Table of Contents
Contributing to Societyand Forging a BrighterFuture TogetherRural Revitalization in ActionBuilding a Warm Community
Environmental Protectionand Implementation of Low-carbon DevelopmentImproving Environmental ManagementDeepening Energy Conservation andEmission ReductionConsolidating Three Wastes ManagementImplementing Green Operations
Empowering Talents andForging an ExceptionalDevelopment PlatformSafeguarding Employees' Rights and InterestsStandardizing Employee EmploymentEmphasizing Talent CultivationImplementing Employee CareOccupational Health and Safety
Anchoring in Core Businessand Enhancing Products andServicesEnhancing Product QualityProviding Quality ServicesAdhere to Innovation LeadershipOptimizing Supply Management
SCIENTIFIC OPERATIONFOR ROBUST GOVERNANCEEnhancing Corporate GovernanceInformation Disclosure and Protectionof Investors' Rights and InterestsStrengthening Compliance ManagementAdhere to Business EthicsInformation Security Protection
Message from the ChairmanAbout HuamingCompany ProfileKey MilestoneCorporate CultureCompany Awards
Theme Spotlight: ESGManagement
Huaming contributes to SDGsESG Management SystemStakeholder CommunicationAnalysis of Material Issues
Appendix
About The ReportGRI Content IndexFull Names and AbbreviationsFeedback and Suggestions
Environmental, Social andGovernance (ESG) Report
2023
MESSAGE FROM THE CHAIRMAN
In 2023, amidst the rapidly evolving global landscape, Huaming overcame numerous adverse impacts and significant challengesposed by market fluctuations and shifting industry policies. We proactively aligned with national strategies, implementedlocal deployments, accelerated industrial transformation and upgrading, and advocated green and low-carbon development.Consequently, our business performance scaled new heights, with green and high-quality development exhibiting a promisingtrajectory. We delivered an impressive scorecard to our shareholders, employees, and society.
Throughout this year, we remained steadfast in our commitment to innovation and fulfilled our missionAs a globally renowned supplier of tap changer system solutions and equipment, Huaming is dedicated to delivering the bestquality products and services to our customers. We consistently promote technological and product innovation to create optimalvalue for our clients. With a focus on our core business development strategy, we continuously enhance the competitiveness ofour products, centralize resources to expedite the transition and enhancement of our offerings towards energy conservation andlow-carbon initiatives, and contribute significantly to the advancement of China's power equipment sector. Aligning with thisstrategic objective, Huaming intensified its investment in the R&D of power tap changer in 2023, resulting in a substantial surgein the shipment volume during the reporting period.
In this year, our focus remained on promoting low-carbon initiatives and making contributions to the societyHuaming resolutely implements the philosophy of "Lucid waters and lush mountains are invaluable assets", establishing rigorousmeasures for long-term safety and environmental protection. We remain steadfast in pursuing our annual EHS objectives andimplemented key safeguarding strategies. Additionally, we ensure the fulfillment of both corporate responsibilities and worksafety obligations across all levels of our workforce. Adhering to the path of green and high-quality development, Huamingimplements policies aimed at achieving "carbon peaking and carbon neutrality" as well as "dual control of energy consumption".We make significant strides in improving our energy consumption structure, achieving noteworthy outcomes in carbon reductionand emission mitigation, and continuously reducing emissions of major pollutants. Furthermore, we deepen our strategicpartnerships with customers, suppliers, clients, and other partners with utmost integrity. We actively integrate into socialconstruction efforts, support charitable education initiatives, and donate to various public welfare undertakings, thereby shapinga positive corporate social image.This year also marked our commitment to people-oriented governance and standardizationHuaming consistently views employee growth as a cornerstone of our sustainable development. We prioritize talent nurturing,establishing a comprehensive employee training framework that encompassed integration for new hires, professional skillenhancement, leadership development, and more. This comprehensive approach enables our employees to find fulfillment andhappiness in their work. Moreover, we value employee welfare. In addition to providing social security coverage, the Company alsoprocures commercial medical insurance for each employee, further safeguarding their well-being and enhancing their sense ofhappiness. Simultaneously, we regularly organize fundraising activities to assist employees facing personal difficulties and offercondolences to those in need. The Company has undergone a profound standardization of governance, strengthening the Boardof Directors' construction, optimizing the governance structure, and effectively safeguarding the interests of shareholders andstakeholders.The road ahead is lengthy, yet it is only those who take bold actions that will traverse it. Continuous and unwavering progressholds the key to our future. After nearly three decades of diligent growth, we remain steadfast in our original aspiration, marchingforward with determination. As we embark on the path of future development, Huaming will leverage its industrial leadership andharness innovation as our driving force. We will actively respond to climate action, seize the opportunities presented by cleanenergy, and persistently strive towards our vision of becoming a "world-class power equipment enterprise".
Chairman：
Yi Xiao
Environmental, Social andGovernance (ESG) Report
2023
ABOUT HUAMING
The Company specializes in three segments: electrical equipment, electrical engineering, and numerical control equipment.
COMPANY PROFILE
Business Segments
Power Equipment
Numerical Control
EquipmentPower Engineering
The core business is electrical equipment business, primarily focused on the R&D, production, sales, and fulllifecycle full operation and maintenance of transformer tap changers.The strategic synergy betweenthe power engineering and tap-changer businesses fortifies thestrategic partnership betweenthe Company and its suppliersand fosters the sustainedand robust growth of bothbusiness segments. Boastinga seasoned project team withprofound insights into customerrequirements, Huaming excelsin executing projects efficientlyunder diverse and intricatescenarios, garnering numerousaccolades and securing the trustand enduring collaboration of itsclients.
Huaming boasts comprehensiveR&D capabilities encompassingboth software and hardware,enabling it to not only designand manufacture mechanicaland hydraulic systems but alsodevelop pertinent embeddedindustrial control softwaretailored to its own controlsystems. Furthermore, all of theproducts have achieved paperlessprocessing, incorporating real-time monitoring and remotediagnostic capabilities, thussignificantly enhancing userconvenience and facilitatingmaintenance efforts forcustomers.Huaming's products enjoy widespread popularity and robust sales globally, with our power equipment being exported tonumerous countries and regions, including Europe, North America, and Southeast Asia. In recent years, the pursuit of carbonpeak and carbon neutrality as strategic goals has given rise to a series of supportive policies and measures. This has not onlypropelled the rapid growth of upstream and downstream manufacturing industries, such as new energy vehicles and solarpower generation, but has also significantly boosted the demand for industrial electricity. Furthermore, the escalating electricityconsumption across society has sustained the continuous growth of power generation capacity and grid construction, therebyexpanding the market for tap-changers. Additionally, the accelerated grid investments in Europe and the United States havefueled the overseas demand for transformers, while the sustained growth in domestic transformer exports has presentedHuaming with new developmental opportunities.
In 2023
Economic Performance
Total assetsRMB 4,518
millionPro?tRMB 542
million
Revenue
RMB 1,961
millionAsset-liability ratio
25.57
%
Huaming Power Equipment Co., Ltd. (hereinafter referred to as "the Company" or Huaming), management headquartered atNo. 977, Tongpu Road, Putuo District, Shanghai. Huaming executed a backdoor listing through the acquisition of FIN CNC andcompleted the restructuring and listing process by the end of 2015. (stock abbreviation "Huaming Equipment" with the stock code002270).As the sole manufacturer of tap changer in China possessing two comprehensive industrial chain production bases.ShanghaiHuaming, a wholly-owned subsidiary, is recognized as a "specialized, special and new" small and medium sizedenterprise, and further as a national specialized, special and new "little giant" enterprise. With its establishment in the early1990s, Huaming has been engaging in the segmented market for three decades. Following the acquisition of the largest domesticcompetitor in 2018, the Company has firmly secured its position as the leader in China and the second-largest globally in itsmarket segment. Huaming has actively participated in the compilation and revision of key industry and technical standards forload break switches, and primarily competes with overseas rivals in the global arena. On the international stage, Huaming holdsa formal membership in the IEEE Special Committee, actively contributing to the compilation and discussion of relevant industryregulations and the formulation of IEC standards.
KEY MILESTONE
1999Sales surpassed RMB 80 million,becoming a leading enterprisein the domestic tap-changerindustry
2015
Successfully completedrestructuring and IPO
2018
Issued RMB 700 million corporatebonds, was awarded the title ofNational Model Academician andExpert Workstation, and acquiredGuizhou Changzheng, the largestdomestic competitor
2020Launched the research on keytechnologies of high-reliabilityconventional tap-changer andnew-type split-body on-load tap-changer
2021Initiated a private placement,successfully repurchased RMB 700million corporate bonds, launchedthe ultra-high voltage national keyproject, and successfully put the firstultra-high voltage 1000kV off-circuittap-changer into operation
2023Signed commercial contracts for batchsales of ultra-high voltage products2022Completed a private placementand the first set of ultra-highvoltage transformer on-load tapchangers were officially put intooperation
2009
Obtained CNAS certification,and became the first privateenterprise academicianworkstation in Shanghai
1996
Recognized as a high-techenterprise in ShanghaiProducts were directly exportedto overseas markets
1997Pioneered the use of UGfor product design andprocessing in the industry
1991Foundation of Shanghai HuamingSwitchgear Factory
1995Reformed into ShanghaiHuaming Power EquipmentCo., Ltd.
Environmental, Social andGovernance (ESG) Report
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Environmental, Social andGovernance (ESG) Report
2023
At Huaming, our culture is defined by unwavering integrity, a commitment to benevolence and morality, relentless innovation, anda dedication to continuous self-improvement. These core values define who we are and guide our actions to maintain a diligentand accountable work ethic, fostering a credible image for the Company. Concurrently, Huaming endeavors to foster a favorablework and living environment for its employees, encompassing everything from the well-maintained factory premises to thequality of meals served, and from the safety and security of its workforce to their long-term career development. With a profoundcommitment to the mutual growth of both the Company and its employees, we strive to transform the workplace into a cozy andnurturing "home" for its employees.
CORPORATE CULTURE
COMPANY AWARDS
Huaming was esteemed enough to be included in the "2022 Shanghai Innovative Small and Medium-
sized Enterprise List", curated by the Shanghai Municipal Economic and Information Technology
CommissionHuaming was designated as a "Specialized, Special and New" small and medium-sized enterprisein Shanghai for 2021-2023, and further awarded the title of a "Specialized, Special and New "little
giant" enterpriseHuaming's newly developed VCME vacuum on-load tap changer successfully cleared the expertgroup's evaluation at the new product technology appraisal meeting hosted by the China Machinery
Industry Federation. The product's comprehensive performance indicators were deemed to be at
the international advanced level among similar products
Huaming was rated as excellent "Municipal Enterprise Technology Center" in the 2023 Municipal
Technology Center recognition evaluation.
Huaming's Ultra-High and Extra-High Voltage DC Engineering Complete Equipment and KeyComponents - Converter Transformer On-load Tap Changer was recognized as a key technologicalequipment (project) in the energy sector, listed as part of the third batch by the National Energy
Administration
Huaming was selected as an "2023 Outstanding Organization for Innovation Service" by the
Shanghai Science and Technology Association
Huaming Engineering's involvement in the construction of the Shapotou 200MW PhotovoltaicComposite Project, undertaken by Ningxia Weigang New Energy Co., Ltd., was highly commended,receiving the National Quality Engineering Award for 2022-2023, bestowed by the China Association
of Construction Enterprise Management.
Huaming was officially recognized as the Eighth Batch of Manufacturing Single ChampionEnterprises, and the selected product is the Company's "on-load voltage regulating tap changer for
transformer".
Huaming has been acknowledged as a model academician and expert workstation by the Enterprise
Working Office of the China Association for Science and Technology
1112
Environmental, Social andGovernance (ESG) Report
2023
Reinforce board structure andgovernance to ensure seamlesscompany operations.Develop energy-saving goals andimprovement plans annually based onactual situationsManage exhaust gas, wastewater,solid waste, etc. properly to ensurecompliant treatment of all pollutants
Engage actively in social donations,educational assistance, and volunteeractivities.
Embrace the diversity of ourworkforce.
The occupational health examinationrate and completion rate of occupationalhealth training for employees are 100%.
Empowering Talents andForging an ExceptionalDevelopment PlatformEstablish educational and vocational skillenhancement plans, and launch a tailoredprogram for employees, specifically aimedat promoting talent and advancing theirprofessional titles.
Empowering Talents andForging an ExceptionalDevelopment Platform
Designate logical and equitable careeradvancement paths for all employees.
Empowering Talents andForging an ExceptionalDevelopment PlatformConsistently invest in scientific researchand introduce top-tier domestic andinternational talents specializing inexperimental and testing equipment.Foster exchanges and collaborations withprofessional institutions.
Anchoring in Core Business andEnhancing Products and Services
Maintain a steadfast commitmentto safeguarding employee rights andfostering gender equality.
Empowering Talents andForging an ExceptionalDevelopment PlatformEnhance water conservation efforts andpromote the recycling of water resources.
Environmental Protectionand Implementation of Low-carbon DevelopmentDrive forward energy conservation andemission reduction initiatives whileelevating energy efficiency.
Environmental Protectionand Implementation of Low-carbon Development
Environmental Protectionand Implementation of Low-carbon Development
Contributing to Society andForging a Brighter FutureTogether
Empowering Talents andForging an ExceptionalDevelopment Platform
Forge strong collaborativerelationships with domesticuniversities, research institutions, andother stakeholders to jointly propelsustainable industrial development.Anchoring in CoreBusiness and EnhancingProducts and Services
Environmental Protectionand Implementation of Low-carbon Development
Contributing to Society andForging a Brighter FutureTogether
Responsible Actions of HuamingChapter Index
THEME SPOTLIGHT: ESG MANAGEMENT
HUAMING CONTRIBUTES TO SDGS
Chapter IndexResponsible Actions of Huaming
HUAMINGCONTRIBUTESTO SDGS
1314
Environmental, Social andGovernance (ESG) Report
2023
STAKEHOLDER COMMUNICATION
Recognizing the paramount importance of maintaining open and timely communication with its stakeholders, Huaming hasestablished an efficient and standardized communication process. This ensures the continuous effectiveness of communication,enabling the Company to establish diverse and responsive communication channels that swiftly capture and address the needsand expectations of its stakeholders. Huaming is able to promptly understand and respond to the demands and expectations ofvarious stakeholders, thereby elevating its ESG management capabilities and enhancing its accountability to all parties involved.StakeholderExpectations and RequirementsActions
Compliant disclosureRisk management
Hold the General Meeting of ShareholdersReceive visits from investorsRegularly disclose information
Enhance product quality control measuresFacilitate customer visits and training activitiesDeliver exceptional serviceReinforce privacy protection measuresEmployee rights and interests protectionEnrich employee activities with diversityOffer a just and equitable promotion pathEnsure a safe and healthy working environmentEmbark charitable education assistanceUndertake charitable activities
Product quality and safetyCustomer satisfactionR&D and innovationInformation security and privacyprotectionEmployee rights and interestsEmployee careEmployee training anddevelopmentEmployee health and safetySocial charity
Offer job opportunitiesEmbark on rural revitalization and socialwelfare initiativesExchanges and cooperationAdopt transparent procurement practicesBuild a green supply chainIntellectual property protection
Shareholders andinvestors
Government and
Regulators
Suppliers and
partners
ANALYSIS OF MATERIAL ISSUES
Huaming
To fully grasp the viewpoints and demands of stakeholders such as customers, the government, employees, and partners, theCompany conducted in-depth communication and exchanges with various stakeholders through questionnaire surveys, andsorted out and evaluated material topics in the operation process. By referencing relevant domestic regulations, guidelines,and other requirements, the Company identified and screened 15 topics for inclusion in the material topic matrix, with 12 topicsevaluated as highly material.
Importance to Stakeholders
Importance to the Enterprise’s Development
ESG MANAGEMENT SYSTEM
ESG Management Concept
ESG Management Responsibilities
ESG Management Structure
Huaming has seamlessly integrated ESG principlesinto its corporate development strategy, continuouslyenhancing its governance structure and operationalframework for ESG. During the reporting period, theCompany tailored an ESG management framework toits unique development trajectory, actively engaging instakeholder research, and clarifying key material issuespertinent to its current ESG management.
To refine and streamline the ESG managementmechanism and coordinate the advancement of ESG-related initiatives, Huaming established an ESG workinggroup in 2023. This group is tasked with developing ESGmanagement goals and strategies, executing specificESG work plans, and updating the Board of Directorsand management on material ESG matters.
Develop ESGmanagement goals andstrategies
Identify and evaluateESG opportunities andrisks
Execute the strategicdirectives of the Board ofDirectors, management,and the ESG working group
Provide regular updates tothe Board of Directors andmanagement on the progressof ESG efforts
Rural revitalization and socialwelfareBusiness ethicsIndustry trends and policiesSupply chain managementIntellectual property protection
Customers
Employees
Society and public
Promoting Community DevelopmentIndustry CollaborationEmployee Training and Development
Responsible Procurement
Addressing Climate Change
Business EthicsWaste Management
Product QualitySafety ProductionCorporate GovernanceTechnology and InnovationEmployee Employment
Energy Conservation andEmission Reduction
Compliant OperationOccupationalHealth and Safety
Enhancing Corporate GovernanceInformation Disclosure and Protection ofInvestors' Rights and InterestsStrengthening Compliance ManagementAdhere to Business EthicsInformation Security Protection
SCIENTIFIC OPERATION FORROBUST GOVERNANCE
Huaming holds a steadfast belief that a robust governance structure, rigorous internalcontrols, and efficient information communication are paramount to ensure the stablegrowth. Huaming is dedicated to fostering a clean and self-disciplined work environment,promoting an honest and upright corporate culture, emphasizing compliance management,continuously enhancing information transparency, deepening engagement with stakeholders,and relentlessly enhancing the enterprise's core competitiveness.
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
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Organizational Structure of Huaming
Huaming strictly adheres to the regulations including the Company Law of the People's Republic of China and the Securities Lawof the People's Republic of China, the Guidelines for the Governance of Listed Companies, and the Rules for the Listing of Stockson the Shenzhen Stock Exchange. At the helm of the organization, the General Meeting of Shareholders, the Board of Supervisors,the Board of Directors, and the management team collaborate to uphold the governance structure. Under the Board of Directors,specialized governance institutions such as the Strategy Committee, the Remuneration Committee, the Nomination Committee,and the Audit Committee are established to uphold operational compliance and transparency. Additionally, the Companymaintains a robust set of systems, including the Implementation Rules for the Audit Committee of the Board of Directors, theImplementation Rules for the Nomination Committee of the Board of Directors, the Implementation Rules for the Remunerationand Appraisal Committee of the Board of Directors, the Implementation Rules for the Strategic Committee of the Board ofDirectors, and other pertinent regulations, to further strengthen its corporate governance practices.
ENHANCING CORPORATE GOVERNANCE
The General Meeting of
ShareholdersThe Board ofDirectors
The Board ofSupervisors
The Audit Committee
Finance DepartmentCorporate DevelopmentDepartmentHR and AdministrationDepartment
AuditDepartment
The StrategyCommittee
Shandong FIN CNCMachine Co., Ltd.
Shanghai Chenting TechnologyDevelopment Co., Ltd.
Shanghai Huaming PowerEquipment ManufacturingCo., Ltd.
Shanghai HuamingPower EquipmentEngineering Co., Ltd.
The Remuneration andAppraisal Committee
The NominationCommittee
General Manager
Board of DirectorsOffice
Board Structure and Governance
INFORMATION DISCLOSURE ANDPROTECTION OF INVESTORS' RIGHTSAND INTERESTSStandardization of Information Disclosure
Investor Relations Management
Guided by the Company Law of the People's Republic of China, the SecuritiesLaw of the People's Republic of China, the Measures for the Administrationof Information Disclosure of Listed Companies, as well as the Articles ofAssociation and other pertinent regulations, Huaming has established acomprehensive suite of systems, including the Information Disclosure System, tostrengthen the administration of information disclosure. We sincerely, accurately,comprehensively, and promptly fulfill our information disclosure obligations,enhancing the quality and efficiency of our disclosure management whilesafeguarding the rights and interests of investors.
Huaming adheres to the principles of openness, impartiality, and fairness, to establish effective communication channels withshareholders. We have formulated the Investor Relations Management System of Huaming Electric Power Equipment Co., Ltd.and designated the Company Secretary as the primary point of contact for investor relations, overseeing the coordination ofinvestor relations, receiving shareholder visits, and addressing investors' inquiries. Through various communication channels,such as disclosing investor-specific announcements, promptly answering investor queries via irm.cninfo.com.cn, and welcominginvestors' research visits, Huaming has responded to investors' demands and inquiries, thereby safeguarding their interests.
During the reporting period,Huaming disclosed a total of
regular and interim reports.
Key Performance Indexes
Key Performance Indexes of Corporate GovernanceThe General Meeting ofShareholders
Board MeetingsSpecialized Committee
Meetings of the Board
Meetings of TheSupervisory BoardProposalsProposalsProposalsProposals269419361319
Currently, Huaming boasts a nine-member Board of Directors, consisting of one female director and three independent non-executive directors. Each member exhibits exceptional professional qualifications and extensive expertise in corporategovernance, with no gender or ethnic barriers imposed on personnel selection. The Board of Directors' primary responsibilitiesencompass devising the company's overarching development strategy, overseeing financial performance, exercising effectivesupervision over management, safeguarding shareholders' long-term interests, and ensuring that the Company's businessobjectives and development directions align with the prevailing economic and market conditions, ultimately fosteringsustainable and high-quality growth.
Tap-changer Segment: Huaming mainly has two major tap-changer production bases in China, with Shanghai production basemainly including Shanghai Huaming Power Equipment Manufacturing Co., Ltd. and Shanghai Huaming High Voltage SwitchManufacturing Co., Ltd; The production base in Zunyi mainly include Guizhou Changzheng Electric Co., Ltd. and Zunyi HuamingElectric Power Equipment Manufacturing Co., Ltd. The tap-changer maintenance business mainly includes Shanghai HuamingPower Equipment Maintenance and Service Co., Ltd.Power Engineering Segment: It mainly includes Shanghai Huaming Power Equipment Engineering Co., Ltd., and its subsidiaries
Shandong Star Business Incubation Co., Ltd. and Changfeng Nuoyang Photovoltaic Power Generation Co., Ltd., together holdingabout 80MW photovoltaic power station assets.
Numerical Control Equipment Segment: It mainly includes Shandong FIN CNC Machine Co., Ltd.
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
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1920
Huaming has prioritized the reinforcement of its compliance management system, leading to the formulation and refinementof compliance management policies. During the reporting period, key documents such as the Compliance Evaluation ControlProcedures and the Control Procedures for Laws, Regulations and Other Requirements were revised, driving the implementationof regulations and policies. Additionally, the Company has continued to standardize its contract signing and execution reviewprocesses, aiming to enhance the quality and efficiency of reviews, thus ensuring that all major decisions adhere to legal andregulatory standards. There were no major legal liability disputes during the reporting period.During the reporting period, to further streamline the process of identifying relevant business laws and regulations, Huaminghas introduced the Management System for Acquisition, Identification, Evaluation, and Update of Laws, Regulations, and OtherRequirements. This system is designed to empower Huaming to efficiently acquire, assess, and update legal and regulatoryinformation pertinent to its operational areas, enabling prompt updates to internal management documents.
Huaming adheres strictly to laws and regulations, including the Anti-Unfair Competition Law of the People's Republic of Chinaand the Basic Norms for Enterprise Internal Control. It implements rigorous anti-commercial bribery measures, fostering afavorable internal and external environment while standing firmly against any form of corruption and commercial bribery.
STRENGTHENING COMPLIANCEMANAGEMENT
ADHERE TO BUSINESS ETHICS
COMPLIANCE CULTURE DEVELOPMENTDuring the reporting period, Huaming prioritized the developmentof a robust compliance culture by conducting tailored trainingsessions for its financial and sales teams. These sessions focusedon clarifying compliance responsibilities across various areas,including adherence to legal frameworks, standardized contractexecution, safeguarding intellectual property rights, and maintainingdata and information confidentiality. The objective of the trainingwas to empower personnel with a deep understanding of policyframeworks, enable them to identify potential risks, and equip themwith effective countermeasures to mitigate those risks.Compliance Training PPT
Integrity Management Standards of the CompanyHuaming has established an anti-corruption email address and an anonymous anti-corruption hotline, accessible to both internaland external stakeholders, for receiving complaints and reports from employees, suppliers, agent companies, and regularcustomers affiliated with the organization. To ensure the meticulous handling of these complaints and reports, the Company hasdesignated a team of professionals to record and investigate all pertinent matters. All complaints and reports will be treatedwith utmost confidentiality, safeguarding the interests of the complainant or reporter, and preventing any retaliation againstthem. In 2023, Huamin handled a total of three anti-corruption cases. One case was successfully transferred to the procuratoratefor further investigation and prosecution, another was officially registered by the police and is currently under investigationstage, and the remaining case was amicably resolved through negotiations between the involved parties, with a processing rateof 100%.Anti-corruption Whistleblowing Channels:
Phone: 021-58995505Email: jubao@huaming.com
020406
0305
The exploitation of work for personal gain, such asbusiness banquet, taking, demanding, or engagingin unethical conduct, is strictly forbidden.Similarly, using position to secure benefits forrelatives and friends is strictly prohibited, andany business transactions must avoid involvingrelatives or friends with whom there is a potentialconflict of interest.
Employees are strictly prohibited fromsoliciting or accepting gifts, creditcards, shopping cards, kickbacks, orany other forms of remuneration frombusiness associates or individuals.
Employees are not permittedto participate in entertainmentactivities, such as commercial dancehalls, nightclubs, leisure or tourismarranged by customers, suppliers, orother business partners. Additionally,they are prohibited from seekingreimbursement for personal expensesfrom business partners.
The financial and relevant personnelare strictly prohibited from utilizingpublic funds for stock trading orpersonal use. Any violation willlead to immediate termination ofemployment, and in cases of seriousviolations, legal action will be takenagainst the individuals involved.
Employees who are aware of actsof favoritism, abuse of power,commercial bribery, or any otherbehaviors that harm the interestsof the Company are required topromptly report them. Failureto do so will be considered asconcealment of fraudulentbehavior.
During business trips, employees mustmaintain a clear purpose and adhere tothe principle of simplicity. They are notallowed to exceed the prescribed standardsfor travel expenses reimbursement or useofficial trips as an opportunity for personaltravel.
To further enhance its internal environment and mitigate issues such as commercial bribery and illegal misappropriation ofcompany assets for personal gain, which can potentially undermine the interests of the Company and its shareholders, Huaminghas introduced the Anti-Fraud Management System of Huaming Electric Power Equipment Co., Ltd.. This system aims to prevent,detect, and address fraudulent behavior in a timely, comprehensive, and effective manner. The HR department plays a pivotal rolein collaborating with relevant departments to gather, organize, analyze, disseminate, and exchange information related to anti-fraud efforts. Additionally, it’s responsible for executing, monitoring, publishing, and documenting the outcomes of anti-fraudhandling. In cases involving serious fraud, the department promptly reports the relevant information to the Company's leadershipand audit department.
During the reporting period, Huaming held
institutional research sessions, received a total of
investorsfrom over
institutions, including securities firms, funds, and individual investors, and actively communicatedwith them. Additionally, Huaming disclosed
announcements recording the investor relations research activities.Shareholder Return: Huaming has consistently prioritized shareholder return. During the reporting period, theShareholder Return Plan for the Next Three Years (2023-2025) explicitly stated that, under the premise of meeting the
Key Performance Indexes
dividend conditions, the Company will annually distribute a minimum of
% of the year's profit available fordistribution in cash. In 2023, the Company paid a semi-annual dividend of RMB
million, an annual dividendof RMB
million, amounting to a total of RMB
million. This demonstrates a commitment to sharing theCompany's value with the shareholders.
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
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INFORMATION SECURITY PROTECTION
INFORMATION SECURITY MANAGEMENT
Huaming holds its own information security and the protection of customer privacy in high regard. It strictly adheres to laws andregulations, including the Cybersecurity Law of the People's Republic of China, the Data Security Law of the People's Republic ofChina, and the Telecommunications and Internet User Personal Information Protection Regulations. Huaming has established adedicated network and information security group, composed of the information security office and department heads. In termsof systems, the Company carries out information security protection work in strict accordance with its Network and InformationSecurity Management System.
Enhancing the establishment of network firewalls,intrusion detection and prevention systems, aswell as security monitoring systems;Routinely upgrading security equipment andaddressing vulnerabilities.
Main Responsibilities of the Information Security Leadership Team
Formulating the comprehensiveplanning, management guidelines,and technical standards for HuamingManufacturing's network and informationsecurity, drawing upon national andhealth commission policies, laws, andregulations pertaining to network andinformation security.
Assuming a pivotal role in centralized and unifiedleadership, coordinating and guiding all networkand information security-related activities withinHuaming Manufacturing.
Complying with the directives and principles outlined in networkand information security documents issued by superior andrelated units.
Coordinating and spearheading themanagement of network and informationsecurity incidents, organizing investigations,assessing the gravity of these incidents,and overseeing subsequent handling andpreventative measures for network andinformation security incidents.
Measures to Enhance Information Security
Cybersecurity Training PPTCybersecurity TrainingWith regards to privacy protection, the General Manager's Office holds the responsibility of overseeing confidentiality efforts,encompassing the inspection and supervision of encryption and decryption activities. The organization has established numerouspolicies to safeguard information confidentiality, including the Shanghai Huaming Electric Power Equipment ManufacturingCo., Ltd. Privacy Policy, the Employee Privacy Protection Regulations, the Customer Information Confidentiality System, the
Management System of Company Computer Usageand the Privacy Protection Process Norms. These policies outline themethodologies and measures for handling customer and employee data securely. Furthermore, the Company has institutedregulations governing the decryption of documents and contingency plans to address privacy breaches. All files stored oncompany computers are encrypted, and when there is a need for external transmission, these files must undergo decryption ina designated archive room prior to dissemination. Additionally, all employees are required to sign confidentiality agreements,ensuring the strict adherence to privacy protocols. During the reporting period, Huaming did not experience any cybersecurityincidents or information leakage incidents.
Improving Existing Network Security Architecture
Facilitating information sharing and collaborationamong employees to bolster overall network securityawareness and defense capabilities.Clarifying the parameters and accountabilities ofinformation sharing to prevent the disclosure ofsensitive information and intellectual property concerns.
Establishing an Information Sharing MechanismEmploying encryption technology and robust databackup strategies to safeguard the security andintegrity of data during transmission and storage.Regularly performing data backup andrestoration exercises to validate the usability andrecoverability of backups.
Strengthening Data Protection
Organizing HM enterprise-specific network securitytraining to elevate employees' awareness andpreventative mindset towards network security.Enhancing Employee Network Security Training
Formulating and executing rigorousnetwork security managementprotocols, encompassing networkdevice administration, data backupand restoration, and the handling ofnetwork security incidents.
Enhancing Network SecurityManagement Framework
Conducting thorough analyses and evaluationsof the company's network system to identifypotential security risks and vulnerabilities,promptly implementing remedial andoptimization measures.
Regular Security Audits and RiskAssessments
Collaborating with and supervisingvarious departments to undertakenetwork and information securitytasks, address potential securityrisks, contribute to the securityplanning of information systemengineering projects, and monitorthe implementation of securitymeasures.
In terms of data security protection, Huaming has implemented a comprehensive data leakage prevention system to encrypt vitaltechnical materials, encompassing office documents and graphic files. Furthermore, Huaming has embarked on a multifacetedapproach, encompassing the optimization of its existing architecture, the intensification of staff training in network security,the conduct of rigorous security audits and risk assessments, and the establishment of an information sharing platform. Theseefforts aim to elevate employees' awareness of network information security, bolster the Company's network security protectioncapabilities and response speeds, and ultimately safeguard the integrity of company's information assets and the interests of thecustomers.
SUPPLIER BUSINESS ETHICS MANAGEMENTTo mitigate any unethical or illegal behaviors seeking improper benefits in procurement activities, Huaming has implemented asigning mechanism for both the Supplier Integrity Commitment and the Integrity Agreement with all suppliers. These agreementsmust be signed concurrently with contract executions. The clauses within these agreements explicitly outline variousresponsibilities and robust disciplinary measures to regulate supplier conduct and minimize procurement compliance risks.
ANCHORING IN COREBUSINESS AND ENHANCINGPRODUCTS AND SERVICES
Enhancing Product QualityProviding Quality ServicesAdhere to Innovation LeadershipOptimizing Supply Management
Adhering to rigorous quality management standards, Huaming ensures that every aspectof the product lifecycle, from conceptualization to production, aligns with customerexpectations. In terms of customer service, Huaming strives for prompt responsivenessand expertise, aiming to bolster client satisfaction and foster enduring partnerships.Technological innovation is the core pursuit of Huaming. Through consistent investmentin R&D as well as technological collaborations and exchanges, the Company continuallyenhances the performance of its products, safeguarding its position as a leader in theindustry. Concurrently, Huaming maintains strong relationships with its suppliers to ensurethe stability of its supply chain. Furthermore, Huaming actively promotes sustainableprocurement practices that facilitate efficient resource utilization, laying the groundwork forachieving long-term sustainability goals.
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
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Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
ENHANCING PRODUCT QUALITY
QUALITY MANAGEMENT SYSTEM
THE PROCESS OF QUALITY MANAGEMENT
Huaming maintains rigorous quality and safety standards, guided by the business philosophy of establishing an internationalbrand and fostering a long-lasting enterprise, to achieve customer satisfaction through scientific management, cutting-edgetechnology, and consistently reliable product quality. Adhering to stringent criteria and demands, the Company ensures thesuperiority of our products, driving the high-quality development of the power equipment industry.Huaming employs a comprehensive quality management system to regulate and control all aspects of the manufacturingprocess. This system is supported by various manuals and guidelines, including the Integrated Management Manual for Quality/Environment/Occupational Health and Safety, Quality Management System for Product Part Processing, and Quality ManagementSystem for Product Assembly. A triple-tiered quality management structure has been established, with the General Managerleading the way, the quality control department taking charge, and the quality inspection department executing the necessarytasks. The quality control department is tasked with implementing and operating the integrated management system, while alsoregularly overseeing, inspecting, and improving its operational status. To further enhance quality management, the Companyhas established a robust inspection and patrol mechanism that covers all crucial production aspects. This mechanism involvesconducting at least three routine inspections per month, ensuring a thorough and effective daily management approach. Duringthe reporting period, all major subsidiaries successfully obtained ISO9001 Quality Management System Certification.Huaming adheres to the PDCA principle (Plan-Do-Check-Act) to achieve efficient management throughout all stages of thequality lifecycle.
During the production process, Huaming adheres strictly to the principle of "triple-nos", encompassing the refusal to receive,produce, or dispatch any non-conforming products.
Refuse receiving non-conforming products
Refuse producing non-conforming products
Prior to commencing production and processing, employees are mandated to conduct thorough inspections ofproducts handed down from the preceding stage to ascertain their compliance with regulatory standards. Upondiscovery of any issues, they are authorized to decline acceptance and promptly notify the preceding stage.Personnel from the previous stage must promptly halt processing, investigate the root cause, and promptly rectifythe quality concern to prevent wasteful continuation of non-conforming product manufacturing.
Upon receiving qualified products from the preceding stage, employees must strictly adhere to operationalspecifications within their designated roles to ensure product quality. Adequate preparatory measures, including pre-operation inspections and confirmations, must be undertaken to minimize the likelihood of non-conforming products.
Refuse dispatching non-conforming productsUpon completion of the respective processing stages, employees are required to conduct quality inspections andconfirmations. Upon discovery of any non-conforming products, the defective product disposal procedure will beinitiated by pressing the lamp system, and the quality control department promptly implements corrective andpreventive measures to address the issue.Furthermore, Huaming firmly upholds its quality policy, emphasizing technological innovation, the pursuit of exceptionalquality, and the fulfillment of customer needs. Huaming prioritizes enhancing customer experience to refine both product andservice quality, while maintaining rigorous quality control throughout the entire production process. All functional departmentscollaborate seamlessly to oversee the quality of every step, from raw material procurement to design, production, and service,thereby establishing Huaming's reputation as a brand synonymous with high standards and exceptional quality.
Product Quality Control SystemDuring the product testing process, Huaming has implemented rigorous standards for evaluating its products, utilizing diversetesting methods including triple-coordinate measuring instruments, high-voltage insulation testing, and laser 3D inspection.Furthermore, the Company's tap changer testing center has been accredited by the China National Accreditation Service forConformity Assessment (CNAS), ensuring that its test results are globally recognized and mutually accepted by the InternationalLaboratory Accreditation Cooperation (ILAC).
Develop comprehensive quality policiesand objectives, plan the managementsystem, clearly define responsibilities andauthorities, and accurately determine resourcerequirements.
Measure, monitor, and analyze the operationof the aforementioned processes.Effectively disseminate and implement theestablished quality objectives, thoroughlyprepare procedural documents, conducttargeted training for relevant activities, andprovide seamless services throughout theproduction process.
Proactively take measures to achieve thedesired results of process planning andcontinuously strive for the improvement ofprocedures.
P (Plan) Planning Stage
C (Check) Checking Stage
D (Do) Doing StageA (Act) Acting Stage
YY
YYYY
NN
NNN
IncomingMaterial
ComponentAssembly
Assembly
andDebugging
Analysis/Correction
DepositoryReceipt
ProductionMaterialRequisition
ComponentsProductionFirst ArticleInspection
Inspection
InspectionInspectionTestPackingInspection
ShipmentReworkRework
Inspection
Rework
Storage
Return
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Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
完整的质量控制体系
QUALITY CULTURE
Huaming emphasis on fostering a robust quality culture in high regard. Through various platforms such as quality groups, regularmeetings, and morning briefings, employees are kept informed of the Company's quality principles and product quality standards.This ensures prompt and effective feedback on quality concerns, thereby strengthening the quality consciousness among allemployees and fostering an environment where quality is highly valued and actively pursued.
Quality Training and Regular Meetings
PROVIDING QUALITY SERVICES
Huaming is committed to serving each customer sincerely, tailored to their unique needs, while continuously enhancing itsservice standards. Guided by a customer-centered approach, Huaming has established a robust customer service guaranteesystem and implemented regulations, including the Control Procedure for Customer-Related Processes, to ensure that everyaspect of the customer journey is effectively managed.
Technical issues raised by customers thatare beyond the scope of our department'scapabilities will be promptly reported inwriting or through alternative means tothe relevant leaders and departments forfurther assistance.
Upon returning to Huaming, the servicepersonnel will collaborate with the internalteam to analyze, categorize, and documentthe technical service feedback forms. Theywill also assist in acquiring relevant spareparts and repairing returned products.If deemed necessary based on customer feedback,personnel will be dispatched in accordance withestablished travel procedures. They will be briefed on thework tasks and standards, equipped with the necessaryspare parts, and ensure prompt arrival at the site,adhering to the designated travel route and timeline.
Generally, the response to customer information shouldnot exceed 8 hours, and for major accidents, it should notexceed 4 hours.
Upon completion of the work, the dispatched servicepersonnel are required to complete a technical servicefeedback form, encompassing details such as thecustomer's organization, contact person's information,product specifications, serial number, manufacturing date,components replaced, handling procedures, and finalconclusion. It is imperative to obtain a signed evaluationfrom the customer.
CUSTOMER REQUIREMENTS MANAGEMENT
CUSTOMER COMPLAINTS AND HANDLING
Huaming continuously refines its customer demand response mechanism, actively listening to customer feedback andaddressing their requests through onsite visits, surveys, and various other channels. This approach allows for a deeperunderstanding of customers' latent needs, innovation in product functionalities, strengthened customer engagement, andultimately, increased customer loyalty. The Customer Service Department regularly summarizes and analyzes service personnel'sperformance data, reporting key insights to relevant departments. By analyzing these insights, Huaming identifies customerneeds and areas for improvement, collaborating with the technical department to implement corrective, preventive, andenhancement measures, thereby elevating the quality of its products and services. Furthermore, to enhance the competitivenessofferings, the Company adopts a targeted approach in managing diverse customer segments.
To facilitate seamless communication, Huaming has established a 24-hour service hotline, accessible via multiple channelsincluding artificial customer service and WeChat. This dedicated line receives inquiries, maintenance complaints, and otherrelevant information from our customers. All incoming emails, phone calls, and other forms of communication are registered andpromptly handled, with the details and specific requirements of each customer being timely recorded.
In the event of significant quality incidents reportedby users, immediate notification will be made to theCompany's supervisory leadership. Subsequently,relevant departments will be organized to assist in theinvestigation, analysis, and handling of these incidents inaccordance with established instruction.
0104
03060205
Customer Complaints Handling Procedure
Triple-coordinate measuring instrumentsX-ray optical testing
Raw material inspection
High-voltage insulation testingComponent inspection
Complete testing capabilities
Laser 3D inspection
Insulation material testing
On-load switching test
Pre-delivery testing
Complete testing capabilities
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Environmental, Social andGovernance (ESG) Report
2023
Non-warrantyWarrantyTrainingWarrantyNon-warrantyCharging
Issuinginvoices
Maintenance and
testing
Filling out the
service APP
Quotation formaintenance contract
Signing and endorsingcustomer opinions andsuggestionsSignature of the maintenance
personnel
End of serviceReporting weeklyquality feedback
Attending qualityanalysis meetings
Follow-up visit
Updating customerrecordsCustomer Complaint Handling Procedure
CUSTOMER SATISFACTION EVALUATIONAnnually, Huaming undertakes a comprehensive customer satisfaction survey to gather feedback and insights on various keyaspects, including product performance and safety, delivery timelines, pricing, customer service quality, and emerging productneeds. This survey aims to ensure that we are aligned with our customers' expectations and are responsive to their evolvingrequirements. In 2023, Huaming achieved a customer satisfaction rate of approximately 97%, coupled with a 100% customercomplaint resolution rate.
Responsible Marketing
Huaming rigidly adheres to various laws and regulations, encompassingthe Law of the People's Republic of China on the Protection of ConsumerRights and Interests and the Advertising Law of the People's Republic ofChina. It unequivocally prohibits any exaggeration or misrepresentationin product marketing. Furthermore, it adheres to various internal policiesduring contract signing, product sales, and brand promotion, ensuring theelimination of any unfair competitive practices.
Honors and Awards
Information Sources: Phone calls,
emails, and WeChat messages
from customers and salesRecording productsmaintenance information and
user feedbackPhone, internet,correspondence, and whetherthe issue can be resolvedResponse from technical
service personnelEAMIC work order dispatch
personnel to the site for
maintenance
Phone, internet, andwritten responses
End of phone serviceEnd of written response
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Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
ADHERE TO INNOVATION LEADERSHIPHuaming underscores the significance of technological leadership, viewing technological innovation as a pivotal driver forthe enterprise's sustainable growth. Rooted in technological R&D, Huaming remains market-oriented, continuously fosteringinnovation, and enhancing its technological edge. It has established a R&D hub in Shanghai and an industrial base in Zunyi.Numerous subsidiaries have been acknowledged as national high-tech enterprises, with the wholly-owned subsidiary, ShanghaiHuaming, recognized as a " specialized, special and new" SME in Shanghai and a national-level " specialized, special and new"little giant enterprise. In 2023, the Company achieved remarkable advancements in new product R&D, investing a total of RMB
78.47 million in R&D and employing 202 R&D personnel.
R&D MANAGEMENTHuaming has established a comprehensive R&D management system, led by a technical center under the guidance of itsBoard of Directors. This ensures that the management level remains fully accountable for the R&D efforts across all affiliatedcompanies. An expert committee, headed by the deputy general manager who also serves as the director of the technicalcenter, oversees the system's operations. Various departments, including the Product Technology Department, New ProductDevelopment Department, Process Department, Quality Inspection Department, and Information Technology and ArchivesManagement, collaborate closely to enhance R&D management. To further strengthen its technological capabilities, theCompany has formulated two key policies, namely the Measures for the Administration of Scientific and Technological ProjectEstablishment and the Innovation Incentive and Reward System. These policies establish an open innovation mechanism,facilitate the organization and implementation of technological achievements transformation, and implement a reward systemto recognize and reward outstanding contributions. Moreover, to attract top-tier talents to join its technological R&D team,Huaming has introduced the Performance Appraisal and Reward System for Scientific and Technological Personnel and theScientific and Technological Talent Training and Promotion Management System. These systems effectively regulate the training,skill enhancement, rewards, and other aspects of scientific researchers, thereby enhancing the Company's competitiveness inattracting and retaining exceptional talents.Hauming's R&D management is centered on innovation and relentless improvement, leveraging efficient project managementand cross-departmental collaboration to facilitate technological advancements and product innovations. To accomplish this,the Company has established a structured R&D process, adhering strictly to predefined quality standards and schedules,encompassing all stages from market research to product design, development, testing, and ultimately market promotion.During the design phase of new products, Huaming incorporates sustainability considerations and applies green principlesin both design and manufacturing. It consistently enhances the automation, intelligence, and sophistication of its productsthroughout the production process, developing visual inspection systems that elevate the automatic detection and processingcapabilities of its offerings.
The introduction of the PLM management system can achieve centralized data management, enhancing dataconsistency and accuracy while mitigating information silos and data redundancy.Process Management Optimization:
The system streamlines enterprise processes, elevating efficiency in design reviews, change controls, and versionmanagement. It minimizes errors and delays, while ensuring strict adherence to standardized procedures by all relevantpersonnel.Collaborative Capabilities Enhancement: The system facilitates cross-departmental and cross-regionalteamwork, guaranteeing that all relevant stakeholders have real-time access and update product information. Thisexpedites product development, enhances product quality, and fosters better communication and decision-making.Traceability Improvement: The system documents the entire life-cycle of a product, spanning from design tomanufacturing, sales, and service. This facilitates effortless tracking of product history, change details, and associateddocumentation, ultimately contributing to enhanced product quality and customer satisfaction.
Case Study:PLM Management System
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Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
To enhance the success rate of mold design and expedite the R&D cycle, Huaming has adopted state-of-the-art moldflow analysis software. This sophisticated tool simulates the entire injection molding process, anticipates potentialdefects, and enables their optimization in the initial design stages. This approach not only elevates the accuracy andquality of the mold but also mitigates the need for repeated trials and repairs, thereby reducing the time from productdevelopment to market launch. Furthermore, the software allows for the adjustment of crucial parameters such as thegate, runner, and cooling system, optimizing the overall quality and efficiency of the injection molding process.
Case Study:Mold Flow Analysis Software Adoption
Schematic Diagram of Mold Flow Analysis Software
On November 8, 2023, the VCME vacuum on-load tap-changer, a new innovation from Shanghai Huaming PowerEquipment Manufacturing Co., Ltd., successfully cleared the evaluation hurdle at the new product technologyevaluation meeting organized by the China Machinery Industry Federation. This accomplishment marked the product'scomprehensive performance indicators reaching the international advanced level among its peers. The VCME vacuumon-load tap-changer boasts a rational design and incorporates cutting-edge technology. Its installation plate andsupport bars are constructed using high-temperature-resistant thermoplastic composite materials, ensuring durabilityand resilience. The device features a large-angle quick mechanism, allowing for swift and efficient operations. Centralto its functionality is the switching changer, which employs a vacuum tube arc extinguishing device and a "split-type"isolation contact. The vacuum tube's opening and closing actions are smoothly actuated by a cam lever mechanism,ensuring precise and reliable performance. Additionally, all rotating joints are equipped with rolling bearings, significantlyenhancing the switch's mechanical life to 1.5 million times and electrical life to 360,000 times. Furthermore, the VCMEvacuum on-load tap-changer has successfully undergone rigorous testing, including a test of opening and closingcapacity at twice the rated current for 100 times. This rigorous testing demonstrates the switch's exceptional overloadand short-circuit resistance, high-frequency switching capability, and minimal maintenance requirements. Theseattributes significantly enhance the switch's overload capacity, overall reliability, and stability during continuousoperation.
Case Study: The VCME Vacuum On-load Tap-changer
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Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
As thermoplastic technology has advanced and become increasingly utilized, injection molding has emerged as a pivotalapproach for Huaming in its pursuit of green manufacturing, attributed to its notable efficiency in production, minimalenergy consumption, and recyclability. During the reporting period, Huaming embarked on an extensive upgrade andtransformation of its injection molding workshop. Tailored to production requirements, four additional injection moldingmachines were introduced to cater to the diverse production needs of parts of varying specifications. Furthermore, theinstallation of a centralized feeding system and injection molding manipulator significantly enhanced the workshop'soverall production efficiency.
Case Study: Injection Molding Workshop Transformation
Advantages of Centralized
Feeding System
Advantages of Injection Molding
ManipulatorHigh efciency: The centralized feeding system iscapable of automatically supplying a diverse rangeof raw materials to numerous injection moldingmachines, achieving a superior level of automaticcontrol and monitoring, while fulfilling therequirement for uninterrupted 24-hour production.Energy conservation: This system necessitates onlya single operator to manage the feeding needs ofthe entire workshop. Furthermore, it reduces thenecessity for raw material bags and associatedauxiliary equipment situated near the injectionmolding machines, thereby enhancing spaceutilization. Additionally, centralized power feedingcontributes to significant electricity savings.
High safety: The injection molding manipulatoreffectively replaces human labor in removingproducts from molds, thereby eliminating potentialsafety hazards such as worker injuries.Prevention of product damage: In the event thatthe manipulator fails to retrieve the product, it isprogrammed to automatically trigger an alarm andshut down, preventing any potential damage to themold.Stable quality: Since the manipulator removesproducts at a predetermined and consistent time,it ensures the uniformity and stability of productquality.
Amidst the continued advancements in network information technology, Industry 4.0, the industrial internet, the internetof things, big data, cloud computing, and artificial intelligence have garnered robust fundamental support. Consequently,the urgency for the digital transformation has escalated. Commencing in September 2023, Huaming's Fengxianproduction base embarked on the research and blueprint design for the MES system, culminating in its trial operation inNovember. This system encompasses data collection from over 300 pieces of equipment and workstations, including 28diverse functional and management modules.Huaming seamlessly integrates MES with ERP to facilitate the scheduling of intelligent workshop production plans.MES interprets the production management plans within the ERP system and translates them into practical workshopproduction plans. Upon receiving directives from the ERP system, MES promptly transforms the primary production planinto executable digital instructions tailored for the workshop, leveraging technical documents like product processingprocess flows. Concurrently, MES accurately disseminates the production plan to processing personnel and workstations,taking into account the workshop personnel's production capacity, intelligent equipment, and the production line'swork cycle. Information pertaining to logistics, processing progress, component processing status, product assembly,and warehousing is fed into MES via 5G+ related equipment, while processing quality information data is synchronizedinto MES through 5G+ detection equipment. This achieves a seamless, bidirectional connection between the ERP mainproduction plan and the MES plan scheduling, ultimately realizing the integration of MES and ERP. By integrating thesesystems, Huaming ensures the smooth flow of workshop processing data throughout the entire system, fosteringinformation traceability and application, and enabling digital and visual progress management for the enterprise.Huaming has achieved a comprehensive informatization across all workshops and stages, from raw materialprocurement to parts warehousing, leveraging the MES system. This system enables seamless querying and monitoringof the production status of parts in each workshop, as well as tracking the completion status of various productionbatches. Additionally, a unified production scheduling platform has been established for application across all workshops,providing real-time control and management of production progress in each factory. This platform assists the productionmanagement department in gaining a comprehensive understanding of the overall progress of production capacity andtasks across all workshops.
Case Study: Smart Manufacturing (MES System)
Huaming actively implements the intelligent manufacturing strategy to bolster the competitiveness of its product qualityand service offerings. Focusing on the seamless integration of digital intelligence technology with electrical equipmentmanufacturing, Huaming vigorously promotes intelligent manufacturing practices, comprehensively enhances data utilization,and endeavors to chart a clear path for digital transformation.
DIGITAL AND INTELLIGENT PRODUCTION
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Environmental, Social andGovernance (ESG) Report
2023
Huaming has integrated a HR management system, namely Payroll Service, which has achieved digital managementacross various aspects of human resources, including organizational structure, personnel records, compensation, andmore. This transition has led to significant gains in work efficiency and data accuracy. The system's ability to integratevarious types of data further provides crucial support for the decision-making processes.The system offers timelyand convenient assistance for contract signing, employee information updates, automatic salary calculations, and taxwithholding, optimizing employee management while ensuring compliance with legal regulations. The digitization ofvarious personnel management processes has also reduced the reliance on manual operations and paper documents,resulting in cost savings.
Case Study:China Merchants Bank- Payroll Service HR Management System
The introduction of the Kingdee management software system is a pivotal strategic move for Huaming to elevatethe operational efficiency and competitiveness. This system markedly boosts operational efficiency and accuracy byautomating business processes, integrating internal resources, optimizing financial management, refining supply chainmanagement, strengthening customer relationship management, and offering decision-making support. Additionally, theKingdee system boasts robust data security measures, safeguarding the security and integrity of Huaming's data. Beyondoptimizing business processes, the Kingdee system also enhances collaboration efficiency among employees and theeffectiveness of training, thereby granting Huaming a comprehensive competitive edge and an elevated market position.
Case Study: Kingdee Management Software
The introduction of an OA system can significantly enhance Huaming's operational efficiency, enabling office processautomation, bolstering internal communication, optimizing resource allocation, standardizing business processes, andproviding crucial data support for management. This ultimately enables Huaming in achieving sustainable developmentand bolstering its competitiveness.
Case Study:OA System
During the reporting period, Huaming made significant strides in enhancing the efficiency and precision of toolmanagement by adopting smart tool cabinets as a replacement for manual management. These cabinets, equipped withintelligent access and monitoring systems, ensure accurate classification, storage, and tracking of tools, thus reducingthe time spent searching for and replacing tools, and optimizing production workflows. Furthermore, the smart toolcabinets aid the Company in mitigating issues such as over-purchasing and inventory backlog through precise inventorymanagement, resulting in cost savings. Additionally, they bolster workplace safety by preventing improper tool usage andpotential accident hazards.
Case Study: Smart Tool Cabinet Management
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Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
ENHANCING COLLABORATIVE PARTNERSHIPSHuaming steadfastly embraces the new development concept, integrates its advantageous resources, and actively pursuesdiversified cooperation with governments, renowned enterprises, research institutions, and other stakeholders. This collaborationaims to continuously foster strategic partnerships across various aspects, fields, and depths, achieving mutual benefits,information sharing, and win-win outcomes in terms of resources. Huaming strives to grow alongside its development partners,fostering a symbiotic and prosperous ecosystem.
During the reporting period, Huaming formalized a Strategic Cooperation Framework Agreement with China ElectricEquipment Group Supply Chain Technology Co., Ltd. Centering on the core product of on-load tap-changer, the partieshave deepened their strategic collaboration, jointly upholding the principles of "mutual trust, continuity, and stability"in their cooperation. Under this agreement, Huaming aims to enhance its decision-making mechanisms for centralizedprocurement and individual contract execution, thus offering improved-quality products and services to the variousproduction entities under the umbrella of China Electric Equipment Group.Following the successful conclusion of the signing ceremony, the delegation led by China Electric Equipment Groupleaders toured Huaming's comprehensive production base in Fengxian, expressing their high regard for the company'sexceptional production capacity and technological prowess. Going forward, the parties will foster a multifaceted andmutually beneficial relationship encompassing technology-driven advancements and supply chain development, strivingto achieve a new level of enterprise collaboration and industrial synchronization.
Case Study: Signing a Strategic Framework Agreement with CEEC
Signing Ceremony of a Strategic Cooperation Framework Agreement
During the reporting period, Huaming has established a strategic partnership with Han's Laser, aiming to jointly developan intelligent laser cutting production line specifically designed for H-shaped steel. In recent years, China's steelstructure industry has witnessed remarkable growth. However, H-shaped steel, a crucial construction material, stillfaces challenges in terms of efficiency, energy consumption, and processing accuracy. The newly developed lasercutting production line addresses these issues effectively. It offers capabilities such as hole cutting, material cutting,and beveling for H-shaped steel, delivering unparalleled production efficiency, precision, stability, and reduced energyconsumption. This innovation holds significant potential for enterprises to cut costs and enhance their competitiveedge. The strategic cooperation with Han's Laser marks a significant step forward in promoting intelligent and efficientproduction within the steel structure industry in China.
Case Study: Signing a Strategic Cooperation Agreement with Han's Laser
Signing Ceremony of a Strategic Cooperation AgreementHuaming's wholly-owned subsidiary has embarked on a profound collaboration with Shandong Jiaotong University and otherinstitutions, fostering a robust college-enterprise cooperation. This collaboration has been mutually beneficial, as Huaminghas gained valuable insights and innovative ideas from the fresh perspectives of faculty and students. Additionally, theengagement in practical projects has nurtured a cadre of industry-savvy professional and technical talents. This seamlessintegration of education and practical application has not only bolstered the technological innovation capabilities but alsolaid a solid foundation for executing its long-term talent development strategy. During the reporting period, Huaming engagedin technological collaboration with Xi'an Jiaotong University to conduct joint research on the optimal parametric selectiontechnology for the wiring configuration of 35kV and 10kV on-load tap-changer switching test loop equipment. As a result,simulation software was developed to simulate the switching process of various models of vacuum on-load tap-changers.INTELLECTUAL PROPERTY MANAGEMENTHuaming adheres strictly to the legal frameworks outlined in theTrademark Law, Patent Law, and Copyright Law of thePeople's Republic of China.It views intellectual property protection as a fundamental driver of innovation and a crucial factorin maintaining its competitive edge. Huaming has established a comprehensive suite of internal regulations, encompassing thePatent Management System, Intellectual Property Management System, and an Intellectual Property Emergency Plan. It activelypursues patent filings and software copyright registrations with government authorities, ensuring comprehensive protection ofits intellectual property. Simultaneously, the Company respects and avoids infringing on the intellectual property rights of others,fostering a corporate culture that respects knowledge, encourages creativity, and champions innovation.
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Environmental, Social andGovernance (ESG) Report
2023
As of the end of the reporting period, a total of
patents have been granted authorization, including
invention patents. Additionally, Huaming has obtained
software copyrights and
trademarks.
Key Performance Indexes
In order to reinforce its supplier management, Huaming has established a supplier management team comprising theprocurement department, technical department, process department, and quality department. Huaming has developed a set ofworking documents, including the Supplier Management System, Procurement Control Procedures, and Contract ManagementProcedures. These documents outline the fundamental principles, responsibilities, development methodologies, monthlyappraisals, regular assessments, and the utilization of evaluation outcomes, as well as the maintenance of supplier relationshipswithin the context of supplier management. These documents serve as a guide for the development, assessment, evaluation, andmaintenance of suppliers.
The procurement department submits a listing of potential suppliers, and thesupplier management team performs an initial assessment to finalize the potentialsuppliers.
Documents including the Basic Information Survey Form for External Suppliersand Production Capacity Survey Form for External Suppliers are dispatched to thepotential suppliers.The suppliers are requested to provide copies of their enterprise legal personbusiness license, tax registration certificate, and copies of special product businesslicenses, among other pertinent materials.
SUPPLIER EVALUATION
SUPPLIER ASSESSMENT
SUPPLIER RELATIONSHIP MAINTENANCE
Contractor Safety TrainingThe Quality Department organizes Training on the ISO9001
Quality System Standard for Suppliers
Supplier Selection Mechanism
The procurement department coordinates with the supplier management team tosift through the potential suppliers and identify those suppliers that require closerscrutiny.The Application Form for Trial Utilization of External Suppliers (Application Form forTrial Utilization of External Purchase Suppliers) is then completed, along with theattachment of the supplier's information.
Huaming facilitates regular and on-site supplier evaluations, overseen by the procurement department and executed by adesignated representative from the supplier management team. This rigorous process ensures the consistent and steadyimprovement of material quality from our primary suppliers, aligning with the stringent quality standards. Suppliers whofail to meet these standards are temporarily excluded from the List of Qualified Suppliers. Subsequently, the suppliermanagement team reaches a consensus and completes the Application Form for Cancellation of Unqualified Suppliers.
The supplier management team performs monthly assessments of suppliers, referencing the List of Qualified Suppliers.These assessments are comprehensive, encompassing the qualification rate of inspections, the promptness of delivery,the quality of service, and the price level. Based on these comprehensive metrics, the Monthly Supplier Assessment Formis then duly completed.
Annually, the quality department organizes educational sessions for suppliers, focusing on the ISO9001 quality systemstandard. Suppliers are encouraged to devise implementation plans aligned with this standard. Whenever necessary,support is extended to assist suppliers in establishing and enhancing their quality assurance systems, thereby elevatingthe quality of their offerings. Concurrently, the procurement department hosts at least two supplier meetings per year,fostering effective communication and collaboration between both parties.
SUPPLIER MANAGEMENTOPTIMIZING SUPPLY MANAGEMENT
On November 30, 2023, Huaming participated in the event focused on the moderncollaborative activities in industrial chain integration within State Grid's groundbreakingnew power system. Alongside the press conference unveiling the open cooperationinitiative for this industrial chain, the gathering served as a supporting theme activityfor the inaugural Chain Expo. The objective of this gathering was to foster a professionalplatform that encourages mutually beneficial collaborations and win-win outcomesbetween upstream and downstream enterprises across the industrial chain. Additionally,it aimed to provide upstream, midstream, and downstream enterprises with market,cooperation, and innovation opportunities to collaborate and grow together, ultimatelyenhancing the stability and fluidity of the global industrial chain supply chain. Over300 representatives from state-owned enterprises, industry associations, think tanks,universities, research institutions, and other entities attended this significant event.
Case Study: in the Modern Collaborative Activities in Industrial ChainIntegration of State Grid's New Power System
Improving Environmental ManagementDeepening Energy Conservation andEmission ReductionConsolidating Three Wastes ManagementImplementing Green Operations
ENVIRONMENTALPROTECTION ANDIMPLEMENTATION OF LOW-CARBON DEVELOPMENTAdhering to the concept of green development, Huaming is committed to promoting theharmonious coexistence between human beings and nature. Huaming attaches greatimportance to environmental management, constantly improves its environmentalmanagement system, vigorously promotes energy conservation, emission reduction, andwaste management, and fulfills the relevant requirements of national environmentalmanagement regulations with practical actions. Huaming regularly carries out environmentalrisk factor assessment and detection and hidden danger inspections, establishes acomprehensive emergency management system. Through continuous environmentaleducation and training, Huaming actively cultivates employees' profound awareness ofenvironmental protection.
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
4546
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
IMPROVING ENVIRONMENTALMANAGEMENT
DEEPENING ENERGY CONSERVATIONAND EMISSION REDUCTION
Huaming remains steadfast in pursuing green development, adhering strictly to national laws and regulations, including theEnvironmental Protection Law, the Law on Environmental Impact Assessment, the Regulations on Planning EnvironmentalImpact Assessment, and the Measures for the Administration of Ecological and Environmental Standards. Drawing uponinternational standards like ISO14001 and integrating them with our company's unique context, Huaming formulated acomprehensive suite of environmental management documents. These documents include the Quality/Environment/Occupational Health and Safety Management System Manual, outlining our holistic approach to sustainability, the Procedurefor Identification and Evaluation of Environmental Factors, guiding our assessment of potential environmental impacts, theRegulations on Environmental Protection Responsibility, clarifying individual and collective duties in environmental stewardship,the Regulations on Environmental Protection Management, establishing a framework for our daily environmental practices, andthe Regulations on the Storage Places of Hazardous Wastes, ensuring the safe and compliant handling of hazardous materials.These regulations have not only clarified our organizational structure and responsibilities but have also institutionalized ourenvironmental management practices, ensuring a standardized and consistent approach across all our production activities.Huaming and its major subsidiaries have successfully obtained ISO14001 Environmental Management System certification duringthe reporting period.
According to Huaming's size and unique business attributes, a comprehensive and hierarchical environmental managementorganizational structure has been erected. This structure aims to designate clear responsibilities and duties for environmentalmanagement, reinforce accountability for environmental stewardship, and comprehensively enhance the company'senvironmental protection efforts.
ISO14001 Environmental Management System Certification
Environmental Management Structure
General Manager
As the primary individual accountable for the environmental protection, theGeneral Manager bears full responsibility for overseeing all aspects of theenvironment protection.
Department Leaders in ChargeLeading the Safety and Environmental Protection Department, theseleaders are tasked with regularly developing environmental protection workplans, promptly examining and analyzing critical environmental issues, andformulating measures and solutions to address environmental challenges.Technical Leaders in ChargeThese leaders ensure that newly constructed, reconstructed, and expandedengineering projects comply with legal environmental impact assessments.They organize and facilitate the upgrading of the company's pollutionprevention and control equipment technology.Head of Safety and Environmental Protection DepartmentBearing sole responsibility for the environmental protection duties of theSafety and Environmental Protection Department, this individual oversees andguides the environmental protection efforts of various departments withinHuaming.Workshop DirectorAs the primary individual responsible for the environmental protection workwithin the workshop, the Workshop Director organizes and implementsHuaming's environmental protection management system and workrequirements, ensuring compliance and effectiveness.
Huaming remains vigilant in addressing and responding to unforeseen environmental emergencies. It continually enhances itsrisk mitigation and environmental contingency mechanisms while disseminating and executing the Emergency Response Planfor Unexpected Environmental Events across all subsidiary and production units. Actively engaging in risk screening initiatives,Huaming thoroughly evaluates and catalogues the findings, pinpointing exemplar environmental hazard scenarios. Additionally, itestablishes dedicated emergency response teams, equips them with comprehensive emergency facilities and essential supplies,regularly conducts emergency drills, and takes proactive measures to prevent and mitigate various accidents. Furthermore,the Company places significant emphasis on fostering employees' awareness of environmental risk prevention and control. In2023, all subsidiaries have implemented environmental protection training programs aimed at bolstering the environmentalconsciousness and management capabilities of all personnel.
Environmental Protection Training
In terms of energy management, Huaming has established a comprehensive energy management system, drawing upon theframework of its environmental management system. This system is complemented by institutional documents, including theEnergy Resource Management System, designed to continuously foster innovative enhancements in energy efficiency, emissionreduction, and resource preservation. Additionally, designated personnel are tasked with regularly documenting and analyzingthe utilization of energy resources, ensuring the effective stewardship of energy.
ENERGY CONSERVATION TRANSFORMATION
Aligned with national directives on energy conservation, Huaming has formulated stringent energy conservation andconsumption reduction control measures. These measures serve as a standard and guide for energy conservationefforts across the company and its various factories. Annually, based on actual conditions, energy conservationobjectives and improvement plans are outlined. Furthermore, each subsidiary and factory establishes its own energyconservation goals tailored to their specific production and operational landscapes, and continuously tracks theachievement of the goals.
During the reporting period, Huaming embarked on a standardization and modularization drive for product components,significantly enhancing both design and production efficiencies. By uniformly adopting efficient servo motors in the powersystem of processing equipment, energy consumption is significantly reduced while ensuring power output. The servomotors, renowned for their precision control and superior energy efficiency, have been instrumental in boosting the product'smarket competitiveness and aligning with environmental protection policies.
Case Study: Adoption of High-efficiency Servo Motors
4748
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
As part of its ongoing efforts to enhance production capabilities and environmental sustainability, Huaming invested in twostate-of-the-art 800kg resistance furnaces during the reporting period. These modern furnaces, designed with advancedtechnology, aim to improve production efficiency while significantly curbing energy consumption and environmentalpollution. Compared to traditional 3T biomass particle furnaces, the new resistance furnaces offer superior energyefficiency and reduced emissions. The original biomass particle furnaces produced a large amount of exhaust emissionsduring production and operation, but zero exhaust emissions have been achieved after being converted to resistancefurnaces.Their precision temperature control and faster heating capabilities have significantly improved the efficiency andquality of metal smelting, further advancing the green manufacturing transformation.
To mitigate the environmental risks associated with organic exhaust gases (VOCs) emitted during the production cycles,Huaming has invested approximately RMB 4 million in upgrading its exhaust gas treatment equipment. These newfacilities incorporate industry-leading technologies that efficiently convert or decompose harmful substances present inorganic exhaust gases, thereby significantly reducing their atmospheric pollution. Moreover, Huaming has implementedan online monitoring system to ensure continuous compliance with both national and local environmental protectionstandards. This real-time monitoring mechanism not only enhances the controllability and transparency of the entireenvironmental emission process but also significantly boosts management efficiency and response speed.
Case: Upgrading Exhaust Gas Treatment Equipment andImplementing an Online Monitoring System
Huaming strictly adheres to the Environmental Protection Law of the People's Republic of China and the Law of the People'sRepublic of China on the Prevention and Control of Environmental Pollution by Solid Wastes. It has established the Waste ControlProcedure to clarify the regulations governing the entire waste management process, encompassing classification, storage,compliant disposal, and record-keeping. Huaming strives to reduce the generation of pollutants and waste through technologicaladvancements and recycling initiatives.
Huaming rigidly upholds the Law of the People's Republic of China on the Prevention and Control of AtmosphericPollution and other pertinent regulations and policy directives. It implements classified monitoring and treatment forvarious exhaust gases emitted during each production stage, enhancing the quality and effectiveness of ultra-lowemission transformation efforts. Additionally, it intensifies comprehensive measures to tackle atmospheric pollution.Huaming mandates all subsidiaries to comprehensively identify and manage environmental factors. For the primaryexhaust gas pollutants arising from the production process, each facility utilizes online monitoring equipment forreal-time surveillance and control, ensuring 100% compliant emissions. During the reporting period, Huaming activelypursued the transformation and upgrading of ultra-low emissions, encompassing various aspects such as productionoptimization, upgrading, evaluation, and testing.
Huaming implements strict classified management for waste, and divides waste into hazardous waste and general wasteaccording to relevant regulations such as the Law of the People's Republic of China on the Prevention and Control ofEnvironmental Pollution by Solid Waste and the Measures for the Transfer and Management of Hazardous Waste. The Companyhas issued a series of waste management and disposal systems, including the Waste Management Measures and the Solid WasteControl Procedures, to ensure the compliance of waste disposal. For hazardous waste, Huaming tries to reduce the generationof hazardous waste from the source. Each subsidiary has also formulated a list of hazardous waste, clearly recording the typeof hazardous waste, the generation process, the dangerous toxicity, and the disposal unit and method. Huaming has issued theHazardous Waste Management Measures to clarify the requirements for each link of collection, storage, transportation, anddisposal.
Regarding wastewater management, Huaming strictly adheres to laws and regulations,including the Law of the People's Republic of China on the Prevention and Control of WaterPollution and the Regulations on Urban Drainage and Sewage Treatment. It has establishedinternal wastewater management systems to standardize and optimize wastewater treatment.Based on the specific types of wastewater pollutants generated by various productionprocesses within each factory area, Huaming employs tailored and effective wastewatertreatment techniques to ensure that the discharged wastewater meets both national andlocal discharge standards, thereby minimizing its environmental impact. Furthermore, theCompany contracts qualified external environmental monitoring agencies to conduct annualenvironmental monitoring of wastewater discharge at each of its factories.Huaming has constructed efficient wastewater treatment stations, encompassing bothcomprehensive and specialized cyanide-containing wastewater treatment systems. Thecomprehensive system ensures that the treated wastewater attains the required dischargestandards, while the cyanide-containing system effectively eliminates harmful cyanides,enabling water resource recycling. This approach not only mitigates environmental pollution butalso enhances resource efficiency.
Disclosed ItemUnit2023Total amount of solid wasteTon969.29Total amount of general solid wasteTon868.31Recycled amount of general solid wasteTon445
Total amount of hazardous wasteTon100.98Hazardous waste disposal volumeTon100.98Huaming’s solid waste mainly consists of general industrial waste and household waste, as well as paint packaging, residualpaper from paint applications, waste organic solvents, used activated carbon and filtration media for waste gas treatment, wastemineral oil, and cutting fluids resulting from painting and surface spraying operations. It implements source classification,standardized storage practices, and compliant disposal methods. Domestic garbage is segregated and then disposed of by theenvironmental hygiene department. Additionally, general industrial waste, like waste iron filings produced during steel platewelding and part processing, is considered a renewable resource and entrusted to a third-party for comprehensive utilization.Hazardous waste is entrusted to a qualified third-party unit for either comprehensive utilization or proper disposal.
Consolidating Three WastesManagement
Exhaust Gas Management
Waste Management
Wastewater Management
Case Study: Low carbon emissions, more environmentally friendly and safer
4950
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
The previous powder recovery system suffered from inadequate design, leading to inadequate working conditions forstaff, low recovery rates, and compromised quality of the recovered powder. During the reporting period, Huamingembarked on an upgrade of the powder recovery system. The new cyclone recovery system introduced boasts animpressive powder recovery rate of up to 98%, facilitating seamless color changes, eliminating dust spillage, andenhancing powder utilization by 20%. Furthermore, the drying tunnel's length has been optimized, delivering a 20%increase in productivity compared to similarly-sized drying tunnels of other companies, thereby achieving a 20%efficiency boost. Concurrently, the cleaning line's cleaning process has undergone significant improvements andoptimizations, resulting in a notable 33% increase in quality and a remarkable 120% surge in cleaning efficiency. Byembracing comprehensive water reuse strategies, the Company has successfully reduced water consumption by 60%.Additionally, the activity level of the cleaning solution has surged by 300%, indicating a significant enhancement inits cleaning capabilities. These environmental protection efforts have not only minimized operational costs but alsosignificantly reduced the overall operating cost of the production line by 25%.
New Powder Spraying Production Line EquipmentHuaming places significant emphasis on mitigating the environmental impact of office operations and actively aligns withnational initiatives aimed at energy conservation and carbon reduction. It champions the green office concept internally,fostering a culture that prioritizes sustainability. Huaming has established a comprehensive set of internal policies, including theGreen Office Guidelines, which encourage daily practices such as electricity conservation, paper reduction, and environmentallyfriendly commuting methods. These efforts collectively contribute to creating a low-carbon and environmentally consciousoffice environment.
The water resources utilized by Huaming throughout its production and operational processes are sourced frommunicipal water supplies and recycled water. Aligning with the national initiative to foster a water-conservingsociety, Huaming places significant emphasis on the reuse of water resources. Tailored approaches to waterrecycling and reuse are implemented, taking into account the specific conditions of production and operation, toensure efficient utilization, conservation, and safeguarding of water resources. During the reporting period, Huamingand its subsidiaries have embarked on a series of water conservation measures aimed at enhancing the efficiency ofwater utilization and mitigating wastage during the production process. Additionally, to bolster water managementand promote rational water consumption, the Company has established a dedicated water-saving leadership teamresponsible for coordinating and advancing water resource management efforts, revising pertinent policies, andenhancing overall water resource management.
Green Office Initiatives
Green Culture Promotion
Fengxian greening renovation materials
Huaming issues notifications mainlythrough collaborative networksand QQ groups. Documents to bearchived are not printed unlessnecessary, and non-criticaldocuments are printed on the backof waste paper (such as expiredsingle-sided printed materials).Double-sided printing is encouragedfor printing paper, and single-sidedsheets of expired materials (such asbidding documents) can be used forprinting on the reverse side.
Office lighting has been adjustedfrom two lights to one, and energy-efficient LED lights are used. Duringthe summer, air conditioning mayonly be used when the indoortemperature exceeds 32°C fromJune 1st, and the set temperaturemust not be lower than 26°C. Duringthe winter, air conditioning may beused when the indoor temperature isbelow 15°C starting from November15th, and the set temperature mustnot exceed 18°C.
When employees go out to workand a few work overtime, Huamingencourages them to use electricvehicles for transportation.
Advocating Green OfceAdvocating Electricity ConservationAdvocating Green TransportationImplementing Green Operations
Water Resource Management
Green Office
Case: Updating the Powder Spraying Line
VV
Standardizing Employee EmploymentSafeguarding Employees' Rights and InterestsEmphasizing Talent CultivationImplementing Employee CareOccupational Health and Safety
EMPOWERING TALENTS ANDFORGING AN EXCEPTIONALDEVELOPMENT PLATFORMHuaming profoundly recognizes the significance of talent in driving the enterprise's high-quality development. Therefore, it adheres to an employment philosophy that emphasizesexcellent character, collaborative team spirit, professional excellence, and strong serviceawareness. Huaming comprehensively safeguards employees' rights and interests,establishes a fair and equitable employment management system, provides personalizedtraining and logical promotion mechanisms, creates a secure working environment, andcultivates an open, inclusive, and diverse cultural atmosphere. In addition to planningemployees' career development, the Company also pays close attention to their physical andmental well-being.
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Huaming adheres strictly to laws and regulations such as the Labor Law of the People's Republic of China, the Civil Code of thePeople's Republic of China, and the Personal Information Protection Law of the People's Republic of China. It ensures that jobapplicants and employees are treated without discrimination based on factors such as skin color, ethnicity, race, nationality,social background, disability, religious belief, gender, marital status, or age. Huaming prohibits the employment of child laborand firmly opposes any form of coercion that restricts employees' physical and mental freedom or forces them to perform tasksagainst their will. Additionally, the Company respects employee diversity and strives to create an inclusive work environment.Huaming has crafted a comprehensive suite of employment-related policies and regulations, encompassing the ProtectionSystem for Female and Minor Workers, the Regulations on Labor Contract Management, the Employee Recruitment and HiringMeasures, as well as the Employee Resignation Management Regulations, among others. These policies aim to standardize andconsolidate the recruitment process, along with various employment matters, ensuring a seamless and compliant workflow.During the reporting period, Huaming has maintained a zero-tolerance policy towards any instances of employing or utilizingchild labor or forced labor.Key Performance Indexes
Standardizing Employee Employment
Safeguarding Employees' Rights andInterestsHuaming upholds the people-centered principle, safeguarding and protecting employees' legitimate rights and interests. It hasestablished comprehensive rules and regulations such as the Salary Calculation and Payment Policy, Overtime AdministrationGuidelines, Attendance Management Policy, Implementation Measures for Paid Annual Leave, and Employee WelfareManagement Framework covering areas like working hours, compensation, welfare, vacations, and performance. Huamingcontinuously enhances its salary and welfare system and democratic management mechanisms, aiming to boost employees'sense of job security and strengthen their sense of belonging and identification.
Huaming endeavors to establish medium- and long-term incentive mechanisms to effectively spark the enthusiasm andcreativity among its outstanding employees. To enhance adaptability to market fluctuations and enterprise growth aspirations,Huaming has introduced a tailored broadband compensation policy that caters to the factory's functional requirements. Thispolicy underscores the pivotal role of personal capabilities and performance within the compensation framework, motivatingemployees to consistently upgrade their work abilities and skills, thereby fostering the mutual progress of both individualsand the organization. The broadband compensation policy comprises two principal components are compensation andwelfare. Regarding compensation, it encompasses basic salary, performance-linked incentives, and annual bonuses, aiming tocomprehensively capture employees' work contributions and value, fostering a culture of hard work and reward. On the welfarefront, Huaming offes benefits such as staff housing, rental subsidies, and commercial insurance, alongside human-centricservices like birthday celebrations, residence registration assistance, and staff cafeterias. Additionally, regular training sessionsand free skill enhancement opportunities are provided to enhance employees' professional proficiency, fostering a sense ofbelonging and satisfaction.In determining job roles and salary scales, Huaming takes into account employees' job responsibilities, capabilities, andperformance, while referring to the salary policy and industry benchmarks to ensure the fairness and competitiveness ofcompensation, enabling employees to reap the benefits of the Company's growth.Through the implementation of this broadband compensation policy, Huaming has not only broadened the compensationspectrum and enriched welfare provisions for employees, but also achieved noteworthy outcomes in harnessing employees'potential and fostering greater work enthusiasm, laying a robust foundation for the Company's sustained development andenhanced market competitiveness.1,631
Total number of employees
Female employees
Total number of managers
Female managers
Major labor disputes
%Social insurancecoverage rate
%Labor contractsigning rate
%Employee welfarecoverage rate
Salary and Welfare
Huaming upholds the principles outlined in the Law of the People's Republic of China on Trade Unions, the Constitution of theChinese Trade Unions, and the Regulations on the Congress of Grassroots Trade Union Members. It establishes trade unions andimplements the Trade Union Funds Management System to ensure transparency and accountability. In promoting employeecommunication, Huaming resolutely safeguards employees' rights to be informed, participate, and oversee operations. Thetrade union committee handles employee inquiries, complaints, and accusations, mediates labor disputes, and employees canalso raise grievances with the labor inspection committee. As of the end of the reporting period, all employees of Huaming'smajor subsidiaries were members of the trade union.
As the business continues to grow and the workforce expands, Huaming recognized the importanceof ensuring both the operational stability of the organization and the safeguarding of employees'rights and interests. Therefore, during the reporting period, Huaming conducted a thorough andcomprehensive analysis of its commercial insurance needs, taking into account the businessscale and the number of employees. This analysis led to the provision of multi-faceted protections,including medical, accident, and pension coverage, to employees. Such coverage covers expensesarising from major illnesses or hospitalizations, effectively mitigating the risks faced by employees.This not only allows employees to focus on their work with greater peace of mind but also ensuresthat the insurance purchased aligns with the actual needs.
Commercial Medical Insurance
Democratic Management
Case Study: Implementing Third-Party CommercialMedical Insurance for Employees
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Emphasizing Talent CultivationHuaming holds a profound commitment to enhancing the capabilities and career development of its employees. It continuouslyexplores innovative talent cultivation strategies, leveraging management and professional skills training to elevate the overallquality of its workforce. Simultaneously, it creates a conducive environment for talent growth, providing ease and convenienceacross all levels.
The construction of a talent echelon is a crucial driver for the sustainable development of Huaming. Given the intricate operationsacross the entire industrial chain, Huaming recognizes the significance of investing in talent acquisition and cultivation. As aresult, Huaming has established a unique talent echelon system, where its core competitiveness stems from the integrationof management and professional capabilities and the employees with potential are precisely identified and nurtured through asystematic approach. The implementation of a dual-track career development path facilitates the mutual integration of skills,supporting employees' personal growth and contributing to the enterprise's sustained innovation vitality and competitive edge.This aligns with the evolving needs and promotes its diversified development.Huaming upholds the talent philosophy of "recruitment, optimal utilization, and retention" and strive to attract and retain theindustry's top talents. Considering the unique nature of our industry, where small-batch customization and consistent productquality are fundamental, the employees must possess exceptional skills, a rigorous work ethic, and a constant pursuit of
EmployeeDevelopment
Huaming places significant emphasis on nurturing employees' lifelong employment.Tailored to diverse talents, it has established a comprehensive employee growthmechanism, enhancing a comprehensive performance management system coveringall employees. This system aims to fully ignite the vitality within the workforce.Furthermore, the Company has outlined distinct career development paths with definedobjectives, effectively broadening the growth horizons for employees and fostering anenvironment where everyone can maximize their talents and expertise.
Talent echelon construction
Supervisor
DepartmentHeadSpecialis
AssistantDirector
DeputyGeneralManager
Employee career development paths:
EmployeeTraining
Training Control Procedure. Through a blend of online and offline platforms, it conductsdiverse training programs such as job skills enhancement, three-tiered training fornewcomers, new technology workshops, apprenticeship programs, and overseaselectrical technology training. These initiatives aim to optimize job skills and foster teamcohesion.
improvement. Huaming continuously enhances skill training and quality awareness education, ensuring that every aspect of theoperations meets the highest quality standards.Huaming has undertaken a series of initiatives to effectively enhance the functions and roles of the human resources. Foremployees, Huaming has established educational and vocational skill enhancement plans, alongside tailored programs for talentpromotion. To achieve this, Huaming offers not only competitive salaries and benefits but also prioritizes employees' careerprogression and skill development. By establishing a comprehensive training framework and providing diverse career pathways,Huaming ensures that every individual can discover their growth potential and realize their ambitions within the organization.
During the reporting period
Internal and external training in total
Accumulated number of participants
3591
Training coverage rate
Over 85%
During the reporting period, Huaming adheres to relevant national policies on apprentice development, leveragingthe strengths of technical colleges in skilled talent training. It embarked on a school-enterprise collaboration withJinan No.2 Machine Tool Technical School for the training and development of new apprentice staff. This encompassed38 employees across two job roles, namely fitter and electrician. The scope of training encompassed a diverse arrayof courses, including general quality development courses such as professional basics, safety production norms,professional ethics, mental health education, human resource management, and modern enterprise systems.Additionally, there are practical operation courses tailored to enhance hands-on skills. To ensure the effectiveness of thetraining, a dedicated trainer formulated a bespoke New Apprenticeship Training Plan. This plan was crafted through a mixof field research, thematic discussions, school-enterprise dialogues, and expert guidance. The curriculum was structuredinto three key components, 12% dedicated to general vocational quality courses, 28% to professional basic courses,and 60% to operational skills courses respectively. The training significantly elevated the comprehensive quality of theemployees, actively contributed to the development of a robust corporate culture, and established a solid talent pool tosupport the company's sustainable growth.
Case Study: Enhancing Employee Skill Levels throughNovel Apprenticeship Training
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Professional Knowledge TrainingTool TrainingHydraulic Knowledge TrainingCompany Policy Training etc
Etiquette TrainingReceiving BusinessCard EtiquetteCustomer RelationshipMaintenance Training
On-the-Job Training
Electrical Work On-the-Job TrainingFitter On-the-Job TrainingTraining System and Content
Elevation of Career CredentialsProfessional Qualification Certificate
Continuing Education to Enhance Academic QualificationsImprovement of On-the-Job Professional Skills
Machining Certification TrainingPractical Skills Training
Huaming offers a comprehensive range of welfare benefits to its employees, encompassing birthday greetings, transportationallowances, and housing subsidies. Annually, during the celebration of International Women's Day, Huaming arranges for physicalexaminations for its female workforce. In times of illness, when an employee or their immediate family member requireshospitalization, Huaming extends its support through condolence gifts. For newlywed young employees, the Company presentscongratulatory gifts to mark this special occasion. In the event of the passing of an employee or their immediate family member,the Company provides funeral gifts as a token of condolence. Moreover, the union conducts regular visits and offers condolencesto families experiencing extreme poverty, addressing their daily challenges with compassion and support. For families that meetthe criteria, the union facilitates the application process for a local certificate of extreme poverty, enabling them to accessgovernment benefits and subsidies.Concurrently, Huaming promotes a healthy work-life balance for its employees. It actively organizes a diverse range of culturaland sports activities, including basketball tournaments, handicraft workshops, badminton competitions, and staff gatherings.These activities not only create avenues for employees to pursue their interests and hobbies but also enrich their leisure time,contributing to their overall physical and mental well-being.
Basketball Competition
Safety Buckle Handcraft Activity
Visit to Coin Mint
Employee Networking Activities
Implementing Employee Care
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Huaming strictly adheres to the Law of the People's Republic of China on Safe Production and the People's Republic of China'sOccupational Disease Prevention and Control Law, along with other pertinent legal provisions. The Company strives to continuallyenhance our safety management framework and effectively enforce safety production policies, prioritizing the well-being of ouremployees. The goal is to establish a comprehensive health management system that offers comprehensive safeguards for theoccupational health and safety of our workforce.The occupational health and safety management system is comprehensive, encompassing objective systems, responsibility andinstitutional frameworks, inspection and evaluation mechanisms, as well as systems for training improvement and addressingpotential hazards. Annually, we outline our safety and environmental protection targets, tasks, and measures, which arethen monitored monthly through rigorous 6S inspections and assessments. We have compiled the Safety and EnvironmentalProtection System Compilation as a authoritative guide for safety management. Additionally, we have established and refinedour safety production responsibility system, specifying the roles, responsibilities, reward and punishment criteria for designatedpersonnel, and overseeing performance appraisals. During the reporting period, Huaming also organized the revision andformulation of various systems, including the Fire Safety Responsibility Regulations, Safety Production Reward and PunishmentRegulations, and the Regulations Concerning Morning Meetings and Post-Work Production Site Management.
Safety Production Objectives for FIN CNC Subsidiary in 2023
Achieve a 100% signing rate for safety, fire protection, and environmental protection responsibility letters.Ensure a 100% signing rate of safety, environmental protection, and occupational health responsibility agreementswith all relevant parties.Maintain a 100% education and training rate for enterprise managers, new hires, and personnel engaged inspecialized operations,
Zero major accident hazards
Secure a 100% inspection qualification rate for special equipment
Maintain a 100% qualification rate for fire-fighting facilities and equipment.
along with a 100% safety education coverage for all employees.
achieve a 100% rectification rate for identified hidden dangers.
a 100% qualification rate for special operation personnel holding valid certificates.
Ensure a 100% qualification rate for occupational hazard detectiona 100% occupational health examination rate.
Occupational Health and Safety
Safety Production
Huaming's legal representative serves as the primary individual accountable for safety production and occupational health,overseeing the organization and implementation of pertinent national laws and regulations. Managers across all levels areentrusted with the tasks of planning, arranging, inspecting, summarizing, and evaluating safety-related endeavors, ensuring boththeir own and others' personal safety and occupational health.Annually, Huaming produces a comprehensive "Safety and Occupational Health Management Review Report" at the beginningof each year. This report identifies and evaluates potential hazards within the organization through a rigorous process of riskidentification and evaluation. Subsequently, a risk inventory is compiled to address these hazards. Utilizing the job hazardanalysis method known as LEC, the Company performs accident risk assessments on the identified hazards. Based on itscapability to respond to unexpected safety production accidents, the Company also devises the necessary types and frameworksfor safety production emergency plans. As of the end of the reporting period, Huaming invested approximately RMB 2.27 million insafety production endeavors, achieving zero major safety production accidents and no work-related injuries or fatalities.
ISO 45001:2018 Occupational Health and Safety Management System Certification
Safety Education and TrainingHuaming has instituted a comprehensive training program dedicated to occupational health and safety. This program involvesorganizing all employees to engage in studies and assessments, ensuring they are thoroughly acquainted with their job-specificsafety responsibilities and potential hazards. Through this training, employees' safety awareness and skills are significantlyenhanced.
Safety Education and Training
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Promotion of Safe Production CultureSafety Emergency DrillsAs part of its annual endeavors, Huaming organizes a series of promotional activities under the banner of Work Safety Month.This year's activities including various initiatives such as conducting safety meetings, screening promotional videos and TVprograms, executing 6S inspections for safe production, organizing risk assessments and hazard inspections across departmentsin alignment with the "dual system" requirements, staging emergency drills for safe production, and hosting safety knowledgecompetitions. These endeavors aim to disseminate knowledge about safe production, foster a strong culture of caring for andparticipating in safe production, and facilitate the resolution of underlying issues pertaining to safe production.
During the reporting period, Huaming has further reinforced its emergency management framework by establishing emergencyresponse plans for safety-related incidents and refining the Emergency Response Plan for Production Safety Constructors.Huaming has enhanced its safety emergency response plans through three key areas including comprehensive emergency drills,tailored emergency rescue plans and site-specific disposal protocols. Furthermore, Huaming has seamlessly integrated itsemergency drills with the actual production and operational scenarios, executing targeted and diversified exercises that coveron-site fire extinguishing, mechanical injury response, heatstroke management, as well as comprehensive emergency drills andfire evacuation simulations.
Safety Production Inspection
Work Safety Month
Safety Promotional Videos
Fire Emergency DrillMechanical Injury Accident Emergency Drill
Huaming strictly adheres to the provisions of the Lawof the People's Republic of China on the Prevention andControl of Occupational Diseases and other relevantlaws and regulations. It has developed comprehensivemanagement systems, including the OccupationalHealth and Safety Operation Control Procedures and theIntegrated Management Manual for Quality, Environment,and Occupational Health and Safety. The Company regularlyorganizes health screenings for its employees, maintainscomprehensive health records, and provides them with laborprotective equipment, facilities, and tools that meet thestandards for occupational health protection. This ensuresthe comprehensive safeguarding of employees' occupationalhealth.
Occupational Health Archive Establishment Training
Occupational Health Protection
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Identication and Management of Occupational Hazard Factors
Workshop on-site 5S management and continuous improvement work
During the reporting period, Huaming embarked on the implementation of the "Safe Occupational Health System" initiative.This involved a thorough evaluation and hazard assessment of the production site, encompassing equipment and facilities,workplaces, as well as operational procedures. Critical operational points posing a potential risk of major accidents weredesignated as safety control points and incorporated into the List of Major Hazard Factors for enhanced management.Furthermore, Huaming conducted comprehensive assessments of its "basic safety management" practices and "occupationalhazard risks". The corresponding evaluation materials, including reports, were made accessible to all employees, ensuring theircomplete understanding and adherence to the stipulated requirements.
Since the implementation of 5S management in the workshop, Huaming has consistently adhered to the core principles of"organizing, rectifying, cleaning, and cultivating skills", comprehensively promoting the standardization and normalization of on-site management. As a result, the workshop's on-site environment has undergone significant improvements, leading to enhancedwork efficiency and product quality. Through continuous 5S training and practical activities, Huaming has strengthened the self-discipline and teamwork spirit of its employees, fostering good work habits.
Hazard Identification and Elimination Statistics
Problem Description
Problem Description
Measures
Measures
5S Purpose
5S Purpose
Rectication Evaluation
Rectication Evaluation
Using a 3T biomass particle reflection furnace:
1. High environmental pollution: dust and smoke
permeating all over the workshop
2. The flame directly faces the inside of the furnace,
causing great harm to the molten aluminum, andthe quality is not guaranteed
3. The annual maintenance cost is approximately
RMB 120,000 per year
The centralized dust suction effect of theoriginal grinding workstation was not good:
The operators were covered in aluminum ashall over their heads and facesIt does not comply with environmental impactassessment standardsIt does not comply with dust explosion-proofrequirements
Replacement withresistance furnaces
With the usage of wetgrinding workstations,dust removal can beachieved on a singlemachine
Improving theenvironment ofthe production siteand ensuring theproduct quality
Improving theenvironment of theproduction site andeliminating safetyhazards
Effective
Employee feedbackindicates reducedinhalation of dust. Itmeets the requirementsof "safety andenvironmental impactassessment"
Before improvement
Before improvement
After improvement
After improvement
Rural Revitalization in ActionBuilding a Warm Community
CONTRIBUTING TO SOCIETYAND FORGING A BRIGHTERFUTURE TOGETHER
As Huaming strives for economic prosperity, it remains committed to fulfilling its socialobligations, dedicating itself to public welfare, and promoting societal progress. Huamingconsistently contributes to building a harmonious and beautiful society, achieving aharmonious balance between social and economic values.
Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
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Scientific Operation forRobust Governance
Anchoring in Core Business andEnhancing Products and Services
Environmental Protection andImplementation of Low-carbonDevelopment
Empowering Talents and Forging anExceptional Development Platform
Contributing to Society and Forginga Brighter Future Together
Environmental, Social andGovernance (ESG) Report
2023
Huaming actively promotes consumer assistance efforts and takes an active role in various social welfare initiatives, includinginfrastructure development in supported regions. During the reporting period, Huaming collaborated with Xintian TraditionalChinese Medicine Company to participate in the "Adopt an Acre of Dendrobium Nobile" initiative at the Chiyan Field Base inChishui City. By adopting 2 acres of wild Dendrobium Nobile fields, the Company has made a noteworthy contribution to thepursuit of shared prosperity in Chishui.
During the reporting period, Huaming actively engaged in numerous charitable initiatives in Malu Village, Zhuangxing Town,extending its support by donating rice worth tens of thousands of yuan to local residents. This gesture underscores theCompany's commitment to fostering unity and cooperation with the local community in pursuit of a harmonious society. Lookingahead, Huaming remains steadfast in its dedication to societal welfare and giving back, devoting itself to contributing towardsthe revitalization of rural areas in China.
Dendrobium Nobile Adoption and Certification Ceremony
Rice Donation Scene
Love Adoption Certificate
Establishment of an Educational Reward Fund
RMB 3 Million Donations to the Shanghai Children's Foundation
RMB 1 Million Donations to the Chongming GreenLeaf Education Development Foundation
Condolences to Community WorkersCondolences to Elderly Party Members
Huaming remains steadfast in its commitment to public welfare and charity endeavors, embracing the spirit of dedication,friendship, and mutual assistance as the foundation of our charitable journey. We strive to promptly repay society's kindnessthrough meaningful actions, fostering positive interaction and harmonious coexistence with our community, and jointly fosteringa civilized and harmonious social atmosphere. During the reporting period, Huaming made a targeted donation of RMB 500,000through a charity foundation to employees facing familial hardships and those battling major and malignant diseases.
During the reporting period, Huaming demonstrated a proactive approach in engaging with the community through participationin the "Civilized Star Connected Hearts" partnership and various community service initiatives. Our employees made personalvisits to junior-level individuals, extending care and warmth to elderly community members, including those living alone, aswell as dedicated community workers. Furthermore, Huaming actively contributed to the creation of civilized units and urbanbeautification efforts, striving to foster a beautiful and habitable community environment.
Rural Revitalization in ActionBuilding a Warm Community
Safety Production
Community Engagement and Public Service
Huaming and Ruijin Hospital- Shanghai Jiaotong UniversitySchool of Medicine Jointly Set Up the "Huaming Caring forthe Elderly" Fund
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Environmental, Social andGovernance (ESG) Report
2023
Appendix
GRI StandardDisclosureCorresponding Chapter or Section
GRI 2: General
Disclosures
2021
2-1Organizational detailsAbout Huaming2-3Reporting period, frequency and contact pointAbout The Report2-7Employees
Empowering Talents and Forging anExceptional Development Platform2-9Governance structure and composition
Contributing to Society and Forging a
Brighter Future Together2-12
Role of the highest governance body in overseeing the
management of impacts
Contributing to Society and Forging a
Brighter Future Together2-14
Role of the highest governance body in sustainability
reporting
Contributing to Society and Forging a
Brighter Future Together2-22Statement on sustainable development strategyESG Management2-29Approach to stakeholder engagementESG ManagementGRI 3: MaterialTopics 2021
3-1Process to determine material topicsESG Management3-2List of material topicsESG Management3-3Management of material topicsESG ManagementGRI 201: EconomicPerformance 2016
201-1Direct economic value generated and distributedAbout HuamingGRI 205: Anti-corruption 2016
205-2
Communication and training about anti-corruption
policies and procedures
Contributing to Society and Forging aBrighter Future TogetherGRI 302: Energy2016
302-1Energy consumption within the organization
Environmental Protection andImplementation of Low-carbon
Development
Statement of use
Statement of use Huaming has reported the information cited in this GRI Content Index for the period
January 1, 2023 to December 31, 2023 with reference to the GRI Standards.GRI 1 usedGRI 1: Foundation 2021
GRI Content IndexAbout The Report
The scope of disclosure in this report is consistent with the financial information disclosed in the Company's 2023 annual report,while some contents may extend to from previous years’ policies and practices.Report Scope and Boundaries
The data used in this report come from the Company's operational data, publicly accessible government statistics, annualfinancial data and internal statistical reports. The financial data in this report is dominated in RMB. In case of any inconsistencywith the data of the financial report, the financial report shall prevail.Data Source and Description
The content of this report does not contain any false records, misleading statements, or significant omissions. We bear individualand joint liability for the authenticity, accuracy, and completeness of the Report's content.Reliability Assurance
Global Reporting Initiative the Sustainability Reporting Standards (GRI Standards)China National Standard Social Responsibility Report Preparation Guide (GB/T 36001-2015)Chinese CSR Report Preparation Guide issued by the Chinese Academy of Social Sciences (CASS-ESG 5.0)Shenzhen Stock Exchange Shenzhen Stock Exchange Listed Companies Social Responsibility Guideline
Preparation Basis
This report is based on the Company's ESG practice and follows the process of "project approval - collection of materials -preparation and revision - review by senior management - review by the Board of Directors - disclosure to the public". Activecommunications are carried out with relevant stakeholders in the process of project approval, preparation and revision, anddiscuss the structure and contents of the report.
Preparation Process
The electronic version of this report can be accessed from the official website of Huaming (www.huaming.com) and CNINFOwebsite (www.cninfo.com.cn).The Company will continue to improve its reporting disclosure standards and ESG management in the future. If you have anyquestions or suggestions regarding this report, please feel free to contact us at:
Huaming Power Equipment Co., Ltd.Address: No. 977, Tongpu Road, Putuo District, ShanghaiTel: 021-52708824E-mail:dsh@huaming.com
Release Form
This report is the first Environmental, Social and Governance (ESG) report issued by Huaming Power Equipment Co., Ltd.(hereinafter referred to as the "Company") to stakeholders.
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Environmental, Social andGovernance (ESG) Report
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GRI 303: Water andEffluents 2018
303-1Interactions with water as a shared resource
Environmental Protection and Implementation
of Low-carbon Development303-2
Management of water discharge-related
impacts
Environmental Protection and Implementation
of Low-carbon Development303-3Water withdrawal
Environmental Protection and Implementation
of Low-carbon Development
GRI 306: Waste2020
306-1
Waste generation and significant waste-
related impacts
Environmental Protection and Implementation
of Low-carbon Development306-2
Management of significant waste-related
impacts
Environmental Protection and Implementation
of Low-carbon Development306-3Waste generated
Environmental Protection and Implementation
of Low-carbon DevelopmentGRI 308: SupplierEnvironmentalAssessment 2016
308-1
New suppliers that were screened using
environmental criteria
Anchoring in Core Business and Enhancing
Products and ServicesGRI 401:
Employment
2016
401-1
Minimum notice periods regarding operational
changes
Empowering Talents and Forging an Exceptional
Development Platform401-2
Benefits provided to full-time employees thatare not provided to temporary or part-time
employees
Empowering Talents and Forging an Exceptional
Development Platform
GRI 403:
OccupationalHealth and Safety2018
403-1
Occupational health and safetymanagement system
Empowering Talents and Forging an Exceptional
Development Platform403-3Occupational health services
Empowering Talents and Forging an Exceptional
Development Platform403-4
Worker participation, consultation, andcommunication on occupational health and
safety
Empowering Talents and Forging an Exceptional
Development Platform403-5
Worker training on occupational health and
safety
Empowering Talents and Forging an Exceptional
Development Platform403-6Promotion of worker health
Empowering Talents and Forging an Exceptional
Development Platform403-7
Prevention and mitigation of occupationalhealth and safety impacts directly linked by
business relationships
Empowering Talents and Forging an Exceptional
Development Platform403-10Work-related ill health
Empowering Talents and Forging an Exceptional
Development PlatformGRI 404: Trainingand Education 2016
404-1
Average hours of training per year per
employee
Empowering Talents and Forging an Exceptional
Development Platform404-2
Programs for upgrading employee skills andtransition assistance programs
Empowering Talents and Forging an Exceptional
Development PlatformGRI 405: Diversityand EqualOpportunity 2016
405-1Diversity of governance bodies and employees
Empowering Talents and Forging an Exceptional
Development PlatformGRI 414: SupplierSocialAssessment 2016
414-1New suppliers that were screened using social
criteria
Anchoring in Core Business and Enhancing
Products and Services
Interpretation ItemRefers toInterpretation ContentCompanyRefers toHuaming Power Equipment Co., Ltd.ShanghaiHuaming, HuamingManufacturing
Refers to
Shanghai Huaming Electric Power Equipment
Manufacturing Co., Ltd.Huaming GroupRefers to
Shanghai Huaming Electric Power Equipment Group Co.,
Ltd.Shanghai ChentingRefers toShanghai Chenting Technology Development Co., Ltd.Changzheng ElectricRefers toGuizhou Changzheng Electric Co., Ltd.Huaming EngineeringRefers to
Shanghai Huaming Electric Power Equipment
Engineering Co., Ltd.Shandong FIN Refers toShandong FIN CNC Machine Co., Ltd.Huaming High-Voltage Refers to
Shanghai Huaming High-Voltage Electric Switch
Manufacturing Co., Ltd.
Full Names and Abbreviations
Feedback and Suggestions
This report marks Huaming’s first ESG report. To continuously enhance the ESG management and elevate the proficiency infulfilling ESG obligations, your insights and suggestions are highly valued. Please complete the relevant questions in the surveyand provide your feedback through the following methods.
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Please provide your suggestions for our future ESG reports.
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2. Does the report comprehensively and accurately reflect the Company's significant impacts on corporate governance, society,
and environment?
Huaming Power Equipment Co., Ltd.Address: No. 977, Tongpu Road, Putuo District, ShanghaiTel: 021-52708824E-mail：
dsh@huaming.com
HUAMING POWER EOUIPMENT CO.,LTD