EnvironmentalSocialGovernanceAppendixTable of ContentsDajin Heavy Industry
Table of Contents2 About the Report3 Letter from the Chairman4 About Us4 Company Pro?le5 Business Scope8 Road to Sustainable Development
8 Sustainable Development Milestones9 Sustainable Development Governance10 Materiality Assessment of MaterialSustainability Issues12 Key Measures and Key Performance of
Sustainable Development in 202369 Appendix69 Other Sustainable Development KPIs70 GRI Index
Environmental
16 Accelerating the Low-carbon andEnergy-saving Transition
17 Reducing the Production Carbon Footprint21 Contributing to the Low-carbon Transitionof Society24 Theme on TCFD - Climate-related Risks
and Opportunities27 Boosting Ecologically HarmoniousDevelopment27 Reducing Environmental Impacts32 Promoting Circular Economy
Social34 Pursuing High-Quality Productsand Services35 Controlling the Product Quality Strictly39 Providing High-Quality Services42 Securing Employee Health and Safety
43 Safety Management System45 Safety Management Measures47 Promoting Safety Awareness48 Creating a Harmonious Workplace48 Protecting Employees’ Rights and Interests52 Boosting Employee Development55 Advocating Employee Care
56 Building a Sustainable Supply Chain56 Supplier Management System57 Supplier Management Process
Governance59 Corporate Governance Structure61 Compliant operation of the “threemeetings” and transparent information62 Compliance Management63 Internal Control and Risk Management64 Business Ethics and Anti-corruption65 Business Ethics Governance68 Information Security and Privacy Protection
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About the Report
Reporting ScopeThe Report covers Dajin Heavy Industry and its subordinateproduction facilities and wind farms. The ?nancial datadisclosed herein comes from the annual report of theCompany while other data comes from internal statistics.The standards applied for the calculations that are involvedin this regard have been indicated in the Report. Unlessotherwise stated, the currency in the Report is denominatedin CNY.
Reporting PeriodThe information and data contained in the Report coversthe period from 1 January 2023 to 31 December 2023(hereinafter “2023” or “this year”). For the comparability andcompleteness of the Report, the period has been extendedforward and backward as appropriate.
Basis of PreparationThis Report is prepared in accordance with the ShenzhenStock Exchange Guidelines No. 1 for Self-disciplineRegulation of Listed Companies-Standardised Operationof the Companies Listed on the Main Board (2023) issuedby the Shenzhen Stock Exchange in China, and withreference to the Sustainability Reporting Guidelines (GRIStandards) issued by the Global Reporting Initiative (GRI),the Recommendations of the Task Force on Climate-relatedFinancial Disclosures (TCFD), and the United NationsSustainable Development Goals (UN SDGs).
This Report is the ?rst sustainability report(“the Report”) published by Dajin HeavyIndustry Co., Ltd. (hereinafter “Dajin HeavyIndustry”, “Dajin”, “the Company” or “We”).The Report is intended to disclose theCompany’s achievements on sustainabledevelopment and management performancein Environmental, Social, and Governance(hereinafter “ESG”) objectively andtransparently, helping stakeholders to betterunderstand our business.
E-mail: djsustainability@dajin.cnTel: +86 (10) 57837709Address: Room 1102, East Tower, Zhonghaireal estate Plaza, courtyard 8, West Binhe Road,Yongdingmen, Dongcheng District, Beijing, China
FeedbackThis Report can be downloaded and viewed on theCompany’s website www.dajin.cn. If you have any feedbackor suggestions on the Report or would like to access otherrelevant information, please contact us via:
Terms and De?nitionsAbbreviationFull namePenglai Facility
Penglai Dajin Offshore HeavyIndustry Co., LtdFuxin FacilityDajin Heavy Industry Co., Ltd.ZhangjiakouFacility
Zhangjiakou Dajin Wind PowerEquipment Co., Ltd.Yangjiang Facility
Yangjiang Dajin Wind Power OceanEngineering Technology Co., Ltd.Xing An’mengFacility
Xing An’meng Dajin Heavy IndustryCo., Ltd.
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Letter from the Chairman
Pursuing sustainable development has become acritical issue for enterprises and the society globally.However, it is not a feat that can be accomplishedimmediately by any enterprises. Throughout themore than two decades of development at DajinHeavy Industry, we have consistently pondered howto build a more sustainable operational mechanism,while utilizing our products and services to assist thesociety in achieving sustainable development.In 2006, we delivered our ?rst onshore wind towerproduct. Nowadays, we have become a world-leading manufacturer of offshore wind powerequipment including towers, offshore foundationsand other steel structures. Guided by the missionof “sailing towards a sustainable and greenerfuture”, we strive to contribute to society’s transitiontowards a low-carbon economy with our high-qualitydelivering solutions and technological innovations. In
recent years, we have accelerated the deployment ofclean energy, and achieved a total green electricitygeneration of 400 million kWh in 2023, helping thesociety reduce greenhouse gas emissions by about228,000 tons of CO
e.In 2023, to further promote the company’ssustainable development process, we prepared toestablish a Strategy and Sustainability Committeeand steadily expand our strategic footprints indeepening the industrial chain of clean energyinvestment and development, as well as the researchand development of deep-water ?oating foundations.We aim to contribute the “Dajin power” to the globaleffort of achieving sustainable development. Weare also committed to keep reducing the carbonfootprint of our products, adopting productiontechnologies with lower carbon emissions, andpromoting the application of “green steel” in our
products. Additionally, we are working with suppliersto jointly develop more low-carbon production andtransportation solutions for wind energy equipment.This report marks the ?rst sustainability reportdisclosed by Dajin Heavy Industry, aiming topublicly and transparently showcase our progressand achievements on the path towards sustainabledevelopment. Our goal is to provide our stakeholderswith a deeper insight into our sustainabledevelopment endeavours, offering a closer look atDajin Heavy Industry’s commitment to fostering a low-carbon transition for our company, the wider industry,as well as the entire society.Jin XinChairman
We are fortunate to coincide with the wave of rapid development of new energyworldwide. Adhering to the love of steel structure products, in the process ofpromoting clean energy to improve the living environment of human beings, Dajin people
adhere to the ideals, contribute to the power and create value. Since we are doing it,
we will do our best and do it to the utmost.
Build theFOUNDATION ofa Sustainable World
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Company Pro?leAbout Us
Zhangwu 250MW Wind Farm, which was investedand developed by the Company, was successfullyconnected to the grid for power generation, achievinga power generation of 400 million kWh from April tothe end of this year.In addition, the Company has promoted the scopeof business distribution throughout the industrialchain, such as investing in clean energy, and takingresearch in deep-water ?oating foundations. Thesebusiness segments are rapidly becoming a newpower to the Company's sustainable and healthydevelopment.
Dajin Heavy Industry Co., Ltd. was founded in Fuxin,Liaoning Province, China in 2000 and listed on theMain Board of the Shenzhen Stock Exchange in 2010(Stock Code: 002487). The Company is the ?rst listedcompany in the domestic wind power tower industry.The Company is mainly engaged in the manufacturingof wind power equipment, and its main productsinclude towers, transition pieces, monopiles, deepwater jackets, ?oating foundations, and offshorebooster stations for offshore and onshore windpower. With more than 20 years of experience in theindustry, Dajin Heavy Industry ranks among the toptier of global wind power equipment manufacturers.The Company is the ?rst Chinese supplier deliveringoffshore tower (14.7MW) to Europe and the ?rstAPAC supplier supplying XXL Monopile (14.7MW) toEurope. By the end of 2023, our cumulative deliveriescan support the installation of wind power with areached capacity of 40GW. In April 2023, the Fuxin
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Business ScopeAdhering to the vision of “Sailing Towards a Sustainable and Greener Future” and “From Dajin tothe World, From Good to Great”, Dajin Heavy Industry is committed to providing customers withcompetitive, safe and reliable products, as well as systematic solutions for industry-related servicesand operations. In the future, the Company will unswervingly adhere to the offshore & overseasstrategy and the globalization strategy to deepen the layout of offshore and overseas wind power.The Company strengthens its global competence forged in over ten years in the industry, andpromotes the further implementation of the offshore & overseas strategy. We participate in globalcompetition and further take advantage of more advanced technology, larger production capacity,faster logistics, and lower cost to lead the industry, and create a “Dajin Ecosystem”.
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Dajin Heavy Industry
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Business FootprintsThe Company has over 40member companies in Europesuch as Germany and Poland,and domestic provinces andcities such as Liaoning, InnerMongolia, Hebei, Shandong,Guangdong, with customers andsales networks across over 30countries and regions.
Canada
PhilippinesPakistanTurkeyGreeceItaly
FranceNetherlands
Republic of Montenegro
Ethiopia
South Africa
Australia
DenmarkNorway
FinlandSweden
The Dominican RepublicMexicoJapanChina
UK
Germany
VietnamThailandIndia
SalvadorPanamaColumbiaPeru
ArgentinaChile
The First Exporting Offshore Tower Project to Europe
Dajin’s recorded Largest Offshore Monopile Project
First GE project exporting to India
First Vestas Exporting Project
First Japanese Project
First Exporting Offshore Tower Project
The First Exporting Offshore Foundations to Europe.2022 UK Moray WestQTY: 12Product Type: Offshore TowerMax Dia: 7500mm
2023 German NordseeclusterQTY: 104 MPsProduct Type: MonopileTotal Capacity: 1.6GW
2018 GE India Wind FarmQTY: 17Product Type: Onshore TowerMax Dia: 4556mm
Typical performancesOther countries with track record of projects
2017 Tailand WEH KRS ThreeQTY: 15Product Type: Onshore TowerMax Dia: 6400 mm
2021 Japan Noheji Wind FarmQTY: 2Product Type: Onshore TowerMax Dia: 5500 mmFirst Domestic Offshore Tower Project
The Largest Domestic Offshore Foundation Project
First Domestic Monopile Project2015 Binhai H1# offshore WindFarm-towerQTY: 15Product Type: Offshore TowerMax Dia: 5500 mm2022 Southern Shandong Penin-sula-V monopileQTY: 26Product Type: MonopileMax Dia: 8400 mm
2015 Xiangshui offshore Wind
Farm-Foundation
QTY: 35
Product Type: Monopile
Max Dia: 6042 mm
2020 Vietnam Binh Dai offshore Wind Farm-towerQTY: 15Product Type: Offchore TowerMax Dia: 5500 mm
2022 UK Moray WestQTY: 48Product Type: MonoplieMax Dia: 10000mm
Dajin has established a robust overseas business presence,exemplifying its global expansion and strategic development initiatives.
We have delivered 110 GW structure products in domestic and overseas market with morethan 20 years of energy industry experience. Dajin is ready to make waves in the growing
offshore wind market, unlocking numerous.
Thermal Power PlantsSteel Structures
Onshore TowersOffshore MPs/TPs/Towers
GW
GW
GW
Dajin Heavy Industry
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Business Scope
Manufacturing Sectors
The wind power equipment manufactured by theCompany includes onshore and offshore towers,monopiles, transition pieces, jackets, ?oatingFoundations. At present, the Company has 7production facilities (2 in progress) and 3 ports(2 in progress) across the country, with an annualproduction capacity of over 2 million tonnes.
Renewable Energy Investment
The Company is actively developing renewableenergy investment and development business to diginto the development of the industrial chain. Currently,the electricity generated from one wind farms of theCompany have been connected to the grid, with aninstalled capacity of 250MW. We will build TangshanCaofeidian 250MW Aquaculture-PV ComplementaryProject in 2024 and plan to build several renewableenergy projects in the next three years.
Self-operated InternationalShipping Fleet
To protect the environment and reduce transportationcosts, the Company invests in an internationalshipping ?eet for transporting XXL products,providing more value-added services to customers’supply chains.
Business Sectors and FacilitiesBusiness SectorsName of facilities/industrial parks/projectsOffshore Wind Power Equipment Manufacturing
Penglai Offshore Facility and PortsYangjiang Offshore FacilityPanjin Offshore Facility and Ports (in progress)Tangshan Offshore Facility and Ports (in progress)Onshore Wind Power Equipment Manufacturing
Liaoning Fuxin Production FacilityHebei Zhangjiakou Production FacilityInner Mongolia Xing An’meng Production FacilityRenewable Energy Development
Fuxin Zhangwu Xiliujiazi Power New Energy Co., Ltd.Tangshan Caofeidian 250MW Aquaculture-PV Complementary Project (?led)Self-operated International Shipping FleetPanjin Offshore Facility (in progress)
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Road to Sustainable DevelopmentSustainable Development Milestones
Delivered the ?rst domesticoffshore tower project andthe ?rst domestic monopileproject.
Became approved supplier for?rsted, one of the world’s largestwind power energy developer.Delivered the ?rst exportingoffshore tower.Zhangjiakou & Xing An’mengOnshore wind power manufacturingfacilities were put into operation.
2023
Started the transformation from a traditionalenergy equipment manufacturer to a cleanenergy equipment manufacturer, and wedelivered the ?rst onshore tower project inthis year.
20062015
Became approved supplier forEnvision Energy and Vestas(Vestas MK10), as well as for GE.Established a subsidiary inHamburg, Germany and started anew journey to globalisation.
2016-20192020-2021
Penglai Offshore Facility was fully upgradedto the world’s largest offshore wind powermonopile export facility.Produced and delivered the world’s largestoffshore wind power monopile, with themaximum diameter of 10M, the maximumunit weight of 2,014T, and the maximumplate thickness of 115mm.Invested and constructed the TangshanOffshore Facility, aiming to supply cutting-edge products to the offshore wind powermarkets of developed countries in the nextdecade.
Yangjiang Facility was of?cially put into operationwith wind power products covering onshore andoffshore towers and jackets, and being deliveredto Guangdong, Guangxi, Fujian, Zhejiang Provincein domestic markets, as well as South-east Asia,South America and Europe in overseas markets.
Fuxin Zhangwu 250MW Onshore Wind Farmwas connected to the grid. The TangshanCaofeidian 250MW Aquaculture-PVComplementary Project was also ?led.As the only exhibitor from China’s offshorewind power industry, Dajin Heavy Industrydebuted at the Global Offshore WindExhibition in London, UK with its coreproducts and technical achievements withthe slogan of “Sail with the wind”.
Established the Shipping BusinessDivision to build special transport vesselsat Panjin Offshore Facility and form aprofessional transport ?eet. Pioneered the“Vertical Shipment” proposal to constructa global logistics system.The Company actively developed thenext-generation ?oating foundations foroffshore wind development, laying outDajin’s third growth curve.
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Sustainable Development GovernanceThis year, we prepared to upgrade theDevelopment and Strategy Committeeto the Strategy and SustainabilityCommittee to fully implement thetop-down governance structureof sustainable development. Wehave established a sustainabilitymanagement system involving theBoard of Directors, the Strategy andSustainability Committee, and relevantdepartments. Besides, we have alsoset up a Sustainable DevelopmentTask Force to assist the Strategy andSustainability Committee in formulatingrelevant policies and systems topromote strength of implementation ofsustainable management measures.
? Carry out relevant work in accordance with theCompany’s sustainability management strategy toensure the implementation of sustainable developmentmeasures.? Collect sustainability-related KPIs and report on theprogress of sustainable development on a regularbasis.
? Develops the Company’s long-term vision, mission,and strategy for sustainable development. Throughmonitoring and evaluation, ensures the advancement ofthe Company’s strategy and the consistency betweenthe strategy and the progress of implementation. Alsotakes responsibility to ensure the compliance andinformation transparency in sustainable development.? Monitors sustainability-related commitmentsand performance, and assesses the Company’ssustainability-related risks.? Conducted regular reports which are delivered tothe Board of Directors on matters and progress ofsustainable development issues.
? Guides different Company departments torespond to sustainable development issuesactively. It also coordinates internal and externalresources, responds to global climate-relatedinitiatives, identi?es compliance risks, and exploressustainability opportunities to enhance the Company’scompetitiveness in achieving sustainable development.? Pays attention to updates from customers, partners,
and the industry regarding sustainability developmentand formulates work plans to respond to the focus fromstakeholders about the sustainable development of theCompany.? Provides sustainability-related training to alldepartments of the Company, as well as shares anddiscusses the progress of and impacts on the businessfrom sustainability-related issues with departments.
SustainableDevelopmentTask Force
? Reviews and approves the Company’s vision, mission, and strategy for sustainable development. The highest
decision-making body and responsible for sustainable development reports, and for the disclosure of sustainabledevelopment information.? Listens to the progress in conducting sustainable development reports.? Supervises the Company’s management and implementation of sustainable development.Board ofDirectors
Strategy andSustainability
Committee
RelevantDepartments
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Key Stakeholders andCommunication Channels
Materiality Assessment of Material Sustainability Issues
We actively listen and respond to theexpectations of stakeholders. Basedon our business and operations, weidentify the stakeholders as listed in thetable below and establish diversi?edand unimpeded communicationchannels, integrating stakeholders’feedback into the Company’ssustainable development decisionseffectively.
Domestic andoverseascustomers
Business cooperation, undertaking audits,on-site inspections, customer service hotline,customer satisfaction surveys, customermeetings and emails, the Company’s of?cialwebsite and other online platforms, etc.
Shareholdersand potential
investors
Of?cial websites of stock exchanges and theCompany, communication platform, telephone andemail, the Company’s announcements, generalstrategy meetings of shareholders, performance
brie?ngs, on-site visits, etc.
Governmentsandregulators
Meetings between governmentsand regulatory authorities,training, project cooperation,information disclosure, of?cialcorrespondence, policyconsultation, etc.
Directors,supervisorsand seniormanagement
General meeting ofshareholders, Boardmeetings and meetingsof Board’s committees,supervisors, special meetingof independent directors, etc.Employees
Employee engagement conferences,employee suggestion boxes, employee
satisfaction surveys, employeeactivities, employee training, etc.
Suppliers andcontractorsBusiness cooperation, making audits, training,communication meetings, business negotiations, etc.
Communitiesand the public
Community service activities, theCompany’s of?cial website andother online platforms, etc.
MediaPress releases,the Company’sannouncements, mediainterviews, etc.
IndustryassociationsIndustry on-site communicationconferences, industryonline seminars, emailcorrespondence and telephonecommunications, etc.
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This year, based on our understandingof the focus of the above-mentionedstakeholders, for the ?rst time, weidenti?ed 17 material sustainabilityissues by considering the industrialdevelopment trends and theCompany’s operations. These issuesinclude 7 environmental issues, 8social issues, and 2 governance andcompliance issues.To fully understand the focus ofstakeholders in relation to these issues,we conducted a survey through onlinequestionnaires on the materialityof them among stakeholders.We analysed and discussed theresults with sustainability relatedexperts, and conducted a fair andbalanced analysis of the opinions ofstakeholders. Considering the analysis,we prioritised the material issues toconduct a materiality matrix basedon the “Importance to Dajin HeavyIndustry” and “Importance to externalstakeholders”.
Materiality to external stakeholders
Materiality to Dajin Heavy Industry
Dajin Heavy Industry Materiality Matrix
High
High
Low
Environmental issues
Biodiversity protection
Waste management
Reduction of carbon emissions
Promoting circular economy
Water resource management
Technological innovation andapplication of energy-savingtechnologies
Energy usage management
ESG Governance
Business ethics and complianceGovernance issues
Quality of products and services
Sustainable supply chain
Employees’ rights and interests
Employee development
Remuneration and bene?ts
Public welfare actions
Diversity
Health and SafetySocial issues
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Key Measures and Key Performance of Sustainable Development in 2023
Sector and issueKey measuresKey performance and goals
Responsesto UN SDGs
Environmental
Reduction of carbonemissions
? Carried out Product Carbon Footprint (PCF) for the ?rst time, helping toidentify the carbon emissions in the production process.? Compiled a “Dual Carbon” management plan for suppliers, and carriedout trainings and communication events for suppliers including carbonreduction and carbon inventory.? Penglai Facility released the “Dual Carbon” targets for the ?rst time andconducted the path for carbon reduction.? Promoted the development of renewable energy investment business, andaccelerated the construction of wind farms.? Identi?ed and disclosed climate-related risks and opportunities inaccordance with the Recommendations of the TCFD for the ?rst time.
? Completed the carbon footprint calculation of monopiles, with thePCF as 2,905 kgCO
e per tonne of product.? Delivered the green supply chain training to nearly 50% of majorsuppliers who provide raw materials for production processes.
? Set the carbon reduction target of achieving a 50% reduction by
2040 and a 70% reduction by 2050, with 2023 as the benchmarkyear.
? Generated 400 million kWh of green electricity, helping to reduceGHG emissions by approximately 228,000 tCO
e.? Penglai Facility planned to increase the proportion of greenelectricity to 50% of the total electricity consumption by 2027.
Energy usagemanagement
? Compiled a plan for increasing clean energy consumption and increased
the proportion of clean energy consumption.
Technologicalinnovation andapplication of energy-saving technologies
? Reduced resource and energy consumption by implementing newdesigned processes to production procedures including steel platecutting, bevel cutting, longitudinal and circumferential seams welding,coating, etc.
? Achieved a reduction of 3.67 tons per unit product in steel usage asraw material for certain models of products through technologicalinnovation and application, resulting in a decrease of approximately
1.85 tCO
e of GHG emissions generated during the cutting process.
Biodiversity protection
? Strictly managed garbage, waste oil, waste water, ballast water and othertypes of wastes generated by incoming vessels, as well as engagedquali?ed third parties to treat waste from vessels, protecting marinebiodiversity.? Implemented the ecological restoration plan after the completion ofnew production plants, as planned in accordance with the laws andregulations, ensuring compliance whilst striving to minimise the ecologicaleffect of operations.
? Ensured 100% compliance in the treatment of ballast water,wastewater, and waste from non-domestic ships.
Wastemanagement
? Standardised the classi?cation and storage of waste to ensure proper
disposal and recycling.
? Penglai Facility aims to achieve a production recycling rate of noless than 90% by 2030, and is committed to achieving completerecycling by 2040.Promotingcircular economy
? Carried out the recycling of production waste and waste from purchasingprocesses, enhancing the comprehensive utilisation of resources.Water resourcemanagement
? Recycled domestic sewage through the installation of sewage treatmentequipment.
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Sector and issueKey measuresKey performance and goals
Responsesto UN SDGs
Social
Quality of productsand services
? Carried out the whole-process quality control over material procurement,process control, after-sales services, etc. based on the qualityplanning methodology for the global wind power industry launched byAPAQP4Wind.? Set up European subsidiaries and assigned sales staff who are familiarwith the local business and culture to maintain customer relationships.
? Provided total amount of quality-related training to 700 person intotal in the year.? Ensured that long-term operating production facilities achieved fullcoverage of ISO9001 quality system certi?cation. At the same time,all production facilities put into operation in 2023 have also carriedout initiatives to obtain the certi?cation.
Health and safety
? Linked employee’s performance with safety management KPIs to enhancetheir awareness towards safety.
? Emphasized the safety principle of “Safety First with Prevention as theCore”, and carried out training for all employees to improve their safetyawareness.? Adopted the consistent standards of health and safety for outsourcedpersonnels and staff, and ensured their health and safety through risknoti?cation and pre-job training.? Introduce a professional logistics team and adopt the SPMT roll-on loadingtechnology for the transportation of large monopile foundations, ensuringthe safety of pipe transportation.
? Total hours of safety training reached 4,021 hours.? 100% outsourced personnels signed the HSE contracts beforestarting to work.
Employees’ rights
and interests
? Complied the Labor and Human Rights Management System with
reference to the relevant standards of the International Labor Organisation(ILO). We strictly prohibit child labour and forced labour, and oppose to allforms of discrimination, humiliation, and corporal punishment.? Clari?ed that employees are entitled to the freedom of association andcollective bargaining in the Social Responsibility Management System,and actively organised the signing of collective contracts.
? No illegal employment incidents, such as child labour or forcedlabour, were found throughout the year, and no violations of rightsand unfair incidents, such as discrimination, humiliation, or corporalpunishment, were identi?ed.? Signed a total of 6 collective contracts related to wages, laboursafety and health, special protection for female employees, etc.? 2/3 of senior managements are female.
Remuneration
and bene?ts
? Adhered to the concept of equal pay to manage remuneration andgranted each operating unit autonomy in decision-making when managingemployee compensation, ensuring that the compensation strategy meetsthe needs of the operations.Diversity
? Built a workplace with equity and mutual respect, and clearly prohibited
unequal treatment regarding race, religion, disability, gender, age, andother factors.? Enhanced gender diversity in the Board of Directors and management.
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Sector and issueKey measuresKey performance and goals
Responsesto UN SDGs
Social
Employeedevelopment
? Implemented the Human Resources Business Partner (HRBP) model toidentify and nurture backbone talents in each business unit.? Established an employee training system based on the core concept of
“skill-based & culture-oriented”, and tracked the training effectivenessthrough monthly training reports.
? The total accumulated training hours exceeded 15,000 hoursthroughout the year.
Sustainablesupply chain
? Compiled the Code of Conduct for Suppliers’ Social Responsibility, and
kept conducting regular audits on suppliers’ ESG-related managementincluding labour rights, health and safety, environmental protection, andbusiness ethics.? Signed the Declaration of Metal Con?ict-Free and other documents with
suppliers.
? The proportion of production suppliers conducting social
responsibility audits is nearly 40%.? 100% of suppliers with potential con?ict minerals risk signed the
Declaration of Metal Con?ict-Free.
Sector and issueKey measuresKey performance and goals
Responsesto UN SDGs
Governance
ESG governance
? Prepared to upgrade the Development and Strategy Committee to theStrategy and Sustainability Committee, and established a three-levelsustainability management system involving the Board of Directors, theStrategy and Sustainability Committee, and relevant departments.? Established the Sustainable Development Task Force to assist the Strategyand Sustainable Development Committee to compile relevant policies,promoting the constant implementation of management measures forsustainable development.
? Conduct a total of 8 training sessions related to sustainable
development for management and core business personnel.? Obtained EcoVadis commitment badge.
Business ethics and
compliance
? De?ned the Code of Business Ethics to all employees in the Staff Manualand the Action Plan, and established an open whistleblowing mechanismas well as measures to protect whistle-blowers.? Required suppliers to sign the Integrity Agreement.? Incorporated ESG-related risks into daily risk management to identify,
summarise, and manage ESG risks and improve company’s ability totackle relevant risks on a regular basis.
? No signi?cant violations of compliance or incidents were identi?ed
in according with marketing, environments, human rights, etc. in this
year.? 90% of suppliers signed the Integrity Agreement.
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In the context of the intensifying environmental crisis and theincreasing impact of climate change, Dajin Heavy Industry is wellaware of the significance of implementing the concept of greenand low-carbon development. Adhering to the concept of clean andefficient production and protecting the natural ecology, the Companykeeps contributing to the transition towards a low-carbon future forChina and the world.
Accelerating the Low-carbon and Energy-saving Transition
ENVIRONMENTAL
Boosting Ecologically Harmonious Development
Accelerating the Low-carbon and Energy-saving TransitionBoosting Ecologically Harmonious Development
EnvironmentalSocialGovernanceAppendixTable of ContentsDajin Heavy Industry
Overall targetPeak carbon by 2023and achieve carbonneutrality for scope
1 and 2 not laterthan 2040, offsettingcarbon emissions bymeasures as energyefficiency, renewableenergy application,and electricationreplacement.
Carbon-reductiontargetReduce carbonemissions by 50%and 70% by 2040 and2050, respectively,compared to thebenchmark year of2023.
Clean energy
targetAchieve 30% use ofgreen electricity by2024, and with anestimated annualincrease of 5% – 10%of green electricityconsumption, achieve100% use of greenelectricity by 2036.
Industrial energysaving targetReduce energyconsumption in allproduction processes
by 30% by 2050compared to thebenchmark year of
2023.
Electrificationreplacement planLaunch theelectricationrenovation in 2031 and
complete 80% of therenovation by 2060.
In line with the need for global low-carbondevelopment and an energy transition, Dajin HeavyIndustry continues to promote high-quality windpower products and delivery low-carbon solutions.Based on the reduction of our own products’ carbonfootprint and operational carbon emissions, wedrive the low-carbon transition of upstream anddownstream industries to jointly reduce carbonemissions and achieve a shared low-carbontransformation.Carbon Peaking and Carbon Neutrality Goals andCarbon Reduction PathsTo contribute to China’s “Dual carbon” goals aswell as to the Paris Agreement commitments,the Company has ?rst formulated the carbonpeaking and carbon neutrality goals of PenglaiFacility in accordance with the actual operationalcircumstances, and conducted key carbonreduction measures. At the same time, the Companywill formulate a company-wide carbon peakingand carbon neutrality goals, and is planning togradually launch a project to build the Scope 3carbon inventory in order to fully understand thecarbon emissions in the Company’s value chain andconsolidate the foundation for formulating a plan toreduce them.
Accelerating the Low-carbon and Energy-saving Transition
Carbon peaking and carbon neutrality goals of Penglai Facility
GHG emissions KPI in 2023
GHG emissions/RMB millionof operating income
13.31
tCO
e/RMB million ofoperating income
Total GHG emissions
Dajin’s GHG emissions mainly include carbon dioxide (CO
), methane (CH
) and nitrous oxide (N
O). The total GHG emission is reported in terms of carbon dioxideequivalent. This year, we calculated the GHG emissions from production facilities and of?ces owned by Dajin Heavy Industry. Details of our GHG emission scope include: 1)Direct GHG emissions (Scope 1): GHG directly generated from the use of gasoline, diesel, natural gas and propane for operations and the direct emission of carbon dioxideused as a protective gas during the production process. 2) Indirect GHG emissions (Scope 2): GHG emissions generated from consumed electricity and consumed heat foroperations.
Scope 1Total direct GHG emissionsScope 2Total indirect GHG emissions
57,580.18tCO
e21,174.11
tCO
e36,406.07tCO
e
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Dajin Heavy Industry constantly integrates theconcept of low-carbon development into theproduct lifecycle. This year, to effectively analyseand evaluate the carbon emissions throughout theproduct lifecycle, we engaged professional thirdparties to carry out a carbon inventory for monopilesin accordance with the Carbon Footprint of ProductsStandard (ISO 14067). We analysed the carbonemissions of products in the production of rawmaterials and manufacturing phases according to theprinciple of “Cradle-to-Gate”, to better understandthe product carbon footprint and to design carbonemissions reduction plans more precisely.
Product footprint emissions per tonne ofmonopile product
2,905kg CO
eq
15%
85%Production, processing and transport ofraw materialsIndustrial production process
To accelerate the reduction of the carbon footprint ofour products, we promote energy saving programsin the whole process of production through greenprocurement and improving production energyef?ciency.
Reducing the Production Carbon Footprint
Implementing energy savingproduction process? Enhance suppliers’ awareness ofcarbon-reduction? Promote resource-saving inproduction
Optimizing production process? Reduce consumption of raw materials? Reduce energy consumption inproduction
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Promoting Green Procurement
To effectively promote the suppliers’ awareness oflow-carbon development, we compiled the GreenSupply Chain Training Measures, which clarify thatthe Company needs to carry out green supplychain training, online or on-site, for suppliers andsupply chain management employees every sixmonths. This year, we also drafted the “Dual Carbon”management plan for suppliers, emphasising toinvolve “Dual Carbon” indicators into supplieraccessing assessment and annual evaluation in thefollowing three years. The indicator could containclean logistics, use of renewable energy, andutilisation of technologies for energy-saving andenvironmental protection, which help our suppliersto promote improved performance in the low-carbondevelopment.This year, we conducted trainings for suppliers ontopics, such as “Interpretation of the EU CarbonBorder Adjustment Mechanism (CBAM)” and “GreenSupply Chain Management Measures”, to enhancetheir awareness of the Company’s green supply chainconcept.
CaseTraining on carbon emissions accounting for suppliersThis year, the Company carried out online and of?ine trainings on the EU Carbon Border AdjustmentMechanism (CBAM) to 24 supplier representatives. The training focused on carbon emissions accountingmethods, introducing the background and signi?cance of carbon emissions accounting to them, andassisting them in understanding the requirements for carbon data reporting. This has improved thecarbon accounting capacity of suppliers.
Explanations about carbon accounting methods to suppliers and on-site participants
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Implementing energy-saving production processes
This year, the Company continued to implementenergy-saving technics in the production processesof steel plate cutting, bevel cutting, longitudinal andcircumferential seams welding, coating, etc. Thesemeasures help us reduce the consumption of rawmaterials and usage of energy during production,enabling us to jointly reduce carbon emissions inprocurement and production processes.
? Improved the cutting technology, enabling amore accurate cutting process to reduce thecutting allowance of the steel plate from 25mmto 12mm, effectively reducing the consumptionof steel plate as raw material. This has increasedthe utilisation rate of steel plate by 0.48%for some types of products, and lowered theconsumption of steel plate for a single productby 3.67t.? Replaced propane fuel with high-energycutting gas, which can reduce the emissionsby approximately 1.85 tCO
e in the cuttingprocedure per product.
Steel plate cutting
? Developed and applied narrow-gap bevellingtechnology to reduce the size of the bevel.This can reduce the ?lling amount of weldingconsumables by approximately 10% andthe consumption of welding consumablesby approximately 100kg per tower, withoutcompromising production quality.
Bevel cutting
? Purchased steel plates with fewer joints
as raw materials to effectively reduce thelength of the seams of some monopiles byapproximately 650m, which is 10% lesscompared to applying previous seamingtechnics, reducing the resource and energyconsumption in the welding process.
Longitudinal andcircumferential seams welding
? Upgraded the ?xed-coating technic to
turntable-coating technic at the coating andanti-corrosion workshops, reducing paint lossby approximately 3%.
Coating
reducing paint loss by approximately
3%
reduce the filling amount of weldingconsumables by approximately
10%
and the consumption of welding consumables
by approximately
100kg
per tower
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In addition, the Company has complied raw material management procedures, such as the Control Procedure for the Release of Trade-in Consumables and theRegulations on the Control and Management of Consumables, to strictly manage the distribution and recycling of welding wire, ?ux, and other materials. In doing so, weeffectively reduce unnecessary waste of raw materials.
IndicatorUnit
DataTotal comprehensive energyconsumption
MWh
155,572.72Energy consumption per RMBmillion of operating income
MWh/RMB million ofoperating income35.97Total direct energy consumptionMWh91,319.56 Total consumption of gasolineMWh1,089.79 Total consumption of dieselMWh17,601.37 Total consumption of natural gasMWh69,851.09 Total consumption of propaneMWh2,777.31Total indirect energy consumptionMWh64,253.16 Total purchased electricityMWh63,203.59 Total purchased heatMWh1,049.57IndicatorUnitData
Total consumption of major rawmaterials
10,000 tonnes
51.13
Consumption of raw materials/RMBmillion of operating income
10,000 tonne/RMB millionof operating income
0.0118
Steel plate10,000 tonnes46.91 Flange10,000 tonnes3.38 Welding material 10,000 tonnes0.84
The total amount of comprehensive energy consumption includes direct energy consumption and indirect energy consumption. Directenergy consumption mainly includes the consumption of gasoline, diesel, nature gas and propane for the Company’s operations;indirect energy consumption mainly includes those from purchased electricity and purchased heat for the Company’s operations.The comprehensive energy consumption was calculated by using the conversion factors speci?ed in the national standard GeneralRules for Calculation of the Comprehensive Energy Consumption (GB/T 2589-2020) of the People’s Republic of China and industrialstandards.
For better statistics and comparison, the following energy consumption indicators have been converted to MWh in reference to
relevant standards.
Total direct energy consumption
Total indirect energy consumption
Total consumption of major raw materials
91,319.56
MWh
64,253.16MWh
51.13
10,000 tonne
Steel plate: 46.91 (10,000 tonnes)Flange: 3.38(10,000 tonnes)Welding material: 0.84(10,000 tonnes)
Total consumption of gasoline: 1,089.79MWhTotal consumption of diesel: 17,601.37MWhTotal consumption of natural gas: 69,851.09MWhTotal consumption of propane: 2,777.31MWh
Total purchased electricity63,203.59MWhTotal purchased heat: 1,049.57MWh
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Contributing to the Low-carbon Transition of Society
Renewable energy generated for self-consumptionRenewable energy generated for sales
13.33 GWh
402.87 GWh
Total amount ofrenewable energy
generated
The renewable energy generated by the Company came from the FuxinZhangwu Xiliujiazi 250MW wind power plant. Among them, the renewableenergy generated for self-consumption refers to the electricity generated bythe wind power plant and supplied for its own operation.
416.20
GWh
Dajin Heavy Industry implements the concept oflow-carbon development by extending our businessto boost clean energy applications such as buildingwind farms, striving to reduce our carbon emissionsas well as promoting society to undertake thelow-carbon transition.
Accelerating the manufacturing ofrenewable energy facilities
The Company insists on the concept of “achievinglow-carbon transformation by reducing carbonemissions from the origin”. This year, the Companyaccelerated the building of wind farms by investingmore on the clean energy sector. A Clean EnergyDepartment was set up to take charge of the overallmanagement of the clean energy business, extendingour scope of business in the industrial chain. By theend of 2023, Fuxin Zhangwu Xiliujiazi 250MW WindFarm had been successfully connected to the grid,and the Tangshan Caofeidian 250MW Aquaculture-PVComplementary Project had been ?led. TheCompany has also planned to build a grid-connectedproject featuring clean energy within the next threeyears. In addition, the Company actively participatedin green electricity trading, producing and sellinga total of 400 million kWh of green electricity thisyear, contributing to a carbon emissions reduction ofapproximately 228,000 tCO
e.
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Enhancing Green Operations
The Company adheres to the conceptof green operations by improvinglogistics ef?ciency, continuouslyenhancing the effectiveness ofwarehousing processes, andstrengthening the degree of greenproduction and operations. With thesepractices, we assist downstreamcustomers to reduce GHG emissionsin their value chain, so as to help builda clean energy industry with lowercarbon emissions.
Improving Logistics and Transport Ef?ciencyWe continuously re?ne and standardise logistics management measures, makerational logistics route planning, and minimise the idle operation time of logisticsequipment, thereby reducing the energy consumption of on-site logisticsequipment, examples include:
And at the same time, to assist ourdownstream customers in reducingcarbon emissions, during the shipmentstage of offshore equipment products,we incorporated carbon emissionsindicators into the considerationsfor cargo vessel leasing. Weprioritise to lease cargo vessels fromenergy-saving ship leasing companiesby considering the level of carbonemissions based on the relevantreport provided by the companies.This year, the Company also initiatedthe construction of a self-ownedtransport ?eet, striving to create avessel transport team with lowercarbon emissions to reduce the energyconsumption of product transportation.
Implemented the logistic management plan, which requires that the logisticsmanagement plan should be accurate to the hour and that the ef?ciency ofthe use and connection of vehicles, gantry cranes, and other equipment beimproved.Adjusted the use of vehicles based on the logistics plan and adopted amanagement approach of preparing corresponding vehicles in advance,reducing the waiting time for carpooling and vehicle replacement, thereforeimproving the ef?ciency of vehicle usage.Emphasised the “personnel-speci?c vehicle” management practice oflogistics vehicles, and rewarded operators who achieve high utilisation ratesof logistics vehicles.Conducted logistics dispatch according to the optimal routes of operation andmade rational route planning for dispatching to reduce dispatch frequency.
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Re?ning Warehousing and TransportationManagement
Some raw materials are directly unloadedto the workshop to reduce the procedure ofwarehousing.
the coverage rate of LEDbulbs in Fuxin Facilityhas reached
100%
Reinforcing Green Production and Operations
The Company continuously replaces lighting andpower generation equipment with lower energyconsumption alternatives, reducing the daily energyconsumption of production and operation sites.This year, the Company’s production facilities havecarried out the replacement of LED lighting ?xtures.Among them, the coverage rate of LED bulbs inFuxin Facility has reached 100% and the coveragerate in Penglai Facility and Xing An’meng Facility hasexceeded 90%. The coverage rate of LED bulbs inother facilities has also been signi?cantly improved.Meanwhile, Penglai Facility installed on-shoreelectricity equipment to meet the use of shorepower for some period-leased vessels after enteringthe port, which reduced diesel consumption thuslowering carbon emissions.
To promote energy saving and carbon reduction inwarehousing and transportation, a batch of measureshave been adopted in the Company’s productionfacilities including optimising transport routes,simplifying warehousing processes, and improvingthe ef?ciency of management systems.
the coverage rate in Penglaifacility and Xing An’mengfacility has exceeded90%We plan the application of product storage sitesby considering factors, such as site conditions,delivery demand time, distribution conditions,etc., aiming to reduce the number of repeatedtransportation of ?nished products.We adopt classi?cation managementmethodology that dividing areas and warehousesaccording to material categories, with somematerials are further re?ned and stored indesignated locations. We also established anERP inventory management system to improvethe ef?ciency of arranging material storage andhandling operations.
In addition, the Company emphasises theimplementation of the concept of “green workspace”by posting green tips and notices, such as “turningoff the lights when leaving” and “energy savingand environmental protection” reminders, in of?cebuildings, canteens, and factory areas. Furthermore,we ?rmly advocate the concept of saving resourcesby encouraging employees to save water and paper.
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Theme on TCFD – Climate-related Risks and Opportunities
Type
Risk/Opportunity type – Existing or potential impact on theCompany
Ongoing or planned countermeasures
Physicalrisks
Acute risks – Climate change is leading to an increase in the frequency ofextreme weather events, such as ?oods and typhoons, which may resultin power and water outages and cause damage to production equipment,thus affecting the consistency of Company operations, especially forproduction facilities.Such risks may also affect the consistency of logistics, therefore reducing
the timeliness and level of safety in supply chain logistics, potentiallycausing economic losses.
Establish early warning systems and contingency plans for extreme weather at production facilitiesand replace the equipment for more weather-resistant alternatives to enhance their resilience to theimpact of natural disasters.Conduct measures related to supply chain security and collaborate with marine logistics and
transportation suppliers to plan transportation routes based on weather conditions, aiming to mitigatethe impact of extreme weather on product delivery.Chronic risks – Climate change leads to a continuous rise in global
temperature, which may result in sea-level rising, changes in thedistribution of water resources, and year-round hotter weather. Some ofthe Company’s production facilities are located along coastlines and riverbasins, and the related risks may lead to the relocation of operationalsites, increased demand for refrigeration equipment, and higherfrequencies of equipment maintenance, potentially resulting in risingoperating costs for the Company.
Incorporate the chronic risks of climate change into site selection considerations when building newproduction facilities to minimise the impact of such risks.Take measures such as building breakwaters and improve the efficiency of the refrigeration
equipment in the completed production facilities to enhance their resilience against the chronic risksof climate change.
Dajin Heavy Industry deeply understands that the impact of climate change on the global environment hasbecome one of the important factors affecting every company’s sustainable development. The Companyhas incorporated climate-related factors into the risk identi?cation process for business operations, and hassteadily advanced the ability to identify and respond to climate change risks. At the same time, the Companyactively seizes the opportunities brought about by climate changes and takes the global development trends inlow-carbon development energy transformation as a turning point. Considering this, we accelerate the iterationof products to vigorously develop the clean energy industry and meet the needs of low-carbon developmentfrom downstream customers. This year, for the ?rst time, we identi?ed and analysed climate-related risks andopportunities based on the circumstances of Company’s operations and general business environment inthe industry by referring to the Recommendations of the Task Force on Climate-related Financial Disclosures(TCFD). We also sorted out the implementation of corresponding countermeasures as the following.
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Type
Risk/Opportunity type – Existing or potential impact on theCompany
Ongoing or planned countermeasures
Transition
risks
Policy and legal risks – Global countries and regions are paying increasingattention to climate change, and relevant policies and systems are becomingincreasingly stringent, such as the European Union’s Carbon BorderAdjustment Mechanism (CBAM) and China’s “dual carbon” developmentstrategy. These factors may increase the compliance costs for the Company inconducting product import and export trade, thereby affecting the Company’seconomic bene?ts.
We continuously monitor changes in the relevant policies and systems both domestically andinternationally, closely track the latest developments in climate change-related policies, andaccelerate the deployment of measures to reduce the carbon footprint of our products andoperational carbon emissions. This year, in order to effectively respond to CBAM, the Companyhas conducted an assessment of the carbon footprint of our products throughout their lifecycle,aiming to reasonably plan measures to reduce carbon emissions.Market risk – The downstream customers of the Company, both domestically
and internationally, are paying increasing attention to the low-carbon attributesof their own value chains and are constantly raising their requirements forthe low-carbon properties of the Company’s main products. If the Companycannot quickly respond to market changes and meet market demands, it mayface the risk of hindered development in new markets.
Adhere to conducting green procurement training for suppliers and deploying green
procurement plans. We continuously reduce carbon emissions in product manufacturingthrough energy conservation, emissions reduction, and technological transformation. We arecommitted to creating a low-carbon shipping transportation system to reduce carbon emissionsin the transportation process.Keep carrying out work related to low-carbon transformation, accelerating the deployment of
the clean energy industry, and promptly communicating the progress of our company’s low-carbon development efforts to stakeholders through disclosing sustainable developmentreports, in order to enhance the Company’s image of sustainable development.Reputation risk – Stakeholders continue to pay increasing attention to the
Company’s performance in green and low-carbon development and climatechange response. If the Company fails to promptly communicate its progressand the current status of its low-carbon development, it may affect theCompany’s reputation and further in?uence its market performance.
Opportunities
Market opportunity – Countries and regions around the world have
successively issued supportive policies for the clean energy industry,encouraging the development of the offshore and onshore wind powersector, heightening the opportunities within the market. As a company whosemain business is wind power equipment manufacturing, the successiveintroduction of policies and systems has provided the Company with newmarket opportunities and brought new growth points for its operating income.
Continuously improve our product quality and enhance the manufacturing process level
according to customer requirements, delivering high-quality, low-carbon footprint towers,offshore foundations, and other wind power steel structures to downstream customers, therebyexpanding our market share.Resilience opportunity – Countries and regions around the world have
successively established and activated carbon emissions tradingmechanisms, opened carbon emissions trading markets, and continuouslyincluded more energy-intensive industries to participate in carbon emissionstrading.
The Company has gradually embarked on the development of the clean energy investment
business, actively participating in the carbon market and green electricity trading to assisthigh-energy-consuming enterprises in reducing carbon emissions. The Company has alreadyconducted transactions in green electricity and obtained the relevant certi?cations, with a totalcerti?ed green electricity transaction volume exceeding 200 million kWh in 2023.Furthermore, in order to enhance employees’ understanding of low-carbon development and strengthen the awareness of carbon reduction across various businessdivisions, the Company will continue to conduct trainings related to climate change for the management and core business personnel. This year, the Company organisedeight training sessions on carbon footprint, circular economy, shipping carbon taxes, shipping fuel technology, and other topics, to strengthen employees’ understandingof carbon-related laws and regulations, emissions reduction measures, and market requirements.
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Grasping the Clean Energy Market in an All-round WayIn recent years, the national and global clean energy industry has developed rapidly,and industrial demand has been constantly changing. In response to the needs fromthe clean energy industry, the Company has analysed the changing mechanism ofdownstream customers’ demands for clean energy from four aspects: cost reductionand ef?ciency improvement, product customisation, technological differentiation, andlow-carbon operational requirements. Based on the analysis results, the Companyhas formulated a work plan of “intensifying better design with deepening costsaving”. Through close collaboration with equipment manufacturers and engineeringplanning companies, we ensure the optimisation of the project construction planand the sustainable attributes of equipment and materials for production, enhancingthe competitiveness of our clean energy electricity projects and maintaining marketadvantages by seizing climate opportunities.
Dajin Heavy Industry
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Boosting Ecologically Harmonious Development
Dajin Heavy Industry actively practices the protection of theenvironment, promotes clean and environmentally-friendlyproduction modes, vigorously explores and advances thecircular economy, and reduces the emissions of pollutantsand waste, so as to minimise the impact of the Company’sproduction and operations on the surrounding naturalecosystem and biodiversity.
Reducing Environmental ImpactsThe Company continuously improves its ability inenvironmental management, constantly re?ning theenvironmental management system and exploringnew processes and techniques to effectively reducethe emissions of wastewater, waste gas, and wasteduring production and operation, as well as toadequately minimise noise pollution and improve theutilisation rate of water resources. Moreover, we focuson guiding employees to create a workplace with theconcept of environmental protection and conservationand continuously enhance their awareness ofresource conservation, to implement the notion ofclean operations in all aspects of production andoperation.
Environmental Protection ManagementSystem
The Company strictly complies with the EnvironmentalProtection Law of the People’s Republic of China,the Law of the People’s Republic of China on thePrevention and Control of Atmospheric Pollution, theCleaner Production Promotion Law of the People’sRepublic of China, and other national and local laws,regulations, and standards. Each production facilitycomplies with the corresponding environmentalmanagement measures by considering the needsof their operations, ensuring that the requirementsof environmental protection from the headquartersare properly implemented. A Health, Safety,
and Environment (HSE) department have beenestablished in each production facility of theCompany to carry out the overall management ofenvironmental protection issues. As of the end of2023, all of the Company’s long-term operatingproduction facilities have obtained ISO 14001Environmental Management System certi?cation,and all production facilities put into operation in 2023have begun their work to obtain the certi?cation.The Company regularly audits the environmentalimpact management of production facilities to verifythe effectiveness of environmental managementprocedures, the response to environmental risks, andthe soundness of environmental protection measureson a regular basis. In addition, each facility regularlyevaluates and identi?es internal environment-relatedrisk factors, and carries out targeted recti?cation ofthe risks found to ensure the effective and on-timedetection and prevention of these risks. In responseto sudden environmental incidents, the Companyhas developed an Environmental Emergency Plan,which clearly stipulates the procedures for handlingenvironmental emergencies, such as hazardouswaste leakage or a ?re accident. Furthermore, theCompany has carried out level-based managementof environmental emergencies to achieve a re?nedmanagement.
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Upgrading equipment and rening processes to strengthen the ability indealing with waste gas emissions from the entire production processes.In order to effectively treat the smoke emissions generated in all productionprocesses, the Fuxin Facility continuously improves the timeliness andeffectiveness of the exhaust gas treatment, and strengthens the treatment effortsat the places where exhaust gas is generated the most:
Mobile Welding Fume and Dust Collection Device
Prevention and Control of Air PollutionThe waste gas emissions from the Company’s operations mainly come from fume and dust generated duringcutting, grinding, and welding. We strictly adhere to the relevant local laws and regulations where we operate.We reduce the waste gas emissions during our production and operations by installing dust preventionand purification equipment, refining production processes with lower emissions, and strengthening theend-of-pipe treatment, so as to achieve full compliance of regulations in regard to emissions. In addition,we engage professional third-party institutions to test and analyse the composition and content of emittedpollutants on a regular basis, achieving a real-time monitoring of air pollutant emissions.
IndicatorUnitData
Trichlorofluoromethaneequivalent
tonnes161.55Nitrogen oxides (NO
x)tonnes4.93Volatile organic compounds (VOC)tonnes143.24Fume and dusttonnes34.06
? Mobile welding fume puri?ers have beeninstalled in the manual welding process inthe processing workshop to enhance theef?ciency of waste gas collection where fumeis generated.
? Dust prevention equipment and
paint mist treatment system havebeen installed for the aerosolproduced in the anti-corrosionworkshop to reduce waste gasemissions through burning andactivated carbon adsorption;? Pre-treatment of desulfurisationand drying is carried out for high-energy cutting gas to ensure noemissions of harmful substancesafter combustion.
Installation of integrated facilities to improve the efficiencyof waste gas treatmentTo effectively treat and ensure compliance with the regulations of the exhaustemissions of VOCs, dust, particles, and other pollutants generated from coatingand blasting processes, the Penglai Facility took measures from three aspects:
improving exhaust collection ef?ciency, increasing the types of exhaust treatmenttechnologies, and strengthening end-of-pipe treatment.
Dust bags Collection System and Integrated Waste Gas Treatment Device
The dust generated duringgrinding is treated through theinstallation of dust bags and?lter screens, which gatherand collect air pollutants andprevent the dispersion of theseinto the air.
For the treatment oforganic waste gases,measures such as activatedcarbon adsorption,catalytic combustion,and regenerative thermaloxidation (RTO) are employedin conjunction to enhance thetreatment ef?ciency.
Fume and dust puri?cationdevices are installedoutside the weldingmaterial rod area to reducethe amount of fume anddust in the workshop,thereby improving the airquality of the workplace foremployees.
CaseCase
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CaseEnhancing the classied storage of waste to promote disposal efficiency
The Penglai Facility has established special storageareas for waste, such as scrap metal residue andmetal scraps generated during production, andposted prominent waste classi?cation labels to assistemployees in correctly classifying and disposingwaste. At the same time, the Company assignsspeci?c personnel to inspect the discarded andclassi?ed waste every day, so to ensure that all wasteis stored correctly, facilitating the precise wasterecycling and disposal.
Scrap Metal Slag/Metal Residue Segregation and Recycling Bins
Waste ManagementThe Company has established strict waste treatmentprocedures in accordance with the national and localwaste management standards to collect and storenon-hazardous and hazardous waste. The wasteis then handed over to quali?ed third parties forrecycling and disposal to ensure all waste is treatedin compliance with the regulations.For the non-hazardous waste generated duringthe production process, the Company requiresproduction related departments to strictly follow thewaste disposal process, and transport the wasteto designated waste storage areas with classi?edstorage based on the type of waste, in order tofacilitate the recycling of it. For hazardous waste, theCompany has developed documents such as theWaste Management Standards, which establishesthe responsibilities throughout the treatment processof hazardous waste, clarifying the requirements forrecycling, storage, and treatment. The Companyalso designates an independent area to storagehazardous waste, ensuring that hazardous wastedoes not impact the working place.
In addition, for of?ce waste and domestic waste produced in daily operations, the Company conducts a uni?edcollection and segregation procedure to reuses waste, if possible, thus reducing the waste of resources.IndicatorUnitDataWaste
Total hazardous waste generated
tonnes680.20Total hazardous waste disposaltonnes661.53Total metal waste generatedtonnes13,437.82 Of which total metal waste recycled in-house
tonnes722.67Of which total metal waste handled to qualified third partiestonnes12,715.15
The Company’s waste includes hazardous waste and non-hazardous waste. Among them, non-hazardous waste includes metal waste and non-metal waste. This year, the Penglai facility has been equipped with the statistical ability of non-metal waste, with a total of 2,338.66 tonsof such waste produced and disposed of throughout the year. We will gradually establish the statistical capacity of non-hazardous non-metal waste in other facilities.
The Company’s hazardous waste is classi?ed and counted refer to the “National List of Hazardous Wastes”. The wastes generated mainly included waste ?lter cotton, waste activated carbon, waste paint, waste paint residue, waste paint drums and waste hydraulic oil.
The Company’s waste recycling activities mainly include the use of scrap metal and wood generated in the production process to make tools and other daily operating equipment.
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To strengthen the management ofwater used for dust suppressionby sprinkler trucks, Fuxin Facilityhas established the Water Usagefor Dust Suppression internal
management system, whichstandardises the frequency of dustsuppression, the source of waterused, and the amount of waterconsumed, ensuring the rationalutilisation of water resources.
Noise ManagementTo effectively reduce the noise generated during cutting, blasting, and otherprocesses, the Company timely distributes labour protection equipment inaccordance with national and operational management requirements. It alsocontinuously reduces the noise sources and volume in the work environmentby replacing facilities and equipment, standardising the use of materials, andother means, in order to reduce the health and safety hazards brought bynoise to employees. This year, Penglai Facility passed the Grade 2 standardcerti?cation of the Emission Standard for Industrial Enterprises Noise at Boundary(GB12348-2008).
CaseReducing the noise volume by upgrading equipment
To mitigate the impact of noise on workers’ health and safety during grindingoperations, all facilities have reduced noise levels through upgrading theirequipment. Speci?cally, the Penglai Facility has installed muf?ers on grindingmachines, while the Fuxin Facility has upgraded the pneumatic angle grindersin the grinding and cutting workshops to electric angle grinders. Thesemodi?cations and replacements have effectively reduced noise levels.
Replacement of the Pneumatic Angle Grinder withElectric One
Muf?ers on grinding machines
Water Management
The Company adheres to the ef?cient use of water resources, continuouslyoptimising water management methods and reducing water consumption in dailyoperations through the use of recycled water, installing water-saving appliances,and posting water-saving notices. Further initiatives to enhance employees’awareness of water conservation include:
IndicatorUnitData
Total water withdrawal10,000 tonnes18.45Total water withdrawal per RMB1 million of operating income
10,000 tonnes/RMB 1 millionof operating income0.0043Total water purchased from third-party
10,000 tonnes
17.35
Total water withdrawn from the nature
10,000 tonnes
1.10
The water acquisition from the nature comes from wells used for production and operation in facilities.
Penglai Facility has established asewage treatment station, whichtreats domestic sewage to meetthe appropriate standards sothat it can be used for irrigationin the park. At the same time, toencourage employees to activelyconserve water resources,the Facility regularly monitorswater consumption in thecanteen, keeping track of waterconsumption.
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Biodiversity Protection
The Company is deeply aware of the importanceof protecting biodiversity as means for preservingecosystem services and nature, and continuouslypromotes biodiversity protection by reducing carbonand pollutant emissions and conserving waterresources. To promote ecological protection duringoperations, the Company imposes strict requirementson waste discharge from incoming vessels andtakes ecological restoration in newly built factories,ensuring that the natural ecology of productionfacilities is effectively protected.
Ecological Protection for New ProjectsThis year, the Company has vigorously promoted theconstruction of clean energy projects. To minimisethe impact of new constructions on natural habitats,the Company strictly adheres to the environmentaland water resource protection plan formulated priorto the project construction in accordance with legaland regulatory requirements. This helps us improveour ability to minimise the ecological impact of theproject, whilst also implementing best practices forecological conservation and restoration.
Management of incoming VesselsThe Company strictly manages garbage, wasteoil, waste water, ballast water and other types ofwastes generated by incoming vessels to ensure theenvironmental and ecological safety of the operationalareas. The Company continuously signs agreementswith professional third-party organisations for thetreatment of ship oil wastewater and garbage,ensuring proper waste disposals in a timely mannerthrough safe and standardised procedures, alsopreventing any leaks from occurring.
Dajin Heavy Industry
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Accelerating the Low-carbon and Energy-saving TransitionBoosting Ecologically Harmonious DevelopmentEnvironmentalSocialGovernanceAppendixTable of ContentsDajin Heavy Industry
Fuxin Facility actively carries out a project to recycle incoming packagingboxes from raw material purchasing, transforming the wooden materialsand other waste materials from the raw material packaging boxes intowooden boxes and other types of work gears for various operational needs,such as garbage bins, iron slag bins, and shipping boxes within the factory,effectively reducing resource consumption.
Wooden Packaging Boxes Transformed into Operational Needs
Case
Case
CasePromoting resource circular use by recycling cutting residualsReusing waste from packaging to reduce resources consumptionPenglai Facility separately collected and used residues generated from steelplate cutting. These residues were made into tooling equipment, such aspanels, brackets, cable brackets, garbage cans, cylinder ?xed, and connectingplates according to different dimensions, so as to make the best use of allmaterials and reduce resource consumption.
Brackets and Garbage Cans Made of Steel Residuals
Recycling welding slags to reduce environmental pollutionZhangjiakou Facility and Xing An’meng Facility mixed the submerged arcwelding ?ux generated from production with materials, such as cement andsandstone. Under the premise of ensuring safety, the mixture was usedas precast concrete for pouring the concrete pavement after processes,such as mixing, moulding, and curing. By doing so, the facilities reducedwaste and effectively saved consumption of raw materials, enhancing thecomprehensive utilisation rate of resources.
Promoting Circular EconomyDajin Heavy Industry upholds the principle of recycling. The Company improves the comprehensive utilisation of resources through initiatives, such as recyclingproduction waste and reusing waste generated from procurement. This year, Penglai Facility set goals to achieve a production recycling rate of at least 90% by 2030 andachieve full circularity by 2040, in an effort to advance the circular economy at factories.
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Dajin Heavy Industry is committed to delivering products andservices with excellent quality. We constantly strengthen our qualitycontrols to ensure the supply of high-quality products to customersat all times. In addition, we strive to build a sustainable supply chainand advocate joint efforts with suppliers to promote the sustainabledevelopment. As a people-oriented enterprise, the Companyprotects employees’ rights and interests and ensures their healthand safety. We respect employees’ needs and constantly improveemployee benets, thus creating a fair, diverse, inclusive, and safeworking environment.
Pursuing High-Quality Products and ServicesSOCIAL
Securing Employee Health and Safety
Creating a Harmonious Workplace
Building a Sustainable Supply Chain
Pursuing High-Quality Products and ServiceSecuring Employee Health and SafetyCreating a Harmonious WorkplaceBuilding a Sustainable Supply Chain
Dajin Heavy Industry
At Dajin Heavy Industry, we are committed to ensuringproduct quality and maintaining performance integrity,and insist on providing high-quality products andservices to customers. We closely monitor the markettrends and stay updated on the latest demands forproducts and services of customers domesticallyand abroad. We have built a comprehensive qualitymanagement system, adopted strict quality controlprocesses, and taken advanced quality managementmeasures. All the above efforts aim to persistentlyimprove the stability and reliability of products andservices, thus building a corporate image renownedfor our commitment to delivering high-qualityproducts and services.
Pursuing High-Quality Products and Services
Based on the quality planning approaches of the globalwind power industry proposed by APQP4Wind (AdvancedProduct Quality Planning for Wind), the Company controlsthe quality throughout the entire process includingpreliminary planning, procurement of materials, processcontrol, and after-sales service. As of the end of 2023, allof the Company’s long-term operating production facilitieshave obtained the ISO 9001 Quality Management Systemcerti?cation, and all production facilities put into operationin 2023 have begun their work to obtain the certi?cation.Penglai Facility has secured a number of certi?cations, suchas the Certi?cate for Structural Components and Kits forSteel Structures to EXC4 according to EN 1090, the WeldingCerti?cate with EXC4 execution class(es) according to EN1090, the Japanese Industrial Standards (JIS) Certi?cation,the Welding Workshop Approval Certi?cate of DNV, theStatement of Fact from ClassNK and the ISO 3834 WeldingQuality Management System according to the needs of itsbusiness.The Company adheres to a goal-oriented qualitymanagement model, and based on the characteristicsof each business department, has established qualityobjectives covering procurement, technical processes,production, project management, and other aspects.Regular assessments are also conducted on theachievement of these objectives.
Welding Certi?cate with EXC4execution class(es) according to
EN 1090the Certi?cate for Structural
Components and Kits for SteelStructures to EXC4 according to
EN 1090
Japanese Industrial Standards
(JIS) Certi?cationthe Welding WorkshopApproval Certi?cate of DNV
theStatement of Fact from
ClassNKthe ISO 3834 Welding Quality
Management System
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Dajin Heavy Industry
Controlling the Product Quality StrictlyThe Company has established the quality management policy of “pursuing excellence and serving every customer with high-quality products”, adhering to standardisedproduct quality management. It emphasises that each business unit should establish a comprehensive product quality management system and institutional policiesbased on its actual business situation, continuously improve production technology and processes, and promote the enhancement of product quality.
Quality Management Processes and Structure of Penglai Facility
Full-process quality monitoring
Handles the entire process oftechnological problems duringproduction, ensuring that productsmeet quality requirement.Convenes workshop to productionpersonnel and quality inspectionpersonnel to conduct technical reviewand clari?cation before production,and carries out periodic inspectionsto ensure the proper application ofproduction processes.
Monitors the raw materialprocurement, production process,?nished product inspection andother processes according to thequality management documents andinspection plans.Outputs detailed quality-related dataand use quality control tools such asstatistical process control (SPC) forquality stability analysis.
Establishes inspection points inthe workshop and assigns on-siteprocess quality inspectors to conductrandom daily inspections on qualityissues and processes compliance ofeach on-site procedure.Reports the status of the completionof key quality control points to thequality management department intime on daily bases.
Conduct inspection for the ?rstoutcoming product, ?nal inspectionbefore production leaving the factory,and pre-shipment inspection jointly toensure that quality at each process iscontrolled.Verify the quality assessment results ofeach production workshop and eachproduction process, and approve thenext stage of production only afterpassing the veri?cation.
Disassembles customer drawingsand outputs construction guidelines,including quality control pointsand control requirements of eachproduction process.Manages and controls drawingchanges, and provides technicalsupport during the production processof products.
Identi?es drawing speci?cations,industry standards, laws andregulations according to customerrequirements.Prepare special qualitymanagement documents andquality inspection plans for theproject based on the identi?edcontent.
Process ManagementDepartment
QC Department
Production workshop
QA+QC+NDT Departments
Technical Department
QA DepartmentPreliminary planningProductionProduct inspection
Full-process quality control
Product Quality Management SystemQuality Management Structure and Processes
The Company has established a full-lifecycle product quality managementprocess based on production procedures. Taking the Penglai Facility as anexample, after receiving the technical drawings, the Technical Departmentwill conduct a detailed breakdown of the drawing requirements, outputa material procurement list and provide construction drawings for theproduction workshop to carry out construction procedures. The constructiondrawings include quality control points that enable a more ef?cient qualitymanagement and control during the production process. Each productionworkshop will carry out, implement, and inspect the production quality ofeach assembling step according to the production plan. The WarehouseDepartment of the Facility controls the quality of materials during storage. Toachieve this, it has developed management provisions, such as the StorageRegion Distribution and Protection for Materials in Storage Centre and theWarehouse Management Control Procedure, clarifying the requirements forlogistics support and the feedback mechanism for quality issues to ensurethe quality of raw materials.Penglai Facility has set up the Quality Management Department, whichis composed of Quality Assurance (QA), Quality Control (QC) andNon-destructive Testing (NDT) sections working together to supervise,manage, and control the quality of all production processes. Their collectiveefforts aim to ensure that products meet customers’ quality requirements.
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Quality Risk Management
To effectively identify, detect, and prevent qualityrisks, the Penglai Facility has applied three majorquality management tools and principles (8D, 5WHY,and PFMEA) in a coordinated manner so to planand ensure the control of quality. After analysing thefailure modes of early-stage risks, risk managementand control measures are input into the qualitycontrol plan to establish a quality management plan,ensuring ef?cient quality management throughoutthe entire production process. For potentialquality-related issues that are identi?ed, we usequality management tools to conduct analysis andinvestigation, and develop speci?c quality controlplans as the basis for product quality inspection.Regular quality inspections are also conductedduring the production process according to thequality control plans. In case of quality-related issues,the Company will require relevant departments to takethe following measures to avoid the recurrence ofsuch issues: conducting on-site analysis, formulatingand implementing solutions immediately, developinga prevention plan after these quality issues areproperly addressed, summarising the lessons learnt,and recording them in the quality repository.The Company has established the Change
Management Control Procedure to standardisethe process when technological deviations occurprior to product production. In such cases, thefacility needs to conduct technical clari?cation withcustomers in accordance with the control procedure,discuss in detail with customers the extent of theimpact of the technological deviation on quality andpotential solutions, and then make adjustments tothe technological process and split the process ?owaccording to the agreed-upon plan. The adjustedplan is then issued to the production department forimplementation to ensure that the product qualitymeets customer requirements. We will rework,repair, or scrap non-conforming products in atimely manner depending on the severity of qualityissues. In addition, the Company has formulatedthe Non-conforming Product Control Procedure,specifying that inferior products and defectiveproducts shall be reworked, repaired, or scrappeddepending on the severity of the quality issues.Production Quality Objectives
The Company sets annual quality managementtargets in key procedures, such as technicalprocesses, production capabilities, product types,and calibration of quality measurement instruments.At the same time, each facility conducts monthlymonitoring, statistics, and analysis of the targetquali?cation rate, takes corrective measures for anysubstandard situations, and thoroughly analysesand summarises all quality issues to prevent similarproblems from recurring.
Dajin Heavy Industry
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Dajin Heavy Industry
Measures to Improve Product QualityThe Company constantly adopts cutting-edgeproduction techniques to enhance the ability inquality assurance of its products. Each production-related departments also keep promoting theef?ciency in quality management by implementingdigital solutions and measures to protect ?nishedproducts.
Protection of Finished Product
Penglai Facility takes several measures to protect the?nished products and avoid product damage causedby bumping or scratches. The production workshopminimises the bumping cylinder during lifting bytaking measures, such as ?tting aluminium plates andrubbers on the hook. Rubber is also placed in thetemporary placement area to avoid scratches duringlifting operations. All these efforts are made to ensurethat ?nished products meet quality standard and toavoid unnecessary rework.
Hook with a Protective Layer and the Rubber Buffer Zone
Application of Digital TechnologyPenglai Facility actively employs techniques such asonline monitoring, digital simulation, and intelligentdata calculation for production process simulationand production quality monitoring, thereby enhancingthe ef?ciency of quality management. This year,the Facility has adopted ?nite element simulationtechnology for the ?rst time to conduct simulationanalysis of the actual working conditions of the liftingprocess. Through the veri?cation of the strength anddeformation of multiple structures, the Facility hasbeen able to complete lifting operations with theminimum use of materials, ensuring both quality andquantity with the help of this solution.
Diagram of Finite Element Simulation
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Pursuing High-Quality Products and ServiceSecuring Employee Health and SafetyCreating a Harmonious WorkplaceBuilding a Sustainable Supply Chain
Dajin Heavy Industry
Raising Awareness to Improve QualityThe Company always emphasises the participationof all employees in quality management, continuouslyconducting quality training and idea exchanges foremployees of all levels, enhancing their sense ofparticipation and responsibility in quality control.At the same time, the Company has established aquality award fund to reward employees who excelin quality management on a regular basis, thusstimulating their enthusiasm for quality control.At the beginning of every year, the Companyand all production facilities develop internal andexternal annual quality training plans based on workrequirements, and conduct monthly quality trainingsas arranged. This year, the Quality Departmentof Penglai Facility conducted 31 internal trainingsessions and 13 external sessions to employees,covering skills training, experience sharing, externalforensics, and other aspects. The training programachieved 100% participation of all employeesthroughout the year.
Training before production Training on production skills
the Facility conducts trainingon the correct use of materialsto help employees understandthe properties of them and thecorresponding handling skills.
In addition, the Company emphasis on the quality management of operations by outsourced personnel. Beforeentering the factory, each facility must undergo a review of all outsourced personnels’ professional quali?cationsand conduct a rigorous assessment of their individual capabilities. After being employed, the facility organisesspecial pre-job training, covering areas such as technology, quality, processes, equipment, and production toassist outsourced personnels in understanding the Company’s quality requirements and operational norms.After the training, each outsourced personnel will undertake an assessment evaluating their operational skills,and they can only take up their positions after passing the assessment.
All production workshops of the Company conducted various ongoing production training sessions, mainlyincluding:
Before the start of a project or incase of any changes in the qualityor process requirements, the Facility
will conduct training for employees
involved in each work process toensure the accurate implementationof the processes and techniques as
required.
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Dajin Heavy Industry
Providing High-Quality ServicesDajin Heavy Industry consistently upholds a conceptof creating a customer-oriented service management.We have constantly promoted the re?nement ofour service management system, strengthenedthe standardisation of the entire business processservice standards, and created a comprehensiveand high-quality service level. Moreover, we makeunremitting efforts to establish and maintain goodcooperative relationships with customers in domesticand overseas markets.
Service Management SystemService Management Structure
To implement a comprehensive management system,including pre-sales, sales, and after-sales services,the Company has set up a service managementmodel guided by the headquarters and implementedby all production facilities.
In addition, the Company has developed trainingplans for domestic and overseas sales teams,including regular training sessions focusing onimproving sales management skills and fosteringawareness for good sales performance and forthe understanding of local culture. The aim is toimprove teams’ overall quality and develop theircommunication skills, so that they can succeed in thelocal sales market. The Company set up Europeansubsidiaries and assigned marketing personnelto maintain relationships with customers in theirrespective sales territories to provide high-qualityservices to customers in different regions moreappropriately.
The OverseasBusiness Departmentand Domestic Sales andMarketing Centre have been setup at the headquarters to ensure thesuccessful delivery of products. Thesedepartments are tasked with surveyingand exploring both domestic andoverseas markets based on businessdemands, establishing and maintainingrelationships with customers,supervising the status of projectdelivery and the goodperformance duringproduction.
After receiving newprojects, each productionfacility will establishindependent project teams thatmeet the project requirementsaccording to the needs from clients.The team will conduct regular andstandardised communication withcustomers before the start of theproject, during production, andafter delivery, ensuring timelyunderstanding and responseto customer needs.
The Company’s Service Management Model
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Dajin Heavy Industry
Service Management ProcessesOverseas Businesses
The Overseas Business Division has establisheddifferent business segments based on businesstypes and the countries and regions involved in thebusiness. It classi?es its businesses into overseastower business and overseas offshore business.The Division conducts regular market compliancestudies to analyse the legal compliance risks ofoverseas business, establish partnerships, andformulate management sales processes andstrategies.In addition, it conducts the overall management ofcustomer relationships, regularly communicateswith customers, and collects and handles customerfeedback. The Overseas Business Division hasalso set up a coordinated cooperation mechanismwith all facilities. It assists facilities to understandthe speci?c demands of overseas customers
and follows up on the whole process of projectimplementation to ensure punctuality of deliveryas scheduled. Project teams, in turn, help theDivision to conduct regular market research, so tounderstand overseas customers’ demands in realtime and put forward a service quality optimisationplan. Furthermore, the Division establishes aclosed-loop quality management system. First, itconducts regular satisfaction surveys on productquality and delivery. Then, it analyses the identi?edissues concerning quality of products andservices, and ?nally, it provides improvement plansand tracks the improvement outcomes. In addition,the Company has ongoing communication withoverseas customers’ project representativesstationed in production facilities, so as to discussand solve all production issues before productdelivery, ensuring the delivery of our products.
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Dajin Heavy Industry
Domestic BusinessesThe Domestic Sales and Marketing Centre focuseson sales and business development. It hasestablished the Market Commerce Department,which is responsible for providing technical support,instructing and supervising all facilities in maintainingcustomer relationship, collecting information onbusiness opportunities, bidding quotations, andcontract negotiations. The Company applies a“vertical management” mechanism for domesticbusiness customers. After the Domestic Sales andMarketing Centre wins the business, project teamsfrom all production facilities assign designatedpersonnel to follow up on the whole process, keep upwith real-time changes, and respond to customers’demands in a timely manner.
The Company has complied the External and InternalCommunication Control Procedure and the CustomerSatisfaction Control Procedure and other policies.These procedures aim to standardise the processesand requirements related to handling customercomplaints, ensuring that complaints are handledin a timely and effective manner. Upon receivingcomplaints, the person in charge of the project teamat each production facility should promptly verifythe problems after understanding the customerfeedback and report them to the relevant responsibledepartment. After receiving the feedback, thedepartment should ensure that a brief reply isgiven to the customer by email or phone within 4hours, where a recti?cation plan should be clari?ed.Additionally, evidence of the recti?cation shall besent to the customer within the corresponding time. Ifa longer period of recti?cation is required, necessarycommunication with the customer to discusssolutions should be conducted in advance. In caseof any problem in the product installation process,the after-sales service personnel at the facility willpromptly go to the site to negotiate and communicatewith the customer to ?nd possible solutions.
Customer Satisfaction Survey
The customer satisfaction survey allows us tounderstand our customers’ demands. In light of this,we have formulated the Customer Satisfaction ControlProcedure to standardise processes for collectingcustomer feedback and procedures for handlingcomments, ensuring a timely and high-quality replyto customer comments. After project delivery, weconduct comprehensive customer satisfactionsurveys, focusing on service and product quality anddelivery ef?ciency. We collect customer feedback byhanding the After-sales Service Feedback Recordand the Customer Satisfaction Survey Form to ourcustomers. We then analyse, track, and investigateany issue arising from the feedback, formulaterecti?cation plans, and supervise the implementationof these plans to continuously improve servicequality.
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Dajin Heavy IndustryEnvironmentalSocialGovernanceAppendixTable of ContentsPursuing High-Quality Products and ServiceSecuring Employee Health and SafetyCreating a Harmonious WorkplaceBuilding a Sustainable Supply Chain
Securing Employee Health and SafetyThe Company follows the principle of “Safety Firstwith Prevention as the Core” in production activities. Itdoes so by consistently raising the staff’s awarenessregarding the concept of safe production, as wellas by constantly re?ning the safety managementsystem. The Company strictly complies with the lawsand regulations of the operating location, regularlyidenti?es relevant updates, and formulates detailedproduction safety management system processesbased on business production characteristics.We also adopt diversi?ed safety measures, andcontinuously carry out safety training to implementemployees’ health and production safety awareness.As of the end of 2023, the Company’s long-termoperating production facilities have obtained ISO45001 Occupational Health and Safety Managementcerti?cation, and all production facilities that startedoperation in 2023 have carried out tasks to obtainrelevant certi?cation.
In addition, according to policies, such as theEmployee Assessment Management Regulations,the Company links employees’ KPI related to safeproduction performance with their bonuses. Weclearly de?ne responsibilities to be undertaken byemployees at all levels in case of different gradesof safety accidents due to personal reasons andcorresponding appraisal norms speci?cations. All theabove efforts are made to enhance employees’ senseof responsibility regarding safety management.
Dajin Heavy Industry
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Dajin Heavy Industry
Safety Management SystemThe Company establishes an occupational health andsafety management structure based on ISO 45001and other relevant standards. It also conducts internalaudits annually, in accordance with the standardsto timely identify and improve management defects,and supervises the status to achieve occupationalproduction safety goals at each facility. This year, theCompany’s production safety-related indicators areas follows.
IndicatorUnitData
Number of work-related injuriesconfirmed by localhuman resources andsocial security bureau
person7Number of work-related fatalities
person0Rate of serious workinjury accidents
%0Number of injuryaccidents per 10,000tons of production.
Case/10,000
tons of
production
0.23
Lost hours due towork-related injuries
hour1,900
HSE ManagementDepartmentResponsible for daily healthand safety managementin facilities, includingintroduction of related lawsand rules, establishmentof management systems,and safety supervisionand inspection as wellas emergency drills andtraining.
Safety ManagementPersonnel
Carries out the managementsystems formulated bythe HSE ManagementDepartment, supervisesand manages theimplementation of safetywork within businessdepartments, and reportsthe safety work to the HSEManagement Departmentand accepts the supervisionand guidance from it.
Safety ProductionCommitteeThe top safety managementbody, which supervises andmanages safety matters infacilities.
Occupational Health and Safety Management Structure
The Company implements a hierarchical safety management and control mechanism, and each facility hasestablished a three-level safety management structure consisting of a Safety Production Committee, HSEManagement Department, and safety management personnel, undertaking safety responsibilities in a top-downmechanism.
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Dajin Heavy Industry
Occupational Health and Safety RiskManagement
To enhance the ability to handle safety hazards, theCompany has established the Procedure for HSE RiskAssessment Management and the Safety ProductionInspection System, and conducts the comprehensivehealth and safety risk assessment twice a year.Meanwhile, the Company conducts comprehensivehealth and safety risk identi?cation programs anddevelops targeted risk management measures beforeproduction. During production, the HSE departmentkeeps monitoring identi?ed risks by on-sitesafety hazard inspection, leading a model whichinvolves cooperation among multiple departments,strengthening the ability to identify potential hazards.In 2023, the HSE Management Department organisedweekly, monthly, seasonal, and professional safetyinspections and guided relevant departments torectify the identi?ed safety risks on site. A total of683 safety risks were identi?ed and recti?ed, with arecti?cation rate of 100% over the year. Productionfacilities have also prepared a special emergencyplan for health and safety, and organised emergencydrills to improve their emergency response ability.This year, the Company’s facilities held 29 emergencydrills, covering all employees.
Established the Safety Observation CardManagement System to encourageemployees to engage in the daily safetyobservation, report compliant andnon-compliant safety operations, andpropose suggestions on production safetymanagement.Set a “Box for Safety Observation CardCollection” in of?ce buildings andoperating sites. If employees identifysafety risks in production, they ?ll inthe Safety Observation Card and put itinto the box. The person in charge ofcollecting the box regularly gathers theobservations to summarise and analyseemployee feedback.
The Company encourages all staff to engage inproduction safety risk management by establishingmultiple online and of?ine feedback mechanisms,including:
Health and Safety Management ofOutsourced PersonnelsProduction facilities have implemented the samehealth and safety management policies for bothfull-time employees and outsourced personnels,and formulated the Regulations on the PersonnelManagement of Outsourcing. The Company signsthe HSE contract with outsourced personnels andinforms them of the standards of production safetymanagement and potential production safety risksbefore they enter the workshops. In addition, facilitiesclearly teach outsourced personnels about therequirements and regulations on safe production andoperation. Facilities also organise safety training foroutsourced personnels and provide them with thenecessary labour-protective equipment before theytake their job.
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Dajin Heavy Industry
Safety Management Measures
Case
Penglai Facility introduced special logistics teams toensure transport safety
This year, Penglai Facility cooperated with third-partylogistics companies and adopted the SPMT roll-ontechnology for basic large-scale monopile. This has not onlyimproved the transport ef?ciency but also further guaranteedthe transportation safety.Before the transport stage, the third-party companiesconduct a safety assessment and provide a professionaltransport plan. During the transport, the third-partycompanies ensure the smooth transport of monopilesthrough precise handling and docking technology, andinspect and adjust the ?xtures immediately after load toreduce the safety risk of the entire transport chain. At thesame time, Penglai Facility dispatches watching personnelfor support to enhance the safety risk warning capacity.
Enhancing Special Management
Due to its involvement in marine vessel transportation, Penglai Facility continuously enhancesthe capability of port safety management, regularly refining the Port Facility Security Plan andimplementing ledger registry, safety training, and emergency drills, to ensure that the portoperations comply with the Port Facility Security Rules of the People’s Republic of China andother national laws and regulations, as well as with the International Convention for the Safety ofLife at Sea (SOLAS). This year, Penglai Facility passed the annual audit of port facility securityby local regulatory authorities, completing all work required by law and rectifying any identi?edpotential issues.Based on the characteristics of dock operations, the facility regularly carries out dock safetyhazard investigations and risk assessments in terms of ship berthing and unberthing, loading andunloading, and marine lifesaving safety. At the same time, the facility regularly organises emergencydrills related to port facility security to improve the ability to respond to terrorist threats, discoversuspected explosive devices, discover and deal with suspicious personnel, and other emergencysituations. In addition, the Facility ensures personnel operation safety by installing electronic fences,electric box leakage protection equipment, shore power equipment, and other measures.
Electronic fence on the port of Penglai FacilitySign of security level of Penglai Facility
The Company is constantly ramping up efforts in occupationalhealth and safety management by implementing specialisedmanagement practices, refining regulatory guidelines, andupgrading production facilities. Meanwhile, the Companyorganises a special health and safety medical examination forall employees and in-service outsourced personnels at eachproduction facility every year. Based on job characteristics, theexamination includes speci?c tests for dust, noise, electric arcs,toluene, xylene, and other relevant hazards. Additionally, theCompany conducts an occupational hazard assessment everythree years to stay vigilant about employees’ health and safety.
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Dajin Heavy Industry
Improving Management RegulationsBased on the operational conditions, Penglai Facility optimised operationinstruction manuals such as the Forklift Safety Operation Procedures, theTransporter Safety Operation Procedures and the Instruction Manual for MonopileTransportation Operation and updated the safety guidance process for cranelifting operations. The Facility also further standardised the operating requirementsfor placing cylinder sections onto roller racks, avoiding employee safety riskscaused by improper placement.For warehousing, Penglai Facility has formulated the Safety Operation Instructionfor Raw Material Admission and the Warehouse Management and ControlProcedures, which de?nes the requirements of materials classi?cation, storage,and distribution, to ensure the safe operation of staff when materials are coming inand out of the warehouse.
Upgrading Safety Protection EquipmentThis year, Penglai Facility enhanced safety risk alert by installing warningequipment in all stages of production and operation, including tracking indicatorlight over cranes, sound and light alarm in single-cylinder roller frame, and craneworking indicator light.
Crane Safety Projection Lamp, Alarm for Roller Frame Operation, and Crane Working Indicator Light
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Promoting Safety AwarenessThe Company actively conducts training and emergency drills on production safety to promote theimplementation of the culture of workplace safety. Production facilities have formulated safety related trainingmanagement systems according to the characteristics of departments and workshops, and achieved astandardised mechanism to manage occupational health and safety training.This year, the total hours of safetytraining reached 4,021 hours.In accordance with the Safety Education and TrainingManagement System, Penglai Facility informsall employees of production safety requirementsand highlights safety hazards and risk mitigationmeasures in daily pre-shift meetings, weekly safetyconferences, and monthly safety meetings, as wellas through safety videos and on-site hands-ondisplays. Each production workshop explains thework priorities to ensure the safety of employees, andshares information of safety risks for today’s operationand yesterday’s experience with them during thedaily pre-shift meeting. At the same time, it alsosummarises the key points of safety managementdiscovered during the week in the weekly meeting,strengthening the implementation of safety riskawareness. This year, Penglai Facility focused onpromoting safety training for front-line operators atconstruction sites by carrying out special trainingcourses, such as storage safety training and ?rst aidknowledge training, as well as further strengtheningsafety training for persons in charge and middlemanagement, with a total of 2,347 training hoursprovided.
Total hours of safety training
in this year
4,021h
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Dajin Heavy Industry
Creating a Harmonious WorkplaceDajin Heavy Industry is committed to moving forward with its employees. We create a fair, just, diverse, andequal workplace to attract and retain talents through the development of competitive recruitment, employment,welfare, and compensation policies. We have also established a complete training system to help ouremployees develop in a comprehensive manner.
Protecting Employees’ Rightsand InterestsThe Company’s headquarters and productionfacilities have formulated the Staff Manual andcorresponding management measures in accordancewith the principles of fairness, equity, and openness,and have defined the standards of conduct forrecruitment, resignation, attendance, overtime,and business ethics. By reference to the relevantrequirements of the International Labour Organisation(ILO) and the norms of the place where we operate,we have drawn up the Labour and Human RightsManagement System based on facility operations,which clearly stipulates the prohibition of child labour,forced labour, anti-discrimination, and insults andcorporal punishment, as well as the managementof complaints by employees in defence of theirlegitimate rights and interests.
Pursuing High-Quality Products and ServiceSecuring Employee Health and SafetyCreating a Harmonious WorkplaceBuilding a Sustainable Supply Chain
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Dajin Heavy Industry
Recruitment and TerminationThe Company has established the RecruitmentManagement Regulation and the Staff DismissionManagement Regulation to guarantee employees’legitimate rights and interests in recruitment andtermination. The Recruitment Management Regulationspeci?es that candidates should compete fairly, andthat the principles of avoidance and con?dentialityshould be applied to the recruitment process. Itemphasises that each business unit should introducepersonnel who have no relevant interests with internalemployees and strictly maintain the con?dentialityof the individual information of candidates toensure fairness and equity in hiring. In case ofany non-compliant recruitment or termination, therelevant department of the Company will conduct aninvestigation according to the corresponding rules,report the investigation results to the Company’ssenior management, and formulate solutions. Therelevant department will also have a review andanalysis after such event has been resolved to avoidthe recurrence of similar non-compliance.
Child Labour and Forced LabourThe Company strictly prohibits child labour andenforces related laws and regulations where itoperates, and has established the Prohibitionof Child Labour Management Procedures. TheCompany reviews the identi?cation informationof candidates and establishes personnel ?les toavoid including any child labour when hiring. TheCompany and the production facilities ensure thatemployees of the Company are hired on a voluntarybasis in accordance with the social responsibilitymanagement system, and stipulate that all forcedlabour is prohibited related to violence, threat, orrestriction of personal freedom and other cases.
Outsourced Personnel Recruitment Management
The Company keeps strengthening the managementof outsourced personnel recruitment and hasestablished a series of management policies, suchas the Outsourcing Management Regulation, theOutsourcing Bidding Management Policy, and theOutsourcing Social Responsibility ManagementPolicy, to standardise the management of theoutsourced companies and outsourced personnels.When screening outsourcing companies, theCompany requires every facility to focus on thequali?cations, scale, performance, and labourdisputes of the potential outsourced companies toensure their legal compliance. Besides, the facilitiesare required to carry out review processes, such asentry review, quali?cation review, and personal abilityassessment for outsourced personnels before theyjoin the Company to ensure that they are quali?ed.
EnvironmentalSocialGovernanceAppendixTable of ContentsPursuing High-Quality Products and ServiceSecuring Employee Health and SafetyCreating a Harmonious WorkplaceBuilding a Sustainable Supply Chain
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Communication and Care
Employee Participation and CommunicationThe Company is committed to building a clear communication and feedbackchannel for employees to ensure their rights to democratic participation. TheProcedure Document of Social Responsibility Management System clearlystates that employees have the freedom of association and the right to collectivebargaining. The headquarters of the Company and the production facilitiesrespond well to employees’ opinions and suggestions by collecting opinions,forming labour unions, and signing collective agreements.CaseFuxin Facility establishes labour unionThe Fuxin Facility has established a labour union, implemented a staffrepresentative congress system, and held regular representative forumsto collect employee opinions and suggestions. By the end of 2023, 95% ofemployees have joined the labour union. During the year, the labour unionof the facility held a staff representative forum and elected representativesto conduct collective bargaining. After fully soliciting opinions from the staff,the forum formed the Collective Contract (Draft). It also formulated specialcollective contracts for wages, occupational safety and health, and specialprotection for female workers.
Employee ComplaintsThe Company clearly stipulates in theLabour and Human Rights ManagementPolicy that when employees are unfairlytreated in terms of salary, remuneration,recruitment or termination, welfare,and training, they can report to theirbelonging departments or the HumanResources Department through oraland written forms. When a complaintis received, the Department head willinvestigate the complaint in accordancewith the provisions of the complaint andreporting management regulations,work out a solution, and handle itappropriately in accordance with therelevant policies and procedures ofcomplaint management, so as to ensurethat the complaint is well handledand to prevent similar incidents fromrecurring.
Satisfaction SurveyThe Company regularly conductsemployee satisfaction surveys tounderstand employee’s feedback ontime. It also comprehensively analysesemployee recognition of the Companythrough the survey, and formulatesrecti?cation or improvement plansfor centralised issues, effectivelyaddressing common employeeconcerns. Fuxin Facility carries out asatisfaction survey for all employeesonce a year, which includes topics,such as employee development, workcontent, and bene?ts and welfare.After the survey, the facility will solvethe identi?ed problems to ensure thatan effective response is provided toemployees.
Dajin Heavy IndustryEnvironmentalSocialGovernanceAppendixTable of Contents
Pursuing High-Quality Products and ServiceSecuring Employee Health and SafetyCreating a Harmonious WorkplaceBuilding a Sustainable Supply Chain
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Compensation and Promotion
The Company adheres to the idea of equalpay for equal work in payroll management. TheCompany’s headquarters formulate remunerationmanagement guidelines, and each production facilityshall independently decide and manage its ownremuneration system under these, so as to formulateremuneration management systems in line with thebusiness characteristics of each operating division,ensuring a competitive remuneration plan.To ensure fair and equitable promotion opportunitiesfor employees, the Company conducts promotionassessment for management positions based on?ve criteria: “performance during the promotioninterview”, “work performance”, “cognitive ability”,“personal development plan”, and “cultural identity”.After passing the promotion interview, the Companywill provide feedback on the interview resultsvia email, ensuring that promotion decisions arewell-documented and evidence based.
Diversity and EquityThe Company is committed to creating a workenvironment of equity and mutual respect. Followingby the guidelines of the headquarters, eachproduction facility emphasises the importance ofequity and respect and prevents unconscious biasesthat undermine the corporate culture of equality.Penglai Facility clearly stipulates in the ProcedureDocument of Social Responsibility ManagementSystem that it opposes any unequal treatment basedon race, religious belief, physical condition, gender,age, and other factors. Fuxin Facility emphasisesequal pay for equal work for both male and femaleemployees and equal opportunities for recruitmentand promotion in the Measures for the Managementof the Remuneration System, so to create a workplaceof equality and mutual respect.
The Company also attaches importance to protectingthe rights and interests of female employees andtheir welfare. During the period of pregnancy andbreastfeeding of female employees, the Companyprovides them with ?exible working hours, allowsremote working, and provides paid maternity leave,childcare leave, and paternity leave for all employeesin accordance with national regulations. Besides, theCompany focuses on the care of female employees,and offers facilities such as the “Care Room forFemale Employees” to provide further conveniencefor female employees during the breastfeedingperiod.
Dajin Heavy Industry
Pursuing High-Quality Products and ServiceSecuring Employee Health and SafetyCreating a Harmonious WorkplaceBuilding a Sustainable Supply Chain
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Boosting Employee DevelopmentDuring the year, the Company built ahuman resources business partner(HRBP) model to ?nd and cultivate talentsin each business division, providingemployees with more personalisedand professional services through aprofessional HRBP team.
Training System Framework
Training for new
joiners
Training for professional certication/enhancementCultural trainingNew joinerprogram
Marketing
program
Productionprogram
General skillprogram
CulturalactivitiesCustomized training on thematic issuesHuman Resources, Finance, Workshops, Cases with geographic characteristics, etc.Offline trainingOnline training
Training operation systemDemand research, Budget management, Project design, Project implementation, Training assessment
Training form Lecture
Dajin Heavy Industry Training System
In addition, to promote thehigh-quality development oftalents in the Company, wesupport employees to participatein ability training courses inthe Senior Certi?ed WeldingInspector (SCWI), anti-corrosioninspector, Phased Array UltrasonicTesting (PAUT) etc., and obtainprofessional quali?cationcerti?cates, with all relatedexpenses borne by the Company.
Employee Training Management SystemThe Company continues to build a sound employee training management mechanism. The headquarters of the Company haveformulated the Dajin Heavy Industry Training Management Policy, and established a standardised and customised project-basedtraining system focused on the idea of “skill-based & culture-oriented”. To implement the standardised management of training, eachbusiness unit of the Company is required to prepare an annual training plan at the beginning of each year and issue a monthly trainingreport based on the monthly tracking of the training plan. The Human Resources Administration Centre at the Company’s headquarterssummarises and analyses the monthly training reports, and continuously tracks the training results of each business unit.
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Xing An’meng Facility formulated the Staff Skills Matrix Management System to expand the talentpool and promote the progress of the “Quality Project” program. During the year, the Facilitycarried out the capacity enhancement training 74 times and the job standardisation training 40times, based on its training plan, with a total of 263 training hours, which effectively improved thequality and skill level of the employees.
Zhangjiakou Facility held a welding skills competitionto improve the employees’ professional and technicalabilities, implementing the concept of “Talent-basedEnterprise”. A total of 45 welders actively participatedin this competition, among which 3 stood out and wereawarded the title of “Excellent Welder”. After the skillscompetition, the person in charge of the Facility heldan experience exchange meeting with professional andtechnical personnel and excellent contestants. Theytogether formulated a welding technology improvementplan in line with production characteristics to improve theworkshop’s welding skills.
Case
Case
Case
Penglai Facility carries out customised training to meet business needsIn this year, Penglai Facility has formulated its annual training plan based on job responsibilitiesand requirements, as well as on the investigation of needs from the assessment of employees’ skillshortages using the “personnel skill matrix”, aiming to improve employees’ business capabilities. In2023, Penglai Facility provided a total of 134 training sessions with a total of 286.5 hours of training.Meanwhile, in response to the increasing quali?cation requirements of overseas customers for theCompany, Penglai Facility assisted 84 employees in enrolling in external professional certi?catetraining and obtaining certi?cations, which not only responded to the needs of overseas customersbut also improved the employees’ work abilities.
Fuxin Facility established a multi-level training system
Based on the Company’s overall training structure, Fuxin Facility established a multi-level trainingsystem that focuses on training for onboarding, job standardisation, and competence enhancement.The goal of these trainings is to help employees understand the Company’s management standards,master the necessary job skills, and continuously improve their professional competence. In 2023,Fuxin Facility carried out a total of 76 training sessions for all employees on technical processoperation, quality and production drawing speci?cations, and general knowledge of HSE laws andregulations.
Xing An’meng Facility promoted “quality project” to expand its talent pool
CaseZhangjiakou Facility held welding skills competition
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Employee Promotion System
The Company has established a comprehensivematerial incentive system for its employees, providingspecial bonuses to employees at all levels andequity incentives to core middle-level managers andexecutives, in order to fully enhance employees’ workenthusiasm. At the same time, the Company alsoprovides non-material incentives, such as promotions,honours, recognitions, and bene?ts to all employees,aiming to stimulate employees’ initiative to improvework efficiency and achieve mutual growth with theCompany.
The Company has continuously improved its talent promotion system. This year, the Company has refinedemployee promotion paths, which include two types of paths and eight ranks based on job positions.
Appointment promotionThe fast track for employee promotion. Itis mainly for employees who have assumedcore responsibilities and made practicalcontributions in their positions. Through thecore position selection mechanism, suitable
talents are selected, and opportunities for
experience and training are created
for them.
Rank promotionThe regular promotion channel foremployees. It is mainly designed forthose who have improved their personalabilities and are seeking promotions to higherranks and more challenging positions. Thischannel aims to satisfy employees’ careerdevelopment needs and open up a pathfor junior employees to move intocore management positions.
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Advocating Employee Care
Employee Care Activities
The Company is committed to creating a warm andfriendly workplace and a robust bene?ts system. TheCompany’s headquarters offer employees ?exibleworking hours and additional days off on statutoryholidays. Based on national laws and regulations,the headquarters and each facility purchaseadditional accident insurance and other commercialinsurances for employees to further ensure thesafety of employees’ work and lives. Additionally, theCompany carries out a variety of employee activities,and provides employees with afternoon tea, birthdayparty, sports games, holiday party, and other welfareactivities to enhance employees’ happiness andsense of belonging.Each facility considers the diverse dietary needsof employees and assists them in maintaining ahealthy diet by preparing chilled mung bean soup insummer and hot ginger-infused cola in winter. At thesame time, labour unions at some facilities activelycarry out activities such as the “sending coolness insummer and warmth in winter” program to provideassistance and support to families of employeesfacing dif?culties. This year, a total of 10 employeesfacing dif?culties were visited and given care.
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Building a Sustainable Supply Chain
Dajin Heavy Industry insists on building a sustainablesupply chain management system. In order tomaintain the stability and continuity of the supplychain, the Company has incorporated ESG risks intothe lifecycle management of suppliers, and continuesto carry out ESG training for suppliers. Dajin iscommitted to jointly creating a supply chain withenvironmentally friendly performance and operatingwith transparent governance.The Company’s suppliers are divided into suppliersof main materials (e.g., steel plates, ?anges,paints, etc.), suppliers of auxiliary materials (e.g.,packaging materials, tooling, etc.), and suppliers ofother production services. Considering ESG-relatedrisks and impacts, the Company ?rst implementedESG-related management to suppliers of mainmaterials and auxiliary materials. During the year, theCompany conducted transactions with 65 suppliersof main materials and auxiliary materials, and thetransaction amount accounted for approximately 90%of the total transactions.
Supplier Management System
Meanwhile, the Company has formulated theGreen Supply Chain Management Method, whichde?nes the need to take the environmental impactof suppliers’ production and operation into accountwhen purchasing. In addition, the Company’s greenprocurement process has been de?ned in theProcurement Control Procedures. For more detailon green management measures for supply chain,please refer to Chapter “Reducing the ProductionCarbon Footprint”.Con?ict Minerals and Hazardous SubstancesManagement
Some of the Company’s suppliers are involved in theuse of con?ict minerals (i.e., cobalt, gold, tantalum, tin,tungsten, mica) and the risk of hazardous substances.Before cooperating, these suppliers are required tosign the Declaration of Metal Con?ict-Free and provideREACH-compliant hazardous substance certi?cates,ensuring that the suppliers do not use con?ict mineralsin their production processes and manage hazardoussubstances in a compliant manner.
The Company adopts a management model inwhich the Supply Chain Centre in the headquartersas the core and production facilities performsaccess, auditing, and procurement assessments incoordination to ensure that their quality meets theoverall requirements of the Company. To regulatesuppliers’ social responsibility and ESG management,the Company has formulated the Supplier SocialResponsibility Code of Conduct, which sets outmanagement requirements for labour rights andinterests, health and safety, environmental protection,business ethics, and other related requirements.It also requires suppliers to conduct ESG riskassessment and sustainability management, andtake audits of their own suppliers by take the contentof the Code of Conduct into consideration.
Number of relevant suppliersparticipating in in-person organisedby the Company or third-party ESGassessments
Suppliers
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Dajin Heavy Industry
During the supplier admission stage, ifserious ESG-related non-conformities arefound, after comprehensive assessment,the Company will provide recti?cationsuggestions to the supplier and requirethem to complete recti?cation withina speci?ed time and submit a writtenrecti?cation report. During the recti?cationperiod, the Company will suspend signingnew purchase orders with them.
Supplier Management Process
For suppliers that have already establishedcooperation with the Company, weregularly conduct online and of?ineaudits. If any non-conformities related toESG are found, the Company will requiresuppliers to complete recti?cation withinone month and provide written evidenceof their recti?cation efforts. Meanwhile, theCompany will verify the effectiveness of thesuppliers’ recti?cation measures. If theydo not meet the recti?cation requirements,suppliers will be required to continue withtheir recti?cation efforts.
Dajin Heavy Industry has included social responsibilityand ESG compliance audits in its key considerationsfor new supplier admission and regular supplierassessment. With reference to the SupplierAssessment Form, the Company scores suppliers onthe prohibition of child labour, forced labour, businessethics, environmental protection, and employeehealth and safety during new supplier admission andsupplier assessment, and comprehensively evaluatessuppliers’ ESG performance. Prior to cooperation,agreements such as the Agreement on Environmental,Occupational, Health, and Safety Management ofRelevant Parties and the Integrity Agreement aresigned to set requirements for suppliers’ behavioursin clean production, health and safety, businessethics, and other behaviours. In case of violationof the relevant agreements during the cooperation,the Company will reduce the procurement amount,suspend, or terminate the cooperation with therelevant suppliers depending on the severity.
Supplier admissionSupplier audit
Dajin Heavy Industry insists on keeping a compliant and honestoperation, building a responsible corporate image. The Companysteadily improves the ability in maintaining good governance andrisk management, striving to create long-term value for shareholdersand society.
Corporate Governance Structure
GOVERNANCE
Compliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Corporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Dajin Heavy Industry
Dajin Heavy Industry strictly complies with the Company Law of the People’sRepublic of China, the Securities Law of the People’s Republic of China, and otherrelevant laws and regulations, as well as the Code of Corporate Governance forListed Companies, the Corporate Governance Code, the Trading Rules of ShenzhenStock Exchange, and other relevant normative documents. On this basis, theCompany has established an operational mechanism with “Three Boards and OneManagement”, i.e., the General Meeting of Shareholders, the Board of Directors,the Board of Supervisors, and the Senior Management. Under this mechanism,ownership, decision-making power, supervisory power, and management power arevested in the General Meeting of Shareholders, the Board of Directors, the Boardof Supervisors, and the Senior Management, respectively, to ensure the ef?cientoperation of the Company through the balance of powers. The Board of Directorshas set up four specialised committees, namely, the Strategy and SustainabilityCommittee, the Audit Committee, the Nomination Committee, and the Remunerationand Appraisal Committee. They assist the Board of Directors in performing functionsin the aspects of strategic and sustainable development, audit, nomination andremuneration, and appraisal, respectively, and support the Company in realisingef?cient operations in all business areas. Meanwhile, the Company attaches greatimportance to the diversity of gender and background on the Board of Directors andmanagement to enhance the Company’s management capability in decision-makingand risk management in all aspects.
Corporate Governance Structure
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Corporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Dajin Heavy Industry
For more details on corporate governance,please refer our 2023 Annual Report.
General Meeting of
Shareholders
The General Meeting ofShareholders, as the highestauthority of the Company,standardises the convening,holding, and voting proceduresof the shareholders’ meeting,treats all shareholders equally,and ensures that all shareholdersfully exercise their rights instrict accordance with theprovisions and requirementsof the Company Law of thePeople’s Republic of China,the Securities Law of thePeople’s Republic of China,the Articles of Association,and the Rules of Proceduresfor the General Meeting ofShareholders.
Board of DirectorsThe Board of Directors, as the decision-making body for the operationof the Company, exercises its authority in accordance with the lawand holds accountable to the General Meeting of Shareholders. TheCompany appoints directors in strict accordance with the proceduresspeci?ed in the Company Law of the People’s Republic of China andthe Articles of Association, which stipulate that the Board of Directorsshall consist of seven directors, including at least three independentdirectors. The Company has established the Independent DirectorSystem, which clari?es the quali?cations, nomination, and scope ofduties for independent directors.On January 19, 2023, the Company convened its ?rst extraordinarygeneral meeting of shareholders of the year. During the meeting, theboard of directors and the board of supervisors were reelected, wherethe relevant motions and contents were deliberated and approvedby cumulative voting. The meeting elected Mr. Jin Xin, Mr. Sun Xiaole,Mr. Tian Mingjun, and Ms. Liu Aihua as non-independent directors ofthe company, and elected Mr. Cai Meng, Mr. Qu Guangjie, and Ms.Zhang Wei as independent directors of the company. Ms. Ji Xiuli andMr. Li Haizhe were elected as the supervisors of the ?fth board ofsupervisors of the company.By the end of this reporting period, the number of directors of theCompany is in accordance with the number speci?ed in the articles ofassociation. The Company had two women on the Board of Directors,and the seven Board members had expertise in accounting, legal,consulting, marketing, engineering, etc.
Board of SupervisorsThe Board of Supervisors, asthe supervisory body of theCompany, reports to the GeneralMeeting of Shareholders. TheBoard of Supervisors exercisesits functions and powers inaccordance with the law, andsupervises the Company’ssigni?cant matters, relatedparty transactions, and ?nancialposition, as well as the legalityand compliance of directorsand senior managers, toprotect the legal rights andinterests of the Company andshareholders.
Senior ManagementMain functions of seniormanagement include managingproduction and operation,organising and implementingthe resolutions of the Board ofDirectors and reporting to theBoard of Directors. The Boardof Directors regularly reviewsthe functions delegated tothe management and theirperformance to ensure theeffective operation of theCompany and the interestsof the shareholders. As of theend of this reporting period, theCompany had a total of threesenior management personnel,including two females.
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Corporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Dajin Heavy Industry
Compliant operation of the “three meetings” andtransparent information
Dajin Heavy Industry has always adhered to compliantoperation to relevant regulations by attachinggreat importance to information disclosure and keepimproving the transparency of information. TheCompany protects the interests of investors, andensures the authenticity, timeliness, accuracy,completeness, fairness, and compliance of disclosedinformation. The company actively manages itsrelationship with investors, safeguards the rights andinterests of investors, strictly ful?lls its informationdisclosure obligations in accordance with the laws,administrative regulations, and regulatory documentssuch as the Rules for the Listing of Stocks on theShenzhen Stock Exchange, the Guidance for Self-Discipline and Supervision of Listed Companies onthe Shenzhen Stock Exchange No. 1 – StandardizedOperations of Main Board Listed Companies, as wellas the Information Disclosure Management Systemand other relevant regulations. The disclosures arepublished in the “Securities Times”, “China SecuritiesJournal”, and JCINFO website for investors toaccess.
In 2023, the Company strictly ful?lled its obligationof information disclosure in accordance with relevantlaws and regulations such as the Company Law,the Securities Law and the Management Measuresfor Information Disclosure of Listed Companies, aswell as rules and regulations such as the Articlesof Association and the Information DisclosureManagement System. During the year, the Companyheld 2 shareholders’ meetings, 13 board meetings,and 9 supervisory board meetings, disclosing a totalof 99 announcement documents. The Companyresponded to 113 questions raised by investors onthe Shenzhen Stock Exchange’s interactive platform,with a response rate of 93.39%. For importantprojects that investors are concerned about, theCompany conducted voluntary disclosures on theprogress of the projects. At the same time, theCompany organized investors to conduct on-siteinvestigation and information exchange activitiesat the Penglai Facility in September 2023, focusingon the construction of key bases that investors areconcerned about, with promptly releasing the recordof investor exchange activities.
During the reporting period, the Company conducteda review of its governance system in accordancewith relevant laws, regulations, and normativerequirements, revising and updating 15 institutionaldocuments, including the Articles of Association, theRules of Procedure for Shareholders’ Meetings, theRules of Procedure for Board Meetings, the Rulesof Procedure for Supervisory Board Meetings, theIndependent Director System, the Foreign InvestmentManagement System, the Related Party TransactionDecision-Making Management System, the FundRaising Management System and the InvestorRelations Management System. At the same time, theCompany actively organized directors, supervisors,and senior management to participate in trainingsessions by the securities regulatory bureau and thestock exchange, ensuring that they promptly graspthe latest regulatory information and perform theirduties effectively.
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Corporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Dajin Heavy Industry
Compliance Management
The Company emphasises the importance of fosteringemployees’ compliance awareness in daily operations.The Company conducts regular compliance trainingfor all employees, and provides special trainingfor departments and employees whose work mayinvolve signi?cant compliance risks. This year, withthe launch of clean energy projects by the Company,the Company’s Legal Department conducted specialtraining for relevant departments on legal riskassessment and contract performance compliance,and addressed their uncertainties. The aim was toassist the departments and employees in respondingto compliance risks effectively when running the newbusiness.During the reporting year, the Company had no majorviolations or breaches involving product and serviceinformation and labelling, marketing, environment,human rights, and business ethics.
Dajin Heavy Industry strictly adheres to legal and compliance operations, and emphasises a proactiveapproach and prevention when managing compliance risks. The Company has formulated the Dajin HeavyIndustry Legal Affairs Management System and the Dajin Heavy Industry Legal Dispute Management Systemas guidelines for compliance management, and has re?ned the division of responsibilities for compliancemanagement according to the nature of each business line. The Company also emphasises strict supervisionof compliance issues, and continues to identify compliance issues through contract audits, lead investigations,and other processes. In addition, the Company regularly evaluates and reports non-compliance incidents in theCompany, and urges relevant departments to review and make recti?cation.
Preventive measures
In daily operations, the Companyconstantly carries out various activities,such as process review, email review,consultation and Q&A, on-site negotiationsupport, and legal due diligence, tointegrate the identi?cation, assessment,prevention, and control of compliancerisks into the Company’s business,in a bid to achieve full coverage ofcompliance review whilst reducing risksof non-compliance.
Proactive managementThe Company focuses on proactivelyidentifying and responding to laws andregulations in business processes andsegments with higher compliance risks.For overseas operations, third-partylaw ?rms are engaged in the businesslocations to assist the Company in riskidenti?cation in accordance with locallaws and regulations, and to keep theCompany informed of overseas legislativedevelopments so that countermeasurescan be developed on time.
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Dajin Heavy Industry
Internal Control and Risk ManagementThe Company attaches greatimportance to risk management,and continues to improve itscapabilities in internal control andrisk management by graduallyestablishing and re?ning delicaterisk management structures andworking systems. In 2022, theCompany of?cially establishedan Audit and Supervision Centreto manage and control theCompany’s risks and internalcontrol procedures and to makesuggestions for improvement torelevant management procedures.The Audit and SupervisionCentre identi?es risk and issuesthrough pre-event, in-event,and post-event internal controlprocedures and follow-up audits.For departments with potentialhigh risks, the Centre urges themto take immediate correctiveaction and will track the status ofrelevant risks.
Risk Management StructureThe Company’s Board of Directors is responsible for assessingand determining the property and degree of the Company’s risks,and has set up an Audit Committee to assist in overseeing theimplementation of risk management actions and the effectivenessof the internal control system. The Company’s Audit andSupervision Centre is responsible for assisting the managementin conducting risk control measures and reporting to the AuditCommittee on a regular basis. In addition, the Centre guides theoperating units to identify and evaluate relevant risks, establisheseffective internal control mechanisms, and assists departmentsin formulating improvement plans for risk management.
ESG Risk ManagementThe Company has integrated ESG risk management into thegeneral risk management system. The Company’s Strategy andSustainability Committee conducts regular reviews of the ESGrisk management and reports regularly to the Board of Directorson the progress of ESG risk management. Under the guidanceof the Strategy and Sustainability Committee, the Audit andSupervision Centre supports the Sustainable Development TaskForce in identifying, evaluating, and preventing signi?cant ESGrisks in daily operations and production, and assists businessdepartments in improving their ESG risk control works. In addition,the Company regularly assesses and inspects the rationality ofprocess control design and the effectiveness of implementationin key areas related to ESG, forming a risk inventory that includesmajor ESG factors. This helps to promote the recti?cation andimplementation of ESG management measures, ensuring theeffective implementation of ESG policies and goals.This year, the Company identi?edmaterial risks related to sustainabledevelopment, including risks of variancein climate-related policies and risks of
management after the expansion ofbusiness scale. For more details about
the risks and response measures,please refer to Risks and CorrespondingCountermeasure sections of theCompany’s 2023 Annual Report.
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Dajin Heavy IndustryEnvironmentalSocialGovernanceAppendixTable of ContentsDajin HeavyCorporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Business Ethics and Anti-corruption
Dajin Heavy Industry attaches great importance tobusiness ethics and anti-corruption management. Wehave formulated relevant policies, regulations, andmanagement standards to combat corruption, fraud,and conflicts of interest. We have also developedcomprehensive business ethics managementguidelines, which are clearly outlined in documentsincluding the Staff Manual and the Action Plan.These guidelines ensure that our employees behaveethically in their daily work. In addition, we continueto improve the business ethics management systemand have established an Audit and SupervisionCentre at the headquarters level, which is responsiblefor overseeing the compliance of business units withbusiness ethics standards at all levels. The Centrepromptly identi?es related risks and urges businessdepartments to make recti?cations.
Business ethics standards of Penglai FacilityThe Action Plan for Penglai Dajin Offshore Heavy Industry Co., Ltd. incorporates ethicalstandards for employees at the Penglai Facility, outlines detailed business ethicsguidelines, and speci?es management regulations. These regulations prohibit bribery andembezzlement, use of public funds for private purposes, abuse of authority, disclosureof Company secrets, and other prohibited actions, which help the facility to create aharmonised and ethical operational environment.
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Dajin Heavy Industry
Business Ethics Governance
The company has always emphasised early detectionand prevention of anti-corruption risks, continuouslystrengthening the investigation of integrity risksand dynamic risk management mechanisms. Westrictly implement an anti-corruption accountabilitysystem, forming a closed-loop management foranti-corruption efforts. If anti-corruption issues arediscovered, after verifying the case, the Audit andSupervision Centre will directly report the relevantsituation to the governance level, and solicit opinionsfrom relevant business departments to handle theissue. At the same time, the company will takemeasures, such as suspending or dismissing theemployees involved, and if necessary, transfer thecase to judicial authorities for processing. The resultsof the handling will be publicised within the company,along with targeted case analysis to prevent similarissues from occurring again.
Risk investigationWe conduct comprehensivecorruption risk investigations
through special audits,classifying and ranking risksbased on their likelihood ofoccurrence and severity.
In addition, when new employees join the Company, we evaluate their relatedness with preexisting employeesaccording to the internal rules and regulations. We also require employees to regularly self-check and declareany kinship with new hires to avoid potential con?icts of interest and favouritism, ensuring objective and fairdecision-making within the Company.
Dynamic control
We track and analysecorruption risks throughoutthe process by collectinginformation on a dynamicbasis, which enablesreal-time warnings and
responses.
Strict accountabilityWe explicitly assign supervisoryresponsibilities and strengthenroutine tracking and oversightthrough targeted approaches. Wealso impose strict accountabilitymeasures on individuals involvedin fraudulent activities.
Corruption Risk Management Process
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Corporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Dajin Heavy Industry
Supplier Anti-corruption ManagementThe Company continuously strengthens its anti-corruption management over suppliers. We employ a comprehensive closed-loop approach that includes pre-sourcingbidding supervision, spot checks and audits at interim payments, and post-violation sanctions. Meanwhile, we have included anti-corruption clauses in our procurementcontracts, clearly stipulating that suppliers are not allowed to engage in any fraudulent or bribery behaviour towards our employees. If a supplier violates theanti-corruption agreement or related clauses during the cooperation period, we will immediately terminate our cooperation with them and add them to our procurementblacklist.
Number of suppliers whohave signed the integrityclauses under the Company’sIntegrity Agreement
Number of production-relatedsuppliers (main materials andauxiliary materials supplier)who have signed the integrityclauses under the Company’sIntegrity Agreement
65.67%
41.54%
89.23%
Total numberTotal numberTotal number882758
Number of production-related suppliers who havesigned the clauses relevantto environment protection,labour rights, labor rightsand business ethic
66Dajin Heavy Industry Co., Ltd | 2023 Sustainability Report
Corporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Dajin Heavy Industry
Business Ethics Customised Training
Integrity Awareness Training
The Company continuously improves the integrity awareness of all employees, and provides various businessethics trainings through online and of?ine channels.On-board trainingThe Company regularly provides post-induction business ethics training to new employees, emphasisingthe importance of anti-fraud and anti-corruption in corporate management. The training clari?es the stakesfor employees, aiming to prevent fraudulent behaviour and the risk of disclosure of business secrets.
Monthly thematic trainingThe Company conducts monthly specialisedtraining for employees in sensitive positionssuch as sales and procurement. The trainingcovers topics including anti-fraud, anti-moneylaundering, information security, and other topics,aiming to strengthen the awareness of integrityand professional ethics among these employeesand continuously promote the awareness of theCompany’s culture of integrity.
Reporting Channels and Whistle-blower ProtectionThe Company has set up multiple public reportingchannels, such as email, telephone, WeChat, andother channels. Upon receiving a complaint, wepromptly assemble a special investigation team toconduct investigations and collect relevant evidence.In doing so, we keep strict con?dentiality of both thewhistle-blowers and their reports, and publicise ourwhistle-blower con?dentiality policy to ?rmly safeguardthe legitimate rights of whistle-blowers to exerciseoversight. We also created a whistleblowing platform onour of?cial website (https://www.dajin.cn/html/report/)to provide a transparent reporting channel forstakeholders.
Publication of Reporting Channels
67Dajin Heavy Industry Co., Ltd | 2023 Sustainability Report
EnvironmentalSocialGovernanceAppendixTable of ContentsCorporate Governance StructureCompliant operation of the “three meetings” and transparent informationCompliance ManagementInternal Control and Risk ManagementBusiness Ethics and Anti-corruption
Dajin Heavy Industry
Information Security and Privacy Protection
The Company adopts various information security technical management measures to comprehensively prevent systemfailures and information leaks, which mainly include the following:
The Company strictly abides by laws and regulations suchas the Cybersecurity Law of the People’s Republic of Chinaand the Data Security Law of the People’s Republic of China.By referencing the requirements of classified protectionfor cybersecurity, we established a sound informationsecurity management framework, covering various aspectsincluding organizational structures, relevant institutions,management processes and personnel. The InformationManagement Department of the Company is responsiblefor the implementation of information security work, suchas the formulation of information security standards andprocedures, the construction of information securitystructures, the monitoring and response to security incidents,and other relevant works. The Company has formulated andkeep updates various standardized rules and regulations,including the Computer Room Management Regulation,the Information System Management Regulation, and theNetwork Management regulation. It has also sorted out andstandardized various business processes related to systempermissions applications, vulnerability patch execution,system backup and recovery, and other relevant operations.To further strengthen the capability of information securitymanagement, the Company has designated a dedicatedperson to be responsible for information security work. Bycontinuously conducting internal and external supervision,the Company ensures the achievement of informationsecurity objectives, including internal attack and defencedrills, and evaluating the information security status withexternal organizations such as information security vendorsand government departments. At the same time, theCompany focuses on protecting customer privacy. Beforecooperating with customers, con?dentiality agreements aresigned, clearly stating the confidentiality requirements ofboth parties regarding information privacy.
Security systemconstruction
We have established a comprehensive information security managementsystem. Through regular reviews and upgrades of the system, we ensurethat all potential security vulnerabilities are promptly identified andremedied.IT infrastructuremanagement
We protect our IT infrastructure from internal and external threats throughvarious measures such as regular inspections, equipment upgrades,patch updates, virus protection, and network monitoring.Applicationsystempermissioncontrol
We implement strict access control policies for application systemsto ensure that only authorized personnel can access and operateinformation within their authorized scope, thus reducing the possibility ofdata leakage.Data backupand recovery
We strictly enforce system backup regulations, performing regular fullbackups, real-time incremental backups, and offline backups for allsystems. We also conduct regular system and data recovery drills toimprove system availability and ensure data security.Employeetraining andawarenessenhancement
We regularly provide information security training to employees to enhancetheir security awareness and operational skills. Through simulated phishingattacks and other methods, we educate employees to identify potentialcybersecurity threats and take appropriate protective measures.Emergencyresponse plan
To tackle unavoidable security incidents, we have developed a detailedemergency response plan. When data breaches or other securityincidents occur, we can take prompt action to limit the scope of the lossand issue timely noti?cations.
68Dajin Heavy Industry Co., Ltd | 2023 Sustainability Report
Other Sustainable Development KPIsGRI Index
Dajin Heavy Industry
IndicatorUnitData
EmployeesTotal number of employeesperson1,630Total number of male employeesperson1,300Total number of female employeesperson330Total number of full-time employeesperson1,630Total number of part-time employeesperson0Total number of employees in the Chinese Mainlandperson1,630Total number of overseas and Hong Kong, Macao, and Taiwanemployees
person
Total number of employees from ethnic minoritiesperson114Total number of employees from vulnerable groups (disabled)person0Total number of employees at management levelperson155Total number of male management employeesperson126Total number of female management employeesperson29Total number of management employees from ethnic minoritiesperson9Total number of management employees from vulnerable groups(disabled)
person
Outsourced personnels
person1,300
Other Sustainable Development KPIs
IndicatorUnitDataNew employees and employee turnoverTotal number of new employeesperson524Total number of new employees from ethnic minoritiesperson29Total number of new employees from vulnerable groups (disabled)person0Total employee turnoverperson380Total employee turnover rate
%25.28TrainingTotal training hourshour15,662Business ethicsPercentage of employees participating in business ethics-relatedtraining
%62Number of reports on business ethicscase0Number of information security-related incidentscase0Diversity of the BoardPercentage of female on the Boards%28.6
Number of outsourced personnels = total working days of all outsourced personnels/theoretical total working days.
Employee turnover rate = total number of turnover within the year/((total number of employee at the beginning of the year + total number of employee at the end of the year)/2)
69Dajin Heavy Industry Co., Ltd | 2023 Sustainability Report
EnvironmentalSocialGovernanceAppendixTable of ContentsOther Sustainable Development KPIsGRI Index
Dajin Heavy Industry
GRI Index
Indicator number and name
Location of our
responseGRI2: General disclosure 2021
The organization and its reporting practices2-1 Organizational detailsPage 22-2 Entities included in the organization’s sustainability reportingPage 22-3 Reporting period, frequency and contact pointPage 22-4 Restatements of informationNAActivities and workers2-6 Activities, value chain and other business relationships
Page 5-9 & theCompany's2023 Annual Report
2.7 EmployeesPage 702-8 Workers who are not employeesPage 70Governance2-9 Governance structure and composition
Page 10 & theCompany's 2023 Annual Report2-10 Nomination and selection of the highest governance body
P61 & the Company's2023 Annual Report2-11 Chair of the highest governance body
the Company's 2023Annual Report2-12 Role of the highest governance body in overseeing the management ofimpacts
Page 62, 64 & theCompany's 2023
Annual Report2-14 Role of the highest governance body in sustainability reportingPage 102-15 Conflicts of interest
the Company's 2023
Annual Report2-16 Communication of critical concernsPage 62-642-17 Collective knowledge of the highest governance bodyPage 10-12
Indicator number and name
Location of our
response
Strategy, policies and practices2-19 Remuneration PolicyPage 51-522-20 Process to determine remunerationPage 51-522-22 Statement on sustainable development strategyPage 8-92-23 Policy commitmentsPage 46, 492-25 Processes to remediate negative impacts
Page 38, 46-48, 49-52,
58, 63-64, 662-26 Mechanisms for seeking advice and raising concernsPage 42, 45, 51, 682-27 Compliance with laws and regulations
Page 29-32,43-47, 49-52, 62-64Stakeholder engagement2-29 Approach to stakeholder engagementPage 112-30 Collective bargaining agreementsPage 51Material topics3-1 Process to determine material topicsPage 11-123-2 List of material topicsPage 12GRI201 Economic performance201-1 Direct economic value generated and distributed
the Company's 2023Annual Report201-2 Financial implications and other risks and opportunities due to climatechange
Page 25-26GRI203 Indirect economic impacts203-1 Infrastructure investments and services supportedPage 6-7
Dajin Heavy Industry Co., Ltd | 2023 Sustainability Report
Other Sustainable Development KPIsGRI Index
Dajin Heavy Industry
Indicator number and name
Location of our
responseGRI205 Anti-corruption3-3 Management of material topicsPage 65-68205-2 Communication and training about anti-corruption policies andprocedures
Page 68GRI206 Anti-competitive Behavior3-3 Management of material topicsPage 65-68206-1 Legal actions for anti-competitive behavior, anti-trust, andmonopoly practices
No such incidents wereidentified in this yearGRI301 Materials301-1 Materials used by weight or volumePage 21301-2 Recycled input materials usedPage 21GRI302 Energy3-3 Management of material topicsPage 17-27302-1 Energy consumption within the organizationPage 21302-3 Energy intensityPage 21302-4 Reduction of energy consumptionPage 20302-5 Reductions in energy requirements of products and servicesPage 18-19GRI303 Water resources3-3 Management of material topicsPage 31303-1 Interactions with water as a shared resourcePage 31-32303-3 Water withdrawalPage 31GRI304 Biodiversity3-3 Management of material topicsPage 32304-2 Significant impacts of activities, products and services onbiodiversity
Page 32
Indicator number and name
Location of our
response
GRI305 Emissions3-3 Management of material topicsPage 17-24305-1 Direct (Scope 1) GHG emissionsPage 21305-2 Energy indirect (Scope 2) GHG emissionsPage 21305-4 GHG emissions intensityPage 21305-5 Reduction of GHG emissionsPage 20-21305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significantair emissions
Page 29GRI306 Waste3-3 Management of material topicsPage 30, 33306-2 Management of significant waste-related impactsPage 30306-3 Waste generatedPage 30306-4 Waste diverted from disposalPage 30306-5 Waste directed to disposalPage 30GRI308 Supplier environmental assessment3-3 Management of material topicsPage 19, 57-58308-1 Suppliers screened using environmental criteriaPage 58GRI401 Employment3-3 Management of material topicsPage 49-52401-1 New employees and employee turnover ratePage 70401-2 Benefits provided to full-time employees that are not provided totemporary or part-time employees
Page 56
Dajin Heavy Industry Co., Ltd | 2023 Sustainability Report
EnvironmentalSocialGovernanceAppendixTable of ContentsOther Sustainable Development KPIsGRI Index
Dajin Heavy Industry
Indicator number and name
Location of our
responseGRI403 Occupational health and safety403-1 Occupational health and safety management systemPage 43-45403-2 Hazard identification, risk assessment, and incident investigationPage 45403-3 Occupational health servicesPage 45403-4 Worker participation, consultation and communication onoccupational health and safety
Page 45-47403-5 Worker training on occupational health and safetyPage 48403-6 Promotion of worker healthPage 47-48403-8 Workers covered by an occupational health and safetymanagement system
Page 43-45403-9 Work-related injuriesPage 44403-10 Work-related ill healthPage 44GRI404 Training and education3-3 Management of material topicsPage 53-55404-2 Programs for upgrading employee skills and transition assistanceprograms
Page 53-54GRI405 Diversity and equal opportunities3-3 Management of material topicsPage 53405-1 Diversity of governance bodies and employeesPage 61GRI406 Non-discrimination3-3 Management of material topicsPage 50406-1 Incidents of discrimination and corrective actions taken
No such incidents were
identified in this year
Indicator number and name
Location of our
responseGRI407 Freedom of association and collective bargaining3-3 Management of material topicsPage 46GRI408 Child labor3-3 Management of material topicsPage 50GRI409 Forced or compulsory labor3-3 Management of material topicsPage 50GRI414 Supplier social assessment3-3 Management of material topicsPage 57-58414-1 New suppliers that were screened using social criteriaPage 58GRI416 Customer health and safety3-3 Management of material topicsPage 35-39416-2 Incidents of non-compliance concerning the health and safetyimpacts of products and services
No such incidents wereidentified in this yearGRI418 Customer Privacy3-3 Management of material topics Page 69418-1 Substantiated complaints concerning breaches of customerprivacy and losses of customer data
No such cases wereidentified in this year
72Dajin Heavy Industry Co., Ltd | 2023 Sustainability Report
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