Environmental, Social, andGovernance Report
20232023
Meihua Holdings Group Co., Ltd.
Email: mhzqb@meihuagrp.comTel: +86 0316-2359652Address: No.66 HuaxiangRoad, Economic and Technical Development Area,Langfang City, Hebei Province, China, 065001
About This ReportMessage From ChairmanAbout Meihua Group
AppendixesIndex of IndicatorsFeedback Form
0304
0506
Chapter III Buildingthe Future Together
Talent-driven DevelopmentTalent Team BuildingValuing Both Health and Care
Chapter IV AddressingClimate Changes
Chapter V Buildinga Green Factory
Chapter VI AchievingWin-win with All Walks of Life
Climate Change ControlLow-carbon Environmental Protection ActionEffect of Energy Saving and Pollution Reduction
Environmental Protection FirstManagement of Water ResourcesPromotion of Pollution ControlRecycling of Packaging Materials
Sustainable Supply ChainThe Banner of Party BuildingActive Community Participation
ContentsEnvironmental, Social and Governance (ESG) Report 20230102Meihua Holdings Group Co., Ltd.
CONTENTS
Chapter I Improvingthe ESG Governance
Chapter II PrioritizingProduct Responsibility
ESG Organizational StructureESG Statement of the BoardESG Compliance GovernanceStakeholders' ParticipationAnalysis of the Substantial IssuesBusiness Ethics and Anti-corruption
Strengthening Quality Management and ControlAttaching Importance to Work SafetyKeeping Continuous R&D and InnovationProviding Excellent Customer ServiceGuarding Information Security
0304Meihua Holdings Group Co., Ltd.About This ReportEnvironmental, Social and Governance (ESG) Report 2023
Title Description
For the convenience of presentation and reading, this report uses"Meihua Group", "the Company" and "We" to refer to "MeihuaHoldings Group Co., Ltd."; "Tongliao Base", "Xinjiang Base" and "Jilin Base" to refer to the production bases of "Tongliao MeihuaBiological Technology Co., Ltd.", "Xinjiang Meihua Amino Acid Co.,Ltd." and "Jilin Meihua Amino Acid Co., Ltd.". Unless otherwisespecified, "yuan" in this report refers to "RMB".
Report AcquisitionThe report will be published online. You can browse anddownload the Chinese and English versions of the reporton the following websites: Meihua Group's official website(www.meihuagrp.com); Shanghai Stock Exchange(www.sse.com.cn). If you have any questions orsuggestions about the report, please send an email tomhzqb@meihuagrp.com; or you can call 0316-2359652.This report is a translation of the Chinese version. In caseof any discrepancies, the Chinese one shall prevail.
About This Report
Report Background
This is the second ESG report released by Meihua Holdings Group Co., Ltd. to disclose the Company'sactions and progress in the environmental, social and corporate governance fields to key stakeholders.
Time RangeJanuary 1, 2023 to December 31, 2023. Some of the content traced back to historical data.
Reporting Scope
Unless otherwise specified, this report covers the Headquarters of Meihua Holdings Group Co., Ltd. and all its subsidiaries.This report is based on the following principles.
Materiality: The report refers to the definition of substantial issues in the GRI (Global Reporting Initiative). Through communication andresearch with internal and external stakeholders, the report will identify the ESG concerns of the stakeholders and determine thescope of the report.Quantifiability: The qualitative and quantitative information used in the report is from the public information, internal documents andrelevant statistics of Meihua Holdings Group Co., Ltd.Balance: The report objectively reveals the Company's performance, avoiding the disclosure methods that could influence reader'sdecisions or judgments.Consistency: The data disclosed in this report is consistent with previous years. Any changes to the statistics or key performance , orany other relevant factors that affect meaningful comparisons, will be clearly stated in the report. The monetary amounts involved inthis report are shown in RMB, unless otherwise specified.Review and extension: Information is retrospectively reviewed or extended on certain topics for the sake of completeness andcontinuity of presentation.
Data SourcesThe key financial data in this report is derived from the 2023annual report of Meihua Holdings Group Co., Ltd. Other data issourced from internal documents and relevant statistics of MeihuaGroup.
Reporting PeriodThis report is an annual report.
Message From Chairman
In 2023, Meihua Group released its strategic goal of sustainabledevelopment for the first time. It combined the beautiful vision of"focusing on biotechnology and creating a better future" with theconcept of sustainable development. The analysis was carried outthrough four strategic levels, including the direction level, target level,path level, and demand level, which covered the external environmentand background analysis, industry demand and peer benchmarkanalysis, the analysis of stakeholders' demands, and the analysis of theCompany's strategic development needs. It was combined with theUnited Nations' sustainable development goals (SDGs). In the end, webuilt our strategy of "Nurturing the Future GROWTH".
Throughout the year, the Company took "developing the technologyof synthetic biology, nourishing people and the environment, andachieving a harmonious future" as its strategic goal for sustainabledevelopment. "Green, Responsible, Low-carbon, and Healthy" were thefour pillars of sustainable development. Through the ESG-basedmanagement system, the concept of sustainable development wasgradually infiltrated into daily production and operation. While theCompany made continuous breakthroughs, it adhered to the principleof sustainable development and pursued win-win development ofeconomy, environment, and society.
This year, we have continued to promote the construction of "green factories" and strengthened the HSE management of the Company. TheJilin Base took the lead in completing the "water footprint" certification of the MSG and lysine products. It provided comprehensive datasupport for the Company's water resources use planning. We continued to promote the reform of green packaging materials, achieving atotal weight reduction of 288 tons of packaging materials in the year, with a target completion rate of 123%.This year, the Company has always adhered to improving the salary-increase mechanism, and continued to implement a general salaryincrease of 10% for all employees to enhance their income level. We have also constantly guaranteed employees' physical and mental healthand provided a comfortable and safe working environment. In the whole year, we have made greater investments in environmentalimprovement and hygiene construction. The factory is comfortable and safe. We attach great importance to talent construction and boldlyreform the talent selection and appointment mechanism. We have successfully recruited 103 postgraduate trainees in total, including 24Ph.D. students and 79 Master students, who are top-tier talents from “Double First-Class” universities (namely world-class universities andfirst-class disciplines) like Tsinghua University, Peking University, Zhejiang University, and Tianjin University. We have improved our multi-leveltalent training system, creating an equal, inclusive, and diversified enterprise atmosphere. We actively fulfilled our social responsibilities,fought floods and provided disaster relief, strengthened rural rejuvenation and construction, actively invested in the field of education, andprovided multi-dimensional assistance for the growth of the next generation. Our charity donation this year was RMB 4.7167 million.This year, we took a solid step forward in our "Carbon Peaking and Carbon Neutrality" strategy. With the Jilin Base as a pilot, we built abenchmark factory. Within a year, we obtained the carbon footprint certificate for the products of MSG and lysine, and carried out theverification of greenhouse gas emission and the implementation of carbon neutrality standards. During the same period, Tongliao Baseobtained the energy management system certification, which laid a solid foundation for us to achieve our low-carbon strategic goal.This year, we insisted on industrial innovation, focused on core technologies, and insisted on helping the Company achieve high-leveltechnology independence through R&D. The Company is committed to using advanced green manufacturing technology to producehigh-quality products that meet social needs and are environmentally friendly, and contribute to human health and well-being. In the wholeyear, 11 new invention patents were added, 8 were authorized, and RMB 834 million was invested in R&D. In the next three years, on thebasis of independent R&D, the Company will continue to increase investment and search for forward-looking synthetic biology solutions ona global scale.As time changes, and dreams move forward, Meihua Group will remain grouded in present and continuously implement the concept ofsustainable development, take scientific research and innovation as the fundamental driving force, actively plan for the future in the newdevelopment pattern, and persist in working with peers to explore the way of sustainable development to cope with global challenges. Weare committed to becoming a model for sustainable development in the field of synthetic biology.
WANG AIJUNChairman of Meihua Holdings Group Co., Ltd.
2024.03
Under the guidance of the concept ofsustainable development, we have madeoutstanding progress in many areas:
Message From ChairmanEnvironmental, Social and Governance (ESG) Report 2023
Company Profile
Meihua Group is a full-chain synthetic biology company specializing in the production of amino acid products. Its core capabilities cover allaspects of the production process, from strain design, build, fermentation, to separation and extraction. Based on more than 20 years ofsurpassing and innovation, the Company's research, production, and marketing integration level remains at the forefront of the industry. Atpresent, it is one of the world's largest producers of amino acids. We have an advanced integrated production line for comprehensiveutilization of resources in the whole industry. We have three production bases in Tongliao of Inner Mongolia, Wujiaqu of Xinjiang, andBaicheng of Jilin, and we have R&D centers in Langfang and Shanghai, respectively. Relying on synthetic biology technology, Meihua Groupfully utilizes its industrial experience and advantages. Through a full range of research, production, supply, and marketing services, it flexiblymeets the differentiated needs of different customers around the world and the pursuit of rapid innovation. We are committed to becominga global leader in synthetic biology. In 2023, the Company realized operating income of RMB 27.761 billion and net profit of RMB 3.181 billion.Our main products are as follows:
0708Meihua Holdings Group Co., Ltd.
Amino acid products for animal nutrition
lysine, threonine, tryptophan, feed grade valine, residue ofMSG, starch byproduct-based feed fiber, corn germs,microbial protein, etc.
Taste optimization products for foodGlutamate acid, monosodium glutamate, disodium5'-ribonucleotide, disodium inosinate, food-grade xanthangum, trehalose, natamycin, etc.
Pharmaceutical amino acids for humanGlutamine, proline, leucine, isoleucine, pharmaceutical-gradevaline, inosine, guanosine, adenosine, pullulan, and vitaminB2.
Other products
oil drilling grade xanthan gum, bioorganic fertilizers,etc.
Corporate Culture
Company MissionStrategic GoalCore ValuesVisionTo develop circular economy
and benefit Chineseagriculture.
To become a leadingcompany in synthetic biology.
Associating in honesty;improving by attitude; thrivingby integrity; lasting by utilityand harmony.
Focusing on biotechnology,building and sharing better
future.
About Meihua GroupEnvironmental, Social and Governance (ESG) Report 2023
Sustainable Development Strategy
Meihua Group has combined the beautiful original landscape of "focusing on biotechnology, building and sharing better future" with theconcept of sustainable development. Through the analysis of the external environment and background, industry demand and peerbenchmark analysis, analysis of the stakeholders' appeals, and analysis of the Company's strategic development needs, the four strategiclevels, i.e., direction, target, path, and demand were analyzed. Combined with United Nations' sustainable development goals (SDGs), wehave developed our strategy of "Nurturing the Future GROWTH".The "Nourishing the Future GROWTH" strategy aims for "developing synthetic biotechnology, nourishing people and the environment, andachieving a harmonious future". "Green, Responsible, Low-carbon, and Healthy" are the four pillars of sustainable development. It is fullyintegrated with all sustainable development issues that the Company's stakeholders and the society are concerned about.
Sustainable Development GoalsWe obtain resources we need from the nature. Through the development of synthetic biotechnology, we produce all kinds of amino acidproducts to ensure people's healthy lives and promote human's sustainable development. It allows each of us to care about and improve theenvironment, achieving harmonious co-existence.
Sustainable Development PillarsOn the path of achieving a harmonious future for both people and the environment, we need to take specific and effective actions to ensurethe realization of Meihua Group's ultimate goal.
In addition, we focus on both the internal and external perspectives of the Company. Starting from ourselves, we do our best to pursuehigher action results, extend to our external world through the value chain, and promote the sustainable development of industry and societythrough cooperation to achieve the best action results.
Sustainable Development FoundationThe technology of synthetic biology is the starting point of Meihua Group and our sustainable development action. In addition, the processof sustainable development requires the cooperation of all stakeholders. In this process, we also hope to convey the concept of sustainabledevelopment to everyone.Meihua Group focuses on being the world's leading amino acid enterprise, and actively integrates ESG into the Company's developmentstrategy. We take into account the sustainable development of economy, society and environment while pursuing economic growth.Continuously optimizing and improving our ESG management system, we actively listen to and respond to stakeholders' opinions and needs.We are dedicated to mitigating the impact on the environment and society in the process of bio-fermentation and bio-pharmaceuticalbusiness, and striving for the long-term sustainable development of the Company.
0910
The green action route is our bottom line, which guarantees that we minimize the impact on the natural environment and is the foundation
of our development.The responsible action route is our cornerstone, which guarantees that we continue to deepen the trust between us and our stakeholders
and is the premise for us to work together.
The low-carbon action route is our direction, which helps us remain resilient in the face of the most significant risk of climate change and is
the guarantee for us to clear the future obstacles.The health action route is our main battlefield, which ensures that we can maximize the impact of the Meihua Group and is the core of our
pursuit of sustainable development.
Meihua Holdings Group Co., Ltd.About Meihua GroupEnvironmental, Social and Governance (ESG) Report 2023
Sustainable Development Goals (SDGs)
Environment
External impactof the CompanyInternal actionsof the Company
People
Develop synthetic biology to nourish people and the environment, achieving a harmonious future
Contribute to building a green, responsible, low-carbon, and healthy world
Collaborate with stakeholders to maximize the value of synthetic biology
Sustainable Development Pillars
Foundation of sustainable development
Synthetic Biology
Green
EmployeesGovernmentdepartments
Shareholders
Scientificresearch institutions
Industry partnersCustomersSuppliersCommunity
ResponsibleLow-carbonHealth
Water conservationGreen packaging materials
Waste reduction
Improving resource
utilization efficiency
Safeguard human rights
Business ethics
Clean energy procurementProduct carbon footprint
Achieve nutritional
accessibilityPersist in innovation
Occupational Health
and SafetySustainable SupplyChain
Energy consumption
reductionClimate action
Product quality and
safetyEmphasize intellectualproperty rights
ESG Performance in 2023
ESG GovernanceNumber of cases involving corruption concluded
Leading Products
Product factory qualified rate100%
All hazardous chemicals Duly filed.Amount invested in R&D RMB834 millionAuthorized invention patents
New-filed patents application 11Customer satisfaction 95%
100% production bases
Growing Together with the Employees
Human rights violation
The proportion of female senior executives 36%Human rights assessment coverage of employees 79%Overall employee satisfaction score 3.73The total training time of employees 2,044,672 hoursThe average training hours of per employee
156.93 hours
The training ratio of all employees
98.91%
Addressing Climate Change
Win-win Cooperation
Formulated a development strategy for 2020-2025 to address climatechange and greenhouse gas reductionPV power generation:
35.52 million kW·h/year
Achieved the full coverage of the ISO 14001 certification system 100%
The proportion of products whose raw materials can be traced back to their origins 100%The number of suppliers passing the ESG assessments 255Hours of participating in community charity activitie (student aid and environmental protection) 35,706 hoursAccumulated donations for public welfare RMB 4,716,700
Continued to promote the construction of "green factories" and strengthened the HSE management of the Company.The Jilin Base took the lead in completing the "water footprint" certification of the MSG and lysine products.There were a total of37 atmospheric treatment projects in Xinjiang Base, with an investment of RMB 180 million.
By the end of 2024, the weight of all types of packaging materials is expected to be reduced by 180 tons.288 tons of packaging materials were reduced in 2023.
The recycling of renewable materials achieved an average of753 tons per year.
Meihua Group took the lead andparticipated in the formulation of thestandard - Water Saving Enterprises -Fermentation Industry (GB/T32165-2023) drafted by the NationalStandardization Administration andthe Biotech Fermentation IndustryAssociation.
Obtained the carbon footprintcertificate of MSG and lysine products,and carried out greenhouse gasdischarge verification and carbonneutrality implementation standards.During the same period, Tongliao Baseobtained the Energy ManagementSystem Certificate.
Meihua Group participated in thedrafting of the group standard proposedby the China Biotech FermentationIndustry Association, the Evaluation Codefor Energy Conservation and EnvironmentalProtection Benchmark Enterprises in theBio-fermentation Industry.
Number of incidents of business ethics and
anti-corruption reporting
Passed the ISO 9001 quality managementsystem certification, and ISO 22000 food safetymanagement system certification.
Green Factories
About Meihua GroupEnvironmental, Social and Governance (ESG) Report 2023
Important Honors in 2023
TongliaoXinjiang
Baicheng
Top 10 Enterprises in theFermentation Industry
High-Tech Enterprise
Top 50 Enterprises in theLight Industry - Food
National Key Leading Enterprise of
Agricultural Integration
Top 100 Enterprises inthe Light Industry -Science and Technology
National Intellectual PropertyAdvantage Enterprise
Award of Outstanding Contribution
to the Development of EconomyThe top 50 privately-ownedmanufacturing companies inInner Mongolia
Enterprise with Grade A Tax Creditfor Three Consecutive Years
May First Labor Award ofJilin Province
Advanced Unit for Work Safety
National Leading Enterprise inEnergy Conservation andEnvironmental Protection in theBiological Fermentation Industry
Top 200 Enterprises inLight Industry
China Light IndustryFederation Science andTechnology Progress Award
Provincial Enterprise
Technology Center
About Meihua GroupEnvironmental, Social and Governance (ESG) Report 2023
Meihua Group's ESG Management StructureESG Statement of the BoardESG Compliance GovernanceStakeholders' ParticipationAnalysis of the Substantial IssuesBusiness Ethics and Anti-corruption
Improving the ESG Governance
Meihua Group continues to improve its corporate governance system inaccordance with the Company Law of the People's Republic of China, the SecuritiesLaw of the People's Republic of China, the Code of Corporate Governance for ListedCompanies, the Rules Governing the Listing of Stocks on the Shanghai Stock Exchange,the Articles of Association, and the relevant documents of the China SecuritiesRegulatory Commission and the Shanghai Stock Exchange. We effectivelyprevent and control risks in response to changes in the externalenvironment, ensure stable operations, accelerate innovation anddevelopment, and promote sustainable high-quality development. TheCompany has always adhered to standard operations, strictly fulfills itsinformation disclosure obligations, actively carris out investor relationsmanagement, earnestly fulfills its social responsibilities, and strivs to improvethe level of corporate governance.
Meihua Group's UN sustainable development goals
Improving the ESG GovernanceEnvironmental, Social and Governance (ESG) Report 2023
The Company and the Board of Directors comply with the Code of Corporate Governance for Listed Companies of the China SecuritiesRegulatory Commission and the various requirements of the Shanghai Stock Exchange's mandates, continue to promote theimprovement of the Company's environmental, social and governance management system, strengthen the supervision andparticipation of the Board of Directors in the Company's ESG affairs, and actively integrate ESG into the Company's developmentstrategies, major decisions and production operations.
1718Meihua Holdings Group Co., Ltd.
Meihua Group's ESG Management Structure
ESG Statement of the Board
ESG Compliance Governance
Commitment by Meihua Group's board of directors
Meihua Group adheres to compliance and efficient corporate governance, continued to improve the Company's value andresponsibility, and protected the value and rights of shareholders. Meihua Group strictly abided by the Company Law of the People'sRepublic of China, the Securities Law of the People's Republic of China, the Code of Corporate Governance for Listed Companies, and other relevant lawsand regulations. We have formulated the General Meeting of Shareholders Rules of Procedure, the Board of Directors Rules of Procedure, the Boardof Supervisors Rules of Procedure, and the Independent Director Working System. These internal systems define the roles, responsibilities andworking procedures of the shareholders meeting, the Board of Directors, the Board of Supervisors, and the management. Theimproved the operational efficiency of the Board of Directors, thus ensuring that investors have equal access to company information.
In order to further improve the Company's ESG management efficiency, and to effectively implement and promote the Company'ssustainable development strategy, we have formulated the Environmental, Social and Governance (ESG) Management Measures of Meihua HoldingsGroup Co., Ltd. to build an ESG management structure with a complete structure, clear hierarchy, clear rights and responsibilities, andefficient operation. The Company's ESG management structure is a two-level management structure composed of the StrategyCommittee of the Board of Directors and the ESG leadership group (including the ESG leadership group of the Company'sHeadquarters and production sites). In addition, the Sustainable Development Office is the full-time department for ESG management,effectively integrating ESG management into the Company's business management and improving the level of ESG management fromthe source of management. In the same year, we issued the ESG Indicator Management System of Meihua Holdings Group Co., Ltd., whichspecifically sorted out the Company's key ESG management content and laid the foundation for the continuous promotion of theCompany's ESG management in the future.The establishment of the Company's ESG management framework has laid the foundation for our management to continuouslyimprove our ESG performance. In addition, based on the Company's sustainable development strategy, we have further refined theCompany's ESG action objectives and content, and formulated the Environmental, Social and Governance (ESG) Management Improvement Planof Meihua Holdings Group Co., Ltd (2022-2025), hoping to fully regulate the guiding ideology, basic principles and promotion ideas of theCompany's ESG development, and realize the systematic and streamlined management of ESG-related matters.
During the reporting period
This report is based on the principles of being objective, standardized, transparent, and comprehensive, this report provides allstakeholders with information on Meihua Group's ESG practices in the areas of operation and development, environment, labor andcommunity, and value chain. Meihua Group regards the concept of ESG sustainable development as the guarantee of long-term stabledevelopment. We will integrate the ESG concept into the daily business process and strategic decision-making to continuously improvethe Company's ability to resist risks.The Board of Directors of Meihua Group attaches great importance to ESG, including ESG in the scope of responsibilities of theStrategy Committee, and reporting to the Board of Directors regularly to ensure that the Board of Directors reviews important mattersof ESG, and regularly monitors and ensures the effective implementation of strategies, objectives and policies. Under the StrategyCommittee, there is a Sustainable Development Office. The Sustainable Development Office will take the lead in promoting theimplementation and realisation of ESG concepts through a working method that is coordinated by various departments, fully integrateESG into regular management.This report thoroughly and truthfully disclosed the progress and effectiveness of Meihua Group's 2023 ESG-related work. It wasreviewed and approved by the Board of Directors on March 18, 2024.
Board of directors' statement
the Company held 3 meetings of the shareholders, 7 meetings of the Board ofDirectors and 5 meetings of the Board of Supervisors.
Board of Directors
AuthorizingReporting
Coordinating
CommunicationAuthorizing
Xinjiang
BaseTongliaoBase
JilinBase
Board of Directors
Headquarters' ESGLeadership Group
Sustainable Development
OfficeBase Company's ESGLeadership Group
Audit Committee
Nomination CommitteeRemuneration Appraisal Committee
Strategy Committee
Governance level
Executive management level
Board of Supervisors
Improving the ESG GovernanceEnvironmental, Social and Governance (ESG) Report 2023
HSEManagementDepartmentProcurementDepartment
SecuritiesDepartment
GeneralManager's
Office
QualityDepartment
Sales CompanyProductionTechnologyResearchInstitute
HumanResourcesDepartment
EngineeringDepartment
AdministrationDepartment
AuditDepartmentOperationsDepartment
LogisticsDepartment
ITManagementDepartmentBusiness UnitManagement
Office
FinanceDepartmentR&D Company
The actual participants in the business chain of the Company are identified as the stakeholders of the Company. The effectiveparticipation of the stakeholders could ensure that the Company's ESG work could meet the actual development needs. All along,Meihua Group had been paying close attention to the needs and suggestions of the stakeholders, constantly improving themechanism of diversified dialogue and accepting their supervision, so as to achieve the Company's sustainable, high-standard, andhigh-quality development. The Company communicated with various stakeholders through various online and offline channels, listenedto their requirements and expectations, and helped the Company correctly assess the impact of its own decisions and timely adjust itsstrategic direction in a timely manner.
In 2023, Meihua Group once again launched a systematic communication with its stakeholders to better understand the direction,expectations, and demands of its stakeholders for the Company's sustainable development. We identified a number of major issuesthrough peer-to-peer comparisons and media monitoring, and collected internal and external information through questionnaires andstakeholder survey. Based on this, we conducted a comprehensive evaluation and ranking of the topics based on the survey resultsand the importance of each issue to business development, and determined the main direction of future internal and externalESG-related management.In this survey, Meihua Group collected a total of 2,954 questionnaires and completed the identification and evaluation of this year'smajor issues according to the attention, expectations and needs of various stakeholders for the Company's ESG work, including 29highly important issues, 25 medium-important issues and 5 low-important issues. Based on the results of the questionnaires, we willfurther adjust the direction of our ESG work in a timely manner, and continuously improve our own ESG performance to meet theexpectations of our stakeholders and respond to the risks faced by the Company.
1920Meihua Holdings Group Co., Ltd.
Stakeholders' Participation
Analysis of the Substantial Issues
Shareholders and investors
Stakeholders
Expectations and
Requirements
Communication and Response
Methods
Employees
Customers
High-quality productsSatisfying customerexperienceProtect legitimate rights andinterestsRequirement/satisfactionsurveyCustomer complainthandling
Customer surveyCustomer serviceCustomer satisfactionmanagementOfficial websiteSocial mediaAnnual review and assessment
Wages and benefitsHealth and safetySmooth communicationFair promotion anddevelopment opportunitiesPay wages on timePay social securitycontribution
QuestionnaireWorkers' CongressStaff's sports and cultureactivitiesOrganize employee trainingEstablish an OHS managementsystemImprove career developmentchannels
Return and growthControl risksCorporate governanceRegularly disclose businessinformationReport and announcementReturn to shareholderspositively
Shareholders' General MeetingBriefingMedia communicationInternal communicationsMailOfficial websitePeriodic report
Stakeholders
Expectations andRequirements
Communication and Response
Methods
Vendors, contractors and partners
Media
Community and the public
Support social developmentCare about vulnerable groupsHealth cultureEnergy conservation andemission reduction
Green buildings, green materialsExchanges and visitsInformation disclosurePublic welfare and charityGreen production
Honor promisesIndustry cooperationOpen, fair, and impartialprocurement
Exchanges and visitsInformation disclosureFulfill contract according to lawPublic biddingCarry out project cooperationDrive the healthy developmentof the industry
Economic performancePollutant dischargeMedia project survey
Information disclosureNews platformCompliance platformWebinar
Improving the ESG GovernanceEnvironmental, Social and Governance (ESG) Report 2023
In order to regulate the professional behavior of senior and middle-level managers and ordinary employees, the Company strictly abides byrelevant laws, industry norms and standards, professional ethics and company rules and regulations. We have established a goodatmosphere of honesty, diligence and dedication to prevent actions that harm the interests of the Company and shareholders, safeguard thelegal rights and interests of the Company, and reduce the Company's risks.In 2023, in accordance with the requirements of the ISO 37001:2016 standard, the Company established the Anti-Bribery Management Systemand the Management Procedure for anti-bribery management activities involved in the management of the Company, which clarified themanagement policy, management objectives, Company structure, the rights and responsibilities of relevant personnel and the relationshipbetween them, as well as the requirements for the elements of the management system.
There were no bribery incidents in 2023. Currently, the system is in operation, and preparations for the applicationfor the Anti-Bribery Management System certification have begun.Business Ethics and Anti-corruption
2122Meihua Holdings Group Co., Ltd.
Meihua Group's Substantive Issues Matrix
Employee Safety in Production
Talent Attraction and IncentivesOccupational Health and SafetyProduct Quality and SafetyCustomer Communication and ComplaintsContractors Safe Production
Customer SatisfactionBusiness EthicsComprehensive Risk Management
Product Quality Training
Pollutant Management
Customer PrivacyWaste ManagementSustainable Raw Material ProcurementSustainable Supply Chain ManagementWater Resource Risks and OpportunitiesWater Resource Management TargetsGreen Packaging MaterialsSupplier Quality TrainingSupply Chain ESG Risk ManagementStakeholder CommunicationCarbon Emission Reduction TargetsExternal Initiatives Related to Low Carbon
Climate Change Strategy
Climate Change GovernanceProduct Carbon Footprint
ESG Risk Management
Employees' ESG Awareness PromotionBiodiversity ConservationGenetically Modified ProductsBoard DiversificationESG Engagement of the Board
Employee Volunteer Management合规披露
Environmental Management System Construction
Social Welfare Participation
Supplier Empowerment
Renewable Energy Utilization
Low-carbon Operations
Green Purchasing
Product RecallWater Conservation Initiatives
Anti-corruptionPatent ManagementAnti-Money Laundering
Fair CompetitionSunshine Procurement
Information SecurityHuman Rights ProtectionProduct TestingHazardous Materials/Chemicals Management
Employee SatisfactionSupplier Quality Management
Employee Promotion and DevelopmentIntellectual Property Protection
R&D and InnovationEmployee Training
Participation in Industry Quality StandardsCompliant and Stable Operations
Slightly important issues
Moderately important issuesHighly important issues
Governance IssueSocial IssueEnvironmental Issue
Importance to Stakeholders
Importance to Meihua Group
Management
guidelines
Management
objectives
Managementorganizations
Management
behaviors
Compliancemanagement
Acting according to the rules, being honest and trustworthy, resisting corruption, and pursuing excellence.
Lawsuits involving corruption that have been concluded: 0;Business ethics and anti-corruption whistleblowing incidents: 0;Timeliness of bribery reporting and handling: 100%;
Stakeholders' satisfaction rate: ≥95%;Completion rate of employee training: 100%.
The Audit Committee: Conduct regular reviews of the anti-bribery management system.General Manager: Make decisions on the continuous improvement and change requirements of the anti-briberymanagement system.Audit Department: Formulate an annual inspection plan and report to the General Manager on the effectivenessand implementation of the anti-bribery management system.Business Department: Implement relevant system requirements and strictly implement management objectives.The Company's finance department have established a system for the separation of duties, payment approval,approval authorization, bookkeeping, and review of major financial transactions, and carried out independentfinancial reviews on a regular basis.Non-financial controls were implemented. Each business department have established a business activityapproval and supervision review system to monitor operations, R&D, procurement, sales, human resources, legaland supervision, and other areas with high bribery risks.The Company internally assessed and identified high-risk positions and signed integrity agreement.Implement due diligence on suppliers and conduct a total of three regular due diligence of key suppliers in 2023to identify and assess risks and compliance.The Company signed anti-bribery agreements with clients, suppliers, partners and other stakeholders, strictly inaccordance with the reception standards and employee business reimbursement standards, and stipulated therequirements for gifts, hospitality donations, giving, and benefits.The Company incorporated relevant systems into the entire business process chain and carried out systematictraining meetings. In 2023, there will be a total of three training sessions, with a total training duration of 600hours. This achieved full coverage of the business operation chain of the Group Company.The Company continued to improve the Reporting and Whistle-caller Protection Management System, regulating thereporting procedures and whistle-caller protection related content, and protecting the legitimate rights andinterests of stakeholders. The Company's public reporting email address: mhshenji@meihuagrp.com.
The Company have continuously established and improved internal control systems based on the requirements of the ISO373001 compliance management system and combined with the Company's own characteristics, which had beeneffectively implemented. On the whole, the Company's internal control was complete, reasonable, and effective, with nomajor defects. We have played a management control role in the various processes and key links of the Company'soperation and management, ensuring the long-term stable development of the Company.In 2023, based on the Company's business objectives, combined with the annual key work plan of the audit, we mainlyfocuse on risk-oriented operation, process-link work, internal control as the means, and system as the guarantee. TheCompany used internal control methods to conduct closed-loop inspections on business processes in important businessareas such as capital, reserve, purchasing, sales, assets, inventory, cost, engineering, and manpower. We mainly diagnoseddeficiencies and gaps in daily management from the aspects of business process compliance, waste, and loss, andassisted in business management and control, reducing, transferring, and avoiding risks, effectively reducing and avoidingbusiness risks.
Improving the ESG GovernanceEnvironmental, Social and Governance (ESG) Report 2023
Prioritizing ProductResponsibility
Strengthening Quality Management and ControlAttaching Importance to Work SafetyKeeping Continuous R&D and InnovationProviding Excellent Customer ServiceGuarding Information Security
As the world's leading amino acid nutrition and health solutions supplier,our vision is "focusing on biotechnology and building and sharing betterfuture". We contribute to the global food and health industry by providinghealth products and solutions to more than 100 countries and regionsaround the world. Around the industrial chain of the deep processing ofagricultural products, we use bio-fermentation technology to continuouslyimprove the industrial structure and layout, improve the product lifecyclemanagement, build a solid line of defense for product quality and safety,strengthen product R&D innovation capabilities, and strive to createhigh-quality products for our customers.
Meihua Group's UN sustainable development goals
Prioritizing Product ResponsibilityEnvironmental, Social and Governance (ESG) Report 2023
Quality is always one of the red lines of the Company's operations, and it is also the foundation for customers to trust in the Company andthe lifeline for the Company's long-term development. Through processing management and control over quality deeply, we have improvedthe comprehensive ability in quality management of the full traceability chain, strengthened the construction of quality culture, and arededicated to creating safer and more reliable products.
On the basis of achieving strict self-quality control, we actively participate in the process of upgrading of the industry and its quality, as wellas the conversations between associations and peer companies. With an open mind, we aspire to exchange cutting-edge information andexpertise with peer companies in order to create a positive industrial ecosystem. Meihua Group has joined the Technical Committee 64 onFood Industry of Standardization Administration of China and the SC5 on Fermentation Industries, China Biotech Fermentation IndustryAssociation (CBFIA), and other industry associations. We have participated in setting national standards and group standards many times,contributing to the development of the amino acid industry. In 2023, we participated three times in the formulation and revision of relevantnational standards.
The Company has established a comprehensive quality management system and amulti-level quality governance structure. This structure is approved and supervised by theGeneral Manager of the Company, with coordination by the Production TechnologyResearch Institute and the Quality Management Department, and implemented by theTechnical Management Office at the production base. The Company establishes clearand definitive quality targets, reviewing and updating them annually to fulfill its qualitycommitments, This process ensures effective quality control and fosters continuousimprovement.
2526Meihua Holdings Group Co., Ltd.
Strengthening Quality Management and Control
Quality management system
Quality management and control mechanism
The Company strictly abides by the relevant laws and regulations of the People's Republic of China, such as the Product Quality Lawof the People's Republic of China, the Food Safety law of the People's Republic of China, and the Regulation on the Administration of Feeds and FeedAdditives. Based on the relevant management system standards such as the GB/T19001 Quality Management System Requirements, theISO 22000 Food Safety Management System, the BRC Global Standards for Food Safety, and the other national standards of variousproducts, the Company has formulated the Integrated Quality Management Manual as well as its procedure documents. Every year, theinternal systems such as the Quality Standard of Materials and Excipient Materials, the Quality Standard of Products, and the Inspection Guide ofProducts will be updated, with the quality and process management being standardized.The Company continues to promote the supervision of quality certification and the replacement of certificates. In 2023, allproduction bases effectively maintained the effective status of the certification of the ISO 9001 quality management system andthe ISO 22000 food safety management system.
Our product quality target:
Meihua Group has passed the following product quality certifications:
The ISO 9001 Quality Management System CertificationThe ISO 22000 Food Safety Management System certificationThe BRC International Food Safety System CertificationThe Feed Additive and Premixture System (FAMI-QS) of the EU
The MUI-HALAL Certification of IndonesiaHalal certifications of the U.S., Malaysia,and other countriesIP Non-GMO Food Certification
Case: Announcement on the Administration of Amino Acid in Food for Special Dietary UseIn 2023, Meihua group took part in the standard-setting work led by the China Biotech Fermentation Industry Association to expandsmall varieties of amino acid into food nutrient supplements. At the end of November 2023, Chinese government issued an officialannouncement, allowing glutamine, isoleucine, valine and proline produced by companies to be used as food nutrient supplements.This announcement will further regulate the usage and management of the amino acid substances in special foods and promote thehigh-quality development of the relevant food industry in China.
The quality of Meihua Group's products is controlled by a full traceability chain, covering all aspects from raw materials, manufacturingprocess, to production, storage, transportation and sales of products to ensure that the quality meets the requirements.Through the opportunity of building the "Lighthouse Factory", Meihua Group have achieved a deep integration of quality management andthe MES system, smoothing the pathways between quality control and assurance, greatly facilitating employee operations and data analysis.By shifting inspection upstream to manage production process quality parameters, we effectively prevent the production of non-conformingitems, fundamentally solving the issue of over-reliance on manual monitoring, and significantly reducing the incidence rate of defectiveproducts.For the development of quality, Company gradually improved the quality management, from implementing the CNAC management systemin the laboratory and replicating the management model, realizing the authenticity and efficiency of the test data, to completing thedownsizing of the test system, continuously developing and optimizing the rapid methods, improving the test efficiency, and achieving thepositive development of testing.The Company has developed the Quality Standard of Products and the Supplier Quality Management Manual to fully regulate the quality andinspection of the products to ensure that they met the quality standards.Meihua Group has formulated a testing plan for raw materials and products to control the incoming and outgoing logistics. In addition, it hasmade an annual external inspection plan, sending products to an international authorized third-party organization for testing, to ensure theirquality and safety from storage, through manufacturing, to delivery.In addition, the Company has developed the Unqualified Product Control System, which clearly defines the management rights, responsibilities andmanagement standards. It standardizes the process control, cause analysis, emergency treatment and other aspects of non-compliantproducts to avoid product quality risks and make sure that those unqualified ones could be defensible and controllable. In 2023, theproducts' factory qualified rate of Meihua Group was100%.
The Company is committed to the quality management and controlfor all employees, placing high emphasis on cultivating a qualityculture. It conducts diverse quality training programs to significantlyenhance employee skills and competencies. In 2023, Meihua Groupcarried out a total32,960 of quality training.
Products' FactoryAcceptance Ratemaintained at
100%
Prioritizing Product ResponsibilityEnvironmental, Social and Governance (ESG) Report 2023
Meihua Group has formulated the Product Recall Procedure and other emergencyrules and regulations, established and improved the product recall mechanism,specifying classification of recalled products, the recall process, and thecorrection measures to ensure a rapid response to unsafe products. In the eventof a product quality defects with potential safety hazard, the Company willimmediately initiate the recall process and ensure that all affected products areidentified and traced. For the recalled products, a dedicated investigation team isestablished to probe the root causes and monitor the incident outcomes,preventing the recurrence of such events.In addition, each production base conducts regular product recall drills annually.Through simulating recall events, the team analyze and investigate the products,verifying whether the flow of risk products could be traced within the specifiedtime, and further evaluate the feasibility and rationality of the recall procedures. In2023, the Company conducted a simulation exercise for the recall of MSG,trehalose, threonine, and lysine to strengthen the employees' awareness andability regarding emergency recall.
Meihua Group continues to develop front-end management of suppliers in accordancewith the Supplier Quality Management Manual. It standardizes the admission of suppliers fromsupplier screening and factory inspection, and enhances suppliers' quality controlcapabilities through evaluation, development and elimination, establishing strategiccooperative partnership with suppliers.The Company ensures the scale and quality control capabilities of the newly introducedsuppliers by formulating supplier screening standards and factory inspection standards. Italso audits the suppliers' qualifications and certification, requiring them to hold relevantcertificates such as ISO 9001, ISO 22000, and pharmaceutical GMP, thereby elevatingthe quality capability of supply chain. The cooperation process, the Company conductsregular unannounced inspections on the suppliers to find non-compliance andformulates correction plans to ensure the stability of quality.
Meihua Group adheres to the bottom line thinking and the consciousness of red line, deepens the awareness of HSE compliance,continuously, improves the intrinsic safety, embeds the cultural genes of HSE, and implements the concepts of green principles.With risk management as the core, we continue to promote systematic, perfect and distinctive full-member HSE management. Inorder to thoroughly implement the Work Safety Law of the People's Republic of China and other laws or regulations, further improvethe efficiency of HSE management, and realize the effective implementation and promotion of the Company's production safetymanagement work, Meihua Group has established the Safety Production Committee. This Committee, being the highestdecision-making body for the company's HES efforts, take full responsibility for Meihua Group's safety production. The GeneralManager is the director of the Safety Production Committee and the first person responsible for safety production. The members ofthe leadership and the heads of relevant departments formed a Committee Group, which develops a complete structure, clearhierarchy, and clear rights and responsibilities of the HSE management structure.Meihua Group abides by the Work a Safety Law of the People's Republic of China, the Law of the People's Republic of China on Prevention and Control ofOccupational Diseases, the Provisions on the Safety Training of Production and Operation Entities, and the Guideline of China Occupational Safety andHealth Management System. According to the requirements of safety production standardization, ISO 45001 and ISO 14001 systems, theCompany has formulated management systems such as Management Measures for HSE System Construction and Document Control andEmergency Plan for HSE Accidents, and establishes a unique HSE 12-element management system, which provides institutional guaranteefor systematic HSE management.
As of December 31, 2023,17% of Meihua
Group' suppliers had passedHACCP, ISO
22000, FSSC22000, ISO 9001, among theother product quality-related certifications.
In 2023, the Company conducted
active product recalls, all of which wereproperly handled in the first time, with therecall rate reached100%.
During the reporting period, there were
0 incidents of non-compliance with
health and safety regulations related toproducts and services.
Product recall
Supplier quality management
Meihua Group identifies and assesses the risks of raw and auxiliary materials, by scoring based on usage, use links,application stages, food safety impact and other factors. According to the Risk Rating Result Table, the hierarchicalmanagement was carried out. In addition, the suppliers are also categorized based on material grades and evaluatedregularly, They are scored on safety, environmental protection, quality, etc. Based on these factors, various strategiessuch as training and elimination are adopted to ensure the stability of product quality and effective risk control.
The classification of main raw and auxiliary materials in use:
Case: "Quality Month" eventIn order to respond to the call of the country, promote the quality awarenessof all employees of the Company, and achieve the Company's qualitystrategic requirements and annual targets, Meihua Group launched a "QualityMonth" event with the theme of "making the country stronger with highquality, and driving the improvements in quality and efficiency" in September2023. All production bases responded positively and carried out variousactivities about this theme to improve the quality awareness of staff.By conducting the quality online quizzing activity during “QualityMonth”,there are more than 60,000 participants with 834 submissions of fullmarks, which greatly enhanced emplyee enthusiasm and awareness ofproduct quality The enthusiasm and awareness to product quality ofemployees were significantly strengthened.The accuracy of the testing is the key to supporting the qualification of theproduct. During the Quality Month,the quality inspection system across fourbases launched a multi-dimensional testing skill competition. Through thiscompetition, the atmosphere was created that aims to eliminate theunqualified ones and retaining the qualified, build the qualified ones toexcellence, and pursue continuous improvement to forge brilliance.
2728Meihua Holdings Group Co., Ltd.
Attaching Importance to Work Safety
Prioritizing Product ResponsibilityEnvironmental, Social and Governance (ESG) Report 2023
During the reporting period：
all three production bases achieved the certification of the ISO45001 system and has obtained100% safety management
system certification. Specifically, the Xinjiang and Jilin Basespassed the second level of safety production standardization auditand received certificates, while the Tongliao base passed the thirdlevel of safety production standardization audit and also receiveda certificate.
Occupational health training
2930Meihua Holdings Group Co., Ltd.
Compliance management behaviorIncorporate the occurrence of industrial accidents into the safety performance assessment of cadres at all levels.The HSE Department supervises, guides and inspects the safety production matters of the subordinate production bases on aregular basis.Designate every Thursday as the "weekly safety working day" and arrange a series of safety activities like safety knowledgedissemination for all staff.Continue to improve all kinds of safety signs, installing safety warning boards, risk warning boards, accident warning boards,occupational health notice boards in the producing areas.
Key tasks during the period
In view of the accident cases that occurred in recent 10 years, the Company reviews and decomposes these incidents tothe relevant production lines and workshops, establishing control standards are further detailed for production lines,workshops, and positions, with comprehensive training and dissemination organized to ensure that cadres and employees atall levels are aware of the major risks associated with their roles, thus preventing violations and accidents.In 2023, the Company carried out the frequency control of special operations,summarizing and solidifying the experience ofspecial operations reduction in the three bases in 2022 to form guiding standards for management and technical measures.As a result, the special operations of the subsidiaries of the Group were reduced by 58.44% year-on-year.
Strengthened safety educationWe adhere to the ideology of "Safety First, PreventionForemost", and attach great importance to the construction ofsafety culture. We have the HSE Work Safety Education and TrainingManagement Regulations (for Trial Implementation) in place anddevelop the annual safety training and education plans. Weactively conduct safety promotion and training for bothemployees and contractors, regularly organizing safety trainingsessions for all staff.In addition, we incorporate contractors into the Company'ssafety system, managing them according to our ownemployees' standard. The safety departments of basesregularly conduct safety training and assessments for thosecontractors, who must disclose safety information beforeworking in the local workshop. These actions ensure that allcontractors strictly implement the Company's safety system aswell as the standards, achieving the goal of safe production.
Number of employeestrained:
751,162
Number of work-related injuriesamong employees:
Number of work-related injuriesamong contractors:
Frequency of work-related injuries among employees=0.42 every 1000000 hours workedRecordable frequency of work-related injuries among employees=
0.73 every 1000000 hours worked
Frequency of work-related injuries among contractors=
0.33 every 1000000 hours worked
The Company continues to improve the occupational health and safety management systems, strengthening occupationalhealth supervision, and eliminate potential occupational health risks. By organizing various activities and training sessions, westeadily improve our employees' safety skills. We comprehensively assess occupational hazard factors, identify key focusenterprises and individuals, and consistently monitor and dynamically analyze the improvement of vulnerabilities, strengtheningroot cause management. Special remediation efforts are ongoing for significant control of harmful elements like dust and noise.Furthermore, the Company arranges occupational health examinations for employees, ensures the availability and correct usageof labor protection gear, and organizes educational activities, including the occupational disease prevention law publicity weekand specialized occupational health training.The occupational health examination rate for employees was100%, and the labor protection equipment were 100% fullyequipped and correctly used. In 2023, Meihua Group invested about 10 million RMB to replace work clothes for all employees.The new work clothes are designed with high color fastness, durability and tear resistance, featuring reflective strips on boththe front and back for enhanced, safe and permanent anti-static properties.Keyperformance
Prioritizing Product ResponsibilityEnvironmental, Social and Governance (ESG) Report 2023
Keeping Continuous R&D and Innovation
Great efforts in innovation
3132Meihua Holdings Group Co., Ltd.
Strengthened safety education
Strict chemical safety
Safety Activities
PK of safety knowledge contest. During the “SafetyMonth”, employees were organized to participate in asafety knowledge quiz, using questions from the nationalsafety management personnel certification exam. All themanagers and workshop directors were required toparticipate, effectively enhancing their safety leadership.The competition served to reinforce safety knowledge andraise safety awareness to everyone.Each production base: Emergency rescue drills fordangerous chemical accidents.This drill simulated the leakage of ammonia as a scenario.Starting from actual combat, it focused on testing theteam's ability in early warning and reporting, on-sitedisposal, plan activation, emergency command, emergencyrepair, emergency evacuation, environmental detection,public security maintenance, external rescue, etc.
The Company's safety management of hazardous chemicals is of great significance to promoting the sustainable, stable andhealthy development of enterprises, protecting the personal safety and health of employees, and is also a necessarymanagement for the maintenance of the ecological environment.
As a leading company in the field of synthetic biology, Meihua Group always regards R&D as the core competitiveness of the Company'slong-term development. The Company steadily promotes the construction of high-end industrial platforms for synthetic biology andbio-fermentation, continuously improving product competitiveness and innovation, and promoting high-quality development in the industry.
Meihua Group adheres to the concept of sustainable development, focusing on core technologies, and insisting on achieving high-leveltechnology independence through R&D innovation. The Company is committed to using advanced green manufacturing technology toproduce high-quality products that are environmentally friendly to meet social needs and contribute to human health and well-being.Looking to the future, Meihua Group has formulated a long-term scientific and technological innovation strategy. Moving steadfast forward,the Company has established a comprehensive scientific and technological innovation system, improved the R&D innovation managementmechanism, and created a good working atmosphere of comprehensive innovation. Through the establishment of awards such as the R&Dinnovation award and the R&D promotion award, the Company has established a diverse innovation incentive and evaluation system to fullystimulate the innovation vitality of researchers in different positions. In 2023, the Company set up different research teams led by the doctor,and built several high-level support platforms including metabolic pathway design platform, strain construction platform, enzyme engineeringplatform, application development platform, and precision fermentation platform. The Company has completed the scientific research layoutof the entire industrial chain of synthetic biology.
Through the continuous accumulation of scientific research, the independently developed strains like glutamic acid strains, lysine strains,threonine strains have made a major breakthroughs. The process verification and trial production of glutamic acid strains, valine strainsunder anaerobic condition and glutamine strains have been realized. The Company has continuously achieved new results in the productionand application of the amino acids and polysaccharides, with an international leading level. Focusing on the key aspects of transformingscientific research results, the Company accelerates the industrial application of these findings, thereby enhancing industrial value. In 2023,the Company successfully achieved iterative updates for the production strains of glutamic acid and glutamine, generating nearly RMB 100million in annual economic benefits.
The Company's production and operations involve the use of some chemicals, we strictly follow the national laws and regulations, andconstantly improve the Regulations on the Safety Management of Hazardous Chemicals. For the chemicals, we carry out full-lifecycle safetymanagement for their procurement, storage, application, and the disposal of discarded containers, ensuring 100% coverage in rickidentification, assessment, and government reporting. During the reporting period, the Company had used 2.2% of the total number ofhazardous chemicals listed in the Hazardous Chemicals Information List (2023).In 2023, the Company carried out a general survey of hazardous chemicals, identifying and sorting out physical dangers, healthrisks, environmental risks, inhibiting poisoned, inhibiting explosion, highly toxic drugs, etc. According to the General Rules for theHazardous Chemicals Warehouse Storage (GB15603-2022), and considering our actual situation, the taboo matrix of hazardous chemicals wascompiled for commonly used hazardous chemicals and the certification was completed in accordance with the Regulations on theSafety Management of hazardous chemicals.In the future, we will continue to launch high-risk chemical substitution and chemicalelimination activities, incorporate environmental and health standards into theproduct design process, and promote the sustainable development of enterprisesand the environment.During the on-site management, we prepare and improve the safety labels ofhazardous chemicals, and add QR codes as well.
Prioritizing Product ResponsibilityEnvironmental, Social and Governance (ESG) Report 2023
The Company has extensive project cooperation with the Chinese Academy of Sciences Center of Excellence in Molecular Plant Science, theInstitute of Microbiology of the Chinese Academy of Sciences, Jiangnan University and other domestic first-class universities and researchinstitutes to make technological breakthroughs and industrialization of key scientific issues, ensuring the Company's high-quality andsustainable development in the field of synthetic biology.In 2023, Meihua Group continued to increase its investment in R&D, with a total investment of RMB834 million, accounting for 3.01%of revenue. In the next three years, based on internal independent R&D, we will look for forward-looking synthetic biology solutionsworldwide.
3334Meihua Holdings Group Co., Ltd.
The fundamental source of enterprise innovation lies in people. In 2023, the Company successfully introduced about 40 professional andtechnical talents from famous domestic and foreign universities such as the Chinese Academy of Sciences, Tsinghua University, ShanghaiJiao Tong University, Nankai University, Jiangnan University, Shandong University, and the Technical University of Denmark. Their professionalbackgrounds covered many cutting-edge fields such as gene editing, metabolic pathway design, fermentation engineering, enzymeengineering and artificial intelligence, further consolidating the Company's core scientific and technological strength. At present, theCompany has successfully established a strong and powerful R&D team, with a total of 372 professional R&D personnel, including 17 PhDs,73 masters, and 133 bachelors.In 2023, Meihua Group actively carried out external exchanges and cooperation, and successfully held the China Synthetic BiologyTechnology Innovation and Development Forum with the theme of "Synthetic Biology - Leading the Future Bioeconomy", which promotedthe cross-border integration of synthetic biology technology.
Case 1In 2023, the Company cooperated with an external company to jointly develop an anaerobic fermentation technology for valineproduction, which significantly improved the metabolism efficiency of strains and reached the industry-leading level. Compared withtraditional processes, this new technology not only simplified the process, but also had higher production efficiency with excellentproduct quality. In addition, the adverse impact on the environment was also significantly reduced.
Case 3In 2023, the Company and Nankai University jointly applied for the "XanthanGum Green Smart Manufacturing and Industrial Upgrade Key Technology R&Dand Application" project, and won the first prize of Science and TechnologyProgress Award of China Light Industry Federation. The award-winningachievement reduced the alcohol consumption by 33% and the dosage ofwashing agent by 50% in the industrial production of Xanthan Gum. The use ofsome special decolorising agent was completely eliminated, which greatlyreduced the consumption of relevant raw materials and environmentaltreatment pressure. All efforts provided strong technical and product supportfor environment protection and low carbon development.
Case 2In 2023, the Company cooperated with Jiangnan University and successfully developed a new generation of high-performancelysine-producing strain, offering strong technical support for lysine's sustainable production and laying a solid foundation for theCompany to maintain its leading position in the amino acid industry.
Prioritizing Product ResponsibilityEnvironmental, Social and Governance (ESG) Report 2023
Providing Excellent Customer Service
Guarding Information Security
Intellectual property protectionMeihua Group's Complaint Handling ProcessAs a company centered on technological innovation, Meihua Group made the layout and protection of intellectual property rights a key partof its strategy. To this end, the Company implemented a comprehensive Intellectual Property Management System, established and improved theCompany's internal patent review and application standardized process. The Company regularly holds patent knowledge training tostrengthen employees' awareness of intellectual property protection, encourages employees to submit new patents with novelty, creativity,and practicality, and formulates an effective patent development incentive system. The Company fully respects the intellectual propertyrights of others and actively conducts out intellectual property searches and infringement risk analyses during key R&D stages to ensuretimely correction and prevention of potential intellectual property infringements. In 2023, Meihua Group cooperated with professionalinstitutions both domestically and internationally to deeply engage in the global intellectual property landscape, effectively improving theCompany's global intellectual property protection and management efficiency.
Regarding customer service, the Sales Office Work Standard Manual was formulated to plan customer service processes and standards. TheCompany sorted out different types of customer demands, and ensured that the customer service process was efficient and regulated fromthe aspects of customer contract management, plan implementation, accounting management, and after-sales service. The customersatisfaction rate reached95%.
In 2023, the Company issued the Regulations on the Management of the Use of Office Computer, which clarified the service life of office computers.According to the regulations, 808 office computers were replaced throughout the year, resulting in a total of 4.06 tons of electronic waste.The electronic waste generated would be recycled and disposed of by the IT Department and deliver to external professional organization todeal with environmentally sound treatment.In order to strengthen the awareness of information security, information security was included in the new employee induction trainingcourse. We will continue to improve the construction of information security, strengthen the maintenance of information network securityexternally, and establish a continuous, dynamic, and fine-grained access control strategy based on user identity internally to ensure that theresponsibility for core data is specific to each person and eliminate internal and external information security risks.No information security and privacy leakage incidents occurred in 2023.Inheriting the core values of "Industry Thrives on Trust", we will continue to improve the customer service ecosystem to better meetthe differentiated needs of global customers and provide more high-quality, efficient and professional services.We adhere to the "Three Stabilities" service concept to establish a win-win cooperation model with our customers. We providecustomers with services with "stable quality, stable supply, and relatively stable price". In addition, the company has optimized andimproved the system of Customer Complaint Handling Process to improve service efficiency and timeliness and improve customer servicequality. We attach great importance to customer service and the quality of our business personnel. We have formulated the Anti-BriberyAgreement, conducted training for all employees, and signed the agreement. We strictly follow the Company's Sales StandardisationManual to provide open and fair services to our customers.As for customer complaints, we ensure timely responses and solutions to them. In 2023, 49 customer complaints were handled, adecrease of 55% from the previous year. Through the implementation of the Logistics Standardization Manual, the customer's demand fordelivery was satisfied. We continue to collect customer demands and sort out standards to properly resolve customer complaints andservice demands.
In 2023, the Company added11 new invention patents and 8 authorizations. The newly authorized invention patents revolved
around the Company's core products such as glutamic acid, lysine, and threonine, creating a full-life intellectual property moatfor products from design, R&D, large-scale production to marketing. As of December 31, 2023, the Company had applied for179 patents (including 178 invention patents and 1 utility model patent) and 86 patents were authorized. The Companyhas achieved full coverage of intellectual property rights in aspects such as strain design and modification, fermentationprocess control, and downstream processing.
3536Meihua Holdings Group Co., Ltd.
Receive customer complaintsGrade of complaint information
Relevant departmentslaunch investigations
File the results of complaints
Reply to the customers onthe processing results
Release complaintinvestigation reports
Prioritizing Product ResponsibilityEnvironmental, Social and Governance (ESG) Report 2023
Building the Future Together
Talent-Driven DevelopmentTalent Team BuildingValuing Both Health and Care
Meihua Group has always been "people-oriented" and continues toimplement the concept of "all-staff experience, creation and sharing",attracting talents to join with competitive salaries and incentivemechanisms. The Company relies on a comprehensive, multi-dimensionaland effective systematic methods to cultivate talents, smooth careerpromotion channels and create an equal, diverse and inclusive culturalenvironment for employees to retain talents, thus realizing the independentinnovation driving force of employees and enterprises, accelerating thepace of high-quality development of enterprise talents, and realizing thecommon growth of employees and enterprises.
Meihua Group's UN sustainable development goals
Building the Future TogetherEnvironmental, Social and Governance (ESG) Report 2023
In order to systematically prevent Meihua Group from human rights abuses such as violence, human trafficking, slavery, exploitation, andrestriction of personal freedom, and ensure that the dignity of every employee is maintained. In 2023, the Company continued to improvethe relevant systems and issued the Human Right Protection and Anti-Violence and Conflict Policies, the Regulations on the Prohibition of Child Labor, theRegulations on the Prohibition of Forced Labor, the Anti-Harassment and Anti-Maltreatment Policy, and the Anti-Discrimination Policy to promote the jointsupervision and implementation of all employees. We have also formulated a series of preventive measures, such as strict andcomprehensive audit and filing in the process of inputting employee identity information, so as to fundamentally prevent the occurrence ofillegal employment behaviors such as child labor and forced labor; we organized production bases to carry out regular self-inspection andregular monitoring of human rights situation, so as to ensure the effective avoidance of the risk of human rights violations, and conducted ahuman rights assessment for Meihua Group's own operation, achieving 79% employee coverage, which is higher than the 75.5% coverage in2022; we have zero tolerance for discrimination, bullying, intimidation and sexual harassment in the workplace, and are committed toproviding employees with a comfortable, fair and secure working environment. During the reporting period, Meihua Group did not commitany human rights abuses.
Meihua Group always believes that "talent" is the key to the rapid development of theenterprise. The integration of "recruitment, selection, training, and retaining" and thestandardized actions are constantly updating and iterating. In 2023, the Company introduced atotal of103 talents, including 24 PhDs and 79 masters; they were high-end talents from
Tsinghua University, Peking University, Zhejiang University, Tianjin University, etc. In the process,it has established college-enterprise cooperation with Tianjin University, Jiangnan University,and other colleges with high compatibility with enterprises, providing high-quality graduates forthe Company for a long time, laying a solid foundation for talent reserve and subsequentdevelopment.
Talent-driven DevelopmentAttracting top talents
Protecting employees' rights and interests
Insisting onequal employment
Obey the principle of fair employment and provide equal employment opportunitiesRespect the legal rights and interests of employees to conclude labor contracts andterminate labor relations on an equal footing according to lawPromise to strictly implement the Regulations on the Prohibition of Child Labor and not to employ orsupport the employment of underage children.The proportion of employees covered by the Company's collective bargaining agreementreached 100%.
Working conditionsand social protectionCreate a good working environment, pay attention to the physical and mental health ofemployees, and provide sufficient development opportunities for employees.Provide employees with good working conditions, including wages, working hours, rest time,holidays, etc., to implement gender equality and equal pay for equal work, to respectemployees' rights to rest and leisure, to provide employees with paid holidays, and to protectemployees' participation and appeal rights.
Anti-discriminationanti-harassmentanti-abuseNo discrimination, rejection or unfair treatment will be given to employees in terms ofrecruitment, training, promotion, salary and benefits, working conditions, organization andparticipation in trade unions, retirement and dismissal due to gender, age, religion, race,origin, social background, disability, nationality, marital status, illness, etc.All forms of harassment and violation of the human rights of others are strictly prohibited,including sexual coercion, threats, insults, and other related words, gestures, and physicalcontact.
Forced labor isprohibited.
Promote the joint supervision and implementation of all employees, and formulate a series ofpreventive measures, such as strict and comprehensive review and filing during the process ofentering employee identity information, and fundamentally eliminate the use of child labor,forced labor and other illegal employment practices;
Building the Future TogetherEnvironmental, Social and Governance (ESG) Report 2023
Meihua Group actively protects the legal rights and interests of femaleemployees, abides by relevant laws and regulations, ensures that femaleemployees have equal pay, benefits and career development opportunities, andreceive fair opportunities in promotion, evaluation of professional and technicalpositions, salary distribution, etc., while constantly improving the representation ofwomen in the management team.
As of the end of the reporting period,female accounted for 36% of theexecutive postitions in Meihua Group.
Total number and composition of employees staff (including part-time staff) by sex, age, level, ethnicity and nationality.
The proportion of employees from disadvantaged groups (such as the disabled) in the total number of employees, the calculation formula is/calculated by the formula: the number of disabled employees/total number of employees.Meihua Group is committed to solving the employment problems of the disabled and other vulnerable groups, and take the initiative toassume social responsibility. As of the end of the reporting period, Meihua Group had a total of 13,029 employees, including about 80disabled employees, accounting for 0.61% of the total number of employees.
Diversifying the staff composition
13,029
8,2554,774
Total number of employees(person)
Male employeesFemale employees
Number of employees by gender
Number of employees by age
Number of employees by regions
Number of employees by ethnicity
Below 20 years old20-29 years old30-39 years old40-49 years old50-59 years oldOver 60 years old
Mainland ChinaOverseas regions
3,7804,7723,3591,086
13,026
HanMongolianManchuHuiOther ethnic groups
9,6312,352
Protecting women's rights and interests
4142Meihua Holdings Group Co., Ltd.Building the Future TogetherEnvironmental, Social and Governance (ESG) Report 2023
Training index statistics2023
Total training duration
2,044,672 hours
Average training time peremployee per year
156.93 hours
Staff training coverage
98.91%
Training ratio by gender
Training ratio by rank
98.95%
Male employee training ratio
100%
Training ratio ofsenior management
10.02%
Proportion of employeesparticipating in GMP training
99.27%
Training ratio ofgrassroots personnel
95.74%
Training ratio ofmiddle-level personnel
98.85%
Female employee training ratio
4344Meihua Holdings Group Co., Ltd.
Talent Team Building
Graded talent training
Meihua Group provides the "Dream Sailing" orientation training program for newly recruited collegegraduates, including cultural courses, military training, physical training, and other training activities.The Dream Sailing training class sent 509 qualified college graduates tothe Company.
Meihua Group led the trainees of the managers and department heads training class to visit thesmart factory SANY to learn excellent operational management experience. It adopted the strategy of"combining training and practice" and was committed to improving the ability of the on-the-jobmanagers to undertake goals and lead the team. A total of 30 trainees participated in this course.
Meihua Group continues to arrange the training for the director's class and the supervisor's class.Through the mode of combining training and practice with cadre rotation, the management ability ofthe trainees was improved, and the problem of insufficient reserve for the product workshopdirectors, production section chiefs, and supervisors on duty was effectively solved. A total of
trainees were trained.
Student training
Manager's Classtraining
Director's Classtraining
Building the Future TogetherEnvironmental, Social and Governance (ESG) Report 2023
Valuing Both Health and Care
Employee satisfaction survey
Smart construction of human resources
In 2023, the company continued to implement the bonus pool plan anditerated the incentive plan and system of the bonus pool. The bonuspool target was written into the departmental target responsibilitypaper, and all departments were encouraged to declare targets andassume more targets.
The goal is "create more, share more", that is, commit more, createmore, share more.
The company has long insisted on improving the salary mechanism,and regards employees as the greatest wealth. In the next three years,the Company will continue to raise salaries and double the income offront-line employees as an important strategic goal.
Human capital investment return rate calculation:
By 2023, the human capital system invested in the education, training, anddevelopment of employees to improve the economic efficiency of theenterprise. The return on investment in human capital was about200%(31.9/15.92=200%), reflecting significant gains in employee education,training, and development.
Human Resource Information Technology
In 2023, Human Resources further built an information system, introduced Feishu as a collaborative office platform, integrated dailywork software, and built a convenient, fast and efficient office environment; in terms of human resources system, the Companyintroduced the human resources system management software of Inspur, a leading enterprise in information technology, and dividedit into two phases. In the first phase, the templates of organization and personnel, attendance, salary performance and cadre fileswere launched. Through the project landing, the human resources management system was leapfrogged from 0 to 1, and all basicwork was improved by more than 50%, and at the same time, the human resources management actions were standardized. TheCompany implemented the processes and standards of human resource management into the system, standardized the workstandards of human resources, standardized business requirements, and achieved high-efficiency work. It could be traced, inquired,and analyzed. Through digital process management, it actively discovered talents, accurately recorded talents, and quickly emergedtalents. It supported business analysis and management, and improved the overall employment efficiency of human resources andbusiness departments.
In 2023, we launched an employee satisfaction survey to proactively gather genuinefeedback from employees, understand their concerns, and dig out problems inemployee service work, and continuously improve the Company's management ofemployees. In 2023, the overall employee satisfaction score of Meihua Group was
3.73, with a coverage rate of 82% (full score is 5 points).
4546Meihua Holdings Group Co., Ltd.
Win-win compensation and incentives
The Company adheres to the salary concept of "Three Fair and One More" and "Three High and One Low", and is constantly committed tobeing a salary leader in the industry. In addition, the Company adheres to the business guidelines of "full-staff operation, creation andsharing", guiding and encouraging employees to create value in their respective fields of work, to achieve a win-win situation for employees.
Building the Future TogetherEnvironmental, Social and Governance (ESG) Report 2023
Bonus Pool plan
Pay attention to employee health
Work environment improvement
In August 2023, the management layer of MeihuaGroup visited excellent external enterprises to learnand imitate them. The Company set up anenvironmental civilization office, persists in investingin and continuously improving hardware facilities,creates a clean, hygienic and fully functionalworking environment, allows employees to create aclean and tidy workplace, builds a garden-stylefactory and an "environmental civilization"lighthouse factory, and promotes the Company's"internal and external image".
To minimize the risk of occupational hazards, the Company conductsassessments and evaluation of occupational disease hazard factorsevery year, and uses scientific and advanced methods to assess the riskof occupational disease hazard. The Company organizes all staff healthexaminations and special occupational health examinations, establishesoccupational health monitoring files for employees exposed tooccupational hazards, and actively promotes occupational healthpromotion in the workplace.
Care for staff life
During the reporting period, the Companyachieved100% for the on-the-job staff physical
examinations, and6,500 people completed theoccupational health examination in the process. Allof them were examined to prevent occupationaldiseases and work-related diseases.
Housing subsidy
The Company provides housing subsidies to the employees who are committed to growing with theCompany. By the end of the reporting period, more than480 employees had enjoyed the housingsubsidy, and the accumulated number was about RMB63 million.
Women's DayOn the day of the festival, the Company will give out small gifts such as roses, carnations, and cakes tofemale employees, and the administration will take the lead in organizing a flower arrangement salon forfemale employees.
Double Seventh Festival
Before the Double Seventh Festival, the Company officially launched a dating platform for single youthson the Feishu platform, planning various online activities. The employees could upload their friends andfamilies' information to the platform to help single employees find their Mr./Ms. Right.
Staff holiday benefits
On the eve of traditional festivals such as the Mid-Autumn Festival and the Spring Festival, the Companywill prepare holiday gifts for employees.Statutory benefitsAccording to the national regulations, the Company pays pension insurance, employment insurance,work injury insurance, medical and childbirth insurance, and housing funds for employees; and provideslegal holidays (including marriage leave, funeral leave, prenatal check-up leave, maternity leave, sickleave, etc.).
Rationalization proposalThe Company introduced the Feishu intelligent office system and established an open and equalcommunication platform "Company Circle" to encourage employees to speak freely. After going online, ithas received a total of220 reasonable suggestions and implemented 53 of them, finally took theminto actions.
4748Meihua Holdings Group Co., Ltd.
Child welfare/Mommy's Room
Female employees are entitled to statutory maternity leave when giving birth;If the employee has children under the age of 10 at home, both the father and mother are entitled to have aone-hour delay in starting work for childcare.The Company set up a "Mommy's Room" for female employees to breastfeed. It meets the needs of themajority of female employees and expectant mothers, and gives every working mother tolerance and dignity.
Building the Future TogetherEnvironmental, Social and Governance (ESG) Report 2023
Addressing Climate Changes
Climate Change ControlLow-carbon Environmental Protection ActionEffect of Energy Saving and Pollution Reduction
Climate change is one of the great challenges faced by the whole world.Since entering the industrial era, the global temperature has risen due togreenhouse gas emissions, which has caused many problems such asmelting glaciers and rising sea levels. The environment on which humanbeings depend is facing unprecedented threats and challenges. Adhering tothe concept of sustainable development, Meihua Group has activelyimplemented the United Nations Framework Convention on Climate Changeand The Paris Agreement, fully aligning with the national "Carbon Peaking andCarbon Neutrality" goals and the development trend of energytransformation, and actively participated in the global response to climatechange. With reference to the Task Force on Climate-Related FinancialDisclosure (TCFD), we established a governance framework to addressclimate change, effectively integrated climate change strategies into theGroup's strategy, actively carried out climate change risk management, setclimate change-related indicators and targets, promising to reducegreenhouse gas emissions and transform into a greener, low-carbon andsustainable business model.
Meihua Group' UN sustainable development goals
Addressing Climate ChangesEnvironmental, Social and Governance (ESG) Report 2023
The Company attaches great importance to climate change related risk management, and carried out climate change risk and opportunityanalysis based on macro policies, strategic planning, production and operations on a regular basis. It has formulated the Management Measuresfor Addressing Climate Change and Sustainable Development, the Energy Management System and other systems, clarified the responsibilities of all levelsin addressing climate change, and proactively integrated climate change into the Company's development strategy, major decisions andproduction and operation.The Strategic Committee members of the Board of Directors of Meihua Group are responsible for approving climate change-relatedperformance targets and incentive mechanisms, and regularly reviewing the achievement of these targets.
Climate Change ControlClimate governance layout
In the context of nation efforts promote carbon neutrality in 2020, Meihua Group actively responded to the National call and took theinitiative to do various work to address climate change risks. The Company has developed the strategy aimed at addressing climate changeand reducing greenhouse gas emissions between 2020 and 2025, and clarified the specific objectives, work tasks, assessment and incentivemethods of the whole company to ensure the effective implementation of specific work.Meihua Group actively implemented the climate adaption strategies and carried out actions to address climate change risks. The Companystrived to reduce greenhouse gas emissions and continuously improved its ability to cope with climate change risks from four aspects:
energy supply, energy users, green finance, carbon pricing and carbon sink through management optimization, equipment upgrading,technological transformation and process optimization, and clean energy substitution.
Strategic response to climate
Climate ChangeManagement structure
Governance LevelStrategy Committee
Management and Executive Level
ESG Leading Group
All relevant departments
Responsible InsitutionsResponsibilities
Supervise and approve the Company's climate changestrategy and plans, and supervise climate change riskmanagement;Responsible for approving climate change relatedperformance targets and incentive mechanisms, andregularly reviewing the completion of targets.
Develops the Company's medium to long-term energyconservation plan, energy development plan, and energyconservation and emission reduction targets;Responsible for identifying and evaluating the risks relatedto climate change, and supervising the implementation ofenergy conservation and emission reduction at base;Organize and hosts training on climate change.
Responsible for identifying and assessing risks related toclimate change;Responsible for implementing the risk managementmeasures to deal with climate change in business activitiesand implementing the energy conservation and emissionreduction plan.
Energy supply
Increase the proportion of electricity in thesecondary energy supply, reduce direct coalcombustion, accelerate the process ofde-coalification, promote the electrification of powerstations and synthetic nitrogen plants, and study theuse of green electricity and green hydrogen toreplace coal-based hydrogen production.
Energy usersImproving energy efficiency, reducing energyconsumption per unit of product by improvingtechnology, and process, refining production
management, and upgrading equipment.
Green finance
The Company predicts that green finance wouldincrease significantly and would continue to payattention to carbon reduction green credit, bondsand other financing channels in the future.
Carbon pricing and carbon sink
The Company would calculate the cost of carbontrading and carbon emission reduction, and plan
carbon trading strategy in advance.
Strategy for
addressingclimate change
Addressing Climate ChangesEnvironmental, Social and Governance (ESG) Report 2023
Under the guidance of the national carbon peak and carbon neutrality, Meihua Group insists on equal emphasis on both technology andmanagement, and continues to reduce the energy consumption of products. Based on the concept of sustainable development of greensynthetic manufacturing, we encourage all employees to make reasonable suggestions on energy conservation and carbon reduction, andreward the proposers of rationalisation proposals that have achieved significant results after implementation, in accordance with theregulations.In addition, the Strategy Committee of the Company regularly monitors the completion of climate change related targets and indicators, andcarries out regular performance evaluations to ensure that relevant departments comply with the set targets. During the reporting period,we achieved our annual carbon dioxide reduction target.Chronic physical risk is a longer-term change in climate patterns that could cause sea level rise or prolonged heat, such as persistent hightemperatures.
Low-carbon Environmental Protection ActionAchievement of low-carbon goals
In order to regulate the greenhouse gas accounting standards for thebio-fermentation industry, Meihua Group took the lead in formulatingthe group standard Greenhouse Gas Emission Accounting and ReportingRequirements - Bio-fermentation Production Enterprises proposed by the ChinaBiotech Fermentation Industry Association, which was released inDecember 2022 and implemented from April 1, 2023.Meihua Group participated in the drafting of the group standardEvaluation Standard of Energy-saving and Environmental Protection BenchmarkEnterprises in Bio-fermentation Industry proposed by the China BiotechFermentation Industry Association, which was published andimplemented on December 18,2023.Meihua Group took the lead and participated in the formulation of thestandard - Water-saving Enterprise Fermenting Industry (GB/T 32165-2023),which was drafted by the National Standardization ManagementCommittee and the China Biotech Fermentation Industry Association,and released on December 28, 2023.
In order to strengthen the professional capacity of employees in addressing climate change risk and reducing carbon emissions, theCompany provided comprehensive training on energy-saving strategies, policies and standards.
Formulation of environmental standards
Training on carbon reduction and energy saving
Meihua Group has identified and assessed the risks of climate change based on its own situation by analyzing the national policies related tocarbon peaking and carbon neutrality goals and policies on climate change, types of natural disasters in the country, and formulatedcountermeasures to adapt to or mitigate the impact of climate change on business.Climate risk management
Transformation risksPolitical risk
The proposal of the national Carbon Peaking andCarbon Neutrality goals will lead to strictergreenhouse gas management. The compliance riskof Meihua Group in the process of low-carbontransformation increased, and the cost of energystructure adjustment increased.Technical risk
Indicators and targets Increased investment costs fordecarbonising production processes and introducingenergy-saving and consumption-reducing equipment.
Actively promote renewable energy, expand the use of solarenergy and wind energy;Efforts are being made to implement technologicaltransformation and energy recovery projects with the aim ofreducing energy waste and promoting more effective andrational use of energy.Countermeasures
Advance the R&D of energy-saving technologies;Monitor the latest development and application ofenergy-saving technologies in the bio-fermentation industry,conduct feasibility analysis of technology replacement, andintroduce advanced energy-saving equipment.
Countermeasures
Physical risks
Acute riskExtreme weather such as extreme rainfall and hightemperature may cause damage to productionequipment and storage facilities, disruption oftransportation, and cause other property damage, aswell as threaten the health and safety of employees.
Chronic riskLong-term climate change risks such as waterscarcity may affect normal production andincrease operating costs.
Prepare flood control and high temperature emergency rescueplans;Pay close attention to the news released by the meteorologicalauthorities, especially weather warnings;Add extreme weather defense facilities.
Countermeasures
Gradually conduct water risk analysis and assessment, andincorporate water risk management into the Company's overallrisk management in the future.
Countermeasures
In 2023, Meihua Group carried out four trainings on the topic of climate change and energy-saving andenergy-reduction strategies. The training content included the interpretation of the national carbon neutralitydevelopment trend, the energy-saving and energy-reduction strategies of the same industry, the current energyconsumption situation of the Company, and the energy-saving and energy-reduction planning strategies. Thenumber of participants reached150, and the total training duration reached more than 600 hours.
5354Meihua Holdings Group Co., Ltd.Addressing Climate ChangesEnvironmental, Social and Governance (ESG) Report 2023
In 2023, Meihua Group certified the carbon footprint, water footprint, greenhouse gas emissions, and carbon neutrality plan for MSGand lysine products using the Jilin Base as the benchmark factory, laying a good foundation for the subsequent full coverage ofcarbon neutrality.Positive certification of environmental performance
Case: The carbon footprint certification of MSG and lysine in Jilin Base
The carbon footprint study yielded positive results forJilin Base to identify the greenhouse gas sources andcorresponding amounts of the MSG series products.This data can facilitate communication and cooperationbetween enterprises, raw material suppliers andproduct buyers. Furthermore, it can serve as a databasis for enterprises to provide product carbonfootprint certification.
Case: Water footprint certification of MSG and lysine in Jilin Base
In addition to the carbon footprint, the water footprinthas also become an important indicator for evaluatinga company's sustainable development and socialresponsibility performance. Meihua Group has taken apositive step towards protecting water resources bypromoting water footprint certification. Moving forward,the company will continue to explore and makebreakthroughs on this path, which is full of both hopeand challenges.
Case: Calculation of Greenhouse Gases in Jilin Base
Jilin Base will take measures to monitor and manage greenhouse gasemissions in order to contribute to the global effort to combat climatechange, while fulfilling its corporate social responsibility andcommitment to sustainable development. The aim is to conserveenergy resources and preserve the global ecological environmentthrough Jilin Base's management.
Case: Energy Management System Certificate of Tongliao Base
The purpose of this standard is to assist organizations inimplementing the appropriate systems and procedures tocontinuously improve their energy performance,encompassing energy efficiency, utilization, and consumption.The standard delineates the criteria for the organization'senergy management system. The implementation of anenergy management system, supported by a culture ofenergy performance improvement, is contingent upon thededication of all levels of the organization, especially topmanagers. In many cases, it involves cultural change withinthe organization.
CERTIFICATION
5556Meihua Holdings Group Co., Ltd.Addressing Climate ChangesEnvironmental, Social and Governance (ESG) Report 2023
Case 1: Energy supply technical transformation project
Case 2: Equipment improvement and process management
Low-pressure steam pipe network operation optimization project of Xinjiang heating station: The Xinjiang base compared theusage of the overall steam pipe network with the design standards, found the optimization point, and reduced the overallsteam consumption rate of the power plant by 0.2 Kg/kWh by adjusting the external steam pressure. It is estimated that theannual standard coal would be saved by 33,800 tons and the carbon discharge will be reduced by 87,800 tons.PV power generation in Tongliao and Jilin plants: The Company actively responded to the call of the national clean energydevelopment strategy and built PV power projects in Tongliao and Jilin Bases respectively in line with the concept of greenand sustainable development. The project has been completed and put into use. It is estimated that the annual greenelectricity generation will be 35.52 million KW·h, and the annual carbon discharge will be reduced by 1.1 tons.
Energy-saving technical transformation of Xinjiang starch boiler: Xinjiang starch workshop boiler added a set of evaporatingtower system, and the tail gas recovery heat can save steam volume of 9T/h per hour. It is estimated that 10,000 tons ofstandard coal will be saved and 2.6 tons of carbon will be reduced.Refining the Xanthan Gum process: The new production line of Xanthan Gum was built in Jilin Base. The new extractionprocess was used and the boiler was improved. The unit steam consumption of the product was reduced by 11%, saving54,000 tons of steam annually. It is estimated that 7,700 tons of standard coal will be saved and 20,000 tons of carbon will bereduced.
During the reporting period, in order to further reduce carbon dioxide emissions, each base of the Company carried out energy-saving andenergy-reduction work in various aspects such as production process management, heating station technical transformation, and solarphotovoltaic (PV) power generation. We will perform energy-saving and energy-reduction work in various aspects.
Effect of Energy Saving and Pollution Reduction
Cases of energy saving and pollution reduction
Some examples of energy conservation and pollution reduction are as follows
Performance in energy discharge and emissionMeihua Group Energy Use and Carbon Footprint in 2023
Coal consumptionDiesel consumptionPurchased power
consumption
Natural gas consumption
Renewable energy usekWh58,306,215.60
Comprehensive energy consumption densityGigajoules/turnover of RMB one million4,115.26Total greenhouse gas emission of Scope 1Tons of carbon dioxide equivalent (tCO
e)Tons of carbon dioxide equivalent (tCO
e)
9,383,709.02
Total greenhouse gas emission of Scope 2286,889.12
Total GHG emissionGHG emission intensity
Tons of carbon dioxide equivalent (tCO
e)9,670,598.14
Tons of carbon dioxide equivalent (tCO
e)/turnover of RMB one million
348.36
5758Meihua Holdings Group Co., Ltd.
948,914,516 kWh15,740,936 Cubic meters3,898,041 tons889 tons
Addressing Climate ChangesEnvironmental, Social and Governance (ESG) Report 2023
Building a Green Factory
Environmental Protection FirstManagement of Water ResourcesPromotion of Pollution ControlRecycling of Packaging Materials
Meihua Group always adheres to the scientific concept of "lucid waters andlush mountains are invaluable assets" and actively devotes itself toenvironmental protection and resource conservation while utilising naturalresources. Aware of the importance of treating nature with respect, wecontinually improve the environmental management system, constantlyoptimize water resources efficiency, vigorously promote waste managementand pollution prevention, enhance the recycling level of packagingmaterials, and strive to become an "environmental pioneer" to promote theharmony between people and the environment with practical actions.
Meihua Group's UN sustainable development goals
Building a Green FactoryEnvironmental, Social and Governance (ESG) Report 2023
Environmental Protection FirstDevelopment of systems
Meihua Group Strictly complies with the Environmental Protection Law of the People's Republic of China and other laws or regulations. Inline with the actual situation of the Company's environmental protection work, the Company release the Management System forStable Odor Compliance and the Management System for Stable Operation of Sewage Workshop. Each base strictly implements theCompany's requirements and has formulated internal management documents such as Environmental Protection ManagementSystem, Environmental Protection Monitoring System, Environmental Protection Education and Training System and Environmental ProtectionInspection System. We implement environmental management in accordance with the principles of "prevention first, sourcecontrol, terminal treatment, discharge to standard" and "whoever is in charge is responsible".
Management measures
As of the end of the reporting period, (Meihua Group achieved full coverageof the ISO 14001 certification system), the three production bases underMeihua Group achieved full coverage of the ISO 14001 certification system,and the certification ratio reached100%.
To ensure that environmental management can be effectively implemented, a comprehensive environmental audit systemis established, reinforcing the main responsibility for environmental protection work.The Group's HSE Management Department regularly convenes environmental reports and special meetings. It works witheach base to formulate environmental protection plansand validates the environmental protection resources for new,expanded, or renovated projects, thus comprehensively managing Meihua Group's environmental protection efforts.Meihua Group has implemented regular environmental protection training for all employees to enhance theirenvironmental awareness, strengthen their understanding of the Company's environmental protection concept, andimprove their ability to use environmental protection technology. Furthermore, the Company is mandated to regularlypublish environmental protection information and safety incident cases in its journals and on workshop bulletin boards toraise employees' awareness of environmental protection regulations.
Management behaviors
The local government's environmental management department regularly carries out supervisory monitoring of wastewater and waste gas, and internally tests it on a monthly, quarterly , and annual basis.Management is implemented by subdivision, with workshops being managed by environmental protection specialists,taking into account the sewage situation and the operating status of environmental protection facilities.The Company set up an environmental protection award and organized a monthly joint inspection every month to focuson the operation of the Company's environmental protection system.The Group Company take the lead in organizing regular environmental compliance inspections of the production base,four times per year.
Environmental management system
Key cases
Sulfur dioxide emission1,427.13 tons
3,431.86 tons0.12 tons/turnover of RMB one million
1,910.48 tons
94.25 tons
Total emission of waste gasEmission density of waste gas
OxynitrideSmoke and dust emission
The Xinjiang Base has invested RMB 180 million in total to complete 37 atmospheric treatment projects such as the treatment ofunorganized dust and odor in the organic fertilizer workshop, the treatment of dry waste gas in the starch workshop, the treatmentof tail gas from the seventh production line of MSG (the seventh extraction workshop), the treatment of unorganized waste gas instarch soaking, the treatment of dust in the starch-cleaning grain section, the treatment of fermentation waste gas, and thetreatment of unorganized dust in the coal shed, etc., which have been put into operation. After the implementation of varioustreatment measures, the Company commissioned a third-party testing company to do the test, and the test results all met thelimits in the Emission Standards for Odor Pollutants (GB14554-93). The discharge concentration of the particles, sulfur dioxide,sulfuretted hydrogen, hydrogen chloride, non-methane total hydrocarbons, odor concentration and other indicators at the 32discharge outlets of the enterprise involved in odorous waste gas meet the limit requirements of the Integrated Emission Standard of AirPollutants (GB16297 -1996), the Odor Pollutant discharge standard (GB14554 -93), the Emission Standards for Odor Pollutants (GB14554-93)and pollution emission permits.The Jilin Base invested RMB 2,783,900 to add an external PSCR detoxification reaction device to four high-temperature andhigh-pressure circulating fluidized bed furnaces in the fifth production line of the heating station. As a result, the boiler's dischargeindex was reduced to less than 50 mg/nm3 and reached the ultra-low discharge standard. Furthermore, the enterprise entrusted athird-party testing company was hired conduct tests after implementing these measures. The concentration of particulate matter,sulfur dioxide, nitrogen oxides and other indicators involved in the odor exhaust outlet of the enterprise met the limit requirementsin the Integrated Emission Standard of Air Pollutants (GB16297-1996) and the pollution emission permits.
Air Pollutants
Building a Green FactoryEnvironmental, Social and Governance (ESG) Report 2023
The Company's environmental protection specialists compile environmental contingency plans according to the Interim Measures for the Adminis-tration of Emergency Response Plans for Sudden Environmental Events and the Measures for the Administration of Registration of Emergency Response Plans forSudden Environmental Events in Enterprises and Institutions. The Company also organize relevant drills to promptly report unexpected environmentalpollution events to the superior departments. According to the requirement that the contingency plan should be revised every three years,Tongliao Base has completed the updating and compilation of the Emergency Response Plan for Sudden Environmental Events in April 2023 and hasput it on record.In 2023, the three bases carried out a total of six emergency drills
We strictly adhered to the emergency plan steps, analyzed and summarized the results of each drill, and exercised the response ability anddisposal ability of personnel at all levels through practical operations.
Environmental emergency management
In 2023, Meihua Group identified the water risk level of all the Company's operations based on the water risk analysis tool of the WorldResources Institute (WRI). It found that 100% of the water intake came from high-risk areas, and the percentage of crops purchased by theCompany from areas with high or extremely high water pressure reached 80%-100%. These risks have motivated us to continuously improvewater resource efficiency. The Company is committed to reducing water usage, regularly evaluating performance, and protecting waterresources through practical actions. Through measures such as optimization of process flow and recycling of water resources, we caneffectively control water-related risks and achieve water conservation.We have formulated the Management Measures for Water Resources of Meihua Group, set the strategy committee of the board of directors as thehighest responsible institution for the company's water resources management, established a three-level water resources managementframework for the Company, production bases and production units. The system clearly stipulates that the water resources of Meihua Groupshould be planned as a whole, to strengthen the conservation, protection and scientific utilization of water resources. Additionally, efforts willbe made to improve the reuse rate of water, expand the utilization of non-traditional water resources in industry, and create water-savingindustrial enterprise. In 2023, there were no water-related incidents in all the bases of Meihua Group.
Management of Water Resources
including two of these carried out by Tongliao Base, namely, the fire emergency drill for extracting threonine with low content and theemergency drill for liquid ammonia leakage in synthetic ammonia production line;
two emergency drills carried outby Jilin Base, namely, emergency drill for sulfuric acid leakage accident in lysine extraction workshop
and emergency drill for liquid ammonia leakage in synthetic ammonia production line;
and two emergency drills carried outby Xinjiang Base, namely, drill for liquid ammonia spherical tank leakage, and drill for leakage ofhazardous chemicals rooms.
Threonine technical transformation project: The secondary steam of the evaporating device in the threonine workshop wascondensed and reused. The optimized cooling technology no longer uses circulating water to cool down, which can save39,800 m
of circulating water/year.The high-phosphorus water of the acid was reused in the tail liquid workshop for chemical treatment, saving 300m? cubicmeters of water every day.Lysine was washed with the secondary condensed water instead of the de-salted water, saving 1200m
of secondarywashing condensed water per day.
Cases
WaterResources Data
Water resources consumption
COD
32,191,552 tons
Waste water discharge2,200,48,78 tons
Water consumption6,022,923 tons
1,965.53 tons
COD intensitymetric ton/RMB 100 million of revenue
7.08
N-NH
N-NH
intensity
215.28 tons
Meihua Holdings Group Co., Ltd.
0.78
metric ton/RMB 100 million of revenue
Building a Green FactoryEnvironmental, Social and Governance (ESG) Report 2023
Waste treatment
By continuously enhancing the reduction, comprehensive utilization and harmless management of solid waste, Meihua Group prevent solidwaste from polluting the environment and endangering human health in the process of production, storage, transportation and treatment. Inthe process of production and operation, we strictly abide by national laws and regulations, implement the Pollutant Release ManagementSystem, the Dangerous Waste Management Regulations (Trial) and other systems to ensure the stable operation of the pollution treatment facilities,achieve the discharge of all kinds of atmospheric pollution and waste water, and properly handle all kinds of waste.
Promotion of Pollution Control
Meihua Group continues to deepen solid waste reduction, comprehensive utilization and harmless management to prevent solid waste frompolluting the environment and harming human health during production, storage, transportation and treatment process. In the process ofproduction and operation, we strictly abide by national laws and regulations, implement the Pollutant Release Management System, the DangerousWaste Management Regulations (Trial) and other systems to ensure the stable operation of the pollution treatment facilities, achieve the discharge ofall kinds of atmospheric pollution and waste water, and properly handle all kinds of waste.
Non-hazardous waste
Waste battery productionWaste cartridgesProduction of waste Zincoxide catalystProduction of wastedetection liquidProduction of wastepaint bucketsDischarge intensity of harmful waste
Waste toner cartridgeProduction of wasteactivated carbonProduction of waste oilProduction of waste reagentempty bottlesProduction of dangerouswaste discharges
Total discharge of general solid wasteDischarge intensity of general solid waste
tonstons/turnover of RMB one million
Hazardous waste
With the continuous increasement in production, sales, and customer base, Meihua Group has strengthened the concept of resourcereduction. The Company has actively promoted the use of raw and auxiliary materials conducive to saving materials and reducing carbonemissions and has implemented the recycling and reuse of packaging materials. This effort aims to harmonize economic development withresource and environmental protection, establishing a circular economy based on the efficient use of resources and environmentalpreservation.In 2023, Meihua Group strictly implemented the Green Packaging Materials Procurement Strategy and System of Meihua Holding Group Co., Ltd. andcontinued to manage the green packaging materials. The packaging materials were comprehensively sorted out and compared. Alldepartments collaboratively achieved the green design of the packaging and sought for resources to evaluate and select excellent suppliersto implement the plan.
Meihua Group will continue to promote special actions of packaging reduction and resourcing. In 2024, the Company will continue topractice“green” design for packaging. Through the development and discussion of new green low-carbon packaging materials, and thetransformation of equipment, the packaging form will be changed, which means, the use of paper plastic bags will be reduced, and morewoven bags will be used to reduce environmental damage. We plan to reduce the environmental impact by100 tons. Besides, byimproving the product quality of the packaging contents, increasing the stacking density and decreasing the packaging size, we plan toreduce the weight by80 tons.
Recycling of Packaging Materials
Green Packaging Materials Action
We mainly found the problems by benchmarking the specifications and parameters of the samepackage, reduced the lining thickness of amino acid woven bags and the lining size of MSG,completed the design and test of green packaging, and tracked the customer's use feedback,achieving a total reduction of288 tons of packaging materials in that year and a targetcompletion rate of 123%.
We actively promoted the cooperation between upstream and downstream customers, and reusedthe used packaging materials after processing.
We recycled 753 tons of resources by weaving and packaging by-products from recycled materials.
Consumption of Packaging Materials in 2023
Recycling
Reuse
Reduction
Grade 1 plastic
26,532 tons
Grade 1 paper
696 tons
Level 2 wood2,610 tons
Level 2 paper1,801 tons
Meihua Holdings Group Co., Ltd.
957,412.19
34.49
7,594 pieces1,948 pieces
1,291 pieces
128.94 tons
0 tons121.68 tons
1.59 tons1.24 tons
2.42 tons258.98 tons
0.01 tons/turnover of RMB one million
Building a Green FactoryEnvironmental, Social and Governance (ESG) Report 2023
Achieving Win-win withAll Walks of Life
Sustainable Supply ChainThe Banner of Party BuildingActive Community Participation
Our sustainable development needs the concerted efforts of our partners.Meihua Group, with its mission to develop the circular economy and benefitChinese agriculture, is committed to enhancing its responsible procurementpractices. In collaboration with top-tier suppliers in the bio-fermentation andbio-pharmaceutical industries, we aim to foster the sustainabledevelopment of our supply chain. Furthermore, we will not forget topractice corporate citizenship duties, actively participate in social charity,and make progress with society to create a better future.
Meihua Group' UN sustainable development goals
Achieving Win-win with ALL Walks of LifeEnvironmental, Social and Governance (ESG) Report 2023
Meihua Group continued to refine the supplier management system around the concept of "social responsibility", fully implemented greenand sustainable procurement, prioritized "environmental certification" suppliers, continued to improve the Procurement Management Manual,further tightened the supplier admission standards and evaluation mechanism, and required the cooperative suppliers to sign the SocialResponsibility Commitment of Suppliers to fulfill their responsibilities in environmental protection, social responsibility, labor protection and otheraspects. In 2023, the suppliers' signing the Social Responsibility Commitment of Suppliers reached a coverage rate of 71%.
Sustainable Supply Chain
Sustainable procurement strategy
Based on the vision and mission of “Value sourcing for Excellence”, with our supply chain capabilities, industry influence,and market expertise, we are committed to creating a more sustainable future with our suppliers and promoting ourprocurement system toward sustainability and responsibility. In total,255 suppliers have passed the ESG assessment,accounting for14%.
Responsible procurementMeihua Group strictly have followed the Supplier's Responsible Procurement Management Measures of Meihua Holding Group Co. Ltd,fully integrated the concept and requirements of fulfilling social responsibility into the entire process of corporateprocurement, and ensured the Company's supply chain management level through the whole process of suppliermanagement.
Supplier risk management
Meihua Group places significant emphasis on supplier compliance management. Upon entry, suppliers are required to signthe Supplier Connection Commitment Clause. It is important to note that any violations of relevant regulations may result inblacklisting and permanent suspension of trading qualifications.
In 2023,100% of Meihua Group raw materials could
be traced back to their origin.
Number of suppliers
Tier 1 suppliers
Key Tier 1 suppliers
Key non-Tier 1 suppliers
Key performance
Number of high-risk suppliers
Tier-1 suppliers
Key non-Tier 1 suppliers
Achieving Win-win with ALL Walks of LifeEnvironmental, Social and Governance (ESG) Report 2023
Meihua Group insisted on strengthening the leadership of the Party andcombining it with the construction of modern enterprise system, consolidatingcorporate governance, improving risk control compliance, and strengtheningsupplier management. In addition, we built a stable, efficient and sustainablecorporate governance system, which provides a reliable foundation for thecompany's high-quality development.
The Banner of Party Building
Under the guidance of Xi Jinping Thought on Socialism with ChineseCharacteristics for a New Era, Meihua Group enhanced the "FourConsciousnesses", strengthened the "Four Self-confidence" and achieved the"Two Upholds". We must uphold the Party's overall leadership, strengthen PartyBuilding, and strictly govern the Party in an all-round way. We emphasizehigh-quality Party Building to lead and guarantee high-quality development.We have improved, strengthened, expanded and deepened the study andeducation of party history and the implementation of the achievements of thenational Party Building meeting of state-owned enterprises. In addition, wehave actively built a dynamic organization to provide a strong guarantee forthe Company to achieve its annual production and operation targets withcomprehensive and high-quality products.In 2023, Meihua Group focused on grassroots party organizations,promoted the wide coverage of learning, education and training, andstrengthened the improvement of ability to further consolidate the qualityof grassroots party building work.
Adhere to the party building guidance
Strengthening party style construction
While we are continuously improving our economic efficiency, we are alsodedicated to our social mission of giving back to society and supportingvulnerable groups. We leverage our industry advantages and activelyparticipate in public welfare through various initiatives, such as ruralrevitalization, charitable donations, community construction, and fightingthe epidemic. We are dedicated to contributing to society and assistingothers through virtuous deeds, which reflects the company's socialresponsibility of creating a positive influence on the world.In addition, Meihua Group established the Tibet Meihua Group Public WelfareFoundation and formulated a special management system such as the TibetMeihua Group Public Welfare Foundation Donation Management Measures,focusing on charity work in Hebei, Xinjiang, Tibet and other provinces.
Throughout the reporting period,Meihua Group employees took part in community
charity activities, including student aid andenvironmental protection, for a total of35,706
hours during working hours.
In 2023,Meihua Group donated a total of RMB
4,716,700 in public welfare.
Active Community Participation
Flood relief
During the rainstorm in Bazhou,Langfang, Hebei Province,Meihua Group urgently helpedBazhou and donated a total ofRMB
1.5 million in living
supplies (instant noodles andwater).
Public welfare activities
Case: Public Welfare Cloud Walk,Walking Together for Love
Case: Donations to Schools
On June 18th, 2023, the Meihua Group Trade Union and the Foundationjointly launched the "Public Welfare Cloud Walk, Walking Together forLove" charity donation event. The event attracted a total of 615 Companyemployees to participate. In seven days, everyone traveled a total of31,100 kilometers, walked a total of 43,377,292 steps, donated a total ofRMB 6,000 to the public welfare fund, and donated1,000 lunches to
the left-behind children in the mountainous areas of Guangxi.They recorded their goodwill with their steps and practiced charity withtheir actions. The accumulation of each step and the success of eachcharity donation condensed the deep love of the Company volunteers.Number of participants:
615, total donation: RMB 6,000
The student aid program was launched as scheduled in July 2023,marking the sixth year of collaboration between Meihua Group and theStars Public Welfare Foundation in supporting education and the sixthyear of embodying the spirit of public welfare. After 43 days ofpreliminary examination, visits, and evaluation, the sixth phase of thestudent aid program completed the funding for239 students,including154 students from the previous period and 85 newstudents. Reflecting on the past six years, a total of669 students
have been sponsored. Each number not only testifies to MeihuaGroup’s steadfast commitment and contribution but also strives toilluminate the path forward for the students.
7172Meihua Holdings Group Co., Ltd.Achieving Win-win with ALL Walks of LifeEnvironmental, Social and Governance (ESG) Report 2023
Index of Indicators
Issue disclosed/Disclosure item
GRI2: General Disclosures 2021
GRI3：Material Topics 2021
GRI201：Economic Performance 2016
GRI204：Procurement Practices 2016GRI205：Anti-corruption 2016
Title of disclosure itemChapter/section index
PagenumberGRI1: Fundamental 2021
2-12-22-32-42-52-62-72-82-222-292-30
Company ProfileAbout this ReportAbout this ReportAbout this Report/About Meihua GroupTalent-driven DevelopmentAbout Meihua GroupBoard of Directors' ESG StatementStakeholders' ParticipationTalent-driven DevelopmentStakeholders' ParticipationStakeholders' ParticipationStakeholders' ParticipationClimate Change ControlValuing Both Health and CareSustainable Supply Chain ManagementBusiness Ethics and Anti-corruptionBusiness Ethics and Anti-corruptionBusiness Ethics and Anti-corruption
Organization detailsEntities included in the Organization's sustainabledevelopment reportReporting period, reporting frequency, and contactpersonsRestatements of informationExternal assuranceActivities, value chain and other businessrelationshipsEmployeesWorkers who are not employeesStatement on sustainable development strategyApproach to stakeholder engagementCollective bargaining agreementsProcess to determine material topicsList of material topicsManagement of material topics
Defined benefit plan obligations and otherretirement plansFinancial implications and other risks andopportunities due to climate change
Communication and training on anti-corruptionpolicies and proceduresConfirmed incidents of corruption and actions takenOperations assessed for risks related to corruption
3-13-23-3201-2201-3
205-1205-2205-3
204-1Proportion of spending on local suppliers58
/
GRI206： Anti-competitive Behavior 2016
206-1
301-1301-2301-3302-1302-2302-3302-4302-5
GRI301：Materials 2016
GRI302：Energy 2016
GRI303：Water and Effluents 2018
GRI305：Emissions 2016
303-1303-2303-3303-4303-5
305-1305-2305-3305-4305-5305-6305-7
Issue disclosed/Disclosure item
Title of disclosure itemChapter/section index
Pagenumber
Lawsuits against unfair competition, anti-trust andanti-trust practicesMaterials used by weight or volumeRecycled input materials usedReclaimed products and their packaging materialsEnergy consumption within the CompanyEnergy consumption outside the CompanyEnergy intensityReduction of energy consumptionReductions in energy requirements of products andservicesInteractions with water as a shared resourceManagement of impacts related to drainageWater withdrawalWater dischargeWater consumptionDirect (Scope 1) GHG emissionsEnergy indirect (Scope 2) GHG emissionsOther indirect (Scope 3) GHG emissionsGHG emissions intensityReduction of GHG emissionsOzone-depletion substances (ODS) emissionNitrogen oxides (NOx), sulfur oxides (SOx), andother significant air emissions
Business Ethics and Anti-corruption
Recycling of packaging materialsRecycling of packaging materialsRecycling of packaging materialsEffect of Energy Saving and Pollution ReductionEffect of Energy Saving and Pollution ReductionEffect of Energy Saving and Pollution Reduction/Effect of Energy Saving and Pollution ReductionManagement of Water ResourcesManagement of Water ResourcesManagement of Water ResourcesManagement of Water ResourcesManagement of Water ResourcesEffect of Energy Saving and Pollution ReductionEffect of Energy Saving and Pollution Reduction/Effect of Energy Saving and Pollution ReductionEnvironmental Protection FirstEnvironmental Protection FirstEnvironmental Protection First
Index of IndicatorsEnvironmental, Social and Governance (ESG) Report 2023
GRI306：Effluents and Waste 2016
GRI308：Supplier Environmental Assessment 2016
GRI401：Employment 2016
GRI403：Occupational health and safety 2018
306-1306-2306-3306-4306-5308-1308-2
401-1401-2401-3403-1403-2403-3403-4403-5403-6403-7403-8403-9403-10
22、40
GRI404：Training and Education 2016404-1404-2404-3
405-1405-2
406-133
407-1
408-1
GRI405：Diversity and Equal Opportunity 2016
GRI407：Freedom of Association and Collective Bargaining 2016
GRI408：Child Labor 2016
GRI409：Forced or Compulsory Labor 2016
GRI413：Local Community 2016
GRI406：Non-discrimination 2016
409-1
413-1413-2
52、61
52、55
GRI414：Supplier Social Assessment 2016414-1414-2
Water discharge by quality and destination
Average number of training hours per employee peryearPrograms for upgrading employee skills andtransitionPercentage of employees receiving regularperformance and career development reviewsDiversity of governance bodies and employeesRatio of basic salary and remuneration of women tomenIncidents of discrimination and measures taken toremedy themOperations and suppliers in which the right tofreedom of association and collective bargainingmay be at riskOperations and suppliers at significant risk forincidents of child labor
Operation sites and suppliers with a significant riskof forced or compulsory laborOperations with local community engagement,impact assessments, and development programsOperations with significant actual and potentialnegative impacts on local communitiesNew suppliers that were screened using socialcriteriaNegative social impacts in the supply chain andactions taken
Waste by type and disposal methodSignificant spillsTransport of hazardous wasteWater bodies affected by water discharges and/orrunoffNew suppliers screened using environmental criteriaNegative environmental impacts in the supply chainand actions takenNew employees and employee turnoverBenefits for full-time employees (excludingtemporary or part-time employees)Parental leaveOccupational health and safety management systemHazard identification, risk assessment, and incidentinvestigationOccupational health servicesWorker participation, consultation, andcommunication on occupational health and safetyWorker training on occupational health and safetyPromotion of workers healthPrevention and mitigation of occupational healthand safety impacts directly linked by businessrelationshipsWorkers covered by the OHS management systemWork-related injuriesWork-related ill health
Management of Water ResourcesWaste ManagementWaste ManagementWaste ManagementManagement of Water ResourcesResponsible ProcurementResponsible Procurement/Valuing Both Health and CareCare for staff lifeAttaching Importance to Work SafetyAttaching Importance to Work SafetyAttaching Importance to Work SafetyValuing Both Health and Care/Attaching Importance to Work Safety/Attaching Importance to Work SafetyAttaching Importance to Work SafetyAttaching Importance to Work SafetyAttaching Importance to Work Safety
Talent-driven Development//
Talent-driven Development/
Talent-driven Development
/
/
/
Community Participation, EnvironmentalProtection FirstEnvironmental Protection First, Promotion ofPollution Control
Responsible ProcurementResponsible Procurement
Issue disclosed/Disclosure item
Title of disclosure itemChapter/section index
Pagenumber
Issue disclosed/Disclosure item
Title of disclosure itemChapter/section index
Pagenumber
Index of IndicatorsEnvironmental, Social and Governance (ESG) Report 2023
GRI416：Customer Health and Safety 2016
GRI417：Marketing and Labeling 2016
GRI418：Customer Privacy 2016
416-1416-218
417-1
418-1
417-2417-3
Feedback form
Dear readers,Thank you for reading the 2023 Environmental, Social and Governance (ESG) Report of Meihua Holdings Group Co., Ltd. Welook forward to your comments and suggestions on the report and our work. Thank you again!
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Add: No. 66 Huaxiang Road, Langfang Economic and Technological Development Zone, Hebei ProvincePostal Code: 065001 E-mail: mhzqb@meihuagrp.com Tel: 0316-2359652Contact Info
Assessment of health and safety impacts of productand service categoriesIncidents of non-compliance concerning the healthand safety impacts of products and servicesRequirements for product and service informationand labelsIncidents of non-compliance concerning productand service information and labelingIncidents of non-compliance concerning marketingcommunicationsSubstantiated complaints concerning breaches ofcustomer privacy and losses of customer data
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Feedback formEnvironmental, Social and Governance (ESG) Report 2023