Recently, Absen (SZSE: 300389), a global leader in LED display solutions, officially released its 2025 Environmental, Social, and Governance (ESG) Report. Aligned with the Shenzhen Stock Exchange Sustainability Reporting Guidelines and the GRI Standards, the report provides a comprehensive overview of Absen’s practices in advancing high-quality development across key areas, including green development, technological innovation, corporate governance, talent development, supply chain collaboration, and community engagement.
As global industries enter a new phase of green, low-carbon transformation and digital advancement, corporate sustainability capabilities have become a critical indicator of long-term competitiveness. By establishing a comprehensive ESG management system covering R&D, manufacturing, supply chain, product applications, and social responsibility, Absen integrates sustainability principles throughout its operations and explores new pathways toward greener and higher-quality development in the display industry.
Advancing Green and Low-Carbon Practices Across the Value Chain to Transform Manufacturing
In environmental sustainability, Absen introduced the “Absen Green” six-pillar sustainability framework in 2021, building a comprehensive green development system covering the entire product lifecycle—from R&D and design, material selection, and manufacturing to energy utilization and recycling. In 2025, Absen’s renewable energy usage ratio reached 11.33%. Its Huizhou manufacturing base has established a large-scale solar-storage-charging integrated energy system, generating approximately 1.8 million kWh of electricity annually and reducing carbon emissions by approximately 1,400 tonnes of CO₂equivalent per year.
During manufacturing, Absen continues to improve energy efficiency and reduce energy consumption in its manufacturing operations. Through initiatives including intelligent upgrades of test equipment, optimization of workshop cooling systems, and peak/off-peak electricity management, the company reduced electricity consumption per unit production area by 9.3% year on year. Through the implementation of a water recycling system, Absen saves nearly 28,000 tonnes of water annually. Meanwhile, the company applies standardized management throughout the entire process for emissions, solid waste, and noise control, achieving 100% compliant disposal of hazardous waste.
Sustainability principles are also extended to products and application scenarios. The A25 Series reduces overall energy consumption by 50% compared with comparable products, while all Absen products comply with international environmental standards including RoHS and REACH certifications. In 2025, Absen completed carbon footprint assessments for 90% of its indoor and outdoor fixed-installation and all-in-one display products. Through refurbishment and recycling initiatives for used displays, the company promotes circular utilization of display products. For example, the Tian’an Yungu renovation project achieved more than 50% energy reduction, effectively reducing electronic waste and improving resource efficiency.
Driving Industrial Advancement Through Technological Innovation and Building a Responsible Global Industry Ecosystem
With the rapid evolution of display technologies and rising demands across diverse application scenarios, Absen remains committed to increasing R&D investment and enhancing product value through continuous technological innovation. In 2025, the company invested RMB 184 million in R&D, bringing total R&D investment over the past five years to RMB 754 million. As of the reporting period, Absen had secured 632 valid patents, received the China Patent Excellence Award, and played a leading role in and contributed to the development of multiple national and industry standards for LED technologies.
Core technological innovations, including HTB advanced packaging technology and Absen’s proprietary PWM+PAM hybrid driving technology, have been successfully commercialized and introduced into mass production. These breakthroughs support the display industry’s transition toward higher reliability, greater efficiency, and sustainable growth.
Throughout the product innovation process, Absen continues to strengthen product safety and quality management by integrating technology ethics and safety standards into the entire R&D process. All of the company’s display products have achieved the RG0 (Risk Group 0) blue light safety level. Investment in product safety increased by 26% year on year. The company has obtained safety certifications in nearly 40 countries, with no major product quality or safety incidents reported throughout the year.
At the same time, Absen continues to promote a greener, more transparent, and collaborative supply chain system. Environmental protection, labor practices, business integrity, and quality standards have been incorporated into the supplier qualification process. All suppliers have signed integrity and corporate responsibility agreements, and completed environmental and social impact assessments. By optimizing supply chain fund management and cooperation mechanisms, Absen has supported 26 small and medium-sized enterprise suppliers, effectively helping them maintain stable operations and jointly building a more resilient and sustainable supply chain ecosystem.
To enhance customer service, Absen continues to improve its global service system. The company’s global service network now covers 165 countries and regions. Absen has conducted more than 300 ACE certification training sessions and trained over 5,400 certified engineers. In 2025, customer satisfaction reached 98.20%, continuously enhancing the global customer service experience.
Strengthening Governance for Long-Term and Stable Development
In terms of governance, Absen continues to improve its modern governance structure by establishing a governance system with clear responsibilities and efficient operations. The company’s Board of Directors has four specialized committees: the Strategy Committee, Audit Committee, Compensation Committee, and Nomination Committee. Among the nine directors, independent directors account for 33%. The company has also appointed an employee representative director to further enhance governance transparency and scientific decision-making.
In 2025, Absen launched a restricted stock incentive plan, with 12 million shares planned to be granted to key employees. The company also established an employee stock ownership incentive fund to promote the formation of a long-term shared-interest community among shareholders, management, and employees.
The company introduced nine integrity guidelines, strengthened whistle-blower protection mechanisms, and conducted risk identification and implemented control measures in key areas such as procurement and sales. In 2025, integrity training covered 100% of management and employees. Suppliers also signed integrity cooperation agreements, promoting integrity throughout the supply chain.
Putting People First and Practicing Social Responsibility
Absen adheres to the philosophy of “driving business development through talent and contributing to society,” continuously advancing talent development, employee safety, and public welfare initiatives.
In talent development, the company has established the industry-focused “Absen Academy” training platform. In 2025, employee training investment reached RMB 9.6635 million, with average training hours exceeding 25 hours per employee and a training coverage rate of 96.25%. The company has also established dual career development pathways for professional and technical roles. Women account for 31.1% of management positions, while female managers in overseas sales account for more than 57%.
