and Technology Council.
1983
1995
1996
In January, Tianma won the titles of "Top 50 Excellent Export-oriented Enterprises in Shenzhen" and "AVIC Advanced Foreign Exchange-earning Enterprise".
In March, Tianma invested 6 million dollars to import middle and high-grade TN-LCD production lines from Japan.
In February, the "640×400 Black-and-white and Color LCDs" high-tech project was approved, which filled a domestic gap.
In August, the high tech project was listed as a National "8th Five-Year Plan" Scientific Research Project and a Key Construction Project of Shenzhen.
In January, Tianjun Microelectronics Co., Ltd. was set up.
In November, Tianma undertook the Winter LCD Seminar of China.
1988
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1990~1999
1983~1989
hiSToRiCAL EVEnTS
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In July, Tianma was approved by the Bureau of Science and Technology and Bureau of Planning to set up the Shenzhen LCD Engineering Technology Research Center.
In December, Tianma undertook the FPD China.
In December, Tianma Postdoctoral Research Station was set up, and saw the coming of its first post doctor.
In August, Tianma passed the onsite assessment of TUV Rheinland, obtaining the ISO14001 Certificate.
In April, Shanghai Tianma was founded.
In July, the "Color STN LCD Project" was listed as a 2005 National New Product Planned Project. Besides, it won the grand prize of the Award for Scientific and Technical Progress in Longgang District, Shenzhen, and the first prize of the Award for Scientific and Technical Progress in Shenzhen. In October, Tianma appeared on the list of Top 100 Enterprises in Shenzhen.
In March, Shanghai Tianma TFT Plant was built, and the first G4.5 TFT production line with independent intellectual property in China was built.
In September, Chengdu Tianma was founded.
In December, "Tianma" was rated as a famous brand of Guangdong.
In November, the "National Engineering Lab for TFT-LCD Key Materials and Technology" Project jointly undertaken by Shanghai Tianma, Shanghai Jiaotong University, Shanghai Fudan University and Shanghai University was approved by the National Development and Reform Commission.
In July, Tianma became the first domestic mass producer of transflective TVA wide-viewing angle LCDs, and the IPS wide-viewing angle color LCM was successfully produced.
In September, Chengdu Tianma successfully trial-produced the 3.2&3.5 mixed organic film VA LCDs, which filled a domestic technical gap.
In April, Chengdu Tianma was titled as "Safe Production Enterprise 2010" by the police station and committee for comprehensive management of public security of the Chengdu High-tech Industrial Zone.
In November, Tianma was included in the National Torch Program as a key high-tech enterprise.
In December, Tianma won the title of "Model Enterprise in the National Transformation and Upgrading of the Processing Industry" for the first time.
In September, Chengdu Tianma participated in the 13th Western China International Fair 2012 for the first time.
In August, the technical similar of the "Basic Research of New High-resolution 3D Display and System" under the National Program on Key Basic Research Projects ("973" Program) was held in Shanghai Tianma. As the principal investigator and the only enterprise included in the project, Shanghai Tianma was responsible for the applied research of 3D displays.
In September, the "Integrated Capacitive Touch Screen R&D and Industrialization" Project undertaken by Tianma won the second prize of the CSAA Technology Awards.
In October, the "4.0 inch in-cell Capacitive Touch Panel" developed by Shanghai Tianma won the title of "National Key New Product" given by the Ministry of Science and Technology.
In March, Tianma participated in the 1st China Information Technology Expo, at which, its 12-inch AMOLED won the gold award of the 1st CITE Innovative Product Development & Application Awards.
In April, Shanghai Tianma undertook a "973" project, becoming the first enterprise included in the "973" Program.
In May, Tianma participated in the 6th Shenzhen International Touch Screen Technology & Equipment Expo, at which, it won the title of "Top 10 Famous Brands of the Touch Screen Industry".
In November, Shanghai Tianma won the title of "State Recognized Corporate Technical Research Center".
In November, Tianma celebrated its 30th anniversary.
In December, Shanghai Tianma was rated as a proposed CSR enterprise in the Shanghai Pudong New Area.
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For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
14
According to the requirements of relevant laws and regulations, the company spared no effort in
improving corporate governance system, and building standard corporate governance body and
decision making system. During the reporting period, the company further defined the scopes of
responsibilities and power in terms of decision making, execution and supervision, for the purpose
of forming scientific and effective systems concerning the segregation, as well as the checks &
balances of responsibility, thus ensuring the standard operation of the Shareholders' Meeting,
Board of Directors, and Board of Supervisors, and protecting the legal rights and interests of our
shareholders, especially the minority shareholders.
goVERnoRS AnD DECiSion MAKERS
15
The corporate governance body comprises the Shareholders' Meeting, Board
of Directors, and Board of Supervisors. The Board of Directors and Board of
Supervisors are formed in accordance with the requirements of relevant laws,
regulations and the Articles of Association, and the members thereof can all, in
line with their duties and responsibilities, exercise the power of decision making,
of execution, and of supervision in an earnest, honest and diligent manner,
effective protecting the interests and rights of the company and the shareholders.
The Board of Directors is the executive body of the company. It's composed
of 9 members, including 1 chairman, 1 deputy chairman, 4 directors and 3
independent directors. Among them, 1 is female, and the rest are male. The
average age of the board members is above 30. The ages of 2 persons fall in
between 30-40, of 4 persons fall in between 41-50, and of 3 persons are above
51. Besides, 2 members are of the doctor's degree, and 6 members are of the
master's degree. Pursuant to the Rules and Procedures for the Meeting of the
Board of Directors and the Regulations Governing Independent Directors, the
board members earnestly fulfill their responsibilities and duties. At the meetings
of the board, they always fully express their opinions and exchange ideas. In
addition, the independent directors, in line with relevant laws and regulations,
seriously perform their duties and responsibilities, participate in making major
decisions, and independently express their opinions on major events, for the
purpose of protecting the interests and rights of the company as a whole,
especially the legal interests and rights of the minority shareholders.
The Board of Directors, accountable to the Shareholders of Meeting, holds
meetings in line with legal procedures, and exercises its powers in strict
accordance with the requirements of laws, regulations and the Articles of
Association. Under the Board of Directors are the Audit Committee, Strategy
Committee, Risk Management Committee, and Nomination & Remuneration
Committee, which, overseeing the important topics of the company in
corresponding respects, play an important role in laying a solid foundation for the
correct and reasonable decision making of the Board of Directors. The Strategy
Committee, comprising 5 directors, is responsible for reviewing the long-
term development strategies and major investment decisions of the company
and making suggestions; the Audit Committee, consisting of 5 directors, is
responsible for the communication, supervision and verification of internal and
external audits; the Nomination & Remuneration Committee, made up of 5
directors, is responsible for reviewing standards and procedures regarding the
nomination and remuneration of directors and senior executives, and making
suggestions; the Risk Management Committee, composed of 5 directors
and senior executives, is responsible for reviewing and assessing the Risk
Management of the company, and making suggestions about risk management
and internal control.
The Board of Supervisors is the supervisory body of the company. Accountable
to the Shareholders' Meeting, it exercises its power of supervision in pursuance
of laws and regulations in a timely, fully and effective way. It consists of 5
supervisors, including 2 staff representatives. In accordance with relevant laws
and corporate regulations, it performs its responsibilities and duties earnestly,
including inspecting the financial condition and the performance of the senior
executives, and promoting the improvement of the internal control systems, so as
to protect the interests and rights of the company and shareholders.
The remuneration for the directors (including independent directors) and
supervisors are determined based on the regional and industrial levels. At
present, the company has developed the performance assessment and
remuneration incentive systems for the senior executives, according to which,
the annual remuneration of the senior executives is assessed base on the
performance of the general development strategy and annual business goals of
the company set at the beginning of a year, as well as the plans and goals made
by themselves.
During the reporting period, no corporate governor worked at any administrative
position. Totally 4 sessions of the Shareholders' Meeting, 11 meetings of the
Board of Directors, and 6 meetings of the Board of Supervisors were held. The
Strategy Committee, Audit Committee, Nomination & Remuneration Committee,
and Risk Management Committee held 3, 7, 1 and 2 meetings respectively.
Also in the reporting period, the Board of Directors reviewed 49 topics, including
major topics related to period reporting, profit distribution, external investment
and asset restructuring, and thus made corresponding strategic decisions, as
well as the long-term development plans of the company.
Corporate governance Diagram
Board of Directors
Risk Management
CommitteeAudit Committee Strategy Committee
nomination & Remuneration
Committee
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
16
CSR MAnAgEMEnT SySTEM
CSR MissionPeople first. Green
operation. Harmonious and sustainable development of
economy,society and environment.
CSR VisionConstruct sustainable CSR system, being the world's leading display company. Respected by the society
and loved by the employees.
CSR StrategyDevelop the values
of employees, build a harmonious business
environment, achieve the win-win with partners, and
maximize the enterprise values.
CSR Practice Path
honesty,
compliance
operation
Active Return,
unselfish
contribution
Eco-friendly
Development,
Cleaner Production
People first,
Mutual Growth
Mutual
Development
To Win-Win
Stable Growth,
Create
ValueGovernment
Employee
Environmentpartner
Shareholder
Community
17
improvement
2015
Establishment
2012
optimization
2016
Consolidation
2013
Strengthening
2014
·Import the tools of GRI indicators data collection and statistics, and establish the GRI database
platform;
·Dynamic monitoring CSR performance, establish a control mechanism covering the whole
process;
·Integration of Tianma social responsibility culture into corporate culture, and push forward
representative CSR projects.
·Import the GRI-G4 indicator system and complete a third-party certification of the CSR report.
·Establish the concept of Tianma's corporate social responsibility;
·Initial establishment of CSR management structure and the corresponding duties;
·Study and borrow international CSR standards and industry best practices;
·Conduct preliminary stakeholder participation and dialogue;
·Establish CSR related systems, to carry out CSR internal audit, identify, evaluate and drive for
improvement of high-risk areas;
·Release the first CSR report of Tianma.
·Integrate and optimize the GRI indicator system and CSR management system;
·Further carry out excellent CSR projects, to establish a CSR brand image;.
·Complete a third-party certification of the CSR report.
·Strengthen the participation of and communication with the stakeholders;
·Build the ethics system, and constantly solve internal problems related to CSR;
·Coach key suppliers to build the CSR management system;
·Strengthen the training and promotion of knowledge about CSR.
·Include the ISO26000 social responsibility guidelines into operational processes;
·Develop CSR risk managementtools, build the CSR risk databases and CSR risk assessment
manual;
·Keep promoting the implementation of plans and projects related to employee care, community
service and green operation;
·Elevate the ethics management system, and build the ethics assessment mechanism;
·Complete a third-party certification of the CSR report.
CSR Five-year
Plan
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
18
CSR organizational management
In 2012, the CSR Working Committee was set up as the supreme
CSR decision-making body of the company. The committee is
comprised by the general manager and other executives, who are
responsible for the development of the overall CSR strategies,
goals, missions and guidelines, leading the construction of CSR
management system, reviewing CSR work plans and publishing CSR
reports, and organizing important CSR activities.
The CSR Working Committee Office is set up under the CSR Working
Committee, The office is staffed by the principals of the Dept. of Risk
Management, Financial Management Center, Operation Center,
Human Resource Center, Supply Chain Center, and so on. The Dept.
of Risk Management is responsible for the daily work of the office.
The CSR Working Committee Office is primarily responsible for
carrying out the work arranged by the CSR Committee; organizing
and promoting the construction of CSR risk management system in
various project teams; coordinating and promoting CSR activities in
various project teams; collecting and analyzing the CSR data and
documents of various project teams; and writing the CSR report and
submitting it to the CSR Working Committee for reviewing.
The Dept. of CSR Supervision is set up under the CSR Working
Committee which is organized with people from the Dept. of Discipline
Inspection & Supervision, it's mainly responsible for supervising
specific work related to CSR ,and handling CSR complaints.
The CSR Working Committee consists of six project teams, including
Employee Affairs Team, Social Affairs Team, Economic / Shareholder
Affairs Team, Environmental Affairs Team, Supplier Affairs Team, and
Customer Affairs Team, these project teams are composed of the
principals of corresponding functional sectors. They are responsible
for CSR system construction, defect correction, indicator selection &
collection, and report disclosure of their own team.
CSR risk assessment
The company conducts periodical CSR risk assessment in the four
aspects of labor, environment, health & safety and ethics systems.
Pursuant to the requirements of the CSR Management Manual and
relevant systems. The company conducts CSR internal assessment
and CSR management review every year, tracks and supervises the
correction of defects continuously.
CSR internal assessment
In September 2014, the Dept. of Risk Management and Dept. of
Legal Affairs conducted the annual CSR internal assessment of
Chengdu, Shenzhen and Wuhan industrial bases. The proportion
of receiving CSR internal assessment is 38% among all operating
locations. According to the suggestions, correction plans and
correction deadlines, the defects found in CSR internal assessment
should be improved under the tracking and supervision of the Dept.
of Risk Management. Moreover, problems commonly existing in all
bases were reported to the senior management of the company as
major concerns.
In October 2014, according to the CSR non-conformance found
in the recent three years, the Dept. of Risk Management built the
database of CSR Risk Management, which includes relevant risks
and control goals regarding labor, environment, health & safety, and
ethics into the risk management system. Based on the database,
period supervision was conducted.
CSR management review
In order to assess the implementation, realization and progress of
the CSR guidelines, policies, Five-year plan and the 2014 CSR plan
of Company, reviewing the operating situation and results of the
CSR system; seeking opportunities for the improvement of the CSR
system; determining the CSR plan of the next year; and realizing an
appropriate, sufficient and effective CSR system, thus enhancing the
level of CSR management.
CSR Management System
Dept. of CSR SupervisionCSR Working
Committee Office
Employee Affairs Team
Social Affairs Team
Environmental Affairs Team
Supplier Affairs Team
Customer Affairs Team
Economic /Shareholder Affairs
Team
CSR Working Committee
19
CSR performance management
CSR performance management mainly includes the identification,
determination, priority sequencing and assessment of CSR topics.
(See "Communication with and feedback from our stakeholders" for
details.)
CSR report management
Pursuant to the GRI standard and relevant requirements, the
project teams are responsible for the collection of GRI indicators. In
October 2014, the company completed division of work, assigned
specific G4 indicators tasks to specific persons in various project
teams. Meanwhile, to effectively collect and audit data concerning
G4 indicators, and improve the accuracy of data in CSR report,
in November 2014, the company successfully developed the OA
procedure of "submission procedure of data concerning GRI-G4
indicators".
CSR training management
The company CSR training falls into new employee orientation
training, CSR professional module training, and CSR training for
middle & senior managers..
The content of new employee orientation training includes CSR
basic knowledge, corporate CSR policies, ethics, Employee code
of Conduct, etc. Through the training, new employees are familiar
with corporate CSR ideas and significance, and can have a good
understanding of the company's all standards and requirements.
The content of CSR professional module training includes the content
of new employee orientation training, as well as the basic knowledge
concerning supplier CSR audit, EICC, SA8000 and ISO26000,etc.
Through the training, the expertise level of the CSR team and relevant
staff can be promoted..
The content of CSR training for middle & senior management includes
the content mentioned above, as well as the history, idea, system
construction of CSR, etc. It is conducted to increase the awareness
of the middle and senior management about the significance of CSR,
thus laying a solid foundation for the promotion and implementation of
CSR culture.
At the 2013 CSR Performance Assessment Conference
held on October 26, 2014, Tianma ranked 24th on
the list of "2013 Top 100 Listed Companies in Social
Responsibility Development". Besides, it also held the 7th
position on the list of the 2013 Top 20 Listed Companies
in Social Responsibility Development in Guangdong.
The awards are the external affirmation of the CSR
performance of Tianma in CSR, and also the internal
affirmation of the joint efforts of all Tianma people. In the
future, the company will keep pushing forward the win-win
development with the stakeholders, and earnestly fulfill social
responsibility, thus being the world's leading display company
respected by the society and loved by the employees.
Memorabilia of 2014Tianma won the award of "CSR system construction".
During the reporting period, to improve the CSR management
level and show a good CSR image of the company,
based on the company's status quo of CSR and the audit
requirements of the customers, AVIC Optoelectronics and
Shanghai Tianma participated in the EICC-VAP on-site
audit conducted by EICC in October and November 2014
respectively. Later, the follow-up examination was conducted
to make sure that the problems found in the audits were
improved. This is the first time that the company participated
in the EICC-VAP audit. Through the audits, the CSR
management level of the company was further promoted.
EICC-VAP certification
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
20
CoMMuniCATion WiTh AnD FEEDBACK FRoM ouR STAKEhoLDERS
identification of major stakeholders
Different stakeholders affect or are affected by the company
differently. In pursuance of the latest AA1000 Stakeholder
Participation Standard, the company has preliminary identified and
sequenced its stakeholders, and we finally select six stakeholders
including suppliers, governments, customers, employees,
communities, and shareholders.
Based on
(A) the possible economic, social and environmental effects that the
stakeholders have exerted on the company,
(B) the possible economic, social and environmental effects that the
stakeholders will exert on the company,
(C) the possible economic, social and environmental effects that the
company exerts on the shareholders, The company has made the
priority sequencing of the shareholders.
Communication and interaction with major stakeholders
The company has built diverse and unobstructed communication
with the stakeholders of different classifications, so as to make sure
that their demands can be timely, accurately and comprehensively
understood and responded by the company.
As a responsible listed company, Tianma not only focuses on achieving the performance and
balance of economic, environmental and social development, but also pays close attention to the
concerns of stakeholders and actively feedbacks and improves.
·Suppliers' Conference
·Periodical meeting
·On-site audit
·Internal self-inspection
·Conference discussion
·Information disclosure
·Telephone communication
·Customer satisfaction investigation
·Customer complaint handling
·Customer seminar
·Customer investigation and review
·Shareholders' Meeting
·Open day for investors
·Community service activities
·Tianma Volunteers Association
·Employee satisfaction investigation
·Internal symposium
·Labor union
·Employee suggestion box
Government
Employee
Community
Supplier customer
Shareholder
Major stakeholders
CThe possible economic, social
and environmental effects that the company exerts
on the shareholder
BThe possible economic, social
and environmental effects that the stakeholders will
exert on the company
AThe possible economic, social
and environmental effects that the stakeholders have exerted on the company
21
1. internal selection of important topics
In consideration of the strategies and development direction of the
company, and the CSR topics concerned by excellent companies
in the industry, we selected 95 candidate topics for the CSR project
teams. The 48 CSR team members, according to the significance of
the topics to the company, selected 3 topics respectively, and then,
22 topics were finally selected.
The 22 topics include sustainable growth, financial performance,
corporate governance, paying taxes according to law health & safety,
green supply chains & logistics, energy efficiency & climate change,
green operation, corporate culture, employee care, employee training
& development, supply chain sustainable development, customer
satisfaction management, green products and services, technical
development & innovation, respecting to intellectual property,
customer privacy & safety, Ethics management, communication with
and feedback from our stakeholders, good relationship with local
community, compliance operation, and volunteer activities.
In pursuance of the Stakeholders Dialogue Regulations developed
and enforced by the company, the company conducts dialogues with
the stakeholders periodically. On August 19, 2014, the CSR Working
Committee Office launched the 2014 stakeholder investigation.
According to the significance of the CSR topics and the concerns
of the stakeholders, the investigation was divided into the internal
selection and external investigation of key topics.
·Customer satisfaction investigation
·Customer complaint handling
·Customer seminar
·Customer investigation and review
·Employee satisfaction investigation
·Internal symposium
·Labor union
·Employee suggestion box
2. External investigation of important topics
A survey questionnaire was developed based on the 22 topics
determined by the CSR project teams. On the one hand, the
questionnaire was given to project team members for internal
investigation. The 22 items in the questionnaire were scored by the
project team members according to the significance of the topics,
and their effects on building the CSR image of the company. On
the other hand, each project team has sent the questionnaire out to
the respective corresponding stakeholders, the 22 topics were also
scored and sequenced by relevant stakeholders according to their
concerns.
To improve the quality of stakeholder investigation, and have a
better identification of the importance and degree of concern of the
important topics, the score range of each item was set to be 22-1,
and it's required that the points of all items cannot be the same. In this
way, important topics were further identified and sequenced, which
helped the company have a better understanding of the concerns and
demands of different stakeholders.
178 stakeholders (including all stakeholders participating in
the internal and external investigations), which were from the
government, shareholders, customers, suppliers, employees and
communities, were included in the 2014 stakeholder investigation.
54 internal survey questionnaires were completed by CSR team
members; and 92 external survey questionnaires were completed by
the stakeholders. The investigation was carried out through online,
telephone, on-site, e-mail and interview.
At last, based on the significance of the topics and the concerns of the
stakeholders, the topics were sequenced. The investigation results,
as well as most important topics concerned by the company and the
stakeholders were listed below.
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
22
investigation results of material topics
De
gre
e o
f co
nc
ern
of m
ajo
r sta
ke
ho
lde
rs
S ignif icance to the companyLow High
High
Economy Environment Society
8
1
11
7
6
16
17
3
4
9
5
2
13
14
Customer satisfaction management
Business ethics management
15
10
12
Sustainable growth Health & safety Corporate culture Green products and services
Communication with and feedback from our stakeholders
18
Financial performance Green supply Chain & logistics
Employee care Technical development & innovation
Good relationship with local community
19
Corporate governance Energy efficiency & climate change
Employee training & development
Respecting to intellectual property
Compliance operation20
21paying taxes according to law Supply chain sustainable development
Customer privacy & safety
green operation Volunteer activities22
Remarks: Compared with the important topics in 2013, the 22 important topics basically remain unchanged (except the change of
names). For the response to the material topics concerned by the main stakeholders and imposing serious effects on Tianma, please see
chapters in this report.
2221
2019
1614
13
12
9
8
5
3
21
4
7
611
1018
17
15
Communication with and feedback from our stakeholders
23
3. Affecting boundary of topics with material impacts
The important topics have material impacts on the company and external organizations, the specific impacts are listed below.
Boundary Aspect of consideration
Internal boundary External boundary
Category Importanttopic
Shenzhen Tianma
Shanghai Tianma
Wuhan Tianma
Chengdu Tianma
AVIC Optoelectronics NLT Gov.
Share-holder
Customer Supplier Employee Community
Economy
Sustainable growth ● ● ● ● ● ● ● ● 一 一 一 一
Paying taxes according to law ● ● ● ● ● ● ● ● 一 一 一 一
Corporate governance ● ● ● ● ● ● ● ● 一 一 一 一
Financial performance ● ● ● ● ● ● ● ● 一 一 一 一
Environment
Energy efficiency & climate change ● ● ● ● ● ● ● 一 一 一 一 ●
Green supply chains logistics ● ● ● ● ● ● 一 一 ● ● 一 一
Health & safety ● ● ● ● ● ● ● 一 一 一 ● 一
Eco-friendly operation ● ● ● ● ● ● ● 一 一 一 一 一
Society
Sustainable development of the supply chain
● ● ● ● ● ● 一 一 ● ● 一 一
Employee training & development ● ● ● ● ● ● 一 一 一 一 ● 一
Ethics management ● ● ● ● ● ● ● ● ● ● 一 一
Communication with and feedback from the stakeholders
● ● ● ● ● ● ● ● ● ● ● ●
Technical development & innovation
● ● ● ● ● ● 一 一 ● 一 一 一
Green products and services ● ● ● ● ● ● ● ● ● ● 一 一
compliance operation ● ● ● ● ● ● ● ● 一 一 一 一
respecting to intellectual property
● ● ● ● ● ● ● 一 ● ● 一 一
Customer satisfaction management
● ● ● ● ● ● 一 一 ● 一 一 一
Employee care ● ● ● ● ● ● 一 一 一 一 ● 一
Corporate culture ● ● ● ● ● ● 一 一 一 一 ● 一
Volunteer activities ● ● ● ● ● ● ● 一 一 一 一 ●
Cusomer privacy & safety ● ● ● ● ● ● 一 一 ● 一 一 一
Good relationship with the local community
● ● ● ● ● ● ● 一 一 一 一 ●
Note “●” means “important, with material impacts and data”; “○” means “important, with material impacts, and the data are planned to be disclosed in the future”; “—” means important, without material impacts .
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
25
2013 /企业社会责任报告
We operate in pursuance of laws, and regulations, abide by ethics, and have zero tolerance for gray income.
FoR ThE goVERnMEnT
honESTy, CoMPLiAnCE oPERATion
26
CoMPLiAnCE oPERATion
Quarterly compliance assessment
According to the Compliance Management Procedure developed
by the company, the Dept. of Legal Affair shall conduct the quarterly
compliance assessment in departments with higher external
legal risks. During the quarterly assessment, a special task team
consisting of the principle of the assessed departed is set up by
the Dept. of Legal Affairs , the responsibility of the team members
shall be clearly identified, and the work schedule and the periodical
review mechanism shall be developed. In addition, the start-up
announcement of the compliance assessment shall be sent to all staff
members. According to twice quarterly compliance assessments
organized by the Dept. of Legal Affairs, the Dept. of Legal Affairs
organized the relevant personnel to learn laws and regulations
applicable to the department; the List of Applicable Laws and
Regulations was formed; and the assessed department conducted
self-assessment of their internal systems and the implementation
thereof in line with relevant laws and regulations. At last, the Dept.
of Legal Affair assessed the results of the self-assessment, and
drew up the Quarterly Compliance Assessment Report. Meantime,
the advises for rectification have been provided, and the follow-up
inspections were conducted to make sure the problems found in the
assessments had been solved.
In order to improve the legal knowledge of the staff, the
Dept. of Legal Affairs organized the Law Popularization
Contest in the form of electronic questionnaire. It begun from
December 4, the Constitution Day and the Day of National
Law Population, and ended on December 9. During the
activity, totally 625 papers were answered, and carefully
marked by the Dept. of Legal Affairs. According to the
contest results, 8 grand prizes, 26 first prizes, and several
second, third and honorable prizes were given. The start-
up notice and the awards list were published through e-mail
by the Dept. of Legal Affairs. The activity was responded and
supported by many employees and was widely praised.
During the reporting period, the Dept. of Legal Affairs continually conducted annual and quarterly
compliance assessment . In order to achieve maximum compliance operation, the Dept. of Legal
Affairs developed the OA procedure for the approval of new systems developed by various
departments. According to the OA procedure, all new systems can only be applied for approval
through the procedure, and once an OA application is submitted, it will be automatically transferred
to the Dept. of Legal Affairs to make sure that the new system is compliant with relevant laws and
regulations.
Law Popularization Contest was organized by the Dept. of Legal Affairs
It's estimated that at the beginning of 2015, laws and regulations related
to CSR topics like labor practice and ethics will be included in the List
of Applicable Laws and Regulations of the Compliance Management
Procedure by the Dept. of Legal Affairs, for the purpose of improving the
CSR management system and compliance assessment system of the
company.
27
Correction supervision and resultsconfirmation
Correction of defects
Review (qualified or not?)N
y
End
Recording
Approval& taking effect
Compliant or not?N
y
Summary
Annual compliance assessment
Promotion & implementation
Review & emendation
Obtain laws and regulations
Annual compliance assessment
The Dept. of Legal Affairs conducts the annual compliance
assessment at the end of a year. In pursuance of the Compliance
Management Procedure, the laws and regulations related to various
departments in 2014 were arranged systematically, and the annual
compliance summary and assessment were conducted. In addition,
according to the investigations and punishments from the external
organizations in 2014, the Dept. of Legal Affairs randomly examined
the possible non-compliant behaviors, and supervised relevant
departments to collect the defects found, thus realizing the close-
loop management.
In consideration of the problems found in the previous compliance
assessments, the Dept. of Legal Affairs asked relevant departments
for opinions about the emendation of the Compliance Management
Procedure. In addition, internal discussions on topics like whether
to lower the frequency of compliance assessment, how to adjust
the assessed departments, and how to conduct substantive
examinations on the compliance assessment were held by the
Dept. of Legal Affairs. It's estimated that the emendation of the third
version of the Compliance Management Procedure will be completed
at the beginning of 2015, relevant training and guidance on self-
assessment will be provided to the departments, and the collection
scope of laws and regulations will be expanded, for the purpose of
improving the compliance assessment and review of the company, as
well as enhancing the compliance management level of the company.
Remarks:only the compliance management information of the "five
companies in four cities" is disclosed.
Quarterly compliance assessment flow:
Identification of laws & regulations, compliance assessment planning
For the Government
About the Company
For The Shareholders
For the Environment
For the Employees
For the Partners
For the Community
28
2014 Work summary
I. The construction of integrity
1. Investigation and supervision were conducted from time to time to
make sure the compliance and incorruption of projects.
2. Measures, like special monitoring, on-site supervision and post-
reviews, were taken to prevent the occurrence of possible risks and
corruptive events.
3. The training about integrity was enhanced. In 2014, 8 such training
activities were conducted in the bases, and relevant knowledge was
spread by means of e-mails, OA and Tianma News.
II. signing the letter of responsibility on Party's style and integrity
During the reporting period, Eight ceremonies on signing the letter
of responsibility on Party's style honesty building were organized,
and more than 2,000 employees, including the deputy managers and
the management at higher positions, and all the employees of key
positions signed the letter of commitment.
incorruptible operation
Incorruptible operation management is in the charge of the Dept.
of Discipline Inspection. In 2014, sticking to the principle of "legal
compliance, integrity, anti-corruption and self-discipline", the
company made great progress in incorruptible operation.
The early-warning system was employed in key and sensitive fields
where corruptions are likely to happen based on the characteristics
of risks at low, middle and high levels. In addition, information
concerning incorruptible operation risks was collected through various
channels like tours, audits, investigations, internal supervision,
efficiency supervision, supervision by public opinions, style of work
analysis, whistle-blowing, and case analysis. Periodical and casual
corruption prevention analysis and early-warning information
reporting were also conducted, for the purpose of preventing possible
corruption from happening.
It's required by the company that the nepotism aversion application
shall be submitted in case of a possible nepotism. Leadership and
approval-relationship are forbidden among relatives in the same
department; and the relatives of middle and senior management are
forbidden to work as deputy manager or above titles at key positions
(finance, audit, procurement and sales) in the same business region.
BuSinESS EThiCS MAnAgEMEnT
The company always concerns the development of business ethics. To standardize the business
ethics management procedure, improve CSR management level, realize CSR strategic goals and
the Five-Year Plan, and control CSR risks, the company issued the Business Ethics Management
System on September 17, 2013. The procedure specifies the regulation and management
procedures related to incorruptible operation, information disclosure, intellectual property protection,
trade secrets, fair dealing, whistle-blowing, privacy protection, and conflict minerals.
2015 Annual Work PlanI. The company would further strengthen the construction of
integrity and pay attention to antecedent supervision.
II. Promoting the construction of Party's style and integrity
In 2015, the company wil l keep pushing forward the
construction of Party's style and integrity in various bases, so
as to make sure the incorruptible operation and compliance
management of the company.
1. Examine the fulfillment of the letter of responsibility
about integrity made at different levels, give suggestions,
and conduct follow-up supervision, to make sure effective
incorruptible operation.
2. Place integrity warnings on every issue of Tianma News,
and send integrity proverbs to deputy directors and the
management at higher positions every month, so as to
prevent corruption and bribery from happening.
III. Pay attention to bidding projects related to the construction
of new plants, the purchase of large equipment, and
other engineering construction projects, to make sure the
incorruption and compliance in the process of bidding.
The guideline of incorruptible operation :
Legal compliance, integrity, anti-corruption
and self-discipline
III. Requiring all suppliers to sign the letter of commitment on integrity
1. All suppliers were required to sign the letter of commitment,
and major suppliers were required to participate in the integrity
propaganda.
2. Requirements like "Do not accept gifts and cash gifts" were
stressed during the festival periods.
VI. The Business Ethics Management System was amended by
including "nepotism aversion" into the section of "Incorruptible
operation".
29
information disclosure
Information disclosure management is in the charge of the Dept.
of Securities Management. Pursuant to the requirements of laws,
regulations and the Articles of Association, the company discloses
real and accurate information completely and timely, without any false
records, misrepresentations, or major omissions.
The company promises to disclose information to all investors
simultaneously, so as to make sure that investors can obtain
information equally. It's stipulated in the period report, interim report,
and Regulations for the Listing of Stocks that corporate information
shall be disclosed truthfully, accurately and completely; no information
can be disclosed through any appointed channels before being
disclosed through public media; and information cannot be disclosed
through holding the press conference or Q&A.
Before any inside information is disclosed by law, no insider is
allowed to disclose or leak the information, or use the information for
insider transactions. Corporate information disclosed to the public
through informal announcement shall be approved level by level, so
as to prevent the leakage of substantive information before official
disclosure.
2014 Work summary
1. As of December 31, 2014, 87 announcements had been released
to timely disclose major events.
2. In case of any abnormality in market dynamics or stock price,
the clarification statement or stock exchange abnormal transaction
announcement was released.
3. Management regulations like the Regulations for Information
Disclosure Management were developed to identify the content of
insider information, define the scope of insiders, and improve the
accountability system of insider transactions.
4. The "Insider Transaction Control" training and other training
activities were held to improve the awareness of employees
accessible to insider information about the significance of preventing
insider transactions and regulating insider information management.
5. In 2014, the company was again awarded by the Shenzhen
Securities Regulatory Bureau for its good performance in "information
disclosure and investor relationship development" in 2013.
6. The cash bonus decision-making mechanism was improved
to practically protect the legal rights and interests of our minority
investors.
The guideline of information disclosure :
Disclose real and accurate information
completely and timely, without any false
records, misrepresentations, or major
omissions.
2015 Work Plan: 1. Timely get access to the latest supervision regulations and
requirements; keep a good relationship with the regulatory
agency; strictly abide by the latest regulations; and release
announcements by reference to excellent enterprises.
2. Expand the scope of voluntary information disclosure to
show the company actively.
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intellectual property (iP) protection
IP protection management is in the charge of the Dept. of Intellectual
Property. Besides, the Patent Review Committee was set up to review
and supervise internal invents. The company is active in protecting
IP in line with the principle of "compliance to IP laws and regulations,
respect to third-party IP, active innovation, and effective application".
The company encourages the staff to conduct technical innovation
and develop independent IP. At the same time, it strengthens the
protection and utilization of IP, thus pushing forward the realization
of its patent strategy. Each employee is required to abide by all the
agreements related to IP and the confidentiality agreement signed
with his/her former employer, to make sure that the employee will
not violate such agreements during the period that he/she works at
Tianma, and that the rights of the former employer or the third-party
will not be infringed.
To improve the IP management level of the company, increase the
quality of inventions, and award employees making contributions
in innovation, the company has developed the IP award system,
according to which, the employee creator(s), employee inventor(s)
and the participant(s) of an invention will be awarded materially or
spiritually.
2014 Work summary
1. Institution management
A series of regulations and systems, like the Patent Review
Committee Management Methods, Patent Management System,
Incentives for Invention , Regulations on Incentives for Patent
compilation, and Product Patent Investigation, Analysis and
Assessment Procedures, were developed to encourage and protect
the technical innovation in the company.
2. Patent application management
① Technical innovation was greatly encouraged, and the invention
review was held periodically. Measures were taken to encourage
inventors to put forward high-quality invention proposals. For
example, the inventors in various industrial bases can join the
invention review meeting by telephone or video, which greatly
increased the efficiency of application review. In addition, the
R&D personnel of the company made inventions by means of
brainstorming, and collected patent information related to key
research fields.
② The Lean Six Sigma quality control method was employed in
patent management. On the basis of fully making use of internal &
external information and human resources, the applications of key
patents were compiled internally, and the compilation of most patent
applications were outsourced, so as to make sure the quality and
compilation efficiency of patent applications at a low cost. During
the reporting period, totally 870,000 Yuan agency commission was
saved.
③ The internal patent engineer incentive system was developed
for the purpose of motiving patent engineers to improve invention
proposals to high-quality patent application documents, raising the
enthusiasm for work of patent engineers, enhancing the cohesion of
the company, and training & retaining talents.
3. IP risk management
① The IP risk management mechanism was adopted throughout the
development of new product and new technology projects.
② The latest patent and IP information was disclosed periodically.
③ The reverse analyses of patents related to target products were
conducted.
4. Employee development & organizational growth
① An IP management team was built through multi-directional and
multi-layer training related to IP laws, patent technologies, patent
practice, and so on.
② IP lectures were held at various industrial bases periodically, for
the purpose of increasing the IP protection awareness of employees.
5. Information management
① The Dept. of Intellectual Property and R&D Center jointly built
1. In 2014, the company applied 429 patent applications in
China, 125 patent applications in the USA, and 111 patent
applications in Germany.
2. In 2014, 6 IP training exercises were conducted at various
bases.
3. An R&D and IP communication platform was built to realize
the timely interaction between R&D and IP, and make sure that
the requirements of R&D on IP can be met as fast as possible.
4. A well-featured intellectual property protection system was
built to stipulate the patent application procedure and realize
digital information-based management.
5. Measures were taken to progress the signing of the IP
confidentiality agreement with the staff.
6. IP-related items contained in agreements signed with new
suppliers, and in technical development agreements were
strictly reviewed, and the IP Guarantee Agreement was signed
with the suppliers.
IP achievement display
The guideline of intellectual property protection:
Compliance to IP laws and regulations, respect
to third-party IP, active innovation, and effective
application
Business ethics management
31
Trade secrets
Trade secret protection management is in the charge of the Dept. of
Legal Affairs. All staff members are required to abide by relevant laws
and regulations. The department is responsible for defining the scope
and grades of trade secrets, enhancing the management of trade
secrets and their carriers, and taking strict and proper measures to
effectively manage the computer system, network system and other
information safety control system of the company.
Employees are required to abide by confidentiality regulations in the
process of external communication and contacts. In case a trade
secret is required to be provided, an application shall be developed
and approved, and a confidentiality agreement shall be signed to
specify the protection scope of the trade secret. At news conferences,
exhibitions, visits and open meetings, relevant personal must abide
by the regulations related to trade secret protection, so as to prevent
the leakage of any trade secrets.
Education and training activities concerning trade secret protection
are held periodically, for the purpose of improving the awareness
of confidentiality of the employees. In addition, the company should
enhance the trade secrete management training on employees
accessible to trade secrets. The confidentiality agreement shall be
signed with the employees, clearly stipulating the protection scope of
trade secrets, as well as the obligations and liabilities of both sides.
2014 Work summary
1. To protect trade secrets, the company amended the existing
Regulations for Trade Secret Management as follows:
① The members and responsibilities and duties of the Confidentiality
Committee and its subordinates were further refined.
② The Confidentiality Joint Conference was newly added to promote
the cross-department cooperation on trade secrete management.
③ Trade secrets were newly graded, and the trade secret
identification procedure was detailed.
④ The protection, supervision and inspection measures of trade
secrets were improved.
2. The Confidentiality Joint Conference was held periodically, to
identify the key departments accessible to trade secrets, and to
effective supervise major risk departments.
3. Effective measures were taken to control the factories, offices and
mailboxes of the company.
4. Measures were taken to protect the trade secrets of the company,
as well as those of the customers and third parties.
2015 Work Plan1. Apply 410 patents in China, 123 patents in the USA, and
123 patents in Germany.
2. Conduct 6 IP training exercises at various bases.
3. Improve the R&D and IP communication platform to
enhance the interaction between R&D and IP.
4. Optimize the patent application and application review
procedures.
5. Arrange 4 members of a department every time to go to
Japan to learn overseas patent laws and practices.
6. Increase the signing rate of the Employee IP Agreement
and IP Guarantee Letter.
7. Progress the signing of the IP Guarantee Agreement with
the suppliers.
2015 Work Plan1. Keep enhancing the knowledge promotion of trade secrets,
thus creating a great atmosphere of trade secret protection.
2. Promote the effective progress of trade secret protection
by further strengthening the interaction between key
departments accessible to trade secrets, and holding the
Confidentiality Joint Conference.
3. Strengthen the supervision and inspection of trade secret
protection.
4. Cooperate with the IT department to provide powerful
support to the construction of the information security system.
The guideline of trade secret:
Abide by relevant laws and the confidentiality
regulations of the company; protect the trade secrets
of the company and all clients; enhance confidentiality
education; improve the awareness of confidentiality of
the staff; further develop the trade secret protection
measures; and prevent the occurrence of information
safety accidents.
a technical exchange & cooperation platform, to realize the timely
integration of R&D and IP, and make sure that the requirements of
R&D on IP can be met as fast as possible.
② A special patent database related to key technologies was built.
③ Professional patent retrieval & analysis tools were provided for all
technical personnel, enabling them to make technical innovations by
using the rich patent literature resources contained in the tools.
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2014 Work summary
1.The fair dealing system was included in The Customer Development
and Management Procedure.
2. Measures were taken to prevent collaboration with our customers.
As the supplier of the upstream enterprises, the company competed
with other suppliers in a fair way without any unfair competition or
hostile attacks. High quality products with fair prices were provided
according to the requirements of our customers, so as to make sure
that product values are affirmed by the customers.
3. During the reporting period, no irregular dealings happened, and
no complaints from our customers, suppliers or peer companies were
received.
The guideline of fair dealing:
Deal with customers on a fair basis without
concealing, threat or any other improper
means.
Fair dealing
Fair dealing management is in the charge of Sales and Marketing
Center. As the continuous expansion of business scale, the company
has taken effective measures to realize fair dealing, advertising and
competition, and to put an end to deception, concealing, threat and
other improper means.
Averse to unfair competition and predatory dumping, the company
abides by laws, regulations and corporate rules concerning fair
dealing, and treats all our customers equally. The company shall not
adopt illegal or immoral means in market transactions, damage the
interests of rivals, dump products for the purpose of elbowing out
the rivals, or reach the monopoly agreement with competitors for
monopoly.
In the company, R&D management and transaction management
are separated, for the purpose of building a fair dealing system
,and providing the opportunity of fair dealing to all customers. In
case customers with similar qualifications and properties have the
requirements of the same products, the company shall provide the
opportunity of fair dealing to them, ensure identical or similar prices.
Through objective and fair customer analysis and decision-making
procedures, the company analyzes customers and makes internal
decisions based on sufficient facts and data. In addition, the company
shall, according to the qualifications and properties of different
customers, develop objective and complete dealing and decision
making regulations to ensure the objectiveness and completeness of
dealing and decision making processes.
The company shall disclose truthful and accurate information in a fair
way through such channels such exhibitions, media and documents,
in strict pursuance of internal review procedures.
Collusion is forbidden by the company. It's forbidden to deal or
cooperate with companies or organizations with the records of
noncompliance or serious violation of business ethics, so as to
protect fair dealing.
2015 Work Plan1. Complete the CRM system to realize effective management
of dealings with customers.
2. Build the VAP management system to regulate domestic
agent management.
3. Supervise the transactions with customers based on
relevant corporate systems, ensuring fair, just and open
transactions.
4. Further enhance the promotion of fair dealing regulations
and knowledge.
Business ethics management
33
2014 Work summary
1. Whistle-blowing system construction
During the reporting period, the Dept. of Discipline Inspection
amended a number of important regulations, such as the
Management Regulation for the Discipline Inspection & Punishment of
Employees, Regulations for the Blacklist Management, Management
Regulations for the Investigation and handling of Employees' Illegal
and Foul Conducts, and Code of Employee Conducts (section of
"Incorruptible operation").
2. "Iron" supervision on violations
"Iron" supervision was conducted, leaving no room of existence for
any violations.
Whistle-blowing
Whistle-blowing management is in the charge of the Dept. of
Discipline Inspection. Based on the principle of "fairness, justice,
objectiveness and facts-based judgment", the company calls for
real-name whistle-blowing and relevant personal information will be
kept secret.
The Dept. of Discipline Inspection specially appoints persons to
receive, record, file and handle whistle-blowing. The avoidance
system is adopted, namely, handlers having a stake in whistle-
blowing shall be kept out of it.
Any employee violating the confidentiality principle will be punished
according to corporate regulations, and any whistle blower, who is
proved to be right, will be awarded. Unless otherwise agreed by the
whistle blower, the name, department and address of the whistle
blower shall never be published. In case any department or employee
revenges the whistle blower for any reason, the department
or employee will be punished according to relevant corporate
regulations; and if the behavior constitutes a crime, relevant person(s)
will be handed over to the judicial organization.
The whistle blower must be responsible for his/her behavior. In case
anyone provides false information for the purpose of framing others,
or of making troubles on purpose, the company will punish him/her
according to corporate regulations; and if the behavior constitutes a
crime, the person will be handed over to the judicial organization.
2015 Work Plan1. Further optimize the whistle-blowing system.
2. Investigate and handle various violations; and as for
internal violations, the company will handles them in strict
accordance with relevant laws, regulations and corporate
rules.
3. Further improve the Whistle-blowing and Whistle Blower
Protection System, to enhance the protection on whistle
blowers and kept secret the personal information of whistle
blowers, preventing them from being revenged.
The guideline of whistle-blowing:
Based on the principle of "fairness, justice,
objectiveness and facts-based judgment", the
company calls for real-name whistle-blowing,
and relevant personal information will be kept
secret.
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The guideline of privacy protection:
Fully respect privacy, and do not collect
and spread private information through any
illegal channels.
Privacy protection
Privacy protection management is in the charge of Sales and
Marketing Center, Supply Chain Center and Dept. of Human
Resource, which are responsible for the management and supervision
of the confidential information and privacy of our customers, suppliers
and employees respectively. During the process, it's forbidden to
collect and spread private information through any illegal channels.
In 2014, the company amended the Business Ethics Management
System, including "respecting the privacy of suppliers and employees"
into the items of privacy protection. From guidelines to specific
regulations, the protection of the privacy of our customers, suppliers
and employees were concretely stipulated.
The technical drawings and product information shared by the
company with our customers and with our suppliers are strictly
confidential. The contracts and agreements signed with our
customers, and our suppliers are important secrets. No employee is
allowed to leak such secrets.
The confidential information is only accessible to certain appointed
personnel as per relevant regulations, and others are not allowed to
get access to it.
It's forbidden to leak the confidential information of the customers and
suppliers; forbidden to talk about the confidential information of the
customers and suppliers at non-work areas; and forbidden to spread
the confidential information of the customers and suppliers through
any unallowable channels.
To the exclusion that the judicial or administrative agency requires
to check and/or copy the private and confidential information of an
employee by law, such information, including the remuneration,
personal dossier, and information related to whistle-blowing,
complaints and impeaches, shall not be leaked by anyone without the
permission of the employee.
2015 Work Plan1. Improve the Regulations for Remuneration Management,
Regulations for Personnel Dossier Management, and other
documents related to employ privacy protection.
2. Enhance the promotion and supervision of customer,
supplier and employee privacy protection.
2014 Work summary
1. Times of supplier privacy leakage: 0.
2. Times of customer privacy leakage: 0.
3. Times of employ privacy leakage: 0.
Business ethics management
35
The Republicof Congo
Central Africa
Democratic Republic of Congo
Angola
In 2015, the company will keep improving the ethics management system. From the perspective
of institution, the company will further improve its institutional documents regarding incorruptible
operation, information disclosure, intellectual property protection, trade secrets, fair dealing, whistle-
blowing, and conflict minerals. From the perspective of operation, it will further develop the ethics risk
database, and assess ethics of the company and major suppliers, thus improving CSR management
level of Tianma.
Conflict minerals
Conflict mineral management is in the charge of the Marketing
Center, Supply Chain Center and the Dept. of Quality Control, and
other departments play the role of assistance.
Based on the principle of peaceful development, keeping away from
the conflict minerals, the company has promised the joint work group
of EICC and GESI that it would improve the condition of the e-supply
chain. According to the promise, the company will not accept mining
activity that may cause conflicts, or the tin, tantalum (columbite),
gold and tungsten used in the products required to be disclosed or
reported by the Dodd-Frank Wall Street Reform and Consumer
Protection Act, as well as the sources of such minerals.
In case a conflict mineral is required by a customer, the Marketing
Center shall deliver the customer requirement and mineral information
to the Dept. of Quality Control without delay. The Dept. of Quality
Control shall process the information, and give it back to the Marketing
Center, which shall, after receiving the processed information, reply
the customer in a timely manner. Besides, the Marketing Center shall
deliver the Conflict Mineral Agreement, Conflict Mineral Statement,
and other related documents signed by the customer to the Dept. of
Quality Control for review, and then reply the customer based on the
review results.
The Supply Chain Center, while selecting a new supplier, shall
introduce the conflict mineral guideline of the company to the supplier,
and ask it to sign the Conflict Mineral Agreement pursuant to the
Regulations for the Management of Supplier Contracts. Besides,
the Center shall investigate the supplier, and review and improve
the investigation report, so as to make sure the gold, tantalum, tin,
tungsten and/or other metals provided by the supplier are not conflict
mineral(s) or not, and to make sure that such metal(s) can be traced
back to the original smelting plant(s).
2015 Work Plan1. The signing rate of the Conflict Mineral Agreement by
conflict mineral suppliers reaches 100%.
2. The investigation rate of conflict mineral suppliers reaches
100%.
3. The feedback rate of the customer conflict mineral
investigation reaches 100%.
4. Gradually optimize conflict mineral investigation &
management regulations, and enhance the propaganda of
conflict mineral management.
The guideline of conflict mineral:
Say no to conflict minerals for peaceful
development.
2014 Work Summary
1. 57 suppliers signed the Conflict Mineral Agreement.
2. The conflict mineral investigation on the 57 suppliers was
conducted according to the requirements of customers.
3. The feedback rate of the customer conflict mineral investigation
was 100%.
South Sudan
Uganda
Rwanda
Burundi
Tanzania
Zambia
African countries related to conflict mineral
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36
37
We establish effective and sustainablecommunication channels as well as open, transparent, multi-layered communication mechanism, keep honest, sincere, incorruptible, proactive.
FoR ThEShAREhoLDERS
STABLE oPERATion VALuE CREATion
38
FinAnCiAL PERFoRMAnCE
Cost control
During the reporting period, "Say yes to saving and say no to waste" was the principle of the cost control for Tianma. The principle enhanced
the staffs' awareness of saving, and effectively lowered the administrative cost, and also increased the benefits to the shareholders. The Cost
Down team built by relevant departments which supervised the expenses, at the meantime, the team implemented self-criticism regularly.
Therefore, the team can constantly push forward the Cost Down Project.
2015 work plan1.Through high quality budget planning and reasonably resource allocating to improve
asset efficiency, in addition, to maximize profit.
2. By using cost and expenditure valuation to improve productivity.
3. Developing and implicating IT tools to increase data analysis efficiency.
4. Building a unified cost management platform and applying centralized purchasing
procedure to share resources and information through departments.
①The company implements localization
purchasing and maximizes the domestic
materials usage.
② All materials were purchased through
bidding. A bargain team was built to
compare prices and bargain with the
suppliers
③ Domestic parts and spares were
used for daily maintenance.
④ Make use of the idle assets of various
industrial bases and departments, so as
to rationally use existing resources and
reduce the expenditure on fixed assets.
① Reduce power cost through
equipment upgrading, such as real-
time supervision of power consumption
and trend, RO membrane improvement,
optimized power system MD control,
intelligent cold-hot water system
control, and acousto-optic lighting
control in public areas.
② Lower the unit consumption of
raw materials through the upgrading
equipment like the ITO etchant
concentration monitor, equipment
parameter optimization, and new
material application.
① Reduce labor cost by increasing
labor utilization, improving workforce
efficiency, and reducing the number of
employees for unit productivity.
② Cut down material and maintenance
costs by improving production
technology, setting the unit prices and
consumption targets of materials to
lower their unit prices and consumption,
and prolonging the service life of
assets.
③ Reduce logistics cost by adopting
the bidding system. In addition, the
company increases the load capacity
to lower the usage of air transportation
and express delivery, and changing the
transportation methods of bulk cargo.
④ Improve OA review efficiency by
simplifying the review procedure.
Meanwhile the company sets various
application forms to promote the review
efficiency.
Reduce purchasing cost improve energy efficiency optimize cost management
39
note: the numbers have been rounded up in CNY 10,000. The data of Wuhan Tianma wasfrom September to December.
Financial performance diagram
Revenue operating cost Salary and benefits Payment to the government
Payment to the investors
Community investment(excludes donation in kind)
Retained earning
932,236 740,465 141,831 16,142 26,846 11 17,136
net profit:68,693
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40
BuSinESS DEVELoPMEnT
2014 saw the uneven growth of global economy—sustainable
economic growth in developed countries, and economic slowdown
in developing countries. With the recovery of global economy, the
competition of the panel display market went up slightly. Thanks
to the increased demand of home entertainment terminals like the
LCD TV, the sales of large-sized LCDs experienced robust growth,
which reduced the pressure on LCD producers forced to change high
generation production lines to low generation production lines.
Focusing on the markets of mobile terminal LCDs and the
professional LCDs for vehicle-mounted,, medical equipment and
industrial control equipment, the company aims at becoming an
industry leader in the field of small and middle sized LCDs. In 2014,
the A-Si LCMs for smartphones topped the list of worldwide sales.
Seeing a continuous expansion in the middle and high-end markets,
the products captured the biggest market shares in the market
segments concerning high-end medical equipment, HMI, aero-
entertainment, VOIP, navigation and measurement, laying a solid
market foundation for building Tianma into a world's leading brand.
In terms of customer development, we further developed major
accounts, and enhanced the cooperation with target brands. We
also helped our customers realize the world premieres of a number
of products. Our good performance as a partner was confirmed by
several awards, like the Award of Global Best Partner, Best Service
Award, Diamond Award, Best Delivery & Support Award, Perfect
Quality Award, Core Supplier Award, Supplier Quality Award, and
Excellent Supplier Strategy Cooperation Award, which laid a solid
customer foundation for building Tianma into a world's leading brand.
In terms of technical development, we enhanced the research of
start-up technology, and also strengthened the breakthrough and
promotion of integrated technology. So far, we have grasped such
advanced techniques like LTPSTFT, Oxide-TFT, AM-OLED display,
flexible display, transparent display, 3D display, and IN-CELL/ON-
CELL integrated touchscreen techniques, among which, the naked-
eye 3D technique has been recognized by our customers, and
Tianma thus became the first one realizing the mass production of
LCDs adopting the technique. Aside from the great achievements
in product transformation and product design innovation, we also
realized better and faster patent application, leading the industry
in this aspect. In addition, we made several breakthroughs in new
product and new technical platform projects. The 5" HD IN-CELL
developed by Tianma won the award of "Innovative Product and
Application" at the 2014 China Information Technology Expo.
1. In the domest ic smar tphones market , termina l
manufacturers have started to shift its focus to middle and
high-end products, the overall product structure and market
demand changed correspondingly.
2. The product structure and market demand of emerging
foreign markets have changed from feature phones to
smartphones. To meet the demand on small and middle-
sized (SMS) LCDs, many panel producers started to build the
G6 LTPS production lines, which intensified the competition
of the domestic middle and high-end smartphones LCD
market. In the emerging markets, the sales of smartphones
eyed a large rise.
Market trend
New products are showcased at the 2nd China Information Technology Expo.
41
On July 24th, 2014, the application of "issuing stock to buy assets
and raise supporting funds/related transaction" was approved
by the CSRC Review Committee for the Merger, Acquisition and
Reorganization of Listed Companies. On September 29th, new
stock was successfully issued, which indicated the successful
completion of the reorganization & fund-raising project.
Through reorganization, 100% corporate stock, including 70% stock
of Shanghai Tianma, 40% stock of Chengdu Tianma, 90% stock
of Wuhan Tianma, 100% stock of Shanghai AVIC Optoelectronics,
and 100% of Shenzhen AVIC Optoelectronics, was injected into
the listed company. In this way, the market value, revenue and total
assets of the listed company all exceeded 10 billion Yuan.
For the company, the reorganization and fund-raising are of the
significance of
① accelerating industrial integration and producing the synergistic
effect;
② increasing corporate asset quality and profitability;
③ enhancing corporate core competitiveness and anti-risk
capability;
④ optimizing corporate governance body.
Big event I: Successful corporate reorganization
Group photo of the reorganization project team at the door of the CSRC
On September 29th, 2014, Tianma signed an agreement with
the Administration Committee of the Wuhan East Lake New
Technology Development Zone to build the first G6 LTPS LCD
production line in the zone. With a planned investment of 12 billion
Yuan, the project has an annual production capacity of 30,000 TFT
and 30,000 CF which will create an annual output of almost 10
billion Yuan. It's estimated that the project will be official launched
at the end of the year, and will be completed in 2016.
As early as November 2008, Tianma cooperated with the
Administration Committee to build a G4.5 TFT-LCD production
line in the zone. The "G6" project marks the second strategic
cooperation between Tianma and Wuhan municipal government.
Upon the completion of the project, the company will further
consolidate its leading position in the SMS LCD market. The
project is of great significance for the implementation of the10
billion Yuan Display Panel Industry Plan of the Wuhan East
Lake New Technology Development Zone, for the accelerated
construction of national independent innovation demonstration
zones, and for the construction of a world-class technical zone.
Big event II: Launch of the "G6 LTPS" project
Rendering of the "G6" project
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42
inVESToR RELATionS
information disclosure
During the reporting period, the company released temporary
announcements and periodical reports in strict accordance with
relevant laws, regulations, and the Articles of Association. Related
information was disclosed really, accurately, completely and timely,
to protect the legal interests and rights of our investors. In 2014, 87
announcements, including the annual, semi-annual and quarterly
reports, announcements made by the Shareholders' Meeting, Board
of Directors and Board of Supervisor, major assets restructuring
announcements, new product and technique progress reports, and
investor concerns announcements, were released through appointed
media, for the purpose of making sure that our investors can obtain
the information of the company timely and accurately.
To develop an open, fair and just information disclosure system, and
improve corporate transparency, the company, based on regulations
such as the Regulations for Information Disclosure Management,
Regulations for the Internal Reporting of Major Information, and
Regulations for the Registration and Filing of People Possessing
Corporate Inside Information, has been increasingly optimizing
its information disclosure procedure and practice through internal
discussion and external exchange, so as to improve its information
disclosure quality and effects.
In terms of the control of insider trading, measures were taken
to further regulate the management of inside information, and to
improve the awareness of the employees of key posts about the
control of insider trading. On November 3, 2014, the 2nd Insider
Trading Warning & Education Exhibition hosted by the CSRC and
the Ministry of Public Security, and undertaken by the Shenzhen
Securities Regulatory Bureau was held at Shenzhen Citizens Center.
On November 4, under the leadership of Vice Chairman Zhu Jun, a
20-member team visited the exhibition, which helped the employees
to have a better understanding of the importance of legal compliance
and insider trading control. In addition, by means of operation reviews,
insider trading control training and so on, the company educated the
staff, and the results were satisfactory.
In 2014, the company was again
awarded by the Shenzhen Securities
Regulatory Bureau for its outstanding
performance in the following aspects
in 2013:1. Further improving the autonomy and self-discipline
level, actively pushing forward controlling shareholders to
improve corporate governance system, and earnestly fulfilling
commitments to the capital market;
2. Taking effective measures in information disclosure and
investor relation construction, improving the cash bonus
decision-making mechanism, and effectively protecting the
legal rights of minority investors;
3. Taking effectively measures in insider trading control; and
4. Transmitting the regulatory requirements of the Shenzhen
Securities Regulatory Bureau in a timely manner, and
actively cooperating with securities regulatory agencies in the
supervision and research in various sectors.
87 announcements were released. 87announcements
43
investor relation management
During the reporting period, in strict accordance with the principles
and regulations concerning fair information disclosure, we actively
communicated with the investors by means of the telephone, mailbox,
the "Interactive Platform" of Shenzhen Stock Exchange, investor on-
site visit, and strategic reporting meeting. In particular, in the course
of reorganization, through interaction with investors, we fully displayed
and interpreted its operation condition, through which, investors had
an all-round understanding of us, and at the same time, we collected
the reasonable suggestions of investors. Such an effective and long-
term communication mode played an important role in protecting the
legal rights of investors.
In the process of communicating with investors, the "Interactive
Platform" of Shenzhen Stock Exchange acts as important channel of
communication. We answered the questions of our investors as fast
as possible on the premise of making sure the quality of the replies;
and at the same time, we accepted the reasonable suggestions of
investors and made corresponding improvements as appropriate.
Our timely and effective reply, and objective and sincere attitude
in communication were widely praised by our investors. During the
reporting period, we answered 1283 questions raised by our investors
through the Interactive Platform, with a reply rate of 100%.
2015 Work Plan
1. Keep optimizing the investor relation management system.
2. Increasingly improve the professional quality of relevant
personnel.
3. Actively participate in or hold investor presentations,
performance presentations and relevant road shows to keep
close communication with our investors.
4. Constantly update and improve the content of the corporate
website.
In 2014, we optimized the reply procedure and investor on-site
visits in an all-round way. Based on the principle of fair information
disclosure, we earnestly treated the visits and consultations of our
shareholders and investors, and took effective measures to prevent
anyone from selectively or privately leaking nonpublic information
in advance, so as to make sure that all shareholders are equal in
obtaining major information. In the reporting period, we received the
on-site investigations from 49 institutions and 61 investors in 24
batches, and reported the investigation results to Shenzhen Stock
Exchange timely as required.
In 2015, we will keep optimizing the investor relation management
system, and increasingly improve the professional quality of relevant
personnel. Additionally, we will actively participate in or hold investor
presentations, performance presentations and relevant road shows,
keep close communication with our investors, and constantly update
and improve the content of the corporate website, building a better
corporate image.
For the Government
For The Shareholders
About the Company
For the Environment
For the Employees
For the Partners
For the Community
Receive the on-site investigations from
batches institutions investors 24 49 61
Reply rate at the interactive Platform: 100%
44
45
We actively use clean energy, reduce wastes and emissions, pay attention to constant investment in environmental protection, and promote the harmonious development of economy, society, environment.
FoR ThE EnViRonMEnT
ECo-FRiEnDLy DEVELoPMEnT CLEAnER PRoDuCTion
46
Total investment in
environmental protection: 66.9675million yuan
EnViRonMEnTAL PRoTECTion
Energy strategy and management
During the reporting period, pursuant to its energy development
strategy, the company expanded the coverage of ISO50001 and
ISO14064 by taking 2013 as the base year. As a result, the energy
utilization rate increased greatly, which lowered corporate operation
cost, and increased the economic, social and environmental benefits
of the company.
Based on the energy management system, the company set up the
Energy Saving Committee, and set an annual average energy saving
goal of 5%. According to the general energy management strategy
and plan of the company, the industrial bases set energy saving
goals for subordinate departments and production sectors, and built
the Energy Saving Sub-Committee respectively. Department heads
signed the letter of commitment to energy saving, which ensured
that the energy management strategy of the company can be really
implemented from top to bottom in an all-round way. In addition,
energy saving inspection teams were organized in all industrial bases.
Through periodical inspections in production lines and workshops, the
teams effectively cut down energy waste.
In terms of environmental emergency control, the company developed
the Special Environmental Emergency Plan, installed leak detectors,
Following the operation concept of "green, low-carbon and sustainable development" , the company
adopts world's advanced production technology to lower energy consumption. In addition, it has
invested a lot in energy efficiency technology development, so as to lower energy cost, and reduce
the mission of greenhouse gases.
(Unit: Million Yuan)
Shenzhen
Industrial
Base:
3.7029Shanghai
Tianma:
6.0745
NLT
4.3097
Wuhan
Tianma:
10.2012
Chengdu
Tianma:
37.8253
Shanghai AVIC
Optoelectronics:
10.9754
Safety Committee
Safety Committee
office
Chengdu TianmaShenzhen industrial
baseShanghai Tianma
Shanghai AViC
optoelectronicsWuhan Tianma
Safety Committee Safety Committee Safety Committee Safety Committee Safety Committee
EhS Department EhS Department EhS Department EhS Department EhS Department
47
and periodically organized special environmental emergency response exercises. During the reporting period, no major leak accidents
happened, no economic or non-economic punishments were imposed, and no environmental complaints were received.
The Safety Committee comprises 176 members, including 73 employees, 41% of the total. In 2015, following the principles of "legal compliance
& people first; energy efficiency & pollution prevention, green production & sustainable development; healthy and safe production by all and for
all", the company will take effective measures to improve energy saving management, enhance the application of energy-saving techniques
and equipment, and optimize industrial structure, thus pushing forward stable economic, social and environmental development.
There are 6 water chiller units in Chengdu industrial base. The
working loads of the chillers will fluctuate when the thermal
demand of HVAC system and cooling system are changed due
to the changes of external air humidity and temperature. In the
past, the cooling pumps of the chillers worked at the same power
frequency, which meant the output power of the pumps would not
change when the loads of the chillers decrease, thus the energy
was wasted. To solve the problem, the converter technique was
employed to upgrade the pump, enabling the pumps automatically
to adjust the output flow of cooling water according to the change
of chiller loads, thus saving the consumption of power.
In 2014, 640,000 KWh power (79 tons of coal equivalent) was
saved, equaling to 400,000 Yuan a year.
Before the upgrading, CDA was used to provide vacuum for
M2 Module unit equipment through the vacuum generator. This
method cannot avoid the energy waste occurring in the process
of energy transfer, and besides, when CDA realizes vacuum
switching through the vacuum generator, continuous air supply will
generate noise at a certain level. After upgrading, PA is directly
provided to module unit equipment through the control of the
solenoid valve, without the application of the vacuum generator. In
addition, the solenoid valve can directly control the supply of PA to
the platform and vacuum chucks.
The project cut down the gas consumption from 160 m3/shift to
110 m3/shift. Besides, since 114 kwh/day electricity can be saved
for each production line, the totally 32 upgraded lines saved 1.09
million kwh electricity in 2014, equaling to 710,000 Yuan.
"The project of installing Converter on Cooling Pump of the Water Chiller" Project in Chengdu industrial base
CDA-to-PA upgrading in module unit equipment in Wuhan industrial base
Before upgrading After upgrading
For The Shareholders
For the Environment
For the Government
About the Company
For the Employees
For the Partners
For the Community
48
occupational health
In compliance with relevant laws and the principle of people first,
the company always focuses on the risk management of production
lines. On the basis of highlighting risk identification, analysis and
control, it enhanced the arrangement of safety equipment and the risk
management education to the employees. The occupational health
management goals of 2014 have been realized, and the employees'
awareness of occupational safety and health have been improved.
In the whole year of 2014, no occupational disease accidents or
occupational fatalities happened.
OD control jobs and corresponding duties
Occupational health & safety guideline:Legal compliance & people first; energy efficiency &
pollution prevention, green production & sustainable
development; healthy and safe production by all and
for all
2015 Work Plan1. Popularize occupational control knowledge among the employees,
and enhance their awareness of occupational health.
2. Develop the occupational health education plan, and conduct
diversified relevant education activities.
3. Enhance the regular examinations in the factory and other operation
sites, preventing occupational injuries and diseases from happening.
4. Arrange physical examinations for all new employees according to
relevant requirements.
5. Improve the safety levels of highly risk and hazardous workplaces,
and make sure that all employees working at such places can wear all
necessary protective equipment correctly.
6. Improve and implement various comprehensive and professional
occupational emergency response plans.
In 2014, Wuhan Tianma passed the occupational health status
evaluation. Together with 3M Company, it organized the
Occupational Health Tour, greatly improving the employee's
awareness and understanding of occupational health.
Chemicals-related jobs
Responsible for the daily management and use of chemicals, including using chemicals to wipe or seal products.
Factory service jobs
Responsible for the operation and maintenance of factory equipment.
Electric welding
Responsible for safe welding, and the UV protection suit, gloves and mask are required.
Laser repairing
Responsible for the repairing of defective products.
Manual welding Responsible for the safe factory welding.
Barcode printing
Responsible for the bar code printing of products.
Machining Responsible for the machining of products.
On July 3, 2014, Wuhan Tianma held the 2014 "Zero Hand
Injury" challenge activity which lasted for four months. In
the activity, the employees, mainly the foremen of various
posts, formed 35 teams to compete in the aspects of the
collection of key hazards, the visualization of key hazards,
the parallel inspection of countermeasures against accidents,
and development of "10 regulations" for hand protection, the
"Safety Knowledge" contest, the safety skill team contest, and
so on. These activities greatly improved the staff's quality in the
fields of occupational health, safety awareness and skills
Wuhan Tianma: "Zero Hand Injury" Challenge
Wuhan Tianma: Occupational Health Tour
in the reporting period, there were 1,059
employees working at occupational disease (oD)
control positions.
(The data is the monthly average in the reporting period.)
1059employees
Remarks: the occupational health and safety management of "NLT"
are not included.
Environmental protection
49
Safe production
In 2014, adhering to the guideline of "Comprehensive safety control
based on prevention", the company took a series of effective
measures to refine safe production control responsibility, enhance
on-site safe production supervision, further identify and remove the
hidden dangers in production, strengthen the construction of the
environmental safety control team, and enhance the promotion of
safe production concepts. In addition, the principals of all industrial
bases were required to sign the Commitment to Safe Production. In
the reporting period, no production accidents happened.
The safe production responsibility system is employed in all industrial
bases. Based on the "Environmental safety control team + executive
department" combined safety control mode, joint inspections,
special inspections, festival inspections, and routine inspections
were conducted, so as to identify and remove hidden dangers as
many as possible. In addition, the knowledge and importance of
safe production were promoted by means of newspaper, broadcast,
blackboard poster and contest, and various activities, like "Role
Exchange" (workers and safe production supervisors exchanged
their roles) were organized, so as to improve the safe production
awareness and skills of the employees.
In 2015, all the industrial bases are required to develop and
implement detailed safe production plans, and supervise the
implementation of the plans according to the requirements of
"effective planning, responsibility definition, measures, capital
arrangement and supervision", to ensure the fulfillment of the 2015
safe production goals.
2015 Work Plan1. Ensure safe production control through organizational
development, capital investment, and performance
assessment.
2. Take effective measures to remove hidden dangers and
control risks.
3. Push forward the development of the safe production
control system and standard according to the "energy
efficiency" strategy.
4. Enhance the safe production awareness of the employees
through education, and develop team safe production control
standards.
Group photo of the employees of Wuhan Tianma Color Filter Plant
For The Shareholders
For the Environment
For the Government
About the Company
For the Employees
For the Partners
For the Community
50
In Wuhan Tianma, the 32-watt ceiling lamps arranged
in the public area worked 12 hours a day on average,
and were lit during the night time, causing the waste of
electricity. In the last year, 774 lamps were replaced by
8-watt acousto-optic controlled LED lights which are
turned off automatically when there is light or no sound,
and turned on when someone move or make a sound.
In this way, the average working hours of the
lamps are shortened greatly to 2 hours.
Energy saving performance:
Before upgrading=774 lamps *32W*0.75 Yuan
*365 days *12 hours / 1000 =81,363 Yuan.
After upgrading =429 lamps *8W*0.75 Yuan*365
days *2 hours /1000+345 lamps*8W*0.75 Yuan*365
days *12 hours /1000=10,946 Yuan.
Annual electricity saving=81362.88-10945.62=70,418 Yuan.
Public area lighting upgrading
Virtualization Project
The Desktop Virtualization Project was conducted to lower energy
cost, improve equipment efficiency, and reduce CO2 emission, thus
realizing green operation.
Thanks to the Desktop Virtualization Project, the energy saving and
emission reduction goals of the company in 2014 were successfully
achieved. In 2014, totally 300,000 Yuan electricity cost was saved..
The employment of thin clients lowered the electricity consumption
of PCs by 50% yoy, from 291,168 KWH to 145,584 KWH, saving
110,644 Yuan electricity cost. The utilization of virtualization
technology played a great role in improving energy efficiency. First, it
enabled the computing resources of a single server to be shared by
multiple environments, increasing the efficiency of servers by 39%,
while decreasing the electricity consumption of servers from 401,977
KWH to 157,991 KWH, saving 190,000 Yuan electricity cost. Second,
it integrated several servers into one, which lowered the electricity
consumption used to cooling servers, and reduced the emission of
CO2 at the same time.
In 2015, the company will keep pushing forward the Desktop
Virtualization Project, lowering electricity consumption by 358,015
KWH. It's estimated that at the end of 2015, 270,000 Yuan electricity
cost will be saved.
unified Communication Platform Project
In 2014, the company upgraded the Lync software. After the
upgrading, the communication yield reached 87%, up 16.5% yoy.
From January to October, the per capita telephone rate dropped by
19% yoy from 53 Yuan/month to 43 Yuan/month, which meant a total
cut of 11,690 Yuan/month.
In 2015, the company will reach a communication yield of 95%. It's
estimated that the telephone rate will drop by 20,000 Yuan/month
over 2014, an annual cut of 240,000 Yuan.
ECo-FRiEnDLy oPERATion
Paperless office Project
By taking a number of measures like process integration &
optimization and paperless office promotion, the company saved
250,000 Yuan in 2014. Besides, 182 OA business processes were
used online,, and 313,298 OA applications were submitted, up 32%
over the last year.
The company saved a total of 190,000 Yuan in paper purchase
and printing in 2013, higher than the goal of 150,000 Yuan. In 2014,
250,000 Yuan was saved in paper purchase and printing, higher than
the goal of 180,000 Yuan. From 2010 to the end of 2014,952,438
OA applications in total were submitted which saving almost 760,000
Yuan in paper purchase and printing and exceeding the goal by
20.9% or 630,000 Yuan.
In 2015, the company will keep pushing forward the paperless office
project to reduce the number of paper documents. It's planned to
save 250,000 Yuan at least in paper purchase and printing.
51
Canteen AC upgradingBefore upgrading, without the time controller, the canteen ACs were on even
there were no people inside the canteen, which caused energy waste.
Upgrading plan: the time controller was added to control the AC panel. When
there is a need to use the AC, the AC panel will be opened, thus saving energy.
Upgrading results: 160*500/1000*5*4*30+220*500/1000*5*4*30=114,00
0 KWH electricity, equaling to 114,000*0.629=71,706 Yuan was saved.
Waste water system electric cabinet component
working environment improvement Before improvement: since the components in the electric cabinet
need to be cooled down by the ambient air, which, however, contains
corrosive gases, the components tend to be corroded easily and
aged more quickly, causing malfunction, and even the breakdown
of the whole system. As a result, the water discharged cannot meet
relevant requirements, leading to serious environmental risks.
Improvement plan: more N2 was supplied for cooling, and the power
supply of the fan in the cabinet was cut off so that the components
cannot contact with the air, and thus the corrosion was prevented.
Improvement results: component cost before improvement – component cost
after improvement = 2,800*(22-2)+150*(42-3)+80*(36-4) = 64,410 Yuan.
Lower the waste of WNS100Before the upgrading, during the process that the Photo resist was
stripped, a large amount of agent would evaporate through the exhaust
pipe, causing continuous agent reduction in the stripper tank. New
agent was supplied continuously, but the evaporated agent condense
in the exhaust pipe was discharged directly, causing a great waste.
Upgrading plan: the WNS100 exhaust pipe was upgraded so
that the agent of WNS100 can flow back to be reused.
Upgrading results: 362,556 Yuan was saved annually.
Improvement made according to employees' proposals
Before upgrading After upgrading
Before upgrading After upgrading
Before upgrading After upgrading
For The Shareholders
For the Environment
For the Government
About the Company
For the Employees
For the Partners
For the Community
52
Suppliers are not allowed to hire child labor, and child
labor relief and juvenile protection regulations are required to
be developed.
Suppliers shall not force employees to work, and shall
allow employees to leave at will. The business ethnics system
shall also be developed by the suppliers.
Supplier shall independently arrange places for the
storage of hazardous chemicals, and shall provide their
employees with protective equipment.
Suppliers are required to develop the waste treatment and
energy efficiency plans.
Suppliers are required to obtain the ISO14001 or
OHSAS18001 certificates, build the CSR management
system, and sign the CSR agreement with their downstream
suppliers.
Supplier CSR management in five aspects
green Logistic Project
The large-sized glass substrates, which are large and thin, tend to
be broken in the process of air transportation when the flight takes
off/lands, and when the glass substrates are loaded/unloaded. In
the reporting period, to lower the breakage rate and transport cost
of large-sized glass substrates, the company stipulated that large-
sized glass substrates can only be transported by air upon approval.
In addition, the company independently bought insurance for large-
sized glass substrates, which is more reasonable.
In terms of bulk cargo transportation, the transport cost was charged
per trunk or per cubic meter, the logistic plan was made on a
reasonable basis, and the loading of trunks was effectively increased,
thus reducing transportation cost, and the carbon emission at the
same time.
In terms of transportation mode, to reduce the emission of
greenhouse gases, the company kept optimizing the transportation
mode by reasonably integrating air and land transportation. For
example, through the mode of air transportation from Shanghai to
Shenzhen + land transportation from Zhonggang to Hong Kong, the
total transportation cost was cut by 30%~40%.
In terms of the utilization of packing materials, the company reduced
the cost by recycling packing materials and changing the way of
packaging. The packing materials from the suppliers, like trays, blister
trays and angle boards were collected and selected for recycling. In
addition, blister trays and PPBOX were used together and repeatedly.
Tracking and controlling measures were conducted to lower loss and
waste in various aspects, thus reducing the packing cost. At the end
of December 2014, the recycling rates of the PP-boxes and EPP-
boxes bought by the company reached 266% and 385%, respectively.
Eco-friendly operation
53
The company requires all its logistics service suppliers to sign the
CSR agreement to share corresponding social responsibility. As of
October 31, 2014, all the 14 logistics service suppliers had signed
the agreement, realizing a signing rate of 100%. This measure was
effective in improving the social responsibility awareness of the
logistics suppliers, and in realizing win-win.
To practically improve its CSR management level of the logistics
service suppliers, in October 2014, the company launched the CSR
performance assessment. As of December 2014, the assessments
on 10 suppliers had been finished, and the qualification rate was
100%.
2015 Work Plan1. Gradually reduce the air transportation of large-sized glass
substrates, lowering transportation risks.
2. Enhance the CSR management of the logistics service
suppliers, such as refining the CSR performance assessment
standard, and developing the admission and elimination
system.
4. Require all logistics service suppliers to sign the CSR
agreement, and finish the CSR performance assessment on
all logistics service suppliers.
5. Further expand the assessment scope to all export and
import logistics service suppliers.
For The Shareholders
For the Environment
For the Government
About the Company
For the Employees
For the Partners
For the Community
54
At present, the company has built the QC080000 management
system, receiving the annual verification from third-party verifier
TUV, thus constantly increasing its hazardous substance control
ability and level, continuously lowering the internal and supplier chain
management risks, lowering the impact of products on environment,
and improving the satisfaction of the customers.
On May 17, 2013, the company issued the Environmentally Hazardous
Substances Control Standard. Developed based on international
environmental directives like REACH, PoHS and RoHS, industrial
regulations and the requirements of the customers, the Standard
concretely specifies the limitation and scope of application of related
forbidden and restricted substances, the management standard of all
products, parts and raw materials, and the forbidden and restricted
hazardous substance management standard for the suppliers.
In 2014, adhering to the principle of "Green production, sustainable
development, and healthy and safe production by all and for all", the
company will do a better job in hazardous substance management.
hSF management platform
So far, the company has finished the integration of hazardous
substance management process and control standard, and built the
hazardous substance management platform. Through the internal
information sharing in the HSF management team, information can
be provided to the customers, suppliers and the internal departments
effectively and accurately.
hAzARDouS SuBSTAnCE MAnAgEMEnT
Application of non-halogen materials
Due to the inherent toxicity of halogen substances which has imposed
a serious threat to human health, non-halogen operation has
become a general trend in the global electronics industry. To reduce
environmental pollution and constantly satisfy customer requirements
on environmental protection, the company has independently
developed a series of halogen substance reduction plans. Until June
2012, the company had replaced all traditional universal auxiliary
materials with non-halogen materials. Besides, non-halogen can
be provided according to the requirements of the customers. In
2013, non-halogen main materials, like non-halogen POL and tape
were started to be employed, and the employment rate has been
increasing gradually. In 2014, the non-halogen universal material
application standard was developed. In the standard, the halogen
control requirements of more than 70 related materials are higher
than the requirements of the customers, which indicated that Tianma
had entered into the era of non-halogen production.
HSF Training
55
hSF education and promotion
In the reporting period, measures like opening the HSF Green Class
and starting the Green Information periodical were taken to promote
the HSF education on the employees at different levels.
From July to October 2014, the environmental protection team of
the company, according to different subjects, developed different
training courses. Through the more than 10 training activities, the
environmental protection and HSF awareness of the employees were
effectively improved.
Internal publication Green Information was issued monthly, for the
purpose of introducing knowledge, laws, regulations, as well as
the latest news of the customers concerning hazardous substance
management, non-halogen universal material management, and
HSF.
The environmental protection education and promotion conducted
by the company . Every year after the Environmentally Hazardous
Substances Control Standard was issued, the company would
organize the suppliers to participate in special training, making
sure that the suppliers can understand the hazardous substance
management requirements of the company, and can meet the
requirements specified in the IECQ certificate.
2015 Work Plan1. Provide special environmental protection training and
assessment to the suppliers, help the suppliers build the
hazardous substance management system, and improve the
hazardous substance management level in the supply chain
of the company.
2. Conduct in ternal HSF t ra in ing accord ing to the
characteristics of different departments and posts.
3. Improve the HS r isk database, and have deeper
understanding and analysis of hazardous substance risks
faced by the company, thus preventing such risks from
happening.
For The Shareholders
For the Environment
For the Government
About the Company
For the Employees
For the Partners
For the Community
We create fair, impartial and open mechanism, create a passionate, open environment to mutual growth, every employee works and lives happily.
FoR ThE EMPLoyEES
PEoPLE FiRSTMuTuAL gRoWTh
58
After the Spring Festival of 2014, a large number of new equipment operators
joined the family of Tianma, which filled the labor gap caused by increased
productivity, and the number of employees thus reached to 18,882 at the end of
2014. In July 2014, a batch of graduates entered the company through the "Blue
Road" campus recruitment program. During the process of recruitment, priority
was given to people in local communities according to corresponding recruitment
procedure according to the requirements of CSR. In Tianma, the personal
performance and progress of the employees are considered very valuable, and
act as the basis for promotion, namely, based on an open and fair assessment
mechanism, the performance of the employees is rated, and the excellent ones
are published, which, in turn, encourages the employees to compete and be
better.
The employment of child labor is forbidden in Tianma. In case a child is hired by
accident due to the reason that the applicant uses a fake ID card or assumes
another person's identity, the case shall be reported to the local labor agency,
and the child shall stop working immediately and receive a physical examination,
to make sure that his/her health hasn't been affected. Then, the child shall be fully
paid and delivered to his/her guardian, and the company shall make sure that the
child can receive education until reaching the age of 16.
Total employees: 18,882
Remarks: the above employees mean the permanent employees, interns, and
outsourced employees of the "five companies in four cities".
Male 8,174 Female 5,308
Permanent employees:13,482
Male 11,018 Female 6,316
Fixed-term employees: 17,334
Male 3,769 Female 1,631
Temporary employees:5,400
Male 925 Female 623
unfixed-term employees:1,548
Total female employees
11,943
Total female employees
6,939
Baby Care Lounge
huMAn RighTS AnD EQuAL TREATMEnT
59
Optimization and improvement of the Wechat
platform
Since the establishment of Tianma Wechat platform in February
2014, more than 9,000 employees have used it to get access
to information concerning the news, cultural concepts, cultural
activities, and so on. Interactive activities like investigations,
lottery draws, delivering blessings and requesting songs
can be held on the platform, and entertainment information
relating to making friends, games, film etc. are also available.
Covering various aspects of the employees' daily life, the
platform makes the life of the employees more diversified. In
2015, following the core corporate values of "live and work
happily", Tianma will keep improving the Wechat platform,
walking closer to the life and work of the employees.
Wechat platform
Labor unions were set up in all industrial bases, responsible for
collective bargaining & negotiation, as well as enriching the life
of employees. Employee representatives, polled by employees
democratically, are entitled to, on behalf of the employees, negotiate
with the company, and are protected from being revenged or
suppressed. The labor unions convene the conference of employee
representatives periodically, in order to listen to the concerns of the
employees, and make corresponding improvements. During the
reporting period, 100% of the employees in all the industrial bases are
under the protection of the collective agreement. (Remarks: the data
of "Wuhan Production Base" and "NLT" are not included.)
To realize collective negotiation and enrich the life of the employees,
the company organizes the employee exchange every month, through
which, the proposals and reasonable suggestions of employees
concerning their work and life are collected for the purpose of
developing effective solutions. Suggestion boxes are arranged
prominently in the canteens and dormitories, and the proposals
and suggestions are collected and replied periodically by specially
designed persons. In addition, the questions raised by the employees
are answered by administrative personnel by means of phone, email
and Wechat. During the reporting period, no complaints concerning
the infringement of human rights or discrimination were received.
The company always concerns the life and development of the
disadvantaged, like the disabled. For example, job opportunities are
provided to the disabled as many as possible. Besides, child labor
and discrimination have never happened since its foundation, and
the company has never been complained or legally punished due
to the violation of the laws or regulations concerning child labor and
decimation. In the future, the protection of the disadvantaged will still
be a great concern and responsibility of the company.
In 2015, the company will improve the communication platform, so
that more suggestions of the employees can be heard, and better
human-centered services can be provided to the employees.
Remarks: only the discrimination and child labor information of the
"five companies in four cities" is disclosed.
For the Environment
For the Employees
For The Shareholders
For the Government
About the Company
For the Partners
For the Community
60
In 2014, the company held various activities to meet the needs of the employees in their spare time.
For example, sports games like basketball games, football games and badminton games were held.
On the International Working Women's Day, a series of events ("Care for Women" lecture, makeup
training, and tonic presenting) was specially held for the female employees, to make them face
work and life more confidentially. In the Mid-autumn Festival, the garden party and evening party
were held, enriching the life of the employees. At the end of the year, activities like the "The Voice of
Tianma" and "Talent Show of Tianma" were organized, creating a stage for the employees to show
themselves.
On January 2014, the 2013 annual celebration was held in various industrial bases. Diverse excellent programs, which
contained the mission, vision, core values the 30 years' history of Tianma, were presented to the employees.
Annual celebration
EMPLoyEE CARE
61
Shenzhen industrial base
After conducting the Care for Left-behind Children Program in 2013, in 2014, Shenzhen industrial base provided more helps for the employee
families with left-behind children. For example, paid home leaves were provided so that the employees can have more time to stay with their
children. The base also organized a series of value practice activities, like the essay contest and panel discussion, for the purpose of deepening
the employees' understanding of corporate values, and putting the corporate culture and values into practice.
Sunny/Open/Sharing "Youth Stars Talent Show" –Chinese
dictation
On the evening of August 5, 2014, the winners of "Talent of Chinese"
finally stood out after 12 fierce "battles" in the 11-day "Youth Star"
Chinese dictation contest. The Panel Plant, No.1 Module Plant, No.5
Module Plant, Department of Quality Control, Department of Factory
Service, Department of Logistics, Department of Human Resource,
Department of New Product Introduction, Department of Purchase,
and all fresh graduates participate in the contest. In the contest,
totally 27,439 words were collected by 328 employees. Among the
938 people participating in the audition, 240 people from 48 teams
entered the preliminary contest, and with the winners of the 33 people
participating in the repechage, 55 people finally stood on the stage
of the final. The contest was fully supported by the employees, and
played an active role in improving the knowledge of employees and
enriching their life.
Care for front-line employees
Since the beginning of 2014, the Employee Care Center of the
Department of Administrative Service has started to visit the front-
line employees at dormitories periodically. During the process, a lot
of suggestions were collected, and solutions were given. The visit
is effective in solving the problems and meeting the requirements of
front-line employees, thus providing them with practical care in life.
Care for left-behind children
Engaged in creating a cultural environment where the employees can
live and work happily, Shenzhen industrial base has taken a series of
human-centered practical measures to provide care for left-behind
children. According to a policy taking effect in 2013, employees with
above one year's standing in the company and with children in their
hometowns are allowed to have paid home leaves. The employees
highly praised the policy, for it gave them a longer time to stay with
their children. In 2014, 115 employees were qualified to take paid
home leaves in Shenzhen industrial base. The company prepared the
tickets of the big parks in Shenzhen, and arranged the home leaves
in the summer holiday, so that the employees can have outings with
their children. Through the activity, the employees felt the warmth and
care from the company.
For the Environment
For the Employees
For The Shareholders
For the Government
About the Company
For the Partners
For the Community
62
Warm Spring Action
From March to June 2014, primary department heads had one-
to-one communications with all site directors, team heads and
engineers, to have a deeper understanding of the problems faced
by the workers in life and work. Problems found during the period
of time were solved as appropriate. The activity greatly enhanced
the communication between the management and the workers, and
boosted the employee morale the engagement.
Tianma Cooperative (Phase 3)
On the Arbor Day of 2014, the Department of Administrative Service
held the "Date with Spring" planting activity. More than 200 employees
participated in it with high enthusiasm. Like the past two years, this
time, plants were also grown in the internal passages to beautify the
environment. In the sunshine of spring, beautiful plants were grown
with the laughter and sweat of the employees, making the corporate
environment more vibrant.
Chengdu Tianma
Chengdu Tianma also conducted diversified activities in 2014. During the Spring Festival of 2014, Chengdu Tianma arranged festival dinners
for more than 300 employees, and organized the activity of "Happiness on Wishing Tree". In May 2014, Chengdu Tianma organized a 10 km
hiking which contained the parts of backpack gift, Wechat interaction and lottery draw. The activity played an effective role in building a vigorous
and aggressive team.
Employ care
63
Wuhan Tianma
Wuhan Tianma also conducted diverse activities. Company leaders spent the Spring Festival with employees on duty. At the Lantern Festival
& Valentine's Day Lantern Show, all the lanterns were made by the employees, bringing the sense of achievement to the employees while
enhancing their ability of practice. Intercommunications between the workers and management were conducted quarterly, for the purpose
of solving the practical problems of the employees and realizing the barrier-free communication between both sides. To enrich the life of
the employees in their spare time, and improve their physical fitness, ball games and other interesting league matches were organized. The
company also organized employees to participate in the entertainment and sports activities held by the Wuhan East Lake Hi-tech Development
Zone, promoting the communication between Tianma and other companies in the zone.
Family Show
On August 16, 2014, the 3rd Wuhan Tianma Family Show was held
at Wuhan Wanna Go Theme Park. 59 family teams formed by the
employees played in 6 technology-themed zones, and visited the
grand exhibition of transformers. The highlight of the activity was
those lovely children, who created waves of happiness. The activity
well interpreted the corporate cultural concept of "Work and live
happily", and delivered the support and love of the company to the
employees and their families.
Run in Spring
To implement the national fitness program, on March 29, 2014, the
Labor Union of the Wuhan East Lake Hi-tech Development Zone
organized the enterprises in the zone to participate in the "Run in
Spring" long-distance race. The contestants started from the gate
of Hubei Olympic Sports Center, then ran along Gaoxin Road and
Guanggu Seventh Road, and finally reached the finish of the 7.5 km
route—Callalily Square in Future Town. The12representatives of
Tianma all finished the race.
EAP-employee psychological counseling
The company has arranged psychological counselors to provide
psychological counseling to all new employees. Through on-
site questionnaire investigation, the psychological counselors can
judge the personalities and differences of them, and then offer
corresponding counseling.
The psychological counselors provide the employees with periodical
psychological counseling, and the employees can also ask for
counseling and help according to their needs. Every week, the
psychological counselors will, through mass mailing, introduce hot
social issues and psychological knowledge to the employees, helping
them develop a healthy psychological condition.
Excellent team outward bound
On August 2, 2014, the 2-day "2013 Excellent Team Outward Bound
at Lulin Camp, Mount Jingshan" kicked off. Activities like "Yuanyang
Brook Drifting" and "Campfire Party" were held. Competing in
impromptu teams named "Big Apple", "Hero", "China Team" as so on,
the employees felt growing friendship, cohesion and cooperation, and
thus had a better understanding of the corporate values of "Passion,
efficiency and win-win".
For the Environment
For the Employees
For The Shareholders
For the Government
About the Company
For the Partners
For the Community
64
Shanghai AViC optoelectronics
Family Open Day
On April 19, 2014, a warm spring day, Shanghai AVIC Optoelectronics
invited employee families to participate in the Family Open Day
activity, as a reward to the employees for their hard work, and to their
families for their unselfish support. It's also a good opportunity for the
employee families to have a better understanding of the company.
130 employee families participated in the activity. They signed
their names on the signature wall of the reception room, visited the
company, enjoyed delicious food, played games, and knew the values
of the company in the process of interaction. The company prepared
candy, balloons, and specially arranged cartoon SpongeBob and
Doraemon figures to take photos with the children. In the game of
cooking food, the funny cooperation between the fathers and their
children made the air full of excitement and laughter. At last, each
child received a cute backpack as a gift.
After the activity, the employees indicated that they had a great time,
and were proud of being Tianma people.
In 2015, the company will organize more activities for the employees
to relax themselves, making them live and work happily in Tianma.
At 16:30 on August 3, 2014, Xundian County in Zhaotong City,
Yunnan Province was hit by a magnitude 6.5 earthquake.
Hearing the news, the company immediately inquired
employees from Yunnan in various industrial bases. Knowing
that the families of 6 employees were affected by the disaster,
and their families were living in tents since their houses were
damaged to different degrees, the presidents of Wuhan
Tianma Labor Union and Shanghai Tianma Labor Union, on
behalf of the leaders of the company, delivered the concerns
and encouragement of the company to them, and also
provided them with financial supports on August 15.
Labor Union expressed sympathy and solicitude for the employees affected by the earthquake in Yunnan
Employee care
65
EMPLoyEE TRAining AnD CAREER DEVELoPMEnT
LAMP missions The LAMP programs were still a focus of the company in 2014.
Different training programs were developed for the management
of different levels. There was the Eyas Program which opened a
green channel for the fast growth of onsite operators; the LAMP1
Program which aimed at improving the basic management ability and
leadership of basic management like directors, senior directors and
senior engineers; and the LAMP2 Program aiming at improving the
management ability and leadership of middle management like deputy
managers, managers and experts. Those programs, lasting for 3-4
months, helped the employees realize the transformation from self-
management to managing others, and then to managing managers.
Roc Training ProgramThe Roc Training Program was conducted for those high potential middle management personnel. Excellent middle and senior management
personnel were selected from all branches and industrial bases to participate in a special training program lasting for one and a half
years. Through the method of action learning, training was provided from the aspects of strategic management, strategic human resource
management, financial management, BSC and corporate operation simulation, for the purpose of training management talents of different levels
as the backup of the senior management. In addition, excellent management personnel had the opportunity to receive the middle and senior
manager training at the AVIC Business School, improving their management ability and comprehensive ability in other aspects.
LAMP training site
Roc Training Program
66
TTT internal instructors
To build an internal instructor team, the company conducted the "TTT
Internal Instructor" training program. Every year, the company will
invite external experts to train the employees, or send the employees
to study at external training institutions. In this way, a training net was
formed, through which, the employees can improve their skills and
abilities.
In 2014, the company also held rotated training for all employees
themed on "corporate strategies, corporate core values, and quality
awareness", so that all employees can have a comprehensive
understanding of corporate strategies and values, as well as their job
quality.
The Blue Road
In 2014, the company specially conducted the "Blue Road" training
program for the 800 new graduates, helping them to understand the
corporate culture, to be competent at their jobs, and to become a part
of their teams. The training comprised the three parts of centralized
training, factory practice and on-the-job training, and instructors were
specially arranged for them. The content and forms of the training
were designed according to the needs of the graduates, so that they
can realize the transformation from students to professionals, and
feel comfortable in the big family of Tianma as fast as they can.
To dream of going to college
To improve the educational level of the employees, in 2014, the
company created opportunities for employees meeting relevant
requirements to choose majors and colleges related to their jobs to
study. Taking this opportunity, some employees realized the dream of
going to college.
2015 Work Plan1. Develop special training programs for technical and
professional personnel to improve their professional ability
and level.
2. Push the fast on-the-job training for operators, accelerating
their skill improvement.
3. Keep building the instructor team, so as to improve the
internal training system.
4. Develop a standard training procedure.
5. Conduct the training result assessment.
Blue Road training site
Group photo of the TTT internal instructors
Remarks: only the training and education indicators of the "five
companies in four cities" are disclosed.
Employee training and career development
67
The employees of Tianma are paid in compliance with relevant
laws and regulations, and according to their posts and the industrial
remuneration level, so as to make sure that they can live a relatively
comfortable life. The labor contract signing rate of the company is
100%.
The Remuneration Management Regulations have been developed
to guarantee the rights of the employees in remuneration and welfare,
and the welfare coverage rate of Tianma is 100%. The company
provides work-related injury insurance, endowment insurance,
medical insurance, unemployment insurance, maternity insurance
and housing fund for the employees. According the sex and the
nature of jobs of the employees, protective equipment, maternity
leaves, paternity leaves, breastfeeding leaves, marriage leaves
and paid leaves are provided, with a coverage rate of 100%. Every
year, the company will provide activity (dinner parties, entertainment
activities, sports games etc.) organization fund to the management
personnel and operators, with a coverage rate of 100%. The only-
child allowance is provided as required. On the International Working
Women's Day, gifts will be given or activities will be held, and on other
festival days, festival allowance will be granted. Meal allowance is
provided to night shifts and special posts. In 2014, the performance
assessment rate of the employees was 100%.
A number of human-centered management projects were conducted
in 2014. From the perspective of employees, convenient services,
like the Wechat platform salary query, were provided. To improve the
sense of safety of the employees, the company bought international
accident insurance for the employees working abroad, protecting the
interests of the employees in case of an accident.
In 2015, the company will improve the remuneration and welfare
system and performance management system. Multiple modes
and channels will be employed to better motive the employees,
improve their performance, and finally increase the comprehensive
performance and development height of the company.
REMunERATion AnD WELFARE
Wuhan Tianma Family Show
Remarks: only the welfare, fixed-term performance, and career
development assessment results of the "five companies in four cities"
are disclosed.
68
69
Through strategic transformation and a series of reforms in corporate culture, business and operation, we always fight for the win-win with our customers, suppliers and partners.
FoR ThE PARTnERS
MuTuAL DEVELoPMEnTFoR Win-Win
70
In-Cell technique (In-Cell integrated touch)
The technical approach is clear, the basic research has been
done, and the demo has been produced. Currently, the focus is
expanding multi-channel application of the technique.
On-Cell technique (On-Cell integrated touch)
A number of products using the technique have been produced in
quantity, and breakthroughs have been made one after another.
The PIN reduction plan not only improved product performance,
but also lowered product cost.
Flexible Display technique (flexible display)
The company has successfully developed unique substrate
release technique. It can meet the requirements of 400C+ TFT-
Array technical process, and effectively expand the selection
scope of TFT-Array, laying a solid foundation for the following
technical development.
AMOLED technique (active matrix/organic light emitting diode)
The technique holds a leading position domestically, and some
of its technical indicators have reached international levels, filling
corresponding domestic gaps. In 2014, the full-color AMOLED
was successfully produced, and the mura remuneration technique
was successfully developed.
Oxide TFT technique (metal oxide TFT)
The company has completed the design and development of a
series of IGZO LCD/OLED. Displays with different resolutions.
The oxide-driven AMOLED displays have been successfully trial-
produced.
EMTP technique (Electro-Magnetic Touch Panel)
The company has successfully developed the electrode-shared
electromagnetic-capacitive integrated dual module driven system,
based on which, several electromagnetic-capacitive integrated
technical solutions have been developed, and the technical
indicators of such solutions have reached international levels.
3D technique (3D display)
By optimizing panel pixel structure design, the company has
developed AHDDP naked-eye 3D module with independent
patented technology. In terms of the development of spectral
components, the company is the first one realizing the mass
production of LCD lens, and its self-developed LCD lens have
been fully recognized by the customers.
5.5inch FHD RGBW display technique
The first RGBW full HD display developed by the company is an
globe-leading product in the field of high resolution displays.
TEChniCAL DEVELoPMEnT & innoVATion
In the reporting period, the company kept a good partnership with a number of mainstream terminal
producers around the world as one of the main panel suppliers in the global smartphone market.
With increasingly increased independent innovation ability, the company has helped many world
famous cell phone brands realize the world premieres of several products. Before the development
and launch of new products, the company will always conduct the technical evaluation, and after the
trial production of new products, a series of reliability tests will be performed, and only qualified ones
will be produced in mass. Following the strategy of leading the industry in technology, the company
actively develops future technology, ensures the supply of core resources, and makes technical
innovation.
Technical strength
71
At the same time of exploring and developing new display techniques,
the company always adheres to the principle of "energy saving and
emission reduction". It has been working on improving the penetration
rate and lowering the energy consumption of displays technically
by means of aperture rate increase, size reduction, technical
development, electrode optimization, negative LCD switch, and so on.
As a result, the environmental pollution caused by display production
has been reduced.
The company strives to be an globe-leading producer of small and
middle-sized displays. To realize the goal of the coming year, it also
puts technical development and innovation first. In the coming year,
the company will focus on start-up application and start-up technical
development; take active measures in the development of advanced
techniques like integrated touch, Metal Oxide TFT, naked-eye 3D
technique, and Flexible Display; and turn the organic light-emitting
technique into products, trying hard to realize the strategic planning.
From April 10-12, 2014, the CITE 2014
was held at Shenzhen Convention and
Exhibition Center. At the expo, Tianma
showcased its latest achievements in
advanced techniques like LTPS, AM-
OLED and integrated touch panels made in
the past year.
The 4.3"AM-OLED display employing ONCELL technique
was also presented at the expo. Boasting the features of
both OLED and ON-CELL, the product has the advantages
of bright colors, a high contract ratio, a high anti-interference
capacity, and an ultrathin body.
The 5"HD INCELL display, well demonstrating the combination
of embedded touch and the high resolution SFT technique,
also had its debut at the expo. Featuring a wide viewing angle,
a high resolution, and the function of multi-point touch, it won
the 2014 CITE Innovative Product Development & Application
Award.
New products were showcased at the 2nd CITE
From September 23-27, 2014, the PT/EXPO COMM CHINA
2014 was held in Beijing. This biggest and most influential
world-class communication expo in Asia attracted the
information and communication magnates around the world.
As an globe-leading small and middle-sized display panel
producer, Tianma showcased its latest research results,
including the ultrahigh resolution LTPS panel, self-luminous
AM-OLED panel, and In-cell capacitive touch panel. Many
famous cellphone brands, like Huawei, Samsung, Sony, ZTE
and Gionee, displayed their latest high-end 4G cellphones,
presenting a feast of 4G cellphones to the visitors.
New products showed at PT/EXPO COMM CHINA
Award presentation site
2014 Tianma (Greater China) Industrial Products VAP Communication & Exhibition
For the Employees
For the Partners
For the Environment
For The Shareholders
For the Government
About the Company
For the Community
72
SuPPLiER CSR MAnAgEMEnT
The purchase amount of Tianma in 2014 was 6.1 billion Yuan. At
present, most of the suppliers are labor intensive companies, and only
a few suppliers engage in equipment manufacture, commissioned
sales of parts, culture & education, and e-business.
In the reporting period, the company newly introduced 283 suppliers,
and weeded out 56 suppliers. The suppliers of the company fall into
two categories—productive suppliers and non-productive suppliers.
The 565 productive suppliers provide the direct materials of LCDs &
LCMs, and the chemicals and gases needed in the production. The
1,416 non-productive suppliers provide the company with equipment,
parts & spares and fixed assets. According material characteristics,
the suppliers are divided into Type I, Type II, Type III and Type IV
suppliers. Type I, II and III suppliers are productive, and Type IV
suppliers are non-productive. There are 400 Type I suppliers. Among
the whole 1,981 suppliers, 1,518 are registered in China, and 463 are
registered abroad.
In the reporting period, 283 new suppliers signed contracts with the
company, and before signing, they were all required to sign the CSR
agreement before conclusion of contract.
As early as 2011, the company developed relevant documents such
as the Supplier Management Procedure, Supplier Import Certification
Procedure and Supplier Elimination Procedure】to regulate supplier
management. Based on such documents, the company compiled
Supplier CSR Assessment Form and other relevant documents on
November 20, 2012. On-site assessments, including the supplier
annual CSR performance assessment and new supplier CSR
performance assessment, are conducted according to the form. In
addition, all suppliers are required to sign the CSR agreement.
In 2014, the company kept pushing forward the CSR management
system. By the end of 2014, 45 suppliers had received the annual
CSR performance assessment, and the qualification rate was 100%.
In the reporting period, no suppliers with child labor, slave labor, or
significant or potential negative impacts on the environment, human
rights, labor and the society were found. The company assisted two
major suppliers (Xiamen Hongxin and Jiangxi Woge) to build the CSR
system, for the purpose of improving their CSR management and
thus realize common development. 2015 work plan1. Conduct CSR training for, and supervision and onsite
assessment on the suppliers.
2. Enhance supplier CSR promotion.
CSR training
In the reporting period, the company conducted 4 persons/
day supplier CSR training. The trainees were all the middle
and senior management of the suppliers, and the training
content included EICC, SA8000, ISO26000, etc. The training
was conducted to introduce the concepts, significance and
standards of CRS to the suppliers, improving their CSR
management level.
CSR performance assessment
To build a supply chain CSR management system, during
the reporting period, the company conducted on-site CSR
assessments on the major suppliers. The assessment
content included on-site inspection, data review and
employee interviews. No significant defects were found in the
assessments.
Assist major suppliers to build the CSR system
CSR training site
Remarks: only the supply chain indicators of the "five
companies in four cities" are disclosed.
73
outsourcer management At present, the outsourcers of the company include the contractors
of the canteens, real estate and shuttle bus leasing. The employees
of the outsourcer mainly fall into real estate personnel, canteen
personnel, resident personnel of the suppliers, and the personnel of
equipment suppliers. To enhance the CSR management of partners
like outsourcers, in 2013, the outsourcers of canteens and real estate
were included in the CSR management system, and the EICC Audit
Form was developed based on the requirements of EICC. As of July
2013, the EICC audits on such outsourcers had been finished, and
the scores of all the outsourcers were above passing grade of 60
points.
In 2014, the company managed its outsourcers in strict compliance
with the Staff Canteen Management Regulations, Sanitation and
Hygiene Management Regulations and Vehicle Management
Regulations. In addition, according to the requirements of EICC, it
asked the outsourcers of the canteens, real estate, cleaning business
and shuttle bus leasing to sign the CSR agreement or letter of
commitment, and conducted strict supervision and control according
to the requirements thereof.
In 2014, the company consumed 65,789 L gasoline. To reduce the
environmental pollution caused by the means of transportation, the
company provided that gasoline of the same standard shall be used;
that fuel additive shall be used to ensure the complete combustion
of gasoline, reducing the emission of exhaust; that drivers shall
drive according to relevant requirements, and avoid smashing the
accelerator as much as possible, reducing gasoline consumption; and
that vehicles failing to meet the exhaust emission standard and with
high emission shall not be used.
2014 work summary
1. Introduce high quality canteen outsourcers, and push forward the
reasonable competition among different outsourcers, thus improving
the service level of the canteens.
2. Ask the canteens to provide diverse dishes and ensure continual
food supply.
3. Assess external housing resources ahead of time and select good
ones to meet the growing dormitory demands caused by the increase
of employees.
4. Improve the quality of dormitory outsourcers to create a more
comfortable living environmental for the employees.
5. Optimize the departure schedule and route of the shuttle buses to
save cost and reduce carbon emission.
2015 Work Plan1. Keep introducing high quality canteen outsourcers, and
pushing forward the reasonable competition among different
outsourcers, thus improving the service level of the canteens.
2. Organize and improve the safety management regulations
and procedures, and conduct safety inspections periodically.
3. Improve the living conditions of the dormitories, provide
more administrative services, thus further improving the living
conditions of the employees.
Canteen
Dormitory
For the Employees
For the Partners
For the Environment
For The Shareholders
For the Government
About the Company
For the Community
74
i. Customer service
The Marketing Center comprises the professional display team and
consumer product team to meet the demands of different types of
customers. To provide our customers with timely technical support,
the professional display team has set up service stations in domestic
cities such as Shenzhen, Xuzhou, Shanghai, Wuhu, Zhongshan,
Zhuhai and Tianjin, and arranged third-party technical resources in
foreign markets such as Mexico, Japan and Europe. Beyond that, we
has also built a matrix team and a CQ work team which can response
quickly to the demands of the strategic and major customers of its
professional display business. The consumer product team has
service stations in domestic cities such as Shenzhen, Guangzhou,
Huizhou, Xiamen and Shanghai, and sales & service stations in USA,
Japan, Korea, Taiwan, etc.
We conduct the satisfaction survey on target customers annually to
deepen the communication with them and make improvements based
on the feedback of the customers. We select target customers from
the strategic and major customers defined by the professional display
team at the beginning of the year and major customers of CQ team
and conduct the survey via the e-questionnaire. The final customer
satisfaction results are obtained based on the weighted average
cores of the e-questionnaires.
The customer satisfaction survey of 2014 was completed in
December 2014. The survey covered 6 aspects—product prices &
delivery, quality service, new product development, environmental&
hazardous substance management, after-sales service, and
business communication. Each item is scored within a scale of 5~1,
which are corresponding to the five grades of "excellent, satisfactory,
acceptable, unacceptable, and horrible". In addition, the suggestions
of the customers were also collected, so that both the satisfaction and
expectation of the customers were known to the company.
Compared with previous survey results, those of 2014 showed an
overall improvement. The company will develop solutions to the
problems found, and try to provide the customers with a better service
in the next year.
Supporting a wide range of applications in mobile terminals, vehicle-mounted devices, medical
equipment, and industrial control equipment, Tianma aims at being the world's leading display
company respected by the society and loved by the employees. At present, we have built a global
technical support platform. Our consumer products go to both domestic and foreign markets, and our
professional display products are sold to the Greater China, European, American and Asia markets.
CuSToMER RELATionS
75
Strengthen the backstage/Increase competitiveness
Solve problems
Rate of timely customer complaint (8D) closure
Repeat complaint Customer deeper information
exploration
1. Customer feeling2. External quality cost
internally Push forward company
promotion
Externally Promote business development
Announcement
Clear status quo/problem solved
During the reporting period, the company strictly followed the laws
and regulations regarding advertisement and promotion during
the process of conducting marketing and advertising activities. It
has never sold forbidden products, or any products questioned or
disputed by the stakeholders.
During the reporting period, the company never violated laws or
regulation regarding product & service health and safety, regarding
information & product marking, or regarding voluntary codes. Never
was it seriously fined due to providing products or service against
relevant laws and regulations, or complained by the customers due
to infringing customer privacy or losing customer data. In the future,
the company will develop regulations concerning the above issues as
preventive measures, thus improving the CSR image of Tianma.
For the Employees
For the Partners
For the Environment
For The Shareholders
For the Government
About the Company
For the Community
Core values of
customer service
Remarks: only the product responsibility indicators of the
"five companies in four cities" are disclosed.
76
GE"2014 China Supplier Technical Innovation Award"
At the 2014 GE China Supplier Conference held in Beijing on May
22, 2014, the X-ray digital flat panel detector developed by Tianma
won the technical innovation award, which meant that Tianma, as
the only domestic provider of the device, had broken the mode that
the production of such core devices was monopolized by foreign big
producers. This award also showed GE's trust in Tianma.
OPPO"2014 Supplier Perfect Quality Award"
On December 9, 2014, Tianma General Manager Liu Jingyu and
Deputy General Manager Lou Jun attended the 2014 Global Supplier
Conference of famous cellphone brand OPPO. At the conference,
Tianma won the "2014 Supplier Perfect Quality Award" presented by
OPPO COO Mac. As a confirmation to suppliers ensuring products
with excellent quality and great support to OPPO, the award was
only presented to 6 suppliers from totally more than 480 suppliers.
Therefore, it's a very high reorganization of Tianma's product quality,
and an expectation of closer cooperation and higher product quality
form OPPO.
AVAYA "2014 Best Supplier Award"
On May 20, 2014, AVAYA, the second biggest VOIP producers in
the world held its 2014 supplier summary conference in Singapore.
Tianma won the "2014 Best Supplier Award" for the solid quality
of its products and its excellent service concerning MONO and
TFT products in 2013. The award indicated that the quality and
performance of Tianma's LCDs for universal industrial products were
highly regarded by international customers.
ZTE"2014 Global Best Partner Award"
At the ZTE 2014 Supplier Conference held on November 24, 2014
at Intercontinental Hotel Shenzhen, Tianma won the highest award
"2014 Global Best Partner Award" as a confirmation to its excellent
performance in 2014.
Lenovo "Diamond Award" & "Best Service Award"
On May 22, 2014 Lenovo Core Supplier Conference was held at
the Wuhan East Lake New Technology Development Zone. Awards
covering technology, service, supply and quality and the diamond
award were handed out to its suppliers. Tianma won the Diamond
Award and Best Service Reward. The Diamond Award is the highest
award to the global suppliers of Lenovo, only belonging to suppliers
performing excellently in technology, service, supply and quality
during their cooperation with Lenovo in the past year. Tianma General
Manager Liu Jingyu attended the conference and accepted the
awards on behalf of the company.
Customer relations
77
ii. Customer complaint handling
Rejects, the proportion of rejects, the places of reject occurrence,
and the pictures of rejects will be handled by Tianma effectively.
Where a reject is complained, the CS engineer will, right after
receiving the complaint, confirm relevant 2D information, make a
preliminary judgment of the reason, and at the same time, report it
to the company. The company will, according to the conditions of
the product (product stored by the customer, assembled product,
product in translation, product stored by the company, or product
in process), give an emergency response within 24 hours. In case
it's the company's fault, the company will provide corresponding
maintenance, remuneration, return or exchange service as soon as
possible. If the customer has no specific requirements, the company
will provide the reason analysis report within 3 working days, and the
8D improvement report within 5 working days. A customer complaint
can only be closed upon the verification and confirmation of the
customer.
On May 31, 2014, customer A reported a problem of blurred screen. After
receiving the complaint, the company acted soon to find out the reason.
Through communication at teleconferences, it's preliminary judged
that the problem was caused by the temperature remuneration of the
software used by the customer. Later, the company sent engineers to
the customer to help solving the problem. Through a week's analysis and
tests, the problem was finally solved.
Although the problem was caused by the customer, the company still
provided timely on-site service, ensuring the normal production and
qualified delivery of the customer. This also full interpreted Tianma's core
values of "Passion, Efficiency and Win-win", and presented Tianma's
good corporate image.
Case II
At 10:00 on October 20, 2014, customer B complained the scratches
of LCDs produced on a production line. Among the 5,000 pcs, rejects
were found in 50 pcs, with a reject ratio of 1%. After receiving the call,
our personnel rushed to the customer's plant, and determined that it's an
accident of single lot rejects. The risk lot was determined quickly, and the
normal production of the customer was not interrupted.
At 11:50 the same day, our personnel tracked and sorted the rejects
according to code information to ensure the normal production of the
customer.
At around 14:00, the raw materials were unpacked at the company, and
20K rejects were found from the risk lot, and were isolated and sorted.
Totally 120 pcs of scratched LCDs were found at last. The materials of
other lots were also examined, and no rejects were found.
The efficient performance of Tianma was highly praised by the customer.
This case is a good demonstration of Tianma's core values of "Passion,
Efficiency and Win-win", and a good presentation of Tianma's corporate
image.
Case I
2015 Work Plan1. Conduct quarterly visits to strategic customers, to collect
information concerning product quality and performance.
2. Develop the cross-department weekly review system to
handle the complaints of strategic and major customers.
Follow up complaint handling every week to make sure timely
and effective resolution.
3. Further improve the CQ team by increasing CQ resources,
improving CQ ability and focusing on the demands of major
accounts.
4. Build the customer complaint analysis lab, and increase the
number of analysts, so as to handle complaints effectively.
5. Optimize the customer complaint procedure to support the
major account strategy of the company.
For the Employees
For the Partners
For the Environment
For The Shareholders
For the Government
About the Company
For the Community
78
79
Always committing ourselves to serving the community and philanthropy, we have been pushing forward our community development plan for the purpose of building a better society.
FoR ThE CoMMuniTy
ACTiVE RETuRn unSELFiSh DEDiCATion
80
Organize and promote voluntary activities;
Develop volunteers' activity plans and regulations;
Recruit, train and commend volunteers;
Expand the range of voluntary service;
Conduct internal mutual assistance and fellowship parties;
Enhance the communication with other non-profit organizations;
Other voluntary activities.
Tianma Volunteers Association (TVA), founded in March 2009, is a
non-profit organization subordinated to AVIC International Volunteers
Association. It's formed by Tianma employees who provide voluntary
service to the society.
SERVE ThE CoMMuniTy
We are Tianma volunteers, and our names are "responsibility" and "dedication". We melt the cold
indifference with the warmth of love, we arouse the love of more with our sincerity, we challenge
difficulties with courage, and we help others with action.
We believe: love is something real. It's I give you a helping hand when you are in need.
Today, we serve the society as a member of it. Tomorrow, hand in hand, we create a better future.
Service scope
Voluntary activity site
81
Shenzhen industrial base—Visit the senior citizens center
On November 16, 2014, TVA joined Baolong Community Volunteer
Team of Longgang District, Shenzhen to visit Longgang Senior
Citizens Center. During the one-day activity, the members of TVA
helped the seniors hang mosquito nets, assisted them in cutting their
hair, and chatted with them while sharing the fruits they brought there.
The activity was ended by a wonderful magic show.
Happy times always fly. With the company of Tianma volunteers, the
seniors had a great day. When sending off the volunteers, the seniors
asked the volunteers to work hard and come to visit them often. In
the activity, the seniors felt the love and care from Tianma volunteer
as from their children. During the process of bringing happiness and
care to the seniors, the volunteers fulfilled their social responsibility in
a practical way.
Shenzhen industry base—An Adventure with Children
On November 16, 2014, TVA members had an adventure with the
children from a child welfare home at Vanguard Supermarket in
Longgang District, Shenzhen. Forming families with the children in
the one-to-one way, the volunteers offered their love and support in
a special way.
Guided by the volunteers, the children carefully observed the
commodities in the supermarket with great interest and passion.
From the volunteers, the children learned that the commodities
were placed according to certain orders, each commodity had a tag,
everything in the supermarket must be paid before being taken out,
customers must wait in line to pay, and so on. At last, the children
shopped independently with the help of the volunteers. During the
process, those children learned how to use courtesy expressions in
communication.
The day passed quickly. Before leaving, the volunteers received
beautiful pendants from those lovely children. They were small, but
were filled with the gratitude of the children. From the smiles and
the eyes kindled by happiness of the children, they understood that
happiness is not just about being loved and cared, actually, it's more
about loving and caring others. Through this activity, we offered our
love and care, which, in turn, improve our CSR image.
My heart was warm
From TVA member Zeng Xiaohua
I feel honored that I had the opportunity to visit those seniors on behalf of
TVA. After getting close to them, I realized that they didn't live happily as
we thought. I felt what they really needed are love and care.
I remembered that an old woman sitting by me said a lot with Cantonese.
I couldn't understand her. I just looked at eyes, smiling. From her eyes,
I can see that she really wanted to find someone to talk. We prepared
fruits and a magic show, and improvised a musical show for them. They
were happy, and I felt that my heart was warm.
For the Partners
For the Community
For the Employees
For the Environment
For The Shareholders
For the Government
About the Company
82
Shanghai Tianma—Donation to Xiedui Village
Xiedui Village in Xiexiong Township, Dingqing County, Changdu
Prefecture, Tibet Autonomous Region is a remote village 32 km away
from the township government. Standing 4,200 m above sea level,
this little village had 986 people from 141 families. Limited by the poor
traffic and communication conditions, people there seldom touch the
outside world. When winter comes, the village will be inaccessible
due to heavy snow, and villagers can only get warm and cook with
cow dung. Lacking labor and threatened by Kaschin-Beck disease, a
popular disease there, the village is very poor.
To help the villagers, Shanghai Tianma solicited donations from
employees and their families, calling them to donate cloth, toys and
school supplies that they didn't need. The donation site witnessed
many touching moments. A five-year girl put her favorite toys into the
collection box; some people forgetting preparing donations hurried
to dormitories to get what they had; and a little girl said to her mother
that she wished that the children there can live healthy and happily as
her.
During the process of donation, we learned how to love, and what's
more, we taught our later generations the significance of love. This
activity is a demonstration of Tianma's corporate value of "Win-win",
and also the CSR of Tianma.
Love is a simple gesture
From TVA member Huo Sitao
The donation was very successful. They did much more than
we expected. As a volunteer of the activity, I was very moved,
and I deeply felt the power of love.
Even in today's China where the economy booms, there are
still people living in poverty, and they need the care and help of
the society. To help this group of people, the fifth Party branch
of Tianma organized the donation, so that Tianma people can
send their love and care to the primary school students in
Xiedui Village. This activity was held not only to pass our love,
but also to encourage the children that although life is hard,
they are still loved and helped by many people.
Love is a simple gesture. I hope that it's just a start. Living
under the same sky and on the same land, we can do more for
them, to give them strength and hope, helping them live happily
and healthy.
Serve the community
83
Wuhan Tianma--Student grant project
To actively give back to the society, send care and love, offer help
to the disadvantaged, and fulfill CSR, the Party committee of Wuhan
Tianma conducted a student grant project. Through one-to-one
assistance, three poor students in Wuxue City, Hubei received the
grant until they graduate from the high school. The basic information
of the three students is as follows:
Tang XX, male, 16 years old, is an excellent high school junior of
Wuhan Wuxue Middle School. The salary of his father who works
outside is the only economic income of this poor family, and none of
the family members is covered by the subsistence allowance or any
other welfare.
Mei XX, male, 18 years old, is a high school senior acting as the
Secretary of the Youth League Committee of his class. His father,
a farmer, suffers from eye disease. His mother suffers from aplstic
anemia. Due to the repeated relapse of the disease, she visited
many hospitals like Wuhan Center South Hospital, but still hasn't fully
recovered. The high medical expenditure is a huge burden for this
poor family.
Wu X, male, 18, is a high school senior. Ranking No. 1 in his class,
Wu acts as the Monitor on Duty and also the Representative of
Physics. His father has been suffering from hepatitis B and stomach
trouble for many years, but still works in a chemical factory to support
the family. His mother is a housewife, staying at home to take care of
Wu and his younger brother. What makes the condition of the family
worse is that Wu has been diagnosed with cyst of jaw, and a lot of
money has been used on it. Osteotomy is possibly needed in the
future.
Besides, Wuhan Tianma Party committee also called other Party
members to help these students economically and psychologically,
making them feel warmer from the society, have the confidence to
overcome difficulties, and be a useful person in the future.
Shanghai AViC optoelectronics—Voluntary activity at the Former Residence of Chen yun
On November 29, 2014, Shanghai AVIC Optoelectronics organized
employees to visit the Former Residence of Chen Yun at Liantang,
Qingpu District, Shanghai and Qingpu Revolution History Memorial
Hall, and conducted a voluntary activity.
The employees first visited the Former Residence of Chen Yun.
In the process, they deeply felt Chen Yun's spirit of "A man must
have his goals, and then he fights with a group of people with the
same goals", and thus had a better understanding of Tianma's core
values of "Passion, Efficiency and Win-win". After the visit, under
the arrangement of the volunteers at the residence, the employees
cleaned part of the residence by wiping furniture, wiping windows,
sweeping the floor, and collecting litters. This voluntary activity helped
the employees understand Chen Yun's spirit of "persistence and
struggle".
Voluntary service makes me happy
From TVA member Zhao Shuohua
Chen Yun was a great revolutionist, a politician, and one of
the main leaders of the New China. He was also one of the
founders of the China's socialist economic development cause.
On November 29, 2014, we visited the Former Residence of
Chen Yun. Despite of the drizzle, we visited the residence in
high spirits, having a close understanding of the great man's
life. After the visit, we cleaned the exhibition hall and the
backyard garden. The activity made me feel the happiness
of voluntary service, and also inspired me to contribute more
to corporate development, and to the socialist economic
development.
For the Partners
For the Community
For the Employees
For the Environment
For The Shareholders
For the Government
About the Company
84
Shanghai AViC optoelectronics—huihong Village Assistance Program
Huihong Village Assistance Program is always a focus of Shanghai AVIC Optoelectronics. To
make sure the progress of the program, in 2014, the company developed detailed assistance
plan which covered five items, namely, a mutual visit, a Party seminar, a donation, an
employment training exercise, and a student grant.
In January 2014, a team headed by Party secretary Li Li visited the impoverished families
and the villagers suffering from serious illness in the village, and offered them some financial
support. During the process, they chatted with the villagers, asking them their employment and
economic conditions, the education of their children, and their difficulties and problems that
need to be solved by the local village Party committee. They also encouraged the villagers to
face life with confidence and a positive attitude.
In the four years since 2010, Shanghai AVIC Optoelectronics visited the needy families in the
village everyone, helping them solve practical problems, and making them feel the warmth and
care of the society. This activity is a good demonstration of Tianma's CSR image.
Shanghai AViC optoelectronics—The 7th"To Walk, To Love" urban Charity hiking
Duxia Temple, located at the hillside of Yazhuokawalarong Mountain
in Zhaba, Daofu County, Sichuan Province, has a history of more
than 500 years. Since 2009, the temple has adopted over 150
Tibetan children. Living in poverty, these children cannot get access
to normal education, and Duxia Temple thus became the school for
them to learn natural and social knowledge, and the home to be fed
and sheltered. However, as the coming of more and more children,
the temple faces increasing economic burden, and sometime even
cannot make sure the food supply of the children.
To help these children, the "Children from the Snowy Land" team of
Shanghai "To Walk, To Love" Charity Development Center held the
7th"To Walk, To Love" Charity Hiking on Chongming Island, Shanghai
on November 8, 2014. With the slogan of "I walk one km, you donate
one Yuan", the organizer called the society to walk for the pass of
love. Hearing the news, many employees of Tianma joined the 30 km
hiking, hoping to help the children with their efforts.
In the process of hiking, the love of the society was passed to children
in Duxia Temple, helping them
grow in the world of love.
Love makes the world better
TVA member Song Liangliang
It was November 8, 2014. When I was reading the messages
from my Wechat friends in my morning drowsiness, I was
attracted by a message called "To Walk, To Love". A sense
of shame awakened me completely, because I realized that
when I was still dreaming, many of my friends have arrived
at the beautiful Chongming Island to participate in the 7th"To
Walk, To Love" Charity Hiking, for the purpose of funding for
the children in Duxia Temple. I was moved by their kindness,
and I believe that my other colleagues had the same feeling.
It's heard that they spent 5 and a half hours to finish the 30 km
hiking, and a lot of money was raised to help the children in
Duxia Temple.
Although the hiking is over, the transfer of love will never stop.
Like one song says, "Love makes the world better."
Serve the community
85
Note:" ● ": full disclosure; " ○ ": UndisclosedStandard disclosure (Part i) general Standard Disclosure
APPEnDiX
G4 indicators Index Disclosure degree Remarks
1.
Strategy & analysis
G4-1Provide a statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and the organization's strategy for addressing sustainability.
P4、P5、P21、P40 ●
G4-2 Provide a description of key impacts, risks, and opportunities. - ○
2.
organizational Profile
G4-3 Report the name of the organization P8 ●See theannual report for details
G4-4 Report the primary brands, products, and/or services. P8 ●See the annual report for details
G4-5 Report the location of the organization's headquarters. P8 ●See the annual report for details
G4-6Report the number of countries where the organization operates,and names of countries where either the organization has significant operations or that are specifically relevant to the sustainability topics covered in the report.
P10、P11 ●See the annual report for details
G4-7 Report the nature of ownership and legal form. P8 ●
G4-8Report the markets served (including geographic breakdown, sectors served,and types of customer and /beneficiaries).
P8、P39、P74 ●
See the annual report for details
G4-9 Report the scale of the organization. P8 ●G4-10 Report the total number of employees by employment contract and gender P58 ●
G4-11Report the percentage of total employees covered by collective bargaining agreements.
P59 ●
G4-12 Describe the organization's supply chain. P72、P73 ●
G4-13Report any significant changes during the reporting period Regarding the organization's size, structure, ownership,or its supply chain.
P41、P72、P73 ●
G4-14Report whether and how the precautionary approach or principle is addressed by the organization.
P70 ●
G4-15List externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or which it endorses.
P89 ●
G4-16
List memberships of associations (such as industry associations) and national or international advocacy organizations in which the organization: ·Holds a position on the governance body;·Participates in projects or committees;·Provides substantive funding beyond routine membership dues; ·Views membership as strategic. This refers primarily to memberships maintained at kept in the name of the organization level..
P89 ●
3.
identified Material
Aspects and Boundaries
G4-17
List all entities included in the oganization's consolidated financial statements or equivalent documents.Report whether any entity included in the organization's consolidated financial statements or equivalent documents is not covered by the report.
P8 ●
G4-18 Explain the process for defining the report content and the Aspect Boundaries.Explain how the organization has implemented the Reporting Principles for Defining Report Cotent.
P20、P21 ●
G4-19 List all the material Aspects identified in the process for defining report content.
P20、P21 ●
G4-20For each material Aspect,report the Aspect Boundary within the organization.
P23 ●
G4-21 For each material Aspect, report the Aspect Boundary outside the organization.
P23 ●
G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements.
P2 ●
G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries.
P22 ●
gRi guideline
86
G4 indicators Index Disclosure degree Remarks
4. Stakeholder Engagement
G4-24 Provide a list of stakeholder groups engaged by the organization. P20 ●See the annual report for details
G4-25Report the basis for identification and selection of stakeholders with whom to engage.
P20 ●See the annual report for details
G4-26
Report the organization's approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. And an indication of whether any of the engagement was undertaken specifically as part of the report preparation process.
P20 ●
G4-27
Report key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.Report the stakeholder groups that raised of the topics and concerns.
P21 ●
5.
Report Profile
G4-28 Reporting period (such as fisca or calendar year) for information provided. P2 ●G4-29 Date of most recent previous report (if any). P2 ●G4-30 Reporting cycle (such as annual, biennial, etc.) P2 ●G4-31 Provide the contact point for questions regarding the report or its contents. P2 ●G4-32 Report the "in accordance"option the organizaton has chosen. P2 ●
G4-33 Report the organization's policy and current practice with regard to seeking external assurance for the report.
P2 ●
6.
governance
G4-34 Report the governance structure of the organization, including committees under of the highest governance body.Identify any committees responsible for decision-making on economic,environmental and social impacts.
P15 ●
G4-35 Report the process for delegating authority for economic,environmental and social topic from the highest governance body to senior executives and other employees.
- ○
G4-36 Report whether the organization has appointed an executive-level position with responsibility for economic, environmental, and social topics and whether post holders report directly to the highest governance body.
- ○
G4-37
Report process for consultation between stakeholders and the highest governance body on economic, environmental, and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governance body.
- ○
G4-38 Report the composition of the highest governance body and its committees. - ○
G4-39 Report whether the Chair of the highest governance body is also an executive officer. (and, If so, his/her function within the organization's management and the reasons of this arrangement).
- ○
G4-40 Report the nomination and selection process for the highest governance body and its committees and the criteria used for nominating and selecting highest governance body members.
- ○
G4-41 Report processes for the highest governance body to ensure conflicts of interest are avoided and managed.
- ○
G4-42
Report the highest governance body's and senior executives'roles in the development, approval, and updating of organization's purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.
- ○
G4-43 Report the measures taken to develop and enhance the highest governance body's collective knowledge of economic, environmental and social topics.
- ○
G4-44
Report the processes for evaluating of the highest governance body's performance with respect to governance of economic, environmental and social topics.Report whether such evaluation is independent or not, and its frequency. Report whether such evaluation is a self-assessment; Report actions taken in response to evaluation of the highest governance with respect to governance of economic, environmental and social topics,including,as a minimum,changes in membership and organizational practice.
- ○
G4-45
Report the highest governance body's role in the identification and management of economic, environmental and social impacts, risks, and opportunities, include the highest governance body's role in the implementation of due diligence processes.Report whether stakeholder consultation is used to support the highest governance body's identification and management of economic, environmental and social impacts, risks and opportunities.
- ○
87
G4 indicators Index Disclosure degree Remarks
6.
governance
G4-46 Report the highest governance body's role in reviewing the effectiveness of the organization's risk management processes for economic, environmental and social topics.
- ○
G4-47 Report the frequency of highest governance body's review of economic, environmental and social impacts, risks, and opportunities.
- ○
G4-48 Report the highest committee or position that formally reviews and approves the organization's sustainability report and ensures that all material aspects are covered.
- ○
G4-49 Report the process for communicating critical concerns to the highest governance body.
- ○
G4-50 Report the nature and total number of critical concerns that were communicated to the highest governance body and the mechanism(s) used to address and resolve them.
- ○
G4-51
Report the remuneration policies of the highest governance body and the senior executives.Report how performance criteria in the remuneration policy to the highest governance body's and senior executives'economic,environmental and social objectives.
- ○
G4-52 Report the process for determining remuneration. - ○
G4-53 Report how stakeholders'views are sought and taken into account regarding remuneration,including the results of votes on remuneration policies and proposals, if applicable.
- ○
G4-54
Report the ratio of the annual total remuneration for the organization's highest-paid individual in each country of significant operations to the median annual total remuneration for all employees (excluding the highest-paid individual)in the same country.
- ○
G4-55
Report the ratio of percentage increase in annual total remuneration for the organization's highest-paid individual in each country of significant to the median percentage increase in annual total remuneration for all employees(excluding the highest-paid individual)in the same country.
- ○
G4-56Describe the organization's values, principles, standards and norms of behavior such as codes of conduct and codes of ethics.
P28, P8 ●
88
Category Management approach and indicators Page
Economic Performance
Management approach P38
G4-EC1 Direct economic value generated and distributed by the organization P39
G4-EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change
-
G4-EC3 Coverage of the organization's defined benefit plan obligations P67
G4-EC4 Financial assistance received from government -
G4-EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation
-
G4-EC6 Proportion of senior management hired from the local community at significant locations of operation
-
G4-EC7 Development and impact of infrastructure investments and services supported -
G4-EC8 Significant indirect economic impacts, including the extent of impacts -
G4-EC9 Proportion of spending on local suppliers at significant locations of operation -
Management approach P46
Environmental Performance
G4-EN1 Materials used by weight or volume -
G4-EN2 Percentage of materials used that are recycled input materials -
G4-EN3 Energy consumption within the organization -
G4-EN4 Energy consumption outside of the organization -
G4-EN5 Energy intensity -
G4-EN6 Reduction of energy consumption -
G4-EN7 Reductions in energy requirements of products and services -
G4-EN8 Total water withdrawal by source -
G4-EN9 Water sources significantly affected by withdrawal of water -
G4-EN10 Percentage and total volume of water recycled and reused -
G4-EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas
-
G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas
-
G4-EN13 Habitats protected or restored -
G4-EN14 Total number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk
-
G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) -
G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) -
G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3) -
G4-EN18 Greenhouse gas (GHG) emissions intensity -
G4-EN19 Reduction of greenhouse gas (GHG) emissions -
G4-EN20 Emissions of ozone-depleting substances (ODS) -
G4-EN21 NOx,SOx,and other significant air emissions -
G4-EN22 Total water discharge by quality and destination -
G4-EN23 Total weight of waste by type and disposal method -
G4-EN24 Total number and volume of significant spills P47
G4-EN25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally
-
G4-EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization's discharges of water and runoff
-
Standard Disclosures (Part ii): Specific Standard Disclosures
附录
89
Category Management approach and indicators Page
Environmental Performance
G4-EN27 Extent of impact mitigation of environmental impacts of products and services -
G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category -
G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations
P47
G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organization's operations, and transporting members of the workforce
P73
G4-EN31 Total environmental protection expenditures and investments by type P46
G4-EN32 Percentage of new suppliers that were screened using environmental criteria P72
G4-EN33 Significant actual and potential negative environmental impacts in the supply chain and actions taken
P72
G4-EN34 Number of grievances ab out environmental impacts filed, addressed, and resolved through formal grievance mechanisms
P47
Social Performance
–
Labor Practices and Decent Work
Management approach P58、P66、P67
G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region
-
G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant location of operation
P67
G4-LA3 Return to work and retention rates after parental leave, by gender -
G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements
-
G4-LA5 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs
P46
G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender
-
G4-LA7 Workers with high incidence or high risk of diseases related to their occupation P48
G4-LA8 Health and safety topics covered in formal agreements with trade unions -
G4-LA9 Average hours of training per year per employee by gender, and by employee category -
G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings
P65、P66
G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category
P67
G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity
-
G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation
-
G4-LA14 Percentage of new suppliers that were screened using labor practices criteria P72
G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken
P72
G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms
-
Social Performance
–
human Rights
Management approach P58
G4-HR1 Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening
-
G4-HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained
-
G4-HR3 Total number of incidents of discrimination and corrective actions taken P59
G4-HR4 Operations and suppliers identified in which the right to exercise freedom of association and collective bargaining may be violated or at significant risk,and measures taken to support these rights
-
90
Category Management approach and indicators Page
Social Performanc
-
human Rights
Management approach P58
G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor
P58、P72
G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor
P72
G4-HR7 Percentage of security personnel trained in the organization's human rights policies or procedures that are relevant to operations
-
G4-HR8 Total number of incidents of violations involving rights of indigenous peoples and actions taken
-
G4-HR9 Total number and percentage of operations that have been subject to human rights reviews or impact assessments
P72
G4-HR10 Percentage of new suppliers that were screened using human rights criteria P72
G4-HR11 Significant actual and potential negative human rights impacts in the supply chain and actions taken
P72
G4-HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms
-
Social Performance
-
Society
Management approach P80
G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs
-
G4-SO2 Operations with significant actual and potential negative impacts on local communities -
G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified
-
G4-SO4 Communication and training on anti-corruption policies and procedures -
G4-SO5 Confirmed incidents of corruption and actions taken -
G4-SO6 Total value of political contributions by country and recipient/beneficiary -
G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes
P75
G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations
-
G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society P72
G4-SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken
P72
G4-SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms
-
附录
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Category Management approach and indicators Page
Social Performance
-
Product Responsibility
Management approach P54、P55
G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement
-
G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes
P54、P55、P75
G4-PR3 Type of product and service information required by the organization's procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements
-
G4-PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes
P26、P27、P75
G4-PR5 Results of surveys measuring customer satisfaction P74
G4-PR6 Sale of banned or disputed products -
G4-PR7Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes
P75
G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data
P75
G4-PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services
P75
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Terminology Definition Location
gRi Global Reporting Initiative
About the companyg4 GRI Sustainability Reporting Guidelines 4.0
EiCC Electronic Industry Code of Conduct
iP Intellectual Property For the Government-Intellectual property (IP) protection
CRM Customer Relationship Management For the Government-Fair dealing
Ro membrane Reverse Osmosis membraneFor the Shareholders-Cost control
hMi Human Machine InterfaceFor the Shareholders-Business development
VoiP Voice over Internet Protocol
3M Minnesota Mining and ManufacturingFor the Environment-Occupational health
Bar Pressure unit, 1 Bar=100,000 Pa=10 N/square centimetersFor the Environment-Safe production
Di 水 Deionized water
For the Environment-Eco-friendly operation
CDA Compressed dry air
瘦客户机
A thin client is a small professional PC equipped with an embedded processor, a small local flash, and a lite operating system based on the PC industrial standard. Without moveable components, the thin client ensures a more reliable service environment, lower energy consumption, and a higher safety level.
TAnK The container for the storage of chemical solution
hSF Hazardous substances free
For the Environment-Hazardous substance management
XRF X Ray Fluorescence , which is used for the detection of hazardous substances like lead and cadmium.
SQE Supplier Quality Engineer
iECQ International Electrotechnical Commission Quality Assessment System for Electronic Components
hS Hazardous substances
g5.5 LTPS production line 5.5 generation low temperature poly-silicon production line
For the Partners-Technical development and innovation
12phase ASg 12-phase active matrix display
300PPi SFT 300 PPI Super-Fine TFT
FD Flexible Display
TFT-Array Thin film transistor array
on-Cell Integrated touch technique: embed the functions of the touch panel between the color filter substrate and the polarizer.
in-Cell Integrated touch technique: embed the functions of the touch panel into LCD pixels.
EMTP Electro-Magnetic Transient Program
oxide TFT Oxide thin film transistor
AMoLED Active Matrix/Organic Light Emitting Diode
5.5" FhD RgBW FHD (px 1920 × 1080 panel)
R (red ) G (green) B (blue) W (white)
CQ Customer QualityFor the Partners-Customer relations
Terminology definition
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Federation of Shenzhen industries
Vice Chairman
China optics and optoelectronics
Manufactures Association LCD BranchVice President
Shenzhen Enterprise Confederation
Shenzhen Entrepreneur AssociationVice Chairman
Shenzhen Flat Panel Display industry Association
Vice President
Shenzhen integrity Federation
Member
national Technical Committee on Flat
Panel Display Devices of Standardization
Administration of ChinaVice Chairman
Chamber of CommerceCommon member
Shenzhen high-tech industry Association
Common member
Associations &organizations
In pursuance of the strategic goals of Tianma, and the concern of the stakeholders, we support the following associations and organizations to
launch economic, environmental and social treaties, principles or other proposals.
94
Dear readers,
Thanks for reading the 2014 CSR Report of Tianma.Your opinions and suggestions are valued and welcomed by us. Thanks for your participation.
Tianma Microelectronics Co., Ltd.
February 2015
Thanks for your support to the CSR
development of Tianma. Your letters and
calls are welcomed.
Fax: (0755) 8622 5772
Mailing address: 7/F. 64th Building, Jinlong
Industrial Zone, Majialong, Nanshan
District, Shenzhen
Email: [email protected]
Tel: (0755) 8622 5773/8622 5777
Report evaluation
Balance Comparability Accuracy Timeliness Reliability Definition
About the company
For the Government
For the Shareholders
For the Environment
For the Employees
For the Partners
For the Community
Note: each indicators is scored within a scale of 1~5.
Feedback Form
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Address: 7/F. 64th Building, Jinlong Industrial Zone,
Majialong, Nanshan District, Shenzhen
Tel: (86) 755 - 8622 5773 / 8622 5777
Fax:(86) 755 - 8622 5772
Website: www.tianma.cn
Copyright © Tianma Microelectronics Co., Ltd.
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DisclaimerThis document may contain predictive information, including but not limited to such information related to
finance, operation, product series and new technique. Since the uncertainties in practice may cause the
great differences between the actual results and the predictive information, this document is for reference
only, and does not constitute any offers or commitments. The company is entitled to revise the above
information without notice.