Henan Qingshuiyuan Technology Co., Ltd.
Tel: 0391-6089342Address: 100m West of the Intersection of Kegong Road and Wenbo Road,Huling High-tech Zone, Jiyuan City, Henan ProvinceEmail: bgs@qywt.com.cnWebsite: http://www.qywt.com.cn
WeChat ID:
Stock Code：300437
Henan Qingshuiyuan Technology Co., Ltd.
2022
Environmental,Social andGovernance (ESG) Report
CONTENTS
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTCONTENTS
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Topic 1
Digital Development—Intelligent Shuiyunzong
Topic 2
Safety in Production—Qing Shui Yuan in Peace
Topic 3
Green business—Supporting the Dual CarbonNational Policy
About Qing Shui Yuan
Corporate Governance forQing Shui Yuan
Homeland Protection
Sustainable Employment
Care for Society
Quality Management
Innovative Development
System ArchitectureKey Applied TechnologiesProject Promotion on Shuiyunzong PlatformRelevant Academic AchievementsBusiness DevelopmentIndustry-University-Research Cooperation
Occupational Health ManagementSafety GuaranteeSafety Training and Drills
Environmental Water EngineeringEnvironmental Protection Service
AppendicesIndex of IndicatorsKey Emission InstitutionFeedback Table
About the ReportPresident Remarks
Company Pro?leCorporate EventsBusiness LayoutProducts & ServicesHonors & Awards
Employee StructureEmployee RecruitmentEmployee DevelopmentEmployee WelfareEmployee CareEmployee Occupational Health &SafetyEmployee RightsEmployee Democracy
Assistance in Education“Anti-Illegal Fundraising”Public Welfare ActivitiesCharitable DonationsFighting the EpidemicProspect of Public Welfare
Supply ChainProduct Quality ControlCustomer Orientation
R&D SystemR&D Achievements
The Concept of Sustainable DevelopmentStakeholder CommunicationESG Performance
Building a Strong Defense AgainstCorruptionParty Building Leads our Way
Three-Board GovernanceOrganizational StructureReturns to ShareholdersInvestor Relations ManagementInformation DisclosureSupervision, Audit and Anti-FraudCompliance Management
Environmental ManagementEnergy and Resource Management“Three Wastes” Emission ManagementGreen O?ceEnvironmental Protection Training
Governance for SustainableDevelopment
Following the Party's Leadfor Steady Development
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTABOUT THE REPORT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
About the Report
Henan Qingshuiyuan Technology Co., Ltd.’s 2022 Environmental, Social and Governance (ESG) Report is the ?rst ESGreport released by Qing Shui Yuan since its IPO in 2015. In the spirit of being objective, standardized, transparentand comprehensive, the Report details Qing Shui Yuan’s practice and performance in ESG in 2022.
The reporting period is from January 1st, 2022 to December 31st, 2022. Previous years’ data may be presented inthis Report adequately in order to enhance the comparability and completeness of the Report.
Report Description
Time Span
The Report is an annual report.
Issue Cycle
The Report covers Henan Qingshuiyuan Technology Co., Ltd. as well as its branches, subsidiaries, and subordinateagencies. The scope of the Report is the same as that of the annual report, unless otherwise stated.
Report Scope
The Report is prepared under the following standards:
·United Nations Sustainable Development Goals (SDGs)·Global Reporting Initiative the Sustainable Reporting Guidelines (GRI Standards)·Chinese Academy of Social Sciences Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises(CASS-ESG5.0)·Social Responsibility and National Standards Social Responsibility Reporting Guidelines (GB/T36001-2015)·Shenzhen Stock Exchange Guidelines 2 for Self-regulation of Companies Listed on Shenzhen Stock Exchange: Standard-ized Operation of Companies Listed on GEM·Shenzhen Stock Exchange Guidelines 1 for Self-regulation of Companies Listed on Shenzhen Stock Exchange: BusinessProcessing Chapter I “Information Disclosure”: Section 2 “Periodic Reporting on Related Issues
Basis of Preparation
Please ?ip through or download the electronic edition of the Report from Henan Qingshuiyuan Technology Co.,Ltd.’s o?cial website (http://www.qywt.com.cn) for more information.If you have any questions or advice on the Report, please feel free to email us at dongshihui@qywt.com.cn or callus at 0391-6089342.
How to get the Report
For the convenience of expression and reading, Henan Qingshuiyuan Technology Co., Ltd. is called “Qing ShuiYuan”, “the Company”, “the Group” or “We” for short in the Report. In addition, the words “Country” and“Government” mentioned in the Report refer to the People’s Republic of China and its administrative agencies.
Appellation Explanation
This report includes both Chinese and English versions, in case of any discrepancies between Chinese and English,the Chinese version shall prevail.
Report Language
Phrase Explanation
Phrases
Henan Shuiyunzong Intelligent Control Technology Co., Ltd.Qingshuiyuan (Shanghai) Environmental Technology Co., Ltd.
refers torefers torefers torefers torefers torefers to
Tongsheng EnvironmentalAnde Technological ，Shaanxi AndeQingyuan Water TreatmentH2Q INCSiweida
refers torefers to
Explanation
Shaanxi Ande Technological Industry Co.,Ltda wholly-ownedsubsidiary of Qing Shui YuanJiyuan Qingyuan Water Treatment Co., Ltd., a wholly-ownedsubsidiary of Qing Shui YuanH2Q INC Ltd., a wholly-owned subsidiary of Qing Shui YuanJiyuan Siweida Environmental Technology Co., Ltd., a holdingsubsidiary of Qing Shui Yuan
Henan Tongsheng Environmental Engineering Co., Ltd., a wholly-owned subsidiary of Qing Shui Yuan
ShuiyunzongQingshuiyuan Shanghai
The data used in the Report come from the information released by government departments concerned, relevantinternal statistical reports of Qing Shui Yuan, third-party questionnaires, administrative documents and reports,third-party comments, etc. Qing Shui Yuan hereby promises that the content of the Report is true, accurate,complete and free of any false record, misleading statement or major omission.
Data source and Reliability Assurance
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTPRESIDENT REMARKS
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
2023 is the ?rst year in which the spirit of the 20th National Congress of the Communist Party of China will be thoroughly imple-mented, and it is also a crucial year for confronting new challenges and opportunities. Qing Shui Yuan will continue to adhereto our fundamental philosophy of "being a century-old enterprise that bene?ts society and serves the world", and our"water-centered development strategy" will remain unwavering. We will continue to promote the enterprise's growth throughscience and technology, strong talent management, and legal compliance, while upholding the Company's "diligence, perse-verance, learning, and innovation" ethos. Keeping a close eye on the national industrial policy and the development trend ofupstream and downstream industry, Qing Shui Yuan will focus on meeting customer demand through a variety of activities,including "Year of Quality and E?ciency", "Industry-University-Research-Application Cooperation", "Job Rotation", "TalentEchelon Construction", "Mentoring", "Cost Reduction and E?ciency Improvement", etc.Qing Shui Yuan has always held the view that technological innovation fuels high-quality business development, and that coretechnology is the sole determinant of long-term growth. Qing Shui Yuan must view R&D and innovation as its lifeline, embraceR&D and innovation as the endogenous driving forces for business development, and keep a close eye on the frontiers of scienceand technology in order to establish multiple business lines. Qing Shui Yuan will also continue to recruit outstanding R&Dpersonnel, increase R&D investment and e?ciency, strive to create a collaborative innovation platform, and master more coretechnologies in order to strengthen the Company's core competitiveness. In the ?eld of water treatment chemicals, the Companywill actively explore and expand the category and application scope of water treatment chemicals, focus on developing newtypes of green, environment-friendly water treatment water treatment chemicals, continuously optimize the product structure,improve the product performance, raise the technical content of products, dig deep into high-pro?t chemical products in highdemand, and ?nd new pro?t growth points; in the ?eld of engineering, the Company will take advantage of its quali?cations,technology and human resources concerning municipal works, industrial wastewater treatment and environmental protectionto undertake high-quality projects, prevent operational risks, improve the e?ciency of capital utilization, spread corporatevalues by implementing high-quality projects, and resume corporate social responsibility (CSR) through high-quality projects; inthe ?eld of industrial Internet, we will continue to increase Shuiyunzong Company’s investment in the R&D of a water qualitymonitoring sensor, water quality measuring and controlling device, water quality analyzer and online dosing system, so as toconstantly enhance product quality and performance. In order to provide our consumers with intelligent goods and services, wewill also intensify our e?orts to exploit the market and enhance the dynamic monitoring and intelligent management of theindustrial water treatment system on the Shuiyunzong Industrial Internet Platform.Qing Shui Yuan is an enterprise with a strong sense of social responsibility. Adhering to the principle of people orientation, wecare for the physical and mental health and career development of our sta?, respect every hard worker, continuously cultivate acorporate culture of helping and supporting one another, and protect the rights and interests of every sta? member while pursu-ing innovative development. The Company will commit to reforming and optimizing our digital process in order to achieve awin-win situation in terms of performance and bene?ts. We endeavor to implement ecological and sustainable operations.While innovating to reduce energy consumption per unit, we provide our customers with high-quality products and intelligenttotal solutions and contribute more to their intelligent operation, quality improvement, e?ciency increase, energy conservation,and pollution reduction goals.We’d better not slow down while chasing the wind and the moon, because there is spring scenery at the end of the open grass-land. In 2023, Qing Shui Yuan will continue to uphold the core idea of “being a century-old enterprise that bene?ts the societyand serves the world” to create greater value for the customers, sta? members, shareholders, and society. On the road tohigh-quality development, we are ready to work hard with our partners from the global upstream and downstream industries toactively promote energy conservation and emission reduction to achieve sustainable development goals in a low-carbonmanner!
President Remarks
With the change of seasons, we’re ushering in an extraordinary historical period.The year of 2022 was a truly eventful year in the history of our business development. Consistently exerting tremendous e?ort, we wereable to withstand the test of complex economic and social environments and make substantial progress. In 2022, we pushed aheadwith production and operation, technological innovation, and project construction in a planned manner. The construction of theQingshui Fine Chemical Industrial Park, the relocation of our water treatment line, and the construction of the phosphorus pentachlo-ride project were completed in a timely manner, and we received AEO certi?cation. Shuiyunzong was successfully identi?ed as ahigh-tech enterprise and a provincially specialized and sophisticated enterprise specializing in producing new and unique products. Ane-procurement platform was successfully launched. The Henan Provincial Postdoctoral Innovation Practice Base (Qing Shui Yuan) waso?cially inaugurated. A new breakthrough was made in product R&D. Full-time courses began to be o?ered in the Qing Shui YuanChemical Engineering Class. Progressive in our social responsibility, we established the Jiyuan Charity Federation—Qing Shui YuanFund, provided ?nancial assistance to freshmen, donated CNY 2 million for rural educational resource allocation, and contributeddisinfectants for the prevention of epidemics. Qing Shui Yuan won the title of “Henan Province’s Top Ten Technological Innovation-Ori-ented Environmental Protection Enterprises”, and carried out a series of rewarding activities in a deep-going way to “carry forwardexcellence, set a good example, and gather strength”. In 2022, we felt the concern and support that people from all walks of life hadfor Qing Shui Yuan in a complex internal and external economic environment. This bolstered our con?dence and determination todevelop core technology, expand the environmental protection industry, and assume greater social responsibilities.
Dare to forge ahead at the forefront of the times
Wang Zhiqing, the Actual Controller, Chairman and President of Henan Qingshuiyuan Technology Co., Ltd.
About Qing
Shui YuanQing Shui Yuan is one of the leading Chinese enterprises thatspecializes in developing and producing water treatment chemi-cals and providing related services. The Company will continue topromote our own development concept and strategic objectives tothe industry and its consumers in order to increase their identi?ca-tion with us and thereby increase our in?uence within the industryand market.
Company Pro?leCorporate EventsBusiness LayoutProducts & ServicesHonors & Awards
Henan Qingshuiyuan Technology Co., Ltd. (hereinafter referred to as “Qing Shui Yuan”), founded in 1995, headquartered inJiyuan High-Tech Industrial Development Zone, Henan Province. On April 23rd, 2015, Qing Shui Yuan was listed on the ShenzhenStock Exchange GEM (stock code: 300437). As a standing council member of the Specialized Committee on Industrial WaterTreatment of the Chemical Industry and Engineering Society of China, and a member of the Society for Water Treatment Chemi-cals, National Standardization Technical Committee of Chemical, Qing Shui Yuan has contributed to the formulation and revisionof 25 national standards and 45 industry standards. The Company holds over more than 100 patents and exports its products toover 50 countries and regions worldwide.
Being a century-old enterprise that bene?ts thesociety and serves the world
Core Idea
To be a ?rst-class environmental protection enter-prise in China and the globe.Corporate Vision
Diligence, Perseverance, Learning, Innovation.Corporate Spirit
My e?orts contribute to the growth of the Company, thehappiness of my family, and the cohesion of society.Governance Philosophy
1995
2008
2010
2015
2018
2019
2020
2021
Lou Yangsheng, the Secretary of the Henan Provincial Party Committee, inspected the Qing ShuiYuan R&D Center. He pointed out that Qing Shui Yuan should concentrate on key areas such ashigh-end instrument manufacturing, optimize resource allocation, amass the strength to makenew technological breakthroughs, and strive to get ahead of the curve on new tracks in order toprovide robust support for high-level technological innovation.
Qing Shui Yuan Group’s predecessor, Jiyuan Qingyuan Water Treatment Co., Ltd.,was established.
Henan Qingshuiyuan Technology Co., Ltd. was established through the sharereform.
Qing Shui Yuan was identi?ed as both a provincial water treatment chemicalengineering technology center and a provincial enterprise technology center.
Qing Shui Yuan was listed on the Shenzhen Stock Exchange GEM.
Qing Shui Yuan initiated a period of collectivization development; a watertreatment chemical extension project with an annual output of 180,000 tons waslaunched..The scienti?c and technological achievements of the intelligent water treatmentservice system passed the expert review.
A signing and inauguration ceremony was held for the Qing Shui Yuan - Zhengzhou UniversityEcological Environment Research Institute and Henan International Joint Laboratory of IntelligentWater Treatment System; Qing Shui Yuan hosted the China Conference on Industrial Water and 40thAnnual Meeting. Qing Shui Yuan and some sta? members won the “Technological InnovationAward”, “Development Leader Award”, “Distinguished Member Award”, “Young EliteAward”, and “Outstanding Contribution Award”. The "Technological Innovation Award,""Development Leader Award," "Distinguished Member Award," "Young Elite Award," and "Outstand-ing Contribution Award" were won by Qing Shui Yuan and our sta? members.Qing Shui Yuan hosted a seminar on “Carbon Peaking and Carbon Neutrality” Goals andIntelligent Water Treatment Technology. The seminar was attended by more than 300 experts,scholars, and entrepreneurs from over 150 organizations, including universities, researchinstitutes, and enterprises based in 26 provinces. Moreover, an inauguration ceremony was heldfor the Henan Provincial Postdoctoral Innovation Practice Base (Qing Shui Yuan).2022
Company Pro?le
CorporateEvents
In April 2022, Lou Yangsheng, the Secretary of the Henan Provincial Party Committee,inspected the Qing Shui Yuan R&D Center.
In November 2022, Qing Shui Yuan donated approximately 15 tons of disinfectants for thecontrol of epidemics.
In May 2022, Qing Shui Yuan donated disinfectants to the front line for epidemic preventionand control.
In July 2022, Qing Shui Yuan held a learning activity to mark the ?rst anniversary of “QingShui Yuan - Tai Chi - Health” Tai Chi Fitness Program.In August 2022, the Qing Shui Yuan - Zhengzhou University Ecological Environment ResearchInstitute held an academic symposium in the R&D Building of Qing Shui Yuan.In September 2022, Qing Shui Yuan held a ceremony for launching the “Jiyuan CharityFederation - Qing Shui Yuan Fund” and granting subsidies to freshmen.
The 2022 Central Plains Private Entrepreneur Training Program and Famous Enterprise Visitsmade their ninth stop in Qing Shui Yuan in July 2022. It was hosted by GEJUPINGTIANXIA HenanHeadquarters and put on by Jiyuan Entrepreneurs' College with help from the Henan Federa-tion of Industry and Commerce.Events in
2022
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Business Layout
Jiyuan Qingyuan Water Treatment Co., Ltd.
Water Treatment Chemical Production Base
Henan Tongsheng Environmental Engineering Co., LTD
Environmental Protection Project Operation Center
Shaanxi Ande Technological Industry Co.,LtdIndustrial Water Treatment Terminal Service Center
Qingshuiyuan (Beijing) Investment Co., Ltd.Investment and Financing Management Center
Qingshuiyuan (Shanghai) Environmental TechnologyCo., Ltd.Talent and Technology Center
Jiyuan Siweida Environmental Technology Co., Ltd.
Sanitation facilities and technology development, municipalsolid waste treatment
H2Q INC(USA)
Introduction of overseas marketing technology
Hainan Free Trade Zone Qingshuiyuan EnvironmentalTechnology Co., Ltd.
Import and export trade
The Company is mainly engaged in the production and sales of water treatment chemicals, the treatment of municipal andindustrial water, the comprehensive treatment of water environments, etc., and specializes in promoting the innovative develop-ment of the water-centered industry chain. We strive to drive the coordinated development of various business lines such aswater treatment chemical development and production, intelligent services for industrial water treatment, complex industrialwastewater treatment and resource utilization, municipal and rural wastewater treatment, etc.The Company has nine subsidiaries, which are as follows: Jiyuan Qingyuan Water Treatment Co., Ltd., Qingshuiyuan (Shanghai)Environmental Technology Co., Ltd., Henan Tongsheng Environmental Engineering Co., LTD Shaanxi Ande Technological IndustryCo.,Ltd Hainan Free Trade Zone Qingshuiyuan Environmental Technology Co., Ltd., Qingshuiyuan (Beijing) Investment Co., Ltd.,H2Q INC, Jiyuan Siweida Environmental Technology Co., Ltd., and Henan Shuiyunzong Intelligent Control Technology Co., Ltd.Additionally, the Company has formed R&D partnerships with the Chinese Academy of Sciences (CAS), Tsinghua University, TongjiUniversity, Zhengzhou University, etc. Through brainstorming, achievement transformation, complementary advantages, andresource sharing, the Company has assembled a team of renowned Chinese experts, including famous academics, and estab-lished the “Henan Provincial Water Treatment Chemical Engineering Technology Research Center”, “Qing Shui Yuan - CASEcological Environment Research Center for Soil Pollution Control and Ecological Rehabilitation”, “Henan International JointLaboratory of Intelligent Water Treatment System”, “Qing Shui Yuan - Zhengzhou University Ecological Environment ResearchInstitute”, and “Henan Provincial Postdoctoral Innovation Practice Base (Qing Shui Yuan)”.
dustrial water
treatment
Shuiyunzong intelligent servicePharmaceutical R&D, production and salesComplex industrial wastewater treatment
Ecological andenvironmental
protection
Ecological rehabilitation and river regulationMunicipal and rural sewage treatment
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
HEDP（(hydroxyethylidene-1,
1-diphosphonic acid)
ATMP (amino trimethylene
phosphonic acid)
DTPMP (diethylenetriamine
pentamethylene phosphonic acid)
AA/AMPS(2-acrylamido-2-
methylpropanesulfonic acid-acrylic acid
copolymer)
HPMA (hydrolyzed
polymaleic anhydride)
BHMTPMPA (Bis (hexamethylene triaminepenta (methylene phosphonic acid))
H?PO? (phosphorous acid)HPAA(2-hydroxyphosphonoacetic
acid)
PBTC(2-phosphonobutane-1,2,4-tricarboxylic acid)
Products & Services
Water treatment chemicals and features
A domestic sewage wastewater treatment project of 300 tons/day in Luolong District, Luoyang City
QSY integrated deviceAlar project, Xinjiang
The Company provides water treatment services including system design, device integration, construction, installation andcommissioning, operation and maintenance for industrial water treatment and reclaimed water recycling; municipal sewageengineering design, investment, construction and operation; wastewater treatment plant upgrading; sales of environmentalequipment and water treatment chemicals, etc.
The Company is one of the leading Chinese manufacturers of water treatment chemicals, with a large production capacity and a varietyof products, such as organic phosphines and polymers. Organic phosphines are broadly classi?ed as HEDP, ATMP, DTPMP, PBTCA, etc.;polymers are primarily classi?ed as HPMA, Polyacrylic acid, Polyacrylic acid copolymer, etc.; water treatment chemicals can beclassi?ed according to their application as ?occulants, corrosion inhibitors, antiscalant dispersant, bactericidal algicides, coagulants,disinfectants, pH regulators, etc. Water treatment chemicals are primarily employed to remove suspended solids and toxic substancesfrom water, inhibit the formation of water scale and sludge, reduce corrosion on water-contact materials, enhance the e?ects ofdeodorization, sterilization, decoloration, softening, etc., and to maintain water quality. The majority of the Company's water treatmentchemicals are used for industrial water treatment, including the puri?cation of water used in industrial production, such as processwater, cooling water, industrial raw water, and polluted industrial wastewater, in a variety of industrial sectors including chemicalengineering, steel, power, sewage treatment, and tap water supply.
Our water treatment products have been granted U.S. NSF certi?cation and EU REACH registration.
杀菌灭藻剂/粘泥剥离剂
Used for scale control in cooling water systems, oil pipelines,and boilers; used as a antiscalant in oil pipelines ?lled withhigh-hardness and hypersaline liquid.
Organic phosphonic acid/Organicphosphonates
Used extensively for industrial circulating cooling watertreatment, pollution-free pesticides, swimming pool watertreatment, drinking water treatment, industrial bleaching,and household and public disinfection.
Bactericidal algicide/slime stripper
Phosphorous acid is used as a reducing agent and pesticideIntermediate for the production of brightener for nylon,plastic stabilizer, synthetic ?ber, dibasic lead phosphite,glyphosate, etc.
Phosphorous acid
杀菌灭藻剂/粘泥剥离剂
Used primarily as an antiscalant dispersant in open circulat-ing cooling water systems in industrial sectors such aspetrochemistry, power, fertilizer, steel, etc., as well asinboilers.
Organic high polymer
Applicable to the chemical treatment of circulating coolingwater in the reclaimed water recycling system, and signi?-cantly e?ective at preventing corrosion, scaling and adhesionon the surface of heat-exchange equipment under highlyconcentrated and high pH value conditions.
Compound scale and corrosion inhibitor
杀菌灭藻剂/粘泥剥离剂
Used to enhance the corrosion inhibition e?ect of waterstabilizer formulations; BTA can be combined with multipleantiscalant dispersant to achieve a good corrosion inhibitione?ect, particularly in a closed circulating cooling watersystem.
BTA
Has interfacial e?ects on corrosion products and dirt, includ-ing a penetrating e?ect, an extrusion e?ect, and a strippinge?ect, so that dirt and corrosion products are progressivelyremoved from the metal surface, with the solid particlessuspended in water.
Compound cleaning additive
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Honors and Awards
Collective Honor
Vice President of Henan Environment Federation
Issuing Authority：Henan Environment Federation
Excellent Party ranch of 2021Issuing Authority：Zhicheng Town Party Committee
of the Communist Party of China
Advanced Enterprise of Contribution to Economic
Development of 2021Issuing Authority：Zhicheng Town Party Committee of the CommunistParty of China and Zhicheng Town People’s Government
Ambassadors of Love Enthusiastic in Public MatterIssuing Authority：Jiyuan City-Industry Integration Demonstration Zone Women Entrepreneurs Association
Jiyuan Charity Federation - Qing Shui Yuan Fund
Certi?cateIssuing Authority：Jiyuan Charity Federation
Chairman’s Personal Honor
An Expert at the Specialized Committee on Industrial Water Treatment, Chemical Industry and Engineering Society of China
Issuing Authority：Specialized Committee on Industrial Water Treatment, Chemical Industry and Engineering Society of China
First Prize for Technical InventionIssuing Authority：Henan Chemical Society
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
By seizing the opportunity presented by the current scienti?c and technological revolution, Qing Shui Yuan has developed theShuiyunzong Industrial Internet Platform—an intelligent water treatment service system based on the Company’s over twenty yearsof experience in serving the water treatment industry—in order to solve various problems arising from the production and serviceprocess such as extensive management, unscienti?c chemical application, delayed data feedback, etc. The Company has alsothoroughly integrated AI technology and Internet technology for industrial water treatment, achieving intelligent transformationand upgrading of industrial water treatment.
Digital Development—Intelligent ShuiyunzongTopic 1
System Architecture
A service pattern featuring “backgroundsystem + ?eld hardware equipment + operationand maintenance team in charge” is appliedto the Shuiyunzong Industrial Internet Platformto innovate the traditional water treatmentservice model, so as to “replace personnelwith robots” and build an “intelligent hospi-tal”. The platform is utilized extensively in thecooling circulating water systems of variousmanufacturing industries. It has wide-rangingusesand a high promotional value in other?elds, including data centers and central airconditioning.
Qing Shui Yuan has independentlydeveloped theShuiyunzong Industrial Internet Platform, a comprehen-sive system architecture involving approximately fouryears of continuous development.
Traditional production industries including
power, chemical engineering, metallurgyData center and central air conditioning
sectorsMicro-retailers reliant on the cold supply chain
Application Fields
Key Applied Technologies
Scope ofApplication
Technical ContentSelf-developed ProductsHighlightsTechnology NameAn onlinewater qualitymonitoringsensor
Terminal
equipment
Automatic detectionof water qualityindicators, with thedevelopment processinvolving di?erenttechnical ?elds andsubjects such assensitive materialstechnology, semicon-ductor technology,chemistry, optics, etc.
There are 15 types of onlinewater quality monitoringsensors available. Based onthese sensors, we havedeveloped more than 10types of intelligent watertreatment equipment/inte-grated systems, includingthe three-parameter waterquality analyzer andintelligent dynamicsimulation experimentaldevice
Our core manufacturingtechnology involves onlinemonitoring sensors forindustrial water circulationsystems. There are currently 15types of water quality monitor-ing sensors being used invarious industrial watercirculation systems, includingthe ST-580, ST-500, and SP-910which have reached indus-try-leading levels.
Analgorithmplatform
Backend
service
The platformintegrates 124conventionalalgorithms andutilizes big data toachieve data cleans-ing, calculation, waterquality trend predic-tion, and equipmenthealth statusprediction.
The platform o?ers a rangeof functions, includingenterprise managementsystems, equipmentmanagement systems,intelligent reportingsystems, operation centers,data dashboards, mecha-nism modeling platforms,algorithm platforms, digitaltwins, and more.
Our platform o?ers a highdegree of automation, preciseintegration of algorithmtraining, and e?ective conver-sion of abstract data intoconcrete information, therebyreducing the complexity ofdata usage and helping userse?ciently utilize data.
An opencommunity
Backnd
service
Visual platformservice developmentand deployment toolsare available on theplatform.
155 industrial microservicesare developed; microser-vices undergo containerorchestration based ontechnologies such as K8Sand Docker, with 50mechanism modelsestablished.
"Facilitate third-party compa-nies to conduct in-depthcustom development.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT DIGITAL DEVELOPMENT—INTELLIGENT SHUIYUNZONG
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The Company is constructing a nationwide sales and support network. We have established sales teams in Jiyuan, Zhengzhou,Xi'an, Wuhan, and Shenyang, developing channel partners vigorously and accelerating product application and promotion.The software on the Shuiyunzong platform is mature, the hardware is dependable, and the service sta? is competent. Nearly fouryears have passed since the ?rst batch of "Shuiyunzong" systems were introduced to the market, enabling customers toe?ectively experience the value of "platform + service."
Business Development
Business development on Shuiyunzong Industrial Internet PlatformIn 2019, the Henan Chemical Industry Association conducted a scienti?c and technological achievement evaluation of theplatform and concluded that the platform has made signi?cant innovations in the research and development of sensors forwater treatment agents, and has reached the international advanced level in the construction and application of the watertreatment industry Internet platform.
Relevant Academic Achievements
The platform has been successively identi?ed as:
In relation to the platform, the Company has obtained 10 utility model patents, 2 invention patents, and 19software copyrights.
Project Promotion on Shuiyunzong Platform
A pilot project for the “entrepreneurship and innovation”platform for manufacturing by the Ministry of Industry andInformation Technology in 2019
Industry-University-Research Cooperation
Integrating industry resources and collaborating closely with domestic and international universities and research institu-tions, the Company takes a market-driven approach and actively conducts research on related product development,practical supporting technologies, and equipment improvement. By perpetually providing the Company's production withcutting-edge technology, processes, and equipment, it ensures the Company's industry leadership.In August of 2020, the Company and Zhengzhou University signed a cooperation agreement for the establishment of the"Qing Shui Yuan-Zhengzhou University Institute of Ecological Environment." The institute seeks to integrate the researchtheories, academic resources, and faculty strengths of Zhengzhou University with Qing Shui Yuan's years of practicalexperience in the environmental protection ?eld in order to jointly address industry-speci?c key technical issues such aswater treatment agent research and development and the intelligent development of the water treatment industry. In2021, the "Qing Shui Yuan-Zhengzhou University Institute of Ecological Environment" will collaborate with the School ofElectrical Engineering at Zhengzhou University to advance technological advancements in industrial water system waterquality monitoring sensor technology.In 2022, Qing Shui Yuan reached cooperation with the Jiyuan Vocational and Technical College to implement a projectentitled “Nano Yunzong”. The objective of the project is to create a decentralized small-?eld management system forcirculating cooling water in non-large-scale heavy industrial production facilities. It is a simpli?ed solution for theShuiyunzong device.Since June 2022, through exchanges, discussions, and joint development between the university and the Company, themain outline of the equipment development theme has been completed. The next step is for the Company to integrateand absorb the outcomes, and the equipment will enter the testing phase.
A pilot project for manufacturing-Internet integrateddevelopment by Henan Province in 2019
An industrial Internet platform by Henan Province in 2022A big data solution provider by Henan Province in 2022
The online three-parameter water quality analyzer
The online linear three-parameter water quality analyzer in China hasachieved automatic monitoring of three water quality indicators of chlorideions, hardness and alkalinity in circulating cooling water systems. The deviceuses online titration technology and automatic cleaning technology toachieve high reproducibility, ?exible testing cycles and long-term stableoperation. In 2022, the device was technically improved to reduce data ?uctu-ations and testing deviations, laying a solid foundation for the large-scalepromotion and commercial application of the device. Currently, the device hasbeen applied in dozens of ?elds such as power, chemical and metallurgy, andis operating well.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT DIGITAL DEVELOPMENT—INTELLIGENT SHUIYUNZONG
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Occupational Health and SafetyManagement System Certi?cate
Occupational Health Management
Safety Training and Drills
Fire Safety
The Company revised and improved its safety management system in 2022, including the "Safety Production Responsibility","Compilation of Safety Management System", and "Assessment Rules for Safety Management". The organization actively practic-es the concept of green and safe development, enhances the employee safety management system, and implements a dualmechanism for safety production risk control and hidden peril investigation and treatment. It enhances the propagation ofsafety management, reinforces safety education, and ensures the implementation of safety management tasks in an orderlymanner. Throughout the year, there were no safety production responsibility accidents or ?re accidents.
The Company continuously strengthens the management of occupational safety and working environment, and providesspecialized training for ?re emergency and safety production measures. We strictly follows the "Safety Production Investmentand Cost Management System" to extract and use safety costs, provides necessary emergency rescue equipment, devices, andsafety protection items for on-site workers to ensure the smooth production of the Company's safety, and safeguard the occupa-tional health of our employees.
In December 2021, the Company organized an on-site training activity themed “Fire Safety in Qing Shui Yuan”. The trainingstressed the signi?cance of recognizing and preventing safety hazards, responding to ?res in their early phases, reporting ?res,and evacuating safely through case studies from the chemical industry and ?re safety warning videos. The training also includeddemonstrations of how to use ?re extinguishers and ?re hydrants in various ?re scenarios, thereby enhancing the ?re safetyawareness and practical abilities of all employees.The Company carefully adheres to the primary responsibility for safety, de?nes the responsibilities of each position with regardto ?re safety, organizes safety training on a regular basis to detect and remove hidden hazards and maximizes the impact ofpublicity, education, and warning.Safety GuaranteeSafety production is the foundation of enterprise growth. Qing Shui Yuan adheres to the principle of placing people and life ?rst,?rmly establishes the safety bottom line, and implements the "life ?rst" concept throughout the entire production, operation, andmanagement process. The Company is committed to establishing a ?rm foundation for production safety, closely monitoring keyproduction processes, and ensuring that everything is in perfect order. Qing Shui Yuan is dedicated to upholding the safetybottom line through action. In 2022, the Company organized eight comprehensive inspections in accordance with its annualplan, conducted monthly on-site safety checks, and conducted weekly inspections of main company-level hazards. As of the30th of December, all 321 identi?ed company-level concealed dangers had been remedied, for a 100% recti?cation rate.In recent years, Qing Shui Yuan has increased the frequency of hidden danger inspections, improved emergency managementsystem construction, e?ectively combined civil defense and technological defense, and endeavored to detect, inspect, andrectify potential risks as early as possible, preventing them from developing into major issues.
While assuring a sustainable and stable development, Qing Shui Yuan actively ful?lls itssocial responsibilities and pays close attention to its employees' health and safety. TheCompany complies with laws and regulations such as the "People's Republic of ChinaProduction Safety Law," the "Management Measures for Production Safety Accident Emer-gency Plans," the "Occupational Disease Prevention and Control Law of the People'sRepublic of China," and the "Management Measures for Occupational Health Examina-tions," and continuously improves its occupational health and safety managementsystem. The Company actively organizes self-inspections and self-examinations of thesafety production process, perpetually improves its environmental, health, and safetymanagement level, and protects its employees' occupational health and the safety of itsproduction. Currently, Qing Shui Yuan has achieved ISO 45001 certi?cation for its Occupa-tional Health and Safety Management System.
Safety Production—Qing Shui Yuan in PeaceTopic 2
Key Performance
Indicatorsfor 2022 for Safety
production safetyaccident
?re accident recti?ed hidden
hazards
recti?cationrate ofhidden hazards
annualcomprehensive
inspections
321100%
occurrence of major safety accident
days lost due to occupational injurywork-related fatalities
Case 1: On-site Safety Inspection
Case: Fire Safety Knowledge Training
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTSAFETY IN PRODUCTION—QING SHUI YUAN IN PEACE
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Safety in ProductionSafety Drills
The Company gives emergency management a high priority and requires all departments and workshops to coordinate employ-ees in key positions to study thoroughly and conduct drills. By participating in emergency drills, we can enhance the team'semergency response coordination and consistently improve our accident rescue capabilities.
Case: On June 24, 2022, the security department of the Company organized a special emergency exercise titled"Chloromethane Tank Leak Emergency Response." The exercise was directed on-site by the assistant generalmanager of production, and managers and employees from various workshops participated. The drill's planningsta? carefully tracked each step and recorded each data point. The entire exercise, including alert, rescue, repair,cleaning, disposal, alert, and evacuation, was completed in approximately 20 minutes.
Safety is the guarantee of development and a perpetual issue for enterprises. Production safety is related to the stability of theenterprise and the safety of every employee's life. In 2022, the Company organized a special safety education training and hungup propaganda slogans with the theme of "Comply with the Production Safety Law and Be a the First Responder" throughout theworkplace. Safety slogans and information were disseminated through various channels, including bulletin boards, propagan-da columns, and electronic displays, to raise awareness and promote safety.
Case 1: The workshop was organized to conduct training on the use of emergency equipment
Case 2: Training was conducted on “15Measures for Safety Production”
Case 3: “Safety Production” slogans were putup within the Company
Case 4: Sta? members were arranged to view videos and typical cases of safety accidents, as well asparticipate in safety knowledge guessing activities, in order to increase their safety and legal awareness.
Immediately report the leakageupon detection
The raw material loading and unloadingworker were engaged in pretreatment.
One person became unconscious due topoisoning during the evacuation procedure
The spraying system in thechloromethane tank yard was opened fordecontamination and cooling
The emergency response team was out?tted with positive pressure air breathing
equipment and chemical protective garments.
Rescued the person who is poisoned and
unconscious
Used the plugging tool for urgent repairs.
The Deputy General Manager of Production summarizied the drill
The ?re hydrants deployed in thesurrounding areas were used for
decontamination
Samples were taken from the wastewaterin the co?erdam for laboratory testing
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTSAFETY IN PRODUCTION—QING SHUI YUAN IN PEACE
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Wastewater Treatment Plants
Industrial Water Treatment
Environmental Water EngineeringThe Company is committed to the "Beautiful China" initiative by pursuing the "Carbon Peaking and Carbon Neutrality" Goals andthe "14th Five-Year" Plan. Over the years, the Company has accumulated rich experience in environmental water engineeringthrough its extensive involvement in the water industry. The Company specializes in undertaking large-scale industrial andmunicipal wastewater treatment plants, industrial water puri?cation and reclaimed water recycling systems, complex industrialwastewater treatment, decentralized, modular, and integrated small and medium-sized wastewater treatment systems, etc.
Green Business: Supporting the DualCarbon National Policy
Topic 3
The Company keeps solidifying our technical foundation for wastewater treatment, promoting the standardization of wastewa-ter treatment services, and enhancing the scienti?c nature and professionalism of wastewater treatment solutions.
Yichuan County Second Wastewater Treatment Plant Project
Henan Province’s ?rst fully-buried underground wastewater
treatment plantYichuan County Second Wastewater Treatment Plant,
Luoyang CityCapacity of treatment: 30,000 tons/dayWon the National Quality Engineering Award in 2020
Jinkai Wastewater Treatment Plant for megaton-scale
ammonia production
Wastewater Treatment Plant at Luohe Songjiang
Industrial Cluster
Capacity of treatment: 20,000 tons/dayCapacity of treatment: 30,000 tons/day
FourFunctional
Modules
Pretreatment of raw water and production of water supply: 700m?/hPreparation of desalinated water: 320m?/hPretreatment of wastewater and acidi?ed wastewater: 177m?/hRecycling system: 320m?/h
Key performance
indicators inwastewater treatment
7 wastewater
treatment plants in operation
Capacity of wastewater
treatment:
about140,000 tons/dayCovering5 citiesin 2 provinces
Project Name：Water treatment project for Yuguang lead recycling and utilization technological transformation project
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT GREEN BUSINESS—SUPPORTING THE DUAL CARBON NATIONAL POLICY
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Wastewater treatment plantat industry cluste
Municipal wastewater
treatment plant
Fully buried municipalwastewater treatment plant
Municipal wastewater
treatment plant
Wastewater treatment plant at
industry cluster
Pretreatment of raw water and preparation of desalinated water
Surface water puri?catioReaction air ?otation tankSelf-cleaning ?lter
Desalination with multimedia ?lterDesalination with ultra?ltrationDesalination with reverse osmosisr
The Company adopts the membrane ultra-concentration +evaporation crystallization technology, combined with partialsoftening pretreatment technology, to produce only low moisturesalt solid and package it for external delivery, achieving true 'zerodischarge' of wastewater.
Final Results
Heihe River Treatment EPC Project in Luohe City
To restore the gorgeous scene of clear water and green trees in Heihe River, this project employs comprehensive measures such as riverdredging, substrate activation, submerged plant community construction, large benthic animal community construction, and systemoptimization and adjustment. It e?ectively improves the water quality and aquatic ecology of the Heihe River basin, as well as the livingenvironment of the people residing near the water, and has numerous social and environmental bene?ts.
Cases of water environment treatment
Before treatment After treatmentComprehensive Environment Treatment Project at Wujiang River Source in Baofeng CountyThis project is a comprehensive municipal governance project contracted via the EPC approach, which includes river managementprojects, rural environmental development projects, and reclaimed water treatment projects with a high level of ?ltration. After exten-sive enhancements, the character of the river's surrounding area is enhanced, the living environment and natural ecology areenhanced, and the green landscape is revitalized. The project won the Qing Shui Yuan Best Project Award of 2020..
Ecological Environmental Protection Service
Qing Shui Yuan adheres to the development philosophy of protecting the ecological water environment, leveraging its enter-prise advantages to implement a variety of ecological environmental protection projects, such as river and black and odorouswater body treatment, water source protection, and comprehensive watershed water environment management.
Our Technological Advantages
Nf or partial softening technology is applied to pretreatment to remove COD and multivalent saltHigh TDS and high concentration ratio, high-pressure operation, direct multistage pressurizationwith short membrane shellLow chemical consumption and low operating costLow investment in the systemSalt separation and evaporation is bene?cial for the disposal and utilization of crystalline solids.
Coal Chemical Enterprise Sodium Sulfate Wastewater ProjectProject NameCoal chemical e?uent rich in salt, oil and phenolE?uent type50 tons/dayE?uent discharge amount
Project targetEconomically feasible, environmentally friendly, and harmless disposal
Case of Zero-discharge Industrial Wastewater Treatment
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT GREEN BUSINESS—SUPPORTING THE DUAL CARBON NATIONAL POLICY
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The Concept of Sustainable DevelopmentStakeholder CommunicationESG Performance
Governancefor SustainableDevelopment
Adhering to the guiding principle of "being a century-old enter-prise that bene?ts the society and serves the world," Qing ShuiYuan has established a solid social responsibility managementsystem to promote its sustainable development on an ongoingbasis.
SDGs
The Concept of Sustainable Development
The Company adheres to the fundamental values of "becoming a century-old enterprise that bene?ts society and serves global health" andthe philosophy of sustainable development, with the goal of being a ?rst-class environmental protection enterprise in China and the globe. Thebusiness has established a system of sustainable development and a system of social responsibility through “diligence, perseverance,learning, and innovation.” The Company actively undertakes social responsibility for environmental protection and uses environmentallyfriendly and pollution-free raw materials to prevent environmental damage. Based on the distinctive nature of its business, the Company o?erswater treatment and environmental protection products and services to other businesses, thereby fostering environmental protectioninitiatives.
To ensure the accuracy and completeness of information disclosure, the Company actively communicates with stakeholders andsolicits their feedback on corporate social responsibility issues via questionnaires. The Company employs a matrix analysismethod to evaluate the signi?cance of ESG issues and determine the year's most pressing concerns. This functions as a roadmapfor the Company's future emphasis on ESG construction and development.
ESG Issue Analysis
Materialmanagement
Discharge management
Discharge management
Environmental protection and climate change
Investment in community construction
Industryprogress
Technology innovation and digitalization
National policy response
Sta?training&developmentSta?rightsandinterests
Occupational safety and health
Equalopportunity&anti-discrimination
Emergency treatment
Stockholders’equity
Compliance managementBusiness ethics and anti-corruption
Riskmanagement&internalcontrolESGgovernance
Product quality and customer service
Customer privacy protectionSupplychainmanagement
Very Important
VeryImportant
ImportantImportant
Importance to Enterprise
Importance to Stakeholders
Analysis of Substantive Issues
Emergency treatment
Business ethics and anti-corruption
Discharge management
National policy response
Energy management
Occupational safety and health
Technology innovation and digitalization
Product quality and customer service
Customer privacy protection
Compliance management
Investment in community construction
Environmental protection and climatechange
Based on the outcomes of the questionnaire evaluation, the following issues are of particular concern to stakeholders:
DischargemanagementEnergymanagement
Environmentalprotection andclimate change
Materialmanagement
Equal opportunityandanti-discrimination
Sta? rights andinterestsand sta? careOccupational safetyand healthSta? training anddevelopment
Supply chainmanagementProduct quality andcustomer serviceCustomer privacyprotectionEmergencytreatment
Technologyinnovation anddigital constructionIndustry progressNational policyresponseInvestment incommunityconstruction
Stockholder’sequityRisk managementandinternal controlBusiness ethicsand anti-corruptionCompliancemanagement
Environmental Issues
Sta? Rights andInterests
Responsibility &Operation
SocialContributionCorporateGovernance
ESG governance
The Company has identi?ed key ESG issues to disclose by analyzing the signi?cance of each issue to stakeholders and theCompany's growth. This approach enhances the relevance and responsiveness of information disclosure.
ESG Issue Identi?cation
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTGOVERNANCE FOR SUSTAINABLE DEVELOPMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Stakeholders
Investors andshareholders
Suppliers
Customers
Media andthe public
Socialorganizations
Sta?
Universities andresearchinstitutes
The governmentand regulator
Shareholders’ MeetingInformation DisclosureService Hotline for Investors
Daily communicationProcurement policies andtendering proceduresEstablishing a communication andcollaboration platformHolding supplier meetingsProfessional service teamGroup website and emailCommunication on Daily operations
After-sales serviceAccept media interviewsReleasing information to the public
and mediaInformation disclosure
Volunteer serviceCharity activities
FeedbackTalks with leadershipPerformance appraisalEnterprise trade union
Strengthening scienti?c research
cooperationOrganizing campus job fairsOrganizing corporate seminarsHosting visits and tours for
institutions
Information disclosureO?-site supervisionOn-site inspection
Responsibility ResponseEnhance pro?tability,strengthen corporategovernance and enhanceinvestor relations managementStrengthen communicationfor mutual bene?t and win-win
situationProvide high-quality productsand services, prioritize qualitymanagement system development,and conduct regular customer
follow-upMaintain friendly communicationwith the media and the public,and actively disclose informationEngage in charitable activitiesand make an e?ort to contribute
back to societyActively respond to employeedemands, establish a transparentmechanism for promotionand a solid compensation andbene?ts system,and enhance employee well-being
Enhancing cooperationbetween universitiesand enterprises to realize mutuallybene?cial and win-win outcomes.
Implement national macro policies,implement regulatory policiesthoroughly, conduct business withhonesty, and actively engage intechnological innovation
Expectation & DemandStable performance growthAsset appreciationHigher investment returnsGood partnershipIntegrity and mutual bene?tBetter industry developmentQuality products and servicesCustomer information andprivacy protectionQuick responseHonest tradingMaintain transparentinformation disclosureBrand value and market in?uenceTargeted interviews and exchanges
Environment protection,energy conservation and pollution
reduction
Sustainable developmentSocial welfareSupport communityImprove the salary and welfare systemRationalize and systematize thepromotion mechanismEnrich education and training resourcesSafeguard legal rights and interests
Conducting technicalcommunicationProviding employmentopportunities
Implement national policiesPay taxes according to law
Protect the environment
Stakeholder Communication
Stakeholder Demand and ResponseQing Shui Yuan values communication with stakeholders and actively responds to their demands, while ensuring the timely andtruthful, accurate, and complete disclosure of relevant company information so that stakeholders can access it in a timelymanner.
Communication Mechanism
and Method
ESG Performance
Total assets
3,130,513,886.70CNY
22,245,941.70
CNY
1,804,723,664.35CNY
Operating income
105,200,119.88
CNY
Total tax amountR&D input
Total number ofpatents
Economicperformance
1,683,538.50
CNYTotal investment inenvironmental protection
Power consumption
48,568,932KWh
Water consumption510,536.35m3Environmental
performance
Working days lost dueto occupational injurySocialperformance
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTGOVERNANCE FOR SUSTAINABLE DEVELOPMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Labor contract signing
rate100%
Total length of sta?
training
9,100 hoursTotal volunteer hours
Working days lost dueto occupational injury
Total number of sta?
15146 hours2,777,690CNYTotal donations
Number of majorsafety accidents
Following theParty's Lead forSteadyDevelopment
Qing Shui Yuan follows closely the guidance of Xi Jinping’s Thoughton Socialism with Chinese Characteristics for a New Era, imple-ments the spirit of the 20th Party Congress of the CPC, ?rmlysupports the “Two Establishes” and the “Two Upholds”,strengthens the Party construction and Party member team build-ing, and takes the path of Party-enterprise integration and devel-opment.
Building a Strong Defense Against CorruptionParty Building Leads our Way
Building a Strong Defense Against Corruption
Party Building Leads our Way
The report of the 20th Party Congress deeply analyzes the reasons of corruption, clari?es the Party’s clear stance against corrup-tion, emphasizes the importance of ?ghting corruption at any time, and insists on the important deployment of a protracted waragainst corruption. Under the leadership of the Party Committee, Qing Shui Yuan has strengthened our "zero tolerance" policytowards corruption and bribery. The Company has fully utilized various communication platforms, such as WeChat public accountsand o?cial websites, to disseminate the highlights of the 20th National Congress Report, ?rmly following the footsteps of the Partyto combat corruption and punish wrongdoing with a zero-tolerance attitude, and insisting on investigating and punishing allviolations, regardless of their size or di?culty. The Company persists in strictly governing itself, continuously improving its aware-ness of risk prevention and control for job integrity, and e?ectively integrating the concept of integrity into daily work.
We are forging ahead on a new journey and rendering meritorious service in a new era. In 2022, under the correct leadership andstrong support of the Zhicheng Town Party Committee, the General Party Branch of the Company diligently studied Xi Jinping’sThought on Socialism with Chinese Characteristics for a New Era and implemented the spirit of the 20th Party Congress, furtherstrengthened ideological construction among the cadres, gave full play to the role of the General Party Branch as a battlewagon inworking hard and uniting all the sta? members for collaboration, played a pioneering role in gathering collective strength, andpromoted healthy development of the enterprise through high-quality party building.On June 23rd, 2021, Qing Shui Yuan held a Party Committee meeting to conduct elections, and applied to the Zhicheng Town PartyCommittee for the establishment of three Party branches. On July 19th, 2021, the Zhicheng Town Party Committee approved theelection results and the application to establish Party branches. There are a total of 48 registered Party members in the Party Branchof Qing Shui Yuan, including 16 probationary members.
Case: Our sta? members watched the report of the 20th National Congress and resolutelyimplemented the spirit of the Party
In 2022, Qing Shui Yuan organized the Party members to study Adhering to the Comprehensive Leadership of the Party is History andPeople’s Choice, Xi Jinping’s speech at the Boao Forum for Asia (BFA), and Li Keqiang’s speech at the National Teleconference onStabilizing the Economy in order to strengthen political construction and stand ?rm in support of its ideals and principles.
In 2023, the General Party Branch of the Group focuses on studying and implementing the spirit of the 20th Party Congress. Underthe leadership of the Zhicheng Town Party Committee, we faithfully carry out our duties and responsibilities, ?rmly grasp the twocore tasks of serving development through Party building and setting up a ?rst-rate organizational team, and focus on“improving quality”, “enhancing reputation” and “enhancing ability”.
Case 1: On the afternoon of February 26th, under theleadership of the General Party Branch of the Group,all the Party members and activists from di?erentParty branches watched the patriotic educational ?lmThe Battle At Lake Changjin II, so as to remember thehistory, learn the lessons of history and forge aheadwith great determination.
Case 3: On July 1st, the General Party Branch of Qing Shui Yuan held a series of activities to celebratethe 101st anniversary of the founding of the Communist Party of China. We held a solemn ?ag-raisingceremony to relive our allegiance to the Party. Participating in the activities were the group's middleand senior managers, all sta? members, registered Party members, and Group activists.
Case 2: On the afternoon of October 28th, the PartyGeneral Branch of the Group organized all Partymembers, probationary Party members and activeapplicants for Party membership to study the spirit ofthe 20th Party Congress. Alongside their actual work,they have discussed and exchanged implementationstrategies and learning experiences.
Secretary of the General Party Branch：
Han GuangwuDeputy Secretary: Qi Wenhai, Zheng JuanParty committee members：
Han Guangwu, Qi Wenhai, Zheng Juan,Du Xiaobing, Zhang Gaofeng, Li Zhijiang,Ren Haiyang
Party branch of the GroupParty branch of Qing YuanParty branch of Tongsheng
General Party Branch
of Qing Shui Yuan
Party Building
Outlook for
2023
ImprovingQuality
Take the standardized construction of the general Party branch as a means to continuouslyimprove “the Three Meetings and One Lecture system”, o?er living services, and strive toupgrade the standardized construction of the general Party branch.
EnhancingReputation
Focus on solving the problem of “separation” between Party building and business, andput the actual development of the Company at the core to actively explore a path for mutualintegration and promotion of Party building and business under the new situation.
EnhancingAbility
Focusing on addressing the problem of party cadres' lack of professional skills, we haveimproved the overall quality of Party members through activities such as job rotation,exchange programs, reserve cadre training plans, mentorship, in addition to traditionaltraining and apprenticeship programs.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTFOLLOWING THE PARTY'S LEAD FOR STEADY DEVELOPMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
SDGs
Three-Board GovernanceOrganizational StructureReturns to ShareholdersInvestor Relations ManagementInformation DisclosureSupervision, Audit and Anti-FraudCompliance Management
CorporateGovernancefor Qing Shui YuanQing Shui Yuan has established a compliant and scienti?c businesssystem, adhering to legal operations and standardized proce-dures. We have also established a sensible and high-qualitygovernance structure and internal management system, commu-nicating actively with stakeholders and ensuring the quality ofinformation dissemination. We continually enhance our corporategovernance practices.
Board of Shareholders
Board of Sup ervisors
Boani Setreta riat
Board O?ce
Strategic ResourcesDepartmentLegal A?airs DepartmentCorporate CultureDepartmentSafety and EnvironmentalProtection DepartmentTechnology and QualityDepartment
President O?ceHR DepartmentMarketing andBusiness DepartmentPlanning andFinance DepartmentR&D CenterTendering andProcurement CenterInformation CenterEngineeringDepartmentSupervision andAudit DepartmentPrerentStrategr CommitteeRemumeratonand Appraisal
Committee
NominationCommitteeAudit CommitteeBoard of Direc tors
Key PerformanceIndicators of Corporate
Governance of 2022
The board of directorsheld 7 meetings.
The company held 2shareholders' meeting.
Three-Board GovernanceOrganizational Structure
The Company has established a shareholders' meeting, a board of directors, a supervisory board, and an executive team, eachresponsible for their respective roles in enterprise decision-making, coordinating operations, and e?ective checks and balances.As of the end of the reporting period, the actual status of the company's governance meets the requirements of laws and regulationssuch as the Company Law, Securities Law, Listed Company Governance Guidelines, Shenzhen Stock Exchange GEM Listing Rules, andNormative Operations, and the Company continually improves its governance structure and establishes a sound internal controlsystem. The Company does not have issues of industry competition or related party transactions caused by partial restructuring,industry characteristics, national policies, or mergers and acquisitions.
Returns to ShareholdersTo improve the Company’s scienti?c, sustainable and stable dividend decision-making and supervision mechanism, pay back tothe investors and guide the investors in establishing a concept of rational, long-term investment, the Board of Directors formu-lated the Henan Qingshuiyuan Technology Co., Ltd. Shareholder Return Plan for the Next Three Years (2022-2024) in accordance withthe Notice of Further Implementing Aairs Related to Cash Dividends in Listed Companies, Regulatory Guidelines No. 3 for ListedCompanies: Cash Dividends in Listed Companies (Revised in 2022), and China Securities Regulatory Commission No. 3 Announcement(2022), issued by the China Securities Regulatory Commission, as well as the Articles of Association.Future pro?t distribution plan:
On the premise of ensuring corporate pro?tability, if the Company does not make major investment or signi?cant expenditure(the amount accounts for more than 10% of the Company’s most recent audited net assets and the absolute amount exceedsCNY 5 million), pro?ts should be distributed in cash, and the annual pro?t distributed in cash shall not be less than 20% of theattributable pro?t realized in the same year.Dividend distribution in the past three years:
From 2019 to 2021, the Company's cumulative dividends for three years totaled CNY 49,922,056.73.
The Board of Directors of the Company consists of 9 directors, including 3 independent directors, accounting for 33.33% of thetotal number; and 3 female directors, accounting for 33.33% of the total number. The number of directors and the compositionof the board are in compliance with the relevant laws and regulations, the Articles of Association, and the requirements of theShenzhen Stock Exchange for GEM-listed companies. The directors of the Company are familiarize with the relevant laws, regula-tions and departmental rules, understand the operation status of the Company, actively participate in relevant trainings, attendBoard of Directors meetings and general meetings of shareholders and express opinions deliberately in accordance with theRules and Procedures for Meetings of the Board of Directors, Independent Director System, and Standard Operation.The Company’s Board of Directors has four committees: the Strategic Committee, the Nomination Committee, the Audit Commit-tee, and the Remuneration and Appraisal Committee.In 2022, the Strategic Committee held 1 meeting, the Nomination Committee did not hold any meeting, the Remuneration andAppraisal Committee held 1 meeting, and the Audit Committee held 6 meetings.
Shareholders and Board of ShareholdersDuring the reporting period, the Company convened and held shareholders meetings in strict accordance with the requirementsof the Rules for the General Meetings of Shareholders of Listed Companies and Rule of Procedure of Shareholders Meeting. TheCompany also provided online voting to facilitate shareholders' participation in the meetings, treated all shareholders equally, andensured that all shareholders, especially minority shareholders, have the right to be informed and participate in major companymatters.Directors and Board of Directors
The supervisory board consists of 5 supervisors, including 2 sta? representatives and 1 female supervisor. The number of super-visors and the structure of the board are in compliance with the requirements of the relevant laws and regulations and theArticles of Association. The Company elects supervisors and sta? representatives in strict accordance with the Company Law,Articles of Association, etc. The Board of Supervisors conscientiously performs its duties, and in addition to deliberating on dailya?airs, it plays a good role in supervising the Company’s connected transactions and ?nancial status, as well as directors andsenior managers’ performance of duties, so as to e?ectively safeguard the legitimate rights and interests of the Company andits shareholders.
Supervisors and Board of Supervisors
The supervisory board held
7 meetings.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT CORPORATE GOVERNANCE FOR QING SHUI YUAN
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The Corporate Secretary is responsible for investor relations management and daily information disclosure work, receiving visitsand inquiries from shareholders. The Company strengthens the management over information disclosure and carries out itsobligation of information disclosure in strict accordance with the relevant laws and regulations and the Information DisclosureManagement System. Also, it has chosen the China Securities Journal, Securities Times, Shanghai Securities News, and SecuritiesDaily as the newspapers for information disclosure, and designated cninfo (http://www.cninfo.com.cn) as the website forinformation disclosure to ensure that all the shareholders of the Company have equal access to information. According to therequirements of the Investor Relations Management System, the Company strengthens communication with the investors toenhance their understanding and recognition of the Company.
In order to prevent and control fraud, strengthen corporate governance and internal control, reduce company risks, standardizebusiness behavior, ensure the achievement of company business objectives and sustainable, stable, and healthy development,and protect the legitimate rights and interests of the Company and shareholders, Qing Shui Yuan has established the Supervi-sion and Audit Department as a permanent institution responsible for organizing and implementing the Company's anti-fraudwork. Its speci?c responsibilities include:
Investor Relations Management
Conducting independent evaluations of the Company's anti-fraud work;Assisting in conducting anti-fraud publicity activities;Reviewing and evaluating the establishment and implementation of the Company's anti-fraud control mechanisms;Responsible for accepting and registering fraud reports, organizing the investigation of frauds, issuing opinions on treatment and reportingto the management and the board of directors, working under the guidance of the board of directors, etc.
The audit team audited Tongsheng Environmental
The audit team audited Ande Technology
Specialized training for controlling shareholders and actual
controllers of listed companies
Training on the standardized operation of GEM-listed companiesand training on code of conduct for directors and supervisors
Training on corporate governance
Training on investor relations management
The Company adheres to legal corporate governance and construction. With a focus on strengthening compliance manage-ment, the Company intends to provide more education on compliance management, consolidate the concept of complianceoperation, construct a comprehensive compliance management system, increase the level of compliance management, consoli-date the daily management work, and conduct compliance training at various levels to guarantee lawful business operation.
Compliance Management
The Supervision and Audit Department is responsible for the management of internal audit systems, ?nancial audit managementregulations, construction project audit management regulations, o?-o?ce audit management regulations, internal control evalu-ation systems, anti-fraud and reporting mechanisms, complaint management regulations, and internal accountability systems.Qing Shui Yuan has set up the Supervision and Audit Department in order to strengthen its internal audit supervision, carry outeconomic activities in a healthy and orderly manner, safeguard the national ?nancial regulations and corporate rules and regula-tions, and improve management and economic bene?ts. The Supervision and Audit Department carries out the audit workindependently under the leadership of the Audit Committee. In 2022, the Supervision and Audit Department set up an audit teamfor ?eld auditing on Shuiyunzong, Shaanxi Ande, Qingshuiyuan Shanghai, Syngenetic Environmental, Siweida, and the Group. Atotal of six internal audits were conducted on the relevant subsidiaries.Audit policy: “Provide services, prevent and control risks, and improve e?ciency”
The Company discloses information faithfully, accurately, completely and in a timely manner in strict accordance with the Adminis-trative Measures for the Disclosure of Information of Limited Companies, and Shenzhen Stock Exchange Guidelines 2 for Self-regulation ofCompanies Listed on Shenzhen Stock Exchange: Standardized Operation of Companies Listed on GEM. In 2022, the Company issued atotal of 103 announcements and disclosed 75 relevant documents. In 2022, the Company was not punished for illegally disclosinginformation.
Information Disclosure
Supervision, Audit and Anti-Fraud
The Company interacted with investors
102 times on the interactive platform,
and answered 115 questions raised byinvestors, achieving a 100% response rate.The Company held oneonline brie?ng on the annual
report in 2022
The Company answered
calls from investors in 2022
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT CORPORATE GOVERNANCE FOR QING SHUI YUAN
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Environmental ManagementEnergy and Resource Management “Three Wastes” Emission ManagementGreen O?ceEnvironmental Protection Training
Homeland
ProtectionQing Shui Yuan has always been committed to the concept of greendevelopment, keeps making e?orts to conduct low-carbon man-agement, actively promotes green o?ce and environmental aware-ness in response to the “Carbon Peaking and Carbon Neutrality”Goals.
SDGs
The Company has established 37 systems related to environmental protection and management, some of which are shown below:
Qing Shui Yuan strictly complies with the relevant national and local environmental laws and regulations, such as theEnvironmental Protection Law of the People’s Republic of China, Law of the People’s Republic of China on Preventionand Control of Water Pollution, Law of the People’s Republic of China on Prevention and Control of EnvironmentalPollution by Solid Waste Pollution, etc. We have established the Department of Environmental Protection as a full-timemanagement department to regulate the Company's environmental management work and improve control overenvironmental protection. In 2022, Qing Shui Yuan has invested RMB 1,683,538.50 in environmental protection.
Environmental Management
Environmental Management System
The Company's environmental management system has passed ISO 13001 certi?cation, which covers the research and development, sales andtechnical services of water treatment chemicals and water treatment dosing systems; the sales of chloromethane and phosphite within the scopeof quali?cation; and the related environmental management activities involved in the research and development, production (outsourcing) andsales of environmental protection equipment using intelligent water treatment.
Environmental Protection Tenet
Emergency Response Plan for Sudden Environmental IncidentsAccording to the Interim Measures on Environmental Emergency Response Plan, Interim Measures for the Filing Management ofEmergency Response Plan for Environmental Incidents in Enterprises and Public Institutions, Interim Measures for the Filing Managementof Emergency Response Plan for Environmental Incidents in Enterprises and Public Institutions in Henan Province, etc. In order toprotect the surrounding environment and the human health, standardize the response work after the incident, improve theability to respond to the incident, avoid or reduce the impact of the incident, and strengthen the connection between the Compa-ny and the government's related work, Jiyuan Qingyuan Water Treatment Co. Ltd. Huling Branch has compiled Measures onEnvironmental Emergency Response Plan of Jiyuan Qingyuan Water Treatment Co., Ltd. Huling Branch.The Company's emergency plan for environmental emergencies consists of comprehensive emergency plan, special emergencyplan and emergency disposal card, in which the comprehensive plan is strategic, the special emergency plan is tactical, and theemergency disposal card is operational.The major environmental risks of the Company are the leakage of Chloromethane, hydrochloric acid, methanol, liquid chlorine,formaldehyde, phosphorus trichloride, hydrogen chloride, methyl acrylate, acetic acid, yellow phosphorus, and ethylenedi-amine, as well as the hazards to the surrounding environment and people's health from the toxic and harmful substancessecondary/associated with the ?re and explosion accidents of the above substances. For this reason, the Company reinforcesthe connection with the surrounding environment and protection targets to prevent risks in daily life.Various substances involved in the Company, such as yellow phosphorus, methanol, chloromethane, etc., in addition to havinga certain degree of toxicity, most of them are also ?ammable and explosive. Therefore, in the process of environmental emer-gency rescue, it is necessary to combine with the production safety accident emergency rescue work to avoid ?re and explosionaccidents with special attention.
Environmental Protection Goals
Environmental protection facilities management system
Environmental riskmanagement system
Environmental protection
responsibility system
Clean productionmanagement systemEnvironmental protection
facilities operationand management system
Environmental hazardinvestigation record reportingmanagement system
Environmental hazardidenti?cation andcontrol responsibility system
Factory environmental healthmanagement systemEnvironmental protectionfacilities alter management
system
Major environmental risksupervision system
Hazardous waste control responsibility system
Rainwater and sewagediversion management system
1、Avoid all kinds of major environmental pollution accidents.
2、 Avoid purchasing labor protection supplies, facilities and equipment that do not meet national standards or industry standards. Obtain
relevant certi?cates and instructions when purchasing labor protection supplies, facilities and equipment. Use or install, adjust and operate instrict accordance with the instructions.
3、 For new, renovation or expansion projects, environmental protection facilities should be designed, constructed and put into production and
use at the same time as the main project.
4、For new, renovation or expansion projects, environmental impact assessment should be conducted ?rst. If the environmental conditions do
not meet, stop the construction.
5、For new, renovation, expansion projects, environmental impact assessment is needed within three months of production operation trial. An application for
acceptance to the relevant department is also needed at the same time, the production would be prohibited if the acceptance is failed.
6、The indicators of "three waste" emissions are in full compliance with the relevant national standards.
7、Carry out clean production as required.
The environmental protection work needs to be done on the principle of three simultaneities and ?ve incorporations.Three simultaneitiesthe environmental protection work is arranged, inspected and reviewed as the work is done.Five incorporations
the environmental protection work is incorporated into the action of increasing production andsaving, into the economic responsibility system, into enterprise management, into productionscheduling management, and into the work plans of various departments.
Comprehensive environmental
emergency response plan
The following major emergency response cards are prepared
(1) Liquid chlorine leakage emergency response card
(2) Phosphorus trichloride leakage emergency response card
(3) Formaldehyde leakage emergency response card
(4) Methanol leakage emergency response card
(5) Methyl chloride leakage emergency response card
(6) Acetic acid leakage emergency response card
(7) Hazardous waste management emergency response card
(8) Wastewater treatment emergency response card
Environmental emergency response plan
Speci?c environmentalemergency response plan
On-site disposal plan forenvironmental emergencySpeci?c emergency response
plan for atmosphericenvironmental risksSpeci?c emergency response plan
for water environmental risksSpeci?c emergency response plan
for soil environmental risksSpeci?c emergency response
plan for solid waste risks
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTHOMELAND PROTECTION
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The Company strictly follows the "Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution","Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste", "Law of thePeople's Republic of China on the Prevention and Control of Water Pollution" and other pollution prevention laws and regula-tions, various industrial pollution sources have been regulated, and the emission of "three wastes" is in line with the nationalemission system. Pollution source management facilities supporting rate greater than 95%, the annual operating rate ofenvironmental protection facilities greater than 95%.Speci?c regulations:
Qing Shui Yuan strictly complies with the Law of the People’s Republic of China on the Prevention and Control of Solid Waste Pollution,based on which the Company has established the Hazardous Waste Management System. We start from the source of the manu-facturing process, manage the whole process and carry out emission reduction and recycling measures.
“Three Wastes” Emission Management
Qing Shui Yuan has been reinforcing scienti?c management of energy for many years and striving to build a resource-saving enterpriseaccording to its own production and operation. The energy used by Qing Shui Yuan includes electricity, natural gas, diesel and gasoline,etc. The breakdown of Clearwater's electricity consumption in 2022 is shown in the following table:
Energy and Resource Management
Energy Management
Hazardous Waste Management
Measures to reduce the amount and toxicity of hazardous waste :
(1) Enhancing the management of hazardous waste;
(2) Strengthening the operation management of production equipment to ensure
stable production and reduce the generation of hazardous waste;
(3) Hazardous waste generated by the classi?cation of storage, timely delivery to
quali?ed institution for treatment;
(4) Enhancing hazardous waste storage sites impermeable, leak-proof, ?re proof and
anti-theft work;
(5) Continuously improve the process and reduce the amount of activated carbon;
(1) Hazardous waste control responsibility system
(2) Hazardous waste identi?cation management system
(3) Hazardous waste management plan system
(4) Hazardous waste declaration and registration system
(5) Hazardous waste transfer management system
(6) Hazardous waste classi?cation, storage and transportation
management system
(7) Hazardous waste inventory documentation system
(8) Hazardous waste treatment personnel training system
(9) Hazardous waste treatment personnel protection system
The forklifts, material handing equipment used in the ?lling workshop, have been upgraded to electric forklifts, which reduce the fuelconsumption caused by traditional forklifts and e?ectively minimize greenhouse gas emissions.Note: The statistical caliber of electric power is Qing Shui Yuan, Tongsheng Environmental, Qingyuan Water Treatment, Ande Technology, andShuiyunzong
Energy TypeUnit2022 data2021 dataElectric powerKWh48,568,932.0037,010,402.51
Water Resource Management
Note: The statistical caliber of water consumption in o?ce is Qing Shui Yuan, Tongsheng Environmental, Qingyuan Water Treatment, Ande Technol-ogy, and ShuiyunzongThe statistical caliber of water for production is Qing Shui Yuan, Qingyuan Water Treatment, Ande Technology, and Shuiyunzong
Type of water useWater consumption in o?ce
Water for production
Unitm3m3
2022 data50,432.30460,104.05
Qing Shui Yuan vigorously promotes water conservation, improves the e?ciency of water resources utilization, actively implementswater conservation procedures in all aspects of production and operation, reinforces water conservation propaganda work, and formsa good atmosphere for water conservation throughout the Company.
The Company must implement "new insteaf of old" principle when building the expansion and technical reformprojects of the old products, and solve the "three wastes" of the old and the new together, so as to increaseproduction without increasing pollution and not to produce new sources of pollution.
The solid waste generated during production should be comprehensively utilized as much as possible and therest would be emitted after haarmless treatment. For temporary storage, the space must be closed up to preventleakage.
The recyclable “three-waste” resources and excess heat should be utilized as long as it is technically feasibleand economically reasonable. The utilization rate should be higher than 80%. Available tail gas generated duringproduction should be recycled or disposed, and shall not be directly discharged;
We hire a third-party organization to regularly monitor the Company's "three wastes" emissions and the indica-tors of sewage and clear water at each stage of the sewage treatment station occasionally, to grasp the concen-tration of pollutant emissions and total emissions of the enterprise, and ?ll in the environmental protection statis-tics on time and accurately.
Making progress in technological innovation and comprehensive utilization, and improve management tocompletely eradicate any form of leakage, so as to eliminate or reduce “three wastes” in the productionprocess.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTHOMELAND PROTECTION
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
2022 Annual Hazardous Waste Plan Schedule
Waste Name
Waste Type
HarmfulSubstanceName
PhysicalCharacteri-stics
HazardousCharacteri-stic
PlannedProduction
for
2022 (ton)
ActualProductionin2021 (ton)
Source andProductionProcess
Plan to reducethe anount ofHazardous Waste
OrganicphosphineSpentactivatedcarbon
Wasteorganicphosphine/HW37
SolidToxic
141.50
93.12
Decoloriza-tionprocess
Enhanceprocess control,and reduce the
use ofdecolorizing
agents
Usedengine oil
HW08Mineral oilLiquidFlammable
60.36
Equipmentinspection
andmaintenance,inventoryclearanceprocess
Improveequipmentmaintenance
Used ?ltergauze
Wasteorganicphosphine/HW37
Organicphosphine
SolidToxic
0.500
Decoloriza-tionprocess
Enhance processcontrol,and reduce use ofdecolorizing
agents
SludgeHW37
Organicphosphine
SolidToxic
84.48
Waste watertreatment
Enhance thecontrol over thewastewatertreatment process,appropriatereduction in theuse of phosphorusremoval agents
Phosphorousslag
Wasteorganicphosphine/HW37
Organicphosphine
SolidToxic
Phosphaticslaggenerationinchlorinationcontainer
Improve the quality of outsourcedyellowphosphorus
In 2018, the Company completed the Qingyuan Water Treatment annual capacity of 180,000 tons of water treatment agentexpansion project environmental impact report" and obtained the environmental assessment approval from Jiyuan EcologicalEnvironment Bureau in September. According to the requirements of the EIA , the Company strictly implements the environmen-tal protection measures of the project, and treats the external pollutants such as exhaust gas, waste water, noise and solid wasteto meet the speci?ed emission requirements.At the end of 2021, the trial production of the annual production capacity of 180,000 tons of water treatment agent expansionproject was completed and obtained the safety production license issued by the Henan Provincial Department of EmergencyManagement. [No.: (Henan U) WH [2021]0004].According to the requirements of the emission permit of Jiyuan City Ecological Environment Bureau, Qingyuan Water Treatmenthas prepared an environmental self-monitoring program at the Hu Ling branch.
EIA and emissions permit management
The Company has always practiced diligence and frugality, opposed extravagance and waste, advocated low-carbon life, andeliminated corruption in o?cial activities and transportation travel.·Paperless o?ce:
The Company promotes short meetings and video meetings toreduce the printing of paper documents·Water and electricity conservation:
The Company prohibits long-term standby operation of o?ceequipment, “daytime light”, “long-time light”, and“long-time running water”.·Reduce elevator usage:
The Company encourages to take the stairs rather than takethe elevator below 3rd ?oor.·Garbage classi?cation:
Dry batteries are recycled separately, and recyclable wastesuch as waste cartons and cans are categorized for recycling.
Green O?ce
Environmental Training
According to the "Environmental Protection Training and Education System" developed by the Company, new employees must betrained in safety and environmental protection knowledge before they start working in the factory, all the employees are trained inenvironmental protection at least once a year. In 2022, the Company organized six training programs in environmental protection. Thetraining covered "Environmental Protection Law of the People's Republic of China", "Air Pollution Prevention and Control Law of thePeople's Republic of China", "Water Pollution Prevention and Control Law of the People's Republic of China Law on Prevention andControl of Environmental Pollution by Solid Waste" and "Measures for the Management of Hazardous Waste Transfer". By learningenvironmental protection laws and regulations, employees understand and consciously comply with the relevant provisions of thestate, the environmental protection behavior in daily production activities and improve the awareness of environmental protection.
① National laws and regulations, as well as the rules and regulations of higher authorities
② Knowledge of safety and environmental protection
③Knowledge about the hazardous characteristics of the materials
④Basic knowledge about the Company’s emergency response plan and accident prevention
⑤Operation procedures for facilities and equipment
⑥Typical cases of safety and environmental protection accidents
Trainingcontent:
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTHOMELAND PROTECTION
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Employee StructureEmployee RecruitmentEmployee DevelopmentEmployee WelfareEmployee CareEmployee Occupational Health & SafetyEmployee RightsEmployee Democracy
Sustainable
employment
Qing Shui Yuan strictly abides by the national laws and regulationson employment and labor rights protection, ?rmly opposes the useof child labor employment and forced labor, keeps optimizing theemployee structure, and increase sta? motivation whilesafeguarding their legal rights and interests, e?ectively enhancingthe cohesion and sense of belonging of employees.
SDGs
The Company continuously optimizes the structure of its employees to achieve a reasonable distribution of employees in termsof gender, age and education, and to e?ectively build a diversi?ed workplace system. As of the end of the reporting period, thetotal number of employees in the Company's workforce was 911, and the ratio of male to female employees was 6:3.
Employee Structure
Employees are the cornerstone of the Company and the most valuable asset. It is important for the Company to give full respectto the employees and establish a comfortable environment for them. Therefore, Qing Shui Yuan builds a community of corporateemployees' destiny and insists on the concept of relying on employees for development, developing for employees and sharingthe achievements with employees. We e?ectively protect the rights and interests of employees, through the signing of collectiveand individual labor contracts, the establishment of a comprehensive human resources management system, to ensure thatemployees have equal opportunities for job promotion, and equal pay for equal work for male and female workers.The Company strictly abides by the relevant laws and regulations including the Labor Law of the People’s Republic of China and SpecialProvisions on Labor Protection of Female Sta and Workers. We ?rmly protect the legal rights and interests of our employees, providematernity allowance for female employees, strictly prohibit the employment and use of child labor, resist all forms of forced labor,provide equal employment opportunities and labor security for employees of di?erent nationalities, ethnicities, races, genders, ages,religious beliefs and cultural backgrounds, and avoid discrimination in employment. In 2022, 0.2% of our employees is ethnic minori-ties.The Company implements a salary policy that closely links labor compensation with economic e?ciency, labor e?ciency andpersonal performance. The total amount of employee remuneration is closely related to the operating e?ciency of the Company.An internal communication platform has been set up to actively listen to the opinions and suggestions of employees and createa good working environment for them.
Employee Recruitment
Qing Shui Yuan is committed to building talent teams at di?erent levels, and continues to promote the standardization andnormalization of sta? learning and growth. We provide internal teaching, continuing education, school-enterprise cooperationand other diversi?ed ways to fully mobilize the enthusiasm of sta? learning, and constantly optimize the sta? knowledgestructure, steadily improve the level of sta? skills, and vigorously consolidate the construction of the talent team. Ultimately, theenterprise and the sta? should grow together.The Company focuses on management and development strategy, scienti?c planning and allocation of human resources. Wewill always adhere to the talent strategy, improve the talent management system, "select, train, employ and retain" people morescienti?cally, and enhance the comprehensive competitiveness with talent as the core. In 2022, there were 161 training sessionswith a total of 9,100 hours of training.
Employment Development
Case 1: In 2022, we had ?ve training sessions for middle and senior managers and reserve cadres, with a total of1,160 hours of training. The Company expects that the training will further enhance the self-discipline and manage-ment awareness of the personnel who perform their duties, and improve their ability.Training on organizational capacity building
Training TopicsThe Road to Sustainable Growth of “Midea”
Total
New measures for accelerating theconstruction of a uni?ed national marketGrasping the new development stage, implementing
the new development concept, building a newdevelopment pattern, and promoting high-quality
developmentBuild a team of pro?table expert managers and
business leaders
Total Training Duration
/Hour
1,160
Training Duration
/Hour
Number of
Trainees
Total sta?
MaleFemale
College degree or below
Master’s degree and aboveBachelor’s degree
Education Level
Production sta?Financial sta?
Sales sta?Administrative sta?
Technical sta?
Other
Professional composition
100，10.98%30，3.29%
151，16.58%
76，8.34%
517，56.75%
37，4.06%24，2.63%251，27.55%
636，69.81%
100.00%
80.00%
60.00%
40.00%
20.00%
0.00%
ExecutivesMid-level and junior sta?
33.81%
33.15%
66.85%
4.64%
95.36%
66.19%
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTSUSTAINABLE EMPLOYMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Marketing training
Case 2: The sales team is an important part of the Company and serves as a "bridge" between the Company and itscustomers.Training for sales sta? is essential for the Company. In 2022, the Company conducted training for the salessta? 3 times, with a total duration of 1,422 hours.Speci?c training on improving the
skills for the sales of industrial
productsTraining TopicsTraining on key clients relationship
management and maintenance
Training on the sales accountcollection techniques
Total
Total TrainingDuration/Hour
1,422
Training Duration/Hour
Number of Trainees
Employee Welfare
In 2021, Qing Shui Yuan established theimplementation of the ?rst phase of theESOP with a total of 5,002,067 shares,accounting for 2.01% of the total sharecapital of the Company at that time.Through the implementation of theESOP , employees became shareholdersof the Company, enhancing the connec-tion between the core team and theCompany and stimulating the enthusi-asm and creativity of employees. On theother hand, it improved the corporategovernance structure and contributedto the bene?t sharing mechanismbetween employees and shareholders.
Employee StockOwnership Plan (ESOP)The development of employee welfare programs helps to bringemployees closer together and strengthen their sense of belonging.The Company has established a perfect salary management systembased on the relevant national laws and regulations, combined withthe Company's corporate culture, external environment and otheractual conditions. We use di?erent salary strategies for di?erentdepartments, di?erent positions and di?erent personnel to seek stablelabor relations. At the same time, the Company strictly implements thenational regulations on social insurance, pays housing fund, handlessocial insurance such as pension insurance, medical insurance, unem-ployment insurance, work injury insurance, maternity insurance, etc.,and pays all insurance fees in full and on time every month. Accordingto the national maternity and insurance policy, we strictly guaranteefemale employees to enjoy maternity insurance and all the legal rights,protect the basic life of female employees during maternity leave. QingShui Yuan has set up the sta? canteen, sterilize the tableware on thedaily basis, strictly focus on food safety , and pay attention to the needsof employees. We insist on the concept of "eat healthy, eat at ease, eatcomfortably" and provide a variety of pasta options for employee.
Supplementarycommercial insuranceSupplementary pensioninsuranceHoliday bene?tsWomen’s DayBirthday giftsMeal allowanceActivity room
Provide personal accident insurance for employeesrovide corporate pensions for employeesProvide Spring Festival and Mid-Autumn Festivalbene?ts for employeesProvide a half-day holiday and a holiday allowance ofRMB 150 for every female employeesEvery employee receives a birthday cake card from the trade union in the month of theirbirthdayProvide meal allowance for employeesThe table tennis room, yoga room and golf room are open to all the sta? for free
Case: Employee canteen
The Company insists on the core value of people-oriented, cares about the work, life, health and safety of employees, devotesto building harmonious labor relations, actively helps employees in di?culties, and makes employees feel the warming care ofthe Company.
Since the activity was launched, the Company has issued a series of documents such as the Notice on Oering Tai Chi Boxing Class, Noticeon the opening Tai Chi Fitness Activities class, Notice on Further Standardizing Tai Chi Fitness Activities, and Notice on Conducting GroupedManagement over Tai Chi Fitness Activities. Comfortable and light Tai Chi clothing has been provided for the trainees. The Company'ssenior and middle leaders set an good example by their actions, driving hundreds of employees in Jiyuan area to practice Taiji everymorning, and regularly carry out exchange meetings and issue honorary certi?cates to outstanding Taiji students.More and more people bene?t from persistent Tai Chi training. Being more energetic and sturdier, the employee can do their workbetter. They seek joys in sports, keep ?t in happiness, and work in good health.
Employee Care
We highly concerned about the mental health of the sta?,Qing Shui Yuan established “Tai Chi Center Qing Shui YuanBranch” in July 2021, starting to carry out a full-sta? Tai Chi?tness activity. This activity aims to enrich the spare time ofemployees, through Tai Chi exercise to strengthen the body,healthy life and happy work. Wang Zhiqing, Chairman andPresident of the Company, said to the sta?, “Youth islimited,so does life. Keep up the e?ort.” I hope that all thesta? members will lead a healthy life after work.”
Employee Mental Health
Case 1: At “Tai Chi Time”, employees did exercisetogether.
Employee Welfare List
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTSUSTAINABLE EMPLOYMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The Company has ISO45001 occupational health and safety management certi?cation, and strictly abides by occupationalhealth laws and regulations, and continuously improves the occupational health management system. From leadership andresponsibility, laws, regulations and standards, occupational health "three simultaneous", occupational health training andeducation, we carry out comprehensive health management to achieve long-term occupational health goal.The Company regularly provides physical examinations for the employee, and gives various lectures on health knowledge toe?ectively protect their physical and mental health. We formulate and constantly improve relevant emergency plans, strengthensafety education and disease control for all employees, and improve the working environment and living conditions of employ-ees. By doing regular inspection, physical examination and education and training, we can minimize the hidden health andsafety hazards in the working environment and protect the health and safety of the employees.
Employee Occupational Health & Safety
Employees are an important part of the Company, and Clearwater fully respects and protects all the legal rights and interests ofemployees. We cherish the life, health and safety of employees, respect labor, respect knowledge, respect value creation, andstrictly abide by the Labor Law of the People's Republic of China, Labor Contract Law of the People's Republic of China, Regula-tions on the Implementation of the Labor Contract Law of the People's Republic of China, Social Insurance Law of the People'sRepublic of China and other relevant laws and regulations to protect the legitimate rights and interests of employees.The Company constantly improves the management system related to employment and welfare, implements the labor contractsystem, establishes a standardized labor relationship with employees, speci?es the rights and interests that employees enjoyand the obligations they should ful?ll; strictly implements the national regulations on social insurance including the ?ve basicinsurance and housing fund.
Employee Rights
The Company has a well-established system of sta? representative assembly, standardized democratic management andsupervision mechanism, which protects the right to information and participation of the sta? according to the law. Over theyears, the Company has taken the protection of employees' rights and interests as the cpre of its work, strengthened the mainte-nance function, innovated the means of maintenance, listened extensively to the opinions and suggestions of employees, paidattention to the ideological dynamics, sent warmth to employees to solve their problems, and deepened democratic manage-ment. In 2022, the ?rst four sta? representative conference were held to collect the opinions of employees, care and pay atten-tion to the reasonable needs of employees.In addition to the sta? representative conference, the Company has also established a perfect factory a?airs disclosure systemand set up a factory a?airs disclosure working group and a supervision group. The working group is responsible for undertakingthe speci?c issues of factory a?airs disclosure and making explanations or solutions to the employees; the supervisory group isresponsible for supervising the timing, authenticity and legality of the procedures to ensure whether the feedback from thepublic is resolved.The leadership actively listens to the sta?’s voice, implements their wishes, and protects their rights and interests, makingprogress to achieve democratic management of the Company.
Employee Democracy
Case 2: A learning and exchange activity was held to mark the ?rst anniversary of “Qing Shui Yuan - Tai Chi - Health” TaiChi Fitness Program. The Tai Chi trainees of Qing Shui Yuan shared their experience of the practice accumulated over thepast year and expressed their gratitude to the warm family of Qing Shui Yuan for providing a platform for employees toshow their talents. We cares about the physical and mental health of the employees. One hour of exercise every day allowsthem to maintain 50 years of health and lead a happy life for a lifetime.
The Company always upholds the purpose of "caring for employees with heart and warming them with love". In 2022, we held the"Sending Warmth" sta? care activities and visited more than 20 employees in need.Employee Assistance
Case: The Company leaders visited workers in di?culty
Case: The sta? attended the ?rst four sta? representrative conference
Labor contract signing rate：100%Employment of child labor and forced labor：0
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTSUSTAINABLE EMPLOYMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Qing Shui Yuan has always been committed to a sustainable corporatedevelopment path. While creating economic value, we actively contributeto society and participate in various social welfare charity projects. Over theyears, Qing Shui Yuan has actively participated in poverty alleviation,disaster relief, helping the elderly and disabled, epidemic prevention andcontrol, new rural construction and other public welfare projects.
Caring for
Society
SDGs
Assistance in Education“Anti-Illegal Fundraising”Public Welfare ActivitiesCharitable DonationsFighting the EpidemicProspect of Public Welfare
Qing Shui Yuan insists on helping the national education cause and contributing to China's education. The Company set up a specialfund of CNY 500,000. On September 9,the thirty-eighth Teachers' Day, the “Jiyuan Charity Federation - Qing Shui Yuan Fund” waslaunched and the freshmen scholarship donation ceremony was held in the lecture hall of Qing Shui Yuan. This activity issued scholar-ships for 28 freshmen with the amount of CNY 140,000.Wang Zhiqing, chairman of the board and president of the Company, pointed out that donating to schools and developing educationis a great contribution in the present time and a great bene?t in a lifetime. To ful?ll its social responsibility, Qing Shui Yuan is duty-boundto support it. The Company will regulate the management of the fund and improve the transparency of the use of the fund. Under thesupervision of the General Association of Charity, the charity fund is well managed and well used to ensure that the funds are used forthe most critical educational purposes and giving full play to the e?ectiveness of the use of funds.
Assistance in Education
Qing Shui Yuan takes the responsibility of protecting the environment and building a beautiful China. As a listed Company, weactively participates in social public welfare while striving to achieve its own green development, good corporate citizenship,carry out green public welfare activities with corporate characteristics, adhere to development of human and nature, and builda long-term relationship with society. In 2022, Qing Shui Yuan held public welfare activities with a total duration of 146 hours.
Public Welfare Activities
In response to the Henan Provincial Securities Regulatory Bureau's document "Notice on the Publicity Month of Preventing IllegalSecurities and Futures in 2022", the Company held a seminar on ?nancial fundamentals from May 1 to May 31 called "PublicityMonth of Preventing Illegal Securities and Futures". The seminar enabled investors to fully understand the characteristics and typesof illegal securities activities and the channels to protect their rights, and promote the correct investment concept. For illegalfund-raising and illegal securities business activities, we carried out "prevention of illegal and non-permanent" publicity andinvestor risk education.We also intruduce some cases to further enhance investors' ability to identify and prevent illegal securitiesactivities.
“Anti-Illegal Fundraising” Publicity
Pay high attention to and actively learn “anti-il-legal fundraising and securities operation”:
The Company arranged and studied the documentsfor the employees to fully understood the severityand danger of illegal securities and futures activitie.
The sta? was learning relevant documents
Actively deployed to carry out the “anti-illegal fundraising and securities operation” publicity:
We arranged the publicity in both o?ine and online mode. People can learn di?erent cases online through our o?cialwebsite and o?cial wechat account. On the other hand, we take various ways to conduct publicity in person whileimproving the internal training for employees.
Safety Manual for “Anti-Illegal
Fundraising” Publicity
publicity by volunteersPublicity slogans appeared on t
he screen
Case 1: On the morning of March 6th, 2022, Han Guangwu, Secretary of the Party General Branch of the Company, leda team of Party members to carry out a voluntary tree-planting activity at the “Internet+ Voluntary Tree-PlantingBase”, Sanhe Village, Sili Town. The Company takes practical action to implement the concept of green developmentof the enterprise and ?rmly take the road of ecological and green development.
Assistance in Education“Anti-Illegal Fundraising”Public Welfare ActivitiesCharitable DonationsFighting the EpidemicProspect of Public Welfare
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTCARE FOR SOCIETY
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Case 2: Blood donation—On June 17th, 2022, the Company arranged more than 50 sta? members to participate in ablood donation activity.
Case: On September 1, the Company encouraged employees to participate in various charitable activities to deliverlove and warmth to the poor and disadvantaged groups. We donated more than CNY 80,000 to the "99 Public WelfareDay".
Case 1:Since late April 2022, the Company quickly arranged to voluntary supply sanitizer to some governmentdepartments in Jiyuan city. Since April 27, we divided into several groups to deliver disinfection supplies to medicalinstitutions such as Jiyuan Epidemic Prevention and Control Command, Jiyuan Covid Treatment Center, Jiyuan ChineseHospital. In addition, we also donated 84 disinfectant solution to 38 di?erent institutions such as Jiyuan No. 1 MiddleSchool, large and medium-sized enterprises,economic and technological development zones etc.
The development of the enterprise cannot be separated from the support of the society. The Company is keen to participate insocial welfare activities, and always believes that the development of public welfare activities is not only the embodiment ofcorporate social responsibility, but also an important move to build a good Company image and enhance the pride of employ-ees. With the continuous development and growth of the Company, we have become more and more determined to ful?ll ourresponsibilities for social welfare. Qing Shui Yuan actively takes social responsibility through charitable donations, publicwelfare activities and other forms of participation in public welfare. In 2022, the Company's charitable donations statistics are asfollows:
Charitable Donations
During the reporting period, Qing Shui Yuan took social responsibility and responded to the work of the government, gatheringall parties to ?ght the epidemic, donating medical supply and providing assistance to the medical workers on the front line of?ghting the epidemic.
Fighting the Epidemic
SN
Program ContentJianbei VillageJiyuan Charity Federation - Qing Shui
Yuan FundHenan Fund for Justice and Courage
Charity Day of ChinaCharity Day of ChinaAssistantship to College Freshmen
in 2022Financial Aid to the Construction of
Zhicheng No.3 Middle School (Zhicheng Town Liuyang School)
PayeeJiyuan Charity FederationJiyuan Charity FederationJiyuan Association for Justice and
CourageJiyuan Charity FederationZhicheng Town Charity Workstation
CNY 5,000 was o?ered in cash to
each of 28 studentsHenan Youth Development
FoundationTotal
Amount (CNY)
50,000500,000
30,000
40,000
17,690140,0002,000,0002,777,690
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTCARE FOR SOCIETY
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The charity work of Qing Shui Yuan is guided by the spirit of the Fifth Plenary Session of the 19th CPC Central Committee, practic-ing Xi Jinping's new development concept, highlighting the theme of high-quality development, doing the best we can andseeking victory in stability. We will enhance our responsibility of poverty eradication, promoting the rural revitaliztion strategyand charity development.
Embracingthe new stage
The Company should implement the spirit of the Fifth Plenary Session of the 19th CPC CentralCommittee, combined with charity, grasp the implementation of the new ideas.
Improveproject quality
For the culture, assistance, solicitude, entity and platform-related charity projects, the Company iscommitted to further improving and standardizing the implementation procedures, implementingthe management system, strengthening the supervision system，so as to enhance charity quality.
Strengthening
thefundraisingmechanism
For the fundraising work, the Company combines “o?ine” with “online” and combinescharitable fund raising with charity regulation publicity, raise funds by law, and implement aquarterly fundraising system.
PromotingOrganizationalDevelopment
O?ering voluntary service for charity: the Company o?ers voluntary service for charity accordingto the requirements for stability, pragmatism and development, and actively provides assistancefor poverty regions.
Deepening
charitypublicity
Summarize the experience of running newspapers and stations, strive for innovation and devel-opment in text improvement, editing and quality improvement, set up advanced models, andpromote the spread of charity culture.
Jointly driving
charitydevelopment
We worked closely with the Shaanxi Representative O?ce of World Vision to implement the "Child-basedRegional Development" program in Yang County for the next four years. We are learning from the experience ofthe "Happy Home" project in Yang County and expanding the scope of the "Preschool Education for Children"project. We also strengthen friendly relations with charitable associations in sister cities and cooperate with theCivil A?airs Bureau, Poverty Alleviation O?ce and Veterans A?airs Bureau of the municipal government toimprove the relevant work.
Case 2: From November 16 to 18, 2022, the Company arranged vehicles and personnel to load about 15 tons ofdisinfectant solution in 32 batches and delivered them to towns, street o?ces, economic development zones,schools, and medical institutions etc.
Prospect of Public Welfare
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTCARE FOR SOCIETY
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Qing Shui Yuan picks suppliers in a high standard, creates a solidand high-quality supply chain, ensures product quality, and main-tains good relationships with customers to provide excellent prod-ucts and services.
SDGs
Quality
Management
Supply ChainProduct Quality ControlCustomer Orientation
In order to ensure the quality of raw materials and quality of the our products, we strictly formulates the supplier management system,standardizes the supplier access mechanism, strengthens the supplier inspection process control, and enhances the supplier databasemanagement and online platform optimization. To meet the Company's production and operation needs, we fully integrate the conceptof social responsibility into the supply chain management.In terms of channels, the Company collects supplier information through the network, peer or supplier recommendation, public inquiry,supplier initiative contact, search on digital platforms, etc.We selects suppliers under the supplier selection standards.
Supplier Management System
For the sustainability and the standardization of the procurement process, the Company has formulated a procurement managementsystem and established a digital procurement platform in order to clarify procurement responsibilities. We enhance the supervision andmanagement of the procurement process of materials, engineering projects and services, etc., while controlling the production andoperation costs.
Procurement Management System
The Company adheres to the business philosophy of value sharing and collaborative development, and follows the principles of equalityand mutual bene?t, complementary advantages, honesty and credit, mutual promotion and common development. We establish stable,mutually bene?cial and win-win relationships with excellent suppliers to create high-quality development of the supply chain.
Material CodeStandards
Procurement ItemClassi?cation
Procurement Plan
Management
ProcurementImplementation
Management
Procurement
Tracking
ProcurementSettlementManagement
ProcurementProcessSupervisionProcurement Management System
Standardizationof material codesand names
Avoid misde-scription ofmaterialspeci?cations,models andother informa-tion, which maylead to purchas-ing errors
Procurementitems classi?ca-tion: raw andauxiliarymaterials,productionequipment,packagingmaterials,purchasedproducts, spareparts, o?ceequipment ando?ce supplies,engineeringproducts,services, laborand welfare, etc
Daily demand,temporarydemand,engineeringdemand, laborservice demand,o?ce demand,etc
Procurementactivities notincluded in thescope of bidand specialprocurementare uni?ed inthe digitalprocurementplatform forsourcing andprice compari-son
Procurementmanagersfollow up onsuppliers'deliveryprogress inaccordancewith theprocurementcontract oragreement anddemand time
All procure-ment opera-tions shouldobtain legaland validspecialinvoices, andpromptlyhandle theaccountingprocedures
Inspection andAudit Depart-ment needs tomonitor andcheck theprocurementprocess
Easy to catego-rize the nature ofprocurementitems
Scienti?cdemandplanning enablesbetter procure-ment negotia-tions and allowssuppliers tosupply in anorderly manner
The digitalprocurementplatformfacilitatesinformationsharing betweenthe purchaserand the supplier
Avoid supplydelays a?ectingnormaloperations
Easy to registerin the accounts
Enhance thestandardizedmanagementof procurementprocedures
For supplier evaluation, Qing Shui Yuan also includes the supplier social responsibility in the assessment, as an important part ofsupplier sustainability assessment. We mainly focus on the supplier's integrity and employee human rights protection. The supplierevaluation system has achieved the goal of procurement cost reduction while monitoring suppliers to improve service quality.During the reporting period, the Company evaluated 488 suppliers, including 184 excellent suppliers, 292 quali?ed suppliers, 11quality-pending suppliers and 1 unquali?ed supplier.
Supply Chain
Supplier Evaluation SystemQing Shui Yuan has established a supplier evaluationsystem, which is used to annually evaluate all suppliers .The evaluation includes, but is not limited to, the quali?ca-tion certi?cate, the price of the products supplied, thesettlement method (advance capacity), the timeliness ofdelivery, product quality, service situation etc. We also dothe classi?cation and grading management for suppliers.
Qing Shui Yuan always insists on providing customers with environment-friendly and resource-saving high-quality products. TheCompany continuously optimizes its quality management model, actively obtains safety certi?cates for water treatment chemicalproducts, and provides a guarantee for the safe operation of the product chain from the perspective of R&D, procurement, qualityinspection and after-sales.
Product Quality Control
Product Quality Control System
The Company has established a complete quality management system. It applied to the wholeprocess of product development, raw material procurement and product production. The Companyhas passed ISO9001 quality management system certi?cation, and the main water treatment agentproducts have obtained NSF certi?cation and EU REACH certi?cation registration.In the research anddevelopment process, the Company strictly regulates the establishment, implementation, veri?ca-tion, review and con?rmation of product development. In the procurement process, the Companyinsists on using high-quality raw materials and strictly controls the quality of raw materials. In theproduction process, the Company has been improving the quality and stability of its products byimproving the level of automated production of water treatment agents.The Company is always concerned about the health and safety of customers and has established a product recall procedure. Whencustomers give feedback about product problems which endanger health and safety, the products will be recalled in time andinspected according to the problems proposed by customers. The Company will organize technical personnel to improve theprocess where the problem occurred and develop a prevention plan. At the same time, the entire production process will bechecked purposefully to prevent the recurrence of similar problems.
Product Recall System
Record thecontenof theclaim
Send theinformation to therelevant sales sta?and departmentleader
The sales sta? ?llsin an accidentform
contact theresponsibledepartmentaccording to thetype of accident
the responsibledepartmentinvestigates thecause of theaccident
To negotiatesolutions andcompensationplans withcustomers.
Inform client ofthe cause of theaccident
The accident form should include an accident summary and the responsible department
If involve quality problems:
The laboratory checks the retained samples for workshop self-inspectionand retraces the production records
EngineeringMaterialsServicesSupplierclassi?cation
ExcellentTBDQuali?edUnquali?edSupplier
level
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTQUALITY MANAGEMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The Company has established a customer complaint management process to achieve full tracking and timely feedback to ensurethe customer experience
Customer Complaint Mechanism
RegionalManager
Customer Complaint
Technology DepartmentWarehouse
Regional Manager
CustomerO?ce work
Deputy General Manager
in charge
Production Department
Fill in
Feedback
Handling method
Yes
an customer complaint
handling form
YesYes
ApprovedApprovedArchivingArchiving
Feedback
Problem?nding
SalesDepartment
customer complaint ?ow chart
Qing Shui Yuan focuses on brand building and continuously improving product quality, taking reputation of brand and productquality as an important way to develop market and promote enterprise development. The timeliness and stability of the Compa-ny's supply to downstream customers has earned the Company the trust of domestic and foreign customers. We have estab-lished long-term and stable customer relationships with a number of internationally well-known companies, which also lay thecustomer foundation for the Company's future sustainable development.Qing Shui Yuan has systematized and standardized the management of customer service by formulating the "Customer ServiceSystem" to regulate the service of each post in the sales process and strictly control the pre-sale and post-sale gates of theCompany's products.The Company has a perfect customer communication mechanism, through telephone, e-mail and other communicationchannels and methods to ensure the timeliness and e?ectiveness of communication and feedback. We solve customer problemsand meet customer needs in a timely manner.
Customer Service SystemQing Shui Yuan takes customer demands as the guide and insists on providing comprehensive services to customers whileattaching great importance to customer satisfaction with the services. We are committed to bringing superior quality productsand services to our customers.
Customer Orientation
Number of Questionnaires Distributed
Class-A customersClass-B customersClass-C customers
Class-D customers
Collection Rate
77.80%
81.30%
81.30%
98.30%
Customer Satisfaction
100%
98.30%
98.20%
98.30%
Through customer satisfaction survey, the Company analyzed various customer dissatisfaction items roll by roll and proposedsolutions to put the purpose of improving customer service experience into practice.
In 2022, Qing Shui Yuan distributed a total of 130 customer satisfaction questionnaires and collected 101 of them, with acomprehensive recovery rate of 77.69% and an average customer satisfaction rate of 98.70%.
Customer Satisfaction
Qing Shui Yuan enhances the management of each information system to ensure the security of the information system. We hasestablished the information security system according to the Law of the People’s Republic of China on Keeping Con?dentiality ofState Secrets, Interim Provisions on Computer Information System Management, Regulations on Con?dentiality Management ofComputer Information Systems for International Networking and other relevant regulations from the information managementdepartment. The system is divided into eight levels: computer equipment security, electronic data ?le security, software securitymanagement, information system data security, password security management, network security management mechanism,information system security and con?dentiality mechanism and information security response mechanism. The system protectsthe information security of customers and guarantees the privacy of customer information in many di?erent ways.
Customer Information Security
Case: Promoting reform for gradual optimizationComments and feedback from the satisfaction surveyThe design of the packaging appearance should beenhanced, and there is damage to the chemical packaging
drums during long-distance transportation.
The Company immediately gave feedback to thetransporter, while strengthening the protection of
the product appearance.Customers are dissatis?ed with the Company's imageevaluation due to less communication with other parties
The Company will improve customer communicationand invite customers to make site visits so that theycan have a comprehensive understanding of the Company.
Supply is not delivered on time.
The Company will change the scale of periodic stocking,
reasonably increase inventory, and maximizetransportation e?ciency to ensure timely meet
customer demand.
Customer OpinionCompany Feedback
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTQUALITY MANAGEMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
SDGs
Innovative
DevelopmentThe Company insists on independent innovation as the ?rst driving force ofthe enterprise. We raise investment in innovation, build technology platform,introduce outstanding talents, stimulate research vitality and pay attentionto intellectual property protection. The Company follows the inevitable trendof digital development, runs through the path of product informatization,and creates an intelligent cloud management platform.
R&D SystemR&D Achievements
R&D System
Qing Shui Yuan and the Chinese Academy ofSciences Ecological Environment Reasearch Center
cooperate to develop
Henan International Joint Laboratory of
Intelligent Water Treatment System
Henan Postdoctoral Innovation
Base
In 2019, Qing Shui Yuan planned to build a postdoctoral innovation baseIn 2020, Qing Shui Yuan ?led a project applicationIn October 2021, Qing Shui Yuan established a postdoctoral innovation basewith the approval of the Department Human Resources and Social Securityof Henan Province according to No. [2021] 92 document
In September 2022, Qing Shui Yuan Chemical Class was o?cially launched, and a total of 57 employees were trained andstudied by the Company. Classes are held on Mondays, Wednesdays and Saturdays, with courses including Fundamentalsof Industrial Chemistry, Chemical Safety Technolog, Chemical Unit Operation Technology, New Yugong Core Literacy, ChemicalDrawing and CAD, Introduction to Mao Zedong Thought and Socialist System with Chinese Characteristics, etc. The purpose ofthis program is to create a high quality, multi-level talent team, establish a sustainable talent team system, and providesolid talent support for the Company's technology development.
Case: R&D training
The Company pays attention to the recruitment and training of R&D team, with 112 R&D sta?. By cooperating with the EcologicalEnvironment Research Center of the Chinese Academy of Sciences, the Chinese Academy of Environmental Sciences and other domestic?rst-class research institutes and universities such as Dalian University of Technology and Tongji University, a R&D team with rich experi-ence and creativity has been formed. Qing Shui Yuan has established a scienti?c R & D management system, motivated R & D sta?through performance assessment, and focused on the conversion of scienti?c and technological achievements to encourage innova-tion and creativity.
R&D Team
Below 30
30 ~40
Above 40
Total number of team members
R&D Team
20222021
Qing Shui Yuan focuses on the construction of an innovative R&D system and has standardized the management of innovative projectresearch. We strive to form an excellent R&D team and create products that lead the industry.
R&D System
R&D Project Management
System
Industry-University-ResearchCooperation Management
SystemR&D Personnel Performance
Appraisal System
Implementation of scienti?cand technological achievementsand incentive reward measureIntellectual PropertyManagement System
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTINNOVATIVE DEVELOPMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
The Company takes the protection of intellectual property rights seriously and has formulated the relevant policies and work plans forthe management of intellectual property rights of the Company. We have formulated the "Intellectual Property Management System",set up a special intellectual property management department and formed an e?ective working procedure. The Company enhancesthe popularization of laws and regulations related to intellectual property protection. For the personnel of the research project team,they are required to sign contracts with clear provisions on intellectual property rights to avoid the information recipient from disclosingthe information within the scope of intellectual property protection, and they need to bear the relevant responsibilities in case of breachof contract.
Intellectual Property Management
As of December 31, 2022, the Company had applied for 20 invention patents, 84 utility model patents and 3 design patents. Amongthem, 3 invention patents and 3 utility model patents have been issued with authorization letters, and most of them have been put intoindustrialized production.
Patent Technology
R&D Achievements
By increasing R&D e?orts, expanding the types and applications of water treatment agent products, strengthening the innovationcapacity of wastewater treatment projects, and focusing on the development of new green and environmentally friendly watertreatment agent products and wastewater treatment projects, the Company is e?ciently promoting the construction of new projects.Qing Shui Yuan will invest CNY 23,627,600 in research and development in 2022.
Intelligent transformation is the future market trend. As of December 31, 2022, the Company has applied for 16 software copyrights.Among them, the intelligent solution of industrial water system of Water Cloud Trace, which is the key development of the Company, has8 software copyrights.
Invention Patents
A kind of preparation method of green chelatingagent methyl glycine diacetic acid sodium saltWater-soluble quaternary ?uorescent monomers, ?uorescent polymers, and procedures for their preparation
A kind of preparation method of green chelating agent
glutamic acid diacetic acid sodium salt
Utility Model Patents
A pump suction device with air vortex and ?lter
functionA single component membrane water treatment
systemAn intelligent control coagulant dosing device
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTINNOVATIVE DEVELOPMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Projects under researchThe Company insists on researching more environmentally friendly and e?cient water treatment chemicals. We are committed to the development of the environmental protection industry chain. In 2022, the Company's ongoing research projects continue to advanceas follows:
Major R&D Project
Name
Project ObjectiveProject ProgressExpected Goal
Expected In?uence on the Future
Development of the CompanyResearch on intelli-gent coking wastewa-ter treatment processdevelopment system
This project utilizes ultrasonic anaerobic biologicaltreatment technology and multi-stage non-homo-geneous catalytic ozone oxidation technology tocarry out research on coking wastewater treatmentprocess system and big data intelligent system.
This project is of great signi?cance to the develop-ment of new economical and e?cient cokingwastewater treatment process and the realization ofindependent design of coking wastewatertreatment process.
We have completed the construction of the experimental platformfor low-intensity ultrasonic bio-concentration, low-intensityultrasonic anaerobic co-metabolism and non-homogeneouscatalytic oxidation. We derived the optimal conditions for theapplication of low-intensity ultrasound in activated sludgetreatment, and summarized a large amount of theoretical data.
High-salt organicwastewater evapora-tion technology anddevice R&D project
This project aims to develop technology andequipment for complex wastewater rich in salt andorganic matter, so as to boost the Company’s coretechnology to enhance its core competitiveness
Our core technology is gradually formed in the ?eldof industrial complex wastewater treatment. Thisconcept has core competitiveness in the marketcompetitionThe project has been completed with good resultsComplete equipment fabrication and practice to verify the feasibility of
the technology
1.E?ectively solving the key problems of high concentration phenol/am-
monia coupling with strong biological inhibition and low microbialmetabolic rate and long hydraulic retention time. 2.Establishing intelli-gent development system of coking wastewater treatment process,completing independent design of coking wastewater process, signi?-cantly shortening the development time of wastewater treatmentprocess and widening the scope of use of existing processResearch on apolyacrylic acid dirtdispersion agentpolymerizationmethod
This project develops a new polymerizationinitiation system to replace the existing polymerreaction system, using milder polymerizationconditions to prepare a high e?ective content, goodstability and excellent performance of polyacrylicacid scale inhibitor dispersant.
The project has greatly improved the quality of thepolymer products and increased the market share ofthe products.Some of the products have completed R&D and industrialized trialproduction for marketing stage.
By the innovative research on polymerization initiation system, thee?ective content of polyacrylic acid scale inhibitor dispersant is higher,the molecular weight distribution is controlled, and the product stabilityis better.
Reverse osmosis scaleinhibitor for papermill e?uent
The project develops phosphorus-free reverseosmosis scale inhibitor products suitable for RO forpaper mill wastewater.
Increasing product sales and enhancing marketcompetitivenesssThe project has been basically completed and is currently beingpromoted at several customer sites.
The reverse osmosis membrane operates continuously for more than 3months under normal conditions. No signi?cant decrease in waterproduction rate and desalination rate of the equipment, and less than10% increase in feed water pressure.Research on using anintegrated waterpuri?er + ?ber ?lterfor the pretreatmentof reclaimed water inchemical plants
This project proposes to use "integrated waterpuri?er + ?ber ?lter" as a combined processequipment to study its application e?ect in thepretreatment of chemical plant water reuse system.To ?nd out the pretreatment process and equipmentwith good treatment e?ect, high pollution resistantload, low self-water consumption, low backwash-ing water consumption, stable operation and easymaintenance.
The team studied the internal structure of integrated waterpuri?ers and ?ber ?lters currently on the market, analyzed theiradvantages and disadvantages for pretreatment of water reuse inchemical plants, as well as the improvement scheme, andconducted pilot tests in the operation plant. The steel pilot planthas been pilot tested and the e?ect has reached the purpose of thepilot test.
1、Integrated water puri?er has achieved good operation e?ect: the
water quality of the e?uent meets the standard, the device sludgedischarge is smooth and not easy to block, the equipment backwashinge?ect is good, the automation operation is stable and the fault mainte-nance is convenient;
2、Fiber ?lter has achieved good operation e?ect: the water quality is at
standard, the ?lter backwashing e?ect is good, the automatic operationis stable, and the fault maintenance is convenient;
3、Integrated water puri?er and ?ber ?lter are used for treating water in
chemical plants, and they have achieved good operation e?ect: thewater quality of the output is up to standard, the system runs stably, andaccording to the water quality, the best working condition is debuggedand the key operation parameters data is recorded.
The improved combination process can be used formodular production according to the amount ofwater, and the process package can be replicated,i.e., it can help to shorten the project duration andreduce the labor cost, thus cutting down theinvestment cost.
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTINNOVATIVE DEVELOPMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Shuiyunzong Industri-al Internet Platform
Used for online monitoring of the industrial watertreatment system, intelligent dosing, networktransmission, abnormity warning and remotecontrol. It can monitor the operation status of thewater treatment system and implement intelligentmanagement at any time, and innovate thetraditional water treatment service mode, too.
1. At the platform level, the Shuiyunzong Industrial Internet Platform, which
meets the industrial Internet construction standards, has been initiallyimproved and put into application in terms of the layer, Iaas layer, industrialPaas and SaaS layer.
2. At the intelligent terminal equipment level, the Company has developed
more than 10 types of intelligent terminal water treatment equipment fordi?erent customer needs and water quality index testing requirements. TheCompany has the core manufacturing technology of online monitoring sensorsfor the industrial circulating water system, and more than 10 types of waterquality monitoring sensors applied in the industrial circulating water system.
3. It has passed the acceptance inspection by the Provincial Department of
Industry and Information Technology. In 2022, it was identi?ed as an industrialInternet platform of Henan Province.
Improving the existing water quality monitoring sensors andintelligent terminal equipment. Strengthening the construction ofthe Shuiyunzong Industrial Internet Platform, and improving theplatform’s autonomy and intelligence. Performing intelligentoperation and maintenance, and raising the e?ciency of operationand maintenance. Realizing intelligent management over theentire industrial water system, promoting the change of the entireindustrial water treatment industry model, and also promoting thedigital transformation of more industries and driving the intellectu-alization of more industries.
Helps to transform the Company from a traditionalwater treatment service provider to a digital,intelligent service provider, so as to develop a largecustomer base and bring about considerablebusiness prospects. Helps to establish the Compa-ny’s leading position in the ?eld of intelligent watertreatment. Assists the Company in grasping theright speak for the formulation of intelligent watertreatment standards and promoting the intelligenttransformation of the entire industry.Mini Cloud TracerDevice Development
We have designed and developed a small circulat-ing water online monitoring equipment, with onlinemonitoring of water quality indicators andautomatic dosing of water treatment chemicals,and the data can be transmitted remotely.
Small circulating water systems are widespread,and these current circulating water systems havemajor problems or do not have water treatment.The equipment is small, easy to installed and otheradvantages, it can be widely used in these systemsto achieve a large market demand.
The current equipment has started to produce products and has beensuccessfully pilot tested at the site. It has been applied in Jiaozuo,Luoyang, Zhengzhou and other sites with good results.
We have developed and produced a small intelligent watertreatment online testing equipment with low production cost andeasy on-site installation for online monitoring, automatic dosing,abnormal alarm and remote transmission.
Three-parameterdevice performanceimprovement
The project is mainly to improve the accuracy of thethree-parameter equipment testing data.
The three-parameter equipment detects theimportant indexes in circulating water treatmentand adjusts the water treatment plan timelyaccording to the detection data. Avoid the problemscaused by manual testing.
We have established equipment production standards to ensure quali?edproduct production, background processing of testing data, and repeattesting in case of abnormal testing to avoid the probability of abnormaldata. Optimize the testing program, achieve quality improvement and costreduction, and the technically improved equipment has been commercial-ly used in dozens of sites and received good feedback.
After technological improvement equipment monitoring dataabnormal ?uctuation value is less than 20%. Relative deviation:
chloride ion <5%, hardness <5%, alkalinity <5%.
Intelligent dynamicsimulation deviceimprovement
This project is designed to optimize and adjust theparameters of the intelligent dynamic simulationdevice to enhance its stability through technicalimprovement
The development and application of intelligentdynamic simulation test device is the deep integra-tion of arti?cial intelligence technology and Internettechnology applied to the ?eld of dynamic simula-tion test. It has changed the problems of traditionaldynamic simulation test which is time-consuming,frequent operation, labor-intensive, inaccurate dataand high cost.
The project passed the comprehensive performance test and technicalimprovement, completed the acceptance standard of dynamic moldproduction and standardized equipment production. The customer hastried the equipment on site, and the customer has given high evaluationafter application. Based on the application of the site to carry out part ofthe equipment design optimization.
By the technical improvement and renovation of the intelligentdynamic simulation equipment, the equipment is reliable andstable. Through customer applications, valuable comments aremade to further improve the equipment and lay the foundation forequipment promotion.Development of ahigh chloride iondetection device fordesulfurizationwastewater
Designed and developed a high chloride ion onlinewater quality testing equipment.
The control and detection of chloride ions in powerplant desulfurization wastewater is a very importantindicator, and the development and production ofthis equipment has a large market prospect..The current equipment principle prototype has completed testing and is inthe ?eld for trial stage. The main testing unit of the equipment is complet-ed, and the sampling pre-processing equipment is developed.
High chloride ion detection equipment detection accuracydeviation of less than 10%
Single-parameteronline testingequipment develop-ment
Designed and developed a online water qualitytesting equipment that can detect water calcium ionalone, alkalinity alone and chloride ion alone.e.
The current equipment prototype has been completed and passed thetest, the equipment performance is stable and the data accuracy is thesame as the three-parameter equipment.
The abnormal ?uctuation value of the device test data is less than20%. Relative deviation: chloride ion <5%, hardness <5%, alkalinity<5%.
The equipment detects important indicators ofconcern in circulating water treatment, and adjuststhe water treatment plan according to the detectiondata in time to avoid the problems caused bymanual testing. The development of single-param-eter equipment has broadened the choice ofcustomers.
Major R&D Project
Name
Project ObjectiveProject ProgressExpected Goal
Expected In?uence on the FutureDevelopment of the Company
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTINNOVATIVE DEVELOPMENT
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Index of Indicators
Appendices
President Remarks
CONTENTSReport Speci?cation
Collective HonorChairman’s Personal Honor
ESG Issue Identi?cationESG Issue Identi?cationStakeholder Demand and
Response
Preface to the
Report
AboutQing Shui Yuan
Governance for
Sustainable Development
Following the Party’s
Lead for Steady
Development
Leader SpeechCONTENTSAbout the ReportCompany Pro?leCorporate EventsBusiness LayoutProducts & ServicesHonor & Rewards
The Concept ofSustainableDevelopmentStakeholdersCommunicationESG PerformanceBuilding a Strong Defense Against Corruption
Party Building Leads our Way
CONTENTSGRI StandardsCASS-ESG5.0
P2.1
\P1.2P4.1\P4.3\\\
Topic 1 Digital Development—Intelligent ShuiyunzongV2.4
Topic 2 Safety in Production—Qing Shui Yuan in Peace
S3.4/S3.5/S3.6/S3.7Topic 3 Green business—Supporting the Dual Carbon National Policy
GRI102GRI102GRI102GRI102\GRI102GRI102\\
GRI102/103GRI103GRI102GRI201
\
\
GRI403
GRI306E2.9G3.5
\G3.6
\
\
CONTENTSGRI StandardsCASS-ESG5.0Shareholders and Board of
ShareholdersDirectors and Board of
DirectorsCorporateGovernancefor Qing Shui Yuan
Three-BoardGovernance
GRI102GRI102
\G1.3Supervisors and Board of
Supervisors
GRI102\Organizational StructureGRI102\Returns to Shareholders\\Investor Relations Management
\\Information Disclosure\G1.10Supervision, Audit andAnti-Fraud
GRI205\Compliance Management\EnvironmentalManagement
Homeland Protection
SustainableEmployment
EnvironmentalManagement System
GRI302E1.1/E1.6
Environmental
Protection Tenet
\\
Environmental
Protection Goals
\E1.2Emergency Response Plan for Sudden Environmental Incidents
\E1.4Energy ManagementEnergy and ResourceManagement“Three Wastes”EmissionManagement
GRI302E2.1/E2.2Water Resource ManagementGRI303E2.11/E3.2Hazardous WasteManagement
EIA and EmissionPermit Management
\Green O?ce
GRI302/GRI303/GRI305
E3.8E2.14EnvironmentalProtectionTraining
\E1.7Employee StructureGRI102/405S1.3Employee RecruitmentGRI401S1.2Employee DevelopmentTraining ProgramGRI404/400S2.1/S2.2Employee WelfareGRI400S1.7/S1.8Employee Mental Health
\S1.10Employee Care
Employee AssistanceEmployee OccupationalHealth & Safety
GRI403S3.1/S3.2Employee RightsGRI400S1.4Employee DemocracyGRI400S1.6
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTAPPENDICES
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
CONTENTSGRI StandardsCASS-ESG5.0
Care for Society
Quality Management
InnovativeDevelopment
Appendices
GRI 203/413/415
\
V3.4V3.4GRI 203/413/415V3.5GRI 203/413/415V3.7GRI 203/413/415V3.7GRI 203/413/41\GRI102GRI102/414\GRI102/308GRI416S4.1GRI416S4.4GRI416S4.1GRI416S4.5GRI416S4.7GRI416S4.6\\\\\\\V2.4
Supplier Management SystemProcurement Management
SystemSupplier EvaluationManagementProduct Quality Control
SystemProduct Recall SystemCustomer Service System
Customer Complaint
MechanismCustomer Satisfaction
Customer Information Security
R&D TeamIntellectual PropertyManagementPatent TechnologyProjects under research
GRI102A4GRI303/305\
GRI102A5
“Anti-Illegal Fundraising”
PublicityAssistance in Education
Charitable DonationsPublic Welfae ActivitiesFighting the EpidemicProspect of Public
WelfareSupply Chain
Index of IndicatorsKey Emission InstitutionFeedback Table
R&D AchievementsR&D System
Customer Orientation
Product QualityControl
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTAPPENDICES
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
Industry emission standards and pollutant emissions involved in production and operation activities
Not applicableNoneWaste waterJiyuan Qingyu-an WaterTreatment Co.,Ltd. (QingyuanFactory)
Cadmium and compounds,hydrogen chloride, mercuryand compounds, chlorine,lead and compounds, arsenicand compounds
GB31573-2015Emission standards of pollutants forinorganic chemical industryGB31573-2015Discharge outlets forphosphoroustrichloride tail gasand hydrochloric acidstorage tank tail gas;phosphite tail gasdischarge outlet
Cadmium and compounds: 0.5mg/Nm; hydrogenchloride10mg/Nm3; mercury and compounds:
0.01mg/Nm3; chlorine: 5mg/Nm3, lead and
compounds: 0.1mg/Nm, arsenic and compounds:
0.5mg/Nm
Organized Emsiionoutlets
Not applicable
NoneExhaustgasJiyuan Qingyu-an WaterTreatment Co.,Ltd. (QingyuanFactory)
VOCs, hydrogen chloride,formaldehyde
GB16297-1996；Comprehensive emission standardfor air pollutants GB16297-1996;Level-6 tail gasdischarge outlet onHEDP section; level-10tail gas dischargeoutlet on HEDP section;level-9 tail gasdischarge outlet onHEDP section
Hydrogen chloride: 100mg/Nm3; VOCs: 120mg/Nm3;formaldehyde 25mg/Nm3Organized Emsiionoutlets
Not applicableNot applicable
1NoneWaste waterJiyuan Qingyu-an WaterTreatment Co.,Ltd. (QingyuanFactory)
COD, suspended matter, 5-daybiochemical oxygen demand,phosphate, animal andvegetable oil, pH value, volatilephenols, ammonia nitrogen(NH3-N), anilines, total organiccarbon, acrylonitrile
DB41/776—2012Comprehensive wastewaterdischarge standard GB8978-1996;Discharge standard of waterpollutants in the Mangqin RiverBasin DB41/776—2012
All wastewaterrecycling outlet
COD: 50mg/L; hydrogen chloride: 10mg/Nm3; chlorine:
5mg/Nm3; arsenic and compounds: 0.5mg/Nm3; leadand compounds: 0.1mg/Nm3; mercury and compounds:
0.01mg/Nm3; cadmium and compounds: 0.5mg/Nm3
Waste water
recycling
Not applicableNot applicable
1NoneExhaustgasJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
VOCs, hydrogen chloride,formaldehyde
GB16297-1996；Integrated emission standard of airpollutants GB16297-1996;Methylene device:Hydrogen chloride: 100mg/Nm3; VOCs: 80mg/Nm3;
formaldehyde: 25mg/Nm3Organized Emsiion
outlets
Not applicableNot applicable
NoneExhaustgasJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
VOCs, methanolGB16297-1996；
Integrated emission standard of airpollutants GB16297-1996;PBTCAdeviceMethanol: 190mg/Nm3; VOCs: 80mg/Nm3;Organized Emsiionoutlets
Not applicableNot applicable
Organized Emsiionoutlets
NoneWaste waterJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
Hydrogen chloride, arsenic andcompounds, lead andcompounds, mercury andcompounds, cadmium andcompounds, VOCs
Emission standards of pollutants forinorganic chemical industry GB31573-2015; Comprehensiveemission standard for air pollutantsGB16297-1996
HEDPdeviceHydrogen chloride: 10mg/Nm3; arsenic and compounds:
0.5mg/Nm3; lead and compounds: 0.1mg/Nm3; mercury
and compounds: 0.01mg/Nm3; cadmium andcompounds: 0.5mg/Nm3; VOCs: 80mg/Nm3
Not applicableNot applicable
Not applicableNot applicableNoneWaste waterJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
Hydrogen chloride, arsenic andcompounds, lead andcompounds, mercury andcompounds, cadmium andcompounds, VOCs
Emission standards of pollutants forinorganic chemical industry GB31573-2015;Hydrochloric aciddevice
Hydrogen chloride: 10mg/Nm3; arsenic and compounds:
0.5mg/Nm3; lead and compounds: 0.1mg/Nm3; mercury
and compounds: 0.01mg/Nm3; cadmium andcompounds: 0.5mg/Nm3;Organized Emsiionoutlets
Company orSubsidiary Name
Types of MajorPollutants andCharacteristic Pollutants
Names of Major Pollutantsand Characteristic Pollutants
Emission Type
Number ofEmissionOutlets
ExcessiveEmissionsDistribution of Emission
Outlets
Emission Concentration/IntensityPollutant Emission Standards
TotalEmissions
ApprovedTotal Emissions
Key Emission Institution
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTAPPENDICES
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
1NoneWastewaterJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
Hydrogen chloride, arsenicand compounds, lead andcompounds, mercury andcompounds, cadmium andcompounds, chlorine
Emission standards of pollutants forinorganic chemical industry GB31573-2015;Phosphorus trichlo-ride device
Hydrogen chloride: 10mg/Nm3; arsenic andcompounds: 0.5mg/Nm3; lead and compounds:
0.1mg/Nm3; mercury and compounds: 0.01mg/Nm3;
cadmium and compounds: 0.5mg/Nm3; chlorine:
5mg/Nm3;
Organized Emsiionoutlets
1NoneTail gasJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
VOCs, hydrogen chloride,formaldehyde, methanol,chlorobenzenes
Emission standard of pollutants forpetroleum chemistry industry GB31571-2015Raw material tankyard
50mg/Nm3 Hydrogen chloride: 30mg/Nm3; VOCs:
80mg/Nm3; formaldehyde: 5mg/Nm3; methanol:
50mg/Nm3; chlorobenzenes: 50mg/Nm3Organized Emsiion
outlets
1NoneTail gasJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
VOCs, hydrogen chloride,formaldehyde
Comprehensive emission standardfor air pollutants GB16297-1996Solid deviceHydrogen chloride: 100mg/Nm3; VOCs: 80mg/Nm3;
formaldehyde: 25mg/Nm3;Organized Emsiionoutlets
1NoneTail gasJiyuan Qingyu-an WaterTreatment Co.,Ltd. (HulingFactory)
VOCsComprehensive emission standard
for air pollutants GB16297-1996Hazardous wasteroom
VOCs: 80mg/Nm3;Organized Emsiionoutlets
Organized Emsiionoutlets
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicable
Not applicableNoneWastewaterJiyuan Qingyu-an WaterTreatment Co.,Ltd.
Total phosphorus (as P), totalzinc, ?uoride (as F-), anilines,total copper, 5-day biochemi-cal oxygen demand, totalnitrogen (as N), cyanide,volatile phenols, phosphate,COD, sul?de, adsorbableorganic halides, adsorbableorganic halides, ammonianitrogen (NH3-N), suspendedmatter, acrylonitrile, petro-leum, animal and vegetableoils, pH value, total organiccarbon, total vanadium
Indirect emission standard waterpollutants for chemical industryDB41/ 1135—2016; Comprehensivewastewater discharge standardGB8978-1996;
Wastewater Emissionoutlet
Total phosphorus (as P): 5mg/L; total zinc: 5.0mg/L;
?uoride (as F-): 10mg/L; anilines: 2.0mg/L; total
copper: 1.0mg/L; 5-day biochemical oxygen demand:
150mg/L; total nitrogen (as N): 50mg/L; cyanide:
0.5mg/L; volatile phenols: 1.0mg/L; phosphate:
5mg/L; COD: 300mg/L; sul?de: 1.0mg/L; adsorbable
organic halides: 5.0mg/L; ammonia nitrogen (NH3-N):
30mg/L; suspended matter: 150mg/L; acrylonitrile:
5.0mg/L; petroleum: 20mg/L; animal and vegetable
oil: 100mg/L; pH value: 6-9; total organic carbon:
30mg/L; total vanadium: 1.0mg/L;
Company orSubsidiary Name
Types of MajorPollutants andCharacteristic Pollutants
Names of Major Pollutantsand Characteristic Pollutants
Emission Type
Number ofEmissionOutlets
ExcessiveEmissionsDistribution of Emission
Outlets
Emission Concentration/IntensityPollutant Emission Standards
TotalEmissions
ApprovedTotal Emissions
1 EmissionoutletDirect Dischargeafterquali?ed treatment
COD≤547.5t/a；NH3-N≤5
4.75t/a
NoneWastewaterLuoheTongshengSongjiangWater Co., Ltd.
COD；NH3-NEmission standard of pollutants for
municipal wastewater treatmentplant (GB18918-2002) First-classLevel-A discharge standard33°38′17″。The Emission outlet islocated in the north ofthe plant, on the rightbank of Liuzhi River,at 113°59′5″E and33°38′17″N.
COD≤50mg/L；NH3-N≤5mg/LAccording
to thestatisticaldata of2017: COD =
209.8t/a;
NH3-N =
11.4t/a;
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTAPPENDICES
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD
For Qing Shui Yuan, you are:
□ a sta? member □ a customer □ a shareholder or investor □ a supplier □ government department or regulator
□ a media agency/industry association □ other (please specify)
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Feedback Table
Thank you for taking time to read 2022 Environmental, Social and Governance (ESG) Report of Henan Qing Shui Yuan Technology Co.,Ltd.. We look forward to hearing your valuable advice and suggestions on our ESG work in sustainable development manage-ment. Your suggestions and comments are an important for us to continuously improve our ESG e?orts and enhance sustainabledevelopment management. We would like to sincerely invite you to help us ?lling the feedback form and give us your feedbackin the following way. Thank you again for your full support of our ESG e?orts!
WeChat ID:
Tel: 0391—6089342
Address：100m West of the Intersection of Kegong Road and Wenbo Road,Huling High-tech Zone, Jiyuan City, Henan ProvinceEmail：dongshihui@qywt.com.cnWebsite：http://www.qywt.com.cn
2022 ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTAPPENDICES
TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD