Xiamen Jihong Technology Co., Ltd.Environmental, Socialand Governance Report
4.GROWING TOGETHER
WITH INCLUSION AND CARE
4.1. Talent attraction
4.1.1.Diversity and inclusion
4.1.2.Employee bene?ts
4.2. 4.2.Talent growth
4.2.1.Talent cultivation
4.2.2.Promotion and development
4.3. Safety and health
4.3.1.Work safety
4.3.2.Occupational health and safety
4.3.3.Safety culture
4.4.Social welfare
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2.PIONEERING INNOVATION
AND OUTSTANDING PRODUCTS
2.1. Innovation and development
2.1.1.Technological innovation
2.1.2.Innovative cooperation
2.1.3.Intellectual property protection
2.2. Product quality and safety
2.2.1.Quality management
2.2.2.Quality culture
2.3. Customer service
2.3.1.High-quality service
2.3.2.Innovative services
2.4. Information security
2.5. Supply chain management
2.5.1.Supplier admission and evaluation
2.5.2.Sustainable supply chain
2.5.3.Supplier communication
3.1. Green production
3.1.1.Environmental management system
3.1.2.Resource management
3.1.3.Emission management
3.1.4.Green products
3.2. Green o?ce
3.3. Climate change
CONTENT
BOARD OF DIRECTORSSTATEMENT
ABOUT THIS REPORT
ABOUT JIHONG GROUPCompany pro?leOrganizational structureMilestonesHonors and awards2023 ESG Highlights
1.1.COMPLIANCE OPERATIONS
AND STEADY DEVELOPMENT
1.1. Corporate governance
1.2. ESG governance
1.2.1. Stakeholder communication 1.2.2. Materiality assessment
1.3. Risk management
1.4. Business ethics
MESSAGE FROM THECHAIRMAN
3.LOW-CARBON OPERATIONS
FOR A GREEN FUTURE
APPENDIX
This is the second Environmental, Social andGovernance (ESG) Report published byXiamen Jihong Technology Co., Ltd. Alignedwith the principles of objectivity, standard-ization, transparency, and comprehensive-ness, it outlines Jihong Group’s endeavorsand accomplishments in fostering sustain-able development.
REPORTING PERIOD
This report covers the period from January 1, 2023, to December 31, 2023, while also incorporating relevant information from preceding years.
REPORT SCOPEUnless otherwise speci?ed, the organizational scope of this report includes Xiamen Jihong Technology Co., Ltd., as well as its branch o?ces and wholly-owned subsidiaries.It is consistent with the consolidated reporting scope speci?ed in Jihong Group’s annual report.
REFERENCES
This report extensively referenced the Environmental, Social and Governance Reporting Guide in Appendix 27 of the Hong Kong Exchanges and Clearing Market’s MainBoard Listing Rules, the Shenzhen Stock Exchange’s Self-Regulatory Guidelines for Listed Companies No. 1 — Standardized Operations for Main Board Listed Companies.In preparing this report, we also consulted the Global Sustainability Standards Board’s GRI Standards 2021 and the International Organization for Standardization’sISO 26000 — Guidance on Social Responsibility.
ADDRESSINGTo enhance clarity and readability, throughout this report, “Xiamen Jihong Technology Co., Ltd.” is interchangeably referred to as “Jihong Group,” “the Company,”and “we.”
DATA DESCRIPTIONThe ?nancial data and the ?nancial and audit reports referenced in this report are detailed in the Xiamen Jihong Technology Co., Ltd. 2023 Annual Report. Other data is primarilysourced from Jihong Group’s internal statistics. Unless otherwise speci?ed, all currency values presented in this report are denominated in the Chinese Renminbi (RMB).
AVAILABILITYThe electronic version of this report is available for viewing or downloading on Jihong Group’s website (http://www.jihong.cn) and the Shenzhen Stock Exchange website (http://www.szse.cn).
ABOUTTHIS REPORT
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ABOUT JIHONG GROUP
COMPANY PROFILE
ORGANIZATIONAL STRUCTURE
Xiamen Jihong Technology Co., Ltd. is a data-centric and technology-driven enterprise specializing in cross-border sociale-commerce. Our primary focus lies in precision marketing for cross-border e-commerce businesses, as well as providingcomprehensive marketing and packaging design services to prominent Fast Moving Consumer Goods (FMCG) companies.Currently, we are a leading enterprise in cross-border social e-commerce within the Southeast Asia region and have beenrecognized as one of the Top 100 Chinese Printing and Packaging Enterprises in 2023.
GeneralMeeting ofShareholdersBoard ofDirectorsStrategyCommitteeNominationCommitteeAuditCommitteeCompensationand AppraisalCommittee
Secretary tothe Boardof DirectorsSecuritiesDepartment
Board ofSupervisors
GeneralManager
Assistant toGeneralManagerMarketing
Center
EngineeringInnovation
Center
ProcurementCenter
Quality Center
FinanceCenter
HumanResources
Center
Information
Center
Audit andFinancialManagement
Center
DeputyGeneralManager
·
Build 10 brands that will impact the world
We have always stuck to the principle of “surviving with quality and developing with credit”, and are dedicated to building tenbrands with global in?uence to provide global consumers with high quality products and the ultimate.·let each partner enjoy the double happiness of material and spiritTo realize employees’ self-value, we strive to establish a fair and impartial remuneration incentive management system to achieveboth material and spiritual prosperity and facilitate mutual progress and development for individuals and the Company.
Corporatevision
Corporateculture
·Focusing on entrepreneurship and forging ahead through di?cultiesRunning an enterprise is much like rowing a boat against the current; if we let up even slightly then we risk undoing all of theprogress we have made. We should remain committed to hard work as entrepreneurs and made headway to maintain our vitalityand competitiveness.·Siplicity , perfection , e?cient cooperation , starting based on theWe manage to form a horizontal organizational structure, build shoulder-to-shoulder trust and set uni?ed objectives to removeestrangement and rift among employees, which helps us work together towards clear and same objectives and eventually ful?llthem.
Businessphilosophy
·
Data driven , result oriented , everyone is an operatorWe strengthen the operator thinking and embed it into our operation. We upgrade our technologies driven by businessprocedures and then improve our business organizing capability to create digitalized and data-centric assets which aretransformed to enhance our reproducing capability with big data, AI and other technologies. Using data, we reinforce the digitaloperations and innovation capabilities of our teams through circulation and accumulation of production, processing, using andreproduction to control quality and cost in a strict manner. Thus, we achieve high-frequency iteration and rapid revolution of ourorganization which is data-centric, technology-driven, and outcome-focused.
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MILESTONES
1996·12Jihong Group’spredecessor, XiamenZhengqi, wasestablished,specializing in graphicdesign and advertisingplanning.
The Companyreleased its IPOon the ShenzhenStock Exchange.
The Company waso?cially foundedand focused on thepackaging industry,building tenfactories acrossChina to o?ercomprehensivemarketing andpackaging designservices to leadingFMCG companies.
2016·07
2003·12
We consecutivelyentered the markets ofHong Kong, Japan,Thailand, Malaysia, andSingapore.
Giikin was established
to expand our
crossbordere-commerce business
in Southeast Asia ,which opened up anew avenue of growth
for us.
2017
2017
We expanded the R&Dteam, established a data
analysis team, andimplemented
management systems
for work?ow, productselection, ?nancial
settlement, order
tracking, andwarehousing.
We upgraded thee-commercemanagementsystem V2.0.
2018·03
2017·12
We formed a brandoperation team.
We made signi?cant
e?orts to promote our
brand strategy andbuild our corporate
culture.
2019·03
2019
We formed a platforme-commerce team.We launched the
e-commercemanagementsystem V3.0.
2019·11
2019·05
We upgradedthe work?owmanagementsystem V3.0
We initiated a full-scaledrive towards enterprise
automation andintelligence, whichinvolved rolling out a bigdata system, an intelligentproduct selection system,
and an automatedadvertising system.
2020
Early 2020
We established astrategic partnershipwith Huawei Cloud.This partnershipenabled us to utilizeadvanced AItechnology andcomputing resourcesto implementintelligent systems forbig data analytics andad design anddelivery.We tried tobroaden ourbrand portfolio by
tapping into newmarkets such as
lingerie, home
textiles.
2021·07
2021
We establishedcross-border electricbicycles and beautyproduct brands.We entered the
EasternEuropean
market.
2022
2021·11
We made signi?cantprogress in achievingour digital strategyobjectives byimplementingdecisionsupportsystems, such asSmart Companion,Boss Assistant,Indicator Monitoring,and Talent Map.
We rolled out an automatedoperations management systemon a third-party platform, whichhas contributed to the exponentialgrowth of orders on that platform.
20222022·06
We integrated the
ChatGPT API to empower
cross-border
e-commerce businesses
in areas such as AI-driven
product selection, the
creation of graphic and
video advertising
materials, and intelligent
ad placement.
We upgradedthe warehousing
system and
achieved fullyautomated and
intelligentoperations.
2023·01
2022
We developed and perfected
the automated, intelligent,
and digital cross-border
e-commerce businessmanagement systemGiikin3.0. On this basis, we
gradually rolled out thee-commerce text verticalmodel ChatGiKiin-6B, the
e-commerce intelligent
design and materialgeneration vertical modelGiiAI, and the intelligent adplacement assistant G-king,laying a solid foundation of
intelligent systems for the
Company’s long-termsustainable development in
cross-border e-commerce
business.
We signed a joint
innovationagreement on the AI
large model with
Huawei Cloud,o?cially launchingthe second phase of
cooperation forAIGC-based deepempowerment of the
cross-bordere-commerce
platform, jointlycreating the Pangucross-bordere-commerce largemodel, andpromoting a deeperlevel of digital
transformation.
2023
2023·06
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HONORS AND AWARDS
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A Key Participant in theDevelopment of Group Standards
A Member of the XiamenHi-Tech Development AssociationA High-Tech Enterprise in
Anhui ProvinceA Digital Printing and Packaging
Technology Partner
A Scienti?c and TechnologicalEnterprise in Hubei Province
A High-Tech Enterprise in Xiamen CityA High-Tech Enterprise in Jinan CityA Governing Unit of the HebeiProvincial Printing Association
An Innovative SME inShandong Province
A Scienti?c and Technological Enterprise in Bengbu City
A Technologically Advanced“Little Giant”Enterprise in Langfang City
An Innovative SME in Anhui Province
A Governing Unit of the Hebei Provincial
Food Packaging Industry Association
A Technologically Advanced “Little Giant”Enterprise in Hubei Province
Technical Collaboration between theIndustry, Universities, and ResearchInstitutes in Beijing, Tianjin, and Hebei
Pioneer Award at the GlobalDigital Trade Expo (DT Award)
Ranked 31st among theTop 100 Private Enterprisesin Xiamen CityAnnual Most Valuable DigitalEconomy Enterprisefor Investment
Top 100 Chinese Printingand Packaging CompaniesA Top 100 PrivateEnterprise in Fujian Province
XPTA Honorary PresidentGlobal Leadership AwardA Top 20 PrivateEnterprise in the ServiceIndustry in Xiamen City
2023 ESG HIGHLIGHTS
COMPLIANCE OPERA-TIONS AND STEADYDEVELOPMENTThe Board of Directors convened11 times throughout the year,with a 100% participation ratefrom members of the Board ofDirectors.We conducted the ?rst stakehold-er survey on key ESG issues.We conducted 8 anti-corruptiontraining sessions, with a totaltraining time of 319 hours
PIONEERING INNOVA-TION AND OUTSTAND-ING PRODUCTSWe had 48 new patent applica-tions, and 101 new trademarkapplications.All 9 production bases passed theISO 9000 quality managementsystem certi?cation, two produc-tion bases received BRC A+certi?cation, and one productionbase received BRC A certi?cation.We hosted or participated in 12supplier exchange events.
LOW-CARBON OPERA-TIONS FOR A GREENFUTURE
Our packaging and printingproduction facilities passed theISO 14001 environmentalmanagement system certi?cation.The production bases in Xiamen,Anhui, Langfang, and Jinanconstructed a 10MW distributedphotovoltaic power generationproject, with an annual powergeneration of approximately 6million kWh.
GROWING TOGETHERWITH INCLUSION ANDCARE
We employed 40 people withdisabilities in the year.The total training time for all sta?reached 12,405 hours.We obtained the ISO 45001occupational health and safetymanagement system certi?ca-tion.
CHAPTERHIGHLIGHTS
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As the highest responsible and decision-making body for corporate ESG a?airs, theBoard of Directors assumes overall responsibility for the Company’s ESG strategy andreporting work. Through assessing and mitigating ESG risks, the Board ensures the steadfastoperation of the Company’s risk management and internal monitoring systems. Furthermore,the Board authorizes the Strategy Committee to oversee management activities and hasinstituted the ESG Decision-Making Department, which oversees the daily operations of thesustainable development management system.To proactively and e?ciently mitigate the in?uence of ESG risks on the Company, weregularly conduct assessments of signi?cant ESG issues, taking into account the externalsocio-economic macro environment and our development strategy. These assessments arethen submitted for review by the Board of Directors. Issues deemed crucial in relation to theCompany’s ESG risks and opportunities, as deliberated and determined by the Board, areintegrated into our overarching strategy as key ESG priorities, with ongoing supervision ofissue management and performance.The Company is committed to maintaining a long-term focus on the involvement of theBoard of Directors in ESG initiatives. We are exploring the possibility of establishing targets inpivotal ESG domains, including pollutant emissions, energy consumption management, waterresource consumption management, and carbon emissions. By integrating ESG managementperformance into our daily operational objectives, we aim to advance the Company’s ESGgovernance comprehensively.This report thoroughly discloses the progress and achievements of Jihong Group’s ESGwork in 2023 and has been reviewed and approved by the Board of Directors. The Board ofDirectors and all directors guarantee that this report does not contain any false records,misleading statements, or signi?cant omissions, and assume individual and joint responsibili-ty for the truthfulness, accuracy, and completeness of its contents.BOARD OFDIRECTORSSTATEMENT-6-
We are steadily constructing an ESG management framework, seamlessly embedding ESG governance withinthe fabric of our operations.
By closely aligning the Company’s ESG governance with the expectations of diverse stakeholders, we continuously enhance the ESG governance structure of the Board ofDirectors, the Strategy Committee, and the ESG Decision-Making Department. This ensures that ESG management becomes a pivotal objective for all departments within theCompany.We adhere to the business philosophy of quality ?rst, insist on green leadership, and enhance the competi-tiveness of our brand’s sustainable development.As a pioneering enterprise in the ?eld of green packaging solutions in China, we will continuously expand our green packaging solutions portfolio and intensify our e?orts indesigning and researching green packaging products. Leveraging cutting-edge technology and processes, we persistently advocate for packaging sustainability, proactivelyaddressing the environmental and low-carbon imperatives of our corporate clients. Through the development of innovative and sustainable green services, we bolster theCompany’s brand value. In 2023, multiple production bases of the company have initiated carbon veri?cation work, and several products have obtained professionalcerti?cation quali?cations.We build an intelligent ecosystem driven by data and technology, realizing the innovative empowerment ofcross-border e-commerce operation models.Externally, the Company continues to deepen innovative collaboration, strengthen innovation and R&D, iteratively update the cross-border social e-commerce operationmanagement system, and enhance the digital intelligence capabilities of various stages of the cross-border social e-commerce business; internally, the Company activelyadvocates green o?ce practices, strengthens the environmental awareness of all employees, and improves energy use e?ciency, fully realizing e?cient operations. In 2023,the Company’s annual revenue from cross-border social e-commerce surpassed RMB 4.26 billion, marking a 37.02% year-on-year growth, indicative of a sustainedexpansion in both the reach and magnitude of our cross-border e-commerce endeavors.We are building a sustainable talent ecosystem and giving back to society with heartwarming public welfareactivities.Continuously re?ning our human resources infrastructure, we prioritize the recruitment of top-tier talent, fostering a diverse and inclusive environment that empowersemployee growth. Concurrently, we remain steadfast in our commitment to reciprocity and gratitude, actively ful?lling our corporate social responsibilities and fosteringharmonious societal development. This ensures mutual advancement for both the Company and its employees.Looking forward to 2024, Jihong Group will uphold the concept of green development and two-wheel drive. In the packaging sector, we will continue to actively invest inenvironmentally friendly packaging, tap into the incremental market of “paper replacing plastic,” and expand our business footprint; in the e-commerce sector, we willcontinue to invest in R&D, deepen innovation, and further integrate AI application into our business processes. While cultivating the existing markets, we will continue toexpand our reach to the countries along the Belt and Road, striving to achieve sustainable and high-quality development.
MESSAGE FROMTHE CHAIRMAN
In 2023, Jihong Group, leveraging technology, innovation, anddigital empowerment, seamlessly merged the ethos of sustainabledevelopment with our corporate trajectory. We pledge to spear-head the paper-based FMCG packaging sector, delivering sustain-able, superior service solutions while championing the sustainablegrowth of cross-border social e-commerce ventures. Together, weaspire to forge a brighter, more harmonious society.
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1.COMPLIANCE OPERATIONS AND STEADY DEVELOPMENT
1.1.CORPORATE GOVERNANCE
Jihong Group enhances its commitment to responsibility by seamlessly integrating the principles of sustainabledevelopment into our daily operations and management practices. We prioritize the establishment of a comprehensive riskmanagement framework while nurturing a corporate culture centered on fairness and integrity. Our dedication extends tomaintaining open, two-way communication and collaboration with all stakeholders, fostering a collaborative environmentaimed at advancing sustainable development collectively.
Healthy investor relations are the cornerstone of a company’s long-term development. The Company establishes an open,transparent, and e?cient communication mechanism to facilitate seamless information exchange with investors. Addition-ally, we have devised a robust cash dividend policy aimed at acknowledging the trust and support of our investors andsharing the bene?ts of the Company’s progress with them.
The Company strictly adheres to laws and regulations such as the Company Law of the People’s Republic of China, theSecurities Law of the People’s Republic of China, and the Stock Listing Rules of the Shenzhen Stock Exchange. We haveformulated internal systems such as the Articles of Association and the Rules of Procedure for Shareholders’ Meetings. Wehave established and improved the composition of the Shareholders’ Meeting, the Board of Directors, the Board ofSupervisors, and the senior management. This approach ensures a balanced consideration of investor rights and interests,safeguarding both shareholder investment returns and the Company’s operational prospects.
INVESTORCOMMUNICATION
SHAREHOLDER
RETURNS
The Shareholders’ Meeting is the highest authority in the Company. We establish and follow a sharehold-er communication policy to fully ensure equal status for all shareholders and facilitate their e?ectiveexercise of rights, including the right to be informed and to vote.The Company maintains and promotes communication with shareholders through Shareholders’Meetings, announcements, reports, and other means, listening to, understanding, and responding toshareholder feedback. In 2023, Jihong Group held six Shareholders’ Meetings.
The Company takes proactive steps to fosterinteraction with investors, diligently constructingcommunication channels to engage with them.Through avenues such as Shareholders’ Meetingsand performance brie?ngs, we provide insightsinto the Company’s management and operationsto the market and investors, while also welcomingfeedback and suggestions from all stakeholders.Investor interaction is conducted through variousmeans, including announcements, interactiveQ&A sessions, performance brie?ngs, investorhotline calls, email responses, our website, andour o?cial WeChat account.
The Company prioritizes shareholderopinions and safeguards their interests. Incrafting return plans, we thoroughlyconsider input from shareholders, indepen-dent directors, and supervisors, and attachimportance to feedback from minorityshareholders. Regarding pro?t distributionpolicy, we prioritize long-term developmentwhile ensuring a balanced approach thatcaters to the interests of all shareholders.We prefer cash dividend distribution toensure stable allocation and maintain abalance between company developmentand shareholder returns.The Company’s Board of Supervisors fully safeguards the rights and interests of the Company and itsshareholders. To ensure the independence and fairness of the supervisors’ duties, we have threesupervisors, and in 2023, nine Board of Supervisors meetings were held.
The Company has established internal management systems, such as the Rules of Procedure for theBoard of Directors and the Implementation Rules for the Special Committees of the Board of Directors,which delineate the responsibilities and authority of the Board and its special committees. Thesesystems provide institutional support for the Board’s rightful authorization. As a permanent body ofthe Company, the Board of Directors serves as the decision-making and business leadership entity,executing the resolutions of the Shareholders’ Meeting and directly reporting to it. The Boardcomprises four special committees: the Audit Committee, Nomination Committee, Remuneration andAppraisal Committee, and Strategy Committee. These committees, accountable to the Board, operatein accordance with the Company’s Articles of Association and the authorization of the Board, ensuringthe judicious allocation of internal resources. In 2023, Jihong Group held 11 Board of Directorsmeetings, with a 100% participation rate for the members of the Board of Directors.The Company prioritizes the e?ectiveness of the Board of Directors’ operations. In the election andappointment process of directors, we uphold principles of fairness and transparency, ensuring that theoutcomes fully align with shareholder interests and the Company’s long-term developmentobjectives. Concerning the remuneration policy for directors and senior executives, we haveimplemented a scienti?cally formulated and rational remuneration system. This system is designed toincentivize directors and senior executives to diligently ful?ll their duties and safeguard theCompany’s overall interests.The Company evaluates board member quali?cations based on various criteria, including a robust skillset to ful?ll duties e?ectively, extensive industry expertise, professional acumen in ?nance and law,and corporate management experience. Moreover, we prioritize diversity considerations in boardappointments, encompassing factors such as gender, age, profession, experience, culture, andeducational background. As of the reporting period’s conclusion, Jihong Group comprises a total of 11directors, including ?ve non-independent directors and four independent directors.
SHAREHOLDERS’ MEETING
BOARD OF SUPERVISORS
BOARD OF DIRECTORS
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THE COMPANY'S THREE-COMMITTEEGOVERNANCE STRUCTURE
INVESTOR RIGHTS
JIHONG GROUP’S ESG MANAGEMENT FRAMEWORK
RESPONSIBILITY
Authorize the Strategy Committee to approve and supervise ESG-relat-ed matters.
1.2.ESG GOVERNANCE
To e?ectively drive the sustainable development agenda of the Company, Jihong Group has implemented a sustainabledevelopment management system overseen by the Board of Directors, administered by the Strategy Committee, and withthe ESG Decision-Making Department entrusted with daily operations. The Chairman of the Company assumes the role ofdirector within the ESG Decision-Making Department. In addition, the Company's board of directors conducts at least onecorporate ESG risk assessment annually, either independently or by hiring external experts, to review existing strategies,objectives, and internal control systems, in order to improve and reduce the Company's ESG risks.
We persist in integratingESG management conceptsinto internal operations andexternal business outputs.We strengthen the verticalintegration with variousdepartments and branchesto ensure the formation ofan e?cient and powerfulESG work network,achieving the closeintegration of theCompany’s ESGresponsibilities andbusiness operations.
From a strategicperspective, we integrateESG responsibilities into thecorporate developmentstrategy to achieve uni?eddeployment andcoordinated advancement.We establish an ESG keyindicator system that alignswith the characteristics ofthe enterprise, build aclosed-loop managementsystem for corporate ESGgovernance, and coordinatethe Company’sdevelopment in economic,social, and environmentalaspects.
Integrating
intocorporatestrategy
Collaboratingbusinessdevelopment
In accordance with ESGinternational standards,national standards,regulatory requirements,and other relevant policiesand initiatives, we advancethe Company’s systematic,standard, and routine ESGmanagement to align withglobal standards fromaspects such as policysystems, managementsystems, processmechanisms, actionmeasures, and performancemanagement.
Aligning
withglobalstandards
JIHONG GROUP’SESG MANAGEMENTPRINCIPLES
LEVEL
BOARD OFDIRECTORS
Assess and manage the Company’s ESG-related risks and opportuni-ties to ensure the continuous execution and implementation of theCompany’s ESG policies.Develop guidelines on important ESG matters, review and rate thesigni?cant issues identi?ed.Review the Company’s ESG work and internal monitoring systems, andprovide suggestions on their suitability and e?ectiveness.Review the Company's ESG-related disclosure documents, including(but not limited to) annual ESG reports.Regularly report to the Board of Directors and provide ESG-relatedtraining and materials.
STRATEGYCOMMITTEE
Coordinate, supervise, and manage the overall risks associated withthe Company’s business operations and quality control.Collaborate with relevant departments to carry out ESG risk preventionand management, and conduct irregular reviews.ESG DECISION-MAKINGDEPARTMENT
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1.2.1.STAKEHOLDER COMMUNICATION
Jihong Group recognizes the substantial in?uence that the opinions and expectations of all stakeholders wield over theCompany’s operations and development. We prioritize communication and engagement with all stakeholders, fostering anopen dialogue and welcoming feedback from diverse channels. Additionally, we embrace scrutiny from all stakeholders,acknowledging its role in driving continuous improvement and accountability.
STAKEHOLDERS
ISSUES OFCONCERN
COMMUNICATIONFORMS
Shareholders
Corporate governanceRisk managementCircular economy
Shareholders’ MeetingRegular reports andannouncementsInterim announcementsand noticesCompany websiteInvestor mailboxOnline and o?ineinvestor meetings
Customers
Sustainable packagingProduct responsibilityTechnological innovationCustomer satisfactionResponsible marketingInformation securityand privacy protection
WeChat o?cial accountCustomer satisfaction surveyProduct surveyCustomer complaintand handlingOnline and o?ineactivity promotionCompany website andsocial media interaction
Governments and regulators
Corporate governance
Risk managementBusiness ethics and
anti-corruption
Information disclosureDaily communication
and reportingSupervision and inspections
Visitor receptions
Employees
Diversity and equity
Talent attraction
and retentionEmployee trainingand developmentHealth and safety
Employee satisfaction survey
Internal o?ce systemsinternal communication
meetingsEmployee complaints
and feedbackInternal and external
training activitiesPublicity activities ofcorporate cultureEmployee care activities
Partners
Responsible marketingSupply chain management
Project procurement
Supplier contractsand agreementsSupplier audit and evaluation
Supplier assistance
and cooperationOther suppliercommunication activities
Media
Addressing climate changeProduct carbon footprint
Energy and resource
conservationWaste managementPollutant emissions
Exclusive interviewsCompany website andsocial media interaction
Community representatives
Community development
and investmentPollutant emissions
Community activitiesPublic welfare activitiesCompany website andsocial media interaction
JIHONG GROUP’S STAKEHOLDERCOMMUNICATION MECHANISM
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1.2.ESG GOVERNANCE
Jihong Group actively carries out the identi?cation and management of sustainable development concerns, while activelyseeking feedback and suggestions from stakeholders. In 2023, following the three steps of issue identi?cation ? screeningand assessment ? review and con?rmation, we conducted the ?rst identi?cation and assessment of signi?cant ESG issuesand reported the ranking and matrix of material issues to the Board of Directors after con?rmation.
ISSUE IDENTIFICATIONWe conducted a comprehensivereview of the Company’s keyESG issues and the concerns ofvarious stakeholders inaccordance with the Hong KongExchanges and ClearingMarket’s Environmental, Socialand Governance ReportingGuide and the GlobalSustainability StandardsBoard’s GRI Standards 2021. Bybenchmarking against domesticand international peers, weidenti?ed 21 key ESG issues.
MATERIAL ISSUESDETERMINATION PROCESS
SCREENING AND ASSESSMENT
Based on the results of thepreliminary stakeholderquestionnaire survey and incombination with requirementsof the regulators, we evaluatedand ranked di?erent issuesbased on their signi?cance toboth Jihong Group andstakeholders. Subsequently, weformulated Jihong Group’s ESGmaterial issues matrix for theyear 2023.
REVIEW AND CONFIRMATION
The Strategy Committee isresponsible for reviewing anda?rming the ESG materialissues identi?ed through theassessment process outlinedabove. It reports these ?ndingsto the Board of Directors ando?ers recommendationsregarding the ?naldetermination of these issues.
LowHigh
High
Importance to Jihong Group
Importance to Stakeholders
SustainablepackagingAddressingclimate changePollutantemissioms
Circular economy
Diversity and equity
Business ethics and
anti-corruptionInformation securityand privacy protection
Corporate governance
RiskmanagementSupply chainmanagementResponsiblemarketingTechnological
innovationCustomersatisfaction
Productresponsibility
Talent attraction
and retentionCommunity development
and investment
Employee trainingand developmentHealth and safety
Product carbon
footprint
WastemanagementEnergy and resource
conservation
JIHONG GROUP’SMATERIAL ISSUES MATRIX
Envirommental
Issue
Social IssueGovemance
Issue
High ImportanceModerate Importance
Low Importance
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ISSUESustainable packagingAddressing climate change
Health and safetySupply chain management
Risk management
Pollutant emissions
Waste management
Employee training
and developmentInformation securityand privacy protectionResponsible marketingProduct responsibility
Business ethics and
anti-corruption
Talent attraction
and retention
Diversity and equityCorporate governanceCustomer satisfactionTechnological innovation
Energy and resource
conservationProduct carbon footprint
Circular economyCommunity development
and investment
Environmental issuesEnvironmental issues
Social issuesSocial issuesGovernance issuesEnvironmental issuesEnvironmental issues
Social issuesGovernance issues
Social issues
Social issuesGovernance issues
Social issues
Social issuesGovernance issues
Social issues
Social issuesEnvironmental issuesEnvironmental issuesEnvironmental issues
Social issues
3.1 Green production
3.3 Climate change
4.3 Safety and health
2.5 Supply chain management
1.3 Risk management
3.1 Green production
3.1 Green production
3.3 Green o?ce
4.2 Talent growth
2.4 Information security
2.3 Customer service
2.2 Product quality and safety
1.4 Business ethics
4.1 Talent attraction
4.1 Talent attraction
1.1 Corporate governance
2.3 Customer service
2.1 Innovation and development
3.1 Green production
3.1 Green production
3.1 Green production
4.4 Social welfare
CATEGORYLOCATION
LOWIMPORTANCE
MODERATE IMPORTANCEHIGH IMPORTANCE
JIHONG GROUP’S MATERIAL ISSUES MATRIX IN 2023IMPORTANCE
1.2.2.MATERIALITY ASSESSMENT
1.2.ESG GOVERNANCE
1.3.RISK MANAGEMENT
The Company has established a comprehensive organizational structure to oversee its risk management endeavors. TheBoard of Directors holds responsibility for the e?ectiveness of overall risk management e?orts, while the AuditCommittee serves as the apex risk management body. The Audit and Financial Management Center is tasked withinspecting and supervising the establishment and execution of the Company’s internal control system. It regularlyreports to the Audit Committee and is answerable to it. By managing policy risk, liquidity risk, market risk, credit risk,compliance risk, and operational risk, as well as conducting employee training, we continually re?ne managementprocesses, bolster management systems, and enhance our ability and pro?ciency in risk control.
1.4.BUSINESS ETHICS
Business ethics and anti-corruption are core elements of Jihong Group’s stable development. The Company strictlyadheres to the legal and regulatory requirements for clean management, such as the Company Law of the People’sRepublic of China, the Anti-monopoly Law of the People’s Republic of China, the Criminal Law of the People’s Republic ofChina, the Anti-Unfair Competition Law of the People’s Republic of China, and the Anti-Money Laundering Law of the People’sRepublic of China. The Company has established a comprehensive business ethics management system and formulatedinternal systems such as the Conflict of Interest Management System, the Anti-Business Bribery, Anti-Fraud, and ReportingManagement System, and the Gift Management Measures to develop the Company’s business ethics. In 2023, theCompany did not experience any litigation or cases involving corruption, violation of business ethics, or unfaircompetition.
As the highest leadership in the governance of business ethics, the Board of Directors isresponsible for urging the management to establish a healthy and clean cultural environmentwithin the Company and to establish a comprehensive internal control system related toanti-commercial bribery and anti-fraud.The Audit Committee, as the leading organization for building a clean Company, providesguidance and supervision for the Company’s anti-commercial bribery and anti-fraud e?orts.
JIHONG GROUP’S BUSINESS ETHICS MANAGEMENT SYSTEM
LEADERSHIP
The management is responsible for establishing, improving, and e?ectively implementing internalcontrols related to anti-commercial bribery and anti-fraud, reducing the risk of commercial briberyand fraudulent activities; for commercial bribery incidents that have occurred, the management isresponsible for formulating and taking appropriate and e?ective remedial measures, and aresubject to the supervision of the Board of Directors and the Audit Committee under it.
MANAGEMENT
The Audit Department is a permanent body in the Company for anti-commercial bribery andanti-fraud e?orts, responsible for implementing supervision and investigation of anti-commercialbribery and anti-fraud activities.The Company and its branches and subsidiaries are responsible for the speci?c implementation ofthe Company’s internal controls related to anti-commercial bribery and anti-fraud e?orts andactively cooperate with the investigation and evidence collection of commercial bribery and fraudincidents.EXECUTION
The Company is actively engaged in fostering a culture of integrity through various initiatives. We organize specializedtraining sessions on anti-corruption and business ethics for both directors and general sta?, aiming to prevent and detercorruption at its roots. All employees are required to sign the Honest Operation and Compliance Management CommitmentLetter, rea?rming our commitment to conducting business with integrity. Throughout the reporting period, the Companyconducted a total of eight anti-corruption training sessions, totaling 319 hours of training.Case: Jihong Group’s code of conduct training for management leadersIn 2023, the Company conducted training on the code of business ethics for the management. The training, based on theprinciple of being credible and clean to lay the foundation for development, aimed to enhance the moral awareness andbehavioral norms of managerial sta? in business activities through professional guidance and case analysis, ensuring thatevery decision and action of the Company complies with ethical and legal standards.
Reporting telephone:
18150353249
Reporting email:
shenji@jihong.cn
Report mailing address: Audit Department,Jihong Group, No.9 Putou Rd., DongfuIndustry Park II, Haicang District, XiamenCity, Fujian Province
Jihong Group’s complaintand reporting channels foractual or suspected fraud:
Both employees within Jihong Group and external stakehold-ers related to the Company have the avenue to report anymisconduct by company personnel, such as breaches ofintegrity, misuse of authority, and violations of operationalmanagement orders. The Company has established awhistleblower protection system in its Gift ManagementMeasures, which includes a dedicated hotline and email forreporting fraudulent activities. The Audit Operations Centeroversees the reception of such reports and conducts thoroughinvestigations to ensure timely, impartial, and fair handling offraud allegations. We prioritize maintaining the con?dentialityof the whistleblower’s identity and the details of the report,providing prompt updates on investigation outcomes whileensuring no disclosure of information to the accused individualor unrelated parties. In the event of threats or retaliationagainst the whistleblower, the Company stands ready to o?erlegal support and protection.
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CROSS-BORDER E-COMMERCE SALES MODEL
GIIKIN INTEGRATEDMANAGEMENT SYSTEM 3.0
2.PIONEERING INNOVATION AND
OUTSTANDING PRODUCTSJihong Group remains committed to pioneering innovation, and achieving technological advancements in e-commerce andpackaging. Leveraging a high-quality R&D team and fostering collaborations with educational institutions, we continuouslydrive industry advancement. By continually re?ning service standards and innovating service methodologies, we deliverexceptional customer service, earning the trust of customers and garnering recognition within the market.
Jihong Group is enhancing its technological leadership, propelling industrial development through innovation. We adhere toa digital operational strategy that prioritizes data and technology, continually delving into cutting-edge sectors such ascross-border social e-commerce and intelligent warehouse operations and maintenance. Concurrently, we are steadilyadvancing our packaging business, o?ering customers comprehensive one-stop shopping experiences and services.
Jihong Group stays abreast of industry trends, continuously innovating its products and services. By harnessing smartecosystems and digital platforms, we meticulously analyze cross-border markets, boosting warehouse e?ciency andempowering various segments of cross-border e-commerce. Furthermore, we consistently explore packaging services,reinforcing independent R&D, and embracing new technologies. This approach not only ignites fresh momentum for growthbut also positions us as pioneers in technological advancement within the packaging industry.
Empowered by data insights and technology, Jihong Group actively promotes intelligent transformation and implementsprecise marketing strategies for its cross-border social e-commerce operations. We embrace a dynamic “goods discoveringpeople” business model, departing from conventional e-commerce paradigms. Powered by AI algorithms, we meticulouslyanalyze global markets, construct user pro?les, intelligently curate product selections, pinpoint speci?c customerdemographics, and strategically promote product advertisements across prominent social media platforms. With a strategicfocus on Asia, o?er a diverse range of Chinese consumer goods to international customers.
Since venturing into cross-border social e-commerce, we have invested over RMB100 million in IT R&D, focusing on solutionstailored to intricate long-chain and multi-node social e-commerce application scenarios that demand robust digitaloperational capabilities. We seamlessly integrate AI technology across our entire operational spectrum, steadfastlypropelling the transition from digitization to digital intelligence. Speci?cally, for critical cross-border social e-commerceprocesses, we have successfully developed AI technologies encompassing product selection, image material design, videocontent generation, advertising copywriting and translation, precise product recommendations, advertising placement, andcustomer service. This comprehensive e?ort marks a signi?cant advancement in our digital intelligence capabilities.
GoodsIntelligent product selection →Focusing on a wide range of productssuch as home clothing, accessories, and beauty, we precisely selectproducts based on big data analysis and AI technology.Automatic generation →We have a comprehensive suppliermanagement system, with over 550,000 SKUs, automatically generatingproduct descriptions, titles, images, and short videos.Discovering:
Social media push →Content is launched on Facebook, Instagram,TikTok, Youtube, Line, X, etc. based on the DTC model.Precision marketing →Backed by technology, and based on recommen-dations from precise algorithms, we conduct deep machine learning toachieve personalized precision marketing.People
Massive user data accumulation →Mobile Internet + social media,secondary placement + private domain operationsIntelligent analysis of user pro?les →We accurately match consumerpro?les with hashtags maintained on social media platforms to generateproduct tags.
2.1.1.TECHNOLOGICAL INNOVATION
We have integrated intelligent product selection tools into theGiikin system. By analyzing historical and market trend data, wedetermine the products to be sold and the geographicallocations for sales based on consumer demand and preferenc-es, aiding the product selection team in making decisionse?ciently.LANDING PAGEGENERATION ANDADVERTISEMENTDEVELOPMENT
We utilize our independently developed AI technology tointelligently generate e-commerce environments that cater todi?erent cultures, languages, ethnicities, and expressions.Based on the product characteristics, the system can intelligent-ly select the target consumers and audience and promotionalstyle, enhancing the precision of advertising placement andachieving maximum pro?tability. The system can also analyzeadvertising data, intelligently recommending more e?ectiveadvertising suggestions to ad optimization specialists.
PROCUREMENT ANDSALES SERVICES
We utilize AI robots to assist in translating di?erent languagesand generating automatic responses, helping to provideAI-based purchasing and after-sales services to consumers fromvarious countries and regions.
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2.1.INNOVATION AND DEVELOPMENT
INTELLIGENT PRODUCTSELECTION
ADVERTISINGPLACEMENT
Discovering
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INTELLIGENT ECOLOGY
JIHONG GROUP’S INTEGRATEDSMART WAREHOUSING SYSTEM
2023 GIIMALLCROSS-BORDER SERVICE HONORS
SMART WAREHOUSING
The Company harnesses digital technology to empower the traditional warehousing operation model, establishing anintegrated smart warehousing system. This transformation substantially ampli?es the e?ciency of stock preparation,storage, picking, and packaging processes, concurrently mitigating supply chain risks and delivering a seamlessshopping experience for consumers. As of the end of 2023, we had nearly 20,000 square meters of domestic logisticstransit warehouses and forged partnerships with various overseas warehouses, spanning Japan, Thailand, Malaysia,Singapore, Saudi Arabia, and the UAE
The implementation of the digital stocking model can signi?cantly increasewarehouse turnover rates. It can reduce inventory backlog and ensure a smoothtransition of products from the warehouse to the market, which signi?cantlyenhances the e?ciency and agility of the supply chain.By using event tracking on our online store, we can collect user behavior datato better understand user needs and preferences. This allows us to improveour store's user interface and shopping experience.By analyzing user behavior data, our digital store can recommend productsthat are tailored to individual user preferences. This helps users easilydiscover products they like and receive a better shopping experience.
INVENTORYSTOCKINGMODEL
DIGITALSTOREOur self-developed warehouse management system implements a "one product, onecode" management policy for all inventory items. The system allocates each item to itsdesignated storage location and updates the inventory records in real-time.The system is equipped with intelligent matching and product distribution capabilitiesto quickly prepare and deliver orders while reducing the risk of shipping errors.The system can automatically intercept abnormal orders, and relevant personnel willtake swift action to ensure the problem is resolved in a timely manner.Our picking process is automated and intelligent. Our warehouse systemautomatically generates the optimal picking path, product location, andproduct information upon receiving an order, and sends the data to thepicker's PDA device. This system has made the goods-picking process muchmore convenient and e?cient.
WAREHOUSEMANAGEMENTSYSTEM
INTELLIGENTPICKINGSYSTEMOur intelligent weight and size measurement system can rapidly andaccurately assess the weight and size of packages and provide preciselogistics data to logistics and warehouse management teams.We use an automatic packing device to streamline our order processing andimprove the quality, e?ciency, and cost-e?ectiveness of our packaging.
AUTOMATICWEIGHINGSYSTEM
UNPACKING AND
PACKINGDEVICE
DIGITAL INTELLIGENCE PLATFORMJihong Group has developed GiiMall, a specialized cross-border e-commerce SaaS service platform, continuously empower-ing e-commerce brands to expand their global presence. By leveraging cutting-edge data analysis tools and establishingdiverse online channels, it delivers comprehensive and intelligent solutions for merchants. Throughout 2023, we intensi?edour innovation and R&D endeavors surrounding GiiMall, introducing or enhancing projects such as the GiiMall ERP LogisticsManagement System, GiiMall Cloud Snapchat Intelligent Placement System, GiiMall Product Selection System, GiiMallFinancial Analysis System, GiiMall Address Service System, and GiiMall Combination Promotion System. These initiatives aimto provide even more sophisticated and adaptable services to our customers.
In 2023, we won multiple honors in cross-border services, fully demonstrating GiiMall’s outstanding performance andleading position in the ?eld of cross-border social e-commerce.
“High-TechEnterprise”Certi?cate2023 BestCross-BorderService Enterprise
2023 ChinaGo Global New Power2023 Outstanding OverseasService Enterprise2023 Global Digital Trade FairPioneer Award ? Bronze Award
Building diversi?ed online channelsGiiMall assists merchants in developing sociale-commerce channels, easily showcasing andembedding product information acrossmultiple social media platforms; it alsoprovides an integrated, easy-to-use back-enddashboard to help merchants e?cientlymanage their business across multiple saleschannels.
Advanced data analysis toolsGiiMall combines AI, big data, and othertechnologies to integrate buyer interactiondata, helping merchants analyze theirbusiness situation and make correctdecisions; it also operates on sharedinfrastructure, freeing up merchants’hardware resources.
GIIMALL INTELLIGENT SOLUTIONS
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The Company actively upholds the core values of responsibility, innovation, and achievement, integrating leading scienti?cresearch resources and fostering collaborative exchanges with team partners and stakeholders. Through shared innovativeresources, we collectively spearhead the future of the industry.The Company actively strengthens its partnerships with academic institutions and industries, establishing joint industry-ac-ademia-research bases with esteemed institutions such as Wuhan University, Beijing Institute of Graphic Communication,and Hunan University of Technology. Together, we strive to promote technological innovation and talent development.During the reporting period, we collaborated with Hunan University of Technology to host a beverage packaging designcompetition. This initiative served as a platform to identify and nurture design talents while simultaneously fosteringinnovative development within the packaging design industry.
INNOVATIVE PACKAGINGThe Company continues to expand its range of packaging products and penetrates the daily consumer FMCG packagingmarket through graphic design, scheme optimization, and strategic marketing planning. We provide leading domesticand international FMCG customers with a variety of products, including color box packaging, eco-friendly foodpackaging, color carton packaging, eco-friendly tote bags, and bundled packaging. Our aim is to establish integratedone-stop services for comprehensive packaging supply chain procurement scenarios.
Drawing upon our extensive industry expertise, outstanding product quality, and technological innovation capabilities,we have been steadfastly pioneering advancements in packaging development. In 2023, we actively engaged in XiamenCity’s key scienti?c and technological initiatives, successfully applying for and advancing key projects such as theResearch and Industrialization of Structural Color Printing Technology and the Research and Industrialization of NewFood and Beverage Packaging Materials. These endeavors have provided substantial support for our technologicalinnovation and industrialization e?orts within the industry.
Marketingplanning
Design/planoptimization
Manufacturing
Transportationanddistribution
SalesJIHONG GROUP’S ONE-STOPPACKAGING SERVICES
JIHONG GROUP’S 2023 TECHNICAL INNOVATION HIGHLIGHT CASESWe aim primarily atde-plasticization,material conservation,and reusability,achieving productprotection andenvironmental bene?tsthrough innovativestructural design. Thisapproach helps replacetraditional plastic andtin packagingcontainers, increase theutilization of paper, andreduce the generation ofsolid waste.
We use materials suchas acrylic emulsion,deionized water, andorganosilicon, mixingthem in a certain ratioand then coating themon paper. After drying,a waterproof ?lm isformed, enhancing thewater resistance of thepaper bag. In the?exographic printingprocess, we
adjust the printingpressure and the aniloxroller ratio to achievean appropriate matchbetween the coatingamount and thewaterproof e?ect.
Through marketresearch andsimulation, we havedeveloped newstructures for speci?cpackagingcon?gurations such asbundle packs andbaskets, which arecompatible withcustomers’ automaticpackaging equipment,thereby improving thee?ciency of thepackaging machines.We also have achievedthe substitution ofdomestic materials,designing uniquestructures to meet allthe testingrequirements ofpackaging, andreplacing productsmade from importedmaterials by othermanufacturers.
R&D ofmultifunctional
reusablepackaging
Development ofstrong water-resistant
eco-friendlypaper bags
Development of
convenientbeverage packaging
2.1.2.INNOVATIVE COOPERATION
2.1.INNOVATION AND DEVELOPMENT
From August 2022 to August 2023, Jihong Group collaborated with Hunan University of Technology to host abeverage packaging design competition. Through the sponsorship of this competition, we attracted numerousdesigners and creative talents who joined us in promoting innovation and development in the beverage packagingdesign industry, while also expanding the brand’s visibility and in?uence.
Case: Beverage packaging design competition
Additionally, leveraging its extensive experience in cardboard packaging, the Company actively contributes to theformulation of industry standards to elevate the level of innovation within the sector. In 2023, the Company played a pivotalrole in shaping industry standards such as the Assessment Requirements for Single and Double Corrugated Cardboard Boxes,o?ering valuable corporate insights for the industry’s future development.In the ?eld of e-commerce development, we deepen our strategic collaboration with Huawei, leveraging the robust datamodels of Huawei Cloud in key areas such as AIGC, application modernization, data crawling, and data management. Thiscollaboration enhances our ability to develop AI applications for cross-border social e-commerce and bolsters the digitalintelligence capabilities across various stages of our cross-border social e-commerce operations.Case: Jihong Group and Huawei Cloud sign joint innovation agreement on AI large model
The signing ceremony of thecooperation agreement betweenJihong Group and Huawei
In June 2023, Jihong Group signed ajoint innovation agreement on AI largemodel with Huawei Cloud, o?ciallylaunching the second phase ofcooperation for AIGC-based deepempowerment of the cross-bordere-commerce platform. The two partieswill conduct joint innovation ine-commerce based on the Pangu largemodel, focusing on the intelligenttransformation and upgrade ofcross-border e-commerce platforms.They will engage in comprehensiveexchanges in areas such as AIGCempowering the entire process forenterprises, deep empowerment ofcross-border e-commerce platforms,modernization of applications, datamining, and data governance, toadvance a deeper level of digitaltransformation.
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This R&D e?ort focuseson the structural designof gift boxes and innercards, maintaining theprotective performanceof the packaging whileachieving the design and
die-cutting selection ofinteractive functionalaccessories. At the sametime, it considers theself-locking function ofthe corrugated gift boxbottom and theprotective cushioning ofthe inner card,emphasizing thebeauti?cation processand material selection ofinteractive functionalattachments, taking intoaccount bothconvenience inpackaging andconsumer experience.
Development of newcorrugated gift boxes
with consumerinteraction features
KEY INITIATIVES FOR PRODUCTQUALITY MANAGEMENT
TYPES OF JIHONG GROUP’S QUALITYTRAINING FOR EMPLOYEES
2.1.3.INTELLECTUAL PROPERTY PROTECTION
2.1.INNOVATION AND DEVELOPMENT
Jihong Group places a high emphasis on the management and maintenance of its proprietary intellectual property rights,
strictly adhering to laws and regulations such as the Copyright Law of the People’s Republic of China and the Patent Law of the
People’s Republic of China. We have established internal regulations such as the Management Program for High-Tech Projects
and Patents, the Reward System for the Application of R&D Results, and the Management System for High-Tech Projects and
Patents. Continuously monitoring the market, we actively manage intellectual property rights such as patents and
trademarks. Moreover, we conduct regular corporate intellectual property training sessions for our employees, aiming to
enhance their understanding of patents and cultivate a culture of innovation within the Company. In 2023, the Company ?led
for 48 new patents and 101 new trademarks.
Jihong Group adheres to the principle of “surviving with quality and developing with credibility,” consistently prioritizing
product quality and safety as fundamental pillars of our operations. We regard quality assurance as our paramount responsi-
bility. The Company maintains strict control over product quality, ensuring the durability and stability of our products to
meet consumer demands and uphold consumer safety standards.
2.2.1.QUALITY MANAGEMENT
Jihong Group follows national laws and regulations such as the Law of the People’s Republic of China on Product Quality andhas established 26 internal management systems and standards. These include the Quality Risk Assessment and ControlProcedures, the Food Safety Self-Assessment Procedures, and Risk and Opportunity Control Procedures. We identify andevaluate quality risks throughout the production and operational processes. For each key stage of a product’s lifecycle, wedevelop tailored quality assurance measures, ensuring the e?ectiveness of product quality and safety protocols. In 2023, allnine of the Company’s production bases have passed the ISO 9000 quality management system certi?cation, and twoproduction base has obtained the BRC A+ certi?cation, one production base has obtained the BRC A certi?cation.
2.2.2.QUALITY CULTURE
We have formulated regulations such as the Criteria for Inspection and Sampling Judgment of Raw and Auxiliary Materials andother related systems, clari?ed the main inspection items, standards, and sampling judgment criteria for raw and auxiliarymaterials, and standardized the inspection of such materials.All major raw and auxiliary material suppliers are required to provide a product inspection report to ensure the safety andquality of raw and auxiliary materials.It is required that key raw material suppliers must provide a third-party product inspection report once every three years.In 2023, 100% batch inspections are conducted and pass rate of products meets target requirements.
Raw and auxiliary materials management
We have established systems such as the Quality Inspection Standards and Speci?cations for Bag Making Processes, clari?ed theinspection items and standards for product production, and standardized the work of product quality inspection. Throughregular spot checks, products found to be non-compliant during the inspection process are immediately improved and markedaccordingly. Issues that cannot be resolved promptly will be reported to the responsible supervisor for resolution.
Product manufacturing
We have formulated the Product Identi?cation and Traceability Control Procedure. Through establishing a traceability procedure,we ensure that in case of abnormalities, related products can be traced and analyzed based on the identi?cation on the outerpackaging. In addition, we have also analyzed issues such as errors in the printing of dates on outer cartons, abnormalities inpaper bag packaging, and paper splices. Measures have been developed from aspects of incoming inspection, personneltraining, original archiving, and equipment testing.
Label printingJihong Group has established the Product Recall and Simulated Recall Control Procedures and other relevant systems. When abatch or model of products is found to have safety hazards or quality issues, we will proactively initiate the recall process,promptly inform consumers, and provide corresponding solutions to protect consumer rights and establish a good corporateimage.During the reporting period, Jihong Group did not experience any product recalls.After-sales assurance
Case: Jihong Group’s product monthly quality meeting
To continuously improve product quality and optimize workprocesses, Jihong Group regularly holds monthly qualitymeetings, organizing various management personnel and keymachine operators to conduct in-depth analysis of productquality achievements and issues. They analyze the causes andpropose solutions, enhancing team members’ understanding ofquality standards and requirements, strengthening qualityawareness in daily work, and ensuring the continuous improve-ment of product quality.Jihong Group’s monthly quality meetingJihong Group recognizes that only high-quality products and services can earn the trust and recognition of customers andthe market. To bolster employee awareness of product quality, we conduct annual training sessions on quality and productsafety for all sta? members. Additionally, we rigorously review any product quality issues, meticulously analyzing their rootcauses, and subsequently devising e?ective solutions.
ONBOARDING TRAININGGMP TRAININGPRE-JOB TRAINING
To e?ectively prevent and eliminate pests, reducing the potential pest hazards during the production process ofcardboard packaging products, in 2023, the Company invited technicians from external professional pest controlcompanies to provide online training on pest protection for the heads of various departments. During the training,participants learned about the introduction and treatment methods of common pests, received speci?c treatmentsuggestions for the types of pests occurring in the factory, and conducted analysis and risk assessment of the datatrends of pest status in the factory, enhancing the factory’s ability to handle pests and ensuring the improvement ofcardboard product quality.
Case: Pest control training
We provide explanations for theCompany’s regulations andconduct safety, quality, andother training before newemployees join the Company.
We conduct training on thecompany's attendance managementsystem, safety management system,basic quality standard requirements,and job responsibilities before theemployees start work. Employeeswill only be permitted to work aftersuccessfully completing the training.
We organize all sta? to undergoregular on-the-job GMP trainingand clarify measures toimprove production quality indaily work.
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2.2.PRODUCT QUALITY AND SAFETY
JIHONG GROUP’S KEY INITIATIVES FOR CUSTOMER
MANAGEMENT AT VARIOUS STAGES
2.3.CUSTOMER SERVICE
Jihong Group attaches great importance to enhancing the user experience of its products, prioritizing friendly design andconvenient customer service. We are dedicated to providing consumers with a comfortable and enjoyable usage experience.
2.3.1.HIGH-QUALITY SERVICE
Jihong Group embraces customer centricity by establishing internal systems such as the Customer Service ProcessManagement Procedures, the Customer Maintenance Management System, and the Daily After-sales Handling Methods.Through these systems, we establish a comprehensive customer communication mechanism to uphold service qualityacross pre-sales, sales, and after-sales sectors. During the reporting period, we received a total of 25 customer complaintsthrough various channels, and e?ectively resolved all 25 complaints, achieving a problem resolution rate of 100%.
The Company actively listens to its customers, conducting annual customer satisfaction surveys via written forms, onlinesystems, or telephone interviews. These surveys encompass various aspects such as product quality, product packaging,and interactions with specialists. Upon analyzing the survey results, we evaluate and formulate improvement plans toaddress customer feedback e?ectively and meet their evolving needs.To strengthen the overall quality of our customer service team and cultivate a service-oriented mindset, we regularlyconduct customer service training sessions. In 2023, the Company hosted two training sessions focusing on customermaintenance management and customer satisfaction management. During these sessions, employees undergoassessments to ensure their familiarity with various internal management systems. We aim to enhance their skills in productservice and customer maintenance, thereby bolstering our ability to deliver exceptional customer experiences.
Case: Training on response and order promotion techniques on mainstream foreign social media platforms
In 2023, the Company organized special training sessions focused on responding to and promoting sales onmainstream foreign social media platforms. We invited experienced customer service personnel to explain indetail the response procedures and sales promotion methods on these mainstream social platforms and to sharesuccessful cases of responses that enable sales conversion. This allowed employees to understand and masterthese skills more intuitively. Through practice and simulated exercises, our employees improved their ability topromote sales.Training on response and order promotion techniques on mainstream foreign social media platforms
2.3.2.INNOVATIVE SERVICES
Jihong Group adopts a localized marketing strategy, launching products to meet local demands based on comprehensivemarket research. We conduct targeted marketing campaigns tailored to the distinctive preferences of customers acrossdi?erent regions, e?ectively capturing the attention and purchase intentions of local consumers. During the reportingperiod, we introduced seasonal products for occasions such as Christmas, Halloween, and Valentine’s Day, complementedby special promotional events. Additionally, we provided a range of services including gift delivery, greeting card mailing,and festival information dissemination, exemplifying our commitment to localized marketing and expanding product saleschannels.Case: “Party at Jihong” tour concert
“Party at Jihong” tour concert
In April 2023, Zhengzhou Giikinlaunched the “Party at Jihong” tourconcert, featuring live performancesby employees and professionalband members, along with onlinelive streaming and interaction,allowing everyone to feel the charmof music after work. Through thisevent, we showcased a diversi?edworking environment, conveyedour commitment to achieving bothmaterial well-being and spiritualhappiness for our employees, andrealized the communication andimplementation of our corporateculture through online and o?ineinteractions.
PRE-SALESAFTER-SALES
We standardize thepre-sales receptionprocess, providingcustomers withstandardizedconsultation servicesthrough communicationsoftware, email, andother channels
We actively verify,handle, and follow upon abnormal orders
We promptly handlerejections and returns dueto quality issuesWe establish a standardizedcustomer feedback processto actively respond tocustomer demands,ensuring that customercomplaints are handledpromptly and e?ectively
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DURING SALES
In May 2023, the Company launched cybersecurity training for departments such as the Information Center,Securities Department, Procurement Center, and Finance Center. During this period, we educated the participantsabout cyber attack methods, measures to strengthen cybersecurity, and prevention of cyber traps, among othersecurity knowledge. This was aimed at enhancing their awareness of information security and avoiding or reducingpotential cybersecurity risks in their work, ensuring the e?ective protection of the Company’s information assets.
Case: Jihong Group’s cybersecurity training
2.4.INFORMATION SECURITY
Jihong Group adheres to the overall policy of “security and prevention ?rst, balancing management and technologies, andtaking comprehensive measures to prevent risks.” We continually enhance our network and information securitymanagement system, bolstering information security measures to safeguard customer privacy. We strictly abide by laws andregulations such as the Regulations of the People’s Republic of China on Protecting the Safety of Computer Information Systems,Basic Requirements for Classi?ed Protection of Information System Security, and the Requirements for Information SystemSecurity Management. We have formulated internal systems such as the Information System Security Level ManagementSystem, and coordinated the establishment of the network and information security management system to support andempower the Company’s business development.To enhance information security control, the Company employs a comprehensive data classi?cation and grading system. Interms of information security protection, we reinforce both external defense and internal control by enhancing technicalcapabilities, optimizing management equipment, and fostering awareness among all employees. In 2023, we did not incurany signi?cant ?nes, administrative penalties, or other punishments due to violations of cybersecurity and data protectionlaws and regulations.
2.5.SUPPLY CHAIN MANAGEMENT
To establish a fair, transparent, e?cient, and orderly supply chain system, Jihong Group has developed systems including theSupplier Management Procedures, Procurement Management Procedures, and the Centralized Procurement ManagementMeasures to standardize the management of suppliers. In 2023, the total number of suppliers for the Company reached 178.
The Company has established systems such as the Supplier Management Procedures, the Procurement Bidding ManagementMeasures, and the Sunshine Integrity Action Cooperation Agreement to strictly regulate the admission, cooperation, and exitprocesses of suppliers. We adopt an assessment and evaluation mechanism to manage suppliers through a grading system.During the supplier admission stage, the Company conducts thorough risk and integrity assessments on potential suppliers.This involves scrutinizing materials such as factory business licenses, management system certi?cations, productionequipment lists, product quality speci?cations, compliance declarations, and inspection reports. These measures are takento ensure that the factories and products of potential suppliers meet the standards outlined in the Company’s procurementmanagement system. Following internal evaluation and sample tracking, quali?ed suppliers are then registered aftercompleting the necessary application process.Every six months, we conduct a comprehensive assessment of our suppliers, evaluating them across three key aspects: cost,quality, and service. During these assessments, we also o?er optimization suggestions to enhance supplier managementpractices. For suppliers who do not meet our standards, we issue a detailed report outlining required recti?cation measuresto address identi?ed issues and prevent future problems. If a supplier fails to meet our standards for three consecutiveprocurement cycles, we will cease purchasing from them and revoke their supplier quali?cation.
*The data collection scope for the company's supplier count in 2023 includes only the packaging sector.We adopt varioustechnical means suchas encryption, accessveri?cation, logauditing, andsecurity eventmonitoring to detectand prevent datasecurity risks andvulnerabilities.
We appointed specialists responsiblefor data security and personal dataprotection.We strictly control employees’ accessto the system, restrict data accesspermissions as needed, and grant dataaccess in a hierarchical manner.We have formulated internaldocuments such as the Giikin ComputerInformation System EmergencyResponse Plan to standardize thehandling process of sudden events ininformation systems, and regularlyconduct information securityemergency drills to optimize internalemergency plans.We conduct regular informationsecurity training to strengthen theawareness of information securityprotection among all sta?.
Personnel managementTechnical management
JIHONG GROUP’S SAFETY MANAGEMENT MEASURES
NUMBER OF
JIHONGGROUP’SSUPPLIERS
2.5.1.SUPPLIER ADMISSION AND EVALUATION
Chinese mainland：177
Hong Kong, Macao,Taiwan,and overseas regions：
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We set up ?rewallsbased on cloudsystems to enhancenetwork security.We perform regulardata backups andestablish datarecovery proceduresto reduce the risk ofdata loss.
Equipment management
2.5.2.SUSTAINABLE SUPPLY CHAIN
2.5.SUPPLY CHAIN MANAGEMENT
The Company continuously its supply chain sustainability management strategy, committed to integrating environmentaland social considerations into every stage of the supply chain management process. Through rigorous inventorymanagement, quali?cation reviews, regular assessments, and audits, we proactively manage and mitigate the environmen-tal and social risks associated with our suppliers.JIHONG GROUP’S SUPPLIER SUSTAINABILITY MANAGEMENT REQUIREMENTS
We request suppliers to provide the ISO 9001 quality managementsystem certi?cation.PRODUCT QUALITY
We prioritize choosing suppliers with good environmentalmanagement.We require suppliers to provide the ISO 14001 environmentalmanagement system and the environmental management systemcerti?cation of the FSC forest management certi?cation.We give bonus points to suppliers who show a good status inenvironmental management inspection within the year.
ENVIRONMENTAL
MANAGEMENT
HEALTH AND SAFETY
We prioritize selecting suppliers with good occupational health andsafety management.We require suppliers to provide the ISO 45001 occupational healthand safety management system certi?cation.We require chemical suppliers to provide hazardous chemicalsbusiness licenses, safety and environmental protection assessmentreports, chemical safety technology, and conformity declarations.We give bonus points to suppliers who show a good status inenvironmental management inspection within the year.
We sign the Sunshine Integrity Action Commitment Letter withsuppliers, strictly requiring them to follow ethical businessstandards.BUSINESS ETHICS
To achieve common prosperity and achieve mutual bene?ts throughout the industry chain, the Company actively engages inexchange activities with its suppliers. In 2023, we prioritized communication and collaboration with suppliers, conductingtraining sessions and exchanges with raw paper and materials suppliers. Through initiatives such as partnership incentives,information sharing, and technical support, we e?ectively combined product knowledge, technology, and applicationexpertise to enhance the quality of supplies from our suppliers. In 2023, we organized or participated in 12 supplier exchangeevents.
2.5.3.SUPPLIER COMMUNICATION
Case: Supplier communication activities empower product quality
-19-
From May to November 2023, the Company continuously carried out supplier empowerment training activities, witha total of 311 participants. The training included topics such as the use of raw materials, base paper, and ink,integrating product knowledge, technology, and application, gradually improving product quality, and reducinglosses. Meanwhile, the Company actively conducted training satisfaction surveys, with an overall suppliersatisfaction rate reaching 100%.
Jihong Group’s supplier empowerment activity
3.LOW-CARBON OPERATIONS
FOR A GREEN FUTUREJihong is actively committed to advancing green development practices, advocating for energy conservation and emissionreduction initiatives. We integrate the principles of sustainable development into our corporate operations and productdesign, continually enhancing our green manufacturing processes. Through these e?orts, we remain steadfast in ourcommitment to building a sustainable and environmentally responsible enterprise.
3.1.GREEN PRODUCTION
Jihong Group actively promotes the concept of sustainable development through tangible actions, vigorously drivinghigh-quality development while remaining steadfast in our commitment to achieving carbon neutrality within our ownoperations. The Company comprehensively implements green operations and encourages employees to actively participatein environmental protection e?orts both at work and in their personal lives. Through these initiatives, we strive to cultivate asustainable coexistence with the ecological environment.
The Company strongly advocates for energy conservation and emission reduction, continuously improves resourceutilization e?ciency, and adheres to an environmentally friendly and sustainable development path.
The Company strictly adheres to the Law of the People’s Republic of China on Environmental Protection , the Law of the People’sRepublic of China on Prevention and Control of Water Pollution, and the Law of the People’s Republic of China on Prevention andControl of Pollution from Environmental Noise. We have developed internal management systems such as the EnvironmentalManagement System, which standardizes processes and regulates the implementation of environmental protectionmeasures. In 2023, our packaging and printing production facilities passed the ISO 14001 environmental managementsystem certi?cation.To mitigate potential risks such as air pollution, water pollution, and hazardous waste disposal, we have developed theEnvironmental Protection Emergency Plan. This plan standardizes the response to sudden pollution incidents, aiming tominimize the impact of potential environmental pollution and ecological damage accidents. We have established anEmergency Rescue Leading Group tasked with coordinating relevant departments to analyze the causes and impacts ofaccidents. Additionally, we conduct regular emergency drills and routine checks on environmental impact factors to ensurepreparedness. In terms of environmental impact assessment, we follow the Classi?ed Administration Catalogue ofEnvironmental Impact Assessments for Construction Projects issued by the Ministry of Ecology and Environment of thePeople’s Republic of China, hiring quali?ed entities to carry out environmental impact assessment. In 2023, we did notcommit any environmental violations.
3.1.1.ENVIRONMENTAL MANAGEMENT SYSTEM
3.1.2.RESOURCE MANAGEMENT
On the path towards fostering green and low-carbon operations, we persistently optimize our energy structure by promotingthe comprehensive use of clean and renewable energy sources. Furthermore, we increase our investment in the research anddevelopment of low-carbon technologies and energy-saving renovations within our operation. In 2023, the Companyconstructed a 10MW distributed photovoltaic power generation project across its production bases in Xiamen, Anhui,Langfang, and Jinan, generating approximately 6 million kWh of electricity annually.
JIHONG GROUP’S HIGHLIGHT MEASURES ONENERGY-SAVING AND EMISSION REDUCTION
We have purchasedmore energy-e?cientequipment to reduceenergy consumptionand used equipmentthat provides acentralized gassupply throughpositive and negativepressure, saving 1.32million kWh ofelectricity annually.
We have improvedthe combustione?ciency ofequipment such asindustrial furnacesand boilers, therebyreducing energyconsumption causedby incompletecombustion or heatlosses.
By optimizingthe insulationmethod andimproving theairtightness, wehave enhancedthe thermalinsulationperformance ofthe boiler,thereby reducingheat losses.
We have utilizedwaste heat boilersand gas turbinesto recover wasteheat.
We have installedand con?guredmonitoringinstruments toreal-time monitorthe operation ofboilers and otherequipment, andreasonablyadjusted them tothe energy-savingmode.
ENERGY MANAGEMENT
The Company strictly complies with laws and regulations such as the Law of the People’s Republic of China on EnergyConservation and formulates internal documents such as the Energy Conservation and Consumption Reduction ManagementSystem and the Energy Management Operation Manual. We have established an Energy Management Group, who are fullyresponsible for our energy management. To oversee our energy management e?orts, we have established an EnergyManagement Group tasked with ensuring full accountability for energy management initiatives. Our objective is to minimizeenergy consumption losses and waste, particularly in electricity usage across all aspects of production, striving to maximizeproduction performance and economic bene?ts with minimal energy consumption.
24135
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ENERGY MANAGEMENT
Distributed photovoltaic power ofJihong Group’s Anhui factory
Distributed photovoltaic power ofJihong Group’s Langfang factory
Distributed photovoltaic power ofJihong Group’s Xiamen factory
IndicatorUnit2023GasolineDieselNatural gasPurchased electricityPurchased heatTotal energy consumptionEnergy consumption intensity
tontoncubic meterkWhGJtcetce/RMB 1 million of revenue
3,468,12449,512,481
10,420
1.56
JIHONG GROUP’S ENERGY CONSUMPTION
IndicatorUnit2023Scope 1 GHG emissionsScope 2 GHG emissionsScope 1 + Scope 2 GHG emissionsGHG emissions intensity
tCOetCOetCOetCO2e/RMB 1 million of revenue
7,86028,23736,097
5.39
JIHONG GROUP’S GHG EMISSIONS
JIHONG GROUP’S WATER USE IN 2023
WATER RESOURCE MANAGEMENT
The Company strictly follows laws and regulations such as the Water Law of the People’s Republic of China. We continuouslyupgrade high water consumption production processes and employ industrial wastewater treatment equipment to facilitatethe e?cient and circular utilization of water resources. In 2023, our subsidiary factories implemented reclaimed water reusetreatment equipment and boiler water puri?cation equipment to treat wastewater used for equipment cleaning purposes.This initiative e?ectively increased the utilization of recycled water while achieving low discharge of industrial wastewater.
2023 HIGHLIGHT MEASURES FORWATER CONSERVATION INTHE FACTORY:
The Shanxi factoryused waterpuri?cationequipment in theboiler room to recycletreated wastewater,achieving an annualwater saving of about1,320 tons.
The Ningxia factorysigni?cantly reduced thewater usage for glueproduction by recyclingwastewater throughwater puri?cationequipment in the boilerroom, achieving anannual water saving ofabout 1,440 tons.
The Luanzhou factoryadopted a waste waterrecycling and reuseprocess from tile linesand recovered aboutone ton of washingwater per day, saving300 tons of waterannually.
1,320
ton
1,440
ton
ton
Purchased water177,534ton
Water consumption intensity
26.52
ton/RMB 1 million of revenue
-21-
3.1.3.EMISSION MANAGEMENT
3.1.GREEN PRODUCTION
WASTEWATER MANAGEMENT
WASTE GAS MANAGEMENT
Jihong Group is committed to a green and environmentally friendly production environment. We have established acomprehensive emission management system and disposal process aimed at standardizing the management of pollutantssuch as wastewater, exhaust gas, and solid waste generated during production. Through these initiatives, we aim to minimizeour negative impact on the environment while actively contributing to the empowerment of a green ecology.
The Company strictly adheres to laws and regulations such as the Law of the People’s Republic of China on Water PollutionPrevention and Control and the Regulation on Urban Drainage and Sewage Treatment. We have formulated the ProductionWastewater Treatment Management System as an internal management system to standardize the production wastewatertreatment process and prevent environmental pollution caused by wastewater. We implement grid management for eachproduction unit, delineating clear safety management responsibilities for the personnel at treatment stations. Moreover, wehave implemented a performance assessment mechanism to ensure their supervision and prevent the illegal discharge ofuntreated wastewater. To ensure the stable operation of equipment, the management department conducts biannual cleaningof wastewater treatment equipment, adjusting the frequency as needed based on equipment condition and checking forinternal wear and tear. All subsidiary factories utilize reclaimed water treatment equipment, facilitating wastewater recyclingand minimizing industrial wastewater discharge.
The Company follows laws and regulations such as the Law of the People’s Republic of China on on Prevention and Control ofAtmospheric Pollution and has developed the Prevention and Control System for Waste Water, Waste Gas, Dust and SolidWastes. In accordance with the law, we conduct environmental impact assessments and publicly disclose assessmentdocuments. We strictly adhere to standards for controlling air pollutant emissions. For production activities generating wastegases in enclosed spaces, we install and utilize pollution control facilities as mandated. Additionally, we employ dust ?lteringtechnology to e?ectively control emissions, treating waste gases and dust generated in various workshops.
JIHONG GROUP’S TOTALEMISSIONS IN 2023
JIHONG GROUP’S TOTAL WASTE GASEMISSIONS IN 2023
SOLID WASTE MANAGEMENT
The Company complies with multiple waste regulations and policies such as the Law of the People’s Republic of China onEnvironmental Protection and the Law of the People’s Republic of China on the Prevention and Control of Environmental Pollutionby Solid Waste, among others. By lining with our production characteristics, we manage waste through classi?cation, prioritizewaste reduction and recycling initiatives, and enhance resource utilization e?ciency. For hazardous waste, we have establishedthe Hazardous Waste Management System in accordance with government environmental protection regulations. Alldepartments are responsible for collecting, calculating, and archiving the amount of hazardous waste produced by category.Hazardous waste is regularly handed over to the hazardous waste management department for classi?ed storage in thehazardous waste warehouse, and then transferred for processing.
Total waste gas emissions
213,000ton
（Hazardous waste）Hazardous waste such assludge and waste ink barrels
109.6ton
（Non-hazardous waste）Waste paper from production
33,256.1ton
WASTE PRODUCEDBY JIHONG GROUPIN 2023
-22-
Industrial wastewater discharge 1,440 tonDomestic sewage67,113 ton
3.1.4.GREEN PRODUCTS
3.1.GREEN PRODUCTION
As environmental protection concepts continue to evolve, Jihong Group has prioritized low-carbon emission reduction asthe primary goal of its innovation and R&D e?orts. Our focus lies in eliminating plastic from packaging materials andpromoting the use of sustainable alternatives, thereby advocating for green production and sustainable development. In2023, we made several breakthroughs in the R&D of green products. These include multi-functional reusable packaging androbust water-resistant paper bags made from sustainable materials. These innovations aim to replace traditional plastic, tincans, and other packaging containers, striking a balance between green principles and practicality.
Multi-functional reusable packaging: Through the innovative design of the structure, theproduct is lined with multi-functional storage space. At the same time, the design of thepackaging helps customers to reuse the carton structure after opening the box and removingthe original product, and still maintains the intact carton structure. The raw material is madeof naturally degradable corrugated carton instead of plastic or iron box, which helps toprotect the environment.
JIHONG GROUP’S MAJOR GREEN
PRODUCTS IN 2023
HIGHLIGHT 1
Strong water-resistant eco-friendly paper bags: By using materials such as acrylic emulsion,water wax, curing agents, deionized water, and organosilicon, along with other specialadditives, we have developed and produced a waterproof coating. This creates a ?lm with acertain water-blocking e?ect, enhancing the water resistance of the paper bags.
JIHONG GROUP’S MAJOR GREENPRODUCTS IN 2023HIGHLIGHT 2
New corrugated gift boxes with consumer interaction features: Through the structural designof the gift box and the inner card, we have matched the size, spacing, and layout design ofthe interactive accessories’ cutting lines, reducing the consumption of raw paper. We havealso used environmentally friendly materials to achieve green production.
JIHONG GROUP’S MAJOR GREEN
PRODUCTS IN 2023
HIGHLIGHT 3
“Corrugate Cardboard Box” was awarded Green DesignProduct by the Industry and Information Technology Department
of the Inner Mongolia Autonomous Region
2023 Green Design Honors:
Jihong Group's folding carton won the Green Design Product issued by the Ministry of Industry and Information
Technology."Corrugated Carton" won the Inner Mongolia Autonomous Region Department of Industry and Information
Technology "Green Design Products".
In 2023, the Company used environmental friendly and sustainable raw materials such as corn starch and soy-basedink to replace conventional paper, ink, glue, and ?lm resources in order to reduce the impact on the environment.After the product entered the market, it could be recycled through channels such as waste collection stations, witha recycling rate of up to 100%.Case: Jihong Group’s green design of corrugated paper cartons
-23-
Domestic wastemanagementSet up domestic wastestacking areas and carryout classi?ed treatmentof domestic waste.Paperless o?cePrint on both sidesunless otherwiserequired.
Equipment managementSet the cooling temperature of the airconditioning not lower than 26 degrees.Use high-power energy-saving lamps.Install automatic control switches forlighting in public areas, use as muchnatural light as possible, and reduce thenumber of lights used when there isenough illumination.Employees should actively turn o? thelighting equipments when leaving theo?ce area.Establish a power-saving schedule forlighting, with timers for switching onand o?, specifying separate start andstop times for summer and winter.
JIHONG GROUP’S GREEN OFFICE MANAGEMENT MEASURES
Types of risksRisk descriptionCountermeasures
JIHONG GROUP’S GREEN OFFICE PERFORMANCE IN 2023
3.2.GREEN OFFICE
The Company prioritizes environmental and resource management within o?ce areas, implementing a range of energy-sav-ing and emission-reduction measures to promote green o?ce practices. We actively foster a culture of green o?ce habitsamong employees, aiming to reduce environmental pollution and minimize paper and electricity waste. We organize regularenergy-saving education, training, and promotional activities to enhance the professional competence and energy-savingawareness of all sta? members. Additionally, we have established an evaluation system with corresponding rewards andpenalties to encourage adherence to green o?ce practices.
Waste printer toner cartridges（Hazardous waste）Waste printer cartridges（Hazardous waste）Waste mercury-containing
?uorescent tubes（Hazardous waste）Waste electronic equipment
（Hazardous waste）
Used batteries（Hazardous waste）
Kitchen waste（Non-hazardous waste）
Domestic waste（Non-hazardous waste）
O?ce paper（Non-hazardous waste）
92.7
64.0
95.9
117.0
41.1
210.0
452.4
12.6
kgkgkgkgkgtontonton
Types of wasteUnit2023
3.3.CLIMATE CHANGE
In reference to the requirements of the IFRS S2 Climate-related Disclosures published by the International SustainabilityStandards Board (ISSB), Jihong Group takes proactive measures to identify diverse transformation and physical risksassociated with climate change, and promptly develops climate risk management approaches and response measures. Inaccordance with the Notice of the State Council on Printing and Distributing the Action Plan for Carbon Peaking by 2030 and theOpinions of the Central Committee of the Chinese Communist Party and the State Council on Completely and ComprehensivelyImplementing the New Development Concept to Achieve Carbon Peaking and Carbon Neutrality, we proactively prepared theAction Plan for Carbon Peaking and Carbon Neutrality of Jihong, formulating the corresponding carbon emission reductionaction plans.
Government carbon emission quotaallocation and carbon cost pressure;Events that may result in ?nes, losses,business suspension, and negativeimpacts on the brand and reputation;stricter supply chain compliancerequirements;Litigation risks arising from supplychain disruptions, resulting in theCompany’s not being able to ful?llcontracts on time;Increased costs for upgradingequipment for energy saving ande?ciency improvements;Possible loss of orders and reductionin revenue due to the lack of carbonneutrality targets and data disclosure;Downstream enterprise customersrequire upstream suppliers to providegreen, low-carbon products and toestablish carbon neutrality strategicgoals;The quantity and quality of rawmaterials are continuously declining,and the shortage of supply resourcesleads to an increase in R&D costs;Insu?cient emission reductiontargets and disclosure of emissioninformation lead to the inability tomeet shareholder expectations,causing negative publicity for theCompany’s reputation;Operating assets and equipmentlosses, sales losses due to businessinterruption;Increase in energy consumption infactories and o?ces, leading to a risein energy costs;Reduced employee productivity andincreased labor costs.
Formulate carbonreduction plansaccording to theindustry’slow-carbonpolicies.Prioritizepurchasinglow-energy-con-sumptionequipment.
Formulateemergency plans torespond to naturaldisasters andextreme weather tominimize losses tothe greatest extent.
Industry low-carbonpolicy requirements
Tightening regulatoryrequirementsLitigation risksThe cost of transitioningto low-carbon emissiontechnologiesChanging behaviors andpreferences of customersRising raw material costsNegative publicityFrequent typhoons,?oods, droughts, andother extreme weatherconditionsClimate change and risein average temperature
Transition risks
Policy risksReputational
risks
Acute risksChronic risksTechnology and market risks
Physical risks
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JIHONG GROUP’S CLIMATE CHANGE RISK IDENTIFICATION LIST
4.GROWING TOGETHER WITH INCLUSION AND CARE
Jihong Group, relying on a perfect management system and outstanding corporate performance, ensures the protection ofall employees’ legitimate rights and interests. We actively foster a corporate culture that is diverse, inclusive, open, andenterprising, thereby nurturing a conducive environment for employees’ professional growth and career development. TheCompany upholds the values of responsibility and commitment, actively engaging in social welfare and charitableendeavors, and supporting the development of the local community.
4.1.TALENT ATTRACTION
Jihong Group is committed to creating a sustainable talent ecosystem, with a focus on o?ering competitive salaries andbene?ts to employees. Our aim is to attract and retain top talent while fostering shared interests between the Company andits workforce.
The Company adheres to the principle of equal employment and respects employee diversity. We strictly comply with legaland regulatory policy requirements such as the Labor Contract Law of the People’s Republic of China and the Labor Law of thePeople’s Republic of China. We have formulated internal management documents such as the Cooperate Social Responsibility(CSR) Management Manual to clearly outline our commitment to eliminating any form of discrimination in employeerecruitment, employment, assessment, promotion, retirement, and other areas. We ensure that decisions are not based onfactors such as gender, age, religious beliefs, nationality, marital status, race, disability, or any other factors. For employeesperforming the same tasks, expending the same e?ort, and achieving similar levels of performance, we provide equalcompensation and welfare bene?ts.In accordance with the Law of the People’s Republic of China on the Protection of Minors and the Provisions on the Prohibitionof Using Child Labor, we have explicitly outlined in the Cooperate Social Responsibility (CSR) Management Manual theCompany and all its employing units are required to rigorously verify the identity information of employees during therecruitment process and must refrain from employing minors. We unequivocally prohibit all forms of forced labor. In theevent of a suspected case, we initiate an investigation immediately, and impose corresponding punishments on the directlyresponsible supervisors and other relevant personnel. In 2023, there were no incidents of employing child labor or forcedlabor in the Company.
4.1.1.DIVERSITY AND INCLUSION
DIVERSIFIED RECRUITMENT
The Company has formulated a comprehensive human resources strategy aimed at attracting talent from diverse backgroundsthrough various channels such as campus recruitment, online media platforms, and headhunting. Our goal is to build amulti-tiered, high-quality talent pool. actively promote the re-employment of retired technical personnel, prioritize therecruitment of individuals from minority groups, and continuously strive to increase the representation of women inmanagement positions. These e?orts underscore our commitment to fostering the high-quality development of theenterprise. In 2023, we had employed4,464 people, including 40 with disabilities.
JIHONG GROUP’S EMPLOYMENT IN 2023
++Campus recruitmentWe establish strategicpartnerships with majoruniversities and colleges,develop a long-term,stable cooperationframework, and recruitnew graduates as traineeinterns for the Company.
Online media recruitmentWe carry out recruitmentthrough mainstreamdomestic recruitmentwebsites, professionaltalent websites, and localtalent websites.
Headhunting recruitment
We hunt formid-to-high-end talentsfor the Company throughreputable institutions,ensuring the quality oftalents and the e?ciencyof recruitment.
4,464
Number of employeesperson
22.75
Employee turnover rate%2,2202,244
MaleFemale
Number of employeesby gender
1,916
1,560
30 andbelow31-4041-5051 and
above
Number of employees by age
22%
23%
MaleFemale
Employee turnoverrate by gender
28%
20%19%
10%30 andbelow
31-4041-5051 and
above
Employee turnover rateby age
1,397
2,053
Graduate
andaboveUndergraduateJunior
collegeBelowjuniorcollege
Number of employeesby education
3,244
Generalsta?middlemanager
seniormanager
Number of employeesby employment type
4,457
Chinesemainland
OutsideChinesemainland
Number of employees by region
RECRUITMENT CHANNELS
-25-
4.1.2.EMPLOYEE BENEFITS
4.1.TALENT ATTRACTION
In line with the principles of compliance, fairness, motivation, competitiveness, and resilience, the Company has devised acomprehensive Compensation and Management System. We continuously improve the salary and bene?ts security system toenhance the security of salaries and bene?ts, and e?ectively implement an incentive policy that encompasses all sta?members. By doing so, we aim to stimulate organizational vitality and ensure the Company’s sustainable growth. At thesame time, we have established a performance incentive framework and accountability mechanism for all employees, alongwith a system for communicating and providing feedback on performance results. Recognizing the diverse value attributes ofdi?erent business units and the unique characteristics of various positions, we have developed four distinct salarycategories: performance-based salary, annual salary, commission-based salary, and piece-rate salary. These categories aredesigned to fully safeguard the salary rights and interests of our employees.The Company places utmost importance on respecting employees’ rights to information and overseeing public opinion. Tothis end, we have revised the Social Responsibility Management System to standardize the mechanism and process foraddressing employees’ complaints related to their rights and interests. We have established a dedicated platform foremployee communication and actively solicit their opinions and suggestions through various channels, including employeeforums and suggestion boxes. We encourage all employees to voice their concerns or provide suggestions anonymously oropenly, within the bounds of legality and compliance, regarding any issues they encounter in their work or personal lives, aswell as suggestions for improving various aspects of the Company. Our relevant departments promptly address and followup on the issues and suggestions raised by employees, providing timely responses and implementing solutions. In 2023,Jihong Group conducted a satisfaction survey on employee meals across nine factories, ensuring that employees fully enjoytheir rights within our operations.In addition, we prioritize the work-life balance of our employees, actively fostering a harmonious and positive culturalenvironment. We aim to enrich their leisure activities, alleviate work-related stress, and comprehensively enhance theirsense of engagement, accomplishment, identi?cation, and happiness. In 2023, we donated RMB43,931 to employees
facing hardships.
Case: Women’s Day event
In March 2023, Jihong Group held a special Women’s Day event for all female employees at its headquarters inXiamen. Leaders delivered speeches expressing sincere blessings and deep gratitude to the female colleagues fortheir hard work and outstanding contributions to the Company’s development. This event not only allowed thefemale colleagues to feel the Company’s care and respect but also further strengthened the Company’s cohesionand unity.
Women’s Day eventCase: Jihong Group’s Mid-Autumn fortune event
In September 2023, Jihong Group held its annual Mid-Autumn fortune event at its Xiamen factory. On the day,leaders and all employees gathered together to experience the grand occasion of traditional culture and to pursuegood fortune. This event not only enhanced emotional exchanges among employees but also enriched their leisuretime.
Mid-Autumn fortune event
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New college graduatesConducttraining for communica-tion skills, professionaletiquette, o?ce skills,and job skills for newemployees to assist theirrole transition fromcampus to workplace. TACT model: It is a training system for reserve talents with Training、self- Arise、Coaching、Task assignment as the core links.
4.2.TALENT GROWTH
Jihong Group ?rmly believes that talent is the cornerstone of enterprise development. Guided by our founding principle ofevolving in tandem with our employees, we are dedicated to o?ering diverse development avenues and tailored trainingprograms to our workforce. Through the coordination of resources from various stakeholders, we have established acomprehensive range of training courses aimed at fostering the career advancement of our employees. This initiativeempowers them to unlock their full potential, thereby advancing both their personal growth and the development of theCompany.
4.2.1.TALENT CULTIVATION
To e?ectively enhance the overall business capabilities of employees, we have formulated training systems such as theTraining Management System. This framework standardizes the process and requirements for employee training, underscor-ing our commitment to establishing a scienti?c mechanism for nurturing talent pools. We provide employees with diverseoptions for growth and have introduced three talent team-building initiatives: the Successor Program for mid-to-high-leveltalent, the Grand Vision Program for mid-to-basic-level talent, and the Master and Apprentice Program for operational-leveltalent. Our training approach follows the TACT model, leveraging the strengths of core talents across various levels. In 2023,the total training hours for all employees reached 12,405 hours.
JIHONG GROUP’S TRAINING PROGRAMS
Managementtrainee camp
Related departmentsSuppliers provideempowerment trainingto employees of relateddepartments, enhancingtheir equipmentoperation skills.
Supplier reverseempowerment
Senior managersEnhance the ability ofsenior managers tosystematically integratevision, strategy,organization, and culture,while fostering corecompetencies for theenterprise.Middle managersImprove the variousmanagement skillsneeded for middlemanagers to achieve thegoals of the Company.Junior managersImprove the basicmanagement skills andabilities such as planning,control, and improvementneeded for juniormanagers to completework tasks.
Management
leaders
Case: Pre-job training for employees
In 2023, the Company carried out job competency training for employees to ensure that they possess the necessaryskills and knowledge. This training helped employees better adapt to their job positions, improved their overallbusiness capabilities, and laid a solid foundation for the Company’s development.
Pre-job training for employees
Case: Jihong Group’s talent team-building activity
In accordance with the 2023talent development plan, theCompany vigorouslypromoted school-enterprisecooperation by carrying outapprentice training, leadingnew employees to learn aboutthe equipment, includingoperating new machines andrepairing simple equipment tohelp improve the professionalskills of new employees.Apprentice training activity
In October 2023, Jihong Group initiated the “Jihong Class”, an innovative attempt at deep cooperation with vocation-al colleges. This collaboration combined the special class with the Company’s talent development concept and,based on the actual needs of each production base under Jihong Group’s packaging business sector, carried outtargeted vocational education aimed at cultivating high-quality talents who can quickly adapt to and integrate intothe corporate work environment. Currently, the Company’s packaging business sector has a total of ten productionbases, with a workforce of over 2,000 people, providing a broad employment prospect for school-enterprisecooperation.
Case: Jihong Group collaborates with vocational colleges to establish the “Jihong Class”
JIHONG GROUP’S EMPLOYEE
TRAINING IN 2023：
2.78
hour/personAverage training hours per person
-27-
Employees in keypositionsConduct professional skilltraining for employees inkey positions to enhancetheir job competency.
Key positions(competencydevelopment)
To strengthen the review and supervision of contractors, suppliers, and other related parties, we have formulated the RelatedParty Safety Management System. This system standardizes contractor safety management and mitigates potential adversee?ects on the Company resulting from related incidents or accidents. Our Safety and Environmental Department is responsi-ble for supervising and managing contractors’ safety, while the Procurement Department facilitates the exchange anddissemination of safety information. Our aim is to establish a comprehensive, full-cycle contractor safety risk managementsystem. Before cooperation, we require contractors to sign the Safety Management Agreement and undergo safety training.This process clari?es the responsibilities and work requirements for both parties concerning occupational safety, therebyensuring the safety of contractors. In 2023, there were no occupational safety accidents involving contractor employeeswithin the operational scope of Jihong Group.
4.2.2.PROMOTION AND DEVELOPMENT
Jihong Group adheres to the principles of openness, fairness, and justice and regularly carries out talent inventory work. Wehave formulated the Employee Career Development Management System as an internal management system, establishing astandardized employment mechanism that fosters a culture where “the capable rise, the mediocre step aside, and theincompetent leave.” During promotion assessments, we conduct comprehensive evaluations and screenings encompassingemployee technical pro?ciency, professional aptitude, and management skill enhancement. Tailoring career developmentpaths to individual attributes and capabilities, we ensure that each employee discovers the most suitable direction andobjectives for their advancement.
4.3.SAFETY AND HEALTH
Jihong Group always prioritizes health and safety, adhering to the work policy of “people-oriented, safety ?rst,prevention-focused, and comprehensive management.” We continuously improve our safety management framework andsystem. To reinforce safety operation and construction management, we engage in activities such as safety hazard investiga-tion and management, along with safety awareness and skill training for employees. These measures are undertaken tocomprehensively safeguard the well-being of our employees.
4.3.1.WORK SAFETY
The Company strictly adheres to laws and regulations such as the Law of the People’s Republic of China on the Prevention andControl of Occupational Diseases and the Work Safety Law of the People’s Republic of China. We have formulated a series ofsafety management systems including the Production Safety Management System, the Comprehensive Contingency Plan forWorkplace Accidents, the Safety Risk Classi?cation and Control, and Hidden Danger Investigation and Management System, andthe Fire Safety Management System. These systems establish inspection standards for safe and civilized construction,delineate responsibilities among construction-related units, outline construction engineering procedures in detail, andensure e?ective work safety management.Based on the Work Safety Responsibility System, we have established the Work Safety Management Committee to overseeand direct our employees’ occupational health and safety initiatives. This committee is tasked with managing various safetyand environmental concerns, ensuring standardized personnel management safety, and preventing occupational diseases.We have explicitly outlined the responsibilities and authorities of supervision and construction units concerning construc-tion safety and civilized construction, thereby furnishing robust support for establishing a safe and standardized construc-tion environment.
Number ofwork-related fatalities
person
Work safetyinvestment
2.64
million RMB
Jihong Group strictly adheres to the requirements of laws andregulations such as the Law of the People’s Republic of China on thePrevention and Control of Occupational Diseases. We adhere tointernational advanced standards in occupational health and safetymanagement, devising frameworks such as the Occupational HealthManagement System and the 2023 Safety and EnvironmentalManagement Work Plan. Additionally, we have established anoccupational disease prevention team dedicated to advancing theconstruction of our occupational health and safety managementsystem. To ensure the suitability, adequacy, and e?ectiveness of themanagement system, we regularly conduct audits of the ISO 45001occupational health and safety system, management reviews, andthird-party supervisory audits, and promptly urge recti?cation ofidenti?ed issues. As of the end of the reporting period, we haveobtained the ISO 45001 occupational health and safety systemcerti?cation.i
4.3.2.OCCUPATIONAL HEALTH AND SAFETY
JIHONG GROUP’S KEY OCCUPATIONAL
HEALTH WORK IN 2023
OCCUPATIONAL HEALTH OF EMPLOYEES IN 2023
Goal settingPolicy guaranteeCulture developmentProtective measuresWe formulated theCompany’s 2023occupational healthmanagement goals andissued them indocuments.We formulated monthlyand annual projectassessment criteria.
We developed laborprotection PPE plansfor the production ofvarious subsidiaries.We issued andenforced theoccupational hazardnoti?cation standardsto all subsidiaries.
We formulatedoccupational diseaseprevention publicityrequirements andnotices, issued them,and supervised theirimplementation by allsubsidiaries.
We provided employeeswith regular occupationalhealth check-ups andcommercial insuranceand comprehensivelystrengthened theprevention and control ofoccupational diseasesand health managementfor employees.
759person
Number of employees atpositions with occupational
disease risks
908person
Number of employeesparticipating inoccupational disease
examinations
0person
Number of employeeswith occupational diseases
0.65million RMB
Occupational healthand safety investment
ISO 45001 occupational health and safety managementsystem certi?cation
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JIHONGGROUP’SWORK SAFETYIN 2023
4.3.3.SAFETY CULTURE
4.3.SAFETY AND HEALTH
EMERGENCY SUPPORT
In our daily work, we prioritize the education of employees on safety culture, conducting regular safety education sessionsand observing the Work Safety Month activity. Our objective is to enhance employees’ awareness and pro?ciency inoccupational safety and protection measures.
We conduct thorough special recti?cation initiatives for production safety, intensify the identi?cation of potential hazards, anddevise comprehensive emergency protocols for unforeseen events. Our aim is to minimize human casualties, propertydamage, environmental harm, and social repercussions to the fullest extent possible. Annually, we perform safety riskassessments, compiling a comprehensive risk inventory at each organizational level. This process aids in identifying majorrisks subject to close monitoring and supervision by the Company.We continue to strengthen the development of safety emergency management mechanisms across all subsidiaries. Eachentity has instituted an emergency management system with delineated responsibilities, swiftly responding to any anomaliesdetected through monitoring and early warning systems. In addition, we prioritize enhancing the emergency knowledge andskills of all personnel, conducting regular drills in accordance with emergency response plans to bolster everyone’s pro?cien-cy in handling safety risk incidents.
Case: Jihong Group’s safety emergency drillsIn 2023, Jihong Group actively carried out safety emergency drills. By simulating real-life scenarios, we aimed toimprove the response speed and the ability of our employees to handle emergency situations, ensuring that quickand e?ective measures can be taken to protect the lives of our employees in case of emergencies.
Safety emergencydrill in Anhui factory
Safety emergencydrill in Jinan factory
Safety emergency drill inHuanggang factory
Safety emergencydrill in Hohhot factory
Case: Fire emergency evacuation drill
In December 2023, the Company carried out ?re emergency evacuation drills with the themes “Preventing Fire fromthe Details and Ensuring Safety Together” and “Taking Responsibility in Fire?ghting and Staying Aware in Life.” Thepurpose was to strengthen the education of employees’ safety awareness, enhance their emergency rescue andself-rescue capabilities, ensure that employees can respond correctly and quickly to initial ?res and safeguard thehealth and property safety of employees.
Fire emergency drill
Case: Work Safety Month Activity
In 2023, to promote a safety culture, and enhance the awareness of work safety and compliance with laws andregulations among all employees, we joined hands with various subordinate factories to carry out the Work SafetyMonth activity. Through this activity, we enhanced strict accident control, promoted the long-term, stabledevelopment of the Company’s work safety, and ensured the normal operation of production and business.Work Safety Month activityin Luanzhou FactoryWork Safety Month activityin Anhui Factory
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4.4.SOCIAL WELFARE
Jihong Group upholds the principle of gratitude and reciprocity, steadfast in sharing the bene?ts of its progresswith society and ful?lling corporate social responsibility with diligence. Leveraging our resources, we extendessential ?nancial and material aid to support various regions, engaging in endeavors such as assisting those inneed, visiting retired veterans, and endorsing public welfare initiatives, thus demonstrating our commitment tosocietal well-being through tangible actions. In 2023, the Company actively engaged in a public welfarescholarship project initiated by the China Foundation for Rural Development and joined forces as a public welfarepartner in the One Yuan Donation program. Through charitable contributions encompassing targeted support,compassionate donations, educational aid, and other initiatives, Jihong Group deepens collaboration betweenenterprises and local communities, propelling local advancement, reinforcing and broadening the impact ofpoverty alleviation initiatives, and fostering the holistic revitalization of impoverished regions and rural areas.
Case: Helping people with di?culty
In 2023, Hohhot Jihong Printing Packaging Co., Ltd. actively participated in the charity activity organized by theIndustry, Information, Science and Technology Bureau of Tumed Left Banner to donate to the underprivileged. Wevisited local community members who were not properly resettled and were living in di?cult conditions to providesupport and assistance. A total of RMB31,500 in relief funds was provided to 21 underprivileged individuals, furtherensuring their quality of life.
Helping people with di?culty
The Company remains dedicated to initiating diverse public welfare projects aimed at aiding vulnerable demographics,while also inspiring our employees to actively engage in community development and public service through volunteerism.Through these e?orts, we contribute to fostering harmony within society and nurturing vibrant, beautiful communities.
Public charity certi?cate
Case: Visiting retired veterans
In 2023, on the occasion of Army Day, GiiKin (Zhengzhou) Digital Technology Co., Ltd. organized its employees tovisit retired veterans, bringing them carefully prepared gifts and warm care. Despite the torrential rain, employeesvisited these honored homes, had heartfelt conversations with the veterans, listened to their military stories, andexpressed their respect and gratitude through their actions.
Visiting retired veteransCase: Xiamen Marathon partnership
In 2023, Jihong Group joined hands with the Xiamen Marathon and launched the noodle soup campaign, inspiredby the o?ering to Jinming Temple in Xiamen, to convey blessings for good luck and good health of the contestants.At the 31-kilometer mark of the return course, the Company worked with the organizers of the Xiamen Marathon toprovide contestants with a bowl of warm and delicious noodle soup, giving them the strength to keep runningforward, which represents a new chapter for the Xiamen Marathon.
Xiamen Marathon partnership
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APPENDIX
HKEX ESG REPORTING GUIDE
Subject Areas, Aspects, General Disclosures and Key Performance Indicators Location
Subject Areas, Aspects, General Disclosures and Key Performance Indicators Location
General Disclosure：relating to air and greenhouse gas emissions,discharges into water and land, and generation of hazardous andnon-hazardous waste（a）the policies; and（b）compliance with relevant laws and regulations that have a signi?cant impact on the issuerA1.1 The types of emissions and respective emissions dataA1.2 Direct (Scope 1) and energy indirect (Scope 2) greenhouse gasemissions (in tonnes) and, where appropriate, intensity (e.g., per unitof production volume, per facility)A1.3 Total hazardous waste produced (in tonnes) and, whereappropriate, intensity (e.g., per unit of production volume, per facility)A1.4 Total non-hazardous waste produced (in tonnes) and, whereappropriate, intensity (e.g., per unit of production volume, per facility)A1.5 Description of measures to mitigate emissions and resultsachievedA1.6 Description of how hazardous and non-hazardous wastes arehandled, reduction initiatives and results achievedGeneral Disclosure：Policies on the e?cient use of resources, includingenergy, water and other raw materialsA2.1 Direct and/or indirect energy consumption by type (e.g.,electricity, gas or oil) in total (kWh in ’000s) and intensity (e.g., per unitof production volume, per facility)A2.2 Water consumption in total and intensity (e.g., per unit ofproduction volume, per facility)A2.3 Description of energy use e?ciency target(s) set and steps takento achieve themA2.4 Description of whether there is any issue in sourcing water that is?t for purpose, water e?ciency target(s) set and results achieved
Environment
A1Emissions
A2Use of Resources
A2.5 Total packaging material used for ?nished products (in tonnes)and, if applicable, with reference to per unit producedGeneral Disclosure：Policies on minimising the issuer’s signi?cantimpacts on the environment and natural resourcesA3.1 Description of the signi?cant impacts of activities on theenvironment and natural resources and the actions taken tomanage themGeneral Disclosure：Policies on identi?cation and mitigation ofsigni?cant climate-related issues which have impacted, and thosewhich may impact, the issuerA4.1 Description of the signi?cant climate-related issues which haveimpacted, and those which may impact, the issuer, and the actionstaken to manage themGeneral Disclosure: relating to compensation and dismissal,recruitment and promotion, working hours, rest periods, equalopportunity, diversity, anti-discrimination, and other bene?ts andwelfare(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerB1.1 Total workforce by gender, employment type, age group andgeographical regionB1.2 Employee turnover rate by gender, age group andgeographical regionGeneral Disclosure：relating to providing a safe workingenvironment and protecting employees from occupational hazards(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerB2.1 Number and rate of work-related fatalities occurred in each ofthe past three years including the reporting yearB2.2 Lost days due to work injuryB2.3 Description of occupational health and safety measuresadopted, and how they are implemented and monitoredGeneral Disclosure：Policies on improving employees’ knowledgeand skills for discharging duties at work. Description of trainingactivitiesB3.1 The percentage of employees trained by gender and employeecategory (e.g., senior management, middle management)B3.2 The average training hours completed per employee by genderand employee category
B1Employment
A3TheEnvironmentaland NaturalResources
A4Climate Change
B3Development and Training
B2Health and Safety
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SocialEnvironment
P20P22-24
P21
P21
P21
P21
P21
P22
P22
P22
P22P20-21
P24P24
P24P24P22
P25-26、28
P28-29
P27P27P27
P25P25P28P28P28
Subject Areas, Aspects, General Disclosures and Key Performance Indicators Location
B7.1 Number of concluded legal cases regarding corrupt practicesbrought against the issuer or its employees during the reportingperiod and the outcomes of the casesB7.2 Description of preventive measures and whistle-blowingprocedures, how they are implemented and monitoredB7.3 Description of preventive measures and whistle-blowingprocedures, how they are implemented and monitoredGeneral Disclosure：Policies on community engagement tounderstand the needs of the communities where the issueroperates and to ensure its activities take into consideration thecommunities’ interestsB8.1 Focus areas of contribution (e.g., education, environmentalconcerns, labour needs, health, culture, sport)B8.2 Resources contributed (e.g., money or time) to the focus area
Social
B7 Anti-corruption
B8 CommunityInvestment
Subject Areas, Aspects, General Disclosures and Key Performance Indicators Location
General Disclosure：relating to preventing child and forced labour(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerB4.1 Description of measures to review employment practices toavoid child and forced labourB4.2 Description of steps taken to eliminate such practices whendiscoveredGeneral Disclosure：Policies on managing environmental and socialrisks of the supply chainB5.1 Number of suppliers by geographical regionB5.2 Description of practices relating to engaging suppliers, numberof suppliers where the practices are being implemented, how theyare implemented and monitoredB5.3 Description of practices used to identify environmental andsocial risks along the supply chain, and how they are implementedand monitoredB5.4 Description of practices used to promote environmentallypreferable products and services when selecting suppliers, and howthey are implemented and monitoredGeneral Disclosure：relating to health and safety, advertising,labelling and privacy matters relating to products and servicesprovided and methods of redress(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuerB6.1 Percentage of total products sold or shipped subject to recallsfor safety and health reasonsB6.2 Number of products and service related complaints receivedand how they are dealt withB6.3 Description of practices relating to observing and protectingintellectual property rightsB6.4 Description of quality assurance process and recall procedures
B6.5 Description of consumer data protection and privacy policies,how they are implemented and monitoredGeneral Disclosure：relating to bribery, extortion, fraud and moneylaundering(a) the policies; and(b) compliance with relevant laws and regulations that have a signi?cant impact on the issuer
Social
B4 Labour Standards
B5Supply Chain Management
B6 Product Responsibility
HKEX ESG REPORTING GUIDE
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P18-19
P18P18
P25
P12P12P12P30P30P30
P25P25
P19P19
P16P16P16P12
P13-18
P16P17
READER FEEDBACK FORMDear readers,Hello! Thank you very much for reading the 2023 Xiamen Jihong Technology Co., Ltd.Environmental, Social and Governance Report. We highly value and look forward to hearingyour feedback on our ESG management, practices, and reporting. Your opinions andsuggestions will be an important basis for us to continuously advance corporate ESGmanagement and practices. We look forward to your reply!
1. What is your identity?
□ Investor □ Employee □ Supplier □ Customer □ Government and Regulatory Agency
□ Community □ Partner □ Industry Association/NGO □ Other (please specify)
_____________
3. What do you think about the clarity, accuracy, and completeness of the information
disclosed in this report?
□ Excellent □ Good □ Average □ Below average
5. What do you think about the comprehensiveness of the Company’s environmental
responsibilities re?ected in this report?
□ Excellent □ Good □ Average □ Below average
7. Do you think the information provided in this report is readable?
□ Excellent □ Good □ Average □ Below average
9. What do you think of Jihong Group’s performance in giving back to its shareholders?
□ Excellent □ Good □ Average □ Below average
11. Open-ended question: What do you wish to know more about beyond this report?
2. What is your overall comment on this report?
□ Excellent □ Good □ Average □ Below average
4. What do you think about the comprehensiveness of the Company’s economic responsi-
bilities re?ected in this report?
□ Excellent □ Good □ Average □ Below average
6. What do you think about the comprehensiveness of the Company’s social responsibili-
ties re?ected in this report?
□ Excellent □ Good □ Average □ Below average
8. What do you think of Jihong Group’s performance in serving customers?
□ Excellent □ Good □ Average □ Below average
10. How would you rate the accuracy and comprehensiveness of Jihong Group’s communi-
cation with stakeholders and the analysis of their relationship with the Company?
□ Excellent □ Good □ Average □ Below average
12. Open-ended question: What are your suggestions regarding the compilation of our ESG
Report?
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