CONTENTS
Appendix72Key Performance Table67
About This Report03About Huaming07Message from the Chairman 052024 Honors of Huaming10
Feedback and Suggestions77
Corporate Governance13Risk Control21Business Ethics23
Strengthening Governance toConsolidate the Foundation
R&D Innovation47Customer Service49
Serving Customers with Digitaland Intelligent DevelopmentGreen Manufacturing Technology: Empower-ing Enterprise Low-Carbon Transition27Environmental Management29Resource and Energy Management31Emissions and Waste Management32Green Operations34
Pioneering Green Developmentthrough Low-Carbonand Eco-Friendly Practices
Product Safety37Supply Chain Management40Data Security41Safe Production and Occupational Health42
Ful?lling Safety Responsibilitieswith Steady Commitment
Employee Management55Promoting Industry Development63Social Welfare65
Caring for Talent and EmbracingSocial Responsibility
03042024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
About This ReportThis report is the second Environmental, Social, and Governance (ESG) report issued by Huaming Power Equip-ment Co., Ltd. (hereinafter referred to as "Huaming", "the Company" or "We" ) for stakeholders.
The disclosure scope of this report is consistent with the ?nancial information disclosed in the 2024 annual report.Some information may involve previous years' policies and practices.Report Scope and Boundaries
The data used in this report is derived from the operational data, publicly available data from government depart-ments, annual ?nancial data, and internal statistical reports. The ?nancial data in this report is denominated in RMB,and in case of discrepancies with ?nancial reports, the ?nancial reports shall prevail.
Data Explanation
This report contains no false records, misleading statements, or major omissions. Huaming is responsible for the au-thenticity, accuracy, and completeness of the content.Reliability Assurance
Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report (For TrialImplementation)China National StandardGuidance on Social Responsibility Reporting (GB/T 36001-2015)Chinese Academy of Social Sciences China CSR Report Preparation Guide (CASS-ESG 6.0)United Nations Sustainable Development Goals (SDGs)Global Reporting Initiative (GRI)Sustainability Reporting Standards (GRI Standards)
Preparation Basis
Based on our ESG practices, the report follows the process of project approval— materials collection— preparationand revision— review by senior management—review by the Board of Directors— external disclosure. Huaming active-ly communicated with stakeholders during the process of project approval, preparation and revision to discuss thereport structure and contents.
Preparation Process
The electronic version of this report is available on the o?cial website of Huaming (www.huaming.com) and CNINFOwebsite (www.cninfo.com.cn).Huaming will continuously improve the reporting disclosure standards and ESG management in the future. If you haveany questions or suggestions, please feel free to contact us at:
Publication Format
Huaming Power Equipment Co., Ltd.Address: No. 977 Tongpu Road, Putuo District, ShanghaiPhone: 021-52708824Email: dsh@huaming.com
05062024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
Message from the Chairman
In 2024, at the intersection of global energy transformation and industrial change, Huaming has forged aheadthrough challenges and opportunities with innovation as our anchor and responsibility as our sail. We adhere tothe core philosophy of "Technology Leading the Future, Green Empowering Development", deepening ESG practic-es, and promoting the harmonious progress between the Company, society, and the environment. We continue tomake strides in low-carbon transformation, technological breakthroughs, talent cultivation, and social contribu-tions, injecting Huamings wisdom into global sustainable energy development.
As a global leader in the tap-changer ?eld, Huaming has always regarded technological breakthroughs as thelifeline of the enterprise. We focus on green manufacturing and digital transformation, leveraging intelligenttechnologies to reshape product lifecycle management. From process innovation to material advancements,from MES system upgrades to carbon reduction technology exploration, we continuously provide global cus-tomers with more e?cient and reliable solutions. In key areas such as ultra-high voltage and renewable energy,Huaming has broken through technical barriers with independent innovation, driving "Made in China" to thehigher end of the global value chain.
We rede?ned industry standards through technological innovation
Low-carbon transformation is not only a responsibility but also a future competitive advantage. With the goal ofreshaping the entire industrial chain towards sustainability, we optimized resource recycling systems, improvedenergy efficiency, and advanced production towards cleaner and more sustainable practices. From buildinggreen factories to waste resource utilization, from water and electricity conservation to emission compliancemanagement, we responded to global climate challenges through systemic changes.
We achieved green development through green practices
Employees are Huaming's most valuable assets. We established an empowerment system that ensures "growthwith pathways and value with returns". Through skill competitions, international exchanges, and dual-careerpathways, we helped employees break boundaries. With health protection, warm care, and hardship assistance,we built a foundation of happiness. We believe that only by respecting individual value and stimulating collec-tive wisdom can we forge the resilient foundation of a century-old enterprise.
We empowered our organization through talent development
Huaming consistently contributes to society through industrial strength. We deepened community partner-ships, supported education and healthcare, and innovated the "technical philanthropy" model, spreadingwarmth to remote villages and urban corners. By participating in industry standard-setting and sharing technol-ogy platforms, we collaborated with global partners to draw the future of energy . The journey of responsibilityhas no end, and Huaming is willing to be a companion for social progress, interpreting corporate responsibilitywith action.
We marked our commitment to responsibility, we co-created a better eco-system
Looking to the future, Huaming will anchor innovation direction with a global perspective, embrace transforma-tion opportunities with openness, and ful?ll our mission of sustainable development with reverence. We ?rmlybelieve that only by staying true to our original intention and surpassing ourselves can we dance with the timesand write a new chapter in the global energy revolution!
The Stars and Seas Await, Our Journey is Bright
董事长：
肖毅
082024 Environmental, Social and Governance (ESG) Report
About Huaming
Company Pro?leHuaming is headquartered at No. 977, Tongpu Road, Putuo District,Shanghai. Huaming achieved backdoor listing through FIN CNC, com-pleting the restructuring and listing by the end of 2015 (stock abbrevia-tion "Huaming" with the stock code 002270).As the sole manufacturer of tap changers in China possessing two com-prehensive industrial chain production bases. Shanghai Huaming, awholly owned subsidiary, is recognized as a "specialized, special andnew" small and medium sized enterprise, and further as a national spe-cialized, special and new "little giant" enterprise. With its establishmentin the early 1990s, Huaming has been engaging in the segmented marketfor three decades. Following the acquisition of the largest domestic com-petitor in 2018, Huaming has ?rmly secured its position as the leader inChina and the second largest globally in its market segment. Huaminghas actively participated in the compilation and revision of key industryand technical standards for load break switches, primarily competingwith overseas rivals in the global arena. On the international stage, Hua-ming holds a formal membership in the IEEE Special Committee, activelycontributing to the compilation and discussion of relevant industry regu-lations and the formulation of IEC standards.Business Segment
Huaming primarily engages in three sectors three segments: electrical equipment, electrical engineering, andnumerical control equipment.
The CNC equipment segment specializes in R&D, manufacturing, and distribution of integrated CNC systems.
CNC (Computer Numerical Control) Equipment
Huaming's products are globally distributed, with power equipment exported to Europe, North America, Southeast Asia,and other key regions. In recent years, China has established carbon peaking and carbon neutrality as strategic priori-ties, implementing comprehensive policies to accelerate growth in downstream industries such as new energy vehiclesand photovoltaic power generation. This surge has driven industrial electricity demand, while sustained increases innational power consumption have necessitated continuous expansion of power generation capacity and grid infrastruc-ture, thereby enlarging the tap-changer market. Concurrently, accelerated grid investments in Europe and America haveboosted overseas transformer demand, with rising Chinese transformer exports creating new growth avenues for Huam-ing.Corporate CultureHuaming Equipment adheres to the governance philosophy of "Integrity of the Industry, Benevolence and Morality, In-novation, Self-Improvement". Every employee is guided to uphold meticulous professionalism, fostering a credible cor-porate image. Huaming prioritizes holistic employee welfare, addressing macro-level factors like facility environmentsand micro-level details such as dining provisions. Immediate needs like bene?ts coverage and long-term career devel-opment are systematically integrated, cultivating a workplace ethos where corporate and individual growth synergize –ultimately transforming the company into an employee-centric "family haven".
The power engineeringsegment specializes inEPC (Engineering, Pro-curement, Construction)and O&M services forrenewable energy powerplants.
Power Engineering
As the core business,the power equipmentdivision focuses on R&D,production, sales, and fulllifecycle O&M services fortransformer tap-changers.
Power Equipment
07082024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
09102024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
History of Huaming
1991
19941995
19961999
2009
20182015
2020
20222023
2024
Foundation of Shanghai Huaming
Switchgear Factory
Started exporting products overseas indi-rectly
Reformed into Shanghai Huaming Power
Equipment Co., Ltd.
Recognized as a high-tech enterprise inShanghai
Obtained CNAS laboratory accreditation,and became the ?rst private enterpriseacademician workstation in Shanghai
Issued RMB700 million corporate bonds,awarded the title of National Model Acad-emician and Expert Workstation, and ac-quired Guizhou Changzheng, the largestdomestic competitor
Successfully completed non-public o?ering,and the ?rst set of ultra-high voltage trans-former on-load tap changers were o?ciallyput into network operation
Mass production for the ultra-high voltagetransformer project at the Longdong Qing-yang Station
The new-type vacuum on-load tap-chang-er has successfully passed all ±800kVultra-high voltage (UHV) tests in a singleattempt and will be deployed in the Long-dong-Shandong Project.
Successfully completed restructuring and IPO
Sales exceeded RMB80 million
Launched the ultra-high voltage project
2024 Honors of Huaming
Huaming was awarded the"Best Practice for ProductQuality Reliability Innovation
in Shanghai"Huaming was awarded the"2024 Snowball In?uentialListed Company of the Year"Huaming received the "15
thChi-na Listed Companies InvestorRelations Tianma Award" fromSecurities Times
09Huaming Power Equipment Co., Ltd
Huaming won the “Best Value Creation Award” and “Best Capi-tal Market Communication Award” at the “8
thChina Excellence IRAwards” held during the roadshow
Huaming was recognized as
a “Manufacturing SingleChampion Enterprise” bythe Ministry of Industry and
Information Technology
Awarded the Title of “Man-ufacturing Single ChampionEnterprise” by MIIT (Ministryof Industry and InformationTechnology)
Awarded the “Numerical
Manufacturing Excel-lence Award” by Chint
Group
Obtain the Supplier Quali?-cation and Capability Veri?-cation Access Certi?cation forLarge-Scale Centralized Pro-curement from China ElectricEquipment Group Co., Ltd.
CorporateGovernance
Strengthening Governance toConsolidate the Foundation
Huaming has established robust governance frameworks, rigorous internal con-trol systems, and streamlined communication mechanisms as foundational pil-lars for sustainable growth. Huaming is committed to cultivating an ethical andself-regulated operational environment, championing integrity-driven values,and leveraging compliance management as a strategic fulcrum. Through en-hanced disclosure transparency and proactive engagement with stakeholders,Huaming systematically elevates its core competitiveness.
Business EthicsRisk Controland Compli-
ance
Supporting of the UN SDGs
1314
Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance
to Consolidate theFoundation
Corporate Governance
Huaming strictly adheres to the regulations including the Company Law of the People's Republic of China and the Securities Lawof the People's Republic of China, theGuidelines for the Governance of Listed Companies, and theRules for the Listing of Stockson the Shenzhen Stock Exchange, building a robust and efficient governance framework. The corporate governance hierarchycomprises the Shareholders' Assembly, Supervisory Board, Board of Directors, and Executive Management. Under the Board ofDirectors, specialized governance bodies including the Strategic Committee, Compensation Committee, Nomination Committee,and Audit Committee have been established to ensure operational compliance and transparency. Huaming has institutionalizedregulatory frameworks such as theImplementation Rules for the Board Audit Committee,Implementation Rules for the BoardNomination Committee, Implementation Rules for the Board Compensation & Evaluation Committee, andImplementation Rulesfor the Board Strategic Committee.
Huaming continuously re?nes governance practices, strengthens ESG management systems, and institutes investor protectionprotocols to achieve multi-stakeholder synergy.Board Structure and Governance
Organizational Structure of Huaming
Business Segment
The Board of Directors consists of 9 directors, including 1 female director and 3 independent non-executive directors. All membersposse exceptional professional quali?cations and extensive corporate governance experience, with no gender or ethnic barriers im-posed on personnel selection. The Board' primary responsibilities encompass formulating corporate strategy, monitoring ?nancialperformance, exercising e?ective oversight of management, safeguarding shareholders' long-term interests, and aligning businessobjectives with macroeconomic and market dynamics to achieve sustainable high-quality development.
Huaming operates two major domestic production bases for tap-changers. The Shang-hai base primarily includes Shanghai Huaming Power Equipment Manufacturing Co.,Ltd. and Shanghai Huaming High-Voltage Switch Manufacturing Co., Ltd.; the Zunyi basecomprises Guizhou Changzheng Electric Co., Ltd. and Zunyi Huaming Power EquipmentManufacturing Co., Ltd. Tap-changer maintenance services are primarily managed byShanghai Huaming Power Equipment Maintenance Service Co., Ltd.Tap Changer
This segment is centered around Shanghai Huaming Power Engineering Co., Ltd., withits subsidiaries Shandong Star Business Incubation Co., Ltd. and Changfeng NuoyangPhotovoltaic Power Generation Co., Ltd., collectively holding approximately 80MW of PVpower plant assets.
Power Engineering
Mainly operated through Shandong FIN CNC Machine Co., Ltd.CNC Equipment
2024 Key Performance Indicator for Board Structure and Governance
Proposals
General Meeting ofShareholders
Supervisory Board
Proposals
Board of Directors
Proposals
Specialized CommitteeMeetings of the Board
Proposals
Board of Supervisors
Board of Directors O?ce
The General Meeting of Shareholders
Board of Directors
General Manager
Audit Department
Audit CommitteeStrategy CommitteeCompensation andEvaluation CommitteeNomination Committee
1516
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) Report
Strengthening Governance
to Consolidate the
Foundation
October 2024
Board Secretary Haijing Xianamed "Sunshine Board Sec-
retary Award"
Securities Times "18
thChina ListedCompany Value Awards"
Major Honors in Corporate Governance
October 2024
Chairman Yi Xiao named"Outstanding Management
Pioneer of the Year"
Securities Times 18
th
China ListedCompany Value Awards
August 2024
Board Secretary Haijing Xianamed "10
th Golden Kirin·-Golden Secretary"Sina Finance
December 2024
Annual Return Power Enterprise2024 Yicai Capital Market ValueAwards” by Yicai
November 2024
Board Secretary Haijing Xia named
"Top 100 Board Secretaries"
awarded to Mr. Haijing Xia
th"Most Popular Board Secretaryby Institutional Investors"
ESG Governance
Supporting of the UN SDGs
Responsible Actions of HuamingChapter ReferenceSDGs
The occupational health examination rate and completion rate ofoccupational health training for employees are 100%
Caring for Talent and Em-bracing Social Responsibility
Designated logical and equitable career development paths for allemployees
Caring for Talent and Embrac-ing Social Responsibility
Established educational advancement programs and professionalskill enhancement plans for employees, and launched special pro-grams for professional title promotion
Caring for Talent and Em-bracing Social Responsibility
Drove forward energy conservation and emission reduction initia-tives while elevated energy e?ciency
Low-Carbon EnvironmentalProtection and PioneeringGreen Initiatives
Protected employee rights and advanced gender equality
Caring for Talent and Embrac-ing Social ResponsibilityLow-Carbon EnvironmentalProtection and PioneeringGreen InitiativesEnhanced water conservation e?orts and promoted the recyclingof water resources
Serving Customers with Digitaland Intelligent DevelopmentConsistently increased in R&D investment and introduced top-tierdomestic and international talents specializing in experimentaland testing equipment, and fostered exchanges and collaborationswith professional institutionsEmbraced the diversity of our employees
Caring for Talent and Embrac-ing Social ResponsibilityActively participated in social donations, educational assistance,and volunteer activities
Caring for Talent and Embrac-ing Social ResponsibilityManaged of waste gas, wastewater, and solid waste to ensurecompliance with pollution regulations
Low-Carbon EnvironmentalProtection and PioneeringGreen Initiatives
Caring for Talent and Embrac-ing Social Responsibility
Forged strong collaborative relationships with domestic univer-sities, research institutions, and other stakeholders to jointlypropel sustainable industrial development
Formulated annual energy-saving targets and improvementplans based on actual conditions
Low-Carbon EnvironmentalProtection and PioneeringGreen InitiativesStrengthened Board structure and governance to ensure Com-pany operations
Strengthening Governanceand Laying a Solid Foundation
1718
Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance
to Consolidate theFoundation
Responsible BodyManagement LevelResponsibilities
ESG leadership anddecision-making body
?●Determine the ESG development direction andgoals?●Review and approve the ESG governance system
?●Review the ESG report and major ESG matters
ESG research and guid-ance body
?●Coordinate internal and external ESG work?●Research laws, regulations, policies, and materi-al topics in ESG?●Identify and manage ESG-related risks and op-portunities that signi?cantly impact the business?●Guide daily ESG work and report preparation
ESG Execution Units
?●Ful?ll responsibilities within their scope?●Implement ESG tasks according to the Compa-ny's overall plan?●Regularly report on execution progress
Responsible organiza-tion for daily ESG duties
?●Responsible for understanding the demands,opinions, and suggestions of stakeholders?●Analyze material topics
?●Carry out information collection, compilation,and disclosure of ESG reports
ESG Governance PhilosophyHuaming actively implements the new development philosophy of innovation, coordination, green, openness, and sharing, inte-grating this philosophy into all aspects and processes of business development. Through e?orts and practices in safety production,technological innovation, corporate governance, talent cultivation, and other aspects, the Company promotes high-quality indus-trial development while contributing to society and achieving environmentally friendly construction. During the reporting period,Huaming formulated and releasedthe Huaming ESG Governance System.ESG Governance StructureTo institutionalize ESG governance mechanisms and coordinate related initiatives, in 2024 Huaming established a comprehensiveESG management system characterized by structural integrity, hierarchical clarity, de?ned accountability, and operational e?cien-cy. This system enables centralized leadership, decision-making, and implementation of ESG programs.
ESG Governance Structure
Board of Directors
Strategy Committee ofthe Board of Directors
All departments and
subsidiaries
Board of DirectorsO?ce
Stakeholder EngagementHuaming recognizes the strategic value of building a positive interaction mechanism with diverse stakeholders. Through standard-ized and systematic communication processes, Huaming ensures timely information disclosure and sustainable two-way commu-nication. This approach allows for accurate identi?cation and coordination of stakeholder concerns and integrates ESG governanceinto corporate strategic decision-making, continuously improving the ESG governance system and enhancing the ability to ful?llresponsibilities to all stakeholders.
StakeholderExpectations and RequirementsActions
?●Compliance disclosure?●
Risk management
?●
Hold the General Meeting of Share-holders?●Receive visits from investors?●Regularly disclose information
?●
Conduct earnings brie?ngs?●Rural revitalization and social wel-fare
?●Business ethics
?●
Industry trends and policies
?●
O?er job opportunities
?●Embark on rural revitalization and
social welfare initiatives
?●
Exchanges and cooperation?●Supply chain management?●Intellectual property protection
?●
Adopt transparent procurement
?●
Build a green supply chain
?●Protect intellectual property?●Product quality and safety?●Customer satisfaction?●R&D and innovation?●Information security and privacyprotection
?●Enhance product quality control
?●
Facilitate customer visits and train-
ing activities
?●
High-quality customer service
?●Reinforce privacy protection?●Employee rights and interests?●Employee care?●Talent training and development?●Occupational Health and Safety
?●Protect employees' rights and in-
terests
?●
Enrich employee activities with di-
versity
?●
Offer a just and equitable promo-
tion path
?●Ensure a safe and healthy working
environment?●Rural revitalization?●Social welfare
?●Support rural revitalization
?●
Embark on charitable education
assistance
?●
Undertake charitable activities
Shareholders and investors
Government and Regulators
Suppliers and partners
Customers
Employees
Society and public
1920
Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) Report
Strengthening Governance
to Consolidate theFoundation
Dual Materiality Analysis
Guided by stakeholder expectations, operational scope, and sustainability imperatives, Huaming conducts materiality assessmentsto identify issues with ?nancial materiality to corporate performance and impact materiality to stakeholders. In 2024, we distribut-ed impact signi?cance questionnaires to investors, clients, employees, suppliers, and other stakeholders, soliciting evaluations onthe economic, social, and environmental implications of key ESG topics.
Standardization of Information DisclosureIn compliance with theCompany Law of the People's Republicof China, theSecurities Law of the People's Republic of China,the Measures for the Administration of Information Disclosureof Listed Companies, as well as theArticles of Associationandother pertinent regulations, Huaming has established a com-prehensive suite of systems, including theInformation Disclo-sure System, to strengthen the administration of informationdisclosure. These mechanisms ensure truthful, accurate, com-plete, and timely disclosures, enhance governance standards,and safeguard investor rights.
Investor Relations
Huaming issued
periodic and ad hoc reports in total.During the reporting period
?●ESG Governance?●Community involvement andcommitment
?●
Corporate Governance?●Risk Management?●
Information Security and Privacy Protection
?●Water Resource Man-agement?●Environmental Protec-tion Management
?●Waste Management?●Employee Trainingand Development?●Employee Care?●Compliant Employ-ment and EmployeeRights Protection
?●Competitive Compensa-tion and Bene?ts?●Sustainable SupplyChain?●Promoting IndustryDevelopment?●Business Ethics
?●Information Disclosureand Investor Manage-mentImportance to Economic, Social,and Environmental Impacts
Very Important
Importance to FinanceNot ImportantVery Important
?●Addressing ClimateChange?●Energy Management?●Environmental Protec-tion Management
?●Occupational Healthand Safety
?●Product Quality andSafety?●R&D and Innovation?●High-Quality CustomerService?●Responsible Marketing
Investor Relations ManagementHuaming adheres to the principles of openness, impartiality, and fairness, to establish e?ective communication channels withshareholders. We have formulated theInvestor Relations Management Framework of Huaming and designated the Board Secre-tary as the primary point of contact, responsible for investor relations, overseeing the coordination of investor relations, receivingshareholder visits, and addressing investors' inquiries. During the reporting period, Huaming responded to investors' demands andinquiries, and protected investors' interests through various communication channels such as disclosing special announcementsrelated to investors, promptly responding on the Shenzhen Stock Exchange's Interactive platform, and hosting investor researchvisits.
Huaming held
institutional research sessions, engaged with1,500+ institutions across 1,700+
investor visits (covering brokers, funds, and retail investors). Huaming published 32 investor activity disclosure records.
During the reporting period
Investor Relations Awards
th
China Listed CompaniesInvestor Relations Tianma Award
Securities TimesJune 2024
Best Value Creation Award and Best
Capital Market Communication Award
Roadshow China 8
th
China Excellence IR AwardsDecember 2024
Outstanding Shareholder Return Award (2023), Out-standing Institutional Communication Award (2023),
and Outstanding IR Company (2023)Panorama Network 5
th IR Golden Awards
December 2024
2122
Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governanceto Consolidate the
Foundation
Risk Control and Compliance
Huaming has prioritized the reinforcement of its compliance management frame-work, leading to the formulation and re?nement of compliance management poli-cies. During the reporting period, to clarify the safety production and occupationalhealth responsibilities of each department and position, enhance employees' safetyawareness, and regulate the planning, management, and use of safety productionexpenses, Huaming revised and re?ned theSafety Production Responsibility Systemand the Regulations on the Extraction and Use of Safety Production Expenses, en-suring the e?ective implementation of these regulations. Additionally, Huaming hascontinued to standardize its contract signing and execution review processes, aim-ing to enhance the quality and e?ciency of reviews, thus ensuring that all major de-cisions adhere to legal and regulatory standards. No major legal disputes occurredduring the reporting period.
Compliance Management
Shareholder ReturnsHuaming has consistently prioritized shareholder returns, ensuring value co-creationwith investors. Under theThree-Year Shareholder Return Plan (2023-2025)disclosedduring the reporting period, Huaming commits to distributing no less than 60% ofannual distributable pro?ts in cash dividends, subject to meeting dividend eligibilitycriteria.
In 2024, Huaming distributed semi-annual and third-quarter dividends total-ing RMB
millionWith annual dividends for 2024amounting to RMB
million
Resulting in cumulative annualdividends of RMB
million
During the reporting period
Shareholder Returns Awards
Enterprise with Annual Return Excellence2024 China Business NewsCapital Market Value ListDecember 2024
Compliance Culture DevelopmentHuaming proactively organized comprehensive compliance training activities to ensure that employees fully understand and com-ply with relevant laws and regulations, thereby maintaining the compliance throughout the organization and preventing potentiallegal risks.
February 2024NewCompany Law of the People's Republic of ChinaTraining
June 2024Supreme People's Court on Antitrust Civil Dispute CasesTraining
July 2024Criminal Risk Training on Common Fraud Crimes
May 2024Code of Conduct and Legal Liability Training
Huaming implemented of relevant by establishing full-process risk management mechanism to mitigate legal and policy risks andprotect the rights and interests of employees, customers, and other stakeholders. During the reporting period, we analyzed majoraccident hazards in the production process and organized forklift operators to obtain special operation certi?cates, eliminatingmajor accident risks related to certi?ed production operations. Meanwhile, we hired third-party institutions to guide the imple-mentation of safety standardization work, mitigating legal risks associated with standardized operations. Moreover, in compliancewith local government requirements for con?ned space management, we conducted inspections, created a list, and set up signsfor con?ned spaces.
Risk Control
On February 28, 2025, the company convened the 15th Meeting of the Sixth Board ofDirectors, during which the “Proposal on Share Repurchase Plan” was reviewedand approved. The company plans to use self-owned or self-arranged funds to re-purchase a portion of its RMB-denominated ordinary shares (A-shares) through cen-tralized bidding transactions, with a total repurchase amount of no less than RMB150 million (inclusive) and no more than RMB 200 million (inclusive).
2324
Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
2024 Environmental, Social and Governance (ESG) Report
Strengthening Governance
to Consolidate theFoundation
IntegrityManagementStandards
Business Ethics
Huaming adheres strictly to laws and regulations, including theAnti-Unfair Competition Law of the People's Republic of ChinaandtheBasic Norms for Enterprise Internal Control, implementing rigorous anti-commercial bribery measures, creating a sound inter-nal and external environment to prevent corruption. No corruption lawsuits occurred during the reporting period.To optimize the internal environment, reduce issues such as commercial bribery and illegal misappropriation of Company assetsfor personal gain that harm the interests of the Company and shareholders, the Company formulated theHuaming Anti-FraudManagement Frameworkto prevent, detect, and address fraudulent behavior in a timely, comprehensive, and e?ective manner.For all types of fraudulent activities, the HR Department collaborates with relevant departments to collect, organize, analyze, com-municate, and disseminate anti-fraud information, as well as execute, follow up, publish, and archive anti-fraud outcomes. Forsevere cases of fraud, departments must promptly report related anti-fraud work information to Company leadership and the auditdepartment.
Integrity Management
Employees are strictly prohibitedfrom soliciting or accepting gifts,cash, credit cards, shopping cards,kickbacks, or any other forms of?nancial bene?ts from clients, sup-pliers, or other third parties.
Exploiting official duties for per-sonal gain, including demanding/accepting lavish banquets, gifts,favors, or engaging in unethicalconduct, is strictly forbidden. Em-ployees must avoid nepotism orcronyism in business transactionsand disclose potential con?icts ofinterest involving relatives/friends.
Employees shall not accepthigh-value gifts, travel, or enter-tainment (e.g., adult entertainmentvenues, luxury trips) from businesspartners. Reimbursement of per-sonal expenses by third parties isstrictly prohibited.
Accounting and finance staff areprohibited from misappropriatingcorporate funds for stock trading,personal investments, or unauthor-ized purposes. Violations will resultin immediate termination and maytrigger legal prosecution under ap-plicable laws.
Business travel must be conductedfor legitimate business purposesonly and adhere to authorizedspending limits. Employees maynot combine o?cial trips with per-sonal vacations or claim excessivereimbursements.
Employees discovering nepotism,abuse of power, commercial brib-ery, or fraud must immediatelyreport such violations throughestablished channels. Failure toreport constitutes complicity inmisconduct.
Anti-Fraud Mechanism and Reporting Channels
To mitigate any unethical or illegal behaviors seeking improper bene?ts in procurement activities, Huaming has implemented asigning mechanism for both theSupplier Integrity Commitmentand theIntegrity Agreementwith all suppliers, requiring them tosign the relevant agreements when signing contracts. The clauses within these agreements explicitly outline various responsibili-ties and robust disciplinary measures to regulate supplier conduct and reduce procurement compliance risks. During the reportingperiod, no corruption incidents involving suppliers occurred.
Supplier Business Ethics Management
Anti-Fraud Reporting ChannelsPhone
021-58995505
jubao@huaming.comAddress
Huaming Internal Audit Department, No. 977,Tongpu Road, Putuo District, Shanghai
Postal Code
200333
To regulate professional conduct of the company and its employees, promote a culture of integrity and diligence, and prevent ac-tions that harm the interests of the Company and shareholders, Huaming issued theAnti-Fraud Management Systemduring thereporting period and publicly disclosed anti-fraud reporting channels to receive reports from employees, suppliers, agents, andregular clients associated with the Company. To ensure proper handling of reported cases, the Company has designated personnelto record and investigate relevant matters.Huaming will maintain strict con?dentiality, e?ectively safeguarding the interests of the whistleblowers, and will not tolerate anyform of threats, retaliation, or intimidation against them. To encourage employees to uphold Company interests, whistleblowerswhose reports are veri?ed as truthful and result in loss recovery for the Company will receive appropriate rewards.
Emissions and
WasteManagement
Green OperationsResource andEnergyManagementEnvironmental
Management
Supporting of the UN SDGs
Green Manufactur-
ing Technology:
Empowering En-terprise Low-Car-bon Transition
Pioneering Green Developmentthrough Low-Carbonand Eco-Friendly PracticesHuaming has always adhered to the concept of green development, striving toachieve harmony between humanity and nature. We attach great importanceto environmental management, continuously improving the environmentalmanagement framework, actively promoting energy conservation and wastemanagement, and rigorously implementing national environmental protectionregulations. We conduct regular environmental risk assessments and hazardinspections, establishing a comprehensive emergency management framework.Through continuous environmental education and training, we actively cultivateemployees' environmental awareness, ensuring that the green concept is deeplyembedded in the corporate culture.
Green Manufacturing Technology: Empow-ering Enterprise Low-Carbon TransitionHuaming actively responds to national calls and is dedicated to promoting green manufacturing and low-carbon production. FromR&D and design to production and sales, Huaming implements comprehensive management throughout the entire manufacturingprocess, covering the complete industrial chain, including tap changers. In practice, Huaming has undergone a profound shift inphilosophy, optimizing product structure from the design stage, collaborating with universities and research institutions to pro-mote the application of new materials, processes, and technologies, thereby reducing carbon emissions and improving productione?ciency. Signi?cant achievements in energy conservation and green manufacturing have further advanced sustainable develop-ment and contributed to achieving carbon peaking and carbon neutrality goals.
Special Topic
ThermosettingPlastic CompressionMolding
Thermoplastic Plas-tic Injection Molding
By shifting from traditional high-tem-perature thermal processing tolow-temperature cold processing,Huaming significantly reduced energyconsumption and pollutant emis-sions. Traditional thermal processing,such as low-pressure casting, requireshigh-temperature metal melting, whichis energy-intensive and highly polluting.By adopting stamping and cold extru-sion techniques, energy consumptionand exhaust emissions are minimized,while optimizing part design enhanc-es production efficiency and productquality, achieving green manufacturinggoals.
Transition from "Hot" to "Cold" Processing
In the application of plastic materials, the company has replaced traditional thermosetting plastics with thermoplastic materials,thereby reducing pollution during the production process and improving resource utilization. Thermosetting plastics cannot bereused, and their waste and scraps are di?cult to recycle and dispose of. The company has introduced high-temperature-resistantand high-strength thermoplastics and adopted thermoplastic injection molding processes, which have improved production e?-ciency and further reduced waste generation. These technological innovations not only enhance productivity but also e?ectivelyreduce energy consumption and pollutant emissions, promoting the development of green manufacturing.
Green Substitution: "Thermoset" Replaces "Thermoplastic"
Low-pressureCasting
Stamping andStretching
With the deepening of digital transformation, Huaming continuously optimizes and updates the MES (Manufacturing ExecutionSystem), enhancing production management e?ciency and accuracy while providing crucial support for achieving green manufac-turing goals. Through real-time data collection and analysis, the system monitors energy consumption, equipment utilization, andenvironmental metrics during production, providing actionable insights for reducing energy use and carbon emissions. Systematicproduction management minimizes resource waste and unplanned downtime, improving sustainability.
Green Support through the MES System
Through the MES system, Huaming achieves real-time updates and collection of data such as equipment operation status, uptime,OEE (Overall Equipment E?ectiveness) reports, exception reports, time sequence analysis, and failure analysis. Managers leveragemultidimensional data for precise scheduling and decision-making. Instant feedback identi?es bottlenecks and anomalies swiftly,boosting e?ciency, equipment utilization, and reducing downtime.
Real-Time Data Collection andMulti-Dimensional MonitoringProduction E?ciency Improvement
During production, Huaming strengthens the application of the Andon management framework. When production issues arise,employees upload images and descriptions via MES software, triggering immediate alerts to technical inspectors. Unlike tradition-al manual escalation, the MES system ensures rapid response and dispatches personnel to resolve issues on-site. Solutions aredocumented and bound to work orders within MES, ensuring traceability, minimizing delays, and improving production continuity.
Rapid Response and ProblemResolutionAndon Management
By continuously optimizing and updating theMES system, Huaming successfully achievesseamless integration of information flowand management in the production process.From raw material receipt to part warehous-ing and workshop operation status, thesystem ensures real-time updates and trace-ability. Real-time updates allow managers tomonitor progress, capacity, and task comple-tion, enabling timely decisions and resourceallocation. This digital platform enhancesprecision in production control and resourceoptimization.
MES System
Comprehensive ManagementE?ciency EnhancementSystem Integration and Information Flow
Huaming Equipment has transitioned from manual dispatching to MES-based real-time production scheduling, enabling preciseand e?cient workshop operations. Through automated dispatching, managers can track production progress, equipment status,operator performance, and order backlogs in real time, signi?cantly reducing manual scheduling burdens. This approach improvesexecution capabilities, accelerates response times, and enhances overall production ?exibility.
Real-Time Dispatch and Task TrackingManagement E?ciency Improvement
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Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
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Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Environmental ManagementHuaming adheres to green and sustainable development and continuously strength-ens environmental protection management and execution. We strictly comply withnational laws and regulations such as theEnvironmental Protection Law of the Peo-ple's Republic of China, the Environmental Impact Assessment Law of the People'sRepublic of China, the Regulations on Planning Environmental Impact Assessment,and the Measures for the Administration of Ecological Environment Standards.Wealso follow international standards like ISO14001 and have optimized multiple sys-tems, including theQuality/Environment/Occupational Health and Safety Manage-ment Framework Manual, the Procedure for Identification and Evaluation of Envi-ronmental Factors, and the Regulations on the Storage Places of Hazardous Wastes.These e?orts have laid a solid foundation for the standardization and institutionali-zation of production activities. During the reporting period, Huaming's subsidiariesmaintained compliance with ISO14001 Environmental Management Frameworkcertification and further enhanced their environmental management standards topromote sustainable development.Huaming has established a top-down, comprehensive environmental managementstructure, clearly defining the responsibilities and duties of environmental man-agement personnel. By strengthening the primary responsibility for environmentalmanagement, all levels of management actively participate in and fully implementenvironmental protection measures. This systematic structure allows Huaming toefficiently coordinate and implement environmental measures, ensuring effectiveexecution at all levels while continuously improving management standards.
Environmental Management Structure
General Manager
As the primary individual accountablefor the environmental protection, theGeneral Manager bears full responsi-bility for overseeing all aspects of theenvironment protection.
Department Leaders in Charge
Leading the Safety and EnvironmentalProtection Department, these leadersare tasked with regularly developingenvironmental protection work plans,promptly examining and analyzing criti-cal environmental issues, and formulat-ing measures and solutions to addressenvironmental challenges.
Technical Leaders in ChargeThese leaders ensure that newly con-structed, reconstructed, and expandedengineering projects comply with legalenvironmental impact assessments.They organize and facilitate the upgrad-ing of the company's pollution preven-tion and control equipment technology.
Head of Safety and Environmen-tal Protection DepartmentBearing sole responsibility for the en-vironmental protection duties of theSafety and Environmental Protection De-partment, this individual oversees andguides the environmental protectionefforts of various departments withinHuaming.
Workshop Director
As the primary individual responsible forthe environmental protection work with-in the workshop, the Workshop Directororganizes and implements Huaming'senvironmental protection managementsystem and work requirements, ensuringcompliance and e?ectiveness.
Huaming prioritizes the prevention and response to environmental incidents by continuously improving risk prevention and emer-gency response systems. Subsidiaries and production bases conduct risk inspections based on theEmergency Response Plan forUnexpected Environmental Events,summarize the results, and analyze typical environmental hazard cases to strengthen emergen-cy management. Huaming maintains professional emergency response teams, well-equipped emergency facilities, and necessaryemergency supplies to ensure rapid and e?ective handling of unexpected incidents. Regular emergency drills further enhance acci-dent prevention capabilities.
Emergency Drill for Environmental Incidents
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Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent andEmbracing SocialResponsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Aligned with national energy conservation requirements, Huaming has formulated stringent energy conservation and consump-tion reduction control documents to standardize and guide energy conservation e?orts across all facilities. Annual energy-savingtargets and improvement plans are set based on production realities, with subsidiaries and factories developing speci?c goals andmonitoring progress. These measures optimize the energy management system, achieving notable progress in energy conserva-tion and green, low-carbon development.
Energy Conservation Transformation
Resource and Energy Management
In the production and operation process, Huaming primarily relies on municipal water supply and recycled water. In response tothe national call for building a water-saving society, we place great emphasis on the secondary utilization of water resources andhave developed customized water recycling and reuse plans based on production needs, ensuring e?cient utilization, conservation,and protection of water resources. During the reporting period, Huaming and our subsidiaries implemented a series of water-sav-ing measures, signi?cantly improving water resource e?ciency and e?ectively avoiding waste in the production process. To furtherstrengthen water management, we established a water-saving leadership team to coordinate and promote water resource manage-ment across the entire organization. We also revised relevant policies to continuously optimize water resource governance, ensuringadherence to rational water use principles and advancing the development of a resource-e?cient enterprise.
Resource Management
In terms of energy management, Huaming has further improved a comprehensive energy management framework and relateddocuments, such as theEnergy Resource Management Frameworkbased on its environmental management framework. Huamingcontinues to advance innovative improvements in energy e?ciency enhancement, emission reduction, and resource conservation.Dedicated personnel are assigned to regularly track and document energy usage for e?ective oversight.
Energy Management
Emissions and Waste ManagementHuaming strictly complies with theEnvironmental Protection Law of the People's Republic of Chinaand theSolid Waste PollutionPrevention Law.We optimize theWaste Control Procedureto manage waste classi?cation, storage, disposal, and record-keeping.By leveraging technological advancements and recycling measures, we strive to reduce the generation of pollutants and wastewhile continuously improving environmental management.
Huaming has upgraded the leak detection method for components from the traditional oil immersion method to theuse of a helium mass spectrometer leak detector. Leveraging helium's molecular di?usion properties in a vacuum, thismethod detects even microscopic leaks due to helium's tiny molecular size. As an inert gas, helium does not react withmaterials, ensuring no impact on tested components. Compared to conventional pressure testing (which requires 24hours for results), the helium spectrometer completes leak detection in approximately 700 seconds. This innovationreduces labor intensity, enhances automation, and improves precision while eliminating environmental interferencefrom temperature or humidity.
Helium Mass Spectrometer Detector
Helium Mass Spectrometer Detector
Huaming rigidly upholds theLaw of the People's Republic of China on the Prevention and Control of Atmospheric Pollutionand otherpertinent regulations and policy directives and implements classi?ed monitoring and treatment for various exhaust gases emittedduring each production stage, enhancing the quality and e?ectiveness of ultra-low emission transformation e?orts. Each subsidiaryconducts comprehensive identi?cation and management of environmental factors to ensure that all exhaust emissions comply withrelevant environmental regulations. Through online monitoring equipment, the main exhaust pollutants during the production pro-cess are controlled in real-time, ensuring 100% compliance with emission standards. During the reporting period, Huaming advancedultra-low emission upgraded through measures such as production optimization, upgrades, and evaluation testing.
Exhaust Gas Management
Previously, oil immersion methodsincreased cleaning complexity,resource consumption, and safetyrisks (e.g., oil spills). The heliumleak detector eliminates these is-sues, ensuring a cleaner and saferworkspace. This advancementdemonstrates significant benefitsin efficiency, labor reduction, pre-cision, environmental protection,and safety.
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Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
2024 Environmental, Social and Governance (ESG) Report
Strengthening Governance toConsolidate the Foundation
Huaming strictly adheres to laws and regulations, including theLaw of thePeople's Republic of China on the Prevention and Control of Water Pollution
and theRegulations on Urban Drainage and Sewage Treatmentand hasestablished internal wastewater management frameworks to standardizeand optimize wastewater treatment. Tailored treatment processes are ap-plied based on pollutant types from different production lines, ensuringdischarged wastewater meets national and local standards to minimizeenvironmental impact. Quali?ed third-party agencies conduct annual envi-ronmental monitoring to verify compliance.Huaming operated an efficient wastewater treatment station, includinga comprehensive wastewater treatment system and a specialized cya-nide-containing wastewater treatment system. The comprehensive systemensures that the treated wastewater meets discharge standards, while thecyanide-containing wastewater treatment system e?ectively removes harm-ful cyanides and enables the recycling of water resources. . These measuresreduce pollution, enhance resource e?ciency, and support green, sustaina-ble development.
Wastewater Management
Huaming implements strict classi?cation management in accordance withlaws and regulations such as theLaw of the People's Republic of China onthe Prevention and Control of Environmental Pollution by Solid Wasteandthe Management Measures for the Transfer of Hazardous Waste.Waste iscategorized into hazardous waste and general waste. We continuously opti-mize a series of management frameworks, including theWaste ManagementRegulationsand theSolid Waste Control Procedures,to ensure compliantwaste treatment. For hazardous waste, we have adopted source reductionmeasures and required subsidiaries to develop hazardous waste invento-ries, clearly documenting the types of waste, generation processes, hazards,disposal units, and treatment methods. Compliance with theHazardousWaste Management Regulations ensures safe collection, storage, transporta-tion, and disposal.Huaming's solid waste primarily includes general industrial waste, domesticwaste, and hazardous waste such as paint packaging, waste paint residuepaper, waste organic solvents, spent activated carbon, filter adsorptionmedia, waste mineral oil, and waste cutting ?uid generated during surfacepainting processes. To ensure effective waste management, we adopt amanagement model of source classification, standardized storage, andcompliant disposal. Domestic waste is collected through classi?cation andentrusted to sanitation departments for disposal. General industrial waste,such as iron scraps generated during steel plate cutting and part processing,is treated as recyclable resources and handed over to third-party units forcomprehensive utilization. Hazardous waste is professionally treated or dis-posed of by quali?ed third-party units to ensure compliance with environ-mental protection requirements.
Waste Management
Green OperationsHuaming attaches great importance to the environmental impact of o?ce activities, actively responds to the national call for en-ergy conservation and carbon reduction, and fully promotes the concept of green o?ce internally, striving to create a low-carbonand environmentally friendly o?ce culture. Huaming has gradually improved a series of internal management frameworks suchas theGreen O?ce System, advocating environmentally friendly behaviors such as electricity conservation, paper reduction, andgreen commuting, further fostering an atmosphere of green o?ce operations.
Greening Construction in Company Facilities
Green O?ce Initiatives
We encourage employees to issue documents (notices) electronically through collabora-tive networks, QQ groups, and other means, striving to avoid unnecessary paper printing.For non-essential documents, employees are advised to print on the reverse side of waste-paper (such as expired single-page printouts). For important documents, double-sidedprinting is advocated to minimize paper waste. In addition, all archive materials are notprinted in principle unless absolutely necessary, to reduce paper consumption.AdvocatingGreen O?ce
The company has optimized o?ce lighting by replacing the original dual-lamp illuminationwith a single-lamp mode and promoting energy-e?cient LED lighting. For air conditioningusage, regulations have been implemented requiring cooling temperatures to be set nolower than 26°C in summer and heating temperatures no higher than 18°C in winter, signi?-cantly reducing energy waste.PromotingElectricityConservation
The company encourages employees to prioritize the use of electric vehicles for businesstravel, e?ectively reducing reliance on traditional fuel-powered vehicles and further lower-ing carbon emissions from transportation activities.EncouragingGreenTransportation
Strengthening Governance toConsolidate the Foundation
Product Safety
Safe Production andOccupational HealthData SecuritySupply ChainSecurity
Supporting of the UN SDGs
Fulfilling Safety Responsibilitieswith Steady Commitment
Huaming regards safety and quality as the cornerstone of corporate develop-ment, strictly controlling all management processes, prioritizing product qualityand safety, enforcing high standards, strengthening supply chain security, ensur-ing stable supply, protecting data security and privacy, improving occupationalhealth and safety management systems, building robust production safety lines,and continuously enhancing core competitiveness to deliver reliable products tocustomers.
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Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling SafetyResponsibilities with Steady
Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) Report
Strengthening Governance toConsolidate the Foundation
Three ProhibitionsThree-No-Let-O? PrinciplesProduct Safety
Huaming promotes the quality concept of "Four Threes and Twelve Key ImplementationPoints", widely promoting the quality philosophy in product manufacturing, establishing acomprehensive quality management framework and regulating the production process inall aspects. Internal documents such as theQuality/Environmental/Occupational Healthand Safety Integrated Management Manual,Product Parts Processing Quality ManagementFramework, andProduct Assembly Quality Management Framework have been formulat-ed. A three-tier quality management structure is in place, led by the General Manager, over-seen by the Quality Control Department, and executed by the Quality Inspection Division.The Quality Control Department manages the implementation and operation of the inte-grated management system, conducts regular audits, and drives improvements. During thereporting period, Huaming further re?ned its quality management system, prioritized inter-nal and external audits, established inspection mechanisms covering all critical productionstages, revised 12 product inspection guidelines, updated 14 inspection record forms, andde?ned 8 quality control points. It also actively cooperated with customer-led second-par-ty audits. By the end of the reporting period, all major subsidiaries had obtained and main-tained valid ISO 9001 Quality Management System certi?cations.
Huaming rigorously ensures product quality and safety, adhering to the business philosophy of "creating an international brandand fostering a century-old enterprise", aiming to achieve the goal of "customer satisfaction through scientific management,leading technology, and reliable product quality". Huaming maintains high standards to guarantee product excellence and driveshigh-quality development in the power equipment industry.Quality Management Framework
Quality Management System
Certi?cation
Quality issues are managed across three phases:
pre-event, in-process, and post-event.
Three ResponsibilitiesThree According-tos
Remediating existing quality issues while imple-menting preventive measures for future productionbatches.Post-event Management
Pre-event ManagementProactively eliminating factors that may cause quali-ty issues before they occur.In-process Management
Promptly addressing ongoing quality issues to pre-vent escalation.
| 01 | 02 |
Drawings
Processes
Standards
Four Sets of Three- Quality Management Principles
Huaming ?rmly upholds the quality policy, pursuing technological innovation, striving for excellent quality, and the ful?llment ofcustomer needs. Huaming prioritizes enhancing customer experience to re?ne both product and service quality, while maintainingrigorous quality control throughout the entire production process. All departments collaborate seamlessly to oversee the qualityof every step, from raw material procurement to design, production, and service, thereby establishing Huaming's reputation as abrand synonymous with high standards and exceptional quality.In the procurement process, Huaming strengthens quality control over the products and services provided by suppliers and furtherenhances the reward and punishment assessment system for suppliers. In the production process, we rigorously monitor all pro-duction stages by adding critical control points, increasing inspections of key components and processes, and conducting regularaudits of process compliance, equipment conditions, and environmental factors to ensure stability and reliability. Inspectionsare performed in accordance with contracts and technical agreements to prevent non-conforming products. During the producttesting process, we enforce strict product testing standards, utilizing advanced methods such as coordinate measuring machines,high-voltage insulation testing, and laser 3D scanning. The Tap Changer Testing Center has obtained CNAS (China National Accred-itation Service for Conformity Assessment) laboratory certi?cation, with test results recognized under ILAC (International Laborato-ry Accreditation Cooperation) mutual agreements.
Full Process Quality Control
Quality Control
No acceptance, no manufacturing, and no pass-ing on of defective products
Employees inspect received components from priorprocesses and reject non-conforming items, requir-ing immediate corrective actions from upstreamprocesses to avoid wasted resources.
No acceptance of defective products
After receiving quali?ed products from the previousprocess, employees Strictly follow operating proce-dures and conduct thorough pre-process checks tominimize defects.
No manufacturing of defective products
After completing their own process, employees in-spect products before transferring them to the nextprocess, intercept defects, and resolve issues withinthe current process.
No passing on of defective products
Strictly implement the "Three-No-Let-O? Policy"
| 03 | 04 |
Including no unresolved rootcauses of quality issues
No unaddressed accountability
Uneducated staff and no unim-plemented preventive measures
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Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling SafetyResponsibilities with SteadyCommitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
2024 Environmental, Social and Governance (ESG) Report
Strengthening Governance toConsolidate the Foundation
Huaming promotes quality awareness through morning meetings, training sessions, performance evaluations, rewards, and em-ployee dialogues, fostering a virtuous cycle of continuous improvement.Quality Culture
In modern manufacturing, stability and consistency of product quality are crucial. Manual operations, susceptibleto fatigue and human error, often lead to quality ?uctuations. Automated tooling, driven by precise control systems,ensures consistent production per prede?ned parameters, improving yield rates. By replacing manual and basic me-chanical tooling with automated and zero-point positioning systems, the company signi?cantly enhanced processinge?ciency and quality.
Automated Tooling Application
For years, the composite product series occasionally exhibited excessive neutral point resistance after high temperaturetransformer drying. This issue was added to the "Unresolved Items" list during the 10
th
Quality Meeting of the reporting peri-od. After six months of iterative design and testing, the problem was resolved and closed at the 16
th
Quality Meeting.
Product Optimization
Employees are recognized as "First-, Second-, or Third-Class Quality Role Models" based on contributions and adherenceto quality standards, nominated via self-recommendation or departmental referrals. This program combines recognitionand monetary rewards to incentivize quality excellence.
Quality Role Models Selection
To further elevate quality, Huaming enhances management of testing equipment and self-developed inspection tools, establishinglong-term mechanisms for continuous quality improvement. Addressing quality issues with a "prevention-?rst, combining pre-vention and control" approach, Huaming conducts root cause analyses and implements targeted corrective actions to eliminatedefects at their source. E?ectiveness of improvements is ensured through tracking and evaluation, with regular quality analysismeetings and ad-hoc project reviews to trace accountability, educate employees on quality impacts, and involve sta? in correctivemeasures.During the reporting period, Huaming introduced department-speci?c assessments for ?rst-time inspection pass rates under itsemployee incentive system, fostering self-inspection and peer-checking awareness. This "Everyone is a Quality Inspector" initiativeadvanced total quality management, achieving annual pass rate targets across departments, reducing assembly defects in ?nishedproducts, and lowering risks of defects reaching customers.
Quality Improvement
Huaming organizes training sessions for suppliers on the ISO 9001 Quality Management System standards and urges them todevelop corresponding implementation plans for the ISO 9001 system. When necessary, we provide assistance to help suppliersestablish and improve their quality assurance systems, thereby enhancing the quality of supplier products. Additionally, we holdat least two supplier meetings a year to facilitate communication between both parties. During the reporting period, Huamingconducted quality training for multiple suppliers, emphasizing the importance of supply quality and transmitting quality-relatedexpectations to the supplier level.
Supply Chain ManagementTo enhance supplier management, Huaming has established a Supplier Management Team composed of the Procurement Depart-ment, Technology Department, Process Department, and Quality Department and has formulated working documents such as theSupplier Management Framework, Procurement Control Procedure,andContract Management Procedures, which de?ne respon-sibilities, development processes, monthly assessments, periodic evaluations, and supplier relationship management. Suppliersundergo regular on-site and documentation reviews covering quality, pricing, and certi?cations to ensure sustained compliance.Non-compliant suppliers will not be included in theList of Quali?ed Suppliers,and aRequest for Removal of Unquali?ed Suppliers
form will be ?lled out upon consensus by the Supplier Management Team. The team conducts a monthly assessment of suppliersbased on theList of Quali?ed Suppliers, evaluating indicators such as inspection pass rate, on-time delivery rate, service quality,and price level, and ?lls out the Supplier Monthly Assessment Form.The Company adopts transparent procurement practices, typically selecting suppliers via competitive bidding. At least two sup-pliers are engaged for each material, with thorough price comparisons and signedIntegrity Commitment Agreements. To miti-gate supply chain risks, critical materials are sourced from multiple regional suppliers, with safety stock and alternative brandspre-identi?ed. For materials with long production cycles, we prepare a certain stock in advance according to the plan. Additionally,an alternative brand of the same quality is selected as a backup in case of sudden supply chain disruptions.
For a new product with a 90-day delivery and 30-day procurement cycle, the Company proactively issued long-leadorders to suppliers. To ensure timely delivery, internal departments dynamically coordinated and proactively issued or-ders for items with longer procurement lead times to suppliers. During the procurement process, the procurement teamtracked production status, resolved errors promptly, and leveraged procurement resources to complete deliveries onschedule.
Improving On-Time Delivery Rate
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Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling SafetyResponsibilities with SteadyCommitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
In terms of privacy protection, the General Manager's O?ce serves as the primary department responsible for con?dentiality man-agement, overseeing and monitoring encryption and decryption activities. Huaming has established a comprehensive set of infor-mation security policies, including theCompany Privacy Policy, Employee Privacy Protection Regulations, Customer InformationCon?dentiality System, Computer Usage Management Framework,andPrivacy Protection Process Norms.These policies clearlydefine the handling methods and confidentiality measures for both customer and employee data. Furthermore, Huaming hasinstituted regulations governing the decryption of documents and contingency plans to address privacy breaches. All ?les storedon company computers are encrypted, and when there is a need for external transmission, these ?les must undergo decryptionin a designated archive room prior to dissemination. Additionally, all employees are required to sign con?dentiality agreements,ensuring the strict adherence to privacy protocols. During the reporting period, Huaming enhanced data protection by installingencryption software on computers used by the sales and customer service departments to prevent data leakage. No cybersecurityincidents or information breaches occurred.
Data SecurityHuaming places high importance on information security and customer privacy protection, strictly adhering to the laws and regu-lations, including the Cybersecurity Law of the People's Republic of China, Data Security Law of the People's Republic of China,andRegulations on the Protection of Personal Information of Telecommunications and Internet Users.A Cybersecurity and InformationSecurity Leadership Group, comprising the Information Security O?ce and department heads, has been established to review andapprove major cybersecurity initiatives, conduct cybersecurity awareness training for system operators, investigate security inci-dents, and maintain incident records. Policies such as theCybersecurity and Information Security Management Regulationsand
Cybercrime Reporting and Investigation Assistance Regulationsguide information security practices.During the reporting period, Huaming upgraded its data leak prevention (DLP) system by expanding document encryption cov-erage for technical and o?ce ?les, enhanced UPS systems, installed hardware ?rewalls, and provided cybersecurity training formiddle management and IT sta?. These measures strengthened employee awareness, improved network security capabilities, andsafeguarded corporate information assets and customer interests.
Safe Production and Occupational HealthHuaming strictly adheres to theLaw of the People's Republic of China on Safe Productionand thePeople's Republic of China'sOccupational Disease Prevention and Control Law,along with other pertinent legal provisions. We continuously improve and ef-fectively operate the safety management framework, rigorously implement workplace safety policies, and prioritize the health ofthe employees by establishing a comprehensive employee health management framework. We are committed to progressivelyenhancing the workplace safety management standards and o?ering comprehensive safeguards for the occupational health andsafety of our workforce. As of the end of the reporting period, Huaming had largely achieved the safety objectives, with all produc-tion sites obtaining and maintaining ISO 45001:2018 Occupational Health and Safety Management System certi?cation. The safetyand environmental protection systems are functioning e?ectively.
Huaming produces a comprehensive "Safety and Occupational Health Management Review Report" at the beginning of each yearand identi?es potential hazards within the organization and develops a risk list through regular comprehensive risk identi?cationand evaluation. Utilizing the job hazard analysis method known as LEC, Huaming performs accident risk assessments on the iden-ti?ed hazards and organizes potential hazard inspection activities.During the reporting period, Huaming engaged a third-party organization to guide the safety standardization e?orts, reviewing thecurrent state of workplace safety and eliminating legal risks associated with safety standardization. We also studied lessons fromexternal accidents, analyzing risks related to the use of angle grinders and handheld grinders by mechanics, and subsequentlyestablished theSafety Operating Procedures for Handheld Electric Toolsand organized employee training on the correct use ofhandheld electric tools to reduce accident risks.
Safety Production Risk Management
Safety ProductionThe occupational health and safety management framework is comprehensive, encompassing objective systems, responsibilityand institutional frameworks, inspection and evaluation mechanisms, as well as systems for training improvement and address-ing potential hazards. We outline our safety and environmental protection targets, tasks, and measures annually, which are thenmonitored through rigorous 6S inspections and assessments monthly. The legal representative serves as the primary responsibleperson for occupational health and safety, adopting a safety and occupational health management framework led by the GeneralManager, with departments managing and executing responsibilities according to their functions. This system operates acrossthree levels: company-wide, departmental, and team-based. Environmental Protection Department is responsible for overseeingthe company-wide workplace safety and occupational health management in compliance with legal and regulatory requirements.In terms of systematic approach, Huaming has established theSafety and Environmental Protection System Compilationas anauthoritative guide for safety management. During the reporting period, Huaming comprehensively reviewed and refined theworkplace safety responsibility systembased on evolving needs, clearly de?ning the safety responsibilities of leaders at all levels,various departments, and individual positions. We revised regulations such as theWorkplace Safety Responsibility SystemandtheRegulations on the Allocation and Use of Workplace Safety Funds.Additionally, we organized all employees to sign workplacesafety responsibility agreements, ensuring a 100% signing rate to reinforce accountability for workplace safety. At the beginning ofeach year, we develop a safety measures plan, which is broken down into monthly and departmental tasks. Daily implementationis emphasized to ensure that every safety-related task is managed and that every individual has speci?c responsibilities.
Safety Production Management Framework
Serious injury or higher casualty accidents
Fire accidents
Pass rate for special equipment inspections
%
Certi?cation rate for special operations personnel
%
Timely recti?cation rate of potential hazards
%
Key Safety Production Management Indicators:
Improving Existing Network SecurityArchitecture
?●Upgraded firewalls, intrusion detection/prevention systems, and security monitor-ing; regular device updates and vulnerabili-ty patching.Strengthening Data Protection?●Employing encryption technology androbust data backup strategies to safeguardthe security and integrity of data duringtransmission and storage. Regularly per-forming data backup and restoration exer-cises to validate the usability and recovera-bility of backups.
Regular Security Audits and Risk As-sessments
?●
Conducting thorough analyses and eval-uations of the network system to identifypotential security risks and vulnerabilities,promptly implementing remedial and opti-mization measures.
Establishing an Information SharingMechanism?●Facilitating information sharing and collab-oration among employees to bolster overallnetwork security awareness and defensecapabilities. Clarifying the parameters andaccountabilities of information sharing toprevent the disclosure of sensitive informa-tion and intellectual property concerns.
Enhancing Employee Network Securi-ty Training
?●Organizing enterprise-specific network se-curity training to elevate employees' aware-ness and preventative mindset towardsnetwork security.
Formulating Network Security Man-agement Framework
?●Formulating and executing rigorous net-work security management protocols, en-compassing network device administration,data backup and restoration, and the han-dling of network security incidents.
Measures to Enhance Information Security
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Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling SafetyResponsibilities with SteadyCommitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Following the release ofCriteria for Determining Major Hazards in Industrial and Trade Enterprises(Emergency RegulationNo. 10), Huaming analyzed production risks and identi?ed insu?cient certi?ed forklift operators. It was identi?ed that thelimited number of forklift operators could not fully meet operational demands, posing a signi?cant accident risk. To addressthis, we arranged training for team leaders and key employees to participate in forklift skills training and obtain specializedforklift operation certi?cations, thereby eliminating the risk associated with uncerti?ed personnel operating forklifts.
Forklift Safety Certi?cation Training
Huaming has established an emergency response system and developed a production safety accident emergency plan, whichclearly de?nes responsibilities and emergency procedures. Each year, based on the actual operational conditions and the ability torespond to sudden workplace safety incidents, Huaming conducts targeted and diverse emergency drills. These drills are designedto enhance employees' safety awareness and emergency response capabilities through simulated real-world scenarios, continu-ously strengthening the foundation of emergency management.
Modi?cation of dust water treatment equipment for aluminum partsshot blasting machines to eliminate the risk of combustion hazards
Emergency Drill for On-Site Response to Electric Shock AccidentsEmergency Drill during Fire Safety Awareness Month
Replacing manual trimming of casting gates/?ashes with CNC program-
ming in aluminum foundry workshops
Safety productioninvestmentRMB
2.303
million
Problem recti?ca-tion rate
%
Work-relatedfatalities
人Conducted holiday andspecial inspections
次
During the reporting period
Huaming has established an occupational health and safety training system, developing an annual training plan based on regula-tory requirements and the actual conditions to rigorously implement safety education and training programs. We organize all em-ployees for learning sessions and examinations, incorporating safety education into daily morning meetings to discuss new safetyrequirements and lessons from accident cases. This approach aims to enhance the awareness of safety responsibilities amongleaders and employees at all levels. Additionally, we conduct comprehensive employee learning, training, and examination initia-tives, including company-wide tests and quizzes. Each year, we organize a series of activities for Workplace Safety Month to consol-idate and maintain a strong culture of workplace safety.
Safety Education and Training
Occupational Health
Huaming strictly adheres to the provisions of theLaw of the People's Republic of China on the Prevention and Control of Occupa-tional Diseasesand other relevant laws and regulations, developing comprehensive management frameworks, including theOc-cupational Health and Safety Operation Control Proceduresand theIntegrated Management Manual for Quality, Environment, andOccupational Health and Safety.We embarked on a thorough evaluation and hazard assessment of the production site, encom-passing equipment and facilities, workplaces, as well as operational procedures. Critical operational points posing a potential riskof major accidents were designated as safety control points and incorporated into the List of Major Hazard Factors. Furthermore,we conducted comprehensive assessments of the basic safety management practices and occupational hazard risks. The corre-sponding evaluation materials, including reports, were made accessible to all employees, ensuring their complete understandingand adherence to the stipulated requirements.Huaming regularly organizes health screenings for employees, maintains comprehensive health records, and provides them withlabor protective equipment, facilities, and tools that meet the standards for occupational health protection. This ensures the com-prehensive safeguarding of employees' occupational health. As of the end of the reporting period, Huaming invested RMB 923,600in employee occupational health, achieving a 100% pass rate for occupational hazard monitoring and a 100% participation rate inoccupational health examinations.
First Training Session after the National Day
Holiday
Safety Month Knowledge Competition with theTheme "Everyone Talks Safety, Everyone KnowsHow to Respond, Smooth Life Passage"
Team Leaders Visit Safety and Emergency
Escape Education Base
New Pre-Treatment Equipment and Exhaust Puri?cation Device in the Surface Treatment Workshop
Training rate for management personnel, new employees,and special operations personnel
%
As of the end of the reporting period
Safety education ratefor all employees
%
Major workplace safety pro-duction incidents occurred
%
Customer ServiceR&D Innovation
Supporting of the UN SDGs
Serving Customers with Digital andIntelligent Development
Huaming consistently upholds high-standard quality management, ensuringevery stage from design to production strictly adheres to customer require-ments. In customer service, we emphasize rapid response and professionalsupport, striving to enhance satisfaction and build long-term partnerships.Technological innovation serves as the core driver for Huaming Equipment. Bycontinuously increasing R&D investments and fostering technical collaborations,we optimize product performance to maintain industry leadership.
4748
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers withDigital and IntelligentDevelopment
Caring for Talent andEmbracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation47规治固本 夯实根基
R&D and InnovationHuaming has always regarded technological innovation as a key driver for promoting thesustainable development of the enterprise, strengthening technological leadership, andcontinuously advancing R&D and innovation. We are rooted in technological R&D and guid-ed by market demand, continuously fostering technological advantages. With an R&D basein Shanghai and an industrial base established in Zunyi, we have formed robust capabilitiesin technological R&D and industrialization. Several subsidiaries have been recognized asnational high-tech enterprises, among which the wholly owned subsidiary, Shanghai Hua-ming has not only been designated as a "Specialized, Re?ned, Distinctive, and Innovative"SME in Shanghai, but has also been awarded the title of National "Specialized, Re?ned, Dis-tinctive, and Innovative" "Little Giant" Enterprise.During the reporting period, Huaming achieved signi?cant progress in the development ofnew products. Huaming invested RMB 81.36 million in R&D, providing strong support fortechnological innovation and product upgrades. By increasing R&D investment and achiev-ing technological breakthroughs, Huaming continues to enhance its technical capabilities,driving the Company's competitiveness and sustainable development in the industry.
Huaming has established an R&D management framework led by the Technology Center.Under the leadership of the Board of Directors, the management team is fully responsiblefor the R&D activities of its subsidiaries. We have formed an expert committee, with theDeputy General Manager concurrently serving as the Director of the Technology Center.Departments such as Product Technology, New Product Development, Process Engineer-ing, Quality Inspection, Information Technology, and Archives Management have beenset up to collaboratively advance R&D management. We continuously optimize systemssuch as the Science and Technology Project Initiation Management Measures and theInnovation Incentive and Reward System, establishing an open innovation mechanism toensure the transformation and implementation of scienti?c and technological achieve-ments. At the same time, the reward system is e?ectively implemented to motivate theinnovation drive of the team. We have introduced the Performance Evaluation 2024 anda new product development cost control incentive mechanism, e?ectively standardizingthe cultivation, skill training, and rewards for R&D personnel, thereby enhancing the corecompetitiveness in attracting top talent.Huaming has adopted thePLM Drawing and Document Management software, formu-lated theGuidelines for Establishing Product Structures in PLM and Importing BorrowedComponents and the Drawing and PLM Operation Standards,and implemented the stor-age of the ?rst batch of 30 products following the PLM roll-out. We have also conductedsynchronous testing on products currently under design, covering processes such asdrawing issuance, approval, printing, and revisions. By managing drawings through thePLM software, we have e?ectively reduced drawing incompleteness, making product R&Dmore e?cient and standardized.During the new product design phase, Huaming consistently considers product sustain-ability, actively applying green principles to the design and manufacturing processes.We continuously improve the level of automation, intelligence, and integration in theproduction process, promoting the development of visual inspection systems to enhanceautomatic product inspection and processing capabilities. This further boosts productionefficiency and product quality, driving the Company's continuous innovation in greenmanufacturing and smart manufacturing.
R&D Management
Strengthening Governance toConsolidate the Foundation
The CHVT-type vacuum on-load tap-changer, independently developed by Shanghai Huaming, has demonstrated ex-ceptional performance in ±800kV ultra-high voltage (UHV) converter transformer testing, successfully passing all factoryacceptance tests conducted by Xi’an Xidian Transformer Co., Ltd. This critical component will soon be deployed as thecore equipment at the Qingyang Converter Station of the Longdong–Shandong ±800kV UHV DC Transmission Project, a?agship initiative in China’s national power grid infrastructure.
Huaming CHVT Vacuum On-Load Tap-Changer Successfully Passes UHV Converter TransformerFactory Acceptance Tests
CHVT Vacuum On-Load Tap-ChangerHuaming Converter Transformer On-Load Tap-Changer Assem-
bly Workshop
a total of
patents have beengranted authorization
As of the end of thereporting periodHuaming strictly adheres to relevant laws and regulations such as theTrademark Lawof the People's Republic of China,thePatent Law of the People's Republic of China,
and theCopyright Law of the People's Republic of China, regarding intellectual prop-erty protection as a core element for incentivizing innovation and maintaining theCompany's competitiveness. It continuously optimizes a series of internal manage-ment regulations, including thePatent Management Framework, Intellectual Proper-ty Management Framework, andIntellectual Property Emergency Plan,to ensure thee?ective protection and management of intellectual property. By applying for patentsand software copyrights with government authorities, the Company comprehensivelysafeguards its intellectual property assets.Huaming always respects the intellectual property rights of others and actively avoidsinfringing upon legitimate rights. The Company is committed to fostering a corporateculture that values knowledge and promotes innovation. By continuously strengthen-ing intellectual property management, Huaming drives technological innovation andenhances market competitiveness, ensuring that intellectual property becomes a keypillar for sustainable development as the Company progresses.
Scienti?c Honors and Intellectual Property
Additionally, Huaming hasobtained
software copyrights and
trademarks
4950
Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with
Digital and IntelligentDevelopment
Caring for Talent and
Embracing SocialResponsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Customer Service
Huaming consistently adheres to a customer demand-oriented approach, providing sincere service to every customer and contin-uously improving service quality. Upholding the service philosophy of "Customer First, Honest Service, and Continuous Improve-ment", we continuously re?ne the customer service guarantee system and related procedures such as theControl Procedures forCustomer-Related Processes, to ensure end-to-end quality.
Huaming continuously optimizes the customer demand response mechanism, actively listening to customer feedback throughvisits, surveys, and other methods, and promptly addressing customer needs and concerns. The Customer Service Departmentcompiles and analyzes service information provided by service personnel on a monthly basis and promptly reports it to relevantdepartments. Based on this compiled information, we analyze customer issues, identify customer needs or areas for improvement,and request the technical department to organize relevant personnel to implement corrective, preventive, and improvementmeasures, thereby continuously enhancing product and service quality. To further strengthen the market competitiveness ofHuaming products, we conduct personalized management for di?erent customer groups, thoroughly explore potential customerneeds, innovate product features, and strengthen interaction and connection with customers to enhance user loyalty.
Customer Demand Management
Huaming is committed to providing customers with high-value products and premium service, continuously improving compre-hensive customer complaint handling procedures and standards to ensure e?ective resolution of customer issues and satisfactionof their needs. We o?er a 24-hour service hotline via various channels such as phone, fax, and WeChat to addresses inquiries andcomplaints. All customer letters, correspondence, and calls are recorded, with detailed documentation of customer requirements.We carefully analyze and process customer letters and correspondence, ensuring that every customer complaint is resolvedpromptly, thereby enhancing customer satisfaction and loyalty.
Customer Complaints and Handling
Customer Service Management Indicators?●Response Time:Respond to technical inquiries within 2 hours. On-site support within 24 hours (48 hours for
remote areas).?●Warranty Period:18 months post-purchase; 12 months post-maintenance.
Customer Service Management Goals?●Enhance Customer Satisfaction:Enhance satisfaction through timely, high-quality support.?●Increase Customer Loyalty:Build long-term, stable customer relationships to strengthen trust and reliance onthe brand, encouraging repeat purchases and recommendations.?●Optimize Customer Service Experience:Ensure every customer receives standardized and consistent service,enhancing the overall customer experience.?●Reduce Customer Churn Rate:Identify and address customer needs in a timely manner, providing tailoredsolutions to minimize customer loss.
Customer Appreciation Letter
Huaming achieved acustomer satisfactionrate of approximately
%coupled with a
%customercomplaint resolutionrate.
In 2024
Huaming conducts annual customer satisfaction surveys to comprehensively understand customer feedback and expectationsacross multiple dimensions, including product performance and safety, delivery timelines, pricing, customer service, and newproduct requirements. Through these surveys, we can accurately track changes in customer needs, identify potential areas forimprovement, optimize products and services, enhance customer satisfaction, further strengthen cooperative relationships withcustomers, and provide robust support for product innovation and market expansion.
Customer Satisfaction Evaluation
Excellent Supplier Certi?cate
"Going Out and Bringing In" Initiatives
With the accelerated pace of technological advancement, customer demand for expertise in the operation, maintenance, andadvanced application of tap changers has signi?cantly increased. Through the "Going Out and Bringing In" systematic trainingprogram, Huaming bridges the technical gap for customers to maximize tap changer performance. By inviting customers to work-shops, we enhance customer technical capabilities and satisfaction while gaining valuable insights into customer needs to improveproduct design.
Technical Exchange with Chang-chun Sanding Transformer
On-site Guidance and Training atChongqing NARI Borui Transformer
Case Analysis and Exchange on Com-mon Faults with Tianjin Electric Power
Technical Exchange Meetingwith Harbin Transformer
Technical Exchange on On-LoadTap-Changers with Guangxi LiuzhouSpecial Transformer
Technical Exchange with XD
Jinan Transformer
Huaming rigidly complies with various laws and regulations,encompassing theLaw of the People's Republic of China onthe Protection of Consumer Rights and Interestsand theAd-vertising Law of the People's Republic of Chinaand strictlyprohibits any exaggeration or misrepresentation in productmarketing. We consistently adhere to the principle of integrity,strictly complying with internal regulations in business activi-ties such as contract signing, product sales and brand promo-tion. This ensures that all marketing practices are lawful andcompliant, avoiding any form of unfair competition. Throughthis rigorous compliance management, Huaming effectivelysafeguards consumer rights, maintains market order, andbuilds a strong brand reputation.
Product Change Notice
Responsible Marketing
?●Huaming strictly uses standard product brochures andofficial product parameter information for communi-cation. In the event of product changes, o?cial noticesare promptly issued to inform customers.
Transparent Information
?●Huaming ?lls out technical speci?cation sheets, whichare reviewed before production. Any content that can-not meet customer demands is explicitly communicat-ed in writing to avoid misunderstandings. Additionally,customer inquiries during conversations are promptlyanswered in writing.
Reasonable Expectation Management
5152
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with
Digital and IntelligentDevelopment
Caring for Talent and
Embracing Social
Responsibility
2024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
EmployeeManagement
Social WelfarePromoting IndustryDevelopment
Supporting of the UN SDGsCaring for Talent andEmbracing Social Responsibility
Huaming consistently adheres to a people-oriented approach, placing highemphasis on talent cultivation and development. We provide employees withcomprehensive career development platforms and abundant learning resourcesto empower every individual in realizing their self-worth. Meanwhile, the ?rmproactively drives technological advancements and innovations within the in-dustry through continuous R&D e?orts and collaborative exchanges, leading thesector toward high-quality development. Furthermore, while pursuing its owngrowth, we remain attentive to community development and actively engage inpublic welfare initiatives, demonstrating our commitment to giving back to soci-ety through concrete actions.
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
562024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Employee Management
Huaming profoundly recognizes the critical role of talent in achieving high-quality corporate development. We uphold the employ-ment philosophy of "Excellent Character, Collaborative Team Spirit, Professional Expertise, and Strong Service Awareness". We fullyprotect employee rights and interests, build a fair and just employment management framework, o?er personalized training andreasonable promotion mechanisms, and support employees in need, fostering an open, inclusive, and caring workplace.
Huaming consistently regards the protection of employees' fundamental rights as a signi?cant responsibility, strictly adhering tonational laws and regulations. We uphold compliant and equal employment practices, safeguard the legitimate rights and interestsof employees, and actively attract excellent talent.Huaming prohibits the employment of child labor and ?rmly opposes any form of coercion that restricts employees' physical andmental freedom or forces them to perform tasks against their will. Additionally, we respect employee diversity and strive to createan inclusive work environment. We have crafted a comprehensive suite of employment-related policies and regulations, encom-passing theProtection System for Female and Minor Workers,theRegulations on Labor Contract Management,theEmployee Re-cruitment and Hiring Measures,as well as theEmployee Resignation Management Regulations,among others. These policies aimto standardize and consolidate the recruitment process, along with various employment matters, ensuring a seamless and compli-ant work?ow. During the reporting period, Huaming has maintained a zero-tolerance policy towards any instances of employing orutilizing child labor or forced labor.Huaming adheres strictly to laws and regulations such as the Labor Law of the People's Republic of China, the Civil Code of thePeople's Republic of China, and the Personal Information Protection Law of the People's Republic of China. It ensures that job ap-plicants and employees are treated without discrimination based on factors such as skin color, ethnicity, race, nationality, socialbackground, disability, religious belief, gender, marital status, or age. Additionally, we value the social integration of individualswith disabilities. During the reporting period, Huaming employed 23 individuals with disabilities, meeting the national standard forthe proportion of disabled employees and completed the annual review of disabled employment, ensuring compliance with rele-vant policy requirements.
Employee Employment
Talent Recruitment and RetentionDuring the reporting period, Huaming conducted recruitment activities based on sta?ng needs, hiring various personnel to sup-plement departments such as production, technology, and sales. We have expanded the recruitment channels by not only postingjob openings on recruitment websites but also actively participating in university graduate job fairs and high-level talent recruit-ment events organized by municipal authorities. To enhance the recruitment skills of senior management, we organized interviewskills training sessions, ensuring the attraction of high-quality talent that aligns with the Company's development needs.As of the end of the reporting period, the details of employee employment are as follows
MaleFemale
Master and aboveror aboveJunior college
BachelorHigh school or below
51 years and above41 to 50 years31 to 40 years30 years and below
By Education BackgroundBy GenderBy Age
1,357
415283
354557985506
Huaming adheres to a people-oriented approach, safeguarding and protecting the legitimate rights and interests of employees,and has established policies such as theSalary Calculation and Payment Methods, Overtime Management Regulations, AttendanceManagement Regulations,andTrade Union Fund Management Framework,continuously improving the compensation system anddemocratic management mechanisms. This enhances employees' sense of job security and strengthens their identi?cation withand belonging to the Company.
Compensation and Communication
Compensation and PerformanceTo better adapt to market changes and the corporate development needs, Huaming has implemented a broadband salary policybased on the functional characteristics of the facilities. This policy emphasizes the core role of individual capabilities and perfor-mance in the compensation system, aiming to motivate employees to continuously improve the work abilities and skills, achievingmutual development for both individuals and the Company. We strictly adhere to the principle of timely and full payment of wages,legally contribute to social insurance and housing provident funds for employees, and safeguard their basic rights. The compensa-tion consists of basic salary, performance salary, and annual bonuses. When determining employee positions and salary levels, wefully consider job responsibilities, work capabilities, and performance, while referencing the Company's salary policies and indus-try standards to ensure fairness and competitiveness in compensation.During the reporting period, to motivate employees, Huaming formulated the2024 Department Target Task Assessment Measures,
quantifying departmental responsibilities and conducting assessments focused on "delivery timelines, quality, and costs". Employ-ees are required to sign responsibility agreements, clarify their responsibilities, and establish target implementation roadmaps.The ?nal assessment evaluates the achievement of departmental goals.Democratic Communication
Huaming upholds the principles outlined in theLaw of the People's Republic of China on Trade Unions,theConstitution of theChinese Trade Unions,and theRegulations on the Congress of Grassroots Trade Union Members,establishing trade unions and for-mulating relevant management frameworks, reviewing democratic proposals through the employees' congress. In promoting em-ployee communication, we resolutely safeguard employees' rights to information, participation, and supervision. The trade unioncommittee handles employee inquiries, complaints, and accusations, mediates labor disputes, and employees can also raise griev-ances with the labor inspection committee. During the reporting period, Huaming signed a Collective Contractwith employees,engaging in equal consultations on terms related to working hours, wages, allowances, bonuses, and employee bene?ts, reachinga consensus to safeguard employees' rights to legal labor compensation and welfare bene?ts.
Total Employees1,654
Total Managers
Female Managers
Employees with Disabilities
Major Labor Disputes
Labor Contract Signing Rate
%
Social Insurance Coverage Rate
%
Employee Turnover Rate
10.10
%
As of the end of the reporting period
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
582024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
On August 14, 2024, the Huaming High Voltage Trade Union Committee, in accordance with theLaw of the People's Re-public of China on Trade Unions,theConstitution of the Chinese Trade Unions,and theRegulations on the Election Workof Junior Trade Unions,and in line with the higher-level trade union's requirements for reelection, convened the ThirdEmployees' (Representatives') Congress for reelection. The election strictly followed procedures, with open vote counting,and ultimately, through democratic voting by employee representatives, a new trade union committee was elected. Priorto the reelection, the trade union committee submitted a Collective Negotiation Proposal to the Company. Both partiesengaged in equal consultations on signing the annual Special Wage Collective Contract,and the drafts of theCompre-hensive Collective Contract and the Special Wage Collective Contractwere reviewed and successfully signed during thisemployees' congress. The contract focused on core wage issues such as the wage distribution system, adjustment ranges,payment guarantees, and insurance bene?ts, safeguarding the legitimate rights and interests of both the company andemployees, standardizing wage management, and avoiding labor disputes.
Huaming High-Voltage Trade Union Reelection and Special Wage Collective Labor Contract Signing
Trade Union Reelection and Signing of the Special Wage Collective Contract
Huaming places great emphasis on enhancing the capabilities and career development of employees, continuously exploring in-novative talent cultivation strategies. By implementing comprehensive and multi-level training programs, we aim to improve theoverall quality of the workforce and provide a professional development platform for employees at all levels to grow and realizetheir self-worth.
Training and Development
Talent CultivationHuaming is committed to building a learning organization, establishing systems such as theTraining Management RegulationsandTraining Control Procedures to standardize training processes. We have developed a multi-level training system covering new em-ployee training, general competency training, environmental safety training, job skill training, and management training. Througha combination of "online and o?ine" channels and the integration of internal instructors and external training institutions, we o?erhigh-quality courses to cultivate high-caliber talent with excellent character, teamwork spirit, outstanding professional standards,and a strong service mindset. During the reporting period, Huaming successfully completed the annual training plan.
Total internal and external training sessions
Total employees receiving trainings
1,090
Total training hours27,505
During the reporting period
Training LevelTraining ContentsTraining Methods
New Employee Train-
ing
?●History, organizational structure, corporate culture,business scope, and market position of Huaming
?●Three-level safety education for new employees?●
Management frameworks, regulations, and workprocesses
?●IT training
?●
Classroom-based training
General Competency
Training
?●Financial knowledge training
?●Legal knowledge training
?●
Etiquette training
?●……
?●
Classroom-based training
Environmental and
Safety Training
?●Safety production regulations and safety system ex-planations?●Safety operation procedures training?●
Emergency handling skills training
?●Classroom-based training
?●Online learning
?●
Case studies
?●Written exams
Job Skills Training
?●Forklift operation training
?●Electrician practical skills training?●New product learning?●……
?●Hands-on practice
?●Skill competitions?●University partnerships?●Vocational quali?cation certi?cation
Management Training
?●Production and operation management?●Cost control?●Lean production management?●Financial management?●……
?●Classroom-based training
Multi-Level Training System
Pioneering Green Developmentthrough Low-Carbon and Eco-Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
602024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Forklift Operation Training
Safety and Environmental Training
Financial Knowledge TrainingLegal Knowledge Training
To improve employees' vocational skills, during the re-porting period, Huaming continued to collaborate withprofessional training institutions to offer advanced pre-paratory courses for CNC milling certi?cation for employ-ees in machining positions. A total of 19 employees par-ticipated in the training, with 14 successfully passing theassessment and obtaining certi?cation. As of the end ofthe reporting period, through various training programs,the number of employees holding professional quali?ca-tions increased from 73 in 2023 to 114 in 2024, a growth of
56.2%, signi?cantly enhancing the overall vocational skill
level of the workforce.
Continuous Vocational Quali?cation Certi?cation Training to Enhance Employee Skills
Number of Personnel by Quali?cation Level as ofthe end of the Reporting Period
Level 2 /Technician
Level 3 /Senior
Level 4 / In-termediate
Level 5 /Junior
New Employee Training
In addition, Huaming continues to promote the spirit of labor and craftsmanship, encouraging employees to participate in variousforms and ?elds of labor and skill competitions. By using competitions to drive training and learning, Huaming strengthens the ca-pacity building of the workforce and enhances employees' skills.
In February 2024, the Huaming High-Voltage Trade Union organized production line technical employees to study the"Advanced Deeds of Great Country Craftsman Shuqun Wang". The event began with an on-site explanation of how
Learning from the Advanced Deeds of "Great Country Craftsman Shuqun Wang"
Shanghai Employees' Vocational Skills Series Competition – Winner of the Excellence Award in the Fitter CompetitionTalent DevelopmentHuaming adheres to the talent philosophy of "attracting, utilizing, and retaining" to attract and retain the best industry talent.We have established a clear talent hierarchy system and implemented a dual-track career development path for managementand technical roles. Promotion mechanisms include training, evaluation, and competitive selection to help employees ?nd theirgrowth path and maximize their potential. An inclusive performance management framework is in place to motivate employees.If employees disagree with performance results, they can submit feedback through the union or appeal to the Labor SupervisionCommittee.Huaming also emphasizes vocational education. During the reporting period, we commissioned Shanghai Second PolytechnicUniversity to o?er pre-exam tutoring for employees pursuing higher education in CNC technology and mechanical engineering,helping them further strengthen their competitiveness.Through interviews with 13 workshops, 85 frontline employees, and 28 workshop managers covering 58 positions, Huaming suc-cessfully built a competency assessment model for frontline employees. Over 500 competency assessment reports were complet-ed, helping employees understand job requirements, identify strengths and weaknesses, and pinpoint areas for improvement. Thisenables them to better plan their career paths and set development goals.
Shuqun Wang overcame numerous technical challengesthrough his high level of focus and exceptional skills, al-lowing employees to fully understand the spirit of crafts-manship. Employees were divided into groups to discusshow to learn and practice the spirit of craftsmanship intheir current roles, proposing improvement plans for theirpositions. This initiative encouraged technical workersto strive for excellence, innovate, and pursue perfection,spreading the spirit of craftsmanship across all positions.
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilities
with Steady CommitmentStrengthening Governance toConsolidate the Foundation
” On-Load Tap-Changer Testing and Training
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
622024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Employee Career Path
Expanding Employee Bene?tsIn addition to providing statutory bene?ts such as social insurance, housing provident fund, and paid leave, Huaming also o?ersother bene?ts, including holiday care (e.g., Mid-Autumn Festival and Spring Festival), physical examinations, employee dormito-ries, and rental allowance.Huaming conducts training sessions on pension insurance policies, retirement policies, and talent settlement procedures andestablishes retirement procedures for eligible employees to ensure they receive timely retirement and medical insurance bene?ts.Additionally, we assist employees with collective household registration transfers to meet their evolving needs. During Internation-al Women's Day each year, we arrange physical examinations for female employees to show care for their well-being. In the hotsummer months, we provide cooling supplies and heatstroke prevention items to frontline employees. Monthly birthday celebra-tions are held, featuring interactive games, prize giveaways, delicious food, and blessings from senior leaders, all aimed at enhanc-ing employee cohesion.We promote a healthy work-life balance for our employees, actively organizing a diverse range of cultural and sports activities,including basketball tournaments, handicraft workshops, badminton competitions, and sta? gatherings. These activities not onlycreate avenues for employees to pursue their interests and hobbies but also enrich their leisure time, contributing to their overallphysical and mental well-being.
Huaming places great emphasis on employee bene?ts and has established regulations such as theImplementation Measures forEmployee Paid Annual Leaveand theEmployee Welfare Management Measuresto provide employees with diverse and thoughtfulbene?ts. For employees facing di?culties, Huaming has implemented multiple initiatives to help them overcome challenges, mak-ing them feel the warmth of a family-like workplace.
Welfare and Activities
Corporate Special Bene?ts
Holiday Care?●Birthday celebrations,birthday cards?●Holiday bene?tsLife Services
?●Employee dormitories?●Point-based householdregistration?●
Employee cafeteria
Learning & Growth
?●Onboarding professionaltraining?●Full reimbursement for ad-vanced education fees foroutstanding employees
?●
Subsidies for professionalquali?cation training?●Subsidies for professionaltitle advancement
Health Protection
?●Regular health check-ups?●Summer cooling supplies
Subsidies
?●Housing rental subsidies
MarketingSequence
ProductionSequenceManagementSequence
TechnicalSequenceGeneral ManagerDeputy General ManagerChief Engineer
Managerial LevelSupervisor LevelSection ChiefSection Chief
Technician
Team LeaderSpecialist
Senior Designer
Designer
Support Worker
Department
Manager
Department
Manager
Department
Manager
DepartmentManagerRegionalManager
WorkshopSupervisorSeniorSpecialist
ProfessionalLevelAssistantSpecialist
Executive Man-agement Level
Assistant Cus-tomer Manager
CustomerManager
AssistantDesigner
Support Sta?Level
Statutory Welfare
Paid leavesstatutory paid leave, statutory annual leave,marriage leave, maternity leave, bereave-ment leave, prenatal check-up leaves, pater-nity leave, nursing leaveFive social insurances and one housingprovident fundpension insurance, work-related injury insur-ance, unemployment insurance, maternityinsurance, medical insurance, housing provi-dent fund
Employee Birthday Celebration
Union Summer Cooling Supply Activity
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilitieswith Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing Social
Responsibility
642024 Environmental, Social and Governance (ESG) ReportStrengthening Governance toConsolidate the Foundation
Promoting Industry DevelopmentHuaming fully implements a forward-looking development philosophy, integrates superior resources, and actively establishesstrategic partnerships with renowned enterprises, universities, and research institutions. We engage in industry-academia-researchcollaboration and conduct in-depth industry exchanges to achieve complementary advantages in information and resources. Wealso participate in the formulation and revision of industry standards, incorporating the latest technological achievements andpractical experience into these standards to drive technological progress. During the reporting period, Huaming successfully joinedthe IEEE PES Transformer Technology Conference (China) Bushing and Tap Changer Technical Subcommittee, actively contributingsuggestions and ideas for industry development.
During the reporting period, Huaming deepened its collaboration with Jinan University. In the design phase of the TD0518equipment project, both parties leveraged their respective strengths to achieve complementary advantages. Jinan Universi-ty demonstrated signi?cant expertise in data analysis and theoretical validation, successfully completing the ?nite elementanalysis report on the static and dynamic properties of the gantry, providing robust data support for the gantry's structuralrigidity. Huaming contributed its strengths in project implementation and processing techniques. Through this collabora-tion, the TD0518 project became an industry benchmark, earning high recognition from customers. We also actively partici-pated in the formulation and revision of cutting-edge industry standards, integrating the latest technological achievementsand practical experience into these standards to promote technological advancement in the industry.
Collaborating with Jinan University on the TD0518 Project to Set an Industry Benchmark
Caring for Employees in Need
Huaming demonstrates care and supports employees facing di?culties by participat-ing in the city and district-level emergency assistance programs, allowing employeesto receive hospitalization subsidies. Employees with special di?culties can apply forassistance funds and supplies after approval. We also provide union membership ser-vice cards and purchase basic insurance for union members, offering critical illnesssubsidies and hospitalization coverage to address employees' real-life challenges. Dur-ing the New Year, Huaming's union organizes a "warmth-sending" initiative, delivering?nancial aid and blessings to employees in need. When an employee falls ill or loses adirect family member, Huaming and the union arrange visits and o?er support.During the reporting period, we diligently implemented the union's assistance policy,identifying and registering employees in need. A support archive was established in theunion's assistance management framework to ensure precise and e?ective help.
Total assistance funds foremployees in needRMB
106,500
During the reportingperiod
Visit Sick EmployeesVisit Hospitalized Employees
Strategic Partnerships Established During the Reporting Period
Standing Director Unit of the 9th Council, Transformer BranchLong-term Strategic Cooperation Agreement with TBEA Co.,
Ltd. Xinjiang Transformer Factory
Industry Standards Participation/Revision During theReporting Period
From September 17 to 19, 2024, we participated in the technical discussion and clause reviewof theImplementation Rules for Technical Compliance Assessment of Transformer Tap Chang-ers organized by the Equipment Department of State Grid Henan Electric Power Company
On April 12, 2024, we participated in the ?rst seminar for the power industry standard DL/T 265On-Site Testing Guidelines for Transformer On-Load Tap Changers
From November 28 to 30, 2024, we participated in the technical revision of GB/T 10230.2TapChangers—Part 2: Application Guidelinesorganized by the National Transformer Standardiza-tion Technical CommitteeOn April 11, 2024, we participated in the kick-o? meeting for the standardTechnical Require-ments and Test Methods for Tap Changers Used in UHV Transformers
Pioneering Green Developmentthrough Low-Carbon and Eco-
Friendly Practices
Ful?lling Safety Responsibilities
with Steady Commitment
Serving Customers with Digitaland Intelligent Development
Caring for Talent and
Embracing SocialResponsibility
662024 Environmental, Social and Governance (ESG) Report
Strengthening Governance toConsolidate the Foundation
Social Welfare
While pursuing its own economic benefits, Huaming has always kept its social re-sponsibilities in mind, actively engaging in rural revitalization and public welfareinitiatives to promote social development. We continue to contribute to buildinga harmonious and better society, achieving a win-win situation for both social andeconomic value. During the reporting period, we carried out assistance programs forMalu Village and remained committed to community development. We co-organ-ized a Spring Festival celebration with community residents, showed care for elderlymembers of the surrounding community, innovatively launched the "Warm Meal"public welfare initiative, and initiated the "Huaming with Love—Caring for the Elder-ly" project to support geriatric medical care, demonstrating deep concern for thehealth and well-being of the elderly population.
Investment in rural revital-ization-Malu Village target-ed assistanceRMB
42,000
During the reportingperiod
Industry Exchanges Participated in During the Reporting Period
On January 10, 2024, Huamingsuccessfully held a technical semi-nar on tap changers in Lahore, Pa-kistan, aiming to share and show-case the Company's expertise andtechnical capabilities in this field.At the seminar, Mr. Jiongjiong Lu,Deputy General Manager of Hua-ming, delivered a comprehensiveintroduction to the technical prin-ciples of tap changers, Huaming'shistory and current status, techni-cal strengths, and main products.The seminar received unanimouspraise from attendees.
In June 2024, Huaming successfullyhosted a promotional exchangemeeting on on-load tap changersfor the Transmission Company ofNigeria (TCN) in Abuja, Nigeria. Theevent aimed to deepen TCN's un-derstanding of the Company's tapchanger products and was highlyrecognized by participants.
Upon identifying that many elderly residents living alone,persons with disabilities, and low-income families inneighboring communities struggled to access hot meals,the Company launched the "Warm Heart Meal" initiative,inviting seniors to share lunch at its corporate cafeteria. Inthe initial phase, Huaming contacted multiple communitymanagement departments to widely promote the event.A volunteer team was formed to guide chefs in prepar-ing meals and catering to special dietary needs, such aslow-sugar meals for diabetic patients. After confirmingthe specific time for the "Warm Meal" event, nearby res-idents were noti?ed in advance to come to the cafeteria.Volunteers served hot meals to the elderly and engaged inconversations to learn about their daily lives. This initia-tive brought warmth and care to the elderly, earning wide-spread praise from the surrounding communities.
"Warm Meal" Public Welfare Initiative—Caring for Elderly Community Members
During the reporting period, the "Hua-ming Cares - Silver Hair Support"program kicked off at the century-oldmuseum of Ruijin Hospital, affiliatedwith the Shanghai Jiao Tong UniversitySchool of Medicine (hereinafter referredto as "Ruijin Hospital"). Initiated byHuaming, this project aims to demon-strate commitment to elderly care andcontribute to the ?eld of geriatric med-ical care. The fund will be specificallyused to support the construction anddevelopment of the geriatrics depart-ment at Ruijin Hospital, with the goalof improving medical environment andenhancing service quality, enablingmore elderly patients to access timelyand effective medical care. This initia-tive not only demonstrates Huaming'ssupport for medical causes but alsore?ects its profound concern for the el-derly population.
"Huaming Cares - Silver Hair Support" Program Warmly Launched
67682024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
Key Performance Table
Primary Indicator
SecondaryIndicator
Tertiary IndicatorUnit202220232024
Business Perfor-
mance
Financialhighlights
RevenueRMB million1,711.66 1,961.132,322.20Net pro?tRMB million363.85550.65619.78Tax amountRMB million219.02280.12262.02Total cash dividend(including tax)
RMB million501.88 734.90489.34
Board Structureand Governance
Disclosed reportsNumber1408892Board of Directors meetings Number765Supervisory Board meetings Number544Strategy Committee meetingsNumber312Audit Committee meetingsNumber454Nomination Committee meetingsNumber210Compensation and Evaluation Commit-tee meetings
Number221Board of Directors membersPerson(s)999Disclosure bygender
Male directorsPerson(s)888Female directorsPerson(s)111Disclosure bytype
Independent directorsPerson(s)333Non-independentdirectors
Person(s)666
Governance Performance
Environmental Performance
Primary IndicatorSecondary IndicatorUnit2024
Energy Consumption
DieselL152,444.29GasolineL109,411.41Purchased electricitykWh18,791,413
Primary IndicatorSecondary IndicatorUnit2024
Gas Pollutant Emissions
Total waste gas emissionsm?24,003,655Particulateskg421.43Total non-methane hydrocarbonskg543.53Nitrogen oxideskg0.353VOC emissionskg1,007.73
Water Resource UsageTotal water usageTon(s)83,964
Water Pollutant Emissions
Total wastewater dischargeTon(s)60,768Chemical oxygen demand (COD)kg31.58Biochemical oxygen demand/?ve-day (BOD5)kg7.34Suspended solidskg6.51Ammonia nitrogenkg2.92Total phosphoruskg5.07Total nitrogenkg13.95
Waste Emissions
Total recyclable wasteTon(s)133.10Total general solid wasteTon(s)1,030.62 Total general solid waste recycledTon(s)524.80Total hazardous wasteTon(s)175.40Total hazardous waste recycledTon(s)104.78
Packaging Materials
Total packaging material usageTon(s)480.37Packaging material usage: WoodTon(s)391.50Packaging material usage: PlasticTon(s)23Packaging material usage: PaperTon(s)65.4Packaging material usage: OtherTon(s)0.47Environmental Protection
Environmental protection investmentRMB '0003,658.5PV generation capacitykWh 108,050,775
69702024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
Social PerformancePrimary IndicatorSecondary IndicatorTertiary IndicatorUnit2024
Employment
Total number of employeesPerson(s)1,654By gender
MalePerson(s)1,357FemalePerson(s)297
By age
51 years old and abovePerson(s)41541 to 50 years oldPerson(s)55731 to 40 years oldPerson(s)50630 years old and belowPerson(s)176
By education background
Master and abovePerson(s)32BachelorPerson(s)283Junior collegePerson(s)354Junior college degree and belowPerson(s)985
By employee category
Total number of junior level Person(s)1,559Middle managementPerson(s)56Female employees in middle manage-ment
Person(s)7Total number of senior managementemployees
Person(s)39Female employees in senior manage-ment
Person(s)4
By employee professionalcomposition category
Production personnelPerson(s)945Sales personnelPerson(s)237Technical personnelPerson(s)212Financial personnelPerson(s)38Administrative personnelPerson(s)188Engineering personnelPerson(s)10Procurement personnelPerson(s)24
Primary IndicatorSecondary IndicatorTertiary IndicatorUnit2024Employee Turnover
Total departing employeesPerson(s)166Employee turnover rate%10.10
Employee Training
Total employees trainedPerson(s)1,090By gender
Male employees trainedPerson(s)1,072Female employees trainedPerson(s)202
By employee category
Junior sta? trainedPerson(s)1,092Middle management trainedPerson(s)85Senior management trainedPerson(s)29Total employee training hoursHour(s)27,505Average training hours per employeeHour(s)25By gender
Male employees training hoursHour(s)23,393Female employees training hoursHour(s)4,112
By employee category
Junior sta? training hoursHour(s)18,175Middle management training hoursHour(s)7,012Senior management training hoursHour(s)2,318
Occupational Healthand Safety Production
Occupational health andsafety
Workdays lost due to injuriesDay(s)298Employee deaths due to workPerson(s)0Employees in occupational hazard rolesPerson(s)331Employees undergoing occupationalhealth checkups
Person(s)331Employees diagnosed with occupation-al diseases
Person(s)0
71722024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
Primary IndicatorSecondary IndicatorTertiary IndicatorUnit2024
Occupational Healthand Safety Production
Safety incidents and per-sonnel
Occupational disease casesPerson(s)0Fatal work accidents (incidents)Case(s)0Fatal work accidents (fatalities)Person(s)0Fatality rate per million work hours%0
Technological Innova-
tion
R&DR&D investment
RMBmillion
81.36
Intellectual property rights
Number of patents Number227Number of copyrightsNumber3Trademarks and text registrationsNumber33Software copyrightsNumber26New patent applications annuallyNumber36New copyright applications annuallyNumber0
Supplier
Total suppliersNumber805By region
Suppliers in mainland ChinaNumber803Suppliers in HK/Macau/TW & overseasNumber2Suppliers conducting social impact assessmentsNumber12Suppliers conducting environmental impact assessmentsNumber165New suppliersNumber18Local suppliersNumber553Customer ServiceCustomer satisfaction%98
Social ResponsibilityCharitable donationRMB '0002,032.0
AppendixGRI Content Index
Statement of Use
Huaming has reported the information cited in this GRI Content Index for the periodJanuary 1, 2024 to December 31, 2024 with reference to the GRI Standards.GRI 1 UsedGRI 1: Foundation 2021GRI StandardsDisclosureChapter Reference
GRI 2 General Disclosures 2021Organization and Reporting Practices2-1Organizational detailsAbout Huaming2-2Entities included in the organization's sustainability reportingAbout This Report2-3Reporting period, frequency and contact pointAbout This ReportActivities and Workforce2-6Activities, value chain and other business relationshipsCorporate Governance2-7EmployeesEmployee ManagementGovernance2-9Governance structure and compositionCorporate Governance2-10Nomination and selection of the highest governance bodyCorporate Governance2-11Chair of the highest governance bodyCorporate Governance2-12
Role of the highest governance body in overseeing the management ofimpacts
Corporate Governance2-13Delegation of responsibility for managing impactsCorporate Governance2-14Role of the highest governance body in sustainability reportingCorporate Governance2-15Con?icts of interestCorporate Governance2-16Communication of critical concernsCorporate Governance2-17Collective knowledge of the highest governance bodyCorporate Governance2-18Evaluation of the performance of the highest governance bodyRefer to Annual Report2-19Remuneration policiesEmployee Management2-20Process to determine remunerationRefer to Annual Report2-21Annual total compensation ratioRefer to Annual Report
73742024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
GRI StandardsDisclosureChapter Reference
Strategy, Policy, and Practices2-22Statement on sustainable development strategyCorporate Governance2-26Mechanisms for seeking advice and raising concernsCorporate Governance2-27Compliance with laws and regulationsRisk Control and Compliance2-28Membership associations
Promoting Industry Develop-ment
Stakeholder Engagement2-29Approach to stakeholder engagementCorporate Governance
GRI 3 Material Topics 20213-1Process to determine material topicsCorporate Governance3-2List of material topicsCorporate Governance3-3Management of material topicsCorporate Governance
GRI 201 Economic Performance 2016201-1Direct economic value generated and distributed2024 Key Performance Table201-3De?ned bene?t plan obligations and other retirement plansEmployee ManagementGRI 202 Market Presence 2016202-1
Ratios of standard entry level wage by gender compared to local mini-mum wage
Employee Management202-2Proportion of senior management hired from the local communityEmployee Management
GRI 203 Indirect Economic Impacts 2016203-1Infrastructure investments and services supportedSocial Welfare203-2Signi?cant indirect economic impactsSocial Welfare
GRI 204 Procurement Practices 2016
204-1 Proportion of spending on local suppliersSupply Chain Management
GRI 205 Anti-corruption 2016
205-1Operations assessed for risks related to corruptionBusiness Ethics205-2
Communication and training about anti-corruption policies and proce-dures
Business Ethics205-3Con?rmed incidents of corruption and actions takenBusiness EthicsGRI 207 Tax 2019207-1Approach to taxRefer to Annual Report207-2Tax governance, control, and risk managementRefer to Annual Report207-3Stakeholder engagement and management of concerns related to taxRefer to Annual Report207-4Country-by-country reportingRefer to Annual Report
GRI StandardsDisclosureChapter Reference
GRI 302 Energy 2016302-1Energy consumption within the organizationKey Performance Table302-2Energy consumption outside of the organizationKey Performance Table302-3Energy intensityKey Performance Table302-4Reduction of energy consumptionKey Performance Table302-5Reductions in energy requirements of products and servicesKey Performance TableGRI 303 Water and E?uents 2018303-1Interactions with water as a shared resourceResource and Energy Management303-2Management of water discharge-related impactsResource and Energy Management303-3Water withdrawalKey Performance Table303-4Water dischargeKey Performance Table303-5Water consumptionKey Performance TableGRI 306 Waste 2020306-1Waste generation and signi?cant waste-related impactsEmissions and Waste Management306-2Management of signi?cant waste-related impactsEmissions and Waste Management306-3Waste generatedEmissions and Waste Management306-4Waste diverted from disposalEmissions and Waste Management306-5Waste directed to disposalEmissions and Waste ManagementGRI 308 Supplier Environmental Assessment 2016308-1
New suppliers that were screened using environmental crite-ria
Supply Chain Management308-2
Negative environmental impacts in the supply chain andactions taken
Supply Chain ManagementGRI 401 Employment 2016401-1New employee hires and employee turnoverEmployee Management401-2
Bene?ts provided to full-time employees that are not provid-ed to temporary or part-time employees
Employee Management401-3Parental leaveEmployee ManagementGRI 403 Occupational Health and Safety 2018403-1Occupational health and safety management systemSafe Production and Occupational Health403-2
Hazard identi?cation, risk assessment, and incident investiga-tion
Safe Production and Occupational Health403-3Occupational health servicesSafe Production and Occupational Health403-4
Worker participation, consultation, and communication onoccupational health and safety
Safe Production and Occupational Health403-5Worker training on occupational health and safetySafe Production and Occupational Health403-6Promotion of worker healthSafe Production and Occupational Health403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationships
Safe Production and Occupational Health403-8
Workers covered by an occupational health and safety man-agement system
Safe Production and Occupational Health
75762024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
GRI StandardsDisclosureChapter Reference
403-9Work-related injuriesSafe Production and Occupational Health403-10Work-related ill healthSafe Production and Occupational Health
GRI 404 Training and Education 2016404-1Average hours of training per year per employeeEmployee Management404-2
Programs for upgrading employee skills and transition assis-tance programs
Employee Management404-3
Percentage of employees receiving regular performance andcareer development reviews
Employee ManagementGRI 405 Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesEmployee Management405-2Ratio of basic salary and remuneration of women to menEmployee ManagementGRI 413 Local Communities 2016413-1
Operations with local community engagement, impact as-sessments, and development programs
Social WelfareGRI 414 Supplier Social Assessment 2016
414-1New suppliers that were screened using social criteriaSupply Chain Management414-2Negative social impacts in the supply chain and actions takenSupply Chain Management
GRI 416 Customer Health and Safety 2016
416-1
Assessment of the health and safety impacts of product andservice categories
Customer Service
GRI 417 Marketing and Labeling 2016417-1
Requirements for product and service information and labe-ling
Customer Service417-2
Incidents of non-compliance concerning product and serviceinformation and labeling
Customer Service417-3
Incidents of non-compliance concerning marketing commu-nications
Customer ServiceIndices of Guidelines Topics in Self-Regulatory Guidelines No. 17 for Companies Listed onShenzhen Stock Exchange—Sustainability Report (For Trial Implementation)DimensionNo.TopicClauseChapter Reference
Environment
1Climate responseArticles 21-28Not Involved2Pollutant dischargeArticle 30Emissions and Waste3Waste disposalArticle 31Emissions and Waste4Ecosystem and biodiversity protectionArticle 32Not Involved5Environmental compliance managementArticle 33
Environmental Manage-ment
AbbreviationsInterpretation ItemRefers toInterpretation ContentCompanyRefers toHuaming Power Equipment Co., Ltd.Shanghai Huaming, HuamingManufacturing
Refers toShanghai Huaming Electric Power Equipment Manufacturing Co., Ltd.Huaming GroupRefers toShanghai Huaming Electric Power Equipment Group Co., Ltd.Shanghai ChentingRefers toShanghai Chenting Technology Development Co., Ltd.Changzheng ElectricRefers toGuizhou Changzheng Electric Co., Ltd.Shandong FINRefers toShandong FIN CNC Machine Co., Ltd.Huaming High-VoltageRefers toShanghai Huaming High-Voltage Electric Switch Manufacturing Co., Ltd.
DimensionNo.TopicClauseChapter Reference
Environment
6Energy utilizationArticle 35
Resource and Energy Man-agement7Water resources utilizationArticle 36
Resource and Energy Man-agement8Circular economyArticle 37Not Involved
Community
9Rural revitalizationArticle 39Social Welfare10Social contributionsArticle 40Social Welfare11InnovationArticle 42R&D Innovation12Ethics of science and technologyArticle 43Not Involved13Supply chain securityArticle 45
Supply Chain Manage-ment14Equal treatment of SMEsArticle 46Business Ethics15Product and service safety and qualityArticle 47
Customer ServiceSafe Production16Data security and customer privacyArticle 48Data Security17EmployeesArticle 50Employee ManagementSustainability-relatedgovernance
18Due diligenceArticle 52Not Involved19Stakeholder engagementArticle 53Corporate Governance
Anti-commercial bribery and anti-corrup-tion
Article 55Business Ethics21Fair competitionArticle 56Business Ethics
77782024 Environmental, Social and Governance (ESG) ReportHuaming Power Equipment Co., Ltd
Feedback and SuggestionsDear Reader,Thank you very much for taking the time and attention to read the Huaming 2024 ESG Report. To provideyou and other stakeholders with more valuable information and to effectively enhance the Company'sability and standards in ful?lling corporate social responsibilities, we sincerely welcome your opinions andsuggestions.Multiple-choice questions (Please check in the appropriate box)
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2.How does the report respond to and disclose the concerns of stakeholders?
3.How do you think Huaming is performing in terms of economic responsibility?
4.How do you think Huaming is performing in terms of environmental responsibility?
5.How do you think Huaming is performing in terms of safety management?
6.How do you think Huaming is performing in terms of employee responsibility?
7.How do you think Huaming is performing in terms of community responsibility?
8.How clear, accurate, and comprehensive are the information, indicators, and data disclosed in this report?
9.Do you ?nd the content arrangement and formatting of this report convenient for reading?
10.Open-ended questions
Please feel free to share any opinions or suggestions you may have regarding Huaming's ful?llment of socialresponsibility and this report.
Huaming Power Equipment Co., Ltd.Address: No. 977 Tongpu Road, Putuo District,ShanghaiPhone: 021-52708824Email: dsh@huaming.com