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CATL 2020 Social Responsibility Report Summary

Core Content

This report is the third social responsibility report of Contemporary Amperex Technology Co., Limited (CATL), issued alongside the 2020 Annual Report. It outlines CATL's commitment to sustainable development, innovation, and corporate social responsibility (CSR) across various dimensions, including epidemic prevention, environmental management, labor rights, and stakeholder engagement.

Main Points

1. Epidemic Prevention and Control

• CATL actively participated in the global fight against the COVID-19 pandemic.
• Donated CNY 10 million to the Red Cross Society Hubei Branch and provided medical supplies to global partners.
• Demonstrated corporate responsibility and solidarity with the international community during the crisis.

2. Company Overview

• Established in 2011, CATL is headquartered in Ningde, Fujian, China.
• Operates with a global presence, including production bases in China and Germany, and subsidiaries in multiple countries.
• Has 4 R&D centers and 6 production bases.
• A leading provider of lithium-ion batteries, with a comprehensive business model covering R&D, manufacturing, and sales of EV battery systems and energy storage solutions.
• Achieved four consecutive years of global leadership in EV battery consumption volume (2020 data: 46.84GWh sold, with 31.9GWh installed in the domestic market).

3. Economic Performance

• Total operating revenue in 2020: CNY 50,319,487,700, representing a 9.9% increase compared to 2019.
• Net profit: CNY 5,583,338,700, a 22.43% increase year-on-year.
• The EV battery system accounted for the majority of revenue (CNY 39,425,820,700), with a 2.18% YoY growth and 50% market share in the domestic market.
• Energy storage system sales revenue reached CNY 1,943,450,200, showing a 218.56% YoY increase.

4. Innovation and Development

• CATL focuses on four innovation dimensions: material chemistry structure system, extreme manufacturing, structure system, and business model.
• Launched the unmanned electric mining mine solution and battery-changing heavy trucks in China.
• Completed the first phase of the Fujian Jinjiang energy storage power station pilot project.
• Established the 21C Lab and Shanghai Jiao Tong University - CATL Joint Research Center for clean energy technology development.

5. Sustainability and Corporate Governance

• CATL has a Sustainability Management Committee with five co-presidents from different systems, promoting a sustainable culture from the top down.
• In 2020, the Jiangsu and Qinghai production bases established their own sustainability committees.
• The company expanded its sustainability disclosure scope on its official website, enhancing transparency and stakeholder supervision.
• CATL's governance structure aligns with the Code of Corporate Governance for Listed Companies and ChiNext Market rules.

6. CSR Activities

• Volunteer Service Team: Promotes community engagement and social responsibility.
• Targeted Poverty Alleviation: Actively contributes to social welfare initiatives.
• Brand Charity Forest: Initiatives to support environmental protection.
• Sustainable Development Month: Promotes awareness and action on sustainability.
• Green Logistics and Quality Control: Ensures environmentally friendly operations and product reliability.
• Customer Satisfaction and Service: Maintains a global service network with 382 service stations covering 249 cities.

7. Labor and Human Rights

• Committed to equality and diversity, with a focus on employee care and development.
• Promotes gender equality and occupational health and safety.
• Provides professional training and career planning for employees.
• Ensures fair and just procurement environments and equal opportunities for all stakeholders.

8. Integrity and Compliance

• Established the Code of Conduct Committee (COC) in 2016 to promote integrity development.
• Increased integrity investigations and punishments in 2020, aiming to prevent corruption.
• Launched the Employee Integrity Manual and conducted special integrity training events for senior managers.
• Promotes a culture of compliance, integrity, and honesty, with a zero-tolerance policy for corruption.
• Anti-corruption themed events were held to raise awareness and reinforce ethical standards.

9. Awards and Recognition

• CATL received numerous awards in 2020, including:
  • Grade 3 Enterprise of Production Safety Standardization (May 2020)
  • Seven-star System Certification for After-sales Services (July 2020)
  • China's Top 10 Energy Storage Enterprises (August 2020)
  • Top 500 Chinese Private Enterprises (December 2020)
  • CBIS 2020 Technology Innovation Award (October 2020)
  • Forbes China Most Innovative Companies (December 2020)
  • China Automotive Parts Industry Award (December 2020)

Key Information

• Reporting Period: January 1, 2020 to December 31, 2020.
• Report Issuing: Available in printed, digital, and brief digital formats.
• Data Sources: Based on audited financial statements and internal data from relevant departments.
• Currency: All data is in CNY unless otherwise stated.
• Contact: CATL Sustainability Management Committee at No. 2 Xingang Road, Zhangwan Town, Jiaocheng District, Ningde City, Fujian Province.
• Stock Code: 300750.

Conclusion

CATL continues to lead in the global lithium-ion battery industry, emphasizing innovation, sustainability, and social responsibility. The report highlights the company's achievements in environmental protection, economic growth, labor rights, and stakeholder engagement, while also showcasing its ethical business practices and commitment to integrity. With a clear vision of contributing to a carbon-neutral future, CATL remains a key player in the global new energy and green technology sectors.