Contents
About the Report ...... 1
Message from the Chairman ...... 2
About Us ...... 4
Company Profile ...... 4
Honors & Awards ...... 5
Corporate Governance ...... 6
Governance Structure ...... 6
Internal Control ...... 8
Protection of Shareholders' and Investors' Interests ...... 8
Business Ethics ...... 9
I．Home Appliances for High-quality Life ...... 12
1.Product Innovation ............................................................................................. 12
2.Quality First ....................................................................................................... 16
3.Better User Experience ...................................................................................... 19
II、Building a Sound Ecosystem with Partners ...... 24
1.Promoting Supplier Growth ............................................................................... 24
2.Expanding Sales Channels ................................................................................. 26
3.Industry-wide Win-win Strategy ........................................................................ 29
III、Poverty Alleviation Targets Nutrition and Health ...... 32
1.Joyoung Hope Kitchen ....................................................................................... 32
2.Contribution to Poverty Alleviation ................................................................... 37
3.Contribution to COVID-19 Battle ..................................................................... 38
IV、Young and Enterprising Joyoung Employees ...... 41
1.Welcome to Joyoung .......................................................................................... 41
2.Employee Training ............................................................................................. 43
3.Care for Employees ............................................................................................ 49
V、Environmental Protection ...... 55
Environmental, Social and Governance Report 20201.Minimizing Environmental Impact .................................................................... 55
2.Efficient Resource Utilization ............................................................................ 58
Reader Feedback Form ...... 60
About the ReportThe Report is the first Environmental, Social and Governance (ESG) reportreleased by Joyoung Co., Ltd. to address the stakeholders' expectations anddemonstrate Joyoung's values, management, actions and achievements in terms ofESG and sustainable development.
1. Reporting period
The Report is an annual report, covering the period from January 1, 2020 toDecember 31, 2020. Some content is appropriately retrospective.
2. Report scope
Unless otherwise specified, the Report covers Joyoung Co., Ltd., including all itsbranches and subsidiaries.
3. Data source
All the information and data presented in the Report come from Joyoung Co.,Ltd.'s corporate documents, statistical reports and financial statements, as well asinformation on ESG and sustainable development collected, sorted and reviewed bythe company.
4. Basis of preparation
The Report is prepared in accordance with the regulations and requirements asspecified in the Shenzhen Stock Exchange Social Responsibility Instructions to ListedCompanies.
5. Shorter form of company name
For convenience, the terms "Joyoung", "the company" and "we" all refer toJoyoung Co., Ltd. in the Report.
6. How to get the report
The Report is released in electronic form. Please download it fromhttps://www.joyoung.com/ or Cninfo.
Message from the ChairmanIn 2020, amid the severe COVID-19 pandemic, China became the first country tobring COVID-19 under effective control under strong leadership of the CommunistParty of China and the Chinese government. All Joyoung employees managed to staysafe and healthy. We quickly adjusted our sales strategy and delivered remarkableperformance. In 2020, the company achieved a total revenue of RMB 11.224 billion(up 20.02% YoY) and net profit attributable to shareholders of RMB 940 million (up
14.07% YoY).
We have been focusing on our products and sales channels, which are our twomajor growth drivers. In terms of products, we have managed to accelerate theprogress of our 3-tier R&D system, maintained company competitiveness throughcontinuous product innovation and update, and promoted product quality throughoptimized supply chain management. We have been focusing on popular mainstreamproducts such as self-cleaning blenders and soy milk makers, and uncoated ricecookers, as well as developing product series for these hero products. Our S160 ricecooker, one of the brand's latest releases, was awarded as "2020 China HouseholdAppliances Innovation Achievement" for our disruptive steaming technology andunique user experience. We have held the title of "Most Influential Small HomeAppliance Brand" for 12 consecutive years. In terms of sales channels, we have seizedvaluable opportunities for business growth brought by the new economy and livecommerce, and integrated online and offline marketing efforts.In the context of globalization, we will seize more opportunities in marketupgrade, promote digital marketing, adhere to our user-centered and demand-orientedvalues, tune to new habits and needs of younger customers, take the leading role in theindustry, and achieve high-quality growth.We encourage our employees to lead a healthy lifestyle and work happily. Weplan to build a young talent team full of youthful vitality and offer them a careerplatform with infinite possibilities. We respect every employee's dream and effort. We
have been committed to public welfare undertakings for more than ten years. Wecreated Joyoung Hope Fund as part of China Youth Development Foundation's ProjectHope program, and donated over RMB 50 million to it. We have built 1,084 JoyoungHope Kitchens serving over 2.6 million citizens in 222 counties across 27 provincesin China, leaving footprints of love and kindness wherever we went. 2021 is thebeginning of our second decade dedicated to philanthropic initiatives. We plan todonate RMB 50 million to public welfare in the next 10 years. I myself will also makea personal donation of RMB 50 million to Joyoung Charity Foundation, which wasestablished not long ago, to facilitate our rural kitchen project and spread our warmthand love to those in need.In the early days of the COVID-19 pandemic, we worked together with othersectors of society and donated disinfectant supplies, home appliances, and essentialsupplies to frontline health care workers. We resumed work and production in anorderly manner while ensuring our employees' safety and health, so as to helpmaintain social stability. Our performance in fulfilling responsibilities has been wellrecognized by the public.In the future, we will continue to focus on product innovation and customerhealth and stay true to our original aspiration of promoting a healthy lifestyle. We willkeep pursuing sustainable business development and working with our partners whoshare the same purpose of advocating high-quality, healthy diets to build ahealth-conscious national brand.
Chairman of the Board of Directors
Wang Xuning
About UsCompany Profile
Joyoung Co., Ltd. is a company engaged in R&D, production and sales of homeappliance products. Formerly known as Shandong Jiuyang Home Appliances Co., Ltd.founded in 1994, we were incorporated in July 2002 and went public at the ShenzhenStock Exchange on May 28, 2008 (002242.SZ).
As a leading home appliance brand in China, we are devoted to innovation andhealth advocacy through R&D, production and sales of home appliances. Ourproducts are sold in over 30 provinces, cities, and autonomous regions in China, aswell as more than 20 foreign countries and regions, including Japan, the United States,Singapore, Indonesia, and Thailand.
We are mainly engaged in independent R&D, design, sales and proprietary brandoperation. We have developed a series of home appliances that facilitate healthy diets,including soy milk makers, juicers, food processors, noodle makers, rice cookers,pressure cookers, as well as home appliances that support a high-quality lifestyle suchas mini vacuums, electric mops, and steam mops. We have established multipleproduction and R&D bases in Jinan, Hangzhou and other places, forming across-regional customized management structure.? Vision
We aspire to become a leading brand of high-quality home appliances featuringinnovation and a healthy lifestyle.? Mission
We are committed to offering products that enable global consumers to enjoy ahealthy and happy life. Our quality home appliances make home a better place.? Values
People, teamwork, responsibility, and health? Outlook on life
Work with passion and joy, live a happy and healthy life
Honors & Awards
? In March 2020, Joyoung won 11 Red Dot Design Awards and 16 iF DesignAwards.? Joyoung was named the Most Influential Home Appliance Producer of theYear at the 16th China Household Appliances Innovation Award Ceremony in 2020,where Joyoung's F30S-S160 rice cooker was awarded as a Product InnovationAchievement.? In 2020, Joyoung won the 11th Tianma Award for Investor Relations (IR) ofChinese Listed Companies, the Best Board of Directors in IR Management, and theBest New Media Operations Award issued by Securities Times.? Joyoung was listed by Zhaopin as one of China's Best Employers 2020.? Joyoung was listed by 51job as one of Chinese College Students' FavoriteEmployers 2020.? In 2020, Joyoung's Hope Kitchen project was listed as one of the Top 50Outstanding Projects selected by the Poverty Alleviation Office of the State Council.? In 2020, Joyoung was awarded Remarkable Contributor to Hubei Province'sCOVID-19 Prevention and Control and Role Model Company in COVID-19Prevention.
Corporate GovernanceWe adhere to our vision of "becoming a respectable national brand representinginnovation and a healthy lifestyle". We make constant efforts to improve corporategovernance, internal control, and investor relations to lay a solid foundation forsustainable development.Governance Structure
We strictly abide by the Company Law of the People's Republic of China, theSecurities Law of the People's Republic of China, the Guidelines on Governance forListed Companies and other relevant laws and regulations, and has accordingly set upour General Meeting of Shareholders, Board of Directors (as well as subordinatecommittees), Board of Supervisors, and management structure. Based on ourconditions and regulatory requirements, we have created a multi-level operation andmanagement system that covers all of our operations based on the Articles ofAssociation, with the purpose of promoting long-term optimization of the governancestructure and protecting the interests of the company and our shareholders.General Meeting of Shareholders
We strictly abide by the Articles of Association, the Rules of Procedures for theGeneral Meeting of Shareholders and the Code of Conduct for ControllingShareholders and Actual Controllers in terms of the convening of general meetingsand relevant voting procedures. We treat all shareholders equally and guarantees thatshareholders can fully exercise their rights. During the reporting period, we held twogeneral meetings of shareholders.Board of Directors (BOD)
We convene BOD meetings and perform relevant voting procedures strictly in
line with the Articles of Association, the Rules of Procedures for the Board ofDirectors, and the Code of Conduct for Independent Directors, as well as guidance bythe General Meeting of Shareholders. All of our directors perform their duty diligentlyin accordance with relevant regulations, and earnestly attend BOD meetings and thegeneral meeting of shareholders.Our BOD consists of four directors and three independent directors, includingthree female directors (43%). Our directors have abundant experience in variousindustries such as law, finance, management, and marketing, which facilitates ourall-round development. The Audit Committee, Remuneration and AppraisalCommittee, Strategy Committee and Nomination Committee set up under BODperformed all duties diligently during the reporting period.Board of Supervisors
Our Board of Supervisors is elected in accordance with the Company Law, theArticles of Association, and the Rules of Procedures for the Board of Supervisors. TheBoard of Supervisors consists of three supervisors, who supervise the duty-relatedacts of the directors and senior management in accordance with the Rules ofProcedures for the Board of Supervisors.The Board of Supervisors' responsibilities include: proposing to remove fromoffice any directors or senior managers who are in violation of laws, administrativeregulations, Articles of Association, or resolutions made at the general meeting ofshareholders; conducting a general investigation in the event of any abnormality inour operations; when necessary, hiring an accounting firm or a law firm or otherprofessional institutions for assistance. The supervisors diligently perform their dutiesand honestly and dutifully supervise our financial status and the performance of dutyby the BOD and senior management in terms of legality and compliance, to safeguardthe legitimate interests of the company and our shareholders.
Internal ControlWe introduced our Internal Audit Policy and set up sound internal departmentson the basis of our business characteristics and internal control requirements. Basedon various internal policies, we have clearly defined the objectives, responsibilitiesand authorities of each internal department and position, and establishedcorresponding authorization, inspection and accountability policies, so as to ensurecounterbalance and mutual supervision among departments and positions. We haveformulated a complete set of management and operating procedures and systemstandards and created an IT operating support system covering management andindustrialization for key control points in business processes. We are able to performfull control over our operations using multiple systems, including PLM, PTS, ISP,CRM, and Collaborative Product Commerce.We set up the Internal Audit Department under the Audit Committee to reviewand evaluate the completeness, rationality and effectiveness of the internal controlsystem in internal departments and holding subsidiaries. In 2020, we evaluated andmonitored our internal control effort, monitored, reviewed, analyzed, and evaluatedthe formulation and implementation of our internal control regulations and procedures,and put forward suggestions for rectification and improvement. We performed regularaudits on internal control at each business unit and prepared audit reports, put forwardsuggestions and advice for improvement, and followed up on the rectificationprogress.
Protection of Shareholders' and Investors' InterestsWe maintain close communication with our shareholders, and keep track ofshareholders' expectations and requirements on the company, so as to guarantee thelegitimacy and effectiveness of corporate decision-making. We value opinions fromsmall and medium investors as well as foreign institutional investors, and activelyadopts useful suggestions in day-to-day operations, to better protect small andmedium investors' interests. We conduct multi-dimensional communication with
investors through the Shenzhen Stock Exchange's IRM platform, p5w.net (an investorrelations management platform), online and physical analyst workshops, investors'field research, reverse roadshows for institutional investors, etc. We discloseinformation such as company news and announcements in a timely manner throughmedia designated by the China Securities Regulatory Commission and major financialmedia both on a regular and irregular basis, and have set up a multi-level,multi-dimensional investor relations management system to enable smooth andefficient communication between the company and the public (including investors).We get included in indexes such as the MSCI (Morgan Stanley CapitalInternational) China A Index and FTSE Global China A Inclusion Index. We activelyrespond to the capital market's expectations and concerns on our ESG performance.We were rated BBB in the MSCI ESG ratings in November 2020, and was wellrecognized by ESG investors in the capital market.Business EthicsWe espouse a "culture of sunshine" in company operations and management,which upholds honesty and integrity. Our business codes consist of major relationcodes, such as operating codes, management and control codes, and dealer andsupplier management codes, employee performance standards, and employee code ofconduct. By continuously improving the code of ethics, trust mechanisms, andemployee management, we maintain high standards of business ethics, and encourageour partners to join such efforts. We have formulated a series of documents, includingthe Accountability Policy, the Anti-fraud Policy, the Audit and Monitoring Policy, thePolicy on Management of Emotional Connection with Clients, the Complaint andFeedback Policy, the Reward and Punishment Policy and the Rules on OtherImmediate Rewards and Punishment for Violations of Regulations and Disciplines, toprevent moral hazards in company operation and management, and enhance themonitoring and management of our business behaviors.In terms of business activities, we sign a Corporate Integrity Agreement with
each of our suppliers and distributors, setting out the code of conduct that all partiesshould abide by in their business activities. We have expressly specified how to file acomplaint to the Audit and Monitoring Department, as well as the economic and legalliabilities as a result of violations. Our suppliers shall make commitments to guaranteeperformance of contract and an open and transparent business environment. In themanagement of emotional connections with the clients, we have clearly defined theacceptable types of gifts and entertainment offered by the clients, so as to maintaincompany integrity and decent business relations.As Internet technologies and smart home appliances find wide application, wepay significant attention to information and data security, especially consumer privacyprotection. We regularly update our Privacy Policy on our official website. Each user'sprivate information will be kept strictly confidential, and will not be shared with anythird party without the user's consent. In terms of information security, we havecreated a strict information security policy to control use of computers and networks,document storage and retention, and data input and output. We have also formulatedrelevant documents, such as the Information System User Rights Policy andComputer Terminal Security Policy, to support the authorization mechanism andhandle information security risks while keeping business and systems runningsmoothly.In order to implement effective monitoring of business activities, we have set upour own complaint and feedback platform and WeChat official account for customersto file complaints and offer suggestions. The Audit and Monitoring Department is incharge of complaint and feedback management and guarantees that customercomplaints and feedback are properly handled in a confidential, objective, thorough,and timely manner. We regularly carry out training sessions on business ethics. In our"Star Plan" orientation program for new employees, a special course named "BusinessEthics and Sunshine-style Management" will teach new employees about our "cultureof sunshine" and ethical bottom lines. Through case analysis and scenario-based Q&Asessions, new employees could develop a thorough understanding of business ethics.Every new employee will sign a letter of commitment on integrity and self-discipline.
I．Home Appliances for High-quality Life
As an industry leader, we have been focusing on appliances for healthy eating for27 years since 1994, and enjoy a high brand reputation. With an upgrade of ourbusiness and branding strategy, we have transformed from a manufacturer of soy milkmakers to a provider of a wide range of home appliances promoting a high-qualitylifestyle. Through independent R&D and ongoing innovation, we aim to make it easy,convenient, and appealing to lead a healthy lifestyle for customers. With lightweight,stylish, intelligent and convenient products offering a perfect combination of tools andingredients, we help customers enjoy healthy diets with optimal nutrition effortlessly.
1.Product Innovation
Product competitiveness depends on three factors: technology, design, and supply.Entering a new market where customer demand is high is crucial for a company'slong-term growth, which requires an effective combination of technology, design andcraftsmanship. Innovation is embedded in our DNA. We have attached greatimportance to R&D and technological achievements since it was incorporated. Wehave created a three-tier R&D system to meet customer demand for home appliancesfacilitating quality lifestyles. We remain responsive to the evolving needs of themarket and keeps abreast of industry frontiers. In 2020, we beefed up investment inR&D of innovative technologies and creating hero products, and improved our R&Dsystem and policies and hired top talents, to drive technological advancement andinnovation. In 2020, we invested RMB 345,841,900 in R&D (up 4.68% YoY),accounting for 3.08% of the total revenue.
Joyoung's Three-tier R&D System
Focusing on product innovation and customer health, we made multiplebreakthroughs in R&D of home appliances promoting healthy and high-quality lifewhile pushing for research in the "big health industry" in an effort to explore newhealthy lifestyles in 2020. We have been working with the Institute of MaterialsScience, Chinese Academy of Sciences as well as top companies such as Huawei onhealthy materials and smart products. We plan to solve customer pain points inpromising fields and bring new growth drivers to us.
Joyoung's Product R&D Achievements in 2020
| Trailblazing Products | ||
| High-speed Blender/Food Processor L18-YJ08 The industry's first low-noise, variable-frequency blender | Horizontal Noodle Machine N3 The industry's first horizontal noodle machine | K1S The industry's first self-cleaning soy milk maker |
| Cordless Juicer Z2-Vmini The industry's first cordless portable juicer | Steam Rice Cooker S3 The industry's first steam rice cooker with uncoated inner pot | Steam Air Fryer SF5 Steam-frying, a healthier alternative to stir-frying |
| Disruptive Products | ||
| Self-cleaning Low-noise Smart Blender Y88 The industry's first self-cleaning, low-noise blender | Vertical Noodle Machine L6 The industry's first smart vertical noodle machine | K780 Cup-switching-enabled, multifunctional, self-cleaning soy milk maker |
| Cordless Juicer JYL-C902D The industry's first cordless portable juicer | Steam Rice Cooker S160/S360 The industry's first uncoated steam rice cooker with a glass body | Sandwich Maker Breakfast solution for certain scenarios |
| Promising Products | ||
| Low-noise High-speed Blender L18-Y33D Self-cleaning low-noise Smart Blender Y1 | Auto-water-adding Noodle Maker L20 The industry's first smart weighing and water-adding noodle maker | D110 A1 solo D561 Mini Soy Milk Maker (for one person) |
| Vertical Juicer JYZ-V5plus Horizontal Juicer JYZ-E22C | Frame-shaped Steam Rice Cooker S501 Uncoated and transparent steam rice cooker | |
After the brand “Shark” entered the Chinese market, it has quickly become theNo. 1 brand (by market share) offering steam mops and electric mops on majore-commerce platforms such as Tmall and JD.com. Currently, Shark's steam mops,which enable thorough steam disinfection and sterilization, are popular amongcustomers who need deep home cleaning. In addition, we provide cordless andauto-clean electric mops for customers who opt for lightweight and cordless mops to
meet differentiated needs of deep cleaning. We are also working on developinglightweight and cordless vacuum cleaners. We will tap into the synergy with Shark insales channel marketing, R&D, customer insight, etc., to bring more variety into ourproduct portfolio.We have been encouraging technological innovation and doubling down onintellectual property protection, so as to lay a solid foundation for creating moreproducts with core advantages. We have built a professional, efficient and outstandingintellectual property team, which is dedicated to enhancing our operations securitythrough continuous improvement of patent risk control. The team regularly conductspatent monitoring, so as to facilitate patent map analysis for various product lines. Wehave been working on systematizing its trademark management and building up aniron-clad trademark protection system. Today, we are doing great in protecting ourpatents for core products such as soy milk makers, blenders and cookers. We will keepwidening and deepening our "patent moat".
Joyoung Patent Data 2020
| New Patent Applications | 2,227 |
| ——Inventions | 307 |
| ——Utility models | 1,710 |
| ——Designs | 210 |
| Total Patents Obtained | 8,378 |
| ——Inventions | 427 |
| ——Utility models | 6,846 |
| ——Designs | 1,105 |
In August 2020, Joyoung Kitchen Appliances Provincial Key EnterpriseResearch Institute was listed as one of Zhejiang Province's Science and TechnologyProjects.
2.Quality First
Product quality is the core part of customers' rights and interests and thelifeblood of an enterprise. We pin our faith on a strategic transformation toward abrand of high-quality home appliances. We have established the Product TrackingSystem (PTS) which can, by dint of barcodes, track and manage the entire businesschain, including supplier portals, process quality control, logistics control, distributorpurchase orders, sales and inventory, and after-sales management.
PTS Functions
We have formulated a series of policy documents such as the Defective ProductManagement Policy, the Routine Product Quality Check and Confirmation Procedure,the Continuous Improvement Procedure, the Supplier Quality Policy and theRequirements on Outsourcing of Food Contact Materials, so as to guarantee productquality. We have set up the basic framework, procedures and methods for safe designs,and formulated design specifications and design history files, in an effort to guaranteeproduct design safety from the very beginning. We have created a qualitymanagement system and a food safety management system, and strictly apply them inthe production and operations processes. As for after-sales management, weproactively collect market feedback through multiple channels and analyze thefeedback information, thus keeping improving our products. Our employees havedeveloped a strong awareness of quality. They strictly follow every procedure andstandard for production, on-site management, quality check, etc. That's how wemaintain our product quality. In 2020, we recorded no product recall caused byproduct safety concerns."Being practical, collaborative, dedicated, and innovative." That is our vision forquality control. We encourage every employee to take part in system management,
process control, and quality improvement. Since 2011, we have held 10 qualitycontrol improvement events in a row. Over the past decade, we have improved anaverage of nearly 100 items every year. We did this only internally at first, but now,our suppliers are also part of the annual event.
2020 Quality Management Performance
We are committed to not only product quality, but also life quality of ourconsumers. We have set up the Nutrition Research Department for product research,recipe development, and nutrition marketing. We have inked long-term partnershipswith relevant well-known universities such as Jiangnan University, China AgriculturalUniversity, and Zhejiang Gongshang University to delve into nutrition and health,cooking theories and standard formulation, so as to provide theoretical support for ourproduct R&D and innovation, thus offering consumers a variety of cooking solutions.The Nutrition Research Department has hired six certified/senior nutritionists, ledover 160 cooking research projects related to kitchen appliances such as soy milkmakers, rice cookers and blenders, developed over 2,000 recipes, and obtained over30 patents.We have been active in attending external academic conferences and provincialand municipal outstanding QC team selection activities. We have trained a lot ofquality control talents for ourselves and our suppliers through learning sessions andcompetitions. In 2020, our project "Reduction of Transistor Defect Rate in MagneticFurnace LC7" won the second prize of Zhejiang Province's QC Achievement Contest,and the second prize of the 6th "Quality of China" Enterprise Case Contest; three ofour QC teams, namely, Special Agent, Trailblazer, and Vanguard each won the title of2020 Hangzhou Excellent QC Team.
| State certified laboratory |
| We have built a state-level home appliance testing laboratory, which has received a series of certificates, such as CNAS National Accredited Laboratory, Laboratory Registered with China Energy Label Management Center, UL/SGS/TUV/ITS/KTL Laboratory, and Public Testing Resource Development Laboratory. As an effective guarantee for the quality of our own products, the testing laboratory also provides professional and reliable testing and inspection services on material safety, electromagnetic compatibility, product performance, reliability, chemistry, food safety and nutrition for the home appliance industry. |
3.Better User Experience
We have been focusing on building an all-channel, user experience-centered, andefficient customer service system, offering flexible customer services, and promotingservice digitalization, so as to meet customers' diverse needs, build a transparent "bigservice" system, and improve the brand reputation.We have been improving our communication with consumers. Our customerservice call center has more than 60 professional agents, including product expertsand agents for VIP customers. We also have AI-powered customer service robots. Wekeep training the robots with regularly updated service knowledge database. So far,our customer service robots have provided over 1.32 million services. Customers mayalso directly contact our after-sales outlets through our WeChat mini program, whichhas so far provided about 1.14 million self-service queries. We have posted over 3.4million customer engagements through all channels. Among them, 80% are
self-service engagements, which means we have a convenient and efficient inquiryresponse system.We stick to the principle of "Sunshine Service". We never sidestep everynegative review. Instead, we thrive on negative feedback and take it as our motivationfor developing better products. We have set up multiple online and offline channelsfor consumers to seek help, make suggestions, and file complaints. We have beenstreamlining our order dispatch management and complaint management as part ofour efforts to build a proactive service management system. We have introduced a"First Call Accountability" complaint handling system. Whenever the CustomerService Department receives a complaint via any channel, it will check the content ofthe complaint and forward it to the customer service manager and the responsibledepartment within 1 hour (during working hours), which will then handle thecompliant within 1 hour and notify the complainant of a handling result within 24hours. As for any complaint that cannot be handled in a timely manner, we willpromptly inform the complainant and apologize for our delay. We will follow up thecompliant until it is resolved. Throughout the process, we pay full attention to howconsumers feel and do our best to minimize any negative impacts.Service digitalization is part of our transformation. We have integrated assortedintelligent service features into our customer service platform, which increases ourengagements with customers and enables real-time sharing of information such asorder dispatch, response, settlement, and follow-up, thus forming a visualmanagement dashboard that displays service quality, efficiency, early warning, andreview. With service digitalization, we have seen a 50% increase in our customerservice response and settlement efficiency.As of the end of 2020, we have had over 2,000 after-sales service outlets, over300 repair centers, and more than 3,000 star-rated service workers across China,forming a nation-wide and all-round after-sales service system. Our after-sales servicesystem covers basic warranty policies, five exemptions/safety checks, trade-inservices, and exclusive SKY services, as we are seeking to meet consumers' diverseneeds and provide the best after-sales experience in the industry. We also regularly
carry out various offline activities as part of our consistent policy to serve ourcustomers before they ask and reward our loyal customers.
Joyoung After-sales Service Policy
Shark (China) Service Policy
Exclusive SKY Services
| Series | Basic Benefits | Extra Value | |
| S-series rice cookers | Free shipping for in-warranty repair | All models | Lifetime free cleaning |
| K-series soy milk makers | All models | Lifetime free blade replacement | |
| Y-series blenders | YJ08/Y88/Y966.Y1/Y1Pro | Lifetime free motor replacement | |
| Y20/YZ01/Y60/Y920/Y930 | 10-year free motor replacement | ||
| Models indicated on VIP card | One free motor replacement (no time limit) | ||
In 2020, our product sales hit a new high. We also pay heed to how consumerslook at our brand. We have introduced the Kepler Observatory customer feedbacksystem to collect valid customer feedback on products, purchases, and services. In2020, our customer experience improved by 26.24% YoY, and our overall positivefeedback rate increased to 97.67%.
Joyoung Industrial Tourism
Relying on a complete set of infrastructure facilities at the Joyoung CreativeIndustrial Park, we have built a Zhejiang demonstration base for industrial tourismthat integrates sightseeing, learning, shopping and other functions. We provide variousindustrial tourism sessions and multi-functional tourism products, includingsightseeing, interaction, research practice, shopping, and customized team building,for different customer groups. Visitors to the Joyoung Creative Industrial Park maylearn about our brand culture, the way soybeans are made into soy milk, kitchenappliances and knowledge on health and nutrition. In 2020, the Joyoung CreativeIndustrial Park received a total of 18,000 visits while maintaining effective pandemiccontrol.
Our industrial tourism business has won a series of awards such as Hangzhou
Youth Science Education Base, Young Pioneers' Labor Education Base, Study CampBase for Hangzhou Primary and Middle Schools, Quality Education Practice Base forHangzhou Primary and Middle Schools, International Tourism Resort for SocialResources, and Hangzhou Best Metropolitan Attraction of the Year.
II、Building a Sound Ecosystem with PartnersIn order to build a sustainable ecosystem of "healthy and smart kitchen", we havebeen seeking partners that share our values. We are working with our partners alongthe industry value chain (R&D, products, supply and sales) to create a sound businessecosystem, thus achieving mutual growth and win-win outcomes.
1.Promoting Supplier Growth
Supply-chain partners are very important to us. We have a wide range ofsuppliers, including original design manufacturers (ODM), original equipmentmanufacturers (OEM) and component suppliers, which are mainly located in theYangtze River Delta region, the Bohai Bay Rim (where Jinan in Shandong is thecenter) and the Pearl River Delta region. We seize market opportunities andimplement the strategy of "Three Stars and Two Capabilities" to improve our entiremanufacturing process and performance for higher supply capacity and bettercoordination with suppliers, so as to cater to the ever-changing customer demands.Through cooperation with Tmall in 2018, we digitalized our supply chain.
We have introduced the Procurement Management Policy, which requires ournew suppliers to pass ISO 9001 or IATF 16949 quality management certification. Toguarantee safety and sound environmental management, suppliers are required tocomply with laws and regulations on fire safety, environmental impact assessment,pollution discharge, employee health and safety, etc. We monitor suppliers' productquality, process quality, and system quality. In the event of any defect, we urgerelevant supplier to take remedial measures.
We conduct quality check and performance testing on suppliers every year. InApril 2020, we carried out quality check on 37 suppliers, including 11 componentsuppliers. Over 89% of them receive a three-star or better rating. Our suppliersperformed well in terms of the Three Firewalls, China Compulsory Certification(CCC), and New Product Introduction (NPI). In 2020, we launched lean production
certification on 27 suppliers and our Jinan Factory in terms of mechanism, qualityassurance, on-site improvement, and reform and innovation. More than 70% of thesuppliers passed the certification, and our Jinan factory obtained five-star certificate.In addition to helping our suppliers improve their product quality andmanufacturing management, we give them a hand when they are in the throes ofoperations. After the Spring Festival 2020, COVID-19 began to bite, as somesuppliers were nagged by shortage of workers, logistics restriction, and growing laborand raw material costs. In this context, we provided our suppliers with resources andpreferential terms, and recommended them our partner bank where they could applyfor loans, so as to help them get over the hump.
| Case: Supply Chain Live Streaming Workshop |
| The Supply Chain Live Streaming Workshop is a live streaming platform we have developed to empower our suppliers and impart supply chain knowledge to our employees. The workshop aims to promote supply chain integration. On April 29, 2020, we held the first live streaming session to interpret supplier quality management systems, which involved a total of 206 participants, including our procurement managers and quality engineers and 92 representatives from 57 suppliers. During the session, we offered insights into several key points, including the scope of supplier certification, APQP process, and MAS. We fielded many questions raised by supplier representatives. The session was well received by suppliers. We also held a series of special live streaming events focusing on POP modules, R&D management, general management, cultural modules, and lean production modules in 2020. |
2.Expanding Sales Channels
We have introduced a series of distributor rating policies, including the VIPDistributor Rating Policy, the Distributor Rating Policy, and the Color-based (Red,Yellow and Green) Distributor Rating Policy, to classify our distributors into fourlevels (Class A, B, C, and D), and VIP distributors into four groups (Diamond, Gem,Jade, and Rising Star). We encourage our distributors to put forward advice on ourmarketing and management, thus enhancing our brand reputation.To expand our sales channels, we have been improving our existing tens ofthousands of physical points of sale across China and exploring new retail models. Wehave opened specialty stores in hundreds of shopping malls. Our online businesscontinues to grow, which keeps sharpening our e-tail edge. We have also ventured intonew retail and live streaming fields, in an effort to create a one-stop all-category,visualized, and interactive shopping scenario for consumers. Our new attempts haveachieved many intelligent features such as data monitoring and sharing, membermanagement, traffic attraction, QR code payment and shipment. We have gained morethan 20 million followers from multiple channels, including WeChat, Weibo, Douyin,Kuaishou, points of sale, and after-sales outlets.As we are pooling more resources to target younger customers, we have come upwith a "brick and click" approach: Consumers can watch live streaming events onlineand try the product offline. Relying on digital operations, we have seizedopportunities brought by the popularity of video sharing and live streaming, andcreated an interactive scenario-based business model comprised of sales channels,products, brand influence and users, forming a three-dimensional and multi-level salesnetwork for precision marketing. We channel most of our resources to mainstreamproducts to achieve high-quality growth and expand brand influence.During the COVID-19 pandemic, we helped our distributors and productpromoters embrace a new sales model: live commerce. We taught them how to uselive streaming devices and how to use the novel means to boost their product sales. In2020, more than 150,000 product promoters participated in over 10,000 on-site live
streaming events.
Smart stores
There is a natural barrier between traditional e-commerce channels and physicalbrand stores, resulting in multiple problems, including low inventory turnover andvarying customer experience. Smart stores are a right solution to these pain points. Interms of logistics and product distribution, we ship products from the nearest store tocustomers, so as to improve inventory efficiency in physical stores, and minimize thephysical distance between the place of origin and consumers, thus significantlyimproving consumer experience. Moreover, such mechanism could mitigate theshipment pressure of e-commerce warehouses in big sales seasons. In this way, onlineorders are distributed to stores across China for delivery, thus facilitating inventorysharing in all channels. Online store and physical store inventories could be shared toguarantee sufficient supply, and promote inventory structure and inventory turnover.
| Case: Smart Stores of New Retail |
| Joyoung Tmall Flagship Store integrates the inventory information flow with the product flow, highlighting a core of "full channels, good shopping experience, and high efficiency." The store allows customers to select a product online and try the product offline, a move that could win customer trust and expand brand influence. We also provide customers with special discounts for purchase at physical stores and the in?store self-pickup service. In this way, we can get closer to consumers and boost footfall. |
| Case: Y3 Blender Becomes Top Seller in Kitchen Appliance Sector upon Debut |
| Y3 Blender was one of Joyoung's key strategic products in 2020. Joyoung tried to convey a brand proposition of "cooking at home" and kept highlighting a feature of "auto clean" through scenario-based marketing. Y3 Blender rocketed to the list of Tmall Hey Box's Class-S new products upon its debut, and one of the RMB-1,000-odd top-selling appliances in Douyin marketing. It was also the best-selling kitchen appliance upon debut in recent year. This was another low-budget marketing success, where Joyoung chalked up 340 million impressions, and reported a GMV of RMB 7.46 million and sales of 5,727 units on the first day of release. |
3.Industry-wide Win-win Strategy
We take win-win partnership as our business growth strategy. In the "Internet +"era, we are seeking business partners with shared values in fields of R&D, products,supply and marketing, etc., so as to achieve a synergistic effect.
| Case: Cooperation in Product Development: Joyoung X Huawei Smart Kitchen - Auto Clean K2S Soy Milk Maker Unveiled |
| At the Huawei Developer Conference held in May 2020, Joyoung and Huawei jointly launched a smart soy milk maker powered by Huawei Harmony OS. The K2S Soy Milk Maker allows users to enjoy smart features such as quick control, quick services and quick recipe customization. With the Harmony OS, the soy milk maker can be connected to all smart kitchen scenarios. It is Joyoung's trailblazing attempt to integrate "smart kitchen appliances" into "smart homes". K2S is a key milestone in Joyoung's technological development, from pulverization, heating, boiling, fine grinding, and extraction to blending, dry soybean grinding, filtering-free, smart control, and auto clean. Totally freeing users' hands, K2S ushers in a new fashion for kitchen life. |
| Case: Cooperation in Business Environment Safeguarding: Joyoung Joins Alibaba Anti-Counterfeiting Alliance |
| Joyoung has inked a partnership with Alibaba in intellectual property protection. Joyoung serves as the chairman of the furniture and home appliance group, a member of the advisory committee, and the new observation editor at the Alibaba Anti-Counterfeiting Alliance (AACA). Joyoung and Alibaba have jointly launched a Queqiao anti-counterfeiting project, in which Joyoung provides Alibaba with new counterfeiting clues it has found on the Internet, and Alibaba regularly informs Joyoung of the suspected infringing products it has removed from its platforms. The project aims to promote information exchange and improve anti-counterfeiting efficiency. Joyoung has also cooperated with Alibaba in product identification, special cases, civil litigation, and other relevant fields. Joyoung also actively participates in AACA's public education, training sessions, anti-counterfeiting projects, theoretical and legal research events. In the AACA + Dada Planet Golden Week event, Joyoung for the first time empowered nearly 200 AACA brand owners in intellectual property protection, demonstrating its ongoing effort in business education. |
| Case: Cooperation in Supply Chain: Joyoung and Cainiao Supply Chain Upgrades Strategic Partnership |
| On October 30, 2020, Joyoung and Cainiao Supply Chain announced an upgrade of their strategic partnership. On top of the existing B2C model, they will extend their cooperation to the B2B field. Cainiao will cover the logistics from factories to Cainiao warehouses for Joyoung, solving Joyoung's full-link shipment issues. In addition, Cainiao Supply Chain will also build an integrated and visualized supply chain system that includes online/offline business flow, data flow, logistics and capital flow, a move that could help Joyoung reduce circulation nodes and improve efficiency in warehouse network layout. |
| Case: Cooperation in Procurement: Joyoung Teams up with Sunyur to Launch First Digital Platform for Home Appliance Procurement |
| On December 28, 2019, Joyoung and Beijing Sunyur Network Technology Co., Ltd. announced the launch of Joyoung Yuegou Mall, a platform that allows Joyoung to achieve an online and visualized procurement management, and promote agreement-based procurement. As Joyoung's first SaaS system, Joyoung Yuegou Mall enables Joyoung to manage purchasers, consumers and suppliers in real time and bring demand, orders and other data online. The digitization of the full procurement chain, which covers purchase requisition, ordering, shipment and settlement, proves to be a boon for Joyoung to create greater value, cut cost and improve efficiency. Connected to 25 systems such as Oracle EBS, self-developed OA system, and WMS system, Joyoung Yuegou Mall has realized the devolution of bargaining power to suppliers and distributors. As a trailblazer in the digital procurement of small home appliances, Joyoung Yuegou Mall is expected to give a strong boost to the industry development. |
III、Poverty Alleviation Targets Nutrition and Health
Charity has been part of our values from the word go. During our development,we always remain true to our original aspiration to contribute to poverty alleviation.We have launched several philanthropic projects such as Hope Kitchen and studentassistance.
1.Joyoung Hope Kitchen
Over the past decade, we have leveraged our strengths and established 1,084Joyoung Hope Kitchens in 222 counties in 27 provinces and autonomous regionsacross China. Every day, more than 500,000 students can enjoy the food cooked fromJoyoung Hope Kitchens. The Hope Kitchen project has so far benefited more than 2.6million people.
We have introduced the "Hope Kitchen + Nutrition Education" model to improvestudents' dining environment, enhance students' awareness of nutrition and help themdevelop good eating habits. According to statistical data, most schools that haveintroduced Joyoung Hope Kitchens have set up a food safety department, and 97% ofthem have improved meal preparation efficiency. In addition, the average mealpreparation time has been shortened by nearly 30 minutes, the kitchen utensils havebeen disinfected by nine times per week, the average number of students eating atschool has increased by 34%, the per capita energy cost of student meals has droppedby 18%, and the malnutrition rate in students has fallen by 14.92%. From a sample ofgrade-5 students, the average height growth in them reached 1.43 cm, where thefigure is 1.25 cm for boys and 1.57 cm for girls. Comparing with the baseline data in2010, the average height growth in grade-5 students in schools that have introducedJoyoung Hope Kitchens reached 4.68 cm, where the figure is 5.56 cm for boys and
3.92 cm for girls. Joyoung Hope Kitchen has created a social value of nearly RMB227 million, and brought a social return on investment (SROI) of 233%.
In 2020, Joyoung Hope Kitchen was listed as one of the Top 50 Outstanding
Projects and included in the Yearbook 2020: China's Poverty Alleviation Efforts bythe Poverty Alleviation Office of the State Council. The Joyoung Hope Kitchenproject team has been active in pairing poverty alleviation in eastern and westernregions, and it has formed a targeted poverty alleviation model in collaboration withthe Poverty Alleviation Office. In 2020, we successively launched a special povertyalleviation campaign themed "Build, Improve and Standardize"
in China'spoverty-stricken regions such as Weiyuan in Gansu, Qiandongnan in Guizhou,Pingjiang and Sangzhi in Hunan, and Liangshan in Sichuan. The campaign, focusingon three aspects: equipment, management, and personnel, aimed to ensure localstudents could eat healthy and nutritious meals at school.
Top 50 Outstanding Projects on TargetedPoverty Alleviation by Chinese Companies
"Build" refers to building kitchens in rural schools in poverty-stricken regions; "Improve" refers toimproving the meal preparation capacity and efficiency; "Standardize" refers to standardizing schoolkitchen management by organizing relevant training sessions.
Joyoung Hope Kitchen has become an influential charity brand both internallyand externally. We recruit volunteers from our employees and the public who arekind-hearted and care about public welfare. Joyoung Hope Kitchen volunteers aregood teachers of nutrition education for needy children. Joyoung Hope Kitchen notonly brings direct benefits to children, but also gives volunteers and the public anopportunity to learn about the current status of rural education and life and do whatthey can to help others while drawing life inspiration.
| Kitchen | Invest RMB 30,000-100,000 in building a Hope Kitchen that is equipped with modern utensils and meets the national hygiene standards |
| Form a standardized kitchen and a duplicable show kitchen | |
| Nutrition Education | Set up a nutrition education class to raise students' awareness of nutrition and cooking |
| Organize nutrition education camps to help students develop good eating habits | |
| Develop nutrition education textbooks based on the characteristics of students of different ages |
Joyoung Hope Kitchen proves to an impetus for the Nutrition ImprovementProgram for Rural Students under Compulsory Education and one of the basic andsustainable ways for poverty alleviation among students. With the poverty alleviationdrive emerging triumphant and the rural revitalization strategy in full swing, weestablished the Zhejiang Joyoung Charity Foundation at the Zhejiang ProvincialDepartment of Civil Affairs in 2020, in a sign of our ongoing support for ruraleducation, rural health and other related areas in rural revitalization. In the nextdecade, we will continue to donate RMB 50 million to the foundation. Plus JoyoungChairman Wang Xuning's personal donation of RMB 50 million, the foundation willhave at least RMB 100 million available for our major rural kitchen projects. JoyoungCharity Foundation is turning a new page.
| Case: Joyoung Hope Kitchen Musters up Multi-party Support for Needy Students in Sangzhi |
| Sangzhi in Hunan Province is a state-level poverty-stricken county. The State Intellectual Property Office has been working on poverty alleviation in Sangzhi for 22 consecutive years, mainly in terms of education. In 2016, recommended by the State Intellectual Property Office, the Joyoung Hope Kitchen project team threw itself into the nutrition improvement plan for rural students under compulsory education in Sangzhi County. From 2016 to 2020, the team paid several visits to local schools for field research, and mapped out kitchen renovation and construction plans based on the actual conditions of these schools. At last, we managed to build 34 high-quality Joyoung Hope Kitchens in the county, extending our targeted poverty alleviation efforts from education support to nutrition improvement. With the hardware project bearing fruit, the Sangzhi County Education Bureau struck while the iron was hot and put together an expert team to prepare the Detailed Healthy Recipe for Sangzhi Primary and Middle School Students. Based on the Dietary Reference Intakes and the Dietary Guidelines for Chinese Residents, as well as local eating habits, market supply, economic conditions, etc., the recipe underscored a reasonable balance of whole grains and fine grains as well as meat and vegetable ingredients. The recipe was then applied to all other schools in the county. The Sangzhi County Education Bureau also formulated corresponding detailed recipe boards and standardized the school canteen cost accounting table based on the Hunan Province Primary and Middle School Canteen Management Regulations, and stipulated that all the state subsidies for the nutrition improvement plan and 75% of the living expenses voluntarily paid by students must be spent on food purchase, and the spending details must be disclosed to students, parents, and the public. The move turned out to be another guarantee for students' healthy growth. \ |
| Case: Nutrition Education Workshop 2.0 | |||
2.Contribution to Poverty Alleviation
Consumption-based poverty alleviation
We have introduced a poverty alleviation model of "purchase as donation".During the Women's Day and the Mid-Autumn Festival, we purchase agricultural
products from poverty-stricken districts and counties, and regions covered by theMountain-sea Cooperation Project.
We launch agricultural products shopping events, such as Charity Fair andNew-year Shopping for Poverty Alleviation, from time to time among our employeesand partners, as part of our poverty alleviation efforts.
Education-based poverty alleviation
In 2008, we set up an RMB 20 million education charity fund under the CharityFederation of Jinan Huaiyin District. The fund has been donating its annual interest onprincipal to the Charity Federation of Jinan Huaiyin District since then. So far, it hasdonated nearly RMB 15 million.
3.Contribution to COVID-19 Battle
When the COVID-19 pandemic broke out at the beginning of 2020, weimmediately swung into action and donated four batches of logistics-relatedappliances worth about RMB 5 million as our support for the front-line medicalpersonnel.
On January 26, 2020, the second day of the Lunar New Year, Wuhan imposed atotal lockdown, sending local medical and living supplies into short supply. Wequickly donated water purifiers, boilers, Shark steam sterilizing mops and otherresources to the Wuhan Red Cross.
In order to support hardworking medical personnel in Wuhan, on February 7,through Shandong Provincial Red Cross, we donated 600 insulated tumblers andportable boilers to Shandong's first and second batches of medical workers headingfor Huanggang, Hubei. We also donated 2,400 bags of instant soy milk powders toseveral local hospitals, as well as 2,000 bags of instant oatmeal to local medical staffthrough Alibaba Foundation, as our gratitude for their kindness and devotion.
In addition to home appliances, we also donated 1,000 ICU respirator hoodsworth RMB 120,000 to the Second Affiliated Hospital, Zhejiang University School ofMedicine. These hoods were used for COVID-19 prevention and control in Wuhan,especially for self-protection for medical workers treating critically ill patients.Our anti-pandemic efforts were highly recognized. The anti-pandemic commandcenters at Hubei Province, Wuhan, Huanggang, Jingzhou sent us their letters ofgratitude. We were also honored as a Remarkable Contributor to Hubei Province'sCOVID-19 Prevention and a Control and Role Model Company in COVID-19Prevention.
IV、Young and Enterprising Joyoung Employees"People, teamwork, responsibility, and health" are four keywords in ourcorporate culture. We have created an open and fair career development platform forour employees, and have constantly been improving our talent training system. Weprovide employees with opportunities to study outside the workplace every year, andattach importance to internal training and promotion. We have built three career paths,as well as an internal competition-based promotion system. We have created acreative working environment, and provide our employees with competitivecompensation and benefits, so as to help them achieve their personal value, work withpassion and joy, and live a happy and healthy life.
1.Welcome to Joyoung
We abide by the Labor Law of the People's Republic of China, the LaborContract Law of the People's Republic of China, the Employment Promotion Law ofthe People's Republic of China, and other relevant laws and regulations. We stick tolegal employment and advocate a diversified, standardized and transparentemployment system. We prohibit discrimination on the grounds of gender, ethnicity,religion or political stance. We sign labor contracts with employees on the basis ofequality, free will and consensus, and specify the legal rights and obligations of boththe employer and employees. We have been expanding our social and campusrecruitment channels. In 2020, we organized a series of recruitment events such as theSpecial Job Fair for Overseas Graduates, to introduce top talents for the fast-growingcompany. As of December 31, 2020, we have had a total of 2,846 employees, and ouremployee structure was as follows:
| Gender | Count | Turnover | |
| Female | 946 | 28.92% | |
| Male | 1,900 | 24.75% |
| Age | Count | Turnover | |
| 29 and below | 1,381 | 31.99% | |
| 30-39 | 1,225 | 20.40% | |
| 40-49 | 198 | 18.18% | |
| 50 and above | 42 | 18.75% |
| Native Place | Count | |
| Mainland China | 2,839 | |
| Hong Kong, Macao or Taiwan | 3 | |
| Overseas | 4 |
| Job Level | Count | Turnover | |
| Junior | 2,424 | 28.39% | |
| Middle management | 344 | 12.74% | |
| Senior management | 78 | 11.69% |
2.Employee Training
We are on the fast track to growth. We are gathering more human resources, andoptimizing the allocation of human resources. We maintain our growth momentum byimproving staff professionalism and allocating posts that stretch every employee.Making best of talentsWe have developed our Talent Supply Chain 2.0. Based on our actual businessneeds, we have mapped out a talent development blueprint for the next one to threeyears. We have reserved key talents as candidates to middle and senior managementand key positions through internal training and external recruitment. We provideemployees with three career paths, namely, technology-oriented, quality-oriented, andpatent-oriented paths. We have built a project manager echelon. We review our talentpool every year, and efficiently apply ability assessment results based on the talentnine-square grid, so as to identify high-potential talents, improve key capabilities, andguarantee the succession of key positions. At the same time, we have been introducingtop talents for our new business, as well as talents with key capabilities and hugepotential, to expand our talent pool for the future.The management team is a vital part of our human resources strategy. We haveformulated a bench plan for succession to each core manager position to avoidlong-term vacancies. We have implemented the "Running Water Plan" for managers,
where they rotate every three to five years to enhance organizational vitality. We arebold in promoting young employees with good performance, in a bid to build abattle-hardened talent team.Training talents in multiple waysWe have our own online knowledge base, lecturer pool, and resource pool, andregularly introduce knowledge from external parties and develop internalmicro-lectures. We review our knowledge base every three months and record everylearning process, so that we can have our finger on the pulse of every employee'sgrowth progress and accurately evaluate how a project is implemented.We have developed our Xiaoyang Academy training platform that offers blendedlearning, mobile learning, game-based learning and informal learning as well asdigital marketing. Designed for our strategic projects, Xiaoyang Academy can provideinnovative, interactive, flexible online learning programs where employees can find itfun and convenient to learn. We have set up a specific training academy for each ofour six fields, namely, Marketing, R&D, Management, Job, HR and Leadership,which are all carried out at Xiaoyang Academy.During the COVID-19 pandemic in 2020, the login rate of Xiaoyang Academyreached over 95%, and the monthly average learning hours per capita was about 8hours. Xiaoyang Academy provided more than 50 special blended learning projects,online learning tasks, etc. Xiaoyang Academy was awarded the Best Digital Operationby YXT.com in 2019, and was listed as one of the Top Corporate Digital BusinessSchools 2019-2020 by CEIBS Business Online.
Innovations at Xiaoyang Academy
| Blended learning | With a combination of online and offline courses, our employees can access concise and interesting illustrated micro-lecture resources and acquire new knowledge in their fragmented time. |
| Mobile learning | We have built a shared community for mobile terminals, as we encourage employees to create their personalized micro-lectures. We regularly hold micro-lecture competitions to make micro-lecture part of our brand culture. We have adopted a progressive incentive system and a point system for payment to create an exclusive mobile learning platform for our employees. |
| Game-based learning | To motivate our employees to study, we have integrated learning and game experience, and turned dreary learning processes into interesting challenges through customized question pools and amusing level-up games. |
| Informal learning | We have introduced a tutor-based training model based on the formulation of tutorial regulations and improvement in tutor training, set up online tutor-based training plans, flexibly arranged position experience, practice, scenario simulation and other sessions, and carried out monthly meetings, to promote employee training and give full play to the effects and advantages of informal learning. |
| Digital marketing | Digital marketing exists throughout the innovative learning programs. We send event notifications, push learning resources, design amusing articles and posters through our corporate account and learning platform to attract learning. |
Training hours per capita
| Case: TRIZ Innovation Training Camp |
| In order to solve R&D challenges and train top lecturers, in 2020, we set up the TRIZ Training Camp for researchers and R&D personnel from various business units. Trainees selected burning problems related to their business and they were split into 23 groups. TRIZ innovative tools were then applied in a standardized way to solve those problems under the guidance of external consultants and internal lecturers. During the program, our lecturers also acquired a lot of experience. We collected over 130 study cases and over 100 patents through the program. We saw breakthroughs in product upgrades, cost reduction, and so on. The numbers of TRIZ level-1, level-2, and level-3 engineers increased to 183 (by 3 times), 32 (by 4 times), and 13 (by 13 times), respectively. In addition, the program cultivated 24 internal lecturers, of which more than 90% were R&D personnel. The program was well received among employees, and became the second popular program among employees following the new employee training program. |
Apart from our employees, we also share our learning resources with oursuppliers and distributors. We customized the training programs to help our partnersgrow together with us, thus promoting collaboration along the industry value chain.
| Case: Practice-based NPI Training for Suppliers |
| In order to improve the new product introduction (NPI) capability of product and component suppliers and the engineering department, and establish a scientific and sound connection between products and projects, we arranged a practice-based NPI training session for 21 representatives from product and component suppliers and 25 Joyoung employees. We invited experienced lecturers to describe NPI practices in a systematic way, and help supplier representatives consolidate the knowledge they had learned through after-class assignments, which could help improve the NPI capability, thus reducing hazards in mass production and complaints over product quality. |
| Case: Training on New Channel Development and Offline Channel Digitalization |
| In December 2020, we invited an expert in new business marketing to give a lecture on the development of new channels and the digital transformation of physical channels for our distributors. Through various business cases, the expert expounded on the transformation of traditional retail channels, marketing innovation and other related knowledge, keeping distributors up to speed on the latest marketing trends. |
3.Care for Employees
We abide by the national laws and regulations. We uphold a philosophy of "workwith passion and joy, live a happy and healthy life", and provide employees withcompetitive compensation and benefits, as well as a safe and comfortable workingenvironment. We protect the legitimate rights and interests of our employees andrespect different opinions.Compensation and benefitsWe set store by the basic rights and interests of every employee, and providethem with endowment insurance, medical insurance, unemployment insurance,work-related injury insurance, maternity insurance and housing provident fund inaccordance with the Social Insurance Law of the People's Republic of China, as wellas commercial insurance, to guarantee that every employee has the benefits theydeserve. We have established a competitive compensation and benefit system. Weprovide our employees with incentives based on company profits and their personalperformance. We give special reward to meritorious backbone employees withoutcompromising fairness. We also provide our employees with perks such ashigh-temperature allowance, cash benefits, dormitories, shuttle buses, annual physicalexamination, special holidays and care services. We offer a subsidy to encourage ouremployees to pursue further study and get professional certificates.
| Compensation system | Skill-based wage, position allowance, assessment-based wage, BU performance bonus, R&D bonus, outstanding sales bonus, company performance bonus, innovation incentives, equity incentives, etc. |
| Benefits | Health: regular free physical examination, high-temperature allowance, etc. Care: team building, free travel, communication allowance, meal allowance, holiday allowance, Six Visits, etc. Insurance: five social insurances and the housing fund paid in full, additional commercial insurance, accident insurance Vacations: paid annual leave, marriage leave, maternity leave, nursing leave, funeral leave, antenatal care leave, breastfeeding leave, etc. |
| Daily life benefits | Housing: 5-year free apartment, housing for backbone employees, themed training apartment Shuttle bus: 10 shuttle routes covering the downtown area of Hangzhou Canteen: affordable healthy food Supporting facilities: free gym and fitness facilities, dry cleaning shop, barber shop, grocery, Internet cafe, KTV, etc. |
Work-life balanceThree Cultural Events, namely, Sports Meeting, Staff Conference, and GalaEvening are our major traditional employee events. We regularly hold these events toenhance employees' sense of belonging and happiness. We also have a WeChatplatform for employee interaction, the Joyounger journal, an employee BBS, andanniversary publications.
| Three Cultural Events: 1. Sports Meeting |
| On October 17, 2020, Joyoung held the "Running, Joyoung" fun sports meeting, where employees took part in a series of competitive, amusing and family events, such as the 8 x 50 m relay race, tug-of-war, fun games and parent-child competitions. A total of 16 teams participated in the sports meeting. The sports meeting served as a platform for exchange among different teams, which enhanced employees' awareness of teamwork and sense of honor, and sparked their enthusiasm for work and life. |
| Three Cultural Events: 2. Staff Conference |
| The staff conference is held every two years. On April 23, 2019, the Joyoung Staff Conference titled "Exceeding" was held at the Jialiang Auditorium, China Jiliang University. At the awards ceremony during the staff conference, outstanding employees and teams received a series of awards, which played an important role in enhancing employees' sense of honor and motivating them. In addition, the chairman and president also gave their speeches at the conference, which helped employees better understand Joyoung's new strategies for the next year and future, and motivated them to bring better performance. |
| Three Cultural Events: 3. Gala Evening |
| On November 19, 2019, Joyoung held the "Joyful Joyoung" Gala Evening to celebrate the 25th anniversary. All the gala shows were orchestrated and performed by Joyoung clubs, various departments and employees' family members. There were singing and dancing, musicals, sketches, sitcoms, choruses, fashion shows, martial arts, etc. Event photos were updated in real time, attracting nearly 45,000 viewers. The event fully demonstrated who Joyoung employees are and what they can do. It was also a presentation of the Joyoung culture. |
To advocate "work with passion and joy, live a happy and healthy life", since2008, Joyoung employees have successively set up 22 clubs with a wide range ofthemes, including sports, culture, nutrition, health, skills, and parent-child relations.They spontaneously organize colorful leisure events where they can exchange freelyto enrich the spiritual culture. Joyoung has built a stadium, a gym, a dance studio, anensemble, and a VLOG live streaming studio, which cover a total area of 10,500square meters, as part of its full support for club activities and encouragement forwork-life balance.
Joyoung club activities
| The School of Nutrition live streamed 47 sessions about nutrition education for terminal supervisors and followers. | The Running Club organized a Health Run event, which enrolled 157 employees. A total of 137 employees recorded their participation online. |
| The Baking and Cooking Club carried out six baking and cooking events. |
Employees' occupational healthThe safety and health of our employees is the prerequisite for all of ourproduction and business activities. We strictly abide by the Production Safety Law ofthe People's Republic of China and other relevant laws and regulations. We havepassed the Occupational Health and Safety Assessment Series 18001(OHSAS18001:2011). We have been improving our rules and regulations onoccupational health, and enhancing our routine supervision and inspection, so as toraise employees' awareness of health, and encourage them to live healthily and workhappily.When the COVID-19 broke out, we quickly formulated an emergency plan toprovide protective measures for employees' Spring Festival trips and work resumption.We also launched an online health reporting system to track employees' daily healthstatus, and shared knowledge on immunity enhancement and pandemic prevention
and control. While following pandemic control requirements, we resumed operationsin an orderly manner, and cleaned and disinfected our workplace thoroughly.Employees were required to wear face masks and encouraged to attend onlinemeetings, work from home, and keep distance from others to protect themselves andpeople around them.
V、Environmental ProtectionWe advocate harmony between humans and nature. We seek to minimize theenvironmental impact of our production and operations, in response to the global callfor energy saving and emission reduction and higher energy and resource utilization.We have been paying close attention to the latest requirements on environmentalprotection, such as waste sorting. We are working hard to be a role model inenvironmental protection.
1.Minimizing Environmental Impact
We have passed the ISO14001:2015 (Environmental Management Systems). Weconduct an internal environmental impact assessment every year, and hire a thirdparty for external review every three years as required. Our factories in Jinan andHangzhou generate almost no waste gas and water in their production, so theirenvironmental impact is quite small. Our emissions are also within the permit ofrelevant national standards. We received no complaints or administrative penaltiesover pollution throughout 2020.We pay close attention to the environmental impact of our operations. In 2020,when the Hangzhou Municipal Government issued the updated Hangzhou HouseholdWaste Disposal Act, we quickly set up a special team to promote, implement andmanage waste sorting. We applied a waste sorting framework featuring daily review,weekly reporting, and monthly summary, in an effort to keep improving our efforts totackle environmental impact. Through waste sorting and waste reduction measures,we reported a 13.66% year-on-year drop in waste generated in 2020.
Joyoung's waste disposal efforts
| Infrastructure | In our park, we replaced old dustbins with 100 waste-sorting bins, and replaced old outdoor dustbins with new ones for hazardous waste. We also upgraded its waste recycling zone and built a solid waste recycling section in accordance with waste disposal regulations. |
| Propaganda | We pasted posters across the park, promoted waste sorting through WeChat and other common channels, and assigned specific personnel to review the effectiveness of waste sorting. We opened a waste sorting course to the Joyoung Industrial Tourism project. |
| Waste recycling | We hired a third party to collect recyclable waste sorted at the park. In 2020, 296,170 kg of cardboard, 9,410 kg of oil papers, 12,170 kg of foam board, and 34,472 kg of scrap metals were recycled. We partnered with a non-profit organization to regularly collect recyclable waste such as clothing and cotton for charity donations. We also cooperated with a professional company to collect kitchen waste from our canteen for special disposal. |
| Hazardous waste disposal | Our production and operations usually do not generate hazardous waste. In the event of any hazardous waste, we sign a contract with a professional waste disposal company, which will collect the hazardous waste on a quarterly basis and dispose of them annually in a safe and compliant way. |
| Case: Waste Sorting Course for Industrial Tourism |
| As a role model company in industrial tourism, we not only do great in waste sorting in our park, but also prod our visitors into action. In 2020, we opened a waste sorting course to our industrial tourism project. Designed in a vivid way, the course aimed to raise the awareness of environmental protection in children and parents, promote waste sorting methods, and contribute to social sustainability. |
Waste home appliances have high recyclable value, but they also contain avariety of heavy metals and pollutants. Improper disposal will cause pollution to theenvironment. In May 2020, the National Development and Reform Commission andsix other authorities jointly issued the Plan on Improving the Recycling and Disposalof Waste Home Appliances to Promote the Home Appliance Repurchase, the latest inthe government's timetable for streamlining the home appliance industry chaincovering production, purchase, recycling and disposal in the next three years.In 2015, the United Nations Development Programme and Baidu jointly initiatedthe Baidu Recycle Green Service Alliance. We joined the alliance in support of wasteelectronics recycling in China. We launched a trade-in service to encourageconsumers to give a small appliance of any brand to Joyoung for a discount of up toRMB 400 in the purchase of a new Joyoung product. In 2020, we recycled more than100,000 used household appliances through the trade-in service. The recycled wasteappliances were shipped from after-sales outlets to a local recycling company for
proper disposal.
2.Efficient Resource Utilization
We strictly abide by the national regulations on environmental protection. We areseeking to be an environmentally-friendly company, to make the world a greenerplace. In 2020, we took a series of measures for energy saving and emission reductionand developed an eco-friendly corporate culture.
- We encouraged employees to turn off lights during lunch break for onehour.- In the whole park, we replaced 28 W non-LED lights with 14 W LEDs,replaced 14 W non-LED lights with 8 W LEDs, and added 1,280 LEDs, whichhelped save 1,942 kWh throughout the year.
- We canceled the business vehicle service in the urban area and advocatedpublic transportation. In 2020, our fuel consumption was reduced by 48,000 literscompared with 2019.
- We advocated double-sided printing, which helped save 487,010 piecesof A4/A3 paper in 2020.
- We launched an online Q&A session (with prizes) on energyconservation and emission cut.
- Every night, our employees conducted a routine check on energy using,and the check results were disclosed everyday within the company.Renewable energy is an effective way to curb climate change and achieve greenand low-carbon development. In production and operations, we have been exploringhow we can make the best use of renewable energy based on local conditions. In 2015,Joyoung Creative Industrial Park and Hangzhou Zhengtai Photovoltaic Power Co.,Ltd. collaborated on a photovoltaic power project. Under the project, 35,000 squaremeters of photovoltaic devices were installed on the roofs of our factories. In 2020,these devices generated 3.06 million kWh of photovoltaic power, of which 79% wasused by the park while the rest was fed into the State Grid.
Joyoung's energy consumption in 2020
| Type | Consumption | Saving |
| Purchased power (kWh) | 12,681,336 | / |
| Clean power (kWh) | 2,404,604 | / |
| Gasoline (liter) | 60,408 | Down 44.51% yoy |
| Natural gas (cubic meter) | 54,370 | / |
| Water (ton) | 180,298 | Down 8.86% yoy |
| A3 paper (piece) | 5,500 | Down 30.17% yoy |
| A4 paper (piece) | 1,121,500 |
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June 2021