ESG, which stands for Environmental, Social, and Governance, is a corporate management and investment concept formally proposed by the United Nations in 2004. It serves not only as a standard for measuring the long-term value of enterprises but also as a guiding framework for promoting the coordinated development of the economy, society, and environment. At Torch Electron, we place ESG at the heart of our strategy, aligning responsibility with innovation to build a more resilient future.   1. We Drive Green Development Through Technological Innovation:         Phase I of our photovoltaic power generation system has a total installed capacity of 561.2 KW, with an energy storage capacity of 1,440 KW/2,700 KWh, enabling highly efficient energy utilization. We implement full life-cycle carbon footprint management for our flagship product—multilayer ceramic chip capacitors—contributing to the ”Dual Carbon” goals.           Torch Electron and four subsidiaries have obtained ISO 14001 Environmental Management System Certification. Subsidiaries Liya Advanced Materials and Liya Chemical have been certified as National Green Factories.Our environmental protection investments exceed 6.2 million RMB, achieving 100% compliance in waste, emissions, and noise control, with zero environmental penalties.   2. We Believe Talent is the Foundation of Sustainable Development:           By the end of 2024, we had 2,174 employees; conducted 765 training sessions covering 19,000 participants, with 74 promotions.         Our parent company was awarded the title of "Quanzhou Municipal Healthy Enterprise" and obtained the Third-Level Work Safety Standardization Certificate, with 6.95 million RMB invested in occupational health, achieving zero occupational diseases and 100% health checkup coverage.           Donated 3.426 million RMB to support education revitalization and community development. Implemented full life-cycle quality control and established a pre-sales, in-sales, and after-sales service system to enhance customer satisfaction.Strengthened supply chain management, collaborating with partners to drive industry progress.   3. Technology and Compliance Governance Underpin High-Quality Growth:678 patents solidify our technological leadership.           Achievements in smart manufacturing include: The project "Knowledge Graph Construction of Ceramic Capacitor Microstructure and Macro-Performance Based on Big Data and AI" was selected as a 2024 Fujian Provincial AI Application Benchmark Case.           "Torch Electron Smart Manufacturing Factory" was recognized as a 2024 Fujian Provincial Smart Manufacturing Demonstration Factory and listed in the "2024 National 5G Factory Directory."         Established a triple-layer cybersecurity protection system, ensuring zero data breaches and safeguarding customer trust. Built a three-tier governance structure (Board of Directors, Board Strategy & ESG Committee, ESG Execution Team) to ensure scientific and transparent decision-making.           ESG is not the destination—it’s the beginning, and our promise for the future. Let’s join hands to empower innovation with responsibility and illuminate a sustainable future with technology.           We firmly believe that business success must go hand in hand with responsibility.

        In the automotive electronics industry, quality and reliability are critical for safety, performance, and long-term durability. Manufacturers and suppliers of essential components such as automotive MLCCs (Multilayer Ceramic Capacitors), tantalum capacitors, and super capacitors must meet stringent international standards. Among the most recognized are IATF 16949 and AEC-Q, which define how products are made and how they are qualified for use in vehicles.   What is IATF 16949?         IATF 16949 is a global automotive quality management system standard developed by the International Automotive Task Force (IATF) in collaboration with ISO. It combines the general ISO 9001 requirements with additional, automotive-specific quality measures.         For suppliers of automotive-grade electronic components — from automotive MLCCs in engine control units to Tantalum Capacitors in infotainment systems — IATF 16949 certification demonstrates a consistent ability to meet customer requirements, prevent defects, and minimize manufacturing variations. It ensures that production processes for capacitors and other components are controlled, efficient, and reliable.   What is AEC-Q?         AEC-Q standards, created by the Automotive Electronics Council (AEC), define reliability test requirements for automotive electronic components. Unlike IATF 16949, which focuses on manufacturing processes, AEC-Q focuses on component-level qualification.         For example:         AEC-Q200 applies to passive components such as automotive MLCCs, tantalum capacitors, and super capacitors, verifying their ability to endure temperature cycling, humidity, vibration, and electrical stress.         AEC-Q100 applies to semiconductors, ensuring they perform reliably under demanding automotive environments.           When a component meets AEC-Q requirements, it has been tested to withstand the harsh realities of the automotive environment — from extreme temperatures in an engine bay to the high electrical loads in an electric vehicle powertrain.   The Difference Between IATF 16949 and AEC-Q           While both are critical for the automotive electronics supply chain, they serve different purposes:         IATF 16949 is a process-based certification that ensures a company can consistently manufacture high-quality capacitors and other components.         AEC-Q is a product-level qualification that ensures those capacitors and components can survive real-world automotive conditions.           In simple terms, IATF 16949 makes sure your factory can produce excellent automotive MLCCs, tantalum capacitors, and super capacitors every time, while AEC-Q makes sure those components can perform reliably in actual vehicles.   Core Objective of IATF 16949 and AEC-Q           The ultimate goal of both standards is to ensure automotive components are safe, reliable, and meet customer expectations.         IATF 16949 focuses on continuous improvement in manufacturing processes, defect prevention, and efficiency in the global automotive supply chain.         AEC-Q ensures every qualified automotive MLCC, tantalum capacitor, or super capacitor can operate reliably for the full service life of the vehicle, even under extreme environmental and electrical conditions.           For global automotive electronics suppliers like Torch Electron, compliance with IATF 16949 and AEC-Q is not just a certification — it’s a commitment to delivering dependable automotive MLCCs, tantalum capacitors, and super capacitors that meet the highest automotive standards worldwide.