CONTENTS
About the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
About Us
Sustainable Development Governance FrameworkMateriality AssessmentStakeholder Communication
Sustainable DevelopmentManagement
Penglai Facility Practices SBTi Targets and Leadsthe Way to Low-Carbon TransitionGreen Steel Strategy, A New Chapter ofSustainable Manufacturing
Special Topic
Responding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance Data
Environmental
Quality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key Performance
Social
Responsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key Performance
Governance
Indicator Index
About the Report
This Report is the second sustainability report (“the Report”) published by Dajin Heavy Industry Co., Ltd. (hereinafter “Dajin Heavy Industry”, “Dajin”, “the Company”or “We”). The Report is intended to disclose the Company’s achievements on sustainable development and management performance in Environmental, Social,and Governance (hereinafter “ESG”) objectively and transparently, helping stakeholders to better understand our business.
The information and data contained in the Report covers the period from 1 January 2024 to 31 December2024 (hereinafter “2024” or “this year”). To ensure the comparability and completeness of the Report, theperiod has been extended forward and backward as appropriate.Reporting Period
The Report covers Dajin Heavy Industry and its subordinate production facilities and wind farms. Thefinancial data disclosed herein comes from the annual report of the Company while other data comes frominternal statistics. The standards applied for the calculations that are involved in this regard have beenindicated in the Report. Unless otherwise stated, the currency in the Report is denominated in RMB.Reporting Scope
This report follows the relevant requirements of the Shenzhen Stock Exchange’s Self-Regulatory GuidelinesNo. 1 for Listed Companies – Standardized Operation of Main Board Listed Companies and Self-RegulatoryGuidelines No.17 for Listed Companies – Sustainability Report (For Trial Implementation). It also refers to theGlobal Reporting Initiative Standards (GRI), the Task Force on Climate-related Financial Disclosures (TCFD),and the United Nations Sustainable Development Goals (UNSDGs).
Basis of Preparation
Terms and DenitionsAbbreviationFull namePenglai FacilityPenglai Dajin Offshore Heavy Industry Co., Ltd.
Fuxin FacilityDajin Heavy Industry Co., Ltd.Zhangjiakou FacilityZhangjiakou Dajin Wind Power Equipment Co., Ltd.Yangjiang FacilityYangjiang Dajin Wind Power Offshore Engineering Technology Co., Ltd.Xing An’meng FacilityXing’anmeng Dajin Heavy Industry Co., Ltd.Panjin FacilityPanjin Dajin Offshore Engineering Co., Ltd.Contact Information
E-mail: djsustainability@dajin.cnTel: +86(10)57837709Address: East Tower, China Overseas Property Plaza, Courtyard 8, West Binhe Road, Yongdingmen,Dongcheng District, Beijing, China
Sustainable Development
Management
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
About the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Letter from the Chairman
The year 2024 marked a period of continuous business optimization and significant achievements in global market expansion for Dajin HeavyIndustry. Guided by innovation and a commitment to green development, we remain dedicated to delivering high-quality offshore and onshorewind power equipment and services to our global clients. As the global energy transition accelerates—particularly with Europe’s increasing focuson low-carbon solutions and green steel—we have proactively adapted, strategically positioned ourselves, strengthened our green supply chain,and promoted the application of green steel. These efforts have enabled us to meet the increasingly stringent carbon emission requirements ofour clients while earning widespread recognition.In the wind power equipment manufacturing sector, our offshore business has continued to expand, while our onshore operations have beenadjusted in an orderly manner. The revenue contribution from both domestic and international offshore segments continued to grow, withoverseas offshore projects emerging as a key driver of our sustained profitability. Although 2024 and 2025 present challenges for the windpower industry, including policy adjustments, supply chain fluctuations, and extreme weather conditions, we have maintained our marketcompetitiveness through a stable operational business strategy and unwavering confidence in the industry. Despite the complexities of theexternal environment, we have achieved steady business growth.We remain committed to our environmental responsibilities and continue to address the challenges and opportunities posed by climate change.In our decarbonization efforts, we are actively advancing the low-carbon transition of both our company and our supply chain. Through optimizingproduction processes and improving energy efficiency, we strive to reduce carbon emissions at every stage. Meanwhile, we have partnered with leadinginternational providers of floating foundation solution providers to develop the next-generation floating foundation products, positioning ourselves fordeep-sea offshore wind opportunities and laying a solid foundation for the sustainable development of global offshore wind industry.At the same time, we uphold a people-oriented approach, fostering diversity and attracting top global talent. In 2024, we welcomed internationalcolleagues from Spain, France, South Korea, India, and other countries, further enriching our international team and enhancing our global perspectiveand cross-cultural collaboration capabilities. We are committed to creating a positive work environment, offering ample opportunities for career growth,and continuously investing in training and skill development to foster a sense of belonging and drive continuous personal and professional advancement.In corporate governance, we continue to optimize our internal structures, strengthen risk management and internal controls, and enhance compliancereviews in areas such as anti-bribery, trade compliance, and environmental regulations. We have gradually improved our compliance managementframework to ensure that the Company operates in a lawful, transparent, and efficient manner, with all business activities adhering to domestic andinternational legal requirements, thereby promoting stable growth in the global market. We also maintain close collaboration with our global supplychain partners, working together to navigate market challenges, drive industry-wide synergy, and achieve mutually beneficial growth.Reflecting on 2024, we have encountered uncertainties and challenges in the wind power industry, but we have also grown and achievedsignificant milestones. Looking ahead, we remain steadfast in our commitment to ESG principles, integrating them deeply into our corporatestrategy and daily operations. We will continue to enhance our sustainability capabilities and core competitiveness. contributing even more to theglobal energy transition and sustainable development goals.
To our Stakeholders,
Chairman of Dajin Heavy IndustryJin Xin
The year 2024 marked a period ofcontinuous business optimizationand significant achievements in globalmarket expansion for Dajin HeavyIndustry. Guided by innovation and acommitment to green development,we remain dedicated to deliveringhigh-quality offshore and onshorewind power equipment and servicesto our global clients.
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsAbout the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
About Us
Dajin Heavy Industry Co., Ltd. was founded in 2000 in Fuxin, Liaoning Province, China, and was listed onthe Main Board of the Shenzhen Stock Exchange in 2010 (Stock Code: 002487), becoming the first publiclylisted company in China’s wind power tower industry. After more than 20 years of dedicated development,the Company has firmly established itself as a leading global manufacturer of offshore wind powerequipment, delivering high-quality, low-carbon emission, and reliable infrastructure to support the growthof renewable energy worldwide.As an industry pioneer, Dajin Heavy Industry has been deeply engaged in wind power equipmentmanufacturing, specializing in providing a full range of wind towers and foundations for both onshore andoffshore wind energy. Our product portfolio includes wind turbine towers, transition pieces, foundationsections, monopiles, deep-sea jackets, floating foundations, and offshore substations. We continuously drivetechnological innovation and industrial upgrades, achieving groundbreaking milestones in multiple areas. TheCompany became the first in China to export offshore wind towers (14.7MW) to Europe, the first in Asia toexport extra-large monopiles (14.7MW) to Europe, and the only top-tier wind power equipment manufacturerin the Asia-Pacific region capable of large-scale exports of offshore wind power products to the Europeanmarket. By the end of 2024, our delivered products have supported a total global wind power installed capacityof 10 GW, contributing to the low-carbon transition of the global energy landscape.Leveraging advanced manufacturing technology, stringent quality control, and highly efficient deliverycapabilities, Dajin Heavy Industry has successfully completed high-profile offshore projects in theUK, Germany, France, Denmark, and other European markets, earning widespread recognition frominternational clients. Meanwhile, we are actively expanding into emerging markets such as Japan andSouth Korea, collaborating with local partners to jointly advance offshore wind power and marineengineering development. Through continuous technological innovation and premium services, we aresteadily building a global business presence.Guided by our sustainability strategy, we are accelerating investment in renewable energydevelopment, advancing deep-sea floating foundation technology, and enhancing our global logisticsnetwork, including specialized large-scale offshore transport vessels. This deep industrial chainintegration is becoming a new growth drivers for the Company’s long-term and stable development.Looking ahead, Dajin Heavy Industry will continue to uphold the principles of innovation-driven andgreen development, supporting the sustainable evolution of the global clean energy industry andcontributing to the shared goal of carbon neutrality.
Company Prole
The Company became the rst in China to exportoshore wind towers (14.7MW) to EuropeThe Company became the rst in Asia to exportextra-large monopiles (14.7MW) to Europe
Sustainable Development
Management
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsAbout the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Adhering to the vision of “Sailing Towards a Sustainable andGreener Future” and remaining committed to the mission of “FromDajin to the World, From Good to Great”, Dajin Heavy Industryis dedicated to providing clients with high-quality, low-carbonemission and sustainable products, as well as integrated solutionsfor industry-related services and operations. We are committednot only to being a manufacturer of wind power infrastructure butalso to playing a pivotal role in driving the global energy transition.The Company firmly implements its “Dual-Sea Strategy” (offshorewind power and overseas markets), deepening its global footprintby leveraging cutting-edge technology, high efficient production,
Business Ecosystem
and an optimized supply chain to promote the high-qualitydevelopment of the offshore wind power industry. Despitemarket fluctuations, policy adjustments, and environmentalchallenges in the global wind power sector, Dajin Heavy Industryremains strategically focused. With world-class productioncapacity, a flexible and efficient logistics network, and strong costcompetitiveness, we continue to enhance our industry influenceand collaborate with our global partners to drive the sustainabletransformation of clean energy.Looking ahead, the Company will further strengthen its globalcapabilities, advancing green manufacturing and a low-carbonemission supply chain transformation with an internationalperspective. We are actively responding to the European market’sincreasing demands for green steel, carbon reduction, andsustainable development, providing more reliable, innovative,and environmentally friendly solutions for the global windpower industry. Through these efforts, we are building a “DajinEcosystem” that truly belongs to the era of globalization.
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
| About the Report | Letter from the Chairman |
About Us
Dajin Heavy Industry adheres to a globalization development strategy, continuously deepening itspresence in the offshore wind and renewable energy industry chain, supporting the global green andlow-carbon emission transformation through high-quality manufacturing and services.Currently, the Company has established over 40 subsidiaries and affiliated enterprises in European countriessuch as Germany and Poland, as well as in several provinces (regions) in China, including Liaoning, InnerMongolia, Hebei, Shandong, and Guangdong. With a client base and sales network spanning more than30 countries and regions, we have built a reputation for exceptional product quality, a robust supply chain,and a strong commitment to sustainability. Collaborating closely with global wind power developers, energyenterprises, and industry partners, we are dedicated to jointly promoting the transformation and upgrading ofthe global energy structure toward a low-carbon emission and sustainable future.
Business SegmentsGlobal Business Layout
Company Facility Distribution
Wind Power Equipment Manufacturing
Dajin Heavy Industry specializes in wind power equipment manufacturing, offering key structural componentsfor both onshore and offshore wind power projects, including towers, monopiles, transition pieces, jackets,and floating foundations. To continuously optimize our production capacity, we have established seven majormanufacturing facilities across China (including one under construction), along with three specialized ports (withone under construction). With an annual production capacity exceeding 2 million tons, we provide high-qualityinfrastructure support for wind power projects worldwide.
Renewable Energy DevelopmentDajin Heavy Industry is actively expanding its renewable energy investment and development business,deepening its presence across the renewable energy value chain. As of the end of 2024, we have ownedand operate a 250 MW grid-connected wind power projects (commissioned in March 2023, with 63 installedturbines). This project has generated a cumulative 1.102 billion kWh of green electricity, equivalent to reducing591,300 tons of CO
emissions. Additionally, we are advancing the construction of a 250 MW photovoltaic project,which is expected to be commissioned by April 2025. Furthermore, we have secured project approvals andgrid connection clearance for 950 MW of wind power capacity, with plans to complete construction and gridconnection within the next two years, contributing more green energy to global clean energy development.
Global Logistics System & Self-operated International Shipping FleetTo accelerate global expansion and enhance supply chain resilience and logistics efficiency, Dajin Heavy Industryis actively developing a specialized global offshore transportation system for offshore projects. We have alreadyinitiated Phase 1 of our construction plan, which includes 2–4 deck carriers, with the first two vessels scheduledto be delivered in 2025. Looking ahead, we plan to establish a fleet of 10–20 ultra-large deck transport vessels ofvarying tonnage. This high-efficiency,low-carbon logistics system will support the global delivery of offshore windand marine equipment, further strengthening our supply chain competitiveness in the global markets.
Business Segments and Facility DistributionFacilities/Projects
Oshore Wind PowerEquipment Manufacturing
Penglai Offshore Facility and PortsYangjiang Offshore FacilityTangshan Offshore Facility & Ports (in progress)
Onshore Wind PowerEquipment Manufacturing
Liaoning Fuxin Production FacilityHebei Zhangjiakou Production FacilityInner Mongolia Xing’anmeng Production FacilityRenewable EnergyDevelopment
Fuxin Zhangwu Xiliujiazi Power New Energy Co., Ltd.Tangshan Shilihai 250MW Aquaculture-PV Complementary
Project (in progress)Tangshan Caofeidian 700MW Onshore Wind Power Project
(Approved)Tangshan Fengnan 250MW Wind Power ProjectSelf-operated InternationalShipping Fleet Segment
Panjin Offshore Facility
With a client base and sales network spanningmore thancountries and regions
the Company has established oversubsidiaries and affiliated enterprises in Europeancountries such as Germany and Poland
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
About the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Key Performance in Sustainability
Sustainable Development Progress
Initiated the strategic transformationfrom traditional energy equipmentmanufacturing to clean energyequipment manufacturing.Successfully delivered the firstonshore wind tower project.
Officially embarked on internationaldevelopment by passing supplier qualificationaudits from global industry leaders such asEnvision Energy, Vestas, and GE, becoming acertified Vestas MK10 supplier.Established a subsidiary in Hamburg, Germany,marking the beginning of the Company’s globalexpansion journey.
Completed a comprehensive upgrade of the Penglai Offshore Facility, transformingit into the world’s largest monopile export facility for offshore wind.Successfully produced and delivered the world’s largest offshore wind monopile:
maximum diameter of 10 meters, maximum unit weight of 2,014 tons, andmaximum plate thickness of 115mm.Officially commenced production at the Yangjiang Offshore Facility, coveringoffshore towers, onshore towers, and jacket foundations, serving markets inGuangdong, Guangxi, Fujian, Zhejiang, Southeast Asia, South America, and Europe.Established the shipping division and built specialized transport vessels at thePanjin Offshore Facility, creating a professional fleet and pioneering the “verticalloading” solution to build a global logistics system.Actively developing next-generation floating foundation products for offshorewind, positioning for a third growth curve.
Successfully delivered the firstdomestic offshore wind towerproject, and successfully deliveredthe first domestic monopile project.
Passed the qualified supplier auditof ?rsted, the world’s largest windenergy developer.Successfully delivered the firstoffshore tower export project,strengthening our global presence.Commenced operations at theZhangjiakou and Xing'anmengonshore wind power manufacturingfacilities, significantly enhancingdomestic production capacity.
Released the first bilingual (Chinese-English) Dajin Sustainability Report,advancing transparency in ESG initiatives.Signed an MOU (Memorandum of Understanding) with a global leader in floatingoffshore wind to jointly build a global supply chain for floating offshore wind projects.Accelerated the construction of the Tangshan Dajin offshore Facility, strategicallypositioning for the next decade's offshore wind market in developed countries,covering a full range of offshore wind power equipment.Awarded the EcoVadis Bronze Medal for sustainability performance, recognizingour commitment to responsible business practices.Achieved a CDP rating of C, reflecting our efforts in environmental disclosureand climate action.Formally applied to join the Science Based Targets initiative (SBTi), aligning ourclimate goals with global standards.Established a Green Steel Task Force and signed green steel strategiccooperation agreements with major domestic steel manufacturers.
2006201520232016-20192020-20212024
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
| About the Report | Letter from the Chairman | About Us | ||||
Key Performance in Sustainability
2024 Sustainability Core Initiatives and Key Performance
Environmental
Sections and TopicsKey Sustainable Development InitiativesKey Performance and Objectives
United Nations Sustainable
Development Goals
Reducing
CarbonEmissions
Continuously identify, analyze, and assess climate change relatedrisks and opportunities in accordance with TCFD (Task Force onClimate-Related Financial Disclosures) recommendations andimplement corresponding mitigation measures.Further updated the “dual-carbon” targets and decarbonizationroadmap at the Dajin Heavy Industry Penglai Facility, building on thefact that it has already achieved peak carbon emissions in operations.Promote green procurement and enhance the efficiency ofresource utilization across all stages of the supply chain.Practice the concept of green logistics by strengtheningthe warehouse management capability and improving theefficiency of logistics.Continuously accelerate the construction of wind farms andphotovoltaic power plants to reduce the Company’s own carbonemissions while contributing to the society's transition towardlow-carbon development.
The Penglai Facility aims to reduce Scope 1 and Scope 2 carbon emissionsby 42% from the benchmark year by 2030, decrease Scope 3 emissionsby 25%, and cut emission intensity in steel procurement by half. By2040, it will achieve carbon neutrality for Scope 1 and 2, completingthe decarbonization of its own operations. By 2050, it targets net-zeroemissions across the entire value chain, with a significant reduction of 95%in emissions intensity from steel and flange procurement.The Company holds a total of 250MW of grid-connected wind powerprojects, with 63 installed turbines, generating a cumulative 1.102billion kWh of green electricity, equivalent to reducing 591,300 tonsof carbon dioxide emissions.In 2024, the Penglai Facility used a total of 11,181,000.00 kWh of greenelectricity, accounting for 32% of its total electricity consumption. Thefacility plans to increase this proportion to 60% by 2025, achieve 96.5%green electricity usage by 2030, and reach 100% by 2036.CDP C level in Climate.
C
EnergyManagement
Incorporate consumption information for all energy consumptioncategories into the Company management system.Developing regulations on energy-saving and consumptionreduction tailored to the company’s business characteristics, DajinHeavy Industry has implemented refined energy managementpractices to enhance energy efficiency across operations.Process Innovationand Energy SavingTechnology Application
Dajin continuously optimizes process technologies across keyproduction stages—including beveling, welding, and painting—to reduce raw material usage and energy consumption. Theseefforts contribute to lowering both material inputs and carbonemissions associated with the manufacturing process.
By optimizing bevel angels, Zhangjiakou Facility achieved a reductionof 11.06% in wire consumption, equivalent to around 140kg, and a
11.07% reduction in flux consumption, approximately 150kg.
The introduction of Regenerative Thermal Oxidation (RTO)technology converts VOCs in exhaust gases into carbondioxide and water through high-temperature oxidation, andthe purification efficiency of some part of the heating processreaches as high as 95% to 99%.BiodiversityConservation
100% compliance with external vessels ballast water, wastewaterand waste treatment.Released the Biodiversity Statement, committing to proactiverisk prevention and control, strict in-process management, andregular publicity on biodiversity conservation.For the management of foreign vessels, signing agreementswith professional third-party organizations for the treatment ofoily sewage and garbage from ships to ensure that waste can bedisposed of in a timely, safe and standardized manner.For new facility projects, scientific planning and strict constructionmanagement will minimize the negative impacts of projectoperation on the ecological environment.
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsAbout the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Sections and TopicsKey Sustainable Development InitiativesKey Performance and Objectives
United Nations SustainableDevelopment Goals
Environmental
Formulated a series of standard documents, clarify therequirements for waste recycling, storage and disposal, andentrusted qualified third parties to carry out the recycling andtreatment process, ensuring that all kinds of waste are disposedof in full compliance with applicable regulations.WasteManagement
Secondary cutting and processing of reusable scrap generatedduring the cutting of steel plates in the production process.Processing and utilization of backlog inventory to avoid waste ofresources and additional costs.CircularEconomy
Utilization of 1,145.52 tons of steel offcuts and 0.3 tons of wastematerials (e.g., wooden pallets, packaging, etc.).Penglai Facility set up a production recycling rate of no less than90% by 2030 and committed to full circularity by 2040.
Water consumption is reduced through the use of recycled watersystems, water-saving fixtures, and water-efficient processes.Domestic wastewater is treated and reused through the installationof advanced wastewater treatment systems, promoting circularwater usage.
CDP C level in Water Security.
C
WaterResources
Sustainable Development
Management
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
About the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Sections and TopicsKey Sustainable Development InitiativesKey Performance and Objectives
United Nations Sustainable
Development Goals
Social
Product andService Quality
Set quality management objectives, real-time monitoring,statistics and analysis of the completion of the objectives, forindividual non-compliance with the development of relevantcorrective measures to ensure the effective realization of theCompany’s quality management objectives.
Penglai Facility revised 67 documents and issued 45 newdocuments throughout the year, further refining the details ofquality control.Full coverage of ISO 9001 quality system certification forproduction bases that have been in long-term operation.
0 incidents of illegal employment, such as child labor and forcedlabor, and 0 incidents of discrimination, humiliation, corporalpunishment, and other violations of rights and interests andunfairness identified throughout the year.Female senior management member reached 20%.
Health and Safety
Establish a strong correlation mechanism between safetytargets and the management KPIs, and incorporate the accidentrate, hidden danger rectification rate and other indicators intothe performance evaluation of all employees.Organize safety training for all employees and promote aninternally driven safety culture.Implementing full-cycle health and safety management foroutsourced personnel, ensuring "same work, same standardand same training" to comprehensively safeguard the healthand safety of outsourced personnel.Conducting systematic inspections of various productionprocesses that may pose potential safety hazards.
The Company's NOY monopile / Thor monopile / NSC monopile/ WAK monopile / SGRE offshore tower / GE offshore towerprojects have accumulated about 3 million safe man-hours.Penglai Facility organized 260 safety inspections throughout theyear, identifying 21,850 potential safety hazards and rectifyingthe corrective actions.100% of outsourced employees signed HSE contracts before theproject started.Established a Labor and Human Rights Management Systembased on theInternational Labor Organization (ILO) CoreConventionsand theUnited Nations Guiding Principles onBusinessandHuman Rights, which explicitly prohibits childlabor, forced labor, and any form of discriminatory treatment.Included provisions to guarantee the right of employees tofreedom of association and collective bargaining in theSocialResponsibility Management System.Employee Rights
and Benefits
Building a Diverse, Equitable and Inclusive (DEI) workplace, wherediscrimination on the basis of race, religion, disability, gender andage is strictly prohibited.We promote diversity within our board of directors and managementteam, aligning with the United Nations' commitments to gender equality.
Diversity
Establish a fair and transparent compensation governanceframework, adhering to the principle of equal pay for equal work.
Compensation
and Benefits
Over 20,000 cumulative training hours for the year.Establish a high-potential talent pool across different businessesand backgroundsImplementation of differentiated training programs.Employee
Development
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
About the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Sections and TopicsKey Sustainable Development InitiativesKey Performance and Objectives
United Nations SustainableDevelopment Goals
Sections and TopicsKey Sustainable Development InitiativesKey Performance and Objectives
United Nations Sustainable
Development Goals
SocialGovernance
Sustainable Supply
Chains
Green Supply Chain Management Approachsent to theassociated 19 suppliers.100% of suppliers with potential conflict minerals risk signed theConflict-Free Minerals Commitment.
Formulated theSupplier Social Responsibility Guidelines,establishing diverse audit standards covering labor rights,safety, and environmental protection, ensuring compliancethrough “document pre-review + on-site inspections”.Require suppliers to sign theConflict-Free MineralsCommitment, adhering to theOECD Supply Chain Due DiligenceGuidance.The Company has upgraded the “Management Measures forSupplier Development and Admission” to gradually improvethe content of supply chain due diligence and build an accesssystem that covers ESG risk assessments throughout the entirelifecycle.
ESG Governance
Held 5 meetings of the Board of Directors and 9 meetings ofspecialized committees throughout the year, and revised 28corporate policies.Obtained EcoVadis Bronze Medal.On the basis of retaining the original Sustainable DevelopmentCenter, four specialized committees have been established,namely, the Green Steel Special Committee, the CarbonEmission Reduction Special Committee, the SustainableDevelopment Risk Assessment Special Committee and theSustainable Procurement Special Committee.
Business Ethics andCompliance
100% signing rate ofSupplier Integrity Agreementamong Tier 1suppliers and 75% among all suppliers.Proportion of employees participating in training related tobusiness integrity is 100%.Organized visits to warning education bases for executives andpersonnel in sensitive positions to strengthen the awareness ofred line.Introduced a series of systems, such as the “Regulationson Integrity of Management Personnel and Personnelin Economically Sensitive Positions” and whistle blowerprotection, to build a business ethics management system thatcovers the entire process before, during and after the event.
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
About the ReportLetter from the ChairmanAbout UsKey Performance in Sustainability
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
SDGs
Sustainable DevelopmentManagementSustainable development management serves as a fundamental pillar of Dajin HeavyIndustry’s long-term and stable operations. We remain committed to responsiblegovernance, actively fostering a corporate culture of sustainability, and deeply integratinggreen, low-carbon emission, and sustainable principles into our operational framework.The Company continuously improves its responsibility management system, strengtheningthe governance framework, enhancing risk control, and optimizing managementmechanisms to provide robust support for sustainable development. At the same time, wemaintain transparent and in-depth communication with stakeholders, working togetherto build a collaborative, co-created, and shared sustainable development ecosystem thatcontributes to the global transition toward clean energy.
Sustainable DevelopmentGovernance FrameworkMateriality AssessmentStakeholder Communication
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
To fully implement the sustainable development strategy and enhancemanagement effectiveness and competitiveness, Dajin Heavy Industryofficially established the Strategy and Sustainability Committee in 2024.Building upon the original Sustainable Development Center, this initiativefurther refines the Company’s governance structure, creating a top-downsustainability management system. Under the Strategy and SustainabilityCommittee, four specialized subcommittees have been established: theGreen Steel Special Committee, the Carbon Reduction Special Committee,the Sustainability Risk Assessment Special Committee, and the SustainableProcurement Special Committee. Each special committee is responsible forspecific functions, supporting the Company’s high-quality development inthe green and low-carbon emission transition.The Green Steel Special Committee is dedicated to driving theCompany’s green steel business, focusing on enhancing carboncompetitiveness, and supporting domestic and international clientsin building low-carbon supply chains. By integrating internal andexternal resources, it accelerates the development and industrialapplication of low-carbon emission steel, ensuring the Companymaintains a proactive position in the green transition. The CarbonReduction Special Committee focuses on advancing the Company’scarbon reduction targets by formulating scientific emission reductionpathways and applying innovative technologies. It strengthens carbonmanagement capabilities to ensure steady progress in green andlow-carbon emission development. The Sustainable DevelopmentRisk Assessment Special Committee is tasked with establishinga risk identification and early-warning mechanism. It conductscomprehensive evaluations of potential risks related to sustainabilityissues and proposes scientific and effective risk mitigation strategiesto ensure the Company’s stable operations and long-term sustainabledevelopment. The Sustainable Procurement Special Committee focuseson green supply chain management, driving the transformation andinnovation of the supply chain towards sustainability. By formulatingand implementing sustainable procurement policies, it enhances supplychain transparency and low-carbon emissions, ensuring that upstreamand downstream partners work together to achieve green goals.The Sustainable Development Center, as a permanent executivebody, is responsible for coordinating policy research, providing datasupport, and facilitating cross-functional collaboration. Througha governance mechanism of “two fixed annual meetings plus ad-hoc motions,” the Center ensures the efficient implementation ofstrategic initiatives, integrates green technology breakthroughs withcarbon competitiveness enhancement, and drives high-quality, low-carbon development. This enables the Company to provide globalclients with innovative and sustainable industrial solutions.
Sustainable DevelopmentGovernance Framework
Board of Directors
As the highest decision-making and supervisorybody for the Company’s sustainability efforts,the Board of Directors fulfills the followingresponsibilities:
Reviewing and approving the Company’ssustainability vision, mission, and strategywhile assuming ultimate responsibility forsustainability disclosures.Regularly receiving progress reportson sustainability initiatives to ensureeffective strategy implementation.Overseeing the execution of theCompany’s sustainability managementsystem and related measures.
Strategy and SustainableDevelopment CommitteeThis committee is responsible for formulatingand overseeing the Company’s sustainabilitystrategy, ensuring compliance, transparency,and corporate responsibility in sustainabilitypractices. Its key responsibilities include:
Establishing the Company’s long-termsustainability vision, mission, and strategy,ensuring alignment between strategy andexecution.Monitoring the Company’s fulfillment ofsustainability commitments, assessing relatedrisks, and optimizing sustainability performance.Regularly reporting sustainability progress tothe Board of Directors.
As the executive body responsible for implementing the Company’s sustainability strategy, the Sustainable Development Center coordinates internaland external resources to drive sustainability innovation and execution. Its primary duties include:
Green Steel Special CommitteeDeveloping a green steel businessstrategy and roadmap, promotingits application in the global offshorewind market.Strengthening long-termpartnerships with green steelsuppliers to drive technologicalinnovation in green steel production.Advancing the development,application, and market expansionof low-carbon emission productswhile deepening collaborationacross the industry value chain.
Carbon Reduction SpecialCommitteePlanning the Company’s carbonreduction strategy and settingemission reduction targets.Establishing milestones and measuresfor phased emission reductions.Fostering close collaboration amongtechnical teams to explore andimplement advanced low-carbonproduction technologies and processes.Enhancing employee awareness ofcarbon reduction, promoting energy-saving and emission-reductiontechnologies, and reducing energyconsumption and carbon emissions.
Sustainable Development RiskAssessment Special Committee
Identifying and assessing keyrisks in the sustainability domain,including ESG risks.Proposing risk managementrecommendations and developingresponse measures.Establishing a risk early-warningmechanism.
Sustainable Procurement
Special CommitteeDeveloping a sustainable supplychain strategy.Establishing supplier sustainabilityassessment standards,strengthening due diligence,and promoting continuous ESGimprovement among suppliers.Enhancing supplier communicationand collaboration to jointly addresssustainability challenges.
Conducting sustainability initiativesin accordance with the Company’ssustainability management system andprocesses to ensure smooth execution.Regularly collecting, reporting, andevaluating the progress of sustainabilityinitiatives and key performanceindicators (KPIs).
All Relevant Departments
Sustainable Development Center
Tracking global sustainability trends, identifying compliance risks, and exploring sustainable business growth opportunities to enhance the Company’score competitiveness in sustainability.Continuously monitoring sustainability developments among clients, partners, and industry peers, formulating response plans, and addressingstakeholder concerns.Providing sustainability training for business units, facilitating discussions on sustainability topics, and assessing their business impact.
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsSustainable Development Governance FrameworkMateriality AssessmentStakeholder Communication
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
In 2024, Dajin Heavy Industry further optimizedits materiality assessment process to ensure asystematic, accurate, and efficient selection ofkey sustainability topics. By integrating insightsfrom key stakeholders, analyzing nationalpolicies, global and domestic sustainabilitystandards, and industry trends, we effectivelyaligned our sustainability strategy with macropolicy directions and disclosure requirements,while conducting in-depth research on industry-relevant topics.Based on the above analysis, we developed asurvey covering 20 key material topics, invitingboth internal and external stakeholders toparticipate in the evaluation. The assessmentranked the significance of each topic basedon two core dimensions: "Impact on DajinHeavy Industry" and "Impact on externalstakeholders". This approach led to theformation of a Materiality Matrix, ensuring oursustainability strategy is closely aligned withindustry needs and societal expectations.
Materiality Assessment
Environmental
Low-carbon Products
Reducing Carbon Emissions
Technological Innovation and Applicationof Energy-saving Technologies
Waste Management
Biodiversity Conservation
Energy Management
Promoting Circular Economy
Water Resources Management
Social
Quality of Products and Services
Health and Safety
Sustainable Supply Chain
Employee’s Rights and Interests
Employee Development
Remuneration and Benefits
Diversity
Public Welfare Activities
GovernanceBusiness Ethics and Compliance
Compliance Disclosure
ESG Strategy and Risk Management
ESG Govemance
Low
Materiality to Dajin Heavy Industry
Materiality to external Stakeholders
High
High
Sustainable Development
Management
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsSustainable Development Governance FrameworkMateriality AssessmentStakeholder Communication
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
We remain committed to actively addressingstakeholder expectations. Considering ourbusiness characteristics and operationalrealities, we systematically identify corestakeholders and have established diversecommunication channels and efficientengagement mechanisms to facilitatetransparent dialogue. By attentively listeningto stakeholder perspectives, we integratetheir feedback into our sustainabilitydecision-making and practices, continuouslyimproving corporate governance and drivinghigh-quality sustainable development.
Stakeholder Communication
Government and regulatory meetings, training program cooperation, information disclosure, officialcorrespondence and policy advice, etc.General Meeting of Shareholders, Board of Directors and its specialized committees, Supervisory Board,Specialized Meeting of Sole Directors, etc.
Business cooperation, factory audits, site visits, client service hotline, client satisfaction surveys, clientmeetings and emails, official website and other online platforms, etc.Exchange and official website, e-interactive platform, company announcements through telephone ande-mail, shareholders’ meeting, analysts’ strategy meeting results briefing, on-site visit, etc.
Domestic andOverseas clientsShareholders,Potential investorsGovernment andRegulatory BodiesDirectors, Supervisors,Senior Management
Staff Council, Employee Suggestion Box Employee Satisfaction Survey, Employee Activities, EmployeeTraining, etc.Employees
Supplier contractor business partnerships, audits, training, communication meetings, businessnegotiations, etc.Suppliers andContractors
Community service activities, official website and other online platforms, etc.
Community andthe Public
Industry on-site communication meetings, industry online seminars, cooperation and communicationthrough e-mail and telephone, etc.Industry Association
Press releases, company announcements, media interviews, etc.Media
StakeholdersCommunication
Sustainable DevelopmentManagement
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Sustainable Development Governance FrameworkMateriality AssessmentStakeholder Communication
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
SDGs
Amid the pressing challenges of global climate change, enterprises play a crucial role indriving social and economic development while bearing an inescapable responsibility forenvironmental protection. Dajin Heavy Industry recognizes that achieving carbon neutralityis not only a corporate social responsibility but also a strategic pathway for transformation,upgrading, and long-term sustainability. As a result, the Company has fully integratedcarbon neutrality goals into its corporate development strategy, leveraging technologicalinnovation, management optimization, and industrial chain collaboration to drive emissionreductions and contribute to a green, low-carbon society.
Special Topic:
Penglai Facility PracticesSBTi Targets and Leads the Wayto Low-Carbon Transition
Setting SBTi TargetCurrent Status of Carbon Emissionsand Energy StructureCarbon Neutral Pathway
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
The Penglai Facility "hasadhered strictly to the ScienceBased Targets initiative (SBTi)standards and conducts in-depth research and analysison its operational status andindustry development trends.Based on this, Penglai Facilityhas established a set of emissionreduction targets that are bothchallenging and feasible.
Ultimately, the Penglai Facility is committed to achieving net-zero greenhouse gas
emissions across the entire value chain by 2050
Setting SBTi Target
For Scope 1 and Scope 2 GHG emissions, the facility has set clear targetsFor Scope 3 emissions
by 2030, it aims to reduce absolute emissions byand by 2050, this reduction will increase to
compared to 2024 levels42%90%
the target is to reduce emissions byby 2030
25%compared to 2024 levels, and achieve areduction by 2050
90%
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsPenglai Facility Practices SBTi Targets and Leadsthe Way to Low-Carbon Transition
Advancing Green Steel Strategy—Pioneering aNew Chapter in Sustainable Manufacturing
Sustainable Development
Management
The Penglai Facility takes 2024 as the key benchmark year and follows internationally recognized standardssuch as the Greenhouse Gas Protocol (GHG Protocol) and ISO 14064-1:2018 Specification with guidance at theorganization level for quantification and reporting of greenhouse gas emissions and removals. The facility hasconducted a comprehensive, systematic, and detailed inventory of its greenhouse gas emissions. The resultsindicates that emissions sources at the Penglai Facility are widely distributed across multiple areas:
Scope 1 covers direct greenhouse gas emissions from sources such as stationary combustion and mobilecombustion, with annual emissions totaling 15,916.75 tons of CO
e, accounting for 2.24% of total emissions.Scope 2 primarily involves indirect emissions from purchased electricity, with annual emissions of 15,820.32tons of CO
e, representing 2.23%.Scope 3 includes various indirect emissions along the value chain, such as purchased goods and services,capital goods, and upstream and downstream transportation and distribution. The annual emissions forScope 3 reached 678,615.85 tons of CO
e, accounting for 95.53% of the total.
Aligned with the principles and requirements of SBTi, the Penglai Facility's carbon neutrality pathway forScope 1 and Scope 2 emissions focuses on three core strategies: energy efficiency, electrification and greenelectricity development, and carbon offsetting. The approaches include reducing energy consumptionthrough targeted energy-saving goals, optimized energy management, and technological advancements;accelerating the transition to a cleaner energy structure by promoting electrification and expanding theuse of green electricity; and offsetting residual emissions through carbon sink projects. By systematicallyimplementing these strategies, the Penglai Facility is committed to achieving its carbon neutrality targets.
Current Status of Carbon Emissionsand Energy Structure
Carbon Neutral Pathway
The Penglai Facility has established clear, forward-looking energy-saving KPI targets, aiming to reduce energyintensity per unit of product revenue by 6% by 2030 compared to 2024, and further reduce this intensityby 30% by 2050. To ensure the achievement of these goals, the facility has prioritized the developmentand enhancement of its energy management system, including compliance with ISO 50001. Additionally,it continues to deeply explore energy-saving potential through practical measures such as optimizingproduction equipment and improving process flows.
Energy-Saving Measures and Renovation
further reduce this intensity
by 2050aiming to reduce energy intensity
per unit of product revenueby 2030 compared to 2024
1.1 Stationary Source Combustion Emissions
1.3 Industrial Process Emissions and Removals
2.1 Electricity indirect GHG emissions
1.2 Mobile Source Combustion Emissions
1.4 Fugitive Emissons from Human Activities
Emissions by Sub-category under Scope 1 and Scope 2 (tCO
e)
Emissions by Sub-category under Scope 3 (tCO
e)
49.82%
37%7%
5.18%
1%Scope 1 andScope 2
93.10%
0.00%
2.06%
0.14%
0.04%
0.01%
1.34%
2.61%
0.70%
Scope 3
3.1 Purchased goods and services
3.5 Waste generated in operations
3.2 Capital goods
3.6 Business travel
3.3 Fuel-and energy-related activities
(not included in scope 1 or scope 2)
3.7 Employee commuting
3.9 Downstream transportation and distribution
3.12 End-of-life treatment of sold products
3.4 Upstream transportation and distribution
202420302050
30%6%
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsPenglai Facility Practices SBTi Targets and Leadsthe Way to Low-Carbon Transition
Advancing Green Steel Strategy—Pioneering aNew Chapter in Sustainable Manufacturing
Sustainable DevelopmentManagement
Penglai Facility actively aligns with the energy transition trend and will vigorously promote the electrificationprocess. A detailed electrification KPI system has been established, targeting different emission sources.For fixed sources, such as welding preheating using natural gas, canteens and boilers, and heating in thecoating workshop, as well as non-road transportation equipment using gasoline and diesel, electrificationrenovations are being steadily implemented. Furthermore, green electricity development is a key pillarof the facility’s sustainability strategy. In 2024, the Penglai Facility used a total of 11,181,000.00 kWh ofgreen electricity, accounting for 32% of its total electricity consumption. The facility plans to increase thisproportion to 60% by 2025, achieve 96.5% green electricity usage by 2030, and reach 100% by 2036.
Energy Structure Adjustment
202520302036
60.00%
96.50%
100.00%
Dajin Heavy Industry Penglai Facility’s Green electricity Target
Building on the proactive emission reduction measures such as energy efficiency improvements andelectrification, the Penglai Facility will develop a scientifically sound and reasonable carbon offset strategyfor the emissions that cannot be fully eliminated. To achieve operational carbon neutrality and ensureprecise alignment with the SBTi net-zero targets, the facility will:
Carbon Oset Strategy
To steadily achieve its Scope 3 greenhouse gas (GHG) reduction targets, the Penglai Facility is prioritizingsupply chain management as a key driver of decarbonization, with a particular emphasis on key rawmaterials such as heavy steel plates and flanges, driving low-carbon transformation systematically throughthe following initiatives:
Scope 3 Net Zero Target
StrengtheningSupplier Carbon
Footprint
Management
AdvancingGreen Upgrades
in Production
Processes
Green Logisticsand TransportationDecarbonization
The Company has established strict carbon footprint entry standardsfor suppliers, requiring upstream suppliers to provide lower-carbonproducts to reduce carbon emissions at the source. Additionally,the Company has enhanced the sustainable supply chain evaluationmechanism, with an increase weight on carbon emissions indicators,ensuring that low-carbon requirements are integrated throughout theentire supply chain.
The Company encourages suppliers to optimize production processesand apply low-carbon technologies to enhance carbon reduction levelsthroughout the entire product lifecycle. The Company is also activelyfostering a new suppliers system that meets green standards, buildinga full-chain carbon reduction ecosystem to continuously strengthensupply chain resilience and green competitiveness.
At the upstream and downstream logistics stages, Penglai Facility isactively promoting the transition to alternative marine fuels, graduallyreplacing traditional fossil fuels with low-carbon or zero-carbonalternatives. This initiative significantly reduces greenhouse gasemissions in upstream and downstream transportation, mitigating thesupply chain’s impact on climate change.Purchase high-quality carbon offsets to neutralize remaining emissions.Actively explore and participate in carbon sink projects, with a focus on forest and ocean-based carbonsinks to leverage emerging decarbonization opportunities.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsPenglai Facility Practices SBTi Targets and Leadsthe Way to Low-Carbon Transition
Advancing Green Steel Strategy—Pioneering aNew Chapter in Sustainable ManufacturingSustainable DevelopmentManagement
SDGs
In the context of accelerating global climate governance, the 2°C temperature control target set by the ParisAgreement is profoundly reshaping the global industrial landscape. The implementation of the EuropeanUnion's Carbon Border Adjustment Mechanism (CBAM) has formally integrated carbon pricing into theinternational trade system, with carbon taxes scheduled to be levied on high-emission imports such as steelfrom 2026 onwards. This transformation is not only accelerating the clean transition of global manufacturingbut also urging companies to expedite their low-carbon development pathways.As a core material for strategic industries such as wind power and renewable energy, green steel's low-carbon emission attributes directly determine the emission reduction eectiveness of the entire industrychain. In response, Dajin Heavy Industry has proactively developed a green supply chain strategy, drivingthe low-carbon transition of upstream suppliers and deepening the global decarbonization pathways acrossindustrial value chains. As the only oshore wind foundation supplier in the Asia-Pacic region with large-scale deliveries to Europe, Dajin is actively integrating into the global green supply chain transformation,contributing to the green transition of the wind power industry.In 2024, Dajin Heavy Industry ocially established its Green Steel Special Committee to comprehensivelyadvance the development of its green steel business, enhance the Company's carbon competitiveness andsupport domestic and international clients in building more low-carbon supply chains. The Company set up adedicated Green Steel Task Force to coordinate its green steel development strategies, promote innovationand application of low-carbon emission steel technologies, and reduce the carbon footprint of its wind powerproducts——setting a benchmark for the global green transformation of the wind power industry.
Special Topic:
Advancing Green Steel Strategy—Pioneering a New Chapter inSustainable Manufacturing
Establishment of the Green Steel TaskForceIn-Depth Research to Advance theGreen Transition of Chinese Steel MillsEstablishing Green Steel CooperationPrinciples to Deepen Industry-WideWin-Win CollaborationSigning Green Steel StrategicPartnerships to Drive Low-CarbonGrowth in the Global Wind PowerIndustry
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
To comprehensively implement its green steel strategy, Dajin Heavy Industry officially established the Green SteelTask Force in 2024. Led by a Sponsor, the task force coordinated by a designated team leader and composed ofcore members from key departments including the Sustainable Development Center, Supply Chain ManagementCenter, and Overseas Business Division, creating a highly efficient and collaborative working mechanism.Based on clearly defined responsibilities, the task force has developed a set of scientific working principles to ensurethe effective execution of the strategy. The Sponsor provides strategic guidance, the team leader is responsible foroverall coordination, and departmental members work in close collaboration to form a synergized effort. Throughclose cooperation among the Sustainable Development Center, Supply Chain Management Center, and OverseasBusiness Division, the task force ensures efficient communication with clients and suppliers, promptly conveyingrequirements and feedback while accurately tracking of market trends. This approach guarantees that suppliers’products meet client expectations. At the same time, under the coordination of the task force, departmentsproactively provide necessary support and resources, collectively advancing the success of green steel initiatives and,accelerating the low-carbon emission transformation of the supply chain and the adoption of Green Steel products.
In May 2024, the Company visited the headquartersof Baowu Group, Baosteel’s Baoshan Base in Shanghaiand Zhanjiang Base to learn more about heavy steelplate production lines and green steel planning.
In August 2024, the Company visited Nanjing Iron andSteel to conduct research and exchange ideas on “low-carbon” strategy and green steel.
Establishment ofthe Green Steel Task Force
In 2024, Dajin Heavy Industry’s Green Steel Task Force conducted in-depth research at more than 10leading steel mills across China. The research focused on key topics such as steel plate productionprocesses, product carbon footprints, decarbonization technologies, green steel development plans, andcost premiums. During these visits, the task force held in-depth discussions with the steel mills' industrialresearch institutes and carbon management departments. The dialogues centered on exploring technologypathways for green steel, sharing research findings, and the latest technological developments, and activelyidentifying practical and feasible green steel solutions to support the industry’s low-carbon transformation.
In-Depth Research to Advancethe Green Transition of Chinese Steel Mills
In promoting the development of green steel products, Dajin Heavy Industry adheres to the principle of win-win cooperation and has established a set of green steel collaboration guidelines. These guidelines clearlystate that partners must possess advanced low-carbon production capabilities to ensure a competitivenessin the global low-carbon transition. By partnering closely with top-tier green steel suppliers, Dajin HeavyIndustry continues to enhance its technical capabilities and market adaptability in green steel. Together withits partners, Dajin aims to meet the challenges of global green transformation and jointly build a competitive,internationally recognized green supply chain system.
Dajin Heavy Industry Establishes Principles for Cooperation with Green Steel Mills
Establishing Green Steel CooperationPrinciples to Deepen Industry-WideWin-Win Collaboration
Steel Plate QualityPartner steel mills must have the ability to produce high quality steel plates,especially in the manufacture ofhigh-strength,corrosion-resistant steel plates,to meet the stringent requirements for material properties inoverseas offshore wind projects.Green Steel Certication and StandardsThe green steel products of the partner steel mills must comply with the relevant EU and international certificationsand standards to ensure the environmental performance of the products and their acceptability in the market.Capacity and ReputationsPriority is given to steel mill partners with large-scale production capacity and market influence to ensure thecontinuous supply of green steel products and their wide application in the market.
Technological lnnovation and R&D Capability
Priority will be given to those mills with foresight and innovation in green steel technology R&D to promotethe development and application of low-carbon or zero-carbon steel plates.Supply Chain TransparencySteel mills are required to provide comprehensive carbon emissions data and other environmentalinformation to ensure transparency and traceability throughout the supply chain.Market AdaptabilityThe green steel products of the partner steel mills must be adaptable to market demand,including meetingthe actual needs of overseas offshore wind projects in terms of cost,performance,and delivery time.Long-term Strategic CooperationEstablish long-term strategic partnerships with steel mills to jointly set and promote higher environmentaland sustainability goals,and collaborate to meet the challenges of future market and regulatory changes.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Indicator IndexSpecial TopicEnvironmentalSocialGovernanceAbout Us
Penglai Facility Practices SBTi Targets and Leadsthe Way to Low-Carbon Transition
Advancing Green Steel Strategy—Pioneering aNew Chapter in Sustainable ManufacturingSustainable DevelopmentManagement
In 2024, Dajin Heavy Industry officially signed green steel strategic cooperationframework agreements with Baosteel and Nanjing Iron & Steel. Thepartnerships focus on improving steel plate production processes, optimizingcarbon footprints, and advancing green steel planning. Through joint efforts intechnical research, project implementation, and knowledge sharing, Dajin andits partners are working together to build an international green supply chainsystem and provide low-carbon emission steel solutions from China to supportthe decarbonization of the global wind power industry.
Signing Green Steel StrategicPartnerships to Drive Low-Carbon Growth in the GlobalWind Power Industry
Looking ahead, Chinese steel mills will continue to leverage theirinstitutional strengths, resource integration capabilities, andtechnological innovation, to make steady advancements in thegreen steel sector, providing strong support for the sustainabledevelopment of offshore wind industry in Europe. Dajin HeavyIndustry will take this green steel cooperation as a key opportunityto deepen its green and low-carbon transformation. By joiningforces with global partners to build a greener and more sustainablesupply chain, Dajin is committed to contributing “Dajin Strength” tothe realization of global climate goals.
Signing of the Green Steel Strategic Cooperation FrameworkAgreement with Baosteel
Signing of Green Steel Strategic Cooperation FrameworkAgreement with Nanjing Iron and Steel (NISCO)Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsSustainable DevelopmentManagement
Advancing Green Steel Strategy—Pioneering aNew Chapter in Sustainable Manufacturing
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsSustainable DevelopmentManagement
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Advancing Green Steel Strategy—Pioneering aNew Chapter in Sustainable Manufacturing
SDGs
Environmental
Dajin Heavy Industry remains steadfast in its corporate vision of “Sailing Toward aSustainable and Greener Future.” The Company is committed to green and low-carbonemission development, integrating environmental sustainability deeply into its productionand operations. By actively contributing to the achievement of carbon peaking and carbonneutrality goals, while strengthening its own environmental management systems,Dajin strives to protect natural ecological harmony and support both national and globaltransitions toward a green and low-carbon emission future.
Responding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key performance Data
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Dajin Heavy Industry incorporates climatechange-related factors into its businessrisk identification process, continuouslyadvancing its efforts to identify andrespond to climate change risks. At thesame time, the Company proactivelyseizes the opportunities brought byclimate change, positioning global low-carbon emission development and energytransformation as key growth drivers. TheCompany accelerates product optimizationand strategically expands its focus on therenewable energy sector to meet the ever-evolving low-carbon emission demands ofits downstream clients.
Responding to Climate Change
Following the Recommendations of theTask Force on Climate-related FinancialDisclosures (TCFD), Dajin Heavy Industrycomprehensively identifies, analyzes, andevaluates the risks and opportunitiesrelated to climate change within thecontext of its business and operationalconditions. Based on this analysis, theCompany develops correspondingstrategies and countermeasures toaddress these challenges and capitalize onemerging opportunities.
Climate Change Riskand Opportunities
Major Climate Change-related Risk and Opportunities for Dajin Heavy Industry and Measures to Address ThemTypesCategoriesDescriptions
Existing or Potential Impact on
the Company
ImpactScopes
Company Response Measures in
Place or Planned
AcuteShort-term
Increased frequency ofextreme natural disasters,such as typhoons, floods,and extreme weatherevents.
This will lead to power outages,water outages, and damage toproduction equipment, which willaffect the normal operation of theCompany’s production facilities,affect logistics and transportation,and reduce the timelinessand safety of the supply chaintransportation link, resulting inpotential economic losses.
Early warning mechanisms and emergencyplans to deal with severe weather have been setup at each production site, and the resilienceof equipment has been upgraded to improveresistance to natural disasters.Programs are in place to ensure a stable andcontinuous supply of the supply chain, and we areworking with marine logistics-related departmentsto adjust transportation routes in accordance withweather conditions to reduce the possible impactof bad weather on product delivery.Chronic
Medium-and Long-termRisks of long-term climatechange, such as a sustainedrise in global temperaturesdue to climate change,leading to rising sea levels,changes in the distributionof water resources, and hotweather.
Some of the production facilities arelocated along the coastline as wellas in river basins, and the relatedrisks may lead to relocation ofoperation sites, increased demandfor refrigeration equipment, andincreased frequency of equipmentmaintenance, etc., which may increasethe Company’s operating costs.
When constructing new production facilities andother office areas, the long-term risks of climatechange are taken into account in the selection ofsites, so as to minimize the impact of such risks.For established production facilities,construction of breakwaters and upgrading ofthe efficiency of refrigeration equipment will becarried out to strengthen the resilience of thefacilities to the long-term risk of climate change.
Transition Risk
Physical Risk
Policy andRegulatoryRisks
As domestic and internationalattention to climate changecontinues to grow, relatedclimate regulations and industrystandards are becomingincreasingly stringent, such asCBAM, China’s “Dual Carbon”development strategy, and newpolicies and regulations areconstantly being introduced.
In the face of increasingly stringentregulatory trends, the Company mayface growing compliance risks in areassuch as product import and export tradeand compliance operations. Meanwhile,given the global surge in demand for low-carbon and renewable energy, changesin clean energy-related policies andsubsidies may occur, potentially affectingthe Company’s profitability.
Pay close attention to the update of domesticand international policies and regulations,follow the latest policy trends related to climatechange, and quickly implement strategies toreduce the carbon footprint of products andoperational carbon emissions.Medium-and Long-term
Market attention andexpectations for green andlow-carbon emission productsare rising, with both domesticand international downstreamclients placing higher demandson the Company's climate riskmanagement and low-carbonemission performance.
In order to meet the requirements oflow-carbon emission and environmentalprotection, the Company needs toallocate more resources to technologicalresearch and development, equipmentupgrades, and raw material optimization,etc., which may lead to increasedproduction and procurement costs.
Evaluate the carbon emissions of the whole processof the product production cycle, and accuratelyformulate precise carbon reduction plans based oninventory reports.During the year, the Company established adedicated Green Steel Task Force to conduct in-depth research on steel plate production process inChina, product carbon footprints, decarbonizationtechnologies, green steel planning and costpremiums, etc.. The task force is committed toproviding practical green steel solutions for globaloffshore and onshore wind clients.
Medium-and Long-termMarketRisks
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable Development
Management
Opportunities
TypesCategoriesDescriptionsExisting or Potential Impact on the CompanyImpact ScopesCompany Response Measures in Place or Planned
MarketOpportunity
Long-term
Both domestic and internationalpolicies supporting the new energyindustry have been introduced, suchas China’sAction Plan for High-QualityDevelopment of the New EnergyStorage Manufacturing Industry (Draftfor Public Comments)and Japan’sGreen Growth Strategy ThroughAchieving Carbon Neutrality in 2050.These initiativesfurther promote thedevelopment of both offshore andonshore wind power industry, therebyexpanding the potential of the windpower market.
For companies focused on wind powerequipment manufacturing, the introductionand implementation of favorable policies havecreated new market opportunities, potentiallydriving the expansion of the Company’soperational market and increasing revenue.
Continuously improving product quality and optimizingthe manufacturing processes according to clients' needs,the Company aims to steadily provide high-quality, low-emission towers, offshore engineering infrastructure andother steel components for wind power to downstreamclients, expanding the Company's market share.Accelerating the layout of renewable energy industries,such as wind farms, and formulating a work plan focusedon “increasing design optimization and deepeningcost reduction” to enhance the competitiveness ofthe Company's sustainable energy power generationprojects and maintain its market advantage.
ResilienceOpportunities
Various countries and regionsaround the world are graduallyestablishing and launching carbonemissions trading system, aimingto control and reduce greenhousegas emissions through market-based mechanism for carbonemission trading.
An increasing number of energy-intensiveindustries are participating in carbon emissionstrading schemes. This enables companies toobtain emission allowance while optimizingtheir own emission costs. At the same time, itencourages environmental technology innovationin environmental technologies and the use anddevelopment of clean energy, thereby promotingthe Company’s sustainable development.
Closely monitoring the latest developments in the carbonmarket, Dajin Heavy Industry keeps track of markettrends in real time to help the Company anticipatefuture directions, mitigate potential risks, and seizeenvironmental opportunities.The Company continues to invest in and developrenewable energy projects while actively participatingin green electricity trading to reduce carbon emissions.As of 2024, the Company has generated a total of 1.102billion kWh of green electricity, equivalent to reducing591,300 tons of CO
emissions.Medium- andLong-term
ReputationalRisks
Stakeholders are increasinglyattentive to the Company’sperformance in green and low-carbon development as well as itsresponse to climate change.
If the Company fails to communicate the progressand status of low-carbon emission developmentin a timely manner, it may negatively impactthe Company's reputation and brand image,which in turn may affect the Company’s marketperformance.
The Company is actively undertaking low-carbontransformation initiatives, accelerating the deploymentof the sustainable energy industry, and timelycommunicating its progress in low-carbon emissiondevelopment to stakeholders through channels such assustainability report, enhancing its image as sustainabledevelopment leader.This year, the Company was awarded the EcoVadis BronzeMedal, CDP C level both in Climate and Water Security,and recognized by a leading international offshore winddeveloper and operator as the “Most Advanced Supplierin Sustainable Development in Asia-Pacific Region”.Transition Risk
Medium- andLong-term
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable DevelopmentManagement
Dajin Heavy Industries remains committed to delivering high-quality wind power products and delivery solutionswhile actively reducing carbon emissions generated during production and daily operations. Additionally, theCompany plays a key role in guiding and promoting low-carbon development among upstream and downstreampartners in the supply chain, jointly advancing the transition to a low-carbon economy.
Providing Low-Carbon Emission Solutions
Penglai Facility "Dual Carbon" Targets
To support China’s 14th Five-Year Plan, the 2035 Long-Range Objectives, the 30·60 Carbon Peaking andCarbon Neutrality Goals, as well as the United Nations’ Paris Agreement, Dajin Heavy Industry’s PenglaiFacility has taken the lead in announcing its "Dual-Carbon" goals. In 2024, building upon its already achievedpeak carbon emissions, the Company will further update its “Dual-Carbon” goals and outline a refinedcarbon reduction roadmap.
Carbon Peak and Carbon Neutrality Goals and Carbon Reduction Pathway
Dajin Heavy Industry is committed to building a green, low-carbon supply chain and actively exploresproduct lifecycle carbon emissions management. By identifying key factors affecting the carbon footprintacross raw material procurement, manufacturing, and logistics, the Company implements multiple measuresto improve resource efficiency and advance carbon reduction.Reducing the Carbon Footprint of Product
Target for 2030
Target for 2040
Target for 2050Carbon emissions from scope
（direct emissions) and scope
（indirect emissions) havedecreased by 42% compared tothe base year.Scope 3 (value chain emissions)reduced by 25%; for steelprocurement, the emissionintensity of scope 3 will decreasefrom 2.39 tons of steel Plate/tonCO
e to 1.22 tons of steel plate/ton CO
e, which achive halfreduction on emission intensity.
Achive carbon neutrality inscope 1 and 2, and decarbonizeits own operations throughprocess optimization, energystructure transformation (suchas using renewable energy)and other measures.
By 2050, net zero emissions ofthe full value chain (includingscope 3) will be achieved, inwhich the emission intensity ofsteel and flange procurementwill be significantly reducedfrom 2.39 tons of products/tonCO
e to 0.128 tons/ton CO
e, adecrease of 95%。
Performance
Performance
In 2024, an investment ofRMB was made in emission reduction initiatives.179,600
All suppliers organized internal training sessions and submitted their acknowledgement, achieving a
response rate.100%In 2024, the Company distributed theGreen Supply Chain Management Measuresand theConflictMinerals Non-use Self-Declaration to 19 relevant suppliers via email.
Implementing of Green ProcurementTo further promote green development across the supply chain, the Company has formulated andimplemented the Green Supply Chain Management Measures. These measures cover raw material suppliers,manufacturers, distributors, retailers, and end-users, forming a chain structure, pathway, or network toestablish a comprehensive green supply chain system. By enhancing resource efficiency at each stage of thesupply chain, Dajin Heavy Industry effectively minimizes ecological and environmental impacts, supportingto maintain its sustainable competitive advantage.
In addition, during the supplier admission process, we require suppliers toupload their ISO 14000 Environmental Management System certificatesthrough the Company’s procurement platform (“Yicaitong”). This ensuresthat suppliers adhere to international environmental managementstandards during production, thereby minimizing negative environmentalimpacts. By setting this requirement, we aim to lead upstream anddownstream enterprises in enhancing environmental managementpractices, improving overall supply chain environmental performance, anddriving coordinated progress in green supply chain development.To ensure the full implementation of green supply chain practices, theCompany conducted a specialized training program on the Green SupplyChain Management Measures in 2024 for employees in the Supply ChainManagement Center. The program deepened their understanding ofsustainable procurement principles and strengthened their practicalapplication skills. By integrating training with real-world practice, theCompany actively promotes green procurement initiatives across alldepartments, fostering a culture where all employees participate in anduphold green supply chain management.
Supply Chain Management Centerconducted trainings onGreen SupplyChain Management Measures
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable Development
Management
Case Study
Optimizing Bevel Angles to Improve Welding Energy EciencyIn a project in Zhangjiakou Facility, the traditional old beveling process has the problem of wastage ofwelding consumables and energy due to design limitations. The project originally used larger bevelangles, such as 60° and 75°, for steel plate welding, which met the welding strength requirementsbut resulted in lower welding consumables and energy utilization. In order to reduce cost, waste andenvironmental burdens, the project team scientifically optimized the bevel angle. By reducing thegroove angle while maintaining welding strength, we achieved dual savings in both welding materialsand energy consumption. After optimization: Wire consumption decreased by 11.06% (approx. 140 kgper unit). Flux usage dropped by 11.07% (approx. 150 kg per unit). The improved process also enhancedenergy efficiency, reducing both material waste and carbon emissions. This delivers a true win-winoutcome—lower production costs and greater environmental benefits.
Gas-free Bevel Welding Process Reduces Toxic Gas EmissionsAt the Fuxin Facility, traditional tower fabrication relied on submerged arc welding (SAW) forlongitudinal and circumferential seams, with carbon arc gouging as the primary method forweld root cleaning. However, this process emits benzopyrene-laden fumes, posing health risksto workers while generating smoke, arc glare, and noise pollution—undermining environmentalgoals. To address this, Fuxin Facility established a Gas-free Gouging Process Team, integratingprofessionals from R&D, production, equipment, and quality control departments to tackle theproblem. After several rounds of testing and optimization, the team successfully developed andimplemented a gas-free gouging technology suitable for steel plates with a thickness of lessthan 23mm, which was fully adopted in actual production. For towers weighing less than 60tons, the average carbon rod consumption has been reduced to 1 rod/ton. This improvementnot only significantly reduces the emission of harmful gases in the work environment butalso reduces smoke, arc light, and noise pollution generated during the carbon arc gougingprocess. It has greatly improved the work environment, reduced occupational health risks, andenhanced employees’ sense of safety and comfort.
Spraying Painting Process Upgrade to Reduce Paint WasteIn the anti-corrosion workshop, the traditional spraying method often resulted in therelease of harmful gases such as xylene and toluene, and led to significant paint waste andfrequent defects. To improve this situation, the Fuxin Facility introduced a general-purposespray painting turntable and rotating spray process to optimize the spraying method. Thisimprovement effectively reduced the paint quota loss factor, improved the passing rate of paintinspection, and reduced paint defects and usage. At the same time, the harmful gas emissionwas significantly reduced, achieving the double enhancement of environmental protection andproduction efficiency.
Upgrading Catalytic Combustion RTO Heating System to Reduce VOC EmissionsTraditional catalytic combustion technology faces challenges such as catalyst poisoning anddeactivation caused by tar, sulfur compounds, and other substances, along with insufficienthigh-temperature stability. These issues lead to fluctuations in treatment efficiency and risingoperation and maintenance costs. To overcome these bottlenecks, the Zhangjiakou facility hasintroduced Regenerative Thermal Oxidation (RTO) technology.RTO technology uses high-temperature oxidation to convert VOCs in waste gases into carbondioxide and water, achieving a purification efficiency of 95% to 99%. The system is equippedwith real-time monitoring to track operating status and waste gas emissions, ensuring thatthe discharged gases meet environmental standards. Furthermore, the RTO equipment usesregenerative ceramic beds to recover heat, which is then used to preheat subsequent waste gases,enabling efficient heat recovery and significantly reducing energy consumption during operation.
Implementing Green Production: Promoting Low-Carbon Process UpgradesThe Company continually explores carbon reduction pathways in production processes, focusing on key production techniques such as beveling, welding, and painting. By continuously optimizing production techniquesand workflows, we reduce raw material and energy consumption, collaboratively decreasing carbon emissions from both material usage and manufacturing operations.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable DevelopmentManagement
Re-utilization of Overstocked Bolts InventoryIn 2024, the Fuxin Facility undertook the production task of mixed tower transition sections for a project. During production, the originallyplanned M42 bolts were insufficient, and there were no available fixed matching bolts in the hardware warehouse for direct installation.To address this issue, the facility selected bolts from the overstocked inventory that were either of the wrong length, had varying threadlengths, or were slightly larger in size. These bolts were then processed using a lathe machine to modify them into the required M42 boltmodel. These modified bolts were successfully applied to the fixed welding work of the mixed tower transition section. A total of 260 setsof bolts were modified throughout the year, effectively solving the bolt shortage problem in the production of the mixed tower transitionsections. This not only optimized the overstocked inventory but also prevented resource waste and additional cost expenditures.
Green Recycling of Steel Plate Cutting ScrapIn 2024, the Yangjiang Facility implemented unified management of steel plate cutting waste generated during the productionprocess, significantly enhancing both environmental and economic benefits. By setting up a special waste recycling area on theproduction line, the waste materials that can be reused are selected for secondary cutting and processing, and are made into variouskinds of tooling such as marine tooling, vertical shipping tooling, tower storage saddles, and flange support solutions. For the steelplate cutting scrap that can’t be utilized, the base adopts a unified collection method and establishes a cooperative relationshipwith a professional waste recycling company to sell the collected steel plate cutting scrap on a regular basis. This series of initiativeshave reduced the demand for new steel plates, alleviating environmental pressures from resource extraction, and loweringenergy consumption and carbon emissions associated with new steel plates production. This initiative not only saves raw materialprocurement costs, but also provides innovative ideas for the green development of the entire industry.
Tower Storage Saddles
The Company continuously enhances its capacity to recycle waste materials throughout the production process. Through innovative productionmanagement initiatives, it effectively lowers production costs, reduces reliance on primary resources, and minimizes environmental pollutioncaused by waste. By promoting the adoption of green production models, the Company fosters a sustainable approach that delivers botheconomic and environmental benefits, creating a win-win outcome.Promoting Recycling
Performance
Case Study
In 2024, the utilization of steel scrap and leftover materials reached
while the utilization of other scrap materials, such as woodenpallets and packaging materials, amounted to
tons
kg
1,145.52
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Responding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable Development
Management
Strictly check the warehousematerial submission plan toreduce purchasing and reducingemission.The warehouse logistics industryis facing the trend of greendevelopment, and it needs toimprove the storage operationcapacity by focusing on theenvironment, resources andefficiency.Enhance the intelligent storagemanagement capability, improvethe space utilization rate, andrealize a more refined inventorymanagement.
Management Objectives
Continue to improve warehouse management and job responsibilities,efficiently integrate environmental protection and social responsibility intothe operation of corporate culture, and strengthen various measures inenvironmental improvement and supply chain cooperation and resourceconservation have been achieved to reduce costs and increase efficiency.
Management Performance
Optimize inventory management,reduce inventory overhang, andreduce inventory loss.Improve the utilization rate ofstorage space and reduce storagecosts.Improve storage operationefficiency and reduce labor cost.Ensure the safety and complianceof storage operations.Achieve the real-time monitoring,data analysis and decisionsupport of warehousingoperations.
Major Measures
Fuxin FacilityStrengthened theWarehouse Management
Capability
Penglai Facility Reduced the Environmental Impact during Logistics and Transport
SPMT
In 2024, the logistics workshop at the PenglaiFacility further enhanced its efficiency byoptimizing key factors such as productioncapacity, product type, transport procedureoptimization, and tooling modifications. Byintegrating SPMT (Self-Propelled ModularTransporter) resources and refining axleconfigurations, the facility reduced thenumber of axles from 120 in the first halfof 2024 to 100 axles, contributing to loweremissions of sulfur dioxide, nitrogen oxides,smoke, and other exhaust gases. Additionally, the logistics workshop improved packagingmethods to address challenges posed by the large mass and small contact surface of individualproducts, which previously led to paint wrinkling and breakage. With this improvement, there wasvirtually no damage during transport, significantly reducing the need for paint repairs.The Shipping Division Continuously Deepens Optimal Transport SolutionsIn 2024, the Shipping Division fully leveraged its professional advantages and innovative spirit duringthe sea transport phase of product delivery. By accurately planning the number of monopiles andthe ship's cargo capacity, the Division carried out deck modifications, adding external extensionbrackets to expand the cargo area. At the same time, considering the safety risks in internationalwaters, comprehensive safety measures were implemented, significantly enhancing risk resilience.Without detouring, the transportation task was successfully completed, achieving a perfect balancebetween cost savings, efficiency improvement, and safety assurance. Additionally, the Shipping Divisionincorporated carbon emission indicators into its shipping vessel leasing criteria, classifying the vessels’carbon emissions based on reports provided by leasing companies and prioritizing the selection ofenergy-efficient shipping companies with lower carbon emission indicators to promote green shipping.
The Company actively practices the concept of green logistics by strengthening warehousing managementcapabilities, improving logistics transit efficiency, and optimizing transportation route planning, continuouslyenhancing its green logistics system.Building Green Logistics
Case Study
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance Data
Sustainable DevelopmentManagement
Dajin Heavy Industry upholds the concept of green and low-carbon development, actively laying out andaccelerating the development of the green energy industry, particularly in wind power generation andother fields. The Company is dedicated to reducing its own carbon emissions while contributing to society’stransition toward low-carbon development.The Company continues to advance the construction of wind farms and photovoltaic power plants. By the endof 2024, the Company had completed and put into operation the 250MW Fuxin Zhangwu Xiliujiazi Wind Farm.Additionally, the 250MW Tangshan Caofeidian Aquaculture-PV Complementary Project is under construction andis expected to be connected to the grid in April 2025. The 700MW Tangshan Caofeidian Wind Power Project andthe 250MW Tangshan Fengnan Wind Power Project have both obtained construction permits and are activelyprocessing preliminary development procedures. Once completed, these projects are expected to provideapproximately 3.4 billion kWh of green electricity annually, reducing carbon emissions by about 1.82 million tons.
Supporting Society’s Low-Carbon Transition
In line with the Company's renewable energy investment strategy, the Company has actively advancedgreen finance initiatives. By the end of 2024, the Shilihai PV Project had secured 849 million RMB in financingapprovals, with 320 million RMB disbursed. In the future, the financing scale for the Tangshan Wind PowerProject is expected to reach 3 billion RMB.Green Finance
PerformanceIn 2024,the Company cumulatively holdskW of grid-connected wind power projects250,000
The total power generation reachedbillion kWh
1.102
equivalent to a reduction oftons of carbon dioxide emissions591,300
withturbines installed
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Responding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance Data
Sustainable DevelopmentManagement
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Strengthening Environmental Management
Dajin Heavy Industry always adheres to the development philosophy of green and environmental protection, actively promoting a clean production model, and striving to build a production system with efficient resource utilizationand environmental friendliness. Throughout its production and operations, the Company continuously explores and advances the circular economy, strictly controlling the discharge of pollutants and waste, and reducing the impacton the surrounding natural ecology and biodiversity from the source. Through practical actions, the Company fulfills its green responsibility and makes a positive contribution to sustainable development.Enhancing Management CapabilitiesResource Management Optimization
IndicatorsUnitDataTotal Integrated Energy ConsumptionMWh133,953.76Energy Consumption per Million RMB of RevenueMWh/Revenue in million RMB 35.44Total Direct Energy ConsumptionMWh72,718.79Total Indirect Energy ConsumptionMWh61,234.97Direct Eenergy Consumption of Dajin Heavy
Industry in 2024 (MWh)
Indirect Energy Consumption of Dajin Heavy
Industry in 2024 (MWh)
Natural Gas Consumption59,038.33MWhDiesel Consumption11,075.85MWhPropane Consumption1,623.59MWhGasoline Consumption981.00MWh
Direct Eenergy
Consumption
Total Purchased Electricity60,185.40MWhTotal Purchased Heat1,049.57MWh
Dajin Heavy Industries has always regarded environmental protection as one of its core responsibilities in businessdevelopment. The Company strictly complies with and enforces key laws and regulations such as theEnvironmentalProtection Law of the People’s Republic of China, theAir Pollution Prevention and Control Law of the People’s Republicof China, theWater Pollution Prevention and Control Law of the People’s Republic of China, and theClean ProductionPromotion Law of the People’s Republic of China. Additionally, the Company follows the relevant standards of theISO 14001 Environmental Management System and actively builds and improves its environmental managementsystem.The Company has developed key documents, including theEnvironmental Policy Statement, EnvironmentalManagement Procedures, Environmental Impact Assessment Forms, andList of Significant Environmental Factors,ensuring that environmental management requirements and measures are more standardized and transparent,thereby laying a solid foundation for the Company’s sustainable development.Each of the Company’s production facilities has established Health, Safety, and Environment (HSE) departments,responsible for managing environmental matters at the facility level and regularly reporting the management resultsto the Company headquarters. By the end of 2024, all long-term operational production facilities have obtained ISO14001 Environmental Management System certification, and the newly established production facilities in 2024 haveinitiated the certification process.
Environmental Management System
Dajin Heavy Industry strictly adheres to national and local energy management laws and regulations, developingenergy-saving and consumption-reduction policies tailored to its business operations. The Company implementsmeticulous management of energy consumption throughout its production and operations. By actively adoptingenergy-saving and efficiency-improving measures, the Company effectively fulfills its commitment to energyconservation and emission reduction.
Energy Management
The Company regularly conducts internal and external environmental impact audits, systematically checking theenvironmental risks and compliance at each production facility. Internally, the Company has developed policydocuments such as theDepartmental Environmental Factors List, Departmental Environmental Factors Checklist,andDepartmental Environmental Factors Evaluation Form, and identifies significant environmental factors associatedwith each department based on these documents. At the same time, each facility regularly identifies and evaluatesinternal environmental factors, addressing any issues with targeted corrective actions to ensure early detection andprevention of environmental risks.
Environmental Audit and Risk Prevention and Control
The Company pays close attention to the prevention and response to sudden environmental incidents and is committedto enhancing the Company’s overall environmental emergency capabilities. The Company has developed severalenvironmental emergency management plans, including theEmergency Plan for Environmental IncidentsandEmergencyPlans for Heavy Pollution Weather. These plans clearly define the handling procedures for sudden environmental incidentssuch as hazardous waste leakage, fires and other unforeseen events. Additionally, the Company implements a tieredmanagement system for environmental emergencies, ensuring a refined approach to emergency incident management.
Environmental Emergency Management
Indirect EnergyConsumption
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable Development
Management
IndicatorsUnit Data
TotalConsumptionof Major RawMaterials
1,000 metric tons524.2
Raw MaterialConsumption perMillion RMB ofRevenue
1,000 metric tons/Revenue in million RMB
0.139
Steel Plates1,000 metric tons488.2Flanges1,000 metric tons28Welding Materials1,000 metric tons7.9Total Paint Usage1,000 liters2069.49
The Penglai Facility Upgrades Carbon Rods andHeating Rods to Optimize Energy ManagementThe Penglai Facility adheres to the concept of energyconservation and emission reduction, actively improvingenergy utilization efficiency. In the production process,the Company strictly selects carbon rods each year,choosing durable, stable-performing, fracture-resistant,and easy-to-operate rods, which effectively improvesoperational efficiency, reduces defect rates, andminimizes energy waste caused by frequent carbon rodreplacements and rework. For the monopile weldingprocess, where the steel plates are thick and require apreheating temperature above 100°C before welding,resulting in high energy consumption, the PenglaiFacility has improved the heating rods and optimized theinternal structure to concentrate the heat source. Afterthe improvements, heating efficiency has significantlyincreased, and energy consumption has been drasticallyreduced while achieving the same preheating effect,successfully meeting the energy-saving and efficiency-enhancing goals.
Improved Monopile Welding Preheating Process
IndicatorsUnit DataTotal Water ResourcesAcquired
1,000 metric tons199.8Water Resources Acquiredper Million RMB of Revenue
1,000 metric tons/Revenue in million RMB
0.053
Of which: Total PurchasedWater Resources
1,000 metric tons188.7Of which: Total NaturalWater Resources Acquired
1,000 metric tons11.1
The Penglai Facility has established a waste watertreatment station to treat domestic waste water, whichis then used for greening and watering within theyard. Additionally, to encourage employees to activelyconserve water resources, the facility tracks waterconsumption in the canteen monthly and continuouslymonitors overall water usage to ensure the effectivemanagement and water-saving measures.To enhance the management of dust reductionwater, Fuxin Facility has implemented an internalmanagement system, About Dust Reduction Water.This system standardizes the number of dustreduction applications, water source usage, waterconsumption, and other relevant requirements toensure the rational use of water resources.
PenglaiFacility
FuxinFacility
The Company has established materials management procedures suchas theConsumables Exchange and Distribution Control Procedure
and theConsumables Control Management Regulations, which strictlymanage the distribution and recycling of materials like welding wireand flux, effectively reducing unnecessary material waste.
Raw Material Management
To improve water resource utilization efficiency and reduce waterconsumption, the Company continues to optimize its water resourcemanagement strategies. In daily operations, the Company focuses onreducing water usage by implementing water recycling, utilizing water-saving devices, and adopting water-efficient processes. For domesticwater consumption, the Company displays water conservation noticesin prominent areas to encourage water-saving actions. Additionally,through training and promotional activities, the Company strengthensemployees’ awareness of water conservation, transforming it into acollective action among all employees, creating a positive atmospherefor water resources protection within the Company.
Water Resource ManagementCase Study
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable Development
Management
The Penglai Facility is actively advancing the development of a circular
economy within the facility, with clear milestones:
Transform Cutting Waste into Practical BracketsPenglai Facility actively practices theconcept of resource recycling andreuse in production, moving away fromtraditional waste disposal methods andinnovatively recycling cutting wastesand other materials. In 2024, the facilitycreatively utilized cutting wastes anddiscarded bolts to make more than 200warning line brackets, while using platestrips to create over 50 fan brackets.
Brackets Made from Cutting Wastes
Emissions ManagementThe Company adheres to the core principle of recycling and is committed to enhancing the overall utilizationof resources. We have established a comprehensive recycling system for production waste and are activelyexploring viable pathways for waste reuse in the procurement process. By collaborating closely with oursuppliers, we aim to transform waste generated during procurement into reusable resources, thus reducingresource waste and minimizing environmental impact.
Circular Economy
The Company strictly adheres to theEnvironmental Noise Pollution Prevention and Control Law of the
People’s Republic of Chinaand other relevant laws and regulations, placing great emphasis on noise
pollution prevention and control in daily production, especially in areas pone to high noise, such as cutting
and sandblasting. A series of effective measures have been implemented to mitigate noise pollution.
To ensure the occupational health and safety of employees in high-noise environments, the Company provides
labor protection supplies on time, in accordance with national and local requirements. Additionally, the Company
continues to upgrade equipment and facilities, replacing high-noise machinery with low-noise alternatives to
reduce noise at the source. The Company also standardizes material usage procedures to lowers noise levels
in the working environment. During project construction and operations, the Company applies various noise-
reduction techniques, such as adding dampers to equipment, using the building structures for sound insulation,
installing silencers on key noise sources like fans, and strategically arranging production areas to minimize noise
overlap and spread. This year, the Penglai Facility received certification under theIndustrial Enterprise Boundary
Noise Standards(GB12348-2008) at the secondary standard level. Additionally, the noise indicators for various
projects meet the requirements outlined in theIndustrial Enterprise Boundary Environmental Noise Emission
Standards(GB12348-2008) and theEnvironmental Quality Standards for Noise(GB3096-2008).
Noise Control
The Company emphasizes fostering green office awareness by posting notices in office buildings, canteens,factory areas, and other spaces with reminders such as “turning off lights when not in use”, “energy-savingand environmental protection”. We also encourage employees to save water and paper, fostering a culture ofconservation. Additionally, the Company continues to carry out energy-saving upgrades to equipment, graduallyreplacing energy-intensive devices with more energy-efficient lighting, power generation, and other equipment toreduce energy consumption of daily operations. During the year, the Penglai Facility completed the replacementof outdoor lighting with energy-efficient (LED) lights and installed time-controlled clock lighting systems thatadjust lighting based on seasonal timing to prevent energy waste. The Zhangjiakou Facility, based on the lightingrequirements of the anti-corrosion workshop, selected high-brightness, long-lifetime LED fixtures, improving theoverall lighting quality of the workshop while significantly reducing electricity consumption.
Green Oce
by 2030, the production recycling rate will reach at least90%and by 2040,full recycling will be achieved.Case Study
Case Study
Noise Control and Safety Assurance at Penglai Facility
Grinders SilencersNoise-canceling Earplugs
for On-site Personnel
Penglai Facility has taken multipleeffective measures to addressoperational noise of grinding mills andpotential safety hazards, ensuring thehealth and work safety of employees.These specific measures include:
Installation of Silencers: The grindersare equipped with silencers to reducenoise pollution.Provision of Earplugs: Based onnoise levels, earplugs are providedto employees to further protect theirhearing.Safety During Grinding Wheel Replacement: A quick plug-in method is used to cut off the air supplywhen replacing grinding wheels, ensuring safety during the process.Through these measures, the Company is committed to providing a safer and healthier workingenvironment for its employees.Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance Data
Sustainable DevelopmentManagement
Enhancing Waste Gas Treatment Eciency Through Integrated Treatment Facilities
To effectively address the issue of volatile organic compounds (VOCs), dust, and particulatematter emissions generated during the painting and sandblasting processes and to ensurecompliance with discharge standards, the Penglai Facility has taken the following threeapproaches to improve the efficiency of waste gas treatment:
The Fuxin Facility is committed to enhancing the efficiency of industrial exhaust gastreatment by building a high-performance emission control system that ensures full-processmanagement from the source to final discharge, guaranteeing compliance with environmentalstandards:
Through the above integrated measures, the Penglai Facility has successfully enhanced itswaste gas treatment efficiency, making a positive contribution to environmental protection andsafeguarding employee health.
Improving Waste Gas Collection Eciency: For smoke and dust generated during weldingand grinding, the facility employs a combination of dust bags and filtration screens touniformly collect pollutants. This method effectively prevents the escape of waste gasesand reduces the risk of diffusion in the workshop at the source.Increasing the Variety of Waste Gas Treatment Technologies: For organic waste gases,technologies such as activated carbon adsorption, catalytic combustion, and regenerativethermal oxidation (RTO) are used in combination. Activated carbon adsorbs pollutants,catalytic combustion decomposes organic substances, and RTO technology improvesenergy utilization, significantly enhancing the waste gas treatment efficiency.Strengthening End-of-Pipe Treatment: Dust purification devices have been installedoutside the welding material drying area, effectively reducing the amount of smoke anddust levels in the workshop, further improving the work environment for employees.
Fume Control in Manual Welding Areas: In the manual welding zones of the fabricationworkshop, the facility has deployed mobile welding fume purifiers. These devices efficientlycapture welding fumes at the moment they are generated, significantly enhancing initialfume collection, minimizing pollutant dispersion, and improving the working environment.Exhaust Treatment in the Anti-Corrosion Workshop: As a key source of exhaust gases,the anti-corrosion workshop is equipped with an advanced dust and paint mist treatmentsystem. Utilizing combustion and activated carbon adsorption technologies, this systemeffectively purifies the air by significantly reducing pollutant concentrations, therebyensuring clean and safe air quality in the workshop.Exhaust Treatment for High-Energy Cutting Gases: The facility has implemented adesulfurization and drying pre-treatment process to ensure that no harmful substances areproduced during the combustion of cutting gases, achieving "zero pollution" in exhaust gasemissions and positive contribution to environmental protection.
Equipment and Process Upgrades for Comprehensive Waste Gas Treatment
Dajin Heavy Industry Major Waste Gas Emissions
Nitrogen oxide (NOx)Volatile organic compoudns(VOC)Dust
2.25 tons
82.825 tons
7.189 tons
4.93 tons
143.23 tons
34.06 tons
20242023
The waste gas emissions generated by the Company's operation mainly come from the smoke and dustproduced during cutting, grinding and welding. The Company strictly abide by theEnvironmental Protection Law,theAir Pollution Prevention and Control Law of the People’s Republic of Chinaand other laws and regulationsto ensure that the generation, collection, treatment and discharge of waste gases comply with national lawsand regulations. The Company clearly defines the responsibilities and specific requirements for waste gasmanagement during project processes.The Company reduces emissions from production and operation by installing dust prevention and purificationequipment, optimizing production processes, and strengthening end-of-pipe treatment. All waste gas are fullycompliant with regulatory standards. At the same time, the Company engages a professional third-party organizationto conduct regular monitoring and analysis of air pollutants, enablingreal-time tracking of pollutant compliance levels.
Waste Gas Management
Case Study
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable DevelopmentManagement
IndicatorsUnitData
Total Weight of General Waste Generatedtons18,105.68Total Weight of General Waste Disposedtons18,105.68Where: Total Weight of Metal Waste Recycledtons1,145.52Where: Total Weight of Metal Waste Processedby Third Parties
tons12,883.33Total Weight of Hazardous Waste Generatedtons526.31Total Weight of Hazardous Waste Disposedtons545.00
General WasteManagement
Hazardous WasteManagement
Oce and Domestic WasteManagementThe Company requires all departmentsto strictly follow the waste disposalprocess documents after wastegeneration and classify the wasteaccording to its type, transferring it tothe designated waste storage area tofacilitate recycling efforts.
The Company has set up independenthazardous waste storage roomswith scientifically reasonable layoutsand strict management measures toensure that the storage and handlingof hazardous materials pose no risk toworkplace safety or employee health.
Waste generated from daily officeoperations and employee activitiesis collected and sorted centrally.Recyclable materials are reusedwherever possible to reduce resourceconsumption and promote a greenoffice culture.
The Company strictly complies with laws and regulations such as theEnvironmental Protection Law of thePeople’s Republic of China, theWater Pollution Prevention and Control Law of the People’s Republic ofChina, theSoil Pollution Prevention and Control Law of the People’s Republic of China, theSoil and WaterConservation Law of the People’s Republic of China, theSolid Waste Pollution Prevention and Control Lawof the People’s Republic of China, theCleaner Production Promotion Law of the People’s Republic of China,theEnergy Conservation Law of the People’s Republic of China, and theMeasures for the Administration ofHazardous Waste Business Licenses. The Company strictly controls over the generation and discharge ofwaste throughout production operations to minimize environmental impact.The Company’s solid waste mainly includes general waste, hazardous waste, and domestic waste. TheCompany has developed relevant documents such as theWaste Management Standards, theWaste DisposalArea Management Regulations, and theHazardous Waste Storage and Disposal Management Regulationstostandardize the responsibilities of each link in waste disposal, clarify the requirements for recycling, storage,and disposal, and entrust qualified third parties for recycling and treatment to ensure all waste is disposedof in compliance with regulations.
Waste Management
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable DevelopmentManagement
Biodiversity Protection
The Company places great importance on the impact of its operations on biodiversity and strictly adheres tointernational and domestic laws and policy requirements, including theUN Convention on Biological Diversity andthe “Kunming Declaration”, as well as the Chinese government’sOpinions on Further Strengthening BiodiversityProtection. All business operations comply with relevant biodiversity protection standards.The Company continuously enhances its biodiversity management system by integrating biodiversitystrategies into its ESG governance framework, ensuring awareness and implementation across businessprocesses. It has issued aBiodiversity Statement, committing to the principles of sustainable development,
firmly prohibiting any activity that damages ecosystems or harms biodiversity, and actively participatingin biodiversity conservation efforts while promoting its sustainable resource use through scientificapproaches.The Company conducts thorough risk identification and hazard assessments, embedding ecologicalprotection principles throughout the entire project lifecycle. From planning and construction to operationalmanagement, strict oversight ensures the effective implementation of biodiversity protection measures,driving long-term ecological sustainability.
The Company places strong emphasis on the proactivemanagement of biodiversity-related risks and is activelyadvancing the deveiopment of a robust biodiversityrisk governance, assessment, and prevention system.Biodiversity risk identification and control mechanismsare continuously strengthened within the Company’sgovemance structure and core business processes. Forconstruction and operational activities, the Companyconducts comprehensive and scientific assessmentsto accurately identify potential impacts on biodiversitycaused by environmental pollution, natural disasters,and other factors-effectively mitigating risks atthe source.At the same time, the Company strictlyadheres to biodiversity conservation principles andfirmly refrains from conducting operations in areas ofsignificant global or national biodiversity importance.
The Company strictly follows policy guidelines relatedto ecological conservation red lines and firmly upholdsthe ecological red line protection concept. During facilitysite selection and layout planning, rigorous analysisand evaluation are conducted to ensure alignment withbiodiversity conservation requirements. Throughout theentire lifecycle of engineering and project construction,the Company actively implements measures to protectnatural habitats,wetlands, forests, wildlife corridors,andagricultural land-minimizing adverse impacts onsurrounding ecosystems and biodiversity caused byproject development and operations. At the sametime, the Company closely monitors dynamic changeswithin ecosystems located in ecological red line areasand strengthens the monitoring and management ofbiodiversity conservation conditions.
The Company actively utilizes multiple channels topromote biodiversity conservation through consistentcommunication and public outreach. It strengthensengagement with social organizations and media. whilealso expanding international exchange and cooperationin the field of biodiversity. By deeply participating inand leveraging existing global green initiatives, theCompany aims to raise awareness of biodiversityprotection among its employees, suppliers, partners,and the general public. Through diverse biodiversity-themed educational campaigns and professionaltraining activities, the Company continuously enhancesthe biodiversity knowledge and awareness of its staffand stakeholders. These efforts contribute to buildinga strong image of Dajin as an ecologically friendlyenterprise within the context of green finance andsustainable development.
ProactivePrevention andControl
Rigorous OngoingOversight
ContinuousAwarenessCampaigns
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance Data
Sustainable DevelopmentManagement
Dajin Heavy Industry Biodiversity Conservation Initiative
During the reporting period, the Company implemented strictcontrol measures in key areas such as foreign vessel waste disposaland ecological restoration for new facilities. For foreign vesselmanagement, the Company has established a comprehensive wastemanagement system and partnered with professional third-partyagencies for the treatment of oily wastewater and solid waste.These eorts ensure that vessel-generated waste is disposed ofin a timely, safe, and standardized manner, thereby minimizingenvironmental pollution to the greatest extent possible.For new built facilities, the Company applies scientic planningand strict construction management to minimize ecologicalimpact. In addition, ongoing ecological maintenance eortshave been carried out to further ensure optimal restorationresults during the operational phase. These measures reect theCompany’s strong commitment to environmental protection andits social responsibility, and further support the realization of itssustainability goals.
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsSustainable Development
Management
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Strengthening Environmental Management
| Responding to Climate Change | Environmental Key Performance Data |
IndicatorsUnit20242023
Total GHG EmissionsTon CO
e 49,639.6457,580.18GHG Emissions (Scope 1)Ton CO
e20,194.8421,174.11GHG Emissions (Scope 2)Ton CO
e29,444.8036,406.07GHG Emissions Intensity per Million RMB RevenueTon CO
e / million RMB Revenue13.1313.31Total Renewable Energy ProductionMWh686,008.35416,119.95Total Integrated Energy ConsumptionMWh133,953.76155,572.72Energy Consumption per Million RMB of RevenueMWh / million RMB Revenue35.4435.97Total Direct Energy ConsumptionMWh72,718.7991,319.56Total Gasoline ConsumptionMWh981.001,089.79Total Diesel ConsumptionMWh11,075.8517,601.37Total Natural Gas ConsumptionMWh59,038.3369,851.09Total Propane ConsumptionMWh1,623.592,777.31Total Indirect Energy ConsumptionMWh61,234.9764,253.16Total Green Electricity Consumption in Penglai FacilityMWh11,1810Total Major Raw Materials Consumption1,000 tons 524.2511.3Raw Material Consumption per Million RMB of Revenue1,000 tons/ Million RMB Revenue0.1390.118Total Water Consumption1,000 tons 199.8184.5Water Consumption per Million RMB of Revenue1,000 tons/ Million RMB Revenue0.0530.043Where: Total Water Purchased1,000 tons 188.7173.5Where: Total Water Sourcing1,000 tons 11.111.0Total General Waste Generationtons 18,105.68/Total General Waste Disposaltons 18,105.68/Total Hazardous Waste Generationtons 526.31680.20Total Hazardous Waste Disposaltons 526.31661.53
Environmental Key Performance Data
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponding to Climate ChangeStrengthening Environmental ManagementEnvironmental Key Performance DataSustainable DevelopmentManagement
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
SDGs
SocialDajin Heavy Industry has always taken product quality and service as its core pursuit,and has continuously strengthened the foundation of product management, and iscommitted to providing clients with high-quality product solutions on a continuous basis.In the production process, the Company actively builds a sustainable supply chain system,adhering to the concept of mutual benet and win-win with suppliers, and promotes therealization of sustainable development goals. At the same time, the Company pays greatattention to the legitimate rights and interests of each employee and occupational healthand safety, continuously improves the employee training and development system, activelyresponds to the needs of employees, and continues to optimize employee benets to ensurethat each employee can enjoy a fair, diverse, inclusive and safe working environment.
Quality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key Performance
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Quality Assurance
Dajin Heavy Industry insists on quality as the foundation andhonesty as the basis, and always guarantees high-quality productsand services in order to fulfill the promises to clients. The Companymaintains friendly and close contact with clients in order to accuratelyunderstand the cutting-edge needs of domestic and foreign clients forproducts and services. By perfecting the quality management system,creating a high-standard quality control process and advancedquality management concepts, adhering to the excellent quality andcontinuously optimizing the services, the Company steadily improvesits reputation and brand value.
Quality Management Policy of Penglai Facility
Quality Management Measures at Penglai Facility
Strict Product Quality Control
Establish a comprehensive qualityprocess control system implementingfull-process monitoring coveringraw material inspection, in-processquality verification, and finishedproduct testing.Establish periodicevaluation andprocess improvementmechanisms to elevateproduct and servicequality levels.
Conduct early quality planon each project, to ensurethe quality managementmeets the standards andrequirements of clients,to meet the needs andexpectations of clients.Ensure full participationof our employees inquality managementand cultivate the qualityawareness.
Utilize scientific dataanalysis methodologies toidentify nonconformitiesand improvementopportunities.
Penglai FacilityQuality Control
PolicyConsistently prioritize Clientsrequirements and expectations asthe foremost principle in qualitymanagement.
Clients First
ContinuousImprovement
Preliminary Planning
Quality Control
Full ParticipationData -driven
Aligned with the quality policy framework, the Company sets annual QHSEmanagement objectives across various functions, levels, and productionprocesses, considering workshop capacity, product types, and otherfactors. These objectives cover HSE management, facility procurementsecurity, technology and processes, production qualification rates,instrument calibration, human resources, domestic and internationalproject management, production planning, equipment and facilitymanagement, and administrative oversight. This ensures that qualitymanagement objectives are practical, measurable, and aligned with theCompany’s overall development strategy.To achieve these objectives, each department monitors, tracks, andanalyzes progress monthly. For any non-compliance, corrective measuresare developed and overseen by the Quality Management Department,which ensures improvement efforts across functional areas. Theeffectiveness of these measures is verified to guarantee the successfulimplementation of the Company’s quality management goals.
Quality Management Objectives
The Company has established a comprehensive quality management system and measures to continuously enhance product quality management,ensuring that every stage of production meets expected standards while strengthening its core competitiveness.
Quality Management System
| 01 | 02 | 03 | 04 |
Establish a robust qualityassurance system, includinginternal and external audit,system optimization, procedureimprovement, process auditand other links to ensure thatproducts and services achievethe expected results.
Establish quality KPIs, conductperiodic evaluations of KPIattainment, and implementcorrective actions to addressidentified gaps.
Conduct regular qualitymanagement training programsto enhance employees' qualityawareness and technicalcompetencies.
Develop standardized workinstructions and qualityinspection plans to monitorproduction processes,ensuring compliance withquality standards.
System BuildingMonitoring and EvaluationQuality TrainingProcess Control
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Quality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key Performance
Sustainable Development
Management
As of the end of 2024, all the Company’s long-term production facilities have been certified to the ISO 9001quality management system, ensuring consistent, high-quality control on a global scale. Additionally, according toour business characteristics the Penglai Facility has obtained multiple certifications, including EN1090 EX Class 4steel structure manufacturing, ISO3834 welding quality management system, Japanese Industrial Standard (JIS)certification-Class H, Japanese ClassNK and DNV-GL-C401 , These certifications further strengthen its qualityassurance capabilities during production.In terms of employee training, the Penglai Facility emphasizes professional skill development tailoredto actual post requirements. In 2024, one QA employee obtained a BSI three-system internal auditorcertification, four NDT employees obtained NDT competency certificates, and high-precision equipmentoperators in the QC section also successfully obtained equipment operation certifications. The growingnumber of certified staff provides a strong guarantee for improving employees’ ability and meeting qualityrequirements, and further enhances the Company’s competitiveness in quality management.
Penglai Facility Carries Out the Innovative Test of“Welding Process without Plate Flipping and Back Gouging”
The Penglai Facility actively promotes welding process innovation,carried out the “No Flip, No BackGouging” innovation test. As offshore wind power projects grow in capacity and scale, traditionalplate assembly methods in monopile foundation manufacturing face efficiency problems andsafety risks, making it difficult to meet the industry’s high-quality development demands. Toaddress these challenges, the Penglai Facility has optimized plate assembly and rolling techniquesthrough innovative research and development. While ensuring compliance with domestic andinternational industry standards, the facility successfully reduced two plate-flipping processes,significantly improving section manufacturing efficiency. Additionally, by analyzing and calculatingthe design of the single-V groove angle, it optimized the groove area and effective welding areaafter back gouging, reducing residual welding stress and enhancing structural fatigue resistanceand design lifespan. These technical innovations not only lower production costs but also greatlyenhance efficiency, ensuring high-quality and timely product delivery. This initiative furthersupports the Company’s goal of cost reduction and efficiency improvement.
The Penglai Facility encountered no major product quality risks in 2024,demonstrating the Company’s strength and reliability in quality control.
The Company is dedicated to advancing research and enhancing its production processes, continuouslydriving technological innovation and quality improvement. Through ongoing optimization of productiontechniques, it has achieved significant progress in product quality. To ensure quality management isintegrated into every stage of production, the Company actively organizes various training programs,including pre-project training, handover training, and independent quality training sessions. These initiativesnot only strengthen employees’ awareness of quality management but also enhance their professional skillsin quality control, further driving continuous improvements in product quality.
Quality Enhancement
The Company consistently integrates quality risk management throughout the entire product lifecycle. Usingsystematic risk assessment methods, the Company continuously identifies potential significant quality risks,prioritizing them based on their severity and probability of occurrence. In response to the identified risks,combined with the actual situation, the Company implements proactive and effective preventive measuresto control and reduce product quality risks during actual operations. By summarizing and generalizingproject experiences over time, the Company not only provides valuable insights for future projects butalso successfully prevents the recurrence of quality risks, improving project management efficiency andcontinuously enhancing its quality management system.In 2024, based on project risk assessments, the Penglai Facility thoroughly identified potential qualityrisks in the production and inspection processes. It revised and improved existing quality procedures andthe quality management system, updating 67 documents and adding 45 new ones throughout the year.These updates further refined quality control details and ensured the real-time effectiveness of the qualitymanagement system. Thanks to strict quality management measures and a continuous improvement controlmechanism, the Penglai Facility encountered no major product quality risks in 2024, demonstrating theCompany’s strength and reliability in quality control.
Quality Risk Prevention
Case Study
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable DevelopmentManagement
Service Enhancement
Safety Management System
Dajin Heavy Industry always prioritizes client-centered development, responding actively to client concerns withhigh service standards and standardized processes. The Company continuously strengthens cooperation withboth domestic and international clients, delivering high-quality products and services to every client.
To enhance its safety management capabilities, Dajin Heavy Industry’s headquarters and productionfacilities have developed a comprehensive safety framework. This includes theQuality and Safety Manual,HSE Risk Assessment Management Procedures, HSE Violations and Dereliction of Duty AccountabilityStandards, andHSE Monthly Evaluation Form, all aligned with the Law of the People’s Republic of China onOccupational Disease Prevention and Controland other national regulations. The Company conducts annualcomprehensive risk assessments and formulates targeted risk management measures before the start ofeach project. Prior to project commencement, risk identification is performed, and corresponding mitigationstrategies are implemented. Timely risk training and supervision are carried out based on project-specificconditions. The Company has also established the “Top Ten Safety Red Lines” and a structured safetyassessment, reward, and penalty mechanism, ensuring standardized and effective safety managementpractices. Additionally, production facilities have implemented systematic safety management systemstailored to regional and operational characteristics. Continuous employee safety education and trainingfurther reinforce workplace safety, ensuring full-process risk control and ongoing improvements in theCompany’s overall safety management capabilities.
Standardizing Service ModeThe Company has established a comprehensive pre-sale, sale, and after-sale service process. Theheadquarters' domestic marketing center, overseas business division, and project departments,both domestically and internationally, follow this process. Through initial research, real-timemonitoring, and regular communication, the Company has created a clear, complementary servicemanagement model that provides high-quality service to clients across various regions.Improving Service ProcessTailoring its approach to different types of overseas business, the Company conducts marketresearch and risk assessment while regularly gathering client needs and feedback. The Companyprioritizes client concerns, fostering strong partnerships with clients. For domestic operations,a well-established service process ensures prompt responses to client inquiries and needs.Additionally, the Penglai Facility has developed tools like theProject Process Work Planning Chart
andAfter-sales Service Management Regulationsto continually optimize service quality, aligningwith the Company’s strategy and overall business objectives.Protecting Client’s Rights
The Company values client feedback and protects their interests across all areas. By using toolslike theClient Complaint Information Registration FormandClient Satisfaction Questionnaire,the Company regularly collects and analyzes feedback, providing efficient, high-qualityresponses. Clients' issues with products or services are promptly addressed, and the Companymaintains regular visits to better understand their needs and improve service quality. In 2024,with perfect service mechanism and high quality client experience, the Company earnednumerous honors from its partners, such as “Class A Qualified Supplier” and “Most PotentialPartner”, further highlighting Dajin Heavy Industry’s excellence in client service.
Production SafetyDajin Heavy Industry prioritizes production safety as a fundamental pillar of enterprise development, strivingto establish a scientific, comprehensive safety management system and a strict safety control framework. TheCompany ensures end-to-end safety coverage, from raw material procurement to final production delivery,clearly defining safety responsibilities at all levels. Regular safety inspections and risk assessments are conductedto maintain a secure and controlled production process. Additionally, the Company emphasizes employeesafety awareness and emergency response preparedness. Regular safety training sessions and practicalemergency drills equip employees with the necessary skills to handle emergencies effectively. These initiativesenhance workplace safety literacy, improve on-site response capabilities, and reinforce a strong safety culture.By continuously refining its safety management practices, Dajin Heavy Industry has built a solid foundationfor stable production operations, fostering a safer environment for employees, clients, and society. TheCompany’s commitment to safety excellence is reflected in its achievement of ISO 45001 Occupational Healthand Safety Management Systems, demonstrating its adherence to international safety standards and ongoingimprovements in safety management.
In 2024, there were no major safety incidents at any of
the Company's production facilities.Performance
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key Performance
Sustainable DevelopmentManagement
蓬莱基地生产安全保障措施
Install AEDs acrossproduction facilities to ensureprompt emergency responsefor cardiac incidents,effectively reducing life-threatening risks associatedwith sudden cardiac arrestamong workforce.
Establish a 24/7 emergencyhotline to ensure immediateaccess to emergencyresponse teams forproduction personnel duringcritical incidents at any time.
Deploy dedicated emergencyresponse vehicles equippedwith essential medicaldevices and staffed bycertified personnel to ensureimmediate on-site emergencycare and medical evacuation,thereby enhancing rescueoperational efficiency.
Deploy certified first-aidpersonnel holding Red CrossFirst Responder credentialswith medical training to ensureaccurate on-site assessmentand treatment, guaranteeingeffective emergency responseoperations.
Penglai FacilityProduction Safety
Management
Measures
Dajin Heavy Industry’s TP-less Monopile Project Achieves 500,000 Working
Hours with Zero LTI(Lost Time Injury)On August 20, 2024, the TP-less monopile project for Denmark’sThor offshore wind farm, constructed by Dajin Heavy Industryat its Penglai Facility, successfully reached 500,000 work hourswith zero LTI. To celebrate this outstanding achievement,representatives from the overseas client visited the PenglaiFacility, joining the project team to mark this significantmilestone and present an award to the Dajin Thor Project Team.This milestone not only highlights the Company’s continuousbreakthroughs in production projects but also demonstrates itsremarkable achievements in safety management, high-qualitydelivery, and teamwork.
Thor Project Celebrates 500,000 Safe Working Hours
500,000 Safe Working HoursPlaque Awarded by the Clientof Thor Project
Safety Management and Security
In 2024, Dajin Heavy Industry conducted a thorough investigation of potential safety risks across allproduction processes. At the Penglai Facility, a permit-based approval system for high-risk operations wasimplemented in accordance with HSE system requirements. This involved issuing and approving 1,085safety work permits while enforcing strict risk control measures. Additionally, safety risk identification andassessment processes were upgraded 11 times, leading to the improvement of 16 safety risks and theircorresponding preventive measures. To further enhance safety management, Penglai Facility carried outover 240 specialized safety inspections, identifying and rectifying 21,850 safety violations. These proactivemeasures significantly strengthened risk control and ensured a safe and stable production process.Throughout 2024, the Company achieved approximately 3 million safe working hours across major projects,including NOY monopile, Thor monopile, NSC monopile, WAK monopile, SGRE offshore tower, and GEoffshore tower. All projects successfully met the safety targets of “zero casualties and zero environmentalpollution”. Notably, the owners of the NOY project in France and the Thor project in Denmark awarded theCompany commendation medals, recognizing its outstanding safety management performance.
Case Study
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable DevelopmentManagement
Developing Employee Safety AwarenessThe Company has always regardedsafety culture as a key component of ESGgovernance, continuously enhancingemployee safety awareness and capability.Each production facility strictly adheresto the Company’s safety philosophyand actively organizes diverse safetyactivities and incentive programs, suchas Production Safety Month, milestonerewards for safe working hours, monthlyawards for outstanding team leaders andsafety officers, and recognition for excellentsafety observation cards. In addition,regular company-wide safety trainingsessions are conducted to reinforceemployees’ awareness of production safetyand instill a strong safety-first mindset.These initiatives effectively encourageproactive employee participation insafety management, providing a solidfoundation for the Company’s sustainabledevelopment.
Penglai Facility to Carry Out Special Rectication of Safety Work in 2024To further enhance the Company’s safe production environment and create a secure and healthyworking atmosphere for employees, in 2024, Penglai Facility carried out special safety rectificationwork. By upgrading the electrical control systems of 12 self-produced welding platforms, evaluatingand optimizing the position of platform lifting guide wheels, setting up dedicated charging stations,and standardizing the use of cylinder joints in the Structure I workshop, the safety of productionoperations has been effectively improved, and various safety hazards have been successfullyeliminated to ensure the steady progress of production work.
In 2024，Penglai Facility places great emphasis on safety training andstrictly adheres to HSE management requirements. In 2024,it conducted 467 entrance safety training sessions for newemployees and off-site subcontractor personnel, training atotal of 1,641 people. Additionally, it organized 62 sessionsof daily safety training, internal pre-service training, andspecial position assessments, covering 2,266 participants.The facility also held 162 specialized safety training sessions,training 2,800 employees, significantly enhancing theirsafety awareness and operational skills.To strengthen emergency response capabilities, PenglaiFacility conducted 12 emergency drills with 280 participants,improving employees' ability to handle emergency situationsand ensuring safe and controlled production operations.Throughout the year, Penglai Facility carried out 260 safetyinspections, identified 21,850 potential safety hazards, andsuccessfully completed corrective actions, further reinforcingworkplace safety and risk prevention.
Penglai Facility Launches Online HSE Observation Card Filling SystemTo further improve the on-site safety supervision and management, andto encourage employees to actively participate in safety management,Penglai Facility launched an online HSE observation card filling systemin 2024. Employees can quickly fill in the observation data by scanningthe QR code through WeChat on their cell phones, which is easy andfast to operate. The facility regularly conducts statistical analysis ofHSE observation data to identify weak points in safety managementand provide a strong reference for subsequent safety managementdecisions. The system is in use, not only reduces the cost of safetymanagement, but also promotes the construction of the Company’ssafety management informatization, and effectively improves theCompany’s safety management capability.
Penglai Facility HSEObservation Card
Penglai Facility conducts safety incentives and awards
Penglai Facility Conducts SafetyEmergency Drill
Penglai Facility Conducts Safety Knowledge and Skills Training
Penglai Facility Conducts Falling Prevention Safety
Experience Event
Case StudyCase Study
Performance
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Quality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable DevelopmentManagement
Employee Rights and Benets
Dajin Heavy Industry has always adhered to the development concept of people-oriented and regarded employees as the core assets of enterprise development. The Company insists on equal employment, protects allrights and interests of employees, pays attention to the health and safety of employees, and effectively cares for employees. We are committed to creating a fair, inclusive and safe working environment for our employees,and promoting the common growth of employees and the Company.
In 2024, The employee social insurance coverage rate is
99%
Daijin Heavy Industry’s Internal Communication Mechanism
Conven the first EmployeeRepresentative Congress,during which theEmployee RepresentativeCongress Charter wasreviewed and adopted,ensuring that employeescan fully participate indecision-making.
Conduct real-timecommunication,collaboration and filesharing within theCompany throughenterprise platforms likeWeCom and DingTalk.
Conduct dailycommunication via theinternal email systemto exchange workinformation, provideupdates, and addressissues with colleaguesand supervisors.
All departments conductregular meetings toreview work progress,discuss plans andaddress issues,effectively enhancinginternal communicationand collaboration.
EmployeeRepresentative Congress
Instant Messaging ToolsInternal Mail SystemDepartment Meeting
Adherence to Equal EmploymentProtecting Employee Rights and Interests
The Company strictly complies with relevant domestic and international lawsand regulations in all its operational locations. It has developed theEmployeeHandbookand theLabor and Human Rights Management Mannual, and adheresto the principles of fairness, impartiality, and transparency to standardize itsrecruitment policies and ensure the full protection of employees' rights. TheCompany provides equal employment opportunities to female employees,overseas employees, ethnic minority employees, and other special groups. TheCompany firmly opposes all forms of workplace discrimination and is committedto building a diverse and inclusive career development platform, effectivelysafeguarding the equal rights and interests of all employees.
The Company attaches great importance to the protection of employees’ legitimate rights and interests bycontinuously enhancing its compensation and benefits system. During traditional festivals and holidays, theCompany regularly provides benefits to all employees, effectively enhancing their sense of fulfillment andhappiness. Additionally, the Company regularly offers professional health check-ups and occupational diseasescreenings, with special focus on employees in hazardous positions to ensure their physical and mental health.To uphold fairness, the Company has established a dedicated complaint hotline and mailbox for reportingcomplaints, allowing employees to report discrimination or unfair treatment verbally or in writing. The Auditand Supervision Center conducts thorough investigations and responds within 15 days. If employees aredissatisfied with the outcome, they may escalate their complaints to the labor department. Proven violationsresult in legal penalties for responsible parties, with timely feedback to affected employees. By maintainingopen feedback channels and valuing employee input, the Company continuously improves its managementpractices, safeguards employees’ legal rights, and fosters a fair and harmonious working environment.
Distribution ofManagementStas in DajinHeavy IndustryMale Management StaffFemale Management Staff
Dajin Heavy Industry had a total ofemployees1,964
The workforce also includesethnic minority employees anddisabled employee1381
among which 388 were female employees,accounting for approximately 19.9%
1,558 were male employees,accounting for approximately 80.1%
In 2024,
fully reflecting the Company’s commitment to diversity and inclusion in its recruitment and employmentmanagement practices Dajin actively provides equal development opportunities and career platformsfor all employees.
Performance
Performance
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Quality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable DevelopmentManagement
The Panjin Facility Conducts Systematic Trainings Throughout the YearIn 2024, the Panjin facility conducted a year-round systematic training program with the coreobjectives of “consolidating the foundation, improving skills, and building an elite workforce”.The training focused on key areas such as corporate culture promotion, safety productionstandards, job skill enhancement, and sustainable development concepts. The facilityimplemented a training approach that combined theory with practice, ensuring that employeesquickly integrated into the team and mastered job skills. This provided strong talent supportfor the efficient commissioning and sustainable operation of the new base. A total of 8,785training hours were completed throughout the year, with a training pass rate of 100%.
Penglai Facility Leverages “Employee Skills Matrix” for Customized TrainingsTo continuously enhance employee skilllevels, the Penglai Facility utilizes theEmployee Skills Matrix as an assessmenttool, aligning training programs withjob function requirements and surveydata. This approach enables thedevelopment and implementation of anannual targeted training plan to improveemployee competencies. In 2024, thebase conducted 141 training sessions,totaling 360.5 training hours. Additionally,to meet the increasing qualifications and
Penglai Facility Conducts ProjectManagement Basic Knowledge Trainingsprofessional standards required by overseas clients, the base supported 36 employees in obtainingexternal professional certification. This not only fulfilled client expectations but also enhancedemployees’ expertise and career development prospects. By strengthening its talent foundation,Penglai Facility is contributing to the Company’s global expansion and ESG capability development.
The Fuxin Facility Conducts Professional Trainings to
Comprehensively Improve Skill LevelsIn order to improve employees’ business skills and personal qualities, and strengthen the talentteam, the Fuxin Facility based onEmployee Training Management MeasuresandEmployeeSkill Matrix Management System, combined with the actual needs of each department andemployees’ skill short boards, scientific planning and precise implementation of professionaltraining. The training content covers management knowledge and skills, quality and technicalprocess improvement, occupational health and safety and company system, etc. In 2024, theFuxin Fcility has carried out 32 times of competence improvement training, 9 times of jobstandardization training, 11 times of company system and staff career development training,totaling 273.5 hours. Through scientific and systematic training, it ensures that the trainingcontent is closely integrated with business development, employee growth and ESG objectives,continuously strengthens the talent team construction, and effectively improves the qualityand skill level of employees.
Enhancement of Employee CompetenciesThe Company has established a systematic training system, based on the Employee Training Management Measures, through internal training, externaltraining and external boarding diversified training forms, regularly provide professional, technical and skills training for employees. The Company focuseson the comprehensiveness and practicability of the training content to help employees continuously improve their knowledge reserve and skill level,enhance their career competitiveness and development potential, and endeavor to provide employees with comprehensive career growth opportunities.Case Study
In 2024, the Fuxin Fcility has carried outtimes of competence improvement trainings
times of job standardization trainings
times of company system and staff career development trainings
hours
273.5
totaling
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key Performance
Sustainable DevelopmentManagement
Dajin Heavy Industry Employee Career Development PathsPerformance-based Grade System---Performance as the core basis and evaluation criteria for promotion
Diagram of Position Levels
Various Types of Positions with Dierent Sequence
Senior LevelMiddle-Senior LevelMiddle LevelJunior Level
ManagementProfessional Technology Operation
Grade Design Philosophy
Promotion Rules
Broaden job grading structure to expand promotion opportunities.Same position, different levels. Same levels, different salary. Salary ranges with overlapping levels.Clear and well-defined job levels to provide employees with transparent career goals.Candidates must not have any subpar performance ratings (annual or semi-annual) to qualify forpromotion or grade advancement.Employees with 'S' performance ratings are eligible for promotion the following year. If no highergrade exists for their current position, they shall receive a salary band adjustment to maintainincentive effectiveness.Employees with 'A' performance ratings shall receive priority nomination for promotion/gradeadvancement, subject to final qualification review.Employees with 'B' performance ratings may be nominated for promotion based on merit, pendingcomprehensive corporate evaluation.Outstanding performers in virtual organizations may receive independent promotion/advancement nominations through a dedicated evaluation channel.
Level 24-21, Chairman, President, Senior Vice President,Vice President
Level 20-18, General Manager, Deputy General ManagerLevel 17-14, Director, Manager, Deputy ManagerLevel 13-11, Supervisor, Commissioner
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Quality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key Performance
Sustainable DevelopmentManagement
Caring for Employees
The Company is dedicated to fostering a “Happy Workplace” by providing a comfortable office environment, scientifically reasonable task allocation, and effective overtime management, ensuring the physical and mental well-being of employees.Additionally, the Company actively encourages employees to participate in team activities and interactive experiences, fostering a positive and uplifting work atmosphere. To help employees better cope with work and life pressures, the Company regularlyorganizes mental health education and discussion activities to improve employees’ psychological resilience and stress-coping abilities. For female employees, the Company strictly adheres to regulations on pregnancy, maternity, and breastfeeding leave,while also providing dedicated mother-and-baby rooms to protect the special rights and interests of female employees. Furthermore, the Company conducts regular employee satisfaction surveys, implements a rapid response mechanism to promptlyincorporate employee concerns into management decision-making. Through these actions, the Company demonstrates its commitment to valuing employee and continuously enhancing their sense of belonging and well-being.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Quality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable DevelopmentManagement
Responsibility for GoodThe Company is dedicated to building a sustainable supply chain by continuously supporting localcommunity development and fostering long-term, stable partnerships with suppliers. Through these efforts,the Company actively promotes local economic growth, encourages the sustainable development of itspartners, and fulfills its corporate social responsibility.Promoting Sustainable Supply ChainsThe Company has established a comprehensive supplier management system to strictly ensure thatsuppliers meet high standards in environmental, social and governance aspects. Through regular trainingand assessment, the sustainable development capability of suppliers is continuously improved.
Dajin Heavy Industry Supplier Management Measures
Each of the Company’s production bases, in line with national laws and regulations, the Company's strategicdeployments, and regional operational characteristics, has systematically developed standardized managementsystems such as the “Procurement Control Procedure” and “Tender Management Measures”. These systemsensure that procurement activities comply with ESG governance requirements, achieve transparency,standardization, and traceability in the procurement process, and ensure fairness, justice, and objectivity inprocurement decisions. The Company continues to enhance the compliance level and sustainable developmentcapacity of supply chain management. In 2024, the Company received no customs penalties in its import andexport business, and the timeliness and accuracy of imports and exports were 100%.
| 03 | 02 |
Refinementof suppliermanagement
Develop theWind Power Materials Supplier Directory, Marine Equipment Supplier Directory, andWind Energy Logistics Provider Directoryto establish a categorized supplier database, effectivelyidentify supply gaps, and formulate targeted development plans.
Refinement of supplier processmanagement, the implementation of keyprojects, urgent projects, risk supplier SQEmanagement, identification of productionprocess delivery, quality and businessrisks; through outsourcing parts processmanagement, problem analysis, thedevelopment of corrective and preventivemeasures, tracking and verification andlanding, and effectively enhance thesupplier delivery qualification rate.Standardize qualification managementfor all supplier categories byestablishing a supplier onboardingframework to ensure only compliantsupplieres gain access.
the timeliness andaccuracy of imports
and exports were100%In compliance with relevant laws and regulations, the Company has established a comprehensive supply chaincompliance framework. This includes theCode of Conduct for Supplier Procurement Personnel, theCode of Conductfor Bidding of the Supply Chain Management Center, theProcurement Risk Compliance Management System of theSupply Chain Management Center, and theAssessment and Management Measures for Supply Chain ManagementCenter Operational Personnel. To strengthen governance, the Company has developed a new compliance system,implemented three lines of defense, and refined a three-tier management structure. By systematically integratingprocess optimization, comprehensive risk management, regulatory development, personnel training, and riskawareness, the Company has built a robust internal control and compliance system for its supply chain. With acommitment to “Standardized practices, coordinated operations, transparency, integrity, and efficiency”, the Companystrives to create a responsible and well-governed supply chain. These efforts drive continuous improvement incompliance, operational excellence, and sustainable supply chain development.
Improving Supply Chain System Building
The Company conducts out strict risk assessment of suppliers, and continuously monitors the qualification rate ofproduct quality, timely delivery rate, price level and service quality of suppliers according to the Management Measuresfor Supplier Performance Evaluation. We conduct supplier performance evaluation once every six months, fill out andapprove the semi-annual performance evaluation form of each supplier, and according to the evaluation results, wewill conduct four levels of hierarchical management for suppliers, namely “A, B, C, D”, and eliminate those suppliers whodon’t meet the requirements, so as to comprehensively improve the comprehensive ability of suppliers, further controlthe risk of supply chain operation, and make every effort to build an efficient and sustainable supply chain. In orderto further strengthen supply chain management, the Company’s production facilities have formulated a scientificsubcontractor assessment and review mechanism based on project characteristics and operational requirements.Through the implementation of hierarchical classification management, the establishment of a dynamic assessmentand evaluation system, and the strict implementation of the exit mechanism for unqualified subcontractors and othermeasures, the Company has effectively guaranteed the quality control and progress management of the projectconstruction and ensured the high-quality and sustainable development of the project.In 2024, the Company upgraded the “Supplier Development and Access Management Measures”. Adhering to theprinciples of “fairness, justice, and transparency”, the Company focuses on three core supplier categories: wind powermaterials, marine equipment, and logistics transportation. Through rigorous document review and on-site inspection,and by referencing the OECD “Guidelines for Multinational Enterprises on Responsible Business Conduct”, theCompany gradually improves the content of supply chain due diligence. The Company is building an access system thatcovers ESG risk assessments across the entire lifecycle, with a particular focus on key indicators such as environmentalcompliance records (including the “Self-Declaration of No Use of Conflict Minerals”), carbon emission intensity, andresource recycling rates, ensuring that environmental risks within the supply chain are controllable.
Enhancing Supply Chain Management
In 2024, the Company received no customspenalties in its import and export business
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable Development
Management
Dajin Heavy Industry Green Supply Chain Management Measures
In 2024, the Company focused on ESG governance, clarifying the key responsibilities of each position insupply chain development and setting measurable sustainable performance indicators. Through a company-wide sustainable development capability assessment, the Company accurately identified personnel withskill gaps and implemented targeted ESG-specific training. This approach promotes team sustainabletransformation through compliance assessments and capability reshaping. The Penglai Facility, with theGreen Supply Chain Management Measures as its core framework, carried out green supply chain awarenessinitiatives for all employees. Through internal specialized training, the procurement team's professionalcapabilities were enhanced. At the same time, the facility provided training resources to suppliers,established a learning progress tracking and performance evaluation mechanism, and promoted continuousimprovement of the overall ESG performance of the supply chain. Through these measures, the PenglaiFacility has provided solid support for achieving its green transformation goals, ensuring the sustainabilityand green development of its supply chain.
Dajin Heavy Industry Supplier Management Measures
01-Establish a supplier access mechanismFormulate strict supplier access standards to ensure that all suppliers undergo qualification review beforecooperation;Set up the supplier information database, record the performance, reputation and compliance of suppliers.02-Establish a supplier inspection and integrity campaign mechanism
Formulate the supplier inspection mechanism, clarify the inspection standards, procedures, archiving andfiling regulations.In the process of business investigation and negotiation, the supervision and personnel shall clarify to thesupplier the procurement requirements and the serious consequences of violating the relevant integrityagreement, and keep the recording and video of the process.03-Implement supplier training and awareness programsRegularly publicize the companys clean culture and values to suppliers.Make and distribute the Transparent Dajin Handbook to ensure that suppliers understand the Company’santi-corruption policies.04-Strengthen contract managementClarify the integrity clause in the contract.A multi-department contract performance supervision mechanism shall be established to ensure thetransparency and fairness of the contract execution process.05-Redeling the reporting and feedback mechanismEncourage internal employees and external partners to report unhealthy practices, and open up thereporting channels for the whole process.Conduct timely investigation into the reported information, and take corresponding measures for theviolations.06-Promote cost reduction and eciency enhancementThrough technical communication, flow and cooperative innovation with suppliers, to achieve costreduction and efficiency enhancement.
Green Supply Chain Management Measures
Conduct specializedtraining for employees ontheGreen Supply ChainManagement Measures.
DeliverGreen Supply ChainManagement MeasuresandSelf-Declaration with conflictmineralsto 19 suppliers andrequire suppliers to conductinternal training.
The procurement e-platformrequires suppliers to submitdocumentation includingISO14000 EnvironmentalManagement Systemcertification during thesupplier qualification phase.
Internal LearningExternal SupervisionPlatform Control
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable Development
Management
Dajin Heavy Industry Organized the “Student Workplace Experience Day” on August 25, 2024
Contribution to CommunityDevelopment
Dajin Heavy Industry actively participates in local community buildingand development, supporting education and charitable causes, andis committed to promoting the comprehensive progress of society.The Penglai Facility has signed a university-enterprise cooperationagreement with local universities, becoming an educational practicebase for these institutions. Both parties adhere to the principles ofcomplementary advantages, resource sharing, mutual benefits, andcommon development. This collaboration model provides a platformfor interaction and mutual growth between the facility and theuniversities, further promoting the development of local education.At the same time, in the fall of 2024, the Panjin Facility also partneredwith Dalian Ocean University and Dalian Maritime University to launchcampus recruitment positions, offering more job opportunities to freshgraduates. This initiative fosters connections and training opportunitiesbetween university students and the Company. Looking ahead to 2025,Dajin Heavy Industry plans to establish specialized campus recruitmentpositions in departments such as technology, quality, and production,along with corresponding training programs. This will further deepen thecooperation with local universities in the areas of technology, education,and talent development, contributing to both local education and thesustainable development of the Company.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable Development
Management
Social Key Performance
IndicatorsUnit20242023Total number of employeesperson(s)1,9461,640Total number of female employeesperson(s)388331Total number of male employeesperson(s)1,5581,309Total number of full-time employeesperson(s)1,9361,640Total number of part-time employeesperson(s)100Total number of employees from ethnic minoritiesperson(s)138114Total number of employees from vulnerable groups person(s)10Total number of new employeesperson(s)660524Number of work-related injuries recognized by the local Human Resourcesand Social Security Bureau
person(s)117Number of work-related fatalitiesperson(s)00Total work-related injury rate%00Number of personal injury accidents per 1,000 tons of productiontime(s)/per 1,000 tons of production0.0250.023Total work hours lost due to work-related injurieshour(s)5,3661,900Total employee turnoverperson(s)591380Total employee turnover rate%32.96%25.20%Total employee training hourshour(s)20,85115,662Total number of suppliers*case(s)1127134*Note: This year, the scope of supplier statistics has signicantly expanded compared to last year. Last year's scope covered key collaborative suppliers, while this year, it includesthe addition of the Panjin Facility and extends to all suppliers involved in transactions during 2024.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsQuality AssuranceProduction SafetyEmployee Rights and BenefitsResponsibility for GoodSocial Key PerformanceSustainable DevelopmentManagement
SDGs
Governance
Dajin Heavy Industry upholds the management philosophy of “Compliance and Integrity”,continuously rening its corporate governance, strengthening internal controls, andensuring all business activities comply with laws, regulations, and industry standards.Striving to safeguard stakeholders’ rights and interests, the Company takes integrity,transparency, and standardization as its core values, integrating them into daily operationsto achieve a win - win situation for all parties. The Company is committed to fostering acorporate culture of high-standard, one that is deeply rooted in strong business ethics andcompliance, This culture serves as a driving force for Dajin Heavy Industry, enabling it topursue long-term sustainable growth. This approach not only enhances the Company’sindustry reputation but also provides reliable protection for stakeholders, laying a solidfoundation for its stable development in both domestic and international markets.
Responsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key Performance
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Responsible Governance
Dajin Heavy Industry continuously promotes the modernization ofits corporate governance system and governance capabilities. TheCompany comprehensively strengthens scientific governance andstandardized operations, conscientiously discharges its informationdisclosure obligations, innovatively conducts investor relationsmanagement work, and actively defends investors' legitimaterights and interests. Dajin Heavy Industry, dedicated to building aregulated and transparent listed company, adheres to the tenets ofstandardization and transparency.Corporate Governance Structure
Dajin Heavy Industry strictly adheres to theCompany Law of thePeople's Republic of China, theSecurities Law of the People'sRepublic of China, and other relevant laws and regulations, as wellas governance guidelines such as theCode of Governance forListed Companies in Chinaand theRules for Listing of Stocks on theShenzhen Stock Exchange. The Company has established a robustgovernance structure to ensure the standardized operation of theCompany. The Company follows an operation mechanism with “ThreeBoards and One Management”, comprising the General Meeting ofShareholders, the Board of Directors, the Supervisory Committee,and senior management. Each entity operates within its designatedrole and exercises its allocated power, ensuring effective checksand balances among decision-making, supervision and operationmanagement, providing scientific governance guarantee for theCompany.This system enhances oversight, fosters accountability, andsupports the Company's stable and sustainable growth.The Board of Directors oversees four specialized committees: theStrategy and Sustainability Development Committee, Audit Committee,Nomination Committee, and Remuneration and Evaluation Committee.These committees assist the Board of Directors in key governance areas,including strategic planning, audit oversight, executive appointments,and performance evaluation, ensuring efficiency and transparency incorporate operations. Additionally, the Company prioritizes diversity ingender and backgrounds within its Board of Directors and managementteam. This diverse composition strengthens the comprehensiveness ofdecision-making, enhances risk management capabilities, and ensuresscientific and reasonable decision-making and well-informed, adaptivestrategies in a dynamic market environment.
In 2024,
Dajin Heavy Industry Management Structure
General Meeting of Shareholders
Board of Directors
Senior Management
Supervisory Committee
Strategy and SustainableDevelopment CommitteeAudit CommitteeNomination Committee
Remuneration and Evaluation Committee
Performance
Board CompositionIn 2024, the Company’s Board of Directors comprisedmembers, including
female directors.Board MeetingsIn 2024, the Company held a total ofBoard meetings and
specialized committee meetings,ensuring scientific and efficient decision-making.Revision and Formulationof Company Policies
In 2024, the Company revised and formulated
new policies, further improving its internalmanagement system and continuously optimizing its corporate governance structure.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Responsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key Performance
Sustainable DevelopmentManagement
In 2024,
A total cash dividend ofmillion RMB was distributed
The Company heldgeneral meetings of shareholders
Protecting Shareholders' Rights and InterestsDajin Heavy Industry has always adhered to the principle of legal compliance and, continuously refining its investorrelations management framework. in accordance with relevant laws and regulations such as the Company Law of thePeople’s Republic of China, the Securities Law of the People’s Republic of China, and the Rules Governing the Listingof Stocks on the Shenzhen Stock Exchange, formulated and revised the Measures for the Management of InvestorRelations. We adhere to the principles of full and compliant information disclosure, equal opportunities for investors,and honesty and trustworthiness. We are committed to providing high-quality services to investors, respecting theirrights and interests, and driving the maximization of both corporate value and shareholder returns.The Company strictly complies with the requirements of laws and regulations such as the Securities Law ofthe People’s Republic of China, the Rules for General Meetings of Shareholders of Listed Companies andother relevant laws and regulations, standardizing the procedures for convening, holding, and voting at thegeneral meetings of shareholders. This ensures that all shareholders enjoy equal status and rights, whilefulfilling their corresponding obligations. Through these measures, we safeguard shareholders’ legitimaterights and interests, and ensure the standardization and transparency of corporate governance.
Information DisclosureDajin Heavy Industry strictly adheres the Rules for the Listing of Stocks on the Shenzhen Stock Exchange and theSelf-Regulatory Guidelines No.1 for Companies Listed on the Shenzhen Stock Exchange – Standardized Operationof Main Board Listed Companies, and other relevant laws, administrative regulations, and regulatory guidelines.The Company diligently fulfills its information disclosure obligations in accordance with its Information DisclosureManagement System, ensuring that all disclosed information is true, accurate, timely, and complete.To keep investors and the public well-informed, the Company disseminates relevant information through multiple channels,including annual reports, quarterly reports, and other regular disclosures, as well as social media platforms such as WeChat.These efforts have significantly expanded the reach of the Company's information and enhanced its accessibility, enablingstakeholders to stay up to date with the Company’s developments in a timely and comprehensive manner.At the same time, we remain committed to improving information transparency by providing investors withmore diverse and convenient access to Company-related information. These initiatives, by strengtheningcommunication and fostering trust between the Company, its shareholders, and the public, continuouslyenhance corporate transparency and engagement.Protection of Creditors' Rights and Interests
Dajin Heavy Industry is committed to safeguarding not only shareholders’ rights and interests but also thelegitimate rights of creditors. During the reporting period, the Company strictly fulfilled its debt repaymentobligations, ensuring that all loans were repaid on time with no overdue payments. Upholding the principlesof integrity and responsible financial management, the Company strives to maintain strong, trust-basedrelationships with creditors. Through prudent fund management and robust risk control measures, the Companysafeguard creditors’ interests and thereby ensures financial stability and transparency. These efforts reinforcethe Company’s long-term financial health and its reputation as a reliable and trustworthy business partner.
Performance
In 2024,
Responded to interactive e-platformtimes
heldperformance briefings
issuedlong charts of performance
Performance
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key Performance
Sustainable DevelopmentManagement
Law review ledger
For the contracts, agreements,letters, letters of guarantee andother legal documents appliedfor legal review by each center/ department, they shall beregistered and managed (time,matters, belonging department,docking person, revisionfrequency, etc.).
Intellectual propertyrights ledgerEstablish an intellectual propertyledger within the scope of thegroup and update it regularly.Strengthen the dynamicsupervision of matters relatedto trademarks and patents toprevent potential risks.
Equity investment ledger
Establish an equity investment ledgerwithin the scope of the group andupdate it regularly. Strengthen thedynamic supervision of matters relatedto changes in equity investments.Provide timely risk warnings accordingto the development and changes ofthe company's business to preventpotential risks.Standardization of Contracts/LegalDocuments and Regular UpdatesWind power project EPC contractConfidentiality agreement in Both Chinese andEnglish versionsJoint venture company, joint venture platformcompany cooperation agreementArticles of association applicable to differentsituations (three copies)Relevant templates related to the contractmodification and terminationNew energy outsourcing technical service contractVacation shipping contractMWS outsourcing agreement, bracket binding designoutsourcing agreement
Standardized investment managementFormulate reference texts for resolutions of theshareholders' meeting, board of directors, and board ofsupervisors and usage instructions, and strengthen post-investment compliance management. Distinguish betweenwholly-owned companies and joint venture companies, andformulate resolutions of the shareholders' meeting, boardof directors, and board of supervisors, articles of association,amendments to the articles of association, etc. underdifferent circumstances, including company establishment,capital increase, personnel changes, changes in businessscope/registered address, and company cancellation.Formulate operation guidelines and key points for matterssuch as industrial and commercial registration, change,record-filing, and cancellation.Dajin Heavy Industry Compliance Management MeasuresDajin Heavy Industry Internal Control Program
Internal Control Function Positioning: Driver of processand rule establishment, Risk identifier and aggregator,Enabler of risk management capability enhancement forbusiness units/functions.
Internal Control Objectives: Facilitate all departments toprogressively establish and continuously improve businessmanagement rules, Prevent operational issues caused byabsent or inadequate management rules.Overall Strategy:
ManagementCapabilityExternally: Provideclear value and positive guidanceInternally: Provide clearguidance toform a resultant force
Standardization
Explain the working method and value of internal control explicitlyIdentify the key points of the business side, and leverage the businessthrough work value, actual cases and phased overall evaluationClear internal value orientation, aiming to improve the coverage andintegrity of rulesClear internal and external output caliber and qualityClear scatter and system promotion standardsClear the standard results and template applications
Compliance System Building
Dajin Heavy Industry places great emphasis on building a robust legal compliance system. In pursuit of this objective,the Company has established the Dajin Heavy Industry Legal Work Management System and the Dajin Heavy IndustryLegal Dispute Management System, and carried out a structured division of responsibilities based on the uniquecharacteristics of each business sector and the expertise of legal professionals. Through the continuous constructionand continuous improvement of this system, the Company strengthens its comprehensive compliance managementframework, ensuring that all business operations are conducted in a standardized manner within the legal framework.This proactive approach minimizes legal risks and supports the Company’s long-term, sustainable development.
Internal Control and Risk ManagementDajin Heavy Industry adheres to making efforts in both internal control and risk prevention, which mutually promoteeach other, and continuously promotes the comprehensive risk management work to a deeper level to ensure thatrisk management is highly integrated with the business. The Company focuses on improving its ability to prevent andrespond to risks. In four key areas, namely, the establishment of procurement bidding projects, bidding supervision,procurement payment and tracking, and inventory management, the Company implements real-time internal controlsupervision, which effectively ensures the compliance of the Company’s operations and the level of risk control.The Company emphasizes the initiative of compliance and risk control management and focuses on pre-eventprevention. In daily business, by combining diversified means such as process and email review, consultation andanswers, meeting participation, negotiation support, legal popularization, and due diligence investigation, etc., theCompany effectively integrates risk identification, assessment, and prevention and control into every business link toensure that the compliance review is comprehensive without omission and to minimize potential risks.In terms of dispute resolution, the Company always adheres to safeguarding its rights in accordance with the law,strives to reduce economic losses, and firmly protects the Company’s legitimate rights and interests. At the same time,in the face of the complexity of cross-border business, the Company actively introduces external legal resources, hiresa third-party law firm to provide professional guidance, and uses local lawyers at the location of overseas projectsto conduct localized risk analysis. The Company continuously pays attention to changes in the legal environment,strengthens legal compliance management at home and abroad, and ensures that comprehensive risk prevention andcontrol measures are effectively implemented.
Compliance
Dajin Heavy Industry is dedicated to fostering a corporate culture rooted in high standards, strong business ethics, and strict compliance. By continuously enhancing management practices, improving institutionalconstruction and standardizing operations, the Company establishes clear codes of conduct and compliance guidelines for employees, managers, and business partners and guides them to abide by business ethics andcompliance requirements. This in turn guarantees the long-term stable development of the Company.
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Responsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key PerformanceSustainable DevelopmentManagement
Compliance Culture Training
Business Ethics Management
Dajin Heavy Industry continuously fosters a robust corporate compliance culture and emphasizes the complianceawareness and sense of responsibility of every employee. The Company regularly organizes all employees toparticipate in compliance awareness training to ensure that everyone understands and abides by the Company’scompliance policies as well as the requirements of laws and regulations. At the same time, for key departmentsand employees involved in significant compliance risks, special compliance training is arranged specifically to helpthem have an in-depth understanding of and master the compliance requirements and risk control measuresboth within and outside the industry. Through these training programs, Dajin Heavy Industry continuouslystrengthens employees' identification with the compliance culture, ensuring that the concept of compliance takesroot deeply within the Company and becomes an integral part of every employee's daily work. The constructionof this compliance culture not only promotes the standardized operation of the Company but also lays a solidfoundation for its long-term and stable development.
Dajin Heavy Industry adheres to integrating integrity into the core values of its corporate culture and has establisheda business ethics management system that covers the entire process from pre-event, during-event to post-event.The Company has issued the Provisions on the Incorrupt Practice of Management Personnel and Personnel inEconomically Sensitive Positions, and has implemented a series of systems such as whistleblower protection.The Audit and Supervision Center performs its duties in multiple links. Based on the problems or hidden risks thatoccur during the bidding or process execution, it puts forward reasonable suggestions, continuously supervises theprocurement process, improves the system, investigates fraudulent behaviors, and rewards whistleblowers.At the same time, for employees in sensitive positions and senior executives, the Company has issued theProvisions on the Incorrupt Practice of Management Personnel and Personnel in Economically Sensitive Positions,which standardize the behavioral norms of employees in the fields of personnel, finance, materials, production,supply, sales, etc. during the operation and management process or the power operation process. In terms ofconflict of interest management, the Company strengthens the supervision of the kinship between employeesand suppliers, effectively ensuring the construction of the Company’s business ethics and compliant operation.
Business Ethics
Dajin Heavy Industry strictly complies with laws and regulations such as the Anti-Monopoly Law of the People’sRepublic of China, the Anti-Unfair Competition Law of the People’s Republic of China, and the Interim Provisionson Prohibiting Commercial Bribery Behaviors. It has formulated relevant business ethics systems including theProvisions on the Incorrupt Practice of Management Personnel and Personnel in Economically Sensitive Positions,the Whistleblower Reward System, and the Control Procedures and Preventive Measures for Fraud Prevention.The Company continuously improves its business ethics management system, clarifies the professional ethicsnorms for employees, and fosters an honest and clean work style.
Performance
In 2024,Penglai Facility conductedcompliance trainings, which isperson-time21,200
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Responsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key Performance
Sustainable DevelopmentManagement
During the bidding and contract signing process, Dajin Heavy Industry requires bidders and winningsuppliers to sign the “Integrity Agreement”. This agreement clearly restricts the integrity responsibilitiesof both Party A and Party B and stipulates the consequences that should be borne in case of violation ofthe integrity agreement. The Company publicly announces the channels and methods for reporting andcomplaining throughout the bidding process, and encourages suppliers to file complaints and reports incase of improper behaviors such as collusion in bidding between Party A and Party B. This practice not onlyensures the fairness of the bidding process but also strengthens the crackdown on unethical behaviors.
Business Ethics Management Process
Pre-event
During the event
Post-eventDuring the project biddingprocess, the Integrity Agreementis issued to regulate the behaviorof suppliers, emphasizing DajinHeavy Industry's commitmentto integrity and the penalties forbribery by suppliers. The Auditand Supervision Center exerciseits monitoring function duringthe bidding process, overseeingsupplier evaluations and bids inreal-time.
The contracts of winningsuppliers are reviewed to ensureconsistency with the biddingdocuments (including technicaldocuments). The supply ofproducts is monitored in real-time to prevent situations wherethe goods do not match thedescription or are of inferiorquality. Additionally, the deliveryschedule is closely monitored,and if there are delays,deductions and follow-ups areimplemented.
In collaboration with theFinancial Management Center/Facility Finance, the actualperformance, supply conditions,and payment schedules ofsuppliers are supervised, andthe reasonableness of paymentamounts is reviewed. Regularaudits, both special and routine,are conducted for each base orfunctional center. Based on auditfindings, corrective actions arerequired from the relevant basesor centers.
Dajin Heavy Industry Conducted Training on Preventing Occupational CrimesIn July 2024, Dajin Heavy Industry invited the Penglai District People’s Procuratorate to conducta training session on preventing occupational crimes for all employees. The training aimed toenhance the Group's internal control mechanisms for preventing, detecting, and halting criminalactivities, and to further optimize the law-based operational environment. The Penglai DistrictPeople’s Procuratorate systematically explained criminal cases involving enterprises, focusing onfive key risk areas: embezzlement and bribery, business operations, financing, taxation, and safety.They analyzed typical cases to illustrate the risks. Through this training, employees increased theirawareness of occupational crime risks and strengthened their sense of responsibility for compliantoperations. This session not only helped improve the Group’s ability to prevent and control criminalrisks but also reinforced the foundation of the Company's legal framework, providing a solidguarantee for the Company’s long-term, healthy, and compliant operations.The Penglai Facility Participated inOccupational Crime Prevention Training
The Xinganmeng Facility Participated inOccupational Crime Prevention Training
The Zhangjiakou Facility Participated inOccupational Crime Prevention TrainingThe Company continues to enhance employees’ awareness of business ethics and compliance, and for keybusiness and key position holders, the Company has carried out specialized integrity and dedication training,and interactive integrity publicity in multiple aspects to promote integrity and diligence and dedicationof employees, to help them better perform their duties, to safeguard the Company's clean businessenvironment, and to further enhance the level of business operation and management.
Fostering Integrity Awareness
Case Study
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key Performance
Sustainable Development
Management
案例Dajin Heavy Industry Organizes a Visit to an Education Base
In August 2024, Dajin Heavy Industry organized a visit to a warning education base for all seniorexecutives and employees in sensitive positions. Through on-site visits, real case analyses,and scenario reenactments, participants gained a firsthand understanding of the seriousharm that illegal and unethical behaviors can cause to individuals, families, and society. Theactivity especially showcased vivid cases of how certain individuals strayed from their originalvalues and fell into misconduct, and it illustrated their lives under strict confinement, markedby profound remorse and transformation. This powerful warning education left a strongintellectual and emotional impact on all participants. Through direct experience and reflection,everyone gained a clearer understanding of the importance of compliant operations and thesevere consequences of illegal and unethical actions. The event reinforced the idea of alwayskeeping a “red line” in mind and reminded executives and employees in sensitive positionsto never cross this line. It further strengthened the Company’s cultural development in areassuch as business ethics, legal compliance, and personal professional integrity. The activity notonly heightened employee awareness but also ensured that the Company’s governance systemand business ethics are collectively adhered to and implemented by all.
To enhance compliance management and business ethics, the Company has establishedvarious public reporting channels, including email, phone, and WeChat, to ensure thatstakeholders can conveniently and anonymously submit reports. Upon receiving a report,the Company promptly forms a dedicated investigation team to investigate and gatherevidence related to the issue, ensuring that each report is thoroughly addressed andresponded to. Dajin Heavy Industry places great importance on protecting the legitimaterights and interests of whistleblowers. We maintain strict confidentiality regarding boththe whistleblower’s identity and the reported information. The Company's reportingconfidentiality policy is communicated to safeguard the privacy of the whistleblower.Additionally, we have created the Integrity Reporting Platform (https://www.dajin.cn/index/index/report?lang=CN) on the Company’s official website, providing an open and transparentchannel for all stakeholders and further promoting transparency in corporate governance.In 2024, the Company formally established the reporting channel and implemented theWhistleblower Reward System. Based on the information provided by whistleblowers, theCompany conducts independent investigations while ensuring their safety through strictprotection measures. After the investigation and verification process, whistleblowers arerewarded based on the circumstances. This initiative encourages employees and relevantparties to actively participate in supervision, fostering a healthy, transparent, and compliantworking environment.
Reporting and Handling
Dajin Heavy Industry places significant emphasis on conflict-of-interest management andrequires all employees to proactively disclose any actual or potential conflicts of interest.The Company mandates that the human resources departments at each facility anddivision report on employees and their kinship, while also monitoring the kinship betweenemployee and suppliers in real-time to ensure effective management and control of relevantinformation. To further ensure the success of this management policy, the Company hasestablished a robust internal monitoring system that continuously tracks and evaluates thehandling process and outcomes of any conflicts of interest. This measure ensures that theCompany’s operations always stay on the track of compliance and fairness, laying a solidfoundation for practicing ESG concepts and achieving sustainable development.
Conict of Interest Management
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Responsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key Performance
Sustainable DevelopmentManagement
Supplier Integrity ManagementIn 2024, the Company launched “Operation Seal the Source”, a special program focused on integritymanagement within the supply chain. This initiative aims to strengthen the supply chain management systemby fostering synergy between the monitoring department and various business departments. The programenhances supply chain transparency and efficiency by embedding an integrity monitoring mechanismthroughout the entire supplier process, including entry, evaluation, cooperation, and exit. Through thismechanism, the Company promotes the “Transparent Dajin” procurement culture to suppliers, clarifiesintegrity and compliance requirements, and transforms integrity management into a key driver for supplychain optimization. This approach injects new momentum into the Company’s sustainable developmentefforts. Ultimately, it ensures that the Company’s relationship with suppliers is more open, transparent, andaligned with high-standard business ethics and compliance management.Dajin Heavy Industry Launches “Operation Seal the Source” Special Program for Supply Chain Integrity ManagementFormulate Clear Regulations on Integrity business Hospitality
Develop a detailed business hospitality protocol prior to hosting and forming the inspection team.Training and CampaigningProvide training on integrity regulations to all employees involved in external affairs activities, emphasizing theimportance of honesty and self-discipline.Establish a Supervision Mechanism
Establish an independent supervision group, responsible for monitoring the business hospitality process, toensure the transparency and fairness of foreign activities.
Communicate with Partners
Before establishing a business relationship with partners, clearly inform the Company of the integrityregulations and require the other party to comply, to ensure that both parties remain transparent and fair intheir business contacts.Strengthen the Sense of Responsibility
Strengthen the sense of responsibility within the organization, so that every employee can understand that honestyand self-discipline is not only the companys regulations, but also the embodiment of personal professional ethics.
Continuous ImprovementAccording to the supervision and audit results, constantly optimize the foreign affairs, move the process andintegrity regulations, to ensure the effectiveness and adaptability of the system.
Clearly Reject the Conict of InterestsIn the process of external affairs activities, clearly refuse any form of interests, delivery, gifts or improperhospitality, and explain to the integrity of the Company and individual.Recording and Reporting
Record all activities and expenses in the external affairs activities, including, time, place, participants andexpenses, etc., and report regularly to the superior or supervision department for review.Reshape the Whistleblowing Channel
Provide anonymous whistleblowing channels for employees and partners, encourage them to report any behaviorthat violates the integrity regulations, and ensure that problems can be discovered and handled in a timely manner.Periodic AuditsRegular audit of the external affairs activities, inspecting if violations exist, to ensure compliance of the activities.
Performance
The Company has signed environmental-related clauses withsuppliers comply with the Company’s requirements on environmental protection during cooperation
suppliers to ensure thatThe signing of environmental clauses:
The Company has signed labor rights and ethical requirements clauses with a total ofcontract manufacturing suppliers to ensure that the suppliers strictly comply with labor rightsprotection and ethical norms in the production processThe signing of Labor Rights and Ethical Requirements Clauses:
The Company has signed the terms of the Integrity Agreement with a total of suppliers,with a signing rate of, Among them, all first-tier suppliers have signedThe Signing of Integrity Agreement:
75%
100%the agreement, with a signing rate of
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout UsResponsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key PerformanceSustainable Development
Management
Information Security
We establish an information security management system by referring to the international standard ISO 27001 and assign a professional cybersecurity team to enhance the capability of information security protection.Meanwhile, the Company values employees’ awareness of information security and continuously conducts information security training programs. With a complete information security management and protectionmechanism and strict professional ethics norms for employees, we can fundamentally safeguard the Company’s information security and related rights and interests.
Dajin Heavy Industry Enhances Information Security MeasuresDajin Heavy Industry Information Security Management System
Network Security Enhancement: Enhanced the security of network communications and applicationsby adjusting firewall policies, intrusion detection/defense systems, and strengthening access filtering toeffectively stop the intrusion of external threats.Data Protection Strategy: The Company implemented stricter data encryption, backup, and recoverystrategies to ensure the confidentiality and integrity of the Company's internal and client data; regularlychecks the access rights of each system and constantly adjusts the access strategy to strictly limitunauthorized access and ensure data security.System and Application Security Strengthening: Strengthened system and application security throughregular vulnerability scanning, log monitoring and other operations, timely detection and patching ofpotential security holes to ensure system stability and security.Terminal Equipment Management: Mandatory installed antivirus software on all terminal equipment,strengthening virus protection and threat detection capabilities to ensure that the Company’s equipment isfree from viruses, malware and other security threats.
Construction of Security Management System: We have established a comprehensive information securitymanagement system, and through regular review and upgrading of the system, we ensure that all potentialsecurity vulnerabilities can be detected and remedied on time, thus effectively reducing information security risks.IT Infrastructure Management: Through the implementation of a series of measures such as regularinspections, equipment upgrades, patch updates, virus protection, and network monitoring, we ensure thatthe IT infrastructure is protected from internal and external threats and that the system operates stably.Application system Authority Control: A strict system access control policy is implemented for theapplication to ensure that only authorized personnel can access and operate the information within the scopeof authority to effectively prevent the risk of data leakage.
Data Backup and Recovery: Strict implementation of system backup regulations, regular full backups, real-timeincremental backups and offline backups of all systems, and regular system and data recovery drills to improvesystem availability and safeguard data security.Employee Training and Awareness Enhancement: Regularly provide employees with information security training toenhance their security awareness and operational skills. Through simulated phishing attacks and other means, we help employeesidentify potential network security threats and take correct protective measures to reduce security risks caused by human errors.Emergency Response Plan: We have developed a detailed emergency response plan for unavoidable securityincidents. In the event of a data breach or other security incident, the Company can act quickly to limit the scope ofdamage and provide timely notification to ensure that the security incident is handled appropriately.
Improving Information Security Management System
Enhancing Information Security Capabilities
Dajin Heavy Industry places great emphasis on the security and protection of client information, strictly adheringto relevant laws and regulations regarding information protection and network security to ensure the effectivesafeguarding of information security in its operations. The Company has established a dedicated network informationsecurity management team to enhance its information security capabilities. The Company has also revised andrigorously implemented its Information Security Management System and other related documents, clearly definingits information security strategy. This strategy covers key areas such as data protection, access control, and networksecurity. These measures have allowed the Company to continually strengthen its information security infrastructureto address the increasingly complex network environment and ensure the protection of the Company’s informationsecurity and related rights and interests. Additionally, the Company conducts ongoing information security trainingfor its employees to improve overall awareness of information security. This ensures employees adhere to securitymanagement protocols in their daily work, enhances their awareness of information security protection, and builds astronger defense against potential threats to the Company’s information security.
To address the evolving cybersecurity threats and challenges, the Company continued to strengthen its informationsecurity management capabilities in 2024. The Company implemented a range of effective measures, coveringnetwork security, access control, system and application security, as well as terminal and device management.These efforts were aimed at building a robust information security technology infrastructure, significantly reducinginformation security risks and enhancing overall protection.Information Security CommitteeInformation Management DepartmentBeijing
IT
Penglai
IT
FuxinIT
Zhangjiakou
IT
Panjin
IT
Xing'anmeng
IT
Yangjiang
IT
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Responsible GovernanceComplianceBusiness EthicsInformation SecurityGovernance Key PerformanceSustainable Development
Management
Information Security TrainingDajin Heavy Industry places great emphasis on employee informationsecurity awareness, ensuring that all employees understand andadhere to information security policies. To achieve this, the Companyplans and implements a series of information security educationaland practical activities aimed at enhancing employees' securityawareness and prevention capabilities.
RegularInformationSecurity Training
Security Tests andSimulations
The Company continues to offer ongoing information security training,covering fundamental security knowledge, data protection techniques,and network threat identification. This training helps employeesunderstand and apply methods for preventing security threats.
In addition to regular training, various departments also conductoccasional security tests, such as simulated phishing email attacks,to help employees identify potential network security threats.These tests aim to deepen their awareness of prevention in real-lifescenarios, thereby reducing human-related security risks and furtherstrengthening overall information security protection.
IndicatorsUnit20242023
Number of Annual Shareholder Meetings Heldtime(s)35Total Number of Management Employeesperson(s)371155Number of Male Management Employeesperson(s)295126Number of Female Management Employeesperson(s)7629Total Number of Board Membersperson(s)77Number of Female Board Membersperson(s)22Number of Board and Committee Meetings Heldtime(s)1413Number of Business Performance Briengs Heldtime(s)3/Total Amount of Dividends Distributedmillion RMB116.0717.86Percentage of Employees Participating In Business Ethics Training%10062Number of Business Ethics-Related Complaintscase(s)40Number of Corruption and Bribery Incidentscase(s)71Number of Information Security-Related Incidentscase(s)00
Governance Key Performance
ManagementSustainable Development
Governance Key PerformanceInformation SecurityBusiness EthicsComplianceResponsible GovernanceAbout UsIndicator IndexGovernanceSocialEnvironmentalSpecial Topic
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Indicator Index
CatalogsGRI Standards
SZSE Guidelines forthe Preparation ofSustainability ReportsAbout the Report2-1/2-2/2-3/Letter from the Chairman2-1/2-22/201-1/203-1/203-2/About Us2-1/1201-1/203-2/Key Performance in Sustainability
2-14/2-16/2-22/2-26/2-29/2-30/3-1/3-2/3-3
Article 51Article 53Sustainable Development Management2-6/Specialtopics
Penglai Facility PracticesSBTi Targets and Leadsthe Way to Low-CarbonTransition
305-1/305-2/305-3/305-5/307-1
Article 15Articles 21 to 28Article 35Green Steel Strategy,A New Chapterof SustainableManufacturing
302-5
Article 20
Article 28
Environmental
Responding to ClimateChange
302-1/302-2/302-5/305-5
Article 20
Article 22
Article 23
Article 27StrengtheningEnvironmentalManagement
301-1/301-2/302-1/302-4/302-5/303-1/303-3/304-2/305-1/305-2/305-4/305-5/305-7/306-1/306-2/306-3/306-4/306-5
Article 32
Article 33
Article 35
Article 36
Article 37Environmental KeyPerformance Data
//
CatalogsGRI Standards
SZSE Guidelines forthe Preparation ofSustainability Reports
Social
Quality Assurance417-1Article 47Product Safety
403-1/403-2/403-3/403-4/403-5/403-6/403-7/403-8/403-9/403-10
Article 50Employee Rights andBenets
401-1/401-2/401-3/404-1/405-1/405-2
Article 49
Article 50Commitment toResponsibility and
Goodness
308-1/308-2/414-1/414-2
Article 38
Article 40
Article 44
Article 45Social Key Performance//
Governance
Responsible Governance
2-9/2-12/2-25/2-27/201-1/205-2/205-3
Article 12Compliance
2-9/2-12/2-25/2-27/205-2
Article 54Business Ethics
2-15/403-2/403-6/406-1/414-1
Article 52
Article 55
Article 56Information Security418-1Article 48Governance Keyperformance
//Appendix
Indicators Index/Article 57Feedback Form//Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Sustainable Development
Management
Feedback Form
Hi, thank you for reading this report!This is the second sustainability report released by Dajin Heavy Industry. We sincerely look forward to yourfeedback to continuously improve the level of disclosure of information on the Company’s sustainabledevelopment, so that the report can truly play a role in communicating with stakeholders, and at the sametime more effectively promote sustainable development management and practice.
1. What is your overall assessment of Dajin Heavy Industry’s fulfillment of sustainable development?
□Very Good□Good□Fair□Poor
2. How do you think Dajin Heavy Industry is doing in corporate responsibility?
□Very Good□Good□Fair□Poor
3. How well do you think Dajin Heavy Industry is doing in stakeholder communication?
□Very Good□Good□Fair□Poor
4. What is your opinion on Dajin Heavy Industry’s fulfillment of sustainability and this report?
□Very Good□Good□Fair□Poor
5. What is your overall assessment of this report?
□Very Good□Good□Fair□Poor
6. Do you find the organization and layout of this report easy to read?
□Very Good□Good□Fair□Poor
7. Do you have any suggestions for Dajin Heavy Industry to fulfill the sustainability and this report?
Dajin Heavy Industry Co., Ltd | 2024 Sustainability Report
Special TopicEnvironmentalSocialGovernanceIndicator IndexAbout Us
Sustainable DevelopmentManagement