Stakeholder Engagement

Materiality Analysis

AP Memory follows the four principles of GRI Standards, which are materiality, stakeholder inclusiveness, sustainability context, and completeness. AP Memory has conducted a four-step analysis to determine material issues.
The purpose of materiality analysis is to identify “material” ESG topics that may be impactful to an organization and its stakeholders.By understanding the background of AP Memory’s operating activities and products, along with continuous evaluation and discussion. AP Memory sets material issue as an important reference for operating strategies and goals.
AP Memory conducted business impact analysis according to the level of concern of stakeholders, formulated administrative policies and short-term goals based on the results of assessment, initiated the first step of sustainable management to meet the expectations of stakeholders.
AP Memory reviews the impact of each material issues, confirms management goal and formulates policies for each issue, which will serve as a reference for sustainable information disclosure boundaries.

Step1	Identifying stakeholders	According to the five aspects of the AA10001SES, assessed by senior executives. AP Memory’s stakeholders have been identified.
Step2	Collecting sustainability issues	To better understand stakeholder’s concerned issue. AP Memory referenced international sustainability regulations and standards, industry benchmark and sustainability trend report, formulated a questionnaire.
Step3	Analyzing the significance of the concerned issues	Questionnaires were distributed to key stakeholders through the responsible department to understand their level of concern for each sustainability issues.
Step4	Assessing the significance of impact and verify the material issues	According to the result of survey, a meeting held by senior executives assessed the intensity and probability of actual and potential impact that operating activities have on environment, society, and governance. After discussion, material issues were confirmed.

Stakeholder Engagement

Stakeholders	Significance	Frequency	Our response and practice
Customer	AP Memory is a fabless DRAM and IP product company, delivers reliable solutions of low-pin-count ultra-low-power IoT RAM and high-performance derivative products. With total solution of R&D, design, IP licensing, manufacturing and sales, AP Memory seeks to innovate and provide highly competitive products in the market.	■ Mails and calls: Daily ■ Customer Communication: Non-periodic ■ Customer auditing: Non-periodic ■ Customer satisfaction survey: Annual ■ Quality meeting: Non-periodic	■ Develop customized product ■ Product quality continues to meet customer standard
Employee	Professional and stable talent is the key element to maintain company’s operation and enhance company’s competitiveness. AP Memory provides diverse compensation and benefit packages to meet employee expectations, and enhance the overall contribution of individual employees.	■ Labor-Management meeting: Quarterly ■ All hands meeting: Quarterly ■ General announcement: Non-periodic	■ Provide competitive and diverse compensation and benefit packages ■ Create a friendly working environment, good labor relations and high employee recognition
Supplier	Supply chain management and carbon management has become an important trend in the technology industry. AP Memory is a DRAM design house in the upstream of the semiconductor industry chain, which results in the formation of long-term partnerships with professional division of labor with downstream manufacturers in the industry chain. Located in the upstream of the industrial chain, AP Memory seeks to reduce potential social and environmental impacts by close cooperation with suppliers.	■ Mails and calls: Daily ■ Supplier meeting: Non-periodic ■ Supplier auditing: Non-periodic ■ Quality meeting: Non-periodic	■ Formulate supplier management guidelines ■ Production quality tracking and improvement
Investor	Responsible investment is gradually being valued, investor’s concern of AP Memory’s sustainability has also gradually increased. Sustainable operation and information transparency are the focus of AP Memory’s development at this stage, continue communication with shareholders and key investors is the key driver of AP Memory’s growth.	■ Shareholders’ meeting: Annual ■ Financial report: Quarterly ■ Investor conference: Quarterly ■ Domestic and overseas roadshows: Non-periodic	■ Overview of financial result ■ Overview of operating result