Registered Address：Beicun Village, Dongwu Town, Yinzhou District,Ningbo City, Zhejiang Province, ChinaTel.: 86-574-55007007Fax: 86-574-55007008Website: www.riyuehi.com
Riyue Heavy Industry Co., Ltd.Environmental, Social andGovernance (ESG) Report
About this Report
This report, issued by Riyue Heavy Industry Co., Ltd., represents our ???? Environmental, Social, and Governance (ESG) Report to thesociety. It encompasses all stakeholders of Riyue and adheres to the principles of objectivity, standardization, and transparency. Thereport truthfully discloses Riyue's responsibility practices towards shareholders, customers, partners, employees, and other keystakeholders in ????, along with the Company's e?orts in the ESG domain, aiming to meet stakeholders' expectations and betterful?ll our social responsibilities in the future.
This is an annual report covering the period from January ?, ???? to December ??, ???? unless otherwise speci?ed. To enhance thecomparability and completeness of this report, certain data and content have been appropriately extended beyond the reportingperiod.
Reporting Period
Unless otherwise speci?ed, the report includes information of Riyue Heavy Industry Co., Ltd. and its wholly-owned and holdingcompanies in the ESG domain, with an information boundary consistent with the Company's annual report.
Reporting Scope
This Report is prepared in accordance with the requirements of the Guidelines No. ? of Shanghai Stock Exchange for Self-regulationof Listed Companies — Standardized Operation, the Guidelines No. ?? of Shanghai Stock Exchange for Self-regulation of ListedCompanies — Sustainability Reports (Trial), and the GRI Standards issued by the Global Sustainability Standards Board (GSSB), andis based on the Company's speci?c practices in ful?lling social responsibilities.
References
Unless otherwise indicated, all information and data referenced in this report is based on the statistical reports and relevantdocuments of the Company, as well as the ESG information on the basis of statistics and audit by the Company. Unless otherwiseindicated, all monetary amounts are listed in RMB for this report.
Data Source
Riyue guarantees that this report is free from false records, misleading representations, or material omissions, and the Company isresponsible for the completeness, accuracy, clarity, balance and comparability of its content.
Assurance of Reliability
You can download its electronic version and acquire more information on corporate social responsibility from the o?cial website ofShanghai Stock Exchange (www.sse.com.cn) and the o?cial website of Riyue Heavy Industry Co., Ltd. (www.riyuehi.com). For anyfurther inquiries or suggestions on this report and the Company’s ESG work, please contact us via:
Website: www.riyuehi.comAddress: Board O?ce, Riyue Heavy Industry Co., Ltd., ??th Floor, Riyuexingzuo Building, No. ? Tianzhi Lane, Shounan Subdistrict,Yinzhou District, Ningbo, Zhejiang, ChinaPostal Code: ??????Tel.: ????-????????Email: stock@riyuehi.com
Access to the Report
0201
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
About this Report --------------------------------------01Message from Chairman ----------------------------- 05About Riyue --------------------------------------------- 07ESG Management -------------------------------------- 20
Key Performance Indicators------------------- 69Company Names and Abbreviations---------76Indicators Index-----------------------------------76Questionnaire------------------------------------- 78
Green Quality Enhancement,Low-carbon Innovationfor Sustainability
Environmental Impact Management ------------------------ 25Strengthening Resource Management ---------------------- 29Combating Climate Change ----------------------------------- 32
Driven by Innovation,Weaving theFuture TogetherInnovation-Driven Development ----------------------- 37Valuing Human Resources ------------------------------- 44Strengthening Quality Management ------------------ 51Consolidating Supply Chain Management----------- 56Spreading Social Warmth--------------------------------- 58
Lean Foundation,Joint Promotion ofProsperity
Optimizing the Governance System ------------------- 61Investor Relations Management ------------------------ 64Strengthening Internal Risk Control ------------------- 67Observing Business Ethics -------------------------------- 68
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
0605
Modern corporate governance is the ballast stone for enduring success. With Party building as the compass, we haveestablished a governance structure with clear responsibilities and e?ective checks and balances, embedding complianceawareness into every level of decision-making. By leveraging digital tools to build a transparent governance system, we havemade information disclosure a bridge of trust with the capital market; through a multi-layered risk prevention and controlmatrix, we have forged a solid defense for stable operations. This governance wisdom is not only a solemn commitment toshareholder interests but also a profound interpretation of the role of a modern corporate citizen.With the tide rising in the East China Sea, a thousand sails compete; with favorable winds, our industry is poised for renewal. Atthe historic intersection of the global energy revolution and industrial transformation, Riyue continues to navigate with ESG asits compass, forging ahead on the high-quality development course of green intelligent manufacturing. We ?rmly believe thatonly by integrating corporate destiny into the grand journey of human sustainable development can we write an enduringchapter for "Made in China" in the torrents of our time.
Chairman of Riyue Heavy Industry Co., Ltd. Fu Mingkang
We are keenly aware that the green transition of industrial civilization is not a multiple-choice question but a mandatory one.Riyue regards low-carbon transformation as the lifeline of the enterprise, leveraging its matrix of National Green Factories todrive ecological reform across the entire industrial chain. From optimizing the energy structure to innovating productionprocesses, from carbon management to circular economy practices, we are sketching a green growth curve on the map of thetraditional foundry industry with the brush of intelligent manufacturing. In the face of the century-long challenge of climatechange, we are not only committed practitioners of carbon reduction but also path?nders in industry transformation, embed-ding green genes into the very fabric of our development.Talent is the spark of innovation, and society is the root system of enterprises. We regard employees as the most valuable assetof the Company, and we are building a growth ecosystem that covers the entire career life cycle, enabling every dedicatedindividual to realize a leap in value amidst the wave of intelligent manufacturing. Up and down the industrial chain, we promotesustainable development by fostering responsible procurement, joining forces with over 2,000 partners to build a sharedecosystem. Meanwhile, in broader communities, the sparks of joint community building and public science education areconverging into a torch lighting the way to the future. This sense of responsibility is both a ?rm commitment to our originalaspiration of serving the nation through industry and a practical embodiment of our mission to promote common prosperity.
With trust across mountains and seas, we walk the great path togeth-er. As the tide of the times surges toward the deep waters of the "DualCarbon" strategy, and as global industrial chains rede?ne value amidthe green transformation, we are guided by the ESG philosophy,steadily advancing toward high-quality development.
Message from Chairman
0807
About RiyueCompany Pro?leRiyue Heavy Industry Co., Ltd. was established in December 2007, originally founded as Ningbo Yinzhou District Tinplate Factory in1984. Since its inception, the Company has been dedicated to the research, development, production and sales of large heavyindustry equipment castings, with its main products being large wind turbine castings and core castings for injection moldingmachines. In December 2016, the Company went successfully listed on the Shanghai Stock Exchange.The Company's products include wind turbine castings, plastic machinery castings, diesel engine castings and machining centercastings, which are used in various ?elds such as energy equipment, general machinery and marine engineering. While focusing onexpanding and strengthening its two main product lines of wind turbine castings and plastic machinery castings, the Company hasalso made breakthroughs in nuclear power equipment applications and alloy steel research through its technology in ductile ironwith thick cross-sections. It has been actively promoting a multi-?eld layout and formed a unique competitive advantage in theheavy industry equipment sector. Riyue Holdings is committed to becoming a leading supplier of basic materials for the globalhigh-end equipment industry and high-end equipment components. Its production operations are characterized by "small batches,multiple varieties, and high ?exibility", o?ering tailor-made solutions that provide high-end high-quality castings for industries suchas energy, marine engineering, general machinery and high-speed rail vehicles.The Company strives to build a "low-carbon, environmentally friendly and harmonious" high-tech heavy industry enterprise, aimingto be a leader in promoting the widespread use of clean and renewable energy and making a crucial contribution to the green andsustainable development of humanity.
Diesel engine BlockGas outlet casingBearing CasingAir inlet Casing
Cylinder (Free)Crankshaft
Rotor locking ?angeStrutMain framePlanetary Carrier
Energy Industry Solutions
Housing (Lower)Housing (Free)Casing (Free)Main CasingDriving CasingHousing (Middle)
6X Torque Arm6X PlanetcarrierHousing (Middle)Model-x Main
Structure
QB Hub20 Hub
MK3E Base12MW BaseV20 Baes Frame9MW Main Shaft
V20 Main Bearing
Housing
6050 Main frame6X HubV12 Baes Frame
YC85 Main ShaftYC85 Main Bearing
Housing
6X Housing (Rear)Housing (Upper)Housing (Free)Mainshaftsleeve6X Planetcarrier6X End Cover
Casing (Upper) forUltra supercriticalworking condition
Casing (Lower) forUltra supercriticalworking condition
Marine Heavy Industry Solutions
1009
Lathe BedHorizontal Lathe BedColumnWorking BenchCross BeamConvertor
Grinding TableMill Head
(Feed & Discharge)
Roller WheelFlangeLocking ring
Ram
Moving Platen
Long CylinderStamping Cylinder
Fix PlatenOil CylinderPlatens Tationary
Injection
Platen StationaryInjectiorn
Housing
Casting NoseDrive Spindle
(Casting)
TOOL EYE (Casting)First Cass CarrierDrive housingImpeller
Box bodySupportTurntable
HousingBodySteellngotBack roomWorking plate for
Air Plane
SlideblockMotorShell
PDM385 Housing(Lower)
PDM490 Housing(Upper)
PDM490 Housing
(Lower)PDM385 Housing(Upper)
General Machinery Industry Solutions
High-speed Rail and Rolling Stock Industry Solutions
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Strategy and CultureOrganizational Structure
Ningbo Rixing Foundry Co., Ltd.Ningbo Essence Metal Machinery Co., Ltd.Ningbo Yuexing Metal Machinery Co., Ltd.Ningbo Riyue Nuclear Equipment Manufacturing Co., Ltd.Ningbo Mingling Technology Co., Ltd.Ningbo Riyue Essence Precision Manufacturing Co., Ltd.Ningbo Riyi Intelligent Equipment Co., Ltd.Riyue Heavy Industry (Gansu) Co., Ltd.Xiangshan Riyue Zhixin Testing Technology Co., Ltd.Ningbo Riyue Rixing New Energy Technology Co., Ltd.Benxi Liaocai Metal Material Co., Ltd.Subei Zhexinneng Wind Power Co., Ltd.
Institute of Technology ResearchInstitute of Process ResearchQuality & Safety CenterExcellence Operation CenterSales CompanyPlanning & Coordination CenterDigitalization CenterProcurement CenterFinancial Management CenterHuman Resources CenterO?ce
Riyue Heavy
IndustryCo., Ltd
Build the globally famous heavy industry enterprise of high technology, low carbon,environmental protection and harmony.
Strategy andCulture
CompanyVision
CompanyMission
SafetyPhilosophy
Core Value
BusinessPhilosophy
Company Spirit
EmployeePhilosophy
Health, Loyalty, Creativity and Quality.
All for customers, all from innovation.
Safety ?rst, prevention foremost, comprehensively governed.
Lead the widespread use of clean and renewable energy tomake a crucial contribution to the green and sustainabledevelopment of humanity.
Safety, Innovation, E?ciency, Cooperation,Striving for Excellence.
Collaboratively build a community of sharedcareers, enabling employees to spread the seedsof love and reap happiness.
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History
Ningbo Yin County Tinplate Factorywas founded (The former name ofRiyue Heavy Industry Co., Ltd.).
Expanded the clay sand casting work-shop to achieve an annual productioncapacity of over 10,000 metric tons.
Built a new resin sand casting workshopwith an annual production capacity ofover 50,000 metric tons.
Constructed the ?rst phase of the toolingand mold workshop covering over 8,600 m?.
Honored as Ningbo High-tech Enterprise and established the Provincial Enterprise Technol-ogy Center.
Honored as a Provincial High-tech Enterprise; "Heavy section ductile iron castings" includedin the National Torch Plan Project; and identi?ed as a National-level High-tech Enterprise.
Annual output reached 100,000 metric tons; honored as Safety Production StandardizationEnterprise in Zhejiang Province; and passed ISO14001 Environmental Management System Certi?-cation.
Ningbo Rixing Foundry Co., Ltd., a sub-sidiary invested and established by theCompany, was formally put into pro-duction.
The National Machinery Industry Advanced Collective; the Safety Quality Standardization (Coun-try) Level 2 Enterprise; and established the physical and chemical testing center at the provinciallevel.
Certi?ed by BV.
The Safety Production Standardization (Country) Level 1 Enter-prise; China Green Foundry Demonstration Enterprise; The Greenand Low-Carbon Economic Model Enterprise in the 3rd competi-tion of Zhejiang Province; and passed OHSMS18001.
Listed as a post-doctoral research workstation (pilot) and elected as aVice President member of China Foundry Association.
Passed GL, ABS, LR and other China Classi?cation Society (CCS) certi?cations andcerti?ed as the national testing center.
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
The Company relies on its advantages in technology, products, scale, quality and brand to establish along-term stable customer base and has secured a solid market position in the industry of castings forlarge heavy industry equipment.
Recognized as a Key High-tech Enterprise of National Torch Plan.
Successfully listed in A shares of ShanghaiStock Exchange (Stock Code: 603218).
Approved as the "National Enterprise TechnologyCenter" and won the honor of "Green Enterprise" ofthe Ministry of Industry and Information Technology(MIIT).
Invested to establish a subsidiary, PrecisionManufacturing.
The hundred-metric ton ductile iron spent fuel transportcontainer was successfully developed, which is unprecedentedin China, and passed the "Domestic First Set" approval. Subsid-iaries were established by the Company, including GansuRiyue, Riyi Intelligent and Zhixin Testing.
Successfully issued convertible corporate bonds, raising RMB 1.2 billion, and invested to establisha subsidiary, Riyue Nuclear Equipment.
The world's largest on-shore wind turbine gearbox 11 MW casting was successfully developed andmass-produced. The Company invested to establish a subsidiary, Jiuquan Zhexinneng. The projectof key components for wind turbine machine in Gansu Riyue was o?cially put into operation, withan annual output of 200,000 metric tons (100,000 metric tons for Phase 1).
Invested in the establishment of Benxi Liaocai Metal MaterialsCo., Ltd., marking the Company's expansion into new ?elds,cultivation of new pro?t growth drivers, and further improve-ment of the industrial chain.
1615
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
???? Environmental, Social and Governance (ESG) Report
| 日月重工股份有限公司 | ????年度环境、社会和公司治理报告 |
1817
China Securities JournalCailian PressCorporate Governance (G) Pioneer Award
Ningbo Yinzhou High-tech and Intellectual
Property AssociationOutstanding Member Enterprise
Dongwu Town Committee of the CPC,Dongwu Town People’s GovernmentGolden Phoenix Award
Ningbo Enterprises Federation, NingboEntrepreneurs Association,Ningbo Federation of Industrial Economics2024 Top 100 Competitive Enterprises
in Ningbo
Honors in 2024
The Second CRHC Cup · ESG Golden Bull Award
2024 Annual Listed Company InvestorRelations Ranking
Best Innovation Practice
Yinzhou District Economic In?uencer List
Great Contribution Award
FCS Group
Best Strategic Supplier
Ningbo Enterprises Federation, Ningbo
Entrepreneurs Association,Ningbo Federation of Industrial Economics2024 Top 100 Comprehensive
Enterprises in Ningbo
Ningbo Enterprises Federation, Ningbo
Entrepreneurs Association,Ningbo Federation of Industrial Economics
2024 Top 100 Manufacturing Enterprises in Ningbo
Ningbo Municipal Bureau of Ecologyand EnvironmentEnterprise on the Positive Lists for Environmental
Supervision and Law Enforcement in Ningbo
Dongwu Town People’s Government
Model Collective of the Year 2024
Riyue
Riyue
Riyue
Riyue
Riyue
RiyueRiyue
Riyue
RiyueRiyue
Riyue
Riyue
2019
The Company actively supports the national "Dual Carbon" goals, has clearly de?ned its sustainable development strategy,established a sustainability framework, and is advancing ESG management system construction at all levels. The Companyactively builds a sustainable corporate culture, shapes a responsible image that meets social expectations, and integrates ESGgovernance throughout the corporate strategy, decision-making and operational processes, creating a top-down ESGgovernance framework. By setting ESG strategic goals, identifying ESG-related risks, disclosing information, and managing andassessing ESG performance, the Company continuously enhances its environmental, social and governance capabilities,optimizes its ESG governance structure, and vigorously promotes the e?cient implementation of ESG initiatives.
ESG Management
ESG Management
To better respond to the expectations and demands from stakeholders, the Company regularly employs methods such asbenchmarking against other companies, and internal interviews to identify, assess, prioritize, and con?rm ESG issues, whichhelp us ?nd out how much of a concern the issue is to stakeholders and understand their expectations of the Company’s ESGperformance. In 2024, the Company's material issue determination process is as follows.
Analysis on Material Issues
Identify major trends pertinent to the Company through policy analysis, industry research, peercomparison, stakeholder communication and survey, then identify the material issues based on thenational polices and key points of high concern in the capital market.IssueIdenti?cation
Perform rational analysis of the results obtained from the questionnaires and give a ?nal ranking forthe material issues of stakeholders by fully considering the relevant national policies, key points ofhigh concern in the capital market and peer performance.Analysis ofmateriality
The management of the Company performs careful perusal and review of the results from theanalysis of material issues to ?nally establish key information to be disclosed in this report,objectives of future ESG management and speci?c implementation plans.Con?rmationby theManagement
China Electronics Energy Saving
Technology Association
Xiangshan County Committee of the CPC,Xiangshan County People’s Government
Strategic SupplierCircle of SANY Renewable Energy
Ministry of Emergency Management of the
People’s Republic of China
Low-Carbon Product Supplier Certi?cate
Top 10 Innovation Capabilities
Xiangshan County Committee of the CPC,Xiangshan County People’s GovernmentGold Award for ComprehensiveIndustrial Contribution
Ningbo Administration for Market Regulation
AA-Rated Zhejiang Province "Contract-Honoring
and Credit-Worthy" Enterprise
| Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report |
Rixing Foundry
Rixing Foundry
Rixing Foundry
Rixing Foundry
Third-Level Enterprise of WorkplaceSafety Standardization (Machinery)
Strategic Alliance Supplier
Rixing Foundry
Rixing Foundry
The Company actively responds to the call of the times for sustainable development, deeply implementsthe ESG philosophy, integrates ESG into all processes and aspects of operations, and promoteshigh-quality development across the board.
2221
The Company actively performs social responsibilities, pays great attention to the expectations and demands of stakeholders,engages in in-depth communication through various channels, fully understands opinions and suggestions of governmentsand regulatory authorities, shareholders, partners, communities and employees, and speci?cally enhances the Company's ESGperformance, continually adjusting its sustainable development strategy and actions.
Communication with Stakeholders
Note: "Ecosystem and Biodiversity Protection", "Sci-Tech Ethics", "Fair Treatment of SMEs", and "Due Diligence" are disclosure issuesfor speci?c entities and are not identi?ed as material issues for the Company at this time; therefore, relevant information has not yetbeen disclosed.
Governmentand RegulatoryAgencies
StakeholdersExpectations and DemandsCommunication and Feedback
Shareholdersand Investors
Employees
Customers
Partners
Communitiesand Public
Environment
·Response to national strategies·Serving regional economy·Compliance operation·Improving corporate governance·Protecting Shareholders’
Rights and Interests·Investor relations management·Information disclosure
·Guarantee of basic rights and
bene?ts
·Individual development·Employee bene?ts·Employee care·Product quality and safety·Honesty and regulatory
compliance in business practices
·After-sales service·Fair competition·Integrity and mutual bene?t·Transparent procurement·Green and low-carbon
development
·Protecting the ecological
environment
·Promoting community
development
·Participating in public
welfare activities
·Community construction·Charity work·Volunteer service
·Green transformation development·Green technology innovation
·Ful?lling contract with integrity·Signing collaborative agreement·Improving supply chain management·Observing business ethics
·Optimizing industrial chain layout·Improving product quality·Communication and Q&A dedicated to
certain project
·Routine communication·Customer service hotline
·Establishing fair promotion paths·Professional training and career development·Employee satisfaction survey·Implementing workplace safety·Routine communication
·Enhancing operation management level·Promoting digital transformation·Investor research and exchange·Publishing periodic report,
interim announcement
·Holding investor exchanges·Dividends to shareholders
·Implementing national policies·Cooperating with locals·Establishing and improving anti-corruption
governance system
·Observing business ethics
Anti-commercial Bribery and Anti-corruptionAnti-unfair CompetitionWater UtilizationPrevention and Control of PollutionSocial WelfareData SecurityESG ManagementRegulatory Compliance in Business PracticesRisk Prevention and ControlCustomer Service
Energy UtilizationInnovation-driven DevelopmentProduct QualityEnvironment ManagementSupply Chain Security
Combating Climate ChangeEmployee Health and Safety
Digital TransformationThree MeetingsInformation DisclosureEmployee DevelopmentEmployee CareInvestor Relations ManagementIntellectual Property ProtectionInternal Control ManagementCircular EconomyCommunication with Stakeholders
High
ImpactMateriality
RelativelyHigh
Relatively High
Financial MaterialityHigh
2423
Green Quality Enhancement,Low-carbon Innovation forSustainability
The Company insists on balancing economic and social bene?ts, adheres to a sustainabledevelopment strategy, drives green transformation through both operations and produc-tion, responds to the "Dual Carbon" policy goals, proactively prevents and controls indus-trial pollution through green technological upgrades, advocates clean production, andpromotes steady and sustainable development.
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
2625
GovernanceThe Company and its subsidiaries conduct annual environmental risk assessments and compile environmental factor identi?-cation lists. After approval processes, environmental risk factors are con?rmed to ensure comprehensive identi?cation andprevention. The Company has formulated the Emergency Plans for Environmental Incidents, clarifying the responsibilities,content, and emergency response plan procedures for each functional department to e?ectively respond to environmentalincidents and ensure employee safety. The Company conducts annual emergency response drills to enhance employee emer-gency response capabilities and strengthen inter-departmental coordination.
In?uence, Risk and Opportunity Management
The Company fully implements the new development philosophy of innovation, coordination, green development, openness,and sharing, continuously improves its environmental management mechanism, enhances environmental risk preventioncapabilities, and empowers pollution prevention and control, resource conservation, and greenhouse gas emission reductionthrough system management, striving for high-quality development.
Strategy
In 2024, the Company and its subsidiaries did not experience any illegal orirregular environmental violations. The Company was honored as an enter-prise on the Positive Lists for Environmental Supervision and Law Enforce-ment in Ningbo.
Indicators and Targets
As of the end of 2024, the Company and three subsid-iaries have obtained GB/T 24001 / ISO 14001 Environ-ment Management Systems certi?cation.
Riyue Environmental Management
System Certi?cate
Gansu Riyue EnvironmentalManagement System Certi?cate
Rixing Foundry EnvironmentalManagement System Certi?cate
Mingling Technology EnvironmentalManagement System Certi?cate
Environmental Impact Management
The Headquarters
Subsidiary PlantsSafety and Environmental Section
Designated Management DepartmentResponsibilities
The Company actively builds internal EHS systems at boththe Company and subsidiary levels, oversees EHS manage-ment and the operation of special hazard controls, ensuringthat the environmental management system complies withthe ISO 14001 series standards and that the productionenvironment meets stakeholder requirements.
The Company attaches great importance to the environmental impact of its operations, strictly complies with the Environ-mental Protection Law of the People's Republic of China and the Law of the People's Republic of China on EnvironmentalImpact Assessment, continuously improves the environmental management system, de?nes its management structure, andsystematically manages environmental impacts.
The Company is attentive to the environmental impact on nearby residents. Upon receiving environmental complaints, itpromptly undertakes acceptance, investigation, recti?cation, and review to continuously improve environmental manage-ment e?ectiveness.
Case
Gansu Riyue, A Subsidiary of the Company, Conducted A Special EmergencyResponse Drill for Hazardous Chemical LeakageIn October 2024, Gansu Riyue, a subsidiary of the Company,carried out a liquid hazardous chemical leakage drill accordingto its emergency response plan, ensuring that the emergencyteam correctly used protective equipment and improved thetimeliness and e?ectiveness of emergency rescue e?orts.
Enterprise on the Positive Lists for EnvironmentalSupervision and Law Enforcement in Ningbo
The Company continuously improves its environmental management system, strengthens the founda-tion for environmental protection, and empowers high-quality environmental protection e?orts.
Environmental Management System
Quality & Safety Center, with a Quality and EHSManagement Section
2827
Wastewater
The Company has formulated the Exhaust Gas Emission Control Procedures and supports it with exhaust gas pollution preven-tion and control facilities to legally manage various exhaust gases generated during production, including mixing, molding,core-making, melting, casting, shakeout, sand reclamation, and kitchen fumes. The Company ensures e?ective daily operationand maintenance of pollution prevention and control facilities and commissions third-party testing annually to ensure exhaustgas emissions meet standards. In 2024, the Company generated 329,703.3 kg of exhaust gas pollutants, all of which weredischarged in compliance.
The Company has formulated the Solid Waste Pollution Control Procedures, clarifying waste types, disposal methods, andmanagement processes. Waste is classi?ed, labeled, and tracked in accordance with national and local regulations to ensurefull compliance throughout generation, storage, transport, and disposal.General solid waste includes domestic waste, dust, melting slag, used molding sand, and iron ?lings. Domestic waste is collect-ed, classi?ed, and stored by the Company at designated locations with uni?ed labeling, and is processed by certi?ed recyclingstations authorized by government environmental protection authorities. The Company advocates recycling and reuse of gen-eral solid waste generated during production.
Solid Waste
The Company strictly complies with the Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008) ClassIII standards, actively implements noise control measures to ensure that day and night noise levels at the plant boundary donot exceed limits, thereby avoiding disruption to nearby residents.Noise
UnitIndicator2024
Discharge of wastewaterDischarge of industrialwastewaterDischarge of domesticwastewater
metric tonmetric tonmetric ton
83,877.5
980.0
82,897.5
The Company has established an industrial wastewater treatmentstation and a general treatment station. Wastewater is ?rst treatedwith a "physicochemical + biochemical" process at the industrialwastewater station, then further treated at the general sewagetreatment station to achieve discharge compliance. To reducewastewater at the source, the Company selects production pro-cesses and technologies with low water consumption and minimalor relatively mild environmental impacts.
Exhaust GasPollutionTreatment
Hazardous waste includes chemical waste liquids, packaging of chemical reagents, waste paint, and related packaging. Inaccordance with national laws and regulations, the Company has established Hazardous Waste Storage Management Regula-tions, clearly specifying storage requirements and maintaining a hazardous waste log to ensure uni?ed hazardous waste man-agement. All hazardous waste is handled by certi?ed institutions recognized by government environmental protection author-ities.
UnitIndicator2024
42,527.2
0.4
327.9
45.9
Hazardous waste generatedHazardous waste generation intensity (based on revenue)General waste generatedGeneral industrial solid waste generation intensity (based on revenue)
The Company complies with relevant laws and regulations, and has formulated the Exhaust Gas, Wastewater, and Noise Con-trol Procedures, Waste Pollution Control Procedures, and Environmental Protection Management System to ensure thatpollutant emissions meet standards and reduce environmental and health impacts.The Company is committed to pollutant reduction, sets emission targets, actively contributes to the development of a greenecological environment, and regularly conducts environmental monitoring to ensure compliant emissions. In 2024, 100% ofthe Company's pollutant emissions met standards.
the Company generatedmetric tons of hazardous waste
Pollutant Emission Management
Exhaust Gas
· Volatile gas collection and treatment devices are installed to reduce fugitive exhaustgas emissions.· The Company enhances the maintenance of organic exhaust gas treatment facilities,replaces activated carbon as required, ensures normal operation of exhaust gas equip-ment, and minimizes exhaust gas emissions.· The Company adopts the "catalytic combustion + activated carbon treatment" processto e?ectively treat paint booth and touch-up exhaust gases, ensuring compliant emis-sions from the painting process.
metric tonmetric ton / RMB 1,000,000
metric tonmetric ton / RMB 1,000,000
Green O?ce
The Company advocates for online o?ce practices, double-sided printing and copying of dailydocuments, and reusing discarded paper.
The Company actively promotes green o?ce practices, encourages employees to adopt environmentally friendly behaviors atwork and in life, and joins hands with employees to move toward a greener and more e?cient future.
Conserve paper
The Company encourages employees to turn o? electricity when leaving a room to reduce elec-trical hazards.
Conserve electricity
The Company promotes rational and recycled water use, encourages employees to turn o? tapswell after use, and to report any issues such as burst pipes to relevant departments for promptrepair to prevent leaks.Conserve water
The Company actively advocates the resource-saving principle of "no discard nor abandonusable things", encourages employees to use "ink-saving printing" mode, replace pen re?lls withwater-based options, reuse binder clips and paper clips, and recycle used folders, among others.
Conserve resources
3029
· Promote the use of puri?ed drinking water according to actual needs.· Cleansing operations are conducted with water-saving awareness whileensuring e?ectiveness.· Regular inspections are conducted on the water supply system to ensurethat equipment is free of leaks and over?ows.· When abnormal water usage occurs, the cause is investigated, and correc-tive measures are implemented within a speci?ed time.
Strengthening Resource Management
UnitIndicator2024
135.26
113.60
21.66
16.01
806.89
Total water consumptionFresh water consumptionRecycled water consumptionProportion of recycled water consumptionWater consumption intensity (based on revenue)
The Company has formulated a series of energy management systems such as the Regulations on Resource and Energy Man-agement, Energy Metering Management System, and Regulations on Disciplinary Actions and Waste Penalties for Energy Use,clearly de?ning the requirements of the energy management system. As of the end of 2024, two of the Company’s subsidiarieshad obtained certi?cation for the energy management system.
Governance
Upholding the energy policy of "low carbon and environmental protection, clean circulation, e?ciency through conservation,and green casting", the Company promotes high-e?ciency energy management practices to minimize energy consumption,improve energy utilization, and support sustainable enterprise development.
Strategy
The Company's main energy sources include outsourced diesel, gasoline, electricity, and coke/coal. While ensuring normalproduction operations, the Company conserves electricity, ensures the safety and e?ciency of power equipment, investigatesand analyzes abnormal electricity usage, and implements timely corrective measures. The Company follows established pro-cedures for energy transportation, use, and installation, maintenance, and servicing of energy-related equipment. In the eventof energy supply shortages, relevant departments are noti?ed in advance.
In?uence, Risk and Opportunity Management
Indicators and Targets
Energy Management System
Top Management
Energy Management System
ManagementRepresentative
Subsidiaries
Riyue Energy ManagementSystem Certi?cate
Rixing Foundry Energy Management
System Certi?cate
The Company places great importance on energy and resource conservation. It has formulated the Energyand Resource Management Procedures, improved resource management, strengthened the resourcemanagement system, and promoted the e?cient use of water resources, energy, and material recyclingacross the board, injecting strong momentum into the Company's sustainable development.
The Company focuses on theconservation and e?cient use ofwater resources. In 2024, theCompany's total water consump-tion was
millionmetrictons.
10,000 metric tons10,000 metric tons10,000 metric tons
%metric ton / RMB 1,000,000
Energy Utilization
Water Utilization
· Formulate an energy policy.· Appoint a management representative and approve the establishment of the Energy Management Leading Group.· Provide the resources needed for the operation and improvement of the energy management system, de?ne the
scope and boundaries of the system, and communicate the importance of energy-saving.· Incorporate energy performance considerations into long-term planning, ensuring the establishment of energyobjectives, targets, and appropriate performance indicators.· Report energy management status to higher authorities and government departments in accordance with regulato-ry requirements.· Conduct annual management reviews.
· Establish, implement, maintain, and continuously improve the energy management system in accordance with
standards.· Assign relevant personnel under the authority of the management to jointly carry out energy management activities.· Report on energy performance and the performance of the energy management system; plan e?ective energy man-agement activities.· Enhance employees' awareness of the energy policy and energy objectives.· Clearly de?ne and communicate responsibilities and authorities related to energy management to e?ectivelypromote energy management.· Establish criteria and methods to ensure e?ective control and operation of the energy management system.· The primary responsible department is responsible for organizing all employees to implement and maintain the
energy management system, and urging all units to carry out work related to the energy management system accord-ing to speci?c requirements.
the Company continued itsenergy conservation e?orts,consuming a total of
metric tons of standardcoal equivalent.
3231
Resource Reuse Measures
Used as brick blanks or cement raw materials.Recycled and reused as raw materials.
UnitIndicator2024
TCETCETCE10,000 kWh
GJ
375,098.66292,624.531,607.3864,980.5129,475.62
Total energy consumptionFossil energy consumption (direct)Non-fossil energy consumption (direct)Outsourced electric powerOutsourced heating power
In material management, the Company has established relevant procedures that clearly require paper and other materials tobe transported and stored with quality assurance measures, including moisture-proo?ng, waterproo?ng, and sun protection.In terms of circular economy, the Company actively promotes resource recovery, reduction, and reuse, facilitating resourcerecycling throughout the production process. Meanwhile, the Company actively uses waste steel and return materials in pro-duction to improve the utilization rate of recycled resources. In 2024, approximately 180,000 metric tons of scrap steel wereprocured.
Combating Climate Change
The Company recognizes the potential impacts of climate change on business operations and prepares contingency plans forpossible climate-related risks. Meanwhile, it actively implements national policies on "Dual Carbon" goals, enhancing techno-logical innovation and the implementation of energy-saving and emission reduction technologies.Strategy
Riyue
RixingFoundry
MinglingTechnology
Gansu Riyue
Climate-related RisksCountermeasures
Physical Risks
ContingencyRisks:
Extremeweather
1. Factory, workshops, o?ce buildings
and equipment might be damaged tocause asset loss, and even employeesafety accidents.
2. Facility damage, service interruption or
major equipment damage may directly orindirectly sabotage the continuity ofbusiness operations and economicinterests.
1. Regularly identify environmental factors that may
impact the climate, and strengthen control over theseidenti?ed environmental factors.
2. Focus on extreme weather alerts, develop targeted
emergency plans, conduct regular emergency drills, andemphasize the routine storage of disaster preventionmaterials.
3. Regularly inspect production equipment and facilities
for potential hazards, upgrading and retro?tting asneeded to enhance disaster protection levels.
Chronic Risks:
Lastingheatwave,drought, etc.
Higher temperatures may result in theneed for additional cooling equipmentand maintenance costs, increasingoperational costs.
1. Improving the R&D and application of carbon emis-
sion reduction technologies and being equipped withmore energy-e?cient cooling technology and system.
2. Promoting green development to mitigate associated
climate change risks.
Materials and Circular Economy
Smelting SlagUsed Molding Waste Sand and Iron Filings
The Company is attentive to global climate change, has established a system for identifying and assess-ing climate risks, strictly manages greenhouse gas emissions, actively participates in the carbon tradingmarket, and formulates and implements e?ective climate change response strategies to ensure theCompany's steady development.
The Company strictly complies with laws and regulations such as the Energy Conservation Law of the People's Republic ofChina and the Environmental Protection Law of the People's Republic of China, promotes ecological civilization and sustain-able economic development, actively builds a green manufacturing system, and is committed to mitigating and combatingclimate change. As of the end of 2024, the Company held four National Green Factory certi?cations.
Governance
3433
Policies andlaws risks
New policies and regulations ongreenhouse gas (GHG) emissions mayincrease the Company's compliancecosts and related litigation or claimsmay also increase in numbers.
Staying on top of the changes in the regulations andpolicies related to the climate and “dual carbon”, estab-lishing a list of laws and regulations, and adjusting inter-nal management measures in a timely manner to actively
TechnologyRisks
Increasing environmental, perfor-mance, and production processrequirements and the acceleration oflow-carbon transition necessitatecostly technological innovations.
Continuously conducting energy-saving and carbon-re-ducing technology transformation and optimizingproduction processes and equipment in consideration ofthe current level of technology. Installing fault preventionfacilities and carrying out regular maintenance of equip-ment so as to facilitate the use of clean technologies.
Market risks
Shifts in upstream and downstreamsupply chains and customer prefer-ences may intensify the focus ongreen and low-carbon products.
Scienti?cally assess market conditions, continuouslymonitor the price trends and supply and demand chang-es in the product and raw material markets, and conductpreliminary research.
Reputation risks
Poor performance in combatingclimate change and sustainabilitygiving rise to negative feedback fromassociated stakeholders.
1. Being devoted to sustainable development, actively
taking up social responsibilities, reinforcing greenproduction, maintaining green ecology and burnishingthe green image of the Company.
2. Regularly publishing ESG reports of the Company and
disclosing information on the status of the Company'senergy saving and emission reduction objectives.
Transition Risks
In response to chronic physical risks, the Company has steadily conducted greenhouse gas accounting and actively participat-ed in carbon trading, striving to achieve the "Dual Carbon" goals. Benxi Liaocai, a subsidiary of the Company, calculated itsannual greenhouse gas emissions in accordance with the Guidelines for Enterprise Greenhouse Gas Emissions Accountingand Reporting for Iron and Steel Production issued by the Ministry of Ecology and Environment. During the carbon tradingprocess, Benxi Liaocai actively utilized CCER o?sets according to its actual conditions. In 2024, it completed carbon compli-ance for 1 million metric tons and used 50,000 metric tons of CCER o?sets, e?ectively reducing carbon compliance costs.In response to acute physical risks, the Company actively addresses typhoons and other extreme weather events to ensureasset and workplace safety and avoid disruptions to business continuity and economic interests.
The Company continues to advance toward achieving the "Dual Carbon" goals and contributes to mitigating climate change.In 2024, the Company's greenhouse gas emissions were as follows.
In 2024, Rixing Foundry obtained the Three-Star Product Carbon Label Evaluation Certi?cate and Authorization for Use ofCarbon Label.
In July 2024, the Company actively participated in e?orts to resist Typhoon Gaemi by conducting factory inspec-tions and reinforcements to safeguard workplace safety.
Ensuring Workplace Safety
UnitIndicator2024
tCO
etCO
etCO
e
1,429,335.931,077,408.22351,927.72Total GHG emissionsScope 1 emissionsScope 2 emissions
Rixing Foundry Three-Star Product CarbonLabel Evaluation Certi?cate
Rixing Foundry Authorization for
Use of Carbon Label
Case
In?uence, Risk and Opportunity Management
Indicators and Targets
3635
Driven by Innovation,Weaving the FutureTogether
The Company upholds innovation-driven development, strives to break throughtechnological barriers and enhance core competitiveness, values human resources tofoster a harmonious workplace, focuses on quality improvement to strengthen productand service capabilities, enhances supply chain management to drive high-qualitydevelopment across the industry chain, and participates in community public welfareactivities to give back to society and create a blueprint for harmonious development.
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
3837
Innovation-Driven Development
The Company adheres to its mission of "becoming a leader in promoting the widespread use of clean and renewable energy andmaking key contributions to the green and sustainable development of humanity". Focusing on large ductile iron wind powercastings, and leveraging its nuclear storage container technology, the Company conducts in-depth research on the perfor-mance of low-temperature ductile iron, deepens the reform of its science and technology system, increases investment inscience and technology, stimulates innovation vitality, and contributes to the modernization, digitalization, and intelligentdevelopment of the industry.The Company strengthens its equipment foundation to provide solid hardware support for R&D and innovation. The Companyowns more than 140 sets of large and medium-sized production equipment, including advanced resin sand casting productionlines, cupola furnaces, induction electric furnace melting equipment, and large shot blasting machines, heat treatment furnac-es, and other casting post-processing equipment. It also has over 70 sets of testing instruments and equipment, except for theadvanced German-imported direct-reading spectrometers, infrared carbon-sulfur analyzers, mechanical property testingmachines, a large horizontal microscope and an ultrasonic ?aw detector, providing a solid equipment foundation for researchand production.
Strategy
In?uence, Risk and Opportunity Management
R&D and Innovation Management Structure
R&D Center
Institute ofTechnologyResearchInstitute ofProcess Research
InnovationManagementCommittee
Leads the direction of industry technological development and determines the Company'slong-term R&D strategy and key projects.Leads the design and development of new products and the upgrading of existing ones basedon market demand and customer feedback.
As of the end of 2024, the Company and four of its subsidiaries had obtained High-tech Enterprise certi?cation.
Riyue High-techEnterprise Certi?cate
Rixing FoundryHigh-tech Enterprise Certi?cate
Mingling TechnologyHigh-tech Enterprise Certi?cate
Precision ManufacturingHigh-tech Enterprise Certi?cate
Gansu RiyueHigh-tech Enterprise Certi?cate
Riyue Testing Center
CNAS LaboratoryAccreditation Certi?cate
Rixing Foundry TestingCenter CNAS LaboratoryAccreditation Certi?cate
Riyue Postdoctoral Research Workstation
In July 2024, the testing center of Ningbo Rixing Foundry Co., Ltd., a subsidiary of the Company, successfullypassed the CNAS re-accreditation review.National CNAS Laboratory Accreditation Review Successfully Completed
Case
The Company continues to improve its innovation mechanisms, clari?es theevaluation process and incentive system for innovation projects, standardizesthe entire R&D and innovation process, and fosters an innovative atmosphere.Innovation project incentives include team and individual rewards, with bonusdistribution plans implemented upon approval.The Company deepens industry-academia-research cooperation and continu-ously transforms innovation achievements into social and economic bene?ts. Asof the end of 2024, the Company has established three national-level R&Dplatforms: the National Enterprise Technology Center, the National IntelligentCasting Industry Innovation Center, and the National Postdoctoral ResearchWorkstation; two provincial-level R&D platforms: the Zhejiang ProvincialEnterprise Technology Center and the Zhejiang High-Tech Enterprise R&DCenter; and two municipal-level R&D platforms: the Ningbo Riyue Heavy IndustryCasting Engineering Technology Center and the Riyue Heavy Industry CastingsResearch Institute. The Experimental Center of Riyue Heavy Industry Co., Ltd. andthe Testing Center of Ningbo Rixing Foundry Co., Ltd. are laboratories and testinginstitutions accredited by national (international) organizations.
With technological innovation as the engine, the Company tackles cutting-edge technical challenges,builds an intellectual property protection system, vigorously protects innovation achievements,advances digital transformation, reshapes operational processes, improves e?ciency anddecision-making, and embarks on a new journey of high-quality development.
The Company has established a set of systems including the Project Full-Process Management System, Resource and FundManagement System, Innovation Incentive Mechanism, 1+4 New Product Development Management System, Project Initiationand Incentive System, Single Innovation Project Reward Management System, and 1+3+10 New Product Development Manage-ment System, which de?ne management structures and responsibilities, re?ne innovation management and incentive mecha-nisms, and continuously advance the Company's R&D and innovation initiatives.
Governance
R&D and Innovation Management
Formulates the Company's innovation strategy and policies, and approves the initiation and budgeting of majorinnovation projects. Supervises the execution progress and achievement transformation of innovation projects andcoordinates cross-departmental innovation resource allocation.
4039
In 2024, the Company continued to advance its R&D and innovation initiatives.Indicators and Targets
The Company cultivates and introduces high-level technical and skilled talents through a "going out and bringing in" approachvia multiple channels, establishing an e?cient R&D talent team to enhance overall scienti?c and technological innovationcapabilities. At the same time, the Company signi?cantly improved the overall level of its R&D projects, strengthened theinnovation awareness of technical and skilled talents, and fostered a sound research atmosphere.
The Company actively promoted industry innovation and development and achieved remarkable results. In 2024, theCompany led or participated in the development of 24 national, group, and industry standards. It received 14 provincial andmunicipal science and technology progress awards and 2 industry association awards.· The Company developed a ductile iron material with ultra-low-temperature performance for ultra-high-power o?shorewind turbine hubs, signi?cantly improving the safety factor of hubs used in China's Three-North region. The structural designwas optimized to reduce weight, and the project's overall technology reached an internationally advanced level, enhancingthe Company's core competitiveness.
UnitIndicator2024
RMB 100 million
%%
2.27
4.84
6.48
R&D investmentProportion of R&D investmentProportion of R&D personnel
TargetsProgress
Phased Goals(3-5 years)
Continue advancing toward theachievement of phased goals
·Technological Breakthroughs: Complete no fewer than three majortechnical research projects.· New Product Launches: Successfully develop and launch two to threenew products targeting emerging markets or high-end application scenarios,with new product sales accounting for 10%?15% of total revenue.· Patent Growth: Apply for no fewer than 150 patents within ?ve years, withthe number of invention patent applications increasing annually andaccounting for more than 20%; enhance patent commercialization andachieve a patent implementation rate of over 60%.· R&D Team Development: Expand the R&D team to more than 100 people,with senior technical personnel accounting for 15%, and cultivate orintroduce no fewer than three industry-leading talents.
Long-term Goals(5-10 years)
Continue advancing toward theachievement of long-term goals
· Technology Leadership: Become a global technological leader in windpower equipment and other high-end equipment manufacturing ?elds,mastering core cutting-edge industry technologies.· Product Diversi?cation: Develop at least ?ve globally competitive newproduct lines with independent intellectual property rights.· Patent Portfolio: Accumulate over 350 patent applications, with inventionpatents accounting for no less than 30%.· R&D Investment and Collaboration: Maintain R&D investment at 3%?4%of revenue, and establish long-term strategic partnerships with no fewer thanten leading global research institutions and universities.
· The Company developed a 100-metric tons spent fuel transport/storage container, reaching internationally advanced technical
standards, breaking long-standing foreign monopolies, and helping elevate China's position in the global nuclear energy sector.· It carried out research and testing on composite chill blocks, extending service life and optimizing cooling performance,
greatly reducing chill block costs.The Company applied cold dry air technology, promoting the development of new-quality productive forces through R&D andinnovation.
Riyue Intellectual PropertyManagement System Certi?cate
Rixing Foundry Intellectual PropertyCompliance Management System Certi?cate
R&D and Innovation Achievements
Reducing energy costs toachieve green manufacturingSaving human resources andimproving workplace safetyFreeing up crane resources
By using relatively dry, room-temperature high-pressure gas, energy loss is signi?cantly reduced,lowering overall energy consumption.Highly automated and easy to operate, reducing training time and costs and minimizing the risk ofhuman error.Releases crane resources previously occupied by hot air blower hoisting, improving the ?exibilityand e?ciency of the entire production line.
The Company adheres to the principle of "generating patents through projects and applying patents in practice", and hasformulated a series of systems, including the Incentive Measures for Intellectual Property Rights, the Trade Secret ProtectionPolicy, the Patent Management System, the Copyright Management System, the Measures for the Administration of IntellectualProperty, the Intellectual Property Risk Reserve Fund Management System, the Intellectual Property Special Fund ManagementSystem, the Control Procedures for Intellectual Property Implementation, Licensing, and Transfer, the Intellectual Property RiskManagement Procedures, the Contract Management Procedures, and the Intellectual Property Management Procedures forSales and After-Sales, continuously improving its management structure. As of the end of 2024, the Company and one of itssubsidiaries had obtained certi?cation for the intellectual property management system.
Intellectual Property Protection
Intellectual Property Management Structure
R&D CenterO?ce SystemDepartmentLegal A?airs
Responsible for organizing and guiding the operation of the Company's intellectual property managementsystem.
It is responsible for organizing and directing the Company's response to IP infringement risk and litigation.As the designated department for the task, it is responsible for the completion of the intellectual propertyprotection framework and the management system, archiving documents and reporting infringement riskincidents, etc.
4241
The Company built a management platform integrating operations and ?nance, promoted standardized construction ofprocesses and internal controls, accelerated full deployment of the ERP system, sped up the cultivation of interdisciplinarydigital talents, and achieved data valorization, process capability, system clustering, lean operations, and integrated operationsand ?nance, thereby improving the quality and e?ciency of its management system.
SAP Integrated Project Construction
SRM Procurement System Construction
Based on its development strategy and business needs, the Company, driven by technologicalinnovation and focused on optimizing business processes, has carried out digital constructionacross all business areas under the overall coordination of its Digitalization Center, empowering thedevelopment of an e?cient management system and promoting high-quality growth. As of the endof 2024, the Company obtained the integration of informatization and industrialization manage-ment system certi?cation by China Classi?cation Society.The Company has consistently adhered to a digital transformation path of "planning ?rst, manage-ment reform, platform-based foundation, and empowerment for e?ciency improvement". Throughthe dual drivers of optimizing the business management system and building information systems,it promotes the comprehensive implementation of its strategic goals through digital transforma-tion. In 2024, the Company steadily advanced digital transformation in management and produc-tion, achieving signi?cant results.
In September 2024, the Company held the SRM ProjectAcceptance and Commendation Conference to promotethe digital upgrade of procurement management.
SRM Project Acceptance and Commendation Conference Held by the Company
Case
IntellectualPropertyProtection
·Management and Maintenance: Establish an intellectual property log to centrally manage theCompany's patents, trademarks, copyrights, etc. Pay related fees regularly to maintain the validityof intellectual property rights.·Protection and Utilization: Strengthen IP protection, monitor market infringement activities, andtake timely legal action to safeguard the Company's rights. Promote the transformation andutilization of intellectual property to maximize its value.As of the end of 2024, theCompany owned a total of
To enhance management e?ciency, realize human resource management goals, and optimize employee full life cyclemanagement, the Company launched the EHR project to e?ectively support digital development in the HR ?eld.EHR Project Construction
The Company continues to enhance the digital and intelligent transformation of production management by developing anddeploying robots across operations, production, sales, ?nance, and procurement, signi?cantly saving manpower.RPA Digital Workforce
In September 2024, Riyue launched the EHR (HumanResource Digitalization) project to advance the upgradeof its HR system and strengthen digital talent manage-ment capabilities.
EHR Project O?cially Launched
Case
validpatents
In 2024, theCompany was granted
newpatentsDigital Transformation
Rixing Foundry Integration ofInformatization and Industrial-ization Management SystemCerti?cation by China Classi?-cation Society
By building the SRM platform, the Company has achieved the matching and information sharing of logistics, information ?ow,and capital ?ow in supplier management, sourcing, order execution, and ?nancial reconciliation processes, comprehensivelyimproving supply chain management and monitoring capabilities, enhancing supply chain control, and improving overallsupply chain operation e?ciency.
4443
In 2024, the Company applied RPA (Robotic Process Automation) in SAP data maintenance. Through digital tools,data entry and analysis were automated, replacing manual operations, improving work e?ciency, and ensuring100% accuracy in data screening, pushing, and reminders.
Company Optimizes RPA Digital Workforce Project
Case
In July and September 2024, the Company successivelylaunched the FOM system at Plant 4 and Plant 3, integratingproduction data, optimizing process management, enhanc-ing production e?ciency and resource allocation, andstrengthening the quality control system.
Company Launches FOM System
The Company continues to advance intelligent manufacturing, promoting the rollout of the FOM system in all productionfacilities to improve the quality and e?ciency of production management.FOM Intelligent Manufacturing
Valuing Human Resources
The Company complies with the Labor Law of the Peo-ple's Republic of China and has formulated a Recruit-ment Management System, which clearly de?nesrecruitment procedures and standards to ensurefairness and transparency. Upholding the principles ofequal competition and merit-based selection, the Com-pany determines ?nal hiring decisions through compre-hensive evaluation of candidates' skills, experience, andpotential. The Company ?rmly opposes all forms ofdiscrimination, including but not limited to gender,ethnicity, and age, ensuring every candidate has a fairopportunity.
Employee Recruitment
Determinerecruitment method
Job research
First-roundinterview
Salary
negotiation
Salaryapproval
Background
checkPre-onboardingfollow-upOnboardingJob transfer
O?er issuance
Transfernoti?cationTransferapproval
RecruitmentplatformInternal referralHeadhunting
InternalcompetitionPublishannouncementReceive resumes
Case
The Company adheres to a people-oriented approach, focusing on creating a harmonious and pleasantworkplace, actively implementing fairness and justice in employee recruitment and management, payingclose attention to employees' well-being, enforcing labor protection, and safeguarding employees in allaspects to jointly create a better future.
Obtain recruitment requirements
External recruitment
Resume sourcingTalent interview
Determinerecruitment channelsPost job opening
InternalcompetitioncandidateinterviewSecond-roundinterview
Final interview
4645
The Recruitment Management System explicitly requires avoiding any discriminatory terms. Job advertisements are publishedthrough labor markets and other channels. Valid ID veri?cation is mandatory to con?rm actual age, ensuring that new hires areat least 18 years old and preventing the employment of underage workers through falsi?ed age documents. Candidates unableto provide valid identi?cation are not eligible for hiring. No discriminatory behavior is allowed during recruitment based onrace, social class, nationality, religion, disability, gender, sexual orientation, union membership, or political a?liation. Any formof discrimination against female workers, particularly pregnant women, is prohibited.The Company actively expands its talent pool and continuously improves talent structure through campus recruitment, socialrecruitment, and internal recruitment.· Campus Recruitment: Establishes long-term, stable partnerships with numerous universities and attracts top talentthrough a variety of campus events.· Social Recruitment: Widely sources talent from various ?elds through online platforms, job fairs, and cooperation withheadhunting agencies.· Internal Recruitment: Enhances internal recruitment mechanisms, allowing employees to browse and apply for open inter-nal positions via the internal recruitment platform. The Human Resources Center recruitment o?cer conducts initial commu-nication and arranges follow-up interviews.
The Company has formulated a Compensation Management System to ensure the compensation structure is compliant, fair,and reasonable. Employee compensation includes ?xed pay, monthly performance-based pay, and annual performancebonuses. For critical positions that are scarce in the market or senior personnel the Company seeks to attract or retain, a con-tractual pay system is applied. The Company also pays social insurance, housing provident fund, and enterprise annuity foremployees in accordance with the law, and has established a relatively comprehensive employee bene?ts and security system.The Company provides various bene?ts, including meal allowances, housing subsidies, holiday gifts, birthday bene?ts,summer heat subsidies, communication and fuel card support, and free shuttle buses, enhancing employees' sense of satisfaction.Employees enjoy various paid leave, including statutory holidays, marriage leave, home leave, bereavement leave, maternityleave, sick leave, and injury leave that law stipulates. In addition to statutory annual leave and regular personal/sick leave, theCompany has added paternity leave, home visit leave, and other types of time o?.
The Company emphasizes identifying HR management risks, thoroughly analyzes the reasons behind employee turnover, andformulates targeted measures to mitigate retention risks. Each year in June and December, the Company conducts employeesatisfaction and happiness surveys and formulates improvement plans to boost employee satisfaction levels. Survey resultsshow that both employee satisfaction and happiness levels are relatively high.For labor disputes, the Company handles labor con?icts in accordance with relevant laws, regulations, and internal rules,adhering to principles of fairness and justice.
The Company established in-depth cooperation with theSchool of Materials Science and Engineering at JiamusiUniversity. Through campus job fairs and presentation events,the Company shortened the recruitment cycle and attracted alarge number of fresh graduates with matching specialties.
Campus Recruitment at Jiamusi University
Case
IndicatorUnit2024
Total number of employeesMaleFemale
personpersonpersonpersonperson
3,7291,018
30 and below31-50Over 50
1,2332,756
person4,747By genderBy age
The Company o?ers personalized career path planning for employees, clearly de?ning the development stages and requiredskills for di?erent paths. The Company has formulated a Job Grade Management System and Management System for Cadres,clarifying development pathways and management systems for employees and managers. Based on business needs, jobresponsibilities, and employees' capabilities and experience, the Company classi?es sta? into di?erent sequences, grades, andjob levels, and uses various methods to promote and select employees, ensuring smooth transitions between developmentpaths.The Company follows the principle of "distribution according to work, e?ciency ?rst, fairness considered". Based on employeeperformance, growth, and market pay levels, the Company regularly adjusts job grades, positions, and compensation to ensurealignment with employee contributions and performance, and implements diverse incentive schemes to stimulate motivationand creativity.
Promotion and Development
The Company pays attention to the development of its employees, providing a diversi?ed career development platform for alltypes of employees to continuously discover their potential. The Company has developed a Training Management System,established training mechanisms and a mentorship system, and promotes job rotation and temporary assignments to broadenemployee perspectives and experience, enhancing overall quality and adaptability.
Employee training
·New employee training·Pre-job training for various positions.·On-the-job work skills and related safety training.·Job skills training: To learn about standard operation procedure, performance of the equipment used, operating instruction,environmental protection knowledge, safety issues and emergency response measures, with written and operational assess-ments required before being allowed to start work.·Special job roles must undergo training provided by quali?ed institutions, and individuals may only assume duties inde-pendently after obtaining a valid "work permit".·Internal auditor training for quality, health, environment, occupational health and safety, intellectual property, energy man-agement, and the integration of informatization and industrialization management system must be conducted by certi?edinstitutions.·Each work unit may contact and register for job-related training according to their actual needs and make relevant reports.
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
指标单位2024年在职员工数量 人4,747 男性员工人数 女性员工人数
人人
3,7291,018 30岁（含）以下员工人数 30岁-50岁（含）员工人数 50岁以上员工人数
人人人
1,2332,756
博士研究生员工人数 硕士研究生员工人数 本科员工人数 专科员工人数 专科以下员工人数
人人人人人
3,612 生产人员人数 销售人员人数 技术人员人数 财务人员人数 行政人员人数残疾员工人数少数民族员工人数新入职员工人数
人人人人人人人人
3,522
2,673
员工结构
按性别结构划分按年龄划分
按教育程度划分
按专业构成划分
Employee Rights and Interests
Employee development
4847
In July 2024, the Company launched its "Skill Upgrade"training initiative. Through theory-based learning and prac-tical courses, it improved instructional design and presenta-tion skills to promote internal knowledge inheritance andstandardization.
"Skill Upgrade" Training Activities Launched
Case
IndicatorUnit2024
1,604
51.59
16,918.49
%timeRMB 10,000hour
The Company is attentive to employee assistance needs, actively organizes cultural and sports activities, and strives to enhanceemployees' sense of belonging and happiness, further improving corporate cohesion. In 2024, the Company allocated RMB 110,000to support employees in need, helping them address work and life di?culties while strengthening their sense of belonging.Employee Care
In July 2024, the Company launched the "Spark Plan" talent cultivation program to comprehensively advancetalent development in all-media communication and content innovation, further enhancing its talent developmentsystem and talent pipeline.
Company Launches the "Spark Plan"
Case
Coverage of employee trainingNumber of employee trainingTotal training expenditure in the yearTotal length of training in the year
In June 2024, the Company organized a 19 km long-distancetrekking activity, focusing on strengthening employee cohe-sion and willpower. Through team collaboration and interac-tion with nature, the event demonstrated the spirit of perse-verance: "Keep pushing forward, and you will succeed".
Company Organizes Long-distance Trekking Activity
Case
In November 2024, on the occasion of the Company's 40thanniversary, it held the "40 Years of Vibrant Footsteps: Rain-bow Run Celebration". Through the rainbow run, interactiveactivities, and celebratory events, the Company enhancedteam cohesion and the spirit of perseverance.
Company Organizes Rainbow Run Event
Case
The Company attaches great importance to employee health and safety. It has formulated a series of workplace safety and occupa-tional health management systems, including the Workplace Safety Department Management Manual, Safety Inspection andHazard Identi?cation and Recti?cation System, Hazard Identi?cation, Risk Assessment and Risk Control Procedures, Work InjuryAccident Reporting, Handling and Management System, and the Quality, Environment, and Occupational Health and SafetyManagement Manual. These systems clearly de?ne the responsibilities of top management and each functional department,providing solid protection for employee health and safety.By the end of 2024, the Company and three of its subsidiaries had obtained certi?cation for the occupational health and safetymanagement system.
GovernanceEmployee Health and Safety
5049
The Company adheres to the workplace safety policy of "safety ?rst, prevention foremost, and comprehensive management". Itcarries out safety hazard inspections and occupational disease prevention in accordance with its systems, striving to establish astandardized and long-term mechanism for workplace safety. Centered on a people-oriented approach, it continuously improvessafety management in all aspects to safeguard employee health.
Strategy
In terms of workplace safety management, the Company enforces a strict workplace safety responsibility system, requiring allemployees to sign environmental protection and safety responsibility agreements at every level. Following the principle of"shared responsibilities between the Party and government, dual responsibilities for one post, joint management, and account-ability for dereliction", it ensures responsibilities are e?ectively implemented. The Company actively ful?lls its supervisoryresponsibilities by promoting the "7S" visual management model on-site and implementing team-based safety management.Monthly safety and environmental protection meetings and daily team brie?ngs are held to promptly monitor workplace safetyconditions and embed the concept that everyone is responsible for workplace safety. A reward and penalty system is in place,reinforcing education for personnel involved in "three violations" and strictly controlling such behaviors.Regarding safety hazard investigations, the Company conducts annual hazard identi?cation and risk assessment of operationalsites as required by regulations. It also performs comprehensive safety hazard identi?cation and recti?cation, including specialinspections on equipment, electrical facilities, hazardous chemicals, and ?ammable and explosive areas. Identi?ed hazards areaddressed with risk classi?cation and control measures, with deadlines for recti?cation and ongoing follow-ups to ensure imple-mentation. Employees' abilities to identify hazards and self-protect are enhanced, and accident risks are promptly eliminated.For handling safety incidents and work injuries, the Company upholds the "Four No-Pass" principle and has implemented aquanti?able assessment mechanism to strengthen the responsibilities and evaluation of safety managers. Emergency responseplans and specialized contingency plans have been developed. The Company pays work injury insurance premiums for employ-ees and has formulated the Guidelines for Emergency Handling of Safety Accidents, which clearly de?ne the procedures anddepartmental responsibilities for dealing with work injuries, enabling orderly rescue operations, incident investigation, andresponsibility identi?cation.In terms of occupational health management, the Company places great emphasis on employee well-being and has establishedemployee health records and full-process risk prevention and control measures from onboarding to o?boarding.
In?uence, Risk and Opportunity Management
In 2024, the Company actively advanced its workplace safety and occupational healthmanagement. Its subsidiary, Rixing Foundry, obtained the "Level III Enterprise in WorkplaceSafety Standardization (Machinery)" certi?cate.Indicators and Targets
In December 2024, the Company held a training program to enhancesafety management capabilities. The program not only improved safetymanagement knowledge and skills but also helped re?ne company safetymanagement systems and processes, advancing the Company's overallsafety governance.
Safety Management Capacity Enhancement Training
Case
Riyue Occupational Healthand Safety Management
System Certi?cate
Gansu Riyue Occupational Health
and Safety ManagementSystem Certi?cate
Mingling TechnologyOccupational Health and SafetyManagement System Certi?cate
Rixing FoundryOccupational Health and SafetyManagement System Certi?cate
Third-Level Enterprise of WorkplaceSafety Standardization (Machinery)
IndicatorUnit2024
1,927.431,542.4518,082
5.12
—RMB 10,000
hourattendance
%RMB 10,000
%
Regarding safety culture cultivation, the Company takes advantage of the national "Workplace Safety Month" to promote safetyculture and provide training to raise employee awareness of occupational safety.
At the timeof onboarding:
Labor protection supplies such as safety shoes, hard hats, and uniforms are issued to employees.Employee health checkups are uniformly arranged.
O?boarding employees are informed to undergo an exit health checkup.Duringemployment:
Annual occupational health checkups are arranged for employees. Frontline workers and those in high-risk positions
(including outsourced personnel) are examined once a year.
Employees in second-line positions have health checkups every two years.
Employees' health records are maintained, and follow-up examinations and diagnoses are promptly provided for
those with abnormal results.At the timeof o?boarding:
Number of major safety incidentsWorkplace safety investmentTotal duration of safety trainingAttendance of safety trainingSafety training coverage rateInvestment in occupational injuryinsurance for employeesCoverage of occupational injury insurance
5251
Strengthening Quality Management
Quality and Safety Accountability System
Formulate the Company's quality strategic directionFormulate quality policies and quality objectivesStrengthen the process quality system and quality process control, organize quality analysis, corrective actions,and improvements, and implement the quality and safety accountability systemTake the lead in organizing the development of quality and EHS management system documents, productquality inspection systems, and quality inspection standards; regularly carry out system promotion activitiesOperate in accordance with quality inspection standards and ful?ll the quality and safety accountability systemOperate according to the work instruction manual and ful?ll the workplace safety accountability system
Top ManagementDirector of Quality &Safety CenterQuality Management PersonnelPersonnel of Quality andEHS SystemsProduct Inspection PersonnelProduction personnel
Riyue Quality ManagementSystem Certi?cate
Gansu Riyue Quality Management
System Certi?cate
Precision Manufacturing QualityManagement System Certi?cate
Mingling Technology QualityManagement System Certi?cate
Rixing FoundryQuality Management System Certi?cate
Riyi IntelligentQuality Management System Certi?cate
Riyue ManufacturerCerti?cate - BV MODE II SCHEME
Riyue National MilitaryStandard (GJB) Quality Management System
RiyueManufacturer Certi?cate - DNV
RiyueManufacturer Certi?cate - ClassNK
Riyue ManufacturerCerti?cate - Lloyd’s Register
Riyue ManufacturerCerti?cate - China Classi?cation Society
Riyue Manufacturer
Certi?cate - ABS
The Company regards product quality and customer service as the core drivers of corporate develop-ment. It has established and continuously improved a sound quality management system and customerfeedback mechanism, constantly enhancing customer satisfaction and loyalty while solidifying itsleading position in the industry.
The Company has formulated and strictly implemented various management regulations, including the Review and ControlProcedures for Product-related Requirements, the Control Procedures for Production and Service Provision Processes, theAcceptance Procedures for Incoming Raw and Auxiliary Materials, the Nonconforming Product Control Procedures, the Monitor-ing and Measurement Control Procedures for Raw and Auxiliary Materials and Cast Products, the Management Procedures forCasting Quality Inspection, the Control Procedures for New Product Development, the Control Procedures for Non-conformities,the Corrective and Preventive Measures, and the Continuous Improvement Control Procedures. These systems clearly de?ne thequality management structure and responsibilities, enabling quality improvements across processes, products, and manage-ment systems. As of the end of 2024, the Company and ?ve of its subsidiaries have obtained ISO 9001 Quality ManagementSystem certi?cation. The Company has also received factory certi?cations from Bureau Veritas (France) under MODE II, DNV(Norway), ClassNK (Japan), CCS (China Classi?cation Society, China), ABS (USA), and the National Military Standard (GJB) QualityManagement System certi?cation.
GovernanceQuality management
5453
In May 2024, the Company held a job training andtechnical skills competition. Through skill contestsand recognition events, employees' driving opera-tion skills and safety awareness were improved,and professional skills such as protective measuresand hoisting were tested.
Company Conducts On-the-job Training
Case
The Company consistently adheres to the quality policy of "meticulous management, continuous innovation, commitment topromises, continuous improvement, enhancing the "Riyue" brand, and improving customer satisfaction". It builds a rigorousquality control system, scienti?cally responds to quality risks in accordance with procedures, continuously promotes qualityinformatization, fosters a company-wide quality awareness, and cultivates a quality culture, while properly handling productissues to safeguard the Company's reputation and customer interests. The Company has established the Procedures for Risk andOpportunity Control, which clearly de?nes quality information, quality risk assessment (including risk identi?cation, analysis,and evaluation), quality risk response, quality supervision and inspection, quality communication, and record management.
Strategy
In 2024, the Company did not experience any major liability incidents related to product or service safety and quality, nor werethere any product recalls due to quality issues. Its subsidiary, Rixing Foundry, received a Best Quality Award and a "5A"-levelrating in quality credit evaluation.
Indicators and TargetsIn terms of quality supervision and control, the Company conducts full life cycle inspections of its products, covering allstages from raw and auxiliary materials, semi-?nished products, and ?nished products to the production process and shipmentof ?nished products. It analyzes and investigates the root causes of non-conforming products, implements e?ective correctivemeasures, and continuously strengthens quality control. The Company enhances quality control at each stage of new productcasting and old product redesign, organizes process reviews and trial production, and strengthens the quality control of newproducts. Monthly quality review meetings are held to enhance quality supervision. The Company also deepens supplier qualitymanagement by conducting audits of supplier quality management systems and processes according to plan and regularlyevaluates their performance.In terms of quality information management, the Company has established the Quality Information Control Procedures toensure improvements in managing internal and external quality information collection, transmission, processing, quality correc-tion and prevention, and continuous improvement.In terms of quality culture construction, the Company organizes an annual Quality Culture Month. It enhances compa-ny-wide quality awareness through pre-shift meetings and internal network sharing of quality information.
In?uence, Risk and Opportunity Management
To address quality incident events, the Company has established a sound product recall system and process, clarifying the
responsibilities of each department.
Customers can directly communicate their complaints or feedback to the respective after-sales personnel via telephone, email,
or other communication channels. After receiving a complaint, the relevant after-sales personnel adjust the solution based on
the speci?c situation and actual needs of the customer. The Company categorizes complaint events based on urgency to ensure
that each complaint is addressed in a timely and e?ective manner, maximizing customer satisfaction with reasonable demands.
·Carries out product promotion through advertisements and face-to-face introductions, presenting the Company'sbackground, product features, performance advantages, and suitable application areas.·Conducts visits to understand customer needs and provides targeted services accordingly.·Organizes mutual visits between relevant departments to conduct technical and quality exchanges.·Before signing the contract, explains the commercial terms to the customer, clarifying the rights and responsibili-ties of both parties.·Provides quali?ed products and required accessories and reports to the customer in accordance with the custom-ized contract and technical agreement.·If the contract stipulates that transportation shall be handled by the sales company, it arranges the transportationduring product shipment and delivery, ensures the quality of packaging and transportation, and helps customerssave on shipping costs.·Conducts customer follow-ups to understand product quality and usage, as well as customer business conditions,to facilitate timely countermeasures. If a quality issue arises during the process, sales personnel should promptlycoordinate and arrange services.
In November 2024, the Company organized ascreening of the short video "Forging Excellencewith Quality: The Era's Top Craftsmanship Choice"to deepen the cultivation of quality culture.
Company Organizes QualityPromotion Video Viewing
Case
After-sales ServiceDepartment
·Communicates with customers and relays the information to the Product Assurance Section.·Coordinates personnel to con?rm product quality status.
·Re-inspects and analyzes the returned product issues, records the problem details, organizes relevant departmentsfor review, and determines the handling method.WarehousingSection
·Upon con?rmation of a return, arranges a logistics company to transport the goods back.·After the product is returned, con?rms the return status, product, and quantity based on the customer's returninformation. Once veri?ed, the returned goods are relocated, labeled, and isolated in a designated area.ProductAssurance O?ce
The Company attaches great importance to customer experience. It has developed the Measures for the Administration of New
Product Quotation, Sales Business Management Procedures, Measures for the Administration of After-sales Services, Measures
for the Administration of Customer Services, NC Handling Control Process, Customer Satisfaction Evaluation Procedures, and
Customer-related Process Control Procedures to standardize customer service content and enhance the customer service
experience.
Customer Service
Pre-sales Service
In-sales Service
After-sales service
5655
The Company values customer feedback and conducts customer satisfaction surveys, collecting and analyzing satisfaction dataacross six areas: product quality, delivery, coordination, pricing, service, and loyalty, to help the Company accurately identify andfocus on customer needs and expectations.
UnitIndicator2024%%
91.27
Complaint resolution rateCustomer Satisfaction
Protection of Customers’ Information and PrivacyThe Company places great emphasis on information security and customer privacy protection. It guidedRixing Foundry in formulating the Backup and Recovery Management System, Computer and Network UseRegulations, and Computer Room Management System, among others, to ensure the secure operation ofcomputer systems, email systems, ?le systems, and networks, and to protect the rights and interests of theCompany and its users, preventing the leakage of company documents. The Company strengthens theoperation, maintenance, and management of computer systems and networks to ensure their secure,reliable, and stable operation, and comprehensively enhances customer information and privacy protectione?orts, e?ectively safeguarding the Company's reputation and customer interests.
Consolidating Supply Chain Management
The Company continuously strengthens supply chain management by optimizing supplier cooperation,enhancing risk control, improving supply e?ciency, and building a stable, e?cient, and sustainablesupply chain system to lay a solid foundation for steady business development.
The Company has formulated the Supplier Lifecycle Classi?cation Management Speci?cation, the New Supplier AdmissionManagement Procedures, the Supplier Performance Management Procedures, the Supplier Status Classi?cation ManagementProcedures, the Supplier CSR Management Procedures, the Procurement Bidding Management Procedures, the Raw andAuxiliary Materials Procurement Management Procedures, and the Outsourced Processing Procurement Management Proce-dures, among other systems. These clearly de?ne supplier management practices, improve supplier management frameworks,clarify functional responsibilities at each level, and ensure more e?cient and professional division of labor and collaboration,promoting re?ned operations.The Company always adheres to closed-loop supplier management and a robust supply chain layout. It establishes soundinstitutional systems and management frameworks, and is committed to promoting the sustainable development of the entiresupply chain, strengthening dynamic evaluation of suppliers' environmental and social performance to build supply chainresilience.Throughout the full life cycle, the Company identi?es potential risks of suppliers in legal, operational, ?nancial, technical,quality, and delivery aspects, clari?es the identi?ed risks, and evaluates each risk in terms of severity, frequency, and detectabil-ity, then formulates corresponding solutions (preventive measures).
In?uence, Risk and Opportunity ManagementIn terms of supplier management, the Company has clearly de?ned supplier management mechanisms, actively promotessupplier digitalization, and facilitates the development of an interactive platform to enhance the e?ectiveness of suppliermanagement.
·It conducts sourcing evaluations for potential suppliers, assessing their business quali?cations, and environmen-tal impact of production activities.·It sets supplier admission criteria and carries out quali?cation reviews and on-site evaluations based on capabili-ty levels in quali?cation, development, technical expertise, and quality management.·Annually it evaluates supplier performance through on-site audits and document reviews in terms of supplyquality, delivery, cost, service, and technical capability.·Suppliers failing the annual review are classi?ed as high-risk suppliers and subject to management controls. Aftera three-month recti?cation period, re-evaluation is conducted. Suppliers who fail the re-evaluation are directlydowngraded to eliminated suppliers.·Based on evaluation results, suppliers are classi?ed into four levels: A, B, C, and D. D-level suppliers are requiredto rectify within a deadline; if unable to meet company requirements, they are listed as eliminated suppliers andcannot be re-engaged within one year.·Suppliers are categorized annually into strategic, cooperative, contractual, and general transaction types basedon the importance of strategic materials and supplier dependency. Supplier development strategies areformulated based on comprehensive supplier performance.
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
披露项单位2024年
135.26
113.60
21.66
16.01
806.89
42.24
325,370.0857,125.85198,529.81
29.00
994.86
9,844.37
163.68
1,607.3856,069.421,005.71266,687.571,607.3857,075.1311,451.751,607.38
0.49
3.52
0.49
83,877.5
980.0
82,897.5
15.5
7.8
4.0
3.7
4.0
1.5
165.05
329,703.33,219.2
375.8
28,252.8294,373.1
3,482.0
793.96
the customersatisfaction score waspoints
91. 27
the complaintresolution rate was100%
Governance
Strategy
Supplier SourcingAccess of SuppliersEvaluation ofSuppliersSupplier TieredClassi?cationManagement
5857
In November 2024, the Company launched a mold supplier interaction platform to improve compliance in moldmanufacturing and process control and promote digital development in supplier management.·Process Quotation Document Inquiry: Enables all demand departments to query process documents used forquotations, facilitating uni?ed documentation and restricting suppliers' access to ensure customer data security.·Mold Manufacturing Progress Inquiry: Allows for checking the progress of all molds under development tofacilitate progress control and document collection during new product development.·Online Communication and Interaction: The platform provides real-time information transfer, task publication,and auto-noti?cations via Lark/email, allowing both parties to communicate at any time, solve mold developmentissues promptly, improve communication e?ciency, and reduce errors. All communication records are traceable.·Supplier Bulletin Board: Open to all mold suppliers, it is used to publish noti?cations, standard updates, andchanges to management systems.·Mold Suggestion Collection Form: Collects feedback and suggestions regarding mold manufacturing and usefrom across the Company. Any issues or concerns encountered during mold manufacturing and production can besubmitted via the platform by both internal sta? and suppliers.
Mold Supplier Interaction Platform Launched
Case
UnitIndicator2024
————
Number of suppliers by geographical regionNumber of suppliers from the Chinese mainlandNumber of suppliers from Hong Kong, Macao and Taiwan, ChinaNumber of suppliers from foreign countriesIn terms of responsible supply chains, the Company integrates supplier sustainability into procurement processes and manage-ment, focusing on supplier social responsibility, energy conservation, emissions reduction, and anti-corruption. The Companyenhances supplier awareness of social responsibility and carbon reduction through training, and requires suppliers to sign theSupplier Integrity Agreement to promote sustainable development across the supply chain.In supply chain risk response, the Company has established a comprehensive risk response mechanism to minimize the negativeimpact of risks on the Company.
The Company actively promotes collaboration with suppliers to build a more resilient supply chain. As a leading enterprise in thecasting industry chain, the Company collaborates with domestic riser R&D and manufacturing enterprises to conduct keyresearch and joint problem-solving on core wind power casting product processes, promoting breakthroughs in domesticsubstitution for certain imported risers, thereby enhancing the core competitiveness of the industry chain and supply chainsecurity level.
Spreading Social Warmth
Company Conducts Public Science Education
Case
In June 2024, under the theme "Igniting Dreamswith Technology, Building the Future Together",the Company held science education activities toenhance students' scienti?c literacy and promotetheir overall development.
The Company is committed to leveraging its strengths to support local community development and promote regional econom-ic growth. In 2024, the Company made localized purchases of over RMB 350 million for mold and product processing services,helping more than eight local enterprises expand production capacity and creating over 120 new jobs. The Company activelyresponded to the call for rural revitalization, investing RMB 10.2 million throughout the year to support rural assistance e?orts.
Supply Chain Risk Response Mechanisms and Measures
Risk AvoidanceRisk Reduction
·For highly probable and signi?cantly impactful risks (e.g., geopolitical risks a?ecting supply), the Company mayswitch suppliers to avoid sourcing from certain regions.·For risks that cannot be fully avoided, measures are taken to mitigate their impact.·Sign long-term contracts with suppliers to lock in raw material prices and reduce price ?uctuation risks.·Establish safety stock to cope with short-term supply interruptions.
·Transfer part of the risk to insurance companies by purchasing insurance, such as transport insurance to coverlosses during shipment; or clarify risk responsibilities in contracts to transfer risk to partners.·For risks with low probability and minor impact (e.g., occasional small-scale logistics delays), continuousmonitoring is conducted.Risk TransferRisk Acceptance
In 2024, the Company made every e?ort to build a supply chain ecosystem, actively leveraging its platform advantages andencouraging suppliers with positive values and strong innovation and development ambitions to grow together with theCompany. In 2024, the Company conducted 28 on-site supplier audits and found no zero-tolerance issues such as child labor orforced labor. The signing coverage rate of the Supplier Integrity Commitment Letter reached 100%. In the future, the Companywill continue to introduce and cultivate high-quality supplier partners to gradually realize healthy competition and a virtuouscycle within the supply chain ecosystem.
Indicators and Targets
The Company places great emphasis on ful?lling its social responsibilities. It has formulated the ExternalDonation Management System and the Volunteer and Public Welfare Activity Management System tostrengthen donation management and encourage employees to actively engage in public welfare activities,thereby ful?lling the Company's social responsibilities. In 2024, the Company actively participated in publicwelfare activities and organized donations totaling RMB 1.09 million.Meanwhile, the Company vigorously promoted public science education to bring technology into schools,injecting fresh vitality into campus innovation and sowing the seeds of science for future talent development.
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
指标单位2024年在职员工数量 人4,747 男性员工人数 女性员工人数
人人
3,7291,018 30岁（含）以下员工人数 30岁-50岁（含）员工人数 50岁以上员工人数
人人人
1,2332,756
博士研究生员工人数 硕士研究生员工人数 本科员工人数 专科员工人数 专科以下员工人数
人人人人人
3,612
员工结构
按性别结构划分
按年龄划分
按教育程度划分
按专业构成划分
6059
Lean FoundationJoint Promotion ofProsperity
指标单位2024年在职员工数量 人4,747 男性员工人数 女性员工人数
人人
3,7291,018 30岁（含）以下员工人数 30岁-50岁（含）员工人数 50岁以上员工人数
人人人
1,2332,756
博士研究生员工人数 硕士研究生员工人数 本科员工人数 专科员工人数 专科以下员工人数
人人人人人
3,612 生产人员人数 销售人员人数 技术人员人数 财务人员人数 行政人员人数残疾员工人数少数民族员工人数新入职员工人数
人人人人人人人人
3,522
2,673 应届毕业生人数 社会招聘员工人数员工社会保险缴纳覆盖率安全培训总次数安全生产投入安全培训总时长安全培训参与人次安全培训覆盖率工伤保险覆盖率从业人员职业伤害保险投入金额从业人员职业伤害保险覆盖人数安全生产责任险投入金额安全生产责任险人员覆盖率重大安全事故量因工伤损失工作日数职业病发生数量职业病发生率职业病发生率
人人%次万元小时人次
%%万元
人万元
%
起
日
件
%
%
2,588
1,542.4518,082
5.12
31.3
59.31
3,315.5
0.04
0.04
按性别结构划分
按年龄划分
按教育程度划分
按专业构成划分
按招聘渠道划分
员工帮扶投入体检及健康档案覆盖率员工培训场次员工培训支出员工培训总时长员工平均培训时长员工培训参与总人次员工培训覆盖率
万元
%
次万元小时小时人次
%
1,604
51.59
16,918.49
3.56
130,019
应届毕业生人数 社会招聘员工人数员工社会保险缴纳覆盖率安全培训总次数安全生产投入安全培训总时长安全培训参与人次安全培训覆盖率工伤保险覆盖率从业人员职业伤害保险投入金额从业人员职业伤害保险覆盖人数安全生产责任险投入金额安全生产责任险人员覆盖率重大安全事故量因工伤损失工作日数职业病发生数量职业病发生率职业病发生率
人
人
%
次万元小时人次
%
%万元
人万元
%
起
日
件
%
%
2,588
1,542.45
18,082
5.12
31.3
59.31
3,315.5
0.04
0.04
按性别结构划分
按雇员类型划分
员工帮扶投入体检及健康档案覆盖率员工培训场次员工培训支出员工培训总时长员工平均培训时长员工培训参与总人次员工培训覆盖率
万元
%
次万元小时小时人次
%
1,604
51.59
16,918.49
3.56
130,019
男性员工受训人数 男性员工受训比例 男性员工人均培训时长 女性员工受训人数 女性员工受训比例 女性员工人均培训时长
人
%小时
人
%小时
3,729
3.83
1018
2.59
高级管理层员工受训人数 高级管理层员工受训比例 高级管理层员工人均培训时长 中级管理层员工受训人数 中级管理层受训比例 中级管理层员工人均培训时长 基层员工受训人数 基层员工受训比例 基层员工人均培训时长参与员工满意度调查的员工数量参与员工满意度调查员工数量占比员工满意度得分
人
%小时
人
%小时
人
%小时
人
%分/%
3.77
25.13
4,715
3.44
15.57
86.00
91.27
1,353
6.48
4,7563,7361,020
发生的产品和服务相关的安全与质量重大责任事故损害涉及的金额因健康与安全原因须撤回和召回的产品数量
万元0
件0
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
The Company fully advanced the optimization and upgrading of its corporategovernance system, upheld the leadership of the Party as the core, deepened thedevelopment of the "Three Boards and One Management" governance structure,improved decision-making and supervisory mechanisms, enhanced governancee?ciency, strengthened business ethics management, proactively disclosedinformation to stakeholders, consciously accepted social supervision, and ensuredthe Company's stable and long-term development.
6261
The Company has consistently adhered to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era anddeeply implemented the principle of "maintaining the two consistencies". Emphasizing theoretical learning, political andideological development, and the ful?llment of political responsibilities, the Company continuously enhanced the politicaljudgment, comprehension, and execution capabilities of the central Party organization and its members. It strengthened theParty organization's functions of "setting direction, managing the overall situation, and ensuring implementation". Partybuilding e?orts steadily advanced, ensuring the Company maintains the right development path and scienti?c, democraticdecision-making.The Company steadily promoted the development of Party branches through activities such as "Three Meetings and OneLecture", themed Party Days, and Party-building brand enhancements. As of the end of 2024, the Company had 81 Partymembers across subsidiaries, conducted 28 Party Day events, and established over 10 exemplary Party posts, assault teams,and Party member task forces in major projects and tasks.
The Company ?rmly upholds the leadership of Party building in driving enterprise development and integrates Party-buildingwork into production and business activities. Through strengthening the Party member team and advancing corporate culture,it continuously enhances the Company's core competitiveness and market in?uence.
Optimizing the Governance System
"Retracing the Long March, Honoring Our Original Aspiration" Party Building Event
Case
In June 2024, the Company organized a Party Building Eventthemed "Retracing the Long March, Honoring Our OriginalAspiration". By revisiting Red history and rea?rming theoath of Party membership, participants deeply learned fromthe great spirit and enhanced their sense of mission.
Directors are elected or replaced by the General Meeting of Shareholders. The term of o?ce for directors is three years, andupon expiration, they may be re-elected for consecutive terms. A director may concurrently serve as the General Manager orother senior management personnel, but the number of directors concurrently serving as General Manager or other seniorexecutives, together with those serving as employee representatives, shall not exceed half of the total number of directors of theCompany. The General Meeting of Shareholders may adopt a cumulative voting system for the election of directors.
The Board of Directors is the Company's permanent decision-making body and is accountable to the General Meeting of Share-holders. The Board of Directors consists of nine members, including six non-independent directors and three independentdirectors, with one chairman.The Company has established four specialized committees under the Board of Directors: the Strategy Committee, the AuditCommittee, the Nomination Committee, and the Remuneration and Appraisal Committee. These committees research profes-sional matters and provide expert recommendations to support the Board of Directors decisions. All committee members aredirectors. In 2024, the Company held seven meetings of the Board of Directors and reviewed and approved 38 proposals; it alsoheld one meeting of the Strategy Committee, six meetings of the Audit Committee, one meeting of the Nomination Committee,and three meetings of the Remuneration and Assessment Committee.
Board of Directors
UnitIndicator2024
personpersonpersonperson
Number of Directors in the Board of DirectorsMaleFemaleNumber of Independent Directors
Guided by the Party's advanced ideology, the Company thoroughly implemented the requirements ofParty building, re?ned governance structures, and provided a solid guarantee for high-quality develop-ment and greater social value creation.
Leading Role of Party Building
The General Meeting, the Board of Directors,the Board of Supervisors, and the ManagementThe Company has established and keeps improving the corporate governance structure where the General Meetings of Share-holders act as the governing body, the Board of Directors serves as the decision-making body, special committees of the Boardof Directors provide decision-making support, the management executes decisions, and the Board of Supervisors overseesoperations. With all rights and obligations clearly delineated, the General Meetings of Shareholders, Board of Directors, Boardof Supervisors, and the management perform their respective duties and responsibilities, coordinate with each other andmaintain checks and balances.
Strategy Committee
Shareholders'General Meeting
Board of Supervisors
The Management
Audit CommitteeNomination CommitteeRemuneration andAppraisal Committee
Board Operations
Department
Corporate Governance Structure
Board of Directors
6463
The number and composition of the Company's Board of Supervisors comply with relevant laws, regulations, and the Articlesof Association. The convening and procedures of the Board of Supervisors strictly comply with the Company Law, the Articlesof Association, and the Company's Rules of Procedure for the Board of Supervisors. Supervisors diligently ful?ll their duties,acting in the spirit of responsibility to the Company and all shareholders. They lawfully and independently supervise theCompany's ?nances and the legality and compliance of the performance of directors and senior management.The Board of Supervisors comprises three members, with one serving as the Chairman. The Company's supervisors includeboth shareholder representatives and employee representatives, with one employee representative. The Company held 7meetings of the Board of Supervisors in 2024.Each term of o?ce for supervisors is three years. Supervisors representing shareholder representatives shall be elected orreplaced by the General Meeting of Shareholders, while those representing employee representatives shall be democraticallyelected or replaced by the employees of the Company. Supervisors may be re-elected upon expiration of their term.
Board of Supervisors
The Company has one general manager, appointed or dismissed by the Board of Directors. The Company's senior manage-ment strictly implements resolutions of the Board of Directors in accordance with national laws, regulations, and corporategovernance systems, and performs their duties with loyalty and diligence.The Management
Directors' compensation proposals are made by the Board of Directors, and supervisors' compensation proposals are made bythe Board of Supervisors. These are implemented upon review and approval by the General Meeting of Shareholders. TheCompany formulates compensation plans based on the speci?c responsibilities, roles, and performance of directors, supervi-sors, and executives. Actual payment is linked to organizational and individual performance. Independent directors receive anallowance and no other remuneration; external supervisors not a?liated with the actual controller's enterprise system receivea supervisor allowance.
Compensation of Directors, Supervisors and Management
The Company has established systems such as the Information Disclosure Management System and Internal Reporting Systemfor Signi?cant Information to ful?ll all information disclosure obligations in accordance with laws and regulations, ensure thatall disclosures are truthful, accurate, complete and timely, and guarantee that investors have equal access to company informa-tion. In 2024, the Company continued to strengthen the management of information disclosure a?airs, timely and lawfullyful?lled its disclosure obligations, ensuring full and proper disclosure.In 2024, the Company proactively released 135 public disclosure documents, including four periodic reports, 80 interimannouncements, and 51 other online documents, enabling investors to fully and accurately understand the Company’s opera-tions and make well-informed investment decisions.
Investor Relations Management
High-Quality Information Disclosure
The Company has formulated an Investor Relations Management System, improved investor protection mechanisms, andstrengthened communication with current and potential investors to establish long-term, stable, and positive relationships.The Board O?ce is responsible for investor relations management, with designated personnel handling daily tasks. The Compa-ny has established a sound internal information management mechanism and a uni?ed information platform. Departmentswork collaboratively to support investor relations.The Company actively updates its website and WeChat account, and strengthens investor communication through platformslike Shanghai Stock Exchange E-interaction, investor hotlines, emails, on-site research visits, and performance brie?ngs,attentively listening to investor feedback.In 2024, the Company held 3 performance brie?ngs, 19 investor meetings, responded 27 times on online platforms, and partici-pated in investor interactions with a cumulative total of 275 institutions and 439 individual investors.
The Company is committed to building close, harmonious, and mutually bene?cial relationshipswith investors to support its long-term development.
Investor Relations Management
66656667
National Investor Protection Publicity Day Event
CaseThe Company organized activities for the May 15 NationalInvestor Protection Publicity Day, demonstrating its com-mitment to high-quality capital market development andimplementation of investor protection with actual actionsand enhancing investor satisfaction, sense of gain, andsecurity.
Company Conducts "World Investor Week 2024" Series Events - "Technologyand Digital Finance" and "Sustainable Finance"
Case
In October 2024, the Company launched a series of "World InvestorWeek 2024" events under the themes of "Technology and DigitalFinance" and "Sustainable Finance". These e?orts supported theimplementation of the Third Plenary Session of the 20th CPC Cen-tral Committee, the Central Financial Work Conference, the new"Nine National Articles", and the China Securities Regulatory Com-mission's responsibilities.
The Company strictly complies with national laws and the Rules of Procedure for the General Meeting of Shareholders whenconvening General Meetings of Shareholders, ensuring shareholders can exercise their voting rights according to law.·General Meetings of Shareholders are held on-site, with online voting or other options available to facilitate participation.·Shareholders attending meetings have the right to speak on each agenda item. Except for matters involving commercialsecrets, directors, supervisors, and senior management provide explanations in response to shareholder inquiries at the Gener-al Meeting of Shareholders.·For signi?cant matters a?ecting minority shareholders, separate vote counting is conducted and results disclosed promptly.·For related-party transactions, related shareholders are required to recuse themselves.·For elections involving two or more directors or supervisors at the General Meeting of Shareholders, a cumulative votingsystem is used.·All agenda proposals are voted on individually; for multiple proposals on the same matter, voting follows the order in whichthey were submitted.In 2024, the Company convened one annual general meeting and two extraordinary general meetings, at which 13 proposalswere reviewed and approved, with a 100% attendance rate by the directors.The Company actively monitors capital market developments, persists in creating value for shareholders, and continues toimprove the shareholder return mechanism. We tried all e?orts to reward investors actively through transparent, stable, andsustainable dividend distributions and performance growth, with the long-term interests of the Company, the overall interestsof all shareholders and sustainable development taken into consideration.
2024
timetimeattendancetimetime
Performance presentationNumber of investor exchangesNumber of investors receivedNumber of platform responsesNumber of investor calls answered
UnitIndicator
Protecting Shareholders
,
Rights and Interests
6867
Observing Business Ethics
The Company continuously revises and improves documents such as the Implementation and Management System for IntegritySupervision, the Whistleblower Management System, and the Code of Integrity for Procurement Personnel, standardizinganti-commercial bribery and anti-corruption e?orts. It strengthens the supervision and management of positions and areasprone to corruption to ensure the e?ective implementation of anti-bribery commitments, and consciously resists unethicalbehavior such as seeking personal gain at public expense, breach of trust, and fraud, thereby establishing a good corporateimage.
Strengthening Internal Risk Control
The Company places great emphasis on risk internal controls, continuously optimizes the internalcontrol system, ensures standardized and orderly business processes, builds risk management mecha-nisms, and accurately identi?es, assesses, and responds to risks. It strictly complies with regulations andpromotes lawful operations, establishing a solid foundation for sustainable development.
Company Conducts Compliance Training
CaseFrom November to December 2024, the Company held a management training program titled "Application of Compli-ance in Management Systems" to empower the management team in strengthening their compliance capabilities.
Launch of Contract Template Knowledge Base
Case
In October 2024, the Company established and launched a contract template library, including standard procure-ment contract templates, bidding-related contract templates, other contract templates, and human resourcesagreement templates, to standardize contract drafting and reduce legal risks caused by negligence or errors.
The Company places great importance on business ethics and is committed to establishing an honest and fair business environ-ment. It strictly adheres to fair competition rules and has formulated an Integrity Management System to guide employees andrelated stakeholders (such as customers and suppliers) to act in accordance with the law and uphold honesty and integrity. TheCompany guided its subsidiary, Rixing Foundry, to formulate the Business Ethics Code Control Procedures, which speci?esrequirements concerning con?ict of interest, acceptance of gifts, protection and utilization of company assets and intellectualproperty, and protection of whistleblowers.
Anti-unfair Competition
The Company strictly abides by regulatory requirements, the Company Law, the Articles of Association, and other applicablelaws and regulations, and continuously improves its internal control management system, which centers on internal environ-ment, risk assessment, control activities, information and communication, and internal supervision, to achieve comprehensivecoverage, focused priorities, and e?ective control. It has clearly de?ned the roles and responsibilities of the Board of Directors,the Audit Committee, the Board of Supervisors, and the management in the internal control mechanism, and has establishedand continuously improved its internal control system. The Company has formulated the Internal Audit System, Internal AuditWork?ow, Annual Audit Plan, and Internal Audit Manual, and conducts special audits, ad hoc audits, and exit audits for theCompany and its subsidiaries in an orderly manner. It also continuously provides professional training and vocational educationto develop a tiered internal audit talent pool to meet the Company's development needs.
Internal Control
The Company places high importance on risk management and consistently prioritizes the prevention of major risks. The AuditCommittee of the Company’s Board of Directors assesses operational risks, supports and urges the management team toimprove its risk management. At the same time, the Company has clari?ed the roles and responsibilities of the Board ofDirectors, the Audit Committee, the Board of Supervisors, and the management in risk management work, established andcontinuously improved its risk management system, actively carried out risk control training, and strengthened risk manage-ment through multiple measures.Each year, based on risks and opportunities in ?nance, operations, and compliance, the Company organizes departments andsubsidiaries to identify and assess risks and opportunities in accordance with the Procedures for Risk and Opportunity Control,and compiles a Risk and Opportunity Evaluation Form.The Company has not had any major risk incidents in 2024.
Risk Management
The Company attaches great importance to legal and compliant operations, formulates compliance inspection plans, conductsmonthly compliance inspections, compiles a Compliance Inspection Nonconformity Follow-up Form, regularly follows up onrecti?cations, and conducts spot checks on key areas of compliance. Meanwhile, the Company conducts compliance trainingfrom time to time to cultivate a culture of compliance and enhance compliance management capabilities.
Regulatory Compliance in Business Practice
The Company actively builds a rigorous prevention and control system, integrating anti-corruption andanti-bribery e?orts into all aspects of its operations, demonstrating its sense of responsibility throughconcrete actions.
Anti-commercial Bribery and Anti-corruption
·Personnel in key sections and positions are covered by a commitment system of commercial bribery prevention, with person-nel at key positions signing an Integrity Commitment Letter for Procurement Personnel with the Company;·All customers, suppliers, service providers and contractors doing business with the Company must sign an Anti-BriberyCommitment Letter for Suppliers;·The Company has established a Sunshine Feedback Platform internally;·Training and promotion of policies related to integrity are carried out.
The Company has established an Anti-Corruption and Anti-Bribery Control Procedure, clearly stipulating:
7069
Key Performance Indicators
IndicatorUnit2024Total water consumption Fresh water consumption Recycled water consumptionProportion of recycled water consumptionWater consumption intensity (based on revenue)Energy consumption intensity (based on revenue)Total energy consumption Bituminous coal consumption Anthracite coal consumption Coke consumption Gasoline consumption Diesel oil consumption Natural gas consumption Lique?ed petroleum gas consumption Photovoltaic power consumption Outsourced electric power Outsourced heating powerFossil energy consumption (direct)Non-fossil energy consumption (direct)Purchased energy consumptionClean energy consumptionRenewable energy consumptionProportion of non-fossil energy consumptionProportion of clean energy consumptionProportion of renewable energy consumptionDischarge of wastewater Discharge of industrial wastewater Discharge of domestic wastewaterEmissions of Category II pollutants COD Suspended solids Other Category II pollutants in wastewaterNumber of wastewater treatment facilities
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
Processing capacity of wastewater treatment facilities
10,000 metric tons10,000 metric tons10,000 metric tons
%
metric ton / RMB 1,000,000metric ton / RMB 1,000,000
TCEmetric tonmetric tonmetric tonmetric tonmetric ton10,000 m
metric ton
TCE10,000 kWh
GJ
TCE
TCE
TCE
TCE
TCE
%%%metric tonmetric tonmetric tonmetric tonmetric tonmetric tonmetric tonmetric ton
| 10,000 m |
135.26
113.60
21.66
16.01
806.89
48.49
375,098.6621,329.6160,945.30236,133.03
10.59
686.62
271.29
95.48
1,607.3864,980.5129,475.62292,624.53
1,607.3880,866.754,903.581,607.38
0.43
1.31
0.43
83,877.5
980.0
82,897.5
15.5
7.8
4.0
3.7
4.0
| 1.5165.05329,703.33,219.2375.828,252.8294,373.13,482.0104793.96 |
Energy
Wastewater
Water
废气
Total exhaust gas emissions
Exhaust pollutant emissions NOX SO
Volatile organic compounds (VOCs) PM Other exhaust pollutantsNumber of waste gas treatment facilitiesProcessing capacity of waste gas treatment facilitiesTotal solid waste generated
General industrial solid waste (non-hazardous waste) generated
Hazardous waste generatedTotal solid waste disposed
General industrial solid waste (non-hazardous waste) dispose
Hazardous waste disposed
General industrial solid waste generation intensity (based on revenue)
Hazardous waste generation intensity (based on revenue)Total GHG emissions
| 100 million m? |
kgkgkgkgkgkgSet100 million m?/year
metric tonmetric tonmetric tonmetric tonmetric tonmetric ton
metric ton / RMB 1,000,000metric ton / RMB 1,000,000
tCO
e
43,305.9
327.9
42,527.243,447.5
308.2
43,305.9
45.9
0.4
1,429,335.93 Scope 1 emissions Scope 2 emissions
1,077,408.22
351,927.72
139.88
45.69
By scope
RMB 10,000RMB 10,000RMB 10,000
1,927.43
22.41
GHG emissions intensity (Scope 1)(based on revenue)GHG emissions intensity (Scope 2)(based on revenue)
329,703.3
3,219.2
375.8
28,252.8294,373.1
3,482.0
793.96
| 135.26113.6021.6616.01806.8942.24325,370.0857,125.85198,529.8129.00994.869,844.37163.681,607.3856,069.421,005.71266,687.571,607.3857,075.1311,451.751,607.380.493.520.4983,877.5980.082,897.515.57.84.03.74.01.5165.05 | ||
Environmental
GHG Emissions
Investment inEnvironmentalProtection
Solid Waste
Exhaust Gas
tCO
etCO
etCO
e / RMB 1,000,000tCO
e / RMB 1,000,000Amount of signi?cant administrative penaltiesimposed by environmental authorities due to environ-mental incidentsTotal investment in environmental protectionEnvironmental protection tax paid
(continued)
7271
Social
IndicatorUnit2024Number of in-service employees
person4,747MaleFemale
person
person
3,7291,01830 and below31-50Over 50
person
person
person
1,2332,756
PhDMaster's degreeBachelor's degreeAssociate degreeBelow associate degree
person
person
person
person
person
3,612
person
person
person
person
person
person
person
person
3,522
2,673 Recent graduates Social recruitmentEmployee coverage rate for social insuranceTotal number of safety training sessionsWorkplace safety investmentTotal duration of safety trainingAttendance of safety trainingSafety training coverage rate
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
Coverage of occupational injury insurance
personperson
%timeRMB 10,000
hourattendance
%
| % |
2,588
1,927.431,542.4518,082
Remuneration and Bene?ts
OccupationalHealth and SafetyManagement
EmployeeComposition
By gender
By age
By degree of education
By profession
By recruitment channel
Production personnel Sales Technical personnel Financial personnel Administrative personnelPeople with disabilitiesEthnic minoritiesNewly recruited employees
(continued)
5.12
31.3
59.31
3,315.5
0.04
0.04
Investment in occupational injury insurance for employees
Coverage of occupational injury insuranceAmount invested in workplace safety liability insuranceCoverage of workplace safety liability insuranceNumber of major safety incidentsNumber of occupational disease casesOccupational illness incidence rate
| RMB 10,000 |
%RMB 10,000
%
—
—
%
31.3
59.31
0.04
| 5.12 | ||
Care and Support
By gender
Employee category
investment in employee assistanceCoverage of physical examinations and medical recordsNumber of employee training sessionsEmployee training expenditureTotal length of employee trainingAverage length of training per employeeTotal number of employee training participantsCoverage of employee training
RMB 10,000
%timeRMB 10,000
hourhourattendance
%
1,604
51.59
16,918.49
3.56
130,019
Number of male employees trained Training coverage of male employees Average training duration for male employees Number of female employees trained Training coverage of female employees Average training duration for female employees
person
%hourperson
%hour
3,729
3.83
1,018
2.59
Senior management employees trained
Training coverage of senior management employees trainedAverage training duration for senior management employees
Middle management employees trainedTraining coverage of middle management employees
Average training duration for middle management employees
Number of primary employees trainedTraining coverage of primary employees
person
%hourperson
%hourperson
%
| hour |
3.77
25.13
4,715
| 3.4474315.5786.00客户满意度调查数量客户满意度调查覆盖率客户满意度得分客户投诉数量客户投诉解决完成率数据安全事件涉及的金额泄露客户隐私事件数量研发投入金额研发投入占营业收入比例研发人员数量研发人员占比申请专利数量 发明专利申请数量 实用新型专利申请数量 外观设计专利申请数量授权专利数量 发明专利授权数量 实用新型专利授权数量 外观设计专利授权数量有效专利数量商标权数量软件著作权数量供应商数量 中国大陆供应商数量 港澳台地区供应商数量 海外供应商数量审查的供应商数量因不合规被中止合作的供应商数量因不合规被否决的潜在供应商数量获得ISO 9000认证的供应商数量获得ISO 14000认证的供应商数量获得ISO 45001认证的供应商数量签订《廉洁从业责任书》的供应商数量供应链重大风险与影响事件数量应付账款（含应付票据）余额应付账款（含应付票据）余额占总资产的比重逾期未支付中小企业款项的金额逾期未支付款项金额缴纳税费金额公益活动志愿者参与人数社区投资范畴所投入时间乡村振兴投入金额家%分/%件%万元件万元%人%件件件件件件件件件件件家家家家家家家家家家家件万元%万元万元万元人小时万元4110091.271,353100003086.481861202151601749787486815280112910010086804,7563,7361,020 | ||||
Developmentand Training
OccupationalHealth and SafetyManagement
All full-time employees are in Chinese Mainland.
7473
(continued)(continued)
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
按雇员类型划分
男性员工受训人数 男性员工受训比例 男性员工人均培训时长 女性员工受训人数 女性员工受训比例 女性员工人均培训时长
人%小时人%小时
3,729
3.83
1018
2.59
Number of employees participating in the employee
satisfaction surveyPercentage of employees participating in the employeesatisfaction survey
Employee satisfaction score
| person |
%point
15.57
86.00
Number of customer satisfaction surveys conductedCoverage of customer satisfaction surveyCustomer satisfaction scoreNumber of customer complaintsCustomer complaint resolution rateAmount involved in data security incidentsNumber of customer privacy breach incidentsR&D investmentProportion of R&D investment to operating revenueNumber of R&D personnelProportion of R&D personnelNumber of patent applications Number of invention patent applications Number of utility model patent applicationsNumber of authorized patents Number of invention patents authorized Number of utility model patents authorizedNumber of patents in forceNumber of trademark rightsNumber of software copyrightsNumber of suppliers Number of suppliers in China (the Chinese mainland) Number of suppliers in China (Hong Kong, Macao and Taiwan)
Number of overseas suppliersNumber of suppliers reviewedNumber of suppliers suspended for non-complianceNumber of potential suppliers rejected for non-compliance
| Number of ISO 9000 certi?ed suppliers |
—
%point
—
%RMB 10,000
—RMB 100 million
%person
%
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
91.27
1,353
2.27
4.84
6.48
| 129 |
EmployeesatisfactionrateProduct Safetyand Quality
Customer Serviceand Rights
Innovation andDevelopment
Intellectual PropertyProtection
SupplierManagement
Amount involved in major liability incidents relatedto product and service safety and quality
Number of products withdrawn and recalled due to healthand safety reasons
RMB 10,000
—
平等对待中小企业
Number of ISO 14000 certi?ed suppliers
Number of ISO 45001 certi?ed suppliersNumber of suppliers that have signed the IntegrityCommitment Letter
| 4110091.271,353100003086.4818612021516017497874868152801129100 |
4,7563,736
SupplierManagementManagement ofSupply Chain LinksSocial Welfare
| Rural Revitalization— |
———person
hour
Governance
IndicatorUnit2024Number of members of Board of Directors Number of Independent Directors Non-independent directors
personpersonperson
PhD Master's degree Bachelor's degree or below
personpersonperson
Male Female
personperson
31?50 Over 50Number of meetings of the Board of Directors
RMB 10,000Number of meetings of the Audit Committee
personpersontime
| time |
OrganizationStructure andFunctions
By educational background
By gender
By age
| 按学历划分 |
Number of major risks and impact events in thesupply chain
Number of volunteers participating in public-interest activities
Time invested in community investment activitiesAmount invested in rural revitalization
7675
Company Names and Abbreviations
AbbreviationFull NameRiyueRixing FoundryEssence MetalYuexing MetalRiyue Nuclear EquipmentPrecision ManufacturingMingling TechnologyRiyi IntelligentGansu RiyueJiuquan ZhexinnengZhixin TestingRiyue New EnergyBenxi Liaocai
Riyue Heavy Industry Co., Ltd.Ningbo Rixing Foundry Co., Ltd.Ningbo Essence Metal Machinery Co., Ltd.Ningbo Yuexing Metal Machinery Co., Ltd.Ningbo Riyue Nuclear Equipment Manufacturing Co., Ltd.Ningbo Riyue Essence Precision Manufacturing Co., Ltd.Ningbo Mingling Technology Co., Ltd.Ningbo Riyi Intelligent Equipment Co., Ltd.Riyue Heavy Industry (Gansu) Co., Ltd.Jiuquan Zhexinneng Wind Power Co., Ltd.Xiangshan Riyue Zhixin Testing Technology Co., Ltd.Ningbo Riyue Rixing New Energy Technology Co., Ltd.Benxi Liaocai Metal Material Co., Ltd.
Riyue Heavy Industry Co., Ltd.???? Environmental, Social and Governance (ESG) Report
董事会博士人数 董事会硕士人数 董事会本科及以下人数
人人人
董事会男性人数 董事会女性人数
人人
Number of meetings of the Remuneration and Assessment CommitteeNumber of meetings of the Nomination CommitteeNumber of meetings of the Strategy CommitteeNumber of members of Board of Supervisors Employee-elected Supervisors External Supervisors
| time |
timetimepersonpersonperson
Master's degree Bachelor's degree or below
personperson
Male Female
personperson
31-50 Over 50Number of meetings of the Board of SupervisorsNumber of senior management employees
personperson
timeperson
Senior management with Master's degree Senior management with Bachelor's degree or below
personperson
30-50 Over 50
Proportion of BoD members receiving anti-bribery andanti-corruption trainingPercentage of management participating in anti-commercialbribery and anti-corruption training
Performance presentationNumber of investor exchangesNumber of investors receivedNumber of platform responsesNumber of investor calls answeredNumber of General Meetings of Shareholders held
Attendance rate of BoD members at the General Meetings of Shareholders
Number of periodic reports disclosedNumber of interim announcements releasedNumber of other documents disclosed
Amount involved in lawsuits or signi?cant administrativepenalties due to the Company's unfair competition
personperson
%%
time
timeattendance
time
time
time
%———RMB 10,000
Investor RelationsManagementShareholders'Rights and InterestsInformationDisclosureRisk Management
Anti-commercialBribery and Anti-corruption
| 按性别划分按年龄划分 |
By educational background
By gender
By age
By educational background
By age
Indicators Index
ChapterESG ManagementCommunication with Stakeholders
Green Quality Enhancement,Low-carbon InnovationFor Sustainability
Driven by Innovation,Weaving the Future Together
Lean Foundation,Joint Promotion ofProsperity
Environmental Compliance Management, PollutantEmissions, and Waste TreatmentEnergy utilization, water utilization, circular economyCombating Climate ChangeInnovation-driven DevelopmentEmployeesProduct and service safety and quality, data securityand customer privacy protectionSupply Chain SecuritySocial Contribution, Rural Revitalization/Communication with Stakeholders/Anti-commercial Bribery, Anti-corruption, andAnti-unfair Competition
OrganizationStructure andFunctions
Environmental Impact ManagementStrengthening Resource ManagementCombating Climate ChangeInnovation-Driven DevelopmentValuing Human ResourcesStrengthening Quality ManagementConsolidating Supply Chain ManagementSpreading Social WarmthOptimizing the Governance SystemInvestor Relations ManagementStrengthening Internal Risk ControlObserving Business Ethics
Shanghai Stock ExchangeSZSE Self-Regulatory Guidelines No. 14 for Compa-nies Listed on Shenzhen Stock Exchange—Sustain-ability Report (For Trial Implementation)
(continued)
Dear reader,Thank you very much for reading this ESG Report. To better provide e?ective information to you and otherstakeholders, continuously improve the quality of this report, and enhance our sustainable development capabili-ties, we sincerely invite you to evaluate this report and provide valuable comments and suggestions.You may choose the following methods to provide your feedback or suggestions:
Address: Board O?ce, Riyue Heavy Industry Co., Ltd., 20th Floor, Riyuexingzuo Building, No. 7 Tianzhi Lane,Shounan Subdistrict, Yinzhou District, Ningbo, Zhejiang, ChinaPostal Code: 315100Tel.: 0574-55007043Email: stock@riyuehi.comFeedback Questionnaire
1. What is your identity in relation to Riyue?
□ Government □ Investor □ Employee □ Customer □ Supplier/Contractor Business Partner
□ Peer Company □ Community/Public □ Media □ NGO
Others (please specify)
2. Your overall comment on this report?
□ Excellent □ Good □ Fair □ Poor □ Very poor
3. Do you consider the structure of the report to be reasonable?
□ Very reasonable □ Reasonable □ Fairly reasonable □ Somewhat unreasonable □ Unreasonable
4. To what extent is the information you are concerned about disclosed in this report?
□ Very comprehensive □ Comprehensive □ Partially covered □ Minimally covered □ Not covered
5. What other information that you are concerned about is not re?ected in this report?
____________________________________________________________________________________________________________________________________________________________________________________________________
6. Your suggestions for this report:
____________________________________________________________________________________________________________________________________________________________________________________________________Thank you for your valuable feedback!
Questionnaire
7877