2023ESG Report
Sichuan Changhong Electric Co., Ltd.
Stock Code: 600839
About ESG Report
Introduction to the ReportScopePreparation BasisContent Source andReliability AssuranceDisclaimerAcquisition MethodShort Name Description
Build SustainableGovernance SystemStrengthen ComplianceRisk ControlConduct Internal AuditEnsure Clean and HonestAdministrationEncourage Fair CompetitionStandardize InformationDisclosureBenefit Stakeholders
03Changhong Risesas a Well-managedBusiness
Improve EnvironmentalProtection SystemSeek Revenue Increase andExpenditure ReductionEnhance Pollution Preventionand ControlAddress Climate ChangeDisplay Green EnvironmentalProtection AchievementsIdentify Environmental Risksand OpportunitiesPreserve BiodiversityAvoid Environmental Violation
Creates a
ChanghongGreen Future
Protect Employee Rightsand SafetyCreate Transparent SupplyChainEnsure Product Safety andService QualityAccelerate Innovation-ledDevelopmentBoost Rural RevitalizationImprove Social WelfareCreates a05Tech Changhong
Better Life
Chairman's MessageBoard of DirectorsStatement
Corporate Pro?leDevelopment CourseCorporate CultureCorporate HonorsOperating Performancein 2023ESG management systemIdenti?cation of Key Topics2023 ESG Key Performance
01About SichuanChanghong
02ESG ManagementStrategy
Indicator IndexFeedback Form
Protect Information SecurityPromote Marketing andPublicityAdvance BRI Development
ESG REPORT 2023
About ESG Report1About ESG Report
Company, the Company, and Sichuan ChanghongSichuan Changhong Electric Co., Ltd.
IntroductionShort Name Description
ScopePreparation Basis
Content Source and Reliability Assurance
Disclaimer
Acquisition Method
Short nameFull name
Sichuan Changhong Electric Co., Ltd. (hereinafter referred to as "Sichuan Changhong" or "the Compa-ny") has prepared this report under the principle of openness and transparency. It aims to fully display theactual performance, risks and opportunities of Sichuan Changhong and its subsidiaries (collectivelyreferred to as "the Group") in social responsibility and sustainable development to shareholders, potentialinvestors, customers, employees, public welfare organizations,media, governments and other sectors ofsociety. This report is collected and collated by the ESG Management Of?ce of the Company. It details theprogress and results of the Group's ESG work in 2023 and ensures that all sectors of society can objective-ly and comprehensively understand the actual actions of the Company in environmental, social andgovernance (ESG). This report has been strictly reviewed by theBoard of Directors of the Company toensure the authenticity and completeness of its contents.
Since 2010, Sichuan Changhong has prepared and published corporate social responsibility reportsevery year. This ESG report covers the period from January 1 toDecember 31, 2023, with parts coveringlonger periods depending on circumstances. Unless otherwise stated, this report covers Sichuan Chang-hong and its subsidiaries (collectively referred to as "the Group").
This report is prepared with reference to Reference Indicator System for ESG Report of Listed Compa-nies Controlled by Centrally-administrated SOEs issued by the State-owned Assets Supervision andAdministration Commission of the State Council, No.14 Guidelines for Self-regulation of Listed Companiesof Shanghai Stock Exchange — Sustainable Development Report (Trial) issued by Shanghai StockExchange, GRI Standards 2021 issued by Global Reporting Initiative, SDGs of the United Nations, and ESGReporting Guidelines in Appendix 27 to the Main Board Listing Rules of the Stock Exchange of Hong KongLimited.
The text materials, data and cases cited in this report are all from the Company's internal statisticaldata, relevant documents and management systems, which are all original records of the actual opera-tion of the Group. All information has been strictly reviewed within the Company and ?nally approved bythe management, ESG Management Committee and Board of Directors. The Company regularly veri?esthe effectiveness of the data collection process and data management system to ensure the accuracyand reliability of the report. The Company promises that there are no false records or misleading state-ments in this report, and it is responsible for the authenticity, accuracy and completeness of reportcontents.
This report may contain forward-looking statements that are based on the Company's reasonableprojections and expectations of possible or imminent business activities, events or developments. Howev-er, due to various uncontrollable factors such as market environment and policy changes, actual resultsmay differ from these forward-looking statements. As such, these statements should not be used as theprimary basis for investments.
This report is prepared in both Chinese and English languages and will be published in electronic form.In case of any discrepancies between the two language versions, the Chinese version shall prevail. Inves-tors and the public can access and download the report from the of?cial website of Shanghai StockExchange. If you have any questions, suggestions, or feedback regarding this report, please feel free tocontact us via email at 600839@changhong.com, and we will reply to and deal with your feedback assoon as possible.
The GroupGuangdong Changhong ElectronicsChanghong Air ConditionerSichuan Changhong Package PrintingSichuan Changhong NeoNet TechnologiesSichuan ChangHong mold and plastic techSichuan Changhong Component TechnologySichuan Changhong Precision Electronics Tech
081 Electronics GroupSichuan Changhong Jijia FineSichuan Changhong BatteryZhongshan Changhong ElectricChanghong MeilingChanghong Huayi CompressorChanghong JiahuaZhongke Meiling CryogenicsSichuan Hongxin SoftwareChanghong Minsheng Logistics
The Company and its subsidiariesGuangdong Changhong Electronics Co., Ltd.Sichuan Changhong Air Conditioner Co., Ltd.Sichuan Changhong Package Printing Co., Ltd.Sichuan Changhong NeoNet Technologies Co., Ltd.Sichuan ChangHong mold and plastic tech Co., Ltd.Sichuan Changhong Component TechnologyCo., Ltd.Sichuan Changhong Precision ElectronicsTech Co., Ltd.081 Electronics Group Co., Ltd.Sichuan Changhong Jijia Fine Co., Ltd.Sichuan ChangHong mold and plastic tech Co., Ltd.Zhongshan Changhong Electric Co., Ltd.Changhong Meiling Co., Ltd.Changhong Huayi Compressor Co., Ltd.Changhong Jiahua Holdings LimitedZhongke Meiling Cryogenics Co., Ltd.Sichuan Hongxin Software Co., Ltd.Sichuan Changhong Minsheng Logistics Co., Ltd.
ESG REPORT 2023
Chairman's MessageFor Sichuan Changhong, the year 2023 has been marked by challenges, opportunities, struggles, and achieve-ments. In the past year, we have been a part of the national efforts to modernize the industrial system. We haveproactively responded to the call for new industrialization and the development of new productive forces, madeall-out efforts to stimulate the construction of the Chengdu-Chongqing economic circle, and led the high-qualitydevelopment closely aligning with the new round of technological revolution. In the face of the challenges posed byour era and the dynamic changes in the market, Changhong has remained steadfast and composed, respondingproactively to various risks and challenges.We are deeply aware that the long-term development of a company depends on a profound understanding andactive fulfillment of environmental, social, and governance responsibilities. Therefore, we have ingrained a sense ofresponsibility deeply into our corporate culture, committed to giving back to society through innovative products andexceptional services. We have fostered consensus on green development, driven technological innovation, andcollaborated with stakeholders to create a better and greener life together.In Changhong, we adhere to the mission of "Technology-empowered Changhong Creates a Better Life" and takeCustomer-Centricity as our guiding principle. For sustainable growth, we consider building core competitiveness asthe foundation, cultivating internal capabilities as a management strategy, and improving external skills as a way forfurther development. With the determination, ambition, and courage to strive for world-class excellence, we havepushed forward reform drastically, forged ahead with agility, constantly boosted enterprise morale, and rejuvenatedwith new vitality.Green development is a crucial facet for enterprise to achieve high-quality growth while practicing social respon-sibility is a necessary path for sustainable development. We are convinced that together with all employees, users,shareholders, and partners, we can set foot on a healthy and sustainable development path. Along this journey, wewill sustain our efforts in the industry and make sci-tech innovations, contributing to social prosperity and progress.In 2023, Sichuan Changhong, as the "golden business card" of the electronic information manufacturing indus-try, incorporated a sense of responsibility into the whole process of business development, actively fulfilled its corpo-rate social responsibilities, and carried forward the enterprise spirit of "diligence, leadership, perseverance andpursuit of excellence". It was committed to better serving society, providing and creating a more scientific,higher-end, and more cutting-edge user experience for the general consumer groups with continuously enhancedindustrial development foundation and resilience, as well as increasingly optimized products and industrial structure.With such efforts, Sichuan Changhong steadily advances towards becoming a world-class enterprise.In our business development, we adhere to the core principles of being technology-led and innovation-driven,constantly honing our capabilities for industrial development. By adjusting our mindset, sticking to the real economy,strengthening mature industries, and maintaining our stronghold in the home appliance industry, we have developeda product matrix with TVs, air conditioners, refrigerators, and washing machines as the core. Oriented by "smart,green, and healthy" products, we have integrated science and technology with products through independent R&D,joint innovative R&D, and other methods. As a result, we have secured a series of significant research outcomes. Forexample, we have launched the world's first "Super Brain" TV equipped with a large-scale artificial intelligence model,introduced the world's first ARTIST Art TV with 20,000-plus partitions and a 24.9 mm ultra-thin body, released therefrigerator under Changhong Meiling's "Wide Narrow Door" series that set the industry's "thinnest" record, and builtSichuan Province's first national cross-industry and cross-domain industrial internet platform. With continuous effortsto make breakthroughs in core technologies, we strive to share the aesthetics of life with consumers. The Companyhas consistently upheld a customer-centric value system, serving global consumers with high-quality products andsolutions.
We have established and improved a corporate governance structure with clear rights and responsibilities andeffectively countervailing forces, ensuring efficiency and compliance in this regard. We have incorporated ESG man-agement into the Company's development strategies and business operation and management, driving a morecomprehensive governance system and further enhancing governance capabilities. We have established adecision-making checklist for Three Major Matters and One Utilization (decision-making for major issues, appoint-ment and removal of important officers, investment decisions for major projects, and utilization of large value funds)while steadily carrying out the special action of "Compliance Management Development Year". We have beencommitted to building a modern corporate governance control system integrating compliance, risk control, and inter-nal control, continuously improving the corporate governance operating mechanism, standardizing operations, andeffectively safeguarding the interests of the Company and all shareholders.In terms of environmental governance, we have made great efforts to accomplish the energy conservation andemission reduction targets set in the 14th Five-Year Plan around the dual carbon goals. Aligning with the Company'soverall strategy, we have formulated clear objectives and long-term plans to address climate change and strictly
implemented relevant national policies on energy conservation and emission reduction. We have been optimizingdesigns and processes, exploring environmental protection system construction and climate risk management, seek-ing a development path harmonious with nature, and reducing the environmental load from the source. This year, theCompany saw a decrease in overall water resources consumption intensity and greenhouse gas (GHG) emissions perRMB 10,000 worth of output, as well as an increase in the proportion of recycled materials compared to last year.In terms of social responsibility, we uphold the original aspiration of "serving the country through industrial devel-opment", take the initiative to fulfill our corporate social responsibilities, and proactively contribute to rural revitaliza-tion and public welfare undertakings. We are committed to building a transparent supply chain and working withsuppliers to create a better life and future. We have built Sichuan's first state-level cross-industry "5G + IndustrialInternet" platform, empowering nearly 100 enterprises in 8 industries. We have actively responded to the Belt andRoad Initiative (BRI), with export revenue exceeding RMB 10 billion in 2023. At the same time, we have increasedbrand exposure overseas in various ways. CHiQ, a brand of Changhong, has been introduced into more than 40 coun-tries and regions in Southeast Asia and Europe. Throughout the year, we have dedicated a significant amount offunds to social welfare projects and have been honored with the title of "The Most Charitable Donation Enterprise" inthe 4th Sichuan Charity Awards.As a responsible corporate citizen, we have been sharing the fruits of our development with customers, employ-ees, and the public on our journey of self-development. We adhere to the user-centered principle, providing high-qual-ity products and services to bring a better life experience to every user. We uphold the value of employee satisfaction,contributing to the diversified development of employees and safeguarding their rights and interests. Our goal is tobuild the Group into a globally respected sci-tech innovation enterprise, making contribution to society through actualactions and creating sustainable value.
Here, we officially release the Sichuan Changhong ESG Report 2023, looking forward to in-depth exchanges withall stakeholders and accepting public supervision. Sichuan Changhong will remain committed to its main businessesand innovation and collaborate with stakeholders to create a better future.Board of Directors Statement
As the highest decision-making body for ESG affairs, the Boardof Directors has set up the ESG Management Committee to assistin relevant work. The committee is responsible for developing ESGstrategies, ensuring alignment with the Company's business objec-tives, and continually improving ESG performance.The Company has set ESG objectives related to its businessoperations. The Board of Directors has reviewed and discussed theestablishment and progress of the objectives, and all ESG workshave achieved phased progress as planned.The report details the Company's achievements in ESG, whichwas reviewed and approved by the Board of Directors on April 24,2024.
About ESG Report1
Sichuan Changhong Electric Co., Ltd.
Chairman Liu Jiang
ZhongkeMeiling Cryo-genics(Stock code:
835892.BJ)
ChanghongMeiling(Stock code:
000521.SZ)
ChanghongHuayiCompressor(Stock code:
000404.SZ)
ChanghongJiahua(Stock code:
03991.HK)
SichuanChanghongMinshengLogistics(Stock code:
836237.NQ)China's 500 MostValuable BrandsThe 35th
The World's 500 MostIn?uential BrandsThe 285th
ESG REPORT 2023
ESG REPORT 2023
About Sichuan Changhong2
About Sichuan ChanghongAbout Sichuan Changhong
Sichuan Changhong Electric Co., Ltd. wasfounded in 1958 and listed on the Shanghai StockExchange in March 1994 (Sichuan Changhong,600839.SH). It has four listed subsidiaries, includingChanghong Meiling Co., Ltd. (000521.SZ), Chang-hong Huayi Compressor Co., Ltd (000404.SZ),Changhong Jiahua Holdings Limited (03991.HK), andZhongke Meiling Cryogenics Co., Ltd. (835892.BJ),and one subsidiary listed on the innovative layer ofNEEQ: Sichuan Changhong Minsheng Logistics Co.,Ltd. (836237.NQ). After decades of development, theGroup has now evolved into a diversi?ed and globalcomprehensive technology enterprise integratingconsumer electronics, core component R&D andmanufacturing, and integrated ICT services. In June2023, Sichuan Changhong ranked 35th in the "2023China's 500 Most Valuable Brands" list (the 20thedition). In December 2023, it was included in the"World's 500 Most In?uential Brands" list by theWorld Brand Lab, ranking 285th.
Corporate Pro?le
Smart TV BusinessSmart White Goods BusinessRefrigerator CompressorICT Integrated Service BusinessSpecial BusinessIntermediate Product BusinessNetwork Communication Terminal Business
ESG REPORT 2023
Development Course
Corporate Culture
About Sichuan Changhong2
The Group adheres to the concept of "Technology Creates a Better Life", car-ries forward the enterprise spirit of "diligence, leadership, perseverance andpursuit of excellence", puts customers ?rst, and builds a team of honest, prag-matic, dedicated and responsible staff who strive for new progress and growwith the Group. It also strengthens its brand power, technology power, industri-al power, product power, service power and market power, and promotes theupgrading of manufacturing industry, transformation of service industry andinternational development, thus developing into a technological innovationenterprise with global in?uence.
1970sEntered the TV industryunder the national strate-gy of "converting militarytechnologies and facilitiesfor civilian use"
Introduced the ?rstautomatic assemblyline from Panasonic,with a daily output of1,000 sets per shift
Led the domestic industrywith an annual output ofmore than 1 million color TVs
Co-founded Changhong
Chaohua (now
Changhong Jiahua)
Acquired Ling-bayi ElectronicsGroup
Listed Zhongke MeilingCryogenics on BeijingStock Exchange
Listed on Shanghai StockExchange
Won the title of "China'sLargest Color TV Base"and "King of Color TV"
Became the largestshareholder of MeilingElectric (now ChanghongMeiling)
Listed Chang-hong Jiahua onHKEX Main BoardAcquired Huayi Compressor(now Changhong HuayiCompressor)Acquired SichuanChanghong BatteryBecame China's ?rstenterprise with TV outputexceeding 10 million sets,with a market share of 35%
Established theChanghong AirConditioner Business Unit
Became the colorTV sales championfor the ?rst time
State-owned Chang-hong MachineryFactory initiated theestablishment ofSichuan Changhong
Trial-produced the ?rstcolor TV
1973
1988
1995
2007
202020081996199719901976
1984
March 19941992
2004
2018
2022
Registered trademark"Changhong"
ESG REPORT 2023
Corporate Honors
National Industrial Design Center (Ministry of Industry and Infor-
mation Technology)National Technological Innovation Demonstration Enterprise(Ministry of Industry and Information Technology)
State-certi?ed Enterprise Technology Center(National Development and Reform Commission, etc.)
Intelligent Manufacturing Pilot Demonstration(Ministry of Industry and Information Technology)Winner of the title of "The Most Charitable Donating Enterprise" at the4th Sichuan Charity Award issued by the People's Government of Sichuan ProvinceThe world's largest supplier of refrigerator compressors. It has
ranked ?rst in the world for 11 consecutive years, and one out of every threerefrigerators worldwide uses a Changhong compressor.China's leading aviation power system supplier. The products areextensively used in China's most advanced aircraft (C919). They enjoyworld-leading technology and a domestic market share of 70%.
China's leading rail transit power system provider. More than30% of China's high-speed railway, metro, and maglev trains are equippedwith Changhong's power system, which is also widely utilized in various typesof locomotives exported to countries along the Belt and Road.
China's ?rst large-scale customized production lines for 5G +industrial Internet.One production line can produce 6 different productssimultaneously, and 1,100 different products can be produced in one day. Afterlarge-scale customized services are realized, the per capita output ef?ciencycan be increased by 65%.Winner of 21 State Scienti?c and Technological ProgressAwards.It has won 21 State Scienti?c and Technological Progress Awards insmart home appliances, digital technology, and special technologies.
Famous enterprise for R&D and manufacturing of intelli-gent household appliances in ChinaIn 2023, it sold about 14.93 million smart TVs, about 7.73 millionair conditioners, about 8.24 million refrigerators, about 1.41 mil-lion washing machines, and about 17.45 million kitchen & bath-room appliances and home appliances.
About Sichuan Changhong2
ESG REPORT 2023
Operating Performance in 2023ESG Management Strategy
The Group has unswervingly been committed to high-quality sustainable development, activelyresponding to the country's 14th Five-Year Plan and diligentlyimplementing the strategic requirements to"peak carbon dioxide emissions and achieve carbon neutrality". It has followed the path towards the com-prehensive green transformation of economic and social development, with the synergized reduction ofpollution and carbon emissions as a lever, and green, low-carbon, and ef?cient utilization of energy as thefocus. The Group has adhered to scienti?c planning, gradual progress, innovation-driven strategies, anddigital empowerment, building low-carbon industrial parks, fueling intelligent and digital transformation,and exploring pathways for green and low-carbon transformation within industrial parks. These effortsaim at consolidating a green future development path for the Company's intelligent manufacturing.ESG management systemThe Company has been improving its sustainable development management system. It has estab-lished an ESG management structure to ensure the implementation of sustainable development effortsat all levels. The Company has also driven the incorporation of ESG management concepts into opera-tion and management, to improve the Company's ESG performance, thereby safeguarding soundbusiness operations and sustainable development. In January 2023, according to the resolution of the50th Meeting of the 11th Board of Directors, it was agreed to establish an ESG Management Committeewith an ESG Management Of?ce. The ESG Management Committee functions as a special working bodyof the Board of Directors and is responsible for the ESG management of the Company.
To further adapt to its evolving management requirements in Environmental (E), Social (S), andGovernance (G) and clarify the deliberation and decision-making procedures of the ESG ManagementCommittee and related units in ESG management, the Company has formulated the Detailed Implemen-tation Rules for ESG Management Committee under the Board of Directors as per laws, regulations, andnormative documents such as the Company Law of the People's Republic of China and the Guidelineson Corporate Governance of Listed Companies, as well as relevant provisions of the Articles of Associa-tion taking into consideration the Company's actual circumstances. The document was deliberated andapproved at the First Meeting of the 12th Board of Directors. It has further elucidated the roles andresponsibilities of the Board of Directors and the subordinated ESG Management Committee in monitor-ing ESG development trends, formulating the Company's ESG strategies and objectives, supervising theCompany's ESG work, and reviewing major ESG-related matters. The document has laid a solid founda-tion for improving the Company's ESG performance and contributing to achieving ESG goals.
Board of DirectorsESG ManagementCommittee
Other specializedcommitteesPlatform departmentsand subsidiariesESG Management
Of?ce
About Sichuan Changhong2
2021
2022
2023
The operating revenue reached RMB 99.632 billion in 2021, with ayear-on-year increase of 5.49%;Net pro?t attributable to shareholders of the listed company reachedRMB 285 million, with a year-on-year increase of 527.35%;The operating revenue reachedRMB 92.482 billion in 2022, with ayear-on-year decrease of
7.18%
;Net pro?t attributable to shareholders of the listed company reachedRMB468 million, with a year-on-year increase of 64.39%;The operating revenue reachedRMB 97.456 billion in 2023, with ayear-on-yearincrease of 5.38%;Net pro?t attributable to shareholders of the listed company reachedRMB688 million, with a year-on-year increase of 46.98%;
ESG REPORT 2023
Identi?cation of Key Topics
The Company has attached great importance to the expectations and demands of all stakeholders,actively engaging in dialogue and cooperation with them. To facilitate effective communication with allparties, the Company has made ongoing efforts to develop diverse communication channels and meth-ods, enhance the quality of information disclosure, and promptly respond to the demands of stakeholders.
Anti-corruptionPolicy responseReturn on investmentInformation disclosure
Win-win cooperationProduct responsibilityIndustry progressProduct responsibility
Public welfare
Employment promotion
SymposiumOn-site interview and investigation
Work reportCall and meetingE-mailOnline interactiveplatformLabor unionDaily interview
Of?cial website
On-site investigationMeetingsIndustry activities
Calls and e-mails
Press conference
With reference to the HKEX ESG guidelines and MSCI-ESG Ratings, benchmarking against excellentpractices in the industry, our Group has identi?ed 33 substantive issues in ESG , including 10 environmen-tal issues, 17 social issues and 6 governance issues. The Company has involved all stakeholders in thequestionnaire survey on substantive issues, and comprehensively analyzed and ranked sustainabledevelopment issues according to internal and external research results and by importance, ?nally forminga matrix of material topics.
Shareholder/investorEmployeeCustomerSupplier
Media
Stakeholder
category
Demands and expectationsCommunication and response
Green products
Response to climate changeWaste managementBiodiversity conservation
Employee careResponsible taxationEmployee safety and health
Business ethicsAnti-corruptionESG managementInformation securitySupplier managementGreen supply chainPublic welfareCommunity investmentResponsible marketing
EnvironmentalSocialGovernance
Topics of highimportanceTopics of moderateimportanceTopics of generalimportance
Importance to the Company's sustainable development
ESG Management Strategy3
Communication with stakeholdersMatrix of material topics
Government orsupervisoryauthority
ComplianceoperationTax PaymentAccording toLawCorporategovernanceRiskmanagementProtection ofemployees' rightsand interestsEmployeeRemunerationand Bene?ts
Employee Health andSafetyEmployee training anddevelopment
Industry associationor partner
Public welfareorganization orcommunityorganization
InvestorexchangesGeneral meetingof shareholdersOn-siteinvestigationEmployeesymposium
Employee satis-faction surveyOccupational, healthand safety trainingProduct qualityassurance
Customer privacyprotection
Social mediaplatformUser returnvisitsCustomer rightsand interestsprotection
Product serviceguarantee
Onlinecustomerservice hotline
Customer satis-faction survey
Importance to stakeholders
TransparentprocurementHonestcooperation
Conference/exhibition
Real-time commu-nication softwareTechnicalexchangesScienti?c andtechnologicaldevelopmentPollutiondischarge
Protection of employ-ees' rights and interests
Social mediaplatformOn-siteinterviewProductresponsibility
Response toclimate changeSocialparticipation
Regularreturn visits
School-enterpriseemploymentcooperationDedication topublic welfare
Green packaging/packaging reductionEnvironmental compli-ance management
Waste gas managementand emission reductionSewage managementand discharge reductionWater resources manage-ment and conservationEnergy managementand conservation
Scienti?c research andinnovation/producttechnology improvementIntellectual PropertyProtectionEmployee training andpromotionEmployee compensationand bene?tsManagement of childlabor and forced laborDiversity and equalopportunities
Product safety andservice qualityCustomer experienceand satisfaction
Communicationwith stakeholders
Law-abiding andcompliant operationRisk managementand internal control
ESG REPORT 2023
Key Performance in 2023
ESG Management Strategy3
The Audit Department completed2,477 internal audit projects, improved 192 internal controlregulations, and raised202 management suggestions
The Company completed26 energy-saving process transformation projects and created an annualeconomic bene?t of RMB
2.4455 million
Changhong CHiQ became the of?cial partner of FIS Freestyle Ski World CupIt took multiple measures in consumption assistance, with a total purchase and sale amount of agricul-tural and sideline products in assistance areas of RMB
1.21 million, and donated an education assis-
tance fund of RMB1 million to assistance areasIt invested RMB800,000 in the "Colorful Changhong" study tour campaign and organized 192teachers and students from areas lifted out of poverty to engage in the campaignSichuan Hongxin Software donated Changhong Smart Campus Video Teaching System worthRMB504,000 to Pingchang County in Bazhong
The Group paid more than2 billion in taxes and fees to the tax authorities
In active response to BRI, Guangdong Changhong Electronics' export revenue reached RMB
7.412
billion. Zhongshan Changhong Electric's export revenue came to RMB 3.46 billion. The overseas tradevolume of international brand business exceeded RMB2 billion
The completion rate of comprehensive energy consumption for unit TV product reached 104.19%, andthat for unit air conditioning product was
106.08%, both achieving annual energy conservation targets
The SGS Hong Kong Limited conducted a ?eld evaluation of the Company's ESG managementperformance in2022, and Changhong (Hong Kong) Trading Limited obtained the ?rst green loan ofover
million yuan from the Bank of East Asia (Hong Kong) based on the evaluation results
It has held 3 general meetings, 19 board meetings and 14 supervisory board meetingsIts board of directors has9 directors, including3 independent directorsIt has disclosed104 announcements and 46 annexes, totaling 150 documentsIt has held3 performance presentation meetings and answered835 questionsfrom investors through "SSE E-interactive"
The Group has not engaged in any acts of unfair competition or monopoly, and there are norelevant legal proceedings
The Group has not violated environmental regulations, has not discharged excessive pollutants, andhas not been punished by environmental regulatory authoritiesSichuan Changhong Molding Technology was rated as a provincial "Green Factory", and SichuanChanghong Jijia Fine has won the title of Environmental Protection Integrity Enterprise in SichuanProvince for
consecutive years
The Company has ?led and investigated cases against8 persons, punished 8 persons, and transferred
persons to Mianyang Municipal Commission for Discipline Inspection and Supervisory CommitteeIt has carried out the special action of "Year of Compliance Management Development" and established a"1+N" compliance risk control management system combining basic regulations with speci?c businessmanagement regulationsIt has published4 investor activity records through the column of "Listedcompany release"It is the ?rst enterprise in Mianyang to pass ISO14001 environmental managementsystem certi?cation
The Group has7 regional service centers, 31 branches and more than 10,000 specialservice providers across the country to provide7/24 servicesWith zero product quality recall and a customer satisfaction of
99.2%, it was rated
as "Advanced Unit of Quality Management Group Activities in Electronic InformationIndustry" by China Quality Management Association for Electronics IndustryIt has built Sichuan's ?rst national cross-industry "5G + Industrial Internet" platform,serving nearly100 enterprises in 8
Intensity of water resources consumption (tons/RMB 10,000) decreased by
12.08%
compared with the previous yearEnergy consumption intensity (tce/RMB 1 million) decreased by
9.49% compared with
the previous yearGHG emissions per RMB10,000 of output value (kgCO
e/RMB 10,000) decreased by
1.30% compared with the previous year
industries
Governance
Environ-mental
Social
ChanghongRises as aWell-managedBusinessThe Group adheres to the concept of "Technology Creates aBetter Life", carries forward the enterprise spirit of "diligence,leadership, perseverance and pursuit of excellence", putscustomers ?rst, and builds a team of honest, pragmatic, dedi-cated and responsible staff who strive for new progress andgrow with the Group. It also strengthens its brand power,technology power, industrial power, product power, servicepower and market power, and promotes the upgrading ofmanufacturing industry, transformation of service industry andinternational development, thus developing into a technologicalinnovation enterprise with global in?uence.
Supply ChainManagementCenter
Of?ce of Board ofDirectorsGeneral Manage-ment Department
Business Planning
DepartmentFinancial Manage-ment Department
Energy and
Power CenterParty Work Group,Discipline Inspection
and SupervisionDepartment, etc.
Technical
ManagementDepartmentSafety and Environ-mental Protection
Department
Financial
Cloud CenterAudit Department/Supervision Of?ce
The Company has established a standardized and orderly governance system in accordance with Company Law ofthe People's Republic of China, Securities Law of the People's Republic of China, Code of Corporate Governance forListed Companies, Rules Governing the Listing of Stocks on Shanghai Stock Exchange and relevant laws and regulations.The Company has set up governance institutions such as the General Meeting of Shareholders, the Board of Directorsand the Board of Supervisors, and established and improved the corporate governance structure with clear rights andresponsibilities and effective checks and balances, thus ensuring ef?cient and compliant corporate governance. TheCompany has formulated relevant institutional documents such as Articles of Association, Rules of Procedure for theGeneral Meeting of Shareholders, Rules of Procedure for the Board of Directors, and Working System for Secretary of theBoard of Directors. In 2023, it formulated and issued Special Meeting System for Independent Directors and DetailedImplementation Rules for ESG Management Committee to continuously improve the corporate governance and operationsystem, standardize corporate operation, and effectively safeguard the interests of the Company and all shareholders.
ESG REPORT 2023
ESG REPORT 2023
Sustainable Governance SystemBuild
Changhong Rises as a Well-managed Business3
Governance Structure1
Sichuan ChangHong mold and plastic tech Co., Ltd.
Sichuan Changhong Real Estate Co.,Ltd.Sichuan Changhong Battery Co., Ltd.Sichuan Changhong NeoNet Technologies Co., Ltd.
Sichuan Changhong intelligent health technologies Co.,Ltd
Consumer BG
Enterprise BG
Resource BG
SpecialBusiness
DigitalIndustry BG
PlatformCompanies
Zhongshan ChanghongElectric Co., Ltd.
SichuanChanghong
Board ofSupervisors
GeneralMeeting ofShareholdersOperationManagement
Board ofDirectors
Sichuan Changhong Minsheng Logistics Co., Ltd.Hefei Changhong Industry Co., Ltd.Sichuan Changhong More Fun Network Technology Co., Ltd.Changhong Europe Electric s. r. o.Changhong Meiling Co., Ltd.
Sichuan Changhong AirConditioner Co., Ltd.
Changhong Huayi Compressor Co., Ltd.Sichuan Hongshang Construction Engineering Co., Ltd.Lingbayi Electronics GroupSichuan Hongxin Software Co., Ltd.
Changhong (Hong Kong) Trading LimitedSichuan Changhong Innovation Investment Co., Ltd.Chengdu Changhong Electronic Technology Co., Ltd.Changhong North America R&D Center Co., Ltd.
Sichuan Changhong Precision Electronics Tech Co., Ltd.Sichuan Changhong Component Technology Co., Ltd.SICHUAN CHANGHONG JIJIA PRECISION INDUSTRY CO., LTDSichuan Changhong Package Printing Co., Ltd.
Guangdong Changhong Electronics Co., Ltd.Sichuan Zhiyijia Network Technology Co., Ltd.Changhong Shundatong Technology Development Co., Ltd.Sichuan Mianyang Honghuan Technology Co., Ltd.Changhong Electric Indonesia, PTGuangyuan Changhong Electronic Technology Co., Ltd.Sichuan Kuaiyidian Electrical Service Chain Co.,Ltd.Sichuan Homwee Technology Co., Ltd.Changhong International Holding (HK) Limited
AuditCommittee
NominationCommittee
Remuneration andAppraisal Committee
ESG ManagementCommitteeStrategyCommitteeChanghong Jiahua Holdings Limited
Integrated ICTServices
ESG REPORT 2023
General Meeting of Shareholders
The General Meeting of Shareholders is the authority of the Company. The Company holds regulargeneral meetings of shareholders to make decisions on major issues of the Company, so as to ensureshareholders' right to participation, right to information andright to earnings in the decision-makingprocess. In strict accordance with the provisions and requirements of the Articles of Association and theRules of Procedure for the General Meeting of Shareholders, the Company has standardized the conven-ing and discussion procedures of general meetings of shareholders. It treats all shareholders equally,requires related shareholders to abstain from voting on mattersinvolving related-party transactions, anddiscloses the announcements of resolutions of general meetings of shareholders in a timely manner afterthe meetings.During the reporting period, the Company held 3 general meetings of shareholders in total, including1 annual general meeting of shareholders and 2 extraordinary general meetings of shareholders. Theconvening and voting procedures of all the general meetings ofshareholders of the Company were legaland valid, and the on-site meetings were witnessed by lawyers on site. In addition, the Company providedonline voting method to shareholders to protect the legitimate rights and interests of minority investors.
Board of Directors
The Board of Directors is responsible to shareholders, implements the resolutions of the GeneralMeeting of Shareholders, and exercises the decision-making power on major matters of the Company.There is the Strategy Committee, the Audit Committee, the Nomination Committee, the Remunerationand Appraisal Committee, and the ESG Management Committee. It enhances the democracy, scienti?cityand reliability of major decisions.
The Board of Directors of the Company consists of 9 directors, 1 chairman and 1 vice chairman. Direc-tors are elected or replaced by the General Meeting of Shareholders for a term of of?ce of 3 years, andmay be removed from of?ce before the expiration of their term. As the term of of?ce of the 11th Board ofDirectors of the Company expired, in accordance with the Company Law of the People's Republic of Chinaand the Articles of Association of the Company and other relevant regulations, the Proposal on Election ofDirectors of the 12th Board of Directors of the Company was reviewed and approved at the 2nd Extraordi-nary General Meeting of Shareholders of the Company in 2023, agreeing to elect 6 persons including Mr.Liu Jiang as non-independent directors and 3 persons including Mr. Qu Qing as independent directors ofthe Company.
The independent directors of the Company are all senior professionals with expertise in accounting,?nance and business management. They have no direct or indirect interest relationship with the Companyand its major shareholders and actual controllers or other conditions that may affect their independentand objective judgment.
During the reporting period, the Board of Directors held 19 meetings and reviewed 69 proposals. Allmeetings were convened in strict accordance with relevant lawsand regulations, and all resolutions werelegal and valid. Based on the principle of conscientiousness, the special committees under the Board ofDirectors performed their duties in strict accordance with laws and regulations. The Audit Committeeheld 10 meetings, the Nomination Committee held 3 meetings, the Remuneration and Appraisal Commit-tee held 3 meetings, and the ESG Management Committee held 1 meeting.
Key IndicatorsUnit
2022
2023
NameGenderType of DirectorAge
Education Background
Key IndicatorsUnit
PersonPersonPersonPersonTimeItemt
2021
2022
2023
Changhong Rises as a Well-managed Business
Proposals adoptedthrough deliberation
ItemTimeTimeExtraordinary generalmeetingsTotal number ofmeetings
2021
Yan JinjiangIndependent directorDoctoral degreeDoctoral degreeDoctoral degreeDoctoral degreeBachelor's degreeBachelor's degreeMaster's degree
Independent director
Master's degreeBachelor's degree
Independent directorDirectorDirectorDirectorDirectorVice chairman, general manager
Chairman
Wang XinQu QingHe LongHou ZongtaiDuan EnchuanYang JinHeng GuoyuLiu Jiang
MaleMaleMaleMaleMaleMaleMaleMaleMale
Average attendanceBoard resolutionsadoptedBoard meetingsIndependent directors
Non-independentdirectorsIncluding: femaledirectorsBoard members
Diversity of the Board of Directors
%
The Group has been dedicated to establishing a modern corporate governance management andcontrol system that integrates compliance, risk control, and internal control. It has continuously improvedand optimized the internal control mechanism, fully incorporating compliance management and risk man-agement requirements into the Company's rules and regulations, working standards, and businessprocesses in line with the demands for institutionalization, process standardization, and process digitiza-tion. The Group has urged all departments to conduct business activities across all sectors in compliancewith laws and regulations, thereby preventing and mitigating operational risks.
In 2023, the Company organized a special action of "Compliance Management Development Year",further strengthened compliance work around the organizational system, institutional system, operationmechanism and guarantee mechanism for compliance, accelerated the improvement of law-abiding andcompliant operation management level, and enhanced the awareness and ability in risk prevention andcontrol.
The Company has established the management body, de?ned management responsibili-ties, and appointed management personnel based on operational objectives, risk levels, andresource allocation. It has promoted the integration of business operations and regulatory com-pliance and ensured the proper implementation of risk control, compliance, and internal controlmanagement at the organizational, operational, and individual levels.
ESG REPORT 2023
ESG REPORT 2023
Compliance Risk ControlStrengthen
Board ofDirectors
The Company has implemented a performance-based annual salary system for senior executives. Ithas advocated and encouraged its senior executives to receive remuneration incentives from perfor-mance increments through reasonable ways such as excellent annual performance and operating pro?t.Executive Remuneration2
Organization System
Board of Supervisors
The Board of Supervisors, as the dedicated supervisory body of the Company, holds responsibilityfor the General Meeting of Shareholders and oversees the actions of the Board of Directors and man-agement. The Board of Supervisors consists of ?ve members, including two employee representatives,elected democratically and recalled by the Congress of Workers and Staff, and three shareholderrepresentatives, elected democratically and recalled by the General Meeting of Shareholders. The Boardof Supervisors appoints a Chairman, who shall be elected by more than half of all supervisors.
During the reporting period, the Board of Supervisors held 14 meetings in total. As a supervisorybody, the Board of Supervisors upholds a spirit of accountability to all shareholders, diligently ful?llingits duties by engaging in thorough discussions on each agenda item to ensure the legality and compli-ance of decisions.
Key IndicatorsUnit
PersonPersonTimeItem
2021
2022
December 31, 2023
1 (3)
Changhong Rises as a Well-managed Business
Full-time Compliance
Personnel
ComplianceManagementDepartment
ChiefCompliance
Of?cer
Compliance
Manager
Business and
FunctionalDepartments
Manager
ProposalsdeliberatedAverageattendance
Supervisory board
meetingsIncluding: female
supervisorsSupervisory board
members
%
The Company attaches great importance to management of such aspects as risk prevention andcontrol, continuously empowers all business units through three lines of defense, and constantly strength-ens the implementation of related work such as compliance risk identi?cation, assessment, preventionand control. The business and functional departments are responsible for the ?rst line of defense for themain responsibility of compliance risk control management; the Compliance Management Departmenttakes the lead to be responsible for the second line of defense of compliance risk control management atthis level; the Board of Supervisors, Discipline Inspection and Supervision Department, Audit Departmentand other departments of the Company are responsible for the third line of defense of supervising andevaluating the implementation of risk control and compliance requirements, investigating violations, andcarrying out responsibility investigation according to regulations.
The Company has formed a "1+N" compliance risk control management system combining basicsystems with speci?c business management systems. The Company formulated the basic compliancemanagement system at the corresponding level, and took it as a guide to build relevant hierarchical andclassi?ed management systems according to the scope of application and the levels of effectiveness.Besides, according to changes in laws, regulations and regulatory policies, the Company continuouslypromoted the revision and improvement of the institutional system based on the development and man-agement requirements of the Company's business.In 2023, the Company organized the revision of compliance risk control and legal managementsystems such as Basic System of Compliance Risk Control Management, Measures for the Administrationof Compliance Review, Legal Affairs Management System, and Contract Management Measures tofurther clarify the compliance risk control management mechanisms at all levels and standardize theoperation mechanism, assessment and evaluation of compliance risk control management. The Compa-ny comprehensively sorts out the relevant systems of internal control, risk and compliance managementfrom time to time, continuously improves the construction of systems and strengthens the implementa-tion of the systems. This year, all functional departments of the Company revised and improved 58systems and newly formulated and issued 22 systems.The Company has established various mechanismsfor such aspects as risk management, compliancereview, violation reporting and problem recti?cation,implemented the closed-loop management of compli-ance risk control, ensured that all systems of the Com-pany are implemented and can contribute to thebusiness development of the Company.
The Company has carried out four special cam-paigns throughout the year: "investigation of tradebusiness", "special recti?cation of procurementtenders", "special clean-up of investment and ?nancingguarantee", and "special inspection of assets". It hasorganized all business units to conduct special inspec-tion on key businesses, attached great importance tothe problems found, conducted special investigations,established a problem-solving mechanism and formedclosed-loop management.
All levels of units of the Company are staffed byexcellent chief compliance of?cers, and the chiefcompliance of?cers of all subsidiaries are required tosign a compliance commitment letter on behalf of thetop management of the Company to promise that theywill take compliance as their own responsibility andserve as the gatekeeper of the Company's compliance.
The Company is committed to carrying out theconstruction of compliance culture, cultivating thecompliance awareness and values of all employees bymeans of compliance training, informatization construc-tion and compliance commitment, creating a goodcompliance culture and realizing enterprise governanceaccording to law.
During the reporting period, the Company hasmaintained effective internal control in all materialaspects in accordance with the requirements of theenterprise internal control standard system andrelevant regulations. No major de?ciencies in internalcontrol were found, and no major violations of laws andregulations occurred.ESG REPORT 2023
ESG REPORT 2023
The ?rst line
of defense
The second line
of defense
The third line
of defense
Assume the main responsi-
bility of compliance risk
control management,ensure compliance riskcontrol management inbusiness areas, and effec-tively prevent and timelyhandle compliance risks
Improve the compliance
management system,formulate the Company'sbasic compliance manage-ment system and measures
for the administration ofcompliance review, strength-en compliance review, andurge compliance risk man-
agement in key areas
Supervise and evaluatethe implementation of risk
control and compliance
requirements within the
scope of functions andpowers, investigate viola-
tions, and carry outresponsibility investigation
according to regulations
All business and
functionaldepartments
ComplianceManagementDepartment
Board of Supervisors,Discipline Inspection andSupervision Department,
and Audit Department
Investiga-
tion oftradebusiness
Specialrecti?cationof procure-menttenders
Specialinspectionof assetsSpecialclean-up ofinvestmentand ?nancing
guarantee
Four special campaigns
Problem recti?cationand accountabilityEvaluation and report
Risk management
Compliance reviewWhistleblowing
Institutional System2
Operating Mechanism
Changhong Rises as a Well-managed Business
The Audit Department of the Group closely followed the Company's "14th Five-Year Plan", annualoperating policies and task objectives, focused on audit duties and strengthened supervision efficiency.With the goal of improving internal governance, the Company supervises and evaluates professionalethics, business procedures, internal control, enterprise risks, compliance management, etc. It has thor-oughly investigated major risks and hidden dangers, revealed violations of discipline and law, enhancedthe deterrence against corruption and moral decline, effectively safeguarded the economic interests ofthe Company, and provided a strong guarantee for the sustainable development of the Company.
The Company formulated systems such as Several Provisions on Integrity of Leaders at All Levels,Measures for the Implementation of the Responsibility Investigation, Guidelines for the ManagementSystem of Integrity Risk Prevention, and Measures for the Administration of Complaint Reporting to continu-ously improve the construction of the integrity risk prevention and control system. In addition, it implement-ed integrity risk prevention and control management over its subsidiaries, forming a three-dimensional prevention and control system with posts as "points", processes as "lines" and systems as"surfaces" to standardize the clean behavior of leaders at all levels of the Company, safeguard theinterests of the Company and its contributors, and promote the sound development of the Company.The Company abides by high standards of business ethics and integrity, conducts various businessactivities on the premise of strictly complying with all applicable laws and regulations, and prohibits anyform of commercial bribery and corruption. The Company has established a "general supervision"management system, continuously advanced the work of "tightening discipline, improving conduct andadvocating anti-corruption", focused on accurate judgment and thorough investigation of clues involvingsuch problems as tunneling, using one's position for personal gain and conducting "extracorporealcirculation", established a strict anti-corruption momentum, improved the scientific, standardized andsystematic level of corruption prevention, made integrated efforts to ensure that officials do not have theaudacity, opportunity, or desire to become corrupt, and resolutely safeguarded the rights and interests ofthe Company and shareholders.
ESG REPORT 2023
ESG REPORT 2023
Internal AuditConductClean and Honest AdministrationEnsure
In 2023, the internal audit department of the Company promoted the constructionof the information-based supervision system
The intelligent risk early warning system is used to timely monitor 21,658,000pieces of procurement and sales business data
The Group has set up special channels for internal and external supervision and whistleblowing.Once the report is found to be true, the Company will immediately take measures to seriously deal withthe personnel or departments involved and publicize the results.
Informants' e-mail(chjw@changhong.com)
Informants' hotline telephone
(0816-2418450)Whistleblowingchannels set up bydiscipline inspec-tion and supervi-sion departments
Informants' hotline telephone(0816-2417561)
Whistleblowingchannels set upby the procure-ment supervisionunit
Informants' e-mail(cgjc@changhong.com)
In 2023, the Company filed and investigated cases against 8 persons, punished 8 persons,and transferred 7 persons to Mianyang Municipal Commission for Discipline Inspection and SupervisoryCommittee.
Anti-corruption Efforts1
Changhong Rises as a Well-managed Business
Promote subsidiaries to improve 192 internal control regulations, provide 202 auditsuggestions, and strictly supervise recti?cation of problems found in audits
Launch 144 high-quality and ef?cient management consultation, regulation publicityand implementation, compliance internal control training activities based on auditresults
Complete 2,477 audit projects on time and achieve full coverage of internal auditHandle 495,000 over-threshold risk matters
The Company deeply carried out the special warning education activity of "taking cases as a mirrorand promoting reform based on cases", educated people around by what happened in their life, andrequired all employees to "stay true to who they are, show good images and take responsibilities".Through the construction of "Changhong Family Tradition Hall", the Company has carried out a series ofactivities for young cadres to promise, advocate and maintain integrity, organized activities of incorrupt-ible culture in teams and families, and built an environment of clean employment within the Company. Ithas also carried out the anti-corruption warning education activity of the "First Lesson at the Beginningof the Year" for all members of the leading group by means of "watching warning education films, sharingpoints of view and pointing out problems, promising integrity, writing down feelings and experience, andgiving lectures on anti-corruption".
The Group strictly abides by Anti-monopoly Law of the People's Republic of China, Anti UnfairCompetition Law of the People's Republic of China and other laws and regulations. To maintain faircompetition, the Company practices the principle of equal legal status, equal opportunities, equaltreatment and fair market behavior in terms of personnel selection and employment, supplier accessand customer development, actively promotes the construction of a level playing ?eld, facilitates thehealthy development of the market economy, protects consumers' rights and interests, and safe-guards the rights and interests of employees, customers and partners.
The Group has formulated institutional norms such as Guidelines for the Competition and Selec-tion of Cadres, Guidelines for the Inspection of Cadres, Measures for the Administration of Recruit-ment, and Detailed Rules for the Standardization of Employment Information Disclosure to promotethe standardization, marketization and specialization of the Company's employment management,and create an open and fair employment environment and atmosphere that allow both entry anddeparture and encourage selection based on competition. The Group makes public the sourcinginformation of procurement and openly selects suppliers, so as to promote fair competition moreeffectively, consolidate the concept of transparent procurement, and enhance information transpar-ency and fair competition.
In 2023, the Company did not have any unfair competition behavior or monopolistic behavior, andthere was no relevant legal litigation.
ESG REPORT 2023
ESG REPORT 2023
Fair Competition
Encourage
Assignedsimultaneously
InspectedsimultaneouslyImplementedsimultaneously
Evaluatedsimultaneously
Integritybuilding &productionand operationtasks
Integrity Promotion2
The Company has implemented a leadership system of "cross-appointment" and conscientiouslyful?lled the management requirement of "dual responsibility per position". The leading group is respon-sible not only for operation and management but also for integrity-building efforts, which should beassigned, implemented, inspected, and evaluated in conjunction with production and operation tasks,to create a clean and positive environment within the Company.
Clean and Honest Administration3
Changhong Rises as a Well-managed Business
Changhong Meiling Sma Household Appliance
TV | refrigerator | air conditioner | washing machine
In strict accordance with Management System for Information Disclosure Affairs and other relevantregulations, the Company designated channels such as the website of Shanghai Stock Exchange (SSE),China Securities Journal and Shanghai Securities News to disclose all information of the Company thatmay have a substantial impact on the decisions of shareholdersand other stakeholders in a truthful,timely and complete manner, ensure that all shareholders and other stakeholders can equally obtain theCompany's information, and safeguard the fair right of information of all shareholders and potentialinvestors. According to the data from "SSE Service", the Company disclosed 104 announcements and 46annexes in 2023, totaling 150 documents.
The Company places importance on maintaining investor relations. It has formulated systems suchas Management Measures for Investor Relations, Internal Reporting System for Major Information, Regis-tration Management System for Insiders, Related-Party Transaction Management System and InvestorInteraction Working System to perform information disclosure duties in compliance and help investorsmake objective and correct investment judgments.
The communication channels between the Company and its investors have always been keptunblocked, so as to actively promote the benign development of the relationship between the two sidesand effectively protect the rights and interests of investors, especially the rights of information andparticipation of small and medium-sized investors. The Company held three performance presentationmeetings through the SSE Roadshow Center, answered 835 questions from investors through "SSEE-interactive" and published four investor activity records through the column of "Listed companyrelease". The Company has also launched an investor hotline and answered 438 calls in total, trying toensure rich and convenient communication channels for investors. It enables investors to have a deeperunderstanding of the Company's value, development strategy and business philosophy and make betterinvestment decisions.
The General Meeting of Shareholders is the organ of the Company which holds the highest authorityin the Company. The Company holds regular general meetings of shareholders to make decisions onmajor issues of the Company, so as to ensure shareholders' right to participation, right to information andright to earnings in the decision-making process. In strict accordance with the provisions and require-ments of the Articles of Association and the Rules of Procedure for the General Meeting of Shareholders,the Company has standardized the convening and discussion procedures of general meetings of share-holders. It treats all shareholders equally, requires related shareholders to abstain from voting on mattersinvolving related-party transactions, and discloses the announcements of resolutions of general meet-ings of shareholders in a timely manner after the meetings.During the reporting period, the Company held 3 general meetings of shareholders in total, including1 annual general meeting of shareholders and 2 extraordinary general meetings of shareholders. Theconvening and voting procedures of all the general meetings of shareholders of the Company were legaland valid, and all the meetings were witnessed by lawyers on site. In addition, the Company providedonline voting method to shareholders to protect the legitimate rights and interests of minority investors.
The Company has no bad credit record in bank credit, no outstanding bonds in the bond market in2023, and no default in the bond market.ESG REPORT 2023
ESG REPORT 2023
Information DisclosureStandardize
StakeholdersBene?t
Held 3 performance presenta-tion meetings through the SSERoadshow Center
Answered 835 questionsfrom investors through "SSEE-interactive"Launched an investor hotlineand answered 438 callsPublished 4 investor activityrecords through the column of"Listed company release"
Ensuring richcommunication
channels for
investors
Amount of cash dividends per 10
shares (including tax, RMB)
Dividend amount (including tax, RMB 10,000)s
ares
| (i |
nc
u
| di |
ng
ax,
| R | MB) | Dividend | ||
| (including |
,
| RMB |
,
| 000 | ) | |
18464.9769
5539.493110155.73734616.24424616.24429232.4884
18464.9769
0.40
0.12
0.22
0.100.10
0.20
0.40
Investor Relations Management1
The Company Distributes About RMB 711 Million in
Cash Dividends (2016–2023)
Creditors' Equity
Key IndicatorsUnitPcs
2021
2022
2023
Changhong Rises as a Well-managed Business
Disclosed announcementsand annexes
ChanghongBuilds aGreen Home
Around China's dual carbon goals, we have made greatefforts to accomplish the energy conservation and emissionreduction targets set in the 14th Five-Year Plan. Aligning withthe Company's overall strategy, we have formulated clearobjectives and long-term plans to address climate change,and strictly implemented relevant national policies onenergy conservation and emission reduction. We have beenoptimizing designs and processes, exploring environmentalprotection system construction and climate risk manage-ment, seeking a development path harmonious with nature,and reducing the environmental load from the source. In2023, the Company saw a signi?cant decrease in the overallintensity of water resources consumption, and an increasein the proportion of recycled materials compared to theprevious year.
Notes: The statistical scope includes the major manufacturing units such as Sichuan Changhong, Guangdong Chang-hong Electronics, Changhong Air Conditioner, Sichuan Changhong Package Printing, Sichuan Changhong NeoNet Tech-nologies, Sichuan Changhong Molding Technology, Sichuan Changhong Component Technology, Sichuan ChanghongPrecision Electronics Tech, Lingbayi Electronics Group, Sichuan Changhong Jijia Fine, Sichuan Changhong Battery,Zhongshan Changhong Electric, Changhong Meiling (local level), and Changhong Huayi Compressor (consolidatedcaliber). The relevant data of the listed subsidiaries of the Company—Changhong Meiling, Changhong Huayi Compres-sor and Changhong Jiahua are detailed in their ESG reports 2023.
ESG REPORT 2023
ESG REPORT 2023
Environmental Protection SystemImproveRevenue Increase and Expenditure ReductionSeek
Changhong Creates a Green Future
Use of water resources
Management of water resource use
Year20222023% Change (YOY)
Total Water Used (t)3,807,741.003,818,417.11
0.28
0.80
0.70
-12.08
Sichuan Changhong has established an envi-ron-mental management system since 1999, andsuccessfully passed the third-party certi?cationreview in 2002. It is the ?rst enterprise in Mianyangto pass the environmental management systemcerti?cation. The Company has passed ISO14001environmental management system certi?cation.Through systematic development, the environ-men-tal management of the Company is more scien-ti?c, standardized and procedural, thus improvingthe environmental management level and environ-men-tal performance. The Company strictly abidesby environmental protection laws and regulationssuch as the Environmental Protection Law of thePeople's Republic of China, the Law of the People'sRepublic of China on Promotion of Cleaner Produc-tion, the Environmental Impact Assessment Law ofthe People's Republic of China, the Law of thePeople's Republic of China on the Prevention andControl of Water Pollution and the Law of thePeople's Republic of China on Prevention and Con-trol of Atmospheric Pollution.
The Company has formulated the Proceduresfor Acquisition and Identi?cation of Laws, Regu-la-tions and Other Requirements (QG/JU16.016),estab-lished a management system for identi?ca-tion, acquisition, updating and application of envi-ron-mental regulations and standards, identi?edand evaluated environment-related risks and oppor-tuni-ties, so as to take scienti?c and effective mea-sures. According to the Self-monitoring TechnologyGuide-lines for Pollution Sources—General Rule andrelevant requirements of pollutant discharge permit,the Company has formulated an environmentalmonitoring plan based on the surrounding envi-ron-ment, actual situation of pollutant discharge
and supervision. In 2023, the monitoring resultsshowed that the pollutants from the Group'spollutant discharge units all met the dischargestandards of relevant laws and regulations. Nopenalties related to environmental protectionhave been imposed on the units of the Group.
For the preparation for and response toenvi-ronmental emergencies, the Company hasformu-lated the Response Plan for EnvironmentalEmer-gencies to effectively prevent and addressenvi-ronmental emergencies and reduce its prop-erty losses. The Company organized the 2023"June 5 World Environment Day" publicity cam-paign, and enhanced the awareness of environ-mental protection among all employees by carry-ing out activities such as cultivating ecologicalethics, promoting ecological culture, encouragingthem to offer suggestions based on their ownposts and conducting contests on environmentalprotection knowledge.
The Group has required all pollutant dischargeunits to sign the Responsibility Statement for WorkSafety and Environmental Objectives, whichde?nes the standards, objectives and assessmentrequirements of environmental management, andhelps enhance the awareness of personnel at alllevels to ful?ll their responsibilities. The Groupcarries out environmental protection inspection onrelevant units through daily inspection, specialsupervision and third-party certi?cation review,praises the units and individuals with excellentperformance in environmental protection work,strictly recti?es potential environmental hazards,and implements environmental protection respon-si-bilities through multi-level supervision.
The Group has strictly abided by the Water Law of the People's Republic of China and other lawsand regulations, adhered to the production philosophy of saving water and recycling waterresources, actively facilitated the recycling of wastewater, continuously reduced new waterconsumption, and promoted the use of scienti?c water-saving equipment. In 2023, the intensityof water resources consumption at major manufacturing units within the statistical scope wasreduced by 12.08%.
Water Conservation1
The Group plants drought-tolerant vegetation in the park to reduce irrigation and save water.The Group installs a reminder device at the over?ow water level of the ?re pool and roof tank toef?ciently utilize natural precipitation, and adopts energy-saving air atomization humidi?cationinstead of traditional steam humidi?cation in the environmental humidi?cation system to reducewater resource consumption.
The Group uses high-ef?ciency and energy-saving products for cooling water equipment, suchas the variable frequency speed control pump, and uses circulating water for equipment coolingsystem to improve the utilization rate of water.
The Group adopts high-ef?ciency water-saving equipment, strengthens water metering, adoptsmulti-level metering for the water supply system, and uses automatic ?ushing water-savingproducts for sanitary ware. All water consumption equipment meets the requirements ofWater-saving Domestic Water Devices (CJ164-2002).
Intensity of Water Consumption
(t/RMB 10,000)
ESG REPORT 2023
In strict accordance with national and industry standards such as Administrative Measures onRestricted Use of Hazardous Substances in Electrical and Electronic Products, and Requirements of Con-centration Limits for Certain Restricted Substances in Electrical and Electronic Products (GB/T26572), theGroup strictly complies with requirements of Restriction of Hazardous Substances in Electrical and Elec-tronic Equipment (RoHS) on its product material list to increase the proportion of recyclable materialsused in products. In 2023, the proportion of recyclable materials increased by 11.32% compared with theprevious year. The Group is making every effort to reduce the adverse impact of electrical and electronicproducts on the environment. The Group scienti?cally manages product materials through R3 and MESsystems. It has established material waste control mechanisms to track inventory status in real timethrough intelligent shelves, ensure systematic and reasonable use of materials, and avoid materialover-stocking and shortages. The Company actively promotes the electronic of?ce, reducing the use ofpaper documents to save natural resources and ease environmental burden.
The Group complies with relevant laws and regulations such as Law of the People's Republic of Chinaon Energy Conservation, Electric Power Law of the People's Republic of China, and Circular EconomyPromotion Law of the People's Republic of China, and it has formulated Energy Management Measures,and Energy Conservation Management and Assessment Methods (Trial). It conscientiously implementsenergy management policies, uses green and clean energy, equips itself with energy-saving productionequipment, improves energy utilization ef?ciency and economic bene?ts, protects and improves the envi-ronment, and promotes sustainable development of production and operation.
The Company has set up an energy conservation and emission reduction promotion team to carry outrelevant work. The Company's Energy and Power Operation Center organized all production units of theCompany to carry out strict energy checks from the original records of energy management to all the useof water, electricity, gas and steam. In the 105 on-site energy checks conducted in 2023, the Companyfound 18 problems of spilling, dripping and leakage and 34 hidden dangers in energy consumption, andgave guidance to complete the recti?cation of the problems. All units were organized to carry out processenergy-saving projects. In 2023, a total of 26 process energy-saving transformation projects were com-pleted, generating an annual economic bene?t of RMB 2,445,500.
Notes: The statistical scope includes the major manufacturing units such as Sichuan Changhong, Guang-dong Changhong Electronics, Changhong Air Conditioner, Sichuan Changhong Package Printing, SichuanChanghong NeoNet Technologies, Sichuan Changhong Molding Technology, Sichuan Changhong Com-ponent Technology, Sichuan Changhong Precision Electronics Tech, Lingbayi Electronics Group, SichuanChanghong Jijia Fine, Sichuan Changhong Battery, Zhongshan Changhong Electric, Changhong Meiling(local level), and Changhong Huayi Compressor (consolidated caliber). The relevant data of the listedsubsidiaries of the Company—Changhong Meiling, Changhong Huayi Compressor and ChanghongJiahua are detailed in their ESG reports 2023.
Statistical scope: Major manufacturing units such as Sichuan Changhong, Guangdong Changhong Electronics, Chang-hong Air Conditioner, Sichuan Changhong Package Printing, Sichuan Changhong NeoNet Technologies, SichuanChanghong Molding Technology, Sichuan Changhong Component Technology, Sichuan Changhong Precision Electron-ics Tech, Lingbayi Electronics Group, Sichuan Changhong Jijia Fine, Sichuan Changhong Battery, and ZhongshanChanghong Electric.
20212022
2023
173.81
147.53
144.89
612.28
635.124
548.81
1,464.331,443.881,588.27
40,728.4642,720.9344,163.69
72.91
226.87
600.38
147,935.78136,786.00125,233.80
675.14
1,072.56
0.00
1.95
1.65
1.50
YearGasoline (t)Diesel (t)
Natural Gas(10,000 m
)
PurchasedElectricity(10,000 kWh)
Heat (steam)
(GJ)The Company's ownPV/waste heat/windpower generation
(10,000 kWh)
Fuels convertedfrom fossil fuelssuch as waste oil
(tce)
Energy consump-
tion intensity
(tce/RMB 1
million)
Material use
Management of material use
Energy use
Energy-saving targets, energy use and energy-saving management
Unit (ton)20222023
YoY Increase orDecrease (%)Total consumption of materialsConsumption ofpackaging materials
675,852.05
47,097.21
831,388.1623.0170,728.2250.17
In 2023, the proportion of recycled materialsincreased by 11.32% compared with the previous year
2Recycled MaterialsEnergy Conservation3
Changhong Creates a Green Future
ESG REPORT 2023
Pollution Prevention and ControlEnhance
Discharge Concentration of Wastewater Pollutants (mg/L)
Discharge
units
SSCODTNTPCr VI
Ammonianitrogen
TCrTZnTNiBOD5
Exceedingthestandards
Standards forwastewater dischargeimplementedDischarge of wastewater pollutants
Note: "/" indicates that the concentration is not detected. The maximum value of annual monitoring is taken as the dischargeconcentration, and the discharge amount refers to the maximum throughout the year. The total discharge amount "-" indicatesthat it cannot be accounted for because the concentration is not detected. The statistical scope covers the major units of theGroup that discharge industrial wastewater.
ZhongshanChanghongElectric
6.5
6.888
/
20.75
6.052
197.58
48.1078
14.4
1.44
28.66
4.88
10.2
/
0.02
0.0475
1.23
0.21
0.14
<0.38
0.29
0.8418
4.19
2.14
4.80
0.934
/
0.0078
0.96
/
0.17
/
//
0.08
/
0.84
/
/
0.0172
0.30
/
0.36
/
5.98
/////
NoNoNoNoNoNo
Discharge Limits of WaterPollutants (DB44/26-2001)//
0.03
/<0.01
/
Discharge Amount of Wastewater Pollutants (kg)
Discharge
unitsSSCODTNTPCr VI
Ammonianitrogen
TCrTZnTNiBOD5
Exceedingthe standards
Standards forwastewater dischargeimplemented
Note: "/" indicates that the concentration is not detected. The maximum value of annual monitoring is taken as the dischargeconcentration, and the discharge amount refers to the maximum throughout the year. The total discharge amount "-" indicates thatit cannot be accounted for because the concentration is not detected. All units of Sichuan Changhong that discharge industrialwastewater are disclosed.
0.04
2.67
83.37
4.27
5.35
3.10
1,609.66
672.58
97.29
390.10
44.54
331.00
5,285.34 1026.36 2562.48
0.71
-0.02
0.61
42.28
41.56
31.30
178.99
0.05
-
0.44
21.78
-
6.50
-
--
1.80
-
30.03
-
-
0.84
2.19
-
13.76
-
12.82
-----
NoNoNoNoNoNo
Discharge Limits of WaterPollutants (DB44/26-2001)--
0.68
-
0.42
-
13.95
386.86
341.35
305.96
-
Wastewater management and emission reduction
The self-built sewage treatment station adopts the "physicochemical + biochemicalprocess", and is commissioned to a professional organization for operation. Automaticdetection equipment is used to test wastewater every day, and the wastewater willbe discharged after reaching the standard. A reclaimed water reuse system isinstalled, with a wastewater reuse rate of 60%, to reduce wastewater discharge.ZhongshanChanghongElectricLingbayiElectronicsGroupSichuanChanghongBatterySichuanChanghongPackagePrintingSichuanChanghongComponentTechnology
Wastewater Discharge Reduction1
Changhong Creates a Green Future4
GuangdongChanghongElectronicsLingbayiTianyuanSichuan ChanghongComponentTechnologySichuanChanghong JijiaFineSichuanChanghongBattery
Discharge Limits of WaterPollutants (DB44/26-2001)
Discharge Limits of WaterPollutants (DB44/26-2001)Emission Standard ofPollutants for Electroplating(GB21900-2008)Indirect Discharge Standard of theDischarge Standard of WaterPollutants for Electronic Industry(GB39731-2020)Emission Standard of Pollutants forElectroplating (GB21900-2008)Wastewater Quality Standards for Dischargeto Municipal Sewers (GB/T31962-2015)Emission Standard of Pollutantsfor Battery Industry
Emission Standard of Pollutantsfor Electroplating(GB21900-2008)Indirect Discharge Standard of theDischarge Standard of WaterPollutants for Electronic Industry(GB39731-2020)Emission Standard of Pollutants forElectroplating (GB21900-2008)Wastewater Quality Standards for Dischargeto Municipal Sewers (GB/T31962-2015)Emission Standard ofPollutants for BatteryIndustry
Build a sewage treatment station on the printed board production line, temporarilystore treated industrial wastewater in the reuse pool after meeting the indirectdischarge standard of the Discharge Standard of Water Pollutants for ElectronicIndustry (GB39731-2020), reuse nearly 50% of the industrial wastewater for produc-tion, and discharge the rest to the sewage treatment plant through the urban industri-al sewage pipe network for further treatment.
Treat the ink-washing wastewater from the Packaging and Printing Industrial Park inMianyang Economic and Technological Development Zone with the environmentalprotection treatment system, and reuse all the reclaimed water after treatment forgelatin production to achieve zero discharge; discharge pre-treated productionsewage into the municipal sewage pipe network with up-to-standard discharge testreports.
Set up a special water resource treatment center for uni?ed treatment of productionwastewater, adopt the process of "chemical precipitation + PH adjustment + coagula-tion + quartz sand ?ltration" and reuse water treatment system for "activated carbon+ quartz sand + reverse osmosis" puri?cation; build online monitoring facilities forwastewater treatment, network and monitor in real time with the local ecological envi-ronment bureau, with a reuse water volume of 90,500 tons in 2023.
Recycle industrial wastewater to wastewater treatment station for reverse osmosis,evaporation and recycling to achieve zero discharge of wastewater; build a 500-cu-bic-meter ?re wastewater pool to collect ?re wastewater and industrial chemicals andcarry out harmless treatment.
ZhongshanChanghongElectricSichuanChanghongBattery
GuangdongChanghong
Changhong1811.69
Electronics
SichuanJijia Fine
Sichuan ChanghongComponentTechnologySichuan TianyuanMachinery of 081Electronics Group Co.,Ltd
ESG REPORT 2023
Emission Concentration of Waste Gas Pollutants (mg/m
)
Discharge unitsSOxNOxPMVOCs
Exceeding the
standards
Standards for waste gasemissions implemented
Waste gas emissions
Note: "/" indicates that the concentration is not detected. The maximum value of annual monitoring is taken as the dischargeconcentration, and the discharge amount refers to the maximum throughout the year. The total discharge amount "-" indicatesthat it cannot be accounted for because the concentration is not detected.
Changhong AirConditioner
/
0.4383
/
/////
/
19.75
/
///
1.5
/
1.59
37.6
4.68
12.4
2.88
//
75.4
/
29.9
2.2
2.73
3.72
11.9
4.8
26.6
7.14
3.54
2.72
7.08
/
1.19
NoNoNoNoNoNoNoNoNoNoNoNoNo
Grade 2 standard of Integrated Emission Standard of Air Pollutants(GB16297-1996) and Table 3 of Emission Standard of Atmospheric VOCs forStationary Pollution Sources in Sichuan Province (DB51/2377-2017)
Integrated Emission Standard of Air Pollutants
Standards for Emission Limits of Air Pollutants (DB44/27-2001),and Emission Standards for Odor Pollutants (GB14554-93)Table 3 of DB51/2377-2017Emission Standard of Pollutants for Battery Industry, Integrated EmissionStandard of Air Pollutants, and Emission Standard of Atmospheric VOCs forStationary Pollution Sources in Sichuan ProvinceEmission Standard of Pollutants for Electroplating (GB21900-2008), IntegratedEmission Standard of Air Pollutants (GB16927-1996), Emission Standard of AirPollutants for Boilers (GB 13271-2014) and Emission Standard of Atmospheric VOCsfor Stationary Pollution Sources in Sichuan Province (DB51/2377-2017)Emission Standard of Pollutants for Synthetic Resin Industry, andEmission Standard of Air Pollutants for BoilersGrade 2 standard of Integrated Emission Standard of Air Pollutants(GB16297-1996) and Emission Standard of Atmospheric VOCs forStationary Pollution Sources in Sichuan Province (DB51/2377-2017)Emission Standard of Atmospheric VOCs for Stationary PollutionSources in Sichuan Province (DB51/2377-2017) and Integrated EmissionStandard of Air Pollutants (GB16927-1996)Table 3 of Emission Standard of Atmospheric VOCs for StationaryPollution Sources in Sichuan ProvinceEmission Standard of Atmospheric VOCs for Stationary PollutionSources in Sichuan Province (DB51/2377-2017)Table 2 of Integrated Emission Standard of Air Pollutants (GB16297-1996)and Table 3 Surface Coating of Emission Standard of Atmospheric VOCsfor Stationary Pollution Sources in Sichuan Province (DB51/2377-2017)Emission Limits of Air Pollutants (DB44/27-2001)
Emission amount of waste gas pollutants (kg)Discharge unitsSOxNOxPMVOCs
Exceeding the
standards
Standards for waste gasemissions implemented
Changhong Air
Conditioner
1140.73-
620.45
19.63
1319.67
-
100.41
-----
722.847
-2042.31179.391540.73
-
502.03
-
-
-
5.13
-
844.095
1.3
4586.7
903.317
2732.6
932.9
1022.58
295.14
1179.22
--
263.15
-
4673.32
282.31
778.29
1013.1612801394.51
241.53
1676.06
296.7
8.3
-
165.84
NoNoNoNoNoNoNoNoNoNoNoNoNo
Grade 2 standard of Integrated Emission Standard of Air Pollutants(GB16297-1996) and Table 3 of Emission Standard of Atmospheric VOCs forStationary Pollution Sources in Sichuan Province (DB51/2377-2017)
Integrated Emission Standard of Air Pollutants
Standards for Emission Limits of Air Pollutants (DB44/27-2001), andEmission Standards for Odor Pollutants (GB14554-93)Table 3 of DB51/2377-2017Emission Standard of Pollutants for Battery Industry, Integrated EmissionStandard of Air Pollutants, and Emission Standard of Atmospheric VOCs forStationary Pollution Sources in Sichuan Province
Emission Standard of Pollutants for Electroplating (GB21900-2008), IntegratedEmission Standard of Air Pollutants (GB16927-1996), Emission Standard of AirPollutants for Boilers (GB13271-2014) and Emission Standard of Atmospheric VOCs forStationary Pollution Sources in Sichuan Province (DB51/2377-2017)
Emission Standard of Pollutants for Synthetic Resin Industry,and Emission Standard of Air Pollutants for BoilersGrade 2 standard of Integrated Emission Standard of Air Pollutants(GB16297-1996) and Emission Standard of Atmospheric VOCs for StationaryPollution Sources in Sichuan Province (DB51/2377-2017)Emission Standard of Atmospheric VOCs for Stationary Pollution Sources inSichuan Province (DB51/2377-2017) and Integrated Emission Standard of AirPollutants (GB16927-1996)Table 3 of Emission Standard of Atmospheric VOCs for StationaryPollution Sources in Sichuan ProvinceEmission Standard of Atmospheric VOCs for Stationary PollutionSources in Sichuan Province (DB51/2377-2017)Table 2 of Integrated Emission Standard of Air Pollutants (GB16297-1996)and Table 3 Surface Coating of Emission Standard of Atmospheric VOCs forStationary Pollution Sources in Sichuan Province (DB51/2377-2017)Emission Limits of Air Pollutants (DB44/27-2001)
Waste gas emission management and reduction measures
Changhong Air Conditioner has put into service 13sets of special treatment facilities for waste gasfrom degreasing, welding fume, wave solderingand conformal coating, and improved the opera-tion and maintenance system of various waste gastreatment facilities. In 2023, by introducingvacuum degreasing technology, it replaced all thegas degreasing equipment, and reduced degreas-ing waste gas from the source. In addition, it isactively promoting the technological upgradingand transformation project for environmentalprotection performance in Sichuan Province,targeting waste gas from wave soldering.
Guangdong Changhong Electronicsadopts advanced waste gas treat-ment technology and equipment toensure that the waste gas meets thenational or local emission standardsbefore discharge. At the same time, itoptimizes the production process andapplies clean energy and low-emis-sion technologies to reduce thegeneration of waste gas.
In the production process of SichuanChanghong, the waste gas is mainlygenerated from the wave solderingprocess. Collected in an exhaustsystem, the waste gas is dischargedafter being treated in an activatedcarbon adsorption and desorptioncatalytic combustion device andreaching the standard.
Sichuan Changhong MoldingTechnology has treated sprayingwaste gas through the RTO technolo-gy, upgraded the technology for thematerial storage system of injectionmolding machines, and introducedwater-based coatings, effectivelyreducing waste gas emissions.
With advanced productiontechniques and equipment, Chang-hong Jijia Fine has upgraded spray-ing waste gas treatment facilitiesfrom the "UV photolysis method" to"spraying + ?lter cotton + 1 group ofUV photolysis + multi-stage activatedcarbon", effectively reducing wastegas emissions.
The replacement rate of raw andauxiliary materials with low VOCscontent in Sichuan Changhong PackagePrinting has reached99%, effectivelyreducing the generation of waste gas.All waste gases are discharged afterbeing treated by waste gas treatmentequipment and reaching the standard.
Waste Gas Emission Reduction2
Changhong Creates a Green Future
Guangdong Changhong
Electronics
Guangdong ChanghongElectronicsLingbayi TianyuanLingbayi ElectronicsGroupSichuan ChanghongPackage PrintingSichuan ChanghongPrecision Electronics TechSichuan ChanghongComponent TechnologySichuan ChanghongNeoNet TechnologiesSichuan ChanghongMolding TechnologySichuan Changhong
Jijia FineSichuan Changhong
Battery
ZhongshanChanghong Electric
SichuanChanghong
Lingbayi TianyuanLingbayi Electronics
GroupSichuan Changhong
Package PrintingSichuan ChanghongPrecision Electronics Tech
Sichuan ChanghongComponent TechnologySichuan ChanghongNeoNet TechnologiesSichuan ChanghongMolding TechnologySichuan Changhong
Jijia FineSichuan Changhong
BatteryZhongshanChanghong ElectricSichuan Changhong
ESG REPORT 2023
The Group adopts strict and professional measures for the management of general solid waste and hazardouswaste. The Company classi?es, labels and stores general solid waste in accordance with relevant laws and regula-tions to ensure that their handling and disposal are compliant, and encourages employees to participate in wastereduction efforts, such as recycling plastics and other recyclable materials. The Company takes stricter manage-ment measures for hazardous waste. It classi?es and marks hazardous waste to ensure that each kind of waste isproperly treated and disposed of. It hands over hazardous waste to licensed units for treatment in accordance withnational and local laws and regulations, so as to ensure that no harm will be caused to the environment. Moreover,it regularly supervises and inspects the generation, storage and disposal of hazardous waste to ensure that all mea-sures are effectively implemented.Changhong Air Conditioner has formulated Waste Management Measures, which clari?es the managementresponsibilities at all levels from the aspects of source prevention, process control and terminal disposal. It has alsoestablished a three-tier hazardous waste management ledger for teams, departments and the Company tocomprehensively record the generation, storage, transfer and other information of hazardous waste, and ?nallyentrusted units with hazardous waste disposal quali?cation to carry out standardized and harmless centralizeddisposal.Sichuan Changhong (Intelligent Manufacturing Park) is equipped with a warehouse for temporary storage ofhazardous waste and an area for temporary storage of general solid waste of about 460 m2. The ?oor of thefacilities adopts ?reproof and anti-leakage materials to meet the current storage requirementsof solid waste, which will be collected and handed over to licensseedd units for compliant disposal.
Climate ChangeAddress
Hazardous waste
Type of Solid Waste (t)
Inventory inPrevious Year (t)
Waste Generated
This Year (t)
OutsourcingTransfer (t)
IntegratedUtilization (t)
Inventory in This
Year (t)
GHG Emissions2021
31,985.99181,524.50213,510.49
54.56
Direct GHG emissions
(tCO2e)Indirect GHG emissions from
purchased energy (tCO2e)
Total GHG emissions
(tCO2e)GHG emissions(kgCO2e/RMB 10,000)
202233,292.22175,064.44208,356.66
43.77
2023
33,649.31201351.39235000.70
43.21
Volume of solid waste (t)
The statistical scope includes the major manufacturing units such as Sichuan Changhong, Guangdong Changhong Electronics, Chang-hong Air Conditioner, Sichuan Changhong Package Printing, Sichuan Changhong NeoNet Technologies, Sichuan Changhong MoldingTechnology, Sichuan Changhong Component Technology, Sichuan Changhong Precision Electronics Tech, Lingbayi Electronics Group,Sichuan Changhong Jijia Fine, Sichuan Changhong Battery, Zhongshan Changhong Electric, Changhong Meiling (local level), andChanghong Huayi Compressor (consolidated caliber). The relevant data of the listed subsidiaries of the Company—Changhong Meiling,Changhong Huayi Compressor and Changhong Jiahua are detailed in their ESG reports 2023.
Note 1Note 2Note 3
Note: The statistical scope of solid waste only includes the main manufacturing units such as Sichuan Changhong, Guangdong ChanghongElectronics, Changhong Air Conditioner, Sichuan Changhong Package Printing, Sichuan Changhong NeoNet Technologies, Sichuan ChanghongMolding Technology, Sichuan Changhong Component Technology, Sichuan Changhong Precision Electronics Tech, Lingbayi Electronics Group,Sichuan Changhong Jijia Fine, Sichuan Changhong Battery, and Zhongshan Changhong Electric.
127.96
19.57
147.53
2,086.6835,402.6737,489.35
2,074.0113,240.5815,314.59
22,155.3322,217.33
78.63
26.335
104.965
Solid Waste3GHG Emissions1
Changhong Creates a Green Future
Total wasteGeneral solid waste
Due to the limitation of statistical means, data statistics on GHG emissions from employees' commuting, leasedassets and raw materials are not included.Enterprises in Sichuan Province shall be accounted according to the Work Plan for Pilot Construction of Near-zero Carbon EmissionParks in Sichuan Province (Annex 2-3: Carbon Emission Accounting Method) issued by the Department of Ecology and Environment ofSichuan Province and Sichuan Provincial Economic and Information Department on April 24, 2022 in the Notice on the Pilot Work ofNear-zero Carbon Emission Parks. Enterprises in Guangdong, Anhui and Jiangxi Provinces shall be accounted according to localemission accounting requirements.
The Group actively responds to the strategy of "carbon peak and carbon neutrality", upholds the concept ofgreen development, low carbon, energy conservation and environmental protection, promotes the sustainabledevelopment of the industry with innovation and professionalism, and strives to realize the vision of a "green future".It endeavors to create the policy of responding to energy conservation and carbon reduction with full life cycle man-agement, actively implements the green evaluation system and tools for the whole life cycle of products, compre-hensively improves the ability to cope with climate change, contributes to ecological environmental protection andsocial-economic development, and protects human health and the earth's environment through green and ener-gy-saving development.The Group actively implemented the energy conservation and emission reduction targets in the "14th Five-YearPlan" period, formulated clear objectives and long-term plans to address climate change around the overall strategyof the Company, and implemented relevant national policies on energy conservation and emission reduction.
ESG REPORT 2023
ESG REPORT 2023
In 2023, the comprehensive energy consumption of a single compressor product of ChanghongHuayi Compressor is 4.85 tce/10,000 units, down 10.02% from 5.39 tce/10,000 units in 2022. The Companyhas passed ISO 50001:2018 energy management system certi?cation.
Completion of Energy-saving Targets in the "14th Five-YearPlan" Period for Main Product Units of the Company in 2023
Changhong
AirConditioner
Airconditioner
Energy Consumptionin 2022Comprehensiveenergy consumption:
4.320 tce/10,000
unitsComprehensiveenergy consumption:
11.988 tce/10,000
standard sets
Target in 2023
Comprehensiveenergy consumption
< 4.537 tce/10,000
sets
Comprehensiveenergy consumption< 12.340 tce/10,000
standard sets
Energy Consumptionin 2023
Comprehensiveenergy consumption:
4.347 tce/10,000
units
Comprehensiveenergy consumption:
11.259 tce/10,000
standard sets
104.19
106.08
Comprehensive energy consumption of products of Changhong Huayi Compressor
| energy |
| of |
| of |
| Huayi |
5.39 tce/10,000 units
4.85 tce/10,000 units
ECO
Completion rate of comprehensive energyconsumption for unit air conditioning product
106.08%
Completion rate of comprehensiveenergy consumption for unit TV product
104.19%
In 2023, the Company's mainproduct units all achieved theirannual energy-saving targets.
GHG Emission Reduction Management2
Changhong Creates a Green Future
UnitProductSichuanChanghong
TV set
Completionrate (%)
2024 Goal
ESG REPORT 2023
Green Environmental Protection AchievementsDisplay
The Group upholds the concept of green development, low carbon, energy conservation and environ-mental protection, actively building green factories. It vigorously advances new green materials, produc-tion line automation, and energy-saving equipment retro?ts, to create a green manufacturing systemfeaturing green production, green products, and green recycling.Changhong Air Conditioner
Guangdong Changhong Electronics, in collaboration with China South-ern Power Grid Energy Ef?ciency and Clean Energy Co., Ltd., built pho-tovoltaic power stations in industrial parks to promote the use of greenenergy. In 2023, the power generation reached 13,003,700 kWh, result-ing in a cumulative CO2 emission reduction of 10,457.61 tons. Amongthese efforts, Guangdong Changhong Electronics purchased andutilized 3,784,500 kWh of solar power, achieving a CO2 emissionreduction of 3,043.47 tons. Also in 2023, high-energy consumptionmolding machines were phased out in the foam plant, and eight newmolding machines were installed. Through technological and equip-ment improvements, energy ef?ciency was further improved.
Guangdong Changhong Electronics
In 2023, Zhongshan Changhong Electric replaced the ordinarylighting ?xtures along the perimeter of the factory with 50solar-powered lights, resulting in an energy consumptionreduction of 12 KW·h/day. Additionally, one old air compressorwas phased out, saving energy consumption by 100 KW·h/day.
Zhongshan Changhong Electric
In 2023, Changhong Packaging Printing invested in a total of nine electricforklifts to replace traditional diesel forklifts; and actively promoted the"paper instead of wood" approach, utilizing recycled paper packaging toconserve wood resources. By enhancing the pass rate of paperboardproduction, it reduced waste paper by over 400 tons compared to theprevious year.
Sichuan Changhong Package Printing
In 2023, Lingbayi Electronics Group recycled over800 tons of impregnated waste alkali solution for pHadjustment in heavy metal wastewater, aiming toreduce the impact of waste alkali solution dischargeon wastewater treatment, lower the dif?culty ofwastewater treatment, and achieve energy conser-vation and emission reduction.
081 Electronics Group
Changhong Creates a Green Future
In 2023, Changhong Air Conditioner purchased 10 elec-tric forklifts to replace traditional fuel forklifts, reducingthe use of non-renewable resources, and thus decreas-ing carbon emissions. It developed a single-row condens-er system to gradually replace double-row condensersand used small-diameter copper pipes to lower theconsumption of metal resources by products. In 2023,Changhong Air Conditioner obtained 43 new ener-gy-saving certi?cates for products, comprising 18 forhousehold air conditioners (21 models in total) and 25 forcentral air conditioners (25 models in total). Additionally,it acquired 3 new China Environmental Labeling certi?-cates, covering 71 models in total.
ESG REPORT 2023
Changhong Huayi CompressorSichuan Changhong Jijia Fine
Changhong Meiling
Sichuan Changhong Molding Technologywas rated as a provincial "Green Factory".The Company has vigorously pursued ener-gy-saving transformation projects, complet-ing energy-saving retro?tting for 143 dryingmachines in 2023. Additionally, technologicalimprovements were implemented for 10injection molding machines to upgrade thematerial-feeding hydraulic motors, resultingin electricity savings of over 11% permachine. Furthermore, 62 injection moldingmachines underwent transformations wherethe existing stainless steel armor or ceramicheating coils were replaced with infrarednano-insulated heating coils, achievingenergy savings of over 25%.
Changhong Huayi Compressor has been dedicated to creat-ing an ef?cient and energy-saving industrial operationmodel. It has devoted itself to establishing green factories,promoting the construction of national demonstration greenfactories, and reducing the environmental impact andresource consumption during manufacturing. In 2023, Jiax-ipera Compressor Co., Ltd. was awarded the "A-Level Enter-prise Green Code" by the Ministry of Industry and Informa-tion Technology's "Industrial Energy Conservation and GreenDevelopment Management Platform".In May 2023, Changhong Huayi Compressor completed theconstruction of a rooftop photovoltaic power station project,which generates over 35,000 kWh of electricity daily andreduces carbon dioxide emissions by over 18 tons per day.Moreover, it has also developed the Smart Carbon Manage-ment Platform, covering carbon management and compre-hensive energy real-time monitoring, to help the Companyimprove the use of green energy, reduce carbon emissions,
Sichuan ChangHong mold and plastic tech
and promote sustainable green development.
Changhong Meiling has been committed to theR&D and application of low-carbon materials. Ithas extensively used bio-based materials inrefrigerator drawers. By incorporating a certainproportion of degradable, environmentallyfriendly materials such as straw and bamboopowder into the raw materials, it has reducedthe use of plastics, thus achieving the goal oflowering carbon emissions. It is estimated thatthe use of bio-based materials can reducecarbon emissions by 8.7 tons per 10,000 refrig-erators. In 2023, Changhong Meiling obtainedan additional 2 carbon neutrality certi?cations,demonstrating the Company's ongoing com-mitment to carbon management and contribu-tion to a green, low-carbon future.
Sichuan Changhong Jijia Fine has won the title of Environ-mental Protection Integrity Enterprise in Sichuan Provincefor 7 consecutive years. In 2023, its subsidiary SichuanChanghong Hongjia Technology Co., Ltd. won the title ofEnvironmental Protection Integrity Enterprise of Mianyangfor the ?rst time. Sichuan Changhong Jijia Fine has imple-mented the concept of green development with practicalactions, contributing to the construction of an ecological,green home.
Changhong Creates a Green Future4
The Company integrates the ESG concept into the risk management process of its business, andconsiders climate and environment factors in business links such as supplier access and product linemanagement. The Company identi?es and evaluates the risks brought by environment and climatechange based on its own operation and management, and formulates countermeasures to mitigate oravoid the negative impact of environment and climate change on the Company.
Recognizing the preciousness of natural resources, theGroup remains committed to their rational development andutilization, resolutely avoiding overexploitation and misuse toensure the sustainable use of resources and thus conservebiodiversity. Under the management of the Group, all unitsstrictly follow the regulations in their production and operationactivities to ensure that there is no negative impact on localbiodiversity.To conserve biodiversity in the place where the Companyheadquarters is located, we have actively taken a series ofenergy conservation and emission reduction measures. TheCompany not only promotes the concept of green of?ce andgreen travel, but also uniformly uses energy-saving LED lightbulbs, provides commuter shuttle buses for employees, andencourages employees to commute by public transport toreduce greenhouse gas emissions.It is worth mentioning that Mianyang City's PingwuCounty, where the Company headquarters is located, is knownas "No.1 County for Giant Pandas in the World". As an import-ant representative of biodiversity, giant pandas have extreme-ly high requirements for the living environment in such aspectsas climate and temperature, which also indirectly re?ects thatthe Company does not cause any negative impact on localbiodiversity.
In 2023, the Company had no environmental violations and was not punished by environmentalprotection supervision units.ESG REPORT 2023
ESG REPORT 2023
Environmental Risks and OpportunitiesIdentify
BiodiversityPreserve
Environmental ViolationAvoid
Risk identi?cation and response
Risk TypesRisk DescriptionResponse Measures
Policy andlegal risksMarket riskReputation risk
The new environmental protection policyputs forward higher requirements forenterprises' environmental management,which increases the dif?culty and cost ofenterprises' supervision.Implementation of the carbon emissiontrading and carbon pricing mechanismincreases the business operating costs.The production cost increases, and thedemand for green and low-carbonproducts cannot be met.Negative feedback results from poorperformance in addressing climatechange.
Pay close attention to laws and regulations, timelyidentify policies, laws and regulations and takecorresponding measures, and continuously improvethe Company's environmental management system.Actively carry out energy conservation andemission reduction, increase the proportion ofclean energy, and build green factories.Lay out green technologies in advance and active-ly develop green and low-carbon products to meetconsumer needs.Actively respond to climate change and enhancethe Company's sustainable development ability.
Risk TypesRisk DescriptionResponse Measures
Acutephysicalrisks
Chronicphysical
risks
Extreme conditions suchas typhoon, thunder andlightning, ?ood, earth-quake, rainstorm andblizzard may causethreat and damage to thesafety of employees andproperty of the Company,and bring about the riskof shutdown.Continuous hightemperature and droughtmay bring risks such asproduction limitation,shutdown, increase ofoperating costs andreduction of productionef?ciency.
Formulate the Comprehensive Emergency Plan for Work Safety Accidents and theResponse Plan for Natural Disaster Accidents, pay attention to the weatherconditions at all times, organize employees of the Company to carry out preventivedrills, and strengthen work safety investigation and early warning.
Formulate emergency plans, strengthen staff training and drills, reserveheatstroke prevention supplies and drugs to ensure personal safety.Increase the number of air conditioners and coolers in workshops toavoid working at high temperature; increase the capacity of emergen-cy water reserve.Carry out staggered production for capacity guarantee, reasonably planproduction orders, and implement standby power resources in advance toensure the production needs of urgent orders.
Prepare ?ood control and emergency rescue materials, and ensurethat ?re ?ghting and emergency rescue facilities are complete.Plan and select sites for plants, with full consideration of the safety designrequirements for chemicals warehouse and hazardous waste warehouse.Purchase property insurance; strengthen the management of suppliers toprevent and resolve risks.
The number of giantpandas in PingwuCounty, Mianyang:
The proportion ofcounties' wild giantpandas in China'stotal: about20%The population densityof giant pandas:
0.1162 giant
panda per squarekilometer
The suitable habitatarea for giantpandas:
2,385 squarekilometers
According to the data of the fourthnational giant panda survey,
Opportunities from environment and climate changeItemsOpportunitiesMeasures
Products andservicesResources
Markets
There are plenty of opportunities in low-carbontechnology, green products and services, aswell as the industrial application of high-ener-gy-ef?ciency technologies and new energy.Response to energy conservation andemission reduction policies may bringrelevant policy and ?nancial support.The demand for consumption upgrading ofgreen and smart home appliances isincreasingly strong, and the iterativeupdate wave of the home appliancemarket appears. Demand for home healthincreases, and changes in users' prefer-ences expands green market demand.
Promote industrial upgrading and transformation, promotethe development of green design and green manufacturing,make forward-looking and innovative product planning, andadhere to differentiated green product layout.Identify and respond to government supportivepolicies and green projects.Actively explore the application of new technologiesand processes to improve resource use ef?ciencyand reduce energy costs;Identify and participate in emerging markets;Adapt to the market demand, seize the windowperiod of consumption upgrading in home applianceindustry, and formulate marketing strategies.
Changhong Creates a Green Future
1IZTJDBMSJTLT
1IZTJDBMSJTLT
TechChanghongCreates aBeer Life
We are committed to building a transparentsupply chain and working with suppliers to create abetter life and future. We have built Sichuan's ?rststate-level cross-industry "5G + Industrial Internet"platform, empowering nearly 100 enterprises in 8industries. We have actively responded to the BRI,with export revenue exceeding RMB 10 billion in
In terms of social responsibility, we uphold theoriginal aspiration of "serving the country throughindustrial development", take the initiative to ful?llour corporate social responsibilities, and proactivelycontribute to the rural revitalization and publicwelfare undertakings.
2023.
At the same time, we have increased brandexposure overseas in various ways. Changhongbrand has entered more than 40 countries andregions in Southeast Asia and Europe. Throughoutthe year, we have dedicated a signi?cant amount offunds to social welfare projects, and been honoredwith the title of "the Most Charitable DonatingEnterprise" in the 4th Sichuan Charity Awards.
Technology Creates a Better Life
Employee Rights and SafetyProtect
ESG REPORT 2023
ESG REPORT 2023
1Recruitment and Employment
The Group has strictly abided by relevant national laws and regulations, such as the Civil Code of thePeople's Republic of China, the Labour Law of the People's Republic of China, the Labor Contract Law ofthe People's Republic of China, the Law of the People's Republic of China on Promotion of Employment,and the Provisions on Prohibition of Child Labour, as well as applicable laws and regulations in overseasoperating locations. It has respected and protected the legitimate rights and interests of employees,created an equal and diversi?ed working environment, and striven to build harmonious and win-win laborrelations.
The Company has formulated regulations, such as the Employment Management Guidelines and theHuman Resources Management System, to prohibit employment discrimination based on gender, age,race, religion, pregnancy, disability, and other factors and to treat all employees equally. The Companyhas signed labor contracts with employees according to law, followed national working hour standards,resolutely resisted any form of child labor and forced labor, and ensured employees' rights to reasonableworking hours, rest, and leave. In 2023, the Company had no lawsuits arising from discrimination and didnot employ child labor or engage in forced labor.
Recruitment policies and implementation
Avoidance of child or forced labor
Staff structure
The Company has established employment and recruitment systems such as Recruitment Manage-ment Measures. It always adheres to the value on talent and recruitment principle of "prioritizing employ-ment, highlighting ?tness; recruiting diverse talent from across the world; emphasizing fairness andjustice, applying scienti?c management". The Company has encouraged ?exible talent acquisition, set norestrictions on the way of talent introduction, and recruited talent regardless of nationality, region, orgender. Employee recruitment follows the principle of scienti?c management to ensure that the abilitiesand strengths of candidates are fully demonstrated. The recruitment process and personnel selectioncriteria are fair and consistent to employ the best candidates, and the talent introduction concept of"responsibility, innovation, and progressiveness" is diligently practiced.
Note: "Number of active staff in subsidiary" refers to the total count of employees working within the subsidiarycompanies included in the ?nancial statement consolidation scope.
Employee Remuneration and Bene?ts2
The Group has developed the value concept of "Dedication and Responsibility, Innovation and Shar-ing", with the realization of employees' self-worth as the goal. The Company has upheld the salarypayment principle of "paying for position, competence, and performance", creating a competitive remu-neration and bene?ts package along with a performance appraisal system for employees. It has paidsalaries and related bene?ts in a timely manner and avoided any salary defaults, fully safeguarding therights and interests of employees in terms of remuneration.The Company has implemented the mechanism of paying salaries on a ?xed day, and no salarydefault happened throughout the year. With the system of collective discussions on salaries, the Compa-ny has ensured reasonable income growth for its employees. The Company has provided employees withthe "social insurance and housing provident fund" and offered them practical support, including caringassistance, psychological assistance (EAP), housing assistance, health checks, cultural activities, andrewards for educational advancement. The Company has been increasing its investment to ensureemployees' health, earning recognition and appreciation from its workforce. "Employees are the mostvaluable asset of companies." Employee satisfaction is the cornerstone. The Company always respects,relies on, trains, and develops its employees, fully tapping into their potential. It has incorporated individu-al value aspirations into its future development and advanced sustainable business growth by continu-ously contributing to the realization of employees' self-worth.Production staff25,112
10,0532,2503,001
3,659
45,662
Doctoral degree17
8,5697,27729,16745,662
Performance indicator2023 (persons)4,54241,12045,662
2022（persons）
4,64442,70947,353
2021（persons）4,39042,27446,664
Specialty category2023 (persons)Education level2023 (persons)Total of active staff
Total
TotalOthersCollege degreeBachelor's degreeMaster's degree
Other registered staffManagement staffAdministration staff
Financial staff
R&D staffTechnical staff
Sales staff
Active staff in
subsidiariesActive staff in parent
company
Employee Health and Safety3Employee Development and Training4
The Company has passed the ISO45001 Occupational Health and Safety Management System Certi-?cation and Level II Enterprise for Work Safety Standardization Certi?cation. Upholding a people-orientedapproach, the Company has placed great emphasis on employees' occupational health and safety. TheCompany has strictly abided by relevant laws and regulations such as the Work Safety Law of thePeople's Republic of China, the Law of the People's Republic of China on the Prevention and Control ofOccupational Diseases, and the Regulations on the Administration of Occupational Health at Workplaces.It has established a comprehensive occupational health and safety management system, to continuouslyimprove the working environment of employees and effectively ensure their occupational health andsafety. In 2023, the Company organized the revision of safety management systems such as the SafetyProduction Investment Guarantee System and the Safety Production Accident Reporting, Investigation,and Handling System while formulating and issuing a new Reward System for Potential Safety HazardReporting. It has strictly ful?lled its primary responsibility for safety production and perfected the dualprevention mechanism.The Group has made great efforts to prevent and respond to safety accidents and work-relatedinjuries of employees, establishing all-around preventive measures. First, the Group has intensi?ed poten-tial hazard identi?cation and control by conducting special inspections to address signi?cant hazards. In2023, 8,605 hazards were identi?ed, with 8,459 recti?ed and over RMB 10.78 million invested in recti?ca-tion. Second, emphasis has been placed on developing professional capabilities. The Company hassystematically carried out education and training programs around the improvement of safety produc-tion management skills and professional quality. Throughout the year, it conducted safety training for31,002 new employees and occupational health training for 19,824 employees, effectively raising safetyawareness and competence across the workforce. Third, the Company has prioritized emergency systemdevelopment. Taking into account the characteristics of risks in safety production, natural disasters, andthe environment, the Company has been re?ning emergency plans, strengthening the building of emer-gency rescue teams, and standardizing the emergency equipment and material management. It hasestablished a joint patrol and action mechanism involving workshops, units, and industrial parks, carryingout targeted training and emergency drills to enhance emergency response capabilities. A total of 594drills were organized throughout the year, with 32,950 participants.The Company has insisted on carrying out pre-employment, on-the-job, and post-employment occu-pational health checks for employees in special positions. A total of 5,481 health checks were conductedthroughout the year, with a health check rate of 100%, effectively ensuring the health of the workforce.
The Company has put forward the talent training proposal of "training for performance, empower-ment, and development", established a training system with headquarters and BUs as the key partici-pants, and implemented tailored training programs according to local conditions. Training at differentlevels has different focuses: at the headquarters level, innovative management training for managerialstaff is the priority; at the BU level, the emphasis is on business skills improvement. At the headquarterslevel, the primary focus is on implementing "training for development." Training centers have been estab-lished to cultivate technological talent by leveraging the Company's national-level technology centersand cutting-edge laboratories as well as operation and management professionals in collaboration withprestigious universities at home and abroad, such as Tsinghua University and University of ElectronicScience and Technology of China. Special research projects and innovative industry incubation programshave been conducted in line with future industrial development. The chief emphasis has been laid ondeveloping management talent, key professionals, high-skilled individuals, and new employees. At the BUlevel, the primary focus is on implementing "training for empowerment". Designed for business growth,training at this level aims to develop professional talent and business management experts. Targetedtrainees include primary-level managerial staff, A-role and B-role successors, professionals, and skilledemployees. The goal is to enhance employees' business capabilities and operational skills.The Company has provided employees with "dual-track" career development paths consisting of theprofessional track and the management track. It has established clear career development paths foremployees based on individual preferences to realize common growth. The Company conducts job-levelassessments every year, taking into account employees' abilities and contributions. Employees whodemonstrate outstanding performance during their tenure will be promoted to higher job levels. The Com-pany has created a reserve of?cer pool, providing in-depth training on leadership and management skills,thereby strengthening the company's talent reserve. The Company has set up a multi-sequence,multi-category quali?cation system, which is divided hierarchically in terms of professional knowledge,skills, and key competencies. The system is updated and iterated in alignment with annual strategies, toprovide learning resources for employees in the professional development track, as well as help themimprove their professional capabilities and realize self-development.
ESG REPORT 2023
ESG REPORT 2023
Technology Creates a Better Life5
Employee Satisfaction Improvement5
The Company hopes to effectively identify its potential problems, understand the impact of its deci-sions on employees, ensure work ef?ciency and economic bene?ts, and improve employee satisfaction. Inresponse to that, the Company has conducted aperiodic employee satisfaction surveys and carried outvarious forms of caring activities to enhance employees' sense of happiness and achievement at workand promote harmony and stability in labor relations. It has resolved labor disputes fairly and timely,protected the legitimate rights and interests of parties concerned, and handled labor disputes accordingto laws and regulations.In 2023, the Company's Trade Union convened ?ve joint meetings of leaders of workers' delegations,where they deliberated on matters such as collective discussions on salaries, work reports on potentialhazard identi?cation and control in safety production, and recommendations of employee supervisors forjoint-stock companies. The Company also provided guidance and supervision on the holding of the Con-gress of Workers and Staff in more than ten Mianyang-based subsidiaries throughout the year. The Com-pany has made persistent efforts to advance the development of a multi-level system of the Congress ofWorkers and Staff and improve the multi-level collective negotiation mechanism and the mechanism toprioritize labor dispute mediation, thereby solidifying the foundation for building harmonious laborrelations.The Company has established a labor dispute mediation and labor relations early warning system,strengthening the capacity building for multi-level labor dispute mediation. It has successively implement-ed the "Bringing Legal Services to the Primary Level" initiative and established mediation committees(teams) and mediators at the primary-level business units. Over 200 primary-level labor dispute mediatorshave attended professional training on labor and personnel disputes and obtained mediator quali?cationcerti?cates through assessment. Throughout the year, following the work philosophy of "prevention asthe pillar with priority given to mediation and coordination across the Company", the Company has proac-tively identi?ed and resolved potential hazards within the workforce. In 2023, it dealt with many labordisputes, with a focus on safeguarding employees' rights and interests from the source and guiding themto express demands legally, rationally, and in an orderly manner.
In 2023, the Company's Trade Union continued the "Delivering Warmth in Spring, Sharing Coolness inSummer, Assisting Students in Autumn, Delivering Warmth in Winter" campaign. Throughout the year, theCompany sustained the Hongkang Serious Illness Medical Assistance System, visited model workers andallowed them, frontline outstanding employees, and employees engaged in hazardous operations recu-peration tours, and carried out caring initiatives such as staff welfare during major holidays, employeehealth check-ups, rewards for employees' children entering university, and assistance for employees inneed. The Company has been improving the assistance records for employees in need, offering medicalassistance for employees suffering from serious diseases, and extending help to employees whose fami-lies were in need. All year round, trade unions at all levels of the Company paid over 300 visits to employ-ees who suffered from serious diseases and work-related injuries and were hospitalized. In 2023, 11sessions of one-on-one of?ine psychological counseling services were carried out in Mianyang and Cheng-du. The Company also organized more than 500 psychological care experience activities in Mianyang incollaboration with professional institutions and increased online consulting services for employees work-ing abroad. The Company held three sessions of lectures on psychological knowledge and specializedtopics throughout the year, serving more than 1,000 employees.In 2023, the Female Workers Committee of the Company's Trade Union coordinated with MianyangCenter for Disease Control and Prevention and Mianyang Children's Hospital to give healthcare lecturesfor female employees and a special session for in?uenza vaccination for employees' children. More than1,000 frontline female employees participated in the "Two Cancers" caring campaign for women workersby the All-China Federation of Trade Unions. To celebrate International Women's Day and InternationalChildren's Day, brand activities for female employees were continuously carried out by the Company'sTrade Union, such as the talent shows by female employees, "Rose and Literature" themed readingevents, Changhong Hongbao "Approaching Changhong" parent-child activity, and "Changhong MagicCube-Dating" for young workers.
The Company's Trade Union has held traditional branded cultural and sports activities, such as"Changhong Cup" Staff Sports Games, Changhong Staff Culture and Art Season, and Changhong Carni-val, making ongoing efforts to develop the Trade Union's cultural and sports activity brands. The "Chang-hong Cup" Staff Sports Games featured six online and of?ine competitions, including tug-of-war, e-sports,badminton, table tennis, basketball, and aerobics, with nearly 2,000 employees participating.
ESG REPORT 2023
ESG REPORT 2023
Technology Creates a Better Life
ESG REPORT 2023
Transparent Supply ChainCreate
Number and Distribution of Suppliers1
The Company has been committed to building a transparent, ef?cient, digital, and intelligent supplychain, implementing full life-cycle management for suppliers covering demand and layout, sourcing andaccess, cooperation and evaluation, and incentives and withdrawal, and continuously improving its corecompetitiveness. The Company's Supply Chain Management Center has established and improved a safeand green supply chain management system through transformation and upgrading, with the goal of"safety and ef?ciency, optimal cost, digitization-intellectualization integration, and industrial collabora-tion" and in accordance with the management principle of "uni?ed procurement management system,uni?ed supply resource management, uni?ed material management strategy, and uni?ed IT systemtools".On April 20, 2023, the Company held the Changhong Supplier Conference themed "Technology-pow-ered Changhong to Serve China through Industrial Development, Forge Ahead for Win-win Results". Morethan 600 attendees included representatives from over 200 domestic and foreign suppliers and peoplefrom the home appliance industry supply chain system. They gathered to seek high-quality developmentof the industrial chain.By the end of 2023, the Group had 5,792 suppliers on the List of Quali?ed Suppliers worldwide, withdomestic suppliers accounting for 99.83% and a localization ratio of 63.51%.
Distribution of domestic
and foreign suppliers
Localization of domestic suppliers
Domestic suppliers:
5,782
Foreign suppliers:
Localized suppliers:
3,672
Non-localized suppliers:
2,110
Localizationratio:
63.51%
Domestic
suppliers:
5,782
99.83%0.17%
Supplier Access Management2The Company has formulated Supplier Sourcing and Access Management Speci?cation, SupplierRisk Management Speci?cation, Supplier Agreement Management Measures, Supplier Change Manage-ment Measures and Supplier Blacklist Management Measures and other regulations. In the supplierselection and access process, the Company has conducted strict conformity review and quali?cationevaluation on suppliers. The Company has required them to sign the Corporate Social ResponsibilityAgreement for Suppliers to strengthen the constraints and pre-review of supplier's social responsibilityand safety and environmental protection risks, so as to promote the sustainable development of thesupply chain.
In 2023, the Company opened a "Supplier Sourcing" section in the SPSC system, with 6,607 regis-tered suppliers and 95% of them listed as potential suppliers. It has realized transparent and standard-ized management of the whole process of public supplier sourcing, quali?cation examination and com-prehensive evaluation. The information system enables online visual operation of all links such as suppliermanagement, procurement demand management, procurement pricing, contract signing and settle-ment.
5,792suppliersin total
Technology Creates a Better Life5
ESG REPORT 2023
Supply Chain Security Management3
The Group has strengthened the integration of supply chain resources, analyzed market changes intime, and enhanced its ability to ensure supply chain security. It has grasped the market situation, stud-ied responses to price ?uctuations, concentrated advantageous resources to promote special bargainingand joint bargaining, integrated technology cost reduction, new resource introduction and other mea-sures to create value for the Company, and ensured the supply chain security. The Group has also contin-uously re?ned and improved the speci?c requirements of each business link for share management, usedinformation tools to improve the control process, ensured the stability of the supply chain, and protectedthe interests of the Company.The Company has promoted the management of supplier lists, established an early warning mecha-nism for non-listed procurement, implemented online management of business agreements, technicalagreements and quality agreements, and displayed the signing of basic agreements online to preventcooperation risks. It has also reduced procurement risks through reminding purchase price rises and falls,embedding procurement pricing audits, linking advance payment contracts and applying electronicsignatures.The Company has set up a procurement tender special recti?cation working group to improve thequality of procurement tender recti?cation. In 2023, the Company inspected 908 contract projects of 48subordinate units and 25 entities, found and recti?ed 8 problems. It investigated the credit risk of 855suppliers, completed 29,743 risk investigations, and carried out compliance inspections on 408 materialsubcategories, with a coverage rate of 100%. The Company has promoted the management of blacklistedsuppliers, strengthened the supervision of suppliers, and prevented supplier risks. As of 2023, a total of50 suppliers had been blacklisted.
Incorrupt Procurement
The Company has continuously optimized the procurement management system and established anonline system of full-process procurement management with advanced information technology, thusrealizing the digitalization and transparency of the procurement process. It has also adhered to the "dou-ble-loop management" of people and matters, created a transparent supply chain, and put an end tocorruption.In 2023, 14 subordinate units of the Group completed the job rotation of 117 procurement personneland 23 units completed the declaration of interests for 2,070 people. The Company has implemented theprocurement quali?cation certi?cation to improve the professional quali?cations of procurement person-nel. In 2023, a total of 243 people from 37 units participated in the certi?cation.The Company has established a complaint reporting mechanism, opened 170 procurement supervi-sion channels, set up a procurement supervision mailbox (cgjc@changhong.com) and procurementsupervision hotline (0816-2417561), and opened a "Supplier Complaint" section in Changhong SPSCSystem (https://ecmp.changhong.com). During the reporting period, the Company formulated 12 integrityinspection reports and supplier integrity questionnaires, and received 6 management suggestions,involving 810 suppliers, without integrity problem feedback.
Technology Creates a Better Life
ESG REPORT 2023
Product Safety and Service QualityEnsureProduct Safety and Quality1
The Group has insisted on creating products that consumers can trust, implemented a developmentstrategy that emphasizes "quality as the foundation of business", and persisted in taking quality as thelifeline of products and a powerful tool for market expansion. At the same time, the Company has alsoadhered to the concept of "serving the country through industrial development", devoting itself to inno-vation and improvement in quality management. With quality as the foundation, it has contributed toinformatization, played a demonstration and leading role as a role model, and striven to provide userswith higher-quality products and services.Production standardization management policies and measures
Quality management
The Company has established a Safety Production Committee, set up a safety production manage-ment organization, and staffed it with safety management personnel. It has developed and improvedsafety management systems, such as the Safety Production Supervision and Management System, theAll-staff Safety Production Accountability System, the Safety Production Inspection and Potential HazardIdenti?cation and Recti?cation System, and the Safety Production Investment Guarantee System, toensure the effective implementation of safety production efforts. In 2023, the Group achieved its annualsafety production goals, with no production accidents occurring.
Upholding the principle that "product quality is at the core of the brand", the Company has estab-lished a three-level quality management mechanism, which is supported by quality manuals, proceduraldocuments, and management standards, based on the ISO9001 Quality Management System. The Com-pany has been guided by users' demands for high quality, with quality control at each operational unitbeing central, quality supervision by the competent quality management department acting as a driver,and market quality supervision providing auxiliary support. Through collaboration and coordination, theCompany has promoted the continuous and healthy improvement of product and service quality.
In 2023, the Company's quality management systems for products and services, such as TVs, refrig-erators, air conditioners, washing machines, batteries, electronic devices, packaging products, spareparts, software, and warehousing and transportation, successfully passed the annual supervision andre-evaluation and expanded audit certi?cation by CNAS accredited bodies (CEPREI Certi?cation Body,China Quality Certi?cation Centre) again. The Company has conducted compulsory testing and auditingon home appliances and parts listed in the Catalogue of Products Subject to China Compulsory Certi?ca-tion, obtained CCC certi?cation, and received designated certi?cates. The Company's quality manage-ment system has ful?lled the requirements of ISO9001:2015, maintaining the validity of its certi?cate.
The Company has had 73 quality improvement achievements rated as national, ministerial, provin-cial, or municipal excellent projects. It has been awarded the title of "Advanced Unit in Quality Manage-ment Group Activities in the Electronic Information Industry" by the China Quality Management Associa-tion for Electronics Industry and the title of "Excellent Enterprise in Quality Management Group Activitiesof Sichuan Province" by the Sichuan Association for Quality, Sichuan Federation of Trade Unions, SichuanAssociation for Science and Technology, and other units.
Product recalls and withdrawals
The Company has placed high importance on product safety and quality,with no product recall or withdrawal occurring in 2023.The Company has issued the User Complaint Management Measures and management measureson product return and exchange procedures. Adhering to the user experience-centered approach, it hasensured that user complaints could be addressed promptly and effectively, continuously amelioratedproduct quality through corrections and preventive measures, and improved customer satisfaction.
The Company has established an intelligent R&D managementplatform to ensure product quality from the source of design. In theR&D and design process, the Company has reasonably planneddesign and development activities according to the Design QualityPlan for New Products and other regulations. According to the designand development planning, the Company has implemented thedesign review mechanism for trial production, self-testing and qualityveri?cation of new products in various stages to achieve closed-loopprocess management.Intelligent R&Dquality control
Intelligent supplychain quality
control
Intelligent man-
ufacturingquality control
The Company has taken the intelligent supply chain platform as auni?ed basic management and control platform for procurement,realized the information-based management of the whole procure-ment process, and ensured the life-cycle management of materialsand service suppliers. For purchased components or materials andauxiliary materials that have an important impact on product quality,the Company has implemented ?xed-point procurement from quali-?ed suppliers. For unquali?ed purchased materials, the Company hashandled and managed them according to the corresponding mea-sures, forming a closed loop of management and control.The Company has adopted intelligent sensing technology in theproduct manufacturing, and used intelligent sensors to sense thequality of materials, equipment and products in real time to realizeintelligent data collection and monitoring. It has also adopted auto-matic detection technology to realize the whole-process automaticdetection of materials, equipment and products, thus ensuring theconsistency and stability of product quality.
Technology Creates a Better Life
ESG REPORT 2023
Customer Service System
Following the service philosophy of "putting users at the center of everything", the Group has beencommitted to providing customers with systematic service solutions and end users with one-stop pack-aged services. The Group has a complete service quality control system to ensure the smooth ?ow andclosed-loop management of service orders. It has put into practice a series of standardized service speci-?cations and service management system documents concerning information access standards,door-to-door service execution standards, evaluation management, service order upgrade management,and complaint management, to ensure service quality and improve customer satisfaction.The Group has established 7 regional service centers, 31 branches, over 10,000 authorized serviceproviders, and more than 12,000 service outlets in villages, towns, counties, and cities across the country.At least 20,000 star-rated certi?ed service engineers have been working to provide "7×24 hours" serviceresponse. The Group has set up a customer call center and opened the national uni?ed customer servicehotlines 4008111666 and 4006111666. The Company has been committed to providing users with system-atic service solutions throughout the pre-sale, in-sale, and after-sale stages and packaged services suchas consumer consultation, product installation and maintenance, and cleaning and maintenance ofwhole-house home appliances. With such efforts, it has become an electric appliance service expertaround consumers.
Customer satisfaction surveyThe Company has conducted service surveys on customers according to the Customer SatisfactionEvaluation Control Procedure, to gain in-depth insights into their service needs, gradually improve servicequality and reputation, and boost customer loyalty. In 2023, the Company's customer satisfaction ratereached 99.20%, showing a steady increase from the previous year, and it was successfully selected asthe 2023 "National Leading Enterprise in Home Appliance After-Sales Service".
Annual customersatisfaction in 2023
99.20%
Selected as 2023
"National Leading Enterprise in HomeAppliance After-Sales Service"
The Group has
7 regional service centers31 branchesMore than 10,000 special service providersMore than 12,000 service outlets in cities,counties, towns and villagesMore than 20,000 star-rated service engi-neers to provide 7/24 services
Customer complaint managementTo continuously strengthen customer relations and understand customer needs, the Company hasincorporated customer complaints, negative public opinions and other information into complaint man-agement. The Company has formulated the Management Measures for Customer Complaints, whichclari?es the de?nition of complaints, the division of complaint responsibilities and the complaint handlingprocess, etc. It has also analyzed the complaint information, ensured timely circulation, coordinationtracking, and upgrading handling according to the information feedback process, and followed up thehandling progress and results, forming a management closed-loop of customer problem handling.
Handled more than 500 customercomplaints
Complaint handling rate
100%In 2023, supported by sfter-sales service system
Technology Creates a Better Life
ESG REPORT 2023
R&D and Innovation Management System1
R&D Investment
Innovation-led DevelopmentAccelerateThe Group has been viewing innovation as the perpetual driving force for corporate development,resolutely putting into practice an "innovation-led" approach to propel its high-quality development andnurture new productive forces. Aspiring to provide "integrated solutions with specialized technology asthe core", the Company has intensi?ed the intelligent and digital transformation of traditional industries.It has strengthened process technologies, developed intelligent manufacturing, and supported theempowerment of main businesses and the industry as a whole as well as the development of new busi-nesses.
The Company's R&D innovation management system can be referred to as "a three-tier system withtwo tasks". The "two tasks" are serving national strategies and achieving self-reliance and control, as wellas creating industry-leading hard and core technologies. Regarding the construction of a "three-tier tech-nological innovation system", the Company has focused on three key areas. First, it has built lighthouselaboratories, primarily focusing on "applied basic research" and targeting state-of-the-art technologiessuch as AI and information security to ensure the Company's long-term competitiveness. Second, it hasbuilt competitiveness laboratories for "innovative application and product development". The Companyhas developed a wide range of key technologies and core products in cloud computing, industrial Inter-net, image quality and audio, precise variable frequency, and other aspects to ensure its current competi-tiveness. Third, it has shaped the Changhong technology ecosystem with existing products, technologies,data, and innovation platforms to foster open innovation. Through project collaborations, joint laborato-ries, and other initiatives, the Company has created a technology ecosystem that provides sustainedmomentum for technological innovation.
The Group has prioritized the "talent-led" strategy, especially the introduction of technological inno-vation professionals. With optimal policies and courageous initiatives, the Company has constructed a"pyramid" of innovative talent. Relying on 13 R&D and innovation bases in Chengdu, Mianyang, and othercities, the Company has offered high remuneration to pool top-notch talent in cutting-edge technology?elds such as AI, information security, and big data from different regions. Focusing on emerging indus-tries like IoT and computing storage, the Company aims at leapfrog development. It has vigorously imple-mented talent recruitment programs via strategies such as industrial M&A and the establishment ofbranches in different locations. Moreover, the Company has kept a close eye on high-quality and profes-sionally-trained outstanding graduates, continuously injecting "fresh blood" for ongoing development.
Performance indicator2021 (RMB 10,000)2022 (RMB 10,000)2023 (RMB 10,000)
Current expensed R&D
investment
197,408.2868,380.17265,788.45
2.67
25.73
213,204.7045,059.67
258.264.37
2.79
17.45
221,349.6727,698.49249,048.16
2.56
11.12
Technology Creates a Better Life5
% of capitalized R&D
investment% of total R&D investment
in operating revenueTotal R&D investmentCurrent capitalized R&D
investment
Technological Innovation3
ESG REPORT 2023
ESG REPORT 2023
The Company has been committed to implementing the digital transformation strategy targeting theInternet of Things (IoT). It has developed integrated solutions for "smart home" and "intelligent manufac-turing", to achieve a more comfortable smart home interactive experience, catering to users' needs for abetter life. In 2016, the Company became a pioneer in applying AI to home appliances such as TVs, refrig-erators, and air conditioners. In 2023, it launched the world's ?rst AI platform for smart home appliancesbased on large models, leading the smart home into the era of Arti?cial General Intelligence at a fasterpace. At the same time, in the ?eld of intelligent manufacturing, AI, big data, edge computing, and othertechnologies have been employed to greatly improve the ef?ciency of intelligent manufacturing andaccelerate the process of "intelligent and digital transformation".The Company has further promoted new industrialization and digital transformation, vigorously stim-ulated the high-end, intelligent, green, and integrated development of the manufacturing industry, andcomprehensively implemented intelligent and green upgrading and reconstruction of equipment, produc-tion lines, and factories.
100,000 pieces of data handed persecond
Output per unit area+20% and moreChanghong's "5G +Industrial Internet"is a cross-industryand cross-regionalsharing platformEvery link on theproduction line isinterconnected
Drive the digital transformation and high-quality development of
related industries and upstream and downstream enterprises
The Company has intelligentized 65 manufacturing plants around the world,built Sichuan's ?rst national cross-industry and cross-domain industrial internet platform,and served nearly 100 enterprises in 8 industries
Technology Creates a Better Life5
Per capita output ef?ciency +65%Complete machine FPY +5%Logistics automation rate of 95%Commercial inventory turnover +18%Product production and delivery cycle-50% and more
ESG REPORT 2023
Technology Creates a Better Life
In November 2023, the Changhong Intelligent AI Platform Launch Conferencewith the theme of "Technology Serves Better Life" was held in Mianyang,marking the of?cial launch of Changhong Yunfan AI Platform!
Changhong Yunfan AI Platform has ?ve core capabilities: multi-modal interaction,multi-dimensional perception, multi-level comprehension, multi-task management andcontent association. It provides ?ve innovative scenarios: full-scenario AI dialogue, AImural, oral tutoring, general knowledge quiz and generative content creation. Thismarks Changhong's ?rst application of generative AI on TV terminals. With profession-al training models and self-developed AI technology, the platform is the world's ?rstintelligent home appliance AI platform based on large models, taking the intelligentdevelopment of home appliances to a new stage. Changhong has also released theNearLink TV, the world's ?rst TV with super connectivity. It adopts Chinese innovativecommunication technology, with lower energy consumption, faster speed, less latency,more stable connection, wider coverage and stronger networking capability. It is anintelligent control center of home entertainment, which provides a better entertain-ment experience.
Its "5511" Technological Innovation Platform Construction Project (Jiangxi KeyLaboratory of High-ef?ciency and Energy-saving Compressors) passed the accep-tance by Science and Technology Department of Jiangxi Province on September20, 2023.Relying on the platform, Changhong Huayi Compressor passed relevant project assess-ments, built compressor performance laboratory, compressor material analysis laboratory,compressor reliability laboratory, thermodynamics and ?uid mechanics laboratory, frictionand lubrication laboratory, acoustics laboratory and other high-ef?ciency and energy-sav-ing compressor laboratories, built and industrialized pilot lines for commercial compressorsand high-ef?ciency inverter compressors. It has won 2 provincial and ministerial awards,completed 56 technical patent authorizations, including 10 invention patents, 42 utilitymodels, 4 appearance patents, developed more than 50 new products and processes, andpromoted 36 technology transfer projects.
With its excellent comprehensive digital and intelligent service capabilities,Changhong Jiahua made the list of 2023 "Top 100 Digital Trade Enterprises" of the2nd Global Digital Trade Expo. It was the only Sichuan enterprise on the list.After years of development in the ICT industry, Changhong Jiahua has cooperated withmore than 10,000 core agents and hundreds of brand manufacturers, with strong econom-ic strength and rich service experience. It has professional technical service capabilitiesand advantageous resources in innovative businesses such as cloud application,metaverse and security. It provides strong support and guarantee for the construction anddevelopment of digital trade industry chain.
'With the advantages of provincial technology center and intellectual propertyrights, Changhong Air Conditioner builds a general technology platform andproduct platform through technological innovation and R&D ef?ciency improve-ment. It sticks to energy conservation and environmental protection, focuses onmarket segments, and enhances product competitiveness.
Unlike the traditional wall-mounted air conditioner with single ?ap, the "Double-wing WindSeries" wall-mounted air conditioner adopts innovative technology of independent parti-tioned air supply to realize comfortable asynchronous partitioned air supply. This serieswon the award of 2023-2024 China Air Conditioner Product with Outstanding Comfort andHealth Performance in the China Air Conditioner Industry Summit Forum. The "HighlyPower-saving Series" cabinet adopts composite heat exchange and refrigeration technolo-gy, intelligent dynamic adaptation technology of refrigerant ?ow, and super-largedouble-wing air guide blades. It is the industry's ?rst super-primary inverter cabinet withan energy ef?ciency ratio of 5.07. Industry authorities estimated that it can save morethan 3,000 kWh of electricity within the warranty period.
Through innovation platforms such as national postdoctoral scienti?cresearch workstation, national enterprise technology center and nationalindustrial design center, Changhong Meiling has made consistent efforts todevelop the core technologies of energy conservation, heat dissipation andfreshness preservation.At the launch event of "Glorious Launch of Meiling Frozen Fresh Series Refrigerator" in2023, the frozen fresh series refrigerator was launched, bringing the refrigerator indus-try into a brand-new "Fresh Frozen Era". It pioneers the overhead constant tempera-ture fresh-freezing system. With overhead constant freezing, fresh-keeping soft airand constant-humidity freezing technologies, it masters the key mechanism of thein?uence of temperature changes on food preservation in different temperature zonesthrough research. It solves the bottleneck problems such as severe temperature ?uctu-ations and large temperature rise of defrosting that accelerate quality deteriorationduring food storage. It keeps the core temperature ?uctuation of food within ±0.1°C,prolongs the food preservation period by more than 4 times, keeps the maximum tem-perature rise of defrosting within 12°C, reduces the breeding rate of food bacteria bymore than 50%, reduces volatile basic nitrogen by more than 30%, and increases theretention rate of delicious and nutrient substances by more than 50%. It completelysubverts the technical principle of "repeated freezing with sudden cooling and heat-ing" in traditional refrigerators, realizing "windless and dynamic effects" on the surfaceof fresh meat cells.
Changhong Yunfan AI PlatformChanghong MeilingChanghong HuayiCompressor
Changhong Jiahua
Changhong AirConditioner
Intellectual Property Protection4
The Group has established a complete intellectual property management system under the Enter-prise Intellectual Property Management (GB/T29490) and Intellectual Property Management Manual(QG/JU00.012), to ensure the effective implementation and operation of the Company's intellectual prop-erty management system. The Group has formulated the Patent Management Measures, Patent RiskManagement Measures, Technical Know-how Management Measures, and Copyright ManagementMeasures. It has established a sound patent management system and patent risk management system;clari?ed the patent application procedures, patent risk levels and response process, and patent valuationstandards; protected the right of authorship of service inventors; regularly evaluated the value of grantedpatents and dealt with low-value patents in a timely manner; and shaped an intellectual property incen-tive mechanism tailored to the development needs of the Group. The Group has respected the intellectualproperty rights of interested parties and avoided intellectual property risks, to safeguard the interests ofthe Group and investors to the greatest extent.In 2023, the Company successfully passed the review of "National Intellectual Property Demonstra-tion Enterprise" and was designated as an "Excellent Intellectual Property Cultivation Enterprise in Sich-uan Province". In April 2023, it was awarded the title of "Sichuan Province Guidance Station forForeign-related Intellectual Property Work". The Group now holds 7,466 valid patents. In 2023, it appliedfor 1,247 patents, an increase of 7.6% over 2022, and obtained 811 new granted patents.The Group has ful?lled more social responsibilities in intellectual property rights and graduallypromoted the patent open license system. It has seven patents in intelligent manufacturing and newmaterials made public on government platforms. Open licenses are granted free of charge for the ?rstyear, to facilitate easier access for SMEs to utilize the Company's patented technologies for technicalinnovation and product promotion.
ESG REPORT 2023
ESG REPORT 2023
The Group has 7,466 valid patents,1,247 patent applications in 2023, up 7.6% over 2022; 811
patents granted in 2023
Technology Creates a Better Life5
Rural RevitalizationBoost
The Group has upheld the original mission of "serving the country through industrial development", proactive-ly ful?lled its social responsibility as a state-owned enterprise, and contributed to consolidating and expandingthe achievements of poverty alleviation and effectively connecting them with rural revitalization efforts in talentassistance, educational support, consumer aid, and other ?elds. Promoting Talent Revitalization and NationalUnity Through Increasing People's Con?dence and Helping Them Acquire Knowledge and Skills, which incorporat-ed its experience and practice, was awarded the "2023 Best Practice Case of Rural Revitalization by ListedCompanies" by the China Association for Public Companies. The Company has made great efforts to integrateinternal and external resources and carried out a series of support initiatives closely around the needs of theareas to be assisted.Quality education is fundamental to preventing the intergenerational transmission of poverty and fosteringendogenous capabilities for future development in underdeveloped areas. To help disadvantaged regions devel-op abilities for self-motivated poverty alleviation, efforts should prioritize both increasing people's con?dence andhelping them acquire knowledge and skills while effectively implementing educational development initiatives. In2023, the Company continued its long-term support for talent revitalization. It donated RMB 1 million in educationfunds to areas lifted out of poverty with weak educational infrastructure, aiding in the "One Kindergarten for OneVillage" program and training of teachers in compulsory education. With an investment of RMB 800,000 in 2023,the Company sustained the "Colorful Changhong" study tour campaign (with seven sessions carried out), orga-nizing 192 teachers and students from areas lifted out of poverty to engage in the campaign, with an aim toconsolidate and expand the achievements of poverty alleviation efforts.The Group has taken multiple measures to encourage the consumption of products from assisted areas.Online, the Company's e-commerce platform "Hongchuang Youpin" has opened a special zone to display and selllocal agricultural products from assisted areas; of?ine, it organized the "Journey to the Place of Origin" campaign,to promote products from assisted areas and facilitate consumption through an "Online to Of?ine" approach. In2023, the cumulative amount of purchased and sold agricultural products from assisted areas reached RMB 1.21million.Sichuan Hongxin Software donated the Changhong Smart Campus Video Teaching System worth RMB504,000 to Pingchang County, Bazhong City, and proactively responded to the country's rural revitalizationstrategy, centering on smart agricultural technology to boost agricultural development. In 2023, it invested aboutRMB 8 million in smart agriculture R&D, resulting in 3 granted invention patents, 1 granted utility model patent,and 30 software copyrights in smart agriculture.
In 2023, Sichuan Hongxin Software signed a strategic cooperation agreement with the InformationCenter of the Ministry of Agriculture and Rural Affairs for technological and marketing collaboration in"AI + agriculture", "blockchain + agriculture", and "industrialized intelligent seedling raising". The Com-pany's "Cloud Agricultural Park Platform" was named among the Ministry of Agriculture and RuralAffairs' list of excellent projects for "New Technology, New Products, New Models" in 2023. Its "Intelli-gent IoT Industrialized Seedling Raising System" was selected as a national outstanding case of smartagriculture by the Information Center of the Ministry of Agriculture and Rural Affairs in 2023.Sichuan Hongxin Software has carried out industry-academia-research cooperation projects withthe College of Mechanical and Electrical Engineering of Sichuan Agricultural University. They jointlyapplied for the Sichuan Smart Agriculture Engineering Technology Research Center. Furthermore,Sichuan Hongxin Software, in partnership with Mianyang Academy of Agricultural Sciences, built atesting and technology veri?cation base for smart agriculture products. The agricultural software andhardware products independently developed by Sichuan Hongxin Software have been successivelyutilized in over 20 smart agriculture model projects developed in Mianyang, Guangyuan, and Chengduof Sichuan as well as Ankang of Shaanxi and Tacheng of Xinjiang, with positive market feedback.In 2023, Zhongshan Changhong Electric offered paired-up assistance to Yugan County, JiangxiProvince regarding the rural revitalization and donated RMB 30,000 to aid in the rural construction ofBaimaqiao Township, Yugan County.Lingbayi Electronics Group bolstered its village support team by assigning one ?rst secretary andtwo support of?cials to engage in local rural revitalization efforts. It initiated a "purchase instead ofdonation" assistance project in 2023, purchasing kiwi fruit products worth over RMB 70,000 from Qing-song Village in Shima Town, Cangxi County.In September 2023, Sichuan Changhong NeoNet Technologies donated 10 Changhong 55-inch HDsmart TVs to the Civil Affairs Bureau of Muli County through the Sichuan Provincial Poverty AlleviationFoundation.
Technology Creates a Better Life5
ESG REPORT 2023
ESG REPORT 2023
ESG REPORT 2023
Tax Payment According to Law1Co-construction with Community
Social WelfareImprove
The Group has strictly abided by the Law of the People's Republic of China on the Administration ofthe Levy and Collection of Taxes and other taxation laws and regulations, paid taxes according to law,and made contributions to social public utilities.
The Group has long been focusing on the actual needs of local communities, conducting ongoingnon-pro?t activities for communities in ?elds such as education and caring for the elderly. Through practi-cal actions, it has given back to society, striving to help create a harmonious and civilized community andbuild a peaceful and beautiful living environment.In October 2023, Changhong Kuaiyidian visited a nursing home in Wuhan, to clean household appli-ances and overhaul electrical facilities. In December 2023, it cleaned air conditioners in and sent gifts tothe Mianyang Children's Welfare Institute.Guangdong Changhong Electronics has regularly organized employees to participate in volunteerservices, poverty alleviation, and other public welfare campaigns. In 2023, it encouraged employees todonate RMB 66,000 for colleagues in need due to illness and RMB 50,000 through the Five-person BoatRacing to support local social welfare undertakings.In April 2023, Sichuan Hongxin Software visited the Hongyuan Road Community in the MianyangHigh-Tech Industrial Development Zone to offer volunteer services. Together with the Community staff, itcleaned up plastic waste near the railway bridge and dealt with garbage dif?cult to clean and construc-tion debris in the area. As a result, the outdoor environment around the community was signi?cantlyimproved.
Sichuan Changhong Molding Technology has actively organized voluntary blood donations. In July2023, it organized 69 Party members and non-Party members to donate 24,300 ml of blood.
Sichuan Changhong Package Printing organized a voluntary blood donation in collaboration withMianyang Blood Center in July 2023 and a "garbage sorting" activity in September 2023.
In 2023, Lingbayi Electronics Group assigned more than 40 of?cials and employees to participate involunteer activities for environmental sanitation improvement, realizing the full coverage of "Dual-Unit-ing, Dual-Assistance" in the joint construction of responsible areas.
In 2023, the Group (under consolidated standard) paid more than 2 billionin taxes and fees to the tax authorities
Technology Creates a Better Life
ESG REPORT 2023
Information Security Management
User Information and Privacy Protection
Information SecurityProtect
The Company has passed the ISO 27001 Information Security Management System Certi?cation, andits Data Center Server Room has obtained a Level 3 Certi?cate of National Information Security Classi?edProtection. In terms of information management, it provides security assurance and meets compliancerequirements. During the reporting period, the Company did not experience any information securityincidents.The Company complies with laws and regulations such as the Cybersecurity Law of the People'sRepublic of China and the Data Security Law of the People's Republic of China, promoting the 14thFive-Year Plan for digital transformation. The Company has established an information security manage-ment system with "One Center, Three Systems, and Three Layers of Protection", continuously improvingthe data security management system, consolidating the cybersecurity accountability system, intensify-ing content security control, and reinforcing data and personal information security protection. The Com-pany has set up a three-tier information security organizational structure composed of information securi-ty decision-makers, management, and cybersecurity of?cers from various departments. It is designed tocontinuously improve information security management and protection capabilities and the level of infor-mation security governance, fully ensure business continuity and user data security, and effectivelysupport the Company's digital transformation and upgrading.
Technically, the Company's products have adopted various technologies to protect users' personalinformation, including data encryption technology, network transmission security protocol, secure datastorage, server ?rewall, access control technology, etc., so as to prevent malicious attacks and ensurethat users' personal information will not be illegally acquired, disclosed or tampered with.The Company has strictly complied with relevant laws and regulations on privacy protection, includ-ing Cybersecurity Law of the People's Republic of China, Personal Information Protection Law of thePeople's Republic of China, and Information Security Technology — Personal Information Security Speci?-cation, to ensure that users' personal information is fully protected from infringement. The Company hasissued the Changhong User Privacy Policy and updated it in real time according to national laws and localpolicies. The Policy details the use, protection, storage and deletion of personal information, so that userscan fully understand their rights and obligations and user information is used within the scope of autho-rized use. The Company has signed the Cybersecurity Responsibility Statement with third-party compa-nies and required them to ensure the security of users' personal information.The Company has released management regulations to prevent employees from misusing user infor-mation, limit employees' access rights to personal information, strengthen internal management, andensure the security of users' personal information. It has also strengthened employees' training on priva-cy protection knowledge to strengthen their awareness of protecting user privacy.Build a defense-in-depth cybersecurity system, implement classi?cation and hierarchical man-agement of industrial data, continuously promote cybersecurity risk governance, and preventmajor cybersecurity incidents.Promote the cybersecurity certi?cation work through cybersecurity protection certi?cation,cybersecurity product certi?cation and cybersecurity talent certi?cation.Conduct cybersecurity education and training, formulate an information security training planfor all employees, regularly implement various training activities on information security andprivacy protection, organize regular cybersecurity emergency drills, and continuously enhancethe awareness of information security protection among all employees.
The Company has continuously enhanced the network and data security protectionthrough security management, security certi?cation and security education
Technology Creates a Better Life
ESG REPORT 2023
False Communication Avoidance1
Marketing and PublicityPromote
The Company has resolutely prevented the spread of false information and protected consumers'rights and interests. Relying on branches across the country, it has authorized intellectual propertylawyers nationwide to build a national monitoring and rights protection network system, and integratedcomprehensive rights protection measures covering civil, criminal and administrative complaints. It hasalso applied big data and other information technologies, created a one-stop closed-loop rights protec-tion service system combining monitoring, litigation and punishment, built a long-term mechanism forrights protection, and carried out brand rights protection and anti-counterfeiting work with constant andinnovative efforts. In 2023, the Company acquired more than 200 infringement clues through proactiverights protection and counterfeiting, reporting, etc., more than 180 clues of selling infringing products one-commerce platforms, and more than 10 clues of selling infringing products of?ine, with 70 lawsuits ?ledwith the court.The Group has released management regulations for brand publicity and media communication,such as Regulations for the Management of Release and Transmission of News Public Opinions, Mea-sures for the Management of Self-owned New Media, Regulations for the Management of NetworkImage Carriers, Bottom Line List for External Communication, and Measures for the Management ofForeign Press Spokespersons, to systematically standardize communication in terms of content, form andplatform and ensure information security and accurate communication.
Marketing and Publicity2Through new media layout, new scenario marketing and new technology application, the Companyhas continuously delivered products and services that meet customer needs to consumers in an innova-tive and responsible way. Through online and of?ine user operation, it has performed word-of-mouthmarketing, improved brand reputation, and publicized high-quality development highlights, thus creatinga technology powerhouse image and enhancing its brand in?uence. In 2023, Changhong's brand valuejumped to RMB 203.968 billion, exceeding RMB 200 billion for the ?rst time. It ranked 285th among theWorld's Top 500 Brands, and its ranking is still improving.With the theme of "Technology Creates a Better Life", the Company has planned a series of publicopinion events and topics in combination with its development and industry hotspots. With the help ofin?uential media and self-media matrix, the Company has frequently released its development informa-tion to the audience to enhance their con?dence in its development and further improve its good corpo-rate image.
In 2023, the Company adhered to the basic idea of "focusing on core ?elds and extending to multipledimensions", continued its sports marketing strategy and cooperation with the national badminton team,and leveraged the popularity of major international events, professional top events and marketing nodesto enhance its brand in?uence.
Technology Creates a Better Life5
ESG REPORT 2023
BRI DevelopmentAdvance
3 overseas R&D bases6 overseas manufacturing bases
Vietnam
Indonesia
PakistanCzech RepublicSpainUSA
Mexico
Technology Creates a Better Life
The year 2023 marked the 10th anniversary of BRI. TheGroup has adhered to the path of international develop-ment, actively responded to BRI, expanded economiccooperation relations with international partners, and builta win-win, green and low-carbon community of sharedinterests and responsibilities. Nowadays, the Group hasbecome a global comprehensive technology enterpriseintegrating R&D and manufacturing of consumer electron-ics and core components. With 10 R&D bases and 16 manu-facturing bases, its products and services have beendelivered to more than 160 countries and regions, withmore than 200 million users. Together with internationalpartners, it has promoted the orderly and free ?ow ofeconomic factors, ef?cient allocation of resources and deepintegration of markets across all regions. The Group hasformulated a long-term overseas business developmentplan. By contributing to the BRI development, the Companyhas achieved remarkable results in overseas businessdevelopment.Guangdong Changhong Electronics has activelyresponded to the national strategy of BRI, created a strate-gic market layout covering Europe with the Czech Republicas the foothold, and established overseas subsidiaries andbusiness entities along the main route of BRI. In 2023, itachieved an export revenue of RMB 7.412 billion, mainly toIndia, Brazil, the USA, the UAE, etc.In 2023, Zhongshan Changhong Electric achieved anexport revenue of RMB 3.46 billion, including about RMB
1.53 billion from BRI countries, covering 41 countries and
regions such as the UAE, Saudi Arabia, Indonesia, Vietnam,Kazakhstan, India, Pakistan and Qatar.
In 2023, the Company achieved international brandbusiness trade volume of over RMB 2 billion and overseastax payment of nearly RMB 120 million. In the Europeanmarket, the Company's international business teamconcentrated superior resources to advance channeldevelopment through "boosting of?ine business with onlinebusiness and B2B mode with B2C mode". Its annual salesrevenue reached RMB 348 million, up 95% year on year. InAustralia, the Company fully cooperated with three nation-al chain channels. Its TV and refrigerators entered keychannels for the ?rst time, online AOL increased by 80%year on year, and a multi-dimensional channel system wasbasically established. In the Indonesian market, the Compa-ny's white goods sales increased by 73% year on year. TheCompany has implemented the strategy of talent localiza-tion in overseas companies, and recruited a large numberof local employees, especially front-line sales personnel andproduction and manufacturing workers. This year, it provid-ed nearly 800 jobs for the local people and created a largenumber of employment opportunities for the local society.
ESG REPORT 2023
Technology Creates a Better Life
In December 2023, CHiQ launched its overseas brandinitiative "Smart with Style". "Smart with Style" implies thatCHiQ creates a smart and stylish home life for consumers,and allows them to enjoy a better and more comfortablelifestyle with CHiQ products. CHiQ aims to meet consumerneeds, focuses on product innovation and design, constant-ly upgrades products, and improves consumers' home lifeexperience with intelligent technology.
Launched in 2014, CHiQ is a differentiated and new intelligent product series based on the home internet and Changhong's intelligent strategic layout,with the brand concept of "Let Imagination Happen". It is the core carrier of Changhong's intelligent strategy. In 2017, CHiQ entered the overseas market asan independent brand and made its debut in Australia. In recent years, CHiQ has entered Europe, Southeast Asia, the Middle East and other regions. Up tonow, it has entered more than 40 countries and regions. CHiQ has established solid partnerships with many internationally renowned enterprises, andestablished presence through more than 30 mainstream e-commerce platforms, including Amazon in Europe, Lazada and Shopee in Southeast Asia. InNovember this year, CHiQ announced its partnership with the FIS Freestyle Ski World Cup and sponsorship of the German Ski Association (DSV), andappointed world champion Viktoria Rebensburg as its brand ambassador. This is another sports marketing action of CHiQ after sponsoring the well-knownfootball team Borussia Dortmund. With international events as brand endorsement, it enhances channel and consumer trust in the brand, and furtherimproves brand awareness and in?uence.In the future, the Group will further strengthen its brand con?dence, adhere to the development strategy of "brand globalization", and bring consumersa smart and stylish lifestyle. In this way, it will become a world-renowned brand and a contributor to the BRI development.
Appendix I: GRI Content Index
ESG REPORT 2023
ESG REPORT 2023
Technology Creates a Better LifeIndex
GRI StandardsImportant Issues Location and Description
Disclosure 201-1 Direct economic value generatedand distributedDisclosure 201-2 Financial implications and other risksand opportunities due to climate changeDisclosure 201-3 De?ned bene?t plan obligations
GRI StandardsImportant Issues Location and Description
and other retirement plansDisclosure 203-1 Infrastructure investmentsand services supportedDisclosure 203-2 Signi?cant indirect economic impactsDisclosure 204-1 Proportion of spending on local suppliersDisclosure 205-2 Communication and trainingabout anti-corruption policies and proceduresDisclosure 205-3 Con?rmed incidents ofcorruption and actions takenDisclosure 206-1 Legal actions for anti-competitive behavior,anti-trust, and monopoly practicesDisclosure 207-2 Tax governance, control and riskmanagementDisclosure 207-3 Stakeholder engagement and managementconcerns related to taxDisclosure 301-1 Materials used by weight or volumeDisclosure 301-2 Recycled input materials usedDisclosure 301-3 Reclaimed products and theirpackaging materialsDisclosure 302-1 Energy consumption within the organizationDisclosure 302-2 Energy consumption outsideof the organizationDisclosure 302-3 Energy intensityDisclosure 302-4 Reduction of energy consumptionDisclosure 302-5 Reductions in energy requirements ofproducts and services
GRI 201: Economic Performance 2016
GRI 203: Indirect EconomicImpacts 2016GRI 204: Procurement Practices 2016GRI 205: Anti-corruption 2016GRI 206: Anti-competitiveBehavior 2016GRI 207: Tax 2019GRI 301: Materials 2016
GRI 302: Energy 2016
Disclosure 2-1 Organizational detailsDisclosure 2-2 Entities included in the organiza-tion's sustainability reportingDisclosure 2-3 Reporting period,frequency and contact pointDisclosure 2-4 Restatements of informationThe organization did not have anyrestatements during the reportingperiod.
The Company did not have anymajor violations of laws andregulations during the year.
Disclosure 2-6 Activities, value chain and otherbusiness relationshipsDisclosure 2-7 EmployeesDisclosure 2-9 Governance structure andcompositionDisclosure 2-11 Chair of the highestgovernance bodyDisclosure 2-12 Role of the highest governance body inoverseeing the management of impactsDisclosure 2-13 Delegation of responsibility formanaging impactsDisclosure 2-14 Role of the highest governance body insustainability reportingDisclosure 2-15 Con?icts of interestDisclosure 2-16 Communication of critical concernsDisclosure 2-17 Collective knowledge of thehighest governance bodyDisclosure 2-19 Remuneration policiesDisclosure 2-20 Process to determine remunerationDisclosure 2-22 Statement on sustainabledevelopment strategyDisclosure 2-23 Policy commitmentsDisclosure 2-24 Embedding policy commitmentsDisclosure 2-26 Mechanisms for seeking advice andraising concernsDisclosure 2-27 Compliance with lawsand regulationsDisclosure 2-29 Approach to stakeholderengagementDisclosure 2-30 Collective bargaining agreementsDisclosure 3-1 Process to determinematerial topicsDisclosure 3-2 List of material topicsGRI 3: Material Topics 2021
GRI 2: General Disclosures 2021
ESG REPORT 2023
Technology Creates a Better Life
Disclosure 403-1 Occupational health and safetymanagement systemDisclosure 403-2 Hazard identi?cation, risk assessment,and incident investigationDisclosure 403-3 Occupational health servicesDisclosure 403-4 Worker participation, consultation, andcommunication on occupational health and safetyDisclosure 403-5 Worker training on occupational healthand safetyDisclosure 403-6 Promotion of worker healthDisclosure 403-7 Prevention and mitigation of occupational healthand safety impacts directly linked by business relationshipsDisclosure 403-8 Workers covered by an occupationalhealth and safety management systemDisclosure 403-9 Work-related injuriesDisclosure 403-10 Work-related ill healthDisclosure 404-2 Programs for upgrading employee skillsand transition assistance programsDisclosure 405-1 Diversity of governance bodiesand employeesDisclosure 413-1 Operations with local community engage-ment, impact assessments, and development programsDisclosure 414-1 New suppliers that were screenedusing social criteriaDisclosure 416-1 Assessment of the health and safetyimpacts of product and service categoriesDisclosure 416-2 Incidents of non-compliance concerning thehealth and safety impacts of products and servicesDisclosure 417-1 Requirements for product and serviceinformation and labelingDisclosure 417-2 Incidents of non-compliance concerningproduct and service information and labelingDisclosure 417-3 Incidents of non-compliance concerningmarketing communicationsDisclosure 418-1 Substantiated complaints concerningbreaches of customer privacy and losses of customer data
GRI 403: Occupational Healthand Safety 2018
GRI 404: Training and Education 2016GRI 405: Diversity and EqualOpportunity 2016GRI 413: LocalCommunities 2016GRI 414: Supplier SocialAssessment 2016GRI 416: Customer Healthand Safety 2016GRI 417: Marketing and Labeling 2016
GRI 418: Customer Privacy 2016
Disclosure 303-1 Interactions with water as a sharedresourceDisclosure 303-2 Management of waterdischarge-related impactsDisclosure 303-3 Water withdrawalDisclosure 303-4 Water dischargeDisclosure 303-5 Water consumptionDisclosure 304-1 Operational sites owned, leased,managed in, or adjacent to, protected areas and areasof high biodiversity value outside protected areasDisclosure 304-2 Signi?cant impacts of activities,products and services on biodiversityDisclosure 304-4 IUCN Red List species and nationalconservation list species with habitats in areasaffected by operationsDisclosure 305-1 Direct (Scope 1) GHG emissionsDisclosure 305-2 Energy indirect (Scope 2)GHG emissionsDisclosure 305-4 GHG emissions intensityDisclosure 305-5 Reduction of GHG emissionsDisclosure 305-6 Emissions of ozone-depletingsubstances (ODS)Disclosure 305-7 Nitrogen oxides (NOx), sulfur oxides(SOx), and other signi?cant air emissionsDisclosure 306-1 Waste generation and signi?cantwaste-related impactsDisclosure 306-2 Management of signi?cantwaste-related impactsDisclosure 306-3 Waste generatedDisclosure 306-4 Waste diverted from disposalDisclosure 306-5 Waste directed to disposalDisclosure 307-1 Non-compliance with environ-mental laws and regulationsDisclosure 308-1 New suppliers that were screenedusing environmental criteriaDisclosure 401-1 New employee hires andemployee turnoverDisclosure 401-2 Bene?ts provided to full-time employeesthat are not provided to temporary or part-time employeesDisclosure 401-3 Parental leave
GRI 303: Water and Ef?uents 2018
GRI 304: Biodiversity 2016
GRI 305: Emissions 2016
GRI 306: Waste 2020
GRI 307: Environmental ComplianceGRI 308: Supplier EnvironmentalAssessment 2016GRI 401: Employment 2016
GRI StandardsImportant Issues Location and DescriptionGRI StandardsImportant Issues Location and Description
ESG REPORT 2023
Technology Creates a Better Life
Dear readers,Thank you for reading this report. In order to continuously improve our ESG work and further enhance oursustainability management, we sincerely invite you to answer the relevant questions in the feedbackform. Your opinions will help us continuously improve our ESG work and further enhance our sustainabili-ty management. Thank you for your strong support!
1. Your identity for Sichuan Changhong is:
□ Investor and shareholder □ Employee □ Supplier □ Customer
□ Industry association or research institution
□ Public welfare organization and community organization □ Media
□ Government or regulatory agency □ Others (please specify)
2. What do you think of our ESG Report?
□ Very good □ Good □ Ordinary □ Bad □ Very bad
3. What do you think of the report structure?
□ Very good □ Good □ Ordinary □ Bad □ Very bad
4. Do you have any other suggestions for our ESG work and this report?
_______________________________________________________________________________
Feedback FormAppendix II: Index of Reference Index System Content
Corporate Pro?leDevelopment CourseCorporate CultureCorporate HonorsOperating PerformanceIdenti?cation of Key Topics2023 ESG Key PerformanceConduct Internal AuditEncourage Fair CompetitionBene?t StakeholdersAddress Climate ChangePreserve Biodiversity
Boost Rural RevitalizationImprove Social WelfareProtect Information SecurityAdvance BRI DevelopmentIndex TableFeedback Form
About SichuanChanghongChairman's MessageBoard of DirectorsStatement
ESG ManagementStrategyChanghong Rises as aWell-managed Business
Changhong Builds aGreen Home
Appendix
2-1/2-62-12-12-12-16/3-1/3-2/3-32-9/2-11/2-12/2-10/2-19207-2/205-1/205-2/205-3206-1//203-2302-1/302-2/302-4/303-1//303-2/303-3/303-3/303-4/303-5303-2/305-4/305-6/305-7/306-1/306-2/306-3/306-4/306-5
201-3/202-2/401-1/401-2/401-3/408-1/409-1/403-1/403-3/403-6/403-7/403-8/403-9/403-10/404-1/404-2/406-1
305-1/305-2/305-4/305-5305-1/305-3304-2307-1204-1/308-1/414-1416-1/416-2302-1/302-4415-1/203-1418-1417-3//
//
/
G1.1/ G1.2/ G.1.2.2/ G1.2.3/ G1.3.1/G1.3.2/G1.3.3G5.1.1/ G5.1.2/ G5.1.3/ G5.2.1/ G5.2.2/ G5.2.3/ G2.1.2G2.1.1G2.2.1/ G2.2.2G2.3.1/ G2.3.2G4.1.1/ G4.1.2/ G4.2.1G3.1.1/ G3.1.2/ G3.1.3/ G3.2.1/ G3.2.2/ G3.2.3E.5.5.1/ E.5.5.2/ E.5.5.3/ E.5.6.1/ E.5.3.1E.1.1.1/ E.1.1.2/ E.1.1.3/ E.1.1.4/ E.5.2.1/ E.1.2.1/ E.1.2.2/E.1.4.1/ E.5.2.2/ E.1.3.1/ E.1.3.2/ E.1.3.4/ E.5.2.3E.2.1.1/ E.2.1.3/ E.2.1.4/ E.2.1.5/ E.2.1.2/ E.2.2.1/ E.2.2.2/E.2.2.3/ E.2.2.4/ E.2.2.5/ E.2.3.1/ E.2.3.2/ E.2.3.4E.3.1.2/ E.3.2.1/E3.2.2/ E.3.3.1/ E.3.3.2E.5.4.1/ E.5.4.2/ E.5.4.3/ E.5.4.4/ E.5.4.5/ E.5.4.6E5.6.1/5.6.2E4.1.1E.5.6.2S1.1.1/ S1.1.2/ S1.1.3/ S1.2.1/ S1.2.2/S1.2.3/ S1.2.4/ S1.3.1/S1.3.2/S1.3.3/ S1.3.4/ S1.4.1/ S1.4.2/ S1.4.3/ S1.5.1/ S1.5.2/S1.5.3/S3.1.1/ S3.1.2/ S3.2.1/ S3.2.2/ S3.2.3S2.1.1/ S2.1.2/ S2.1.3/ S2.1.4S2.2.1/ S2.2.2/ S2.3.1/ S2.3.2/ S2.3.3/ S2.3.4/S4.4.2S4.3.1/ S4.3.2S2.2.3S4.4.3//
Main HeadingSub-heading
Reference Indicator System for ESG Report of Listed Compa-nies Controlled by Centrally-administrated SOEsGRI StandardsAbout ESG Report2-1/2-2/2-3
2-62-22/2-17
G1.2.1
/
//
///////
//
Build SustainableGovernance SystemStrengthen Compliance
Contact Information:
Tel.: 0816-2418436
E-mail: 600839@changhong.com
Risk ControlEnsure Clean and HonestAdministrationStandardize InformationDisclosureImprove EnvironmentalProtection SystemSeek Revenue Increase andExpenditure ReductionEnhance PollutionPrevention and ControlDisplay Green EnvironmentalProtection AchievementsIdentify Environmental Risksand OpportunitiesAvoid EnvironmentalViolationProtect EmployeeRights and SafetyCreate TransparentSupply ChainEnsure Product Safetyand Service QualityAccelerate Innovation-ledDevelopmentPromote Marketingand Publicity