Long as the journey is, we will reach our destination if
we stay the course; di?cult as the task is, we will get
the job done if we keep working at it.
Light up Spaces for a New Journey
Contents
A Message from ChairmanLit up 2023Milestones in 2023Reliable Products fromTrustworthy BrandUnderstanding HY SOLAR
Independent Veri?cation StatementAppendicesAbout This Report
Embracing SustainableDevelopment Through Diversity
Company OverviewOrganizational StructureCorporate CultureHY SOLAR Six Manufacturing BasesHonors and Awards
Sustainability Management FrameworkStakeholder EngagementMateriality Assessment
Environmental ComplianceEnergy ManagementWater Resource ManagementWaste and Hazardous EmissionsManagementEcological Conservation
Sustainable Supply ChainEmployee RightsHuman Capital DevelopmentOccupational Health and SafetyCommunity and Charity Contributions
Corporate GovernanceRisk ManagementInformation Security ManagementInvestor RelationsCustomer Relationship Management
EnvironmentFriendliness for aCircular EconomyLow-CarbonDevelopment Focusingon Green Mission
Leading the Way inSmart Manufacturingfor More AccessibleClean Energy
CoordinatedCooperation forShared ValueCreation
Strengtheningthe Foundationfor a Long-lastingBusiness
0203
Focus
Feature
A Message from Chairman
A Message fromChairman
Chairman of HONGYUAN GREEN ENERGY CO., LTD.
Yang Jianliang
If continuous innovation is the source of power for HY SOLAR's development, then duty andresponsibility are the spiritual background of HY SOLAR's progress. After 22 years of ups anddowns, in the context of green development becoming the mainstream of the times, HY SOLARhas long regarded ESG as the source of green and low-carbon competitiveness of enterprises.Looking back on 2023, the world economic recovery has been full of di?culties and geopoliticalturmoil, driving the global energy landscape to make profound adjustments. As a clean energycompany, HY SOLAR deeply feels the mission and responsibility given by the times, and hasalways been ?rm in the original intention of "to make energy cleaner, to bring the world better",and contributing a steady stream of green energy to the accelerated arrival of a sustainable futurewith better photovoltaic products and solutions.For HY SOLAR, 2023 is also a crucial year to achieve leaps and bounds. In the past year, we havemade a brilliant debut with the new "HY SOLAR" brand, the N-type zero-carbon photovoltaicindustry chain has opened up a closed loop, and the global service network has continued togrow, and the realization of every major progress is of milestone signi?cance.This year, HY SOLAR updated the organizational structure and management system of theEHS committee, actively carried out actions to respond to climate change, accelerated theimplementation of carbon reduction plans and goals, and carried out environmental protectionand carbon reduction through measures such as energy conservation and technologicaltransformation, energy management, waste and harmful emission management. We continuedto explore cutting-edge low-carbon technologies and improve the level of green manufacturing,and our wafer and module products have been certified by the French ECS carbon footprint,and our subsidiary Hongyuan New Material (Baotou) has been rated A+ in the 2023 green factoryreview and evaluation, ranking ?rst gradient.
This year, HY SOLAR continued to focus on the innovation and breakthrough of photovoltaic coretechnology. By developing a first-class scientific research team, constructing highly specialisedlaboratories, and continuously expanding R&D investment, we have stimulated the potential ofindependent innovation, focused on technological upgrading and iteration, and pushed out newproducts to enrich the product matrix. We join hands with Zhejiang University, Southeast Universityand other well-known universities to explore co-operation in R&D and talent training, and acceleratethe pace of innovation in the photovoltaic industry. With technology research and development asthe core driving force, HY SOLAR strives to use high-performance photovoltaic products to bring morecustomers better clean energy solutions.This year, HY SOLAR adhered to the principle of "common benefits and shared value", built a closerdevelopment community with stakeholders, and made greater contributions to the harmony andhappiness of the society. Adhering to the people-oriented approach, we have created an equal andinclusive, safe and healthy working environment to help employees achieve their career developmentgoals and personal values. Together with our partners, we will build a green industry chain ecosystemand promote the sustainable development of the photovoltaic industry. At the same time, we are ?rmlycommitted to public welfare, and have actively carried out community building, charity and otheractivities. In 2023, we were selected as a "Leading Private Enterprise in Jiangsu in Social Responsibility".We will continue to transmit the temperature of sunshine to the society and make unremitting e?ortsfor a better world.ESG report is not only a report presenting data and actions, but also our commitment and responsibilityto sustainable development. We will adhere to the original essence of " Return the energy to its naturalgreen color" and work hand in hand with our employees, customers and partners to create a betterzero-carbon world and a better and sustainable future.
Lit up 2023
Low-carbon Operations and Environmental ProtectionSteady Development
Diversity and InclusivenessShared Bonuses
Coverage of environmental trainingfor employees
Environmental protection goalsachieved
Full range of silicon wafers and HT series modules passed
French ECS certi?cation of carbon footprint
%
%
Investments in environmentalprotectionCNY
Renewable rooftop photovoltaicelectricity
289.68
1,084,837
million
kwh
Presence of independent directorson the board
Coverage of integrity training inIntegrity trainingproduction bases
Penalties for tax violations
%
%
Information and cybersecuritytraining coverage
Achieved customer satisfactiongoal for
rd
%
consecutive year
Number of employees
10,804
Number of university partners
Employee skills training coverage
%
Employee assessment coverage
%
Number of newly granted patents
%
Employee emergency preparednesstraining coverage
Operating incomeCNY
CNY
11.859
billion
Total assetsCNY
29.382
billionCNYSocial contribution valueper share
2.39
R&D investments
million
CNYDonation, poverty alleviation andrural revitalization investment
2.0237
million
Lit up 2023
HY SOLAR ranked 229th on the list of2022 Hurun China Top 500.January
We held a press conference to releaseour new brand image, new strategy, andnew products, once again becoming thefocus of the photovoltaic industry.
May
Phase I of Hongyuan New Material(Xuzhou) put into operation amonocrystalline silicon slicing project,whose annual capacity reaches 50GW.
May
Our full range of silicon wafers once again passedFrench ECS certi?cation of carbon footprint, whichdemonstrates the rationality and e?ectiveness ofour carbon management throughout silicon wafermanufacturing chain.
May
Phase Ⅱ of Hongyuan New Material (Xuzhou) putinto operation a high-e?ciency TOPCon solar cellproject with an annual capacity of 16GW.June
HY SOLAR became a member ofenvironmental nonpro?t PV CYCLE, furtherenhancing end-of-life management of solarmodules that have exceeded their useful life.
July
The ?rst phase of 16GW TOPCon high-e?ciency module project of Hongyuan Energywas completed and put into production.
August
The ?rst phase of 50,000 tons of high-purity crystalline silicon project wassuccessfully put into production, closing thewhole industry chain of HY SOLAR N-typephotovoltaic industry.
August
We released our ?rst ESG report to fullyrespond to the concerns and demands ofstakeholders.September
HY SOLAR’s N-type TOPCon solar modulespassed IEC61215:2021 /IEC 61730:2023certi?cation, which made HY SOLAR one ofthe ?rst companies in the industry to obtainthis certi?cation.
HY SOLAR attended the Belt and Road CEOConference at invitation.October
October
HY SOLAR's N-type solar modules receivedthe highest rating from pv magazine.
With excellent results throughout test cycle,Hongyuan New Material (Xuzhou)'s N-typeTOPCon silicon wafers passed third-partycerti?cation based on IEC Standards forphotovoltaic devices.
HY SOLAR has obtained ISO three systemcerti?cation again, and its comprehensiveability of high quality has attracted attentionfrom the industry
December
November
November
Milestones in 2023
Milestones in 2023
1112
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Reliable Products from Trustworthy Brand
Reliable Products from Trustworthy Brand"Empowering a zero-carbon future in the photovoltaic industry" describes both our self-revolution and our future-oriented thinkingfor organizational evolution and transformations. Driven by technological advances and more than two decades of experience inhigh-end manufacturing, HY SOLAR keeps optimizing product portfolios to cater to diverse scenarios.We explore linkage among industrial bases, continuously gather cutting-edge technologies, and improve product managementcovering equipment manufacturing to renewable energy power stations, aiming to provide global users with more convenient andtrustworthy products and services with higher value.
Dali, Yunnan Province
Mountain PhotovoltaicProject
Distributed PhotovoltaicProject
Distributed PhotovoltaicProject
Large power station
Suzhou, Jiangsu ProvinceDistributed PhotovoltaicProject
Industrial and commercialpower station
Scan the QR code to view ourmountain photovoltaic project in Dali,Yunnan Province
Pakistan
Household rooftop power station
Residential rooftop photovoltaic
Italy
Maoming,GuangdongProvince
AgriculturalPhotovoltaicProject
Photovoltaic + Powerstation
Anshun, GuizhouProvince
Large-scale powerstations
Scan the QR code to view our industrial and commercialdistributed photovoltaic project in Suzhou, JiangsuProvince
MountainPhotovoltaicProject
1314
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Understanding HY SOLARCompany Overview
Understanding HY SOLAR
*Statistics as of the end of 2023.
Board of DirectorsBoard of Supervisors
General Meeting of Shareholders
Managers
Strategy CommitteeRemuneration andAppraisal CommitteeNomination CommitteeAudit Committee
Organizational Structure
Corporate Culture
Core values
Dedication Innovation
Highe?ciency
Uphold sincerity andtrust, develop a culture ofgood faith, and enhanceintegrity awareness.
Seek truth from facts, betruthful and pragmatic,adhere to goals, andstrengthen result orientation.
Cultivate a strong dedicationto work, enhance qualitywith ingenuity, and achieveremarkable results based onprofessionalism.
Pursue high-performingproducts, high e?ciencyat work, and high returns
of the company.
Maintain excellence, keep
making breakthroughs,and seek innovation toenhance the Company's
core competitiveness.
Good faith Pragmatism
Mission
To make energy cleaner,to bring the world better
vision
Integrator in global green energyecosystem
HY SOLAR (stock code: 603185), headquartered in Wuxi, Jiangsu Province, was established in 2002, and wentpublic on the Shanghai Stock Exchange in 2018. We aim to become an integrator in global green energyecosystem.HY SOLAR actively practices and promotes global transition to green energy. Driven by scientific andtechnological research and development and deep vertical integration, we operate in six business sectors: high-end equipment manufacturing, industrial silicon and crystalline silicon, monocrystalline silicon wafers, N-typesolar cells, N-type solar modules, and renewable energy power stations. We own advanced manufacturing basesin Wuxi of Jiangsu Province, Baotou of Inner Mongolia Autonomous Region, Xuzhou of Jiangsu Province, andChuzhou of Anhui Province. The Company seeks to create an N-type photovoltaic ecosystem and to help theearly realization of the Carbon Peak and Carbon Neutrality goal and the full popularization of green energy.
Business sectors
Operating income CNY
11.859
billionJiangsu, Inner Mongolia，Anhui
industrial bases
Global employees
10,804
Total assets CNY
Total pro?t CNY
29.382
billion
millionNet pro?t CNY
million
1516
HY SOLAR 2023 Environmental,Social and Governance (ESG) ReportUnderstanding HY SOLAR
China · Inner Mongolia China · Jiangsu China · Anhui
Hongyuan Energy
（Baotou）
SAP full process control and traceability system
Full process quality control system
Modi?ed Siemens process
“YT high-temperaturedesulfurization, desulfurizationand dust removal system”
Hongyuan NewMaterial (Baotou)HongyuanEnergy
Hongyuan NewMaterial (Xuzhou)
HY SOLAR (Wuxi)YuanTechHigh-purity industrialsilicon capacity
tons80,000
High-purity crystallinesilicon capacity
tons60,000
Monocrystallinesilicon wafercapacityGW
Slicing capacity
GW
Cell Capacity
GW
Slicing capacity
GW
Module capacity
GW
Solar modulecapacityGW
N-type zero-carbon photovoltaic industry chain
HY SOLAR Six Manufacturing Bases
HONGYUAN GREEN ENERGY CO., LTD.（Equipment）
Hongyuan New Material (Xuzhou)Co., Ltd.（Slicing + Battery）
HY SOLAR Co.,Ltd.（Module）
China · Inner Mongolia
Hongyuan Energy Technology(Baotou) Co., Ltd.（Industrial Silicon+ Polysilicon）
Hongyuan New Material (Baotou)Co., Ltd.（Crystal Pulling + Slicing）
China · Jiangsu
China · Anhui
Anhui Yuantai PhotovoltaicTechnology Co., Ltd.（Module）
Honors and Awards
HY SOLAR
2023 Global Top500 New EnergyEnterprises
2022 Hurun China Top 500
thth
Understanding HY SOLAR
Hurun China
Photovoltaic Green-Ecosystem
Organization (PGO)
China Energy News China Institute of Energy
Economics Research (CIER)
Photovoltaic Green-EcosystemOrganization (PGO)
in-en.com Energy Research Institute,
China Energy Group
All-China Federation of Industry and
Commerce
2023 Hurun China Most Valuable PrivateEnergy Enterprises Top 100
2023 China's Most In?uential PV
Module Enterprise
2023 Global Top 500 NewEnergy Enterprises
2023 Asian Photovoltaic Innovation
Enterprise
2023 Annual Photovoltaic Cell/ Module
Technical Breakthrough Award
2023 China's Top 500 Private
Manufacturers
Hurun China
Top 500
National High-tech Enterprise
China Federationof CommerceSci-Tech Award
Chinese ListedCompanyValuation Top 500
Major Sci-TechUndertakingEnterprise of NDRC
National SRDIEnterprise
2022 ChinaBrands Top
Jiangsu's Private
Company Top
Jiangsu's Company
in ManufacturingIndustry Top 100
China MachineryIdustry Sci-Tech
Award
2022 ForbesInnovation Top 50
National Green
Factory
HY SOLAR
Jiangsu Federation of Industry and
Commerce
Baotou Development and Reform
CommissionInner Mongolia Autonomous Region SolarGrade High-e?ciency Monocrystalline Siliconand Silicon Wafer Engineering Research Center
2023 Jiangsu's CSR Leading Private Enterprise
Solarbe Awards Organizing
Committee
Solarbe Awards 2023 Most In?uentialPhotovoltaic Raw Materials Enterprise
Solarbe Awards OrganizingCommitteeSolarbe Awards 2023 Most In?uentialPhotovoltaic Raw Materials Enterprise
Hongyuan New Material (Baotou)
Hongyuan New Material (Xuzhou)HY SOLAR (Wuxi)
Jiangsu Federation of Industry and
Commerce2023 Jiangsu's Top 200 Private
Enterprises
Jiangsu Federation of Industry and
Commerce2023 Jiangsu's Top 100 Private
Manufacturers
Jiangsu Enterprise Federation
2023 Jiangsu's Top 100 Manufacturers
ISO 9001: 2015Quality Management
System
ISO 14001: 2015EnvironmentalManagement System
ISO 45001: 2018Occupational Healthand Safety Management
System
ISO 50001: 2018EnergyManagementSystem
HY SOLARHongyuan NewMaterial (Baotou)Hongyuan NewMaterial (Xuzhou)Hongyuan EnergyHongyuan SemicHY SOLAR (Wuxi)YuanTech
EntityAssociation joined
Role in theassociation
HY SOLAR
PV CYCLEMemberChina Photovoltaic Industry AssociationMemberChina Machine Tool & Tool Builders’ AssociationMember
Hongyuan New Material (Baotou)
Baotou Association of Environmental ProtectionIndustry
MemberBaotou Association of Carbon Neutrality IndustryMemberSilicon Industry Branch, China Nonferrous MetalsIndustry Association
MemberMaterials Sub-Technical Committee, NationalSemiconductor Equipment and MaterialsStandardization Technical Committee
Director
Low-carbon Industry Branch, Baotou Associationof Environmental Protection Industry
MemberHongyuan Semic
China Advanced Semiconductor IndustryInnovation Alliance
Member
Associations Joined by Us
Systems BuildingAll our main manufacturing and operations locations have passed quality management system certification, with a100% coverage.
Understanding HY SOLAR
EntityAssociation joined
Role in theassociation
HY SOLAR
PV CYCLEMemberChina Photovoltaic Industry AssociationMemberChina Machine Tool & Tool Builders’ AssociationMember
Hongyuan New Material (Baotou)
Baotou Association of Environmental ProtectionIndustry
MemberBaotou Association of Carbon Neutrality IndustryMemberSilicon Industry Branch, China Nonferrous MetalsIndustry Association
MemberMaterials Sub-Technical Committee, NationalSemiconductor Equipment and MaterialsStandardization Technical Committee
Director
Low-carbon Industry Branch, Baotou Associationof Environmental Protection Industry
MemberHongyuan Semic
China Advanced Semiconductor IndustryInnovation Alliance
MemberHY SOLAR 2023 Environmental,Social and Governance (ESG) Report
2122
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Embracing Sustainable Development Through Diversity
Embracing Sustainable Development ThroughDiversity
Sustainability Management Framework
Stakeholder Engagement
While seeking survival and growth as a company, we actively transform risks encountered in sustainability practicesinto opportunities, and proactively respond to a business environment driven by sustainable development.
In 2023, we established Sustainable Development Governance (SDG) Committee composed of senior and mid-level managersfrom departments such as EHS, Human Resources, Procurement, Legal, and Securities. The committee is chaired by a boardmember.The SDG Committee operates under the supervision of the Board of Directors. It assesses the management of sustainabledevelopment issues, conducts internal democratic consultations from time to time, and addresses key areas that hindersustainable development, aiming to overcome bottlenecks and deepen our management practices.
We consider individuals and groups whose interests are or may be a?ected by our decisions or activities as stakeholders.We o?er open and transparent channels to facilitate dialogue with stakeholders, providing them with opportunities toshare their opinions and experiences with us. This helps us understand their expectations and demands, and supportsour decision-making and analysis for sustainable development.In 2023, we identified our main stakeholders and their possible concerns by referring to the GRI Standards 2021 andAA1000 SES, as listed below:
StakeholdersChannels of engagementTopics of concern
Employees (including labor
union)
Employee activities, worker'congresses, trainingEmployee handbookVoice of EmployeesInternal mailsO?ce automation systemBulletin board
Employees diversity and inclusionHuman capital developmentOccupational health and safetyWaste and hazardous substancesmanagementInformation security and privacy protection
Shareholders and otherinvestors
Information disclosureGeneral Meeting of ShareholdersOnline and o?ine communication(investment exchange meetings,performance brie?ngs, SSE (ShanghaiStock Exchange) E-interactive, investoremail, hotline)Media
Corporate governanceRisk managementBusiness ethicsInvestor relationsInformation security and privacy protection
Clients and consumers
O?ine exhibitions and conferencesCustomer satisfaction surveys
Product quality and safetyTechnological innovationCustomer relationship managementInformation security and privacy protectionProduct lifecycle management
Business partners
Regular training for suppliersExchanges and visitsSupplier veri?cation auditsSupervise channel feedback
Sustainable supply chainTechnological innovation
Government and regulatory
agencies
Regulatory meetingsOn-site inspectionsInformation disclosure
Corporate governanceEnvironmental compliance managementEnergy managementWater resources managementClimate actions
Non-governmentalorganizations
O?ine exhibitions and conferencesSeminarsMediaHY SOLAR's publicationsPress releases
Product lifecycle managementClean technology opportunitiesClimate actions
Local communities (including
residents)
Corporate visitsCommunity volunteer activitiesCharitable activities
Community relations and charityEnvironmental compliance managementWater resources managementEcological impactBiodiversity conservationStructure of Sustainable Development Governance (SDG)
Committee
ESG coordination
ESG Working Group
As the highest decision-making bodyfor managing the Company’s ESGa?airs, the Board of Directors takescharge of ESG strategic planning,policy and work plan development,and review of our annual ESG report.
Specialized committees underthe Board of Directors setenvironmental, social, andgovernance goals and assist inresolving ESG related matters.
Composed of various departmentsat our headquarters, the workinggroup implements goals set byspecialized committees, coordinatesand promotes ESG tasks, organizesthe preparation of annual ESG reports,and strengthens the in?uence ofsustainable development within andoutside of the Company.
Environmental Governance
Committee
Social ResponsibilityCommittee
Corporate Governance
Committee
HY SOLAR Board of Directors
Sustainable Development Governance Committee
General Manager
O?ce
EHS Department
Human ResourcesDepartment
ESG decision-making
Securities DepartmentFinance DepartmentLegal Department
2324
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
LowHigh
High
Human capital developmentOccupational health and safetyEmployee employment, diversity and inclusionProduct quality and safetySustainable supply chainTechnological innovationCon?ict minerals managementClean technology opportunitiesBusiness ethicsClimate actions
Customer relationship managementRisk managementEnvironmental compliancemanagementWaste and hazardous substancesmanagementEnergy managementInformation security and privacyprotectionCorporate governanceInvestor relationsProduct lifecycle management
Community relations and charityWater resources managementEcological impactBiodiversity conservation
HighMediumLow
Embracing Sustainable Development Through Diversity
Materiality AssessmentEvery year, we conduct materiality assessments with internal and external stakeholders to prioritize material ESGissues. Based on annual stakeholder surveys, we have identi?ed 23 material issues. Taking into account market trends,benchmarking with peers, rating indicators, and after seeking expert opinions, we developed a matrix of material ESGissues for us.Compared with 2022, we added new issues including "conflict minerals management", "ecological impact","biodiversity conservation", "product lifecycle management", and "clean technology opportunities", and incorporated"green and low-carbon product" into"product lifecycle management".
Stakeholderparticipation in thesurvey (excludingemployees)
28%
11%
22%
11%5%5%6%6%6%
Business partnersConsumersLocal communities
Non-governmental organizationsShareholders and other investorsSuppliers
Labor unionVulnerable groupsOther
Financial materiality
Impact materilityValidquestionnaires
Focus
[Focus] Low-Carbon Development Focusing on Green Mission
Note: The greenhouse gas inventory data in 2023 includes 8 production sites: HY SOLAR,Hongyuan New Material(Baotou),Hongyuan Energy,Hongyuan New Material (Xuzhou),Hongyuan SEMIC,HY SOLAR (Wuxi),ShanghaiYuanTech,YuanTech. Six more production sites than in 2022.
Greenhouse gas emissions data in 2023Unit:tCO
e
8,784.70
1,683,056.76
1,691,841.46
Scope 1Scope 2Total
Low-Carbon DevelopmentFocusing on Green Mission
We deeply recognize the impact of climate change on our sustainable development. Witha corporate mission of "to make energy cleaner, to bring the world better" and a vision to"contribute to China's dual carbon goals and energy revolution", we actively respond toclimate risks and challenges. We deeply layout the whole industry chain of photovoltaic chainto promote high-quality development of the industry and contribute to China's dual carbongoals.
Climate Actions
Climate Actions
Guided by theTask Force on Climate-related Financial Disclosures (TCFD), we focus on governance, strategy, riskmanagement, metrics and targets. Based on sustainable development management system, we have developed aclimate change governance framework to drive climate change governance from the top down and enhance our climategovernance capabilities and information disclosure. In terms of risk management, Hongyuan New Material (Baotou)has identi?ed the transformation risks and entity risks brought about by climate change, and developed appropriatecountermeasures, which provides a favorable reference for the company's future strategic and ?nancial planning.
Strategies
GovernanceThe Board of Directors, as the Company's highest decision-making body for managing ESG a?airs,guides the SDG Committee in formulating and improving climate-related strategies. It also overseesand reviews the Company's climate actions.The SDG Committee reviews and supports climate risk management policies, annual financialplanning related to climate change, climate-related metrics and targets, and their progress. It tracksand supervises the progress of climate e?orts and reports risk mitigation strategies to the Board ofDirectors.Functional departments implement climate change governance into their everyday work.Integrate the identification and management of climate-related risks and opportunities into thecompany's operational strategy.Evaluate the actual and potential impacts of climate change on a company's business, strategy, and?nancial planning.Deliver green products and services, practice green manufacturing, and build a green ecosystem.Risk managementEstablish processes for identifying, assessing, and managing climate-related risks.Conduct climate risk identi?cation and analysis.Develop risk mitigation and adaptation measures based on analysis results.Integrate climate change risk management into our overall risk management processes.
[Focus] Low-Carbon Development Focusing on Green Mission
In 2023, Hongyuan NewMaterial (Baotou) recovereda total of combined packagesof silicon rods
Puri?cation andreuse of crucible basematerial17,598sets
829.99
tons
GHG Emissions Management
Our greenhouse gas emissions within our operational boundary mainly come from electricity consumption. Inresponse to climate change and the need to reduce GHG emissions, we have advanced energy-saving technologicalimprovements to reduce energy consumption. We also conducted a GHG inventory to assess our GHG emissions acrossthe manufacturing and operational processes of our subsidiaries. By comparing and analyzing the data, we identify newmeasures and opportunities for carbon reduction to address climate-related risks. In 2023, our total greenhouse gasemissions (Scope 1 and Scope 2) amounted to 1,691,841.46 tCO
e.
IndicatorUnit2023
Scope 1: Direct greenhouse gas emissionstCO
e8,784.70Scope 2: Indirect greenhouse gas emissions fromenergy consumption
tCO
e1,683,056.76Total greenhouse gas emissionstCO
e1,691,841.46
Greenhouse gas emissions data in 2023
Metrics and targets
Regularly disclose energy, water resources, and waste-related data.Regularly disclose greenhouse gas emissions management measures and quanti?ed data.Evaluate our progress towards emissions reduction targets.
Clean Energy OpportunitiesThe global demand for renewable energy continues to increase, and the solar industry embraces significantopportunities in promoting the adoption of clean energy. HY SOLAR incorporates factors in?uencing clean energyinto the design, construction, and operation processes of solar projects to reduce greenhouse gas emissions andboost global energy transition.Upholding the mission “to make energy cleaner, to make the world better”, we concentrate on clean energy sectorand provide technical solutions for clean energy in various industries. We actively promote the construction ofrenewable energy power stations both domestically and internationally, through practical actions, we contribute todual carbon goals.
Installed rooftop solar panelsWhile providing more efficient, abundant, and safeclean energy products to global customers, we activelypromote the use of renewable energy in our manufacturingprocesses. During the reporting period, we installed solarpanels on unused roof in our headquarters in Wuxi. In 2023,we generated 1,084,837 kWh of electricity from rooftopsolar panels, of which 753,812 kWh was consumed by us. Itis expected that over the 25-year lifespan of this project, 24million kWh electricity will be generated in total, resultingin a reduction of approximately 13,687.20 metric tons ofcarbon emissions.
Product Lifecycle ManagementWe incorporates green and low-carbon principles into the whole industrial chain which covers entire product lifecycle from rawmaterials collection, design, manufacturing, transportation, use, disposal, to recycling. This ensures that our products have greenand low-carbon advantages. During the reporting period, our silicon wafers obtained French ECS certi?cation of carbon footprint.We replaced fuel forklifts with electric ones in our factories, recovered silicon sludge from cutting ?uids, and improved logisticsby shifting from road transport to a combination of road and rail transport. We also collaborated with upstream and downstreamsuppliers to develop processes for material circulation and recycling.During the reporting period, HY SOLAR and Hongyuan NewMaterial (Baotou) used 589,251 tons of renewable materialsin the manufacturing and packaging of products and services.Hongyuan New Material (Baotou) recycled a total of 17,598sets of composite packaging materials for silicon rods, andpuri?ed and reused 829.99 tons of crucible bottom materials.
Signing of a strategic cooperation agreement
Enhanced cooperation in the energy industry
As an integrator in global green energy ecosystem, wecontinued e?orts in building a global service network. Weclosely aligned with China’s dual carbon strategic goalsand actively expanded cooperation in clean energy, greencertificate trading, new energy equipment and more.Through in-depth multilateral cooperation, we jointlypromote low-carbon, green, and clean developmentthrough industrial transformation and upgrading.
2930
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
ExecuteIncoming Inspection Control Procedures. Incoming Quality Control (IQC) Department inspects, identifies,labels, and records raw materials, and notifies relevant departments, such as procurement and SQE, of any non-conforming or defective materials.
Supported by our rich experience in new product development, advanced core component manufacturing capabilities,cutting-edge CNC technology development capabilities, and strong overall design capabilities, we provide strongsupport for product design.
Management ProcessesRaw material procurement
Design
Qualified third-party testing organizations are invited toconduct test product compliance and identify problems,then we make timely adjustments to manufacturing processbased on inspection reports, and deliver quality productsthat meet market and customer requirements.
Use recyclable packaging materials to avoid adverse environmental impacts during material and product transport.
Further recycle reusable materials and properly dispose of non-reusable materials.
Production and quality inspection
Transport
Recycling and disposal
Domestic silicon
carbide slicermarket shareNO.1 in ChinaNO.1
First-class CNC technology
development capability
Powerful machine design
capabilities
Rich experience in newproduct development
Advanced manufacturing ofcore precision components
OEM
Routineexamination
Line patrol
Inspection
Shipping
We adhere to green manufacturing, and incorporate green and low-carbonprinciples into every step of our manufacturing. When manufacturingindustrial silicon, we prioritize the use of advanced machinery andequipment, and adopt advanced Siemens process to reduce labor costs,improve manufacturing e?ciency, and ensure product quality. Additionally,we take energy-saving and emission reduction measures in processoptimization, electrical systems, construction, water supply and drainage,and production management. This has resulted in zero emissions of wastegas, wastewater, and waste residue during manufacturing, making it morescienti?c and environmentally friendly.In August 2023, Hongyuan Energy's Phase I high-purity polysilicon projectwith an annual capacity of 50,000 tons was put into operation.
Hongyuan New Material (Baotou)adheres to green production andimplements green factory management, and is selected in the nationalGreen Factory list in 2021.Hongyuan New Material (Baotou)refers to therequirements of green factory management, continuous innovation andpractice in management and technology, and effectively lead the greenmanufacturing benchmark. In the review assessment of the green Factory in2023, Hongyuan New Material (Baotou)was rated as A+, that is, ranked in the?rst gradient.
Practiced Green Manufacturing
Built a Green RcosystemWe take a range of actions to build a green ecosystem from raw materials andmanufacturing process to end applications, and continuously accelerate our carbon-neutral efforts. Up to now, the entire range of silicon wafers and HT 182 TOPConmodules produced by HY SOLAR have passed the French ECS (Evaluation CarboneSimpli?ée) carbon footprint certi?cation, and the silicon wafers and PV modules havebeen subjected to a rigorous cradle-to-gate assessment of product life cycle carbonemissions. The products of silicon wafers and photovoltaic modules underwent astrict "cradle-to-gate" carbon emission assessment of the product life cycle, and the
HY SOLAR actively practices recycling and reuse. In 2023, we became a member of PV CYCLE, and began toprovide recycling and reuse services to customers who purchase our solar modules. By doing to, we striveto minimize ecologicalimpacts andmaximize renewable rates.
Increased Recycling and Reuse
After completing their mission, our solar modules (sold within membership period) will be collected andrecycled by PV CYCLE. This promotes circular reuse, reduces the need for primary resource extraction,and effectively lowers impact on the environment. It further optimizes the green and energy-savingcharacteristics of our solar modules, bridges the "last mile" of our green photovoltaic industry chain,supports the "ultimate low-carbon" lifecycle of our solar modules, and contributes to a green andpollution-free photovoltaic industry from start to end.
Building a Green Factory
results of the certi?cation are outstanding, with a signi?cant low-carbon advantage in the industry, which is a strong proof thatHiroshima Green Energy continues to practice low-carbon development and promotes the construction of an environmentallyfriendly value chain, and further assists Hiroshima Green Energy's products in entering the overseas market.
[Focus] Low-Carbon Development Focusing on Green Mission
Feature
Digital production manufacturing MES system developed by us
On a single production line,an average of2,000siliconwafers can be packaged and boxedevery15 minutes.
[Feature] Leading the Way in Smart Manufacturing for More Accessible Clean Energy
Leading the Way in SmartManufacturing for MoreAccessible Clean Energy
Amid the booming Fourth Industrial Revolution, HY SOLAR has taken the lead in seizing the industry’sopportunities by creating manufacturing bases that integrate smart manufacturing and R&D. We havesuccessfully achieved a vertical extension of the entire industry ecosystem that covers six major stages,including equipment manufacturing, silicon material, silicon wafer, cell, module, and power station. Withour strategic deployment making significant progress, we have demonstrated a deeply integrated andhighly e?cient collaborative multi-industry system. This allows our advanced manufacturing capacities tobe released in an orderly manner, which re?ects not only our autonomy and reliability in managing supplysecurity and manufacturing e?ciency, but also the promising acceleration of our transformation.
Aiming for Smart Photovoltaics
Leading the industry with smart manufacturing
A nation’s pivotal industries are the lifeblood of itspeople. The photovoltaic industry is characterizedby strong technological intensity, and HY SOLARhas taken advantage of this by developing the fullgamut of products and technologies while pursuinglean production. We have developed our own MESsystem, integrated SAP system, and WMS system toachieve lean manufacturing control and business-?nance integration. This fully promotes informationsharing throughout our upstream and downstreamindustries, helping us reduce operational risks andleverage the potential of smart manufacturing toenhance manufacturing e?ciency and quality.Our manufacturing base in Xuzhou has been equipped with an automated production and full-process quality control systemcompatible with both 182mm and 210mm ultra-large solar cells. The system possesses high adaptability and versatility. We haveincorporated industry-leading TOPCon passivation contact technology and AI smart detection into an advanced smart integrationsystem tailored for photovoltaic module manufacturing. This system automatically identifies risks, enables visual productionmonitoring, prevents mistakes, and e?ectively reduces human errors, greatly ensuring manufacturing e?ciency and product qualityof all independent and interconnected modules, from material loading to packaging. It also helps the production department trackand analyze production data in real-time for optimized equipment and process and reduced defect rates. In the meanwhile, our othermanufacturing bases are also advancing digital transformation and improving real-time analysis and detection systems.
Our automatic sorting and production lineof monocrystalline silicon wafers
Cell yield improved byPhotovoltaic module manufacturing
processes more than
Automation coverage of moduleproduction process%
0.3
%30100
Enabled precise traceability with "digital passports" for photovoltaic modules
Flexible
IntelligentIntegrated MES, SAP, and WMS systems
Automatic wafer retrievalAutomatic frame clampingAutomatic curingAutomatic laminationAutomatic cleaningAutomatic layupAutomatic testing
Automatic packagingAutomatic loading
utomatic tandem welding
OrderProductionDelivery
By embedding tags in photovoltaic modules, we have created"digital passports" for photovoltaic modules, enhancingthe management of their lifecycle data. Customers can type in the serial number on our website or scan the nameplate
CompatibleE?cient
CollaborativeStable
Innovation empowers interconnected premiumphotovoltaicsA higher photovoltaic conversion rate and a wider range of power generation applications have always been ourunchanged research and development goals. Through the creation of research and development teams, laboratoryupgrades, collaborative research and development, and increased research and development investment, we haveunleashed our potential for independent innovation, sought technological upgrades and iterations, and developed newproducts. In 2023, we obtained 68 new authorized patents.
R&D team
National patents granted
National key high-techproduct
Proportion of R&D teamin the total sta?
R&D investment
Jiangsu provincial high-tech products
Testing laboratory
Average conversion e?ciency ofmass production
Provincial and ministerial science andtechnology awards
members
million
26.45
%
8.87%
HY SOLAR has established a highly specialized product laboratory at its production base to provide technical supportfor the development and testing of solar photovoltaic products within the organization. The laboratory covers an areaof over 3,000 square meters and is equipped with more than 60 sets of equipment, including electrical performancetesting instruments, which fully comply with the ISO 17025General Requirements for The Competence of Testingand Calibration Laboratories. It meets the requirements of the national CNAS-accredited laboratory and has testingcapabilities that comply with the complete set of IEC 61215 and IEC 61730 standards, in addition to ?re testing. Thelaboratory incorporates an information management system (LIME) to ensure work e?ciency and data integrity.We partner with universities and organizations for research and development and talent training, such as ZhejiangUniversity, Southeast University, and Nanjing Institute of Technology to accelerate innovation in the photovoltaicindustry.
[Feature] Leading the Way in Smart Manufacturing for More Accessible Clean Energy
INNOVATEHY SOLAR 2023 Environmental,Social and Governance (ESG) Report
with a mobile phone to use our online "Modules AuthenticityServices"and obtain key information about the module. Theplatform is available in both Chinese and English.Data has been entered for all of our company's photovoltaicmodules, and customers can verify each module product viathe"digital passports" . All module products are equipped withour own solar cells, enabling integrated traceability throughoutthe entire supply chain starting from silicon materials producedby us.
scalere?nementmass production
Hongyuan New Material (Baotou) partners with ZhejiangUniversity’s State Key Laboratory of Silicon andAdvanced Semiconductor Materials to develop largechips.
HY SOLAR partners with Southeast University to promotedomestic production of high-end silicon carbide devices.Development of magnetic ?eld-free large-diameter(≥12") semiconductor monocrystalline silicon project
Some of our collaborative development projects
n April 2023, Hongyuan New Material (Baotou) officially launched Hongyuan New Material (Baotou) FutureResearch Institute in Qingshan District, Baotou. The project has a total investment of CNY100.6 million,focusing on solar photovoltaic invention and application innovation. In October of the same year, HongyuanNew Material (Baotou) Research Center for Solar-grade High-efficiency Monocrystalline Silicon and SiliconWafer Engineering, under the Future Research Institute, was recognized as Inner Mongolia AutonomousRegion Engineering Research Center. Both the research institute and research center are led by HongyuanNew Material (Baotou) and have established strategic partnerships with prestigious universities and researchinstitutions such as Zhejiang University.
Expanding cooperation for win-win situations
Product quality is the foundation of our enterprise. By establishing a smart manufacturing base for photovoltaics, wehave not only strengthened our manufacturing capabilities but also raised higher quality requirements for production.Overcoming the limitations that hinder quality improvement has been a crucial driving force for HY SOLAR's continuousachievement of scale, re?nement, and mass production along its industrial chain.
Comprehensive Quality Management
Development and industrialization project ofsemiconductor silicon carbide slicing machines
From HY Products to HY QualityReliable products stem from comprehensive quality management. We adhere to the principles of "excellent quality,leading brand, continuous improvement, and customer-centricity". We implement end-to-end quality management,establish a quality management system in accordance with ISO 9001, conduct regular inspections and qualitymonitoring of our production processes, hold regular quality diagnosis meetings, involve all departments in theimprovement of quality at the production base, consolidate the achievements of quality management, and achievequality goals for process optimization and product yield.
Comprehensive Lifecycle Quality Management
Whole Industry Chain Quality Management
SiliconMaterials
SiliconWafers
Solar CellsModuleEquipment
Supplier ManagementPre-Quality Management for Self-
produced Silicon WafersManual and Outsourced Testing
Temperature and Humidity-Controlled Storage
Process Control for 70 Steps
On-site 6S ManagementVertical Quality Management
with 5M1ESmart Production Workshop
ISO 9001System Management
Quality Control of RawMaterials
Complete TestingCapabilities for IEC61215 and IEC 61730StandardsTotal QualityManagement (TQM)E?cient Alignment ofERP, MES, and LIMS
Process Control
Reliability Monitoring of
Finished ProductsVisual InspectionAutomatic QC Testing100% EL Testing
Inspection InstructionsNonconformance ControlProcedureCorrective and PreventiveMeasures Control Procedure
Bill of Materials (BOM) andStandard Operating Procedures(SOP) covering all product models
Nonconformance, Noncompliance,and Corrective Measures Control
ProcedureProduct Internal Control StandardsProduct ORT MonitoringManagement Speci?cations
[Feature] Leading the Way in Smart Manufacturing for More Accessible Clean Energy
3738
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Design anddevelopment
Raw materialprocurement
Storage andtransportation
Equipmentoperation
Inspection and
testing
Disposal ofnonconformingproducts
Quality Control
We provide quality management training for employees during onboarding and throughout their job roles, standardizingquality control requirements from design and development, raw material procurement, storage and transportation,equipment operation, inspection and testing, to the disposal of nonconforming products. We collaborate with research anddevelopment, procurement, and manufacturing to collect market analysis and customer feedback, and implement qualityimprovement projects. The production base regularly organizes "Quality Month" events to enhance the sense of responsibilityamong personnel, foster a culture of "producing high-quality products with honor", and improve the quality awareness andtechnical skills of all employees.
Quality Month Event
In 2023, HY SOLAR's self-produced N-type TOPCon solar cells in Xuzhou successfully passed various technical speci?cationtests based on the IEC 61215/IEC 61730 photovoltaic module standards conducted by third-party testing organizationssuch as Germany's T?V Rheinland and PV Magazine Module Test. In rigorous testing by multiple authoritativeorganizations, HY SOLAR's products demonstrated outstanding reliability in high-temperature resistance and light-induceddegradation.
[Feature] Leading the Way in Smart Manufacturing for More Accessible Clean Energy
4039
Environment
Friendliness for a
Circular Economy
Multi-Measures and Structures for Green OperationsEnhancing resource intensification and recyclingEnhanced resource intensification and recycling
Supporting national "dual-carbon" strategic objectivesImproving energy efficiency and reducing emissionsRespect for nature and conservation of biodiversity
ACTION:
RESPONSE:
No environmental pollution incidentsNo environmental public opinion of level 2(yellow) or higherInvestment in environmental protectionReducing environmental impactsWater conservation
CompletedCompletedCNY
289.68
millionNOx emissions reduced by
4.6
%
33.31
tons
ACHIEVEMENT
Objectives2023
P41P42P43P44P48
Environmental ComplianceEnergy ManagementWater Resource ManagementWaste and Hazardous Emissions Management Ecological Conservation
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Environment Friendliness for a Circular Economy
4142
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Environmental ComplianceEnergy Management
As a global green industry ecosystem integrator, HY SOLAR constantly pays attention to the development trends of global environmentalmanagement concepts, policies, and strategies. We recognize the importance of environmental management for the sustainabledevelopment of the Company and attach great importance to the environmental impact of our production and operations processes.We strictly comply with the relevant laws and regulations of the People's Republic of China, such as the Environmental Protection Law,Law on the Prevention and Control of Water Pollution, and Law on the Prevention and Control of Air Pollution. Based on the ISO 14001environmental management system, we continuously improve our environmental management system and organizational structure, re?neimplementation guidelines, and strive to minimize the environmental impact of our production and operations.
Company's Environmental Performance in 2023Environmentalpollutionaccidents
Disposal rate forhazardous solidwaste
%
Waste gas andwaste waterdischarge
meet thestandards
We have formulated the environmental protection work implementation planfor the year 2023, with the goal of addressing the root causes and improvingenvironmental quality to ensure the implementation of environmentalprotection responsibilities. In accordance with the requirements of relevantlaws and regulations on emergency response plans for environmentalincidents, we have assessed environmental risk factors based on ourcompany's situation and developed emergency response plans for suddenenvironmental incidents. We have actively conducted over 35 emergency drillsto enhance our capability to respond to sudden environmental emergenciesand reduce the potential hazards of such incidents. During the reportingperiod, the Company did not experience any major pollution leaks orenvironmental violations.
The Company and its production bases have established a Power Facilities Department responsible for energy security, energyconsumption data collection and statistics, power equipment management, and the implementation of energy-saving andconsumption reduction projects. In 2023, we adopted multiple measures to strengthen energy management, continuously optimizethe energy management system, consolidate energy consumption awareness, and improve energy efficiency. By the end of thereporting period, Hongyuan New Material(Baotou) had obtained ISO 50001 Energy Management System certification, and otherunder-construction or newly established plant sites are actively developing energy management systems in accordance with therequirements of ISO 50001.
HY SOLAR strictly complies with theEnergy Conservation Law of the People's Republic of China,Measures for the Administration of IndustrialEnergy Conservationand other laws and regulations. In accordance with the requirements of ISO 50001 Energy Management System, wehave issued and implemented internal regulations and procedures such asthe Energy Management SystemandEnergy ManagementProceduresto establish a complete and e?ective energy policy, energy performance objectives, and energy management processes andsystems.
HY SOLAR has intensi?ed its e?orts in energy-saving technological upgrades, focusing on the development and applicationof new energy-saving technologies, processes, equipment, and materials. We have planned and implemented energy-savingtransformation projects, continuously optimized processes and production systems, and reduced energy intensity. Our aimis to achieve long-term energy savings and reduce our carbon footprint.During the reporting period, HY SOLAR has planned a total of 34 improvement projects (water and electricity conservation,and resource efficiency). One notable project involved the addition of a decarbonization tower in the distillation unit,which improved power generation efficiency by achieving impurity removal. At the Hongyuan New Material (Baotou)production base, we carried out modi?cations to the central axis system of monocrystalline furnaces, resulting in increasedthermal input, expanded output, and the recycling of concentrated slicing water, thereby achieving cost reduction ande?ciency improvement. At the group headquarters base, we conducted energy-saving transformations on semiconductorwafer cutting machines to enhance control accuracy and make thermal deformation of products more controllable. Forphotovoltaic wafer dicing, we reduced the cutting pitch and diameter while ensuring cutting precision, leading to reducedraw material waste and decreased labor input.
Energy-saving Technological Upgrades
Training on Pollution Discharge Permit
Management Ledger
Training on EnvironmentalCompliance for New Employees
In 2023, we updated the organizational structure and management system of the EHS (Environment, Health, and Safety) Committee to complywith or exceed international and domestic regulatory requirements, further ensuring the implementation of EHS work. During the reportingperiod, we re?ned the guidelines for employee EHS training to enhance their understanding of newly enacted EHS-related laws, regulations,and industry norms.We actively promote environmental awareness among employees, integrating environmental concepts into various aspects of production andoperations through training and advocacy, advocating for a low-carbon and green lifestyle. During the reporting period, we conducted over140 specialized training sessions on environmental compliance management, environmental factor identi?cation and evaluation, standardizedmanagement of air emissions and solid waste, and radiation safety management, with over 7,000 employees participating in the training. Thecoverage rate of environmental-related training for employees reached 100%, and the pass rate for training assessments was 100%.We are committed to building environmentally friendly green factories, adhering to technological innovation and the transformation of Industry
4.0, and supporting the construction of high-standard green factories based on the requirements of the
Green Factory Evaluation Criteria.Following the honor of being recognized as a green factory by Hongyuan New Material (Baotou) in 2021, the Company plans to apply forprovincial and municipal-level green factory certi?cations in 2024.During the reporting period, we invested a total of CNY289.68 million in environmental compliance and publicity, environmental technologydevelopment, and the construction and operation of environmental facilities. By the end of the reporting period, the environmentalmanagement systems of HY SOLAR, Hongyuan New Material (Baotou), Hongyuan Energy, Hongyuan New Material (Xuzhou) and YuanTech hadbeen audited and certi?ed to meet the requirements of ISO 14001, and they obtained the corresponding certi?cation certi?cates. Other under-construction or newly established plant sites are actively developing environmental management systems in accordance with the requirementsof ISO 14001.
Environment Friendliness for a Circular Economy
Water savings in 2023compared to 2022
tons333,100
Compared with 2022, Hongyuan New Material(Baotou) nitrogen oxide emissions decreased byappromixmately
VOC emissions decreased byapproximately%
4.6
%
HY SOLAR strictly complies withthe Water Law of the People's Republic of China, Law of the People's Republic of China onPrevention and Control of Water Pollutionand other laws and regulations, to establish a comprehensive water resourcemanagement system and strengthen water resource management. The water resources used in our production andoperations are sourced from the municipal water supply network and ?re water supply network, primarily for domestic ando?ce use, as well as ?re?ghting emergencies. Our activities do not have negative impacts on local water resources in termsof water extraction, consumption, and discharge. We integrate the concept of water conservation into the entire productionand operation process by using air coolers for production equipment to reduce the use of chilled water and achieve waterconsumption reduction.
Water Resource Management
Waste and Hazardous EmissionsManagement
HY SOLAR strictly complies withthe laws and regulations of the People's Republic of China, such as the Law of the People'sRepublic of China on the Prevention and Control of Air Pollution, Law of the People's Republic of China on the Preventionand Control of Water Pollution, and Law of the People's Republic of China on Prevention and Control of EnvironmentalPollution by Solid Waste,andPollution Standards for the Battery Industry. We attach great importance to the compliantmanagement of waste and emissions, actively carry out environmental pollution control and waste emission management,and are committed to building an environmentally friendly and green enterprise that meets the expectations and demandsof stakeholders. We have developed relevant procedures and management plans to identify and evaluate environmentalfactors that the Company can control or expect to in?uence, and manage and control them. During the reporting period, nosigni?cant violations or incidents of pollutant emissions or leaks occurred.
The Company's main air pollutants include suspended particulate matter, nitrogen oxides, sulfur dioxide, toluene,xylene, and non-methane total hydrocarbons. Adequate air monitoring and control facilities are in place for varioustypes of air pollutants, with regular monitoring and reporting. After puri?cation treatment to meet national emissionstandards, the emissions are released, reducing environmental impacts and operational risks. At the HongyuanNew Material (Baotou) production base, fluoride emissions were reduced through equipment modifications tomeet the emission standard of 1.5mg/L, resulting in emission reduction. During the reporting period, no incidentsof air emissions exceeding the standards occurred. In 2023, YuanTech Solar, Hongyuan New Material (Baotou),and Hongyuan New Material (Xuzhou) jointly emitted 9.42 tons of nitrogen oxides, 2.09 tons of volatile organiccompounds (VOCs), and 9.33 tons of particulate matter. Compared to 2022, nitrogen oxide emissions decreased byapproximately 4.6% and VOC emissions decreased by approximately 70% at Hongyuan New Material (Baotou).
HY SOLAR actively implements measures to control air pollutants by adopting a dry filtration system followedby catalytic combustion for air treatment facilities. Waste gases generated during welding, lamination, andcomponent cleaning processes are collected and treated by the "dry ?ltration + zeolite wheel + catalytic oxidation"system installed in each workshop, and then discharged after meeting the standards. This measure reduces theemission of volatile organic compounds into the air, lowers air pollution, improves overall e?ciency of waste gastreatment, and enhances the Company's end-of-pipe emission control capability.
Treatment of Air Pollutants
In 2023, during the construction of the semiconductor new plant in Wuxi, theCompany designed the reuse of reclaimed water for factory circulating coolingwater and cleaning processes, maximizing water savings and achieving zerowastewater discharge. In the third phase of the reclaimed concentrated slicingwater overflow reuse project at the Hongyuan New Material (Baotou) productionbase, the daily average savings of tap water reached 1,657.62m?, resulting in a watersavings of 333,100 tons compared to 2022.
HY SOLAR constructed a reclaimed water station within the plant area, with a designed treatment capacity of 300m
/h (summer) to 100 m
/h (winter). The reclaimed water generated by the station meets the reuse standards whilecomplying with national emission standards. This low-cost and efficient treatment system saves approximately800,000 tons of water annually.
Water conservation
Exhaust Gas
Environment Friendliness for a Circular Economy
The design scaleof the productionwastewater treatmentstation is
m
/h
Annual sewagetreatmentcapacity is
tons390,000
In 2023, the Companygenerated generalindustrial solid waste isapproximately
tons31,760.72hazardous waste about
tons
59.64
compliance ratein collection anddisposal
%
4546
WastewaterWaste Management
During the construction of each production base, HY SOLAR designs and builds the sewage system based on the"separation of rainwater and sewage" principle. The wastewater generated during production is collected and treatedby supporting wastewater treatment facilities. Reclaimed water is reused in the production process, while domesticwastewater is collected by the park's sewage network and discharged to the city's sewage treatment plant after meetingthe standards. During the reporting period, 100% of the Company's wastewater met the discharge standards.
HY SOLAR has developed theSolid Waste Control ProcedureandIndustrial WasteManagement Procedureto classify, collect, store, and transfer waste based on the nationalhazardous waste list and characteristics. The Company's solid waste includes industrialwaste and household waste. We classify and collect non-hazardous waste according toestablished standards, establish waste collection facilities, and entrust qualified units totransfer and dispose of the waste. Hazardous waste is subject to special managementprocedures, with strict recording in the "Hazardous Waste Ledger", the establishment ofemergency plans, and entrusting qualified institutions for harmless disposal. Householdwaste is regularly handed over to the municipal sanitation department for unifiedcollection and treatment. We also conduct qualification audits and regular inspectionsof commissioned units, closely tracking the transportation and disposal of waste toensure 100% compliance in solid waste management. In 2023, the Company generatedapproximately 31,760.72tons of general industrial solid waste and 59.64 tons of hazardouswaste, achieving a 100% compliance rate in collection and disposal. No penalties wereincurred during the reporting period for exceeding pollutant limits or unauthorizedemissions.HY SOLAR constructed a production wastewater treatmentstation within the plant area, with a designed treatmentcapacity of 70 m
/h. The station ensures that productionwastewater is not discharged externally and meets therequirements of the environmental protection departmentfor wastewater discharge. Approximately 390,000 tons ofwastewater are treated annually.
Wastewater Treatment
Weighing and recordingall incoming hazardouswaste, trackingmanagement
Signing disposal contractswith quali?ed suppliers,ensuring timely operations,and maintaining transfermanifests and inventory
records
High-value recyclablewaste is weighed andrecorded according todisposal contracts
Registration andstorage
Proper transferRecyclingOn-site inspections bydepartments to preventwaste mixing
Proper transfer
HY SOLAR has developed theChemicals and Oil Control Procedure,which clearly defines and details the entire process of purchasing,transporting, storing, issuing, using, and disposing of hazardouschemicals and oil. The chemicals involved in the Company'sproduction and operation include hydrochloric acid, hydro?uoric acid,nitric acid, sulfuric acid, etc. We have implemented comprehensiveleak detection measures and actively conducted emergency drillsrelated to chemicals to minimize adverse environmental impacts. Nochemical leaks occurred during the reporting period.HY SOLAR conducted four chemical emergency drills, including argongas leakage, acid leakage in the silicon material department, andchemical burns, with a total of 205 participants.
Chemicals
Argon Gas Leakage Accident DrillAcid Leakage Emergency Drill in the Silicon Material Department
Environment Friendliness for a Circular Economy
4748
Chemical Burns Emergency Drill
In June 2023, Hongyuan New Material (Baotou)'s production base conducted a drill for the on-site disposal plan for a silicon leakage incident. The drill included accident response, emergencyevacuation, on-site emergency disposal, and the use of ?re?ghting equipment. With the guaranteeof emergency resource demand, the drill tested the practical operational and adaptive capabilities ofemergency response personnel in handling silicon leakage incidents.
Leakage of Silicon Incident Emergency Drill
The equipment that generates noise during the Company's production and operation processes includes cuttingmachines, polishing machines, and metal processing equipment. To e?ectively manage the noise generated bythe Company's production activities, we have established theNoise Control Procedureand selected low-noiseequipment, implemented proper equipment layout to reduce noise levels inside and outside the plant, and usedsoundproo?ng measures such as wall insulation. We have also implemented appropriate vibration isolation orshock absorption measures, such as installing vibration isolation bases for vibrating and high-noise equipment,to reduce vibrations and noise. Additionally, we have installed noise monitoring instruments to conduct quarterlyroutine tests on noise sources and regularly engage quali?ed institutions to monitor and record equipment noiselevels. These comprehensive noise control measures ensure that the noise levels at the plant boundary complywith theIndustrial Enterprise Plant Boundary Noise Emission Standards. No noise complaints were reportedduring the reporting period.
Noise
HY SOLAR pays attention to the impact of its production and business activities onecosystems and biodiversity. The Company strictly complies with relevant laws andregulations and actively incorporates the impact on ecology and biodiversity into itsdecision-making and activities. The development, construction, and site selection of allthe Company's base projects are not located in or near natural resource conservationareas or areas with rich biodiversity. Throughout the entire process of planning, landacquisition, licensing, development, and site operation of production bases, the Companyhas established a sound environmental protection system, including project redlining,preliminary assessment, project approval, reexamination, and commencement. Duringthe reporting period, no signi?cant impact on biodiversity was identi?ed in the Company'sproduction, operation activities, products, and services.
Ecological Conservation
Environment Friendliness for a Circular EconomyHY SOLAR 2023 Environmental,Social and Governance (ESG) Report
5049
Coordinated
Cooperation for
Shared Value Creation
Issued theSupplier Code of ConductConducting anonymous research to collect employees' opinionsSpecial care for female employees and vulnerable groupsProvided continuing education opportunities and organize skills competitions
Strengthening supply chain managementBecoming a platform for talent growthGuarding Employee Health and SafetySupporting social programsACTION:
RESPONSE:
100% coverage of collective contracts andcollective contracts for women workersEmployee training coverage 100%Providing more employment opportunitiesNo chemical spills, new occupational diseases,minor work-related injuries and work-relateddeathsCommunity contribution and philanthropicinput
ACHIEVEMENT
Objectives2023
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
P51P53P59P63P66
Sustainable Supply ChainEmployee RightsHuman Capital DevelopmentOccupational Health and SafetyCommunity and Charity Contributions
Coordinated Cooperation for Shared Value Creation
Added over
2000
new jobs
CompletedCompletedCompleted
CNY
2.0237
million
5152
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Sustainable Supply Chain
采购合同明确廉政、环境与安全、反奴役条款，部分供应商还需满足绿色环保的包装要求对供应商进行分级管理，要求供应商签署反商业贿赂和反舞弊承诺书、安全环保承诺书
* Main materials: mainly polysilicon, crucibles, battery wafers, adhesive ?lm, tempered glass, potting adhesive, silicone, interconnectingstrips, converging strips, junction boxes, aluminum frames, cutting lines, cleaning agents and so on; Auxiliary materials: mainly ?ux, junction box, ?lm, packaging materials, silicone, busbar (solder tape), etc.
要求部分供应商提供RoHS、REACH合规性证明，以及产品标准或鉴定证书
定期开展供应商绩效评审，以季度和年度为周期分别执行原辅料与其他物料供应商的评审从产能、技术、交付、财务多维度识别风险供应商，采取应对措施在满足品质要求的前提下，厉行本土化采购，降低对环境的影响
%
A reliable supply chain management is the foundation for our stable production of safe and high-quality products. The Companyexplores the organic integration of sustainable development and supply chain management to enhance supply chain resilience,reduce uncertainty and risks, and contribute to a sustainable future. The Company's procurement mainly includes materials,equipment, engineering, logistics, consulting, information services, etc. To this end, we have established cross-departmentalmanagement teams, including procurement, quality, process, and research and development departments, and formulatedsupplier management and assessment forms such asProcurement Management Procedure, Supplier Procurement ManagementStandards, Supplier Evaluation ReportandSupplier Evaluation Scorecardto standardize supplier admission, evaluation, and exitprocesses.At the same time, we have issued theSupplier Code of Conductto urge suppliers to pay attention to con?ict mineral issues andcommit not to purchase any tin, tantalum, tungsten, gold, mica, cobalt, or other materials from illegal sources.The raw materials used in our self-operated silicon processing base are all sourced from domesticmines with clear origins and compliant governance, ensuring no human rights violations.
HY SOLAR Supply Chain Management Details
Localization of Procurement
The procurement contractsclearly de?ne clauses relatedto integrity, environment andsafety, and anti-slavery. Somesuppliers are also required to meetpackaging requirements for greenenvironmental protection.Suppliers are categorized andrequired to sign anti-commercialbribery and anti-fraud commitments,as well as safety and environmentalprotection commitments.
Some suppliers arerequired to provideproof of RoHS andREACH compliance,as well as productstandards orcerti?cation.
Regular supplier performanceevaluations are conducted on aquarterly and annual basis for both rawmaterials and other materials suppliers.Risks associated with suppliers areidenti?ed from multiple dimensionssuch as capacity, technology, delivery,and ?nance, and correspondingmeasures are taken.Local procurement practices areimplemented to reduce environmentalimpact while meeting qualityrequirements.
ResponsibleProcurement
Safe ProcurementStable Procurement
Coverage of ISO 9001 certi?cationfor material suppliers
Coordinated Cooperation for Shared Value Creation
5354
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Employee Rights
The rapid development of HY SOLAR is inseparable from the contribution ofits employees. Establishing an appropriate employment system is crucial forconsolidating the achievements of the Company's development.The Company continues to expand talent acquisition channels to reserve talentsfor the Company's development, including but not limited to campus recruitment,online recruitment, and internal referrals. We adhere to the principles of equality,diversity, and inclusiveness to build a platform for mutual development, createa harmonious and efficient working environment, and accelerate the release oftalent potential.
Equality and Diversity
By 2023
10,804the number of HY SOLARemployees has reached
Total employees
Ethnic minorityemployees
Employees withdisabilities
By composition
By genderBy age group
31-50years old
≤ 30years oldMale
Female
≥ 51years old
202120222023
2000
4000
40006000
60008000
800010000
1000012000
5,370
7,245
10,804
In accordance with theLabor Law of the People's Republic of China,the Labor ContractLaw of the People's Republic of China, and international labor organization conventions,the Company has issued theRecruitment Management Systemand compiled theEmployeeHandbook. We provide convenience for democratic management and supervision ofemployees and sign collective agreement documents with labor unions and employeerepresentatives, such asCollective Contract, Special Collective Contract for Protection ofFemale Workers' Special Rights,andCollective Bargaining Agreement on Wages, to clarifyrequirements in areas such as gender equality, anti-forced labor, anti-child labor, anti-discrimination, freedom of association and collective bargaining, working hours and rest,remuneration and bene?ts, health and safety, and e?ectively protect employees' rights. Inthe recruitment process, we use identity recognition machines to ensure that all newly hiredemployees are at least 18 years old, avoiding the use of child labor or underage workers dueto the provision of false information.
Coverage of collectivecontracts for employees
%
Coverage of collectivecontracts for female workers
%
During the reporting period,
no complaints of child labor, forced labor,discrimination, or other violations of laborstandards were received at any of theCompany's bases.
The Company develops a remuneration system based on job value and performance orientation, taking into account the labor marketwage levels, the consumer price index, and the Company's performance. The system re?ects performance and ability di?erences in apositive manner, motivating employees to develop in multiple channels and improve their job performance.Remuneration and Incentives
In August 2023, the Hongyuan New Material (Baotou) held its congress as scheduled, with a total of 459 employees inattendance. We ensure that employees fully exercise their participation and expression rights. Through anonymous surveys,we collect employees' genuine demands. A special collective contract supervision and inspection team was established toaddress employee concerns and stabilize the talent pool.
Hongyuan New Material (Baotou) Workers' Congress
Disability-friendly Access
Coordinated Cooperation for Shared Value Creation
Production Personnel 62.87%Sales Personnel 0.83%Technicist 20.96%Financial Personnel 0.69%Administrative Sta? 14.64%
78%
22%
2.71%
42.06%
55.23%
5556
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Employee Counseling Program
Employee Rights
We strictly adhere to the collective contract for theprotection of female workers' rights, ensuring the rightsof female employees. In addition to various exclusiveholidays, we also pay attention to the physical health offemale employees. Every year, we conduct gynecologicalexaminations for female employees and organize specialactivities on International Women's Day to distributewelfare to female employees. In terms of work intensity,we specify prohibited labor for female employees throughcontract attachments and conduct annual joint sexchecks to review compliance. In 2023, Hongyuan NewMaterial (Baotou) was awarded the "Women's Red BannerCollective" title by Qingshan District.
All employees in HY SOLAR have equal opportunities for promotion, advancement, professional title evaluation, and improvementof welfare bene?ts. They will not be discriminated against based on factors such as race, religion, gender, age, marriage, or disability.We have established democratic communication channels and welcome employees to recommend themselves or express theiropinions, aiming to enhance their sense of identity and persuasion. In addition to regular contributions to social insurance andhousing provident fund for all employees as required by regulations, we provide various bene?ts such as statutory holidays, parentalleave, and paid sick leave, as well as festival bonuses, major illness condolences, team-building activities, and birthday celebrations.
E?ective Communication and Care
The Company cares for its employees by taking multiplemeasures to improve living and logistical support conditions,organizing leisure and cultural activities, enriching theemployees' cultural life, and regularly arranging variousrecreational activities to allow employees to enjoy their liveswhile working hard. Starting from practical work, we addressthe most concerning and realistic issues related to employees'immediate interests, including providing support to employeesfacing difficulties and helping employees' children enrollin nearby schools. We strengthen humanistic care servicesfor employees and strive to solve their concerns as much aspossible.
Chairperson ofthe labor union,HR department,baseadministrativemanagers
Talks
SuggestionBoxDedicatedEmail
EmployeeCongress
Employee feedback channels
Comfortable living andful?lling careers
Employeecare
Children’seducation
Assistance for
di?culties
*Return-to-work rate = Total number of male (female) employees who returned to work after the end of parental leave / Total number of male (female)employees who should return to work after the end of parental leave
Parental Leave VacationUnit
MaleEmployees
FemaleEmployeesEmployees on Parental Leave
Person
11525Employees who should return to work after the end of parental leaveduring the reporting period
11525Employees who actually returned to work after the end of parentalleave during the reporting period
11525Return-to-work rate of employees on parental leave*%100100
Distribution of gifts to female employees on International Women's Day
New Employee Talk, Birthday Celebration
Coordinated Cooperation for Shared Value Creation
5758
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Fun Sports DayDragon Boat Festival pitch-pot game
Team-building activitiesTug-of-War competition
Summer evening gala
Mid-Autumn Festival riddle guessing
Snooker competition
Employee Rights
Coordinated Cooperation for Shared Value Creation
6059
Human Capital Development
We actively create conditions for employees to be proactive and meet their learning and development needs, enabling them toachieve their career goals and personal value in resonance with the Company's development.We have allocated CNY 992,900 foremployee training and education. HY New Material was honored with the National Workers' Vanguard title and was selected for theannual list of civilized units in Baotou City, based on its outstanding practices in employee activities and cultural cultivation.
Internal training combines with external training to empower both leaders and professionals
InternalExternal
Onboarding
trainingTraining
foremployeeschangingpositions
Job skilltraining
Newproducttraining
Specialized personnel trainingProfessional technicalpersonnel trainingManagement personnel
training
Onboarding training for new employeesSafety training for production personnel
Training CategoryCourse Category
Scheduled Hours(hours/session)
Corporate Culture
Onboarding training for new employees
Training on HR regulations and rules
GeneralInterdepartmental communication skills2
Professional Skills
Pre-employment safety training8Basic knowledge and on-site management4Standardization of corporate safety productionAnalysis of typical accidents and emergency rescue cases
Equipment operation precautions
Slicer process ?ow
Strategic management for major clients3
Company-level training courses for 2023
Training on marketing tomajor clients
Coordinated Cooperation for Shared Value Creation
By the end of the reportingperiod
Employees who passthe assessment were
people
Human Capital Development
In accordance with theSkill Level Management Regulations, the Company organizesquarterly centralized skill assessments, promptly publicizes the results for employeesupervision, and continues to promote the reform of occupational skill levelrecognition for key positions in the production and quality departments of HongyuanNew Material (Xuzhou). Employees who pass the assessments receive correspondingsubsidies, encouraging the integration and development of technical talent andoverall improvement of the talent pool. By the end of the reporting period, a total of175 employees have been assessed and rewarded for their promotion, including 114at the junior level, 32 at the intermediate level, and 29 at the advanced level.
Bene?ts for Employees, Nurturing of Excellent Talents
Practical skill enhancement and theoretical exams
Highly skilled talents are always an important driving force for the development of the manufacturing industry. The Companyhas consistently regarded the nurturing of skilled talents as an important means to enhance core competitiveness. OnNovember 23, 2023, the closing ceremony of the second "HY SOLAR Gold Craftsman" Lean Production Skills Competitionwas successfully held. Advanced collectives and outstanding individuals were recognized for their outstanding performancein the competition. Taking the skills competition as an opportunity, we promote the establishment of a virtuous cycle for theadvancement of skilled talents with characteristics of the photovoltaic industry, enhancing the reputation of HY SOLAR as asymbol of excellent craftsmanship and providing a stage for outstanding individuals to shine.
Mastering Excellence in Craftsmanship
The development of a company requires both an excellent production team and a diligent functional team. We appreciatethe e?orts of all employees and conduct the "HY SOLAR Star" selection activity at our Xuzhou base every month, targetingemployees from various departments, including functional departments. Employees who make it to the list will receive anhonorary certi?cate and incentive bonus. The "HY SOLAR Star" awards also play a role in annual evaluations and promotions.Additionally, the list of awardees and their exemplary deeds will be regularly posted on the Company bulletin board to inspirecollective enthusiasm.
HY SOLAR Star
The Company promotes innovative development in vocational education, higher education, and continuing education through school-enterprisecooperation. This initiative aims to meet the employees' needs for improving professional knowledge and enhancing their educational background,aligning with the Company's talent strategy and optimizing the talent structure. We provide a 50% subsidy on tuition fees for employees who apply forcontinuing education, reducing the barriers for employees to pursue further education and supporting their educational aspirations. As of the end of thereporting period, 20 employees of HY SOLAR Xuzhou have been included in the discounted list for the 2023 employee educational advancement program.
Coordinated Cooperation for Shared Value Creation
6364
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Occupational Health and Safety
HY SOLAR has established and e?ectively operates an occupational health management system. We have set up a cross-departmentalsafety production management committee, chaired by the Chairman of the Board, with responsible persons from various departmentsand employee representatives serving as members. This guarantees strengthened investment of funds and resources to supportproduction management work. In terms of system certification, multiple business entities have obtained ISO 45001 OccupationalHealth and Safety Management System certi?cation, as well as recognition from external entities such as second-level standardizedenterprises for safety production, third-level standardized enterprises for safety production, and excellent cases of health enterprisedevelopment by the National Health Commission.
Comprehensive System Coverage
HY SOLAR fully complies with labor safety and occupational health laws and regulations, implementing the principle of "safety ?rst,prevention-oriented, comprehensive governance". We ?rmly establish the concept of "employee life is of paramount importance",ful?ll the enterprise's main responsibility for production, and promote the improvement of safety and health management systemsat all production bases. This ensures stable governance of employee safety and health.
All o?cially operational sites
have passed the ISO 45001Occupational Health andSafety Management Systemreview
External Compliance
Management measuresand regulations over
sets
More than
million
Internal AbidanceOSH Investment*
The Company coordinates and deploys special activities for safety production through the Safety and Environmental Protection WorkMeeting and the Safety Production Committee. Each base updates occupational health and safety production goals annually, conductsat least one occupational hazard factor detection per year, and distributes labor protection supplies such as earplugs and masksquarterly based on the detection report results. Additionally, the Company conducts annual hazard identi?cation, risk assessment,and hidden danger investigations, forming a risk list to guide recti?cation work. Responsible individuals track the progress, and aftercon?rmation, necessary noti?cations are provided to employees. Currently, major production bases are replacing hazardous workwith robots and manipulators, reducing production risks faced by employees by increasing the utilization of smart equipment.To leverage the supervisory role of employees, we publish safety production supervision telephone numbers and email addresses inthe production area, allowing employees to easily provide suggestions for safety improvement. Employees can also report directly tothe on-site managers, and the Company will promptly rectify the issues after investigation.In 2023, a total of 1,155 issues were identi?ed through special safety inspections, with a recti?cation rate of 100%.
Stable Risk Management
Industrial noisereached standards
chemical leaks per year
?re and explosion accidents throughout the yearNo occupational diseases occurred
incidents of minor injuries
incidents of severe injuries, disabilities, or fatalities
Achieved
Occupational Health and Safety GoalsStatus of achievement
Coordinated Cooperation for Shared Value Creation
6566
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
In order to ensure that employees fully understand the importance of safety production and enhance their safety awareness and senseof responsibility, and to encourage employees to actively identify and rectify safety hazards in their work areas, the EHS departmentsof HY SOLAR's various bases have organized nearly a hundred safety training sessions, accumulating over a thousand participants,in accordance with the annual training plan. The training courses include environmental hazard identi?cation training, occupationalhealth and safety knowledge training, and multiple emergency response drills. Through summarizing exposed issues and de?cienciesand timely improvement, the training reinforces safety advocacy for key personnel.
Frequent Training and Drills
Fire Safety Day
Hongyuan New Material (Baotou)Argon Gas Leak Accident Drill
Occupational Health and Safety
Hongyuan Energy Emergency Plan Drill2023
Coverage of PhysicalExaminations and HealthRecords
%
OccupationalHealth and SafetyEmergencies
casecasecase
Signi?cant andabove ProductionSafety Accidents
Work-relatedfatalities due toproduction accidents
0.477
Million HoursLost Time InjuryFrequency
Community and CharityContributions
HY SOLAR responds to the national call for "common prosperity", takes responsibility to heart, and actively participates incommunity building, charitable assistance, and other social welfare undertakings. Internally, we are pragmatic and fully tap into thepotential of positions to create employment opportunities. Through business planning, institutional measures, and performanceassessments, we hope that employees can achieve "employment for one person, poverty alleviation for the whole family" afterjoining the Company. Externally, we provide meticulous services, maintain close connections with society, establish smoothcommunication channels, and promote a virtuous cycle of "sharing regional resources and sharing development achievements".In 2023, we donated CNY 2,0237 billion in poverty alleviation, disaster relief, education assistance, agricultural support,environmental improvement, and ecological protection.
Visiting Impoverished HouseholdsSummer Refreshment Delivery Event
2,0237donated CNYetc.
billionPovertyalleviation
Disasterrelief
Educationassistance
Agricultural
support
EcologicalprotectionEnvironmentalimprovement
The heavens move in silence, and the earth gives rise toall things without words. Development has improved ourlives and changed the environment we inhabit. In 2023,Hongyuan New Material (Baotou) engaged in volunteerservices in nature, clearing flammable materials andlearning practical skills for wildland ?re?ghting.
Spring Forest Fire Prevention Volunteer Activity
Coordinated Cooperation for Shared Value Creation
YuanTech Solar Chemical Training
6867
Strengthening the
Foundation for a Long-
lasting Business
Rigorous construction of the three boards, emphasizing pluralism and independenceStrengthen risk management and enhance publicity and trainingEstablishment of monitoring and reporting channels and protection of rewards forwhistle blowersEstablishment of a diversified capital market communication system
Responsible corporate governanceProvideing high quality and detailed servicesAssuming the responsibilities of a listed company
ACTION:
RESPONSE:
Directors' attendance rate (Board of Directors,specialised committees) 100%Ensure the legality and fairness of related partytransactions2022-2023 Shanghai Stock Exchange'sinformation disclosure evaluationSignature rate of employees onCommitment toIntegrity
No cases related to unfair competition and taxviolationsNo information security and privacy leakage
ACHIEVEMENT
Objectives2023
B
Completed
Completed
Completed
Completed
%
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Strengthening the Foundation for a Long-lasting Business
P69P69P75P77P78
Corporate GovernanceRisk ManagementInformation Security ManagementInvestor RelationsCustomer Relationship Management
Strengthening the Foundation for a Long-lasting Business
7069
Diversity and Independence
A scientific governance system and a reasonable allocation of rights and responsibilities are important prerequisites for acompany to consolidate its foundation. As a listed company on the A-share market, HY SOLAR strictly adheres to regulationssuch as theCompany Law of the People's Republic of China, theSecurities Law of the People's Republic of China, and theGuidelines for Corporate Governance of Listed Companies. We have established the Company's governance structure, whichincludes the Shareholders' General Meeting, the Board of Directors, the Supervisory Board, and the Management Team. TheBoard of Directors has committees such as the Strategic Committee, the Compensation and Assessment Committee, theNomination Committee, the Audit Committee, and the SDG Committee. These committees are responsible for the overalloperation, supervision, and regular review and assessment of the Company, ensuring high-level corporate governance toprotect the interests of all stakeholders and build a high-value corporate brand.
The election of the Board of Directors is conducted every three years, and the appointment of board candidates considers diversecriteria, including but not limited to gender, age, culture, educational background, industry experience, professional quali?cations,and skills. As of the end of the reporting period, the Board of Directors consists of seven members, including three independentdirectors and one female director, with rich experience in ?nance, ?nancial management, smart manufacturing, global marketexperience, and risk management. This enhances the scientific and feasibility aspects of the Board's decision-making. TheSupervisory Board consists of three members, including one employee representative.
Corporate Governance
GenderDegreeAge group
Undergraduateand others
≥60Female
Doctor
50-59Male
Master
30-39
Except for the Chairman of the Board, who serves as the convener of the Strategic Committee, the conveners of the Nomination, Audit,and Compensation and Assessment Committees are all independent directors.
Director remuneration and performance incentive plans are implemented after approval by the Shareholders' General Meeting. Thesenior management remuneration management system is implemented after deliberation by the Board of Directors. The remunerationof the aforementioned personnel, except for independent directors, consists of basic salary and performance incentives.
*The convener is a professional in accounting.
CommitteePercentage of Independent Directors (%)Number of Meetings
Nomination Committee
67%
Audit Committee*6Rumuneration and AssessmentCommittee
Key Performance
Convened
Reviewed and approved
motions
Board of Directors MeetingConvened
meetingsmeetingsmeetingsReviewed and approved
motions
Shareholders' General Meeting
Convened
Reviewed and approved
motions
Supervisory Board Meeting
Risk Management
Comprehensive risk control is the only way for organizations to seize development opportunities. The Company integrateschanges in laws and regulations, business expansion needs, and compliance management goals, and assigns riskmanagement and internal control to the Legal A?airs Department. The headquarters and the legal a?airs departmentsof subsidiaries form a two-tier risk management coordination and execution mechanism. Through the "Identify-Prevent-Control" three-step process, the Company achieves regular monitoring and governance of operational, financial, andoperational risks in various production and operational processes. During the reporting period, the Company revisedseveral management documents such as theIntegrity Management Systemand theAnti-Unfair Competition ManagementSystem, clarifying risk classification and grading standards, laying a foundation for establishing and improvingcomprehensive risk management and internal control mechanisms.
Management Requirements
Risk Identi?cationRisk ControlDelegation by Position: The headquarters andsubsidiaries conduct annual integrity self-inspectionsin key positions such as procurement, sales,production, research and development, ?nance, andpersonnel. By analyzing institutional processes, jobresponsibilities, and personnel behavior, risks areidenti?ed.
Hierarchical Prevention: Combining the Company'sactual business, risk assessments are conducted todetermine the level of integrity risks in key positions.Based on the level of integrity risks, different levelsof management are implemented for positions withdi?erent risk levels.
Anti-corruption andcommercial briberyPrevention of moneylaundering and terrorist?nancingData protection and datasecurityFair competition and anti-trustlawCon?icts of interestIntellectual propertyExport control and economicsanctionsWhistleblowing and protection
Environmental managementcomplianceUse of natural resources and airpollutionClimate protection andreduction of greenhouse gasemissionsWaste, wastewater andhazardous substancesProduct quality and safetyCon?ict minerals
Anti-forced labor andprohibition of child laborAnti-discriminationOccupational health and safetyRegulations governing hours ofwork and payThe right of freedom ofassociation and collectivebargaining
Corporate EthicsEnvironmental ProtectionHuman Rights and Fair
Working Conditions
In 2023, we organized a special training onLegal Risk Preventionand Management in Enterprise Employmentat our main productionbases. On one hand, this helped us avoid potential legal risks in laboremployment and improve our risk management effectiveness. On theother hand, it provided beneficial guidance for employees to protecttheir own rights and interests, accelerating the transformation of laborcosts into human capital. We regularly conduct integrity training forsenior executives, inviting the judiciary to provide on-site training,enhancing the legal awareness and bottom-line thinking of managementpersonnel.Responsible Business PracticesCompliance with business ethics is not only the expectation of society towards business entities but also a reliable guarantee for maximizingthe value chain benefits for enterprises. The Company requires all employees to conduct business in accordance with the laws andregulations of the markets in which they operate. We have implemented theAnti-Unfair Competition Management Systemto ensure thatall employees fully understand and address issues related to commercial confusion, commercial bribery, false advertising, unfair prize salespractices, infringement of trade secrets, defamation of competitors, and unfair competition in the online domain. Compliance managementrequirements are embedded in frontline business operations to guide employees in handling issues properly and ensure comprehensive andall-encompassing compliance throughout the entire process.The Company has signed aCommitment to Integritywith all employees and regularly organizes integrity-based training, anti-corruptionactivities, and ethics culture education to urge employees to uphold the bottom line of compliance. Additionally, we include integrityprovisions in contracts with suppliers, and suppliers who seriously violate the Company's integrity regulations will have their cooperationterminated.In the face of complex international political, economic, and legal environments, the Company actively expands its overseas business marketswhile maintaining a strong focus on compliance in the overseas business chain. We have timely introduced the "Overseas Supplier Code ofConduct", which clearly demonstrates our commitment to jointly maintaining business ethics, protecting the environment, safeguardinghuman rights, and ensuring equal working conditions with enterprises in the value chain. We have established comprehensive institutionalarrangements to address the challenges of compliance in overseas operations, providing strong support for high-quality cross-borderdevelopment.
Through long-term practice, the Company has gradually developed a diverse compliance awareness promotion system that combines on-sitetraining, online courses, and daily publicity. We continuously implement key training programs on integrity education, values promotion, codeof conduct, risk prevention, and more.
Training on Interpreting Bidding Laws and Regulations and Contract Negotiation and Review Standards
Electronic PublicationsKey Performance
Integrity trainingCoverage of integrity training inproduction bases
Regular audits and specialinspections
2410046sessions%times
Strengthening the Foundation for a Long-lasting Business
Multilingual Product Brochure
7374
Responsible MarketingConducting corporate influence promotion in aresponsible manner is essential for building brandreputation. All marketing activities carried out byHY SOLAR comply with relevant laws, regulations,and social norms applicable to the operation sitesand business locations. All textual and data-basedpromotional content is based on the actual situationof the Company's products, reliable sources, andsupporting data.We have issued the "HY Market Marketing ComplianceManagement Document", the Marketing Center's"Product Information Disclosure Compliance",and "Anti-Corruption Compliance Handbook forMarketing Personnel" to restrict employees andmarketing partners from using any false or misleadingadvertising, ensuring the accurate and truthfulcommunication of corporate and product informationto customers and the market. Additionally, allmarketing-related employees regularly receiveresponsible marketing compliance training, includingbut not limited to marketing laws and regulations,industry guidelines, and internal regulations, tostrengthen internal communication and deepenemployees' understanding of marketing compliancesystems, ensuring that actual business operations donot cross ethical boundaries.In 2023, we established marketing service centers inGermany and Singapore, where service personnel canpromptly respond to customer inquiries in the locallanguage and provide product documents presentedin the local language, thereby enhancing informationaccuracy and optimizing customer experience.
Supervision and Reporting
Tax Governance
HY SOLAR actively creates a safe and confidential reporting environment, establishing a compliant reporting systemthat is not subject to retaliation. This system allows for early detection and correction, protects the legitimate rights andinterests of the Company and whistleblowers, and optimizes the business environment. The Company speci?es reportingchannels in multiple documents, including employee handbooks, procurement agreements, and supplier code of conduct,encouraging all stakeholders, including but not limited to employees, suppliers and their employees, customers, investors,and the media, to provide information they possess through real-name or anonymous reporting. Once verified, theCompany rewards the whistleblowers, jointly supervising and fostering a clean and upright atmosphere.We strictly handle employees involved in violations in accordance with regulations, and those with serious o?enses will behanded over to judicial authorities. By increasing the cost of non-compliance, we urge employees to strictly adhere to thebottom line and maintain a sense of awe.
We adopted theTax Administration Systemto regulate the daily management of tax matters and clarify theresponsibilities of tax work. Our ?nancial personnel continuously study tax policies and keep abreast of adjusted taxplanning schemes. The ?nance team is responsible for internal and external communication and timely organizationof tax policy explanation and training. The headquarters and subsidiary finance departments conduct self-examinations of daily tax matters at least once every six months, systematically evaluate the standardization and riskpoints of various tasks, report the self-examination results to the higher-level ?nance department, and implementimprovement measures. When necessary, the Company actively seeks support from professional external thirdparties to deal with tax inspections from domestic and foreign tax authorities.In 2023, the Company did not receive any tax violation penalties.
Reporting Email：hongyuanjc@hongyuanxcl.comMailing Address: General Manager O?ce, No. 158, Nanhu Road Central, Binhu District, Wuxi City, Jiangsu Province
Reporting Phone：+86 18921275176
Strengthening the Foundation for a Long-lasting Business
Management Documents
OA Management SystemO?ce Equipment Management System
Internet Usage Management System
File Encryption Management SystemNetwork Security Emergency PlanLow Voltage Room Management System
Security Control MeasuresWe adhere to the principle of minimum necessary in information collection for products and services, and implement theprinciple of least privilege in information access and processing. We require employees to sign theInformation SecurityCon?dentiality Agreementand convey management requirements to all employees through internal training to provide themwith security awareness, guide them to act in accordance with company security policies, and enable them to promptly reportsecurity vulnerabilities to avoid property losses for the Company. Any employee found to violate the con?dentiality agreementwill be subject to penalties such as warnings, disciplinary actions, and compensation.
Information SecurityManagement
Safety and reliability are inherent requirements for the digital and smart transformation of enterprises. To win and maintain thetrust of partners, we implement transparent, open, and secure principles through responsible systems and measures, and carryout network security and data privacy protection projects. In terms of security management architecture, the Company hasestablished a cross-departmental information security governance structure to supervise and coordinate the collection and useof internal information and data, system operation and maintenance, and technology development and application.
CoordinationManagement
Execution
Information Security Committee
Information Security TrainingHoneypot System Control Interface
Key Performance
2021-2023Number of major cybersecurityincidents from 2021 to 20232021-2023Number of signi?cant informationleaks from 2021 to 2023
2023Information and networksecurity training coverage00100casecase%
In 2023, we launched the first phase of the information system reinforcement project, focusing on network security, ITsecurity, integrated systems, and technological applications. We transformed passive defense into active prevention andcontrol, dynamically monitoring system network security. This includes, but is not limited to, tightening firewall access atthe boundary, optimizing host security configurations, adding bastion hosts as remote access jump points, conductingperiodic vulnerability scans, and controlling the installation of third-party software. Any system of the Company must undergothorough security review before going live and obtain approval from the group to ensure compliance requirements are met.We conduct internal attack-defense exercises, strengthen risk capability assessment, and continuously track and rectifyproblems exposed during simulated drills. We also refer to external standards and norms such as ISO 27001 to continuouslyimprove the quality of data security management.
Strengthening the Foundation for a Long-lasting Business
7778
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Investor Returns
Investor Communication
HY SOLAR has always adhered to the original intention of being a listed companyand consistently maintains awareness of safeguarding the rights of investors toinformation and supervision. We consider improving the quality of listing as anessential aspect of our own development, ensuring that information disclosure istruthful, accurate, complete, and timely. The Company voluntarily discloses signi?cantand crucial information related to investors' value judgments and investmentdecisions. We prioritize investor experience, uphold the principles of concise and clearinformation disclosure, and enhance mutual trust and understanding with investors.As a result, we obtained a B-grade rating in the 2022-2023 Shanghai Stock Exchange'sinformation disclosure evaluation. Since our listing, we have not encountered anyinstances of incorrect or omitted information disclosure or regulatory penalties.
We consider ourselves responsible to investors and society, utilizing funds correctly and maintaining objectivity and rationality.We strive for excellence, promote craftsmanship spirit, and enhance competitiveness. We strengthen organizational resilience andimprove return e?ciency. As a listed company, the protection of shareholders' rights and interests is not only our obligation, but alsothe cornerstone of our trust in the capital market. In mid-2023, the Company has already paid a cash dividend of CNY0.55 per share (taxincluded) to all shareholders, totalling CNY317,797,999.75 (tax included).After comprehensively considering the Company's development stage, future capital requirements and other factors, the Companyproposes to pay a cash dividend of CNY0.02 (tax included) per share to all shareholders (except for the Company's special securitiesaccount for repurchase) again, with a total of CNY13,677,743.16 (tax included), which is subject to the consideration of the generalmeeting of shareholders before implementation. Combining the two distribution plans, the Company will pay out a cumulative cashdividend of CNY331,475,742.91 (tax included) for the whole year of FY2023, representing a cash dividend distribution ratio of 44.76%.As of 2023, the Company has cumulatively distributed cash dividends of CNY2.048 billion since its listing (including the 2023 dividendplan).
Investor Relations
*[Calculation Formula] Social Contribution Value per Share = Earnings per Share + (Total Tax Amount + Employee Expenses + Interest Expenses+ Total Philanthropic Investment - Social Costs) / Total Shares at the End of the Period
Key performance in 2023
Publication of notices
copies
SSE Interactive replied
times
Investor Communication Channels
O?cial website'sinvestor relations
section
Regularannouncements
and ad hocdisclosures
Investorhotline andemail
Shareholders'generalmeetings
Performancebrie?ngs
Shanghai Stock
ExchangeE-interactionplatform
To expand brand in?uence and accelerate our own development and innovation within the industry, we actively participate in mediaactivities. We seize every face-to-face communication opportunity to gain valuable experience and cooperation, while maintainingclose and e?ective two-way communication with customers and the market. This allows us to continuously showcase the new imagesof HY SOLAR.
Customer RelationshipManagement
SNEC 16th (2023) International Photovoltaic PowerGeneration and Smart Energy Exhibition & Conference
All-energy Australia 2023
18th AsiaSolar Photovoltaic and Energy StorageInnovation Exhibition and Cooperation Forum
15th Chinese Renewable EnergyConference & Exhibition
Strengthening the Foundation for a Long-lasting Business
Indicators2020202120222023
Social Contribution Value per Share* (CNY)
3.177.599.912.39
8079
2023 Clean Energy Technology Capital Forum
Automotive and Optical Storage SiCApplication and Supply Chain Upgrade
Conference 2023
2023 Energy Think Tank Summit
2023 HY SOLAR N-type 210R Module Launch
and Media Salon
In addition, the Company has established two dedicated teams to manage customer service on the material and component sides,taking into full consideration the di?erent characteristics of the target customer groups to make customer management more precise.The service team conducts annual customer satisfaction surveys and provides end-to-end customer service following the guidelines ofthe "Customer Service Management Procedures" to enhance customer satisfaction and build a reputation for quality.
Product testing and
certi?cationProviding corporate brochures
and product manuals Customer visits
On-site technical supportReception of customerfactory inspections and quality
inspections
Providing installation manuals
Customer follow-up visits
Handling customercomplaintsConducting satisfaction
surveys
Pre-salesDuring salesAfter-sales
The sales departmentsubmits customercomplaints in theform of a "CustomerComplaint InformationForm" to the relevantquality department.
The quality department
analyzes the formand distributes ananalysis report to therelevant departments,
organizing customer
discussions.
Within 24 hours, thequality departmentcontacts the customer tonegotiate a solution and
processing deadline,formulates andimplements corrective
and preventivemeasures until thecustomer is satis?ed.
The relevantdepartmentsmake permanentimprovements, andthe quality department
is responsible fortracking the qualityafter improvement,modifying and archiving
relevant documents.
FeedbackAnalysisImprovementClosure
Customer Complaint Handling Procedures
Customer Satisfaction Management
Wide-rangingComprehensive
Product quality Service quality Price Delivery qualityThe satisfaction survey
questionnaire was usedto collect feedback, and93% of questionnairesreturned
Establishing serviceteams for di?erentcustomer groups
Positive evaluations
from customers, withmultiple indicatorsreceiving a "satis?ed"rating
Customer Privacy ProtectionWe run a privacy compliance process established based on Customer Privacy Protection Management System to ensure the complianthandling of customer data information and maintain data security and con?dentiality. This is achieved through standardized datacollection and processing procedures, control of data access and permissions, security audits and monitoring, strengthened networksecurity protection, and the formulation of data leakage and security incident emergency response measures.In 2023, the Company did not receive any complaints or incidents related to customer privacy infringement or loss of customer data.
ReliableProfessional
Strengthening the Foundation for a Long-lasting Business
Customer satisfaction
202220232021
949496
%%%
8182
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
Independent Veri?cation StatementTo the management and stakeholders of HY SOLAR,T?V S?D Certi?cation and Testing (China) Co., Ltd. Shanghai Branch (hereinafter referred to as “T?V S?D”) has been engaged by HONGYUANGREEN ENERGY CO., LTD.. (hereinafter referred to as “HY SOLAR” or “the Company”) to perform an independent third-party veri?cation onHONGYUAN GREEN ENERGY CO., LTD. 2023 Environmental, Social and Governance (ESG) Report (hereinafter referred to as “the Report"). Duringthis veri?cation, T?V S?D's veri?cation team strictly abided by the contract signed with HY SOLAR and provided veri?cation regarding the Reportin accordance with the provisions agreed by both parties and within the authorized scope stipulated in the contract.This Independent Veri?cation Statement is based on the data and information collected by HY SOLAR and provided to T?V S?D. The scope ofveri?cation is limited to the given information. HY SOLAR shall be held accountable for authenticity and completeness of the provided data andinformation.
Limitations
The veri?cation process is conducted in the above scope and place. Sampling and veri?cation are adopted for the data and information in theReport by T?V S?D, and only the stakeholders within the Company are interviewed; andThe Company's standpoint, opinions, forward-looking statements and predictive information as well as the historical data and informationbefore January 1st, 2023 are beyond the scope of this veri?cation.
Scope of Veri?cationTime frame of this veri?cation:
The Report contains the data disclosed by HY SOLAR during the reporting period from January 1st, 2023 to December 31st, 2023, includingeconomic, environmental and social information and data, methods for management of material topics, actions/measures and the Company'ssustainability performance during the reporting period.Physical boundary of this veri?cation:
The on-site veri?cation sampling took place at below listed location:
158 Nanhu Middle Road, Xuelang Sub-district, Binhu District, Wuxi, Jiangsu Province, China.Scope of data and information for the veri?cation:
The scope of veri?cation is limited to the data and information of HY SOLAR and all companies under its operational control covered by theReport.The following information and data are beyond the scope of this veri?cation:
Any information and contents beyond the reporting period of the Report; andThe data and information of HY SOLAR’s suppliers, partners and other third parties; andThe ?nancial data and information disclosed in this Report that have been audited by an independent third party are not veri?ed again herein.
Veri?cation Conclusions
According to the verification, we believe that the data and information presented in HY SOLAR’s Report are objective, factual and reliable,without systematic problems, and can be used by stakeholders.The veri?cation team has drawn the following conclusions on the Report:
Inclusivity
HY SOLAR has identi?ed the major stakeholders such as employees, shareholders and investors, clients and customers,partners, governments and regulatory authorities, NGO and local communities (including residents, etc., andestablished a stakeholder communication mechanism to collect the demands of stakeholders on a regular basis.Materiality
HY SOLAR has established the prioritization process of material topics determination, identi?ed and assessed thepriority of the sustainability topics which are highly related to the industry, the Company disclosed the governancestructure, management approach as well as sustainability performance in corporate operation, therefore the Report’sadherence to materiality principle is guaranteed.Responsiveness
HY SOLAR has disclosed the management approach and performance of high material topics that stakeholders concern,such as human capital development, occupational safety and health, product quality and safety, sustainable supplychain, respond to climate change, opportunities in clean technology, business ethics, etc., to fully respond to thedemands and expectations of stakeholders.Impact
HY SOLAR monitors and discloses quantitative performance every year, describing the positive and negative impacts ongovernance, environment, and society. The Company has established a Sustainable Development Management (SDG)Committee, whose members come from middle and senior managers from various sustainable development-relateddepartments. The SDG Committee accepts the supervision of the board of directors and conducts internal democraticconsultations from time to time to resolve key issues that restrict sustainable development.Recommendations on Continuous ImprovementManagement improvement recommendations have been communicated to HY SOLAR management for reference during the verificationprocess.
Statement on Independence and Veri?cation CapabilityT?V S?D is a trusted partner of choice for safety, security and sustainability solutions. It specialises in testing, certi?cation, auditing and advisoryservices. Since 1866, T?V S?D has remained committed to its purpose of enabling progress by protecting people, the environment and assetsfrom technology-related risks. Today, T?V S?D is present in over 1,000 locations worldwide with its headquarters in Munich, Germany. T?V S?Dhas been committed to sustainable development and actively promotes environmental protection related projects. Over the years, T?V S?D hasbeen actively expanding its performance in energy management, renewable resources, and electric automobiles, etc., helping its customers meetsustainable development needs.T?V S?D Certi?cation and Testing (China) Co., Ltd. Shanghai Branch is one of T?V S?D's global branches and has an expert team whose membershave professional background and rich industrial experiences.T?V S?D and HY SOLAR are two entities independent of each other and both T?V S?D and HY SOLAR and their branches or stakeholders have nocon?ict of interest. No member of the veri?cation team has business relationship with the Company. The veri?cation is completely neutral. All dataand information in the Report are provided by HY SOLAR.Signature:
On Behalf of T?V S?D Certi?cation and Testing (China) Co., Ltd.
Zhu WenjunT?V S?D Sustainability Authorized Signatory O?cerApril 3rd, 2024Wuxi, China
Independent Veri?cation Statement
Basis for the Veri?cationThis veri?cation process was conducted by T?V S?D's expert team with extensive experience in the economic, environmental, social and otherrelevant areas and drew the conclusions thereof. The veri?cation conforms to the following standards:
In order to perform adequate veri?cation in accordance with the contract and provide reasonable veri?cation for the conclusions, the veri?cationteam conducted the following activities:
International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other than Audits or Reviews of Historical FinancialInformation, Limited AssuranceT?V S?D Procedure of Veri?cation on Sustainability ReportPreliminary investigation of the relevant information before the veri?cation;Con?rmation of the presence of the topics with high level of materiality and performance in the Report;On-site review of all supporting documents, data and other information provided by HY SOLAR; tracing and veri?cation of key performanceinformation;Special interview with the representative of HY SOLAR’s management; interviews with the employees related to collection, compilation andreporting of the disclosed information; andOther procedures deemed necessary by the veri?cation team.
8384
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
AppendixKep Performance TableEnvironmental PerformanceEnergy UtilizationWater Resources Utilization
Solid Waste Disposal
Material DisposalGHG Emissions
IndicatorsUnit202120222023Natural Gas
m375,851.1677,706.1613,830,709.00GJ2,700.962,767.00492,490.84Gasoline
L72,318.0075,530.16141,547.74GJ2,261.022,361.444,425.47Diesel
L68,485.0074,405.0095,056.23GJ2,456.712,669.073,409.87Outsourcing Electricity
KWH1,203,685,626.001,929,794,431.002,951,177,915.00GJ4,333,268.256,947,259.9510,624,240.49Total Energy ConsumptionGJ4,340,686.946,955,057.4711,124,566.67Proportion of OutsourcedElectricity in TotalEnergy Consumption
%99.8399.8995.50Energy ConsumptionIntensity of OutputValue (RMB 10,000)
GJ per OutputValue (RMB10,000)
3.983.179.38
IndicatorsUnit202120222023Total Water Withdrawal
Ton
4,097,940.616,824,387.009,307,220.88Total Water Discharge1,220,395.082,038,524.604,344,412.00Total Water Consumption2,877,545.534,785,862.404,515,265.88
IndicatorsUnit202120222023Hazardous Waste
Ton
8.2810.6959.64General Solid Waste6,200.0029,100.0031,760.72Total Solid Waste6,208.2829,110.6931,820.36
IndicatorsUnit202120222023
Total weight of materials that are used to produceand package the organization's primary products(nonrenewable materials)
Ton
3,106.003,847.003,996.00Total weight of materials that are used to produceand package the organization's primary products(nonrenewable materials)
1,417.003,114.001,682.00Percentage of recycled input materials used tomanufacture the organization's primary products andservices (%) [ Proportion of silicon recycled and reusedin the production process of Hongyuan New Material(Baotou) (%) ]
*
%465048
Indicators
EmissionSource
Unit202120222023Direct (Scope 1) GHGEmissions
Natural Gas
Tons of Carbon DioxideEquivalent
151.67155.388,238.18
Gasoline173.32181.02299.31Diesel178.30193.71247.20Energy Indirect (Scope 2) GHGEmissions
OutsourcingElectricity
686,461.911,100,561.761,683,056.76Total GHG Emissions (Scope 1 & 2)686,965.201,101,091.881,691,841.46Emission intensity per RMB 10,000 outputvalue
Tons of carbon dioxideequivalent / RMB10,000 output value
0.630.501.43
*Proportion of silicon recycled and reused in the production process of Hongyuan New Material (Baotou) (%)
Appendix
8586
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
GRI Standards Index
Statement of useHONGYUAN GREEN ENERGY CO., LTD. has reported in accordance with the GRI
Standards for the period from 1 January 2023 to 31 December 2023.GRI 1 UsedGRI 1: Foundation 2021Applicable GRI Industry Standard(s) NoneGRI STANDARDDISCLOSURE
LOCATIONOMISSIONGRI 2: General Disclosures 2021The organization and its reporting practices2-1 Organizational detailsCompany Overview2-2 Entities included in the organization’s sustainabilityreporting
About This Report2-3 Reporting period, frequency and contact pointAbout This Report2-4 Restatements of information
There is no restatement of
information in this report.2-5 External assuranceActivities and workersActivities and workers2-6 Activities, value chain and other business relationshipsCompany Overview2-7 EmployeesCompany Overview2-8 Workers who are not employeesCompany OverviewGovernance2-9 Governance structure and composition
Organizational Structure
Corporate Governance2-10 Nomination and selection of the highest governancebody
Corporate Governance2-11 Chair of the highest governance bodyCorporate Governance2-12 Role of the highest governance body in overseeing themanagement of impacts
Sustainability Management
Framework2-13 Delegation of responsibility for managing impacts
Sustainability Management
Framework2-14 Role of the highest governance body in sustainabilityreporting
Sustainability Management
Framework2-15 Con?icts of interestRisk Management2-16 Communication of critical concernsRisk Management
GRI STANDARDDISCLOSURE
LOCATIONOMISSION
2-17 Collective knowledge of the highestgovernance body
Sustainability Man-agement Framework2-18 Evaluation of the performance of the highestgovernance body
Corporate Governance2-19 Remuneration policiesCorporate Governance2-20 Process to determine remunerationCorporate Governance2-21 Annual total compensation ratio/
[Con?dentiality constraints] Weare unable to calculate for thetime being because it involves theprivacy of overseas employees.Strategy, policies and practices2-22 Statement on sustainable developmentstrategy
Sustainability Man-
agement Framework2-23 Policy commitmentsCorporate Governance2-24 Embedding policy commitmentsRisk Management2-25 Processes to remediate negative impactsRisk Management2-26 Mechanisms for seeking advice and raisingconcerns
Risk Management2-27 Compliance with laws and regulationsRisk Management2-28 Membership associationsCompany OverviewStakeholder engagement2-29 Approach to stakeholder engagement
Stakeholder Engage-
ment2-30 Collective bargaining agreementsEmployee RightsGRI 3: Material Topics 20213-1 Process to determine material topicsMateriality Assessment3-2 List of material topicsMateriality AssessmentGRI 201: Economic Performance 20163-3 Management of material topicsRefer to annual report201-1 Direct economic value generated anddistributed
Refer to annual report201-2 Financial implications and other risks andopportunities due to climate change
Climate Actions201-3 De?ned bene?t plan obligations and otherretirement plans
Refer to annual report201-4 Financial assistance received fromgovernment
Refer to annual reportGRI 202: Market Presence 20163-3 Management of material topicsRefer to annual report
Appendix
8788
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
GRI STANDARDDISCLOSURE
LOCATIONOMISSION202-1 Ratios of standard entry level wage by gendercompared to local minimum wage
/
[Con?dentiality con-straints] Thereare statistical di?culties involvingoverseas employees. However, thestarting salaries are all higher thanthe local minimum wage.202-2 Proportion of senior management hired from thelocal community
Refer to annual reportGRI 203: Indirect Economic Impacts 20163-3 Management of material topics
Community and Charity
Contributions203-1 Infrastructure investments and services supported
Community and Charity
Contributions203-2 Signi?cant indirect economic impacts
Community and Charity
ContributionsGRI 204: Procurement Practices 20163-3 Management of material topics
Sustainable Supply
Chain204-1 Proportion of spending on local suppliers
Sustainable Supply
ChainGRI 205: Anti-corruption 20163-3 Management of material topicsRisk Management205-1 Operations assessed for risks related to corruptionRisk Management205-2 Communication and training about anti-corruptionpolicies and procedures
Risk Management205-3 Con?rmed incidents of corruption and actionstaken
Risk ManagementGRI 206: Anti-competitive Behavior 20163-3 Management of material topicsRisk Management206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices
Risk ManagementGRI 207: Tax 2019207-1 Approach to taxRisk Management207-2 Tax governance, control, and risk managementRisk Management207-3 Stakeholder engagement and management ofconcerns related to tax
Risk Management207-4 Country-by-country reportingRisk ManagementGRI 301: Materials 20163-3 Management of material topics
Product Lifecycle
Management301-1 Materials used by weight or volume
Key Performance Ta-ble
- Environment301-2 Recycled input materials used
Product Lifecycle
Management301-3 Reclaimed products and their packaging materials
Product Lifecycle
Management
GRI STANDARDDISCLOSURE
LOCATIONOMISSION
GRI 302: Energy 2016Energy Management3-3 Management of material topicsEnergy Management302-1 Energy consumption within theorganization
Key Performance Table -Environment302-2 Energy consumption outside of theorganization
/
[Information unavailable/ incomplete]Not collectedenergy consumption related to upstream and downstreamcategories and activities yet.302-3 Energy intensity
Key Performance Table -Environment302-4 Reduction of energy consumption
Key Performance Table -Environment302-5 Reductions in energy requirementsof products and services
Energy ManagementGRI 303: Water and E?uents 20183-3 Management of material topics
Water Resource
Management303-1 Interactions with water as a sharedresource
Water Resource
Management303-3 Management of water discharge-related impacts
Environment
Compliance303-3 Water withdrawal
Key Performance Table -
Environment303-4 Water discharge
Key Performance Table -
Environment303-5 Water consumption
Key Performance Table -
EnvironmentGRI 304: Biodiversity 2016304-1 Operational sites owned, leased,managed in, or adjacent to, protectedareas and areas of high biodiversity valueoutside protected areas
/
[Not applicable]The development, construction, and siteselection of all the Company's base projects are not locatedin or near natural resource conservation areas or areas withrich biodiversity.304-2 Signi?cant impacts of activities,products and services on biodiversity
Ecological Conservation304-3 Habitats protected or restored/
[Not applicable]The development, construction, and siteselection of all the Company's base projects are not locatedin or near natural resource conservation areas or areas withrich biodiversity.304-4 IUCN Red List species and nationalconservation list species with habitats inareas a?ected by operations
/
[Not applicable]The development, construction, and siteselection of all the Company's base projects are not locatedin or near natural resource conservation areas or areas withrich biodiversity.GRI 305: Emissions 20163-3 Management of material topicsClimate Actions305-1 Direct (Scope 1) GHG emissions
Key Performance Table -
Environment305-2 Energy indirect (Scope 2) GHGemissions
Key Performance Table -
Environment305-3 Other indirect (Scope 3) GHGemissions
/
[Information unavailable/ incomplete] Not collected dataon its other indirect (Scope 3) GHG emissions yet.305-4 GHG emissions intensity
Key Performance Table -
Environment305-5 Reduction of GHG emissionsClimate Actions
Appendix
8990
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
GRI STANDARDDISCLOSURE
LOCATIONOMISSION
305-6 Emissions of ozone-depleting substances(ODS)
/
[Not Available]Not involve ozone-depletingsubstances (ODS) emissions in its processes,products and services305-7 Nitrogen oxides (NOx), sulfur oxides (SOx),and other signi?cant air emissions
Waste and HazardousEmissions ManagementGRI 306: Waste 20203-3 Management of material topics
Waste and HazardousEmissions Management306-1 Waste generation and signi?cant waste-related impacts
Waste and HazardousEmissions Management306-2 Management of signi?cant waste-relatedimpact
Waste and HazardousEmissions Management306-3 Waste generated
Key Performance Table -Environment306-4 Waste diverted from disposa
Key Performance Table -Environment306-5 Waste directed to disposal
Key Performance Table -EnvironmentGRI 308: Supplier Environmental Assessment 20163-3 Management of material topicsSustainable Supply Chain308-1 New suppliers that were screened usingenvironmental criteria
Sustainable Supply Chain308-2 Negative environmental impacts in thesupply chain and actions taken
Sustainable Supply ChainGRI 401: Employment 20163-3 Management of material topicsEmployee Rights401-1 New employee hires and employeeturnover
Employee Rights401-2 Bene?ts provided to full-time employeesthat are not provided to temporary or part-timeemployee
Employee Rights401-3 Parental leaveEmployee RightsGRI 402: Labor/Management Relations 20163-3 Management of material topicsEmployee Rights402-1 Minimum notice periods regardingoperational changes
Employee RightsGRI 403: Occupational Health and Safety 20183-3 Management of material topics
Occupational Health and
Safety403-1 Occupational health and safetymanagement system
Occupational Health and
Safety403-2 Hazard identi?cation, risk assessment,and incident investigation
Occupational Health and
Safety403-3 Occupational health services
Occupational Health and
Safety
GRI STANDARDDISCLOSURE
LOCATIONOMISSION403-4 Worker participation, consultation, andcommunication on occupational health and safety
Occupational
Health and Safety403-5 Worker training on occupational health andsafety
Occupational
Health and Safety403-6 Promotion of worker health
Occupational
Health and Safety403-7 Prevention and mitigation of occupationalhealth and safety impacts directly linked by businessrelationships
Occupational
Health and Safety403-8 Workers covered by an occupational health andsafety management system
Occupational
Health and Safety403-9 Work-related injuries
Occupational
Health and Safety403-10 Work-related ill health
Occupational
Health and SafetyGRI 404: Training and Education 20163-3 Management of material topics
Human Capital
Devel-opment404-1 Average hours of training per year per employee
Human Capital
Devel-opment404-2 Programs for upgrading employee skills andtransition assistance programs
Human Capital
Devel-opment404-3 Percentage of employees receiving regularperformance and career development reviews
Lit up 2023GRI 405: Diversity and Equal Opportunity 20163-3 Management of material topicsEmployee Rights405-1 Diversity of governance bodies and employees
Corporate
Governance405-2 Ratio of basic salary and remuneration ofwomen to men
/
[ Information unavailable /incomplete] We insist on equal payfor equal work. At present, due to thelarge number of production bases, it isimpossible to count accurately for thetime being.GRI 406: Non-discrimination 20163-3 Management of material topicsEmployee Rights406-1 Incidents of discrimination and correctiveactions taken
Employee RightsGRI 407: Freedom of Association and Collective Bargaining 20163-3 Management of material topicsEmployee Rights407-1 Operations and suppliers in which the right tofreedom of association and collective bargaining maybe at risk
Employee RightsGRI 408: Child Labor 20163-3 Management of material topicsEmployee Rights408-1 Operations and suppliers at signi?cant risk forincidents of child labor
Employee RightsGRI 409: Forced or Compulsory Labor 20163-3 Management of material topicsEmployee Rights
Appendix
9192
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
GRI STANDARDDISCLOSURE
LOCATIONOMISSION409-1 Operations and suppliers at signi?cant risk for incidents offorced or compulsory labor
Employee RightsGRI 410: Security Practices 20163-3 Management of material topicsEmployee Rights410-1 Security personnel trained in human rights policies orprocedures
Employee RightsGRI 411: Rights of Indigenous Peoples 20163-3 Management of material topics
Community and
Charity Contributions411-1 Incidents of violations involving rights of indigenouspeoples
Community and
Charity ContributionsGRI 413: Local Communities 20163-3 Management of material topics
Community and
Charity Contributions413-1 Operations with local community engagement, impactassessments, and development programs
Community and
Charity Contributions413-2 Operations with signi?cant actual and potential negativeimpacts on local communities
Community and
Charity ContributionsGRI 414: Supplier Social Assessment 20163-3 Management of material topics
Sustainable Supply
Chain414-1 New suppliers that were screened using social criteria
Sustainable Supply
Chain414-2 Negative social impacts in the supply chain and actionstaken
Sustainable Supply
ChainGRI 415: Public Policy 20163-3 Management of material topicsRisk Management415-1 Political contributions/
[Not applicable] We donot engage in po-liticalcontributions.GRI 416: Customer Health and Safety 20163-3 Management of material topics
Comprehensive Quality
Management416-1 Assessment of the health and safety impacts of productand service categories
Comprehensive Quality
Management416-2 Incidents of non-compliance concerning the health andsafety impacts of products and services
Comprehensive Quality
ManagementGRI 417: Marketing and Labeling 20163-3 Management of material topicsRisk Management417-1 Requirements for product and service information andlabeling
Risk Management417-2 Incidents of non-compliance concerning product andservice information and labeling
Risk Management417-3 Incidents of non-compliance concerning marketingcommunications
Risk ManagementGRI 418: Customer Privacy 20163-3 Management of material topicsRisk Management418-1 Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Risk Management
DISCLOSURE
LOCATIONTOPICCODEACCOUNTING METRICEnergyManagement inManufacturing
RR-ST-130a.1
Total energy consumedKey Performance Table - EnvironmentPercentage grid electricityKey Performance Table - EnvironmentPercentage renewableKey Performance Table - EnvironmentWaterManagement inManufacturing
RR-ST-140a.1
Total water withdrawnKey Performance Table - EnvironmentTotal water consumedKey Performance Table - EnvironmentRR-ST-140a.2
Description of water management risks and discussionof strategies and practices to mitigate those risks
Waste and Hazardous Emissions
Management
Hazardous WasteManagement
RR-ST-150a.1
Amount of hazardous waste generated, percentagerecycled
Waste and Hazardous Emissions
ManagementPercentage recycled
Waste and Hazardous Emissions
ManagementRR-ST-150a.2
Number of reportable spills
Waste and Hazardous Emissions
ManagementAggregate quantity of reportable spills
Waste and Hazardous Emissions
ManagementQuantity of spills recovered
Waste and Hazardous Emissions
ManagementEcologicalImpactsof ProjectDevelopment
RR-ST-160a.1
Number of project delays related to ecological impacts/Duration of project delays related to ecological impacts/RR-ST-160a.2
Description of e?orts in solar energy system projectdevelopment to address community and ecologicalimpacts
/Managementof EnergyInfrastructureIntegration& RelatedRegulations
RR-ST-410a.1
Description of risks associated with integration ofsolar energy into existing energy infrastructure anddiscussion of e?orts to manage those risks
Energy ManagementRR-ST-410a.2
Description of risks and opportunities
associated with energy policy and its
impact on the integration of solar energy
into existing energy infrastructure
Product End-oflife Management
RR-ST-410b.1
Weight of reusable or recyclable items of product sold/Weight of product sold/Percentage of products sold that are recyclable orreusable
/RR-ST-410b.2
Weight of end-of-life material recoveredKey Performance Table - EnvironmentWeight of end-of-life materialKey Performance Table - EnvironmentPercentage recycledKey Performance Table - EnvironmentRR-ST-410b.3
Percentage of products by revenue that contain IEC62474 declarable substances, arsenic compounds,antimony compounds, or beryllium compounds
/RR-ST-410b.4
Description of approach and strategies to designproducts for high-value recycling
/MaterialsSourcing
RR-ST-440a.1
Description of the management of risks associated withthe use of critical materials
Product Lifecyle ManagementRR-ST-440a.2
Description of the management of environmental risksassociated with the polysilicon supply chain
Product Lifecyle ManagementActicity
RR-ST-000.A
Total capacity of photovoltaic (PV) solar modulesproduced
Clean Energy OpportunitiesRR-ST-000.BTotal capacity of completed solar energy systemsClean Energy OpportunitiesRR-ST-000.CTotal project development assets/
Sustainability Accounting Standards Board (SASB) Content Index
Appendix
9394
HY SOLAR 2023 Environmental,Social and Governance (ESG) Report
About This ReportThis report aims to fairly and objectively present the methods, practices and performance of HONGYUAN GREENENERGY CO., LTD.(hereinafter referred to as "HY SOLAR", "the Company" or "we") and its subsidiaries in environmental,social and governance (ESG) in 2023, as well as other key indicators that re?ect the Company's signi?cant impact on theenvironment and society. Unless otherwise speci?ed, ?nancial data in this report are all in CNY. The reporting cycle isannual, with the last report published in September 2023.Time Frame
This report covers the period from January 1, 2023 to December 31, 2023, with a small amount of data outside of this timeframe included.Organizational BoundaryUnless otherwise stated, the disclosure boundary of this report is consistent with the 2023 Annual Report of HONGYUAN GREENENERGY CO., LTD. For ease of presentation, HY SOLAR and its subsidiaries are referred to as abbreviations in the report, withthe following correspondences:
Basis for compilationThis report complies with the Guidelines of the Shanghai Stock Exchange for Self-regulation of Listed Companies No. 1—Standardized Operations, and the Global Reporting Initiative (GRI) Standards 2021 for sustainability reporting.It is compiled by referring to the Sustainability Accounting Standards Board (SASB) Standards, the United Nations SustainableDevelopment Goals (SDGs) 2030, and the Ten Principles of the United Nations Global Compact (UNGC).External Assurance
In order to ensure the authenticity and reliability of the report, the Company has engaged T?V S?D Certi?cation and Testing(China) Co., Ltd. Shanghai Branch to carry out the assurance of the report in accordance with the "International Standardon Assurance Engagements 3000 (Revised) - Assurance Engagements Other Than the Audit or Review of Historical FinancialInformation" (ISAE 3000), and has issued the assurance opinion of "Limited Assurance", which is shown on the page of the"Statement of Assurance" of this report.How to ObtainThis report is published in simpli?ed Chinese and English. You can log in to the website of the Shanghai Stock Exchange （www.
sse.com.cn）or HY SOLAR (www.hysolar.com), or follow the WeChat o?cial account of HY SOLAR to download the electronicversion.
NameAbbreviation
HONGYUAN GREEN ENERGY CO.,LTD.HY SOLARHongyuan New Material (Baotou) Co., Ltd.Hongyuan New Material (Baotou)Hongyuan Energy Technology (Baotou) Co., Ltd.Hongyuan EnergyHongyuan New Material (Xuzhou) Co., Ltd.Hongyuan New Material (Xuzhou)Wuxi Hongyuan Semiconductor Materials Technology Co., Ltd.Hongyuan Semic
Hongyuan Solar (Wuxi) Co., Ltd.HY SOLAR (Wuxi)Shanghai YuanTech New Energy Co., Ltd.Shanghai YuanTech
YuanTech Solar Co., Ltd.YuanTech Solar
For comments and suggestions on this report, please contact us via:
Address: Marketing Department, No. 158 Nanhu Middle Road, Xuelang Subdistrict, Binhu District,Wuxi, Jiangsu ProvinceTel.: 0510-85958787Email: pr@hysolar.com