esg-Governance and Operations-LONGi

Corporate governance

Strictly abiding by laws and regulations as well as regulatory requirements as in the Company Law of the People’s Republic of China, Securities Law of the People’s Republic of China, Code of Corporate Governance for Listed Companies, and Rules Governing the Listing of Stocks on Shanghai Stock Exchange, we established within the Company a clear corporate governance structure where responsibilities are clearly defined and delineated.

In April 2023, the Company developed and implemented the Compensation Management Measures for Directors, Supervisors, and Senior Managers, providing clear guidelines for executive compensation. The compensation for directors, supervisors, and senior managers consists primarily of base salary and performance-based compensation, which is an incentive pay for value created for the Company during the operating period. The performance- based compensation for senior managers such as CEO/President is associated with the Company’s ROE, operating revenue, net profits, and other business performance indicators, as well as the individual’s contribution to risk management and other sustainable development performances. This mechanism gives full display to the compensation philosophy of Pay-for-Performance. On top of that, a clawback mechanism was established for performance-based compensation, so that in the event of incorrect financial statement or other specified circumstances, the Company retains the right to recover performance-based compensation.

Controlling shareholder and listed companies
- The controlling shareholder strictly regulates shareholders’ behaviors and exercises shareholder rights in good faith. The Company possesses independent and complete business and autonomous operating capabilities, and remains independence from the controlling shareholder in areas such as business, personnel, assets, institutions, and finance.
Shareholders and Annual General Meetings
- The Company stays attentive to investors’ opinions. During the reporting period, we convened five sessions of Annual General Meeting to communicate with investors on important issues ranging from corporate governance, financial performance, to business strategies.
Directors and Board of Directors
- The Company established a governance structure with the board of directors as the core, which serves as the coordinator of the Company’s operations and the decision-maker of strategies. Under the Board of Directors, four specialized committees perform their duties to oversee and manage the corporate governance.
Supervisors and Board of Supervisors
- The Board of Supervisors oversees the Company’s business development, related transactions, fundraising management, and use of funds to ensure that the Company’s development meets compliance requirements.

Board diversity

LONGi considers board diversity a key pillar to its sustainable development. The Company's Board of Directors is renewed every three years, and the nomination of Board members undergoes a rigorous selection process that incorporates diversity in terms of industry experience, educational and academic background, ability, and gender as part of the criteria for board election.

Board Members

Female Directors

Internal Directors are senior executives in the PV industry

Independent Directors with respective expertise and extensive experience in strategic management, finance, and macro economics

External Director with rich experience in strategic management

To foster scientific and efficient operation of its specialized committees, taking into full consideration of factors including the directors’ professional background and experience, the Board decided to make some adjustments to certain members of the specialized committees for the fifth Board: Director Mr. Tian Ye will no longer serve as a member of the Board’s Audit Committee, and Independent Director Ms. Guo Ju’e was elected as a member of the Board’s Audit Committee. Additionally, Director Mr. Tian Ye was elected as a member of the Board’s Strategy and Sustainable Development Committee.

Audit Committee: Xu Shan (Chair), Lu Yi, Guo Ju’e
Strategy and Sustainable Development Committee: Zhong Baoshen (Chair), Li Zhenguo, Liu Xuewen, Wang Zhigang, Lu Yi, Tian Ye
Remuneration and Appraisal Committee: Guo Ju’e (Chair), Li Zhenguo, Xu Shan
Nomination Committee: Lu Yi (Chair), Guo Ju’e, Bai Zhongxue

Investor relations

LONGi maintains good communication with investors. In 2023, we responded to 212 questions on SSE e-interactive platform, hosted 159 investor conference calls and 55 strategy conferences, held 46 roadshows, received 99 on-site research visits, and organized 4 performance briefing sessions, sustaining long-term, stable, and frequent communication with investors worldwide.

In June 2023, LONGi ranked the first in the “Best Investor Relations Program” category of the “2023 Asia Executive Team Survey” by Institutional Investor, one of the most influential financial magazines globally.

212

questions responded on SSE e-interactive platform

159

investor conference calls

strategy conferences

roadshows

on-site research visits

performance briefing sessions