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Zhen Ding Tech. Group

GREEN PRODUCT STEWARDSHIP

Green Product Stewardship

In line with the philosophy of “Advancing Technology, Benefiting Humanity, Enhancing Environmental Protection, and Making the Earth a Better Place,” Zhen Ding Technology Group and its subsidiaries adhere to the "Environmental Design Operation Specification" during the product feasibility assessment and product design stages. This involves implementing designs that are harmless, energy-efficient, lightweight, and recyclable to minimize their environmental impact.

Raw Material Procurement

1. We have established the “Environmental Design Operation Specification,” which requires
1) the use of materials that meet customer requirements, UL certification, and RoHS standards;
2) In the absence of specific material requirements from customers, we conduct engineering confirmation using halogen-free materials;
3) All projects undergo verification to ensure that the materials used comply with legal regulations for green and harmless materials.

2. We have implemented the “Material Selection E-system” to choose materials that undergo evaluation and meet environmental requirements.

3. We have introduced the use of recycled gold, recycled solder paste, and recycled copper. For detailed information on the use of recycled materials, please refer to page 47 of the 2023 ESG Report.

Product Manufacturing

By optimizing layout utilization, we increase production output and efficiency while reducing the consumption of raw materials and waste generation. Additionally, this helps in minimizing energy and water resource usage.

Distribution, Storage, and Transportation

1. All packaging materials (TRAY, foam, bags, cartons, desiccants, humidity indicator cards) are made from eco-friendly materials that comply with HF and RoHS standards. For example, we use cobalt-free environmentally friendly humidity indicator cards and montmorillonite desiccants made from mineral materials.

2. We reduce the thickness of TRAY and the weight of sulfur-free paper to minimize the use of raw materials.

3. The stable nature of all packaging materials ensures that transportation has no adverse environmental impact. The printing inks used on outer packaging boxes are subjected to VOC testing.

4. To promote energy efficiency and green transportation, we implement carpooling to reduce vehicle trips and enhance transportation efficiency.

5. We promote recycling and reuse by collecting and reusing TRAYs, plastic pallets shipped to customers, as well as TRAYs, foam, and plastic pallets used internally, thus reducing our environmental footprint.

Product Use Phase

To enhance product durability, we improve the product's resistance to bending from three aspects: selecting materials with better bending resistance, improving the product's stacking structure, and incorporating Airgap design.

End of Life

The "Environmental Design Operation Specification" defines recycling design. When designing products, we fully consider factors such as the possibility and value of component and material recycling, recycling treatment methods, and technologies to minimize the environmental impact during recycling.

Zhen Ding is actively cooperating with its customers for the utilization of recycled products and materials. Zhen Ding's products currently encompass a range of recyclable materials such as solder paste, gold salt, copper balls, copper powder, copper sulfate, copper foil, CCL (Copper Clad Laminate), and more.

In the case of Flexible PCBs, these recyclable materials constitute approximately 77.66 % of the product's weight. Similarly, for other circuit board products, recyclable materials make up over 70% of the product's weight.

According to the recycling material usage proportion in 2023, for Flexible PCBs, around 40.49 % of the raw materials used are recycled materials.

Through our recycling efforts, we have successfully reclaimed valuable metals like gold and palladium. Considering the prices of these precious metals in 2023, this has resulted in a financial benefit of approximately NT$670,784,994.

Development and Planning of Clean Technologies

Since 2022, Zhen Ding has officially launched the ISO 14067 product carbon footprint inventory, conducting carbon footprint assessments for multiple products. We continuously optimize processes, equipment, and materials, develop low-carbon technologies, and provide solutions to reduce carbon emissions. At the same time, we are actively integrating various re- sources to develop forward-looking green products. In terms of manufacturing processes, we are simplifying and optimizing existing processes to develop low-carbon emission processes and improve process efficiency. In terms of materials, we are implementing resource symbiosis and reuse to achieve a circular economy. For example, with our metal recycling system, Zhen Ding has successfully utilized proprietary technology to extract and recycle metals such as gold and palladium. In 2023, we successfully extracted 305.201 kg of gold and 70.452 kg of palladium, achieving circular utilization and creating sustain- able value through recycling. In terms of equipment, Zhen Ding selects energy-efficient and low-pollution equipment while promoting the replacement of traditional factories with smart factories. Through real-time monitoring of the operation status of various plants, we aim to reduce waste of energy, raw materials, chemicals, and other resources, while enhancing overall manufacturing quality. Combined with simulation technology, it can reduce the need for prototype samples, improve development efficiency, reduce costs and other advantages to provide low-carbon and efficient solutions.

Green products

The development of smart phones has gradually matured, and foldable phones have become the new focus of the mobile phone market. With the growing awareness of environmental protection, foldable devices are moving towards lightweight, durable, and eco-friendly designs. Starting from green designs, Zhen Ding has introduced recycled metals and, in collaboration with customers, developed a new generation of highly flexible circuit boards. This innovation has successfully reduced the thickness of printed circuit boards by approximately 25%, decreased direct current resistance by around 20%, reduced line width and spacing by about 7%, increased wiring density to reduce product size, and lowered power consumption by roughly 20%. Among them, recyclable materials include solder paste, Potassium gold cyanide, copper and other metals, accounting for about 70% of the total products.

Starting in 2023, Zhen Ding has expanded its contribution to clean technology by supplying flexible printed circuit boards (FPCBs) specifically designed for electric vehicles. These contributions now account for approximately 2.5% of the company’s annual revenue, underscoring our commitment to supporting sustainable and environmentally friendly transportation solutions.

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