Cubic Sensor and Instrument Co., Ltd. (“Cubic”) has recently released the 2025 Environmental, Social and Governance (ESG) Report, providing a comprehensive insights of the Company strategy and key achievements in sustainable development, company governance, technological innovation, green operations, employee well-being and social responsibility.
Strategic Leadership: The I-GROW Strategy Drives Sustainable Growth
Cubic has embedded sustainable development throughout corporate strategy and operations. The Company has developed the I-GROW Growth Pyramid, a strategic model driven by innovation, supported by green development and a responsible supply chain, and underpinned by organizational capabilities. By creating a closed loop in which customer value and sustainable development reinforce each other, the strategy advances economic, environmental and social value in tandem.
Guided by the I-GROW sustainable development strategy, Cubic achieved growth in both revenue and profit in 2025. During the reporting period, the Company received its first EcoVadis Bronze Medal, placing its sustainability performance among the top 35% of companies assessed worldwide.
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Technological Innovation: Strengthening Foundations and Empowering Industrial Upgrading
Innovation has always been at the heart of Cubic development. Following a development path centered on advanced technology, cost efficiency and scalable production, the Company has maintained R&D investment at more than 10% of revenue for three consecutive years, continuously strengthening the core technological competitiveness.
During the reporting period, Cubic continued to strengthen the innovation capabilities and expand the application of sensing technologies. Across refrigerant leak monitoring, Li-battery thermal runaway early warning, automotive emissions testing and greenhouse gas monitoring, Cubic solutions achieved broader market adoption, supporting customers and industries in improving safety, operational efficiency and environmental performance.
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People-Centered: Investing in Employees to Unlock Talent Potential
Cubic remains committed to investing in employees and regards talent as a core driver of high-quality growth. In 2025, the Company completed the first vesting under the incentive plan, strengthening team cohesion and employees sense of belonging.
The Company continued to enhance talent development system. The management trainee program was piloted, providing young professionals with tailored career development pathway. For managers, Cubic delivered the“Leadership Development Journey” training series across the R&D, operations and marketing functions, further strengthening the Company leadership pipeline.
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Cubic brings care and warmth into employees everyday experience. The “Cubic Children’s Dreamland” provided summer childcare for employees’ children, while the “Daily Apple”program integrated health and well-being into the workplace. The dragon boat races, health run event, martial arts training and other cultural activities further enriched employees lives, energized teams and reinforced organizational cohesion.
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Green Operations: Tangible Progress on Climate Action
Cubic integrates low-carbon principles throughout product innovation and operational management, and continues to improve energy efficiency, reduce carbon emissions and optimize environmental management. In 2025, the Company total greenhouse gas emissions decreased by 13.25% year on year, Solar power projects at the Wuhan and Jiashan plant generated 1.75 million kWh of electricity during the year, equivalent to avoiding 1,097 metric tons of carbon emissions. Electricity consumption per unit of product fell by 4.3% year on year.
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The Company strengthened the environmental management by regularly monitoring air emissions, wastewater, noise and other indicators, while reinforcing source controls and process oversight to ensure stable compliance. During the reporting period, Cubic recorded no emissions exceeding regulatory limits and received no environmental complaints. The compliant solid-waste disposal rate, wastewater compliance rate and air-emissions compliance rate all reached 100%.
Responsible Supply Chains: Improving Supplier Quality and Expanding Global Platforms
Cubic extends ESG principles into supply chain management. By refining supplier onboarding and assessment systems, the Company continues to promote coordinated quality and efficiency improvements across the value chain. In 2025, Cubic helped suppliers optimize quality management and improve yield and delivery reliability through technical enablement and structured coaching. Cubic also deployed technical teams to provide on-site guidance, strengthening the industrial foundation for sustainable development.
Cubic continued to strengthen coordination across domestic and international operations, further enhancing the global R&D, production, and sales network. The Company expanded R&D capabilities and increased investment in high-end sensor manufacturing. Internationally, the U.S. and South Korean platforms commenced operations, while the Hungary plant successfully passed an on-site customer audit. The developments have strengthened Cubic ability to serve customers worldwide and support closer global collaboration.
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Corporate Governance: Building a Strong Foundation for High-Quality Growth
As an institutional safeguard for sustainable development, Cubic continues to optimize its corporate governance structure. The Company completed the transition of the Board of Directors, further enhancing the diversity of the Board composition and its decision-making capabilities, while strengthening the Board’s role in strategy, major decisions, and risk prevention.
Building on the foundations, Cubic continued to strengthen the management of subsidiaries and branches, information disclosure, risk management, business ethics and information security. The Company is steadily developing a modern governance system with clear responsibilities, efficient coordination and standardized operations, providing a solid foundation for stable and sound business development.
Social Responsibility: Sharing the Benefits of Growth with Communities
While pursuing sustainable business growth, Cubic continued to give back to society through rural development and educational initiatives. In 2025, the Company combined the“Daily Apple” program with the responsible procurement of agricultural products to support farming communities and local livelihoods in several regions of China. Cubic also worked with local charitable organization to support improvements to school facilities, creating a more comfortable learning environment for teachers and students.
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Guided by ESG principles, Cubic will remain committed to supporting the real economy while maintaining a strong focus on core businesses. The Company will continue to integrate sustainable development into its strategic planning and day-to-day operations, create economic, social and environmental value in a coordinated manner, and contribute further to high-quality development.