Website：www.henglin.comTel.: 0572-5227673Address: No. 378, 380, Jiaxi Road, Dipu Subdistrict, Anji County, Huzhou City, Zhejiang Province, China
Henglin Home Furnishings Co., Ltd.
Environmental, Social andGovernance (ESG) Report
Contents
About This Report01
Message from the Chairman
IndexesFeedback Form
About Henglin
Stewardship in the HomeFurnishings Market: UpholdingLawful Operations and Integrity
Annex
Leadership in Low-CarbonDevelopment Trend: Guarding theGreenness of the World
Commitment to Excellence in Quality:
Winning Reputation with SuperiorService
Creation of a Better Future for theHome Furnishing Industry: SharingTrust to Build the Cornerstone forLong-Term Prosperity
Scienti?c and Standardized GovernanceEnhancement of Internal Control and ComplianceOptimization of Investor Relations ManagementUpholding of Business Ethics
Sustainable DevelopmentManagement
Sustainable Development PhilosophyComprehensive Risk ManagementStakeholder CommunicationAnalysis of Substantive IssuesSustainable Development Goals (SDGs) of the United Nations
Driving Innovative R&DBuilding a Responsible Supply ChainStrengthening Quality ControlO?ering Outstanding Quality and ServiceProperly Protecting Information Security
Upholding the Rights and Interests of EmployeesEnsuring the Democratic Life of EmployeesFostering Employee GrowthParallelling Safety and HealthContributing to Social Welfare
Addressing Climate ChangeEnhancement of Environmental GovernanceOptimization of Resource AllocationStrict Control of Pollutant Emissions
Introduction
About This Report
HENGLIN HOME FURNISHINGS CO.,LTD.
This is the ?rst Environmental, Social, and Governance (ESG) report released by Henglin Home Furnishings Co., Ltd. The report adheresto the principles of being objective, standardized, transparent, and comprehensive. It discloses in detail the practical measures andachievements of Henglin in terms of environmental, social and governance.
Appellation DescriptionFor ease of expression and readability, “Henglin Home Furnishings Co., Ltd.” and its subsidiaries are referred to as follows in the contextof this report:
Henglin, the Company, or WeHengyi FurnitureGuangde HenglinHuzhou HengxinRuide SpongeHengyou TechnologyAnhui Euroline
Chuboshi
YOYULOVietnam Henglin
Henglin Home Furnishings Co., Ltd.
Anji Hengyi Furniture Co., Ltd.Guangde Henglin Furnishings Co., Ltd.Huzhou Hengxin Metal Products Co., Ltd.
Ruide Sponge (Zhejiang) Co., Ltd.Anji Hengyou Technology Co., Ltd.Euroline (Anhui) Furniture Co., Ltd.DONGGUAN RIVERSIDE CABINETRIES CORPZheJiang Yongyu Home Furnishings Co., Ltd.
Lista O?ce Group AGVietnam Henglin Home Furnishings Co., Ltd.
Data Sources and Reliability Assurance
All information and data referenced in this report are sourced exclusively from the o?cial documents, statistical reports and ?nancialstatements of Henglin Home Furnishings Co., Ltd., as well as internal data and public information gathered, consolidated and auditedacross functional departments and business units within Henglin. Furthermore, to ensure completeness and continuity of explanations,we have reviewed and extended some content of this report under speci?c topics. Unless otherwise speci?ed, all amounts in this reportare expressed in RMB. Any discrepancy between ?nancial data herein and that in the annual report, the ?nancial data in the annualreport shall prevail.
Reporting Period
This report is an annual report covering the period from January 1, 2023 to December 31, 2023, and some sections herein have beenextended beyond the period to enhance the comparability and perceptiveness of this report.
Reporting ScopeThis report primarily focuses on Henglin Home Furnishings Co., Ltd. Unless otherwise stated, this report covers Henglin HomeFurnishings Co., Ltd. and its subsidiaries (please see details in the 2023 Annual Report of Henglin Home Furnishings Co., Ltd.).
Preparation Basis
Shanghai Stock Exchange Chinese Academy of Social Sciences (CASS) UN Sustainable Development Goals (SDGs) 2030Global Reporting Initiative
Access to this Report
To practice the philosophy of low-carbon environmental protection and sustainable development, this report can be accessed onlineor downloaded in electronic from the websites of the Company (http://www.henglin.com) or the Shanghai Stock Exchange(http://www.sse.com.cn).This report is prepared in Chinese and English respectively. In case of any misunderstanding between theChinese and English versions, the Chinese version will prevail. If you would like to learn more about other information beyond thisreport, you can refer to the annual ?nancial statements or browse the website of the Company.For any feedback or suggestions, you can contact us in the following modes:
Address: No. 378-380, Jiaxi Road, Dipu Subdistrict, Anji County, Huzhou City, Zhejiang Province, ChinaTel.: 0572-5227673Fax: 0572-5227503
TermInterpretation
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
In 2023, China's cross-border e-commerce bene?tedfrom a number of positive developments. Theseincluded the continuous release of dividends fromstable foreign trade policies, the expandingadvantages of the home furnishing supply chain andthe increasing penetration rates of overseasplatforms. The home furnishing export industry hasundergone an evolutionary process from buildinginformation platforms, developing transactionservices, perfecting service chains, to achievingecological development. With the continuousimprovement of compliance and supportingsystems, the industry has formally entered a stage ofhigh-quality development.With the vision of “Becoming a ?rst-class homefurnishing enterprise”, Henglin is committed toproviding global consumers with high-quality,environmentally friendly and healthy homefurnishing products. Devoted to sustainabledevelopment, we actively participate in socialwelfare activities, and make positive contributions tosociety. Our mission is to “Enable the public to enjoya healthy and comfortable lifestyle”. We always focuson improving people’s quality of life and meetingtheir health needs. We develop ergonomic,environmentally friendly, and healthy homefurnishing products, to create a comfortable, healthy,and aesthetically pleasing living environment forconsumers. Adhering to the values of “Integrity,Gratitude, Fairness, and Inclusiveness”, we wincustomers’ trust with integrity, show gratitude tosociety and employees, treat partners andcompetitors with fairness, and continuously innovateand develop with an inclusive spirit.
Steadily steering the home furnishing market, Henglin deeply understands the importance of compliance and internal control to corporategovernance. We adhere to social responsibility and the principle of integrity, and establish a sound internal control system to ensure compliantoperations. We strictly comply with laws and regulations and improve internal rules and regulations to ensure standardized operations. Inaddition, we establish a clear corporate governance structure, attach importance to investor relations management, ensure true and accurateinformation disclosure, and protect the rights and interests of investors.
Stewardship in the Home Furnishings Market: Upholding Lawful Operations and Integrity.
Product quality is an intrinsic property of the furniture industry, the core competitiveness of furniture companies, and an important indicatorfor measuring the development level of furniture enterprises. Henglin pursues excellent quality in the principle of “Professionalism,Enthusiasm, Thoroughness, and Timeliness”. We are committed to continuously improving our service management systems, protecting therights and interests of our customers, and striving to enhance customer satisfaction.We continuously explore the ?eld of comfortable homefurnishings, and improve our R&D and innovation systems. Additionally, we create unique design concepts, integrate professional aestheticdesign into real spaces, and expand the ?eld of comfortable home furnishings with a novel aesthetic perspective, to lead the industry towarda new stage of development.
Commitment to Excellence in Quality: Winning Reputation with Superior Service
Our vision is to become a “First-class home furnishing enterprise” focusing on practicing the values of “Integrity, Gratitude, Fairness, andInclusiveness”. We are always committed to providing customers with green and healthy products and trustworthy services, continuouslydeepening research and development innovation, and pursuing excellence to meet the increasing needs of customers.Looking forward to 2024,Henglin Corporation is deeply aware of the importance of high-quality development. It actively fosters new qualityproductive forces, treating them as a powerful engine for sustainable, high-quality growth. We will integrate green development into allaspects of production and operation, leverage the green advantages of new quality productive forces, and strive to move towards the road ofdevelopment with higher quality, e?ciency, fairness, sustainability and safety. We are con?dent that, with the support of the new qualityproductive force, Henglin will play a role in the advancement of China’s home furnishing industry, contributing to a brighter future for all.
Taking New Quality Productive Force as the Engine to Promote High-Quality Development.
Henglin adheres to the core principles of “Equality and compliance, talent development, democratic communication, and safety production”,upholds the spirit of public welfare, and contributes to society with practical actions, jointly building a prosperous future. We strive for bothinternal and external excellence, actively recruit talents, foster a diverse and inclusive working environment, and safeguard the rights andinterests of employees. Talent is the foundation of Henglin. We prioritize employee growth, placing equal importance on both employeetraining and employee development. Simultaneously, we strive to enhance our safety and technology literacy by prioritizing risk preventionbased on comprehensive risk management, to ensure worry-free safety production. Henglin is willing to work with all parties to create a betterfuture for the home furnishing industry!
Creation of a Better Future for the Home Furnishing Industry: Sharing Trust to Build the Cornerst-one for Long-Term Prosperity.
Green and low-carbon transformation is the core of ecological civilization construction and the key to high-quality economic and socialdevelopment. Henglin adheres to the green ecology, abides by the laws and regulations concerning environmental protection, activelyresponds to the policies, and improves the environmental governance system. Facing global climate change, we rise to challenges, promotegreen production, reduce carbon emissions, and pursue carbon neutrality. We are committed to recycling resources, improving energye?ciency and reducing our environmental impact wherever possible. Henglin will endeavour to adhere to the principles of greendevelopment, with the aspiration of becoming a leading home furnishing enterprise. We will strive to spearhead the new trend of green andlow-carbon development, and we will assist our customers in building green homes.
Leadership in Low-Carbon Development Trend: Guarding the Greenness of the World.
Message from the Chairman
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
About Henglin
Established in 1998, Henglin Home Furnishings Co., Ltd. (Stock Code: 603661.SH) is a national high-tech enterprise integrating R&D,production and sales of home furnishings such as o?ce chairs, sofas, system o?ce furniture, and new material ?oors. Selling ourproducts worldwide, we are a leading developer of healthy seating solutions in China, as well as one of the largest manufacturers andexporters of o?ce chairs domestically.We have consistently pursued the vision of “Becoming a ?rst-class home furnishing enterprise”, and practiced the values of “Integrity,Gratitude, Fairness, and Inclusiveness”. We continuously provide customers and users with satisfactory products and reliable service,and consistently consolidate and enhance our standing within the industry. Furthermore, we actively participate in and lead theresearch and formulation of various standards both domestically and internationally.Meanwhile, drawing from the insights of the “Henglin Institute of Research on Intelligent Healthy Seating Enterprises”, we intensify ourR&D e?orts to continuously enhance the technological level of our healthy seating solutions. We are one of the drafters of the and our independently developed and designed products have won numerous honors andawards both at home and abroad. We have a number of national quali?cations such as Intellectual Property Advantageous Enterprise,Patent Demonstration Enterprise, Industrial Design Center, High-Tech Enterprise, and R&D Center.Attaching great importance to brand in?uence, Henglin is committed to becoming a leading brand of healthy seating trusted byconsumers. With outstanding performance and remarkable contributions, we have been honored “2023 Top 10 Leading EnterprisesAmong Home Furnishing Suppliers”, “2023 Top 10 Leading Brands of O?ce Furniture for Government Procurement”, “2023 Top 10Leading Brands of Chinese O?ce Furniture”, “2023 Top 10 Brands of Chinese Intelligent O?ce Furniture”, “2023 Gold Prize for FurnitureCategory of China Furniture Product Innovation Awards”, and “Top 200 Enterprises in China’s Light Industry”, showcasing our in?uenceand standing in the industry.With the strategic development goal of realizing “Big Home Furnishing”, Henglin is committed to deepening the strategic layout of theindustry. Through the development of ergonomic products, system o?ce furniture, and civilian home furnishings, we integrate andshare industry resources and build Henglin as a “Big Home” brand, providing one-stop home furnishing solutions for consumers.
Company Pro?le
Henglin is dedicated to providing comprehensive space solutions for o?ces and other civil places around the globe. The Companyaspires to create a more ?exible and comfortable living experience for customers. We are proud to o?er a diverse range of products,including o?ce chairs, sofas, system o?ces, new material ?ooring, and more. These products aim to integrate health, technology, andaesthetics in a seamless manner, with the intention of serving as core necessities for the realization of e?cient o?ces and comfortablelives. We are committed to maintaining the highest standards of quality to meet the evolving needs of our customers.Since our establishment, we have consistently expanded our global market reach and diversi?ed our business operations with apioneering and enterprising spirit. In 2019, we successfully expanded into the ?eld of system o?ce furniture by introducing high-endsystem o?ce brand (LO) from Switzerland. In 2021, we further expanded our presence in the home furnishing sector and developeddiversi?ed products such as home cabinets, wardrobes, and wooden doors, enriching our home furnishing product line. In 2022, wefurther broadened the scope of its home furnishing business by introducing the home furnishing brand “YOYU” which specializes in theresearch, development, production and sales of new-material ?oors, wall panels and bamboo furniture. This move signi?cantlyenriched our product line and enhanced our comprehensive competitiveness in the industry.Henglin adheres to the principle of aligning long-term strategies with short-term strategies. To realize our vision of “Becoming a?rst-class home furnishing enterprise”, we continuously promote the “Big Home Furnishings” strategy, focusing on product brandingand dual circulation in both domestic and international markets.
Business Overview
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Company Timeline & Milestones
Established AnjiHenglin FurnitureCo., Ltd.
1998
Entered the foreigntrade market; andobtained ISO9001 andISO14001 certi?cations.
2002
Renamed as ZhejiangHenglin Furniture Co.,Ltd., and built a60,000-square-meterproduction base andput it into productionsuccessfully.
2005
Founded ZhejiangHenglin Chair IndustryCo., Ltd. after theequity reform, andexpanded the area ofthe production base to130,000 square meters.
2007
Got certi?ed as the “TopExporter of China’sO?ce Chairs Industry”by the China Chamberof Commerce for Importand Export of LightIndustrial Products andArts-Crafts.
2008
Recognized as a “NationalHigh-tech Enterprise”.
2010
Realized an outputvalue of more thanRMB 1,000,000,000.
2012
Recognized as awell-known trademarkin China by the StateAdministration forIndustry andCommerce; andestablished the ?rstacademician expertworkstation in China’schair industry.
2014
Henglin was listed onthe A-share market ofthe Shanghai StockExchange under thestock code 603661.
2017
Invested in andconstructed a productionbase in Vietnam;Introduced Switzerland’sleading o?ce furniturebrand “Lista O?ce”; andrenamed as “HenglinHome Furnishings Co.,Ltd.”.
2019
Ventured intocross-bordere-commerce business,with 13.79% of revenuefrom self-own brands.
2020
Expanded into the bighome furnishingmarket in China.
2021
Optimized theoperation mode ofcross-bordere-commerce business,with 42.93% of revenuefrom self-own brands.
2022
Focused oncross-bordere-commerce business,with operating incomeexceeding USD200,000,000.
2023
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Adhering to unique aesthetic concepts, Henglin constantly crafts cost-e?ective and comfortable home furnishings. We continuouslyupgrade product capabilities and infuse seats, o?ce furniture and customized home furnishings with new connotations from functionto appearance, thereby forming a unique “Henglin” style.
To become a ?rst-class home furnishing enterpriseHenglin is committed to providing global consumers with high-quality,environmentally friendly and healthy home furnishing products. Devoted tosustainable development, we actively participate in social welfare activities,and make positive contributions to society.
Integrity, Gratitude, Fairness, andInclusivenessHenglin wins customers’ trust with integrity, showsgratitude to society and employees, treats partners andcompetitors with fairness, and continuously innovatesand develops with an inclusive spirit.
Ergonomic o?cechairs
Height-adjustable
desks
Product SystemCorporate Culture
O?ce space design
O?ce furniture
integrationPackaged serviceCustomized service
Civilian sofasLeisure sofasMassage chairsSPC, VSPC, and other PVC ?oors
Civilian home furnishings: Cost-e?ective and comfortable home furnishings
Vision
MissionValues
System o?ce furniture: Made in Switzerland,
with internationally leading qualityErgonomic products: 26 years of R&D andmanufacturing of healthy seats
To enable the public to enjoy a healthy andcomfortable lifestyleHenglin always focuses on improving people’s quality oflife and meeting their health needs. We developergonomic, environmentally friendly, and healthy homefurnishing products, to create a comfortable, healthy, andaesthetically pleasing living environment for consumers.
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Honor Image
Signi?cant Honors and Quali?cations in 2023
HonorAwarding Authority
Ministry of Industry and Information Technology of the
People’s Republic of ChinaMinistry of Industry and Information Technology of the
People’s Republic of ChinaChina National Light Industry CouncilChina National Light Industry CouncilChina National Light Industry CouncilEconomy and Information Technology Department of
Zhejiang Provincewww.chinabidding.com or www.paihang360.comwww.chinabidding.com or www.paihang360.comNational Bidding Supply Chain Brand Promotion PlatformNational Bidding Supply Chain Brand Promotion Platform
China National Furniture AssociationState Intellectual Property O?ceOrganizing Committee of China Innovative O?ce Furniture
Design AwardsZhejiang Industrial Design AssociationPeople’s Government of Huzhou CityPeople’s Government of Huzhou City
National Green FactoryNational Green Supply Chain Management Enterprise
Top 200 Enterprises in China’s Light IndustryTop 100 Technological Enterprises in China’s Light IndustryTop 10 Enterprises in China’s O?ce Furniture Industry2023 Future Factory Pilot Enterprise of Zhejiang Province2023 Top 10 Leading Enterprises Among Furniture Suppliers2023 Top 10 Leading Brands of O?ce Furniture for Government
Procurement2023 Top 10 Brands of Intelligent O?ce Furniture in China
2023 Top 10 Leading Brands of O?ce Furniture in China2023 Gold Prize for Furniture Category of China Furniture
Product Innovation AwardsExcellent Exterior Design Award in ChinaTop 10 Innovative O?ce Furniture Designs in China InnovativeO?ce Furniture Design AwardsExcellent Design Innovation Products of Zhejiang Industrial
Design Association in 20232023 Major Taxpayer of Huzhou City
ytiC uohzuH ni esirpretnE ”lluB nedloG“ 3202
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key Performance
Operating IncomeRMB8,195,000,000RMB333,000,000
RMB 1.91/shareRMB9,583,000,000
RMB370,000,000
497,377tons11.4583million (kWh)100%
100%100%53times
Total Pro?tTotal Taxes
Basic Earnings per ShareTotal Assets
Total Number of Employees10,2514,084
%60.6%
100%
Number of Female EmployeesPercentage of Contract Workers
Social Insurance CoverageRate
RMB221,000,000Investment in R&DPercentage of Local Employees
Economic Performance
Total Water ConsumptionClean Energy ConsumptionCompliance Rate Observed
in Pollutant Monitoring
2times8times6timesNumber of Shareholders'General Meetings
Number of Board of Directorsmeetings
40%40%
The proportion of female directors inthe Board of Directors
The proportion of independent directors inthe Board of Directors
Number of Board ofSupervisors meetings
Synchronized Operation Rateof Environmental Facilities
Compliance Rate of “ThreeSimultaneities” inEnvironmental Protectionfor Construction Projects
Number of EnvironmentalTraining Sessions
Environmental Performance
Social Performance
Governance Performance
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Sustainable Development Management
With the mission of “Enabling the public to enjoy a healthy and comfortable lifestyle”, Henglin continuously pursues green products andsolutions, and practices the philosophy of sustainable development. Meanwhile, guided by our vision of “Becoming a ?rst-class homefurnishing enterprise”, we are committed to promoting the development of the big home furnishing industry and providing customerswith a more environmentally friendly, healthy and comfortable lifestyle. Upholding the values of “Integrity, Gratitude, Fairness, andInclusiveness”, we adhere to honest operation, express gratitude to society, treat customers and partners fairly, integrate diversecultures, and promote the sustainable development of the Company.
Henglin actively adoptssustainable developmentmeasures to reduce theenvironmental impact caused byproduction activities. We prioritizethe e?cient utilization ofresources, implement greenproduction processes, and reduceenergy consumption and wasteemissions. Meanwhile, we focus onthe environmental performance ofour products to ensure that theproducts we produce meetenvironmental standards andprovide consumers with healthyand environmentally friendlyhome furnishing products.
Henglin focuses on establishing asound governance structure and astandardized managementsystem. We strengthen internalcontrol to ensure compliantoperation and prevent variousrisks. We advocate for open andtransparent communicationmechanisms, encourage employeeparticipation in thedecision-making process, andleverage collective wisdom.Furthermore, we pay attention tocorporate social responsibility,comply with laws and regulationsand business ethics, and maintainthe good reputation of theCompany.
Henglin upholds the values of“Integrity, Gratitude, Fairness, and
Inclusiveness” and actively
participates in social welfare
activities. We care about the
welfare of employees, create a
favorable working environment,
and promote the growth and
development of employees.
Meanwhile, we establish fair and
harmonious relationships with
partners and competitors, jointly
promoting the healthy
development of the industry. In
addition, we are committed to
providing high-quality products
and services, endeavoring to meet
consumer needs and protect their
rights and interests.
Sustainable Development Philosophy
During the Reporting Period, Henglin was committed to deepening risk identi?cation and management, comprehensively examiningvarious risks that may a?ect the long-term development of the Company. The Company conducted in-depth analysis and quantitativeassessment of potential market risks, ?nancial risks, operational risks and technical risks by using risk assessment tools and methods.The assessment covered the uncertainty of the external environment, as well as various aspects of internal operations of the Company.Based on the assessment results, Henglin formulated targeted risk control measures and established relevant process controldocuments to ensure the e?ective implementation of various measures and the timely control of relevant risks, thus providing a solidguarantee for the sustainable and healthy development of the Company.
Comprehensive Risk Management
The needs of stakeholders are considered as our starting point for practicing sustainable development, and we have identi?ed six majorstakeholder groups that could have or have had a signi?cant impact on the Company’s businesses and operations. During thepreparation of this report, we actively collected issues of concern to our stakeholders and incorporated them into our relevantdecision-making processes.We have been relentlessly pursuing the establishment of excellent communication bridges with our stakeholders. We understand andmeet the needs and expectations of all parties in real time through a rich variety of communication channels and forms, including ourWeChat O?cial Account, o?cial website, supplier meetings, and communication with employees and customers. We actively listen tothe core concerns of our stakeholders and continuously optimize our strategies and plans for sustainable development, with the aim ofconsolidating and deepening trust and cooperation with all parties, creating a better future together and realizing a brilliant chapter ofwin-win cooperation.
Stakeholder Communication
Environment
Society
Governance
The Company has established a“Risk and Opportunity AssessmentGroup” which is speci?callyresponsible for comprehensivelyidentifying and managing risks andopportunities in all aspects,including product production,after-sales service, R&D innovation,and personnel management, toensure that potential risks areidenti?ed and addressed in atimely manner.
Each department shall evaluateidenti?ed risks and takeappropriate measures such as riskacceptance, risk reduction and riskavoidance, to eliminate or reducerisks. If risks cannot be eliminated,the Company may choosemethods to reduce or accept risks.
Identi?ed risks are evaluated interms of severity and frequency ofoccurrence, risk coe?cients aredetermined in accordance withevaluation criteria, andcorresponding countermeasuresare taken according to riskcoe?cients.
Risk Identi?cationRisk Assessment
Risk Management System
Risk Response
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Product qualityCustomers’ rights and interestsInformation securityProduct innovation
Improvement of service level and product qualityCustomer satisfaction surveysEnhancement of information security management technologyCustomer complaints and feedback
We have comprehensively considered domestic and international ESG guidelines and social responsibility standards based on therealities of the Company, the expectations of internal and external stakeholders, and the global context of sustainable development. Onthis basis, we have thoroughly identi?ed and assessed substantive issues that have a signi?cant impact on the Company’s sustainabledevelopment, and focused on disclosing relevant information to ensure transparency and integrity.
Analysis of Substantive Issues
Customers
StakeholdersExpectations and DemandsCommunication and Response
Protection of legitimate rights and interestsOccupational training and developmentHumanistic careDiversity and inclusionOccupational health and safety
Employees’ CongressProfessional skills training opportunitiesInternal communication platformEmployee satisfaction surveysVisits and condolences
Employees
Lawful tax paymentAnti-corruptionClimate actionPublic welfare and charity
Government/otherregulatory
Social welfareCommunity development
Communities
Policy directivesCommunication through forumsRoutine communication and reportingSpecial research and on-site meetingsCharitable donationsVisits and condolences
Importance to the CompanyHighExtremely High
Green FactoryEnergy Conservation and EmissionReductionEnvironmental Management SystemRecycling of ResourcesAddressing Climate ChangePollutant Emission ManagementAssessment of Suppliers’Environmental Performance
R&D and InnovationEmployees’ RightsSocial WelfareSupply ChainManagementCustomer Health andSafetyProduct Quality andSafetyOccupational Healthand Safety
Tax PoliciesInformation DisclosureBusiness ethicsCompliance with Laws andRegulationsCorruption PreventionFinancial Performance andRisk Analysis
Intellectual PropertyManagementEmployee Training andSupportDiversity and EqualOpportunityGuarantee of CollectiveBargaining Rights
GovernanceEnvironmentalSocial
Importance to StakeholdersExtremely High
Corporate governanceR&D and innovationInformation disclosureBusiness risksProtection of shareholders’ rightsand interests
General Meeting of ShareholdersInformation DisclosureSSE E-InteractiveCommunication via telephone and emailShareholdersand investors
Integrity and cooperationExperience sharingWin-win cooperationBusiness ethics and reputation
Surveys and visitsExchange and cooperationSocial mediaIntegrity in procurementSupply chainpartners
Key issues
Highly important issues
Moderately important issues
Less important issues
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin is committed to sustainable development. We actively respond to the United Nations’ Sustainable Development Goals (SDGs)and engage in ESG practices, to realize sustainable development and contribute to building a better future.
Sustainable Development Goals (SDGs)of the United Nations
Sustainable DevelopmentGoals (SDGs) of the United
Nations
End poverty in all itsforms everywhere
Participate in social welfare activities,make donations and contributionstotaling nearly RMB ten million, giveback to the society and ful?llcorporate responsibility throughpractical actions.
Strengthen the means ofimplementation andrevitalize the GlobalPartnership forSustainable Development
Continuously promote the constructionof a sustainable supply chain, and worktogether with customers, suppliers, andother partners to create a sustainabledevelopment future.
Ensure healthy livesand promotewell-being for all atall ages
Establish an occupational healthmanagement system, and conductoccupational health examinationsand tests, to create a safe andhealthy working environment foremployees.
Promote peaceful and inclusivesocieties for sustainabledevelopment, provide access tojustice for all and build e?ective,accountable and inclusiveinstitutions at all levels
Uphold the spirit of compliance,ensure timely and accurateinformation disclosure, vigorouslydefend shareholders’ rights andinterests, continuously promote cleangovernance, and resolutely have zerotolerance for corrupt behavior.
Ensure inclusive andequitable qualityeducation andpromote lifelonglearningopportunities for all
Build a training team, establishHenglin Academy, ensure smoothcareer development paths foremployees at all levels andpositions; actively promote socialeducation, and set up theXiaofeng Henglin Education Fund.
Take urgent action tocombat climatechange and its impacts
Actively respond to climate change,adopt sustainable developmentstrategies, reduce carbon emissions, andcontribute to the protection of theearth’s ecological environment.
Achieve genderequality andempower all womenand girls
Create a diverse, inclusive, and harmonious workingenvironment, ?rmly resist all forms of discrimination,e?ectively implement the principle of gender equality, andsupport female employees in achieving work-life balance.Ensure sustainableconsumption andproduction patterns
Strive to quality management system construction,obtain ISO 9001 certi?cation, continuously improvequality management level, and provide customerswith products of higher quality.
Ensure availability and sustainablemanagement of water and sanitationfor all
Ensure access to a?ordable, reliable,sustainable and modern energy for all
Implement e?cient wastewater treatmentmeasures, ensure compliance with standardsfor wastewater discharge, and safeguard thegreen ecological environment.
Build inclusive, safe, risk-resilient andsustainable cities and humansettlements
Strengthen environmental protection measures,optimize energy structure, reduce pollutant emissions,ensure compliance with domestic and internationalenvironmental standards, and jointly build a greenecological environment.
Actively adopt clean energy in the production process, strive toreduce carbon emissions, make e?orts to minimize environmentalimpact, and contribute to sustainable development.
Reduce inequality within and among countriesEnsure that recruitment and promotion opportunities
are fair and just, adhere to the principle of equal pay forequal work, implement democratic management,oppose forced labour, and prohibit the employment ofchild labour.
Promote sustained, inclusive andsustainable economic growth, fulland productive employment anddecent work for all
Implement a reasonable salary and bene?t system, motivateemployees to actively engage in their work; always pay attentionto the physical and mental health of employees, organize sportsand cultural activities, and establish a perfect supportmechanism.
Build resilient infrastructure, promote inclusiveand sustainable industrialization and fosterinnovation
Increase investment in R&D, improve R&D andinnovation systems, and promote the transformationof scienti?c and technological achievements.
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin is committed to actively ful?lling social responsibilities, upholdingthe principles of integrity, adhering to business ethics, establishing a soundinternal control system, and promoting compliance operations tosafeguard the steady development of the Company.
Stewardship in the HomeFurnishings Market: UpholdingLawful Operations andIntegrity
SDGs
Scienti?c and Standardized GovernanceEnhancement of Internal Control and ComplianceOptimization of Investor Relations ManagementUpholding of Business Ethics
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Scienti?c and Standardized Governance
Stable and sustainable corporate governance is an important foundation for enterprises to realize long-term development. In strictcompliance with the relevant requirements of theCompanies and other laws and regulations, Henglin has formulated and improved the and other rules and regulations. The Company continuouslyimproves the internal control system, strengthens institutional guarantee, and standardizes corporate operations.Meanwhile, the Company has established a corporate governance structure with clear responsibilities and powers, and operates in strictaccordance with the governance structure consisting of the General Meeting of Shareholders, the Board of Directors, the Board ofSupervisors and the management, each of which assumes its own responsibilities, coordinates cooperations, and exercises e?ectivechecks and balances, jointly ensuring the scienti?c and normative governance and e?cient operation of the Company.
Improvement of Governance System
Enhancement of Internal Control and Compliance
The Company has constructed and continuously improved a comprehensive, strict and e?ective internal control and risk control systemin strict accordance with the the the the and other relevant laws, regulations and standardized documents.The system covers all operational aspects of the Company, from strategic planning to daily operations, and comprehensively improvesthe Company’s management level and risk prevention capabilities.
Development of Internal Control System
Standardization of the Governance through the General Meeting of Shareholders,Board of Directors, and Board of Supervisors
The Company standardizes the convening, holding and voting procedures of the General Meeting of Shareholders strictly pursuant tothe thetheand adopts a combination of on-site and online voting to facilitate the exercise ofthe rights by all shareholders. This e?ectively ensures that all shareholders, especially small and medium-sized shareholders, can enjoyand fully exercise their corresponding rights as shareholders.
During the reporting period, the Company convened a total of 2 General Meetings of Shareholders,at which 12 proposals were deliberated and adopted.
General Meeting of Shareholders
Board of Directors
Male Directors
Key Performance
The Board of Supervisors of the Company comprises a total of 3 Supervisors, including 1 worker representative supervisor. The numberand composition of the Board of Supervisors comply with legal requirements. In accordance with thethe and other systems, supervisors actively ful?ll their responsibilities, and e?ectively supervisesigni?cant matters and ?nancial status of the Company, and the legality and compliance of directors and senior management’sperformance, to protect the interests of the Company and our shareholders.
During the Reporting Period, the Board of Supervisors convened a total of 6 meetings, and deliberat-ed and adopted 16 proposals.
Board of Supervisors
Key Performance
During the Reporting Period, the Board of Directors convened a total of 8 meetings, and deliberatedand adopted 28 proposals.
Key Performance
40%Female Directors60%Male Directors
60%Non-independe
nt Directors
40%Independent
Directors
Female DirectorsNon-independent
Directors
Independent Directors
In accordance with the and other relevant rules and regulations, the Company always standardizes the procedures for convening and holding themeetings of the Board of Directors, ensures its correct exercise of rights and ful?llment of corresponding obligations. The Board ofDirectors of the Company has four specialised committees: the Strategy Committee, the Remuneration and Assessment Committee, theNomination Committee and the Audit Committee, which jointly supervise and guide the decision-making of the Company and promotethe standardised operation and scienti?c decision-making of the Board of Directors as a whole.The Board of Directors of the Company consists of a total of 5 directors, including 2 female directors and 2 independent directors. Theirindependent and impartial opinions can further enhance the scienti?c and rational decision-making of the Board of Directors. At thesame time, in line with the policy of diversi?cation, the professional backgrounds of directors cover multiple ?elds such as homefurnishing business management, supply chain integration, lean manufacturing, ?nancial management, and mechanical automation,which are highly compatible with the Company’s development needs. They can fully leverage their respective professional expertise tomake cautious decisions and safeguard the interests of the Company and our shareholders.
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
To prudently prevent and control tax risks, ful?ll tax obligations in accordance with the law, and avoid legal sanctions, ?nancial losses,or reputational damage resulting from non-compliance with tax laws, the Company has established a comprehensive tax riskmanagement system based on realities and in accordance with internal risk control documents such as the and
Prevention and Control of Tax Risks
During the Reporting Period, the Company evaluated the e?ectiveness of internal control and engaged a third-partyorganization to issue an independent audit report, and no signi?cant risks and de?ciencies in internal control were found.
Key PerformanceImprove the risk assessment system, continuously monitor the operational risks, ?nancial risks, marketrisks, policy and regulatory risks, and moral risks, to timely identify and assess the various risks faced bythe Company and take necessary control measures;Formulate policies for the management of internal and external information to ensure thatdepartments at all levels are informed of the Company's operation and risk status in a timely manner,and that all types of risk hazards and internal control de?ciencies are properly dealt with.
Enhancing Risk Management
Strengthening the Foundation of Internal Control
Formulate internal control and self-inspection systems and annual internal control and self-inspectionplans based on realities;Arrange the Internal Audit Department and the Finance Department to conduct internal audits andother supervisory work, to achieve full coverage of process audits for each subsidiary and business unit,to comprehensively review the Company’s internal control de?ciencies, to evaluate the e?ectivenessand e?ciency of implementation, and to issue reports on remedial proposals to ensure theimprovement of internal control processes.
Focus on key control activities such as ?nance and related transactions, establish and continuouslyimprove internal control systems such asetc.Improve the control structure and related procedures, and establish corresponding authorization,inspection and accountability systems at each level, as well as checks and balances and supervisionmechanisms between departments and positions.
Through the construction of information systems such as Kingdee EAS and OA systems, the Company ensures the e?cientand standardized ?ow of information and actively explores new methods and mechanisms for information-based tax riskcontrol, promoting comprehensive information control from the business side to the ?nancial side and achieving a high levelof controllability of tax risks.
Strengthening Information System Construction
The Company divides the tax risk management structure into three main levels to enable orderly tax risk managementaround the tax management objectives: the Board of Directors (which provides guidance and authorization), the Tax Director(who is responsible for tax management, including the formulation of tax strategies and overall tax plans), and tax-relateddepartments (which are responsible for speci?c implementation).
Establishing Tax Management Structure
Based on systems such as the the Company has formed awhole-process tax risk management mechanism for tax risk identi?cation, assessment, response, communication andassessment, to promptly follow up on and prevent tax risks and jointly implement corrective actions with variousdepartments.
Building Tax Management Mechanisms
Conducting Supervision and Audit
| 25 | 26 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Compliance Information Disclosure
To promote risk awareness within the Company, cultivate a strong corporate spirit and internal control culture, and create anenvironment where all employees fully understand and ful?ll their responsibilities, the Company actively conducts internal controlpublicity and training activities covering ?nance, audit, risk management, and other areas for employees. This further strengthens theoverall risk control awareness and professionalism of all employees.
Establishment of a Culture of Internal Control
From 2022 to 2023, the Company was awarded the highest rating of “A” by the Shanghai StockExchange for excellent information disclosure.
Key Performance
2021
151515
202220232021
2022Total number of participants ininternal risk control training
（Unit：Person-times）TNumber of internal riskcontrol training sessions
（Unit：Time）
TTotal hours of internal
risk control training（Unit：Hour）20232021
2,592
2,712
2,808
20222023
Internal Control Training Activities
Optimization of Investor Relations Management
In accordance with the the Company has formulated and strictly enforced the and other relevant systems.This establishes standards and norms for reporting and transmitting the Company’s information, prevents major event disclosureomissions, and further enhances the quality of information disclosure.The Company always adheres to the principles of openness, fairness, and impartiality. Through disclosure channels such as the and the website of Shanghai Stock Exchange, the Company disclosesinformation truthfully, accurately, completely, and promptly, ensuring that all investors have equal opportunities to timely accessrelevant information about the Company. During the Reporting Period, the Company disclosed a total of 95 information documentsincluding regular and interim reports (including legal opinions and other relevant intermediary reports), which e?ectively disclosedvarious matters such as the Company’s operation and foreign acquisitions.
Joint Establishment of “Cordial and Clean” Relationship between a Tax Bureau and the CompanyDuring the Reporting Period, Henglin conducted taxlearning activities in conjunction with the Anji TaxationBureau. In the principles of cordial communication andclean operation, the Company actively engaged in thejoint establishment of a “cordial and clean” relationshipwith the tax bureau to share tax management experienceand learn tax law knowledge. Through mutual theoreticallearning, experience sharing and ?eld visits, we learn fromeach other, achieve mutual bene?ts, create win-winresults and build a new type of tax-enterprise relationshiptogether.
Case
| 27 | 28 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
The Company held 3 regular performance exchange meetings,organized 2 large-scale o?ineinvestor exchange meetings, answered and replied to investor calls over a hundred times, andprovided answers to investor-related questions on the SSE E-Interactive Platform for many times.
Key Performance
Enhanced Communication for Investors Relations ManagementThe Company attaches great importance to investor relations management, strictly follows the the Employing a strategy of multi-channel,multi-angle, and multi-level communication, the Company actively enhances investors' comprehensive understanding of the Companythrough a combination of online and o?ine methods. This promotes a healthy relationship between the Company and investors, andcontinues to receive wide recognition and support from the market.
During the Reporting Period, the Company continued to engage in two-way communication with investors to further convey the intrinsicvalue of the Company. The Company also actively explored and innovated communication methods. In the 2022 annual performancebrie?ng, the Company adopted “Live streaming and online interaction” to further strengthen interaction and communication withinvestors. Two large-scale o?ine investor exchange meetings were held, where the management team interacted with investorsface-to-face. Investors were given the opportunity to see production processes and products to gain a more comprehensiveunderstanding of the Company.
Communications with Investors
Honors
Outstanding Board of Directors of the 18th Golden Round Table Award for Boards of Directors ofListed Companies in ChinaOutstanding Practice in 2022 Annual Report Performance Brie?ng by Listed Companies
Email for Investors: hlgf@zjhenglin.com
Investor Field
Surveys
InvestorHotline
InvestorExchangeMeetingsSSEE-Interactive
Performance
Brie?ngs
Online Voting atGeneral Meeting ofShareholders
Communication Channels with Investors
| 29 | 30 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
The Company has established a dedicated channel for reporting integrity issues, which can be accessed through mail, phone, email, andin-person visits. We encourage employees, external stakeholders, and others with pertinent information to participate in the cleangovernance of the Company. We strictly keep con?dential whistleblowers’ information, closely liaise with them through secure means,promptly assess their situation, and provide assistance when needed.
Upholding of Business EthicsIn strict compliance with the requirements of thethe and other laws and regulations, the Company opposes any form of corruption, bribery, monopolization andunfair competition, and actively advocates the business culture of lawful operation, procedural compliance, professional conduct,integrity, and honesty. In order to better protect the interests of the Company and partners, strengthen the disciplinary constraints onbusiness activities and regulate the behavior of personnel, the Company continues to strengthen the prevention of business ethics risks,and promote the creation of a clean and honest operation environment and cooperative relationship.
Henglin continues to deepen the construction of a clean government and resolutely ful?ll relevant responsibilities. We activelyparticipate in municipal thematic meetings on clean government, and strengthen exchanges and cooperation with colleagues in theindustry. At the same time, we organize cadres to visit the Clean Government Education Center, strengthen clean government awarenessthrough real cases, and require all employees to sign the In addition, Henglin uses diversi?ed channels topromote positive examples and create an atmosphere of integrity and honesty in the Company. The Massage Chair Departmentinnovatively conducts activities to improve conducts and enforce disciplines, integrating the construction of clean government into dailymanagement.The Company continues to improve more than 10 systems such as the and the to standardize information disclosure. We have issued the and installed 15 suggestion boxes to facilitate the Audit Department in strengthening the audit andsupervision of procurement, bidding, job rotation, and other aspects, rigorously identifying any violation of business ethics.
Enhanced Construction of Clean Government
Clean Governance Mechanism
In order to e?ectively enhance the awareness of business ethics among all employees, the Company continuously strengthens integritytraining and anti-corruption publicity on topics related to anti-corruption and anti-bribery, and regularly o?ers integrity training topromote publicity through case studies and foster an internal environment of fairness and justice. The Company also pays simultaneousattention to business integrity in the process of cooperation with all relevant parties, organizes employees and partners to sign the and sends the by email at the end of each year, clearly specifying the requirementsfor the integrity and honesty of both parties under common supervision. The Company always seriously deals with violators inaccordance with the relevant regulations.
Construction of a Culture of Integrity
During the Reporting Period, 100% of employees and partners of the Company signed the Commitment to Integrity. Wehave always adhered to the principle of honesty and integrity, and promptly safeguarded the interests of the Company andrelated parties, demonstrating a high degree of professional ethics and social responsibility.
Key Performance
Clean Government Education Classroom
Protection of Shareholders’ Rights and InterestsWhile focusing on achieving development, the Company also attaches great importance to the rights and interests of shareholders,especially small and medium-sized shareholders, continuously rewards vast investors and shares the fruits of development. Since itslisting, the Company, in active response to cash dividend guidelines, has formulated the andthe and established a continuous, stable, and e?ective return mechanism for investorswithout a?ecting the sustainable operating capabilities and long-term development of the Company. This aims to achieve a “win-win”result to protect the interests of both investors and the Company. As of the disclosure date of this report, the Company has cumulativelydistributed RMB 478,000,000 of dividends since its listing.
Total Cash Dividends(including repurchases) for
2021-2023
RMB 283,000,000
Percentage of Total Cash Dividends for2021-2023 in Consolidated Net Pro?t
Attributable to Parent Company in
These Three Years
29.63%
Percentage of Total Cash Dividends for2021-2023 in Annual Average Net Pro?tAttributable to Parent Company in
These Three Years
88.89%
Visit to Anji Clean Government Education Center
Report Mailbox: The Company has set up report mailboxes in the factory area for employees to submit report letters.Hotline: 18057268801Report Mailbox:tsjy@henglin.com
| 31 | 32 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin adheres to the philosophy of green ecology, complies with laws andregulations concerning environmental protection, and actively responds tonational policies. We improve the environmental management system,clarify responsibilities, establish an emergency mechanism, and promote thestandardization, normalization, and e?ectiveness of environmentalgovernance, striving to realize the vision of “becoming a ?rst-class homefurnishings enterprise”.Addressing Climate ChangeEnhancement of Environmental GovernanceOptimization of Resource AllocationStrict Control of Pollutant Emissions
Leadership in Low-CarbonDevelopment Trend: Guardingthe Greenness of the World.
SDGs
| 33 | 34 |
Addressing Climate ChangeHenglin deeply recognizes the importance of climate change to the operation and long-term development of all enterprises. In the faceof the challenges posed by global climate change, the Company actively responds to them and takes a number of measures to mitigatethe risks posed by climate change. The Company is committed to reducing carbon emissions, promoting green production, striving toachieve carbon neutrality goals, while enhancing resource recycling, improving energy utilization e?ciency, and reducing negativeimpacts on the environment. Henglin always adheres to corporate social responsibility and contributes to the ?ght against climatechange and the realization of sustainable development.
Enhancement of Environmental Governance
Henglin adheres to the philosophy of green ecology, complies with laws and regulations concerning environmental protection, andactively responds to national policies. We improve the environmental management system, clarify responsibilities among departments,establish an environmental emergency mechanism, and promote the standardization, normalization, and e?ectiveness ofenvironmental governance, striving to realize the vision of “becoming a ?rst-class home furnishings enterprise” as soon as possible.
CorporateGovernance
Strategy
使命
RiskManagement
Indicatorsand Goals
Henglin has established a comprehensive environmentalprotection management system and process, continuouslyoptimized the environmental management system,strengthened environmental monitoring and assessment,and ensured that the enterprise's production and operationactivities are carried out under the requirements ofenvironmental protection laws and regulations. Meanwhile,Henglin actively promotes the green transformation,strengthens the publicity and training of environmentalprotection awareness, establishes a green culture, andpromotes the employees to actively participate in theenvironmental protection cause.
Henglin has incorporated green and low-carbondevelopment into its corporate performance evaluationsystem. By establishing an environmental performanceevaluation system, the Company promotes theimplementation of environmental protection initiativesand continuously improves the environmentalperformance management mechanism to improve theCompany's environmental performance.
With the vision of “becoming a ?rst-classhome furnishing enterprise”, Henglin takessustainable development as an importantstrategy for enterprise development, andactively promotes renewable energy,energy saving and emission reduction andother environmental protectiontechnologies, reducing energyconsumption and minimizing pollution andenvironmental impact.
Henglin has formulatedemergency plans to assess andmitigate potential impacts,ensuring smooth production andoperations. Furthermore,Henglin has strengthenedmonitoring and early warning ofclimate change risks, and takentimely measures to reduce risks.
Greenhouse Gas Emission Reduction
tCO2e28,429.06Note: The statistical data scope covers Henglin and its subsidiaries. The greenhouse gas emissions are calculated by referenceto: ; and thegreenhouse gas emission reduction is calculated by reference to:
Note: The statistical data scope covers Henglin and its subsidiaries.
Henglin actively responds to national policies and strictly complies with laws and regulations such as the the the and the We formulate relevantenvironmental protection systems such as the establish a sound environmental managementsystem, and develop appropriate measures to control environmental issues arising from production processes.The Company has established an Environmental Protection Committee and an EHS Regulatory Department, sta?ed with environmentalcoordinators.They are responsible for guiding, inspecting, and supervising the environmental management work of subsidiaries to fullyimplement the environmental responsibility system. The subsidiary companies have established environmental protection working groups,which are responsible for implementing the environmental protection work of the superiors, and are also responsible for the management,supervision and testing of the work.During the Reporting Period, the Company has not been investigated by the environmental protection authorities for environmentalviolations, without any administrative penalty or criminal punishment imposed or any environmental issues detected.
Environmental Management System
Environmental Incidents and violations
Key Performance
| 35 | 36 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
During the Reporting Period, the Company actively pursued environmental management system certi?cation. Both the Company andsubsidiaries obtained GB/T 24001-2016, ISO 9001:2015, and ISO 14001:2015 certi?cations, casting a green development engine with asound environmental management system.
HenglinHengyou TechnologyLO
Huzhou HengxinRuide SpongeChuboshi
Based on the Henglin identi?es and analyzes environmentalfactors, and e?ectively identifying the hazards in the production process. Relevant departments summarize and report thoseenvironmental factors and hazard sources, and make timely recti?cations according to them. The Company regularly commissionsthird-party organizations to conduct environmental impact assessments on the production process and ?les relevant records with theenvironmental protection authorities to reduce the likelihood of adverse impacts and environmental accidents.To address sudden environmental emergencies in environmental management, the Company continuously improves environmentalemergency management system. In accordance with thethe Company has formulatedthe and de?ned the responsibilities of relevant departments to ensure timely response toemergencies and minimize losses caused by the accidents. During the Reporting Period, the Company conducted environmentalemergency drills on a regular basis to improve the response capability and execution ability of relevant personnel to deal withenvironmental emergencies.
Prevention and Control of Environmental Risks
Emergency Personnel Using Sand to Deal With Residual Chemical LiquidDuring the Reporting Period, the Company conducted emergency drills for chemical leakage accidents in productionworkshops such as spraying workshops and chemical warehouses to improve employees’ ability to deal with emergencysituations involving leakage of hazardous chemicals.
Case
| 37 | 38 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin consistently upholds the philosophy of environmental protection and integrates it into the operations, production, and productdesign processes. This aims to build a lifecycle green factory, realize the greening and ecologicalization of products, contribute toachieving the carbon peaking and carbon neutrality goals in the manufacturing sector, and promote the green, low-carbon, andhigh-quality development of the Company.
Promotion of Green Manufacturing
Henglin always adheres to the philosophy of green environmental protection and actively promotes and practices a low-carbon lifestyle.To deeply promote the popularization and implementation of green philosophy, the Company conducts environmental protectionpublicity activities and regularly organizes tree planting activities. Meanwhile, the Company encourages employees to participate in greeno?ce practices, and establish a green and low-carbon image by saving electricity, classifying garbage, and reducing the use of paper.
Advocacy of Green Philosophy
Note: The statistical data scope covers Henglin and its subsidiaries.
Number ofEnvironmentalTraining Sessions:
Number of Participantsin EnvironmentalTraining:
2,982
Total Hours ofEnvironmentalTraining:
479 hours
Added GreeningArea:
10,000m2
Key Performance
The Company aims to continuously improve the greenmanufacturing system and strengthen the green manufacturingbenchmarks. In 2023, through self-assessment, third-partyevaluation, and recommendations by industrial and informationtechnology authorities, Henglin stood out among manyparticipating companies and was selected as a 2023 NationalGreen Factory for outstanding infrastructure construction, e?cientmanagement system, reasonable energy input, andenvironmentally friendly performance.
Green Factory: Henglin was honored as “National Green Factory”
The Company promotes resource recycling and waste reductionand recycling by optimizing manufacturing processes andupgrading equipment systems. Heat recovery is achieved in aircompressors, where a heat exchange device is added to the heatpumps of the air compressor to recover and utilize most of theheat emitted into the air and improve the e?ciency of the aircompressor. The injection molding production line adopts acentralized feeding mode, reducing the number of individualmachines and saving 109,000 kWh of electricity.
Green Production: Optimization and Upgrading of Processes and Technologies
As a leader in the industry, Henglin is always consumer-oriented, and committed to creating a healthierand more environmentally friendly home life. Through continuous innovation and transformation, theCompany launches green products with higher quality and comfort by deeply researching thecharacteristics of new materials. Moore chairs independently designed by the Company have beenawarded the IF Design Award and the Red Dot Award. They have also obtained the GREENGUARDcerti?cation from the United States, which ensures that such chairs are made from 100% recyclablegreen and environmentally friendly materials.
Green Design: Henglin Won Design Awards.
Environmental Protection Publicity and Garbage Classi?cation
Tree Planting Activities for “Protecting Lucid Waters and Lush Mountains and Practicing Green Development”
| 39 | 40 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Note: The statistical data scope covers Henglin andits subsidiaries.
Photovoltaic Power Generation
Guangde HenglinAnhui EurolineHengyou TechnologyHuzhou HengxinVietnam Henglin
Optimization of Resource Allocation
With the introduction of the “carbon peaking and carbon neutrality” goals, Henglin understands the importance of optimizing resourceallocation. We actively act on the national call, improve the energy management system, and optimize the energy structure, to achievegreen and low-carbon development.In strict compliance with the the and other laws and regulations, and based on the and the the Company has formulated theWe divide the functionaldepartments, appoint dedicated energy management personnel, and has established a normalized work mechanism to ensure thee?ective implementation of energy management.
Energy Management System
In an era pursuing green and low-carbon development and to meet the requirements of national policies, enterprises need to transitionfrom traditional resource-consumption modes to sustainable development modes that are green and low-carbon, achievingoptimization of the energy structure. Henglin is committed to energy optimization, attaches great importance to the use of clean energyand the implementation of energy conservation and emission reduction measures, improves energy utilization e?ciency, reducesenergy consumption costs, minimizes the impact on the environment, and contributes to the achievement of the “carbon peaking andcarbon neutrality” goals.
Green electricity trading provides clean energy, helping to reduce the use of high-carbon emission energy sources and lower carbonemissions during the production process. The Company actively promotes green electricity trading, shifting energy use from traditionalcoal power to low-carbon green electricity, thereby optimizing the energy usage structure. During the Reporting Period, the subsidiariesof the Company such as Guande Henglin, Anhui Xinnuo, Hengyou Technology, Huzhou Hengxin, and Vietnam Henglin, have allpurchased green certi?cates.
Henglin prioritizes the use of clean energy in the daily operations andproduction. The Company has cooperated with multiple professionaltechnical enterprises to carry out photovoltaic power generation projects,and actively promotes the construction of distributed photovoltaic powergeneration in factory areas. Since 2015 to date, the Company’s photovoltaicpower generation area has reached 120,000 m2, with an annual powergeneration capacity of over 11 million kWh, reducing standard coal by over5,300 tons per year and carbon dioxide emissions by over 14,000 tons peryear.During the Reporting Period, the PV power generation and electricityconsumption of Henglin and its subsidiaries are shown in the table on the right.
Optimization of Energy Structure
I. Leading Energy Conservation with the Scienti?c Outlookon DevelopmentII. E?ectively Strengthening the Organization andLeadership in the Field of Energy ConservationIII. Fully Understanding the Importance and Urgency ofStrengthening Energy Conservation E?ortsIV. Prioritizing Energy Conservation as an ImportantCurrent TaskV. Vigorously Promoting Technological Advancements inEnergy ConservationVI. Enhancing the Construction of Energy ManagementTeams and Basic WorkDuring the Reporting Period, subsidiaries of the Company such as Hengyi Furniture, Huzhou Hengxin and Hengyou Technology obtainedISO 50001:2018 (Environmental Management System) certi?cation.
The Company has formulated the following energy management principles to thoroughly implement the scienti?c outlook ondevelopment, implement the basic national policy of conserving resources, further strengthen energy conservation e?orts, acceleratethe construction of a resource-saving society, promote economic and social development, reduce energy consumption, improvee?ciency, and implement energy conservation.
Objectives and Policies
Organizational Structure: Three-level Management System
Use of Clean Energy
OrganizationCompositionFunction
Hengyi FurnitureHuzhou HengxinHengyou Technology
Energy Management
Leading GroupEnergy Management Team
Safety and EnergyDepartment
Deputy General Manager in Charge of Production and Operations(serving as the Group Leader), and the Production Manager
(serving as the Deputy Group Leader)
Relevant HODTechnicians and administrators
Making decisions on energy management
Conducting energy management workHandling and coordinating daily a?airs
2023
11.4583
Photovoltaic PowerCapacity (million kWh)
Photovoltaic PowerConsumption (million kWh)
2023
17.8013
| 41 | 42 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Note: The statistical data scope covers Henglin and its subsidiaries.
Total Water Consumption (tons)
497,377.00
Key Performance
Replacement of Diesel Forklifts with Electric ForkliftsBefore: The diesel forklifts in the production workshop consumed approximately 6,500liters of diesel fuel per year.After: The use of diesel forklifts was eliminated, and multiple pure electric forklifts wereintroduced to replace the original diesel forklifts.
Before: The drying temperature for moisture drying was 200-220 °C, and the curingdrying temperature was 195 °C.After: The Company replaced the sensors of moisture drying equipment and calibratedtemperature displays. The drying temperatures for di?erent components wereidenti?ed, and the temperature of moisture drying was reduced to 170-190 ℃. Thelow-temperature plastic powder was put into the curing and drying equipment toreduce the curing point of the plastic powder, so that the curing and drying temperaturewas reduced to about 175 ℃, thus reducing the consumption of natural gas.
Case
Improvement of Curing and Drying Temperature of Spraying Lines
Henglin attaches great importance to the utilization and protection of water resources, advocating the philosophy of harmoniouscoexistence between people and water resources. The Company complies with relevant laws and regulations such as the and actively provides training on water conservation in accordance with relevant regulations on water resourcesmanagement. This aims to enhance the water-saving awareness of all employees and increase the recycling rate of water resources.
Water Resource Management
Continuing to promote electri?cation replacements and driving technological upgrades for energy conservation and emission reductionis a key strategy for the Company to achieve energy transformation, environmental protection, and sustainable development, as well asan important step towards building a green and low-carbon society.During the Reporting Period, Huzhou Hengxin completed the electric vehicle replacement and technology improvement project.
Implementation of Energy Conservation and Emission Reduction
6,500 liters.The diesel fuel consumption
was reduced by
23,200 m?.
The natural gas consumption
was reduced by
Water ?ow is controlled to ensure that water is turned o? when not in use for places where continuous water supplyis not necessary.
The management principle of supplying water on demand is adopted to prevent the waste of water resources inplaces where water consumption is large, such as equipment ?ushing sites and debugging processes.
Training for water users and related management personnel is strengthened, and all water equipment and pipes areregularly inspected to promptly address any leaks.
| 43 | 44 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Note: The statistical data scope covers Henglin and its subsidiaries.
Paper PackagingMaterials (tons)
Plastic PackagingMaterials (tons)
Total Quantity of PackagingMaterials Recycled (tons)
892.81104.28
Key Performance
The Company actively promotes the use of recycled and environmentally friendly materials and continuously expands their proportionof usage. Among all materials used, the proportion of recycled materials reaches over 75%, and the usage rate of green materials reaches100%. In the design stage, while ensuring su?cient strength and safety of products, we make e?orts to minimize material usage throughlightweight and minimalistic designs, further reducing carbon emissions from products.
Recycling: Scrap materials and defective products generated in the injection molding workshop are crushed and addedback into the raw materials in appropriate proportions for reuse, to reduce the usage of raw materials.Emission Reduction: Ordinary carbon steels are replaced with low-emission steels to reduce carbon emissions.De-plasticized Packaging Design: De-plasticized packaging modes are selected in the pre-packaging design to reduce theuse of non-renewable resources.
Optimization of Material Management
Key PerformanceProject OverviewKey IndicatorsCarton packaging for raw materials was decreased, reducing wasteby 2,150 kg per year.Before: Each roll of wrapping ?lm used in the packaging workshop
was individually packaged in paper boxes, resulting in 1,600 kg ofwaste paper boxes per year.
After: Paper box packaging of wrapping ?lm is eliminated, ?xingthe whole pallet with stretch ?lm.
Improvement in Layout of Seating ProductsBefore: The layout length of 10 sets was 7.297 meters.After: The layout length of 10 sets is 7.123 meters.
Waste reduction:
2,150 kg, with a 2.6%increase in recyclableproportion.
The layout wasoptimivzed to reducecosts and solid waste.
110 kg of solid waste was eliminated per year by minimizing raw material trimmings.Before: Barrier cotton, resin cotton, EPE, and others used in
production were purchased in rolls and cut in the cutting workshop.After: Barrier cotton, resin cotton, EPE, and others are cut by the
suppliers and put into the warehouse, eliminating waste materialgeneration.
Waste reduction: 110kg, with a 0.04%increase in recyclableproportion.
Carton packaging for raw materials was decreased, reducing waste by950 kg per year.
Before: Each roll of wrapping ?lm used in the packaging workshop was
individually packaged in paper boxes, resulting in 1,500 kg of waste paper boxesper year.
After: Cancel the carton packaging and ?x the whole pallet with wrapping ?lm.
Waste reduction: 950kg, with a 0.36%increase in recyclableproportion.
Case
| 45 | 46 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Note: The statistical data scope covers Henglin and its subsidiaries.
Compliance RateObserved inPollutant Monitoring100%
Synchronized OperationRate of EnvironmentalFacilities
100%
Compliance Rate of “ThreeSimultaneities” inEnvironmental Protection forConstruction Projects100%
Key Performance
The Company is committed to realizing the vision of “becoming a ?rst-class home furnishing enterprise” and adheres to a strategy ofsustainable and high-quality development. We pledge to minimize the environmental impact during the production process, and strictlycomply with the the as well as local environmental laws, regulations, and standards. The Company has formulated relevantmanagement systems such as the and the and works with subsidiaries to take measures to monitor and control waste water, waste gas, and noise.Every year, the Company commissions third-party organizations to conduct on-site sampling and testing of the waste water, waste gas,and noise generated in the production area. During the Reporting Period, the waste water, waste gas, and noise generated during theproduction process strictly complied with national and local emission standards.
The water consumed by the Company comes from the municipal water supply, which is not used as the main water resource consumedin the production process. The main source of waste water is domestic sewage. To ensure compliance with waste water dischargestandards, the Company has mandated strict implementation of waste water treatment by all departments.
Waste water Management
The main sources of waste gas generated during the production process are process waste gas and domestic waste gas. The Companyfollows laws and regulations such as the andformulates e?ective management measures and methods to prevent and control atmospheric pollution based on productionconditions, reducing pollution to the atmospheric environment.
Waste Gas Management
Strict Control of Pollutant Emissions
Pollutant Emission Management
Waste water from the canteen is pretreated in grease traps before being sent through sewage pipes to themunicipal sewage network for centralized treatment and discharge.Toilet waste water undergoes anaerobic treatment in septic tanks before being sent through sewage pipes to themunicipal sewage network for centralized treatment and discharge.
Dust generated during the production process is puri?ed using centralized dust removal devices, and the waste gasis discharged into the atmosphere through exhaust pipes with a height not lower than 15 meters.
Company vehicles should use high-quality diesel and unleaded gasoline to reduce exhaust emissions and lowerthe content of harmful pollutants.
Kitchen fumes must be puri?ed by “kitchen fume puri?cation devices” before being discharged.
| 47 | 48 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
The Company has established a solid waste classi?cation center in production workshops, where various types of solid waste are placedin designated locations. Workshop supervisors are responsible for managing waste classi?cation, storage, and transportation to ensurethat solid waste is properly classi?ed, recycled, and treated. The Company regularly o?ers training for employees on the safe handlingof waste to raise their awareness of the importance of solid waste management.
General waste
The Company formulates and implements the Hazardous Waste Management Plan System in light of production and operation realities,and signs the with organizations that have corresponding businesslicenses or quali?cations for treating hazardous solid wastes and entrust such organizations to treat hazardous wastes generated fromthe production process, such as hazardous waste packaging materials, oil ?lter elements and spent activated carbon, and to dispose ofhazardous wastes generated from the industrial production sites in a harmless and reduced manner. Additionally, the Company activelyexplores waste recycling and reuse to achieve the goals of resource conservation and environmental protection.
Hazardous waste
Henglin recognizes the importance of waste management for environmental protection. The Company strictly abides by the Law of the and other relevant laws and regulations. We have formulated the Industrial Solid WasteManagement System of Henglin to strengthen the management of industrial solid wastes and ensure that solid wastes generated in thecourse of production and operation are properly handled to minimize the impact on the ecological environment.
Waste Emission Management
Noise generated during the production process comes from the operation of production equipment. According to regulations from thelocal environmental protection authorities, the Company controls the emission of noise as per the Class III standard for boundary noiseemissions stated in
Noise Control
The main sources of noise in the Company are production equipment. The Manufacturing Department is responsiblefor equipment maintenance, inspection, and addition of lubricating oil, and improves equipment maintenance workto reduce operational noise.
When purchasing equipment, especially those with high noise levels, the Company tries to choose equipment withlower single-machine noise values under similar performance conditions, thereby reducing equipment noise.
When installing machinery and equipment, the Company tries to install the noisy equipment in the soundproof andclosed workshop to reduce the noise leakage, and arranges it in the center of the plant to avoid high noise a?ecting thesurrounding environment.
According to the characteristics of equipment with high noise levels, appropriate mu?ers, shock absorbers and similardevices are installed.
| 49 | 50 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin continuously pursues excellent quality, relentlessly innovates, andexpands the ?eld of comfortable home furnishings. Upholding a servicephilosophy of “professionalism, enthusiasm, thoroughness, andtimeliness”. We continually re?ne our service management systems,comprehensively safeguard the rights and interests of customers andconsistently enhance customer satisfaction.
Commitment to Excellence inQuality: Winning Reputationwith Superior Service
SDGs
Driving Innovative R&DBuilding Chains of ResponsibilityStrengthening Quality ControlO?ering Outstanding Quality and ServiceProperly Protecting Information Security
| 51 | 52 |
Driving Innovative R&D
Henglin is committed to R&D, continuously enhancing its R&D system, exploring unique design styles, and integrating professionalaesthetic design into practical spaces. This innovative aesthetic perspective expands the domain of comfortable home furnishings andpropels the industry forward to a new stage.Development of the R&D System
In 2023, our R&D investment totaled RMB 221.065 million, accounting for 2.70% of our operatingrevenue, up by 12.13% compared to that of 2022.
Guided by forward-thinking strategic thinking, Henglin meticulously orchestrates R&D operational plans to ensure its R&D activities areclosely aligned with overall strategy. Our Research Institute is responsible for new product research, project initiation, design, and trialproduction, coordinating with all departments to support comprehensive development. We have established guidelines such as theThese guidelines de?ne the lifecycle ofnew projects, covering new product research, product design, new product trial production, new product evaluation, and productionlaunch, ensuring R&D operations are rule-based and substantially enhancing our core competitiveness.
R&D System Guidelines
Key Performance
Design and Development Processes of New Products
Research and develop new processes and designs to empower themanufacturing segment to enhance manufacturing e?ciency.
Accelerate the adoption of new materials to create more environmentallyfriendly products.
Conduct market research in domestic markets to research and develop newfunctional products, meeting the demand of the domestic market for newfunctionalities, designs, and products and empowering our new brand strategy.
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Technical Department,Purchasing Department,Price Audit DepartmentPurchasing Department,
Technical Department
Technical Department,Purchasing Department,
Quality Department,
IE Department,Business DepartmentTechnical Department,Purchasing DepartmentPrice Audit Department,
Technical Department
Technical DepartmentTechnical Department,Production Department,
IE Department
DepartmentProcess
Development Review
Sample Prototyping
Testing and Evaluation
Quote Calculation
Sample TestingProduction Handover
Sample Review
NGNG
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| 53 | 54 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Product Technology Innovation
Henglin continues to explore new trajectories in comfortable home furnishings, focusing on original design and developmentsupplemented by deep cooperation with domestic and international design agencies. This approach consistently yields creativefurniture products that meet market demands.During the Reporting Period, Henglin launched a series of new products to meet customer needs.
Product Technology Achievements
Henglin is dedicated to building a professional R&D team and has established the tospecify the targets, channels, and procedures for talent recruitment and build R&D teams around core business and strategicdevelopment directions. As of the end of the Reporting Period, our technical R&D personnel totaled 729, including 2 PhDs and 16Masters.
R&D Technical Team Building
To enhance the construction of its R&D Center and talent development, Henglin has established the to standardize the management of training and professional development for scienti?c andtechnological personnel. This system includes contents such as application processes, training modes, and assessment criteria, aimingto continually improve the overall professional technical level of the R&D Center.
Talent Cultivation
Henglin is a pioneer in China, establishing the ?rst academicianworkstation in the furniture industry and building a scienti?cresearch platform that integrates production, education, andresearch. This platform includes the National Industrial DesignCenter, a provincial-level enterprise research institute forintelligent functional seating, a provincial-level high-techenterprise R&D center for intelligent functional seating, theZhejiang Provincial Enterprise Technology Center, the ZhejiangProvincial Industrial Design Center, the Zhejiang ProvincialPost-Doctoral Workstations and the Huzhou City ArtisanInnovation Studio, among others. This comprehensive setupensures a well-regulated and e?ciently managed R&D system.
R&D Platform Construction
To fully mobilize the enthusiasm of the scienti?c and technological personnel, Henglin has established systems such as the and the Thesesystems allow for monthly, quarterly, and annual performance appraisals of our scienti?c and technological personnel, with results usedas a basis for bonus allocation, promotion, and salary advancements. Additionally, equity incentives are implemented for certainhigh-level scienti?c and technological personnel. Moreover, Henglin rewards employees involved in R&D projects, patent ?lings,scienti?c paper writing, and the transformation of scienti?c and technological achievements.
Talent Incentives
Number of R&D Personnel (byAcademic Quali?cation)（Units：
Persons）
Number of R&D Personnel (by Age)（Units：Persons）
Number of R&D personnel with abachelor’s degree and belowNumber of R&D personnel with amaster's degreeNumber of R&D personnel with adoctor's degree
National Industrial Design Center
Under 30 (exclusive) years old
30 (inclusive) to 40 (exclusive) years old
40 (inclusive) to 50 (exclusive) years old
50 (inclusive) to 60 (exclusive) years old
FemaleMale
NOUHAUSMassage Chair
Abdominal
VibrationMachine
Shared Tea Table
Lumbar Massage
O?ce Chair
Development of Upholstered Furniture
Number of R&D Personnel(by Gender)（Units：Persons）
| 55 | 56 |
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin actively pursues an innovation-driven development strategy, focusing intently on its R&D platforms to e?ciently advance R&Dprojects. With 26 years of continuous research, development, and technological accumulation, Henglin has mastered core technologiesrelated to product design and production processes. This expertise encompasses chassis engineering, ergonomics, polymer materialapplications, and massage mechanisms, among other areas, accumulating extensive experiential data and forming several coretechnologies with completely independent intellectual property rights.As of the end of the Reporting Period, Henglin held a total of 1,445 patents granted, among which there were 1,348 accumulatedauthorized patents in the domestic territory and 97 accumulated authorized patents in the overseas territory.
Participation in Industry Co-Construction
Henglin is committed to enhancing the competitiveness and manufacturing level of the home furnishing industry. We activelyparticipate in the formulation and revision of various standards, collaborating with industry peers to promote the standardization andnormalization of the home furnishing sector. By the end of the Reporting Period, Henglin has participated in the formulation of 1international standard, 24 national standards, 8 industry standards, and 4 group standards, including leading the development of thegroup standards for products made in Zhejiang, such as and the group standard and the industry standard
Industry Standard
Henglin has built a broad cooperation network with domestic and international industry peers. By participating in industry exchangesand product exhibitions, we share technological innovations and research achievements, jointly promoting the healthy development ofthe industry.
Industry Exchanges
Cumulative Number of PatentsGranted (at home)（Units：Items）
1,348
Cumulative Number of Patents Granted (abroad)（Units：Items）
Including: Cumulative number ofgranted invention patents (at home)
Cumulative number of grantedutility model patents (at home)
Cumulative number of granteddesign patents (at home)
Including: Cumulativenumber of granted invention
patents (abroad)
Including:Cumulative number ofgranted design patents (abroad)
Cumulative Number of
Software Copyrights
Cumulative Number of
Published Papers
Cumulative Number of
Trademarks
Utility Model Patent Certi?cate
Invention Patent Certi?cate
Design Patent Certi?cate
Henglin actively deepens the cooperation with universities and research institutes through industry-university-research collaborationmode. We have repeatedly engaged academicians from the Chinese Academy of Engineering, college and university professors, and R&Dexperts for joint R&D projects, and have established in-depth partnerships with prestigious national institutions such as Zhejiang University,Xi’an Jiaotong University, Zhejiang University of Technology, and other renowned international R&D institutions. Our subsidiary, YongyuHome, in conjunction with Nanjing Forestry University and other research schools, has established an industry-university-research allianceto promote innovative technology development, enhance R&D e?ciency, and reduce innovation costs.
Cooperative R&D mechanisms
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Intelligent Manufacturing UpgradesHenglin is among the ?rst to initiate intelligent manufacturing in the home furnishing production sector. Through theapplication of 5G, IoT, and cloud computing, we have established an industry-leading industrial internet platform,enhancing the aggregation and dynamic optimization of resources across the whole supply chain. Moreover, Henglinutilizes big data algorithms, digital twins, arti?cial intelligence, and other technologies to dynamically monitor productionlines to realize the dynamic monitoring of production lines, the deep synergy of the whole business chain, the deepintegration of business data, the intelligent control of production processes, and the construction of an integrated, shared,and collaborative intelligent manufacturing industrial system.
Industry Exchanges
The Second General Meeting of the third Sessionof Zhejiang Chair Industry Association
The 51 China International Furniture Fair (Guangzhou)
National Presidential Work Meeting of ChinaNational Furniture Association
The 52 China International Furniture Fair (Shanghai)
CIFF 2023 First Anji Green Home Expo
Henglin not only commits to green production, but also keeps abreast of intelligent manufacturing and digital-driven trends, activelyintegrating cutting-edge technology and innovative management concepts. We continuously optimize production processes andenhance overall e?ciency, striving to create exceptional value for customers and collectively promote the green and intelligentdevelopment of the industry.
Digital-Driven Design InnovationHenglin’s R&D Team and Design Team utilize CAD,SolidWorks, and other two-dimensional andthree-dimensional design tools to achieveparametric model-driven digital design. With the aidof 3D printing technology, product structures,functionalities, and performances are rapidly andaccurately validated at a 1:1 scale. Building on this,our R&D Team will comprehensively apply digitaltechnologies such as hybrid clouds and digital twins,combined with ergonomics and artistic innovation,to construct an international network designcollaboration platform, achieving cross-regional andcross-departmental collaborative design across theentire supply chain.
Case
Case
The1 Middle East Made-In-Anji Furniture Expo
st
st
nd
59 60
Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Building a Responsible Supply Chain
Henglin deeply understands the importance of intellectual property protection and strictly adheres to the the and other domestic and international intellectual property laws andregulations. We have established theregulatingevery aspect of intellectual property application, maintenance, utilization, and protection to ensure the legal rights and interestsregarding our innovations are fully protected, laying a solid foundation for our continuous innovation and development.Henglin has set up a specialized Intellectual Property Management Group, which is responsible for applying and maintaining patents,deeply integrating into the product R&D process, and supporting the R&D Team in timely patent applications and infringement riskavoidance, thus constructing a comprehensive intellectual property management system. Furthermore, we regularly perform patentsearches and declare invalid or expired patents according to the law when necessary, place high importance on cultivating intellectualproperty awareness, routinely conducting intellectual property protection training sessions, hire professional lawyers as legal advisorsto respond swiftly to infringement actions, thus reducing intellectual property risks and ensuring the maximization of corporateintellectual property interests.
Protection of Intellectual Property Rights
Standardizing Supply Management
Henglin has formulated the to standardize process control for the initial development and subsequentmanagement of suppliers across all divisions/branches and subsidiaries and established a comprehensive supplier managementsystem to clarify supplier development processes and evaluation methods, thus achieving the whole-process management of suppliersand mutual bene?ts.
Supplier Management
For supplier development, admission, evaluation, classi?cation, and maintenance, Henglin has developed a series of managementmeasures and procedures to ensure the whole-lifecycle management of the suppliers.
The requesting department provides material and performancerequirements to the Purchasing Department, which then identi?essuitable suppliers. The Review Team selects suppliers based on cost,production capacity, and cooperation potential and conducts on-siteevaluations to ensure compliance with QCDS principles and legality.
Whole-process Management of Suppliers
The Supplier Review Team screens suppliers based on the supplierinformation survey, performs on-site evaluations, and ?lls outevaluation forms. After samples are con?rmed by the Technical,R&D, and Quality Departments, the initial Purchasing Departmentcompiles the data and submits it for approval. Approved supplierinformation is then entered into the EAS system.
SupplierDevelopment
Admission of
Suppliers
The heads of the Purchasing Department of our divisions/branchesor subsidiaries regularly assess suppliers, including quality, price,delivery, and service, with results communicated in writing tosuppliers by the 10th of the following month.
The Supply Chain Management Center assigns responsible personsto assess, score, and grade suppliers on a monthly/quarterly basisbased on various other aspects. Suppliers are categorized as:
strategic suppliers, excellent suppliers, general suppliers, potentialsuppliers, or eliminated suppliers.
Purchasers maintain close communication with suppliers, and theSupply Chain Management Center dispatches dedicated persons toprovide guidance and supervise improvements. Additionally, theSupply Chain Management Center holds annual supplier conferencesto communicate strategic directions and provide recognition andclari?cation.Supplier Maintenance
Supplier Assessment
Supplier categorization
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
To ensure the standardization and e?ciency of the purchasing and testing of materials, transportation, consulting, and other externalservices, Henglin has established systems such as the and clarifying the management responsibilities, work?ows, and work requirements for material purchasing. This ensures that thePurchasing Department strictly adheres to procedures and standards for legal and compliant material purchasing operations. At thesame time, Henglin is increasing local purchasing to reduce purchasing costs and transportation risks, enhancing the stability andsustainability of the supply chain, and strengthening our competitiveness and market position.
Practicing responsible Purchasing
Henglin continuously enhances the business ethics of suppliers, committed to establishing a clean, honest, fair, and trustworthybusiness relationship with suppliers. We have established the practicing theprinciples of being cordial and clean with partners by adopting a “friendly” attitude and “clean” behavior, maintaining a bottom line ofintegrity, preventing any form of corruption, and creating a fair, reasonable, and transparent supply-demand environment. Togetherwith suppliers, we aim to co-create value, share resources, and achieve win-win outcomes.
Clean purchasing
Henglin strictly controls environmental standards inselecting suppliers, ensuring that partners comply withenvironmental requirements. In the construction of a greensupply chain, we continuously uphold the ideas of greenand environmental protection throughout R&D, production,and logistics and extend these ideas across the entire supplychain. We actively share technologies and experiences ingreen factory construction and exchange knowledge withpartners. Focusing on low-carbon, environmentally friendlyrenewable raw materials, we are committed to developinggreen manufacturing and energy-e?cient production withour partners, continually enhancing our green supply chainsystem, and jointly promoting the sustainable developmentof the industry.During the Reporting Period, Henglin was honored with the National Green Supply Chain Management Enterprise quali?cation andparticipated in drafting national green standards such as the By summarizing experiences and re?ning theories to guide practice, we comprehensively andscienti?cally build a green home furnishing enterprise, dedicated to promoting the green and sustainable development of the industry.
Green Purchasing
We actively promote a smart purchasing mode to enhance the e?ciency and accuracy of the purchasing process, thus continuouslyoptimizing our supply chain management.Smart Purchasing
The proportion of spending on purchasing from local suppliers was:
52.70%.
Key Performance
Percentage of suppliers that have signed the Integrity Agreement: 100%.
Key Performance
It is strictly prohibited to provide gifts, loans,leases, investments, or non-work-related dealingsto employees.It is strictly prohibited to engage in bribery,collusion for pro?t, or under-the-table deals.It is strictly prohibited to engage in contract fraudor passive service.It is strictly prohibited to linger after delivery orleak con?dential information.It is strictly prohibited to maliciously complain orretaliate.
It is strictly prohibited to conduct business withsuppliers in non-work settings.It is strictly prohibited to use o?cial power toaccept bene?ts from suppliers or other partners.It is strictly prohibited to disclose Company tradesecrets.It is strictly prohibited to accept any kind of gifts,monetary gifts, negotiable securities, or otherbene?ts.It is strictly prohibited to independently visitsuppliers’ residences/business premises forinspections.
National Green Supply Chain Management Enterprise
Employee Code of Conduct
Business units issue salesorders under the EASsystem, and the PurchasingDepartment selectsappropriate materialsuppliers in the ERP system,following the principles ofbalancing quality, cost,delivery, and service.
The Supply ChainManagement Centergenerates purchaserequests through MRPcalculations, andpurchasers place orders inthe EAS system based onthese requests.
Upon receiving goods, thewarehouse follows theWarehouse ManagementProcedures, checks theconsistency of physicalgoods with the delivery note,conducts quality spotchecks, and ensureseverything is correct beforescanning items intoinventory.
Supplier Code of Conduct
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Optimizing Quality Control
We continually strengthen control over product quality, integrating quality management throughout the lifecycle from understandingcustomer needs through R&D to production. We implement quality control methods to e?ectively prevent defects, resolve productissues promptly, and ensure shipped products meet customer requirements. We take concrete responsibility for product quality toguarantee it.
Lifecycle Management
We have established the Control Procedures for Nonconforming Outputs, classifying unmarked or suspicious products asnonconforming products. Through closed-loop operations, nonconforming products are identi?ed, marked/isolated, handled, andimproved, with a clear responsible department de?ned for each process to ensure rigorous quality control.Control of nonconforming products
Principles for Handling Nonconforming Products
Raw MaterialManagement
ProductionManagement
FactoryManagement
Quality ManagementSystem Certi?cate
Strengthening Quality Control
Henglin insists on winning customers with integrity and capturing the market with quality. We have established a comprehensive qualitymanagement organization, de?ned management responsibilities and work procedures, and promoted the institutionalization of qualitymanagement. By implementing systems like the and we e?ectively control the production and service provision processes to ensureproduct quality meets standards.Quality management is the cornerstone of stable development. Henglin focuses on quality management and has built a comprehensivequality management system. During the Reporting Period, Henglin obtained the ISO 9001 Quality Management System certi?cation, andthe massage chair products obtained ISO 13485:2016 certi?cation, continuously maintaining the e?ective operation of the qualitysystem.Each division upholds high-quality development goals, establishes quality strategic development plans for 2024-2026, ?rmlyimplements a zero-defect quality strategy, and continually improves the quality management system, cultivates a quality culture, andbuilds an excellent brand. We comprehensively advance quality cost management, information-based management, andcomprehensive quality management. Simultaneously, each division is committed to pursuing a zero-defect management philosophyand Six Sigma management philosophy, striving to enhance product quality, service levels, and operational e?ciency to achievemodern and e?cient operations. By continuously optimizing processes and reducing errors and defects, we ensure the robustdevelopment and safe operation of each division, contributing to the high-quality development of the Company.
Upon the arrival of raw materials,they are veri?ed against thedelivery note, subjected torandom sampling inspections,and then categorized asconforming products ornonconforming products basedon test results.
After raw materials are stored,pilot production is conducted forproduct review. Conformingproducts proceed to specializedworkshops like carpentry andcutting for segmented productionprocesses, where in-processinspections are carried out basedon inspection standards todi?erentiate between conformingand nonconforming products.
Factory inspectors examineproducts before they leave thefactory, complete the and signo? on it. At the end of eachmonth, these records arecompiled and submitted to theQuality Control Department forarchiving, retaining the evidenceof quali?ed inspection andtraceable information ofinspectors to ensure productsmeet quality standards beforerelease.
Product Quality Management
Product Certi?cationLO Product Quality
Certi?cation
The “Three Nos” Principle
The “Three Do Not Let Go” principle
No accepting, producing, or releasing thedefective products.
Not let go until the reasons for unquali?ed itemsare found out, not let go until the personresponsible is found out, and not let go until theimprovement measures are implemented.
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin places high importance on customer feedback regarding product defects. Upon receiving such information, we will immediatelyinitiate a stringent review process and establish the to ensure accurate issue identi?cation. After preliminaryreview, the issue will be submitted to the General Manager for approval, ensuring e?cient and authoritative decision-making.Subsequently, we will organize a professional team to discuss the recall plan. Once the plan is approved by the General Manager, theBusiness Department will promptly notify customers to initiate the recall process. Henglin consistently addresses product issues withe?ciency and professionalism, fully safeguarding consumer rights and interests.
Product Recall Management
During the Reporting Period, the number of products withdrawn or recalled by Henglin for health andsafety reasons was zero.
Key Performance
Key Performance
Demonstration Training on the Full Inspection Process of Base Glue ShellsIn the production workshop, Henglinconducts demonstration training centered onthe full inspection process of quality glueshells. The training focuses on how to use a
1.5mm thickness gauge to inspect the ?atness
of the glue shells at the base. Participantsmeticulously inspect the perimeter of the glueshells; if the gauge easily ?ts into the gapbetween the glued shell and the glassplatform, the glue shell is deemed non-?at.Conversely, if the gauge cannot ?t, the glueshell is considered conforming. The trainingensures that our employees master thisinspection technique precisely.
Detect nonconforming products.
Mark or isolate identi?ed nonconforming products indesignated areas.
Rework nonconforming products based on dispositionsuggestions; return nonconforming raw materials tosuppliers or our factory.Only after passing the re-inspection can the rawmaterials proceed to the next process or be stored.
The Quality Department processes incoming materials,semi-?nished products, ?nished products, and customerreturns through rework, scrapping, or acceptance ofdeviation.
Product Recall Procedures
To enhance all employees’ awareness of quality risks and their capability in quality management, Henglin continuously strengthens theconstruction of an advanced quality culture. Adhering to our quality management standards, we have formulate the aligned with our annual quality management goals, business development needs, and job competency requirements.Through high-quality training courses, we elevate the quality management awareness of all employees.
Quality Culture Development
Number of times of annualquality internal audits
28times
Number of times third-party agencieswere engaged for sampling
10times
Disposition
Improvement
Marking and
isolation
Completion
Identi?cationReception of information by
the Business Department
Approval by theGeneral Manager
Discussion of protocalApproval by theGeneral ManagerNoti?cation to customers
by the Business
DepartmentRecall
ReviewFeedback on product defects
from customers
The Closed-loop Management of Nonconforming Products
Note: Data compilation encompasses Henglin headquarters, excluding subsidiaries.
Case
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key Performance
O?ering Outstanding Quality and Service
Protecting the Rights And Interests of Customers
Henglin strictly adheres to the requirements of the ???¤ and hasdeveloped systems such as the¤¤ and We continuously improve the after-sales servicework?ow, always adhering to the service principles of “customer?rst, service priority, quality service, and timely response”,constantly enhancing service quality and e?ciency. We establish acomprehensive pre-sale, in-sale, and after-sale service system,enhancing customer recognition and improving satisfaction,reputation, and visibility among customers.During the Reporting Period, our after-sales service system passedthe national standard GB/T27922-2011 certi?cation obtained aFive-Star After-sales Service rating. We have equipped withprofessional after-sales service managers, with our after-salesservice level being recognized as ?rst-class nationally and ourafter-sales service capability being recognized.
Customer Service Management System
Every December, Henglin sets the service goals for the following year, which, once approved by the General Manager, are disseminatedto all departments. To ensure the implementation and operation of the after-sales service system and its annual passage of third-partyaudits, we standardize the assessment details of related service goals. The Customer Service Department is responsible for revisiting,supervising, and statistically tracking these detailed service goals, incorporating the results into employee performance appraisals. Fornonconforming items identi?ed during audits, corrective actions will be taken to completely resolve the issues and prevent therecurrence of similar issues.
Goals in After-sales Service
Henglin strictly adheres to the and the among other laws and regulations, and always upholds responsible sales and marketing practices. Wecontinuously re?ne our marketing systems, regulate product releases, and sales activities, and rigorously review promotional andexternal communication materials to ensure accurate descriptions. We prevent the dissemination of misleading or ambiguous productinformation, eliminate false and excessive advertising, and ensure marketing activities are legal and compliant.
Responsible marketing
Henglin conducts customer satisfaction surveys to systematically gather and document customer feedback on product quality and service.Detailed records, organization, and comprehensive analysis of the feedback help us fully understand customer needs and expectations,continually improving our management systems, product quality, and service levels. Furthermore, to enhance customer satisfaction,Henglin incorporates customer service satisfaction results into employee performance appraisals, fostering a strong brand image.
Customer Satisfaction Management
Note: Data compilation encompasses Henglin headquarters, excluding subsidiaries.
Note: Data compilation encompasses Henglin headquarters, excluding subsidiaries.
After-sales Service System Certi?cation
Number of participants inresponsible marketing training
Total hours of responsiblemarketing training118 hours
Sessions of responsiblemarketing training38 times
Key Performance
Number of participants inquality culture training
Total hours of qualityculture training253hours
Sessions of qualityculture training
77times
Company service goals
Customer satisfaction ≥ 95%100% timely handling rate for customer complaints and grievances
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
During the Reporting Period, our customer complaint resolution rate was 100% and ourcustomer satisfaction score was 99.
Handling of Customer Complaints
Henglin upholds a service philosophy of “Professionalism, Enthusiasm, Thoroughness, Timeliness”. We maintain active communicationwith customers through diverse channels such as face-to-face interactions, phone calls, QQ, Real Time exchange, and various internetplatforms, receiving various suggestions from customers and striving to understand customer needs realistically, objectively, andcomprehensively. Customers can also provide feedback and complaints through our 400 hotline, after-sales service phone, and onlinewebsite services.
Customer Communication and Feedback
To properly handle customer complaints, better protect the legal rights and interests of consumers, and ensure the timely resolution ofcustomer complaints, Henglin has established the and Upon receiving a complaint call, the Sales Department ?rst contacts the customer to understand the speci?c after-sale issue. Based onthe speci?cs of the complaint, the corresponding Production Department is contacted to undertake repairs, factory returns, orcompensation, providing a rapid response and resolution to customer feedback.
Customer Complaint Response
Henglin primarily employs methods such as telephone follow-ups, on-site visits, and letter follow-ups to engage with customers. Wegather feedback on product usage, address any issues users may face, and meticulously document each follow-up interaction. We arecommitted to responding to every concern raised by our customers, thereby swiftly capturing and understanding their feedback.Customer Follow-up
Surveyobjectives
Surveyfrequency
Survey
content
To obtain customer evaluations on product quality and servicein order to continuously optimize the customer serviceexperience and enhance product competitiveness.
The Sales Company sends out a Customer Satisfaction Surveyevery six months (January-June, July-December); the CustomerService Department compiles the results quarterly and preparesa ?
Inquiries about product defects, usage issues, technicalchallenges, and satisfaction with services provided.
Complaint Handling Flowchart
Key Performance
Customer complaint
Simple issueCrisisComplex issue
Notify technicians at the
service station
Report to managementrepresentative within 2
hours
Report to the After-salesService Department for
resolution proposal
Respond to customers
Implement crisismanagement procedures
Determine the nature ofthe complaint
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Information SecurityManagement Committee
Information SecurityManagement Group
Various DepartmentsInformation Security O?cers
ManagementDecision-making
Management
Supervision
Implementation
Organizational Structure of Information Security Management
Key Performance
Telephonefollow-ups
Professional personnel use dedicated phones for follow-ups.
Major clients receive quarterly on-site visits. If an issue can not beresolved over the phone, after-sales service personnel will bedispatched to handle and resolve the issue on-site.
For customers who can not be reached by phone and can not bevisited on-site, we will reach out through letters.
Properly Protecting Information Security
Henglin strictly adheres to the Cybersecurity the and theamong other relevant laws andregulations. We have formulated and other speci?cations. We have established an IT Department and a security management organizational framework,which is structured into three levels: management decision-making, management supervision, and implementation. This frameworkprovides organizational support for our information security management system, ensuring the implementation and supervision ofinformation security management tasks, and enhancing our security management capabilities.
Information Security Management
Henglin has always prioritized a customer-centric philosophy, dedicated to enhancing customer satisfaction and consistently providingsuperior services. In 2007, we developed our own Enterprise Resource Planning (ERP) system, allowing branches or customers toprovide direct feedback on quality issues. By logging into the ERP system daily, departments can instantly access, rapidly transmit, ande?ciently utilize detailed feedback and process and respond to the feedback.To systematize customer resources, standardize customer management, integrate marketing, re?ne service management, andintelligentize business decision-making, Henglin introduced a CRM management system in 2008. We have established the and ? to e?ectively track customer usage andprovide products and services tailored to individual needs.
Digital Management
Over the past three years, Henglin has not experienced any incidents of informationsecurity or privacy protection violations.
Regular Security Governance
Henglin values data security risk management, with the Information Security Management Group organizing departments to conduct atleast one data security risk assessment annually. This assessment includes the phases of initiation, asset classi?cation and grading, riskidenti?cation and evaluation, disposal planning and implementation, and continual improvement. For e?ciency, data risk assessmentsmay be combined with annual internal or external (group corporate level) security inspections, supervision, and audits to completecorresponding risk assessments and risk disposal activities and comprehensively enhance our data security.
Data Security Risk Management
On-sitevisits
Letterfollow-ups
All Employees of the Company
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Business Continuity Management
To standardize our business continuity management, we have established a business continuity management plan that integratesprevention and recovery controls. This proactive approach addresses emergent information security incidents, preventing businessdisruptions and minimizing impacts on our Company within manageable limits. We ensure the continuity of critical business processes,forming a robust business continuity management system characterized by well-established mechanisms, centralized leadership, clearresponsibilities, prevention focus, responsive action, and e?cient handling, thereby guaranteeing the ongoing operation of keybusiness ?ows.
Business Continuity Plan
We regularly conduct business continuity management awareness training to enhance employees’ awareness of business continuitymanagement, ensuring they possess the necessary management and technical skills for business continuity management. To ensurethe e?ectiveness of the plan, we employ various drill methods including tabletop, interactive, simulation, parallel, and full-scaleexercises. After each exercise, departments are required to submit reports for prompt improvement based on the issues identi?ed. TheInformation Security Management Group organizes at least one drill annually, ensuring our Company can respond swiftly and orderly tovarious contingencies, thus maintaining the continuous and e?ective implementation of business continuity management.
Training and Drills
The Information Security Management Group reviews the business continuity plan at least annually and conducts comprehensiveevaluations and audits during signi?cant changes, ensuring sustained e?ectiveness. Following drills or actual activations of the businesscontinuity plans, we assess, summarize, and learn from these drills, making necessary revisions and updates to keep the plans relevantand e?ective.
Continual Improvement
Henglin adopts a classi?cation and grading management approach for data assets, categorizing the CIA (con?dentiality, integrity, andavailability) attributes of information assets into ?ve levels based on their importance. Additionally, according to the form of informationassets, they are divided into ?ve categories: data assets, physical assets, software assets, personnel-related assets, and service assets.Clear de?nitions of data ownership, usage rights, and management rights are established to ensure that di?erent levels of data receiveappropriate security controls, e?ectively reducing the risks of data leakage, damage, or loss, and safeguarding the information securityand business interests of our Company.
Data Grading and Classi?cation Management
Our Process IT Management Department regularly conducts information security training for internal employees to enhance theirbusiness capabilities and awareness of information security. Furthermore, before launching new business systems, we will provideusers with relevant operational training, followed by practices and assessment veri?cations. Users are only granted access to operate inthe o?cial environment once they have successfully passed the assessments. This approach improves their professional skills andstandardization of operations and minimizes risks due to misoperation.
Information Security Training
Number of informationsecurity training sessions15 times
Number of participants ininformation security training
3,615
Key Performance
Note: The statistical data scope covers Henglin and its subsidiaries.
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin is committed to equality and compliance as the foundation, talentdevelopment as the drive, democratic communication as the bridge, and safeproduction as the safeguard. Upholding the spirit of public welfare, we activelygive back to society through concrete actions, contributing to the prosperity ofindividuals, teams, businesses, and society.
Creation of a Better Future for theHome Furnishing Industry: SharingTrust to Build the Cornerstone forLong-Term Prosperity
SDGs
Upholding the Rights and Interests of EmployeesEnsuring the Democratic Life of EmployeesFostering Employee GrowthParallelling Safety and HealthContributing to Social Welfare
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Key Performance
Upholding the Rights and Interests of EmployeesTalent Team Building
Henglin strictly adheres to the the and otherapplicable national and international laws and regulations. By establishing and relevantsystems, we standardize recruitment and internal hiring processes, ensuring orderly, equitable, and transparent human resourcemanagement. Depending on our development needs, we conduct both internal and external recruitment to continuously expand ourtalent pool. Additionally, we have established an employment training base for veterans in Anji County, having placed 64 veterans inemployment by the end of the Reporting Period.
Online recruitment, campusrecruitment, headhunting ?rms, and
labor dispatch.
Analyze human resourcesrequirements
Conduct internalrecruitment
Conduct external publicrecruitment
Conduct formalemployment
Talent Recruitment
External recruitmentInternal recruitment
Internal recommendations, opencompetitions, internal promotions,
and employee rotations.Recruitment
channels
Number of recruits (by recruitment channel)
Recruitment process
Submit recruitment applicationvia the relevant department
Develop a recruitment plan
Number of recruits frompublic recruitment3,763
Number of recruits fromcampus recruitment
In 2023, our total employee count was 10,251, with a 100% labor contract signing rate, and
60.6% of employees were locally hired.
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Protection of Employees’ Rights and Interests
Henglin is committed to fostering a diverse, inclusive, and harmonious work environment, resolutely safeguarding each employee’slegal rights and interests. We enforce equal pay for equal work and have established procedures such astheand the to ensure decisions in hiring, wages, bene?ts, promotions, dismissals, or retirements are strictlybased on the employees’ ability to perform their job duties. We treat all employees equally, without bias towards their race, skin color,gender, nationality, age, religious beliefs, marital status, sexual orientation, disability, or any other factors unrelated to their job.Additionally, we value the diversity among employees, advocate for e?cient and collaborative teamwork, and support the jointprosperity and development of individuals and the organization.
Anti-discrimination and Diversity
Henglin strongly opposes any form of forced labor and has established the Procedures for the clearlyrequiring training on relevant policies for new employees to ensure the protection of our employees’ human rights. Moreover, the use of childlabor is strictly prohibited. Our mandates a prior ID check to verify the identity and age of all newhires. If child labor is detected, the HR Department is noti?ed immediately to take necessary remedial actions, including immediatelyterminating employment, arranging a medical checkup, escorting the child home, and covering related expenses. As of the end of theReporting Period, there have been no incidents of child labor misuse, forced labor, or harassment.
Prohibition of Forced Labor and Child Labor
Henglin has assembled a diverse team of talents with various characteristics, including di?erent genders, nationalities, ages,educational backgrounds, and skill sets. This diversity fosters cross-cultural exchanges and integration, further invigorating our teammembers’ passion and drive for excellence.
Diverse Structure
Number of labordiscrimination incidents
Total hours of employee diversity
policy training
Number of employees with
disabilities
Number of employees of
minority nationalities
Number of employees of minoritynationalities in the management
Male
4,084
39.84%
6,167
60.16%
Female
EmployeeGenderStructure
Chinese Mainland(including Hong Kong,Macau, and Taiwan)
6,448
62.90%
3,803
37.10%
Overseas regions
Master's degree or aboveCollege degree or belowBachelor’s degree
6.62%
0.42%
9,529
92.96%
ProductionFinance
AdministrationTechnical (including R&D)Sales
2,016
19.67%
1.02%
7.11%
5.26%
6,862
66.94%
Under 30 (exclusive) years old30 (inclusive) to 40 (exclusive) years old40 (inclusive) to 50 (exclusive) years old50 (inclusive) to 60 (exclusive) years old60 years old or above
2,693
26.27%
1,341
13.08%
1.04%
2,504
24.43%
3,606
35.18%
Note: Indicator compilation encompasses Henglin and our subsidiaries.
Employee Distribution Structure of Henglin in 2023
EmployeeRegionalDistribution
EmployeeProfessionalStructure
EmployeeEducational
Structure
Employee Age
Structure
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Employee Compensation and Bene?ts
Henglin has established a compensation management system based on job value, performance, and employee capabilities. We havedeveloped a to regulate our compensation management practices. Regular salary surveys, jobevaluations, and labor cost analyses are conducted. Compensation levels are determined based on a ranking system, incorporatingvarious combinations of compensation, such as basic wages, positional salaries, welfare allowances, year-end performance bonuses,and other incentives, according to the nature of the positions. Annually, we consider market salary trends and corporate performance todevise and implement a comprehensive annual salary adjustment plan across the group, maximizing the motivational e?ect of ourcompensation system to attract and retain outstanding talents.
Compensation Management
To enhance employee cohesion and corporate competitiveness, Henglin has implemented the covering directors, supervisors, senior management, and key business personnel. Initially, the plan involved no more than 208employees, building and perfecting a shared interest mechanism between employees and shareholders, and driving our Companytoward long-term, sustained, and healthy development.
Equity Incentive
Henglin ensures full and timely payment of social insurance for employees, including pension insurance, medical insurance,work-related injury insurance, unemployment insurance, and housing provident fund. According to employees’ tenure, we provide 5-15days of paid annual leave, strictly implement maternity and nursing leave regulations for female sta?, provide maternity bene?ts andsupport according to the law, o?er annual health checkups, festival bene?ts, mutual aid insurance for employees, and housingsubsidies.
Employee Bene?ts
100%7
99190
RMB 4,082.2
RMB 3,739.4
Social insurance
coverage rate
Per capita paid annual
vacation days
Welfare expenditure
Statutory welfare expenditureNumber of retired employees for
whom the parent Company
bears costs
Number of retired employeesfor whom major subsidiaries
bear costs
Warm Homecoming Road | Henglin’s 17th Year of Facilitating Employee Homecoming
The warmest road in the world is the road home. To ensure that employees from other regions can safely and smoothlytravel home for the Spring Festival, Henglin has been organizing chartered buses for employees to return home for 17consecutive years, becoming a warmly recognized feature of the annual Spring Festival travel season.
Including：
Family Trips for Vietnamese EmployeesFun Tour in Thailand
Mid-Autumn Festival Bene?tsDragon Boat Festival Bene?ts
Case
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Proportion of female managers
30.5%
Proportion of female employees in
STEM-related positions
21.6%
Proportion of female managers inrevenue-generating departments
57.2%
Proportion of female employees
in the Company
39.84%
Protecting Health and Radiating Beauty- Henglin’s Female Employee Committee jointly withAnji Maternity & Child Healthcare Hospital conducts Health Checkup Activities on March 8!On the 113th International Women's Day, Henglin organized an event themed “The Secret of the Body” and a HealthCheckup for Female Employees on March 8. We also delivered a warm and considerate festival gift to our diligent andbeautiful female colleagues.
Care for Employee LifeHenglin focuses on the physical and mental health of employees by o?ering comprehensive services: Organizing a variety of sports andcultural activities to enrich employees’ lives; focusing on the welfare of female employees and steadfastly safeguarding their rights; andestablishing a comprehensive assistance mechanism to help employees resolve di?culties and foster their development.
Henglin actively forms diverse youth clubs such as basketball teams, air volleyball teams, and dance teams, and hosts more than tenfriendly matches; establishes a sta? choir that has performed at the city and county May Day model worker award ceremony for threeconsecutive years; and organizes an annual corporate event to provide a platform for employees to showcase their talents.Employee activities
Henglin cares for female employees, earnestly safeguarding their fundamental rights. Henglin provides maternity check leave, maternityleave, and nursing leave, and holds special events on International Women’s Day to express care and respect for female employees. Inaddition, Henglin emphasizes female health training and provides free medical checkup services to ensure the physical health of femaleemployees.
Care for Female Employees
The Second Sta? Basketball Match of Henglin
Tug-of-war Competition
Sta? Choir
Large Annual Corporate Event
Case
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Henglin Charity Fund
Democratic GovernanceHenglin is committed to promoting grassroots democraticmanagement, continually enhancing the grassroots democraticmanagement system based on the Employee Congress andLabor Union. Through the Employee Congress, Henglin signscollective wage agreements, utilizing the Employee Congressand Labor Union as a bridge and link, consulting employees onmatters that a?ect their immediate interests in advance andaccepting their supervision afterward to ensure their rights toknow and participate are fully protected to the extent possible.
Democratic communicationHenglin places great importance on communication with employees, and actively advocates employees to contribute wisdom and strength to oursustainable development through both online and o?ine channels.
Henglin actively fosters a corporate culture of caring for employees, continually perfecting a normalized and long-term supportmechanism. As of 2023, Henglin has contributed RMB 5,500,000 to the Henglin Charity Fund and RMB 3,500,000 to the CommonProsperity Fund to assist employees in distress and sponsor their children’s university education; proactively coordinated with schoolsto solve admission di?culties for over 400 children of employees from other regions; advocated for employee participation in medicalmutual aid, increasing participation to 3,600 people; and constructed Henglin Apartments, solving the accommodation issues for over athousand employees.
Employee Support
Henglin Apartments
Ensuring the Democratic Life of Employees
OA, Enterprise WeChat, and ourO?cial WeChat Account
1.Additional employee reception rooms and
suggestion boxes;
2.Working mechanisms such as con?ict resolution
rooms and employee reception days;
3.Symposium for foreign employees
Online channelsO?ine channels
The 1st Session of the 3rd Employee (Member) Congress ofHenglin
Note: Data compilation encompasses Henglin headquarters, excluding subsidiaries.
Number of projects approved by the
Employee Congress/Labor Union
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key Performance
Henglin conducts tiered training based on the di?erent levels or positions of employees within the organization, ensuring thatemployees acquire skills and capabilities that match their job demands, enabling them to better face work challenges andopportunities.
Employee SatisfactionHenglin regards our employees as the most valuable asset. We attentively listen to their voices, understand their expectations anddemands, optimize the working environment, and enhance welfare and bene?ts to ignite their passion and creativity, therebycollectively propelling our sustainable development and innovation.
Mediation room
Henglin Labor Dispute MediationHenglin has set up a Labor Dispute Mediation Committee and establishedworking mechanisms like mediation rooms and employee reception days,successfully mediating multiple frontline disputes and achieving a target ofzero complaints in labor disputes.
During the Reporting Period, Henglin conducted an internal employee satisfaction survey, achievinga satisfaction rate of 95.85%.
Improving Training System
Henglin ?rmly holds to the core belief that talent is the foremost resource for the enterprise, regarding employee development andtraining as the foundation for corporate growth. Henglin has established an that comprehensively coversthe organizational structure, key content, and management processes of corporate training, forming a systematic and scienti?c trainingmechanism. Based on this training system, our Human Resources Department prepares a detailed annual training plan at the end ofeach year, aligning it with our development plans and the actual conditions as well as the training needs of various departments. Ourtraining is managed at two levels: the Human Resources Department formulates plans, while branches and functional departments areresponsible for conducting multi-level, diverse, and multi-method training activities. This ensures comprehensive coverage andenhances the relevance and practicality of training content.During the implementation of training, Henglin conducts comprehensive assessments and evaluations of training programs, coveringcourse completion, trainee performance, teaching quality, and training organization work. Based on the performance in trainingassessments, appropriate rewards are given, and these are linked to salary increases to ensure the comprehensiveness and objectivityof training outcomes.
Fostering Employee Growth
Business Training Organized by Henglin Business SchoolTraining Sessions for Reserve Cadres
By nurturing grassroots managers and bringing in expert scholars and skilled masters, Henglin has built a high-quality training teamprimarily consisting of our employees, with external experts as supplementary resources. Additionally, we have established HenglinAcademy, which includes the Red Collar Academy, Henglin Business School, and the Healthy Seating Product Research Institute,providing targeted education for employees at di?erent levels, specialties, and categories, paving a new way for our Company toindependently cultivate professional talents.
Trainers and Platforms
Tiered Training
Strengthening Talent Development
Henglin continues to focus on strengthening our talent pool and places a high priority on employee training.
Comprehensive management decision-making capabilities;The latest dynamics and trends in the management of highervocational and technical education at home and abroad;The latest dynamics and developments in science and technology;Domestic political and economic situations, industry, and ?nancialpolicies.
Company management knowledgeand techniques;Job expertise;Business skills;Experience and learning fromadvanced modes;Interpersonal relations,organization, planning, andcoordination.
Professional skills;Basic and intermediate teaching andadministrative management knowledge;Scienti?c and technical knowledge relatedto the industry;Comprehensive ability enhancement, suchas culture, foreign language, and computeroperation.
Basic company education (company pro?le, employeenorms, salary system, etc.);Job skill training (job instruction, job training, inductioncerti?cate examination, etc.).
Senior managementMiddle-level management
Primary-level managementNew employees
Case
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Training Hours in 2023 (By Training Types)
16 hours/person12 hours/person8 hours/personAverage per capita training
hours (management
training)
Average per capita traininghours (professional capability
training)
Average per capita traininghours (leadership training)
First Session of New Employee Induction Training in 2023 at HenglinOn February 18, Henglin conducted our ?rst session of new employee training for 2023, which included modules oncorporate culture orientation, company policy interpretation, and safety production education. Through this training,new employees gained a comprehensive understanding of our policies and culture, signi?cantly boosting their sense ofcollective honor, responsibility, sense of belonging, and sense of mission.
Henglin encourages employees to participate in various forms of training relevant to their positions - such as knowledge, skills,quali?cations, and academic education - without a?ecting their primary job responsibilities, and o?ers reimbursements or subsidies forregistration fees, tuition (training fees), travel expenses, and accommodations.
Training Development
In 2023, Henglin headquarters proactively launched a variety of employee training sessions that included three-tiered educationprograms for new hires, orientation training, labor relations and work-related injury management, as well as training on Level 3Vocational Skill (Sewing Workers) Certi?cation, among others. A total of 20 training sessions were held throughout the year, attracting
participation from 861 person-times, with an average training duration of 22 hours per capita. Additionally, the headquarters o?ered varioustypes of training, including management training, professional capability training, and leadership training.
Training Practices
Note: Data compilation encompasses Henglin headquarters, excluding subsidiaries.
Case
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key PerformanceOur internal talent selection by jobposition represents 11.60% of total,with 320 employees participating ininternal applications.
Henglin fully implements relevant laws and regulations, such as the theand § and has formulatedwhich arecompiled into the? A system for the control ofsafety hazard inspection and safety prevention has been established. We adhere to treating both symptoms and root causes, implementingcorporate primary responsibility for safety production, strengthening government supervision, improving the safety production managementsystem, establishing a long-term safety production mechanism, and achieving sustained safety production.
The EHS Department is responsible for our policies on safety production, health, and environmental protection, fully implementing thesafety, health, and environmental protection responsibility system; and providing guidance and supervision management for Henglinand our subsidiaries in safety, health, and environmental protection.
Safety Production System
Expanding Development Pathways
Henglin places high importance on each employee’s career growth and has thoroughly built and enhanced the training anddevelopment system for all levels of sta? to ensure open career development pathways. By optimizing the job structure, Henglinexpands development opportunities for employees and enhances the growth potential of professional talents. Henglin sets clearpromotion pathways for employees to stimulate their intrinsic motivation and help them achieve self-worth while enhancing corporatecompetitiveness and providing solid support for the sustainable development of Henglin.
Henglin prioritizes internal recruitment over external recruitment, ?rstconsidering internal employees, complemented by external hiring. Inselecting suitable talent, Henglin considers factors such as employees’training participation and past work performance. Additionally, we haveimplemented a competitive selection system for middle and seniormanagement positions to ensure fair and just promotion opportunities.Furthermore, to meet the needs of employee career development andstrategic adjustments, Henglin establishes a job transfer process andprovides training for new job skills, ensuring that employees’capabilities match their job responsibilities. This facilitates mutualbene?ts for the organization and the individual, promoting ourlong-term stable development.
Environmentalprotection
Occupational
health
Safetyproduction
Systemmanagement
Factory inspection
department
Deputy General Manager
Manager (DepartmentManager)Director (Supervisor)
Technical Engineer
Technical Manager
Technical Supervisor
Technical Backbone
Business Director
Business Manager
Salesman
Merchandiser
Technician
Clerk (Team Leader)
Management Sta?Technical Sta?Business Sta?
Employee Induction
Henglin Safety Management Organization
E.H.SEmployee Promotion Pathway of Henglin
Safety Production Management
Henglin ?rmly adheres to the scienti?c concept of “Safety development”, diligently implementing the principle of “giving ?rst place tosafety, laying stress on prevention, taking comprehensive measures”. We fully assume our primary responsibility, actively improve safetyproduction conditions, enhance the safety and technical quality of employees, further raise the management level of safety production,continuously reduce the number of various safety production incidents, and ensure safety in production.
Parallelling Safety and Health
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key Performance
HenglinHengyou Technology
Henglin establishes and maintains an ISO 45001 Occupational Health and Safety Management System, continuously improving safetyproduction management capabilities through standardized management systems. During the Reporting Period, Henglin and oursubsidiaries have obtained certi?cation for the aforementioned system.
System Certi?cation
To ensure safe production, Henglin has established detailed goals and plans aimed at enhancing safety awareness, strengtheningmanagement, and reducing accident rates. These goals are also our external commitment, re?ecting our focus and determination towardsafety production.
Goals and Planning
Prevent major incidents involving personnelinjuries, ?res, tra?c, equipment, and othersafety production accidents;Control the frequency of seriouswork-related injuries and occupationaldiseases to below 0.2‰;Control the frequency of minor injuries tobelow 2‰;Ensure that direct economic losses from?res, tra?c, equipment, and others do notexceed RMB 10,000 (inclusive);Ensure that the recti?cation rate of hiddendangers of accidents is above 95% and theadoption rate of alternative measures toprevent accidents is 100%.
Establish a safety production responsibilitysystem to ensure management has goalsand responsibilities are ful?lled;Improve the standardized managementsystem for safety production and strictlyenforce the ¨Focus on safety education with apeople-oriented approach, eliminatecomplacency, and enhance safetyawareness.Strengthen safety inspections, focusing oncritical parts and management blind spots;Strengthen assessments: Educate andstrictly assess personnel who violate therules of operation, command and labordiscipline according to regulations.
Targets for Safety Production
in 2023 (partial)
Investment in safetyproduction (RMB 10,000)
587.66
Number of safety productionaccidents (cases)
Number of work-relateddeaths (persons)
Safety Production Implementation Plan
for 2023 (partial)
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key Performance
Key Performance
Safety Knowledge Explanation
Fire Evacuation Drill in June 2023
To further enhance the safety and ?re awareness of all employees in the factory and safeguard the security of the factoryproperty, Henglin conducted this large-scale ?re?ghting drill. This ?re?ghting drill further strengthened everyone’sawareness of prevention and self-rescue capabilities, enabling them to understand and master basic operations such asidentifying dangers and taking necessary emergency measures to respond quickly, orderly, timely, and e?ectively in theevent of an accident.
During the Reporting Period, our Chairman signed the our department heads signed the and all of our frontline productionemployees signed the
During the Reporting Period, Henglin conducted 52safety inspections and thoroughly investigated andidenti?ed several potential risk points. Comprehensiverecti?cations have been carried out on these risk points,achieving a recti?cation rate of 100%.Henglin has established a Safety Production Leading Group, headed by the Chairman, which serves as the highest decision-makingand responsibility body for safety production. It includes 13 departments such as Human Resources Department, ProductionDepartment, Energy Department, and Business Department, overseeing and managing our safety production work comprehensivelyand implementing a safety production responsibility system for all employees.
Safety ProductionResponsible Person
Safety and EnvironmentalProtection Department
Energy Management DepartmentChina Marketing DivisionAdministration DepartmentHuman Resources CenterR&D CenterTechnical DepartmentProduction DepartmentQuality Control DepartmentFinancial Management CenterLogistics Management DepartmentO?ce of the Board of DirectorsAudit DepartmentProcess IT Management Center
Henglin’s Safety Production Network Map
Unit Heads:
Chairman
Safety Production
Leading Group
Safety Risk Management
To enhance the sense of responsibility for production safety among responsible person at all levels of production and business units,functional departments and their sta?, and production personnel, clarify their duties and responsibilities in production safety, and fullymobilize the enthusiasm and subjective initiative in production of personnel at all levels, Henglin has established theThis system speci?es the responsibilities of our main responsible persons, functional departments, and leaders atall levels. It strengthens our comprehensive safety management, e?ectively controls various types of casualty accidents and other majorincidents, and prevents or reduces general safety accidents.
Implementation of Production Responsibility
Henglin attaches great importance to safety production management. To establish and improve a long-term mechanism for safetyproduction management with safety as the top priority and prevention as the main focus, we adhere to the principle of “whoever is incharge should be responsible”. We have formulated the and the and established an assessment mechanism linked tocompensation. Based on the assessment results, individuals and departments that have excellently ful?lled safety responsibilityobjectives are commended and rewarded, while those who have not met the objectives are criticized and required to take correctiveactions to ensure safety production.
Safety Assessment Mechanism
To further standardize safety production management, focus oneliminating hidden dangers at an early stage, and in line with ouractual situation, Henglin has implemented grid management ofsafety production. We have divided safety management areas intounit grids according to certain standards and clari?ed theresponsible persons for safety management for each unit grid.Through the enhanced inspection and handling of hidden dangersin safety within unit grid areas by responsible persons, we haveestablished daily supervision and implementation mechanisms forsafety management.
Identi?cation of Hidden Hazards
To implement the requirements of the applicable laws and regulation, such as the thetheandprotect the personal safety of our employees and reduce property losses, ensuring the rapid, e?ective, and orderly implementation ofemergency rescue work after accidents, Henglin has specially formulated the and our majorsubsidiaries have respectively formulated their own covering any possible emergency major incidents.Our accident contingency plans are in line with the principles of “putting people ?rst, giving ?rst place to safety, unifying command,assuming responsibilities by grades, responding rapidly, acting decisively, laying stress on prevention, and adapting to both times ofpeace and times of crisis” and seamlessly connected with higher-level government safety production accident contingency plans.To test the feasibility of theeliminate the hidden dangers of ?re, and ensure that “Everyone Speaks ofSafety, Everyone Knows Emergency Response”, Henglin holds ?re?ghting drills every June, allowing our employees to learn about ?reknowledge and the use of ?re?ghting equipment, as well as master ?re?ghting and evacuation skills and precautions.
Safety Emergency Management
On-site Operation Demonstrationof Fire?ghting Equipment
Case
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key Performance
Key Performance
Key Performance
During the Reporting Period, Henglin headquarters organized 2 safety emergency drills.
During the Reporting Period, Henglin organized 23 sessions of occupational health checkups.
Safety Education and TrainingHenglin highly values employee safety education and training, considering it as an important cornerstone of enterprise development.In order to enhance employees’ safety awareness and skills, we have vigorously carried out a series of e?ective safety productioneducation activities. During the Reporting Period, we have successfully organized more than 20 safety education and training sessions,ensuring that all employees bene?t from them.
Occupational health management
Henglin values the physical and mental health of all employees and is committed to providing employees with a safe and healthy work environmentto prevent work-related injuries and health damage.To comply with national regulations on the prevention and control of occupational diseases, strengthen the management of occupational diseaseprevention and control, improve the level of prevention and control, and e?ectively ensure the health and safety of workers, we adopt the policies of“ensuring health and safety production; upholding people orientation and sustainable development; adhering to compliant operation andcontinual improvement” for the prevention and control of occupational diseases. We implement classi?ed management and comprehensivecontrol of health risks in the production environment. In accordance with the relevant provisions of theand the wehave formulated the for all employees, implementing the principle of “production oversees must overseework safety” and “production oversees must oversee the prevention and control of occupational diseases”, forming the working mechanism ofassigning responsibilities to all levels, ensuring each department assumes their responsibilities, properly preventing and controlling occupationalhazards, and promotion the sustainable development of production.Henglin comprehensively and systematically safeguards employees’ occupational health, enhancing employees’ safety awareness throughwarning, promotion, education, and training, regularly maintaining and repairing occupational disease prevention and control facilities, andstandardizing the management process of protective equipment. We implement a scienti?c and systematic monitoring and evaluation system toensure that construction projects meet occupational health standards. Moreover, Henglin establishes a system for managing workers’ occupationalhealth records, realizing the dynamic management of health information and building a scienti?c and e?cient emergency response mechanism torapidly respond to occupational disease hazard accidents.
Henglin attaches great importance to safety production and environmental protection and has formulated management regulationssuch as theHenglin strictly implements relevant management regulations to ensuree?ective storage and control measures are implemented during the storage and use of hazardous chemicals, to avoid possible personalinjury and property loss, fully demonstrating our sense of social responsibility and environmental commitment.
Chemical management
In 2023, Henglin organized health checkups for both new and existing employees. Through rigorous occupational health checkups, weidenti?ed 39 employees as being at occupational risk. To address this, we strictly cross-check with the Human Resources Departmentbefore each checkup, and after the checkup, properly handle the at-risk employees by notifying them and transferring them to otherpositions, ensuring their health and safety.
Health Checkup
New Employee Education and TrainingGroup Security Personnel Training
Sessions of safety educationand training（times）
Total hours of safety educationand training (in hours)26450.5
Coverage rate of safetyeducation and training (%)
Coverage rate of safety riskprotection training (%)100100Note: Data compilation encompasses Henglin headquarters, excluding subsidiaries. Among them, the total hoursof safety education and training include a three-day safety awareness training.
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Key Performance
One-Day-Donation Campaign of HenglinOn the afternoon of September 16, 2023, Henglin organized the2023 One-Day-Donation Campaign, encouraging employees toactively participate and create a good atmosphere where everyonecherishes charity and participates in charity. At the donationceremony, employees at all levels responded one after another,donating money in turn, gathering the charitable power of theHenglin family to help build a beautiful international green city inAnji. As of 2023, the One-Day-Donation Campaign has raised nearlyRMB 5,000,000 in donations.
Establishment of Xiaofeng Henglin Education FundOn the morning of April 24, 2023, the establishment ceremony and donation launch of the Xiaofeng Henglin EducationFund were held in the auditorium of Xiaofeng Primary School. Henglin donated RMB 6,000,000 to the Xiaofeng HenglinEducation Fund to support the development of education in Xiaofeng Town. The fund set up scholarships, teachingawards, and student assistance funds, among other educational public welfare projects.
Henglin conducts long-term periodic occupational health monitoring of employees, establishes an occupational health ledger, andconducts targeted pre-job, on-the-job and o?-the-job occupational health checkups for employees. In addition, in accordance with theISO 45001 Occupational Health Management System and IKEA IWAY Standard, Henglin arranges annual workplace occupational hazardfactor detection to identify positions with hazards. Employees in these positions are required to sign an and are provided with corresponding safety protection equipment.Henglin actively organizes internal audits and management reviews, conducts risk identi?cation and assessment (the identi?cation andevaluation of hazards), identi?es on-site risks, and posts risk noti?cation signs at locations with occupational health and safety risks.
Health Monitoring
Percentage of special operators licensedDetection rate of occupational disease hazards100%100%
Pass rate of occupational diseasehazard detection
Number of new occupational diseases
100%0
Henglin upholds a strong sense of social responsibility, closely follows national policy guidelines, and deeply integrates the concept ofsocial sharing into our daily operations. We are enthusiastic about public welfare and give back to society with practical actions,demonstrating our sincerity and responsibility. We always stay grounded, and with a pragmatic spirit, ful?ll corporate socialresponsibility and contribute to social progress.Since 2021, Henglin has conducted the One-Day-Donation Campaign for three consecutive years. Chairman Wang Jianglin took the leadby setting an example in contributing to charitable causes, and all employees enthusiastically participated. Together, they supportedcommon prosperity and social welfare initiatives through practical actions, cumulatively donating nearly RMB 5,000,000.During the Reporting Period, Henglin established the Xiaofeng Henglin Education Fund with RMB 6,000,000 to promote the vigorousdevelopment of education in Xiaofeng Town. The fund set up scholarships, teaching awards, and student assistance funds, among othereducational public welfare projects. As of now, Henglin has cumulatively donated nearly tens of millions in cash and materials and ourvolunteers have conducted condolence activities at Baofu Elderly Care Home for six years. Henglin has been committed to promotingrural revitalization and contributing to the common prosperity of Anji. We ?rmly believe that through our e?orts, we can help morestudents realize their dreams and jointly create a better future.
Contributing to Social Welfare
Case
Case
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
SustainableDevelopmentManagement
Commitment toExcellence inQuality: WinningReputation withSuperior Service
Creation of a BetterFuture for theHome FurnishingIndustry: SharingTrust to Build theCornerstone forLong-TermProsperity.
Annex
Stewardship in
the Home
FurnishingsMarket:
Upholding LawfulOperations andIntegrity.
Leadership in
Low-CarbonDevelopmentTrend: Guardingthe Greenness of
the World.
Indexes
Chapters and Sections
About This ReportMessage from the ChairmanAbout HenglinSustainable DevelopmentPhilosophy
Strict Control of PollutantEmissions
Building Chains ofResponsibilityStrengthening QualityControlO?ering OutstandingQuality and ServiceProperly ProtectingInformation SecurityUpholding the Rights and
Interests of EmployeesEnsuring the DemocraticLife of EmployeesFostering EmployeeGrowthParallelling Safety andHealthContributing to SocialWelfareIndexesFeedback Form
Driving Innovative R&D
Scienti?c andStandardized GovernanceEnhancement of InternalControl and ComplianceOptimization of InvestorRelations ManagementUpholding of Business
EthicsAddressing Climate
ChangeEnhancement of
Environmental
GovernanceOptimization of Resource
Allocation
Sustainable Development Goals
(SDGs) of the United Nations
Comprehensive Risk
Management
StakeholderCommunication
Analysis ofSubstantive lssues
2-1,2-2,2-3
2-222-62-22
-3-32-293-1，3-2
203-2308-1,414-1
417-1416-1,416-2，417-1，417-2,417-3
3-3，418-1
V2.1-2.5,V2.7-2.8S5.1，S5.2，S5.3，S5.5，V2.6
S4.1-4.2S4.3-S4.5，S4.7-4.9S4.6
2-9,2-12207-1,207-2
2-29205-2
--
--
305-1,305-5
307-1
E5.3,E5.4E1.1，E1.3，E1.4，E1.6，E1.7，
E1.8，E1.9，E2.14，
2-7，401-1，401-2，405-1，
406-1，408-1，409-1
403-1，403-2，403-3，403-4，403-5，403-6，403-7，403-8
S1.1-1.5，S1.7-1.10
301-1，301-2，301-3，302-1，303-1，
303-3，303-5
303-2，306-2，306-5E3.1,E3.3,E3.5
E2.1，E2.2，E2.3，E2.4，E2.5，E2.6，E2.7，
E2.8，E2.9，E2.10
G1.1-1.2
G1.3-1.4
G1.10-11
G1.6,G1.9
P1.1-1.3
P2.1-2.2P3.1,P4.1-4.3,A2
G3.2
-G2.3G3.6G3.5
(GSSB)(GRI Standards)
(CASS-ESG 5.0)
Annex
407-1404-1
S1.6S2.1-S2.4
415-1V3.4，V3.5，V3.6
S3.1，S3.2，S3.4，S3.5-3.9，S3.11
Chapters and Sections
(GSSB)(GRI Standards)
(CASS-ESG 5.0)
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report
Dear readers,Thank you for reading this report. We highly value and look forward to hearing your feedback on this report.Your opinions and suggestions are important bases for us to continually enhance our ESG information dis-closure practices and promote ESG management and initiatives. We welcome and sincerely appreciate yourvaluable comments!
8. Any comments or suggestions on our ESG performance and this report?
You can contact us through the following modes:
Address: No. 378, 380, Jiaxi Road, Dipu Subdistrict, Anji County, Huzhou City, Zhejiang Province, ChinaTel: 0572-5227673Email: hlgf@zjhenglin.com
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6. How do you think we have ful?lled our employee responsibilities?
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Feedback Form
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Henglin Home Furnishings Co., Ltd.2023 Environmental, Social and Governance (ESG) Report