2017 CORPORATE SOCIAL RESPONSIBILITY REPORT

T i a n m a M i c r o e l e c t r o n i c s C o . , L t d .

ShenTianma A 000050

TO CREATE COLORFUL LIFE

2017 CORPORATE SOCIAL RESPONSIBILITY REPORT

Tianma Microelectronics Co., Ltd.

MARCH 2018

（I） For the Government

（II） For the Shareholders

GRI Instruction Index

Terminology Definition

Association and Organization Membership

Reader's Feedback

（III） For the Environment

（IV） For the Employees

（V） For the Partners

（VI）For the Community

I、Management letter04 /

II、About Us06 /

III、Bear The Social Responsibility28 /

IV、Appendix78 /

CONTENTS

ABOUT THIS REPORTContent definitionThis report is based on the principles of the substantiality, stakeholder participation as well as sustainable development under Global Reporting Initiative(Global Reporting Initiative, "GRI" in short) guideline. We have identified the key stakeholders following a comprehensive analysis and evaluation of the business operating environment. We have communicated and conducted dialogues with stakeholders through a questionnaire to collect and prioritize their concerns andneeds. After evaluation, we have confirmed the topics, contents and indicators for disclosure in this report.

ScopeOrganization scope for this report incorporates all entities with control or major influence over the financial and operating policies/measures. The report also specifies all entities in the consolidated financial statements of the Company.

Even though introduction is made in the report to the trustee, Xiamen Tianma Microelectronics Co., Ltd.(hereinafter referred to as Xiamen Tianma), and the associated company, Shanghai Tianma AM-OLED Co., Ltd.（hereinafter referred to as Shanghai AM-OLED）.However, All GRI data in this report do not contain statistics of Xiamen Tianma and Shanghai AM-OLED.If no special instructions,all statistics contained herein are identical with that in the Company’s annual report.

Preparation BasisThis report is prepared in reference to Global Reporting Initiative (GRI)"Sustainability Reporting Guidelines version 4.0" (G4), and according to the coreplan. The company adopts 36 general standard disclosure items and 52 specific standard disclosure items from G4. By means of site investigation, employee interview and material consultation, it confirms the statistical scope of information reported and completes the collection means and computing methods.

Report statementThe Board of the Directors and all directors of the Company undertake that there is no false record, misleading statement or major omission in this report, and undertake to assume joint and several liabilities for the truthfulness, accuracy and completeness of the contents herein.

Tianma Microelectronics Co., Ltd.(hereinafter referred to as Tianma, the Company or We; and the Shenzhen Production Line as the “Company Headquarter”);

Shanghai Tianma Microelectronics Co., Ltd. ("Shanghai Tianma" or "Shanghai G4.5 " in short)；

Chengdu Tianma Microelectronics Co., Ltd. ("Chengdu Tianma" or "Chengdu G4.5 " in short)；

Wuhan Tianma Microelectronics Co., Ltd. ("Wuhan Tianma" ，including "Wuhan G4.5 "and "Wuhan G6 " in short)；

Shanghai AVIC Optoelectronics Co., Ltd. ("AVIC Optoelectronics" or "Shanghai G5 " in short)；

Tianma Japan, Ltd. ("TMJ "in short)；

Remarks: “Four locations and five companies in China” in this report stands for: Tianma Microelectronics Co., Ltd., Chengdu Tianma Microelectronics Co., Ltd., Shanghai Tianma Microelectronics Co., Ltd., Shanghai AVIC Optoelectronics Co., Ltd. and Wuhan Tianma Microelectronics Co., Ltd.

Reporting Period January 1 to December 31,2017

Reporting Cycle

Once a year

From the 1980s onwards, each decade has witnessed the rise of a new generation of revolutional technologies in the mobile communication industry, giving momentum to the development of information and communication technologies, industries and applications, and to the economic and social advancement of the entire globe. Having gone through the 1G to the 4G eras, mobile communication technologies are embracing the advent of the 5G epoch. While 1G was designed for general transmission of voice, 2G satisfied the voice, SMS and Internet surfing demands, 3G supported the data and multi-media businesses and 4G, the latest generation of communication technology, has realized considerable improvement in transmitting speed to become a key support for the broad band data and mobile Internet businesses. As a brand new network form, 5G will feature greater transmission volume, shorter time delay and higher stability to satisfy more complicated demands. With close linkage to the artificial intelligence and Internet of Things, 5G will realize seamless connection to cater to the demands of wireless equipment and expand the boundary of wireless technologies.

In the age of 5G, artificial intelligence and Internet of Things, the display industry will show three trends:

1. With reinforced network functionality, mobile intelligent terminals (e.g. mobile phones and tablets) will show increasingly good performances in communication and entertainment. Display in ultra high definition and better portability will be focuses in the transformation period;

2. For the AR, VR and other intelligent wearable products springing up in recent years, the 5G will notably improve the user experience of such products with super-low time delay and high-speed transmission, bringing forth greater demands in this regard;

3. With popularity of the Internet of Vehicles and advancement of artificial intelligence technologies, auto driving will eventually become the mainstream. Keeping no eyes on the road conditions, the drivers can spend more time and energy interacting with the display products on the car for entertainment or work.

Amid the gradual blossom of diversified human-machine interacting modes by gesture, voice and physiological identification alongside the development of 5G, artificial intelligence and Internet of Things, higher requirements are thus proposed for the displays, the core component to make the said modes available. More size options, lower energy consumpmtion, higher definition and more functions will be the general trend. It brings not only new opportunities, but also new responsibilities and challenges to the display industry.

Board Chair Chen Hongliang

MANAGEMENT LETTER From passive LCD technologies(TN, STN and (C)STN), to high-performance active

LCD technology(TFT-LCD), and to the current leader of AMOLED, each technology dominated its times and the global market with unique advantages. Looking ahead, AMOLED technology will be used for more intelligent equipment and emerging applications. With the vehicle-mounted system for unmanned driving via the Internet of Vehicles as an example, the customized displays perfectly integrate the user’s equipment, the user experience and the dashboard system through smooth displaying function and sensitive touch control.

Through over 3 decades’ technological accumulation, Tianma has become the leader of the medium/small sized display industry the world over. Keeping abreast with the times, Tianma has grasped such cutting-edge technologies as LTPS-TFT, AMOLED, flexible display, Oxide-TFT, 3D display, transparent display and IN-CELL/ON-CELL, set up the national engineering lab for TFT-LCD key materials and technologies, the national enterprise technology center and the postdoctoral mobile workstation, and taken on major national featured projects commissioned by the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Science and Technology. Enduring accumulation and investment in the technology has laid a solid foundation for the innovative development of the applications for the enterprise. Since China’s first TN-LCD production line was put into production in 1984, Tianma has constantly reached to new technologies and product lines. From G4.5 to G6, from a-Si TFT-LCD to LTPS TFT-LCD, and to LTPS AMOLED, Tianma has taken a firm hold of the leading position in the country. On April 20, 2017, the 6th generation of LTPS AMOLED production line of Wuhan Tianma, a subsiary of Tianma, presented the rigid and flexible AMOLED products for the first time, becoming the first Chinese practitioner realizing this achievement.

Looking ahead, Tianma will continue to concentrate on the medium/high end consumption market as represented by smartphones and tablets and the professional display market as exampled by vehicle-mounted devices, medicine, POS and HMI products, and to actively expand the emerging markets of intelligent household, intelligent wearables, AR/VR, unmanned aerial vehicles and charging piles. Upholding the development philosophy to “Lead by Innovation”, our company will delve into the state-of-art technologies in the AMOLED industry, support the application of Internet of Things, and make joint development with all stakeholders(our employees, cooperative partners, shareholders, government and community) to embrace a win-win situation, thus becoming a leader of the global display industry as respected by the society and loved by our employees.

ABOUT US

Company name (Chinese)天马微电子股份有限公司

Company name (English)TIANMA MICROELECTRONICS CO.,LTD.

Legal representativeChen Hongliang

Registered addressSouth Section, 22/F, Hangdu Building,

Middle Shennan Road, Futian district,Shenzhen

Main office address64th Building, Majialong Industrial City,

Nanshan District, Shenzhen

Date of registrationNovember 8, 1983

Business areaMainland China, Hong Kong, Taiwan,

Japan, U.S., Korea,Germany and so on

Company TypeLimited liability company(listed)

Stock exchangeShenzhen Stock Exchange

(ShenTianma A; Stock Code:000050)

Industry involvedComputer, communications and other electronic

equipment manufacturing

Business ScopeIT ser vice,consultation ser vice;Agent sales and procurement of displays and relevant materials(limited items excluded);rental of equipment(excluding financial rental);rental o f s e l f - o w n e d p r o p e r t i e s ; i m p o r t /e x p o r t b u s i n e s s ( e x c e p t i t e m s b a n n e d b y t h e laws,administrative regulations and the State Council.Limited projects must be operated u p o n r e c e i v i n g t h e p e r m i s s i o n ) . D e s i g n , manufacturing and sales of LCD and relevant materials,equipment and products;relevant t e c h n i c a l d e v e l o p m e n t , t e c h n i c a l consultation,technical service and technical transfer;and common freight transport.

Product typesDisplay screen and display module

Main productsFocusing on the smart mobile terminal and professional display markets, Tianma is a m a n u fa ct u re r o f p ro d u cts w i d e l y u s e d i n smartphones, tablet PCs, smart wearable devices, vehicle-mounted devices, medical equipment, industrial instruments, aviation equipment and smart furnishings. Also building presence in the market of future new displays like flexible display and virtual reality.

Total market value(As of Dec. 31, 2017):

276 billion

Company Overview Ownership And Control Relation Between The Company And Actual Holders

Wuhan Tianma Microelectronics

Co., Ltd.

Shenzhen AVIC Display

TechnologyCo., Ltd.

Domestic Companies

Chengdu Tianma MicroelectronicsCo.,

Ltd.

Tianma Microelectronics

(Hong Kong) Limited

Shanghai Tianma

Microelectronics Co., Ltd.

Xiamen Tianma Microelectronics

Co., Ltd.

Tianma Europe GmbH

Shanghai AVIC Optoelectronics

Co., Ltd.

Tianma Microelectronics (KOREA) Co., Ltd.

Overseas Companies

Tianma Japan,Ltd.

Tianma America, Inc.

Shanghai Tianma OLED

Technology Co., Ltd.

100% 100% 100% 100% 100%

100%

10.8%

21.9%

40%

100% 100%

16.2%

51.1%托管

Trustee Companies

Associated Companies

100%

Company basic information

State-owned Assets

Supervision and Administration Commission of

the State Council

National Council for

Social Security Fund

Beijing Tuopu Hanhua Equity

Investment Fund Partnership(Limited

Partnership)

AVIC International

Holding Corporation

AVIC International

Shenzhen Co., Ltd.

AVIC International

Holdings Limited

Tianma Microelectronics

Co., Ltd .

Aviation Industry

Corporation of China

14.31%

14.31%

62.52%

100%

20.81%

33.93%

5.79%

100%

8.86% 5.56%

37.5%

(AS OF END OF THE REPORTING PERIOD DEC. 31, 2017 AS SHOWN BELOW)

ABOU

T US —

Company O

verview / O

wnership And Control Relation

08/

09

AVIC Jianyin Aviation Industry Equity

Investment(Tianjin) Co., Ltd.

CompanyGovernance Structure

In strict compliance with requirements specified in the Company Law, Securities Law, Rules for Shares Listing on Shenzhen Stock Exchanges and other laws, regulations and normative documents, the company’s shareholders’ meeting, board of directors and board of supervisors have constantly improved the legal person governance structure and rules of procedure, boosted the construction of a modernized corporate system and enhanced the company’s normative operation level. A coordinated and balanced operation mechanism with clearly divided powers and responsibilities for the authorities, decision makers, supervisors and management has been put in place to further improve the company’s governance and enhance the company’s normative operation.

Board of Directors takes charge of four special committees respectively concerning the strategy, audit, nomination and salary, and risk management. Through careful audit of major events of the company in the economic, environmental and social aspects, each committee play an important role on providing reference for the Board of Directors to make proper,scientific decisions.The company’s board of directors, the special committee and all functional departments have established a participating mechanism for all stakeholders to supervise, implement and review the company’s strategic plans regarding the economy, environment and society.

Senior management members of the company is made up of the general manager, vice general manager, chief accountant and secretary of the Board of Directors,Senior management members are employed or dismissed by the board of directors. As authorized by the board of directors, the management is responsible for the daily operation of the company, administration of the economic, environmental and social subjects, execution of resolutions of the board of directors and voluntary acceptance of supervision by the board of supervisors.

Tianma’s Values

Passion Effectiveness Win-Win

1983 2008

2006

2009 2015

Shenzhen

Shanghai G4.5

Shanghai G5 Chengdu G4.5、Wuhan G4.5

Wuhan G4.5Tianma Japan,Ltd.

Wuhan G6LTPS AM-OLED

2011

America

TaiwanHongkong

Shenzhen

ShanghaiWuhanChengdu

JapanKorea

2003

Tianma Microelectronics (KOREA) Co., Ltd.

2004

Tianma America, Inc.

Tianma Europe GmbH

Global Technical Service PlatformsWe have built industrial bases in Shenzhen, Shanghai, Chengdu,Wuhan and Japan, and have set up global technical service platforms in major developed countries and regions like the U.S.A., Korea,Germany.

Europe

ABOU

T US —

Global Technical Service Platform

s

12/

13

Technical Innovation And Leadership

Technical planning

RECENT PROJECTS/

realize rapid mass production of such technologies as TED, photo alignment,

AMOLED and 3D Touch;

MEDIUM-TERM PROJECTS/

research and develop flexible, folding display technology, fingerprint

technology under the screen,and integrated input scheme;

LONG-TERM PROJECTS/

configure the front-projected holographic display technology and the human-machine interaction integrated

solution.

Proactively lay out cutting-edge display technology：

Currently, the company’s technical strength and mass production capacity have been in a leading position in the country. In 2017, our 15.6-inch UHD quantum dot LCD module and 2.8-inch super-fast responding and 806PPI LCD panel were awarded the CITE 2017 Innovative Product and Application Prize.

Upholding the development philosophy to “Lead by

Innovation”, the company pioneers the overall layout of new display

technologies such as LTPS and AMOLED around the nation.

Flexible FHD AMOLEDThe 5.5-inch flexible FHD AMOLED screen developed by Tianma features industry-leading indexes, including a definition of 1920*1080, a super-narrow rim of 0.7mm, a super-thin thickness of 0.2mm and an inward folding within a curvature radius of 3mm.。

WQHD AMOLEDThe 5.2-inch WQHD AMOLED screen features a definition of 2560*1440, a PPI of 564, the NTSC above 100%, a luminance of 500nits, a glass thickness of 0.5mm, light and thin module units, extremely short responding time and smooth shift of images.

Ultra-thin Pressure Touch Control LCDThe 5.5-inch FHD TED Plus In-cell screen a d o p t s t h e s e l f - d e v e l p e d T E D P l u s e m b e d d e d p r e s s u r e - i n d u c t i v e t o u c h screen technology to greatly lower the m a n u fa ct u r i n g co st a n d e n h a n ce t h e product’s performance and reliability. This technology was nominated as the 2017 SID Best Product.

Add-on Touch Control The 15-inch add-on touch screen developed b y T i a n m a n ot o n l y e m p l o y s t h e G I P technology, but integrates the 5MASK IPS technology to allow GIP to be used in large-sized applications. This product features a 1000:1 contrast ratio, 88/88/88/88 view angle, and 10-spots touch control. Catering for the high-strength requirements of ATM products and tackling the touch control obstacles of for big screen applications, this product fills in the technical blank in the big-screen touch control field of industrial products.

E-ink Flexible ScreenE-ink flexible screen features paper-like thinness, curved folding, harmlessness t o e y e s a n d c o n s i d e r a b l e s a v i n g o f energy, thus making it easier to carr y, more personalized, more environmental and healthier. Featuring a definition of 1024x768, the pixel density greater than 160 dpi, 16 levels of greyness for display, full-reflection display, contract ratio of 12:1, and 170 degree of view angle, the 8.0-inch flexible e-ink screen can be used for the e-book, price label, bus station board, ad board and IC card.

Highly Transparent Display Technology A d o p t i n g t h e n e w p i x e l d e s i g n a n d o p t i m i z e d m a t e r i a l s , t h e l a r g e - s i z e transparent display technology teriffically i m p ro v e s t h e p ro d u ct ’ s p e n et rat i o n rate while rendering a relatively good c o l o r f u l n e s s . F e a t u r i n g a 1 9 % o f penetration rate, 30% of NTSC and 2.5mm o f m o d u l e r i m , t h e 2 7 - i n c h p r o d u c t developed by Tianma is quite suitable for large-size tiled display applications.

In-cell Capacitive Touch ScreenT h e 4 . 0 - i n c h ro u n d - r i n g a n d 5 . 6 - i n c h s q u a r e - r i n g I n - ce l l c a p a c i t i v e t o u c h screen features high color saturation, high contrast ratio, full view angle and a perfect combination of free appearance and In-cell capacitive touch screen, which simply embodies Tianma’s innovative strength in the display field.

Ultra-narrow AA area In-cell LCDThe 9.8-inch In-cell capacitive touch ultra-t h i n s c re e n feat u re s a m e re l y 6 . 9 m m width in the AA area. With the In-cell touch integrated panel technology, it features 23:1 ultra-high display, integration of peripheral drivers, high color saturation, full view angle and high contrast ratio, applicable to the Touch Bar of laptops.

Low Energy Consumption TechnologyCoupled with the excellent reflection effect, the 1.2-inch a-Si based wearables of Tianma realizes a uW-level energy consumption, pioneering the entire industry.

Dimmable Vehicle-mounted ScreenUtilizing our latest partial light-adjusting technology, Tianma’s 12.3-inch vehicle-m o u n t e d LC D s c r e e n c a n a d j u s t t h e luminance in some backlit areas at real t i m e a cco r d i n g t o t h e co n t e n t t o b e displayed, thus massively enhancing the dynamic contrast ratio, lowering the overall energy consumption of the module and rendering finer display images.

Quick Response Vehicle-mounted ScreenThe 12.3-inch TFT module adopts the latest driving technology of Tianma to apparently shorten the grey scale responding time of LCD and shorten the maximum GTG re s p o n d i n g t i m e f ro m 2 0 m s to 1 2 m s , showing images in great movement in a more smooth and non-dragging fashion.

Dual-screen/Multi-screen DisplayThe 12.3-inch dual-screen/multi-screen fitted touch screen fits two/three 12.3-inch screens with a cover to realize the integrated display on the dashboard and the central console, thus creating an effect to show the eye-catching interior of the car.

Vehicle-mounted curved touch screenTianma’s 12.3-inch TFT-LCD screen, backlit screen and touch screen are all in a curved design. Coupled with our fully-fitting process, we’ve presented the truly fully-curved surface technology to pioneer the industry. Besides, this product also features the super-sensitive full finger, waterproof and gloved touch control technology, bringing a comfortable driving experience and more display information to the driver to greatly enhance the driving safety.

Technical Stregnth

ABOU

T US —

Technical Innovation And Leadership / Technical Ttregnth

14/

15

Market LayoutThe company will concentrate on the medium/high end consumption market as represented by smartphones and tablets and the professional display market as exampled by vehicle-mounted devices, medicine, POS and HMI products, and to actively expand the emerging markets of intelligent household, intelligent wearables, AR/VR, unmanned aerial vehicles and charging piles.

Future Planning

On the basis of an in-depth analysis on the industry str ucture and development trends, the Company has worked out a comprehensive and systemic development strategy. In the future, the Company will continue to focus on the small and medium-sized display segme nts and seize market opportunities,and set up three-stage development strategy:The first stage, about planning, design, manufacture, sales of existing display product, Tianma will aim for number one market shares, leading mass production technologies and best continuously profiting ability;The second stage, about customized display solutions（Panel+）,Tianma will shift its focus from manufacturing to technologies, from products to services,and with flexible display as the core.The third stage, about emerging integrated HCI solutions,Tianma will prioritize designs and platforms, and provide integrated HCI solutions for customers in all sectors.To realize the strategic goal of be coming the world's leading innovative technical company, and push forward the implementation of the threestage development strategy, Tianma will focus and impr ove efforts on advanced production lines and capacity, advanced technologies and new displays.

Consumer goods/

Emerging sectors/

Professional displays/

The company’s products cover some a hundred application fields and markets around the globe.

Business DevelopmentUpholding the objective to take the lead in the global industry, our company is devoted to seeking sustainable development during business operation and has made breakthroughs in all key fields. In 2017, our company continued to optimize the business structure and focus on the medium- and high-end consumer goods fields, made intensive reach into the four professional display segments, i.e. the vehicle-mounted displays, medicine, POS cashier and HMI, and made active efforts to expand new businesses and markets in AR/VR, unmanned aerial vehicles and charging piles. As the saying goes “no pains, no gains”, we continue to write our own history. In 2017, the shipment quantity of LCD full screens ranked first in China and that of LTPS made steady growth and ranked first on the global market.

Aiming at becoming a leader in the global industry, the company is devoted to seeking sustainable

development.

Smartphones consumer digital articles tablets

intelligent household

Unmanned aerial vehicle

VR/AR intelligent wearables

charging pile

Vehicle-mounted displays

medicine human-machine interaction

POS cashier ATM

aviation navigation Internet-based telephone

multi-function industrial control

self-help service engineering mechanics

3D display

ABOU

T US —

Market Layout / Business Developm

ent

16/

17

The G5.5 LTPS LCD production l ine of Xiamen Tianma has achieved full production and full sales, and mass production of hi-end In-cell projects two months in advance. Awarded the “General Manager Special Prize” of AVIC INTERNATIONAL, the G6 LTPS mass production team of Xiamen Tianma once again“pioneered in the mass production of G6 LTPS products in Mainland, China”.On April 20, 2017, the high-profile 6th generation of LTPS

AMOLED production line (G6 LTPS AMOLED) successfully rendered AMOLED products in Wuhan. With rigid and flexible AMOLED products available for production now, Tianma’s G6 LTPS AMOLED production line has occupied the leading position in China. Meanwhile, this is also the first G6 AMOLED production line around the world that presented rigid and flexible screens at the same time.

ABOU

T US —

Major Events of 2017

18/

19

Major Events of 2017

As approved at the 68th job meeting by the Merger and Restructuring Approval Committee for Listed Companies of China Securities Regulatory Commission on Dec. 6, 2017, our company’s proposals to issue shares for asset purchase, raise supporting capital and associate transaction events passed unconditionally. (Remarks: On Jan. 11, 2018, China Securities Regulartory Commission approved our company's issuance of 647.0243 million shares of private placements to buy 100% equities of Xiamen Tianma and 60% equities of Shanghai Organic Light Emitting, and raise up to RMB1.9bln of supporting capital. Targets for this transaction, 100% equity of Xiamen Tianma and 60% of Shanghai Organic Light Emitting, were transferred on Jan. 18, 2018 and relevant registration procedures for the change were completed. From then on, Xiamen Tianma became a wholly-owned subsiary of our company and our company holds 100% equipment of Shanghai Organic Light Emitting.)

the new generation of jumbo jet C919 researched and developed by our country made a success in her maiden flight. C919 is equipped with two sets of LCDs developed by Tianma, one to support the avaiation clock and the other to support the head-up display system. As the only supplier, Tianma outfits the jet with the 3.8-inch TFT original screen to guarantee a quality display. The successful application on C919 makes Tianma the first domestic manufacturer to produce original LCDs for head-up display systems of jumbo jets.

Honors of 2017

Shenzhen Renowned Brands Evaluation Committee: Shenzhen Renowned Brand certificate

2017, China International OLED Industry Meeting: Excellent Enterprise Prize

CITE innovative product and application prize judging panel: CITE 2017 Innovative Product and Application Prize(15.6-inch UHD quantum dot LCD module)

CITE innovative product and application prize judging panel: CITE 2017 Innovative Product and Application Prize(2.8-inch super-fast responding and 806PPI LCD panel)

2017 International New Display Technology Exhibition: Innovative Product of the Year(4.4-inch innovative ultra-high reflection rate outdoor LCD product)

Tablet Display Industrial Association: Top 10 Annual Contribution Prize

AVIC INTERNATIONAL: General Manager Special Prize

Huawei: Excellent Supplier Prize

ZTE: Best Comprehensive Performance Prize

Lenovo: Perfect Quality Prize

Xiaomi: Best Strategic Cooperation Partner Prize

Gionee: Strategic Partner Prize

SIEMENS: Excellent Supplier Prize

Panasonic: Best Supplier Prize

Continental Global: Best Supplier Prize

Mindray: Excellent Cooperative Partner Prize

May 5, 2017

Dec. 6, 2017

ABOU

T US —

Honors of 2017

20/

21

People first. Green operation.Harmonious and sustainable

development of economy, society and environment.

Construct sustainable CSR system, Being the World's Well-Respected

Leading Display Company

Develop the values of employees, build a harmonious business environment,

achieve the winwin with partners, and maximize the enterprise values.

Employee Affairs Team

Social Affairs Team

Economic /Shareholder Affairs Team

Environmental Affairs Team

Supplier Affairs Team

Customer Affairs Team

CSR MISSION/

CSR VISION/

CSR STRATEGY/

In March 2017, the company released publicly 2016 Tianma corporate social responsibility report, disclosed its proposals and performances in the win-win development with its stakeholders such as client, employee, shareholder, government supplier, community. During the report period, no revision to previous reports is made.

On Dec. 23, 2017, the Politics Research Institute of East China University of Political Science and Law, Corporate Legal Affairs Center of Shanghai Jiao Tong University and Oriental Public Welfare Career Specification and Test Center jointly issued the 2017 Social Accountability Index Report for Listed Chinese Companies. As revealed by the report, Tianma ranked 52 for social accountability and 8 for technological innovation among the top 500 listed Chinese companies in 2016. Our company did well in industrial accountability and social accountability, making particular contribution to the technological innovation and talent attraction.

The company is Based on the requirements of RBA, ISO26000, SA8000 and relevant laws and regulations, etc.and formulates such materials related to the CSR system as the CSR Management Manual, Commercial Ethics Management System, Dialogue System for Stakeholders, and CSR Evaluation Procedure,uses the CSR management system into all links of the company’s operation. In 2017, our company reviewed the human rights, labor practice, environment/occupational health/safety, incorruptible operation and business ethics of all industrial bases through the CSR internal evaluation, updated the CSR risk database, constantly promoted the improvement of CSR non-conforming items and enhanced the CSR management system.

Sustainable Development

CSR Working Commi ttee

CSR Working Committee Office

Dept. of CSR Su pervision

ABOU

T US —

Sustainable Developm

ent / CSR Managem

ent

22/

23

CSR Management

As a responsible listed company, Tianma not only focuses on achieving the performance and balance of economic, environmental and social development, but also pays close attention to the concerns of stakeholders and actively give feedback and improves.

Different stakeholders affect or are affected by the Company differently. In pursuance of the latest AA1000 Stakeholder Participation Standard, the Company has preliminary identified and sequenced its stakeholders, and finally selected six stakeholders including suppliers, governments, customers, employees, communities, and shareholders.

Based on the following three aspects, identifies priority of stakeholders:

(A) The possible economic, social and environmental effects that the stakeholders have exerted on the Company,

(B) The possible economic, social and environmental effects that the stakeholders will exert on the Company,

(C) The possible economic, social and environmental effects that the Company exerts on the stakeholders,The Company has made the priority sequencing of the stakeholders.

The Company has built diverse and unobstructed communication with the stakeholders of different classifications, so as to make sure that their demands can be timely, accurately and comprehensively understood and responded by the Company.

Identification of major stakeholders

Communication and Interaction with Main Stakeholders

inspection and self-examination, meeting seminar, information disclosure and correspondence

employee satisfaction investigation, employee symposium,regular training,labor union activity, employee mailbox and official WeChat public account

customer satisfaction investigation, routine communication with customer, customer investigation and review, and industrial exhibition

shareholders’ meeting, onsite reception, investors’ column on the official website, The company's annual report and the “Easy Interaction” Platform of Shenzhen Stock Exchange

procurement activities,suppliers’meeting, supplier training and supplier review

onsite visit, volunteer activity, public good program and new media such as official WeChat

ABOU

T US —

Comm

unication With And Feedback From

Our Stakeholders

24/

25

Communication With And Feedback From Our Stakeholders

Government / Shareholder /

Employee / Supplier /

Client / Community /

In accordance with the validated document Dialogue System for Stakeholders, the CSR committee office of the company started the investigation on stakeholders such as the government, shareholder, employee, supplier, client and community. Through investigations online, by phone, on site and by e-mail, and interviews, we sequence the topics by two dimensions of their significance to the company and concern by the stakeholder.

Thus, results from investigation of material topics are shown in the quadrant figure below and 20 topics significant to stakeholders and the company are figured out.

Remarks:1、In the figure above, ● refers to the economic aspect, while ● to the environmental aspect and ● to the social aspect.2、Compared with the topics of 2016 Tianma CSR Report,This report remains unchanged.3、See specific chapter of this report for responses of the company to 20 material topics highly concerned by stakeholders and of major influence on the company.

The important topics with material impacts on the Company and external organizations, as well as the specific impactsare listed below：

aspect of consideration \Boundary

Internal boundary External boundary

Notes " ● " means "important, with material impacts and data"; "—" means important, without material impacts.

Category Important topics Company Headquarter

Shanghai Tianma

Wuhan Tianma

Chengdu Tianma

Shanghai AVIC Optoelectronics

Tianma Japan,

Ltd.Government Shareholder Customer Supplier Employee Community

Economy

Sustainable Growth ● ● ● ● ● ● ● ● ● ● ● ●

Financial Performance ● ● ● ● ● ● ● ● 一 一 一 一

Company Governance ● ● ● ● ● ● ● ● 一 一 一 一

Legal Payment of Taxation ● ● ● ● ● ● ● ● 一 一 一 一

Environment

Environment Protection ● ● ● ● ● ● ● ● ● 一 一 ●

Energy Consumption and Climate Change ● ● ● ● ● ● ● ● ● 一 一 ●

Green Product and Service ● ● ● ● ● ● ● 一 ● 一 一 一

Society

Employee Care ● ● ● ● ● ● ● ● ● 一 ● 一

Customer Satisfaction Management ● ● ● ● ● ● 一 一 ● 一 一 一

Sustainable Development of Supply Chain ● ● ● ● ● ● 一 一 ● ● 一 一

Technical Innovation and Advancement ● ● ● ● ● ● ● ● ● 一 一 一

Corporate Culture ● ● ● ● ● ● 一 ● ● ● ● 一

Compliant Operation ● ● ● ● ● ● ● ● 一 一 一 一

Employee Training and Development ● ● ● ● ● ● 一 一 一 一 ● 一

Community Public Welfare and Charity Activity ● ● ● ● ● ● ● 一 一 一 一 ●

Strategic Management ● ● ● ● ● ● ● ● 一 一 一 一

Commercial Ethics Management ● ● ● ● ● ● ● ● ● ● ● 一

Health and Safety ● ● ● ● ● ● ● 一 ● 一 ● 一

Respect of Intellectual Property Right ● ● ● ● ● ● ● 一 ● ● 一 一

Social Accountability Management ● ● ● ● ● ● ● ● ● ● ● ●

Key Stakeholder Concern

High

Low HighThe importance of the company

Sustainable Growth

Financial Performance

Company Governance

Legal Payment of Taxation

Environment Protection

Energy Consumption and Climate Change

Green Product and Service

Customer Satisfaction Management

Corporate Culture

Sustainable Development of Supply Chain

Employee Care

Community Public Welfare and Charity Activity

Technical Innovation and Advancement

Compliant Operation

Employee Training and Development

Strategic Management

Commercial Ethics Management

Social Accountability Management

Health and Safety

Respect of Intellectual Property Right

ABOU

T US —

Affecting Boundary Of Topics W

ith Material Im

pacts

26/

27

Results From Investigation For Material Topics Affecting Boundary Of Topics With Material Impacts

BEAR THE SOCIALRESPONSIBILITYBEAR THE SOCIALRESPONSIBILITY

——

Honest and Legal Operation

FOR THE GOVERNMENT

In 2017, our company offered 19864 jobs for the society and paid RMB294,750,442.21 of tax to the government(excluding personal income tax).

In 2017, totally laws, regulations and customer standards were evaluated

During the report period,The company organizes for the common compliance evaluation every half a year, which covers the environment and occupational health, the logistics and transportation, labor relationship, quality management and company equity and governance structure. For the newly added or revised laws, regulations and customer standards, the company organizes special sessions to learn and conform to such stipulations item by item, and promotes the rectification of nonconformities.

14,529 laws

BEAR THE SO

CIAL RESPON

SIBILITY — For The G

overnment / Com

pliant Operation

30/

31

Compliant Operation

From Dec. 4 to 5, 2017, L e g a l p o p u l a r i z a t i o n a c t i v i t i e s w e r e staged in Shanghai Tianma and Company H e a d q u a r t e r, w h e r e 2 2 0 p a r t i c i p a n t s answered questions and gained gifts.

From Dec. 1 to 15, 2017Online legal popularization activities were staged in all industrial bases. In the Case Study Master activity, three winners stood out from the 2000 participants. In the prize-based Q&A activity, totally 827 questionnaires were collected to select 7 for special prizes, 25 for first prizes, 46 for second prizes and 184 for third prizes.

In 2017, one of the key tasks for commercial secret management laid in the in-depth identification of commercial secrets of key technical departments, so as to focus on and specially manage the company’s core commercial secrets. In the top half of the year, the company conducted study on dedicated commercial secret protection laws, regulations and cases, developed and formulated in-depth identification tool form, completed the in-depth identification and management measures for commercial secrets together with core technical departments, confirmed the list of secret-related posts, and proposed specific requirements on the protection of commercial secrets for individuals.

The second key tasks for commercial secret management in 2017 were to sort and implement the commercial secret management measures. The company assigned specific tasks in the commercial secret management system to all implementing departments and conducted research and investigation on the implementation of the secret keeping measures. According to the research and investigation, the company analyzed the causes of the issues and formulated according rectification schemes.

In the bottom half of the year, to enhace the professionalism and effectiveness in commercial secret management, the company established the special team for implementation of commercial secret management and employed consultant experts from outside the company to serve as advisor for the construction of the company’s commercial secret system. Currently, the construction of the commercial secret system has been started and the company has given trainings for the medium management and major involvers. Online investigation is right in progress. In the future, the company will further confirm the risks for protection of commercial secrets through field interviews, and formulate and complete targeted improvement measures. The project is estimated to draw to an end in Q3 of 2018.

In 2017, we issued Special Edition for Legal Dissemination on the WeChat public account “Tianma’s View” each month.

16articles

Issuing Special Editions

The total number of readers

The highest number of readers for a single article

Making posters for legal popularization

Carrying out special trainings for legal popularization in 2017

Time

Activity for the Dec. 4 National Legal Awareness Day

18437persons/times

4420persons/times

twice

43sessions

67h

The number of the participants

1013persons

—

Commercial Secret Management

BEAR THE SO

CIAL RESPON

SIBILITY — For The G

overnment / Com

mercial Secret M

anagement

32/

33

Commercial Ethics ManagementFeature on Incorruptible Operation

Work Summary for 2017

Further strengthened the construction of the incorruptible operation system, and formulated and issued the duty fulfillment and ascertaining system;

Management at all levels and employees for relevant posts signed the Responsibility Letter to Promote an Ethical Party and Government and the Responsibility Letter for Partisan Ethics Construction during Employment, 261 copies in total. With responsibility letters signed level by level, the responsibility system for partisan ethics construction was implemented level by level;

Conducted self-study and test activities for building an incorruptible party and government, and the incorruptible employment practitice examinations for the management and all Party members of the company;

Conducted disciplinary education dissemination month activity through onsite playing of the promotion video for incorruptible education and pushing of incorruptible education content on the official WeChat account;

Carried out collective communication with newly employed medium management for incorruptible employment, covering 1589 persons/times;

Reinforced the supervision and management of transactions and regulatory personnel performed over 400 onsite inspections;

Disseminated the “Ten Inhibitions” for transparent procurement for all procurement staffs and key suppliers of the company, staged incorruptible employment trainings regularly, and signed totally 195 copies of Incorruptible Employment Commitment Letters and Ten Prohibitions Letters. All suppliers are supposed to sign the Incorruption Commitment Letter for Suppliers.

Further intensify the construction of the incorruptible employment system, especially the supervision upon key posts;

O rga n i ze fo r s i g n i n g t h e Re s p o n s i b i l i t y Lette r fo r Constructing an Incorruptible Party in 2018, conduct the disciplinary education dissemination monthly activity and create an incorruptible environment via an innovative working mode.

Lay the key on completing the monitoring system for daily transaction activities, such as the improvement and optimization of e-bid system and e-price competition system.

Work Summary for 2017

The application total in 2017 grew by 17.55% compared with that in 2016, while the authorization total in 2017 increased by 18.7% compared to that in 2016.

A d o p t i n g t h e “ p a t e n t m a n a g e m e n t a n d r e v e r s e d management” strategy, the Intellectual Property Rights Department and the R&D Department joined hands in the implementation of the flexible screen, touch control te c h n o l o g y, o rga n i c l i g h t e m i tt i n g s c re e n a n d f u l l screen projects, summarized the hot technologies and development trends from patent analysis, guided the R&D Department in relevant patent exploration and output, and organized for several brainstorms to gain over 800 patents.

Conduct IP rights trainings for the R&D Department, and staged 9 trainings on basic courses about IP rights. Additionally, we invited patent lawyers both at home and from aborad to hold IP rights seminars and trainings regularly, thus enhancing the comprehensive handling capacity of the IP rights team.

Formulated and established the Primar y CPO Review Commission and Senior CPO Review Commission for inventions of the group. For key technical fields, specific technical expert panels were organized for specific cases. Professional matchup level for the patent proposal and patent review committee reaches 95%, with reviewing efficiency enhanced by about 50%. As of Dec. 31, 2017, over 7000 cases had been reviewed.

Updated and completed the China Patent Application, Writing and Evaluation System, and enhanced the quality supervision on cases written by agents, thus shortening the case writing cycle by 65% and heightening the patent quality score by around 25%.

S h a n g h a i T i a n m a w a s a w a r d e d t h e N a t i o n a l I P D e m o n s t r a t i o n E n t e r p r i s e a n d S h a n g h a i A V I C Optoelectronics was rated the Shanghai IP Demonstration Enterprise.

Work Plan for 2018H i g h l i g h t t h e pate n t q u a l i t y a n d m a n a ge m e n t control application process, and enhance the patent authorization ratio.

Continue to deepen the “patent management and reversed management” strategy, launch project cooperation in key technical fields of the company, lay out for the patent application, and intensify the monitoring and analysis of patents and products of industrial counterparts. Furthermore, we will make better use of the company’s intangible assets, enhance the IP cooperation inside the industry, and increase the application and transformation of patents and technical results.

Enable the gradient growth of the IP team through internal and external trainings; lay major emphasis on the IP rights related senior course trainings for the R&D divisions and improve the IP rights business handling capacity of key R&D personnels.

Establish the processing and review mechanism for Chinese and overseas files, improve the efficiency in patent handling and enhance the authorization rate for patent application.

Participated in the awarding of Chinese patent awards.

Work Plan for 2018

Tianma incorruption servision e-mail address:jijian@tianma.cn

T i a n m a i n c o r r u p t i o n s u p e r v i s i o n hotline:021-38661887 或 18502133904

Correspondence address: Audit and Supervision Department, 889#, Huiqing Rd, Pudong New Zone, Shanghai(201201)

Tianma Incorruption Supervision Contact Card:

—

BEAR THE SO

CIAL RESPON

SIBILITY — For The G

overnment / Com

mercial Ethics M

anagement

34/

35

Commercial Ethics ManagementFeature on Intellectual Property Rights Protection

—

Stabilize Operation and Create Values

FOR THE STOCKHOLDER

Net Profit

Operation Cost

Payment Made to the Sponsor

Employee Salary and Welfare

Reserved Economic Value

Payment Made to the Government

Community Investment(Excluding Physical Donation)

Turnover

The Risk Management Committee is set under the charge of the company’s Board of Directors. Consisting of board directors and senior management of the company, the Risk Management Committee is responsible for reviewing and assessing the company’s management performance in the economic, environmental and social risks, and proposing suggestions for risk management and internal control.

The company is dedicated to establishing and improving its internal control system and regularizing all businesses with the system and procedures, and implementing all-process management and control for key affairs engaged in major investment and construction projects. Especially for the management of bidding and bid invitation, supporting departments such as the Audit and Supervision Department and the Legal Affairs Department manage and control the risks through improving the system and processes, holding training lectures and inviting senior management of kay bid invitation projects. Throughout the year, leaders’ economic responsibilities audit, internal control special audit and incorruptible employment training will be conducted as scheduled to ensure leaders and personnels from key posts conform to the incorruption and other business-related laws and regulations.

Remarks: the data above was rounded off in the unit of “CNY 10,000”.

80,720

1,114,080

22,989

198,427

182,111

30,377

10

1,401,250

BEAR THE SO

CIAL RESPON

SIBILITY — For The Stockholder / Sound the Internal Control System

36/

37

Sound the Internal Control System

Financial Performance

Continue to Deepen Information Disclosure and Improve Information Disclosure Quality

As required by relevant regulations, our company strictly implemented the stipulations on information disclosure, and fully fulfilled the obligations of information disclosure to disclose information in a timely and fair manner and ensure all information disclosed is true, accurate and complete, without false recording, misleading statement or serious omission. In 2017, the company’s information disclosure committee conducted operations as required by the Rules of Debate for Information D i s c l o s u re C o m m i tte e to co n sta n t l y i m p ro v e t h e co m pa n y ’ s information disclosure performance, ensure the company’s information was disclosed in a true, accurate, complete, timely and fair manner, and constantly improvement was made to guarantee the continuous, effective operation of the committee.

Further Strengthen the Management on Investor Relationship and Clear the Request Channels for Investors

Attaching great importance to the management on relations with our investors, the company has established the Management System for Investor Relationship and kept in strict compliance with the system. The company has revealed the address, contact telephone number, fax and e-mail information on our website and the CNINF website to facilitate the communication between investors and our company.The company makes full use of Channels and means such as the investor hotline(0755-86225886), the Easy Interaction platform of Shenzhen Stock Exchange, onsite investigation,investor e-mail box(sztmzq@tianma.cn) to proactively communicate with the investors, listen to the investors’ opinions, answer questions from investors patiently, boost the investors’understanding and recognition of the company, and timely notified the management of the reasonable opinions and suggestions of the investors. set up a bridge for communication between investors and the company.The company is equipped with the specialist to maintain the channels and platform, to ensure unblocked service channels and timely and effectively communication.

Dissemination for Investor Protection via Multi-channels

The company actively coordinates with the dissemination activity of relevant institutes and enlarges the education coverage via such channels as the company’s official website. The company sets an independent column of “Investor Protection Dissemination” on its website to launch full publicity, reprint materials relevant to investor protection(including knowledge concerning the protection of investors’ interests, proper philosophies and knowledge on investment and cases such as “investor protection rules” and “risk identification”), and keep the column content up to date to allow investors to have a deeper understanding of all share transaction risks and relevant rules specified for listed companies. Meanwhile, the company puts up posters in offices to disseminate the investment philosophy of “identifying risks via understanding of rules”.

The shareholders’meetings our company totally held in 2017

4 times

Including annual shareholders’meeting

1 times

Temporary shareholders’meetings

3 timesWe answered questions proposed by investors through the Easy Interaction Platform of Shenzhen Stock Exchange

885 questionsWe totally held investors investigation activities

34 batches

Receiving institutes

395 institutes

investors

482 investors

In 2017, the company totally issued on specified information disclosure media

234 notices

—

Capital Market Responsibility BEAR THE SO

CIAL RESPON

SIBILITY — For The Stockholder / Capital M

arket Responsibility

38/

39

—

Company Headquarter

635 million

Shanghai Tianma

583 million

Chengdu Tianma

3791 million

Wuhan Tianma

674 million

Shanghai AVIC Optoelectronics

1548 million

Tianma Japan, Ltd.

502 million

The company continues to increase the investment in environmental protection, The investment cost in environmental protection in 2017

7733 million yuan

In 2017, the company was devoted to promoting the establishment of the green factory, green product and green manufacturer evaluation systems. Upholding the philosophy to seek a harmonious development of the company and the society, the company continued to promote the system construction and approval certification, and put the concept of sustainable development into each link of the product R&D, design, production, circulation and recovery life cycles. We strived to improve the energy utility, lower the emission and save the energy, thus creating an environment-friendly enterprise and endeavoring to realize the win-win situation of green development.

The company has established the Safety Committee to take charge of the EHS management work. By the end of 2017, the Safety Committee consists of 178 members, with 47 employee representatives, accounting for 26%. The company has always put it as the EHS principle to “obey laws and regulations, put people first, save energy and reduce consumption, prevent pollution, promote green production and sustainable development, involve all employees, and prioritize health and safety”, to list the EHS work into the performance examination of all departments and responsible persons to implement level by level.

Green, Environmental and Clean Production

FOR THE ENVIRONMENT

BEAR THE SO

CIAL RESPON

SIBILITY — For The Environm

ent / Protect the Environment

40/

41

Protect the Environment

CompanyWhether it is a key pollution

discharger

Major pollutant

Discharge mode

Quantity of discharge

ports

Distribution of discharge

ports

Discharge concentration

Total discharge volume in 2017

Excessive discharge

Pollutant discharge standard executed

Approved total

discharge volume

Operation of environmental

facitlities

Chengdu Tianma

YesDischarge

upon standard-meeting

treatment

1One

respectively in the east side of the

plant

None

Wuhan Tianma

YesDischarge

upon standard-meeting

treatment

1 the D1 Diesel Storage Tank

AreaNone

Shanghai Tianma

YesDischarge

upon standard-meeting

treatment

1general

discharge port at

northwest of the plant

None

Shanghai AVIC OptoelectronicsShanghaiOptoele

ctronics

YesDischarge

upon standard-meeting

treatment

3wastewater processing building of the plant

None None

Company Headquarter

NoDischarge

upon standard-meeting

treatment

21# and 2# Workplant Discharge

Ports22mg/L 2.6t None

COD

Ammonia

nitrogen

183mg/L

3.56mg/L

190.03t

3.697t

GB8978-1996

GB/T31962

-2015

301.1t

42.27t

Normal

COD 101.45mg/L

13.16mg/L

47.75t

4.78t

GB8978-1996

CJ343-2010

91t

9.1t

COD

COD

102.496mg/L

3.206mg/L

DB 31/445-2009

38.41T

15.06T

133mg/L

13.99mg/L

366.6t

38.56t

DB31/445-2009

In 2017, the company firmly implemented environmental laws, regulations and standards, made greater efforts to save energy and reduce discharge, eliminated outdated production equipment, and implemented clean production, thus ensuring the discharge of wastewater, exhaust, noise and waste solids meets the standards. In the past year, all our production bases passed the review of the ISO14001 Environment Management System. Through recycling of back washing water and improvement in techniques, the unit dosage was lowered, dose service life was extended and utility was improved to lower the discharge of wastewater by 87082t/year. With steam heat supply replaced by hot pump, steam consumption was saved by 17934t/year. The promotion of the air compressor unit saved electricity consumption by 440,000t/year.

For major pollutants of the company of COD and ammonia nitrogen, supervisive monitoring was carried out each quarter and outsourced monitoring each month for all production bases. All monitoring indexes were within the waste discharge standard scope, not exceeding national and local discharge standards. According to the reply from the environmental impact assessment, discharge ports were set at specified areas in the plant that conform to the environmental requirements. Discharge of all production bases in 2017 totalled: 641t of COD and 51t of ammonia nitrogen, within the approved total discharge volume. All emergency preplans for environmental pollution contingent accidents in all production bases were archived in local environmental protection bureaus. In 2017, the environmental facilities of all production bases ran well, without any major environmental leakage accidents or punishment by competent authorities.

34.07t

4.377t

COD DB44/26-2001 6.307t

Industrial bases Environmental Impact Assessments and Other Administrative Permission on Envionrmental Protection of the Construction Projects

Voluntary Environmental

Monitoring Scheme

Chengdu Tianma The 4.5G TFT-LCD project of Chengdu Tianma gained the reply of environmental impact assessment(EIA)

Wastewater: Once/month;

Exhaust: Once/half a year;

Noise: Once/quarter;

Wuhan Tianma

The 4.5G TFT-LCD and CF projects of Wuhan Tianma gained the reply of environmental impact assessment(EIA)

The 6G LTPS-AMOLED project of Wuhan Tianma gained the reply of environmental impact assessment(EIA)

Wastewater: Once/month;

Exhaust: Once/half a year;

Noise: Once/quarter;

Shanghai Tianma The 4.5G TFT-LCD project of Shanghai Tianma gained the reply of environmental impact assessment(EIA)

Wastewater: Once/month;

Exhaust: Once/half a year;

Noise: Once/quarter;

Shanghai AVIC Optoelectronics

The 5G TFT-LCD project of Shanghai AVIC Optoelectronics gained the reply of environmental impact assessment(EIA), as well as approval for the R&D and

industrialization of 5G medium/small sized new technololgical products and large-sized professional display products

Wastewater: Once/month;

Exhaust: Once/half a year;

Noise: Once/quarter;

Company

HeadquarterShenzhen construction project of Tianma gained the reply of environmental impact

assessment(EIA)

Wastewater: Once/month;

Exhaust: Once/year;

Noise: Once/year;

BEAR THE SO

CIAL RESPON

SIBILITY — For The Environm

ent / Environmental Protection

42/

43

Construction and Operation of Pollution Prevention Facilities

The company has prepared preplans for emergent environmental incidents according to standard specifications, which were reviewed by experts from local environmental organizations and kept on records. In 2017, we organized and completed the rehearsal of preplans for emergent environmental incidents, summarized and evaluated the results, and modified relevant emergency countermeasures.

Emergency Preplans for Emergent Environmental Incidents

Environmental Protection

Ammonia

nitrogen

Ammonia

nitrogen

Ammonia

nitrogen

Normal

Normal

Normal

Normal

Normal

Normal

Down 8.9%

Data about Energy Saving and Emission Reduction of the Company in 2017:

Environmental Cases

The summary for Phase I of the HCFC elimination project for China’s cleaning industry held by UNDP and FECO and the preliminary training for Phase II of the project was held in Wuxi on Mar. 23, 2017. As the first demonstrative company that had signed agreement to voluntarily eliminate HCFC in the electronics industry, Tianma was awarded the Montreal Protocol – Completion of HCFC Elimination certificate.

C o m p a n y h e a d q u a r t e r i n t r o d u c e d t h e h i g h -performance cool water unit employing the magnetic suspension technique and advanced logic-control system to replace the former low-performance AC cool ing unit , thus enhancing the operat ion e f f i c i e n c y o f t h e AC s y ste m , a n d l o w e r i n g t h e power consumption. Under the same production strength and climate conditions, the annual power consumption by the AC system was decreased by over 30% approxiamately, thus consuming and discharging less, and bringing forth better economic and social effectivenesses. On Sep. 1, 2017, the office of the Ministry of Industry and Information Technology issued the first list of green factories in 2017, where o u r L o n g g a n g P l a n t s u b o r d i n a t e t o C o m p a n y Headquarter was listed.

Shanghai AVIC Optoelectronics introduced the pump-based heating technology to totally replace the former thermal supply mode by steam. Featuring efficient heating performance, stable supply of low-temperature cooling water and high-temperature hot water, the high-temperature heat pump unit was built as a perfect substitute for the former heat supply by steam for the pure water and AC systems. This substitute saved the use of steam by 17934t/year. Shanghai AVIC Optoelectronics was thus awarded the “Pioneer of Safe Production in Xinzhuang Industrial Zone of Shanghai 2017”.

Energy consumption per unit product(ton standard coal)

Unit power consumption(kWH)

Unit water consumption(m3/m2)

Achievement in Reduction of Discharge of Three Wastes in 2017:

Emission of greenhouse gases reduced by

7080 t/year

Discharge of wastewater reduced by

87082 t/year

Discharge of hazardous wastes reduced by

588 t/year

Case I:

Case II:

Case III:

Down 11.94%

Down 11.6%

Emission of greenhouse gas(t)

Down 1.07% Direct emission of greenhouse gas(t)

Down 22.06% Intensity of greenhouse gas emission(CO2 t/m3)

Down 15.92% Total wastewater drainage/m3

Down 3.01%

—

BEAR THE SO

CIAL RESPON

SIBILITY — For The Environm

ent / Environmental Cases

44/

45

Management platform of green

product

Green Class

Green Design

Upholding the principle to put product quality first, the company keeps in strict compliance with the procedure for development of new products and project management during release of any new product, and organizes personnel involved in technology, process and supply chain to conduct full evaluation. Upon production, DQV will conduct full reliability test, with only accepted products released to the market.

In light of the current situation of the industry where consumers’ environmental awareness has been improved and customers’ demands have become stricter, the company actively responded to the green development trend through strict control over the material selection at the R&D stage and greater efforts to promote the supply of harmless materials by suppliers, thus enhancing the company’s competitiveness to offer green products.

Green InformationTo timely understand the changing trend of the industry and accurately grasp the dynamics of the laws, regulations and market, the green product management platform kept in good touch with third parties to acquire the latest laws, regulations and industrial information, and publicized inside the company via our internal magazine Green Information.

Harmless Development

Green Design Green Information

Green Production

Green Supply Chain Management

Green Service 绿色物流 绿色 IT

The classes of materials limited

Halogen-free Development

69

51.4% 51.6% 62.9% 63.4% 64.6%

70

71

80

86

2012

2013

2014

20152016

2017

The proportion of halogen-free design

Totally 5 regulations and 75 requirements requested by the client were identified in 2017. They were all transformed to the internal environmental standard, the 1.6 Version of Tianma Environmental Material Management Benchmarks, which was issued in Sep. 2017.

Green Products And Services

BEAR THE SO

CIAL RESPON

SIBILITY — For The Environm

ent / Green Products And Services

46/

47

The regulations identified throughout the year

5 regulations

75 Requirements

The requirements requested by the client

Green ProductionAlso, the company paid great attention to the pollution risks to each working procedure throughout the entire manufacturing process except the R&D stage. Thus, no halogenated materials were used throughout the entire manufacturing process. Environmental evaluation procedure was strictly executed in the import of auxiliary materials. In addition, cyclic auxiliary materials and tools were sent for internal inspection, and semi-finished products and finished products were entrusted to external testers to verify the pollution risks of the manufacturing process and thus realized 0 environmental accidents at the client in 2017.

Green Supply Chain ManagementThe company held the 2017 Supplier HSF Publicity Meeting in Nov. 2017 in a bid to clarify the GP requirements of Tianma and out clients and reinforce the supplier’s awareness and capacity of harmful substance management. Totally 131 major material suppliers (totally 165 persons) attended this meeting.

Green ServiceTianma has established a complete green and environmental m a n a g e m e n t s y s t e m f o r o u r p r o d u c t s , i m p o s i n g comprehensive monitoring upon the design, material selection, material input, production and shipment of the product and making act ive response to c l ients’ environmental management requirements. Acquir ing continuous approval from the client, the company was awarded the Green Partner for Huawei certificate in Sep. 2017.

With update and publication of RoHS/REACH and local regulations in 2017, al l terminal cl ients modif ied the environmental standards simultaneously. The company made active participation in the publicity meeting for standard changes of all clients to grasp the changes in client’s requirements and timely shared, transformed and executed inside the company to enhance the customer satisfaction.

Customer Satisfaction(Environmental Protection Management Chapter) Score

2013

79.75

2014 2015 2016 2017

87

9397 97

—

BEAR THE SO

CIAL RESPON

SIBILITY — For The Environm

ent / Green Production / G

reen Service

48/

49

Green Warehouse ManagementI n s e l e c t i o n o f w a r e h o u s e e q u i p m e n t , t h e co m pa n y eliminated the diesel-type forklifts and replaced with electrically driven forklifts and tray carriages to reduce emission of fuel exhaust and help protect the environment. The company is evaluating the overall effectiveness in saving the space and enhancing the logistics operation by introduction of automatic warehouses.

Fo r t h e d i s p o s a l o f p ro d u ct i o n wa ste s , t h e co m pa n y totally disposed 9750t wastes in 2017. As to the disposal of unrecyclable wastes, the company highl ighted the identification and management of hazardous wastes, formed strict procedures for internal approval and handed all hazardous wastes rated by the EIA to qualified institutes for disposal.

Regarding the warehouse projects, the company introduced WMS in 2017, which had been used in some production bases and is estimated to be used by the entire company in 2018. Information was integrated via a highly electronic manner to eliminate use of papers for office work, thus effectively saving the resources.

Comprehensive Transportation ManagementUnder a group-based management mode, supplier resources were unified and platform information was shared to improve the utility of transportation resources.

The company continuously strengthened communication with suppliers and properly designed the logistics scheme to match the shipment volume with the vehicle loading capacity as far as possible, or to share the shipment among available vehicles to enhance the full loading rate, reduce waste of transporting resources and lower the carbon emission volume.

The company continuously promoted the material recovery at the supplier and client ends, with 15854 PP-boxes and 18931 EPP recycled in 2017. In addition, blister trays, trays and corner protectors worth RMB222,400 had been planned to be recycled in 2017 and that worth RMB288,000 were recycled actually, making recycled use of resources and lowering the resource consumption.

1. Through process combination and optimization, and non-paper office routines, the company increased its online business processes to 263, with 655081 cases applied online in 2017, up 29.1% year on year, saving around RMB543,479.6 for paper consumption and printing.

2. In the IT Data Center expansion project of 2017, the company further upgraded the traditional virtualization technology and expanded the connotation and interests of the green IT in 2016. Based on the achievement of the Green IT initiative in 2016, the company continued to practice the Green IT theme and carry out the Gree IT activity centering on the company’s CSR strategies and objectives, and made deeper implementation of the activity.

We continued to create a new, green data center, constantly reinforced the management of radiated environmental space, lowered the quantity of hardware servers and the energy consumption cost through expansion of storage capacity and virtualized integration, effectively shortened the time needed to put the new business system online, improved the overall reliability of the system and guaranteed the continuity in the operation of the company’s businesses. In the IT Data Center expansion project, the server virtualization continued to enlarge its coverage and increase the green IT output. For example, while satisfying the demand of IT resources by the business system, we continued to shorten the original demand of 44 physical servers to the fully virtual vSAN architecture deployment of 26 servers, saving the space for 3 cabinets in the machine room, lowering power consumption by 110376KWH, and decreasing the emission of carbon dioxide.

3. The company fulfilled the goal of energy saving and emission reduction through desktop virtualization project(11464 points), with power consumption by thin client declining from 2476224 KWH to 1238112 KWH, 50% lower than traditional PC, saving RMB940965.12 for power fare. In this project, the company enabled a single server to be shared by multiple environments through virtualization technology, enhancing the server utility by 66% and lowering the power consumption from 1672070.4KWH to 1006725.72 KWH, saving RMB505661.95 for power fare.

—

Green Logistics

Green IT BEAR THE SO

CIAL RESPON

SIBILITY — For The Environm

ent / Green Logistics / G

reen IT

50/

51

Remarks: Except otherwise specified, the chapter for the environmentonly reveals data of four locations and five companies in China.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Em

ployees

/52

53

People First, and Joint Growth Preferred

FOR THE EMPLOYEES

T h e n u m b e r o f e m p l o y e e s a r e primarily decided by the business expansion and change in capacity.

By the end of 2017,the total number of company employees

Proportion of newcomers in employee totals by age

Remarks: The number of employees mentioned above refer to the total of formal employees, interns and dispatched workers.

Total of employees with fixed term

Total of formal employees

employees are aged above 50

employees are aged below 30

≤ 30 years in age: 91.11% 30 years in age ＞ X ≥ 39 years in age: 8.67%40 years in age ≥ X ≥ 50 years in age: 0.19% ＞ 50 years in age: 0.03%

employees are aged between 30 and 50

employees are from ethnic minorities

Total of employees without fixed term：

Total of informal employees

19864 persons

17736persons

13792persons

78persons

15543persons

4243persons

1361persons

2128persons

6072persons

Totally 13242 males, accounting for

Totally 6622 females, accounting for

67% 33%

males: 11997

males: 8842

males: 1245

males: 4400

females: 5739

females: 4950

females: 833

females: 1672

accounting for

0.4%

accounting for78.2%

accounting for21.4%

accounting for7%

During the recruitment and employment, the company radically implements the social responsibility, pays attention to management and development of local talents, and prefers to employ people from local community, thus enhancing the local operation efficiency, increasing employment and taxation, and contributing to the development of local society.

As stipulated by the company regulations, no bias is allowed in the recruitment, promotion and salary setting process in terms of the race, sex, nationality, age, pregnancy or disability. No events or complaints concerning the said form of bias have been received since establishment of the company. It's clearly forbidden for the company to employ forced, debt-offset or contracted labors, and detailed and proper stipulations are made in major links such as the recruitment, employment and demission to prevent employment of forced labor. No labor forcing ever occurred during the operation of the company.

It’s strictly forbidden to employ child laborers. We have formulated relevant policies and completed preventive measures in all major links during the recruitment and employment to prevent employment of child laborers. Meanwhile, we notify suppliers of this requirement and conduct regular monitoring and review to ensure no child laborer is employed. No case of child employment has ever been reported since the company was founded.

The company respects the employee’s rights to freely form associations and carry out collective negotiation. Also, the Labor Union has been established to be in charge of collective negotiation and consultation. The collective contract for Four locations and five companies in China covers 100% of the employees. Representatives of the Labor Union are elected from the employees in a democratic way, who would express opinions on behalf of the employee to negotiate with the company as subject to no revenge. The company’s Labor Union participates in the formulation or revision of all management systems related to the employees’interests and makes effective discussion on how to better guarantee the employees’ rights.

The company establishes various channels for communication to collect opinions and suggestions of the employee. The company a l s o m a ke s a va i l a b l e t h e h ot l i n e a n d mailbox for whistle-blowing to deal with complaints and reports from the employee. Employees' Opinion Box is set up at eye-catching position in the canteen, dormitory and office areas, and assigns special persons to collect and respond in a regular basis. Also, the company organizes for employee communication meeting every month and employee representative meeting regularly to allow the employee to express their opinions. The company also timely answers qu est ions concerned by th e employee through the WeChat platform.

With respect to the safe production, the company strictly upheld the philosophy of “Safety First, Prevention Prioritized and Comprehensive Governance” to establish and improve the safe organization guarantee system, system guarantee system, risk control system and examination and evaluation system. The company set up the Safety Committee, Security Office and Environmental Safety Department to give a comprehensive guidance over the EHS (environment, occupational hygiene and production safety) work, and the Safety Committee and Environmental Safety Department in all production bases to be specially responsible for the routines for safe production management. Currently, all production bases of the company have been reviewed and approved by the Safe Production Standardization Management System. Wuhan Tianma modified the welding posts by mounting the preventive hood, thus further enhancing the prevention and protection of the operators. Wuhan Evening Paper reported the EHS management experience of Wuhan Tianma with an entire page.

In 2017, the company actively carried out the safe production inspection and correction of key areas, organized personnel to conduct hazards checking and governing activity, and “checked back” hazards discovered during the inspection and corrections for such issues, thus realizing an enclosed management of hazards checking.

The company established and improved the emergency preplans as required by relevant laws and regulations in 2017, and modified 9 comprehensive emergency preplans, 97 dedicated emergency preplans and 598 field treatment plans. To check the applicability of those emergency preplans and intensify the emergency coping capacity of all posts, the company actively organized for the emergency rehearsals and conducted 507 emergency and rescue rehearsals as attended by 70551 persons/times.

Regarding the occupational health of the employees, the company spared no efforts to make constant investment and improvement to establ ish and improve the management system for occupational health, conduct trainings and publicity activities for occupational health, implement the occupational health monitoring and labor prevention work, promote the monitoring of hazards for occupational diseases and execute the emergency preplans for occupational health. For all the 1212 employees involved in the company’s accused work divisions, no occupational disease suspects or sufferers were found, which guarantees the occupational health of the employees.

Remarks: The above chapter for Health and Safety First only reveals data of four locations and five companies in China.

Transparent Kitched and Cooking BenchIn active response to the government’s calling, the company made great efforts to make the “cooking process transparent”. Through the live broadcasting of the cooking process with the 6 TV sets in the hall or the mobile app, employees can have a real-time understanding of the progress in the kitchen, thus ensuring the food safety and cooking transparency. Besides, all food supply receipts can be displayed on the TV sets. The receipt/certificate-based supply system was implemented, with the receipts and certificates publicized to make the procurement source clearly traceable. Employees served not only as the beneficiary but the supervisor of the food safety. All employees were involved in the supervision process to safeguard our food safety.

modifying comprehensive emergency preplans

dedicated emergency preplans

field treatment plans

Emergency and rescue rehearsals of safety in production

The total number of attending rehearsals

09

97

598

50770551 persons/times

—

Human Rights Guarantee

Health And Safety First

Remarks: The above chapter for Health and Safety First only reveals data of four locations and five companies in China.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Em

ployees / Hum

an Rights Guarantee

/54

55

To contribute to the company’s strategic development and promote the talent development, the company formulated and implemented the talent development plan to improve the employees’ professional skills and general capacities and boot the core competitiveness of the employees and the company. Meanwhile, the company adopted the A+ABC performance management mode and occupational development examination scheme for talent management and employee promotion.

Training Programs of the Company: I . T r a i n i n g p r o g r a m s t o b e c o n t i n u o u s l y implemented:

Optimization and construction of training policy system, multi-function employees/full technician training, optimization of lecturer management system, introduction of corporate strategies and corporate culture values, orientation for newcomers and training programs for fresh graduates(T-PLAN).

II. Training programs planned and implemented in 2017:

1.Leadership and management ability improvement trainings: Eyas Program 1, LAMP1,Roc Training Program;

2.Technical and guiding capacity enhancement training: TAMP1-quality class/IE class, 6-sigma green belt/black belt, TAMP2-lean production class and DFSS training;

3. Key group professional competency improvement;

4. Optimization of lecturer management system – credit system;

5. Training big data/promotion of course sharing platform;

III. Training programs to be planned and unfolded in 2018:

Leadership and management ability improvement trainings: Roc Training

Program,LAMP2.Remarks:Person-Time in the table means the total number of employees who underwent trainings in 2017; Person/Time/Qty. refers to total hours of training the employees took in 2017.

Female employees asking for maternity leave in 2017

273Male employees asking for paternity leave in 2017

181Female employees returning for maternity leave

319

Male employees returning for paternity leave

272

2017 training data of all industrial bases

Employee Guarantee Feature: Maternity Leave/Paternity Leave

Company Person-Time

Company Headquarter 3011

Chengdu Tianma 615

Shanghai Tianma 7994

Wuhan Tianma 11547

Shanghai AVIC Optoelectronics 1986

Tianma Japan, Ltd. 768

Company Person/Time/Qty.

Company Headquarter 37160

Chengdu Tianma 11281

Shanghai Tianma 127904

Wuhan Tianma 130803

Shanghai AVIC Optoelectronics 33767

Tianma Japan, Ltd. 7335

Employee Training

Total of participants of the company’s CSR Newcomer Training in 2017:

23812

—

Salary and Welfare

Remarks: The above chapter for Maternity Leave/Paternity Leave only reveals data of four Offices and Five Subsidiaries in China.

In 2017, the company continued to advocate the philosophy to put human first and stimulated employees’ potential. In strict l ine with the stipulations on the minimum wages in national and local laws, the company made efforts to promote the construction of a comprehensive talent stimulation system. As to the salary and welfare, the company improved and ref ined t h e s a l a r y s y ste m . I n s i d e t h e co m pa n y, w e analyzed the salary status quo, while outside the company, we understood the overall salary status of counterparts from third party consultation institutes. In compliance with the company’s development and talent strategies, the company established the position-specific salary system based on the trend in the labor market, the industrial status quo, employee’s capacity, job value and job performance. Constant efforts were made to establish a salary system that is fair and stimulating inside the company and comparable to other companies. No difference will be seen in the salary standards for different genders. With respect to the welfare, the company paid the endowment insurance, medical insurance, labor injury insurance, birth insurance, unemployment insurance and housing fund as required by relevant laws and regulations, as well as supplementary commercial insurances for accidental deaths and injuries, deaths and injuries caused by traffic accidents and deaths due to diseases. As required by national and local rgulations, the company also offered employees labor protection items, maternity leaves and paternity leaves, breeding leaves, paid annual leaves and funeral leaves, as well as team construction expenses and gifts for holidays, covering 100% of the employees. In terms of performance, the company established the level-by-level, type-by-type performance management system based on the company’s o p e r a t i o n a n d e m p l o y e e s ’ c o n t r i b u t i o n s to co n sta n t l y o pt i m i ze t h e m a n a ge m e n t o n basic performances of the employees and the management on project performance.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Em

ployees / Employee Training / Salary and W

elfare

/56

57

Tianma Summer Holiday Nursery

As the only winner in the panel manufacturers, Tianma was awarded the Top 30 Excellent Employers in South China by the Dajie.com from over 1.6 million participant brands by scores from over 50 million users.

We created a passionate and open environment for joint development to allow our employees to enjoy happy work and life.

—

Employee Care Activity

To help our employees balance the job and life, we ran the summer holiday nurseries in our company. In the summer vacation of 2017, the nurseries in Company Headquarter and Shanghai Tianma admitted nearly 200 kids of our employees. Learning more knowledge and gaining more opportunities for practice, they spent a safe, happy and fruitful vacation in the nurseries.

We created a passionate and open environment for joint development to allow our employees to enjoy happy work and life. BEAR TH

E SOCIAL RESPO

NSIBILITY —

For The Employees / Em

ployee Care Activity

/58

59

Activity for the Retired

—

On Nov. 15, 2017, a delegation of 31 retired employees of our company visited and was warmly received by Wuhan Tianma. They visited the G4.5 and G6 projects of Wuhan Tianma. Seeing the sweeping changes taken place in our company, those who devoted their youth and passion to the company couldn’t help showing their praise.

T-MAN ActivityIn July 2017, all production bases of our company welcomed 1073 fresh graduates. To help them(T-MAN) mingle with the environment and boost their commitment t o w o r k , t h e co m p a n y d e s i g n e d a n array of training programs and cultural/recreational activities.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Em

ployees / Employee Care Activity

/60

61

Traditional Festivals

Workout Season

—

On all traditional festivals, the New Year’s Day, Spring Festival, Dragon Boat Festival or Mid-autumn Day, the company prepared celebration activities for our employees to enrich their spare time. Meanwhile, the company prepared a carefully-picked “Holiday Gift Package” for each employee to show the company’s gratitude and blessings. Employees can pick gifts online for their holidays.

Our company pioneered the workout culture and actively organized basketball games, football games and badminton games. To keep our employees away from occupational diseases such as cervical spondylosis, the company played twice the background music for broadcast exercises at 10:00 am of each workday to remind our employees of doing exercises at work intervals. Also, the background music for eye exercises was played at 15:00 each workday.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Em

ployees / Employee Care Activity

/62

63

—

Joint Development for Win-win Situation

FOR THE PARTNER

Supplier Management

The company is primarily replenished by hi-tech and labor intensive suppliers(respectively for forepart material of LCD and material for customized pieces), as supported by equipment manufacturers, spare parts agents, culture and education agents and e-commerce practitioners. Through better automation, the labor intensive suppliers gradually lower our dependence upon laborers.

During the report period, the company introduced 163 new suppliers and eliminated 226 existing ones. As of the end of 2017, the company had 1974 suppliers in hand in total. Throughout the report period, no major changes took place in the suppliers’ location and the structure of supply chain.

By the material characteristics, the company’s suppliers are divided into four classes, with Class I – III suppliers responsible for production matters and Class IV suppliers accountable for non-production matters. There are 555 production suppliers in charge of direct materials used for LCD & LCM and chemicals and gases used for the production. 1419 non-production suppliers are in charge of supplying equipment and relevant spare parts, and fixed resources.

The company has 1410 Producers,317 agents, 143 merchants and 104 agents and merchants.

The company promoted the domestic manufacturing of materials.Showing great intention to use and develop local suppliers, the company established the index for coverage by domestic material/equipment and according action plan. In 2017, the company spent RM9.5 billion in procurement, with RMB6.6 billion spared to domestic suppliers, accounting for 69% in the total amount.

The company established the management procedures for procurement business in 2011 to specify clear requirements on strategy formulation, resource development, supplier introduction and supplier management. To promote the supplier to jointly shoulder the social responsibility, the company required all suppliers to sign the CSR agreements. Only upon signing the CSR agreement can new suppliers be accepted for cooperation with Tianma.The CSR agreement rate of new suppliers was 89% in 2017.The CSR agreement specified requirements on human rights, laborer practice, environment, occupational health and safety and business ethics, as well as articles for elimination due to violation. Resource procurement personnel are responsible for the specific promotion of the signing of CSR agreement, while SQE personnel for the regular review of the supplier. No child laborer or forced labor, nor suppliers of major actual/potential negative impact on environment, human rights, labor or society are found.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Partner / Supplier M

anagement

64/

65

On April 26, 2017, 2017 Tianma Global Suppliers’ Meeting was held in Wuhan, which was attended by 229 cooperative partners from the Europe, US, Japan, South Korea and Taiwan. Over 400 industrial elites gathered in the meeting to review the contribution made by our suppliers in 2016 and look into the 2017. Zhang Wentong, director of the Organizing Committee of Wuhan Donghu Hi-tech Development Zone, Ren Yamin, vice director of Wuhan Donghu Hi-tech Development Zone, and responsible persons of the eight parks and the investment promotion bureau showed up on the occasion. Senior management of Tianma also attended this event and shared their views on the planning of the market and Tianma’s products, the planning of technical development, the procurement planning and the progress of G6 LTPS AMOLED project. To appreciate our cooperative partners for their competent support to Tianma in 2016, we awarded cups to some prominent partners. Totally 39 suppliers were awarded the Best Delivery Support Prize, Best Technical Cooperation Prize, Excellent Quality Prize, Excellent Equipment Supplier Prize, Excellent Supplier Prize and Diamond Supplier Prize. In the meeting, samples presented by the 6G LTPS AMOLED production lines also made their debut appearance on the very day of April 20.

2017 Tianma Global Suppliers’Meeting Kicked off in Wuhan

T h e co m pa n y h a s e n ga ge d o u ts o u rce r s i n to t h e CS R management system since 2013, established and optimized the database for outsourcer management, and worked out a unique outsourcer management mode collectively arranged by the company and covering all production bases. As to the management coverage, it’s divided into the five sections for foods, logistics, vehicles, office routines and accommodations. With regard to the management method, it made available a scientific management mechanism for the access and exit of outsourcers by organic combination of the three links of systematic fine supervision, systematic featured training and publicized performance examination. All such efforts were made in an effort to create a comfortable office environment and offer quality living services.

The company joined hands with property outsourcers to make intelligent and personalized promotion, run the WeChat public account of the Employee Service Center, built the one-key repair system, and made available the repair with uniformly dispatched personnel through backstage analysis data, thus greatly enhancing the response speed and working efficiency. Human-friendly services such as the “shuttle bus” and “mobile rainshelter” made our employees at home.

Resource Map, Controllable Risks

With the resource map management tool put in place, the company identified resource risks from both the interior and exterior. Upon degrading review of resource risks identified, the degrading results were adopted for the enclosed management. In the resource map, resource risks were divided into the three time dimensions, the long-term, medium-term and short-term, and into those caused by objective reasons and by management reasons to facilitate the management and control. In 2017, resources of the Procurement Center came from 22 sorts of materials of 13 product lines. Among all the 184 risk points, 22 were already identified. The management team tracked the degrading progress of short-, medum- and long-term resources by month and by quarter, thus realizing a more effective management and monitoring of resource risks.

—

BEAR THE SO

CIAL RESPON

SIBILITY — For The Partner / O

utsourcers Managem

ent

66/

67

Outsourcers Management

Focusing on medium-/small-sized displays, the company was dedicated to offering our clients the world over cutting-edge technologies and products and quality services. At present,the company chiefly serves customers in Mainland China, Taiwan, Europe, America, Japan and South Korea.

—

Customer Relationship

European

BEAR THE SO

CIAL RESPON

SIBILITY — For The Partner / Custom

er Relationship

68/

69

As a global leader of the medium-/small-sized displays, Tianma has attained constant growth in business turnover in recent years through technical breakthroughs one another. To register greater achievements, intensify the communication and cooperation with global clients and promote the technical development and global layout, Tianma attended many an event in the global technology industry with several technological achievements in 2017, showing the world Tianma’s capcity of creating a “Wonderful View”.

Chongqing

Time Location Grand meeting of science and technology

Jan. 6-9,2017 Las Vegas, USA CES 2017

Feb. 27-Mar.2,2017 Barcelona, Spain MWC 2017

Feb. 14-17, 2017 Nuremberg, Germany Embedded World 2017

Apr. 9-11, 2017 Shenzhen （CITE 2017）

Apr. 25-27, 2017 Shanghai 2017 C-touch and Display Shanghai and International New Display Technologies

May 23-25, 2017 Los Angeles,USA 2017 SID Display Week

May.30- Jun.3,2017 Taipei Taipei Computex Exhibition

Aug.29, 2017 Chang’an Day ,First Stop of Tianma “Display the Future for You” Car-maker Tour

Sep.6-8,2017 Tokyo, Japan JASIS 2017

Sep.14-16,2017 New Delhi, India Electronica India 2017

Sep.26-27,2017 Tianjin Tianjin,China(International)OLED Industrial Meeting 2017

Oct.16-17,2017 Beijing DIC 2017

Nov.1-3,2017 Wuhan The 14th Optics Valley of China International Optoelectronic Exposition and Forum(OVC EXPO)

Dec. 6, 2017 Shanghai 2017 Industrial Roadshow–Intelligent Display, New Age

—

To ensure our products and services satisfy our clients’ requirements, we select target customers for satisfaction i n v e st i gat i o n o n ce a y ea r i n l i n e w i t h t h e C u sto m e r Satisfaction Management Procedure. Upon collection of customer satisfaction data by the Customer Ser vice Department of the company, the company will summarize the analysis and issue a report, and submit to the management fo r a p p ro va l to co n f i r m a s p e cts to b e i m p ro v e d a n d implement the improvement.

In 2017, the company’s mobile intelligent terminal customer ser vice team conducted the satisfaction investigation among 9 representative customers in the mobile intelligent terminal industry both at home and abroad. Customers scored for the six aspects of product price and delivery time, quality service, new product development support, environmental protection, after-sales service and commercial communication, with weight of each aspect decided by the customer according to his own rating. Consequently, we gained 89 scores in 2017, generally higher than 2016. Such aspects as price and delivery time, quality and commercial communication got higher scores, and no decline was seen in any aspect. The company’s professional display customer ser vice team selected 11 vehicle -mounted customers and 16 industrial products customers for the satisfaction i n ve st i gat i o n . A s s h ow n i n t h e i n ve s g i tat i o n re s u l ts , customers spoke highly of our delivery and logistics, quality and service, and commercial communications, as well as CQ professionalism and service attitude of salespersons.

Our products were widely used in such fields as smartphones, tablets, intelligent wearables, vehicle-mounted displays, medical displays, industrial control displays, aerial displays and intelligent households to offer our customers the optimum of experience.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Partner / M

arket Promotion in 2017

70/

71

Market Promotion in 2017 Customer Satisfaction Investigation in 2017

In 2014, Shanghai Tianma signed the agreement for paired support with the Party branch committee of Mixin Village, Xianghua Town, Chongming County, Shanghai, and formulated the key aspects for support based on in-depth investigation and joint association. For the past five years, Shanghai Tianma bore in mind the social accountability and carefully implemented as stipulated in the agreement. Investing some RMB500,000 in a row, Shanghai Tianma has constructed roads and infrastructure, initiated leftover children caring program, expanded and restructured the activity room for the elderly, built the Tianma Children’s Park and promoted the city-building program for the village, thus refining the villagers’ production and living conditions and enhancing the working efficiency and service level of the grass-root organizations.

Upon participation in the poverty alleviation investigation for 5 poverty-stricken counties such as Hanzhong of Shaanxi and Anshun of Guizhou, we took into account the labor supply and employment status quo in such counties, as well as our own advantages, to base our poverty alleviation work on the two aspects of “poverty alleviation by offering jobs to laborers” and “improvement of occupational skills”. Main tasks covered in 2017:

Formulated the three-year poverty alleviation plan;

Erected the platform to advance the four subject counties;

Conducted general survey of labor surplus conditions;

Joined hands with vocational colleges and high schools, with skill enhancement cooperations already confirmed with Anshun City Service Occupational School and Puding Technician School;Prepared the 2018 Spring Festival recruitment meeting for Puding County and Guanling County;

Arranged for employment for 629 laborers in the four subject counties such as Anshun of Guizhou.

Active Feedback and Selfless Contribution

FOR THE COMMUNITY

Shanghai Tianma Donatedto Mixin Village

50 million

—

BEAR THE SO

CIAL RESPON

SIBILITY — For The Com

munity / Paired Support

72/

73

Paired Support

Labor-based Poverty Alleviation

Though the convenient emerging traffic means of sharing bikes make great contribution to the green travel, improper parking would cause adverse impact to public transportation. In 2017, the company’s Party member volunteers arranged sharing bikes in metro stations, where sharing bikes are typically placed at random. They raised the laid down bikes, arranged them in order and sent those in the way back to the specified parking areas.

Arrange Sharing Bikes

—

In 2017, Tianma reached consensus with Zhoukou Vocational College of Science and Technology on the school-enterprise cooperation mode to combine production and education for joint education, thus realizing the linkage between the professional chain and the industrial chain, the textbook content and occupational standards, and the teaching process and production process. Thanks to our extensive reach into the hi-tech field, we offered good opportunities for study to classmates of the Tianma Class and developed application-oriented talents for the enterprise and the society.

In this school-enterprise cooperation, Tianma i n t r o d u c e d t h e p r a c t i c a l t r a i n i n g r o o m construction project for the first time. By recycling of the equipment, we made the industry-eduction combination mode more persuasive.

BEAR THE SO

CIAL RESPON

SIBILITY — For The Com

munity / Serve the Com

munity

74/

75

School-Enterprise Cooperation

Serve the Community

Charity Relay StationIn 2017, Shanghai AVIC Optoelectronics built “Charity Relay Stations” at all guard rooms of the company to offer shelter for sanitation workers of Minhang District.

Charity Auction in Xinzhuang Industrial ZoneIn Dec. 2017, Shanghai AVIC Optoelectronics atte n d e d t h e c h a r i t y a u c t i o n o r ga n i z e d b y Xinzhuang Industrial Zone to register for the public welfare programs in the coming year and make due contribution to the society.

“Salute to Youth, Head to Dreams” Themed Hiking ActivityTo carry forth the historic mission of the Youth Day on May 4th and call on all young people to display their youthful charms by exercises, employees from Wuhan Tianma formed a delegation of 10 members to take part in the “Salute to Youth, Head to Dreams” themed hiking activity organized by the Intelligent Manufacturing Industrial Park of Wuhan Donghu New Technology Development Zone on May 4th, 2017.

—

Full Love Leifeng Plaze ActivityShanghai AVIC Optoelectronics organized Party members to take active part in the “Follow Leifeng” voluntary activity in Xinzhuang Industrial Zone at regular time each year, cutting hairs, polishing shoes and repairing domestic apparatuses for the community.

To respond to the recent initiative to create a national civilized downtown, Shanghai AVIC Optoelectronics organized Party members and active participants to volunteer traffic coordication at major intersections of the Xinzhuang Industrial Zone.

In 2017, the Party branch committees of Chengdu Tianma and No.6 Neighborhood of Xiyuan Street jointly held the “Appreciate the Maternal Love in May” themed activity.

Appreciate the Maternal Love in May

Voluntary Traffic Coordination Activity

BEAR THE SO

CIAL RESPON

SIBILITY — For The Com

munity / Em

ployment G

uarantee for the Disabled

76/

77

The employment security fund for the disabled the company paid to the social security bureau in 2017.

RMB 8.16million

Employment Guarantee for the Disabled

Appendix GRI Instruction Index

Standard disclosure (Part I) General Standard Disclosure Note：" ● ": full disclosure; " △ ": Undisclosed

G4 indicators Index Disclosure degree

1. Strategy & analysis

G4-1 Statement from the most senior decision maker of the organization about the relevance of sustainability to the organization and its strategy.

P4、P5、P16、P26 ●

G4-2 Description of key impacts, risks, and opportunities. P4、P5 ●

2.Organizational Profile

G4-3 Name of the organization P8 ●

G4-4 Primary brands, products, and/or services. P8、P16 ●

G4-5 Location of organization's headquarters. P8 ●

G4-6 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability topics covered in the report.

P12、13 P68、69 ●

G4-7 Nature of ownership and legal form. P8 ●

G4-8 Markets served (including geographic breakdown, sectors served, and types of customers/beneficiaries). P16、 P68、69 ●

G4-9 Scale of the reporting organization.P8、 P8 、P37、

P53 ●

G4-10 Total number of employees by employment contract and gender P53 ●

G4-11 Report the percentage of total employees covered by collective bargaining agreements. P54 ●

G4-12 Describe the organization's supply chain. P65 ●

G4-13 Significant changes during the reporting period regarding size, structure, or ownership P9 ●

G4-14 Explanation of whether and how the precautionary approach or principle is addressed by the organization. P36、 P46 ●

G4-15 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organization subscribes or endorses. P83 ●

G4-16

Memberships in associations (such as industry associations) and/or national/international advocacy organizations in which the organization: ·Has positions in governance bodies;· Participates in projects or committees;· Provides substantive funding beyond routine membership dues; or·Views membership as strategic. Mainly memberships kept in the name of the organization.

P83 ●

3. Identified Material Aspects and Boundaries

G4-17 All entities included in the organization's consolidated financial statements and if any of these are not covered in the report. P2 、P12、13 ●

G4-18 Process for defining report content and aspect boundaries and how the organization implemented the Reporting Principles for Defining Report Content. P2 ●

G4-19 List all the material aspects identified in the process for Defining Report Content. P26 ●

G4-20 For each material aspect report the boundary within the organization P27 ●

G4-21 For each material aspect report aspect boundary outside the organization P27 ●

G4-22 Report the effect of any restatements of information provided in previous reports, and the reasons for such restatements. P23 ●

G4-23 Report significant changes from previous reporting periods in the Scope and Aspect Boundaries. P26 ●

4. Stakeholder Engagement

G4-24 Provide a list of stakeholder groups engaged by the organization. P25 ●

G4-25 Basis for identification and selection of stakeholders with whom to engage. P24 ●

G4-26 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. P26 ●

G4-27 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns, including through its reporting.

P26 ●

5. Report Profile

G4-28 Reporting period (e.g., fiscal/calendar year) for information provided. P2 ●

G4-29 Date of most recent previous report (if any). P23 ●

G4-30 Reporting cycle (such as annual, biennial, etc.) P2 ●

G4-31 Contact point for questions regarding the report or its contents. 封底 ●

G4-32 Table identifying the location of the Standard Disclosures (core or overall) in the report. P2 ●

G4-33 Policy and current practice with regard to seeking external assurance for the report P2 ●

G4 indicators Index Disclosure degree

6. Governance

G4-34 Governance structure of the organization, including committees under the highest governance body responsible for specific tasks, such as setting strategy or organizational oversight.

P10 ●

G4-35 State the process that the highest governance body authorizes the senior management and other employment to manage economic, environmental and social topics. 一 △

G4-36 Whether the organization has appointed an executive level position(s) with responsibility for economic, environmental, and social topics and whether post holders report directly to highest governance body.

一 △

G4-37 Process for consultation between stakeholders and the highest governance body on economic, environmental, and social topics. If consultation is delegated, describe to whom and any feedback processes to the highest governing body.

一 △

G4-38 Composition of the highest governance body and its committees. 一 △

G4-39 Indicate whether the Chair of the highest governance body is also an executive officer. (If yes, indicate his/her duties and the reason of the arrangement.) 一 △

G4-40 Report nomination and selection process for highest governance body and its committees and criteria used for nominating and selecting highest governance body members.

一 △

G4-41 Processes in place for the highest governance body to ensure conflicts of interest are avoided and managed. 一 △

G4-42 Roles for development, approval, and updating of organization's purpose, value or mission statements, strategies, policies, and goals related to economic, environmental and social impacts.

一 △

G4-43 Measures taken to develop and enhance highest governance body's collective knowledge of economic, environmental and social topics. 一 △

G4-44

Processes for evaluating highest governance body's own performance. Whether the evaluation is conducted independently, and what's the frequency thereof. Whether the evaluation is self-evaluation; The measures for evaluating the performance of the highest governance body in economic, environmental and social issue management shall at least contain the changes in membership and organizational management.

一 △

G4-45

Highest governance body's role in the identification and management of economic, environmental and social impacts, risks, and opportunities, including due diligence and stakeholder consultation;Whether the consultation of the stakeholders are adopted to support the identification and management of the highest governance body of economic, environmental and social impacts, risks and opportunities.

一 △

G4-46 Highest governance body's role in reviewing effectiveness of organization's risk management processes for economic, environmental and social topics. 一 △

G4-47 Frequency of highest governance body's review of economic, environmental and social impacts, risks, and opportunities. 一 △

G4-48 Highest committee or position that formally reviews and approves organization's sustainability report and ensures all material aspects are covered. 一 △

G4-49 Process for communicating critical concerns to highest governance body. 一 △

G4-50 The property and total number of the issues concerned the most by the highest governance body, and the solutions it takes. 一 △

G4-51 The remuneration policies of the organization and the senior management; the linkage between compensation for members of highest governance body, senior managers, and executives, and organization's performance.

一 △

G4-52 Process for determining remuneration 一 △

G4-53 Stakeholders' views regarding remuneration including the results of votes on remuneration policies and proposals, if applicable. 一 △

G4-54Ratio of the annual total compensation for the organization's highest-paid individual to the median annual total compensation for all employees (not including the highest-paid individual).

一 △

G4-55Ratio of percentage increase in annual total compensation for organization's highest-paid individual to the median percentage increase in annual total compensation for all employees (not including the highest-paid individual).

一 △

7. Business Ethics and Integrity

G4-56 The organization's values, principles, standards and norms of behavior such as codes of conduct and codes of ethics. P10、P34 ●

G4-57 An internal and external mechanism to seek suggestions on ethics and lawful behaviors and affairs related to the organization's integrity such as help hotlines or suggestions hotlines.

P34 ●

G4-58 An internal and external mechanism to report unethical or unlawful behaviors and affairs related to the organization's integrity such as report through director managers or whistle blowing mechanism or hotlines.

一 △

Standard Disclosure (Part II): Specific Standard Disclosure

Category Management method and index Page

Economic

G4-DMA State why this aspect is material, the impact of making this aspect material, how the organization manages the material aspect and its impact, and the evaluation on management method

P4、P5、 P24、 P37

G4-EC1 Direct economic value generated and distributed by the organization P37

G4-EC2 Risks and opportunities posed by climate change 一

G4-EC3 Coverage of the organization's defined benefit plan obligations P57

G4-EC4 Financial assistance received from government 一

G4-EC5 Ratios of standard entry level wage by gender compared to local minimum wage at significant locations of operation P57

G4-EC6 Proportion of senior management hired from the local community at significant locations of operation 一

G4-EC7 Development and impact of infrastructure investments and services supported 一

G4-EC8 Significant indirect economic impacts, including the extent of impacts P4、P5

G4-EC9 Proportion of spending on local suppliers at significant locations of operation P65

Environmental

G4-DMA State why this aspect is material, the impact of making this aspect material, how the organization manages the material aspect and its impact, and the evaluation on management method

P24、 P41

G4-EN1 Materials used by weight or volume 一

G4-EN2 Percentage of materials used that are recycled input materials P50

G4-EN3 Energy consumption within the organization P44

G4-EN4 Energy consumption outside of the organization 一

G4-EN5 Energy intensity 一

G4-EN6 Reduction of energy consumption P44

G4-EN7 Reductions in energy requirements of products and services 一

G4-EN8 Total water withdrawal by source P44

G4-EN9 Water sources significantly affected by withdrawal of water 一

G4-EN10 Percentage and total volume of water recycled and reused 一

G4-EN11 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas 一

G4-EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas 一

G4-EN13 Habitats protected or restored 一

G4-EN14 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk 一

G4-EN15 Direct greenhouse gas (GHG) emissions (Scope 1) P44

G4-EN16 Energy indirect greenhouse gas (GHG) emissions (Scope 2) 一

G4-EN17 Other indirect greenhouse gas (GHG) emissions (Scope 3) 一

G4-EN18 Greenhouse gas (GHG) emissions intensity P44

G4-EN19 Reduction of greenhouse gas (GHG) emissions P44

G4-EN20 Emissions of ozone-depleting substances (ODS) 一

G4-EN21 NOX, SOX, and other significant air emissions 一

G4-EN22 Total water discharge by quality and destination P44

G4-EN23 Total weight of waste by type and disposal method 一

G4-EN24 Total number and volume of significant spills P43

G4-EN25 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally 一

G4-EN26 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the organization's discharges of water and runoff 一

G4-EN27 Extent of impact mitigation of environmental impacts of products and services 一

G4-EN28 Percentage of products sold and their packaging materials that are reclaimed by category P50

G4-EN29 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations P43

G4-EN30 Significant environmental impacts of transporting products and other goods and materials for the organization's operations, and transporting members of the workforce 一

G4-EN31 Total environmental protection expenditures and investments by type P41

G4-EN32 Percentage of new suppliers that were screened using environmental criteria P65

G4-EN33 Significant actual and potential negative environmental impacts in the supply chain and actions taken P65

G4-EN34 Number of grievances about environmental impacts filed, addressed, and resolved through formal grievance mechanisms 一

Category Management method and index Page

Social Performance

-Labor

Practices and Decent Work

G4-DMA State why this aspect is material, the impact of making this aspect material, how the organization manages the material aspect and its impact, and the evaluation on management method P24 、P54-58

G4-LA1 Total number and rates of new employee hires and employee turnover by age group, gender and region P53

G4-LA2 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by significant location of operation P57

G4-LA3 Return to work and retention rates after parental leave, by gender P57

G4-LA4 Minimum notice periods regarding operational changes, including whether these are specified in collective agreements 一

G4-LA5 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs P41

G4-LA6 Type of injury and rates of injury, occupational diseases, lost days, and absenteeism, and total number of work-related fatalities, by region and by gender P55

G4-LA7 Workers with high incidence or high risk of diseases related to their occupation P55

G4-LA8 Health and safety topics covered in formal agreements with trade unions 一G4-LA9 Average hours of training per year per employee by gender, and by employee category P56

G4-LA10 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings P56

G4-LA11 Percentage of employees receiving regular performance and career development reviews, by gender and by employee category P56

G4-LA12 Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity P53

G4-LA13 Ratio of basic salary and remuneration of women to men by employee category, by significant locations of operation P57

G4-LA14 Percentage of new suppliers that were screened using labor practices criteria P36

G4-LA15 Significant actual and potential negative impacts for labor practices in the supply chain and actions taken P65

G4-LA16 Number of grievances about labor practices filed, addressed, and resolved through formal grievance mechanisms 一

Social Performance

-Human Rights

G4-DMA State why this aspect is material, the impact of making this aspect material, how the organization manages the material aspect and its impact, and the evaluation on management method P24、 P54

G4-HR1 Total number and percentage of significant investment agreements and contracts that include human rights clauses or that underwent human rights screening 一

G4-HR2 Total hours of employee training on human rights policies or procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained 一

G4-HR3 Total number of incidents of discrimination and corrective actions taken P54

G4-HR4 Total number of incidents of discrimination and corrective actions taken P54

G4-HR5 Operations and suppliers identified as having significant risk for incidents of child labor, and measures taken to contribute to the effective abolition of child labor P54、 P65

G4-HR6 Operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor P54、 P65

G4-HR7 Percentage of security personnel trained in the organization's human rights policies or procedures that are relevant to operations 一

G4-HR8 Total number of incidents of violations involving rights of indigenous peoples and actions taken 一G4-HR9 Total number and percentage of operations that have been subject to human rights reviews or impact assessments P23

G4-HR10 Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments. P65

G4-HR11 The significant and practical, as well as potential negative effects of the supply chain on human rights. P65

G4-HR12 Number of grievances about human rights impacts filed, addressed, and resolved through formal grievance mechanisms 一

Social Performance

-Society

G4-DMA State why this aspect is material, the impact of making this aspect material, how the organization manages the material aspect and its impact, and the evaluation on management method P24、 P73-77

G4-SO1 Percentage of operations with implemented local community engagement, impact assessments, and development programs 一

G4-SO2 Operations with significant actual and potential negative impacts on local communities 一G4-SO3 Total number and percentage of operations assessed for risks related to corruption and the significant risks identified P34

G4-SO4 Communication and training on anti-corruption policies and procedures P34

G4-SO5 Confirmed incidents of corruption and actions taken 一G4-SO6 Total value of political contributions by country and recipient/beneficiary 一

G4-SO7 Total number of legal actions for anti-competitive behavior, anti-trust, and monopoly practices and their outcomes Conforming to the standard

G4-SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations P43

G4-SO9 Percentage of new suppliers that were screened using criteria for impacts on society P65

G4-SO10 Significant actual and potential negative impacts on society in the supply chain and actions taken P65

G4-SO11 Number of grievances about impacts on society filed, addressed, and resolved through formal grievance mechanisms 一

Social Performance

-Product

Responsibility

G4-DMA State why this aspect is material, the impact of making this aspect material, how the organization manages the material aspect and its impact, and the evaluation on management method P24、 P46-49

G4-PR1 Percentage of significant product and service categories for which health and safety impacts are assessed for improvement 一

G4-PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes

Conforming to the standard

G4-PR3 Type of product and service information required by the organization's procedures for product and service information and labeling, and percentage of significant product and service categories subject to such information requirements

一

G4-PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes

Conforming to the standard

G4-PR5 Results of surveys measuring customer satisfaction P71

G4-PR6 Sale of banned or disputed products Conforming to the standard

G4-PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes

Conforming to the standard

G4-PR8 Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data Conforming to the standard

G4-PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services

Conforming to the standard

Terminology Definition Association and Organization Membership Based upon the company’s business strategic objectives and coupled with the concern by stakeholders, the company supports the following associations and organizations to initiate treaties, principles or proposals concerning the economy, environment and society.

National Flat Panel Display Technology Standardization Committee

Federation of Shenzhen Industries

Shenzhen Flat Panel Display Industry Association

Shenzhen High-tech Industry Association

Shenzhen Optoelectronic Display Industry Patent Alliance

Virtual Reality Industrial Association

China Electronic Chemical Materials Alliance

China Optics and Optoelectronics Manufacturers Association LCB

China Association for Public Companies

Shenzhen Association for Public Companies

Shenzhen advanced manufacturing industry federation

Shanghai Optoelectronics Industrial Association

Sichuan Flat Panel Industrial Association

Sichuan Flat Panel Industrial Association

Chengdu Electronic Information Industrial Association

SID Display Industry Award Committee

SID Program Committee

SID Asia Committee

IDW (International Display Workshops)

ITC(International Thin-film transistor Conference)

The Laser Society of Japan

Vice Chairman

Vice Chairman

Vice Chairman

Vice Chairman

Common Member

Common Member

Union members

Managing Director

Vice Director

Member

Member

Vice Chairman

Vice Chairman

Vice Chairman

Vice Chairman

Member

Member

Member

Member

Vice Chairman

Program Member

Member

Program Member

Terminology Note Chapter

CITE China Electronic Information Expo Honors of 2017

PPI Pixels Per InchTechnical Innovation and AdvancementIn-Cell technology The technology to embed the touch control function into the LCD pixels

On Cell technology The technology to embed the touch screen between the color filter and polaroid of the display

POS Point of Sale

Market LayoutHMI Human Machine Interface

AR Virtual Reality

VR Augmented Reality

LCD Liquid Crystal Display

Business DevelopmentLTPS Low Temperature Poly-silicon

AMOLED Active Matrix/Organic Light Emitting Diode

CSR Corporate Social Responsibility

CSR ManagementRBA Responsible Business Alliance

ISO26000 International Standard Organization26000

SA8000 Social Accountability International standard 8000

CPO Experts of the Committee for Patent Review, generally referring to the Committee for Patent Review Intellectual Property Rights

EHS Environment、Safety、Health

Protect the Environment

COD Chemical Oxygen Demand

TFT-LCD thin film transistor-liquid crystal display

CF Color filter

KWH Kilowatt hour

DQV Design Quality Verification

Green Product and Service

HSF Hazardous substances free

GP Green product

RoHS Restriction of Hazardous Substances

REACH concerning the Registration, Evaluation，Authorization and Restriction of Chemicals

WMS Warehouse Management System Green Logistics

LAMP Leadership And Management Program Employee Training and Development

LCM Liquid crystal module Supplier Management

AM-FPD(Workshop on Active-Matrix FlatPanel Displays and Devices) Execution Committee

Electrical Association Volume II Next Generation Interactive Display Collaborative Research Committee

Associations and Organizations Joined

In 2017, our company undertook the formulation of relevant national and industrial standards:

Our company has been taken an active part in the formulation and revision of relevant international standars, national/industrial standards and alliance standards. Functioning as a deputy director unit of the National Display Technology Standardization Committee(SAC/TC547) subordinate to the Standardization Administration of China, and boasting standard registered experts from the Interntional Electrotechnical Commission IEC/TC110, our company has taken an active part in relevant international standard meetings, seminars and relevant activities for the national/industrial standards, and completed relevant standardization tasks.

To make industrial innovation, fill in the blank of national standards, complete the standard system and make active contribution to the construction of national/industrial standards, our company participated in the revision of international/national industrial standards, and alliance standards for 6 times in 2017, which mainly includes the formulation of national standards for the LCD module test methods dominated by Tianma that was submitted for approval in 2017, and the formulation of two national standards for LCD visual inspection methods dominated by Tianma that had been undergone expert review and would be officially published and take effect upon review by the national standard commission.

Reader's Feedback Dear readers：

Thanks for reading the 2017 CSR Report of Tianma. Your opinions and suggestions are valued and welcomed by us. Thanks for yourparticipation.

Tianma Microelectronics Co., Ltd.March 2018

Note: each index is scored within a scale of 1~5.

Report evaluation Balance Comparability Accuracy Timeliness Reliability Definition

Management letter

About Us

Bear The Social Responsibility

Appendix

Name: Company:

Contact No： Email:

Your Expectations on the Next Report

Tianma Microelectronics Co., Ltd.

Address: 64th Building, Majialong Industrial City, Nanshan District, ShenzhenTel: (86) 755-8622 5886Fax: (86) 755-8622 5772Email: csr_office@tianma.cnThis report has online version and printed version two kinds, online version available in the company's web site (http://www.tianma.cn/) to read.

Copyright:Tianma Microelectronics Co., Ltd.

Disclaimer

This document may contain predictive information, including but not limited to such information related to finance, operation, product series and new technique. Since the uncertainties in practice may cause the great differences between the actual results and the predictive information, this document is for reference only, and does not constitute any offers or commitments. The Company is entitled to revise the above information without notice.