Materiality Analysis
Materiality analysis serves as a key direction for Youngqin International in compiling its sustainability report, formulating long-term sustainability goals, and communicating with stakeholders. In 2024, the company followed the four-step materiality identification process outlined in GRI 3: Material Topics 2021. The process assessed sustainability issues based on two dimensions: the level of stakeholder concern and the degree of impact these issues have on the company’s operations and ESG development. Through this process, sustainability issues that have a significant influence on Youngqin International and its stakeholders are assessed.
In alignment with the GRI Standards and by referring to the company’s sustainability policy and performance indicators, relevant topics were selected across corporate governance, environmental protection, and social engagement. A questionnaire was conducted to understand the concerns of internal and external stakeholders, thereby completing the materiality analysis. The 10 material topics identified are as follows: "Product safety and quality management," "Customer relationship management," "Economic performance," "Product and service innovation," "Supply chain and product traceability management," "Store environment management," "Talent attraction and retention," "Human rights, diversity, and equality," "Occupational health and safety," and "Climate change and greenhouse gas emissions management." Additionally, the following 4 topics were classified as general topics: "Career development and talent cultivation," "Circular economy," "Social care and charity," and "Animal health and welfare".
Based on the results of the 2024 materiality assessments, the frequency of materiality assessment will be adjusted to once every two years to observe the changing trends of ESG issues and track the progress of long-term sustainability goals; the next materiality assessment is expected to be implemented in 2026. During this period, Youngqin International continues to collect and respond to feedback and suggestions from stakeholders through multiple communication channels and persists in implementing ESG strategies and commitments.



Material Topics
Internal impact assessment results – Materiality outcomes The probability of occurrence and the scale of both positive and negative impacts for each topic were converted to absolute values and summed to calculate the overall significance score for each topic. Topics were then ranked based on these total scores



The Value Chain Impact Boundary of Material Topics