Address: No.158, Nanhu Middle Road, Xuelang Street, Binhu District, Wuxi CityTel: 0510-85390590Email: wxsjzqb@163.comWeb: www.hongyuan.com
Report Approval
Data SourcesThis report has been reviewed and approved by the Board of Directors.HOYUAN is responsible for the authenticity and validity of the content of thereport.
The information and data disclosed in this report are extracted from
internal o?cial documents, annual reports and audit reports of HOYUAN
and subsidiaries. Part of the financial data is derived from the Annual
Report for 2022, which has been audited by Da Hua Certified Public
Accountants (Special General Partnership). Unless otherwise stated, the
currency in this report is by default RMB.
External Veri?cation
In order to adequately respond to the requests of stakeholders and ensure
that the disclosed content of the report is more substantive, HOYUAN
invited T?V S?D Certification and Testing (China) Co., Ltd. Shanghai
Branch to conduct the independent third-party veri?cation and issue the
"Limited Assurance" verification opinion. The verification statement is
provided in the appendix of this report.
Access to the Report
This report is issued on an annual basis consistent with the ?nancial year.
The report is available in simpli?ed Chinese and English versions and can
be obtained from the Shanghai Stock Exchange website (www.sse.com.
cn) and the o?cial website of HOYUAN (www.hoyuan.com). In case of any
doubt about the contents, please refer to the Chinese version.
Contact us
Contact Department: Securities Service Department of HOYUAN
Tel: 0510-85390590 Email: wxsjzqb@163.com
This is the first Environmental,Social and Governance Report(hereinafter referred to as "thisReport" or "ESG Report") ofHOYUAN Green Energy Co., Ltd.(hereinafter referred to as "HOY-UAN", "the Company" or "We")describing environmental, so-cial and governance approachand performance of HOYUAN in2022.
Reporting BoundariesOrganizational Scope:
The principle of determining the organizational boundaries of this report isthe operational control method, covering HQ and a?liated units of HOYUAN,which is consistent with that of the consolidated ?nancial statements of theannual report for 2022, as shown in the appendix Breakdown of ReportingScope of Subsidiaries.Reporting Period:
January 1, 2022 to December 31, 2022. In order to retain completeness andcomparability of the report, some of the contents might refer to records inprevious years or be relevant with information in 2023.
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance (ESG) Report
About this Report
Basis for compilation:
The standards, frameworks, principles and related requirements involved inthe preparation of this report are shown below:
Sustainability Reporting Standards of Global Reporting Initiative (GRI)Version 2021United Nations Sustainable Development Goals (UN SDGs)Ten principles of the United Nations Global Compact (UNGC)Shanghai Stock Exchange Self-Regulatory Guidelines No. 1 for ListedCompanies-Standardized Operation - Standardized Operation
Practitioner of ScientificOperation for Long-termDevelopment
Leader of Clean Energythrough Collaboration
Employer who gathersstrength and meetsexpectations
Guardian of Green Mountainsand Lucid Waters
Corporate GovernanceLegal ComplianceInvestor Relationship
Scienti?c and TechnologicalInnovationProduct Quality and SafetyCustomer RelationshipManagementSustainable Supply Chain
Equality, Diversity andInclusivenessEmployee training anddevelopmentEmployee RightsOccupational Health andSafetyCharity and Public Welfare
Environmental ManagementComplianceEnergy ManagementWater ManagementWaste Management andDischargeResponse to Climate Change
Contents
Cleaner Energy, A Better World
About this ReportMessage from ChairmanAbout HOYUANOur 2022?Become a N-typeWhole Industry Chain Supplier
Special Feature
Advocate whosupports co-prosperity andsharing, greenand low-carbon
Sustainable ManagementStakeholders EngagementMateriality Analysis
IndependentVeri?cation StatementAppendix
（一）Key Performance Table
（二）Index Sheet
（三）Breakdown of Reporting
Scope of Subsidiaries
Photovoltaic industry serves as an important engine for global energy change. HOYUAN seizes the opportunity ofdevelopment in the era of clean energy, devotes itself to pursuing, exploring, manufacturing and creating, and alwaysstrives to improve its core competitiveness with entrepreneurship.The year 2022 was extremely important in the development of HOYUAN. In 2022, against the backdrop of unstable globallandscape, and climate, environment and energy crisis, HOYUAN grew against the trend by ful?lling its responsibilities underthe guidance of the corporate mission of "Cleaner Energy, A Better World", dedicated itself to the global green energy, andstayed committed to the corporate vision of "Become a Practitioner of Dual Carbon Goal and the Energy Revolution". Thecompany has thus started its long-term layout plan for sustainable development.Integrating the energy industry ecosystem and expanding the advantages of integrated synergyOver the past few years, PV industry has developed rapidly with exciting achievements. In 2022, shipment (volume) ofHOYUAN reached 31.18GW of monocrystalline silicon wafers, with corporate revenue and pro?tability hitting a record andgrowing trust from the society and customers. Of course, clean energy never developed without bumps in the road. In theface of opportunities and challenges, we have actively invested in the integration and construction of the entire industryecosystem, with investment in Baotou, Xuzhou, Jiangyin and other places for production of silicon, monocrystalline siliconwafers, solar cells, PV modules. We have connected various links throughout the photovoltaic industry chain, and continuedto introduce mature and reliable leading products, solutions and services by focusing on customer needs and deepeningmulti-party collaboration, to increase the strength of integrated and synergistic industrial layout.Focusing on the transformation of emerging industries to boost innovation vitality
HOYUAN has developed from a high-end intelligent equipment manufacturer to a world-renowned vertical PV industryecological integrator, striving to make PV energy more a?ordable and ensure a better and more convenient life for mankind.In this regard, we continue to enhance our independent R&D and innovation capabilities, and accelerate the digital andintelligent transformation of our manufacturing platform. In 2022, the company invested nearly RMB 1 billion in R&D and had1,038 R&D employees. The self-developed silicon carbide cutting equipment of the company boasts competitive advantageagainst international counterparts; the company managed to grasp the opportunity of silicon cell technology, utilizingits experience and strength in N-type silicon wafers for the layout of TOPCon high-e?ciency battery production capacity,which has been put into operation in June this year, with the mass production e?ciency expected up to 25.6%, e?ectivelypromoting cost reduction of kWh of electricity on the system side, and providing customers with more innovative and cost-e?ective green energy products.
Introducing low carbon development strategies to empower green development in futureAlong with quality and rapid development, HOYUAN aligns its cultural concept with the global consensuson sustainable development, in line with the same ESG governance and practice requirements. We haveintroduced green and low carbon philosophy into the core development strategy of the company, formulatedthe blueprint for low carbon development, and integrated the concept of environmental protection into theproduct life cycle management of the industrial chain. This year, the company has reduced carbon dioxideemissions by over 40 million tons, and all series of silicon wafers have passed the French ECS certi?cation, withthe rank of the certi?cation data topping the world. The company has been recognized as one equipped with PVManufacturing Standard Condition in China. By means of innovative R&D and intelligent upgrading, the companyrolled out energy-saving and emission reduction efforts in all production processes, and accelerated industrytransformation toward the zero emissions goal, aiming to become the most trustworthy green enterprise for allstakeholders.
Practicing corporate social responsibility for continuous business growth with joint e?ortsAs a responsible green energy manufacturer, HOYUAN has always regarded itself a social citizen with its owncorporate social responsibilities. Looking back on the past twenty-one years, it was the Employee and thecommunity that moved HOYUAN forward. We care for our employees and are committed to providing them witha diversi?ed, equal and safe working environment. We have formulated a talent development strategy featuringHOYUAN characteristics. We are also committed to fulfilling our social responsibilities, actively participate inpublic welfare activities, promote employment development and local economy, and endeavor to create morevalue for the society.
Message from Chairman
Chairman of HOYUAN
Yang, Jianliang
Cleaner Energy, A Beer World
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance (ESG) Report
Message from Chairman
Company Pro?leFounded in 2002 with HQ located in Wuxi, Jiangsu Province, HOYUAN Green Energy Co., Ltd. was listed on the main boardof the Shanghai Stock Exchange in 2018 (stock code: 603185). The company is a global green energy industry ecologicalintegrator specializing in the innovation and application of new energy industry.With the mission of "Cleaner Energy, A Better World", HOYUAN practices and promotes global green energytransformation, actively builds a complete photovoltaic industry ecological system, and is now deeply involved in thebusiness ?elds of high-end equipment manufacturing, industrial silicon and crystalline silicon, monocrystalline siliconwafers, solar cells, PV modules, and the development of new energy power stations, etc. The company deploys itsscience and technology R&D capacity and deep vertical integration as the driving force for corporate development,committed to providing the society and customers with more e?cient, accessible and a?ordable green energy, ensuringcost reduction and e?ciency of PV products, and contributing to achieving dual carbon goal and energy revolution.
About HOYUAN
HOYUAN Green Energy Co.,Ltd. No.158, Nanhu Middle Road, Xuelang
Street, Binhu District, Wuxi City
Sep 28, 2002Company Name
HQ Address Date of Establishment
Total Number ofIndustrial Bases
Total Number ofEmployees7,245
Total Assets
billionRMB
21.034
Production capacityof monocrystallinesiliconGW
Silicon wafershipment
GW
31.18
Sales revenue from
monocrystallinesilicon business
billionRMB
21.615
HOYUAN has set up three industrial bases in Wuxi (Jiangsu Province), Baotou (Inner Mongolia Autonomous Region) and Xuzhou (JiangsuProvince). Please refer to Regional Distribution for details.
The company was formerly known as "WUXI SHANGJI AUTOMATION CO., LTD." and changed its name to "Hongyuan Green Energy Co., LTD." in 2023.
Business Scope
N-type Integration ofPhotovoltaic Industry ChainEquipment
Silicon
Monocrystalline
silicon Wafer
Solar Cells
PhotovoltaicModule
New EnergyPower Station
Equipment
Solar Cell
PowerStation
N-type vertical
integration
High-end Meta EquipmentSolar DeviceSapphire EquipmentSemiconductor EquipmentSilicon Carbide EquipmentCylindrical Grinding Machine
High-purity Meta MaterialIndustrial SiliconCrystalline Silicon
High-energy Meta Power
N-type TOPCon High E?ciency Battery
High-quality MetaManufacturingP-type Monocrystalline Silicon WaferN-type Monocrystalline Silicon Wafer
High-e?ciencyMeta Terminal
Wind Power StationPV Power Plant
High-e?ciencyMeta Module
High-e?ciency PERC ComponentsHigh-e?ciency TOPCon Components
Silicon
Module
SiliconWafer
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough Collaboration
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Regional Distribution
Our Culture
Awards
Xuzhou, Jiangsu
HOYUAN New Material(Xuzhou)
Baotou, Inner MongoliaHOYUAN New Material(Baotou)HOYUAN EnergyHOYUAN Qingshan PV
Wuxi, Jiangsu
HOYUANHOYUAN SolarHOYUAN SEMICHOYUAN New Energy
HOYUAN Industrial Distribution
HOYUAN Green Energy Co., Ltd.
Our MissionOur Vision Core ValuesCleaner Energy,A Better World
Become a practitioner ofdual carbon goal and theenergy revolution
Honesty, Pragmatism,Dedication,High-e?ciency, Innovation
Ministry of Industry and Information Technology of the People's Republic of China
Awarded byThe Fourth Batch of National Specialized, Re?ned, Special and New Little Giant Enterprise
China Industry-University-Research Institute
Collaboration AssociationAwarded by
Jiangsu Tripartite Committee forCoordinating Labor Relation
Awarded by
Forbes ChinaAwarded by
Jiangsu Federation of Industry & Commerce
(JSFIC)Awarded by
Jiangsu Federation of Industry & Commerce
(JSFIC)Awarded by
WindAwarded by
First Prize of China Industry-University-Research Cooperation
Innovation Achievement Award
Excellent Enterprise with Harmonious
Labor relations in Jiangsu Province
2022
Top 50 Forbes China Most Innovative
Companies 2022
Top 200 Private Enterprises of
Jiangsu Province
Top 100 Private Enterprises inManufacturing of Jiangsu Province
Top 500 Listed Companies by Market
Capitalization of China
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Certi?cation Quali?cation
Membership
HOYUAN Green Energy Co.,Ltd.
HOYUAN New Material(Baotou) Co., Ltd.
ISO9001:2015 Quality Management System
ISO9001:2015 Quality Management System
ISO 45001:2018 Occupational Healthand Safety Management System
ISO 50001:2018 Energy
Management System
ISO 14001:2015 Environmental
Management System
Expiration Date 2024.05.20Expiration Date2025.05.16
Expiration Date2025.05.16Expiration Date 2024.12.07
Expiration Date 2024.12.07
Expiration Date2024.04.06
Expiration Date2024.04.06Expiration Date 2024.12.07
China Photovoltaic Industry
Association
China Machine Tool & ToolBuilders' Association
HOYUAN Green EnergyCo.,Ltd.
HOYUAN New Material(Baotou) Co., Ltd.
Expiration Date 2024.12.07Join in 2017
Baotou Carbon NeutralityIndustry Association
Join in 2017Join in 2023
Materials Sub-Technical Committeeof National Technical Committee for
Standardization of SemiconductorEquipment and Materials
Join in 2023Join in 2021
Low Carbon Industry Branch ofBaotou Environmental ProtectionIndustry Association
| Join in 2021 | Join in 2021 |
Silicon Industry of China Nonferrous
Metals Industry Association
Join in 2022Join in 2016
HOYUAN New Material (Baotou) Co., Ltd.
Join in 2016Member Member
| Member Member | Member Member |
MemberMember
MemberMemberGoverning Unit Governing Unit
Governing Unit Governing UnitMemberMember
Ministry of Industry and InformationTechnology of the People's Republic of China
Awarded byMinistry of Industry and InformationTechnology of the People's Republic of China
Awarded by
Inner Mongolia Autonomous RegionFederation of Industry & Commerce
Awarded byInner Mongolia Autonomous RegionFederation of Industry & Commerce
Awarded by
The Eleventh Batch of StandardizedEnterprises for Photovoltaic
Manufacturing Industry National green factory in 2021
Top 100 Private Enterprises in InnerMongolia Autonomous Region for 2022Top 50 Private Enterprises inManufacturing Industry of InnerMongolia Autonomous Region for 2022
MemberMemberMember Member
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operation
for Long-term Development
Employer who gathers strength
and meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Our 2022?Become a N-typeWhole Industry Chain Supplier
February
August
JuneAn investment of RMB
11.8 billion was put
into the constructionof 100,000 tons of high-purity crystalline siliconproject, expandingthe upstream siliconmaterial securitychannels.
HOYUAN is committed to accelerating the industrialization process of "silicon-cell-module" on the basis of cleanenergy and through upstream and downstream extension, in order to effectively improve production supplycapacity, and consolidate the competitive advantage of the industrial chain. We strive to accelerate the pace ofbecoming a strong manufacturing enterprise and strengthen the advantages of domestic replacement by re?ningour own technology and processes, to provide more efficient, more plentiful and safer clean energy sourceproducts.
An investment of RMB
14.8 billion was put into
the construction of40GW annual output ofmonocrystalline siliconcrystal pulling andancillary productionproject, continuouslyexpanding the field ofmonocrystalline siliconmaterials.
An investment of RMB15 billion was putinto the constructionof 25GW annualproduction capacityof monocrystallinesilicon slices and24GW N-type high-efficiency cellproject, providingthe layout plan of thedownstream PV/solarcell business.
Figure in 2022
Operating revenue reached RMB
21.909
billion, up by
100.72%
year on yearNet profit attributable to shareholders oflisted companies reached RMB
3.033
billion, up by
77.23%
year on yearBasic earnings per share reached RMB
7.824
, up by
72.18%
year on year
EHS safety training sessions wereprovided for a total of9,700participantsApproximately RMB
13.17
million wasdonated with3,634volunteers involved
100%coverage rate of collective contractemployees; and100%coverage rate ofprotection agreements on female employees
Independent directors account for43%of theboard and67%of specialized committees
recall of quality issues with94%customersatisfaction
1,038R&D personnel and over RMB974millionR&D investment.
Listed inPV ManufacturingStandardized Conditionin ChinaAll series of silicon wafers passed the FrenchCarbon Foorprint ECScerti?cationEnvironmental protection capital investmentamounted to RMB
84.08
millionCarbon dioxide emissions reduced by40,412,398tons over the year
Higher E?ciency
Greater Harmony Greater Reliability
Greener Operation
About HOYUAN
Practitioner of Scienti?c Operation
for Long-term Development
Employer who gathers strength
and meets expectations
Guardian of Green Mountains
and Lucid WatersLeader of Clean Energythrough Collaboration
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbonHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
1314
Sustainable Management
Sustainability Governance
ESG Leading Group
ESG Co-ordination Team
ESG Working Group
The Board of Directors, the highestdecision-making body for ESG, takesoverall responsibilities in the formulation ofcorporate ESG strategic planning, policies andwork plans, and considers and approves theESG annual report.
Specialized committees under theboard of directors are responsiblefor setting development goalsof environmental, social andgovernance and helping handleESG-related tasks.
It is composed of variousdepartments of corporate HQ, andis responsible for implementingobjectives of the specializedcommittees, coordinating andpromoting the implementation ofESG tasks, preparing annual ESGreport, and strengthening theinfluence of internal and externalsustainable development of thecompany.
HOYUAN has integrated sustainability philosophy into corporate operation, established a sustainable governancestructure, including three specialized committees for environmental governance (E), social responsibility (S) andcorporate governance (G), and gradually incorporated sustainable development into the agenda of corporategovernance. The aim is to improve ESG management process, and ESG governance of the Group and itssubsidiaries.
Structure of the Sustainable development board
Board of Directors of HOYUANSustainability Management Board
SpecializedCommittee onEnvironmental
Governance
GeneralManager's O?ceSecurities Service
EHS DepartmentFinancial Department
Human ResourcesLegal Department
SpecializedCommitteeon SocialResponsibility
SpecializedCommitteeon CorporateGovernance
The United Nations Sustainable Development Goals
Photosynthesisof All Beings,Sharing theBeauty
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industrial
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Responding to Climate Change
Creating Green and Low-carbon Products
Product Quality and SafetyCustomer Service
Technology InnovationSustainable Supply ChainCorporate GovernanceBusiness EthicsRisk ManagementInvestor Relations
Occupational Health and
SafetyWaste ManagementWater Management
Energy ManagementEnvironmental Compliance Managementv
Responding to Climate Change
Employee Training and
Development
Equality, Diversityand Inclusiveness
Employee Rights
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
1516
Stakeholders EngagementWe have referred to requirements of GRI Standards and AA1000 SES Stakeholder Engagement Standard, andidentified key stakeholders such as shareholders and investors, employees, customers, suppliers, governmentand regulators, scienti?c research organizations and industry associations, surrounding communities (includingresidents) and environment, and companies in the same industry.We fully realize the impact of corporate operations on stakeholders, keep communication and collaboration withstakeholders, and respond to their expectations and demands in a timely manner, so as to ensure informationdisclosure on sustainable development and ESG governance.Stakeholders
Stakeholders
Topics of Concerns
Topics of Concerns
Communication Mechanism
Communication Mechanism
Shareholdersand Investors
Corporate GovernanceBusiness EthicsRisk ManagementInvestor Relations
Periodic Reports & Temporary AnnouncementsBoard of ShareholdersConstant Online and O?ine Communication (InvestmentSeminars, Performance Presentation, E-interaction withShanghai Stock Exchange, Investor Mailboxes, Hotlines)Media Communication
Employees
Employee RightsEmployee Training andDevelopmentOccupational Health andSafetyEquality, Diversity andInclusiveness
Employee Activities, Workers' Congress, Training ActivitiesEmployee HandbookVoice of HOYUANInternal EmailO?ce Automation SystemNotice Board
Customer
Product Quality and SafetyCustomer ServiceTechnology InnovationCreating Green and Low-carbon Products
Daily Online and O?ine CommunicationCustomer Satisfaction Survey
SupplierSustainable Supply Chain
Regular Supplier TrainingExchange VisitSupplier ReviewFeedback from Monitoring Channels
Governmentand Regulators
Corporate GovernanceRisk ManagementEnvironmental ComplianceManagementEnergy ManagementWater ManagementWaste ManagementResponding to Climate Change
Regulatory MeetingPhysical InspectionInformation Disclosure
Scienti?cresearchorganizationsand industryassociations
Technology InnovationCreating Green and Low-carbonProducts
Industrial SeminarsProduct Exhibitions
SurroundingCommunities(includingresidents) andEnvironment
Responding to Climate ChangeWater ManagementWaste ManagementCommunity Relations
Open DayCommunity Volunteering ActivitiesPublic Service ActivitiesMedia Communication
Public Media
Corporate GovernanceProduct Quality and SafetyCharity and Public Welfare
Press ReleaseCompany Monthly MagazinesActivity ParticipationQuestionnaire surveySocial Welfare ProjectsCompaniesin the SameIndustry
Technology Innovation
Industrial SeminarsProduct Exhibitions
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Materiality AnalysisThrough industry benchmarking analysis and stakeholder research, in line with the three AA1000 SES principlesof inclusiveness, materiality, and responsiveness, we assess the risks and opportunities that have an impact oncorporate development, economy, environment, and society, and identify and screen Materiality of sustainabledevelopment, and disclose key points in the report.
Domestic and Inter-national disclosurestandards & ESG ratingstructureRegulatory requirements& industry policiesDevelopment strategy ofHOYUANIndustrial practices
Dual materiality scoringof Issues
Online questionnairewith 663 valid feed-back in total
Importance ofsustainable Impact(50%)Financial impacton the company(50%)
Prioritize materialityand focus on disclo-sure of high and me-dium material issues
Benchmarking Analysis Organizing Surveys Assessing Impact Response to Concerns
Identi?cation Process of Materiality
Materiality Matrix
Financial Impact on the Company
Signi?cance of Sustainability Impact
High
Highlow
Business EthicsProduct Quality and SafetyEnergy ManagementCreating Green and Low-carbon ProductsEmployee Training andDevelopmentOccupational Health andSafety
Equality, Diversity andInclusivenessCommunity RelationsCharity and Public Welfare
Corporate GovernanceRisk ManagementInvestor RelationsCustomer ServiceTechnology InnovationResponding to Climate ChangeEnvironmental ComplianceWater ManagementWaste ManagementEmployee RightsSustainable Supply Chain
High MaterialityMedium Materiality Low Materiality
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Advocate who supportsco-prosperity andsharing, green andlow-carbon
Energy is the cornerstone for survival anddevelopment of the modern society.
”
””
At present, global energy is undergoing a green and low-carbon transformation, andChina has clearly proposed the goals of achieving "carbon peaking" by 2030 and"carbon neutrality" by 2060.The deep vertical integrated photovoltaic industry layout of Hongyuan GreenEnergy has realized the transformation from the full capacity scale of photovoltaicmanufacturing to the N-type integration of the industry.Our three major industrialmanufacturing bases, seven wholly-owned subsidiaries and a global marketing centerfully guarantee the efficient linkage of the whole process from equipment, siliconmaterials, silicon wafers, high-e?ciency batteries and photovoltaic modules, powerstation development and services, making each unit of electricity cleaner, moree?cient and greener, and promoting the green transformation of energy.
Special Feature
2019
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
| About HOYUAN | Practitioner of Scienti?c Operation for Long-term Development | Leader of Clean Energy through Collaboration | Employer who gathers strength and meets expectations | Guardian of Green Mountains and Lucid Waters | |||||||
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
2122
As an ecological integrator of global green energy industry, HOYUAN takes "Cleaner Energy, A Better World" asmission, and ensures in-depth practice and promotion of the global green energy transformation. With the rapidgrowth of the company, we have in-depth knowledge of the evolution and changes of the photovoltaic industry,always take healthy and sustainable development as our business objectives, move forward with industrial ecology,share value with customers, ensure mutual prosperity with partners, and build a more harmonious world all along.
HOYUAN New Material (Baotou) stays committed to leading green development with science & technology as well asintelligent manufacturing. In 2021, HOYUAN New Material (Baotou) was awarded as the national green factory, andin 2022 was recognized as one equipped with PV Manufacturing Standard Conditions in China in terms of processtechnology, comprehensive utilization of resources and energy consumption, intelligent manufacturing, greenmanufacturing, and environmental protection.With the business foundation of new energy manufacturing equipment and core materials, the company hasmanaged to produce low-carbon traceable products. The production line design and equipment selection adhere tothe principles of "advanced, energy-saving, high e?ciency", so as to improve comprehensive utilization of materials,reduce production costs, build a digital and intelligent factory with comprehensive digitalization and intelligentmanufacturing for e?cient and smooth operation, and ultimately mitigate environmental risks of the company ingeneral. In terms of raw materials, we have adopted a new generation of more low-carbon granular silicon materialsto reduce carbon footprints of our products. In addition, barcode system is used to identify each silicon crystal rodfor traceability of the whole production process.
Low-carbon Traceable Products
Meta Strategy: Empower a Carbon-free Future, Lead and Innovate Green Energy
High-end intelli-gent equipmentis widely used inthe ?elds of solarenergy, semicon-ductors, siliconcarbide andsapphireLead high hardand brittlematerial cuttingequipment man-ufacturing
Expand rawmaterial guar-antee channelsand improve theexcellent perfor-mance of photo-voltaic cells
Mature produc-tion process andsu?cient pro-duction capacityguarantee
Higher conver-sion e?ciencyand bettermodule endperformance
Make the cleansun ?nd a short-cut to ful?ll itspotential
The promise ofgreen energyis endless, andwe seek thebest solutionfor a zero-car-bon world
Industrial sili-con+Crystallinesilicon
P/N-typemonocrystallinesilicon wafer
N-type high-ef-?ciency siliconcell
High-e?ciencyPERC Compo-nents /High-e?-ciency TOPConComponents
Developmentof PV PowerPlant andWind PowerStation
High-end MetaEquipment
High-purityMeta Material
High-qualityMetaManufacturing
High-energyMeta Power
High-e?ciency
Meta Module
High-e?ciencyMeta Terminal
Capacity Planning Capacity Planning Capacity Planning Capacity Planning Capacity Planning
hundredthousandtons
GWGWGWGW17524165.5
Crystallinesilicon
Monocrystallinesilicon wafer
N-Type Cell PV moduleDevelopment of
New Energy Power Station
?Hao Yang, General Manager of HOYUAN
The purpose of all rened development in the Photovoltaic industry is toreduce the cost of electricity generation, ensure everyone can aord cleanenergy, and ultimately build a zero-carbon world.
”
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strength
and meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
2324
HOYUAN has been engaged in the field of high-end intelligent equipment manufacturing for many years, andits specialized processing equipment for highly hard and brittle materials is widely applied in photovoltaic,semiconductor, silicon carbide and sapphire sectors. Amongst all, solar energy equipment covers the opening,truncation, grinding, rounding, chamfering, slicing of solar silicon wafers.In 2022, the company rolled out a number of process improvement projects to reduce material loss and damagerate for better crystal pulling e?ciency and better slicing e?ciency in the wafer production process.
Based on the mature production process and stable and traceable product supply chain, HOYUAN continuouslyoptimized equipment and innovated slicing technology, with significantly increased yields and production of182/210 monocrystalline silicon wafers, as well as signi?cantly reduced costs. By means of process optimization, theenergy intensity of single crystal decreased by 4.1% in 2022 as compared with that of 2021. In addition, we have alsocarried out industrial cooperation to promote the "large size, thin wafer" process of monocrystalline silicon wafer,whereby the company planned to establish a zero-carbon industrial chain in the future.
Renovating and upgrading self-made water-cooling screen of the equipment, applying a new type of infusiontube structure to improve the speed and stability of crystal pulling, and improving the production e?ciencywhile reducing the breakage rate by about 10%;Refining PV slicer cuttingsteel line, improving high-speed performance for betterwafer rate;Optimizing silicon carbideslicer cutting nozzle and mor-tar cylinder;
Automating PV slicer clean-ing, replenishing and drain-ing;
Renovating circulation line ofsilicon carbide slicer cutting?uid;
Improving axis swing of sili-con carbide slicing machineworkpiece;
semiconductor cutting ma-chine.
New Energy Mmanufacturing Equipment
Monocrystalline Silicon Wafer
shipment (volume) of corpo-rate monocrystalline siliconwafer products reached
It is estimated that after all installationand operation of the power station,which is equivalent to reducing theemission of
equivalent to saving tonsof standard coal
equivalent to plantingIn 2022
GW
million tons of carbondioxide equivalent
million tons
31.1826.675.75billion trees
1.33
In May 2023, full series of wafer products of the company once again passed the French Carbon FoorprintECS certi?cation, covering the entire life cycle of wafer, including crystal pulling, square opening, slicing,recycling, etc. This carbon footprint certi?cation provides HOYUAN with su?cient market competitivenessand gives us a strong impetus to develop overseas markets and establish a globalized layout.In the future, HOYUAN will continue to engage in the R&D field of product technology, practice greendevelopment philosophy, build a green manufacturing system, accelerate the intelligent and digitaltransformation of factories, utilize the strengths of vertical integration of the industrial chain, continue topromote the cost reduction and e?ciency of the photovoltaic industry, and contribute to a carbon-freefuture.
CaseHOYUAN’s full series of silicon wafers have passed the French ECS certi?cation.
Major Equipment Improvement Projects Rolled out in 2022
The carbon emission calculation factor comes from the latest national power grid average emission factor published by theState Bureau of Ecological Environment.
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
2526
In August 2022, HOYUAN Xuzhou New Energy Industry Park project was kicked o? for N-type high-e?ciency siliconcell capacity. TOPCon technology has applied to cell production, with higher conversion efficiency and bettermodule end performance.In June 2023, the ?rst 16GW N-type TOPCon high-e?ciency cell was successfully rolled out on the production line,and the e?ciency of mass production could reach 25.6%, leading the industry.
In 2023, we launched HT series of TOPCon e?ciency modules, which utilize multiple main gates and non-destructivecutting technology for mass-produced modules with output power up to 710W and conversion efficiency up to23%. HT series modules boast the advantages of low attenuation, -0.3%/°C low temperature coe?cient, 85% highbifocality ratio, and 2% comprehensive gain for weak light power generation. Meanwhile, the module is availablewith a 12-year warranty on materials and process as well as a 30-year warranty on power, providing users with asafer, more e?cient and reliable product experience.
With excellent supply chain security, intelligent design, efficient construction and high-quality service, HOYUANis able to develop and execute new energy power stations. During the reporting period, the 5.5GW wind powerand photovoltaic power plant project has been steadily pushed forward, which serves not only as an a?rmationof corporate product manufacturing capability and industrial systematic operation capability, but also an activepractice of zero-carbon transformation of the industry.In the future, we will aim at becoming a"global green energy industry integration service provider",take"Cleaner Energy, A Better World"as our corporate mission, and rely on deep vertical integrationand breakthroughs in new technologies as our driving forces to push forward industrial ecology, share valueswith customers, and ensure mutual prosperity with partners and harmony across the world. We will also providethe society and users with the ultimate standard green energy that is more efficient, accessible, affordable, andapplicable at scale, practicing and promoting the global green energy transformation.
High-e?ciency Cells
High-e?ciency Module
New Energy Power Station
TOPConpuri?cation
contacttechnology
High conversione?ciency
High conversione?ciencyBifacial design
30-year powergeneration guaranteeHigh capacity forelectricity generation
Low temperaturecoe?cientStrict gradingstandard
High bifacialityExcellent anti-PIDperformance
Excellent low light powergeneration features.
Zero LID versuslow LeTIDStrict appearancestandard
TOPContechnology
Non-destructive
cutting model
Half-slicetechnology
MULTI-BUSBAR
（MBB）
High density
package
High reliability Low
temperaturecoe?cientHigh bifaciality Low attenuation
rate
Good low light
e?ect
Introductionof the wholeprocess qualitycontrol systemCell conversione?ciency of up
to 25.6%+
Chip-level tracking
to signi?cantlyimprove product
qualityCustomizedproduction withthickness of110~150um
"Large size and thin
sheet" to reducecost and increase
e?ciency
Technical Advantages
Product Advantages
N-type TOPCon 182 16BB Bifacial Solar Cell
Ultra-e?cient Photovoltaic Modules
About HOYUAN
【Special Feature】
Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
27282827
Practitioner ofScientific Operationfor Long-termDevelopment
Corporate Governance Legal ComplianceInvestor Relationship
Practitioner of Scienti?cOperation for Long-termDevelopment
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) ReportAbout HOYUAN
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbonEmployer who gathers strengthand meets expectations
| Leader of Clean Energy through Collaboration | Employer who gathers strength and meets expectations | Guardian of Green Mountains and Lucid Waters | ||||
2930
Corporate Governance
A sound and modern corporate governance structure and a well-developed corporate governance system arekey pillars for sustainable value creation in a company. HOYUAN strictly abides by laws, regulations, normativedocuments and guidelines, including the Company Law of the People's Republic of China, the Securities Law ofthe People's Republic of China, the Code of Corporate Governance for Listed Companies, and the Guidelines forthe Articles of Association of Listed Companies, etc. The company constantly optimizes its corporate governancestructure, updates its organizational governance norms in a timely manner, strengthens internal control measures,safeguards the interests of its stakeholders, and fosters a transparent, honest, and accountable corporategovernance culture.
The company has set up a modern organization system and operation mechanism composed of board ofshareholders, board of directors, board of supervisors, and executive managers. The board of shareholders servesas the supreme authority and the board of directors oversees group governance and is accountable to the boardof shareholders. The board of directors is composed of a number of committees for daily work. Each committee isallocated clear governance responsibilities, with clearly de?ned management roles and demarcation.
Board of DirectorsBoard of Supervisors
Board of Shareholders
Executive Management
General Manager
Strategy CommitteeRemuneration and Appraisal Committee
Nomination CommitteeAudit Committee
Vice-general Manager
In strict accordance with the Articles of Association and Rules of Procedure for Board ofShareholders, the company hosted one annual general meeting and seven temporary meetingsduring the reporting period, and passed 32 motions, including the stock incentive plan,profit distribution and the appointment of auditor, etc to safeguarded shareholders' rights toinformation, participation and voting and ful?ll its responsibilities and obligations for informationdisclosure as a listed company.Board ofShareholders
Governance Functions
In order to strengthen the independence and professionalism of the board of directors, 3 independent directors areinvited, accounting for 43% of the Board. Meanwhile, the independent directors account for a majority of the AuditCommittee, the Nomination Committee, and the Remuneration and Assessment Committee and serve as convenors;besides, the independent directors do not hold shares of the Company in any form or have other positions in theCompany.
The current board of directors consists of seven members, including three independent directors.The board of directors is composed of four specialized committees, namely, the Audit Committee, theNomination Committee, the Remuneration and Assessment Committee and the Strategy Committee,which provide advice and recommendations in terms of strategy formulation, internal control andmajor investments in accordance with corresponding rules and procedures, so as to ensure that theboard of directors' deliberation and decision-making are e?cient and scienti?c.During the reporting period, the company successfully renewed the board of directors and hosted 21board meetings, where board members attended in person and performed their duties.The current board of supervisors is composed of three members, including one employee supervisor.The board of supervisors is responsible for overseeing the duties and behaviors of the board ofdirectors and senior management, checking financial status of the company and safeguarding thelegitimate rights and interests of shareholders.During the reporting period, 14 board meetings were convened, and the procedures for convening andvoting at the meetings were in compliance with the Rules of Procedure of the Board of Supervisors.The company appoints one general manager and several vice-general managers. During the reportingperiod, executive managers performed the authority delegated by the board of directors andimplemented the resolutions adopted by the board of shareholders.Independence
ExecutiveDirector
IndependentDirector
Independence of the Board
(Unit: seat)
Organization of the Specialized Committee
Proportion ofIndependent Directors(%)
Hosted Meetings(number)
Attendance (%)Audit Committee*
NominationCommittee*
Remunerationand AssessmentCommittee*
StrategyCommittee
*indicates that the convenor is an independent director, while the Audit Committee includes oneprofessional accountant.
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Board ofDirectors
Board ofSupervisors
Executive
Managers
3132
The board of directors is selected regardless of gender, age, nationality, educational background or professionalskills. Current members of this organization boast rich industry-university backgrounds, management experienceand skills, with a mindset for diversity and inclusiveness.
Diversity
MaleDirectors
FemaleDirectors
Gender of the Board (Unit: seat) Age of the Board (Unit: seat)
Diversity of Directors
Skill Matrix of the Board of Directors
30-3950-5960-69
Finance
Accounting
TechnologicalInnovationStrategicManagement
Human ResourceManagement
BusinessManagementRiskManagement
Integrity and pragmatism are core values of the company and serve as cultural philosophy that motivates continuousupgrading of internal control and management. We comply with laws and regulations, industry policies, servicenorms, and the Group's Code of Conduct across the globe. The group has set up a Legal Department to coordinatethe management and handling of legal a?airs of the group, and our subsidiaries have set up Audit and SupervisionDepartment to collaborate in business activity inspection for business divisions and compliance assessment duringthe execution process.
Featured Lecture on Prevention of Job Crime and Contractual Risks
Integrity Management
Legal Compliance
InternalControlAudit
KeyMonitoringAwarenessTraining
Investigationand Reporting
Honesty &Pragmatism
Code ofConduct
General Audit
In the expansion of international business, we strictly comply withlocal laws and regulations together with regulatory requirements,and we will gradually improve our management system to boostthe development of our international business. In addition, we haveupdated and issued internal control norms such as the IntegrityManagement System and the Anti-Unfair Competition ManagementSystem in accordance with the requirements of laws, regulationsand rules for listed companies; we retain regular communicationwith our subsidiaries and track the compliance with norms on majormatters such as connected transactions and asset disposal.During the reporting period, the company was not subject tosigni?cant sanctions or ?nes for violation of laws or regulations inthe social, environmental and economic ?elds.
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountains
and Lucid WatersLeader of Clean Energythrough Collaboration
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
3334
The company always insists on zero tolerance attitude towards corruption and fraud. In this context, the companyhas formulated the Basic Standard for Corporate Internal Control, Anti-commercial Bribery Management System,Integrity Management System, Measures for the Management of Hospitality Business Costs, Announcement ofStrengthening the Management of Gifts Surrendered and other rules and regulations, in order to improve the anti-corruption and commercial bribery system and gradually form an institutionalized and process-oriented corruptionrisk prevention, monitoring and elimination mechanism.We insist on conducting all business activities on the basis of trust and honesty, frankness and integrity, includingbut not limited to procurement, sales, R&D, foreign investment, etc., and integrate the spirit of fairness, impartiality,integrity and honesty into business transactions to protect and safeguard the legitimate rights and interests of bothparties.Every employee of HOYUAN is committed to integrity practice and takes integrity and honesty as their professionalethics. The Employee Handbook explicitly prohibits acts that violate business ethics, such as accepting bene?ts,duty encroachment, abuse of power for personal gains and frauds, and requires avoidance of special relationshipsto prevent con?icts of interest. Meanwhile, employees are required to sign the Integrity Practice Commitment Letterto acknowledge and abide by corporate systems and regulations, so as to act correctly.In addition, we have speci?ed anti-commercial bribery clauses, integrity covenants and corresponding penalties incontracts, so as to prohibit the provision of gifts and hospitality that are not in line with business practices or socialetiquette, and provide suppliers with a channel of complaint ?ling to show corporate intention of severely punishingcorruption behaviors and ensure that third-party partners are conform with corporate values and compliancephilosophy as well.During the reporting period, the company completed its annual internal audit and no significant design oroperational de?ciencies were identi?ed. Refer to the Internal Control Assessment Report for more details.
The company has issued the Management System for the Prevention of Unfair Competition in accordance with theAnti Unfair Competition Law of the People's Republic of China and the Anti-Monopoly Law of the People's Republicof China, and for the purpose of corporate business development, maintained publicity, and fostered the concept ofhealthy competition within the company; the legal department has synchronized the implementation of the require-ments for the prevention of unfair competition via model contracts and contract audits, conforms with the require-ments for trade compliance requirements at operation locations, and strive to become a responsible enterprise thatadvocates fair market competition.
With more focus on data security and personal information protection, strengthening information security controland personal privacy handling is conducive to enhancing brand value and building customer trust. HOYUANSolar Firmly Implemented ISO 27001 Information Security Management System (ISMS) Standard Requirements ,Information Security Incident Management Procedures, and Customer Privacy Protection Management System,compiled a list of information assets, assessed asset values and potential risks, based on requirements of ISO 27001information security management system standard as well as PDCA circulation and implementation of InformationSecurity Management Systems (ISMS); defined self-restraints on data security compliance, and set three-tierinformation security objectives for the company, departments, and projects; establish institutionalized third-partyinformation-handling principles and security requirements for data collection, processing, transmission, storage,and deletion.
Anti-corruption and Commercial Bribery
Anti-Unfair Competition
Responsible Information Management
The company promises that the business secrets and privacy information obtained due to business activities willonly be used for project promotion, prevent unauthorized and irrelevant personnel from accessing the data, reducethe risk of data leakage, and avoid disruption of business activities.In addition, ISMS reviews shall be chaired by the General Manager at least once a year. We provide vocational andtechnical education and skills training for all employees with ISMS management responsibilities, so as to raise themanagement awareness of relevant personnel and to ensure employees are quali?ed for their current positions withthe right skills.
The general manager serves as the highest person responsible for information se-curity, and head of each department shall be responsible for information securitymanagement respectivelyThe Information Security Management (ISM) Committee assists the general manag-er in coordinating information security management matters of the company;
All employees are required to sign a commitment letter of con?dentiality agreementand participate in information security education and training.
Annual ISMS internal audits are performed to review the reasonableness and e?ec-tiveness of control objectives, control measures, processes and procedures.
Focus ofManagement
Full Engagement
RiskManagement
Information Security Management Strategy
Coordination
Management
Execution
Information Security CommitteeInformation Security WorkgroupDepartment Head ofInformation Security
Cybersecurity DepartmentAdministrative Department
Information Security CommitteeAbout HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operation
for Long-term Development
Employer who gathers strength
and meets expectations
Guardian of Green Mountains
and Lucid WatersLeader of Clean Energythrough Collaboration
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
3536
PublicityProsecution
Accountability& Rewards
Cultural DevelopmentMonitoring ChannelsAccountability & RewardsThe company requires employeesto be honest and adhere to thebottom line via providing training,reminders at key points, and regulareducation and warnings, so as tocreate a candid
E-mail:
hongyuanjc@hongyuanxcl.com
Disposal of ViolationsIf an employee violates the Code ofConduct, the company will applypunishment in accordance with rele-vant regulations or refer such to thejudiciary depending on the severityof the case.Integrity IncentivesSuppliers who provide credible ev-idence and actively cooperate withinvestigations will be o?ered prefer-entials such as increased volume oforders and special payment terms;other employees and personnel from allwalks of life who report truthfully will berewarded as well.
Tel：18921275176Returning Address: General Manag-er's Office, No. 158, Nanhu MiddleRoad, Xuelang Street, Binhu District,Wuxi CityProtection of WhistleblowerThe company is committed to strictcon?dentiality of the whistleblower,protecting employee's complaintrights, and severely punishing anythreat or retaliation in this regard.
Coverage of Anti-corruption and Anti-commercial BriberyTraining for AllEmployees
Lawsuits on UnfairCompetition andAntitrust Practices
Con?rmedProceedings ofCorruption andBriberySignature Rate ofEmployee IntegrityAgreement
%%10000100
Business Ethics Key Performance During the Reporting Period
HOYUAN is committed to building a smooth, diversified and convenient communication channel for investorsso as to improve the efficiency and quality of information disclosure and communication. We keep constantcommunication with investors through interim announcements, periodic reports, e-interactions with ShanghaiStock Exchange, exclusive hotlines and mailboxes for investors, investment exchange meetings hosted by brokerageorganizations, and performance briefings, etc. In 2022, we issued 189 periodic reports and various interimannouncements, 4 performance briefings, responded 126 times (100%) via e-interactions with Shanghai StockExchange, and were awarded as Grade B in the information disclosure assessment of the Shanghai Stock Exchangefor 2021-2022.
Investor Relationship
Cash Dividend per Share (including tax) Social Contribution Value Per Share*
0.58
3.17
7.59
2.43
9.91
202020202021202120222022
*[Calculation formula] Social contribution value per share = Earnings per share + (Total tax payments + Employee expenses+ Interest expenses + Total public welfare amount - Social costs) / Total equity at the end of the period
Shareholder Returns
Internal Control and ComplianceEnforcement Mechanism
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
3738
Scientific and TechnologicalInnovationProduct Quality and SafetyCustomer RelationshipManagementSustainable Supply Chain
Leader of Clean Energythrough Collaboration
3837
Practitioner of Scienti?cOperation for Long-termDevelopment
| HOYUAN Green Energy Co.,Ltd. 2022 Environmental, Social and Governance (ESG) Report | About HOYUAN | 【Special Feature】Advocate who supports co-prosperity and sharing, green and low-carbon | Practitioner of Scienti?c Operation for Long-term Development | Employer who gathers strength and meets expectations | Guardian of Green Mountains and Lucid Waters | |||||||
Leader of Clean Energythrough Collaboration
3940
Scienti?c and TechnologicalInnovation
As a new energy enterprise equipped with the entire PV industry chain, HOYUAN has been increasing its R&Dinvestment, engaging in the fields of high-end equipment manufacturing, industrial silicon and crystallinesilicon, monocrystalline silicon wafers, solar cells, PV modules, new energy power stations, etc. for a long time,promoting the transformation of global green energy industry with "meta-power" through technological innovationempowerment, and providing more intelligent and cleaner green energy solutions based on corporate technologyand capacity.
Innovative Management
Mechanism
Self-owned
R&D
U
n
i
versity-In
d
ustry
R&D
Collaboration
Intellectual
Prope
rty
Protection
Increased Unit Production
Thinning Sheets Reduced Processing Time
Increased Crystal Pulling Rate
Reduced Wire DiameterSize DiversityIncreased Quali?cation Rate
MonocrystallineCrystal PullingMonocrystallineSilicon Wafer
including:
Total Domestic Patents
Invention Patent
Utility Model
Exterior Design
Software CopyrightRegistration
Number of Intellectual Property Patents
R&D Team Strength (Unit: %)
85.6714.33
Postgraduate
Undergraduate
Others
1.45
21.19
77.36
OtherPositions
R&DPosition
Year-on-year Growth
R&D Investment
%
million
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough Collaboration
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Since 2010, HOYUAN has actively cooperated with colleges and universities to carry out exchanges andpractical teaching, provide relevant education based on students' capabilities, deeply participate in thetalent training process, provide proper guidance, training and practical opportunities for students at di?erentstages, and comprehensively improve their practical ability and innovation ability. Besides, we have alsofocused on scienti?c and technological collaboration with research institutions for joint research on technical
CaseDeepen Industry-university-research Cooperation and Expand Talent Pool
approaches, accelerated the transformation of scienti?c and technologicalachievements, and removed obstacles in the "last mile" of industry-university-research collaboration.By the end of the reporting period, we had collaborated with fiveuniversities, including Zhejiang University, Southeast University, JiangnanUniversity, Nanjing Institute of Technology, Baotou Institute of VocationalTechnology, etc. and had become the Engineering Technology ResearchCenter for High Hardness and Brittle Material Processing Equipment inJiangsu Province, the Enterprise Technology Center recognized by JiangsuProvince, the Post-doctoral Innovation and Practice Base in JiangsuProvince, the Post-graduate R&D Cooperation Center in Jiangsu Province,and the R&D Cooperation Center for High-end Intelligent Equipments ofSiemens in Germany.
High-quality Interaction between Monocrystalline Silicon Business Technology
and Production Process
4142
Product Quality and Safety
We continue to pursue quality excellence, create a quality management system in line with the characteristics ofthe photovoltaic industry, and enhance the e?ectiveness of product quality and safety management with qualitymanagement requirements of "assigning experts on professional tasks". The production of solar monocrystallinesilicon and silicon wafers has been certified by ISO 9001 quality management system certification. In terms ofproduct certi?cation, all series of wafers have passed the French ECS certi?cation, covering the entire chain of waferproduction, including crystal pulling, square opening, silicon wafers and recycled materials.
If defective products are identified within the factory or received by sales, the workshop shall serve as a contactpoint in handing, and QC department shall inspect such in accordance with relevant quality management systems,indicating the reasons for product downgrading, the reasons for product scrapping or sales, and put qualifiedproducts in the warehouse, etc., so as to ensure closed-loop management of mark, identification, inspection,handling, and improvement. In order to reduce product defect ratio, reduce return ratio to the warehouse, eachresponsible unit shall put forward long-term countermeasures for timely introduction, and the engineeringEmployee shall track the e?ectiveness as such until the case is closed; if the countermeasures are ine?ective, thennew ones shall be worked out and applied.
The company has formulated Incoming Material Inspection Management Regulations, IPQC Inspection andAssessment Management Specifications, FQC Management Regulations, Control Procedures for Non-conformityand Corrective and Preventive Measures, Recycled Material Flow Control Standards, Process Abnormality HandlingWorkflow and other quality management system documents, with incoming materials, production, packaging,pallet, warehousing and other processes well under control. The company also practiced 5M1E on-site qualitycontrol standards including man, machine, material, method, environment, and measurement to ensure all-around quality control management, so that incoming materials and products could satisfy design requirements,avoid major quality abnormalities, and no nonconforming products would be dispatched. The company constantlyimproves corporate quality management system, maximizes product reliability and stability, building an industry-leading high-value brand boasting high quality of HOYUAN.
Quality Management
Nonconformity ManagementFound nonconforming
products
Inspection ofnonconforming
products
Put forwardlong-termcountermeasuresDisposal of nonconforming productsReturn, rework/repair, downgrade,recycle, dismantle, scrap, concession
release
IncomingInspection
ProcessInspection
QualityControl ofShipment
Customer Relationship Management
HOYUAN has engaged in photovoltaic industry for over two decades, featuring quality service. We keep observingthe development of the era and changes in the marketplace to enhance corporate delivery capacity and providehighly e?ective and e?cient services for customers. In order to better understand actual needs and expectationsof customers, the company rolled out customer satisfaction surveys from the perspectives of product quality,service quality, price and delivery, etc., analyzed and evaluated survey results, took corrective measures to addressidentified problems, improved control procedures, enhanced user experience, and provided timely, professionaland high-quality after-sales services.We have made it a rule that initial communication should be kicked o? with the customer within 24 hours uponcomplaint for resolution deadline, remedy measures and future preventive measures. After obtaining customerapproval of the corrective scheme, relevant departments shall address the matter in a timely manner for apermanent resolution, keep tracking product improvement status, and compose a monthly customer complaintanalysis report based on facts and data.During the reporting period, no batch recall occurred due to quality related matters of the company.
In order to ensure that the company is in compliance with market regulations in its activities, we have formulatedthe Marketing Compliance Management Document, clarifying standards such as the code of conduct for publicityand data privacy protection, and provided regular training on compliance with marketing laws and regulations. Werespect consumer's right to information, provide detailed description of products and speci?cations, ensure trueand accurate product information, and mitigate potential risks such as label missing, false labeling, label theft, etcDuring the reporting period, no violations of marketing regulations or voluntary codes were reported.
Customer Service
Responsible Marketing
Performance, Size, Appearance, Package,Service Timeliness, Service Effectiveness,Service Attitude, Product Sales Price,Delivery Timeliness, Delivery Reliability
QuestionnaireResponse Rate
CustomerSatisfaction*%%
*[Calculation formula] Customer satisfaction = (total score of items ÷ number of questionnaires response) ÷ full score ofsingle items x 100%
Content of Survey
QualityControl ofFinishedProducts
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
4344
Sustainable Supply Chain
We have formulated Supplier Management Procedures to standardize the introduction procedure and daily man-agement of suppliers and establish scientific procurement cooperation system. According to the results of dailyevaluation and regular evaluation, the company e?ectively managed suppliers by eliminating unquali?ed suppliers,helped HOYUAN's sustainable supply chain, continuously improved product quality, reduced procurement costs andresource consumption, and improved brand image and core competitiveness.In terms of localization, we encourage localized procurement, which can improve the security of the supply chain,reduce transportation cost, mitigate potential negative impact on the environment. In addition, the extension of theindustrial chain can also help develop local economy and promote local employment likewise.
The company manages new suppliers in accordance with the Questionnaire for Newly Introduced Suppliers, adoptsthe entire process of assessment from relevant production licenses, quali?cations for product or service provisionbased on industry requirements, to third-party testing reports, etc., and selects qualified suppliers that satisfiescorporate business needs.
We perform a semi-annual performance assessment of suppliers, whereby the results are categorized into fourgrades. Assessment items include quali?ed rate of incoming materials, delivery rate, after-sales service, warehousingacceptance, production and use, etc. for a comprehensive review. For assessment results below expectation, thesupplier shall provide and execute an improvement within the speci?ed period. In 2022, 341 new suppliers wereintroduced.
Supplier Management
Supplier Access
Hierarchical Management & Performance Assessment
In addition to continuously improve management capacity, the company hosts on-site regular meetingswith main and auxiliary material suppliers, covering analysis of the actual on-site product use, analysisof subsequent product use, promotion of new products and effectiveness, as well as overall productstability, etc.
CaseSupplier Training
4443
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountains
and Lucid Waters
Leader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
4546
Employer whogathers strength andmeets expectations
4645
Equality, Diversity andInclusivenessEmployee Training andDevelopmentEmployee RightsOccupational Health and SafetyCharity and Public Welfare
Practitioner of Scienti?cOperation for Long-termDevelopment
| HOYUAN Green Energy Co.,Ltd. 2022 Environmental, Social and Governance (ESG) Report | About HOYUAN | 【Special Feature】Advocate who supports co-prosperity and sharing, green and low-carbon | Practitioner of Scienti?c Operation for Long-term Development | ||||
Employer who gathers strengthand meets expectations
| Leader of Clean Energy through Collaboration | Guardian of Green Mountains and Lucid Waters |
47484847
Equality, Diversity and Inclusiveness
Employee Training and Development
Good employment environment and harmonious labor relations are the basis for the rapid development ofHOYUAN. In order to avoid abuse of child labor, the company requires all applicants to ?ll out the registration form,and performs strict and careful inspection on the ID card of applicants. Candidates are only allowed for furtherprocedures after their photos and ID information checked without any problem. Before signing labor contracts, newemployees shall truthfully provide valid identification documents, degree and academic certificates, photos andmedical examination reports to make sure all employees have reached legal employment age. If anything abnormalis identi?ed, we will promptly inform relevant institutions and terminate the contract accordingly.
The company adheres to the principle of equal employment, equal pay for equal work, open social recruitment,campus recruitment, etc. in selecting and recruiting talents, so as to create an open and transparent environmentfor all job-seekers.
The company does not allow any form of discrimination or harassment, any discrimination in the recruitmentprocess of employees and in the actual performance of their work (e.g., promotions, rewards, training, etc.) due torace, color, age, gender, sexual orientation, ethnicity, disability, pregnancy, etc., or any form of corporal punishment,mental or physical oppression, verbal abuse, including the threat to engage in any such conduct.
The company attaches great importance to the democraticmanagement, participation and supervision of employees, and hasestablished a Labor Union in accordance with laws and regulations.After full consultation and agreement between the representativesof the Company and Employee representatives, a comprehensivecollective contract was signed. The company ensures thatemployees' lawful interests are safeguarded in terms of workinghours and rest, labor remuneration, insurance and welfare, laborprotection and occupational health, and skills training. Up to now,the coverage rate of collective contract employees is 100%, andthe coverage rate of protection agreements on female employeesis 100%, which effectively guarantees the rights and interests ofemployees.
HOYUAN encourages the corporate value of common development with employees. We ?rmly believe that an all-round training system is the core in individual and corporate development. We constantly empower employeesbased on the Employee Handbook and Annual Training Plan, whereby a diversified training model is in place toprovide employees with good learning atmosphere and easy access to learning opportunities.Anti-Forced Labor and Prohibition of Child Labor
Anti-Discrimination and Anti-Harassment
The Right of Freedom of Association and Collective Bargaining
The company provides induction trainingfor new employees, and arranges temporarytraining according to different situations,thus helping new employees integrating intonew job and lifestyle in a fast and smoothmanner; the company also arranges on-the-job training to instill internal/externalprofessional skills for constant employeedevelopment. Meanwhile, online and o?inetraining sessions are available to createlearning atmosphere in the company.
Projects Course System
Training Systemfor GenericCompetency
Training of New EmployeesGeneral Vocational Skills TrainingManagement/Leadership DevelopmentTraining Systemfor ProfessionalCompetency
Specialized Capacity Development forEach Business SectorSpecialized Capacity Development forEach Function
Case Job-speci?c training
On-the-job training is available in eachdepartment with training materialsrecorded and ?led.
CaseSkills Training for Special Work
The training for key process personneland personnel involved in keyenvironmental factors shall be providedby relevant responsible department,and they shall not get on the job untiltraining examination is passed andlicense granted.
the coverage rate ofcollective contractemployees is
the coverage rate ofprotection agreementson female employees is%%100100
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
4950
CaseDaily Training in WorkshopAccording to the Annual TrainingPlan, each department shall providetraining on safety technology andmanagement, process operationprocedures and theories, equip-ment operation and maintenance,corporate culture and quality, envi-ronment, safety, intellectual prop-erty, energy management system,etc.
In order to ensure industry-university-research collaboration and better fulfill the agreement ofnurturing talents from dual channels, four HOYUAN classes were set up in joint efforts with BaotouLight Industry Vocational and Technical College in 2020. During the early stages of this scholarship, inorder to encourage students to pursue professional knowledge, actively participate in the later stageofcorporate practice, and strive to become outstanding talents in line with corporate requirements,HOYUAN Scholarship was granted every semester as an incentive.
HOYUAN Scholarship
The objectives are implementing corporate talent strategy, improving overall cultural quality andacademic level and structure, cultivating a high-quality talent team, and enhancing corporatecompetitiveness. All enrolled candidates will be allocated tuition allowances according to overallcorporate arrangement for improving the education background of employees.
Allowances for Further Learning
Employee Rights
In order to attract, motivate and retain outstanding talents, HOYUAN provides employees with comprehensive andcompetitive compensation and welfare packages on the basis of market conditions and job features, formulates andcontinuously improves the system related to Compensation Management Regulations, respects contribution fromemployees, and stimulates enthusiasm and initiative in daily work.
We have established complete employee protection system. In addition to statutory holiday, we also provide mater-nity leave, marriage and funeral leave, sick leave, nursing leave, etc. for eligible employees, so as to ensure employ-ees take necessary rest and vacation; the company also arranges annual health examination to remind employeesof the importance of their own health, so that they can work more at ease and enjoy a happier life.
Performance management is a necessary tool in realizing strategic goals of the company and serves as a manage-ment tool to enhance employee value and corporate value. HOYUAN follows the principles of "objectivity, impar-tiality, fairness, openness, and dual communication" to conduct performance appraisals in di?erent categories andvarious levels, whereby the results are directly linked with bonuses, salary adjustments, and job promotions, so asto attract, motivate, and retain high-performance talents for further development of the company.
The company continues to improve its compensation and welfare system to provide employees with competitivecompensation and welfare. In this way, employees will be able to enjoy better work and life conditions, as well aswelfare and bene?ts including health protection, daily life care, team-building activities, holiday allowances, etc.
Compensation and Incentives
Welfare and Bene?ts
Corporate Remuneration StructureRemuneration Category FinancialNon-?nancial
RemunerationItem
Basic SalaryStatutory Paid Leave
Company WelfareStatutory Bene?ts Non-cash & Other IncentivesCompany Bene?ts
Performance-based Incentives,Special Incentives, Other Bonuses
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough Collaboration
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
5152
Rich Activities for Employee Vitality
Share Moments with Families
Celebration of Female Workers' Contribution on the International Women's Day
HOYUAN carefully prepared holidaygifts for all female workers, withsincere wishes and blessings,celebrating a wonderful InternationalWomen's Day on March 8.
The company arranges all kinds ofinteresting parent-child activities tofurther enrich summer vacation ofemployees' kids, boost employeehappiness, and ensure every employee'schild feel the love from the company.
The company arranges a wide variety ofcultural and sports activities on a regularbasis to further enrich the spare timeof employees, stimulate their vitalityand enthusiasm for work, and alsocontinuously enhance team spirit andEmployee orientation, cohesion andexecution determination.
Listen to the Voice of Employees for Mutual Development with the Company
In order to strengthen internal Employee communication and exchange,better understand Employee opinions, improve Employee engagement, andenhance scienti?c management of the company, a Employee voice channel isestablished in this regard.
The company arranges democratic communication channels for employees, listens to employees' voices in a directmanner, actively encourages employees to get engaged in corporate management and construction, effectivelyhelps employees solve practical problems, and creates a harmonious and orderly working environment.
Communication MechanismEmployee feedback
f employees have any ideas, concerns or are treated unreasonably or unfairly, theycan report to their managers and further escalated by their managers, etc. Theoriginal decision shall remain in force until any change is decided and applied.Meeting
Various departments arrange their own regular business and communicationmeetings for comprehensive information noti?cation and report, businessexchange, opinion expression, etc.Internal Email
Internal email system of the company serves as a common channel for dailycommunication amongst departments; thus, everyone is encouraged tocommunicate as such.O?ce Automation System
Employees can log into the system according to their job authority to accesscorporate announcements, corporate news, process documents, rules andregulations, etc. They can also exchange and share information, and requestrelevant process approvals via this platform.Notice Board
A notice board has been set up in the workshop, where corporate notices and otherinformation relevant to employees shall be posted. The notice board is one of themost important channels for corporate information release.
Workers' Congress
Workers' congress serves as the basic form of democratic management of thecompany. It is regarded as the democratic organization of corporate employees toexercise management in a democratic manner, and it serves as the communicationbridge between the employees and the managers for exchange of ideas andopinions accordingly.
Communication and FeedbackCase
Case
Case
Case
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
5354
Occupational Health and Safety
The company is committed to creating a safe and healthy working environment for its employees, whereby theSafety Production Management Committee (hereinafter referred to as the Safety Committee) has been set up forformulating safety training objectives and work plans, guiding daily safety management, fully implementing thepolicy of "safety foremost, prevention ?rst, and comprehensive treatment", and e?ectively safeguarding the healthand rights of all employees.
Occupational health and safety is a priority on HOYUAN’s agenda. We believe that ensuring a safe and healthyworkplace is the basic protection a company could provide for its employees.
The company continuously promotes the construction of dual prevention mechanism for production safety,comprehensively investigates, identifies and evaluates risks, takes responsibility of safety risk managementand control, applies effective measures to mitigate major safety risks, and ensures standardized control andmanagement of corporate risk-related matters; the company establishes and improves potential risk investigationand management system, comprehensively investigates, timely manages and eliminates potential risks andaccidents, and ensures closed-loop management of potential risk investigation and governance, and continuouslyimproves corporate production safety all along. During the reporting period, we organized 134 special safetyinspections, with a total of 3,183 hidden dangers investigated. Up to now, 3,183 rectification items have beencompleted, with a recti?cation rate of 100%
.
HOYUAN has established the Occupational Health Management System to strengthen management of preventionand control of occupational hazards, and effectively protect health and safety of workers at work. The companyprovides employees with occupational health examinations to identify adverse e?ects of occupational hazards in atimely manner, and maximize the health and safety of employees. For positions involving occupational hazards, thecompany informs relevant employees when they get onboard, set up warning signs of occupational disease hazardin relevant locations, regularly announce the results of occupational hazards testing, and organize occupationalhealth training and education accordingly. Meanwhile, we provide employees with occupational disease protectiveequipment and health food products that comply with national and industry standards, and supervise employees touse and wear protective equipment and devices appropriately.
Occupational Health and Safety Management System
Risk Identi?cation & Management
Prevention and Control of Occupational Hazards
In order to improve the ability to prevent and handle sudden production safety accidentsand scienti?cally respond to various types of accidents that may occur in the productionprocess, the company has formulated the Emergency Response Plan for Production SafetyAccidents, including a comprehensive plan, special emergency plan for special equip-ment, and on-site accident handling schemes for electrocution accidents, mechanicalinjuries, and con?ned space. At the end of the reporting period, the investment in safetyeducation and training amounted to RMB 15 million, with 160 training sessions attendedby a total of 9,700 participants and a total training duration of 30,000 hours.
Emergency Management Mechanism
Outstanding Performance in the Promotion Week of Law on Prevention and Control of Occupational Disease
During the promotion week of Law on Preventionand Control of Occupational Disease, thecompany further improved workers' awarenessof occupational health, helped them to obtainknowledge and understand legal norms relatedto the prevention and control of occupationaldiseases, and improved their awareness ofoccupational disease prevention and controlmeasures for mutual combat in this regard.
Fire-fighting Equipment Training
Emergency Drill for Vehicle Injury Fire Safety Education and Training
Training on Typical Accidents
the investment in safetyeducation and trainingamounted to RMB
million
At the end of thereporting period
Case
Data from HOYUAN , HOYUAN New Material (Baotou) and HOYUAN Energy.
HOYUAN Green Energy Safety Production Management Committee
Work Safety O?ce
SalesDepartment
Technical CentersManufacturing
Department
ProductionTechnologyDepartment
Technical Service
Department
Human Resources
DepartmentFinancialDepartment
WarehouseDepartmentSecurities Service
Department
ProcurementDepartmentWork Safety
O?ce
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountains
and Lucid WatersLeader of Clean Energythrough Collaboration
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
5556
Charity and Public Welfare
During corporate development, HOYUAN actively undertakes social responsibilities, gets engaged in public welfaredonations and sponsorships, organizes all kinds of voluntary activities, makes every e?ort to promote rural revital-ization, assists disadvantaged groups in society, focuses the needs of society, continues to provide care, and con-tributes to the building of a harmonious society. During the reporting period, the total donations of the companyamounted to approximately RMB 13.17 million, with 529 hours of volunteer services from 3,634 volunteers through-out the year.
HOYUAN promotes volunteer cause, encourages employees to take active part in volunteer services so as to improvecorporate image as well as integrate volunteer services as part of their responsibilities.Volunteer for Emergency Rescue to Safeguard Lives
In order to effectively mitigate disaster and promotesuch awareness, the company rolled out a meteorologi-cal disaster prevention and mitigation week through on-line and offline channels with the theme of "mitigatingdisaster and risks to safeguard our mutual home".
HOYUAN is committed to ful?lling its social responsibility and practicing the core value of "integrity, pragmatism,dedication, innovation and e?ciency", and continues to make continuous e?orts for rural revitalization by providingtargeted assistance and counterpart assistance.
Signing Ceremony of Public Welfare Foundation of Wuxi Merchants
On August 1, 2022, the company signed an agree-ment for donation of RMB 3 million to Public Wel-fare Foundation of Wuxi Merchants.
Contribution to Rural Revitalization
In order to support social charity and public welfare, the company donated a total of RMB 29,000 in this re-gard.
Condolence Activity
In order to improve collaboration with CESEC andmotivate front-line workers, the company organizedon-site condolence activities for CESEC during theMay Day holiday.
Love Donation DayFrom December 28th to 30th, 2022, the company took"extensive mobilization, emphasis on participation, ad-herence to voluntary, diverse forms" as the principle ofthe activities, advocating that the majority of cadres andworkers and self-employed people to donate a day's sal-ary or income, and practicing the original mission withconcrete actions.
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total donationsvolunteer servicesvolunteers
millionhourspeople
13.175293,634
During the reporting period
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strength
and meets expectations
Guardian of Green Mountains
and Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
5758
Guardian of GreenMountains and LucidWaters
5857
Environmental ManagementComplianceEnergy ManagementWater ManagementWaste Management andDischargeResponse to Climate Change
Practitioner of Scienti?cOperation for Long-termDevelopment
| HOYUAN Green Energy Co.,Ltd. 2022 Environmental, Social and Governance (ESG) Report | About HOYUAN | 【Special Feature】Advocate who supports co-prosperity and sharing, green and low-carbon | Practitioner of Scienti?c Operation for Long-term Development | Employer who gathers strength and meets expectations | |||||
Guardian of Green Mountainsand Lucid Waters
5960
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operation
for Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Environmental Management Compliance
HOYUAN strictly abides by the Environmental Protection Law of the People's Republic of China, Prevention andControl of Water Pollution Law of the People's Republic of China, Atmospheric Pollution Prevention and ControlLaw of the People's Republic of China, and other relevant laws and regulations. The company follows the purpose of"protecting the environment for the bene?t of mankind", comprehensively supervising and managing environmentalprotection, and maintaining the safety of the ecological environment in a practical manner. During the reportingperiod, the company had no major pollution leaks and environmental violations.The company ensures environmental management in accordance with ISO 14001 standard, and continues toimprove and optimize the environmental management system, whereby HOYUAN New Material (Baotou) hasalready passed the certi?cation and other subsidiaries are actively following suit. The plan is that all subsidiaries ofthe company will be covered by system certi?cation. In accordance with the principle of "source control, processcontrol, terminal management", we have formulated an environmental management network mechanism,coordinated by the EHS department, clarified goals and tasks of environmental protection for all employees,integrated environmental protection into all aspects of production and operation, identified environmentalfactors, and organized basic management inspections on a regular basis, so as to continuously improveenvironmental management, institutionalize, standardize and systematize environmental protection in this regard.In addition, we connect environmental objectives with the performance of workshops and teams, implement theresponsibility system for environmental protection, and hold accountable those who fail to ful?ll their managementresponsibilities and disqualify them from performance rewards accordingly.
The company aims to address the root causes and improve the quality of environmental management byformulating an annual environmental implementation plan every year, and have met all targets set for 2022. Thecapital investment in environmental protection during the reporting period amounted to RMB 84.08million.
Environmental
ManagementComplianceMeasures
Environmentalprotection publicity and
training to strengthen
environmental
awareness of all
EmployeeImprove theenvironmental
protectionmanagement system
Increase investmentin environmentalprotection to ensure
special energyconservation andemission reduction
Strengthenenvironmentalmanagement toensure regulation
is in place
2022 Environmental Objectives
Compliance ofenvironmental pollutantemissionsMajor environmentalpollution accidents
Completion of environmentalprotection emergency drills
Compliance ofhazardous wastedisposal
Investigation and dis-posal of environmentalpollution accidents
Control of keyenvironmental factors
Implementation ofenvironmental training plan
%
%
%
%
%
%
The company organizes regular training on the basisof environmental protection laws & regulations andenvironmental management system, and constantlyimproves employees' awareness of environmental pro-tection and the concept of environmental regulations.In 2022, HOYUAN and HOYUAN New Material (Baotou)hosted 12 environment-related training with a total of576 participants.
HOYUAN and HOYUAN NewMaterial (Baotou) hosted
a total ofenvironment-related trainingparticipants12576
In 2022
Specialized Training onEnvironmental Laws & Reg-ulations
6162
Training on Environmental Protection Knowledge
Energy Management
HOYUAN adheres to the concept of green manufacturing, and integrates green and low-carbon philosophy into the entire process of production and manufacturing. The companyhas prioritized the utilization of energy-efficient machines and equipment against highenergy-consuming equipment, and set up automated production lines, etc. for labor costsreduction and production e?ciency improvement, ensuring a greener and more scienti?cproduction process.HOYUAN New Material (Baotou) has passed ISO 50001 system certification and built anenergy management system. In order to strengthen energy management and improve energyutilization, we have formulated documents such as Energy Management System and EnergyManagement Control Procedures for scienti?c supervision, management and analysis of theentire process of energy procurement, supply, distribution, utilization and measurement. Wehave ensured e?ective control of energy consumed in the production and service process,so as to improve energy utilization, reduce energy consumption and save energy costs inthe production process to achieve energy goals of the company. The Power & EquipmentDepartment is responsible for energy management of the company, including preparationof relevant energy process management rules, design planning and supply distribution ofenergy consumption, and development of on-site energy inspection program, with at leastfour on-site inspections on a monthly basis to supervise energy waste behaviors and ensureproper recti?cation measures in place.
procurement
distributionutilization
measurement
supply
In 2022, HOYUAN New Material (Baotou) rolled out efficient and consumption-reducing technological innovationprojects, including adopting high-efficiency furnace to reduce electricity consumption, developing a new waterquenching process to reduce material loss, and applying environment-friendly and energy-saving resin materials toreduce steam energy consumption, with a total of 1,220.5kWh of electricity saved. Meanwhile, HOYUAN New Material(Baotou) was also recognized as one of the Top Ten Energy (Water) E?ciency Benchmarking Leading Enterprises inBaotou.
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Apply New Materials to Reduce Energy Consumption
Energy Conservation Week of HOYUAN New Material (Baotou)
At present, monocrystalline thermal fields mainly take PAN(polyacrylonitrile) mats as the main insulation material. PAN matsboast better oxidation resistance and higher thermal conductivity. Inthe production of monocrystalline, there is huge heat loss, signi?cantlyincreasing electricity consumption and its production costs. In thisregard, we have established a heat loss model for the thermal fieldby simulating the data of the environment, and applied a new typeof thermal insulation material prepared from plant ?bers（right）toenhance the thermal insulation performance of the upper, lower andsurrounding parts of the thermal ?eld to prevent large amounts of heatloss and maximize the utilization of heat generated. Comparativelyspeaking, energy consumption is reduced by about 6% on average.
From June to July 2022, Power Facilities Department and SustainableImprovement Departments of HOYUAN New Material (Baotou)jointly hosted a special event with the theme "What have I doneto save energy". The event focused on green, energy-saving, low-carbon production and lifestyle, guiding all corporate Employee topay attention to energy conservation & consumption reduction andimprove energy efficiency by means of demonstrating status quo forthe sake of green and low-carbon development of the company.
Strengthen energy-saving management via energy-saving technological transformation,and ultimately achieve the advanced value of energy consumption per unit of productConstruct photovoltaic distribution on plant roof and vacant ground by means ofphotovoltaic materials produced by the company so as to apply photovoltaic electricitygeneration for material productionIncrease the proportion of green power in the production process so as to set a keymilestone for corporate carbon neutrality commitment
Long-termGoals for Energy
Management
Offline Energy Conservation Poster
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operation
for Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
6364
Water Management
All of the company's bases are not built near water resource protection areas,and the water used by the company is taken from municipal water supply, andthere is no negative impact on local water resources management due to waterintake.In terms of production water, we have been seeking new ways of improvingwater management performance, for example, by applying air coolers forproduction equipment to reduce cold water amount and water consumptionin general. In addition, the company also plans the utilization of recycled water,whereby wastewater treatment devices are utilized to e?ectively convert siliconwastewater, fluorine wastewater, and domestic sewage into recycled waterso as to reduce water discharge and fresh water consumption. In 2022, slicingworkshop wastewater recycling project of HOYUAN New Material (Baotou)managed to save 715,700 tons of water on an annual basis.
slicing workshop wastewaterrecycling project of HOYUANNew Material (Baotou) managedto save 715,700 tons of water onan annual basis.
tons715,700
In 2022
Slicing Workshop Wastewater Recycling Project of HOYUAN New Material (Baotou)
Waste Management and Discharge
HOYUAN attaches great importance to the compliance management of waste and emissions, and actively takesmeasures to reduce pollution emissions to ensure 100% facilities equipped with pollution prevention and controlsystems are put into operation, 100% completion of pollutant self-monitoring tasks, 100% compliance of hazardouswaste collection and disposal, and 100% completion of waste water and waste gas self-monitoring tasks. In 2022,the company invested approximately RMB 49.14 million in environmental protection, covering waste gas, sewageand solid waste treatment.
In 2022, the company emitted 7.64 tons of nitrogen oxides, 0.95 tons of volatile organic compounds (VOCs), and 7.09tons of particulate matter.
Characteristic pollutants from exhaust gas of the company mainly include total suspended particulate matter,nitrogen oxides, toluene, xylene and non-methane total hydrocarbon, and the company is in compliance withIntegrated Emission Standard of Air Pollutants in all operation locations.In terms of particulate pollutants from the monocrystalline furnace such as cleaning dust, charging dust, machinesilicon crushing dust, etc., the company applies the control method of "collector + bagged dust collector + exhaustpipe" so as to reduce the amount of dust discharged into the air. In terms of acid mist waste gas, the company builtthree sets of new alkali spray scrubber towers for treatment in 2022, effectively improving the overall waste gastreatment e?ciency.
Exhaust Gas
Activated Carbon System Modi?cation ProjectIn 2022, HOYUAN upgraded paint sprayingexhaust gas treatment device of the fac-tory by adding a new primary activatedwhich not only ensured the stable emis-sion concentration and met the standard,but also controlled the removal e?ciency.The modi?ed secondary activated carbonadsorption manages to reach the removale?ciency no less than 80% of non-meth-ane total hydrocarbon.
CaseCase
About HOYUAN
【Special Feature】Advocate who supports co-prosperity and
sharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strength
and meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
6566
The company classi?es and manages general waste and hazardous waste, strictly standardizes waste managementin terms of waste generation, recycling, storage and transfer, and ensures on-time specialized inspection in place.The company determines hazardous waste according to the National Catalogue of Hazardous Wastes for eachproduction process waste, registers identified hazardous waste, and ensures unified management of hazardouswaste with reference to the Technical Speci?cation for Setting Identi?cation Signs of Hazardous Waste and Standardfor Pollution Control on Hazardous Waste Storage issued by the Ministry of Ecology and Environment. Transferringhazardous waste is strictly in accordance with established processes of the company so as to ensure standardizedmanagement.
The company follows relevant laws, regulations and standards, and has established corresponding managementsystems for wastewater collection, treatment, management, regular monitoring and emergency responseprocedures. In terms of wastewater generated in production, we ensure on-time collection and treatment, andreuse of the recycling water in the production process, so that industrial wastewater is properly recycled and waterresource recycling rate is improved in general.
Waste
Sewage
Case
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Fluoride Emission Reduction and Treatment
HOYUAN New Material (Baotou) signed awaste acid recycling and treatment contractwith a third-party company to recycle andreuse waste hydrofluoric acid and nitricacid generated from the pickling processof silicon materials, reduce the amountof concentrated acid disposed of at thewastewater treatment station, reduce thedischarge of mixed acid, and reduce the costof wastewater treatment. We manage toimprove ?uoride ion removal e?ciency at theatomization stage by adding highly efficientfluoride ion treatment chemicals to reduce?uoride emission concentration and alleviatethe treatment pressure on downstreame?uent plants.
Cascaded Utilization of Steam
The company utilizes steam in a cascaded manner,and reduces steam consumption in many ways to saveenergy and reduce carbon emissions. Since heat lossis inevitable during the delivery of 1.0 MPa steam, wehave adopted a cascaded utilization of steam by activelycontrolling the temperature and pressure reductionprocess, so as to reduce the temperature and pressureto 0.4 MPa steam for utilization after the loss of 1.0 MPasteam energy, and then reduce the temperature andpressure to 0.2 MPa steam for ?nal utilization. In addition,we also utilize the jacket and sump waste heat of thereduction furnace for condensate ?ash evaporation, andsteam generated in great amount thus is further utilizedfor the steam supply of the whole plant.
Response to Climate Change
Overexploitation of fossil energy and natural resources has led to a signi?cant increase in greenhouse gas emissions,leading to global warming and triggering a series of natural disasters, including heat waves, ?oods and droughts.Actively tackling carbon emissions has become a global consensus.The most effective way to reduce carbonemissions is to increase the proportion of non-fossil energy, while solar energy is recognized as a clean, economicalrenewable energy to help achieve carbon neutrality in the new era, and as the main global energy amongst all.Solar energy has become a key energy source for promoting energy diversification and achieving sustainabledevelopment. HOYUAN has planned a vertical integration of the photovoltaic industry chain on an expansive scale,constructed high-quality production lines to produce cutting-edge products to suit the rapid and high-qualitydevelopment of the photovoltaic industry, so as to contribute to the grand strategic goals of carbon peaking andcarbon neutrality of the Chinese government.In addition to providing clean energy technology solutions for different industries, we are also driving carbonreduction actions in our own operations and value chain. We continuously optimize energy e?ciency and reducethe carbon footprint of our products through the recycling of raw materials and packaging materials. In cooperationwith customers and suppliers, we have developed a process plan for the transfer and recycling of bale materials. In2022, 5,730 sets of composite bale materials of silicon rods have been recycled, and 921.4 tons of crucible bottommaterials have been puri?ed and reused.The company reduced CO2 emissions by 40,412,398 tons throughout 2022.
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operationfor Long-term Development
Employer who gathers strengthand meets expectations
Guardian of Green Mountainsand Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
6768
About HOYUAN
【Special Feature】Advocate who supports co-prosperity andsharing, green and low-carbon
Practitioner of Scienti?c Operation
for Long-term Development
Employer who gathers strength
and meets expectations
Guardian of Green Mountains
and Lucid WatersLeader of Clean Energythrough CollaborationHOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
Silicon Recycling and Reuse
In the monocrystalline silicon wafer production process, monocrystalline round rod is converted intosquare rod link, whereby loads of head, tail, and edge skin are left over and recognized as "recyclingmaterial". We recycle those recycling materials form the production process, and further put them intomonocrystalline furnace after testing, picking, and cleaning.In terms of recycling materials generated during the conversion process from monocrystalline crystalround rod into square rod, a special non-metallic cardboard box is used for collection, thereafter, a fullbox is sent to the pre-cleaning process for preliminary cleaning to remove the surface dirt, put into thebox again after cleaning, and then sent to the silicon workshop for further cleaning a second time. Thesilicon material workshop carries out pickling for di?erent kinds of recycling materials through di?erentacid-base ratio, reduces the content of metal impurities on the surface of circulating materials, makescirculating materials can be reused to pull crystals, and ensures the consistency of crystal rod quality. Bymeans of recycling materials, we have managed to exceed 97% recycling and reuse of monocrystallinesilicon materials.
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Recycled Material CollectionCirculating Material Cleaning
6970
Statement on Independence and Veri?cation Capability
T?V S?D is a trusted partner of choice for safety, security and sustainability solutions. It specialises in testing, certi?cation, auditing andadvisory services. Since 1866, T?V S?D has remained committed to its purpose of enabling progress by protecting people, the environmentand assets from technology-related risks. Today, T?V S?D is present in over 1,000 locations worldwide with its headquarters in Munich,Germany. T?V S?D has been committed to sustainable development and actively promotes environmental protection related projects. Overthe years, T?V S?D has been actively expanding its performance in energy management, renewable resources, and electric automobiles,etc., helping its customers meet sustainable development needs.T?V S?D Certi?cation and Testing (China) Co., Ltd. Shanghai Branch is one of T?V S?D's global branches and has an expert team whosemembers have professional background and rich industrial experiences.T?V S?D and HOYUAN are two entities independent of each other and both T?V S?D and HOYUAN and their branches or stakeholdershave no con?ict of interest. No member of the veri?cation team has business relationship with the Company. The veri?cation is completelyneutral.
Independent Veri?cation Statement
To the management and stakeholders of HOYUAN,T?V S?D Certi?cation and Testing (China) Co., Ltd. Shanghai Branch (hereinafter referred to as “T?V S?D”) has been engaged by HOYUANGreen Energy Co., Ltd. (hereinafter referred to as “HOYUAN” or “the Company”) to perform an independent third-party veri?cation onHOYUAN Green Energy Co., Ltd. 2022 Environment, Social and Governance Report (hereinafter referred to as “the Report"). During thisveri?cation, T?V S?D's veri?cation team strictly abided by the contract signed with HOYUAN and provided veri?cation regarding the Reportin accordance with the provisions agreed by both parties and within the authorized scope stipulated in the contract.This Independent Veri?cation Statement is based on the data and information collected by HOYUAN and provided to T?V S?D. The scope ofveri?cation is limited to the given information. HOYUAN shall be held accountable for authenticity and completeness of the provided dataand information.
LimitationsThe veri?cation process is conducted in the above scope and places. Sampling and veri?cation are adopted for the data and informationin the Report by T?V S?D, and only the stakeholders within the Company are interviewed; andThe Company's standpoint, opinions, forward-looking statements and predictive information as well as the historical data andinformation before January 1
st, 2022 are beyond the scope of this veri?cation.Basis for the Veri?cation
This veri?cation process was conducted by T?V S?D's expert team with extensive experience in the economic, environmental, social andother relevant areas and drew the conclusions thereof. The veri?cation is in accordance with the following standards:
International Standard on Assurance Engagements ISAE 3000(Revised),Assurance Engagements Other than Audits or Reviews ofHistoricalFinancial Information, Limited AssuranceT?V S?D Procedure of Veri?cation on Sustainability ReportIn order to perform adequate verification in accordance with the contract and provide reasonable verification for the conclusions, theveri?cation team conducted the following activities:
Preliminary investigation of the relevant information before the veri?cation;Con?rmation of the presence of the topics with high level of materiality and performance in the Report;On-site review of all supporting documents, data and other information provided by HOYUAN; tracing and veri?cation of key performanceinformation;Special interview with the representative of HOYUAN's management; interviews with the employees related to collection, compilationand reporting of the disclosed information; andOther procedures deemed necessary by the veri?cation team.
Scope of Veri?cation
Time frame of this veri?cation:
The Report contains the data disclosed by HOYUAN during the reporting period from January 1
st, 2022 to December 31
st, 2022, includingeconomic, environmental and social information and data, methods for management of material issues, actions/measures and theCompany's sustainability performance during the reporting period.Physical boundary of this veri?cation:
The on-site veri?cation sampling took place at below listed location:
158 Nanhu Middle Road, Xuelang Sub-district, Binhu District, Wuxi, Jiangsu Province, ChinaScope of data and information for the veri?cation:
The scope of veri?cation is limited to the data and information of HOYUAN and all companies under its operational control covered by the
Report.The following information and data are beyond the scope of this veri?cation:
Any information and contents beyond the reporting period of this Report; and
The data and information of HOYUAN's suppliers, partners and other third parties; and
The ?nancial data and information disclosed in this Report that have been audited by an independent third party are not veri?ed again
herein.
Veri?cation Conclusions
According to the veri?cation, we believe that the data and information presented in HOYUAN's report are objective, factual and reliable,without systematic problems, and can be used by stakeholders.
Inclusivity
HOYUAN has identi?ed the internal and external stakeholders such as shareholders and investors, employees,customers, suppliers, government and regulators, etc., and established a stakeholder communicationmechanism to collect the demands of stakeholders on a regular basis.Materiality
HOYUAN has established the prioritization process of material topics determination, identi?ed and assessed thepriority of the sustainability topics which are highly related to the industry, the Company disclosed the strategy,management approach as well as sustainability performance in corporate operation, therefore the Report'sadherence to materiality principle is guaranteed.Responsiveness
HOYUAN has disclosed the management approach and performance of high material topics that stakeholdersconcern,such as business ethics, energy management, employee training and development, occupationalhealth and safety, etc., and has established a communication mechanism, to fully respond to the demands andexpectations of stakeholders.Impact
HOYUAN has established a Sustainability Committee to enhance the company's e?orts in the areas ofenvironmental, social responsibility and corporate governance. By leading the development of the Company'sESG strategic planning, policies and work plans, reviewing and approving the ESG annual report, and regularlyevaluating the implementation of the Company's ESG work, the Company will continue to promote the processof corporate sustainable development work.Recommendations on Continuous ImprovementIt is recommended that the Company discloses more information about their management practices and performance in addressingclimate change in the future in accordance with theTask Force on Climate-Related Financial Disclosures (TCFD)framework.
Signature:
On Behalf of T?V S?D Certi?cation and Testing (China)Co., Ltd. Shanghai Branch
Zhu WenjunT?V S?D Sustainability Authorized Signatory O?cerJuly 28th, 2023 Shanghai, China
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AppendixKey Performance TableEconomic Performance
Governance performance
Social PerformanceEmployee Employment
Indicators 202020212022UnitTotal Assets49.01144.91210.34
Hundrend millionNet Assets 26.6274.41125.36Revenue 30.11109.15219.09Total Tax 1.092.776.64
Indicators 202020212022UnitCoverage of Business Ethics Training 100100100
%Signature Rate of Employee IntegrityAgreement
100100100Signature Rate of Integrity Agreementwith Suppliers
100100100Systemic Risk000Times
Indicators202020212022UnitTotal Number of Employees2,9825,3707,245
PersonCategories of Professional Composition
Production Personnel 2,1693,9794,727Sales Personnel 283128Technical Personnel 4358131,286Finance Personnel 141543Administrative Personnel 3365321,161
Human Rights TrainingIndicators 202020212022UnitNumber of Employee Trained on Human Rights 345962Person
Employee TrainingIndicators 2022Unit
By Gender
Hour
Male Employees20.25Female Employees22.99By Employee CategorySenior Executives8.00Middle Management10.14General Managers4.41General Employees21.35
Indicators 202020212022UnitEducation Background
PersonDoctor 122Master112748Undergraduate3355941,071Junior College1,2412,0412,611Senior High school and Below 1,3942,7063,513Hiring Rate
35.4733.8224.66%
[Calculation formula] Employee hiring rate = Number of new employees during the reporting period ÷ (Number of employees on board atthe end of the reporting period + Number of employees leaving during the reporting period)×100.
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Indicators202020212022UnitTotal number of employees on parental leave41101173
person
Male employees eligible for paternity leave4192159Female employees eligible for maternity leave0914Total number of employees returning to work after vacation4198170
Male4192159Female0611Total number of employees staying at their positions over 12 months afterreturning to work
4198170Male4192159Female0611Retention Rate
10097.0398.27%
Indicators2022UnitCoverage of Physical Examination for Employees 100
%Lost-time Accident Rate 0Rate of Serious Lost-time Accidents0Absence Rate 0Work-related Injury Rate 0Times/million working hoursOcupational Diseases 0Case
[Calculation formula] Retention rate = total number of male (female) employees still in service at the end of the reporting period÷ total num-ber of male (female) employees who returned to work after parental leave during the reporting period ×100
Parental Leave
Occupational Health & Safety
Environmental Performance
Indicators
Emission Source
202020212022Unit
Direct (Scope 1) GHGEmissions
Gas 113.66151.67155.38
Tons of CarbonDioxide Equiva-lent
Gasoline133.25173.32181.02Diesel13.10178.30193.71Energy Indirect (Scope 2)GHG Emissions
Outsourcing Electricity215,431.07 686,461.91 1,100,561.76Total Emissions (Scope 1 & 2) 215,691.08 686,965.20 1,101,091.88
Emission intensity per RMB 10,000 output value 0.720.630.50
Tons of carbondioxide equiv-alent / RMB10,000 outputvalue
The emission factors are taken from the 2006 IPCC Guidelines for National Greenhouse Gas Inventories and the Ministry of Ecologyand Environment's Notice on the Work Related to the Management of Greenhouse Gas Emission Reporting by Enterprises in the PowerGeneration Sector in 2023-2025. Due to the expansion of production capacity, corporate greenhouse gas emissions have been rising yearon year, and the intensity of greenhouse gas emissions has been reduced year on year through energy saving and emission reductioninitiatives.
Energy Utilization
GHG Emissions
Indicators202020212022Unit
Natural Gas
56843.7175851.1677706.16m?2024.122700.962767.00GJ
Gasoline
55600.0072318.0075530.16L1738.332261.022361.44GJ
Diesel
5030.0068485.0074405.00L
180.442456.712669.07GJ
Outsourcing Electricity
377,750,423.001,203,685,626.001,929,794,431.00Kwh1,359,901.524,333,268.256,947,259.95GJ
Total Energy Consumption 1,363,844.41 4,340,686.946,955,057.47 GJ
Proportion of Outsourced Electricity in Total
Energy Consumption
99.7199.8399.89%
Energy Consumption Intensity of Output
Value (RMB 10,000)
4.533.983.17
GJ perOutputValue (RMB10,000)
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Indicators202020212022Unit
Total Water Withdrawal 1,648,945.134,097,940.616,824,387.00
TonTotal Water Discharge 485,656.841,220,395.082,038,524.60Total Water Consumption1,163,288.292,877,545.534,785,862.40
Category 202020212022UnitHazardous Waste6.978.2810.69
TonGeneral Solid Waste 3,3006,20029,100Total Solid Waste3,306.976,208.2829,110.69
Category 202020212022UnitTotal weight of materialsthat are used to produce andpackage the organization'sprimary products (non-renewable materials)
1,2913,1063,847
TonTotal weight of materialsthat are used to produce andpackage the organization'sprimary products (renewablematerials)
2561,4173,114
Percentage of recycled inputmaterials used to manufacturethe organization's primaryproducts and services (%)[ Proportion of silicon recycledand reused in the productionprocess of HOYUAN NewMaterial (Baotou) (%) ]
464650%
Water Resources Utilization ·
Solid Waste Disposal
Material Utilization
Proportion of silicon recycled and reused in the production process of HOYUAN New Material (Baotou) (%)
14.2 Index Sheet
14.2.1 GRI content index
DisclosureLocation
GRI 2: General Disclosures 2021The Organization and its Reporting Practices2-1 Organizational details About HOYUAN2-2 Entities included in the organization’s sustainability reportingBreakdown of Reporting Scope Subsidiaries2-3 Reporting period, frequency and contact pointAbout this Report2-4 Restatements of informationThis is our ?rst ESG report.2-5 External assurance
About this ReportIndependent Veri?cation StatementActivities and Workers2-6 Activities, value chain and other business relationships About HOYUAN2-7 Employees
Employer who gathers strength and meets
expectations2-8 Workers who are not employeesEmployee RightsGovernance2-9 Governance structure and composition Corporate Governance2-10 Nomination and selection of the highest governance body Corporate Governance2-11 Chair of the highest governance body Corporate Governance2-12 Role of the highest governance body in overseeing the management ofimpacts
Corporate Governance2-13 Delegation of responsibility for managing impactsSustainable Management2-14 Role of the highest governance body in sustainability reporting Materiality Analysis
Statement of use
HOYUAN Green Energy Co., Ltd. has reported in accordance with the GRIStandards for the period from 1 January 2022 to 31 December 2022.GRI 1 UsedGRI 1: Foundation 2021Applicable GRI Industry Standard（s）
None
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
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DisclosureLocation
2-15 Con?ict of interest Corporate Governance2-16 Communication of critical concerns
Sustainable ManagementStakeholders Engagement2-17 Collective knowledge of the highest governance bodyStakeholders Engagement2-18 Evaluation of the performance of the highest governance body Corporate Governance2-19 Remuneration policiesCompensation and Incentives2-20 Process to determine remunerationCompensation and Incentives2-21 Annual total compensation ratioEquality, Diversity and Inclusiveness
Strategy, Policies and Practices2-22 Statement on sustainable development strategyMessage from Chairman2-23 Policy commitments Legal Compliance2-24 Embedding policy commitmentsEquality, Diversity and Inclusiveness2-25Processes to remediate negative impactsLegal Compliance2-26 Mechanisms for seeking advice and raising concernsLegal Compliance2-27Compliance with laws and regulations Legal Compliance2-28Membership of associationsAbout HOYUANStakeholder Engagement2-29 Approach to stakeholder engagementStakeholders Engagement2-30 Collective bargaining agreements
The Right of Freedom of Association and Collective
Bargaining
GRI3：Material Topics 2021
3-1Process to determine material topicsMateriality Analysis3-2List of material topicsMateriality AnalysisGRI203： Indirect Economic Impacts 20163-3Management of material topicsCharity and Public Welfare203-1Infrastructure investments and services supportedCharity and Public Welfare203-2Signi?cant indirect economic impactsCharity and Public Welfare
DisclosureLocation
GRI204： Procurement Practices 2016
3-3 Management of material topicsSustainable Supply Chain204-1Proportion of spending on local suppliers
Con?dentiality constraints : private information
of the organization is involvedGRI205： Anti-corruption 20163-3Management of material topicsLegal Compliance205-1Operations assessed for risks related to corruptionLegal Compliance205-2205-2 Communication and training about anti-corruption policies andprocedures
Legal Compliance205-3205-3 Con?rmed incidents of corruption and actions takenLegal ComplianceGRI206：Anti-competitive Behavior 20163-3 Management of material topicsLegal Compliance206-1Legal actions for anti-competitive behavior, anti-trust, and monopolypractices
Legal ComplianceGRI301： Materials 20163-3Management of material topicsResponse to Climate Change301-1Materials used by weight or volumeKey Performance Table - Environment301-2 Recycled input materials usedKey Performance Table - EnvironmentGRI302： Energy 20163-3Management of material topicsEnergy Management302-1Energy consumption within the organizationKey Performance Table - Environment302-3Energy intensity Key Performance Table - Environment302-4Reduction of energy consumptionEnergy Management
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HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) ReportDisclosureLocation302-5Reductions in energy requirements of products andservices
Energy ManagementGRI303： Water and E?uents 2018
3-3Management of material topics Water Management303-1nteractions with water as a shared resourcWater Management303-2Management of water discharge-related impactsEnvironmental Management Compliance303-3Water withdrawalKey Performance Table - Environment303-4 Water dischargeKey Performance Table - Environment303-5Water consumption Key Performance Table - EnvironmentGRI305：Emissions 20163-3Management of material topics Response to Climate Change305-1Direct (Scope 1) GHG emissionsKey Performance Table - Environment305-2 Energy indirect (Scope 2) GHG emissionsKey Performance Table - Environment305-4GHG emissions intensityKey Performance Table - Environment305-5Reduction of GHG emissionsResponse to Climate Change305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and othersigni?cant air emissions305-7
Waste Management and Discharge
GRI306：Waste 2020
3-3Management of material topics Waste Management and Discharge306-1Waste generation and signi?cant waste-related impactsWaste Management and Discharge306-2Management of signi?cant waste-related impacts
Waste Management and DischargeResponse to Climate Change306-3 Waste generatedKey Performance Table - Environment306-4Waste diverted from disposalKey Performance Table - Environment306-5Waste directed to disposalKey Performance Table - Environment
DisclosureLocation
GRI308： Supplier Environmental Assessment 2016
3-3Management of material topics Sustainable Supply ChainGRI401： Employment 20163-3Management of material topics Equality, Diversity and Inclusiveness401-1 New employee hires and employee turnoverKey Performance Table - Society401-2Bene?ts provided to full-time employees that are not providedto temporary or part-time employees
Employee Rights401-3Parental leave Key Performance Table - Society
GRI402：Labor/Management Relations 2016
3-3Management of material topics Equality, Diversity and Inclusiveness402-1Minimum notice periods regarding operational changesEquality, Diversity and InclusivenessGRI403：Occupational Health and Safety 2018
3-3Management of material topics Equality, Diversity and Inclusiveness403-1Occupational health and safety management systemKey Performance Table - Society403-2Hazard identification, risk assessment, and incidentinvestigation
Employee Rights403-3Occupational health servicesKey Performance Table - Society403-4Worker participation, consultation, and communication onoccupational health and safety
Equality, Diversity and Inclusiveness403-5Worker training on occupational health and safetyKey Performance Table - Society403-6Promotion of worker healthEmployee Rights403-7Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
Key Performance Table - Society403-8Workers covered by an occupational health and safetymanagement system
Equality, Diversity and Inclusiveness
8182
DisclosureLocation
403-9Work-related injuriesKey Performance Table - Society403-10、 Work-related ill healthEmployee RightsGRI404： Training and Education 2016
3-3Management of material topics Employee Training and Development404-1Average hours of training per year per employeeKey Performance Table - Society404-2Programs for upgrading employee skills andtransition assistance programs
Employee Training and Development404-3 Percentage of employees receiving regularperformance and career development reviews
Employee Rights
GRI405： Diversity and Equal Opportunity 20163-3Management of material topics Equality, Diversity and Inclusiveness405-1Diversity of governance bodies and employeesKey Performance Table - Society405-2 Ratio of basic salary and remuneration of women tomen
Equality, Diversity and InclusivenessGRI406：Non-discrimination 20163-3Management of material topics Equality, Diversity and Inclusiveness406-1Incidents of discrimination and corrective actionstaken
Equality, Diversity and InclusivenessGRI407： Freedom of Association and Collective Bargaining 20163-3Management of material topics Equality, Diversity and InclusivenessGRI408：Child Labor 20163-3Management of material topics Equality, Diversity and Inclusiveness
GRI409：Forced or Compulsory Labor 2016
3-3Management of material topics Equality, Diversity and Inclusiveness
DisclosureLocation
GRI410：Security Practices 20163-3Management of material topics Equality, Diversity and Inclusiveness410-1Security personnel trained in human rights policies orprocedures
Key Performance Table - SocietyGRI411：Rights of Indigenous Peoples 20163-3Management of material topics Charity and Public Welfare411-1Incidents of violations involving rights of indigenous peoples
N/A: The organization has not involved in violations of the
rights of indigenous peoplesGRI413：Local Communities 20163-3Management of material topics Charity and Public WelfareGRI414：Supplier Social Assessment 20163-3Management of material topics Sustainable Supply ChainGRI416：Customer Health and Safety 20163-3Management of material topics Product Quality and Safety416-1Assessment of the health and safety impacts of product andservice categories
Product Quality and Safety416-2Incidents of non-compliance concerning the health andsafety impacts of products and services
Product Quality and SafetyGRI417：Marketing and Labeling 20163-3Management of material topics Customer Relationship Management417-1Requirements for product and service information andlabeling
Customer Relationship Management417-2 Incidents of non-compliance concerning product and serviceinformation and labeling
Customer Relationship Management417-3 Incidents of non-compliance Customer Relationship Management
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HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) ReportDisclosureLocationGRI418：Customer Privacy 20163-3Management of material topics Legal Compliance418-1Substantiated complaints concerning breaches of customerprivacy and losses of customer data
Legal Compliance
Ten Principles of the UN Global Compact Location
Environment
Principle 7: Businesses should support a precautionary approach toenvironmental challenges.
Advocates who support co-prosperity and sharing, green
and low-carbon
Principle 8: Undertake initiatives to promote greater environmentalresponsibility.
Environmental Management
ComplianceEnergy ManagementWater ManagementWaste Management and
DischargePrinciple 9: Encourage the development and di?usion ofenvironmentally friendly technologies.
Advocates who support co-prosperity and sharing, green
and low-carbonResponse to Climate Change
Anti-corruption
Principle 10: Businesses should work against corruption in all its forms,including extortion and bribery.
Legal Compliance
Ten Principles of the UN Global Compact Location
Human Rights
Principle 1: Businesses should support and respect the protection ofinternationally proclaimed human rights
Equality, Diversity andInclusivenessPrinciple 2: make sure that they are not complicit in human rightsabuse.
/
Labor
Principle 3: Businesses should uphold the freedom of association and thee?ective recognition of the right to collective bargaining.
Equality, Diversity andInclusiveness
Principle 4: The elimination of all forms of forced and compulsory labor.
Equality, Diversity andInclusiveness
Principle 5: The e?ective abolition of child labor.
Equality, Diversity andInclusivenessPrinciple 6: the elimination of discrimination in respect of employmentand occupation.
Equality, Diversity andInclusiveness
Shanghai Stock Exchange Self-Regulatory Guidelines No. 1 for ListedCompanies-Standardized Operation (2022) Index
The Ten Principles of the UN Global Compact Index
No. DisclosureLocation
8.1 Ful?ll social responsibility Full Text
8.2Abide by business ethics Abide by business ethics Legal Compliance
8.3Social responsibility management Sustainable Management
8.4Social contribution value per share (SCVPS)Investor Relationship
8.5Corporate social responsibility reportFull Text
Wechat o?cial
account
WeChatChannel
No.DisclosureLocation
8.6Performance of corporate social responsibility Full Text
8.7Safeguard the rights and interests of all employees Employee Rights
8.8Protect the environment
Environmental Management Compliance
Energy Management
Water ManagementWaste Management and Discharge
8.9Performance of environmental management
Environmental Management ComplianceKey Performance Table - Environment
8.10Environmental impact Environmental Management Compliance
8.11Remedy measures against adverse environmental impacts Environmental Management Compliance
8.12Emissions and waste Waste Management and Discharge
8.13Work safety & product quality Product Quality and Safety
8.14Employment responsibilities Equality, Diversity and Inclusiveness
8.15Abide by scienti?c ethics and norms Scienti?c and Technological Innovation
Company Name Short Name
1HOYUAN New Material (Baotou) Co., Ltd.HOYUAN New Material (Baotou)2HOYUAN Energy Technology (Baotou) Co., Ltd.HOYUAN Energy3HOYUAN New Material (Xuzhou) Co., Ltd. HOYUAN New Material (Xuzhou)4Wuxi HOYUAN New Energy Technology Co., Ltd. HOYUAN New Energy5HOYUAN (Baotou) Qingshan Photovoltaic Power Generation Co., Ltd. HOYUAN Qingshan PV6Wuxi HOYUAN Semiconductor Materials Technology Co., Ltd. HOYUAN SEMIC7HOYUAN Solar (Wuxi) Co., Ltd.HOYUAN Solar
Breakdown of Reporting Scope of Subsidiaries
HOYUAN Green Energy Co.,Ltd.2022 Environmental, Social and Governance(ESG) Report
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