Smart ManufacturingLeading a Greener Future
2023ENVIRONMENTAL, SOCIAL AND
GOVERNANCE REPORTJinsanjiang (Zhaoqing) Silicon Material Company Limited
Stock code：301059
Contents
IntroductionBasis of PreparationReporting PeriodInformation SourceAccess to the Report
Company ProfileKey Performance IndicatorsCorporateHonors
CorporateGovernance
ESGGovernance
Automated ProductionDigital ManagementWork SafetyProduct Management
R&D SystemInnovation ProductsIntellectual Property Rights Protection
Customer ServiceBuilding a Responsible Supply ChainContribution to Public Welfare
Environmental ManagementGreen FactoryGreen ProductContributing to the Dual Carbon Goals
Compliance in EmploymentTalent DevelopmentEmployee CareHealth and Safety
Appendix I GRI Standards IndexAppendix II Key Performance DataSheet
About the Report
Message from
the Chairman
About JSJ
SustainabilityManagement
IntelligentManufacturing
ProductManagement
Collaborate toWin
GreenDevelopment
EmployeeWellbeing
Appendix
About the Report
Introduction
Jinsanjiang (Zhaoqing) Silicon Material Co., Ltd. (hereinafter referred to as "JSJ", "the Company," or "We") is pleased to
release the 2023 Environmental, Social and Governance (ESG) Report ("the report"), aiming to provide stakeholderswith information on JSJ's practices and performance in ESG aspects.
Basis of PreparationThe report draws on the GRI Sustainability Reporting Standards (GRI Standards) of the Global Sustainability StandardsBoard, and the United Nations Sustainable Development Goals (UN SDGs). At the same time, it is compiled inaccordance with three guidelines of the Shenzhen Stock Exchange (SZSE), i.e. the Shenzhen Stock Exchange SocialResponsibility Instructions to Listed Companies, the Rules Governing the Listing of Shares on the ChiNext Market of
Shenzhen Stock Exchange, and the Shenzhen Stock Exchange Guideline No.2 on Self-Regulation of Listed Companies
on the ChiNext Board.Reporting Period
The report covers the period from January 1, 2023, to December 31, 2023. To enhance comparability of the report and
provide forward-looking information, the reporting period of some content is moderately extended.
Information Source
The statistics and cases in the report are mainly derived from the Company’s official documents, statistical reportsand relevant public documents. The Company undertakes that there is no false record or misleading statement in thereport, and bears responsibility for the truthfulness, accuracy and completeness of its content. The Board of Directors
of the Company has approved the report and guaranteed that the report does not contain any false records,
misleading statements or material omissions.
Access to the Report
The report can be viewed and downloaded on the official website of SZSE (www.szse.cn), the Company's website
(https://www.gz-silica.com), and CNINFO (http://www.cninfo.com.cn).For further inquiries or any questions or suggestions regarding the report, please contact the Company via email at
ir@jsjgcl.com.
0102
Message from the Chairman
2023 marks the 20th anniversary of JSJ. It is also a year
for JSJ to uphold craftsmanship and make positive
changes. Looking back, JSJ has been forging ahead inthe pursuit of excellence and staying committed to
promoting both corporate and social progress. In thepast year, we have walked hand in hand with
stakeholders to uphold social responsibility and seek
the coordinated development of economy, society andenvironment.
Operating with Integrity and Earning the Trust of All Stakeholders. At JSJ, we uphold the service concept of"customer first and pursuit of excellence”. We listen to the demands of our customers through various channels andprovide them with professional and customized solutions. Besides, we value customer feedback as it enables us to
improve customer satisfaction and gain their recognition. We also strictly follow laws, regulations, and customerrequirements. We select responsible suppliers and strive to build an efficient, stable, and sustainable supply chain,thus jointly promoting the healthy development of the industry. Moreover, the Company has gained social
recognition for persistent involvement in public welfare activities and enduring contribution to society.Committed to Green Development to Jointly Building an Environmentally Friendly Ecosystem. JSJ is committedto sustainable development and integrates the concept into product design, factory design, production packaging andother processes. We are dedicated to pollutant reduction by disposing of wastewater, waste and exhaust gas duringthe production phase in strict compliance with relevant regulations. As a result, we have obtained the ISO 14001Environmental Management System Certification. Furthermore, we actively explore resource recycling technologiesand have achieved waste heat recovery, vapor recovery, and water conservation. In 2023, we were also awarded the
provincial-level benchmark enterprise for water conservation. In addition, we focus on product ecological design and
carbon footprint evaluation, promote "zero solid waste" and packaging material conservation. We are also applying
clean energy to support the "dual carbon" goals with technology.
Caring for Employee Growth with the Foundation of Putting Our People First. JSJ adheres to the business
philosophy of "altruism and love, achieving dreams". We fully protect the rights and interests of employees. We
actively implement compliance employment and provide employees with competitive salaries and benefits. We have
established a comprehensive talent development system that aims to promote consistent growth of our employees.
We also place great importance on employee care by ensuring that communication channels are in place, allowing usto listen to their voices. In addition, JSJ prioritizes the health and safety of employees, with a focus on strengthening
occupational health and safety management to create a safe and healthy working environment. With these efforts, we
aim to achieve mutual growth for both our employees and the Company.
——— Chairman Zhao Guofa
Driving Digital Transformation and Pursuing Excellence in Quality. JSJ consistently promotes IT-basedindustrialization and constantly improves production efficiency and quality stability by fully applying automatedproduction, embedding intelligent data systems in key business processes and enhancing product quality systems.
The Company also prioritizes production safety by providing employees with sufficient personal protective equipment
and strengthening safety training every year, ultimately achieving "zero accidents" in 2023.
Embracing Innovation-Driven Approach to Empower Product Customization. JSJ firmly believes that scientific
research and innovation are the key to stimulating product vitality. Focusing on the field of silica, we consistently
introduce excellent talents to build the Guangdong Engineering Technology Research Center for Functional Silica.Additionally, we have established an "industry-academia-research cooperation" R&D platform with universities. By
closely aligning customer needs with our research and development plans, we provide customers with customized
products to improve our product competitiveness. Furthermore, the Company actively participates in the development
of national standards, industrial standards and organizational standards in the silica sector, thereby promoting
industry development.
0304
About JSJ
Company ProfileCompany Business
Founded in 2003 and headquartered in Zhaoqing City, Guangdong Province, Jinsanjiang (Zhaoqing) Silicon Material
Company Limited (Stock Code: 301059) was officially listed on ChiNext of Shenzhen Stock Exchange in 2021, beingthe first company in Zhaoqing to successfully go public through the registration system.JSJ is committed to becoming a global leader in silicon materials and has been dedicated to the R&D, manufacturingand sales of silica using the precipitation method. The Company attaches great importance to product innovation andhas established a team of talents mainly composed of PhDs and masters. Additionally, the Company is equipped with
high-standard CNAS certified laboratories to ensure the Company's R&D competitiveness.
JSJ has successfully built a comprehensive global network of sales, production, and delivery, which empowers us toefficiently cater to diverse industries including toothpaste, food and cosmetics, batteries, silicone rubber, anddefoamers by offering customized silicon materials. Our unwavering dedication lies in generating substantial value for
customers.JSJ has been successively honored with titles such as "Guangdong Provincial Level Enterprise Technology Center",
"Guangdong Engineering Technology Research Center for Functional Silica", "Guangdong Province Innovation Method
Promotion and Application Demonstration Cultivation Enterprise", and "Top 100 Chinese Household ChemicalCompanies". JSJ is currently the leading manufacturer of silica for toothpaste in China.
Corporate BuildingNew Factory
Our CultureJSJ places great importance on the construction and inheritance of corporate culture. We have formed a corporateculture consisting of corporate vision, corporate mission, corporate values and service philosophy, which continuously
guiding, motivating, restraining, and influencing all employees to promote the Company's stable and sustainable
development.
Our VisionEmerging as a
prominent globalfrontrunner in the
field of silicon
materials
Our Mission
Customizing siliconmaterialsCreating value forcustomersRealizing the dreamfor employeesContributing to thesociety
Our Values
Customer-orientedInnovation-driven
Making UnremittingEffortsAdhering to Self-
inspection
Our ServicePhilosophy
Customer first
Pursuit ofexcellence
Growth Journey
200320042007201020122013
20192018201720162014
2020202120222023
?Incorporation
of JSJ
?Construction
of the firstproductionline
?First obtaining
ISO9001 qualitymanagementsystemcertification?Successfuldevelopment andproduction of
colored abrasiveparticles
?First obtaining
ISO 14001:
EnvironmentalManagementSystems
Certification
?Firstobtaining the"GuangdongProvinceClean
Production
EnterpriseCertification"
?Firstobtaining the“NationalHigh-techEnterprise
Certification”
?Successfully completing theCompany's shareholding
system reform, and first
obtaining the honors of"Guangdong Province
Intellectual Property
Demonstration Enterprise"and "National Intellectual
Property Advantageous
Enterprise"
?First obtaining the
Kosher Jewish
Certification and theEU REACHCertification
?Completing theupgrade of two
automated
production line inthe first factory of
JSJ
?First obtainingthe Intellectual
Property
ManagementSystem
Certification
? Awarded the titleof “GuangdongEngineering
Research Centerfor Functional
Silica”
?First obtaining the
Nature Certification
?First obtaining
ISO22000 Food SafetyManagement System
?Completing the construction theintelligent factory (the second factory)?Awarded the “23rd China Patent
Excellence Award” and “ProvincialEnterprise Technology Center”, withmultiple products rated as“Guangdong Famous High-techProducts in 2021”
?The intelligent factory (the second factory)formally put into production?Awarded the ISO 50001 Energy ManagementSystems Certification
?Obtaining CNAS Certification and awardedthe title of "Guangdong Model Worker andTalented Craftsperson Innovation Studio"0506
Key Performance IndicatorsCorporate Honors
NumberHonorsIssuer
1Provincial Enterprise Technology Center
Department of Industry and Information
Technology of Guangdong Province
Guangdong Engineering Technology Research Center for
Functional Silica
Department of Science and Technology
of Guangdong Province
Guangdong Model Worker and Talented CraftspersonInnovation Studio
Guangdong Federation of Trade Unions
Guangdong Province Innovation Method Promotion andApplication Demonstration Cultivation Enterprise
Guangdong Province ProductivityPromotion Center
5National Intellectual Property Advantageous Enterprise
China National Intellectual PropertyAdministration
rd China Patent Excellence Award
People’s Government of GuangdongProvince
Guangdong Province Contract-abiding and Credit-worthyEnterprises
China National Light Industry Council8Top 100 Chinese Household Chemical Companies
Top 100 Chinese Household Chemical
Companies Selection Committee
9Guangdong Province Clean Production Enterprise
Department of Industry and Information
Technology of Guangdong Province10Specialized and Sophisticated SME of Guangdong Province
Department of Industry and Information
Technology of Guangdong Province112022 Top 50 Technology Innovation Enterprises
People’s Government of Zhaoqing
Municipality
Second Prize of Science and Technology Progress Awardfrom China National Light Industry Council
Department of Industry and Information
Technology of Guangdong Province
13High-tech Enterprise
Department of Science and Technology
of Guangdong Province
14Zhaoqing High-tech Zone Quality AwardGuangdong Federation of Trade Unions
Total GHG
Comprehensive energy
consumption per unitproduct
Compared to 2022,
comprehensive energyconsumption per unitproduct has decreasedby
Installed powercapacity ofphotovoltaic powergeneration equipment
in the factory
Number of flexiblefreight bags saved
Industrial solid wastegenerated achieved
Products recalledProduction safety
accidents
Corruption cases
Intellectual property
rights litigations
Total authorized
patents
R&D investment
Total number of
employees
The proportion ofemployees trained
Total donation in the
last three years
29,206.36
tCO2e
0.34 tonnes of
standard coal
19%
1,972.35Kilowatt
16,001
100%
Harmless treatment
0130
17,103,521.37
RMB
274100%164,600RMB
Environmental
Performance
Social
Performance
0708
Sustainability
Management
This Chapter Responds to
Material issues
Integrity
building
Compliance
operation
SDGs
JSJ attaches great importance to standardized operation and sound governance. TheCompany comprehensively strengthens its efficient operation capability and strives to
achieve sustainable development by continuously improving corporate governance,enhancing ESG governance level, promoting business ethics construction, andstrengthening communication with stakeholders.
Corporate Governance
The Company strictly abides by the Company Law of the People's Republic of China, the Securities Law of the People'sRepublic of China, the Regulations on the Governance of Listed Companies, the Rules Governing the Listing of Shares
on the ChiNext Market of Shenzhen Stock Exchange, and the Guidelines for the Standardized Operation of Listed
Companies on the ChiNext Market of Shenzhen Stock Exchange and other laws, regulations and normative documents.
In combination with the Company's actual situation, the Company establishes and improves the internal controlsystem, standardizes the Company's operation, continuously strengthens the internal driving force of corporategovernance, and gradually forms a long-term mechanism for standardized governance of the Company. At the same
time, the Company strengthens risk prevention and control, continuously improves information disclosure and
investor relations management, and strives to enhance corporate governance level.Operation of the Three Meetings*
JSJ knows that the "Three Meetings" are the core of the Company's governance structure and are importantguarantees for ensuring scientific decision-making, effective implementation, and effective supervision of theCompany. The Company has formulated the Operation Manual for the Three Meetings to clearly regulate the
requirements, procedures and related meeting documents for the “Three Meetings” to ensure their efficiency and
compliance.The Company is actively exploring innovative ways to operate the “Three Meetings”. For the newly elected orappointed directors, supervisors and senior management, the Company requires them to take the oath of office at theappointment meeting and issue them formal appointment certificates to enhance their sense of belonging,recognition and responsibility and to deepen their professional ethics and qualities. At the same time, the Companyenhances pre-meeting process simulations to ensure seamless arrangement and zero mistake during the meeting,
thereby enhancing communication efficiency. In the future, the Company will continue to enrich and innovate the
forms of the “Three Meetings” and learn from the experience of excellent enterprises to continuously improve the
operation of the “Three Meetings”.
During the year, the Company convened:
2Shareholders'
meetings
8Board ofDirectors' meetings
6Board of Supervisors'meetings
Shareholders and Shareholders' Meeting
The Company strictly follows the requirements of the Company Law of the People's Republic of China, the Articles of
Association, the Rules of Procedure for Shareholders' Meetings, and other laws, regulations, and internal normativedocuments to standardize the convocation, holding, and voting procedures of Shareholders' meetings to ensure thatall shareholders enjoy equal status and fully exercise their rights. During this year, the Company invited lawyers to
witness all Shareholders' meetings in accordance with the regulations. The Company improves the convenience of
participation of small and medium shareholders in Shareholders' meetings by combining on-site and online voting
methods in accordance with relevant regulations to ensure the rights of small and medium shareholders aresafeguarded.
*Three Meetings refer to Shareholders’ meeting,Board of Directors' meeting and Board of Supervisors' meeting.
Directors and the Board of DirectorsDuring this year, the Company convened a total of 8 Board of Directors' meetings, which all strictly followed therelevant regulations to standardize the convocation, holding, and voting of Board of Directors' meetings. TheCompany's Board of Directors is composed of 6 directors, including 2 independent directors and 4 non-independentdirectors. The number, composition, and selection procedures of the Board of Directors comply with relevant laws andregulations, the Company's Articles of Association, and relevant institutional regulations. The directors of the
Company carry out their work in an orderly manner, attend the Board of Directors' meetings, committee of the board,and Shareholders' meetings, diligently fulfill their duties and obligations, and safeguard the interests of the Companyand its shareholders. The Board of Directors establishes the Audit Committee, Strategy Committee, NominationCommittee, and Remuneration and Appraisal Committee. Each committee performs its duties, and provides sound
and professional opinions and references for the decision-making of the Board of Directors. Each committee exercisesits powers in accordance with the Company's Articles of Association and the rules of procedure of each committee,
free from interference by other departments and individuals of the Company.
Supervisors and the Board of Supervisors
The Board of Supervisors of the Company consists of 3 supervisors, including 1 employee supervisor, and the number
and composition of the Board of Supervisors comply with the requirements of the relevant laws and regulations suchas the Company Law of the People's Republic of China and the Company's Articles of Association. During this year, theconvocation, holding, and voting of the Board of Supervisors' meetings comply with relevant laws and regulations.The supervisors of the Company attend Shareholders' meetings as required, attend the Board of Directors' meetings,and convene the Board of Supervisors' meetings in accordance with the prescribed procedures. They diligently andresponsibly inspect and supervise the financial status of the Company and the performance of the directors and seniormanagement to effectively safeguard the legitimate rights and interests of the Company and shareholders, promoting
the standard operation of the Company.
Risk PreventionJSJ focuses on risk management and prevention, establishes a strict internal control system and continuously improvesand refines internal control measures to enhance the efficiency of decision-making and standardize businessmanagement. The Company actively identifies risks in areas such as market, operations, legal, technological, and
financial aspects in its daily operations and takes proactive measures to minimize the potential impact of risks on the
Company's production and operations. The Company implements "three lines of defense" risk management to ensure
the effectiveness of internal monitoring systems:
Lines of defenceDepartment in chargeKey points for risk prevention and control
First Line ofDefence
R&D, procurement, production, sales
departments
Identify, evaluate, and manage risks in thebusiness processesSecond Line of
Defence
Functional departments including finance and
legal departments
Provide professional knowledge, andsupport, monitor, and raise reasonablequestions for risk related matters
Third Line ofDefence
Audit DepartmentProvide independent, objective
judgements and recommendations on allmatters related to achieving corporategoals1112
Right and interest of investors
Information Disclosure
JSJ consistently safeguards the rights and interests of investors. JSJ strictly complies with relevant laws and regulations
such as the Measures for the Administration of Information Disclosure of Listed Companies and earnestly fulfills the
Company’s obligations of information disclosure. All directors, supervisors, and senior management of the Companycarefully review the contents of external disclosures and ensure that the information disclosed by the Company is true,
accurate and complete, without false records, misleading statements or major omissions.The Company mainly discloses announcements, financial indicators, company systems, periodic reports, companyprofiles and other information to investors through CNINFO (http://www.cninfo.com.cn/). The relevant informationdisclosed by the Company will also be published in Securities Times, China Securities Journal, Securities Daily and
Shanghai Securities News. In 2023, the Company disclosed a total of 97 announcements, including 4 regular reportsand 93 interim announcements.
Investor Relations
With an open and honest attitude, JSJ actively maintains good interaction with investors, responds to investors'inquiries in a timely manner, and regularly conducts investor communication activities. By doing so, JSJ ensures thatinvestors can comprehensively, accurately, and timely understand the Company's operating conditions anddevelopment strategies, thereby enhancing investor confidence. In 2023, JSJ conducted a couple of investorcommunication activities, including 1 annual performance briefing for 2022 and multiple on-site investigation
activities for institutional investors. The Company's investor communication activities follow JSJ’s Internal Investor
Management Policies, and all directors, supervisors, and senior management of JSJ are responsible for the content ofthe Company's investor communication activities. Meanwhile, the Company will record the communication content in
meeting minutes and incorporate it into the investor communication files to ensure complete records.
This year, the Company conducted：
1performance briefing
Multiple on-site investigation activities for
institutional investors
Business Ethics
JSJ adheres to honest operation and fair competition, strictly complies with relevant laws and regulations such as the
Anti-Unfair Competition Law of the People's Republic of China and the Anti-Monopoly Law of the People's Republic
of China, formulates and implements internal policies such as the Cadre Management Policy and the Internal AuditManagement Regulations. JSJ also continuously doubles down on constructing a clean culture, with zero tolerance forcommercial bribery.At the same time, the Company comprehensively supervises and manages the cadre team to ensure the integrity andlegality of the cadre team, effectively prevent and combat corruption and provide a strong guarantee for theCompany's sustained and healthy development.?The Company regards cadre supervision as an important part of business ethics construction, and has set up aspecial cadre supervision mailbox, which is managed and checked by the general manager in person.?Any irregular behavior of JSJ's cadres can be supervised and reported by all employees, so as to promptly detect
and correct any improper behavior.
ESG Governance
Sustainable Development Concepts
JSJ is committed to minimizing the impact of its operations on environment and society. The Company activelystrengthens ESG governance and proactively engages with stakeholders, aiming to achieve sustainable development.The Company also supports and actively responds to the United Nations Sustainable Development Goals (UN SDGs)
by fulfilling environmental and social responsibilities through concrete actions. The Company integrates the conceptof sustainable development into business development and operational decision-making processes.The Board of Directors of JSJ is the highest decision-making and supervisory body for the Company's ESGmanagement. It assumes full responsibility for the Company's ESG management policies, strategies and reporting,fully integrates ESG factors in business decision-making, and reviews and approves the Company's annual ESG report.Stakeholders EngagementAs we make constant efforts to promote ESG initiatives, we recognize that the opinions and expectations ofstakeholders have a significant impact on our operation and development. We have established a communication
mechanism with various stakeholders through multiple channels to engage with stakeholders, meet their demandsand accept their supervision.
?The Company sets up a special investigation team to supervise the behavior of cadres in various centers, assist the
general manager in recording, inspecting, analyzing, determining responsibility, imposing punishment, and
rewarding in reported cases, and jointly determine the results with the general manager.
?The audit department of the Company strictly supervises and inspects the daily behavior of cadres by prohibiting
corruption and abuse of power.?The Human Resources Center of the Company regularly conducts comprehensive cadre examinations to supervise
the performance of cadres during their tenure.
StakeholdersCommunication
channels
Communication
channels
Expectations and demands
| Expectations and demands | Communication and response |
Regulators and government
departments
Regulators and government
departments
Regulatory submissionVisits and interviews
Government enterprise
meetings
| Regulatory submissionVisits and interviewsGovernment enterprise meetings | Compliance with lawsPay taxes according to lawsEnergy conservation and emissions reduction |
Legal and compliance operationsTax payment in full and on time
Produce green products
Legal and compliance operationsTax payment in full and on time
Produce green products
Customers
Customers
Telephone hotlineEmail
Customer satisfaction
survey
Customer meetings
Product qualityProduct innovationService experience
Protection of customers' rights and
interests Business ethics
Human rightsEnvironmental protection
Product quality managementInvestment in product R&D
Customized solutions
Customer follow
-up
Integrity and anti
-corruption
Employee well
-being
Green operation
Investors
Shareholders' meetingsPerformance briefingInvestors’ activities
Company official website
Telephone hotline
Return on investment
Rights and interests protectionCorporate transparency
Risk control
Improve profitabilityCorporate managementInformation disclosureInternal control procedure
1314
StakeholdersCommunication
channels
Communication
channels
Expectations and demands
| Expectations and demands | Communication and response | ||
| Employees |
Employee activitiesEmail of the generalmanagerInternal meetingsWeChat group of theCompany
| Employee activitiesEmail of the general managerInternal meetingsWeChat group of the Company | Employees’ rights and interestsCareer developmentSalaries and benefitsHealth and safety | Compliance employmentEmployee training and promotion opportunitiesSalaries and benefitsProduction safety |
Suppliers and partners
Suppliers and partners
Site visitsSupplier audit
Online/Offline meetings
| Site visitsSupplier auditOnline/Offline meetings | Business ethicsProduct quality and safetyFair competitionLong |
-term cooperation
Supplier management policies
On
-site factory audits
Project procurement and sourcingSupplier ESG evaluation
Community and public
Community and public
Public information
disclosure Community
activities
Public information
disclosure Community
activitiesSupport public welfareProtect the natural environment
| Support public welfareProtect the natural environment | Charity activitiesGreen products |
Media
Media
Interviews
Information disclosure
| InterviewsInformation disclosure | Environmental protectionCorporate social responsibilitiesCompliance operation | Green productsPublic welfare activitiesCorporate governance |
Materiality AssessmentJSJ communicated with stakeholders through various channels. In this way, we understood concerns of stakeholderson ESG material issues. Taking into account those concerns and the actual situation of the Company's businessdevelopment, we have ranked ESG material issues and determined the disclosure priorities of the current year's ESG
reporting.The process of ESG materiality assessment for the current year is as follows:
A comprehensive review of the Company's ESG important issues and the concerns of variousstakeholders was conducted based on the Sustainability Reporting Standards released bythe Global Reporting Initiative (GRI), in combination with the United Nations SustainableDevelopment Goals (UN SDGs) and other requirements. We benchmarked domestic and
foreign peers, and identified 19 key ESG issues.Collected feedback on JSJ’s ESG from stakeholders such as directors, management,
employees, clients, investors, partners, media and the public in daily operations as ascreening basis for material issues.Statistics and analysis were conducted on the research results to rank the importance oftopics from two dimensions: "importance to enterprise development" and "importance tostakeholders", in order to form a materiality matrix. The management reviewed andevaluated the selected topics.
NoPrioritizationMaterial Issues
Very Important
Product Quality
Product Safety
Intelligent Manufacturing
Product R&D
Green Operation
Employee Safety
Customer Rights and Benefits
Employee Rights and Benefits
Chemical Safety
Compliance Operation
Important
Employee Development
Energy Management
Care for Employees
Intellectual Property Rights
Supply Chain Management
Secondary Importance
Integrity Building
Climate Change
Emissions Management
Public Welfare
The process of ESG materiality assessment for the current year is as follows:
1516
Identificationof Issues
Communication
and Research
Prioritization of
ESG Issues
ESG Materiality Matrix
Environment
SocietyGovernance
Matrix for ESG Material IssuesMateriality to the group’s business development
Materiality to stakeholders
Intelligent
Manufacturing
This Chapter Responds to
Material issues
Product SafetyProduct Quality
SDGs
Chemical SafetyIntelligent Manufacturing
Intelligent manufacturing is the key strength to lead industry transformation and reshapefuture industry. We constantly improve our digital management system to lay a solidhardware and software foundation for intelligent manufacturing, thus improving productionefficiency and reducing cost. At the same time, JSJ is committed to the bottom line of worksafety and enhances work safety management structure to concretely safeguard efficient
operation. Furthermore, we have formulated quality management systems and control
requirements to continuously provide customers with high-quality products. During thereporting period, there were no safety accidents or product quality penalties at JSJ.
Automated ProductionAdvantages of Automated Production
JSJ follows an automated production approach and constantly optimizes and adjusts our overall technologicalroadmap. This commitment allows us to shorten product development cycles, reduce costs, enhance efficiency,improve product quality, and increase competitiveness.
Environment
?Intelligent control of energy consumption: The workshop mainly consumes electricity,natural gas, and steam, all of which are monitored online and remotely collected,managed and controlled through automation and digital terminals.
?Intelligent control of factory floor environment: Using advanced measuringinstruments and based on the DCS information management platform, wecomprehensively perceive the on-site production environment, dynamically monitor
various product indicators including sewage and exhaust emissions.
Safety
?Improvement of production safety level: Through various intelligent chain protection
devices and emergency shut-down systems, we ensure the personal safety andproduction safety, and enhance the utilization of equipment.
Automated Production Process
JSJ accelerates promoting automated production. The Company applies automation facilities such as automatedweighing machine, automated filter and water treatment system in production processes including feeding, filtering,
cleaning, raw material preparation, reaction parameter detection and packaging. This not only reduces the risk ofsafety accidents caused by human factors, but also increases production control precision and standardization.The intelligent factory (the second factory) of JSJ has fully applied automated production with all productionequipment running functionally and the production process being precisely controlled, result in improved productquality.
Automatic feeding?In the feeding stage, the automatic feeding equipment is used to control feeding and
discharge trolley weighing module is used to weigh sodium silicate delivered on thebelt and feed;
?Compared with traditional manual feeding mode, the valve may significantly helpsave flexible freight bags and reduce time and labor input.
Continuous on-line preparation of raw materials?Sulfuric acid/sodium silicate preparation processes are equipped with on-linedensimeter to achieve continuous on-line preparation;?Compared with traditional mode, this may significantly improve the accuracy andqualification rate of reagents, as well as the efficiency of reagent modulation.
On-line detection equipment for reaction process?The reaction process is equipped with various automated detection equipment,
including electromagnetic flowmeter, on-line pH meter and temperature sensor, toaccurately control various key parameters of reaction;
?Compared with traditional manual mode, this may significantly improve theuniformity of materials reaction and the efficiency of reaction process.On-line detection equipment for pressure filtration process?The pressure filtration process is equipped with equipment, including on-lineelectrical conductivity detection instrument, to accurately control salt content of
product through variable-frequency washing and hot water washing;?Compared with traditional process, this may significantly improve material washing
efficiency and material qualification rate.Water treatment system
?Full intelligent control soft water treatment system that is equipped with ion
exchanger, sand filter tower, on-line pH meter, UV disinfection instrument and other
equipment is used to achieve efficient removal of impurities in product;?Compared with traditional mode, this may better ensure microbial and biological
properties.Automated packaging system
?Metal detector, reweighing machine, on-line ink-jet printing machine, coating
machine and other equipment are configured to achieve efficient weighing,
packaging, re-inspection and film packaging for warehousing;
?Compared with the traditional mode, this may significantly strengthen packaging
efficiency, reduce the risk of broken packets, and make a better appearance of
product.
Automated Production Equipment and Systems
1920
Digital Management
JSJ believes that "data creates value" and has initially formed a "database" covering the entire business domain, withthe value of data emerging. JSJ has been committed to enhancing digitalization, in an effort to advance high-efficient
development with digitalization as the engine. Through the in-depth applications of SAP system, DCS system, energy
system, R&D system, OA system and other digital systems, the Company has built five major platforms including
business management, intelligent manufacturing, energy management, R&D management, and collaborative
workspace. In this way, the Company creates an efficient and unified information platform that connects businesssystems such as daily office, financial management, production management, R&D management, procurement,
marketing and finance, further enhancing operational efficiency of the Company. Supported by these five major
platforms, the Company has formed digital collaboration with customers, suppliers, and other partners to build an
end-to-end business network, achieving information interconnection and win-win cooperation. Internally, the
Company creates a global unrestricted real-time collaborative office, allowing employees at home and abroad tobreak geographical limitations and work anytime, anywhere, achieving global collaboration.
DCS System
SAP System
?Integrates all aspects of business, such as finance, procurement, production, sales,
inventory and logistics, to improve work efficiency;?Utilizes the barcode system for batch management of materials and products,effectively optimizing inventory management;
?Assists enterprises in improving their cost management systems, contributing to
standardized and precise cost accounting systems that provide transfer pricing and
profitability analysis.
DCS System
?Enables data collection of production process, production monitoring, alarming and
recording of operation parameters and printing reports, as well as remote
monitoring and control of on-stream equipment to improve the efficiency and
reliability of the process;?Detects all analog and digital signals, stores the data, and checks the validity of the
data for safety protection of processes and equipment.
EnergyManagementSystem
?The factory’s “Energy Management Platform” enables real-time onlinemonitoring of energy consumption in production. It can timely alert the employeesof abnormal energy consumption in the production process to solve the problem
and avoid energy waste in a timely manner.
R&D System
?Regulates and tracks R&D project initiation, lab-scale test, pilot-scale test and full-scale test processes to achieve R&D whole-process on-line management;?Establishes a uniform R&D platform to achieve real-time sharing of R&D projectdata and seamless integration with processes, thus accelerating R&D progress;
?Establishes an R&D database that integrates formula, raw materials, competitiveproducts and other databases to facilitate formula comparison analysis, cost analysis,competitive products and other work, thus improving R&D efficiency.
OA System
?Automatically handles various office affairs such as document management,
scheduling and email management to enhance work efficiency;?Enables rapid intracompany information sharing;
?Realizes cross-departmental and cross-geographical collaboration to improve
teamwork;
?Standardizes the workflow and management processes of the enterprise.
Work SafetyThe Company prioritizes health and safety in business operations. JSJ has been adhering to the safety policy of "safetyfirst, prevention-based, safety development and people-oriented". The Company has strictly abided by the Work
Safety Law of the People's Republic of China and other laws and regulations, established and improved the Company's
work safety management framework, and has continuously promoted the certifications of ISO 45001 OccupationalHealth and Safety Management System. The Company has set up management objectives regarding work safety,conducted regular safety inspections, trainings and drills, established a safety culture for all employees, standardizedthe chemicals management, and has effectively implemented work safety.
ISO 45001 Occupational Health and Safety Management System2122
Work Safety Management SystemJSJ has established a Safety Production Committee, with the Presidium consisting of the President, the Deputy GeneralManager, and the Plant Director. They are responsible for overall coordination of the Company's safety management
efforts, formulating work safety guidelines and objectives, and supervising the implementation. The Committee Office
under the Presidium of the Committee is responsible for supervising and implementing the safety production andmanagement. The Safety Management Committee organizes a meeting every quarter and holds regular
comprehensive safety inspections, giving advice on identified hazards to ensure effective and efficient implementationof work safety management. This year, the Company set a production safety goal of "zero accidents" and achieved this
goal during the reporting period.
The Committee Office
The Presidium
Safety Production Committee Framework
0Incident
Work Safety TargetSafe Production in PracticeJSJ has established the Safety and Environment Department to ensure safety in daily operation, equipped with 2
registered security engineers, 3 full-time personnel for safety environment management, 10 part-time safetycoordinators and other personnel. The Company ensures that work safety is operated in an orderly manner under theguidance of professionals, and further promotes the construction of a safety culture. At the same time, the Company
actively implements the work safety responsibility system for all employees, regularly carries out safety hazardinvestigation and rectification, and continuously promotes the construction of safety culture to effectively guaranteethe work safety.
?JSJ has been actively building a safety culture by providing DuPont safety culture trainings to
managers at all levels, and organizing in-depth learning of the "Bradley Curve" that illustrates the
relationship between safety culture and operational performance;
?We conduct safety activities bimonthly to involve more employees;?We also conduct a five-minute activity before the work to encourage employees to share safety
knowledge;
?The Company continually strengthens employees' safety awareness by incorporating their dailysafety commitment into daily management operations;?Regular fire and emergency drills are conducted to enhance employees' safety and emergency skills;?The Company has set safety signs in all operation areas of the factory to clarify work safety standards.
Construction ofSafety Culture
?JSJ continues to carry out safety hazard investigation and rectification. The Company has setup a special team to conduct daily safety inspections of a department's territorial areas. Andsenior leaders organize the management team to conduct the weekly joint inspections, andtrack the progress of rectification of the identified safety hazards on the weekly basis;?The Company has increased the investment in safety, by purchasing safety protectionfacilities such as equipment protection nets, machine protection covers and safety barriers toimprove safety.
Safety Hazard
Investigation
and
Rectification
?The Company establishes the Work Safety Responsibility System and requires all employeesat all levels to sign the Safety Responsibility Agreement, which specifies the accountableperson, scope of responsibility and assessment criteria for each position;?JSJ has further improved the Special Operation Safety Management System, Special
Equipment Safety Management System and other safety production supporting systems tostandardize the safety production management.
Work SafetyResponsibilitySystem for All
Employees
Safety Signs (Part)
2324
Case - Emergency Escape and Evacuation Drills and Fire Extinguishing Drills
In July 2023, the Company organized the emergencyescape and evacuation drill and fire extinguishing drill forall employees. The fire emergency response teamdemonstrated the use of fire extinguishers and firehydrants for all employees to learn. The drills providedemployees a chance to enhance their skills in emergencyevacuation, safe escape, and the use of fire extinguishersand fire hydrants.
Emergency Escape and Evacuation Drills and
Fire Extinguishing Drills Site
Supplier Safety ManagementIn 2023, the Company updated the Construction Safety Commitment Letter and the External Personnel Operation
Safety Agreement that requires to be signed by engineering suppliers before entering the JSJ Park for construction.These agreements outline the responsibilities and work requirements of both parties for occupational safety andenvironmental protection. The Company conducts comprehensive management and control over engineeringsuppliers from access, plan, process and evaluation managements, including review of construction safety qualification,onboarding safety training, submission of high-risk work plans, signing and approving of special work tickets, on-site
work safety inspection and punishment of safety violation. In 2023, there were no occupational safety accidents
among supplier employees within the operating scope of JSJ.
Chemicals Management
The Company attaches great importance to chemicals management. We strictly abide by the laws and regulations
such as the Regulations on the Safety Management of Hazardous Chemicals and formulate and implement relevantinternal policies for chemicals management such as the Rules on the Management of Hazardous Chemicals. The Rulesclarify the management requirements and responsible departments of procurement, storage, collection, usage andother processes and standardize the use of chemicals, thus minimizing chemicals safety incident risk. JSJ has
established a chemical management mechanism in line with the EU REACH certification (Registration, Evaluation,
Authorization and Restriction of Chemicals) and obtained EU REACH certification. At the same time, the Companycontinuously strengthens chemicals screening management. We identify and assess chemicals safety and environment
risk and gradually eliminate high-risk chemicals to ensure product safety.
European Union REACH Certification
?In terms of chemicals procurement, only those that have checked with the Catalogue of Used Cosmetic RawMaterials are approved and procured. If the result fails, the head of the R&D Center's Regulatory Group needs to
review whether or not the chemicals can be procured. For the procurement of hazardous chemicals, the Companycarefully screens chemicals to be procured in strict accordance with the Rules on the Management of HazardousChemicals. Chemicals can be procured only after being reported to the regulatory authority in accordance withlaws and approved.?In terms of chemical storage and custody, the Company requires to set a transit warehouse. In the warehouse,
hazardous chemicals can be stored separately by areas in accordance with their properties. At the same time, theCompany provides abundant fire-fighting equipment and sets clear marks for the hazardous chemicals warehouse.The warehouse is managed by special personnel.?In terms of chemicals collection and usage, the Company strictly abides by the "5 doubles" (double custodians,double locks, double ledgers, double delivery persons, double recipient) policy for collection of hazardous
chemicals stipulated by the public security department to ensure compliant collection of chemicals.At the same time, the Company conducts regular hazardous chemicals management training and chemicals leakagedrills to ensure that employees have the knowledge of hazardous chemicals management and the ability to deal withchemicals leakage emergencies.Case-Sulfuric Acid Leakage Drill
In March 2023, the Company carried out an emergency drill
on sulfuric acid leakage, which included leakage reporting,
emergency response and leakage disposal. The emergency
response team reacted according to the Emergency
Response Plan for Sulfuric Acid Leakage, and their
emergency response capability to deal with chemicals
leakage were enhanced.
Sulfuric Acid Leakage Drill Site
2526
Product Management
JSJ strictly complies with relevant laws and regulations such as the Product Quality Law of the People's Republic ofChina and the Food Safety Law of the People's Republic of China. JSJ attaches great importance to product safety andquality, and continues to improve the product quality management system. The Company is committed to providingcustomers with healthy, safe and high-quality products.Product FeaturesSilica is a kind of transparent substance with loose and porous structure, relatively stable chemical properties. Thismaterial can be widely used in toothpaste, food, medicine, cosmetics, high-end industry and other fields. Silicaproducts produced by JSJ can be used in toothpaste rubbing agents, high-end industrial fillers, food andpharmaceutical anti-caking agents and other scenarios. The products have good safety, and can help customers invarious fields such as toothpaste, food, medicine, cosmetics, batteries, silicone rubber, and opening agents achieve
success.JSJ values customer needs, continuously explores more diverse product functions, and has established an advancedproduct creativity concept for the future. We continue to gather cutting-edge global technologies, improve the
product management system of the entire value chain, and strive to provide safer, more reliable, and higher quality
products for global users.
Toothpaste Rubbing AgentsFood Anti-caking AgentsProduct Quality Management System
Upholding the quality policy of "Insisting on quality first, promoting technological innovation, implementing scientificmanagement, and exceeding customers' expectations", JSJ formulates and continuously improves the quality
management system for the entire product life cycle. According to the standards of ISO9001, ISO22000 and IPEC-PQG,
JSJ has formulated and implemented the Integrated Management Manual, Quality System Operation Evaluation
Management System, and the Non-conforming Product Management System. At the same time, the Companystrengthens the management of process quality objectives by refining and controlling them. The Company alsoimplements the accountability system, and promotes achieving objectives through communication, meetings andassessment mechanisms. The Company has obtained a series of certifications such as ISO 22000 Food Safety
Management System Certification, COSMOS Standard Certification, HALAL Certification and Kosher Certification.
ISO 9001 Quality Management System CertificationISO 22000 Food Safety Management System
Certification
COSMOS Standard Certification
Kosher CertificationHALAL Certification
Product Quality Control
Quality CultureQuality is an important cornerstone for JSJ’s growth. In order to strengthen the development of the Company'squality culture, pursue lean manufacturing and foster a serious and pragmatic work atmosphere, the Companystimulates the quality awareness of all employees through activities such as quality months, quality training, and
quality reporting, encouraging employees to form zero-tolerance attitude towards quality issues, and improve workabilities.
Quality Month Promotional Posters2728
Quality Management and Control
In the product R&D stage, the Company keeps a rigorous attitude in processes including approval of new products,
product sample making, pilot production and summary, verification of pilot production stability and product process
standardization in line with the product design agreed with our customers. Furthermore, we strictly implement quality
approval in these processes to safeguard the consistent quality of products for mass production.In the procurement and production stages, the Company monitors raw materials, equipment, process and finishedproducts in accordance with the systematic quality management requirements of production, process, equipment,quality and other departments as supported by multi-department or multi-level cross inspection and management. Inthis way, we can ensure that the safety performance of the products meets the standards and the quality of the
products meets the customer needs.
Acceptance
Inspection
Semi-finishedProductInspection
FinishedProductInspection
Establish acceptancestandards for rawmaterials, and conductpre-stocking tests onthe original materials,such as sodium silicate,sulfuric acid, packagingmaterials and floorboards.
Establish inspectionstandards for semi-
finished products,
and conduct tests on
physical and chemical
indexes (e.g.,appearance, pH,moisture, salt content,etc.) and micro-
organisms.
Establish inspectionstandards for finished
products, release tests
and microbiological
tests for each batch.
Key Initiatives for Quality Control in the Procurement and Production Stages
To ensure that the quality of the products delivered to customers meets and exceeds expectations, the Company has
zero tolerance for quality issues. The Company has invested in establishing a quality department laboratory, utilized
advanced testing instruments, and formulated procedures for the inspection and release of finished products and isequipped with professional physical and chemical and microbiological testing facilities. At present, the laboratory has
obtained CNAS certification (Laboratory Accreditation Certificate of China National Accreditation Service forConformity Assessment). Meanwhile, the laboratory conducts monthly internal blind tests and annual comparative
tests with external professional testing agencies to verify the accuracy and reliability of test results and ensure high
product quality.
CNAS Certificate Laboratory2930
2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
R&D
Innovation
This Chapter Responds to
Material issuesIntellectualPropertyProduct
R&D
SDGs
R&D and innovation is the cornerstone of corporate sustainable development. JSJ
continues to invest in the research and development of silica products in fields such astoothpaste, food and cosmetics, batteries, silicone rubber, and opening agents. TheCompany has formed an international research and development team, strengthenedinnovation incentives and implemented intellectual property protection measures. Byproviding customized and competitive products to customers, JSJ maintains theCompany's leading position in silica product innovation.
Incentive MechanismJSJ has formulated and implemented the Management Measures for Special Incentives for R&D Teams. We clarify the
detailed rules of special incentives and set up 8 awards, including Project Progress Award, New Product Market BenefitAward, Customer Service Award, Patent Application Award, Project Declaration Award, High Quality ProductDeclaration Award, Science and Technology Progress Award, and Process Improvement Award. R&D personnel whohave achieved project goals will be awarded with generous cash rewards to motivate and inspire innovation.
High Quality ProductDeclaration Award
Project ProgressAwardProject DeclarationAward
New Product Market
Benefit
Customer Service
Award
Patent ApplicationAwardScience andTechnology ProgressAward
Process Improvement
Award
Industry Communication
JSJ actively engages in technological collaborations with research institutions, industry associations, and universities.The Company serves as vice chairman and standing director of several industry associations and shares its experience
with peers to promote industry growth. At the same time, JSJ participates in development of industry standards,scientific research projects, industry-academia-research cooperation, industry summit forums, and technical exchange
activities. We share the industry's cutting-edge technology and expertise to further enhance the Company's influence
and competitiveness.
No
.
Industry
Associations (Part)
Role
| 1 | China |
Oral Care Industry Association
th vice chairman unit
Standing
director unit
| 2 | Guangdong |
Cleaner Production Association
th anniversary honorary member
| 3 | Guangdong |
IP Protection Association
th director unit
Certificate and Plaque of China Oral Care Industry Association
3334
R&D SystemR&D CapabilityJSJ adheres to independent research and development, establishes an international research center, and sets up amulti-level, large-scale, self-developed, and efficient research team. JSJ continuously iterates products andtechnologies to quickly respond to market demand and provide customized solutions for customers. At the same time,the laboratory is equipped with sufficient advanced analytical instruments and equipment, and the R&D laboratory ofthe second factory of JSJ intelligent factory can accommodate 100 people simultaneously for doing experiments. As atDecember 31, 2023, the Company had a total of 63 R&D and technical personnels, accounting for 22.99% of the total
number of employees.The Company has successively won honors such as "Guangdong Province Innovation Method Promotion and
Application Demonstration Cultivation Enterprise" and “High-tech Enterprise”. The Company has several provincial
and municipal R&D platforms, including Guangdong Provincial Level Enterprise Technology Center, GuangdongEngineering Technology Research Center for Functional Silica, Guangdong Model Worker and Talented Craftsperson
Innovation Studio and Zhaoqing Engineering Technology Research Center for Functional Silica. In 2023, the Companyinvested RMB 17,103,521.37 in scientific research and technology.After years of development, the JSJ R&D Center has formed a complete set of functions:
?Assist the Company in formulating product development strategies, collaborate with the market center to developproduct strategies, conduct preliminary research on future product trends, be responsible for product research and
development, and develop new products;?Manage and improve technical processes, reduce the cost of mature products and stabilize product quality;?Communicate with customers about product standards in early stages, verify testing methods, and convert them
to internal company operations;?Provide customers with technical support and resolve technical issues encountered during customer’s use of
products;?Apply for technology development projects and technology invention awards funded by governments at all levels;?Collaborate with universities and inspection agencies to develop products.
The JSJ R&D Center has provincial-level or municipal R&D platforms listed below:
Provincial Level
?Guangdong Engineering Technology ResearchCenter for Functional Silica
?Guangdong Provincial Level EnterpriseTechnology Center
?Guangdong Province Innovation MethodPromotion and Application Demonstration
Cultivation Enterprise
?Guangdong Model Worker and TalentedCraftsperson Innovation Studio
City Level?Zhaoqing Engineering Technology ResearchCenter for Functional Silica?Zhaoqing Model Worker and Talented
Craftsperson Innovation Studio
Plaque of Guangdong CleanerProduction Association
Guangdong IP Protection Association
Participating in Setting Industry Standards
JSJ widely participates in the formulation of industry standards to promote the common development of the
profession and industry.?Participated in the compilation of the National Standard of the People’s Republic of China for Testing Method ofthe Abrasivity Value of Toothpastes (GB/T35832-2018), which provides methods and comparative standards fordetermining the abrasivity value of toothpastes in various abrasivity systems;?The Company led the compilation of the Light Industry Standard of the People’s Republic of China for Oral CavityNursing Materials-Silicon Dioxide for Toothpaste (QB/T2346-2015), which provides the industry with reference tothe classification, requirements, test methods, inspection rules, labeling, packaging, transportation, storage andexpiration date of silicon dioxide for toothpaste, to promote the standard development of the industry.?The Company participated in the compilation of a group standard called Oral Cleaning and Care Products - Silica
for Toothpaste with Dentin Tubule Sealing Function （T/COCIA 22-2023）. The standard clarifies the unified
operation process of sealing dentin tubules by silica and toothpaste with silica and provides reference for testingand evaluation methods of sealing performance (or sealing rate) of toothpaste with silica on dentin tubules.
National Standard, Industry Standard and Group Standard that JSJ Participated in Formulating (Examples)
Industry-academia-research CooperationJSJ and South China University of Technology (SCUT) have established a long-term and stable relationship of industry-academia-research cooperation. By integrating talent advantages of universities with JSJ's industry experience, we aimto jointly promote the innovative development of silica technology. As at December 31, 2023, the cooperation had
incubated 1 paper and 4 patents related to silica microsphere preparation methods and other related patents in total.
Industry-academia-research Cooperation
Industry Communication Activities
The Company actively participates in industry exchange activities and discusses silicon dioxide technology with
industry experts from different perspectives such as technological breakthroughs and prospects, and works with peersto enhance the overall competitiveness of the industry.
Case - Sharing of Experience on Digital Plant Construction and Toothpaste Filing Seminar
In December 2023, the Standing Director Meeting of ChinaOral Care Industry Association was held in Zhaoqing. In the
meeting, JSJ shared the experience on the Digital PlantConstruction at JSJ with the attendees. After the meeting,
the present representatives of toothpaste producers held atoothpaste filing seminar and discussed the simplified
toothpaste filing procedures and related problems in a
detailed and animated way. They also visited theCompany’s digital plant. This activity is an opportunity forin-depth exchanges between the Company and industrialpeers to promote the sustainable and healthy development
of the industry.
Toothpaste Filing Seminar
3536
Innovation Products
Continuously launching innovative products to meet market demands has always been the pursuit of JSJ. TheCompany is experienced in the fields of toothpaste silica, food, medicine and cosmetics silica, high-end industrial silicaand others, continuously launching innovative products that have won recognition from customers and the market,
establishing a good reputation for the Company.
Toothpaste Innovation Products
ORASIL ? 715 Highly Dispersed Silica
ORASIL ? 715 is a highly dispersed silica for oral care with high whiteness and uniform particle size distribution. Due
to the special production process, ORASIL ? 715 is easy to disperse in toothpaste. The paste is delicate, the taste isexcellent, and the foam has a good texture; It has good compatibility with fragrance, fluoride and other toothpastecomponents.
ORASIL?709 Anti-sensitive SilicaORASIL?709 is an anti-sensitive silica used in oral care, with multiple effects such as low wear, high cleaning, anti-sensitivity and whitening. It can block dentin tubules by silica particles and relieve tooth hypersensitivity in a safe andeffective manner. At the same time, it has high fluorine compatibility and can be widely used in toothpastes with othercomponents. The product won the honorary title of Guangdong Famous High-tech Products, and set an example forthe development of new products of silica for oral care.
Guangdong Famous High-tech Products Recognition Notice
Core-shell Type ORASIL?755ORASIL?755 is a core-shell structure of silica for oral care. The core-shell structure endows it with water absorption,thickening and friction cleaning performance, high cleaning and low wear performance, and high transparency. At the
same time, it has high fluorine compatibility and can be widely used in various fluoride toothpastes. The product haswon the honorary title of Guangdong Famous High-tech Products, while the product-related patented technologywon the twenty-third China Patent Excellence Award.
Guangdong Famous High-tech Products
Recognition Announcement
Twenty-third China PatentExcellence AwardInnovative Products for Food, Medicine and Cosmetics
Food additive FOMESIL?267FOMESIL?267 is a superfine anti-caking agent and glidant. It has high whiteness and loose structure, promotes free-flow effect of host particles and can effectively prevent aggregation and agglomeration. It can be used in food,medicine, etc.
Silica Products for Silicone Rubber BACOSIL?C258
BACOSIL?C258 is a product applied to the manufacture of silicone rubber with low water absorption, high
transparency, high resilience, high-strength reinforcement, and tensile whitening recovery.
Innovative Products for High-end industrial use
3738
Intellectual Property Rights Protection
In order to continuously ensure the innovation capability of the Company, we strictly abide by the Patent Law of thePeople's Republic of China, the Trademark Law of the People's Republic of China and other laws and regulations. Wehave formulated and implemented special policies for property protection such as the Intellectual PropertyManagement Manual, the Patent Management System, the Management Measures for Intellectual Property Rewardsand Punishments and the Confidentiality Management System to further clarify the trademark application process,patient application process and other related content. During the reporting period, the Company had a total of 0intellectual property infringement lawsuits. At the same time, the Company provides intellectual property training forits employees, to continuously enhance their awareness of IP protection and safeguard the Company's legitimaterights and interests in accordance with the law.Case - Special Training on Patent TechnologyIn January 2024, the Company invited engineers frompatent organizations to carry out a training for R&Dpersonnel, which covers patent search, technologydisclosure form and technology mining sessions. Thepurpose of the training is to improve the patent search and
writing skills of R&D personnel, further answer their
questions about patent protection, and enhance their
awareness of intellectual property protection.
Special Training for Patented Technology
As at December 31, 2023, JSJ has obtained a total of 130 national patents, including 54 invention patents related tosilica for toothpaste, 22 invention patents for high-end industrial silica (applications such as silicone rubber and
batteries), 20 invention patents for silica for food and medicine, and 2 invention patents for manufacturing equipment.
3940
2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Collaborate
to Win
This Chapter Responds to
Material issuesSupply chain
managementProtectingcustomers’ rights
SDGs
Public welfare
JSJ adheres to the principle of “first-class quality, customer first, pragmatism and honesty,
win-win cooperation” and endeavors to establish solid cooperation with customers andsuppliers. We try our best to provide attentive service. Meanwhile, JSJ continues tostrengthen suppliers’ management and actively promotes suppliers’ fulfillment ofenvironmental and social responsibilities to create a sustainable supply chain. In addition,JSJ actively participates in public welfare and charitable activities and convey positivevalues to the society.
Customer Service
JSJ adheres to the service concept of "customer first, pursuit of excellence" to provide customers with high-qualityservices. Moreover, JSJ concerns about customer complaints and feedback, actively meets their demands, continuously
implements responsible marketing, and strives to protect their rights and interests to enhance customer satisfaction.
Responding to Customers' NeedsCustomers’ satisfaction and trust are important cornerstones for JSJ’s growth. JSJ has a keen eye for understandingand responding to customized product needs. We provide comprehensive and customized solutions to create valuefor our customers.Through unremitting efforts in product R&D and optimization of production technology process, JSJ, with advancedtechnology, high-quality products and customized service, has established stable cooperation relationship with
domestic and overseas famous toothpaste brand, forming unique customer advantages.
?Collect customer demands and opinions through customer feedback forms, online surveys, customer initiatives,etc.;?Categorize and analyze the demands and opinions to further understand customer concerns and requirements
after the collection;?Develop rapid response strategies to ensure prompt feedback and action on customer demands based on theanalysis results;?Continuously monitor and evaluate customer feedback and response to improve the relevant strategies in atimely manner.Customer Complaint Handling
To safeguard customers' rights, JSJ highly values customer complaint management. We have formulated andimplemented the Customer Complaint Handling Regulations, to standardize the handling process, and constantlyimprove the after-sales service. The Company provides multiple channels for customer complaints to comprehensivelyand deeply understand customer needs and feedback, so that the Company can adjust business strategies accordingly
in time.And meanwhile, standardized procedures are in place for handling customer complaints. We analyze the cause with
high efficiency, develop targeted solution, and strive to provide the customer with satisfactory feedback,demonstrating the Company's sincerity and efforts.
?System guarantee: We continuously improve the Customer Complaint Handling Regulations, clarifying various
complaint handling standards and assessment mechanisms, and optimizing customer complaint handling
experience.?Channel guarantee: We set up multiple complaint channels for customers, including but not limited to
telephone hotline, email, online customer services, satisfaction surveys and online/offline meetings, to ensure
that customer comments and suggestions are timely and effectively handled.
Enhancing Customer SatisfactionJSJ complies with the legitimate rights of customers, prioritizes customer satisfaction and continues to improvecustomer experience. In 2023, regular customer satisfaction surveys, questionnaires and telephone interviews wereconducted to collect customers' comments and opinions on our products, services and sales experience. Productquality, on-time delivery, after-sales service and others are included in the surveys to fully understand customer
complaints and formulate improvement plans. We value every opinion and suggestion from customers. The survey
results, in turn, provide us insights to constantly optimize products and services to meet customer expectations.In addition, we have established a customer care system, and organized customer service trainings to comprehensivelyimprove service capability and customer satisfaction.
Establishing a Customer Care SystemTo express our care and gratitude, and further strengthen customers' sense
of belonging, the Company has reinforced connections with customers invarious ways, for instance, regular return visits, birthday wishes and holiday
greetings.Organizing Customer Service TrainingsThe Company provides specific trainings for employees such as
communication skills, problem-solving ability and emotion management, to
effectively improve their service levels and better respond to customer
demands.
?Process guarantee: The Company has established standardized procedures for handling customer complaintswith a closed-loop complaint handling mechanism. Upon receipt of a customer complaint, the marketing centercontacts the customer within 24 hours to understand the complaint content and customer’s needs for theaccurate communication. At the same time, relevant departments of the Company promptly conduct internalinvestigations, analyze the root causes, and formulate targeted solutions. Thus, we provide satisfactoryfeedback to the customer, and show our sincerity and efforts.?Follow-up guarantee: Upon handling, the Company proactively selects some customers to investigate the
problem solutions, and listens to their feedback on the outcome of the complaints as an important achievementin improving the Company’s service management.
In November 2023, the Company organized
a business etiquette training for employees,covering business image building,professional appearance and grooming,business etiquette norms and
communication skills. This trainingcontributes to business etiquette cultivationfor employees and lifts their communicationquality with customers.
Business Etiquette Training
Case - Business Etiquette Training
4344
Promoting Responsible Marketing
JSJ adheres to responsible marketing and advocates honest advertising and promotion. The Company enters intotransparent and equal sales contracts with customers, clarifies internally responsible marketing requirements andformulates a series of compliance guidelines for promotion. By doing so, we provide customers with complete,accurate, objective and easy-to-understand information, so as to strengthen the controls on marketing compliance,price compliance and operational compliance, and safeguard customers’ rights. The Company takes the followingmain measures to ensure the promotion compliance in marketing:
The Company specifies clear sales terms, requiring compliance in introducing productafeatures, advantages, prices, service commitments, and requiring sales staff not to exaggerate
or mislead customers.
Standardizing
Sales Terms
Dedicated persons are assigned to review the marketing information to ensure the accuracyand authenticity in line with the Advertising Law of the People’s Republic of China.
ReviewingMarketing
Information
To avoid information bias owing to inadequate communication or misunderstanding, theCompany strengthens internal communication for a consistent understanding of productinformation and market operations in different departments.StrengtheningInternalCommunication
The Company regularly organizes trainings of product knowledge, laws and regulations forsales and related employees. In this way, employees can keep pace with product and marketinformation, and be aware of information accuracy and compliance requirements.
OrganizingMarketingTraining
The Company establishes a mechanism to encourage customer feedback if there's anyquestion or opinion about the information accuracy in marketing.
Building Customer
FeedbackMechanism
Building a Responsible Supply Chain
The perfect supply chain system is the strong support for JSJ’s steady development. JSJ integrates green concept
into the whole lifecycle of silica products, and endeavors to achieve the harmonious coexistence with products andenvironment. JSJ strictly abides by the Bidding Law of the People's Republic of China and other laws and regulations.Committed to building a mutually beneficial and win-win cooperation with suppliers, the Company has formulatedand implemented the Supplier Selection and Evaluation Control Procedures, the Procurement Management
Regulations, and the Procurement Inquiry and Quotation Management Regulations. This move aims to continuouslystandardize the whole process of supplier selection, evaluation and elimination, focus on supplier ESG performanceand create a green value chain.
In supplier identification and on-boarding stage, reviews and monthly audits and ratings are conducted from such
dimensions as product quality, compliance, delivery capability, environmental protection and safety, and price.Suppliers with scores below 90 are required to make rectification. At the beginning of each year, the Company willcollect the evaluation results of last year and classify suppliers into four levels from A to D:
JSJ has established a firm elimination mechanism for suppliers based on the assessment results. And JSJ regularly
conducts audits at suppliers' factories. Those falling into the following situations will be disqualified as a supplier toreduce supplier chain risks: A-level suppliers scored below 65 points for two consecutive months, A- and B-levelsuppliers reclassified as D-level in annual assessment, C-level suppliers assessed as unqualified for 3 times last year,and D-level suppliers be complained by customers for 3 times last year.
Supplier ESG Evaluation
JSJ attaches importance to supplier ESG performance, actively promotes ESG management principles to suppliers, and
drives the development of the supply chain on a greener and more sustainable path. We give preference to supplierswho have obtained the ISO 14001 environmental management system. All suppliers are explicitly required to complywith state and local environmental protection laws and are encouraged to adopt energy-saving and emission-reduction production methods to produce products with standard recyclables.JSJ carries out inspections on its potential suppliers including product quality, production safety, environmental
impact, labor compliance and transparent procurement:
?Core suppliers are required to provide such certificates as ISO 9001 Quality ManagementSystem, ISO 14001 Environmental Management System, ISO 45001 Occupational Health and
Safety Management System, and ISO 22000 Food Safety Management System to ensuredelivery of high-quality, eco-friendly and safe products and services.
Overallrequirements
Supplier On-boarding, Evaluation and EliminationJSJ attaches great importance to create a sustainable supply chain system, and sternly implements themanagement process in all aspects of supplier sourcing, on-boarding, evaluation, elimination,
communication and exchange. We ensure the closed-loop management of supply chain and identifyqualified suppliers to improve its security and stability.
Supplier On-boarding Process
4546
Sourcingand
informationcollecting
Preliminaryreview
Sampletesting
On-siteaudit
Small-batch trial
Signing acontract
?90-100 pointsA-level
?80-89 pointsB-level
?65-80 pointsC-level
?Below 65 pointsD-level
?The Product Quality Assurance Agreement shall be signed with suppliers who provide rawand auxiliary materials products and services. Suppliers are required to commit that theamount of hazardous substances of their products provided comply with the requirements ofthe EU ROHS Directive. Physical, chemical, and biological pollution are avoided duringtransportation to uphold the product quality; strict controls are implemented throughoutproduction, processing and transportation stages to prevent intentional damage andpollution; and packaging materials are required to be non-toxic, non-hazardous and non-
irritating.?We audit the whole process of material suppliers’ factory, including raw material control,production, warehousing and process control, and rate their quality assurance capabilityusing risk evaluation method. Suppliers with significant risks in the on-site audit report willfail the audit, so as to ensure the quality and safety of supply.
Quality andsafety
requirements
?The Supplier Environmental Agreement shall be signed with core suppliers. Suppliers are
required to strengthen environmental protection, including but not limited to: the raw
materials for production must comply with the relevant environmental protection laws and
regulations of the state, local and industry; priorities shall be given to adopting non-pollution
or low-pollution production processes and equipment, and national or local prohibited
production processes or equipment are prohibited; active measures shall be taken to control
excessive pollutants (waste water, waste gas, solid waste, noise, etc.) emitted during
production, while realistic plans shall be formulated to meet national or local emission
standards within the stipulated period; recyclable packaging materials are prioritized to avoid
waste of resources; the operation environment shall be prevented from being polluted due
to dripping and leaking; and the emission of waste gas, noise, and flushing of waste water
from transportation used must comply with relevant laws and regulations.
Environmental
requirements
?The following social responsibilities that suppliers shall fulfill are specified in the Procurement
Contract: Suppliers are prohibited from using child labor and forced labor and conducting
human trafficking, comply with rules with regarding to working hours and remuneration, and
purchase social insurance for all employees. The products supplied must be manufactured in
compliance with principles of environmental protection and occupational health and safety
to ensure employees far away from threats on health and safety problems.
Labor
compliance
requirements
?In cooperation with suppliers, the Company firmly implements the principle of integrity,
promotes transparent procurement, ensures fairness, transparency and efficiency in the
relationship. JSJ has entered into an integrity agreement and related terms with all core
suppliers to constrain them. Suppliers are required to establish an internal anti-corruption
compliance management system, to strictly regulate the behaviors of their employees and
prohibit behaviors including corruption, unfair competition, bribery fraud or other corruption
offenses. In addition, we also encourage suppliers and related third party personnel to report
to us.
Transparent
procurementrequirements
Supply Chain Risk ResponseJSJ conducts all-round risk analysis on potential risks in the supply chain, and formulates warning mechanisms andcomprehensive risk prevention and control systems for risks such as supply chain quality, capacity, delivery and ESG.The Company endeavors to create a green and stable supply chain by considering factors affecting the stability ofsupply chain, such as price volatility of raw materials, geopolitical issues, shipping risks and climate change. And at the
same time, we strictly screen qualified suppliers and improve logistics system , which shortens the procurement cycle
and improves logistics efficiency in order to ensure timely delivery of products.
Contribution to Public Welfare
JSJ proactively fulfills social responsibilities and actively participates in public welfare activities to give back to the
society. In recent years, the Company has actively responded to the national calls of promoting priority developmentand the modernization of agriculture and rural areas. We try to solve the difficulties encountered by low-income ruralpopulation through enterprise efforts and join Heart-to-Heart Charity for Orphan Assistance and Poverty Alleviation inHuaiji County, Zhaoqing City to support rural revitalization. Efforts were made in charitable donations, supporting
orphans and relieving poverty, and empowering vulnerable groups in society. In contribution to the harmoniousdevelopment of the society, the Company also witnesses a positive interaction with the community. In the past three
years, external donations registered RMB 164,600.
During this year, JSJ donated to the Heart-to-Heart Charity for Orphan Assistance and PovertyAlleviation in Huaiji County, Zhaoqing City, warming and caring for those poor families. In September2023, the Charity sent a plaque of “Good Deeds and Great Virtue” to JSJ, which highly recognizedJSJ’s long-term contributions to charity and society.
Plaque of Good Deeds and Great Virtue
Case - Charitable Donations and Visit of Poor Family
Visit of Poor Family
In April 2023, JSJ participated in the themeactivity of “Green and Beautiful Zhaoqing- APrivate Enterprise Reforestation Project”organized by Zhaoqing Federation of Industry
& Commerce. During the activity, JSJ donatedRMB 9,000 for voluntary seedling planting,contributing to the green development ofZhaoqing. In the future, JSJ will shoulder oursocial responsibilities and thoroughlyimplement President Xi Jinping’s thoughts onecological civilization to participate in
afforestation activities and realize theconstruction of a beautiful China.
Donation Certificate
Case - Voluntary Seedling Planting Donations for Private Enterprise Reforestation Project
4748
Green
Development
This Chapter Responds to
Material issuesEnergy managementGreen operation
SDGs
Sticking to green development, the Company diligently pursues a balance between business growthand environmental protection, strives vigorously to achieve a win-win development of economic andecological benefits. We place a high value on environmental management and make unremitting
efforts to enhance management over waste water, waste gas, waste and energy, so as to tightly controlthe impact of production on environment. JSJ advocates green production and green products, andunceasingly optimizes production technology. In daily operation, we practice resources conservationand improve energy efficiency to push forward the construction of green factory. Moreover, in responseto the carbon peaking and carbon neutrality goals, JSJ spares no efforts to promote the use of cleanenergy and respond to climate change, contributing to boost the development of ecological civilization.
Emissions managementClimate change
Environmental ManagementJSJ strictly adheres to national and local laws and regulations, for instance, the Environmental Protection Law of thePeople's Republic of China, the Energy Conservation Law of the People's Republic of China, the Water PollutionPrevention and Control Law of the People's Republic of China, the Law of the People's Republic of China on thePrevention and Control of Environmental Pollution by Solid Wastes, the Regulation of Guangdong Province on
Environmental Protection and the Measures for the Prevention and Control on Air Pollution in the Pearl River Delta ofGuangdong Province. We've also developed and implemented a series of internal systems, such as the Waste WaterManagement Regulations, the Waste Management Regulations, the Waste Gas Management Regulations, the
Environmental Control Procedures for Organizations, the Control Procedures to Evaluate and Identify Environmental
Factors and the Control Procedures over Environmental Operation. These systems clarify treatment standards and
procedures for wastewater, waste and waste gas, and are indispensable in improving the environmental management
system. During the reporting period, we were not subject to any penalties or fines due to environmental pollution.
The First factory and the intelligent factory (the second factory) of JSJ have obtained ISO 14001 environmentalmanagement system certification for their advanced, stringent, and perfect environmental management models.
Environmental Management System Certification
?The Company has built a sewage treatment system, and installed automatic onlinemonitoring equipment at the industrial waste water discharge outlets. These equipment
are connected to the network of provincial and municipal ecological environment bureaus,
to achieve real-time monitoring and ensure meeting sewage discharge standards.?The Company also entrusts a third-party service company for daily operation,
maintenance and management. Replying on the rich treatment technology and experience,
the service company adopts a combined treatment technology to ensure that the sewage
discharged meets the standards.
Sewage Control
?The Company has defined emission standards for waste gas, dust and pollutants, and
engaged qualified institutions to monitor various emission indicators of waste gas and
dust.?In the factory, the dust volume is under strict control. We have installed bag filters in the
dust-generating production process to collect the dust, and monitor the running status
online.?The Company lays emphasis on preventive control to identify potential risks in advance
and ensure smooth operation of these measures.
Waste Gas
Control
?The Company implements earnestly the Waste Management Regulations, standardizes the
management of hazardous waste in classification, identification, registration, storage and
transportation. We have engaged qualified third-party organizations to clean and treat
this hazardous waste in accordance with relevant provisions.Waste Control
?The Company has formulated and implemented the Energy Management Manual, to
clarify the requirements of energy management system, energy review, energy
performance parameters and energy benchmarks. A dedicated team for energy
management system is formed to push forward standard and normal management in
energy conservation and consumption reduction.?Relying on the "Energy Management Platform", the Company can achieve refined energy
management and improve energy use efficiency.EnergyManagement
Green FactoryWith the core idea of "building a five-star hotel-style factory", JSJ introduces the high-standard service concept andmanagement mode into the industrial production, strengthens the green product design, upgrades the green
production process, and promotes the construction of green factory and intelligent manufacture, so as to
comprehensively and steadily improve the factory environment, production processes and product quality. Through
the measures of waste heat recovery, steam recovery, and water conservation in the building of green factory, we have
realized energy saving, and emission reduction, and maximized the use of waste resources. In the future, the Companywill make unceasing efforts to conserve energy and resource, promote the construction of green factory, andcontribute to the protection of ecological environment.
Under the waste heat recovery program and optimization of technical formula, the Company
can effectively reduce the consumption of natural gas and steam to reduce energyconsumption and carbon emission.Waste HeatRecovery
On account of added steam recovery devices and improved liquefaction process, the
Company can recover and recycle partial steam. This improvement contributes to improveenergy efficiency, and reduce energy consumption in the production process as well.
Steam Recovery
The Company has achieved water conservation through various measures, such as recyclingof liquefied hot water and filter pressing water, taking advantage of scrubber to clean floorand installing induction faucet for hand sinks. In 2023, the Company was recognized as the"Provincial Water Saving Benchmark Enterprise" in Guangdong Province.
Water SavingBenchmark5152
In addition, the Company strenuously promotes lean production and devotes to creating a clean, orderly, efficient, and
safe working and production environment. 5S (Seiri, Seiton, Seiso, Seiketsu and Shitsuke) program is introducedcompany wide. Under this program, a comprehensive 5S promotion plan is enacted, to make sure that 5S activities are
advanced and completed.
5sProgramMoreover, the Company has established a system for reasonable suggestion and defective manufacturing procedures.In order to quickly discover and solve problem, the Company introduces positive incentives and activities toencourage employees to put forward suggestions and identify defective manufacturing procedures, providing endlesspower to improve the factory environment and standardize production site.Green Product
Adhering to the concept of green development, the Company achieves the reduction of carbon and cost by productecological design and assessment of product carbon footprint. At the same time, JSJ has achieved the goal of "zero
solid waste emissions" through solid waste recycling. In the production process, we practice the best to conserve
packaging consumables, and actively undertake the environmental responsibility of product production.
?Our factories apply the concept of ecological design in the product design to meet the
requirements for green products (eco-design products) in the Green Factory Evaluation
Requirements. Our factories also conduct eco-design product assessment based on the
lifecycle to our products in accordance with the General Principles for Eco-design Product
Assessment (GB/T 32161-2015), and prepare the Report on Eco-design Product
Assessment of Jinsanjiang (Zhaoqing) Silicon Materials Company Limited to instruct theproduct design.Product
Ecological
Design
?We design ecological products, incorporate the concepts of energy saving, low-carbon,
water and material saving, environmental protection, evaluate carbon footprint in the
product life cycle, and put forward the path of carbon and cost reduction. The Company
actively participates in carbon reduction actions, and leads the thought of low-carbon
reform and green development driven by innovation. In accordance with the
Environmental Management - Life Cycle Evaluation – Requirements and Guidelines (ISO14044:2006) and other standards, our factories carry out the quantification and
verification of product carbon footprint.
Verification of
Product Carbon
Footprint
?We have set a target of "zero solid waste" emissions. To achieve this goal, solid waste
generated in production are made into industrial grade silica products. These products arewidely applied to fire extinguishers, refractory bricks and heat insulation materials,realizing 100% solid waste treatment, "zero solid waste" emissions, and resource recycling.Utilization of
Industrial SolidWaste for
Production
?In raw material procurement and transportation, we try to reduce the use of disposable
packaging materials as far as possible.-In 2023, the Company achieved the unpackaging of bulk sodium silicate, reduced wastes generated
therefrom and realized more convenient and efficient production, transportation and utilization.
According to statistics, the Company saved a total of 16,001 tons of bags after implementing the
unpackaging of bulk sodium silicate.-The Company recycles pallets used in transit of finished products. This contributes to relieve thewaste disposal pressure for customers, and helps to achieve effective resource recycling and reducenegative environmental impacts.
Packaging
Material Saving
Contributing to the Dual Carbon Goals
Climate change is a topic of wide concern to the international community. JSJ actively responds to the national
“carbon peaking and carbon neutrality” goals and introduces carbon reduction measures to address climate changewith full efforts. Driven by the national "dual carbon" goals, JSJ has successfully lowered energy consumption throughproject transformation. We also purchase green electricity, make full use of photovoltaic power, and raise theutilization rate of clean energy to reduce carbon footprint with all strength.
In response to climate change, JSJ follows the Emergency Response Law of the People's Republic of China, and has
formulated and implemented internal systems like the Emergency Preparedness and Response Control Procedures
and the Emergency Management System. In these systems, the Company incorporates solutions for natural disasters
into emergency plans for environmental emergencies, including meteorological disasters, earthquake disasters,
geological disasters and marine disasters.To further mitigate the impact of global climate change and enhance resilience to climate risks, JSJ will continue to
reinforce investment and devote greater efforts in photovoltaic power generation and other renewable energy sourcesin the future.
Photovoltaic power generation is one of theimportant approaches to achieve low-carbon development. This is in line withJSJ's pursuit of green development andenvironmental protection. In order to make
the most of solar energy resources, JSJ has
installed a large number of photovoltaic
panels in the factory. These panels can
convert solar energy into electricity andprovide stable and clean power to the
factory. Photovoltaic power generationenables JSJ to lower dependence ontraditional energy, reduce carbon emissions
and environmental pollution, andincorporate green energy into own growth.
As of 2023, the installed capacity of
photovoltaic power generation equipmentin the factory reached 1,972.35 kW.
Photovoltaic Panels Installed in the Factory
Photovoltaic Power Generation Lowers Carbon Emission
5354
Employee
Wellbeing
This Chapter Responds to
Material issues
Emplyees’ rights
and interestsEmplyees’ safety
SDGs
We attach great importance to the well-being of employees, and are dedicated to
creating a fair, equal, and inclusive workplace. In compliance with stipulations regardingemployment, the Company provides competitive salaries and benefits, steadilydevelops the talent training system, and accelerates the mutual development of theCompany and employees. Efforts are also made to improve staff care. We'veestablished smooth communication channels, and pay close attention to their physical
and mental health, in a bid to enhance their sense of belonging and happiness.
Care for employeesEmplyee Development
Compliance in Employment
Recruitment Management
JSJ follows closely to the Labor Law of the People's Republic of China, the Law of the People's Republic of China onEmployment Contracts, the Provisions on Prohibition of Child Labor and other relevant laws and regulations. We
have developed and implemented the Recruitment Management System to specify the recruitment process,requirements and channels. JSJ upholds the recruitment principles of "being open and transparent and competingon an equal footing ". We resolutely eliminate discrimination on gender, age, race, nationality, religious beliefs, or
other social and personal factors, and provide all employees and candidates with equal job opportunities inaccordance with the law.
Equal employment
The Company has established a talent pool and conducts regular human resource analysis annually to providetalents for its business lines. We also offer training, internal competition and position transfer opportunities foremployees whose positions are not suitable.
Talent layout
In line with the Provisions on Prohibition of Child Labor and other related laws and regulations, the Company hasdeveloped stringent procedures to review candidates' identity documents in recruitment, standing firm againstemployment of child labor. During the reporting period, we had no violations involving child labor or forced labor.
Child labor
Contracts with employees are all concluded under the principle of free will. The work site, working hours,
remuneration, overtime regulations and other information are detailed therein to prevent forced labor. TheCompany will never force employees to work overtime. Employees who work overtime can receive corresponding
remuneration or take working days off.
Forced labor
The Company determines the recruitment demands every year in the light of business development. Throughexternal and internal recruitment channels, we can identify outstanding talents to fuel the business development ofthe Company.?External recruitment: job search websites, job fairs, campus recruitment, release of recruitment information on
media, industry exchanges and head-hunter recommendation.?Internal recruitment: internal recruitment, internal promotion, lateral transfer, job rotation, internal competitionand others.
Diverse recruitment channels
Strict recruitment process
?Review the positionrequirements without anydiscrimination, including
gender, age, race, nationality,
and religious beliefs?Clearly state job content,
location, remuneration and
working hours of the position
Position release
?Review age to avoid childlabor?Review competitive restriction
of the candidate?Review work experience
CVreview
?HR interview: Understand the
candidate's basic information,work plans, and values?Professional interview:
Understand the professional
skills of the candidate
Interview
?OFFER is released after level-by-level approvals to ensurethe accuracy
OFFERapproval
?Negotiate with the employee and sign documents including labor
contract, confidentiality agreement, and integrity commitment?Introduce company system and department structure?Offer office supplies
Contract signing and on-boarding
Remuneration and Benefits
JSJ has developed and implemented the Salary Management System to improve the salary and welfaremanagement. Competitive salaries and a diversified benefit system are provided for employees among the global
market to enhance employee happiness.Employee remuneration includes fixed salary and floating salary. The fixed salary includes base salary, positionsalary, position subsidy, skill salary and high temperature allowance. The floating salary includes annualperformance bonus, monthly performance salary and sales commissions. We also have a complete salaryadjustment system. Employees are assured of fair and timely rewards. In this way, we can further enhance the
cohesion and efficiency in the Company.
Remuneration Management
JSJ values the work-life balance and is committed to the well-being of employees. In addition to national statutory
holidays, the Company also offers various paid leaves, for instance, annual leave, marriage leave, maternity leave,abortion leave, antenatal leave, feeding leave, paternity leave, compassionate leave, and others.
Holiday Management
5758
At JSJ, we focus on enhancing employee happiness and provide comprehensive welfare benefits. In addition to thefive social insurances and one housing fund, we also provide annual physical examinations, special type of work-
related health checks, birthday celebrations, family visit subsidies, holiday gifts, starting work red packets, free
factory uniforms, labor protection supplies, summer cooling supplies, high-temperature subsidies, meal subsidies,
employee dormitories and other benefits.
Employee Benefits
Socialinsuranceand housingfunds
Variousphysicalexaminations
Festival/Birthday gifts
Family visitsubsidies
Laborprotection
supplies
Free foodand
accommodat
-ion
Partial Benefit Types
New Year’s GiftsNew Year’s Red PacketTeam Building Activity
Staff CanteenStaff GymStaff Dormitories
Talent Development
Encouraging employee growth Talent Pool Cultivation andPromotion
Adhering to the original intention of growing together with our employees, we provide diversified developmentchannels and targeted training system for them, and make our talent team stronger. For the sake of encouragingself-improvement, JSJ has established and implemented a series of internal systems, for instance, the Management
System Regarding Position, Grade and Personnel Changes and the Key Talent Development Management System.
These sustained efforts propel the talent pool construction and promote scientific trainings for talents.
Encouraging employee growth
To provide employees with broad career development, the Company has conducted targeted training for differentemployees, and classified positions into five categories: M, S, P, A, and O to meet employees’ developmentrequirements. For different types of positions, the Company has defined clear promotion path to promote talent
cultivation and accelerate talent development.
In 2023, an all staff in-depth talent review was proceeded to select and develop talents. In the review, abilities andperformance top the list. A 9-box grid model is adopted to detail the classification and evaluation for employees.
This review further clarifies the standards to select and employ qualified candidates, establishes a scientific and
systematic talent evaluation system, and provides a reference to select appropriate management staff in the future.
Talent development system
?Primarily engaged inpersonnel management
）Management staff (M
Category)
?Engaged in sales-related workSales staff (S Category)
?Mainly assist others tocomplete work orindependently complete
operational tasks
Administrative/Office
support/Civilian staff (A
category)
?Mainly engaged inoperational tasks, for instance,
operating tools, equipment,
instruments
Operating staff (O category)
?Engaged in work for which a specific technique is required to designand improve solution to problem
?Or engaged in work for which a specific professional knowledge or
skill is required to provide support or services
Technical/Professional staff (P Category)
JSJ attaches importance to the cultivation of key talents. We have formulated detailed process for key talentdevelopment, to enhance employees’ overall quality and the Company’s competitiveness.
Key talent development process
Key Talent Development Process
Talentreview
Select
proper
candidates
Develop
training
plans
Implement
training
plans
Capability
assessment
Build atalent poolClarify keypositions
andqualificatio
-ns
5960
?Each business department formulates an annual training plan based on specific business
characteristics. The training will integrate classroom questioning, written examination, on-
site practical exercises and other forms of evaluation. Upon the training, incentive rewards
will be granted to employees who pass the assessment.BusinessDepartment
Training
?We adhere to the principle of "Training before starting a new job". Newly hired employees
are required to participate in trainings organized by the Company and the department,
along with those specific to the positions. Those trained new joiners will be equipped with
necessary technical skills and professional knowledge.On-boardingTraining forNew Hires
?For some employees, the Company may also organize external training of professional
knowledge or skills. External training: continuing education, skill certification, training for
skill certification of special type of work, etc.External
Training
?The Company provides promotion training to help employees better adapt to changes
and challenges arising from new positions.Promotion
Training
Employee Training
JSJ regards talent training as an important organizational strategy and has established a talent training system
covering production, technical, and management personnel. This move aims to create a "learning organization" thatcan continuously cultivate outstanding talents with both virtues and abilities for the Company, thus achieving
simultaneous enhancement of employees’ ability and organizational performance.And at the same time, we established the internal instructor training system and encourage employees to participantin this training. Driven by the prospect of knowledge management and sharing, these instructors share newinformation, knowledge, skills and work experience to employees. Recertification is required every year to maintain an
appropriate instructor team for business development, and introduce new vitality into the training system.
In November 2023, the Company organizedon-boarding training for new hires, covering
Company introduction, managementsystems, safety education, etc. This training
plays as a booster for new employees tounderstand the Company's organizational
structure and culture, and quickly adapt to anew work environment.
On-boarding Training
Case - On-boarding Training for New Hires
The Company established JSJ management
training system to provide mangers at
different levels with learning paths andresource. In 2023, the Company held
leadership training for middle and senioremployees to help them improve their work
efficiency.
Leadership Training
Case - Leadership Training
Employee CareFor quick response to employee needs and understanding their voices, we are devoted to diversifyingemployee communication channels to smooth democratic communication, including department
meetings, cross-departmental meetings, employee symposiums, Company WeChat groups, and generalmanager mailbox. Additionally, regular employee satisfaction surveys will be conducted, to encourage
honest feedback and suggestions from employees, and effectively promote interaction and
communication between the Company and the staff.
In April 2023, the Company held an
employee symposium, where management
shared JSJ’s development history,
interacted with new employees, andencouraged them to provide improvementsuggestions. This initiative contributes to
enhance employees’ sense of group honor,
responsibility and belongingness, andintensify internal cohesion and stability.
Employee Symposium
Case - Employee Symposiums
We also value human care and encourage employees to balance work and rest. For this purpose, multiple initiativeswere adopted to enrich their cultural life, guide them to relieve work stress and achieve work-life balance. For instance,we organized employees to participate in sports activities and work resumption after Chinese New Year holiday, heldtraditional holiday celebrations and birthday parties, and provide gymnasiums, reading rooms and entertainmentrooms.
6162
In 2023, the Company organized employees
to participate in the corporate basketballgames held by Dawang High-tech Zone
Basketball Association in Zhaoqing City. Inthe games, our staff enjoyed the pleasure of
sports. This event provided a perfect
opportunity for staff to relax themselves,enhanced mutual understanding and trust,and fostered the valued teamwork spirit.
Case - Participation in Corporate Basketball Games
Basketball Game
At the beginning of the Chinese New Year,all employees were about to resume theirwork. JSJ held the work resumption activityafter Chinese New Year holiday to boostemployees’ morale. This activity included alion dance and the distribution of red
packets for starting operation and Chinese
New Year gifts to send the Company’sgood wishes and cares to our employees.
Employees also fully indulged themselves inthe cheerful and joyful activity.
Case - Work Resumption after Chinese New Year Holiday
Activity Photo
Health and SafetyJSJ always prioritizes employee health and safety, and strictly adheres to laws and regulations, such as the Law of thePeople’s Republic of China on Prevention and Control of Occupational Diseases and the Provisions on the
Administration of Occupational Health at Workplaces. Dedicated to creating a safe and comfortable workingenvironment for employees, the Company has established and implemented the Special Operations Safety
Management System, to continuously strengthen occupational health and safety management. The following keymeasures are adopted to ensure employee health and safety:
?The intelligent factory (the second factory) has completed the effectiveness evaluation of occupational hazard
control, and passed expert review and acceptance. It has also obtained ISO45001 Occupational Health and Safety
Management System certification;
?Organize annual occupational health check for employees;?Post occupational hazard notice at locations where occupational hazards arise;?Install ventilation systems in workshops to address high-temperature hazards;?Conduct annual detecting of occupational hazards at workplace, and provide masks for employees exposed todust, protective masks for employees exposed to acidic and alkaline chemicals;?Strengthen the management of wearing occupational health protective articles, re-identify the access standards ofPPE signboards in various production areas, create uniform PPE signboards, make wearing masks mandatory for allemployees to cultivate a good habit of wearing mask;?Strictly control the food hygiene and safety of the staff canteen, establish a “dietary team”. to regularly inspect
food quality, requires food classification for storage, conducts regular quality inspections of food suppliers,
implements a food sample retention system and other measures to ensure food safety;
?The canteen staff must comply with internal regulations such as the Food Hygiene Management Regulations,
Tableware Washing/Disinfection Management System, Personal Hygiene Management System, Kitchen HygieneManagement Standards, Kitchen Management System, and other related internal regulations, and are required to
provide Health Certificate;
?Provide employees with free labor protection supplies;?Provide employees with occupational safety training.
Safety Training
6364
Appendix
Appendix I GRI Standards Index
GRIDescriptionCorresponding Chapter
The Organization and Its Reporting Practices2-1Company profileAbout JSJ2-2Reporting entityAbout the Report2-3Reporting period, frequency and contact informationAbout the Report2-4Restatements of informationAbout the Report2-6Activities, value chain and other business relationshipsAbout JSJActivities and Employees2-7EmployeesEmployee WellbeingGovernance2-9Governance structure and compositionSustainability Management2-12The role of the highest governance body in oversight and
impact management
Sustainability Management2-13The delegation of impact management responsibilitySustainability Management2-16Communication of critical concernsSustainability ManagementStrategy, Policies and Practices2-22Sustainability strategySustainability Management2-27Compliance with laws and regulationsSustainability ManagementStakeholder Engagement2-29Approach to stakeholder engagementSustainability ManagementMaterial Topics3-1Process of identifying major topicsSustainability Management3-2List of material topicsSustainability Management3-3Material topics managementSustainability Management
GRIDescriptionCorresponding ChapterIndirect Economic Impacts203-2Indirect Economic ImpactsCollaborate to Win
About JSJEnergy302-2Energy consumption outside of the CompanyGreen development
Appendix II Key Performance Data
Sheet302-3Energy intensityGreen Development
Appendix II Key Performance Data
Sheet302-4Reduction of energy consumptionGreen Development302-5Reductions in energy requirements of products and
services
Green DevelopmentWater and Effluents
303-1Interaction between companies and waterGreen Development303-2Management of water discharge-related impactsGreen Development
303-3Water withdrawalGreen Development303-4DrainageGreen Development303-5Water consumptionAppendix II Key Performance Data
Sheet
Emissions305-1Direct (Scope 1) GHG emissionsAppendix II Key Performance Data
Sheet305-2Energy indirect (Scope 2) GHG emissionsAppendix II Key Performance Data
Sheet305-4GHG emissions intensityAppendix II Key Performance Data
SheetWaste306-1Waste generation and significant waste-related impactsGreen Development
306-2Management of significant waste-related impactsGreen Development306-3Waste producedGreen Development
Appendix II Key Performance Data
SheetSupplier Environmental Assessment308-2Negative social impacts in the supply chain and actions
taken
Collaborate to Win
Appendix II Key Performance Data
Sheet6566
GRIDescriptionCorresponding ChapterEmployment
401-1New hires and employee turnoverAppendix II Key Performance
Data Sheet401-2Benefits provided to full-time employees that are
not provided to temporary or part-time employees
Employee WellbeingOccupational Health and Safety403-1Occupational health and safety management
system
Employee Wellbeing
Intelligent Manufacturing403-2Hazard identification, risk assessment, and incident
investigation
Employee Wellbeing
Intelligent Manufacturing403-3Occupational health serviceEmployee Wellbeing
Intelligent Manufacturing403-4Worker participation, consultation, and
communication on occupational health and safety
Employee Wellbeing
Intelligent Manufacturing403-5Worker training on occupational health and safetyEmployee Wellbeing
Intelligent Manufacturing403-6Promote employee’s healthEmployee Wellbeing
Intelligent Manufacturing403-7Prevention and mitigation of occupational health
and safety impacts directly linked by business
relationships
Employee Wellbeing
Intelligent ManufacturingTraining and Education404-2Programs for upgrading employee skills and
transition assistance programs
Employee WellbeingDiversity and Equal Opportunity405-1Diversity of governance bodies and employeesEmployee Wellbeing
Appendix II Key Performance
Data SheetAnti-discrimination
406-1Incidents of discrimination and corrective actions
taken
Employee WellbeingChild Labor
408-1Operations and suppliers at significant risk for
incidents of child labor
Employee Wellbeing
Collaborate to Win
GRIDescriptionCorresponding ChapterForced or Compulsory Labor409-1Operations and suppliers at significant risk for incidents of
forced or compulsory labor
Employee WellbeingCollaborate to WinCustomer Health and Safety416-2Incidents of non-compliance concerning the health and
safety impacts of products and services
Intelligent ManufacturingMarketing and Labelling
417-1Requirements for product and service information and
labelling
Collaborate to Win
Appendix II Key Performance Data SheetEnvironmental PerformanceDisclosure IndicatorsUnitValueGreenhouse Gas EmissionsTotal GHG emissions(Scope 1+ Scope 2)Tonnes of carbon dioxide
equivalent
29,206.36GHG emissions (Scope 1)Tonnes of carbon dioxide
equivalent
13,094.43GHG emissions (Scope 2)Tonnes of carbon dioxide
equivalent
16,111.93WastesNon-hazardous Waste ProducedTonne124.8Water ConsumptionWater Consumptionm
822,968Description of Environmental Key Performance Indicators:
The data collection covers the period from January 1, 2023 to December 31, 2023. The environmental data collection
scope includes production areas, office areas and staff canteens at the Company's two production factories.
1.Total greenhouse gas emissions include both direct and indirect emissions;
2.Direct greenhouse gas emissions arise from the use of pipeline natural gas;
3.Indirect greenhouse gas emissions arise from purchased electricity and steam ;
4.Water consumption refers to the water consumption from government water supply.
6768
Social Performance
Disclosure IndicatorsUnit
Value
EmploymentTotal number of employeesPerson274
By genderMalePerson195
FemalePerson79
By age30 or belowPerson93
31-50Person152
50 and abovePerson29By typeSenior managementPerson14
Middle managementPerson25
EmployeesPerson235By geographical regionChina (including Hong Kong, Macao
and Taiwan)
Person271
Overseas regionsPerson3
By degree of educationMaster’s degreePerson28
Bachelor’s degreePerson58
Associate degree or belowPerson188
Employees Training
Percentage of trained employees to total employees%100
Total hours of trainingHours3,354Suppliers
Total suppliersNumbers274
By geographical regionEastern Region: Beijing Municipality, Tianjin
Municipality, Hebei Province, Shanghai
Municipality, Jiangsu Province, Zhejiang
Province, Fujian Province, Shandong Province,
Guangdong Province, Hainan Province
Numbers253
Central Region: Shanxi Province, Anhui Province,
Jiangxi Province, Henan Province, Hubei
Province, Hunan Province
Numbers14
North-east Region: Liaoning Province, Jilin
Province, Heilongjiang Province
Numbers3
Disclosure IndicatorsUnitValue
By geographical regionWestern Region: Inner Mongolia AutonomousRegion, Guangxi Zhuang Autonomous Region,Chongqing Municipality, Sichuan Province,Guizhou Province, Yunnan Province, TibetAutonomous Region, Shaanxi Province, GansuProvince, Qinghai Province, Ningxia HuiAutonomous Region, Xinjiang UygurAutonomous Region
Numbers4
Public WelfareCumulative total amount of donations in the last three yearsRMB164,600
R&D InnovationAmount of research and development investment in 2023RMB17,103,521.37
Cumulative number of patents grantedNumbers130Number of new patents granted in 2023Numbers16Board of Directors
Number of directorsPerson6Number of female directorsPerson1Percentage of female directors%17
Disclosure IndicatorsUnitValue
RevenueRMB294,402,638.17Net rate of return to parent%11.89Total assetsRMB698,063,027.79Gearing ratio%18.18Basic EPSRMB/share0.15
Economic Performance
6770
Smart Manufacturing
Leading a Greener Future
Tel：+86-758-3681267Email：ir@jsjgcl.comAddress：No. 23, Yingbin Avenue, High-tech Development Zone, Zhaoqing City, Guangdong Province