Luxshare Precision Achieves a Two-Notch Upgrade to MSCI ESG Rating A, Demonstrating Continuous Strength in Sustainable Development

NEW YORK, Nov. 15, 2025 /PRNewswire/ -- Recently, MSCI (Morgan Stanley Capital International), a leading global index provider, announced its latest ESG rating results. Luxshare Precision (002475.SZ) has been upgraded to an A rating, a two-notch improvement from BB, surpassing 78% of global peers. This milestone reflects the company's strong progress in sustainability performance, with continuous enhancement in ESG risk management, value creation capability, and recognition from the global capital market.

Over the years, Luxshare Precision has actively integrated ESG principles into its corporate strategy and operations. The company's ESG scores in multiple categories—such as opportunities in clean tech, chemical safety, labor management, and controversial sourcing—have exceeded the industry average, underscoring its long-term commitment to responsible and sustainable growth.

Highlights of Key ESG Practices

• Opportunities In Clean Tech: Luxshare Precision continues to increase R&D investment and commercialization of clean-tech products, covering EV powertrains, data center power solutions, thermal management systems, wireless chargers, inverters, and energy storage systems.
• Labor Management: Luxshare Precision has optimized company-wide compensation and performance systems, established a distinctive talent development strategy, and implemented comprehensive training programs, earning recognition such as Forbes World's Best Employer.
• Controversial Sourcing: The company maintains strict oversight of all smelters and refiners (SORs) in its supply chain involved in 3TG materials. It requires 100% of SORs to be certified as conformant under the Responsible Minerals Assurance Process (RMAP) and implements comprehensive traceability of 3TG minerals to their countries of origin.
• Chemical Safety: The company proactively manages potentially harmful substances and closely monitors regulatory trends, including substances not yet formally restricted.
• Corporate Governance: The company has strengthened governance structures, implemented advanced policies such as compensation clawbacks and Say on Pay mechanisms, and plans to appoint a Chief Independent Non-Executive Director to further safeguard investor interests.
• Business Conduct: Luxshare Precision fosters a transparent corporate culture through company-wide anti-corruption and business ethics training.

Luxshare Precision's ESG advancement from exploration to enhancement and breakthrough demonstrates its long-term commitment to sustainability and corporate responsibility. Moving forward, the company will continue to advance ESG management practices, delivering long-term, stable value creation for global stakeholders while pursuing sustainable growth. Guided by its mission of "Committed to Advancing Cutting-Edge Technology, Fulfilling the Ambitions of Our Global Partners," Luxshare Precision will deepen collaboration across its value chain to promote inclusive, harmonious, and sustainable development.

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