About the ReportReporting PeriodThis is an annual report covering the period from January 1, 2023 to December 31, 2023. Toimprove the completeness of the report, some of the data is beyond the above range.
Report Data DescriptionAll data and examples used in this Report are derived from the Company's o?cial documents,statistical reports as well as summaries and statistics on the performance of responsibilities.
Report Reliability AssuranceThe Company guarantees that the content of this Report does not contain any false records ormisleading statements.Revision of Information of Previous ReportsNone.
Standards of Reference for ReportGlobal Reporting Initiative (GRI)Sustainability Reporting Standards (2021)UN Sustainable Development Goals (SDGs)United Nations Global Compact (UNGC)The Ten Principles of the UN Global CompactHKEX Environmental, Social and Governance Reporting Guide
Scope of OrganizationThe scope of the Report covers Guangdong Homa Group Co., Ltd. and its principal subsidiaries.For ease of presentation and perusal, "Homa Group", "Homa", "the Company", "we" and "us" inthe Report refer to Guangdong Homa Group Co., Ltd. and its principal subsidiaries below, unlessotherwise speci?ed.Full Name of Principal SubsidiariesShort NameTCL Home Appliances (Hefei) Co., Ltd.Hefei Home AppliancesHoma Appliances Co., Ltd.Homa Appliances
CONTENTS
Message from the Board of DirectorsAbout Homa GroupSustainable Development GovernanceTopic: Implement Intelligent Manufacturingand Help Build Digital Intelligent FactoriesOutlook for the FutureAppendix
Putting Environment Firstto Build a Green Future
Green ProductionGreen CultureGreen Industry Chain
Safety Assurance andProduct Innovation
R&D and InnovationProduct Quality and SafetyCustomer Service
Talent Cultivation andJoint DevelopmentProtection of Employees' Rights and InterestsEmployee Training and DevelopmentOccupational Health and SafetyCare for Employees
Harmonious SocietyShared VictorySupply Chain ManagementCollaborative Development of Industry PartnersSocial Public Welfare
Robust Governance forSolid FoundationParty Building LeadershipGovernance StructureLegal Compliance and Risk ControlAnti-corruption and Business EthicsInformation Security
Message from the Board ofDirectors
Homa Group is committed to becoming a global leader in smart household appliances. In order to advance its globalization strategy, the Company isfocusing on smart home appliances powered by arti?cial intelligence. The Company strives to achieve comprehensive interconnection, collaborativeoperation, and self-learning optimization for household appliances through technological innovation, o?ering users innovative technological experiencesand healthy lifestyles, and enabling the industry to develop further through technology. Despite our rapid growth, we are steadfastly moving forward onour path to sustainable development, actively taking on environmental, social, and governance responsibilities.This year marks a signi?cant year for Homa Group in environmental protection. We established an intelligent manufacturing base for high-end air-cooledrefrigerators while promoting automated and lean production. We are committed to building an energy management system that is robust, integratingenvironmental management into all aspects of our production and operations, controlling pollution emissions, reducing the Company's carbon footprint,improving resource utilization e?ciency, and reducing the environmental impact of our operations. In 2023, Homa Group's total GHG emissions are169,233.87 tons and the total energy consumption are 32,189 tons of standard coal. As part of our product design e?orts, we continue to explore high-e?ciency designs that reduce carbon emissions throughout the product lifecycle using cutting-edge technologies. Furthermore, we continually promotegreen culture within the company, fostering a positive corporate culture.Homa Group has also been active in its social responsibility e?orts this year. Adhering to the principles of innovation and user orientation, we considerproduct quality management to be the core policy of our corporate operations. We promote the upgrade of product technology through practical andrational R&D, which allows us to continuously launch a range of products such as "Zero Embedded" series and "Intelligent Zero Degree Ultra FreshnessPreservation" series. In 2023, Homa Group has 57 innovative research projects, 330 patents authorized annually, and an annual R&D investment ofapproximately RMB 542.05 million. Furthermore, we have established an employee training system focused on individual employee growth, providingcomprehensive bene?ts protection, and creating a fair, inclusive, and equitable workplace. During the reporting period, Homa Group had 12,684employees on board and conducted 3,150 employee training sessions. Meanwhile, Homa Group actively takes part in social welfare, and the warmthof our organization is conveyed through action and care. During the reporting period, Homa Group organized 25 employee volunteer activities, and theamount of social welfare donations reached 1.85 million yuan.
The Board of Directors of Homa Group
April 2024
Throughout this year, Homa Group has continued to optimize governance models and structures. We continuously improve the Company's governancestructure, division of responsibilities, and business processes, enhancing risk management levels. As part of our governance principles, we adhere tostandardized and transparent standards as we strengthen both the implementation and supervision of our internal ESG policies. By strengthening internalcontrol and compliance management, the company can maintain a stable operation and develop sustainably, creating greater value for stakeholders andshareholders.In the context of global economic changes and uncertainties, we are well aware that we will face many new challenges in the future. While thesechallenges may seem overwhelming, they are actually opportunities for Homa Group to demonstrate its relentless pursuit of quality, design, innovation,and cost.A key focus for Hefei Home Appliances in the future will be the concept of "technology-driven, vitality-?rst," and the establishment of a core strategic pathof "brand-leading value, global e?ciency operation, with a focus on mid-to-high-end breakthroughs."In the meantime, Homa Appliances will continue to develop its global positioning as a "Global Professional Refrigerator ODM Supplier" while adheringto global operation with a focus on research and development. In addition, we actively cultivate the vast ?eld of air-cooled technology, and vigorouslypromote the deep application of intelligent manufacturing technology, providing our global customers with high-performance, cost-e?ective refrigeratorsand freezers that combine professional and extreme design concepts with high quality.Taking a new direction, we will continue to emphasize sustainable development, advance the globalization strategy, drive green and intelligentinnovation, achieve remarkable performance, and jointly promote the achievement of sustainable development goals as we embark upon this newjourney.
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About Homa Group2023 Homa Group Environmental, Social and Governance Report
Company Pro?le
Industrial Layout
Established in 2002, Guangdong Homa Group Co., Ltd (listed on the main board of Shenzhen Stock Exchange, stock code: 002668) is a globalized homeappliance enterprise integrating research and development, manufacturing and sales service. The company's main products include refrigerators (includingfreezers) and washing machines, covering the two brands "TCL" and "Homa", with good brand awareness and reputation, the products are exported to morethan 130 countries and regions around the world, and with the world's many well-known home appliance brands to establish important partnerships (orproviding quality products for more than 2,000 partners around the world). As of 2023, the Company has achieved the ?rst place in China's refrigerator exportvolume for 15 consecutive years, and the ?rst place in China's refrigerator export to Europe for 16 consecutive years. Domestic sales of TCL refrigerators andwashing machines have ranked among the top ?ve in the industry.
The company has two core production and operation bodies, Hefei Home Appliances and Homa Appliances, and two production bases located inZhongshan, Guangdong Province and Hefei, Anhui Province.Hefei Home Appliances mainly develops and produces TCL brand refrigerators and washing machines. Speci?c products include two-door refrigerators, door-to-door refrigerators, cross-door refrigerators, T-door refrigerators, French four-door refrigerators and other types of refrigerators, as well as various typesof washing machines, such as duplex washers, tumble dryers, heat pump dryers, clothes care machines, washing and drying machines. Homa Appliancesadopts the ODM business model in global market, and has won the trust of many customers with its cost-e?ective products and stable supply capability; inthe domestic market, it produces and sells refrigerators and freezers under its own brand "Homa", and provides ODM services for strategic customers.
Driven by Innovation
Development Vision
Homa Group adheres to innovation-driven, user-oriented, and constantly launches innovative products that lead the market. The company has establisheda complete R&D system, with several R&D centers for refrigerators and washing machines. The company has 894 R&D personnel, accounting for 7.04% of thetotal number of company sta?, and a cumulative total of 2,055 patents, making its R&D strength one of the tops in the domestic home appliance industry. Inaddition, Hefei Home Appliances has been awarded the honors of "National High-tech Enterprise", "National Intellectual Property Advantage Enterprise","Anhui Enterprise Technology Center", and received many other honors.
Homa Group is committed to becoming a world-leading smart home appliance enterprise, ?rmly promoting the globalization strategy, taking AI smart homeappliance as the direction of development, and realizing the interconnection, collaborative operation and self-learning optimization of home applianceproducts through scienti?c and technological innovations, so as to bring forward-looking scienti?c and technological experiences and smart and healthy lifefor the users, and to promote the further development of the industry through science and technology.Hefei Home Appliances is deeply committed to the "TCL" brand, unswervingly shaping the "technology-driven, vitality-?rst" organizational core. It hasestablished the core strategic path of "brand-leading value, global e?ciency operation, with a focus on mid-to-high-end breakthroughs", and persistentlypursues excellence in product quality and performance experience. Homa Appliances unswervingly practices the unique strategic positioning of "GlobalProfessional Refrigerator ODM Supplier” and is committed to providing global customers with refrigerator and freezer products with both top quality andhigh-cost performance.
About Homa Group
0304
About Homa Group2023 Homa Group Environmental, Social and Governance Report
History of Development
Performance Highlights in 2023
Hefei Home AppliancesHoma Appliances
2002
2020
2003
2019
2005
2008-20092015
2012
2018
2013
? Homa Incorporation? Operation of the Company's ?rst factory
? Annual sales exceeded 10 million units? Number of Homa productionsites reached 9
? Launch of the ?rst "Made byHoma" product
? Homa Appliances' advent ofthe intelligent dual-invertertechnology and single-systemwith multi-temperature controltechnology
? Sales volume exceeded1 million units for the?rst time
? Operation of Homa'ssecond factory
? Ranked No. 1 Chineserefrigerator exporter toEurope for the ?rst time? First bespoke Homa Container shipped? Establishment of the chest freezer factoryand the launch of Homa's ?rst chest freezer
? Biggest Chinese refrigeratorexporter to Europe for the 10thconsecutive year
? Listed on the Shenzhen Stock Exchange? Annual sales volume exceeded 5 millionunits for the ?rst time? Operation of Homa's third factory andaccessories sub-factory
? Development and launchof the very ?rst all-newair-cooled side-by-siderefrigerator FF2-66
2022
? Homa Group realized netincome of 424 million yuanfrom attributable sources,reversing the loss year on year? Homa Appliances' global sales
volume exceeded 100 millionunits
2021
The controlling shareholder of HomaAppliances was changed to TCL HomeAppliances Group Co., Ltd, and the actualcontroller was changed to Mr. Li Dongsheng.
2023
? Homa Appliances: High-end Air-cooled Refrigerator IntelligentManufacturing Base? Acquired TCL Home Appliances(Hefei) Co., Ltd., to further expandthe refrigerator/washing machinebusiness
Milestones
TCL consecutively named among Kantar BrandZTop 100 Most Valued Chinese Brands
Ranking No. 1 Chinese refrigerator
exporter with the highest export volume
for 15 consecutive years?Ranking No. 1 Chinese refrigerator exporter
to Europe for 16 consecutive years
Awarded
"Best Breakthrough Chinese Brand of 2023"
Enterprise Strategy and Culture
Become a global leader in smart household appliances.
Brand-leading value, global e?ciency operation, with a focus
on mid-to-high-end breakthroughs.
Global professional refrigerator ODM supplier.
Vision
Hefei Home Appliances'
Core Strategic Path
Homa Appliances'
strategic position
? Homa held the groundbreaking ceremony of
the smart manufacturing base for high-end air-cooled refrigerator? Annual revenue exceeded RMB 10 billion? Full termination of the Fintech business anddisposal of all related assets
2023 Homa Group Environmental, Social and Governance Report
About Homa Group
SustainableDevelopmentGovernance
Homa Group strives to satisfactorily manufacture and deliver every unit of product while keepinga sustainable attitude in mind. Homa has always adhered to a long-term development strategyand incorporated the concept of corporate social responsibility into all aspects of productionand operation with a strong emphasis on environmental friendliness and sustainability in themanufacturing process. We will continue to promote the process of sustainable developmentthrough constant innovation.
ESG ManagementHoma Group is well aware that actively responding to the challenges of ESG risks and operating ina sustainable manner is not only key for enterprises to meet future needs, but also the cornerstonefor social prosperity. In 2022, Homa Appliances, a subsidiary of Guangdong Homa Group Co., Ltd.,established its ESG committee, which is responsible for overseeing and execute the ESG policyof Homa Appliances. In 2023, Homa Group released its ?rst ESG report, which comprehensivelyexamined its environmental, social and governance performance.This year, combining the latest local and international policies, the Company further improvedits performance on 23 material topics revolving around environmental, social and corporategovernance, including 6 in the environmental aspect, 11 in the social aspect and 6 in the governanceaspect. It has also taken into account suggestions from stakeholders, demonstrating its ?rmdetermination and practical actions on the road of sustainable development. Through sustainabledevelopment practices, Homa Group will continuously improve its long-term competitiveness andcontribute to achieving the UN 2030 Sustainable Development Goals as a Chinese enterprise.
0807
Sustainable Development Governance2023 Homa Group Environmental, Social and Governance Report
Response to Climate Change
TCFD Analysis
Climate change is one of the world's biggest challenges, and the continuous emission of greenhouse gases will result in global warming, which will furtherdamage the economic and social environment. According to the "14th Five-Year Plan" in 2020, China has clearly stated its targets of "carbon peaking" by2030 and "carbon neutrality" by 2060, as well as the reduction of greenhouse gas emissions and the construction of ecological civilizations. To combatclimate change, Homa Group has taken comprehensive actions within the Company and its related industries, promoted green transformation, andcontinuously improved its climate resilience.
To accelerate the green transformation of the Company, Homa Group, with reference to the disclosure proposal formulated by the Task Force on Climate-related Financial Disclosure established by the Financial Stability Board (FSB) in 2017, analyzes the Group's e?orts in response to climate change fromthree aspects: governance, strategy, and risk management. This enables better understanding and management of the potential impact of climate changeon the ?nancial condition and business operations of the Company.
Homa Group continuously improves the corporate governance structure with respect to climate change, andpromotes the improvement and management related to climate change within the Company. In 2022, HomaAppliances, a subsidiary of Guangdong Homa Group Co., Ltd., established its ESG committee, which is responsible foroverseeing and executing the ESG policy. In addition, Hefei Home Appliances and Homa Appliances, subsidiaries ofHoma Group, have respectively established the greenhouse gas group, which is responsible for the management ofcarbon emission audit.Governance
? Establish low-carbon production modes to reduce costs and increase e?ciency of production and operation? Optimize the energy management system and adjust the energy consumption structure? Continue to strengthen carbon emission management and promote internal greenhouse gas inventory? Strengthen the green design of products and pay attention to the environmental impact of the whole life cycle ofproducts? Build the green corporate culture and continuously improve corporate imageStrategy
The working group divides the climate-related risks into two categories, i.e. transformation risks related to low-carbon economy and physical risks related to the impact of climate change.
A. Transformation Risks? Policy and regulatory risks: With the government constantly tightening regulatory requirements, failure to follow
the "carbon peaking and carbon neutrality" policy and the information disclosure policy of the stock exchange willlead to compliance risks.? Technical risk: Green production, green packaging and transportation technologies will a?ect the Company'scompetitiveness, production and distribution costs.? Market risk: The adjustment of green trade and product packaging policies in European and US markets mayhinder the entry of Homa's products to the European and US markets.? Reputation risk: The corporate image related to climate change will further a?ect the reputation of the Companyamong customers.B. Physical Risks
? Acute risks: Extreme and unforeseen weather conditions such as drought, rainstorm, ?ood and typhoon causedby climate change will a?ect the infrastructure and operation activities of the Company.? Chronic risks: Continuous climate change will cause risks such as energy shortage and cost increase.
Risk Management
Carbon Emission ManagementHoma Group conducts carbon footprint inventory and veri?cation on a regular basis, and summarizes Company's greenhouse gas emissions by year withreference toISO 14064-1: 2018 Greenhouse Gases, Part 1: Speci?cations with Guideline at the Organizational Level for Quanti?cation and Reporting ofGreenhouse Gas Emissions and RemovalsandIPCC Guidelines for National Greenhouse Gas Inventories, etc.The Company established the greenhouse gas inventory team, which is responsible for the identi?cation, inventory and calculation of the speci?cemissions of various emission sources within its operational control boundary and participating in regular internal veri?cation. The leader of thegreenhouse gas system inventory team is responsible for leading the completion of the annual greenhouse gas inventory, formulating and issuing thegreenhouse gas inventories and greenhouse gas reports. Meanwhile, the Quality Management Center is responsible for planning all work and activitiesrelated to the Company's greenhouse gas emissions. On the other hand, the members of the greenhouse gas inventory team are responsible for providingvarious data on the activities, jointly completing the greenhouse gas emission inventory and drafting the inventory, coordinating internal veri?cation, etc.
Third party veri?cation
Continuous improvement(emission reduction targetsand actions)
Determining the base year
Commitment of topmanagement
NOYES
Self-improvement
Issuing veri?cation report
Identifying emissionsources
Establishing the GHG
inventory team
Internal auditQuantifying andcalculating emissions
Identifying the boundaries
of organizations and
operation
Establishing GHSemission inventory
Documentation and records
Maintaining documents
and records
Preparing initial inventory
report
Problem?
Flow of Greenhouse Gases Emissions Management
Key Performance Indicators of Greenhouse Gas Emission
Unit2023 data
Total GHG emissionstCO
e169,233.87Scope 1tCO
e31,482.02Scope 2tCO
e137,391.85Emission strength of greenhouse gastCO
e/Million output value11.15
Core Elements for the Disclosure of Climate-related Financial Information
2023 Homa Group Environmental, Social and Governance Report
Sustainable Development Governance
Stakeholder CommunicationMateriality Analysis
Homa Group conducts regular importance assessment surveys for all stakeholders to identify sustainable development issues of concern to allstakeholders, including the government and regulatory authorities, shareholders and investors, customers, suppliers and partners, employees and thecommunity. They serve as an important reference for the disclosure of the Report and further practice of the concept of sustainable development of theCompany. The Company also attaches great importance to communication with stakeholders, and constantly improves its communication mechanisms,listening to the opinions and requirements of stakeholders, understanding their demands, and responding positively with practical actions, so as toachieve mutual development with stakeholders.
Homa Group carried out materiality analysis on key issues in environmental, social, and governance aspects, with reference to the guidelines on thedetermination of material topic distribution outlined inGRI Standards 2021issued by the Global Reporting Initiative (GRI). The Company carried outthorough analyses on material topics based on local and international disclosure standards and guidelines, in combination with local and internationalpolicies, peer topics, and opinions from industry experts and all stakeholders. This allows us to gain deeper insights into the stakeholders' expectationsfor sustainability-related works of Homa Group.Based on feedback from stakeholders, the Company sorted out a total of 23 material topics, including 6 environmental topics, 11 social topics and 6governance topics, thus providing an important basis of reference for the strategic ESG planning, performance management and information disclosureof Homa Group.StakeholdersConcernsMethod of Response
? Operation and compliance with national laws and
regulations? Improve product quality management system? Promote energy conservation and emission reduction, and
develop green products? Fully leverage the advantages of corporate resources to
actively ful?ll social responsibilities
? Legal and compliant operation? Product quality and safety? Response to climate change? Leading industry development
Government and Regulatory
Authorities
? Regulate company management and establish clear
investor communication channels? Establish e?ective communication systems? Transparent information disclosure? Sustained value creation? Comprehensive risk managementShareholders and Investors
? Guarantee basic rights and interests of employees? Diversify workplace environment? Guarantee occupational safety and health of employees? Establish a smooth career development channel? Improve welfare and care for employees
? Employee rights and protection? Diversity and equality? Occupational health and safety? Talent training and development? Care for employees
Employees
? Improve product quality and o?er excellent services? Conduct customer satisfaction surveys and extensive
research on customer needs to continuously improve
customer service? Enhance customer privacy protection? Responsible marketing? Customer privacy protection? High quality products and servicesCustomers
? Standardize the procurement process? Evaluate and audit supplier? Promote the healthy development of the industry? Fair procurement? Shared development? Mutually bene?cial and win-win relationshipSuppliers and Partners
? Engage in public welfare? Organize volunteer activities? Enhance three wastes management? Develop green production? Develop energy-saving innovative products? Rewarding society? Response to climate change? Management of three wastes? E?cient waste recyclingCommunity and Environment
Importance to Guangdong Homa Group Co., Ltd.
Importance to Stakeholders
Corporate governance systemCompliance and risk controlIntellectual property right(IPR) protectionAnti-corruptionBusiness ethicsInformation security andprivacy protection
Governance
Environmental managementsystemResponse to climate changeEnergy managementManagement of three wastesWater resource managementGreen productsElectronic wastes
Environment
Protection of employees'rights and interestsDiversity and equalopportunitiesEmployee training anddevelopmentOccupational health andsafetyProduct quality and safetyR&D and innovation
Social
Customer serviceSupply chainmanagementIndustry developmentSocial welfare
2023 Homa Group Environmental, Social and Governance Report
Sustainable Development Governance
In the context of Industry 4.0, the Homa Group has achieved impressive advancements in household appliance intelligent manufacturing throughcontinuous innovation and technological breakthroughs. As two major bands of the Group, Hefei Home Appliance and Homa Appliances have long beencommitted to boosting the development of intelligent manufacturing and have likewise made major breakthroughs in their business of refrigerators andwashing machines.With the construction, expansion and operation of intelligent manufacturing bases, Homa Group has elevated its competitive edge with its ever-expanding manufacturing scale. Through constant technological innovation and the introduction of high-caliber technical talents, we will be ableto deliver cutting-edge products of cutting-edge design that are both high-quality and cost-e?ective in order to meet the ever-growing demand forintelligent household appliances. As a leading manufacturer of refrigerators and washing machines, Homa Group will drive China's manufacturingindustry to become more intelligent while contributing actively to the thriving of China's manufacturing industry.
Hefei Home Appliance:
Manufacturing centerof refrigerators andwashing machines
Homa Appliances:
High-end Air-cooled RefrigeratorIntelligentManufacturing Base
Located in Zhongshan, Guangdong, Homa Appliances' high-end air-cooled refrigerator intelligentmanufacturing base fully demonstrates the Company's achievements in intelligent manufacturingover the past few years. With the strong support from the Party Committee and People'sGovernment of Zhongshan City and Nantou Town, the commissioning ceremony themed "Builda Better Future with Homa Intelligent Manufacturing" was successfully held at the new base onNovember 18, 2023. This marks the o?cial kicko? of the phase I operation of high-end air-cooledrefrigerator intelligent manufacturing base. It also opens up a new chapter of Homa intelligentmanufacturing.
Thanks to the Homa's major investment in digital intelligent production and digital intelligentlogistics, the new base will serve as a benchmark in the refrigerator industry with the highest degreeof automation, the highest level of intelligent manufacturing and the highest production e?ciency.The new base put into operation will allow Homa Appliances to manufacture up to 16 millionrefrigerators per year, giving the Company a greater competitive edge in manufacturing scale.In order to ensure employees' quality of life and improve the overall production e?ciency of thePark, Homa Appliances has developed an integrated work-, entertainment- and leisure-orientedliving community that is exquisitely decorated with intelligent manufacturing. Moreover, Homaconsistently seeks to ensure safety, sustainability and e?ciency in the construction and operation ofnew bases throughout the entire process of planning and preparation.
Implement Intelligent Manufacturingand Help Build Digital Intelligent FactoriesTopic
millionThe new base will allow Homa Appliances tomanufacture refrigerators
TCL Refrigerators and Washing MachinesIndustrial Park
Product lines of TCL refrigerators andwashing machines factories
Commissioning ceremony: Build a Better Future with Homa Intelligent Manufacturing
Appearance of the phase I high-endair-cooled refrigerator intelligentmanufacturing baseDemonstration of back sheet metalforming line
Hefei Home Appliance's industrial park in Feixi County, Hefei City, Anhui Province has madesigni?cant progress. With decades of expertise in product and technology, and recognition from themarket and customers, TCL has seen its refrigerators and washing machines industry making a shiftfrom quantitative change to qualitative change.Under the umbrella of Hefei Home Appliances, TCL Refrigerators and Washing Machines IndustrialPark is equipped with 9 production lines. In 2023, the sales volume of refrigerators will reach 2.16million units and the sales volume of washing machines will reach 2.56 million units. In termsof production process, TCL Refrigerators and Washing Machines Industrial Park is equippedwith complete machine assembly and inspection lines, automatic metal plate production lines,German Tox automatic case riveting lines, inner drum riveting and assembly production lines aswell as 600T+ injection molding production equipment. The production process has been highlyautomated.With a total ?oor area of 756.06 mu (around 370 acres) and a total building area of 459,159.06m
,the Industrial Park is equipped with production workshops, material warehouses, R&D building,integrated o?ce building, living auxiliary facilities, green space and auxiliary facilities. In addition tocomprehensive infrastructure construction, Hefei Home Appliances has also established a numberof incentive schemes to attract high-caliber technical talents with the aim to improve the innovation,technology and manufacturing of TCL refrigerators and washing machines.
mutotal land area
2.16
millionThe sales volume of refrigerators
m
total building area
2.56
millionThe sales volume of washing machines
%Year-on-year growth
%Year-on-year growth
1413
Topic2023 Homa Group Environmental, Social and Governance Report
ENVIRONMENT
Putting EnvironmentFirst to Build a GreenFuture
As a global manufacturing company, Homa Group believes in that beingresponsible for the environment is essential to our business model.Relying on the Company's long-term development strategy, we continueto make innovations in all aspects of R&D, manufacturing, marketing andlogistics to promote environmental sustainability.
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Putting Environment First to Build a Green Future2023 Homa Group Environmental, Social and Governance Report
GreenProduction
EnvironmentalManagementSystem
Energy Management
Homa Group has developed a robust environmental management system. Starting with key issuessuch as management of energy, pollution, wastes and water resources, we make concrete e?orts toreduce the impact of our production process on the environment. We are dedicated to building agreen Homa manufacturing system that covers design and development, production and marketingas well as packaging and transportation in order to create reliable, environmentally friendlyproducts with a strong commitment to sustainability in a detail-oriented and holistic manner.
To regulate energy usage while promoting energy conservation and emission reduction within the Company and related industries, Homa Group hasestablished a sound energy management system in strict accordance with theLaw of the People's Republic of China on Energy Conservation. HomaAppliances has passed ISO50001 certi?cation.Homa Group and its related industries have developed a sound internal system of energy management. Hefei Home Appliances has formulated theManagement Manual of Energy Management System, Workshop Energy Management Regulations, Energy Review and Control Procedures, EnergyBenchmark Control Proceduresand other systems, which explain the management of the Company's energy goals, indicators and control plans indetails. In addition, Homa Appliances formulates the internal systems, such asEnergy Management Measures andManagement Measures for EnergyConsumption of Key Machines, which stipulate the assessment of energy consumption in key machine areas, to reduce the energy consumption in thearea.Homa Group and its subsidiaries have established energy e?ciency budgets based on national policies and actual energy management. Hefei HomeAppliances sets savings indicators for total energy consumption every year, assigns these indicators to each department, assesses the accomplishmentby each department and calculates their accomplishment rate on a monthly basis. During the reporting period, Hefei Home Appliances has set a goal ofreducing water consumption and power consumption by 3% by the year 2023. According to the actual results, we were able to save 4.61% of electricityand 8.47% of water, both of which were higher than our goal. During the reporting period, Homa Appliances also ful?lled its annual budget e?ectivenessgoal of saving water and electricity.A variety of measures have been taken by Homa Group and its subsidiaries to promote the use of renewable energy sources and energy-saving andconservation technologies to reduce greenhouse gas emissions. To achieve energy conservation and emission reduction, Hefei Home Appliances setan objective of using 15% clean energy during the reporting period, and accelerated clean energy transformation through photovoltaic projects, greenelectricity, and other measures. At the same time, the Company began proactively promoting energy-saving improvements, such as the replacement ofsolar lamps and an optimization of the frequency conversion controls on air compressors. Clean energy accounted for 16% of Hefei Home Appliances'total energy consumption in 2023. As part of its proactive approach to phase out low-e?ciency and high-energy-consuming equipment, Homa Appliancesproactively implemented solar power generation projects.
timesPenalties incurred by the Company forviolations of environment-related laws andregulations
timesMajor violations of environmental regulations
timesNumber of environment-related lawsuitsresulting from violations of environment-related regulations
Number of annual environmental emergencydrills
times
175,770LDiesel usage
807,815m
Natural gas consumptionL16,620
Gasoline usage
Key Performance of Energy Consumption
29,781Tons of standard coal
240,916,293kWh
2,407Tons of standard coal
Total consumption of non-renewable energy
Consumption of non-renewable electricity
Total consumption of renewable energy
19,590,260kWhConsumption of renewable electricity
32,189Tons of standard coal
260,506,553kWh
Total energyconsumption
Total powerconsumption
Homa Group has established a sound environmental management system in line with theEnvironmental Protection Law of the People's Republic of China, Standard for Pollution Control onHazardous Waste StorageandTechnical Speci?cation for Setting Identi?cation Signs of HazardousWaste, while integrating environmental management into the production and operation processesof the Company. All factories of Homa's subsidiaries, Hefei Home Appliances and Homa Appliances,have passed the ISO14001 management system certi?cation.Hefei Home Appliances has established an Environmental Safety Committee, with theHuman Resource Development Department responsible for key performance in the aspect ofenvironmental management. The relevant environmental management systems are preparedby each respective department. At the institutional level, the Company has issued theControlProcedure for Identi?cation and Assessment of Environmental Factors, Control Procedures forOperation of Environmental Management Systemand other relevant regulations, which stipulatethe identi?cation, evaluation and update of environmental factors within the company's jurisdictionthroughout the entire life cycle of products. Furthermore, Hefei Home Appliances was certi?ed as aProvincial Green Factory in 2017.Homa Appliances and its branch factories perceive the principle of "making continuousimprovement in an environmentally-friendly and law-abiding way" as a key strategy inenvironmental protection. As such, they have established an environmental management systemunder the leadership of the General Management Department with the joint participation ofmultiple departments. It is the responsibility of the General Management Department to organizecompany-wide inspections as well as to supervise the implementation and recti?cation ofinspections and recti?cations carried out by the branch factories and departments pertaining tooccupational safety and health, ?re safety, and environmental protection.In 2023, Homa Appliances issued theSystem for Identi?cation and Control of Occupational Health,Safety and Environment Potential Risks, which stipulates the guidelines for basic management ofoccupational health, production safety, ?re protection and environmental protection. Meanwhile,four types of inspection procedures, namely, daily inspection, periodic inspection, comprehensiveinspection and special inspection, were formulated. In order to identify potential risks in theproduction and o?ce environments, the General Management Department conducts a yearlyinternal audit based on the ISO14001 and ISO45001 management systems.Moreover, Homa Group formulates an environmental emergency response plan every year toevaluate the e?ectiveness of environmental safety management and to identify any managementvulnerabilities. Hefei Home Appliances and Homa Appliances have promptly ?led with the localenvironmental protection department in accordance with theEmergency Response Plan forEnvironmental Emergenciesand carried out emergency drills as scheduled according to theresponse plan. At the same time, the Company has established an emergency coordinationmechanism with external government units in order to ensure the pre-event management andemergency response of environmental risks and address such risks in a timely and e?ective manner.
2023 Homa Group Environmental, Social and Governance ReportPutting Environment First to Build a Green Future
1817
Energy Conservation Achievements of Hefei Home Appliances
Air PollutionManagement
58.74
tonsthe volatile organic compound (VOC)emission of Hefei Home Appliances
Pollution and WasteManagement
As a home appliance manufacturer, Homa Group mainly emits production waste gases anddomestic waste gases during the production process. Air pollutants released include nitrogenoxides, sulfur dioxide, particulate matters, volatile organic compounds (VOC), etc. In response tothe national policies on waste gas emission, Homa Group exercises strict management of all kindsof air pollutant emissions in its production process in strict accordance with relevant laws andregulations, such as theEnvironmental Protection Law of the People's Republic of China, Law ofthe People's Republic of China on the Prevention and Control of Atmospheric Pollution, Law of thePeople's Republic of China on Prevention and Control of Environmental Pollution by Solid Wastes,Law of the People's Republic of China on Promotion of Cleaner Production and National Circularon Further Promotion of Cleaner Production Audit in Key Industries.
Hefei Home Appliances has formulated theWaste Gas Management System (3.0)in accordancewith theRegulations of Anhui Province on Prevention and Control of Air Pollution andRegulations of Hefei on Prevention and Control of Air Pollution. Equipped with waste gastreatment facilities, the Company stipulates that process waste gases must be incorporatedinto the waste gas vent pipeline networks and discharged via a chimney after treatment. Inaccordance with environmental impact assessment, pollutant discharge permit and theSelf-monitoring Technology Guidelines for Pollution Sources
(HJ 819-20170), the Company carries outenvironmental monitoring on a regular basis and strengthens supervision and reporting of wastegas emissions.Homa Appliances has formulated the Wastewater and Waste Gas Management Measurestotreat and monitor waste gas emissions. This ensures that the waste gases emitted during theproduction process comply with the relevant laws and regulations as well as the requirementsof local environmental protection authorities. In accordance with theWastewater and Waste GasManagement Measures, the General Management Department formulates monitoring plans andprograms at the beginning of each year, and periodically commissions quali?ed environmentaltesting agencies to monitor waste gases from production as well as issue air pollutants monitoringreports. Based on the reports, each factory prepares a waste gas and pollution prevention map.The map identi?es the scope and location of waste gas emissions.
5,000thousand kWhAnnual electricity generation capacity
2,851.5tonsAnnual reduction in carbon dioxide emissions
45.6
tonsAnnual reduction in carbon dioxide emissions
68.4
tonsAnnual reduction in carbon dioxide emissions
thousand kWhAnnual electricity saving
thousand yuanAnnual savings on electricity bills
thousand yuanAnnual savings on electricity bills
thousand yuanAnnual savings on electricity bills
Annual electricity saving
thousand kWh
Hefei Home Appliances completed the construction of the Nancang photovoltaic project in 2023. The project delivers an annual powergeneration of 5 million kWh and can reduce up to 2,851.5 tons of CO
emissions every year. The project provides clean and renewable energyfor the local area, alleviates energy shortages, and reduces carbon emissions. Furthermore, the self-generation of electricity allows theproject to save around RMB 630,000 in electricity bills annually, thereby reducing the cost of operation for the Company.
In 2023, TCL Hefei Refrigerators and Washing Machines Industrial Park launched a street lamp optimization project. The Park optimized thelayout of street lamps by replacing the original street lamps with high-e?ciency and energy-saving ones. It has also achieved automaticswitching and brightness adjustment of lamps through intelligent control technology. The project can save about 80,000 kWh of electricityevery year, equivalent to RMB 60,000 in annual electricity charges, and reduce 45.6 tons of CO
emissions.
APF is an advanced technology that improves power quality and reduces energy usage. As a result of implementing such a technology, HefeiHome Appliances was able to reduce harmonic interference and voltage ?uctuations as well as improve the stability of its power supply in2023. In comparison with the previous year, the failure rate of the Company's equipment decreased by 30%. Additionally, APF technologysaves the Company 120,000 kWh of electricity annually, which equates to a savings of RMB 90,000 in electricity charges and a reduction inCO
emissions of about 68.4 tons.
Nancang photovoltaic construction project
Park street lamp optimization project
APF (active power ?lter) reconstruction project
In 2023
2023 Homa Group Environmental, Social and Governance ReportPutting Environment First to Build a Green Future
2019
Waste ManagementHoma Group is committed to minimizing waste generation and promoting waste management and disposal by implementing strict measures. TheCompany has formulated a series of internal management measures with reference to theStandard for Pollution Control on Hazardous Waste Storage(GB 18597-2023)and Technical Speci?cation for Setting Identi?cation Signs of Hazardous Waste (HJ 1276-2022).As for general recyclable wastes and general non-recyclable wastes, Hefei Home Appliances has formulated a hazardous waste management andrecycling system to sell recyclable solid wastes according to routine procedures as well as hand over waste electronic components to manufacturersfor professional recycling and disposal. In this way, the negative impacts of the Company's operational activities on the environment can beminimized. Aside from that, Homa Appliances has formulated systems such as theWaste Classi?cation Listand Waste Management Measures, to re?nethe management of solid waste throughout the entire process of waste generation, collection, storage, transportation and disposal.As for hazardous wastes, Hefei Home Appliances has formulated theHazardous Waste Warehouse Management System, to ensure that hazardouswastes are managed by special personnel and stored in a special warehouse. The Company hands over hazardous wastes to professional third-partyagencies for disposal based on a review of supplier certi?cation. Homa Appliances has formulated a hazardous substance management system withreference to the QC080000 and other relevant requirements from customers. The Company regularly commissions professional agencies to conductinspections and supervision of the workplace environment as well as the management of solid wastes and hazardous chemicals, so as to ensure thatthe disposal of wastes meets national and local standards.
Noise Management
Homa Group seeks to minimize the impact of production noise on employees and the surrounding environment in strict accordance withenvironmental protection laws and regulations by adopting a number of measures to control noise in the manufacturing bases and their vicinity.Homa Group and its subsidiaries reduce noise levels and ensure that the noise generated meets standards by updating testing programs as well asimproving equipment protection and operating environment testing on a regular basis.
Waste contents
Waste contents
Responsible department
Responsible department
Disposal methods
Disposal methods
Waste metal, waste plastic,waste paper, waste wood, etc.
Electronic waste, usedpackaging drums, surfacetreatment sludge, etc.
All relevant departments andthe manufacturing department
General ManagementDepartment
Commission quali?ed units fordisposal
Store in hazardous wastewarehouse, and commissionquali?ed hazardous wastedisposal agencies for disposal
Generalrecyclable
wastes
Waste contentsResponsible departmentDisposal methods
Domestic waste, constructionwaste, etc.
All relevant departments andthe manufacturing department
Commission quali?ed units fordisposalGeneral non-
recyclable
wastes
Generalrecyclable
wastes
Water ResourceManagement
At Homa Group, water is primarily used in production processes for laboratory tests, productiontests, ?re control, and other domestic uses. By prioritizing water conservation, Homa Groupstrictly observes the laws, regulations and relevant speci?cations, such as theLaw of the People'sRepublic of China on Prevention and Control of Water Pollution, Action Plan for Prevention andControl of Water PollutionandIntegrated Wastewater Discharge Standard of the People's Republicof China, in order to continuously promote the full life-cycle management of water resources.Homa Group has formulated a series of internal management methods to continuously re?nethe water resources management system and measures. Hefei Home Appliances has establishedtheWastewater Management Systemin accordance with theHefei Water Environment ProtectionRegulationsto standardize the sewage discharge process and supervision system. In addition,Homa Appliances has implemented theWastewater and Waste Gas Management Measuresandother systems, with strict monitoring of the operation and maintenance of wastewater treatmentfacilities to ensure that the quality of discharge meets the requirements of water pollutiondischarge limits for existing projects in the Pearl River Delta stipulated in Guangdong Province's
Electroplating Water Pollution Discharge Standard (DB44/1597-2015). At the same time, theCompany regularly commissions third-party agencies to monitor the wastewater generated duringproduction and conduct follow-up operations with reference to theProcedures for Corrective andPreventive Measures for the treatment of substandard wastewater.Homa Group and its subsidiaries are constantly exploring new ways to improve e?ciency of wateruse in production by recycling water and reusing wastewater. Hefei Home Appliances vigorouslypromotes water-saving measures in the production process, including recycling of wastewaterarising from mold injection and extrusion machine and laboratory testing. Furthermore, HomaAppliances has taken a variety of water conservation measures in its production process, includingusing circulating water and minimizing water consumption through the implementation of low-pressure water supply. Meanwhile, Homa Appliances has equipped each plant area with theintelligent IoT water meter system to analyze data in real time and conduct timely troubleshootingat a lower cost.
Hefei Home Appliances sewage station
Neutralizationreaction tank
Wastewater
Filter
Regulating tank
Sludge condensationand ?lter pressing
Recycling water tankStandard emission
Coagulation reaction
precipitationHCL PAC
Air ?otation systemPAM
Hefei Home Appliances sewage treatment process
288,360tonsTotal wastewater discharge
1,484,629tonsTotal water consumption
15,566.31tons
215.17
tons
Total discharge of non-hazardous wastes
Total discharge of hazardous wastes15,781.48tonsTotal emissions ofhazardous wastes
2023 Homa Group Environmental, Social and Governance Report
Putting Environment First to Build a Green Future
Green Culture
Good environmental awareness and practices are essential to a company's sustainable development. Homa Group has long advocated sustainabledevelopment and continued to push forward the progress of green culture. Among the energy conservation measures adopted by the Company ino?ce areas are enhancing employees' environmental awareness, re?ning green o?ce practices and enhancing employee awareness of environmentalissues. On a regular basis, the Company conducts training and education activities designed to promote green culture, so that employees are aware ofand engaged in environmental protection, thereby laying the foundations for the Company's sustainable development culture.
In 2023, Homa Group carried out a series of key activities as part of its green o?ce e?orts through the creation of an environmentally friendly workplacethat provides a healthier and more comfortable o?ce environment for employees. Using high-e?ciency, energy-saving LED lamps, the Company improveslighting e?ects and reduces energy consumption and CO2 emissions. Air conditioning at the Company is controlled regionally. In addition to that, theCompany strives to achieve a paperless o?ce by using electronic document management systems, encouraging duplex printing, providing paper recyclingbins on each ?oor, and encouraging employees to recycle as much paper as possible.
Homa Group is committed to enhancing the environmental awareness of employees while boosting the implementation of green o?ce systems andmeasures. Through diversi?ed environmental protection activities, the Company encourages employees to voluntarily put ecological civilizationvalues into practice, thus increasing their passion for environmental protection and driving them to be more engaged in it. Furthermore, the Companyregularly conducts education and training on environmental protection for employees with the aim to enhance their environmental awareness andskills while ensuring that the concept of green o?ce is spread and put into practice among all employees.
Green O?ce Practices
Green Culture Advocacy
In 2023, Hefei Home Appliances vigorously carried outenvironmental protection training for employees toenhance their environmental awareness and knowledge.In June and November, the Company held two rounds oftraining on environmental protection. Full-time and part-time safety and environmental management executivesfrom each department, and hazardous waste managementpersonnel from workshops and warehouses were invitedto participate in the training. The training covered variousaspects of environmental protection, including speci?cationsfor hazardous waste labels, general industrial solidwaste management, and the Company's environmentalmanagement system.
Homa Appliances carried out the World Environment Daythemed event on June 5, 2023. During the event, employeeswere introduced to the origins of World Environment Day,and the solid waste classi?cation system and hazardouswaste identi?cation system were discussed under the themeof standardized waste management. Through this activity,employees gained more knowledge about hazardous wastemanagement processes and requirements, and they learnedhow to handle accidents and emergencies.
Environmental Protection Training by Hefei HomeAppliances
World Environment Day Theme Event by HomaAppliances
Photo taken at the site of environmental training in June
World Environment Day theme event
Introduction of hazardous waste labeling system
Green Industry Chain
Homa Group has been committed to building a green industrial chain to achieve environmentally friendly production andsustainable development. By acting in line with the Company's long-term development strategy, Homa Group puts theconcept of green development into practice in product development and production, warehouse and logistics, productpackaging and other aspects in order to continuously reduce unnecessary emissions and wastes generated duringoperation. Besides, the Company continues to boost communication and collaboration with supply chain partners with theobjective of boosting the development of environmental technology and innovation and create a green industrial chain.Homa Group has always adhered to developing e?cient and energy-saving products and improving the energy e?ciencygrade of its product line-up through innovation in the management of energy e?ciency. Hefei Home Appliances, asubsidiary of the Company, strictly complies with all international energy e?ciency standards in order to ensure that itsproducts are energy-e?cient and environmentally friendly. Hefei Home Appliances Company began research on ultra-low temperature technology in 2021, and was able to successfully develop the TCL-36℃ crystalline ?lm deep-freezingpreservation technology based on the R600a refrigerant in 2022, which contributed to its leadership position in the industryfor energy e?ciency performance. At the same time, Homa Appliances continues to optimize energy-saving technologies toreduce the energy consumption of products. Homa Appliances has been utilizing the R600a refrigerant for its products, thusreducing millions of tons of potential ozone-depleting substance emissions.In the procurement of raw materials for production, the Company proactively advocates the concept of environmentalprotection in the supply chain by prioritizing raw materials and products that meet environmental standards. HomaGroup has established a comprehensive green procurement management system, which stipulates that the procurementinvestigates the ability of each manufacturer or relevant party to control environmental pollution factors as well as theirenvironmental performance. We have formed a list of quali?ed suppliers accordingly and overseen as well as veri?ed theimplementation status of all relevant parties.With the use of advanced energy-saving equipment and technologies, Homa Group continuously improves its energy usee?ciency during product production. As for the choice of product materials and packaging, the Company refrains from usingplastics and instead utilizes metals that are more recyclable to enhance the recyclability of the product. Homa Appliancescontinues to promote the use of green packaging materials for our products. To reduce the negative environmental impactof products, all instruction manuals are printed on recycled paper using eco-friendly soy ink.In the product warehousing and logistics phase, Homa Group has been proactively implementing green logistics to reduceresource consumption in product warehousing and logistics. Hefei Home Appliances continuously reduce cartons usedin product packaging and circulation, and promote the use of recyclable packaging appliances, such as special industrialvehicles and recyclable plastic boxes. In addition, Hefei Home Appliances, has replaced all warehouse clamp trucks withnew energy battery-powered vehicles, and built a 10,000 m
low-carbon, pollution-free intelligent stereoscopic warehouse.In the future, Homa Group will continue to promote innovation in all aspects of production and operation, continuouslyimprove its informatization and digitization capabilities throughout the value chain, and ensure that the Company'sproducts and business remain relevant to future development trends.
2023 Homa Group Environmental, Social and Governance Report
Putting Environment First to Build a Green Future
INNOVATION
Safety Assurance andProduct InnovationHoma Group takes pride in its sustainable technology innovation andexcellent products. We aspire to become a world-leading intelligenthousehold appliance manufacturer and pursue sustainable developmentdriven by the core concept of utmost professionalism and expertise as wellas utmost cost-e?ectiveness, which is at the core of our competitive edge.
2625
Safety Assurance and Product Innovation2023 Homa Group Environmental, Social and Governance Report
Homa Group attaches great importance to the commercialization of the successful results of R&D innovation and develops innovative products via multiplechannels in adherence to the sustainable R&D concept. In 2023, Homa Group made a major breakthrough in improving refrigeration e?ciency, loweringenergy consumption and applying environmentally friendly materials. A total of 57 innovative research projects were carried out. The Company was granted330 patents in the same year, bumping the cumulative number of patents granted to 2,055.The product design of Hefei Home Appliances incorporates multi-dimensional advanced concepts such as environmental protection, health, andintellectualization. The Company has achieved breakthroughs in various areas, such as the R&D of refrigerator freshness preservation, deep-freezing, high-energy e?ciency, low noise, ice-making, built in, CMF and other product features. It has since launched the ultra-thin built-in series. Furthermore, HefeiHome Appliances has developed a healthy pollution-free washing machine technology, and launched a multi-domain pollution-free technology andproducts characterized by ultra-thinness, large drum sizes, and pleasant appearances, thereby enhancing its washing machine products' competitiveness.
542.05
Million RMBR&D investment
R&D and Innovation
Committed to exploring the boundaries of innovation, Homa Group combines advanced R&D capability with profound industry expertise in itscontinuous advancement of innovative product development. Moreover, it attaches great importance to IPR protection, and continues to improveproduction e?ciency and product quality with ever-improving intelligent manufacturing technologies.R&D Strength
Guided by the philosophy of creating people-oriented innovative technology that is rational and practical in product development, Homa Groupcontinues to make intensive e?orts in the area of R&D. The Company is now sta?ed with 894 R&D personnel, accounting for 7.04% of the totalemployees.. In 2023, the Company's R&D investment reached an estimated amount of RMB 542 million, a year-on-year increase of 15.10%. At thesame time, Homa Group has formulated a signi?cant number of R&D incentive measures, including technological innovation awards and scienti?c &technological innovation awards, to unleash employees' creativity.
Homa Group is home to multiple R&D centers. Among them, Hefei Home Appliances is equipped with a refrigerator R&D center, and a washingmachine R&D center, each of which is responsible for formulating product technology routes and building R&D system capabilities while drivingproduct development and ensuring product performance and quality. In order to continually strengthen the Company's research and developmentcapabilities, Homa Appliances R&D Center focuses on air-cooled products as well as other technical products and technology.
Enterprise R&D center
Development of air-cooled products, tackling of technical issues related to energy e?ciency,e?ciency improvement of process and reduction of expenditure and consumptionProvincial industrial design centerProduct appearance design, panel materials and interior design, and silk-screen printing designLaboratory accredited by CNASProduct performance testing, and product safety and stability testing
Homa Appliances R&D centerResearch orientation
Founded in August 2014, the TCL White Household Appliances Testing Center, which occupiesa total ?oor area of 6,000 ㎡ and holds a total investment of over RMB 40 million, can achievean annual output of 5 million refrigerator and washing machine units. The Testing Centeris equipped with comprehensive testing capabilities such as a refrigerator laboratory, awashing machine laboratory, a reliability laboratory, parts laboratory, and a freshnesspreservation laboratory. These laboratories cover a wide range of test criteria, such as productperformance, safety, mechanics, acoustics, EMC, software, electrical performance, intelligentinterconnection, freshness preservation, RoHS, etc. The Testing Center operates in strictaccordance with the IEC/ISO17025 and has established long-term collaboration on testingtechnology sharing with the China Household Electric Appliance Research Institute, HefeiGeneral Electromechanical Product Testing Institute, Weikai Testing Technology ResearchInstitute, Anhui Testing Technology Research Institute, and Hefei Product Quality InspectionInstitute. Our testing center has also been certi?ed as an SGS accredited laboratory.
TCL White Household Appliances Testing Center
Hefei Home Appliances Testing Center
Innovative Technologies of Hefei Home Appliances
Innovative Technologies and Products
TechnologyEnergye?ciency
NoiseHealth
Refrigerator? Upgraded foaming agent system that reduces the consumption of
foaming materials by 5%.? Ultra-thin built-in series that boasts industry-leading energyconsumption and thickness of foamed insulation layer inrefrigerator cabinet without using VIPs (Vacuum Insulation Panels).? Research on ?ow noise of capillary tube? Improvement of reservoir re?ux noise? Application of pipe vibration simulation technology? Molecular freshness preservation technology? T-fresh technology? Dry-wet separate storage? Precise temperature control using AI technology? Molecular level intelligent preservation technology? Intelligent noise reduction technology? Remote OTA upgrading? Integrated frequency conversion technology? Intelligent diagnostic technology, etc.
Washing machine? National standard e?ciency grade 1? EU standard grade A or A-10%? Australian Standard water e?ciency star: 4.5,electricity e?ciency star: 5? Noise level of EU standard grade A? Dual-drum model G160C16-HDY/G160Q10-HDY
won the Excellence Award in the acoustic qualityevaluation and certi?cation organized by the ChinaHousehold Electric Appliance Research Institute.? Drum model G120T6-HB has been certi?ed bythe China Household Electric Appliance ResearchInstitute as Grade A in terms of deodorization.? WIFI function for automatic detergent feeding? Intelligent weighing? Cleanliness intelligent detection? Intelligent dual dryness judgement technologyIntellectualization
Awarded byAward
Organizing Committee of China Household ApplianceRetail Innovation Summit
TCL refrigerator: Excellent Case Award of 2023 China Household ApplianceRetail Innovation SummitOrganizing Committee of 2023 China RefrigeratorIndustry Summit Forum
Ultra-thin built-in preservation products of year 2023 in China refrigeratorindustryNational Household Electric Appliance IndustryInformation Center
TCL ultra-thin freestanding series, model products of deep-freezing freshpreservation freestanding refrigerator.iF Industrie Forum Design2023 iF Product Design AwardDesign Zentrum Nordrhein Westfalen2023 Red Dot Product Design AwardChina Household Electric Appliance Research InstituteOutstanding Product Innovation of Year 2023Organizing Committee of China Household ClothesWashing, Drying and Care Industry Summit Forum
Washing and care innovative brand of year 2023 under the category of TCLwashing machine in China household clothes washing, drying and care industryOrganizing Committee of China Household ClothesWashing, Drying and Care Industry Summit Forum
Innovative washing, drying and care integrated machine of year 2023 in Chinahousehold clothes washing, drying and care industry
2023 Homa Group Environmental, Social and Governance Report
Safety Assurance and Product Innovation
Homa Group attaches great importance to the protection of IPR and has always prioritized intellectual property management at a key position in itscorporate management strategy. Homa Group strictly abides by laws and regulations such asthe Patent Law of the People's Republic of Chinaandthe Rulesfor the Implementation of the Patent Law of the People's Republic of China, promoting the Company's protection of IPR. Hefei Home Appliances has issuedinstitutional documents such as thePatent Management Work Measures, which clearly stipulate the Company's patent protection and punishment methods.Moreover, special personnel have been assigned for patent management, which involves running through the entire process of product development,production and sales. Homa Appliances has established a comprehensive patent application system to ensure that the Company as well as the researchresults of the R&D sta? are fully protected.To increase patent awareness among the Management and engineers of the Company, Homa Group organizes patent trainings from time to time in order tocontinue enhancing employees' patent awareness and their enthusiasm for research and development. In 2023, Hefei Home Appliances organized trainingon Discovery And Drafting of High-Value Patents for a total of 40 trainees, with a view to enhancing patent application skills of R&D personnel.
On September 20, 2023, TCL held a washing machine launch event for fall, revolving around thetheme of "integrated design for better washing and drying". The event saw the launch of theTCL dual-compartment model T10, which provides a one-stop solution for washing, drying andcare. The product stands out for its ultra-thin, built-in design and intelligent interconnectionfunctions. Featuring product diameters of 555 mm in thickness, it stands as the thinnest in theindustry. T10 features the heat pump intelligent temperature management technology, which ismore e?cient and saves more energy while preventing damage to clothing. Besides, the dual-compartment T10 model adopts cutting-edge water- and temperature-regulating technology,and is equipped with a honeycomb style internal drum, which increases the cleaning ratio to 1.1,which is an industry-leading ratio.In 2023, the Company's subsidiary, Homa Appliances, continued to enrich its product lineup of air-cooled refrigerators by developing customizedproducts of various sizes, styles and functional con?gurations, with the objective of providing a better user experience. At the same time, HomaAppliances steps up its e?orts in development and technical reserves of intelligent refrigerators while constantly exploring solutions for smart IoTintegration. It has since launched multi-door counter-depth models, products with energy consumption that meets the criteria for the new EUstandard Grade B, as well as an ultra-narrow drawer air-cooled refrigerator, thus leading the way in the future of smart home technology.
Hefei Home Appliances T10 Washing, Drying and Care Integrated Machine
Ultra-thin Built-in Four-door RefrigeratorModel FF4-650 (BCD-520) is designed as an ultra-thin, built-inrefrigerator with four doors, which can be completely enclosed in acupboard without any gaps, saving up to 35% of ?oor area, thus freeingup kitchen space. In addition, the product is equipped with a 26-levelfull-range temperature refrigeration control system to achieve full-range, convenient temperature regulation to meet the storage needs ofvarious food ingredients. The cold storage chamber is equipped with anindependent moisture retention and freshness preservation area withsuperior sealing capabilities, which can e?ectively block out externalmoisture and ensure long-lasting freshness of fruits and vegetables.The product adopts AG+blue crystal odor-purifying bacteria-removingtechnology, with a bacteria removal rate up to 99.99%, ensuring thesafety and health of food materials.
TCL T10 Model
Awarded byAward
China Household Electric Appliance Research InstituteOutstanding Product Innovation of the YearAll View Cloud
Trend Empowering Brand of Year 2023Low-carbon Energy-saving Trend Product of Year 2023
IPR Protection
2,275patentscumulative patents applied
1,635patentscumulative patents obtained
As of 2023, Hefei Home Appliances has
As of 2023, Homa Appliances has
420 patentsobtained692 patents
applied
373 utility model patents298 utility model patents
118 invention patents32 invention patents201 appearancedesign patents
90 appearancedesign patents
2023 Homa Group Environmental, Social and Governance Report
Safety Assurance and Product Innovation
Homa Group puts product quality and safety under strict control and has always organized production in a standardized manner with accordanceto the relevant systems. In strict accordance with the GB/T2828.1 national standard and the incoming inspection guidelines, the Company hasformulated the process management system and other documents, stipulating that raw materials must comply with RoHS and REACH regulations. Atthe same time, the Company inspects the packaging, appearance, size and performance of each batch of these materials to ensure their quality andsafety. By the end of 2023, Hefei Home Appliances has obtained CCC certi?cate; export refrigerators business have obtained certi?cations includingSAA, CB, CE, GS, and KC certi?cate; the washing machine business for export have completed certi?cations including SAA, CB, CE, GS, SASO, BSMI, KC,TISI, and BPS. Homa refrigerators have completed quality and safety certi?cations including CCC, UL, TISI, TUV and VDE.To closely regulate the production process, Homa Group has established a sound process inspection management process. Among them, HefeiHome Appliances has established an inspection and management process for inbound goods to ensure that the quality of the input materials and thequality of the process meets the uni?ed standards. The component processing department of Homa Appliances has implemented a comprehensiveinspection mechanism that follows the "?rst pre-production inspection, mold change, ?rst product inspection" concept, and carries out quality andsafety management for each batch of products. To further guarantee the quality of products exported, Homa Appliances requires each branch factoryto perform quality inspection throughout the entire product assembly line, which includes the inspection of semi-?nished products and productappearance, refrigerant leak detection, refrigeration, safety performance, etc. During the assembly process of key components, the application of MESintelligent error-proo?ng inspection system further improves product quality.Homa Group has formulated a comprehensive inspection and management speci?cations for ?nished products to ensure that their quality is up topar. Homa Appliances has established a random sampling inspection system to supervise the quality of ?nished IPQC process products. It includesdaily random inspection of the structure of the ?nished products, conformity of safety certi?cation, refrigeration line and other dimensions to ensurethat the components and functions of the ?nished products meet the quality and safety management standards. At the same time, Homa Appliancesconducts further random sampling inspections before the ?nished products leave the factory to ensure that the quality of each batch to be deliveredcomplies with the national “Santong” (same line, same standard, same quality) standard and the EU standards.
Product Quality and SafetyHoma Group is committed to becoming a world-leading smart household appliance manufacturer by adhering closely to the policy of productinnovation as the driving force and quality and safety as the guarantee. We remain dedicated to the customer-oriented principle and continuouslyimprove the product quality management system to guarantee product quality safety and improve the quality of customer service.
Guarantee of Quality and Safety
In terms of management structure, Hefei Home Appliances has established a Quality Management Center to coordinate the Company's whole-process,full-chain quality management and aligning global after-sales services management. The Center establishes quality KPI goals and speci?c evaluationmechanisms to produce issues reports on market quality anomalies and quality costs as scheduled. Meanwhile, the Center is responsible to addressesand resolves quality accidents and disputes in a timely manner and participates in the evaluation of suppliers. Additionally, Homa Appliances has setup a Quality Management Committee to coordinate the Company's quality management e?orts. Under the leadership of the Vice President in chargeof quality system, the Committee entrusts the Management to formulate and review the annual quality indicators, analyze and plan improvementmeasures as well as improve the operational e?ectiveness of the Company's quality management system.
Product Certi?cationDepartment
RefrigeratorManufacturing QualityDepartment
Quality Management Center
Testing Center
Washing MachineManufacturing QualityDepartmentMarketing andUser Reputation
Department
NPI ManagementDepartmentSystem Operation
ImprovementDepartment
VQA Management
Department
On November 21, 2023, at Homa's new launch event for the built-in series refrigerator, Qu Zongfeng, theDeputy Director of China Household Electric Appliance Research Institute (CHEARI), o?cially granted the“Santong” (products sold domestically should be produced on the same production lines, meet the samestandards, and be of the same quality as products for export) product certi?cate issued by the CHEARI BeijingCerti?cation & Testing Center to Homa Appliances. This represents a high degree of recognition for the qualityof Homa products and its pursuit of supreme quality in household appliance manufacturing.Homa Appliances is the ?rst receiver of the "Santong" certi?cate issued by the China Household ElectricAppliance Research Institute. As a high-end export brand, Homa has always adhered to the "Santong"principle, which requires products from the same production lines to have equal quality based on the samestandards. In this way, we can guarantee that all users across the globe can enjoy our quality refrigerators thatmeet the EU standards.
Homa Appliances Was Awarded the "Santong" Product Authentication Certi?cate
"Santong" productauthenticationcerti?cate
To reduce the annual accumulative defect rate of air-cooled refrigerator noise and increase customers' trust in our products, the qualityimprovement personnel of the Company retrieved the annual accumulative defect data to analyze the U920, U700, U595, U545, and U520platforms of air-cooled products, identi?ed the common key problems of these platforms, de?ned the four main factors and formulatedtargeted improvement measures. The target to reduce noise generated by air-cooled refrigerators was achieved by June 2023. The air-coolednoise was optimized by 63% when compared with the level in January 2023.
Program for Reduction of Annual Accumulative Defect Rate of Air-cooled Refrigerator Noise by Hefei Home Appliances
To continuously improve product quality and enhance consumer experience, Homa Group has adopted a series of measures, such as intelligentupgrading, design optimization, and process technology innovation. In addition, Homa Group constantly enhances employees' awareness andknowledge on product quality by organizing diversi?ed quality skills training. These measures achieved product quality enhancement throughdimensions ranging from production equipment upgrades and employee operation improvement.In 2023, Hefei Home Appliances upgraded its intelligent production and manufacturing equipment, introduced automated production tools &equipment and appearance AI monitoring equipment. It also transformed its production lines to facilitate a comprehensive improvement of theCompany's production e?ciency and product quality in all aspects.
Awarded byAwarded EntityHonor
China Quality Certi?cation Center
Hefei Home Appliances"Good Household Appliance" Certi?cationHefei Home Appliances
"Grade I Embedded Mounting of Built-inRefrigerator" Certi?cationHefei Home Appliances2023 FT Quality AwardOrganizing Committee of Appliance & Electronics WorldExpo/China Household Electrical Appliances Association
Hefei Home Appliances2023 AWE Award-Excellent Product AwardOrganizing Committee of China Household ClothesWashing, Drying and Care Industry Summit Forum
Hefei Home Appliances
Smart Washing and Care Star Product of year2023 in China household clothes washing,drying and care industryCHEAA.Com & JD Household Appliance and HomeSupplies
Hefei Home Appliances
Excellent Channel Performance Product ofyear 2023 in China household clothes washing,drying and care industryChina Household Electric Appliance Research InstituteHoma Appliances
2023 Good Product of China HouseholdAppliance Industry
In 2023, Homa Group and its industry obtained the following product quality awards.
Quality Management Structure of Hefei Home Appliances
Quality Management SystemIn strict accordance with theProduct Quality Law of the People's Republic of Chinaand other domestic and international quality managementstandards, Homa Group continuously improves the Company's quality control process and product quality improvement process. Hefei HomeAppliances has formulated theQuality, Environment & Occupational Health System Management Manual, Control Procedures for Management ofConsistency and Identi?cation of Domestic Sales Products, Control Procedures for Substandard Products, Control Procedures for Product Monitoringand Measurement, Control Procedure for Product Identi?cation and Traceabilityand other internal quality management systems, to standardizethe quality management system and operation processes. In order to ensure product quality and safety, Homa Appliances has implemented severalregulations, including theQuality Manual, theAfter-sales Quality Monitoring Program for New Products, theProduct Recall Management Measures,and the Procedures for Corrective and Preventive Measures.Homa Group reference standardsISO StandardsISO9001:2015、ISO/IEC17025NationalStandards
GB4343.1-2018、GB4706.1-2005、GB470.13-2014、GB/T8059-2016、GB12021.2-2015、GB19606-2004、GB470.24-2008、GB/T4288-2018、GB12021.4-2013、GBT 4214.4-2008US StandardCAN/CSA-C300-18、ANSI/AHAM HRF-1-2019EU StandardsEN 60335、EN 62552:2013、EU 2019/2016Australian/NewZealand Standard
AS/NZS 60335、AS/NZS CISPR 14.1:2013、AS/NZS 4474.1:2007、AS/NZS 4474.2: 2009
*The reference standards listed above are all the standards certi?ed by Homa Group and its subsidiaries. Some of the above standards are onlyapplicable to Hefei Home Appliances or Homa Appliance.
Washing machine product
line quality BP
Refrigerator product line
quality BP
2023 Homa Group Environmental, Social and Governance Report
Safety Assurance and Product Innovation
Evaluation of products to be recalled
2022年，奥马电器达成
产品质量投诉。
QualityManagementTraining
Homa Group attaches great importance to training on employee quality management. It iscommitted to enhancing employees' awareness of quality management, and provides supportfor various departments in product safety, high-quality production and testing works. On thisbasis, Homa Group has actively developed quality management training plan to standardize therequirements of employee training management.
In December 2023, Homa Appliances carried out a quality management training on thetheme of ?nished product audit standards and control requirements. The objectiveof the training was to help employees gain deeper insights into quality standards andinspection requirements as well as enhance the inspection capabilities of the qualityinspection team. A total of 50 employees participated in the training.
Training on Management of Finished Product Audit Standards by Homa Appliances
Managementof Unquali?edProducts
Homa Group places great emphasis on product recall management, and has established a robustproduct recall management process and system with the purpose of minimizing the damage toconsumer interests while keeping product quality and safety under control.To address product recalls, Homa Group has developed a variety of systems to ensure therational protection of consumers' rights and interests. Among them, Hefei Home AppliancesintroducedControl Procedures for Substandard Products, while Homa Appliances formulatedtheProduct Recall Management Measures, Procedures for Corrective and Preventive Measures,Nonconforming Product Output Control Procedureand other systems, which stipulate strictrequirements for all departments and procedures involved in product recall. Once a productrecall occurs, the Company convenes R&D, quality, manufacturing factories, sales, and after-salesservice and other relevant departments to set up a product recall team that shall be responsiblefor planning, notifying, recording, and evaluating the products to be recalled. Once the productrecall is completed, the Company will arrange for the relevant departments to review the recallincident and provide a summary of it.
Product Recall Procedure of Homa AppliancesProduct Recall Procedure of Hefei Home Appliances
N
Y
Evaluation ofproduct recall risks and initiation of recall
Documentation and archivingRecall summary
Correction and prevention of recurrenceDisposal of recalled products
Analysis and summary of reasons for product recall
Analysis of product failure and formulation of corrective and
preventive actions
Disposal of recalled productsImplementation of product recall
Recall of productsFormulation of product recall plan
Feedback from the factory/market on major product
quality defects or failures
Initiation of recall procedure
Possible recalls for productsthat have been delivered to
customers
13,987
1,500
sessions
sessions
attendances
attendances
quality management and control trainings
product safety trainings
trainees participated
trainees participated
Training onIntroduction of PFEMA KnowledgeandQuality Management ModelBased on Active Prevention by Hefei Home Appliances
site of PEEMA-related knowledge lecture
site of Training onQuality Management Model Based on Active Prevention
In September 2023, Hefei Home Appliances held two lectures on quality managementknowledge, which revolved around PFEMA related knowledge and training on QualityManagement Model Based on Active Prevention, respectively. During the event,PFEMA (Process Failure Modes and E?ects Analysis) experts were invited to introduceFEMA basic knowledge and general method guidelines, PFEMA application andimplementation, etc. They also shed light on active quality management applications inquality, R&D, components, manufacturing, and market services with employees.
2023 Homa Group Environmental, Social and Governance Report
Safety Assurance and Product Innovation
2022年，奥马电器达成
产品质量投诉。
CustomerService
Homa Group has always adhered to the principle of "serving customers wholeheartedly anddetermined to impress customers" in customer services. We have established a robust warrantypolicy and after-sales service system to continuously improve customer service e?ciency andprovide consumers with better products and an enhanced service experience, thereby increasingbrand recognition and customers' trust in the brand.
Protection ofConsumer Rightsand Interests
Homa Group seeks to strengthen after-sales service and respond to customer demands in a timely ande?ective manner. Hefei Home Appliances addresses customer responses using intelligent reply robots andcontinues to expand the categories of robot services to improve the service e?ciency of each product line.In 2023, Hefei Home Appliances made comprehensive upgrades to its customer management system,USS, and other management systems to improve customer service management and response speed. Inaddition, on the basis of multi-channel, multi-platform communication, Homa Appliances has establishedarchives on the Call Recording Quality Inspection Platform to track customer demands more e?ciently. In2023, Homa Appliances further clari?ed the service tracking plan for premium customers and those whohave purchased high-end models. This enables the Company to respond promptly within 2 hours andcomplete 75% of working orders on time.As for its after-sales policy, Homa Group proactively expands the scope of warranty and strives to provideconsumers with the best user experience. Within 7 days of the date of sale, customers can choose to refund,exchange or repair the product should it be faulty. Within 15 days of the date of sale, customers may opt foran exchange or repair.As a leader in the intelligent household appliance industry, Homa Group has also developed a robustmaintenance system. Homa Appliances, a subsidiary of the Group, assures that customer service will beprovided within 24 hours in central cities and 48 hours in rural areas, with appointment services providedfor remote areas. On this basis, the Company has speci?cally outlined the service requirements andmaintenance standards for service stations, and prepared manuals like theProduct Parts Disassembly andAssembly Training and Product Maintenance Service Manual for the reference of service personnel.Homa Group attaches great importance to customer complaints and the way they are handled. We haveset up diversi?ed customer communication channels to allow customers to submit inquiries and appealsthrough our o?cial WeChat account, customer service hotline, the Company's o?cial website ande-commerce platform. We have also assigned special personnel to follow up, handle and respond to suchinquiries and appeals. Hefei Home Appliances, a subsidiary of the Group, follows theTCL All-category User& Customer Complaint Resolution Mechanismto handle various complaints via a targeted approach. At thesame time, Hefei Home Appliances regularly monitors public opinion to ensure that customer complaintsare e?ectively resolved.Additionally, Homa Group attaches great importance to customer privacy protection, and has formulatedstrict data management policies and permission settings. The Company has established protectionmechanisms for various stages of acquiring, monitoring and distributing customer information, tosafeguard customer privacy. In this regard, Hefei Home Appliances carried out a comprehensive inspectionfor data masking of all customer information in data system to strengthen the management and protectionof user information.
100%Hefei Home Appliances' complainthandling rate
94.37%
Homa Group's customer satisfaction rate
87.8%
the complaint handling satisfaction rate
5.2
daysthe average complaint closure time
China Customer Service Festival
JD
? Best employer? The most beautiful customer service provider? Training Guru? Ingenuity Service Award? Best Promotion Award
Awarded byHefei Home Appliances won the following customer service awards in 2023:
Honor
Empowerment ofService Team
To better serve consumers, Homa Group remains dedicated to empowering the service teamby improving its service awareness and skills. The Company has formulated theRegulationson Management of Training for User Service Centerand other customer service managementsystems, to provide hierarchical training and management for employees in charge of di?erenttypes of work. In this regard, Hefei Home Appliances carries out on-site training and onlinetraining for engineers, as well as training on construction of white household appliances servicecapacity across the country in order to fully empower the Company's service team. At the sametime, Homa Appliances conducts diversi?ed training in various forms, such as knowledge library,video and live-streaming to enhance capability of engineering service personnel.
From June 13 to 17, 2023, Hefei Home Appliances held OBG global refrigerators andwashing machines technical training. The objective of the training is to share OBGproduct technical expertise, promote communication and technical exchanges betweenthe front-end and the back-end, and help foreign technicians and service providerslearn more about TCL refrigerators and washing machines. Combining theory withpractice, the training session mainly revolves around basic knowledge about products,disassembly practices and troubleshooting.
OBG Global Refrigerators and Washing Machines Technical Training by Hefei HomeAppliances
On December 27, 2023, post-sales supervisors of all Homa Appliances branch factoriesgathered in the large training room on the 4th ?oor of the Homa headquarters toparticipate in a training session. The session provided a comprehensive summary ofthe service e?orts ful?lled by the Group in year 2023 as well as a further clari?cation onfuture requirements for product quality based on after-sales data.
Post-sales Supervisors Training Session by Homa Appliances
Group photo of global refrigerators and washing machines technical training
sessionsonline training for engineers
243,924
personnel
sessions
participants covered
on-site training for engineersAs of 2023, Hefei Home Appliances hascarried outIn 2023
2023 Homa Group Environmental, Social and Governance Report
Safety Assurance and Product Innovation
PERSONNEL
Talent Cultivation andJoint Development
At Homa Group, talents are deemed as valuable assets. By putting thepeople-oriented principle into practice, the Company is committed toproviding employees with a fair, safe and healthy working environment,a holistic training system, and an extensive career development platform,marching ahead hand in hand with employees for joint development.
3837
Talent Cultivation and Joint Development2023 Homa Group Environmental, Social and Governance Report
Protection ofEmployees'Rights andInterests
Homa Group regards employees' rights and interests as the benchmark for enterprise employee managementand protects employees' rights and interests in a comprehensive way. At the same time, the Company alsoprovides diversified welfare benefits to meet the needs of employees and further enhance their job satisfactionand sense of belonging to the Company. As a result, we effectively protect employees' legitimate rights andinterests while building a harmonious, stable labor relationship. In addition, Homa Group vigorously advocatesdemocratic communication by encouraging employees to participate in corporate governance and carries outmulti-channel communication to ensure that the voices of employees can be fully heard and that their opinionsare respected.
Homa Group adheres to the principle of fair employment and ?rmly opposes against any form of employment discrimination. It pledges to treat allemployees equally regardless of their gender, age, race, religious belief, disability and marital status in recruitment, training, promotion or other aspects.As for employees with disability, the Company provides positions that meet their abilities and needs, along with special monthly allowances to e?ectivelysupport their career development. Moreover, the Company holds cultural activities for ethnic minorities on a regular basis. This allows us to show respect foremployees and protect their freedom of belief and ethnic culture, thus creating a diverse and inclusive work environment.
Homa Group strictly prohibits forced labor and child labor of any form. Its subsidiary, Hefei Home Appliances,has issued the Management Procedures for Prohibition of Child Labor and Underage Labor,which strictlyprohibits the use of child labor or supporting child labor by any entity and stipulates that effective methods mustbe used to identify the true age of an employee in recruitment in order to prevent the recruitment of child laborby mistake due to a false document of proof of age. The recruitment management system of Homa Appliancesclearly stipulates that those aged below 16 are not allowed to be registered in the HR system or go throughthe onboarding procedures. Homa Appliances signs an internship agreement with underage employees withreference to the requirements of underage employment and conducts management and training in strictaccordance with relevant laws and regulations to fully protect their legitimate rights and interests.
Diversity and Equal Opportunities
Homa Group has established a salary and incentive system that is highly competitive in the market, in which salary is closely bound with employeeperformance through the employee performance management system. To ensure the fairness and rationality of employee remuneration, theCompany measures the relative value of each position through job analysis and evaluation in a comprehensive, accurate way, and determines thesalary grade accordingly based on job position. Furthermore, the Company makes dynamic adjustments to job ranks and salary grade based on theemployee's job value and working competence and attitude. This will guide and motivate employees to keep continuously improve their competenceand performance.In terms of employee welfare, Homa Group pays close attention to the diversi?ed needs of employees, and has set up a variety of welfare policies,including but not limited to overtime subsidies, meal subsidies, attendance bonus, high-temperature subsidies, transport allowance, etc., to enrichthe employee welfare system through multiple channels. Moreover, the Company provides employees with free dormitories equipped with airconditioners, washing machines, water heaters and other facilities, to ensure a comfortable living environment for employees.
Remuneration and Welfare
To safeguard the legitimate rights and interests of employees to the greatest extent possible, Homa Group has established an e?cient and transparentcommunication mechanism and problem-handling process with the aim to create a democratic communication atmosphere at the workplace whereemployees are encouraged to speak their minds freely. Homa Group and its subsidiaries, Hefei Home Appliances and Homa Appliances, regularlyconduct employee seminars to ensure that suggestion of every employee can be e?ectively conveyed.In 2023, Homa Appliances issued theNotice on Further Improving Communication Channels for Employeesto promote closer communication betweenthe Company and employees. At the same time, Homa Appliances has set up communication channels including the General Manager's Letterbox,Employee Suggestion Box, special telephone line, and "Talk to Homa" WeChat o?cial account and others, which serve as convenient platforms foremployees to express their opinions and exchange ideas. In addition, Homa Appliances regularly provides training aimed at fostering communicationbetween grassroots supervisors or superiors and their subordinates. This also helps to constantly strengthen the internal communication bridge of theCompany.
Democratic Communication
Hefei Home Appliances actively encourages employees to engagein communication, and regularly holds symposiums between thegeneral manager and employee representatives, thus creatingan important platform for gathering employee feedback andresponding to them accordingly afterwards. At the symposium, theemployee representatives and the management worked togetheron formulating the optimization plans on issues such as cross-departmental team building, shuttle bus routes and dormitorycon?guration. They also carried out full communication on theprogress of the resolutions provided based on feedback, thuse?ectively responding to the employees' voices and improvingemployee satisfaction.
Employee Representative Symposium of Hefei Home Appliances
Employee Representative Symposium of Hefei Home Appliances
Homa Group attaches great importance to the protection of employees' rights and interests. Acting in strictaccordance with theLabor Contract Law of the People's Republic of China, Labor Law of the People's Republicof Chinaand other relevant laws and regulations, the Company has always perceived compliance as a bottomline and strictly adhered to lawful employment, with a commitment to providing a fair, safe and healthy workingenvironment for all employees.Protection ofEmployees' Rightsand Interests
100%Homa Groups labor contract signing rate
3,878
6,365
8,806
5,734
Number of female employees
Employees under 50 years old
Number of male employees
Employees between 30-50 years old
Employees over 50 years old
Employee genderdistribution
Employee agedistribution
2023 Homa Group Environmental, Social and Governance ReportTalent Cultivation and Joint Development
4039
EmployeeTraining andDevelopment
Smooth PromotionChannels
EmpowermentthroughComprehensiveTraining
Homa Group is well aware that the growth and promotion of employees is the core driving forceof the Company's sustainable development. Therefore, the Company actively makes constantimprovements to the internal promotion mechanism to ensure that every employee can enjoyfair and transparent promotion opportunities. At the same time, the Company established an all-rounded and multi-level training system, to empower employees to acquire more knowledge andskills while promoting the common growth and prosperity of the Company and talents.Homa Group has always prioritized the career development of employees holding importantpositions within an enterprise, with constant e?orts made to optimize and improve the internaltalent system. In terms of talent selection, Homa Group has adopted the strategy of combininginternal competition with external recruitment, which e?ectively facilitates the optimal allocationand ?ow of talent in the Company and further stimulates the vitality and potential of talent.At the same time, the Company actively participated in campus recruitment and large-scaledouble-election meetings in addition to establishing school-enterprise cooperation relations withnumerous universities. We have also set the internal recommendation channel through leveragingthe alumni resources of the Company, so as to realize resource-sharing and complementaryadvantages between enterprises and universities, which contributes to the diversi?cation ofselection channels and talent allocation.Homa Group conducts comprehensive performance evaluation on a regular basis accordingto the nature of the various job positions held by employees, with a focus on the performanceof employees in key areas such as safety, quality and discipline. Based on the results of talentinventory, job quali?cations and data analysis, Hefei Home Appliances, a subsidiary of theGroup, introduced 360-degree evaluation, engagement evaluation and other tools to build acomprehensive evaluation and assessment framework, which not only e?ectively promoted theenthusiasm of employees, but also promoted their self-improvement and all-round developmentin all aspects.To ensure the regular and fair career development of employees, Homa Appliances hasformulated theManagement Measures of Homa Managersand theManagement Measures forthe Evaluation of Technical Sta? Titlesand established a two-way career development pathincluding the "management channel" and "technical channel”. A clear description of each careerdevelopment channel and the corresponding quali?cation requirements is provided to o?eremployees a broader and diversi?ed development space.To fully empower employees and help them with their personal development, Homa Grouphas established a systematic and hierarchical talent training system, and formulatedTrainingManagement MeasuresandInstructor Management Measuresamong other policy documents,which clearly regulate training activities.To enhance the enthusiasm of employees and implement the talent training system of theCompany, Homa Group actively drives the establishment of an internal learning platform withinthe enterprise. In the design of training contents, Homa Appliances places great emphasison comprehensiveness and pertinence, with the establishment of diversi?ed courses such ascorporate culture concept, product knowledge, professional skills and job quali?cation trainingaimed at enhancing employees' professional quality and comprehensive ability in multipledimensions. Meanwhile, the Company provided customized training programs for employeesat di?erent employment levels (such as management trainees, technical personnel, grass-roots managers, middle-level managers, and internal trainers, etc.), to promote sustainabledevelopment and enhance the competitive advantages of the Company. In 2023, HomaAppliances saw a training attendance of over 100,000, with training hours nearly 160,000 hours.
13.15
HoursAverage hours of training formale employees
10.24
HoursTotal training attendance byfemale employees3,150SessionsTotal sessions ofemployee training
In 2023, employee training organized in Homa Group:
To improve employees' understanding of the Company andhelp new employees better adapt to their jobs, Hefei HomeAppliances rolled out a training program for new employeeswith the theme of "Gathering New Strength and ForgingAhead on a New Journey". The 9-day new employee trainingwas conducted in the form of online community interaction,including online learning and in-person instruction andactivities. 34 new employees from 9 departments attended thetraining.
Hefei Home Appliances Arranging "Gathering NewStrength and Forging Ahead on a New Journey" Trainingfor New Employees
"Gathering New Strength and Forging Ahead on a NewJourney" Training for New Employees
To ful?ll the requirements for the rapid development andexpansion of the production scale of the refrigerator andwashing machine business of white appliances, and developthe professional ability of talents, Hefei Home AppliancesHR Development arranged empowerment training for thegrassroots management personnel of the ManufacturingCenter in October 2023 with the aim of improving the basicmanagement ability of team leaders.
Hefei Home Appliances Arranging Basic ManagementTraining for Team Leaders.
Group photo of basic management training for team leaders
Eagle series
trainingprogramsProfessional
trainingprograms
Newly-appointedseries trainingprogramsLearningplatform and
resourcesdevelopment
Based on the enrollment year, threshold objectives, abilityindicators, etc., we build a tiered leadership developmentsystem from "young eagle", "?ying eagle" to "elite eagle"for fresh graduates, as well as a training system for newly-appointed management and high-potential talent.This aims to help fresh graduates quickly adapt to the transition from campus to workplace.
We regularly carry out professional abilitytraining based on employees' job nature andwork content, to further ensure the rapidimplementation of organizational strategic projects.
We carry out training speci?cally tailored fornewly-appointed management, includingnew managers, department heads anddirectors, to improve their managementability in a targeted way.
We build multiple public learning platformsfor all employees, such as the T-School,where we adopt diversi?ed learningmethods and share learning resources.
Talent Training System of Hefei Home Appliance
2023 Homa Group Environmental, Social and Governance Report
Talent Cultivation and Joint Development
Occupational Health and SafetyHoma Group pays close attention to the employees' occupational health and safety, strictly abides by relevant laws and regulations, establishes andimproves the occupational health and safety management system of the Company, and provides all employees with a safe environment at production bases.At the same time, the Company actively builds a safe production culture and e?ectively protects the occupational health and safety of employees.Homa Group has continuously improved the construction of occupational safety management system, and formulated more than 100 internal systemsrelated to production safety, based on theLabor Law of the People's Republic of China, theLaw of the People's Republic of China on Prevention andControl of Occupational Diseases, and other laws and regulations. Hefei Home Appliances has formulated 69 relevant programs and systems includingtheOccupational Risk Identi?cation and Evaluation Control Proceduresand theLaws, Regulations and Other Identi?cation Requirements for RegulatoryControls. Meanwhile, Homa Appliances has formulated 36 production safety-related systems, including theOccupational Health and Safety andEnvironmental Hazard Investigation and Management Systemand theMeasures for the Classi?cation and Control of Production Safety Risks. At present,Homa Group and its a?liates have obtained the ISO45001 system certi?cation. On this basis, Homa extended the construction of safety management systemto suppliers, requiring them to implement occupational health and safety management.
Management of Safety in Production
To implement relevant national safety technical standards, discover and in a timely manner, eliminate potential risks of accidents related to safety,?re protection, occupational health and environmental protection, and avoid accidents such as work-related injuries, occupational diseases, ?res andenvironmental pollution, Homa Group has established a sound safety production inspection mechanism to fully ensure the safety of employees duringproduction. In the production process, Homa Group identi?es and manages the production risks through daily inspection, patrol inspection, specialinspection and other measures in order to reduce ?re and production safety risks.Hefei Home Appliances has actively implemented the responsibility system for safety production and established the Occupational Health and SafetyCommittee in accordance with the relevant rules and regulations on occupational health and safety, responsible for research, deployment and guidanceof safety management, improvement of the construction of the management system, and implementation of safety management responsibilities of theCompany. Hefei Home Appliances requires strict compliance with the principle of "three simultaneities" during the introduction of new materials such asnatural gas and R600 refrigerant. The Company also requires each branch factory to carry out no less than two assessments of production risk points everyyear, and rectify the inappropriate behaviors during operation through daily inspections. In 2023, Hefei Home Appliances passed the certi?cation of "Level 2Enterprise of Safety Production Standardization" of Anhui Emergency Management Department.During the reporting period, Homa Appliances updated the System for Identi?cation and Control of Occupational Health, Safety and Environment PotentialRisks, and continued to implement the "Six Checks" of safety inspection, i.e. checking awareness, management, education, behavior, hidden risks andmeasures. This enables the Company to carry out comprehensive management of production risks and lays the groundwork for safe production. In addition,Homa Appliances issued the Measures for Classi?ed Control of Safety Production Risks and revised the Control Procedures for Hazard Identi?cation, RiskAssessment and Risk Planning, so as to comprehensively identify and evaluate hazards and harmful factors. The Company conducts regular potential riskidenti?cation and testing to ensure the production safety of each factory.
7,202.7thousand RMBExpenses for safe production
Work-related deaths
Major safety accidents
safety inspections conducted by Homa Appliances
safety inspections conducted by Hefei Home AppliancesIn 2023
Framework for Identifying Potential Risks in Occupational Health, Safety and Environment of Homa Appliances
? Seasonal inspection? Major holiday inspection
? Evaluation inspectionfor compliance of EHSindicators and preventiveindicators? Internal audit of
ISO14001 and ISO45001management system
? Company level specialpotential risk identi?cation ofsafety and environment? Plant level special potentialrisk identi?cation of safetyand environment
Daily inspectionRegular inspection
Comprehensive safety and
environment inspection
Special inspection
? Daily inspection? Daily inspection in teams? Daily inspection on posts
The "Outstanding Talent Program" (Management Trainee Program) aims to nurture outstanding fresh graduatesand help these trainees achieve rapid growth at work. The Company has established a detailed training path for themanagement trainees of the one-year "Outstanding Talent Program" training program. As part of the program, oneHoma professional mentor is assigned to each trainee to enable them to adapt to Homa and immerse themselves well.The "Talent Development Program" backup team leader program is designed to train a group of backup juniormanagement talents who have a clear sense of self, with management and improvement skills, so as to developbackup talents for the Company. The Company has customized courses such as "Role Awareness and Execution"and "Interpersonal Leadership" for the participants of this program. At the same time, the program is carried outin combination with thematic practices, which e?ectively improves the vocational skills of backup team leadersthrough case discussions, scenario cases, group sharing, simulation exercises, etc.
Outstanding TalentProgram
Talent DevelopmentProgram
Talent Training Program of Homa Appliances
To continuously strengthen the internal training force and expandthe internal trainer team of the company, Homa Appliances initiatedthe "Spark Program" Professional Skills Workshop for InternalTrainers. The "Spark Program" aims to systematically improve theinstructional quality and curriculum development ability of internaltrainers while e?ectively promoting the career development andskill upgrading of employees. In 2023, Homa Appliances developed27 high-quality courses under the Program, which provided strongsupport for employees' personal growth.
To improve the leadership and educational capacities of managers,Homa Appliances initiated the "Manager Instruction Program"empowerment project. The Program is intended to promote theexchange of knowledge within the Company and mutual learningamong managers through the sharing of experiences and impartingknowledge. In 2023, the heads of the ?rst-level departments of theCompany actively participated in the Program, and a total of 51heads completed the instruction tasks, with an average instructiontime of 2 hours and a completion rate of 100%.
Homa Appliances: Spark Program- Professional Skills Workshop for Internal Trainers
Homa Appliances: Manager Instruction Program
2023 Spark Program- Professional Skills Workshop for Internal Trainers
Scene of training of 2023 Manager Instruction Program
The "Elite Program" (Training Program for Managers) is targeted at newly promoted junior managers. It is basedon solving practical business problems and trains talents for enterprise development through centralizedtraining, mentoring, forums, sharing sessions and on-the-job practices, so as to enable them to complete roletransformation and improve their management skills.Elite Program
2023 Homa Group Environmental, Social and Governance Report
Talent Cultivation and Joint Development
EmergencyResponse
Occupational HealthManagementPractices of emergency response serve as a vital backup for ensuring production safety. HomaGroup has formulated internal systems such as theEmergency Response Plan for Production SafetyAccidents and Emergency Preparedness and Response Proceduresto provide guidance for the actionsto be taken during emergency events. At the same time, Homa Group and its subsidiaries activelycarried out various emergency management drills in order to continuously improve the Company'semergency management capabilities.Homa Appliances has installed a ?re and chemical leakage alarm system in each factory area, which isequipped with automatic broadcasting, to improve the e?ciency of identi?cation in production safetyaccidents. In addition, to ensure that all employees can tackle dangerous situations, each factory isalso equipped with an automatic ?re sprinkler system and safety exhaust system, along with variousemergency ?re?ghting systems such as indoor and outdoor ?re hydrants, as well as emergency lights,emergency evacuation indicators, and "No Fire" and other ?re safety signs. In 2023, Homa Appliancescarried out 33 emergency drills including chemical leakage drills and ?re emergency evacuation drills.
Homa Group is committed to providing employees with holistic protection of their health and safety.Homa Group and its branches strictly comply with the management requirements of occupationaldisease prevention and control in the place where they operate, and provide su?cient personalprotective equipment for the personnel working in harmful workplaces with noise, dust, etc.Employees at risk of occupational disease exposure are all required to receive training on industrialhygiene and occupational disease management, con?ned space management, ventilation facilitymanagement, personal protective equipment management and other issues. They are also requiredto wear personal protective equipment such as ear plugs and dust masks while working.Homa Group arranges regular occupational health examinations for employees and implementsthe full process occupational disease monitoring and health management for on-board employees.Furthermore, the Company invites medical personnel to improve employees' medical knowledgefor common diseases on a regular basis. During the reporting period, Homa's employee healthexamination coverage rate reached 100%.
Safety culture provides the premise and foundation of safe practices during production. HomaGroup focuses on safety culture, and continuously strengthens the construction of the safetyculture atmosphere, arranging various activities to enhance the awareness of occupational healthand safety among employees.Hefei Home Appliances has formulated the internal training systems includingRegulations forOccupational Health and Safety Training ManagementandSystem for Occupational DiseasePrevention Publicity, Education and Training, to regulate the daily safety training of employees.Homa Appliances requires all employees to complete three levels of safety education prior tojoining the organization, along with a diverse range of occupational health and safety trainingonce they are onboarded. In 2023, Homa Appliances organized various safety training, coveringa wide range of categories such as emergency rescue, ?re safety, mechanical safety risk controlprinciples, etc., for publicity and guidance on the safety culture of employees in ?re protection,environment, production, etc.
In November 2023, Hefei Home Appliances conducteda comprehensive ?re emergency drill, simulating the?re of the power line of the distribution room. Thefactory employees and visitors were evacuated inan orderly manner in a short time. After the end ofthe drill, the safety o?cer led all the employees in asession on common emergency rescue skills and theuse of ?re extinguishers, to comprehensively improvethe emergency management ability of the Companyand the employees' awareness and abilities to copewith emergencies.
Hefei Home Appliances Conducted Comprehensive Fire Emergency Drill in the Park
Training on "1 +3 Safety Mechanism" of Hefei Home Appliances
Fire emergency drill of HefeiHome Appliances
Training on "1 +3 SafetyMechanism" of Hefei HomeAppliances
Safety Culture
68,325
sessions
attendancesoccupational health and safety training
participants covered
In 2023, Homa Group
%employee health examination coverage ratereached
During the reporting period, Homa Group
Care forEmployees
Homa Group consistently adheres to the "people-oriented" concept, continuously improves the workexperience and quality of life of employees and conducts employee care activities with regard tophysical and mental health and quality of life.To improve the work and life experience of employees, Homa Group has established a variety ofentertainment facilities such as the billiards room, dance hall and cinema in the employee dormitoryarea, to create a harmonious and healthy working environment. The Company also organizesbadminton competitions, basketball competitions, fun sports meetings and other activities every yearto enrich the life of employees during their spare time. For pregnant and lactating employees, theCompany has set up nursing rooms and pays close attention to their special needs.During traditional festivals, such as New Year's Day and Spring Festival, the Company will distributeholiday allowances and exquisite gifts to employees as a means to convey the Company's care andblessings. For employees encountering di?culties, Homa Group provides timely assistance andsupport to them in addition to organizing internal donation activities to help them solve problems andtide through times of di?culty.
Hefei Home Appliances organized afun card competition to promote thedevelopment of corporate cultureand enhance the teamwork ability ofemployees. The activity aims to strengthencommunication and cooperation withinthe enterprise and enrich employees'spare time life through the competition ofintelligence and strategy.
To enrich the lives of employees duringtheir spare time and promote physicaland mental health among them, HefeiHome Appliances organized a badmintoncompetition for all employees, which ranfrom November 1 to 3, 2023. This activityis not only helpful for strengtheningthe physique of employees, but alsoimproving the friendship and teamcohesion among colleagues.
Fun Card Game Competition in Hefei Home Appliances
Badminton Competition of Hefei Home Appliances
Fun Card Competition in Hefei HomeAppliances
Badminton Competition of HefeiHome Appliances
In the ?rst half of 2023, Hefei Home Appliancesimplemented the "1+3 Safety Mechanism", i.e. "themechanism of pre-shift disclosure and trainingmeeting on safety operation procedures, correctlywearing safety helmet and safety belt, and safetyo?cer going on duty", arranging safety productioninspection and training in advance, to preventmajor violations and safety accidents.
2023 Homa Group Environmental, Social and Governance Report
Talent Cultivation and Joint Development
SOCIETY
Harmonious Society,Shared VictoryHoma Group actively ful?lls its social responsibilities, makes constantimprovements to the supplier management mechanism it has established,and shares the results of technical innovation and practical experience withthe aim of promote the coordinated development of the industry, and tocontribute to building a harmonious society.
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Harmonious Society, Shared Victory2023 Homa Group Environmental, Social and Governance Report
Supply Chain ManagementCollaborative
Developmentof IndustryPartnersHoma Group adheres to the principle of "Honesty and trustworthiness, fairness and justice, equality and mutual bene?ts", attaches great importance tosupply chain management and supplier empowerment, and pays attention to responsible mineral management, and works hand in hand with supplychain enterprises and upstream and downstream industries, to build a harmonious industrial ecosystem and support the sustainable development ofpartners in the value chain.
To build a mutually bene?cial environment with shared value as well as deepen cooperation andexchanges in the industry, Homa Group, as a leader in the household appliances ?eld, activelyparticipates in industry exchanges, discussions on industry standards and promotes high-qualitydevelopment of the industry. During the reporting period, Homa Group participated in theformulation of 19 industry standards and 42 major industry exchange activities.In 2023, Hefei Home Appliances participated in development of several team and industrystandards, such as the Technical Requirements and Test Methods for Micro?ber and Debris FiltrationPerformance of Household and Similar Electric Washing Machines, Technical Requirements forSmart Preservation of Smart Refrigerators, Technical Requirements and Test Methods for Volatilesof Household and Similar Electrical Appliances, and Technical Speci?cation for Certi?cation ofCryogenic Capacity Features of Household Refrigerators.Homa Group establishes and improves the supplier management system, and improves the supplier access, audit and exit mechanism in order toimprove the e?ciency and stability of the supply chain. Meanwhile, it urges its supply chain to follow the same responsible values as the Company.Homa Group has established supplier admission regulations in accordance with applicable laws and regulations and in reference to RBA's Code ofConduct for the Electronics Industry. Under these regulations, suppliers must protect the rights and interests of their employees, ensure health andsafety, meet environmental responsibilities, maintain ethical behavior, and support management systems in multiple dimensions. Moreover, theyclearly de?ne the responsibilities of relevant parties with regard to safety and the environment, and they strictly regulate suppliers' social responsibilityactivities. Speci?cally, Hefei Home Appliances requires suppliers who meet the admission criteria to sign agreements including theSupplier Code ofConduct, quality agreements, social responsibility agreements, and integrity agreements to ensure that they ful?ll their obligations. Homa Applianceshas established strict supplier management systems, including theRelated Party Safety and Environmental Management System, which assessessuppliers' environmental, social, and governance practices. In order to establish a list of quali?ed suppliers, suppliers are audited based on theVendorEnvironmental Safety Questionnaire to determine their ability to control environmental pollution factors and their environmental performance.In terms of everyday supplier management, Homa Group and its various businesses formulate the annual supplier audit plan, and holds regular supplierquality review (QBR), to evaluate the supplier's business performance and development, which is included in the environmental, social and governanceaudits. Suppliers found to be in violation of any laws or regulations will be required to carry out correction or recti?cation. In the event that they failto take rectifying measures, Homa Group will either cease cooperation with the supplier or impose relevant penalties. Through these measures, theCompany ensures that products and services meet the requirements of sustainable development.To further improve the e?ciency of supplier management, Homa Appliances classi?es suppliers according to their in?uence on the Company's businessas key in?uential related parties, general in?uential related parties, and temporary non-in?uential related parties, for classi?ed management.
Supplier Classi?ed Management Measures of Homa Appliances
Key In?uential Related Parties
? Conduct publicity and educational activities, to help suppliers understand the Company's environmental policies and the relatedenvironmental management regulations.? Sign agreements to put forward Homa Appliances' environmental management requirements.? Verify and con?rm the performance of all suppliers annually or at random, forming theQuestionnaire for Key In?uential Related Parties.? As soon as a non-compliance is identi?ed, suppliers are required to propose corrective measures, and Homa Appliances supervises theimplementation of those measures.General In?uential Related Parties? Get to know their environmental status and obtain the corresponding information on its pollution generation and pollution control.? Promote Homa Appliances' environmental policies and, if necessary, make requests or recommendations for environmental management.
Temporary Non-in?uential Related Parties? Provide information on Homa Appliances' environmental policies, goals, and targets to the related parties upon request.Homa Group is determined to grow and develop further together with suppliers. Hence, it provides various training activities for suppliers andcommunicates with suppliers regularly, improving the risk resistant capacity of supply chain. During the reporting period, Homa Group conducted a totalof 101 supplier training activities.
Supplier Management
According to the Code of Conduct Responsible Business Alliance (RBA) and other requirements, Homa Group strictly refrains from purchasing orsupporting the use of con?ict minerals in areas a?ected by armed con?icts and ensure the legality of its procurement practices through exercising duediligence and other means. This will enable us to reduce the potential impact of con?ict minerals on its operations. The Company has developed theStandard for Con?ict Mineral Management, signed a con?ict mineral agreement with suppliers, and reviewed and evaluated the suppliers with whom ithas collaborated, to ensure that the suppliers are not involved in con?ict minerals, thereby creating a con?ict-free supply chain.
Responsible Mineral
On April 27, 2023, Appliance & Electronics World Expo (AWE), one of the top threeexhibition events in the world in the ?eld of household appliances and consumerelectronics, was held at Shanghai Pudong New International Expo Center. Hefei HomeAppliances participated in the AWE, during which its design concept and understandingof the integration of household appliances industry to achieve a high-quality lifestylewas shared with other members of the industry, demonstrating the world leadingintelligent technologies of Chinese enterprises.
In October 2023, Homa Appliances attended the 134th China Import and Export Fair(Canton Fair) and held the Autumn Launch Conference in Guangzhou InternationalMedia Port aimed at fostering communication and facilitating sharing sessions withindustry partners to drive win-win cooperation.
Hefei Home Appliances Attending Appliance & Electronics World Expo (AWE)
Homa Appliances Attending the 134th China Import and Export Fair
TCL washing machines on exhibition
Entry to the 134th China Import andExport Fair
TCL refrigerators on exhibition
Autumn Launch Conference of HomaAppliances
items
activitiesparticipated in the formulation of industrystandards
Industry events joined
In 2023, Homa Group
2023 Homa Group Environmental, Social and Governance Report
Harmonious Society, Shared Victory
Social PublicWelfare
Homa Group actively ful?lls its corporate social responsibility and supports the development ofsocial welfare undertakings while uniting social forces by organizing public welfare activities andencouraging employees to participate in voluntary services.With the mission and vision of "rewarding society with a passion for public welfare", Homa Groupis committed to promoting the concept of public welfare by actively ful?lling its corporate socialresponsibilities to demonstrate its support. During the reporting period, Homa Group carried out?ve community public welfare activities and donated a total of RMB 1.85 million.
Homa Group regards employee volunteer services as an important part of undertaking corporatesocial responsibility and enhancing the team building of employees. We regularly arrange for ourvolunteer teams to participate in public welfare activities, and constantly encourage employeesto give back to the community.Community Welfare
Employee VolunteerServices
"Zhongshan 10,000-Person Charity Parade Striving for a National Civilized Model City"is the longest-running 10,000-person charity event in China. In February 2023, HomaAppliances participated in the Zhongshan Charity Parade themed "Walking with Love inZhongshan" and made a donation of RMB 800,000.
To improve the overall capabilities of students, Hefei Home Appliances arranged formore than 20 employees to provide regular science education activities for primary andsecondary school students. In 2023, TCL Home Appliances (Hefei) Co., Ltd. received the"2023 Anhui Demonstration Unit for Science Popularization" award.
During the Chongyang Festival in September 2023, Homa Appliances organized an eventto honor the elderly in Jiangjun Community and Min'an Community in Zhongshan, toprovide company and warmth to the elderly in the community. As part of the event, HomaAppliances donated RMB 30,000 to each community.
In response to the ecological construction of Green Guangdong and guidance givento employees of the Company when it comes to establishing the concept of "Lucidwaters and lush mountains are invaluable assets", Homa Appliances arranged for youngvolunteers to plant trees along Yanjiang East Road on the morning of February 13, 2023.
Homa Appliances Participating in Zhongshan Charity Parade Event
Hefei Home Appliances Arranging Popular Science Education Activities for Students
Homa Appliances Arranging Chongyang Seniors' Day Activities in Community
Homa Appliances Organizing Tree Planting Activity for Youth Volunteers2023 Zhongshan Charity Parade
Science education activities for primary school students
Homa Appliances making donation to Jiangjun Community
Tree planting event
1.85
activities
activities
million
hourscommunity activities organized
organized employee volunteer service activities
donation
total volunteer timeDuring the reporting period, Homa Group
In 2023, Homa Group
2023 Homa Group Environmental, Social and Governance Report
Harmonious Society, Shared Victory
GOVERNANCE
Robust Governancefor Solid FoundationRobust corporate governance is the cornerstone for sustainabledevelopment of enterprises. Homa Group adheres to the values of honesty,transparency and respect, with active implementation of the requirementsof party building and the establishment of a compliant internal control andrisk management system. It takes due responsibility to the greatest extentpossible at all times and bases morality as the guide for e?ective protectionof the rights and interests of all stakeholders while promoting healthydevelopment of the Company in the long run.
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Robust Governance for Solid Foundation2023 Homa Group Environmental, Social and Governance Report
Party Building LeadershipHoma Group attaches great importance to the leadership role of party building in the development of the Company. The e?ective development ofparty building can enhance the organizational power of grassroots Party organizations and the execution of party member teams, thus providing strongsupport for the Company's development and social progress. The Company focuses on laying a solid foundation and strengthening the existing basice?orts of party building, particularly with a strong focus on implementing the party building system, signi?cantly improve the standardization level ofparty building work in the General Party Branch. At the same time, the Party branch conscientiously implements the decision-making arrangements ofthe CPC Central Committee and the superior party committees, with constant optimization of the development strategy and decision-making system ofthe Company.
During the reporting period, Homa Group organized a total of 27 party building activities, includingparty branch general meeting, life meetings organized by the Party branch, democratic evaluation ofparty members by the Party branch. In 2023, with the goal of achieving the institutionalization andstandardization of Party branch work, we took the lead and continued to strive for the establishmentof an activity room for outstanding party members, improve relevant work systems, and implementthe construction of Party branches.
Homa Group upholds the overall leadership of the CPC at all times and thoroughly implements the spirit of the 20th CPC National Congress. In thedaily operation and management of the Company, we always take the party building e?orts as the guide and the CPC policies and regulations asthe code of conduct as we strive to create a clean and upright environment for development. In 2023, the General Party Branch of Guangdong HomaAppliances Co., Ltd. joined hands with the CPC Committee of Zhongshan Ecological Environment Bureau and the CPC Committee of Nantou FireRescue Brigade for party building. Together, they worked hard with the goal of building a new pattern of party building featuring "resource sharing,complementary advantages, mutual promotion and common improvement".
personsNumber of Party members
personsNumber of new Party members2023年
sessionsParty building activitiesDuring the reporting period, Homa Group
To thoroughly incorporate the requirements of the 20th CPC National Congress and fully implement the general requirements of Partybuilding in the new era, the ecological environment system of Zhongshan convened a mobilization meeting on March 9, 2023 to promote thehigh-quality development of Zhongshan through style revolution. At the meeting, the General Party Branch of Homa Appliances signed anagreement on joint party building with the CPC Committee of Zhongshan Ecological Environment Bureau. The cooperation, which takes theCPC political construction as the core and innovating the carrier of party building as the means, aims at further optimization of the businessenvironment of enterprises through party building pairing. At the same time, it adopts a comprehensive approach in helping enterprises todevelop with high quality.
To improve the relationship between enterprises and the Fire Rescue Brigade while promoting civilized construction, the CPC Committee ofNantou Fire Rescue Brigade and the General Party Branch of Homa Appliances signed the joint party building agreement on March 9, basedon the principles of giving full play to respective advantages, common development and mutual assistance, so as to gather the joint e?ortsfor party building, promote the complementary advantages of party building, and strive to achieve the compounding e?ect of "1+1>2".
Joint Party Building between Homa Appliances and Party Committee of Zhongshan Ecological Environment Bureau
Joint Party Building between Homa Appliances and the CPC Committee of Nantou Fire Rescue Brigade
Zhongshan mobilization meeting for high-quality development
Signing ceremony of joint party building between the Company and ?re rescue brigade
On December 22, 2023, the General Party Branchof Hefei Home Appliances organized partymembers in Hefei to study "Example 8" jointlyproduced by the Organization Department ofthe CPC Central Committee, the O?ce of theLeading Group for Ideological Education inSocialism with Chinese characteristics and ChinaMedia Group, with a total of 20 participants.
On July 4, 2023, the General Party Branch ofHoma Appliances organized the Party DayActivities centered on the theme of "RecallingInitial Intention and Learning from Models"to commemorate the 102nd anniversary ofthe founding of the CPC. The activity revolvedaround carrying forward the requirements ofthe 20th CPC National Congress and reviewedthe Party building work in 2022, and madearrangements for Party building in 2023.
"Example 8" Special Learning Activities of Hefei Home Appliances
Party Day Activities of Homa Appliances
"Example 8" Special Learning Activities of Hefei Home Appliances
Homa Appliances arranged the Party Day activities with the theme of "recalling theoriginal intention and learning from models"
General Party Branch of Homa Appliances was awarded"Paired Joint Party Building Unit"
2023 Homa Group Environmental, Social and Governance Report
Robust Governance for Solid Foundation
Governance StructureLegal Compliance and Risk ControlIn strict accordance with theCompany Law of the People's Republic of China, Securities Law of the People's Republic of China, Code of Governance forListed Companies, Rules Governing the Listing of Shares on Shenzhen Stock Exchangeand other relevant requirements of the China Securities RegulatoryCommission, Homa Group regards compliance with the laws and regulations as the primary principle of governance, and constantly improves the designof governance structure and system regulations in order to ensure the legality, compliance and robustness of business activities of the Company.
Compliance governance is the cornerstone for the robust operation of the Company. In accordance with the related laws and regulations and therelevant provisions of theArticles of Association, as well as the actual condition of the Company, Homa Group has formulated theInternal Audit Systemof Guangdong Homa Group Co., Ltd., Detailed Rules of the Audit Committee under the Board of Directorsand other related systems with the objective ofcomprehensively regulations of the internal control of the Company.
Homa Group places great emphasis and attention on the protection of investors' rights and interests, with constant improvements made to thetransparency and quality of information disclosure and publicly disclosures of the governance structure, internal management and risk control of theCompany to shareholders, investors and the public. These disclosures are performed through regular reports, announcements, and annual reports, soas to enhance investors' trust and market transparency. In 2023, the Company held four performance brie?ngs, targeted surveys and other activities, toactively safeguard the rights and interests of small and medium investors.
Protection of Investors' Rights and Interests
Homa Group strictly regulates information disclosure and continuously improves the management level and quality of the Company's information disclosuresystems, so to protect the legitimate rights and interests of investors. Based onthe Company Law of the People's Republic of China, Measures for theAdministration of Information Disclosure of Listed Companies, Self-Regulatory Guidelines No.5 for Companies Listed on Shenzhen Stock Exchange-Managementof Information Disclosure A?airs, Rules Governing the Listing of Shares on Shenzhen Stock Exchangeand other laws and regulations, theArticles of Association
of the Company, as well as the actual condition of the Company, the Company has formulated theManagement System for Information Disclosuretocomprehensively regulate the subjects of information disclosure. In addition, the Company has established fair, timely and accurate communication relationswith investors through multiple channels such as e-mail, o?cial website, investor Q&A hotline, interactive platforms for investor relations, etc.
Regulation of Information Disclosure
Responsible for the sound establishment and e?ective implementation of internal regulations, approving internalcontrol evaluation reports, identifying signi?cant internal control shortcomings, and undertaking ultimateresponsibility for internal control evaluations.Board of Directors
Responsible for supervising the establishment and implementation of internal control and the internal controlevaluation system by the Board of Directors.Board of Supervisors
Report to and function under the direct management of the Board of Directors. The Audit Committee exercisesand assumes the responsibility of supervising and inspecting the implementation of the internal control system,evaluating the e?ectiveness of internal controls and making suggestions for improving internal controls andcorrecting errors and shortcomings through the internal audit organization.Audit Committee ofthe Board of Directors
Report to the Board of Directors and its Audit Committee.Internal AuditOrganization
Coordinate and resolve major issues arising in the process of internal control evaluation; stay informed of the work
arrangements, work progress, and assessment reports of internal control evaluation; promptly obtain the results of
daily internal control risk monitoring; and organize the implementation of e?orts to rectify shortcomings.Management
Assist in internal control evaluation and audit, provide opinions and suggestions on the design and operational
defects that have been identi?ed, and implement actions for recti?cation of shortcomings.Functionaldepartments
Homa Group regards the long-term, healthy development of the Company as an important governance goal, and has always maintained a clear corporategovernance structure and operation according to relevant laws and regulations. The Company has formulated rules and regulations such asRules of Procedurefor the Board of Directors, Work System for Independent Directors, Rules of Procedure for the Board of Supervisors, etc., to ensure that the Company's operationmeets the requirements of the laws and regulations, optimally serve the strategic objectives of the Company, and poses minimal operational risks.The Company is committed to building a scienti?c and e?cient internal management system and has since established the corporate governance structureconsisting of the general meeting of shareholders, board of directors, board of supervisors, and the senior management. The Board of Directors consists of fourspecial committees, namely, the Strategy Committee, the Nomination Committee, the Remuneration and Appraisal Committee and the Audit Committee, whichare responsible for ensuring the robust operation and sustainable development of the Company. The Company's Board of Directors currently comprises sevendirectors, including three independent directors. The Board of Supervisors currently has one employee representative.In 2023, Homa Group convened three General Meetings of Shareholders, eight meetings of Board of Directors and six meetings of Board of Supervisors. Allmeetings have been convened and voting procedures have been executed in accordance with relevant laws and regulations and the Company's Articles ofAssociation. This provides strong support for the robust operation and long-term development of the Company.
Corporate Governance Structure
Strategy Committee
General Meeting of Shareholders
Nomination CommitteeRemuneration and Appraisal
CommitteeAudit Committee
Board of DirectorsBoard of SupervisorsGeneral ManagerBoard of Directors' O?ceInternal Audit and InternalControl Department
Securities DepartmentHefei Home AppliancesBusiness Department
Homa Appliances BusinessDepartment
General Manager O?ceFinancial ManagementDepartment
Administration and HRDepartment
Legal ComplianceDepartment
2023 Homa Group Environmental, Social and Governance Report
Robust Governance for Solid Foundation
Anti-corruption and Business Ethics
Information Security
Homa Group has always adhered closely to the principles of equality, mutual bene?t, and win-win cooperation. It continuously strengthens internalintegrity management and has formulated the Integrity Management Code to regulate business operations and eliminate violations of business ethicssuch as commercial bribery and unfair competition.Homa has always maintained a "zero tolerance" attitude towards corruption. The Company strictly abides by the United Nations Convention againstCorruption and complies with the national laws and regulations related to anti-corruption while consistently improving its internal anti-corruption systemto prevent the occurrence of corruption. At the same time, we have comprehensively strengthened our integrity culture and training to create an honestand clean atmosphere in the Company. The Company was not involved in any corruption litigation cases in 2023.As part of its employee complaint and whistleblowing policy, Hefei Home Appliances provides its employees with an OA system, email, and other channelsthrough which they can report complaints and whistleblowing, establishing a 24-hour response time for reports. Each reported lead is investigated andevidence collected by special project teams, which publish the results of their investigations. Additionally, Hefei Home Appliances regularly reports pastcorruption cases on its intranet. As of the reporting period, Hefei Home Appliances conducted four anti-corruption and business ethics training sessionsfor 132 employees.Homa Appliances has established an anti-corruption whistleblowing system. We encourage employees, business partners and other personnel to providetip-o?s in their real names via various channels including mailing of letters, personal visits, telephone call, WeChat or e-mail, providing audio-visualmaterials, etc. Cash rewards will be granted once the tip-o? is veri?ed after investigation. In the process of investigation of reports, we strictly adhere tothe principle of "absolute con?dentiality" to ensure the protection of whistleblowers. Furthermore, Homa Appliances has formulated the AccountabilityManagement Regulations, which clearly de?nes the "red line" of operation and management, strictly prohibits abuse of power for personal gain, fraudand other violations, and establishes corresponding punishment mechanisms in order to e?ectively promote the construction of internal anti-corruptionand business ethics management systems.We are committed to creating an open, equal and fair competitive environment. In response to the call for a policy to resolutely combat monopoly andunfair competition, we have continuously strengthened our antitrust and unfair competition management. The Company has exercised regulationof unfair competition in its compliance management system and reached a consensus on the relevant terms in the agreement with the partners,strictly adhere to the bottom line of business compliance. Hefei Home Appliances operates according to principles that support the Company'ssustainable development and its shareholders' interests. This ensures the independence of company personnel, the integrity of assets, and the ?nancialindependence of the Company by preventing industry competition between actual controllers and associated parties.
Homa has continuously improved its internal information security management system to comprehensively ensure the data privacy of employees andcustomers.In accordance with relevant laws and regulations, Hefei Home Appliances has formulated system documents such as Information System Security Planand Information Security Management Police and established the information security management system for the entire process of patrol inspection,backup, early warning, training and audit, all with the objective of regulating the internal information security management of the Company. In 2023,Hefei Home Appliances increased the ?rewall isolation between the production network and the o?ce network, which regularly detects network securityissues through probes and improves the company's information security management capacity.To ensure comprehensive safeguarding of the Company's information security, Homa Appliances has established the information security team andappointed an information security commissioner, who are responsible for coordination, planning, audit and speci?c implementation of informationsecurity measures, and regularly invites third-party entities to conduct annual information security inspections in order to discover information securityvulnerabilities as early as possible. In 2023, Homa Appliances launched the network access system, optimized the data backup mechanism, andestablished an internal data sharing management system to ensure the cybersecurity and information security of the Company.On this basis, Homa Group and its various businesses focus on the construction of a culture of information security. In 2023, the company concluded atotal of four information security training sessions for over 600 people, strengthening the awareness of information security among its employees.
To enhance the compliance awareness of the entire Group and build the awareness of strictly adherence to the compliance bottom line within theCompany, Homa has actively carried out compliance-related training and cultural construction activities aimed at creating the good complianceculture atmosphere.
To increase the capacity to respond to major risks, Homa Group classi?es major risks and emergencies into various categories and conducts riskassessments for major risks and emergencies to identify potential events that could impact normal operations or market stability. In the aspect ofearly warnings and emergency handling, Hefei Home Appliances has established an emergency response team, which is responsible for studying andproposing plans in the event of major risks and emergencies. At the same time, the team implements various emergency measures according to thedecisions of relevant government authorities while handling the emergencies based on the actual situation. The department heads will learn moreabout emergency response, track and analyze the incident in real time, report the information to the emergency response task force of the Companyin a timely manner, and provide professional analysis opinions.
In January 2023, Hefei Home Appliances organized a compliance training activity, during which the general manager of the Compliance andLegal Department of TCL Industrial was invited to share some insights on the compliance and legal issues in the operation of white appliancebusiness, give a comprehensive introduction on export compliance, intellectual property rights, foreign-related OEM contracts and other topics.He also provided suggestions on management. The training activities not only systematically improve employees' knowledge and awarenesson compliance , but also e?ectively promote the management team to improve compliant management strategies of the Company.
Compliance Training of Hefei Home Appliances
? The departments involved in the incident should report
the incident to the Emergency Handling Task Force within30 minutes, and the Emergency Handling Task Force willreport it to the relevant departments.? The departments involved should report the details in
writing to the Emergency Handling Task Force within threehours after occurrence of the incident, after which theEmergency Handling Task Force will submit the writtenreport to the relevant departments in a timely manner.? The Emergency Handling Task Force shall sort out thewritten materials and report to the Board of Directorsand the Board of Supervisors of the Company in a timelymanner.
Classi?cation of Major Risks and Emergencies of Hefei
Home AppliancesStructure of Emergency Handling Task Force of
Hefei Home Appliances
Classi?cation typeSolutions
Team leaderDeputy teamleaderTeammembers
Chairman of
the BoardGeneral manager,secretary of Board of
DirectorsDepartment heads
Extremely seriousincidentSerious incidentMajor incidentMinor incident
Email for tip-o?CEO@homa.cn
Tip-o? hotline0760-23128959
Mail addressHoma Human Resources Department, 54 Dongfu North Road, Nantou Town,Zhongshan, Guangdong, ChinaHoma Appliances Whistleblowing Channel
2023 Homa Group Environmental, Social and Governance Report
Robust Governance for Solid Foundation
Outlook for the Future2023 is a year ?lled with profound changes in the global smart home appliance industry, but also onefor Homa Group to forge ahead and create brilliant achievements. Looking forward, the upgradingtrend of intelligent, high-end and healthy refrigerators and washing machines is obvious, andinnovative products will be the driving force of the growth of the industry. In the international market,with the rapid development of emerging economies, the import demand for refrigerators and washingmachines is increasing constantly, and there is still a large room for growth of China's export marketof refrigerators and washing machines. Homa Group will continue to strengthen its faith, embracedi?culties with courage and zeal, and constantly seek innovation and breakthroughs.As for green commitment, we will continue to promote green and low-carbon development andintegrate the concept of environmental protection into every detail of business operations. HomaGroup will strive to develop a green production system and make continuous improvementsto the environmental management system. Starting with key issues such as management ofenergy, pollution, wastes and water resources, we make concrete e?orts to reduce the impact ofour production process on the environment. At the same time, we will vigorously promote greenproduct design, make innovations based on the original equipment we have, and create reliable andenvironmentally friendly products with a sustainable attitude.In the practice of social responsibility, we will continue to play a positive role as an enterprise andcontribute Homa Power to society. We will continue to improve the protection of the rights andinterests of employees, provide a comprehensive talent training system, and create a diverse, inclusive,and equal working environment. On the other hand, while adhering to the values of "customer?rst, team-oriented, e?cient and reliable", we will continue to provide consumers with high-qualityproducts and conscientious customer service, thus taking responsibility for every consumer. For socialwelfare, we will also strengthen social responsibility, actively participate in public welfare activities,pay attention to vulnerable groups, and make more contributions to society.For scienti?c governance, we will constantly improve the corporate governance structure to ensurethe robust operation of the Company. In the future, Homa Group will strengthen implementationand supervision of ESG policies within the Company and optimize governance for sustainabledevelopment. We will formulate strict internal control procedures and establish a comprehensiverisk management framework to identify, evaluate and manage potential risks. We will also continueto strengthen information disclosure and maintain good communication and interaction withstakeholders.Considering the trends of product structure adjustment, dynamic reshaping of the competitionpattern, etc. in the global smart home appliance industry, Homa Group will continue to becomea global leader in smart household appliances. In order to advance its globalization strategy, theCompany is focusing on smart home appliances powered by arti?cial intelligence. The Companystrives to achieve comprehensive interconnection, collaborative operation, and self-learningoptimization for household appliances through technological innovation, o?ering users innovativetechnological experiences and healthy lifestyles, and enabling the industry to develop further throughtechnology.
2023 Homa Group Environmental, Social and Governance Report
Outlook for the Future
Key Performance Table
Environmental Performance
Key Performance IndicatorsUnit2023 Data
EnvironmentManagement
Investment on Environment Protection10,000 RMB312.80Penalties incurred by the Company for violations of environment-relatedlaws and regulations
Session0Fine incurred by the Company for violations of environment-related laws andregulations
RMB0Number of environment-related lawsuits resulting from violations ofenvironment-related regulations
Session0Number of employee training on environment protection Session14Number of employees' participation in environment protection training Attendance10,024GreenhouseGasesEmissionsManagement
Total greenhouse gas emissions
Tons of carbon dioxide
equivalent
169,233.87Scope 1
Tons of carbon dioxide
equivalent
31,842.02Scope 2
Tons of carbon dioxide
equivalent
137,391.85Emission strength of greenhouse gastCO2e/Million output value11.15
EnergyManagement
Total energy consumptionTons of standard coal32,189Total consumption of non-renewable energyTons of standard coal29,781Total consumption of renewable energyTons of standard coal2,407Diesel usageLiter175,770Gasoline usageLiter16,620Natural gas consumptionCubic meter807,815Total power consumptionkWh260,506,553
Consumption of renewable electricitykWh19,590,260Consumption of non-renewable electricitykWh240,916,293PackagingMaterials Usage
Total amount of used packaging materialsTon65,175Amount of used paper packaging materialsTon49,179Amount of used plastic packaging materials -EPSTon4,126Water ResourceUsage
Total water consumptionTon1,484,629Total wastewater dischargeTon288,360Pollutionand WasteManagement
Total emissions of hazardous wastesTon15,781.48Total discharge of hazardous wastesTon215.17Total discharge of non-hazardous wastesTon15,566.31Total recycling of wastesTon4,687.01Total recycling of wastesTon4,687.01Social Performance
Key Performance IndicatorsUnit2023 Data
Employment
Total number of employeesPerson12,684Number of male employeesPerson8,806Number of female employeesPerson3,878Number of employees aged under 30Person6,365Number of employees aged 30 to 50Person5,734Number of employees aged above 50Person585
Social PerformanceDiversity and equalopportunities
Number of employees from ethnic minoritiesPerson1,938Number of employees with disabilitiesPerson135Protection of employees'rights and interests
Labor contract signing rate%100
Employee Training
Total sessions of employee trainingSession3,150Average hours of training for male employeesHour13.15Average hours of training for female employeesHour10.24Total training attendance by male employeesAttendance79,303Total training attendance by female employeesAttendance26,609Total training hours of training for male employeesHour115,772Total training hours of training for female employeesHour39,727
Occupational Healthand Safety
Number of work-related deathsPerson0Number of work-related injuriesSession74Total number of days lost due to work-related injuriesDay1,356Expenses for safe production10,000 RMB720.27Number of major safety accidentsSession0Number of safety inspectionsSession358Number of employees' occupational diseasesSession0Number of occupational health and safety training sessions conductedSession783Number of persons covered by occupational health and safety trainingAttendance68,325R&D and Innovation
R&D investmentRMB542,053,043Number of innovative study programsNo.57Total number of R&D and technical employeesPerson1,108
R&D and Innovation
R&D investment10,000 RMB54,205Number of innovative research programsItem57Total number of R&D and technical employeesPerson1,108Cumulative number of patents grantedItem2,055Annual number of patents grantedItem330Expenses for clean technology-related R&D
10,000 RMB1,107.02Turnover of green products
10,000 RMB1,542.25Number of participation of industry standardsItem19Number of participation of industry exchange activitiesSession42Customer ServiceNumber of customer complaintsSession7Suppliers
Total number of suppliersNo.1,562Number of suppliers in Chinese mainlandNo.1,530Number of suppliers in other regionsNo.32Number of supplier training activitiesSession101Social welfare
Monetary donation10,000 RMB185Number of public welfare activitiesSession5Number of employee volunteer activitiesSession25Number of volunteersAttendance140Volunteer hoursHour210Party Building
Number of Party membersPerson190Number of new Party membersPerson10Number of party building activitiesSession27
Homa Refrigerator has not collected the statistic data yet, the total data for Expenses for clean technology-related R&D only includes data from HefeiHome Appliances.
Homa Refrigerator has not collected the statistic data yet, the total data for Turnover of green products only includes data from Hefei Home Appliances.
Without speci?cation, the data in the table refers to adjusted (i.e. including Hefei Home Appliances) data.
2023 Homa Group Environmental, Social and Governance Report
Appendix
Reporting IndexGlobal Reporting Initiative (GRI) StandardsHoma has reported the information referenced in this GRI internal index with reference to the GRI standards for the period January 1, 2023 toDecember 31, 2023.
GRI StandardsDisclosureCorresponding Chapter
GRI 205:
Anti-corruption2016
205-1 Operations assessed for risks related to corruptionRobust Governance for Solid Foundation205-2 Communication and training about anti-corruption policies andprocedures
Robust Governance for Solid FoundationGRI 206:
Anti-competitiveBehavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopolypractices
Robust Governance for Solid Foundation
GRI 301:
Materials 2016
301-1 Materials used by weight or volume
Putting Environment First to Build a Green Future
Key Performance Table301-2 Recycled input materials usedKey Performance Table301-3 Reclaimed products and their packaging materials
Putting Environment First to Build a Green Future
Key Performance TableGRI 302:
Energy 2016
302-1 Energy consumption within the organization
Putting Environment First to Build a Green Future
Key Performance Table302-2 Energy consumption outside of the organizationKey Performance Table302-4 Reduction of energy consumptionPutting Environment First to Build a Green Future302-5 Reductions in energy requirements of products and servicesPutting Environment First to Build a Green Future
GRI 303:
Water andE?uents 2018
303-1 Interactions with water as a shared resourcePutting Environment First to Build a Green Future303-2 Management of water dischargerelated impactsPutting Environment First to Build a Green Future303-3 Water withdrawalPutting Environment First to Build a Green Future303-4 Water discharge
Putting Environment First to Build a Green Future
Key Performance Table303-5 Water consumption
Putting Environment First to Build a Green Future
Key Performance Table
GRI 305:
Emissions 2016
305-1 Direct (Scope 1) GHG emissions
Putting Environment First to Build a Green Future
Key Performance Table305-2 Energy indirect (Scope 2) GHG emissions
Putting Environment First to Build a Green Future
Key Performance Table305-4 GHG emissions intensity
Putting Environment First to Build a Green Future
Key Performance Table305-5 Reduction of GHG emissionsPutting Environment First to Build a Green Future305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other signi?cant airemissions
Putting Environment First to Build a Green Future
Key Performance Table
GRI 306:
Waste 2020
306-1 Waste generation and signi?cant waste-related impactsPutting Environment First to Build a Green Future306-2 Management of signi?cant wasterelated impactsPutting Environment First to Build a Green Future306-3 Waste generated
Putting Environment First to Build a Green Future
Key Performance Table306-4 Waste diverted from disposal
Putting Environment First to Build a Green Future
Key Performance Table306-5 Waste directed to disposal
Putting Environment First to Build a Green Future
Key Performance TableGRI 308: SupplierEnvironmentalAssessment 2016
308-1 New suppliers that were screened using environmental criteriaHarmonious Society, Shared Victory308-2 Negative environmental impacts in the supply chain and actionstaken
Harmonious Society, Shared Victory
GRI StandardsDisclosureCorresponding Chapter
GRI 2:
GeneralDisclosures 2021
2-1 Organizational details
About the ReportAbout Homa Group2-2 Entities included in the organization's sustainability reportingAbout the Report2-3 Reporting period, frequency and contact pointAbout the Report2-6 Activities, value chain and other business relationshipsAbout Homa Group2-7 EmployeesTalent Cultivation and Joint Development2-9 Governance structure and compositionRobust Governance for Solid Foundation2-10 Nomination and selection of the highest governance bodyRobust Governance for Solid Foundation2-12 Role of the highest governance body in overseeing the management ofimpacts
Robust Governance for Solid Foundation2-13 Delegation of responsibility for managing impactsRobust Governance for Solid Foundation2-14 Role of the highest governance body in sustainability reportingSustainable Development Governance2-16 Communication of critical concernsSustainable Development Governance2-17 Collective knowledge of the highest governance bodySustainable Development Governance2-19 Remuneration policiesRobust Governance for Solid Foundation2-22 Statement on sustainable development strategySustainable Development Governance2-23 Policy commitments
Talent Cultivation and Joint Development
Harmonious Society, Shared Victory
Robust Governance for Solid Foundation2-27 Compliance with laws and regulationsRobust Governance for Solid Foundation2-28 Membership associationsAbout Homa Group2-29 Approach to stakeholder engagementSustainable Development GovernanceGRI 3:
Material Topics2021
3-1 Process to determine material topicsSustainable Development Governance3-2 List of material topicsSustainable Development Governance3-3 Management of material topicsSustainable Development GovernanceGRI 201:
EconomicPerformance 2016
201-1 Direct economic value generated and distributed
About Homa Group
Key Performance Table201-2 Financial implications and other risks and opportunities due toclimate change
Sustainable Development GovernanceGRI 203:
Indirect EconomicImpacts 2016
203-1 Infrastructure investments and services supported
Topic Story
Safety Assurance and Product Innovation
Harmonious Society, Shared Victory203-2 Signi?cant indirect economic impactsSafety Assurance and Product Innovation
2023 Homa Group Environmental, Social and Governance Report
Appendix
HKEX Environmental, Social and Governance Reporting Guide
DisclosureCorresponding Chapter
A. Environmental
A1: Emissions
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerrelating to air and greenhouse gas emissions, discharges into water and land, and generation ofhazardous and non-hazardous waste.Note:
? Air emissions include NOx, SOx, and other pollutants regulated under national laws andregulations.? Greenhouse gases include carbon dioxide, methane, nitrous oxide, hydro?uorocarbons,per?uorocarbons and sulphur hexa?uoride.? Hazardous wastes are those de?ned by national regulations.
Putting Environment First toBuild a Green Future
A1.1 The types of emissions and respective emissions data.
Putting Environment First toBuild a Green FutureKey Performance TableA1.2 Direct (Scope 1) and energy indirect (Scope 2) greenhouse gas emissions (in tonnes) and,where appropriate, intensity (e.g. per unit of production volume, per facility).
Putting Environment First toBuild a Green FutureKey Performance TableA1.3 Total hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. per unit ofproduction volume, per facility).
Putting Environment First toBuild a Green FutureKey Performance TableA1.4 Total non-hazardous waste produced (in tonnes) and, where appropriate, intensity (e.g. perunit of production volume, per facility).
Putting Environment First toBuild a Green FutureKey Performance TableA1.5 Description of emissions target(s) set and steps taken to achieve them.
Putting Environment First toBuild a Green FutureA1.6 Description of how hazardous and non-hazardous wastes are handled, and a description ofreduction target(s) set and steps taken to achieve them.
Putting Environment First toBuild a Green Future
A2: Use ofResources
General DisclosurePolicies on the e?cient use of resources, including energy, water and other raw materials.
Note: Resources may be used in production, in storage, transportation, in buildings, electronicequipment, etc.
Putting Environment First toBuild a Green FutureA2.1 Direct and/or indirect energy consumption by type (e.g. electricity, gas or oil) in total (kWh in'000s) and intensity (e.g. per unit of production volume, per facility).
Putting Environment First toBuild a Green FutureKey Performance TableA2.2 Water consumption in total and intensity (e.g. per unit of production volume, per facility).
Putting Environment First toBuild a Green FutureKey Performance TableA2.3 Description of energy use e?ciency target(s) set and steps taken to achieve them.
Putting Environment First toBuild a Green FutureA2.4 Description of whether there is any issue in sourcing water that is ?t for purpose, watere?ciency target(s) set and steps taken to achieve them.
Putting Environment First toBuild a Green FutureA2.5 Total packaging material used for ?nished products (in tonnes) and, if applicable, withreference to per unit produced.
Putting Environment First toBuild a Green FutureKey Performance TableA3: TheEnvironmentand NaturalResources
General DisclosurePolicies on minimising the issuer's signi?cant impacts on the environment and natural resources.
Putting Environment First toBuild a Green FutureA3.1 Description of the signi?cant impacts of activities on the environment and natural resourcesand the actions taken to manage them.
Putting Environment First toBuild a Green Future
GRI StandardsDisclosureCorresponding Chapter
GRI 401: Employment2016
401-1 New employee hires and employee turnover
Talent Cultivation and Joint DevelopmentKey Performance Table401-2 Bene?ts provided to full-time employees that are not provided totemporary or parttime employees
Talent Cultivation and Joint Development
GRI 403:
Occupational Healthand Safety2018
403-1 Occupational health and safety management systemTalent Cultivation and Joint Development403-2 Hazard identi?cation, riskassessment, and incident investigation
Talent Cultivation and Joint Development403-3 Occupational health servicesTalent Cultivation and Joint Development403-4 Worker participation, consultation, and communication onoccupational health and safety
Talent Cultivation and Joint Development403-5 Worker training on occupational health and safety
Talent Cultivation and Joint Development
Key Performance Table403-6 Promotion of worker healthTalent Cultivation and Joint Development403-7 Prevention and mitigation ofoccupational health and safety impacts directly linked bybusiness relationships
Talent Cultivation and Joint Development403-8 Workers covered by an occupational health and safety managementsystem
Talent Cultivation and Joint Development
Key Performance Table403-9 Work-related injuries
Talent Cultivation and Joint Development
Key Performance Table403-10 Work-related ill healthTalent Cultivation and Joint DevelopmentGRI 404:
Training and Education2016
404-1 Average hours of training per year per employee
Talent Cultivation and Joint Development
Key Performance Table404-2 Programs for upgrading employee skills and transition assistanceprograms
Talent Cultivation and Joint Development404-3 Percentage of employees receiving regular performance and careerdevelopment reviews
Talent Cultivation and Joint DevelopmentGRI 405: Diversity andEqual Opportunity 2016
405-1 Diversity of governance bodies and employeesTalent Cultivation and Joint DevelopmentGRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions takenTalent Cultivation and Joint DevelopmentGRI 408: Child Labor2016
408-1 Operations and suppliers at
signi?cant risk for incidents of child labor
Talent Cultivation and Joint DevelopmentHarmonious Society, Shared VictoryGRI 409: Forced orCompulsory Labor2016
409-1 Operations and suppliers at
signi?cant risk for incidents of forced or compulsory labor
Talent Cultivation and Joint DevelopmentHarmonious Society, Shared VictoryGRI 413: LocalCommunities 2016
413-1 Operations with local community engagement, impact assessments,
and development
programs
Harmonious Society, Shared VictoryGRI 414: Supplier SocialAssessment2016
414-1 New suppliers that were screened using social criteriaHarmonious Society, Shared Victory414-2 Negative social impacts in the supply chain and actions takenHarmonious Society, Shared VictoryGRI 416: CustomerHealth and Safety2016
416-1 Assessment of the health and safety impacts of product and servicecategories
Safety Assurance and Product InnovationGRI 417: Marketing andLabeling 2016
417-1 Requirements for product and service information and labelingSafety Assurance and Product InnovationGRI 418: CustomerPrivacy 2016
418-1 Substantiated complaints concerning breaches of customer privacy
and losses of customer data
Safety Assurance and Product InnovationRobust Governance for Solid Foundation
2023 Homa Group Environmental, Social and Governance Report
Appendix
DisclosureCorresponding Chapter
A4: ClimateChange
General DisclosurePolicies on identi?cation and mitigation of signi?cant climate-related issues which have impacted,and those which may impact, the issuer.
Putting Environment First toBuild a Green FutureA4.1 Description of the signi?cant climate-related issues which have impacted, and those whichmay impact, the issuer, and the actions taken to manage them.
Putting Environment First toBuild a Green FutureSustainable DevelopmentGovernance
B. SocialEmployment and Labour Practices
B1: Employment
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerrelating to compensation and dismissal, recruitment and promotion, working hours, rest periods,equal opportunity, diversity, anti-discrimination, and other bene?ts and welfare.
Talent Cultivation and JointDevelopmentB1.1 Total workforce by gender, employment type (for example, full- or part-time), age group andgeographical region.
Talent Cultivation and JointDevelopmentKey Performance Table
B2: Health andSafety
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerrelating to providing a safe working environment and protecting employees from occupationalhazards.
Talent Cultivation and JointDevelopmentB2.1 Number and rate of work-related fatalities occurred in each of the past three years includingthe reporting year.
Talent Cultivation and JointDevelopmentKey Performance TableB2.2 Lost days due to work injury.
Talent Cultivation and JointDevelopmentKey Performance TableB2.3 Description of occupational health and safety measures adopted, and how they areimplemented and monitored.
Talent Cultivation and JointDevelopment
B3: DevelopmentAnd Training
General DisclosurePolicies on improving employees' knowledge and skills for discharging duties at work. Descriptionof training activities.Note: Training refers to vocational training. It may include internal and external courses paid bythe employer.
Talent Cultivation and JointDevelopmentB3.1 The percentage of employees trained by gender and employee category (e.g. seniormanagement, middle management).
Talent Cultivation and JointDevelopmentKey Performance TableB3.2 The average training hours completed per employee by gender and employee category.
Talent Cultivation and JointDevelopmentKey Performance Table
B4: LabourStandards
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerrelating to preventing child and forced labour.
Talent Cultivation and JointDevelopmentB4.1 Description of measures to review employment practices to avoid child and forced labour.
Talent Cultivation and JointDevelopmentB4.2 Description of steps taken to eliminate such practices when discovered.
Talent Cultivation and JointDevelopment
DisclosureCorresponding Chapter
Operating Practices
B5: Supply ChainManagement
General DisclosurePolicies on managing environmental and social risks of the supply chain.
Harmonious Society, SharedVictoryB5.1 Number of suppliers by geographical region.
Harmonious Society, SharedVictoryKey Performance TableB5.2 Description of practices relating to engaging suppliers, number of suppliers where thepractices are being implemented, and how they are implemented and monitored.
Harmonious Society, SharedVictoryB5.3 Description of practices used to identify environmental and social risks along the supplychain, and how they are implemented and monitored.
Putting Environment First toBuild a Green FutureHarmonious Society, SharedictoryB5.4 Description of practices used to promote environmentally preferable products and serviceswhen selecting suppliers, and how they are implemented and monitored.
Putting Environment First toBuild a Green FutureHarmonious Society, Sharedictory
B6: ProductResponsibility
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerrelating to health and safety, advertising, labelling and privacy matters relating to products andservices provided and methods of redress.
Safety Assurance andProduct InnovationB6.1 Percentage of total products sold or shipped subject to recalls for safety and health reasons.
Safety Assurance andProduct InnovationB6.2 Number of products and service related complaints received and how they are dealt with.
Safety Assurance andProduct InnovationB6.3 Description of practices relating to observing and protecting intellectual property rights.
Safety Assurance andProduct InnovationB6.4 Description of quality assurance process and recall procedures.
Safety Assurance andProduct InnovationB6.5 Description of consumer data protection and privacy policies, and how they are implementedand monitored.
Safety Assurance andProduct InnovationRobust Governance for SolidFoundation
B7:
Anti-corruption
General DisclosureInformation on:
(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerrelating to bribery, extortion, fraud and money laundering.
Robust Governance for SolidFoundationB7.2 Description of preventive measures and whistle-blowing procedures, and how they areimplemented and monitored.
Robust Governance for SolidFoundationB7.3 Description of anti-corruption training provided to directors and sta?.
Robust Governance for SolidFoundationCommunity
B8: CommunityInvestment
General DisclosurePolicies on community engagement to understand the needs of the communitieswhere the issuer operates and to ensure its activities take into consideration the communities'interests.
Harmonious Society, SharedVictoryB8.1 Focus areas of contribution (e.g. education, environmental concerns,labour needs, health, culture, sport).
Harmonious Society, SharedVictoryB8.2 Resources contributed (e.g. money or time) to the focus area.
Harmonious Society, SharedVictory
2023 Homa Group Environmental, Social and Governance Report
Guangdong Homa Group Co. Ltd.,Stock Code: 002668Address: No.54, Dongfu North Road, Nantou Town, Zhongshan City, Guangdong Province, ChinaWebsite: www.homa.cnEmail: homa_ir@homavip.con