Value creation GovernanceLow-carbon Humane orientationIndex
Dreams and wishes may be far,
but they can be ful?lled with
dedicated pursuit.
CONTENTS
Introduction04
About usChairman's Message
Value creation16
Index70
Low-carbonGovernance Humane
orientation
Report highlightsDevelopment milestones
Group overviewHonors and certi?cationsExternal engagementProgress on the United Nations SustainableDevelopment Goals (UN SDGs)Contributions to society
Climate changeEnvironmental compliance managementEnergy managementWater managementPollutant emission and waste managementBiodiversity
Policy commitmentSustainability managementStakeholder engagementCorporate governanceRisk managementBusiness ethics
Employees' rights and bene?tsTalent cultivationOccupational health
Economic performanceSector contributionsProduct innovationQuality serviceSustainable supply chain
GRI content indexIFRS industry-based indexVeri?cation statementReport pro?le
| 30 | 46 | 60 | ||
0405
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation IntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Introduction
Environmental protection investment
Revenue:
76.9356
million yuan
730,236.40
(ten thousand yuan)
% compliance with air pollutant emission standards
new patents added this year
energy conservation optimization projectswater conservation & recycling projects
% employee participation in performance assessment
Training all employees and sta?: approximately
Zeroenvironmental violations
Zeroincidents of discrimination, harassment,forced labor or child labor
Zerocases of fraud, bribery, anti-misconduct,anti-monopoly, or money laundering
Zeromajor information security incidentsZero cases of con?rmed information security incidents
coverage of collective contracts for employees
% coverage of employee skills training
160,000hours
% compliance with wastewater discharge standards
employee coverage of integrity practice training
Report highlights
Developmentmilestones
Environment
Society
Economy & governance
internal audit projects completed
HY Solar (Wuxi) honoredas a zero-carbon factory
HY Solar and Munich RE entered into a strategic cooperationagreement
Sustainability performance
During the reporting period, HYSolar Co., Ltd. was awarded thecerti?cate as a Type I 5-star "zero-carbon factory" issued by theChina Quality Certi?cation Center,marking the first zero-carbonfactory of HY Solar. The companywas awarded green certificationsfor its module factories, includingthe Certificate of Verified CarbonUnit (VCU) Retirement and theInternational Renewable EnergyCerti?cate (I-REC).
In August 2023, the companyreleased to the public its?rst 2022 Environmental,Social and Governance (ESG)Report. As of April 2025, wehave consecutively released3 ESG reports. During thereporting period, there wereno restatements of informationarising from disclosure errors.In May 2024, thecompany wasconsecutivelyrated BBB bythe Wind ESGRating andranked 21/567in the sectorby the overallscore.
In October 2024, the companywas rated A by Chindices ESGrating and ranked 10/453 inthe sector by the corporategovernance.
A signing ceremony was held at SNEC 2024 in Shanghai for the strategiccooperation relationship between HONGYUAN Green Energy Co., Ltd. ("HYSolar, the company, us") and Munich Reinsurance Company ("Munich Re").Munich RE will provide a 15-year product & material warranty and a 25/30-year power linear warranty service for the PV modules of HY Solar. Thisserves as a full third-party assurance to downstream clients in the valuechain who use our products on a large scale, and represents Munich RE's fullaccreditation of HY Solar 's constantly excellent technology and outstandingquality.
HY SolarSector classi?cation in GICS Level 3:
Machinery manufacturingThe company's sector ranking inGICS Level 3 21/453Data updated on: October 31, 2024
MachineryRanking inmachinery sector
by the overall
score
Chairman's MessageIntroduction
0607
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Looking back to 2024, despite increasing global economic turbulence and geopolitical conflicts, achievingcarbon neutrality remains a global consensus and an action goal. As a photovoltaic full-industry-chain integratedenterprise with over two decades of expertise in the new energy sector, HY SOLAR has consistently adhered tothe vision of "Cleaner Energy, Better World" in its development philosophy, guided by the strategic guideline of"Innovation in Technology, Intelligence in Service". We promote sustainable development through green energy,always at the forefront of green energy transition while striving to set a benchmark for high-quality sustainabledevelopment.We uphold technology as the "primary energy," forging the core engine for high-quality development. HYSOLAR focuses on the innovation and breakthrough of core technologies. In 2024, the company continued tointroduce top-tier industry talents, and established a large-scale R&D base of 5,000 square meters with CNASstandard to continuously enrich its product matrix with cutting-edge innovations. In collaboration with leadingacademic institutions such as Zhejiang University and Lanzhou University, the company has promoted cooperativeR&D and talent cultivation, accelerating the pace of innovation in the PV industry and achieving substantial results.The company has further strengthened its commitment to green and low-carbon manufacturing. In 2024, itinvested nearly 80 million yuan in environmental protection, enhancing resource utilization e?ciency and reducinggreenhouse gas emissions through measures such as energy conservation and emission reduction, resourcerecycling, renewable energy utilization, and product design optimization. Notably, subsidiary HY SOLAR（Wuxi） wasawarded the "Five-Star Zero-Carbon Factory" certi?cate, while Hongyuan New Material was recognized as a "NationalGreen Supply Chain Management Enterprise". These achievements underscore our dedication to delivering greenand low-carbon PV products and services, strengthening green supply chain management to build a sustainableecological environment.ESG has long become an essential requirement for HY SOLAR, serving as a powerful driver to build a valuecommunity and a core competitive edge for the future. For years, we have engaged in diversi?ed cooperation withupstream and downstream partners in the industrial chain, strengthened environmental and social responsibilitymanagement in the supply chain, and continuously fostered a more inclusive and friendly community of shared valueand ecological sustainability, jointly constructing a green and sustainable value chain. In 2025, we will remain true toour original aspirations, taking innovation as the foundation to pursue excellence in quality and cost e?ciency. Wewill elevate our ESG management capabilities, accelerate the realization of ESG's potential value, and drive the high-quality advancement of green energy to empower China's PV industry to energize the world with green power andachieve even greater milestones.
Chairman of HY SolarYang Jianliang
0607
Value creation GovernanceLow-carbon Humane orientationIndexAbout us
Chairman's Message
Chairman's MessageIntroduction
0809
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
About us
Group overviewHONGYUAN Green Energy Co., Ltd., establishedin 2002 (formerly known as "Shangji CNC"), isa photovoltaic full-industry-chain product andservice provider focusing on innovation andapplication in the new energy sector. It waslisted on the Shanghai Stock Exchange in 2018with the stock code 603185. As a representativeof private new energy enterprises, the companyhas developed into a rare full-industry-chainecological enterprise in the new energy sectorafter more than two decades of innovation anddevelopment.Currently, the company has built several coreR&D and manufacturing bases in Qingshanand Guyang of Inner Mongolia, Xuzhou,Wuxi and Jiangyin of Jiangsu, and Chuzhouof Anhui, completing its layout of 150,000tons of industrial silicon, 100,000 tons ofpolycrystalline silicon, 75GW of silicon wafers,45GW of batteries and 35GW of modules. Thecompany has been ranked as one of the "Manufacturing Company 500 China", "GlobalTop 500 New Energy Enterprises" and "Top 100Private Energy Enterprises in China" for manyyears.Looking ahead, HY Solar will remain committedto deepening its strategy of "O?ering IntelligentService with HONGYUAN technology" underthe carbon-peaking and carbon-neutralitygoals, collaborating with its partners acrossvarious ?elds to develop the global new energymarket and build a technological, green andintelligent new HONGYUAN with the vision of"making energy cleaner and making worldbetter" and the win-win business philosophythat is oriented to the market, clients centeredand linking resources.
GRI 2-1 | GRI 2-6
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Honors and certi?cations
External engagement
HY SolarHongyuan Energy (Baotou)
HY SOLAR (Wuxi)
Hongyuan New Material (Baotou)
Hongyuan New Material (Xuzhou)
2023 Jiangsu High-Quality DevelopmentBenchmark Enterprise
Baotou StrongholdParty Branch of 2023
5-Star Certi?cate for theZero-Carbon Factory
Inner Mongolia's Top100 Private Enterprises
Jiangsu Province privatescience and technologyenterprise
2024 Global Top 500New Energy Enterprises
Industrial design center
of the autonomousregion
Jiangsu Province four-
star cloud enterprise
PVBL 2024 "Top 100Global PV Brands"
"OutstandingContributions to ProductionValue Award" for 2024 inBaotou Jinshan EconomicDevelopment Zone
CQC 5-Star After-marketServices Certi?cate
Inner Mongolia's Top 50Private ManufacturingEnterprises
Intellectual propertymarking and ?ling
2024 Good PV- Top 10 PV Cell Brands
"Green Supply ChainEnterprise" of nationalgreen manufacturing
PVBL 2024 "Top 20Silicon Wafer Brands"
"OutstandingContributions to FixedAsset Investment Award"for 2025 in Baotou Jinshan
Economic Development
Zone
Recognized by theenterprise technologycenter at the autonomous
region level
High-tech enterprise
Most In?uential PVModule Enterprise of
2024
*A selection of the awards presented in 2024
HY SolarHongyuan Energy (Baotou)Hongyuan New Material (Baotou)
HY Solar (Wuxi)Hongyuan New Material (Xuzhou)
ISO 14001ISO 45001ISO 50001ISO 9001
China Photovoltaic Industry
Association
China General Machinery
Industry Association
Wuxi Enterprise Federation
Wuxi New Energy Industry
Association
Wuxi Xuelang Chamber of
Commerce
PV CYCLE
GRI 2-28
About us
1011
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Introduction
Build distributed photovoltaicon plant rooftopParticipate in community donationsto help the underprivilegedGenerate employmentopportunities with fair wagepractices
Conduct large-scale employeetraining
Provide reliable, e?cient andeco-friendly solar products
Manage hiring and promotionson the principle of equality
Join PV CYCLE to build a PVrecycling systemStrengthen supply chainresponsibility managementManage and control wastewaterdischarges from productionprocessesExplore measures for waterresource treatment and recycling
Conduct regular integrity training andpromotionFormulate a Supplier Code of ConductEstablish a risk managementmechanism
Strictly implement the occupationalhealth and safety measuresFile health recordsOrganize the Safety Month event
Insist on equal pay for equalwork
Conduct climate-related scenarioanalyses and product carbonfootprint certi?cationCreate a "zero-carbon factory"
Progress on the United Nations Sustainable DevelopmentGoals (UN SDGs)
As the world economy confronts multiple risks, it has become a global initiative to gather strength to address commonchallenges. Driven by the UN SDGs, HY Solar remains committed to implementing meaningful practices.
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关于我们About us Value creation IntroductionGovernanceLow-carbon Humane orientationIndex
1415
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Contributions to societyUnited in its commitment to charity, HY Solar took on its corporate social responsibility and commitment through concrete actions.The company organized various volunteer activities, agricultural assistance activities, charitable donations, employee condolences,etc., with a cumulative amount of about RMB510,000, showcasing its love and dedication to society.
We participated in community building through public welfare donations to constantlystrengthen community assistance, support education and optimize public services, addingvitality to the community while improving residents' quality of life.
Attaching great importance toeducation development, HY Solar hasbeen dedicated to helping studentssucceed and paying close attentionto examination dynamics, escortingthe children's growth. We donatedRMB300,000 to support the charity ofBinhu District, Wuxi City, which wasdirected to the Hongshawan ExcellentEducation Fund, and assisted in thecreation of two schools and communityactivities, enhancing educationalprogress and fostering communitydevelopment and prosperity throughpractical and e?ective actions.
Hongyuan Energy (Baotou) donatedsportswear and school supplies tounderprivileged students in the poverty-stricken community while ful?lling sixstudents' wishes by completing thecommunity's "order" mission.
During the college entranceexamination in the same year,Hongyuan New Material (Baotou) setup a charity service kiosk, distributing1,000 bottles of mineral water and500 fans to help the examinees.
We have secured great achievement in volunteer services, demonstrating our strongconcern for social responsibility with practical actions and various volunteer activities.
We engaged in village-enterprise cooperationand paved the way for prosperity with thecommunity. HY Solar (Wuxi) participated inthe "Village and Enterprise Going ForwardTogether for Common Wealth throughSupply-Sale Cooperation" initiative andreceived the title of "Endorser of CommonWealth". With its care for the community,Hongyuan New Material (Baotou) purchasedlocal slow-selling watermelons to strengthencommunity ties and contribute to sharedprosperity goals. Hongyuan Energy(Baotou) has signed a Co-Location and Co-Construction Agreement with the poverty-stricken community and attended the jointmeetings of the co-construction units on aquarterly basis.
Communitydonation
Educationalsupport
Volunteerservices
Village-enterprisecooperation
HY Solar wholeheartedlydedicated to communitydevelopment
HY Solar supportededucation for youthdevelopment.
HY Solar volunteersdevoted love
Join hands withthe community forprosperity
Condolence and public welfare activities in Spring Festival
Workers tree-planting activitiesVolunteer snow
removal in thecommunity
Neat arrangementof bicycles for abeautiful city
Condolence and public welfare activities in Mid-AutumnFestival
Condolence and public welfare activities inSpring Festival
Condolence for retired party members
GRI 203 | GRI 413
About us
1617
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Value
creation
1617
R&D input: RMBmillion
Renewable energy use:
Percentage of new suppliers evaluated withquestionnaires containing environmental and social indicators:
%Number of suppliers identi?ed as subject tosigni?cant negative environmental/social impacts:
MJ
339.35
6,318.56
Number of new patents added during the year:
? Economic performance? Sector contributions? Product innovation? Quality service? Sustainable supply chain
P18P19P20P26P28
Value creation GovernanceLow-carbon Humane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
1819
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Economic performance
Market performance
Indirect economic impact
Direct economic valuegenerated
Ratio of starting salary of regular employees to the minimum salaryRatio of starting salary of male employees to the minimum salary in Wuxi CityRatio of starting salary of female employees to the minimum salary in Wuxi City
1 : 11 : 11 : 1
1 : 11 : 11 : 1
1 : 11 : 11 : 1
Donations and public welfare programsRural revitalization
Economic value assigned
RevenueOperating costsEmployee salary and bene?ts
Ten thousand yuanTen thousand yuanTen thousand yuan
2,190,943.661,871,574.5411,853.571,185,887.621,135,225.4220,089.49730,236.40878,480.4412,823.12
Ten thousand yuanTen thousand yuan
195.87
6.50
51.32
563.06
7.90
Indicator Item
Indicator
Indicator
Unit
Unit
2024
2024
2024
2023
2023
2023
2022
2022
2022
In 2024, HY Solar made remarkableachievements in promoting thedevelopment of the renewable energysector. The company has delivered multiplehigh-quality projects with particularlyimpressive test data, demonstrating itsexcellent capacity in enhancing PV modulee?ciency. Actual testing data shows thatN-type modules generate 6.15% moreelectricity than conventional modules.
Guangdong Maoming Agri-Photovoltaic Complementary Project
InterSolar South America 2024, Brazil UAE World Future Energy Show (WFES)
Spain GENERA 2024 Belgium InterSolution 2024
InterSolar Europe 2024, Munich, Germany SNEC 17th (2024) International Photovoltaic Power Generation and Smart Energy
Exhibition & Conference
Open Energies 2024, France
Economic performance
GRI 201 | GRI 202 | GRI 203 | GRI 415 | IFRS RR-ST-000.A |IFRS RR-ST-000.B | IFRS RR-ST-000.CSector contributions
Value creation
2021
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
339.35
The company is committed to promoting the development and application of green energy through R&D and innovation ofadvanced solar technology. We ?rmly believe that technological innovation is the key driver of corporate sustainability. Throughcontinuous technological innovation, we aim to enhance the conversion e?ciency and reliability, reduce costs and expand marketshare of PV products, becoming a world-leading provider of solar energy solutions.
As an important player in the new energy field, HY Solar understands the significance of full product lifecycle management tosustainable development. The company is committed to reducing the environmental carbon footprint and negative impacts ofour products at every stage, including design, production, use and disposal, promoting green transformation and sustainabledevelopment across the sector.
In the development of products, we take light weight design as an important consideration, while holding toxic and hazardoussubstances under strict management and control. We incorporate RoHS and other standards into our hazardous substancemanagement process and resolutely eliminate materials containing toxic and hazardous elements to minimize the potentialharm of our products to the environment. In addition, the company is committed to producing low-carbon and high-e?ciency PVproducts through analysis and management of the carbon emission during the entire product life cycle and with R&D and design asthe core.
Constantly introduce andcultivate high-quality R&Dtalents to set up a professional
R&D team.
Invest in and build the HY Solar (Wuxi)
R&D and Testing Center, equipped
with internationally advancedtesting equipment and a laboratory
management system.
Annually invest a certainpercentage of revenue in R&Dto ensure that our technologymaintains its leading position.
Shaping the future: Developing the blueprint for a productinnovation system
Product lifecycle management
Product design
R&D team:The company has a total ofR&D input: RMB
Ratio of R&D personnel tothe total employees:
with
Conversion e?ciency inserial production:
personspatents at presentmillion
%patents added during the year
%
635594
1025226.90
R&D teambuilding
Infrastructure
R&Dinput
RoHS certi?cate
Carbon footprint certi?cates for modules
Product innovation
GRI 301
Value creation
2223
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Regarding material selection, we prioritize local materials to reduce carbon emissions during transportation. In addition, we selectmaterials that can be recycled and recovered at the end of solar PV products and strive to increase the proportion of recyclable rawmaterials in our products for a better utilization rate of resources.
We improve resource utilization efficiency and reduce greenhouse gas (GHG)emissions through such measures as energy management, emission reduction,resource recycling & renewable energy utilization, zero-carbon factory construction,supply chain management and product design optimization, reducing the negativeimpacts of production and operations on the environment. The company used6,318,557.81 GJ of renewable energy in 2024
The company constantly explores green packaging solutions, with a priority on the use of recyclable, biodegradable and lighterpackaging materials. We set up a packaging material recycling system, developing a recycling program for recyclable packagingmaterials and encouraging relevant parties to participate in packaging material recycling. During the reporting period, the companyrecycled and used 3,290.48 tons of packaging materials.
Hongyuan New Material (Baotou)practices the concept of greendevelopment, optimizes itsenergy structure, and putsits independently-built 6MWdistributed PV power station intooperation. With an annual powergeneration of approximately 5.6million kWh, the power plantmeets the company's electricitydemand and reduces CO2eqemissions by approximately3,193.68 tons.
Material selection
Clean manufacturing
Material packaging
Total weight of materials used to produce and package theorganization's main products and services (non-renewablematerials)Total weight of materials used to produce and packagethe organization's main products and services (renewablematerials)Percentage of recycled feedstock used to manufacture theorganization's main products and services*
Ton%4850
6,466.1025,630.13
3,9961,682
3,8473,114
Indicator Unit 202420232022
In 2024, the company usedof renewable energy
GJ6,318,557.81
Rooftop PV and new energyapplications
HY Solar (Wuxi)'s Class D warehouse iscovered by a color steel tile roof structurewith a rooftop area of 12,800 squaremeters. 182 bifacial modules are usedand paved as ?xtures. It generates a totalelectricity of 2MWH, is connected to thegrid at a low voltage and can independentlygenerate electricity for its consumption. Itgenerates electricity of about 200,000kwhmonthly on average in summer mode fromJuly to October and about 100,000kwhmonthly on average in winter modefrom November to June, making annualestimated power generation about 1.6million kwh, equivalent to a reduction ofabout 929.60tCO2 emissions.
In 2024, HY Solar (Wuxi) formulated arecycling program for wooden pallets,EPE liners & covers, cardboard boxes,long-paper corner protectors, innerpackaging boxes, and hollow sheets.Production-line parallel recycling isimplemented in accordance with theestablished recycling standards, whichspecify the unpacking operation modeand the number of each recycled pallet,and the warehouse is divided intoseparate bins to place recycled materials.Regarding transportation, the batteryside and the module side share logisticsvehicle information. The warehouseon the module side prepares goodsaccording to the vehicle informationand dispatches fully-loaded vehicleswhenever possible. Packaging materialsare continuously transported back to thebattery side, and 13 batches have beentransported back to Xuzhou, totaling 340pallets.
Case
CaseHY Solar (Wuxi) Battery Sheet Packaging Materials Recycling Project
HY Solar (Wuxi) 2MWH PV Rooftop Project
2MWH PV rooftopNote:In 2024, the recycled feedstock used to manufacture our main products and services was packaging materials, and the values
of which were denominated as the average usage percentage by HY Solar, Hongyuan Energy (Baotou), Hongyuan New Material(Baotou), HY SOLAR (Wuxi) and Hongyuan New Material (Xuzhou).
Value creation
ProductionWarehouse
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Regarding logistics and transportation, we dispatch vehicles reasonably based on the daily shipment volume while integratingorders and optimizing transport plans to ensure that each shipment is made with a full load and at full tonnage. In addition,we optimize the layout of overseas warehouses and change land transportation to water transportation based on the overseasdistribution points to reduce carbon emissions and energy consumption during material transportation; We adopt a WarehouseManagement System (WMS) to improve the speed and accuracy of goods processing in the warehouse in automated and intelligentways, enhancing logistics e?ciency, reducing operation costs and reducing carbon emissions.
The company keeps collecting and recycling raw materials of PV modules for reuse, and builds a closed loop of green ecologythrough the establishment of a perfect recycling system and continuous exploration and adoption of advanced recyclingtechnology. We have formulated the "Management Specifications on Use of P-Type Recycling Material", "ManagementSpecifications on Use of N-Type Recycling Material", and "Recycling Standards of Seed Crystals" to standardize the recyclingmanagement of the recycling material generated during production, reducing usage risk and lowering costs.
We collaborate with multiple universities to develop new technologies and products, accelerate the transformation and applicationof technology achievements and enhance our competitive strength.
In the face of ever-changing technology innovation, the company has adopted aseries of measures to ensure it maintains the leading position in the fierce marketcompetition:
Development incooperation with NanjingInstitute of Technology:
N-type TOPCon High-E?ciency Crystalline SiliconSolar Cell Project, withinnovative technologycovering boron di?usionthree-step to source,thick-?lm alumina oxidepassivation and new slurrysystem, the cells have beensupplied to multiple front-line clients.
Application forcooperation withLanzhou University:
Key R&D and AchievementTransformation Program(Science and TechnologySupporting EcologicalProtection and HighQuality Developmentof the Yellow RiverBasin) Project - R&Dof Key Technology forNew Generation ofHighly Durable GraphiteElectrode Columns
Introducing internationalstandards: Our R&D and TestingCenter is established according toISO 17025 standards and operatesaccording to the requirementsof the CNAS certi?cation system,ensuring the accuracy andreliability of testing results.
Application forcooperation withLanzhou University:
Application forTechnology ProgramProject - Key TechnologyR&D Project of NewGeneration of HighE?ciency N-type LowOxygen MonocrystallineSilicon
Digital management: LIMSlaboratory management system isadopted where all the informationof instruments, equipment,testing tasks, personnel andtesting process are incorporatedfor digital management toimprove the testing e?ciency andproject management level.
Large-scale R&D base: Thelaboratory covers 5,000 squaremeters and is equipped with 28types of equipment, totaling 58sets.
Green logistics
Disposal and recycling at the product end
Develop new products with universities
Leading change to tackle technologyinnovation challenges
In April 2024, Hongyuan New Material (Baotou) reused the outsourced silicon material by lengthening the silicon at the single-crystal furnace table through the new silicon material technology application scheme and the optimized cleaning process.Subsequently, we began reusing four takeout raw materials: silicon tube waste, unusable material, scrap material, and falling siliconmaterial, which are recycled as soon as they meet quali?cation standards and are continuously recycled with a stable process toreduce the total amount of takeout silicon material. The raw material utilization rate was enhanced by 0.26% after the reuse of thetakeout silicon in this manner, simultaneously reducing manufacturing costs and improving overall material utilization.
CaseRaw Material Utilization Enhancements Project
Silicon tube wasteScrap materialUnusable materialFalling silicon material
Industry-academia-research cases
2524
The project is still pending approval
Value creation
Application forcooperation withZhejiang University:
Unveiling andCommanding Project -R&D of Large-Diameter(≥12") SemiconductorsMonocrystalline SiliconWithout Magnetic Field
2627
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
With the updating of technology and products, HY Solar places greater emphasis ondelivery quality and client satisfaction, always taking product quality as the core ofdelivery and client satisfaction as the starting point of service, hoping for a deeper,more pragmatic, detailed and thorough quality management and client relationshipmanagement. We establish a whole-life cycle, closed loop quality managementmechanism from the supply chain management to after-market services, proposingand tracking the quality objectives and supervising the quality responsibility of eachproduction and service process.HY Solar observes the local laws and regulations on product quality, promotes theconstruction of internal quality management system according to the internationalquality management standards, formulates and executes the quality control plan,reduces the deviation of the product process and improves the success rate of theproduct quality design through the tools including Design Failure Modes and E?ectsAnalysis (DFMEA) and Process Failure Modes and E?ects Analysis (PFMEA) to ensurethat the product quality level meets the design planning and client expectations.During the reporting period, the production base has passed ISO 9001 ManagementSystem Certification and IEC 62941 PV Module Quality Management SystemCerti?cation.
The company enhances client satisfaction by improving its service process and response mechanism. We conduct the factory audit,product inspection, and handle client complaints in accordance with the "Management Procedures for Client Services", inviteclients to evaluate their satisfaction with product quality, service quality, price, and delivery quality, have in-depth exchanges withour clients to identify potential problems, and adopt client suggestions to enhance our overall services and to shape our brandimage. Research results show that multiple service quality indicators have received full scores from many clients.
HY Solar builds a clear brand perception, and puts responsible marketing into practice. It produces and uses promotional materialsin accordance with the Advertising Law of the People's Republic of China and the Responsible Marketing and Consumer ProtectionPolicy, ensuring clients' right to be informed. We provide multi-language and detailed product brochures to convey true, accurateand full product information, ensuring clients receive assured products and services. In addition, the company has entered into aDistributor Authorization Letter to regulate trademark use, advertisement placement, etc. During the reporting period, there wereno incidents of non-compliance involving marketing communications, product and service information & logos.
During the reporting period, HY Solar(Wuxi) continued to receive externalrecognition for its comprehensive after-market services system and excellentservice standards, passed the nationalstandard GB/T 27922-2011 "CommodityAftermarket Services Evaluation System"evaluation and certi?cation, and wasawarded a ?ve-star (the highest level)certi?cate.
Quality construction
Client service
Responsible marketing
After-sales service certi?cation of goods
Projectmanagement
Introduction of new
technologies
Raw materialsmanagement
Client demands
Client satisfaction
Process 6Smanagement
ISO 9001
SAPEAP
WMSSPC
MESLIMS
After-salesmanagement
Silicon wafer sideBattery side
Module side
Hongyuan New Material
(Baotou)
Hongyuan NewMaterial (Xuzhou)
HY Solar (Wuxi)
points
points
IEC 62941
Complaint handlingFailure analysisRemediation and prevention
Aim to contact clients within 24hours for initial feedback, andconduct prior consultation onresolution deadlines and non-remedial preventive measures
Adopt an 8D Analysis approach todetermine and analyze, and set upa cross-department special taskforce to analyze, investigate, anddeal with the case
Perform permanent improvementwith client accreditation, andconstantly track product qualitymanagement & control to preventrecurrence
Results of client satisfaction
95.95
97.62
Quality service
GRI 416 | GRI 417 | GRI 418 | IFRS RR-ST-410a.1
Value creation
As information-based development has become a consensus in the PV sector, HY Solar has rapidly laid out a new mode ofintelligent operation and maintenance, introduced the Material Management System (SAP), Warehouse Management System (WMS),Manufacturing Execution System (MES), Equipment Automation Programming (EAP), Statistical Process Control (SPC) Systemand other smart factory information-based systems, broken down the management requirements for reliability risks step by stepto achieve full-process automation from the in-warehouse of raw materials to the out-warehouse of finished products and aninformation-based closed loop for business operations, enhancing PV module production e?ciency, lowering costs and improvingthe company's economic e?ciency and market competitiveness.HY Solar (Wuxi) R&D and Testing Center is established in accordance with ISO 17025 standard and conducts sampling and testing ofproduction lines and products based on this standard and CNAS laboratory accreditation standards. The laboratory adopts the LIMSmanagement system and is capable of performing a full set of tests according to IEC 61215 and IEC 61730 standards. The companylabels, segregates, evaluates and disposes of nonconforming products in accordance with the Nonconforming Product ControlProcedures to prevent nonconforming products from entering production, use or project delivery.
IEC 62941 PV Module ManufacturingQuality System Certi?cate
points
2829
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
The company manages its supply chain under the concepts of fairness, safety and transparency, implements regulations includingthe "Procedures for Procurement Management and Control" and the "Supplier Management Procedures", and practices full-lifemanagement on supplier onboarding, on-site evaluation, due diligence review and deactivation, with its key attention to suppliers'management on environmental protection, labor rights and interests, and business ethics, aiming to avoid the negative impacts ofthe supply of materials on the production and operation and to fend o? corporate social responsibility risk within the supply chain.
Priority on cooperation Normal procurement
Training to suppliersbased on demerits
Disqualify as a supplier temporarily
and require full correction withinthe time limit; If such correction
fails, eliminate the supplier
The company conducts a comprehensive review of the suppliers in terms of material quality, service quality, sampling effect,environmental & social evaluation, etc., based on which it classifies and grades the suppliers, implements rewards andpunishments, and provides training to the suppliers on defects.
While meeting internal procurement needs, we prioritize localized procurement to partner with local suppliers, reducetransportation cycles and lower environmental impact.
Geographical distribution ofprimary and auxiliary material
suppliers
Percentage ofprocurementexpenditures withinthe province where thecompany is located (%)
81.21
31.75
202420232022
Indicator Hongyuan New Material (Baotou)Hongyuan New Material (Xuzhou)
Number of new suppliers signing the statement
Number of suppliers receiving training/conducting improvementNumber of suppliers identi?ed as subject to signi?cant negativeenvironmental/social impactsPercentage of new suppliers evaluated with questionnairescontaining environmental and social indicators
Supplier management codeProcurement ManagementControl ProcedureSupplier Management ProcedureSupplier Code of ConductSupplier Due Diligence andEvaluation Sheet
Supplier statement
Con?dentiality CommitmentLetterCommitment to Anti-CommercialBribery and Anti-fraudCommitment to Safety andEnvironmental ProtectionCommitment to LegalEmployment
Level-A excellent suppliers Level-B quali?ed suppliers Level-C general suppliers Level-D unquali?ed suppliers
Quali?cation system
Production and Operation License | MSDS, RoHS, REACH | Intellectual PropertyCerti?cate | Three-Standards-In-One System Certi?cateEnvironmental protection
Environment management compliance | Natural resource use and air pollutionClimate resilience & GHG emissions reduction | Water, wastewater & hazardousmaterials management | Con?ict mineralsHuman rights guaranteeAnti-forced labor and child labor | Anti-discrimination | Occupational health andsafety | Standard working hours and wages | Freedom of association and collectivebargaining | Female worker protection
Corporate action
Anti-corruption and commercial bribery | Anti-money laundering and counter-terrorism ?nancing | Information protection and data safety | Fair competition andantitrust | Con?ict of interest | Intellectual property | Export trade compliance |Whistleblowing and protection | Secondary suppliers management
Supplier(s)%Supplier(s)Supplier(s)
Indicator
Related clause
Unit
Key attention
202420232022
To refine supply chain risk management, HY Solar(Wuxi)'s Procurement Department conducts specialized"ESG Sustainable Development" training to enhancepurchasing o?cers' skills and expertise.
Sustainable supply chain empowerment
HY Solar undertakes not to apply orsell any con?ict minerals or derivativeproducts, and requires its suppliers totake active measures to avoid usingany con?ict minerals in their products.
All the self-operated minerals andthe minerals used in our processingbases are sourced from domesticmineral re?ning and smelting plants,with a clear place of origin, compliantgovernance and no human rightsviolations.
It refers to metallic minerals such asgold (Au), tantalum (Ta), tungsten (W),and tin (Sn) produced from minesin con?ict zones controlled by non-government military groups or non-military factions in the DemocraticRepublic of the Congo (referred to as3TG).
Statistical caliber: Hongyuan New Material (Baotou), Hongyuan New Material (Xuzhou), and HY Solar (Wuxi).
Sustainable supply chain
GRI 308 | GRI 414 | SASB RT-EE-440a.1
Value creation
3031
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HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
3031
Proportion of independent directors: %Proportion of female directors: %
Con?rmed cases of corruption:
Base coverage rate of the integrity risk identi?cation:%Con?rmed information security incidents:
Employee coverage rate of integrity series training: %
? Policy commitment? Sustainability management? Stakeholder engagement? Corporate governance? Risk management? Business ethics
P32P34P36P38P41P42
GovernanceValue creation Low-carbon Humane orientationIndexAbout us
Governance
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
GovernanceValue creation Low-carbon Humane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Ten Principles of the United Nations Global Compact
Principles
Actions
Respect and uphold internationallyrecognized human rightsNot engage in any acts that ignore orinfringe upon human rights
Formulate the Employee Handbookand refrain from engaging in any actsthat ignore or infringe upon humanrights
Policy commitment
GRI 2-23 | GRI 2-24 | GRI 2-30 | GRI 405 | GRI 406 | GRI 407 |GRI 408 | GRI 409 | GRI 411
Principles
Actions
Uphold freedom of association and the right to collective bargainingEliminate all forms of forced and compulsory laborRevoke child labor practiceEliminate discrimination in employment and occupation
Establish a diverse communication mechanism such as the HongyuanVoice Platform, Suggestion Boxes, and Employee SymposiumsEstablish the Employee Representative Organization and Labor LawsSupervisory CommitteeImplement rigorous age veri?cation procedures and use thePersonnel Registration Form to con?rm personnel informationCare for female employees and recruit disabled employees
Actions
Adopt a precautionary approach to environmental challengesTake on environmental responsibilityPromote the development and promotion of eco-friendlytechnology
GHG veri?cationApply for product carbonfootprint certi?cationBuild a zero-carbonfactory
Pave rooftop PVConduct energyconservation andtechnological improvementRecover and recycle steamby condensation
Principles
Actions
The enterprise should oppose all forms of corruption,including extortion and bribery
Conduct risk and internal auditsOrganize integrity series training
Human
rights
Labor Environment
Anti-corruption
3332
Principles
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GovernanceValue creation Low-carbon Humane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Sustainability management
Topics management
The company conducts annual materiality research to identify stakeholders' interest in topics of high relevance to the company.We follow GRI standards for dual substantial analyses, prioritize topics based on sustainability trends and expert advice, andproactively disclose our progress.
Tax strategy
Environmental management systemProtection of employees' rights and interests
Impact on the environment and society
Impact on HY Solar's business development and ?nance LowHigh
High
Responsible supply chainLow-carbon operations
-Sustainable supply chainCon?ict minerals managementClimate change responseCleantech opportunityEnvironmental compliance managementEmployee recruitment, diversity and inclusion
Add issues to respond to capitalmarket concerns
Adjust presentation
Consolidate issues, adjustpresentation, and extend issuecontent
Topics for 2024 Topics for 2023 Changes and reasons
Information security and privacy protection
Low-carbon operationsEnvironmental management system
Energy managementWater managementWaste and hazardous substance management
Community relations, charity and public welfare
Biodiversity conservation
Corporate governance
Risk managementTax strategyClient relationship management
Investor relations
Business ethicsProtection of employees' rights and interests
Product quality and safetyOccupational health and safetyResponsible supply chainProduct lifecycle management
Human capital development
Sci-tech innovation
Materiality matrix
Structure of the Sustainability Committee
HY Solar Board of DirectorsGRI 2-19 | GRI 3 | GRI 2-13 | GRI2-14 | GRI 2-16 | GRI 2-17
Strategy and Sustainability Committee
Specialized Committee onEnvironmental Governance
Specialized Committee on
Social Responsibility
Specialized Committee on
Corporate Governance
General Manager O?ceSecurities Department
EHS DepartmentFinance Department
Human Resources
DepartmentLegal Department
The Board of Directors, the highest decision-making body for ESG, takes
overall responsibilities in the formulation of corporate ESG strategicplanning, policies and work plans, and considers and approves ESG annual
reports.
ESG Decision-making
Specialized Committees under the Strategy and Sustainability
Committee develop the development goals in environment, society
and governance responsibility, and assist in resolving ESG-related
matters.
ESG Coordinating
It is composed of various departments of the corporate headquarter,and is responsible for implementing Specialized Committees'
objectives, coordinating and promoting the implementation of ESGtasks, preparing annual ESG reports, and strengthening the in?uence of
internal and external sustainable development of the company.
ESG Working Group
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Chairman's MessageIntroduction
Stakeholder engagement Advanced study of sustainability
capacity
Regulators have clear regulations on the training of directors, supervisors and senior o?cers of listed companies, and the companyemphasizes cultivating its employees' capacity in ?nance, business ethics, green development, low-carbon and social responsibilitythat are connected with sustainability. During the reporting period, the incumbent independent directors and senior officersfulfilled the compliance requirements and completed the qualification training offered by the Stock Exchange and the ListingAssociation, while the employee representatives completed the related courses and advanced studies to enhance their sustainabledevelopment knowledge.Employees (includingthe labor union)
Humane orientation
Shareholders andother investors
Governance
Clients and consumers
Product innovationQuality service
Business partners Sustainable supply chain
Government andregulators
Low-carbonGovernance
Non-governmentorganizations
Value creationGovernanceLow-carbonHumane orientationLocal community(including communityresidents)
Humane orientation
Employee activities, employee congress, training activitiesEmployeeHandbookHongyuan's VoiceInternal mail systemO?ce automation systemNotice boardInformation disclosureShareholders' meetingOngoing on-line and o?-line communication (investment seminars,performance presentation, SSE E-interactive, investor mailboxes,and hotlines)Media communicationO?-line exhibitions & conferencesClient satisfaction surveyRegular supplier trainingExchanges and visitsSupplier reviewFeedback from monitoring channelsRegulatory meetingPhysical inspectionInformation disclosureO?-line exhibitions & conferencesSymposiaMedia communicationCorporate publicationsPress releasesCompany visitsCommunity volunteering activitiesPublic service activities
Stakeholder Communication channel Response chapter
Compliance trainingfor CFOs of listedcompanies in JiangsuProvince
Follow-up training forindependent directors
"Set Sail - New Quality
Productive Forces"training (specialsession of green and
low-carbon)
Technology innovationinterface exchangeof Jiangsu private
enterprises
Special course on
"Key Points andSuggestions for Anti-fraud Performance byIndependent Directorsof Listed Companies"Special training onSustainability Reporting(ESG) for listed
companiesTrainingcourses
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GovernanceValue creation Low-carbon Humane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Corporate governanceCorporate governance is a critical focus for investors and the capital market, with a strong governance structure ensuring enterprisevalue enhancement. HY Solar establishes a corporate governance structure consisting of the shareholders' meeting, the Boardof Directors and its Specialized Committees, the Board of Supervisors and the senior management in accordance with the laws,regulations and guidelines of the Stock Exchange to improve its corporate governance and safeguard investors' rights & interests.
Shareholders' meeting
The Board of Directors convenes shareholders' meetings in accordance with the Articles of Association to ensure that allshareholders are granted equal status and may fully exercise their rights.
extraordinary general meetingannual general meeting proposals deliberated and adopted
1121
Management system overview
A company of a two-tier system with the Board of Supervisors7 directors (including 1 female director and 3 independent directors)Not concurrently serving as the General Manager3 supervisors (including 1 employee representative supervisor)3 special meetings of independent directors were held in 2024Strategic Committee, Audit Committee, Remuneration and AppraisalCommittee, and Nomination Committee
Organization form
DirectorChairman of the Board of Directors
SupervisorVoluntarily established committeesMeetings to strengthen supervision
Board of Directors
As the highest corporate governance body, the Board of Directors is responsible for the shareholders' meeting. Directors areelected or replaced by the shareholders' meeting in full consideration of the sector in which the organization operates and thediversity and independence of the candidates. The current Board of Directors consists of 7 members, with a Chairman of theBoard who is functionally separate from the Chief Executive Officer to avoid potential abuse of power. The Remuneration andAppraisal Committee proposes the remuneration plan for directors, which shall not be implemented until it is approved by theBoard of Directors and deliberated and passed at the shareholders' meeting. The remuneration allocation plan for the managersshall be submitted to the Board of Directors for approval. The annual allowance system is adopted for independent directors.Non-independent directors and senior o?cers receive salaries according to their positions, with reference to the compensationlevel of similar positions in the same sector, and based on the company's annual performance assessment system and theiraccomplishment of performance indicators.
Number of special meetings ofindependent directorsAttendance rate of directorsin person
Proportion of independent directors
Number of board meetings
Proportion of femaledirectorsNumber of special boardmeetings
%%
%
GRI 2-9 | GRI 2-10 | GRI 2-11 | GRI 2-15 | GRI 2-19
Yang Jianliang
Yang HaoHang Hong
Ji FuhuaZhu XiangjunWu Ge
Ji WeixiHang YuebiaoChen NianhuaiZhu Yongzhong
Chairman of the Board
DirectorDirectorDirectorIndependent directorIndependent directorIndependent directorSupervisorChairman of the Board ofSupervisorsEmployee representativesupervisor
Junior college degree
Master's degreeJunior college degree
Bachelor's degree
Master's degree
Doctor's degree
Doctor's degreeJunior college degreeJunior college degreeJunior college degree
Name TitleGenderAge
Academic
quali?cationBusinessoperations
Globalization
Marketing &
market
FinanceExperience and skills Experience and skills
Legal
Technology &manufacturing
Note: "▲" denotes the position of committee director, whereas "△" denotes the position of committee member.
Strategy andSustainability
Committee
AuditCommittee
NominationCommittee
Remunerationand AppraisalCommittee
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GovernanceValue creation Low-carbon Humane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Board of Supervisors
Investor communication
Tax governance
The number and composition of the Board of Supervisors meet the requirements of laws and regulations. Taking on theresponsibility to shareholders, all supervisors diligently supervise the behavior of directors and senior o?cers in performing theirduties. The Board of Supervisors drafts a remuneration and performance incentive plan for supervisors and submits it to theshareholders' meeting for consideration. Supervisors are remunerated in accordance with the positions they hold, with referenceto the compensation levels of similar positions in the same sector, and based on the company's annual performance assessmentsystem and the accomplishment of performance indicators.
HY Solar communicates and interacts with its investors, emphasizing listening to investors' feedback and improving market valuemanagement. We update our operation information through the "Investor Relations" column on our website, results briefingsessions, shareholders' meeting, SSE E-Interactive and other channels to inform investors of our status. The company was awardedlevel B in 2024 by the Stock Exchange in the information disclosure assessment.
The company accurately calculates all taxes and charges, makes tax returns on time, avoids tax risks in strict accordance withapplicable national laws and regulations, and accepts the inspection and supervision of tax and other competent authorities inaccordance with the law. We formulate and constantly improve our Tax Management System, specifying the requirements for suchmanagement tasks as tax policy research, formulation of tax planning and scheme, management of daily tax matters, tax inspectionand risk management.
Number of supervisoryboard meetings
Attendance rate ofsupervisors in person
Number ofresponses to SSEE-Interactive
Number of responsesto questions from theperformance brie?ng sessions
Percentage of employeerepresentative supervisors
Number ofnotices released
Major taxes Tax incentives
Number ofperformancebrie?ng sessions
6100
3917
%%
Corporate income tax Preferences for high-tech enterprises; Corporate incometax preferences for encouraged enterprises in the western regionValue-added tax: Additional deduction policy, immediate levy and refund forsoftware productsValue-added taxUrban maintenance and construction tax
Corporate income taxTeaching supplements
Risk management
We realize that the stakeholders' awareness of participating in corporate governance is growing stronger with the times, and thereis an expectation for enterprises to ful?ll their legal obligations and proactively assume environmental and societal responsibilities.The Board of Directors serves as the company's highest risk governance body, responsible for planning and establishing the riskmanagement structure, formulating risk management policies & related guidelines and supervising the implementation of riskmanagement measures, which shall cover quality management, environmental protection, work safety, labor contract, M&A andinvestment, etc., to ensure the safety of assets, personnel, production, quality, environment, reputation and other elements. Byregularly collecting feedback from various departments and conducting risk assessment meetings, we identify potential legal, market,operation and other risks to evaluate the risks we face and measure their severity and likelihood. In addition, the Legal Departmentformulates the Management Measures for Legal A?airs to regulate the company's business behavior, and carry out trainings on legalknowledge and contract review practice.Under the guidance of the Management Measures Internal Audit, we executed a total of 25 internal control and evaluation projectsduring the year, including ?nancial audit, exit audit, special audit, etc., and identi?ed 45 non-conformities, of which 31 have beencorrected and the remaining 14 are being followed up and controlled.
Review contentHSE riskMoral hazardOperational riskWaste silicon materials, work-related injuries declaration,use of pharmaceuticals in thesewage station, etc.
Audit of the integrity of theProcurement Department, exitaudit of o?cers, etc.
Procurement process,base production, materialrequisition, etc.
IFRS RR-ST-410a.2 | SASB RT-EE-250a.1 | SASB RT-EE-250a.2
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GovernanceValue creation Low-carbon Humane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Business ethics
Mechanism guarantee
Culture construction
Anti-corruptionAnti-fraud
Support in fair
competition
Guarantee ofinformationsecurityAvoidanceof con?ict ofinterest
Anti-moneylaundering
Standerdizationin sensitivetransactions
Incorporating "integrity" and "pragmatism" into its core values, HY Solar is committed to shaping a corporate image of integrity,trustworthiness and professionalism in all business activities while building a vibrant and healthy industrial ecosystem. Thecompany attaches importance to the construction of integrity culture by formulating the Anti-Unfair Competition System, theIntegrity Management System, the Supplier Code of Conduct, the Supplier's Honest Cooperation Agreement and other seriesof documents to regulate the business behavior of its officers, employees and suppliers. All subsidiaries conduct an annual re-examination of the integrity risks associated with key positions such as Procurement, Sales, Production, R&D, Finance and HR,identify the integrity risks by analyzing the systems and processes, position duties and personnel behaviors, and implement tieredmanagement for positions with di?erent risk levels in accordance with the level of integrity risks.
To implement the work concept of "addressing both symptoms and root causes,prioritizing prevention and maintaining all-hands supervision", the companyregularly carries out integrity promotion activities for employees and suppliers,improving stakeholders' recognition & understanding on integrity risks andfostering a risk management culture aligned with business operations. Internally,the company has all employees sign the Commitment to Integrity Practiceupon recruitment, and has adopted a variety of approaches for regular integrityeducation, emphasizing the prohibition of bribing clients in any form, theprevention of slinging mud on competitors, and the reinforcement of employees'bottom-line awareness. Externally, we have revised the Supply ContractTemplate, reorganized and compiled a new version of the Supplier Integrity andConfidentiality Commitment Letter to ensure the consistency of the integrityclauses and organized suppliers to re-sign the new version. The ProcurementDepartment regularly publicizes the company's integrity policies to suppliers toensure their awareness of the integrity policies.
It is prohibitedto solicit bribesfrom or give/provide anyillegitimatebene?ts toclients by takingadvantage ofo?cial positions
Any favoritism orpersonal gain atthe company'sexpense isprohibited
It is prohibitedto have irregulareconomicand personaldealings withstakeholders
It is strictlyprohibitedto discloseto unrelatedpersons anybidding prices,work plans, keydata, technicaldocuments, etc.
It is prohibitedto utilize theinformationlearned forpersonal gains
It is strictlyprohibited to dealwith accountsand expensesin violation ofregulations,or make false/misrepresentedexpenditures
It is strictlyprohibited toaccept high-value banquetsor acceptgifts that maya?ect the fairperformance ofo?cial duties
Management content
Publicity of integrity whistleblowing
Training on integrity management system Prevention of work-related crimes in corporate settings
Training on anti-unfair competition
Series training on integrity
GRI 2-16 | GRI 2-10 | GRI 2-11 | GRI 2-15 | GRI 2-19 | SASB RT-EE-510a.1 |SASB RT-EE-510a.2 | SASB RT-EE-510a.3
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GovernanceValue creation Low-carbon Humane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Whistleblowing management
Information security
HY Solar has set up a mechanism for whistleblowing toengage both internal and external partners in integrityconstruction. The related parties may report thecompany on fraud, malpractice, falsehood and otherunethical behaviors of employees or partners' personnelthrough e-mail, telephones, letters and other ways theyconsider convenient and safe. We take measures toensure the confidentiality of whistleblowers' personalinformation and all reported data, and to eliminate andcrack down on any retaliation against whistleblowersor witnesses. During the reporting period, the companywas not subject to any external anti-corruptioninvestigation or punishment.
The rapid development of information technology and the popularization of digitalized network systems have significantlyenhanced business operational & production efficiency, but they have also brought about network information security risksincluding network disruptions, hacker attacks and data leakage. HY Solar attaches importance to the information asset securityof employees and partners by implementing a "three lines of defense" mechanism of information security, ensuring robustinformation security governance and enhancing measures to protect the company's information assets & personal data.
Sign the Information Security Con?dentiality Agreement with employeesRegularly conduct social engineering phishing email drills and server vulnerability drillsCarry out information security education & training and push posters & desktop messagesImplement strict access control policies and restrict permissions according to job responsibilities & needsCon?gure multi-layer ?rewalls, WAF systems and antivirus software to identify and protect against externalattacksRegularly review the server login logsTake encryption protection for ?les with encryption systemRegularly execute server & system data information backup & recovery drillsConduct due diligence on the purchased cloud platform and validate audit reports prepared by thirdpartiesIn 2024, a quali?ed third-party organization was engaged to conduct vulnerability scans across all plants,with remediation and recovery being made based on the test report
To strengthen system resilience and minimize human errors, the company constantly strengthens information security managementthrough overall planning -- from system improvement to reinforcement works, network monitoring to personal management, andhardware upgrades to software optimization, including regular software and system updates, security evaluation, monitoring ofmalicious activities, formulation of emergency response plan, etc.
Reporting E-mail: hongyuanjc@hongyuanxcl.comReporting tel.: 0086 18921275176Mailing address for reports: General Manager Office,No. 158 Nanhu Middle Road, Binhu District, Wuxi City,Jiangsu Province
Infomation SecurityCommitteeInformation Security
Working Group
CybersecurityDepartmentDepartment InformationSecurity Head
Administration
Department
CoordinationManagementExecution
"Three lines of defense" of information security
Information security defense system
Information security management training materials and records
O?ceequipmentEmergencyresponse plan
Internet use
behavior
Mediacon?dentiality
OA system
Backup &recovery
Encryptionmanagement
Endpoint
security
Weak currentmachine room
Cookie
management
Employee coverage rate of integrity series trainingSignature rate of Supplier Integrity Commitment LetterCase generated via whistleblowing channelsCon?rmed corruption caseCoverage ratio of integrity risk identi?cation basesCon?rmed information security incidentStakeholders a?ected by information security issuesPush rate of online platform information security trainings
%%Case(s)Case(s)%Case(s)Person(s)%
/
/
/
Indicator Unit 202420232022
Internal
Information security precaution measures
4647
Low-carbon Value creation GovernanceHumane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
? Climate change? Environmental compliance management? Energy management? Water management? Pollutant emission and waste management? Biodiversity
P48P51P54P56P58P59
4647
Environmental performance
Environmental input: RMB million yuanRenewable energy consumption:
Number of water conservation & recycling projects:
Wastewater emission: complianceAir pollutant emission:
Number of environmental violations:
MJ
76.9345
6,318.56146,879,300
Circulating water consumption: tons
Low-carbonValue creationGovernanceHumane orientationIndexAbout us
Low-carbon
Number of energy conservation optimization projects:
% compliance
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
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Low-carbon Value creation GovernanceHumane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Governance
Strategy
Risk management
The company places significant emphasis on climate change issues, integrating them as a key consideration in its operationstrategy. Based on our sustainable management structure, we have established a climate change governance system led bythe Board of Directors, guided the Sustainability Management Committee to formulate and improve its climate change relatedstrategies, supervised and reviewed the action practices for climate change, and managed climate change risks and opportunitiesin a sustainable and e?ective manner from top to bottom.
Our long-term goal is to become carbon neutral. The company closely integrates its climate strategic approaches with its businessdecisions by evaluating both the actual and potential impacts of climate change on its business, strategy and ?nancial planning. Weaim to comprehensively formulate our climate strategic planning from GHG emissions management, energy management, resourcemanagement, carbon market to system construction. By leveraging newly developed clean technologies and optimized productionprocesses, we aim to create green low-carbon PV products and services, implement green low-carbon manufacturing practices andbuild a sustainable ecological environment.
The company is committed to establishing a climate change governance system. Looking ahead, we will consider our businesscharacteristics and internal & external development environments while fully identifying and evaluating the climate-relatedimpacts, risks and opportunities to formulate the process for identifying, analyzing and controlling climate-related risks andopportunities. We will integrate climate risk management into the existing risk management system to constantly monitor andevaluate our capacity to cope with climate change, enhancing our climate resilience.As of the end of the reporting period, Hongyuan New Material (Baotou) has taken the lead in fully identifying the climate risktypes, evaluating and analyzing their impacts, and formulating the countermeasures, which lay the foundation for its subsequentconstruction of a comprehensive climate risk control system.
Climate changeAs a crucial component of renewable energy, PV businesses are facing unprecedented challenges and opportunities in the contextof accelerating global climate change. As a leading enterprise in the PV sector, HY Solar profoundly understands the challengesthat climate change poses to the global environment and economy. To constantly monitor and evaluate climate change risks andopportunities while taking proactive countermeasures to promote low-carbon transformation of the enterprise itself and its valuechain, we are establishing a climate change control system structured around four pillars: governance, strategy, risk management,and indicators & targets based on the guiding principles of International Financial Reporting Standards (IFRS) and the Task Force onClimate-related Financial Disclosures (TCFD).
Extremeweather,cyclones/hurricanes/typhoons,extremeheat, unusualrainfall,?oods,droughts,earthquakes,etc.TemperaturechangeRegulationsand policiesgoverningcarbonemissionsaretighteningCompetitivenessof low-carbontechnologiesLitigationon net-zerocarbonproducts
ClientbehaviorchangeIncrease inconcernsor negativefeedbackfromstakeholders
Legislationon climatechange
Acuteentityrisk
Chronicentityrisk
Policyrisk
Technologyrisk
Legalrisk
Marketrisk
Reputationalrisk
·May cause malfunctions, operationdisruptions and damages to productionequipment, resulting in lower productione?ciency, higher maintenance costs anddamaged products;·May cause power disruption or even plantdestruction in extreme cases, posing athreat to lives and property safety of sta?and clients;·May lead to production and transportationdisruption, a?ecting the productioncapacity of the company and its suppliersand leading to delay in delivery.·Temperature change may indirectly a?ectequipment operation and lead to equipmentmalfunction; Sustained high temperaturemay a?ect the e?ciency of the operatingpersonnelGiven our global client base and thepresence of our plants in multiplecountries, the increasingly stringent policiesregarding climate change and carbonemission worldwide will lead to greaterregulatory compliance pressures·Low-carbon has become the mainstreamtrend in the development of windturbine technology, and ?erce marketcompetitiveness demands more resourcesfor R&D to maintain the industry-leadingposition, otherwise we will lose marketcompetitiveness·Di?erences of public understanding in net-zero carbon concepts and environmentalattributes of products may lead to litigation.
·Clients have a gradually increasingdemand for renewable energy and low-carbon wind turbine products·Stringent requirements on product carbonfootprint may cause Envision to loseproduct orders·Stakeholders are quite concerned about thegreen and low-carbon performance of thecompany and its products·Any inconsistency between the company'sclaimed climate action goals and programimplementation, versus its actual actions,may damage its reputation
·With the advancement of the dual-carbontarget, China may introduce laws andregulations to speci?cally address climatechange, imposing more stringent demandson the optimization of the energy structurefor the entire society
·Formulate an emergency response plan, strengthen emergencymonitoring, promptly release relevant information and carry outemergency drills·Select more robust raw materials, conduct regular inspectionand maintenance, strengthen the inspection of external powerfacilities, and set up backup power sources·Equip emergency supplies, establish emergency rescueteams, conduct emergency drills, and enhance personnel'semergency response capacity·Strengthen the ventilation of workshops, set up airconditioners, fully recover heat energy for heating and issuecooling materials in summer to lower the temperature ofworkshops and ensure a suitable working environment·Set up a strategic analyses team to track and analyze policiesregarding global climate change and carbon emissions·Study the potential impact of regional policies and regulationson our business in cooperation with third-party organizationsand make timely adjustments·Conduct compliance review on our suppliers, implementmonitoring, formulate green supply chain goals andmanagement policies, and eliminate suppliers at risk·Set up R&D Center to constantly strengthen technologyinvestment and promote low-carbon technology innovation·Overcome traditional technology limitations by leveragingmultiple exclusive core technologies·Ensure that the zero carbon concepts used in productpromotion and sales are unambiguous, based on expert advice·Establish a specialized Legal Department to help the companyavoid litigation-related risks
·Upgrade technology to improve power generation e?ciency,reduce KWh cost and gradually increase market share·Optimize product carbon footprints through the product lifecycle environmental impact assessment, low-carbon productdesign, and other projects·Constantly track and feedback changes in market demandsand promptly adjust business planning·Commit to being the ?rst in the sector to achieve carbonneutrality across the value chain·Invite third-party organizations for full value chain carbonveri?cation·Regularly announce to the public the ful?llment of thecompany's climate change goals and milestone action plans
·Enhance compliance management, strictly implement lawsand regulations, early plan the production & discharge designand manage with improved standards·Participate in formulating and drafting product-relatedstandards·Help clients achieve energy transformation and enhance theirenvironmental performance by leveraging the advantages of ourproducts and technology
Risk type Impact analysis CountermeasureClimate-related impact, risk and opportunity managementGRI 302 | GRI 305 | TCFD A | TCFD C
Low-carbon Value creation GovernanceHumane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Indicators and targets
GHG management
HY Solar follows the international climate action goals and relevant initiatives, and responds to the global average temperature risecontrol goal under the Paris Agreement and China's strategic goals of "carbon peaking by 2030 and carbon neutrality by 2060". Toaccelerate the implementation of its carbon neutral goals, the company formulates goals and indicators of energy, water resources,wastes, etc., manages its GHG emissions, constantly monitors the target implementation, and makes every e?ort to address climatechange.
The company constantly conducts quanti?cation of its GHG emissions at the organization level. During the reporting period, HYSolar (Wuxi) verified its GHG emissions for 2023 and formulated GHG improvement actions to facilitate the company's steadyprogress on its path toward sustainability. In 2024, the company quanti?ed its total GHG emissions at the organization level (Scope1 and Scope 2) resulting from the consumption of natural gas, gasoline, diesel and outsourcing electricity within its operationsboundary, totaling 2,087,356.14 tons of carbon dioxide equivalent.
Note: The scope of operation boundary at the organization level in 2024 includes HY Solar, HY SOLAR (Wuxi), Hongyuan Energy (Baotou),Hongyuan New Material (Baotou), Hongyuan New Material (Baotou) and Hongyuan New Material (Xuzhou). Only the GHGemissions from natural gas, gasoline, diesel and outsourcing electricity are quantitatively calculated.
Scope 1: Total direct GHG emissionsScope 1: Direct GHG emissionsScope 2: Indirect GHG emissionsfrom energyTotal GHG emissions(Scope 1 and Scope 2)Emission intensity of ten thousand yuan outputvalue
2.86
Natural gasGasolineDieselOutsourcingelectricity
Tons of carbondioxide equivalent
Tons of carbondioxide equivalent /ten thousand yuanoutput value
2,696.332,251.28
293.74
151.31
2,084,659.812,087,356.14
8,784.708,238.18
299.31
247.20
1,683,056.761,691,841.46
1.43
530.11
155.38
181.02
193.71
1,100,561.761,101,091.88
0.50
Indicator
Emissionsource
Unit 202420232022GHG emissions at the organization level (Scope 1 and Scope 2):
Environmental compliancemanagement
Environmental management system
Environmental protection risk management
HY Solar strictly adheres to the Environmental Protection Law of the People's Republic of China and other national and localenvironmental protection laws and regulations, placing signi?cant emphasis on the impact of its operations on the environment.The company has established a systematic environmental management system, formulated environmental protection responsibilitysystem and built a comprehensive environmental management structure, clarifying the division of labor and responsibilities at alllevels and integrating environmental management into its businesses. As of the end of the reporting period, all operations sitesof the company have passed ISO 14001 Environmental Management System Certi?cation. In 2024, the company's investment inenvironmental protection amounted to RMB 76.9345 million yuan, including the costs for renovation environmental protectionfacilities, disposal of hazardous wastes, renovation of rainwater and sewage pipes, remediation under emergency response plans,environmental monitoring, etc.
The company has formulated the Control Procedures for Identi?cation and Evaluation of Environmental Factors and Procedures forIdenti?cation of Dangerous Sources and Risk Evaluation, and regularly conducted environmental risk identi?cation, evaluation, andmanagement & control measures to ensure full alignment of all activities with environmental protection standards. We have setclear environmental goals and indicators for important environmental impact factors, and developed corresponding managementplans and emergency response plans to control key environmental factors. During the reporting period, the company did not incurany administrative penalties for breaches of the environmental protection laws and regulations, nor were there any major incidentsinvolving pollutant leakage or environmental violations.
GRI 302 | GRI 303 | GRI 306
5051
5253
Low-carbon Value creation GovernanceHumane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
HY Solar (Wuxi)
Hongyuan New Material (Xuzhou)
Hongyuan New Material (Baotou)
Hongyuan Energy (Baotou)
100% compliance of domestic sewage and rainwater discharge100% compliance of VOCs discharge100% compliance of day and night noise discharge100% compliance of hazardous waste disposal100% compliance of general solid waste disposalZero soil & water pollution accidents100% wastewater reuse, and 100% compliance of waste gas emission100% compliance of solid waste & hazardous waste disposal100% compliance of plant boundary noiseZero environmental pollution accidents100% implementation of the environmental emergency response plan100% soundness & operations of environmental protection facilities100% collection of solid waste and hazardous waste100% disposal of environmental protection facility operation abnormalityZero EHS government penalty incidents
100% synchronized operation of environmental protection managementfacilitiesZero environmental pollution accidents with media exposure or impact atthe municipal level and above
100% management, control and compliance of environmental emissionindicators
Ful?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lledFul?lled
Subsidiaries 2024 environmental targets Ful?lment in 2024
Environmental trainingHongyuan New Material (Baotou) has formulated the Environmental Protection Education and Training System, conductingonline and offline environmental protection training through routine and special environmental protection education, trainingon the environmental emergency response plan, etc. Environmental emergency management training and drills have beenregularly conducted, with all trainings being recorded in detail and ?led. The training covered general knowledge of environmentalprotection laws and regulations, identi?cation of environmental factors, as well as management practices regarding solid waste,environment, energy conservation & emission reduction, and major hazardous sources. In 2024, the company organized 64environmental protection training sessions for all employees, which were attended by 5,707 employees and lasted for 20,000 hours.
the company organized
The number of participatingemployees reachedThe training duration exceededIn 2024645,70720,000environmental protection trainingsessions for all employees
hours
Special training on environment and energy conservation & emission reduction Training on general knowledge of
environmental protection laws ®ulations, and solid waste management
Drills and training on warehouse chemical leakage
Special safety training on environmentalfactor identi?cation
Training on management requirementsfor major dangerous sources
Training on hazardous chemical safetymanagement
5455
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HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Energy management
Taking energy management as an important strategic task, HY Solar strictly abided by relevant laws and standards, and formulatedthe Energy Management Standards, as well as other regulations and process mechanisms regarding energy management. We setup a functional department responsible for energy management to clarify energy management responsibilities, establishing andimplementing an e?cient energy management system. During the reporting period, Hongyuan New Material (Baotou), HY Solar(Wuxi) and HongYuan New Material (Xuzhou) have passed the ISO 50001 Energy Management System Certi?cation, which will covermore production bases.
Energy use
Environmental performanceNatural gasGasolineDieselOutsourcing electricityTotal energy consumptionConsumption of outsourcing electricity as apercentage of total energy consumptionEnergy intensity of ten thousand yuan outputvalue
GJ/ten thousandyuan output value
m?GJLGJLGJkWhGJGJ%
1,045,289.9337,221.21133,534.824,174.9556,323,762,020.463,132,874,805.001,122,788,349.3011,321,765.91
99.62
15.50
13,830,709.00492,490.84141,547.744,425.4795,056.233,409.872,951,177,915.0010,624,240.4911,124,566.67
95.50
9.38
77,706.162,767.0075,530.162,361.4474,405.002,669.071,929,794,431.006,947,259.956,955,057.47
99.89
3.17
Indicator Unit202420232022
HY Solar takes on its heavy responsibilityfor energy conservation and e?ciencywith practical actions, and each baseactively explores and carries out energyreduction technology transformationwith its own process characteristicsto e?ectively improve energy usee?ciency. The company sets clear itsyearly energy management targets andorganizes relevant trainings to enhancethe employees' energy managementawareness and skill level. In 2024, thecompany promoted a total of 36 energyconservation optimization projects.
By installing metal wall panels around the lamination area, adding removable sliding doors at the front and rear assembly lines, andretro?tting the discomfort of the operators in the lamination area and other actions, HY Solar (Wuxi) controlled the temperaturesbefore lamination and at places like curing test areas, alleviating operators' discomfort in the lamination area while reducing theoperation of power-consuming equipment. Take air-conditioners as an example, this could save about 663,600kwh of electricityannually on the assumption that they operate 300 days a year.
In 2024, Hongyuan New Material(Xuzhou) adjusted the speedsof the heat recovery circulatingwater pumps for di?erent workingconditions by temporarily connectingthe standby chilled water frequencycontrol cabinets to the pump motorsfor frequency control, in order tomake the equipment operate in amore e?cient and safe manner. Wecompleted the energy conservationtechnical transformation of the heatrecovery circulating water pumps bychanging the working frequency, andfurther optimized their operationalparameters. During the transitionseason, a single heat recovery pump(220 KW) was connected to the controlcabinet of the standby chilled waterpump and operated at the changedworking frequency (30 Hz) for about5 months, saving about 300,000 kwhof electricity per year on the premisethat the pressure and ?ow rate weremet. Obvious energy conservation andeconomic bene?ts were realized at thePV Cell Workshop.
Through its technologytransformation project forrestoring the automaticcontrol system, HongyuanEnergy (Baotou) aimed to saveenergy, reduce carbon, lowerenergy costs, decrease theworkload of skilled techniciansin process design and mastercontrol, optimize the reductionprocess, reduce reductionpower consumption, enhancesecondary conversion rate, andhelp increase the deposition rateof polycrystalline silicon.
Case
Case
Case
Temperature retro?t at lamination/string welding zone
Energy conservation technology reform of heat recovery pumps in the PV cell workshop bychanging the working frequency
Technology Transformation Project for Restoring theAutomatic Control System
Temperature Retro?t Project at Lamination/String Welding Zone
GRI 302 | TCFD A | IFRS RR-ST-130a.1 | SASB RT-EE-130a.1
5657
Low-carbon Value creation GovernanceHumane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Water managementHY Solar strictly abided by national laws & regulations and local policies, and gradually established a perfect water managementsystem to constantly strengthen water use management and optimize the water consumption structure. The company sources itswater from municipal water pipeline network and ?re water pipeline network, primarily for use in production operations, o?ceutilities and ?re emergency situations. During the reporting period, there were no negative impacts on local water resources in termsof water extraction, consumption or discharge.The company attached great importance to water management, and each production base formulated its water resource use targetsaccording to its own characteristics of water use in production. The company implemented water-saving measures, including therecycling of steam condensate water, the recycling and renovation of condensate water from air-conditioning rooms, the supply ofdiluted alkali wastewater to washing towers, etc. These measures minimized the water resource consumption from the source toreduce the operation risk arising from water shortage. During the reporting period, the company has completed 16 water conservationmeasures and water recycling projects, with a recycled water of 146,879,278.70 tons.
Hongyuan New Material (Baotou) adopted a mixed process composed of ?ltration with bag ?lters, ultra?ltration device,UV sterilization and reverse osmosis in its technology renovation of reclaimed water reuse system Phase II The processwas characterized by its advancement, simple & stable operation, high automation, simple equipment pipelines, a shortconstruction period, etc. The project was designed with a water intake capacity of 2,500 m?/d, producing 2,250 m?/d ofwater through net ultra?ltration and yielding 1,350 m?/d from the reverse osmosis system. The produced water met therequirements for cooling tower water. Reclaimed water softening system Phase II produced reclaimed water at 15 tons/hour per day and machine pressurized and ?ltered water at 80 tons/hour per day, which could reclaim 2,520 tons of waterper day if calculated comprehensively.
0.4 MPa steam surplus would occur when there were a large number of reduction furnaces operating during production process of
polycrystalline silicon, and more steam surplus would occur in case of full-scale production (where about 72 reduction furnaceswere operating). By adding a steam condensing device, Hongyuan Energy (Baotou) condensed and recycled the excessive 4 kgsteam with the dry air cooler to signi?cantly reduce energy consumption and costs for water treatment & water replenishment,saving energy and water resource while reducing GHG emissions.
CaseSteam Condensate Water Recycling Project
Hongyuan New Material (Baotou) technology renovation of reclaimed watersoftening system Phase II
Total water intakeTotal water dischargeTotal water consumptionCirculating water consumption
tt
10,080,4376,168,7595,871,043146,879,278.70
9,307,220.884,344,4124,515,265.88/
6,824,3872,038,524.604,785,862.40/
Indicator Unit 202420232022
GRI 303 | IFRS RR-ST-140a.1 | IFRS RR-ST-140a.2 | IFRS RR-ST-410a.2
5859
Low-carbon Value creation GovernanceHumane orientationIndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
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Air pollutant management
Waste management
Noise managementWastewater management
The air pollutants produced during the company's production are mainly nitrogen oxides,sulfur oxides and particle matter. We formulated internal management documents including,the Management Measures for Wastewater, Waste Gas and Noise, the Management and ControlProcedures for Wastewater, Waste Gas and Noise, etc. We engaged a qualified third-partyenvironmental testing organization to test regularly in strict accordance with the requirementsoutlined in the pollutant discharge permit, with all of the test results meeting the relevantrequirements. During the reporting period, there was no accident of excessive emission of wastegas, and air pollutants were discharged in 100% compliance with standards.
The company formulated internal management measures such as the Management Measures for Solid Waste Pollution and the
Management Measures for Hazardous Waste, and managed and disposed of wastes based on the categories. The company's solid
waste mainly falls within three categories: general waste, domestic waste and hazardous waste. General solid waste is centrally
stored by category at the temporary storage room for general solid waste and the waste slag shed, pending regular handover to a
quali?ed unit for treatment; Domestic waste is collected through garbage cans that are categorized and labelled, pending regular
treatment; For hazardous waste, a qualified third part is engaged for treatment in strict accordance with the relevant laws and
regulations. In addition, the company conducts training for operators and o?cers involving in hazardous waste once a year, with
training records maintained. During the reporting period, there was no accident in which the company was subject to penalty for its
pollutant exceeding the standards or discharged in violation of regulations.
The company has formalized related noise management measurements and set up responsible departments for noise management
in accordance with regulations and standards such as the Emission Standard for Industrial Enterprises Noise at Boundary. We
conducted spot check and maintenance of equipment generating pollution, immediately dealing with any abnormalities; took
appropriate blocking and isolation measures for noise sources to ensure that the noise at the plant boundary complied with the
standards; and equipped its employees with noise protection devices during operation in the vicinity of noise pollution sources to
ensure their physical and mental health, improve their working experience while reducing impacts on the neighboring communities.
During the reporting period, the company received no noise complaints.The company strictly abided by the applicable laws and regulations. In accordance withrelevant laws and based on the characteristics of its own production process, each productionbase formulated wastewater management procedures and conducted continuous monitoring.Hongyuan Energy (Baotou) reclaimed all of its production wastewater after treatment at itswastewater treatment station, realizing zero discharge. As for domestic wastewater, the canteenwastewater was pre-treated through the kitchen-speci?c grease trap facilities, combined withthe general domestic wastewater pre-treated by septic tanks, and treated by the industrialsilicon treatment facilities for domestic wastewater to ensure that it reached Level 3 of theIntegrated Wastewater Discharge Standard, before being sent to the Park's wastewater treatmentstation for subsequent treatment. During the reporting period, 100% of the company's overallwastewater was discharged in compliance with standards.
Pollutant emission andwaste management
Biodiversity
HY Solar strictly complied with applicable laws, regulations and standards on environmental protection, de?ning speci?cmanagement requirements for various discharges and wastes and preparing the relevant procedure documents. All functionaldepartments made sure through close collaboration that pollutants were managed and disposed of in a manner that minimized theimpact of production and operations on the ecological environment.
The company attaches constant importance to issues regarding ecosystem and biodiversity protection, and strictly adheres to the
ecological protection redline. None of the company's base projects are developed, constructed or sited within, near or outside
natural resource conservation areas, nor in biodiversity-rich regions outside conservation areas. We take ecological impacts into
account during the site selection of a new project. During production, we implement clean production, take measures to prevent and
control pollution, manage and control the risk of soil and groundwater pollution, and endeavor to reduce the negative impacts of
GHG emissions, discharges and resource use on biodiversity during operation. During the reporting period, there were no signi?cant
impacts on biodiversity attributable to the company's production and operation activities, or its products and services.
Air pollutants wasdischarged incompliance with standards
of the company's overallwastewater was dischargedcompliance with standards
%
%
Hongyuan New Material (Baotou) has built a sewage station, and the treated water met allindicators and requirements for reclaimed water. To reduce the consumption of tap waterduring production, Hongyuan New Material (Baotou) decided to launch the Water ReclaimingProject of Drainage Outside the Sewage Station Phase I and Phase III for technology innovationfor reduced or zero discharge. The wastewater discharged from the sewage station was sent tothe power station for reuse, and it replaced the supplementary tap water in the power stationand was recycled outside the closed cooling tower after treatment so that water resource wassaved. After the completion of the project in 2024, based on the data of the base period and thestatistical period, this Project reduced the water intake per product unit by 8.94 m3/t, or savedwater by 558,742.49 m3 per year calculated on the basis of the annual production discountedwith the load in the base period. Water was reclaimed by 1,530.8 m3/d after sewage treatmentand reused at the machining workshop and circulating cooling tower, resulting in reducedsewage discharge of 558,742.49 m3 and annual energy consumption of 23.36 tce (equivalentvalue).
CaseWater Reclaiming Project of Drainage Outside the Sewage Station
Hazardous wasteGeneral solid wasteTotal waste volume
t
660.58
55,638.5356,299.11
59.64
31,760.7231,820.36
10.69
29,10029,110.69
Indicator Unit 202420232022
GRI 304
GRI 306 | SASB RT-EE-150a.1 |SASB RT-EE-150a.2
6061
Humane orientationValue creation GovernanceLow-carbon IndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
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6061
Employee coverage rate of collective contracts: %Proportion of female employees: %
Number of chemical leakage, ?re andexplosion, serious injury and death accidents:
Training all employees and sta?: approximatelyCoverage rate of medical examination and health records:
hours
22.20
160,000
Compliance rate of industrial noise: %
? Employees' rights and bene?ts? Talent cultivation? Occupational health
P62P65P67
Humane orientationValue creation GovernanceLow-carbon IndexAbout us
Humane
orientation
%
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
6263
Humane orientationValue creation GovernanceLow-carbon IndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
Employees' rights and bene?tsIn strict compliance with local laws and International Labor Organization conventions, HY Solar formulated a series of internalmanagement measures, implemented the labor contract and collective contract system to ensure the full protection of employees'basic rights and interests such as labor compensation, rest and leave, occupational health and safety, social insurance, and vocationalskills training. In addition, we have established a sound employee welfare and care system and standardized welfare managementthrough such documents as the Employee Handbook and the Management Measures for Employee Welfare to attract, retain andincentivize outstanding employees.Meanwhile, we ?rmly oppose any form of discrimination, adhere to the principle of equality and fairness, and provide every employeewith fair development opportunities; We prohibit forced labor and child labor to ensure that all employees are legally admitted to thecompany and have reached the age of 18, maintaining the fairness and legality of the labor market.
Within the reporting period
accidents of child labor,forced labor, discrimination orharassment occurredNoNo
complaints about child labor,forced labor, discrimination orother labor
Employee coveragerate of collectivecontract is
%
Rights and interests protection
Diversity and inclusion
Protection of women's rights and interests
We fully respect employees'legal rights of free assembly andfree association, encouragingthem to join the labor union.We are committed to creating adiversi?ed, equal and inclusiveworking atmosphere whereevery employee can experiencea sense of belonging and value.
The company always adheres to the principle of acceptance and inclusiveness, and provides equal working opportunities for thedisabled. During the reporting period, we recruited 46 disabled employees. We constantly improve our system to fully protectdisabled employees' rights and interests. Hongyuan Energy (Baotou) has developed the Management Standards of DisabilitySubsidies, clarifying the amount of subsidies for disabled employees.
We always respect and attach great importance to female employees, andare committed to protecting the women employees' rights and interests.The total number of employees in Hongyuan 2024 is 6,347, of which 1,409are women, accounting for 22.20%. We implement the Law of the People'sRepublic of China on the Protection of Women's Rights and Interests andother applicable laws and regulations to ensure the full protection ofworking mothers' legitimate rights and interests. In particular, HongyuanEnergy (Baotou) organized mental health lectures for female employees,provided two cancer screenings, set aside mother and baby rooms, andarranged maternity checkups and granted breastfeeding leave. HongyuanNew Material (Xuzhou) took measures to protect female employees' rightsand interests, such as presenting bene?ts on International Women's Day.Hongyuan New Material (Baotou) organized the "521 Theme Activity: Caringfor Female Employees", distributing free milk powder to pregnant women.
GRI 2-7 | GRI 2-8 | GRI401 | GRI 402 | GRI 410
6465
Humane orientationValue creation GovernanceLow-carbon IndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
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Diversi?ed employment and internationalized strategy
Meticulous employee care
Complete employee communication channels
The company upholds the concept of professional and human-based protection of employees' rights and interests when developingoverseas markets. Flexible o?ce policy is adopted for the overseas sales team to support home o?ce and abandon the traditionalclock-in practice. With a focus on employee care, we send employees blessing emails and e-cards during festivals. Currently, foreignemployees account for 87.5% of the overseas team, demonstrating our diversi?ed and internationalized recruitment strategy.
Hongyuan cares for its employees at the utmost. Hongyuan New Material provided cash assistance in total amount of RMB38,202for employees with serious illnesses in 2024. Hongyuan Energy (Baotou) responded swiftly by organizing fund-raising and providingtimely condolences when employees encountered di?culties. Each subsidiary implemented various employee care initiatives, suchas Baotou New Materials coordinating the enrollment of non-local employees' children and HY Solar providing accommodation fornon-local employees.
We have established a diverse communication mechanism such as the Hongyuan Voice Platform, Suggestion Box, and EmployeeSymposium to ensure that employees can e?ectively voice their ideas. Hongyuan New Material (Xuzhou) Base addressed all 259pieces of employee voices within a week, with a handling rate of 100%, and organized 7 o?ine seminars and interviews, attendedby a total of 230 person times. Hongyuan New Material (Baotou) has set up the "Employee Voice Channel" to collect employees'opinions.
Talent cultivationTalent cultivation injects inexhaustible power for business development. We summarized training experience from theprevious year, comprehensively updated the annual training plan and talent development management system, andprovided case studies, sales skills training, product knowledge training, English training, etc. in light of the direction ofposition development to enhance the sta?'s competence in actual practice and problem-solving.
The company's talent development management system comprises the Management Measures for Talents and the ManagementMeasures for Promotion and Demotion, which clearly outline career development paths and promotion mechanisms to ensure fairand structured talent growth. The company attaches importance to the exploitation and utilization of internal training resources,and invites external experts to conduct lectures on such ?elds as safety management, technology skills and career development,including laws training, exclusive training for female employees, and business ethics training, enhancing employees' comprehensivequality and professionalism.
English training
Tax knowledge sharing
Sta? Dormitory Sta? Bookstore Sta? Innovation Workshop
Hongyuan's VoiceEmployee
Suggestion BoxDemocratic Life Meeting
Training on answering frequently asked questions by customers
Silicon material application knowledge training
PV industry chain training
GRI 404
New employees training
6667
Humane orientationValue creation GovernanceLow-carbon IndexAbout usHY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
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We sort out the present state of talents, understand their distribution and structure through the annual talent inventory report, andadopt the nine-grid classi?cation approach to accurately evaluate the employees' performance and capacity. Based on the inventoryresults, the company develops targeted training plans and promotion programs for all-round development and full utilizationof talents, with measures including providing more development opportunities and resources for star employees, formulatingpersonalized career development plans for key employees, and increasing attention and counseling for employees facing challenges.
Determination ofinventory approaches
Results follow-up fordynamic management
Mapping talents Identifying talents with
high potential to build asuccession talent pool
Talent classi?cation andgrading
Methodology of trainingand inventory
Inventory initiated by
the department
Knowledge and practice
examination
Inventory of bothperformance and capacity
The company conducted regular skill competitions and labor union activities, encouraging employees to constantly improve theirskills and pursue excellence. Hongyuan New Material (Baotou) selected the position experts and presented generous bonusesthrough the ?erce competition in the "Hongyuan Gold Craftsmen", signi?cantly boosting employee enthusiasm and initiative.
Note:1.Unit: hour for all.
2. Only basic foundation induction training is available for overseas, with a coverage rate of 100%.
HY SolarHongyuan NewMaterial (Xuzhou)HongyuanEnergy (Baotou)Hongyuan NewMaterial (Baotou)HY Solar (Wuxi)
2.67
1,228
2,400
0.71
2,7504,400
1,280
0.35
11,60058,413.664,800
11,812
50.4
0.05
13.61
Total traininghours
Total traininghoursTotal traininghours
Total traininghoursTraining hoursper capita
Training hoursper capitaTraining hoursper capita
Training hoursper capita
Senior management Middle management General management General employees
% of all employees Employees included in performance appraisals account for
Occupational healthRegarding employees' occupational health and safety as the cornerstone of corporate Sustainability, the company hascompleted a comprehensive safety management system. We implement the policy of "Safety Foremost, PreventionFirst and Comprehensive Treatment" to safeguard employees' life and health rights in the workplace; We establish thecross-departmental Work Safety Management Committees and Work Safety O?ce covering the persons in charge of eachoperation line and employee representatives, to ensure the resource input for work safety management.All of our production bases have passed the ISO 45001 Occupational health and safety system certi?cation, and have beenawarded as a Level 2 or Level 3 standardized work safety enterprise.
Compliance rate of industrialnoise
Serious injury or fatality incident
Major and above work safetyliability accident
Chemical leakage incident
Coverage rate of medicalexamination and health records
Workplace fatality incident due toproduction-related accidents
Fire and explosion accident
Occupational health andsafety emergent incident
Lost labor rate per 200,000man hours
Performance in 2024
0.437
%
%
GRI 403
Steps to promote talent inventory
6869
Humane orientationValue creation GovernanceLow-carbon IndexAbout us
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Chairman's MessageIntroduction
We formulated the management measures and implementation rules covering safety training, occupational health and safetyexamination, purchase of safety equipment in strict accordance with the applicable laws and regulations to safeguard employees'occupational health & safety and create a stable safety management environment for production.We provided full medical examination service, including pre-employment, in-service and exit medical examination, to ensureemployees' health. All costs for medical examination were covered by the company, demonstrating our deep concern and signi?cantattention to employees' health.
We constantly increase occupational health and safety education, with a focus on suchkey areas as laws & regulations, safety operation procedures, new employee orientation,emergency response plan, and ?re?ghting & special operations; adopt variousmethods such as three-level safety education, specialized type of work education, andrecurrent safety education, to ensure that employees receive comprehensive safetyknowledge and skills; and promptly organize quali?cation safety training & retraining,practical operations and emergency drills to enhance employees' occupational healthawareness and capacity.
During this year's Safety Month, Hongyuan New Material (Xuzhou) organized a series of training and drills on occupationalhealth and safety surrounding the theme of "Everyone talks about safety and everyone knows emergency measures",including comprehensive safety inspections, special safety inspections, emergency response drills, safety knowledgepromotions, quizzes and ERT team drills, signi?cantly enhancing employees' safety awareness and emergency handlingcapacity.
Demonstrating the excellent safety management performance
Emergency drill for anti-electric shock in electrical workshop Drill for treatment of poisoning,su?ocation and argon leakage in qualityinspection center
Special emergency drill for exhaust gasworkshop
Special training on hidden dangerinvestigation and management
Emergency drill for mechanical injury in
post-treatment workshop
Emergency drill for scald accident inquality inspection center
Special safety training on environmentalfactor identi?cation
Drill for workshop chemical leakage
Training on EHS hazard identi?cation Special training on accident analysesand preventive measures
7071
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationAbout us Index
/战略、政策和实践About usPolicy commitmentPolicy commitmentBusiness ethics
About us利益相关方参与
GRI3：实质性议题2021
GRI201：经济绩效2021Value creationValue creationClimate change
GRI202：市场表现2016Value creationValue creation /GRI203：间接经济影响2016About us
Statement of useGRI 1 usedApplicable GRI Sector Standard(s)
GRI 1: Foundation 2021NAHY Solar Co., Ltd. has reported in accordance with the GRI Standards for the period from 1January 2024 to 31 December 2024.
2-1 Organizational details2-2 Entities included in the organization's sustainability reporting2-3 Reporting period, frequency and contact point2-4 Restatements of information2-5 External assurance Activities and workers活动和工作者2-6 Activities, value chain and other business relationships2-7 Employees2-8 Workers who are not employees管治2-9 Governance structure and composition2-10 Nomination and selection of the highest governance body2-11 Chair of the highest governance body2-13 Delegation of responsibility for managing impacts2-14 Role of the highest governance body in sustainability reporting2-15 Con?icts of interest2-16 Communication of critical concerns2-17 Collective knowledge of the highest governance body2-18 Evaluation of the performance of the highest governance body
About usReport pro?leReport pro?leNone活动和工作者About us
管治
Report pro?leBusiness ethics
Disclosure
Disclosure
Location
Location
Omission
OmissionIndex
GRI content index
GRI 2: General Disclosures 2021The organization and its reporting practices
2-19 Remuneration policies2-20 Process to determine remuneration2-21 Annual total compensation ratio战略、政策和实践2-22 Statement on sustainable development strategy2-23 Policy commitments2-24 Embedding policy commitments2-25 Processes to remediate negative impacts2-26 Mechanisms for seeking advice and raising concerns2-27 Compliance with laws and regulations2-28 Membership associationsStakeholder engagement2-29 Approach to stakeholder engagement2-30 Collective bargaining agreementsGRI 3: Material Topics 20213-1 Process to determine material topics3-2 List of material topicsGRI201：Economic Performance20213-3 Management of material topics201-1 Direct economic value generated and distributed201-3 De?ned bene?t plan obligations and other retirement plans201-4 Financial assistance received from governmentGRI202：市场表现20163-3 Management of material topics
GRI203：间接经济影响20163-3 Management of material topics
Activities and workers
Governance
Strategy, policies and practices
Stakeholder engagement
GRI 3: Material Topics 2021
GRI201：Economic Performance 2021
GRI 202: Market Presence 2016
GRI 203: Indirect Economic Impacts 2016
Information incomplete, there are many
subsidiaries, and accurate data cannot be
disclosed temporarily.
Con?dentiality constraints,
personal information of employees
involved will not be disclosed temporarily.
See the annualreport
CorporategovernanceSustainabilitymanagementStakeholderengagement
SustainabilitymanagementSustainabilitymanagement2-12 Role of the highest governance body in overseeing themanagement of impacts
CorporategovernanceCorporategovernanceCorporategovernanceHumaneorientationHumaneorientation
Veri?cationstatement
Employees' rightsand bene?ts201-2 Financial implications and other risks and opportunities due toclimate change
202-1 Ratios of standard entry level wage by gender compared tolocal minimum wage202-2 Proportion of senior management hired from the localcommunity
SustainabilitymanagementSustainabilitymanagementEmployees' rightsand bene?tsStakeholderengagement
CorporategovernanceStakeholderengagement
CorporategovernanceCorporategovernance
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HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
203-1 Infrastructure investments and services supported203-2 Signi?cant indirect economic impactsGRI 204: Procurement Practices 20163-3 Management of material topics204-1 Proportion of spending on local suppliersGRI205：反腐败20163-3 Management of material topics205-1 Operations assessed for risks related to corruption205-3 Con?rmed incidents of corruption and actions takenGRI206：反竞争行为20163-3 Management of material topicsGRI207：税务20193-3 Management of material topics207-1 Approach to tax207-2 Tax governance, control, and risk management4 Country-by-country reportingGRI 301: Materials 20163-3 Management of material topics301-1 Materials used by weight or volume301-2 Recycled input materials used301-3 Reclaimed products and their packaging materialsGRI302：能源20163-3 Management of material topics302-1 Energy consumption within the organization302-2 Energy consumption outside of the organization302-3 Energy intensity
About usAbout usGRI204：采购实践2016
GRI205：反腐败2016Business ethicsBusiness ethicsBusiness ethicsBusiness ethicsGRI206：反竞争行为2016Business ethicsBusiness ethicsGRI207：税务2019Corporate governanceCorporate governanceCorporate governanceCorporate governance/GRI301：物料2016
GRI302：能源2016Energy managementEnergy management/Energy management
302-4 Reduction of energy consumptionGRI303：水资源和污水20183-3 Management of material topics303-1 Interactions with water as a shared resource303-3 Management of water dischargerelated impacts303-3 Water withdrawal303-4 Water discharge303-5 Water consumptionGRI 304: Biodiversity 2016
GRI305：排放20163-3 Management of material topics305-1 Direct (Scope 1) GHG emissions305-2 Energy indirect (Scope 2) GHG emissions305-3 Other indirect (Scope 3) GHG emissions305-4 GHG emissions intensity305-5 Reduction of GHG emissions305-6 Emissions of ozone-depleting substances (ODS)
Energy managementEnergy managementGRI303：水资源和污水2018Water managementWater managementWater managementWater managementWater managementGRI304：生物多样性2016
GRI305：排放2016Climate changeClimate changeClimate change/Climate changeClimate change
Biodiversity
/
GRI 204: Procurement Practices 2016
GRI 205: Anti-corruption 2016
RI 206: Anti-competitive Behavior 2016
GRI 207: Tax 2019
GRI 301: Materials 2016
GRI 302: Energy 2016
GRI 303: Water and Effluents 2018
GRI 304: Biodiversity 2016
GRI 305: Emissions 2016
3-3 Management of material topics
304-3 Habitats protected or restored
/
/
/
/
Index
Pollutant emission and wastemanagement
Not applicable, the organization doesnot involve ozone depleting substances(ODS) emissions in its processes,products and services.Information unavailable, energyconsumption related to upstream anddownstream categories and activitieshas not been collected.
Not applicable, country reports are notavailable.
Information unavailable, data on otherindirect (Scope 3) GHG emissions havenot been collected.
Not applicable, all the development,construction and site selection of thecompany's base projects are not in,near or outside the natural resourcereserve areas rich in biodiversity.
Not applicable, all the development,construction and site selection of thecompany's base projects are not in,near or outside the natural resourcereserve areas rich in biodiversity.
Not applicable, all the development,construction and site selection of thecompany's base projects are not in,near or outside the natural resourcereserve areas rich in biodiversity.
Not applicable, all the development,construction and site selection of thecompany's base projects are not in,near or outside the natural resourcereserve areas rich in biodiversity.
Pollutant emission and wastemanagement
304-1 Operational sites owned, leased, managedin, or adjacent to, protected areas and areas of highbiodiversity value outside protected areas
304-4 IUCN Red List species and national conservationlist species with habitats in areas a?ected by operations
305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), andother signi?cant air emissions
304-2 Signi?cant impacts of activities,products andservices on biodiversity
302-5 Reductions in energy requirements of productsand services
Product lifecyclemanagementProduct lifecyclemanagementProduct lifecyclemanagementProduct lifecyclemanagement
Sustainable supplychainSustainable supplychain
205-2 Communication and training about anti-corruptionpolicies and procedures
206-1 Legal actions for anti-competitive behavior,antitrust, and monopoly practices
207-3 Stakeholder engagement and management of concernsrelated to tax
DisclosureLocationOmissionDisclosureLocationOmission
7475
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Talent cultivationTalent cultivationTalent cultivationTalent cultivationGRI405：多元化和平等机会
/GRI406：反歧视2016
GRI407：结社自由与集体谈判
GRI408：童工2016
GRI409：强迫或强制劳动2016
GRI410：安保实践2016//GRI411：原住民权利2016//GRI413：当地社区2016
/
GRI306：废弃物20203-3 Management of material topics306-1 Waste generation and signi?cant wasterelated impacts306-2 Management of signi?cant waste-related impact306-3 Waste generated306-4 Waste diverted from disposa306-5 Waste directed to disposalGRI308：供应商环境评估20163-3 Management of material topics
GRI401：雇佣20163-3 Management of material topics401-1 New employee hires and employee turnover401-3 Parental leaveGRI402：劳资关系20163-3 Management of material topics402-1 Minimum notice periods regarding operational changesGRI403：职业健康与安全20183-3 Management of material topics403-1 Occupational health and safety management system403-3 Occupational health services403-5 Worker training on occupational health and safety403-6 Promotion of worker health
403-9 Work-related injuries403-10 Work-related ill health
Sustainable supply chainSustainable supply chainSustainable supply chainSustainable supply chain/
GRI402：劳资关系2016Occupational health/GRI403：职业健康与安全2018Occupational healthOccupational healthOccupational healthOccupational healthOccupational healthOccupational healthOccupational healthOccupational healthOccupational healthOccupational healthOccupational health
GRI404：培训与教育20163-3 Management of material topics404-1 Average hours of training per year per employee
GRI405：多元化和平等机会3-3 Management of material topics405-1 Diversity of governance bodies and employees405-2 Ratio of basic salary and remuneration of women to menGRI406：反歧视20163-3 Management of material topics406-1 Incidents of discrimination and corrective actions takenGRI407：结社自由与集体谈判3-3 Management of material topicsGRI408：童工20163-3 Management of material topicsGRI409：强迫或强制劳动20163-3 Management of material topicsGRI410：安保实践20163-3 Management of material topicsGRI411：原住民权利20163-3 Management of material topics411-1 Incidents of violations involving rights of indigenousv peoplesGRI413：当地社区20163-3 Management of material topics
GRI 308: Supplier Environmental Assessment 2016
GRI 306: Waste 2020
GRI 401: Employment 2016
GRI 402: Labor/Management Relations 2016
GRI 403: Occupational Health and Safety 2018
GRI 405: Diversity and Equal Opportunity 2016
GRI 404: Training and Education 2016
GRI 406: Non-discrimination 2016
GRI 407: Freedom of Association and Collective Bargaining
GRI 408: Child Labor 2016
GRI 409: Forced or Compulsory Labor 2016
GRI 410: Security Practices 2016
GRI 411: Rights of Indigenous Peoples 2016
GRI 413: Local Communities 2016
Index
Not applicable, all operating points do notinvolve an actual or potentially signi?cantnegative impact on the local community.
Not applicable, the company did not countthis information.Not applicable, the company did not countthis information.Information unavailable, the company didnot count this information.Information unavailable, the company didnot count this information.
Information unavailable, the companydid not count this information.
Not applicable, this information is notinvolved.
Not applicable, personal information ofemployees involved will not be disclosedtemporarily.
Contributions tosocietyContributions tosociety
Employees' rightsand bene?tsEmployees' rightsand bene?ts
Employees' rightsand bene?tsEmployees' rightsand bene?tsEmployees' rights andbene?ts
Pollutant emission andwaste management
308-1 New suppliers that were screened using environmentalcriteria308-2 Negative environmental impacts in the supply chainand actions taken
401-2 Bene?ts provided to full-time employees that are notprovided to temporary or part-time employee
403-2 Hazard identi?cation, risk assessment, and incidentinvestigation403-4 Worker participation, consultation, and communicationon occupational health and safety
403-7 Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships403-8 Workers covered by an occupational health and safetymanagement system
Pollutant emission andwaste managementPollutant emission andwaste managementPollutant emission andwaste managementPollutant emission andwaste managementPollutant emission andwaste management
Employees' rights andbene?tsEmployees' rights andbene?ts
Employees' rightsand bene?tsEmployees' rightsand bene?ts
Employees' rightsand bene?tsEmployees' rightsand bene?ts
404-2 Programs for upgrading employee skills and transitionassistance programs404-3 Percentage of employees receiving regular performance andcareer development reviews
407-1 Operations and suppliers in which the right to freedom ofassociation and collective bargaining may be at risk
408-1 Operations and suppliers at signi?cant risk for incidents ofchild labor
409-1 Operations and suppliers at signi?cant risk for incidents offorced or compulsory labor
410-1 Security personnel trained in human rights policies orprocedures
413-1 Operations with local community engagement, impactassessments, and development programs413-2 Operations with signi?cant actual and potential negativeimpacts on local communities
Employees' rightsand bene?tsEmployees' rightsand bene?ts
DisclosureLocationOmissionDisclosureLocationOmission
7677
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Total energy consumptionPercentage of grid powerPercentage of renewable electricityTotal water withdrawalTotal water consumption
IFRS industry-based indexTopic and metric
MetricWatermanagement
Energymanagement
Total capacity of photovoltaic (PV) solar modules produced
GJ%%tt
MWRR-ST-000.A
RR-ST-130a.1RR-ST-140a.1RR-ST-140a.2
11,321,765.91
99.61
0.39
10,080,4375,871,043
4,454.88
Topic
Metric
MetricUnit
Unit
Code
Code
2024
2024
GRI414：供应商社会评估20163-3 Management of material topics414-1 New suppliers that were screened using social criteriaGRI415：公共政策20163-3 Management of material topics415-1 Political contributionsGRI 416: Customer Health and Safety 20163-3 Management of material topics
GRI417：营销与标识 20163-3 Management of material topics
GRI418：客户隐私20163-3 Management of material topics
GRI415：公共政策2016//GRI416：客户健康与安全2016Quality serviceQuality serviceQuality serviceGRI417：营销与标识 2016Quality serviceQuality serviceQuality serviceQuality serviceGRI418：客户隐私2016Business ethicsBusiness ethics
Sustainablesupply chain414-2 Negative social impacts in the supply chain and actionstaken
416-1 Assessment of the health and safety impacts of productand service categories416-2 Incidents of non-compliance concerning the health andsafety impacts of products and services
417-1 Requirements for product and service information andlabeling417-2 Incidents of non-compliance concerning product andservice information and labeling417-3 Incidents of non-compliance concerning marketingcommunications
418-1 Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Sustainablesupply chainSustainablesupply chainGRI 414: Supplier Social Assessment 2016
GRI 415: Public Policy 2016
GRI 416: Customer Health and Safety 2016
GRI 417: Marketing and Labeling 2016
GRI 418: Customer Privacy 2016
Not applicable, the countries where the companyoperates do not involve political donations.Not applicable, the countries where the companyoperates do not involve political donations.
Index
Veri?cation statementDisclosureLocationOmission
7879
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us Index
8081
HY Solar Co., Ltd.2024 Environmental, Socialand Governance Report
Value creation Chairman's MessageIntroductionGovernanceLow-carbon Humane orientationIndexAbout us
Report pro?le
The HONGYUAN GREEN ENERGY CO., LTD. 2024 Environmental, Social and Governance Report (hereinafter referredto as the "Report" and the "ESG Report") of is the third ESG report of HY Solar Co., Ltd. which aims to present ourmanagement methods, practices and performance in the field of environmental, social and governance to allstakeholders fairly and objectively.Unless otherwise speci?ed, the ?nancial data in the report are in RMB. The report is published on an annual basis, andthe last report was published in April 2024.
GRI 2-2 | GRI 2-3 | GRI 2-5 | GRI 2-5
Global Reporting Initiative GRI Sustainability Reporting Standards (2021)Self-regulatory Guidelines for Listed Companies of the Shanghai Stock Exchange No. 1 - Standardized OperationGuidelines No. 14 of Shanghai Stock Exchange for Self-Regulation of Listed Companies—Sustainability Report (Trial)
Sustainability Accounting Standards Board (SASB) Sustainability Accounting Standards for Electrical and ElectronicEquipment IndustriesIFRS S2 Industry-based Disclosure Requirements Volume 44 Solar Technology and Solution DevelopersTask Force on Climate-Related Financial Disclosures (TCFD)United Nations 2030 Sustainable Development Goals (UN SDGs 2030)The Ten Principles of the United Nations Global Compact (UNGC 10 Principles)
In accordance
With reference
Click on the cover to get the report
From January 1, 2024 to December 31, 2024, some information is slightly expanded.
This report covers HY Solar Co., Ltd. and its subsidiaries. For ease of writing, some entities will appear in the report withabbreviations, and their business types and referencing relationships are described as follows:
The cases and data in the report are all from the original records or financial reports of the actual operation of thecompany. Unless otherwise speci?ed, the currency types and amounts involved in this report are measured in RMB.
This report was approved by the Board of Directors on April 29, 2025.This report has obtained the "limited guarantee" opinion issued by T?V S?D Certi?cation and Testing (China) Co., Ltd.Please refer to the "Veri?cation statement" for details.
This report is available in electronic PDF format at:
? Shanghai Stock Exchange website (www.sse.com.cn)? Company website（www.hysolar.com）? HY Solar WeChat public account
Address: 158 Nanhu Middle Road, Binhu District, Wuxi City, Jiangsu ProvinceContact number: 0510-85958787Contact email: pr@hysolar.com
Time frame
Data source
Con?rmation and assurance
Report acquisition
Contact Information
Organizational scope
Reporting basis
Headquarter, equipment
SiliconSilicon wafer
Cell
Module
HONGYUAN GREEN ENERGY CO., LTD.Hongyuan Energy Technology (Baotou) Co., Ltd.
HOYUAN New Material (Baotou) Co., Ltd.
HY SOLAR Co., Ltd.YuanTech Solar Co., Ltd.Hongyuan New Material (Xuzhou) Co., Ltd.
HY Solar, the company, weHongyuan Energy (Baotou)Hongyuan New Material (Baotou)
HY SOLAR (Wuxi)YuanTech SolarHongyuan New Material (Xuzhou)
Business typeFull name of the companyAbbreviation
Index
Introduction