???? CorporateSocial Responsibility(CSR) Report
www.henglihydraulics.com
Jiangsu Hengli Hydraulic Co., Ltd.
Stock Code：601100
About This Report
Report Time Period
Jan. ? to Dec. ??, ????. To ensure the continuity and comparability of disclosure matters, some informationcontents shall be extended forward or backward as appropriate.Report Reference StandardThis report is prepared with reference to the Guidelines for Environmental Information Disclosure of Listed Com-panies on the Shanghai Stock Exchange and the Self-Regulatory Guidelines for Listed Companies on the Shang-hai Stock Exchange No. ?? - Sustainability Development Report (Trial).
Data SourceThe data sources used in the report include publicly available data from government departments, relevantinternal corporate statistical reports, administrative documents and reports.Title descriptionFor clarity and convenience, Jiangsu Hengli Hydraulic Co., Ltd. is referred to as "Hengli Hydraulic," "the Compa-ny," or "we" in this report.
?? Foreword
About Us
Foreword
?.? Cmpany Pro?le?? Company Introduction?? Corporate Strategy??-?? Industrial Layout?.? Corporate Governance??-?? Corporate Governance
Development Responsibility??-?? ???? Corporate Events
Future Prospects
?? Future Prospects
Corporate Responsibility Practices
?? Shareholder Responsibilities?? Social Responsibility??-?? Corporate Culture Construction??-?? Environmental Responsibility??-?? Employee Responsibility
Key Quantitative Performance??-?? Key Quantitative Performance
Chairman's Speech
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Foreword
Jiangsu Hengli Hydraulic Co., Ltd.:
Chairman Liping Wang
20241990
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???? is a year of resolute advancement for the company as it anchored its strategic goal of "R&DInnovation Breakthrough Year," achieving progress in technological breakthroughs, managementupgrades, and global layout. Facing a complex and changeable market environment and industrycompetition, the company takes "technology-based and innovation-driven" as the core engine, andachieves systematic breakthroughs in nine aspects, including new product development, e?ciencyimprovement, quality control, safety production, and management and operation. These accom-plishments not only consolidate its leadership in the industry but also demonstrated the corporateresponsibility of "Strong Country in Intelligent Manufacturing" with tangible actions.Innovation-driven development and shoulder the mission of serving the nation through industry.As a leader in China's hydraulic industry, we fully recognize the importance of achieving indepen-dent and controllable core technologies. In ????, Hengli's self-developed achievements such as theworld's largest piling ship cylinder and the V??N??? high-pressure heavy-duty pump that brokethrough the "bottleneck" technology not only ?lled the domestic gap, but also empowered theindependent construction of major national projects.Empower with green intelligent manufacturing to safeguard our green mountains and clearwaters homeland
We have always integrated green development into the corporate gene. In the construction of theintelligent production base, the coating line adopts electrostatic spray gun technology, reducingpaint waste while signi?cantly improving product surface quality and production e?ciency. Thenon-standard cylinder production line has undergone lean layout optimization, shortening logisticsdistance by ?,??? meters and reducing energy consumption and carbon emissions. The constructionof our Mexico plant strictly complies with international environmental standards, and embodies ourcommitment to "local production, global responsibility." In the future, we will continue to exploregreen manufacturing processes and contribute the Hengli solution to the "dual-carbon" goals.Employee-oriented, creating a secure and happy haven.Employees are the greatest treasure of Hengli. In ????, we invested over ?? million yuan in upgrad-ing safety facilities and implemented "Mobile Safety Management". A total of ?? safety trainingsessions were conducted throughout the year, achieving "zero occurrence" of major accidents.Through mechanisms such as "Improvement Proposals", the innovation vitality of all employees wasinspired, with more than ?,??? suggestions adopted throughout the year, empowering frontline sta?to take the lead in enhancing quality and e?ciency. We continue to improve our talent developmentsystem and have recruited nearly ??? fresh graduates, providing a growth platform for young talents.Hengli is not just a company, but a big family full of temperature and opportunities.As we look toward ????, the journey of responsibility is endless. We will adhere to the core values of"Quality-oriented, Innovation-oriented, Employee-based, and Green-oriented", demonstrate theoriginal intention of serving the country through technology in the technological breakthroughs,protect the earth's home in the green transformation, and convey the responsibility and kindness ofChinese enterprise in the Journey of Globalization.
Chairman of Jiangsu Hengli Hydraulic Co., Ltd.:
Jiangsu Hengli Hydraulic Co., Ltd. was established in ????, with its predecessor being Jiangsu Hengli High-Pres-sure Oil Cylinder Co., Ltd. Its entrepreneurial history can be traced back to the early ????s.All along, Hengli has consistently adhered to the corporate vision of "Building a Timeless Enterprise, Striving fora Future of Excellence", upheld the cultural philosophy of "Social Responsibility Outweighs Corporate Pro?ts",and committed to innovation and actively ful?lling social responsibilities. Now, the company has developed intoa leading enterprise in high-end manufacturing in the ?eld of hydraulics in China, and will continue to createmore value for China's capital market in the future.As an enterprise with strong social responsibility, we consistently uphold the core values of "Value, Innovation,Cultivation, and Trust" while pursuing our own continuous growth and development, emphasize the synergisticdevelopment of economic and social bene?ts, and strive to achieve the harmonious coexistence between thecompany, the society, and the environment.
Company Introduction
Jiangsu Hengli Hydraulic Co., Ltd. was established in ???? with a registered capital of ?,???.?? million RMB. It is a listed company on theA-share Main Board (Stock Code: SH??????). Hengli Hydraulic is a leading enterprise specializing in the R&D, production, and sales of seriesproducts including high-pressure hydraulic cylinders, hydraulic pumps, hydraulic valves, hydraulic systems, high-precision hydrauliccastings, and pneumatic components, and is a demonstration enterprise of the dingle champion of the Ministry of Industry and InformationTechnology (MIIT), a demonstration enterprise of the Foundation Reinforcement Project 'One-Stop' Application Plan of the Ministry of Indus-try and Information Technology (MIIT), a national high-tech enterprise, a national intellectual property demonstration enterprise, a Chinagreen casting demonstration enterprise, and a national and industry standard development organization.Hengli Hydraulic has established seven R&D centers worldwide, including Hengli International R&D Center (Changzhou, China), HengliChicago R&D Center in the United States, Hengli R&D Center in Berlin, Germany, Hengli China R&D Center in Shanghai, and Hengli R&D Centerin France. The company has established Asia's largest hydraulic cylinder R&D center and the only "Jiangsu Provincial Engineering TechnologyResearch Center for Miniaturized and Lightweight Design of Ultra-High Pressure Hydraulic Cylinders" in Jiangsu Province, as well as manyscienti?c and technological innovation platforms such as Jiangsu Province High Pressure Cylinder Engineering Center, Jiangsu ProvinceEnterprise Technology Center, Jiangsu Province Postdoctoral Workstation, Jiangsu Province Graduate Workstation, and Jiangsu ProvinceForeign Expert Studio.After ?? years of innovative development, Hengli Hydraulic has become a leading enterprise in China's hydraulic industry. It is the ?rst listedcompany in China's A-share market primarily engaged in hydraulic businesses, and the Hengli Hydraulics is the only independent brandamong China's top four excavator cylinder manufacturers. Currently, Hengli is the world's largest production base for high-pressure oilcylinders and the world's largest manufacturer of specialized hydraulic cylinders for shield tunneling machines. The products have expandedfrom a single hydraulic cylinder product to extended industries such as hydraulic valves, hydraulic pumps, hydraulic systems, and precisioncastings. Hengli Company has successively invested in and established three major bases: Hengli Hydraulic Cylinder, Hengli Casting, andHengli Hydraulics. With a global layout, the company has established overseas sales and service subsidiaries in Europe, the United States,Japan, India, and Indonesia to develop international markets. Henli's products are sold in more than ?? countries and regions, serving morethan ?,??? organizations worldwide.
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About Us
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
Corporate Strategy
?.? Company Pro?le
The company will ?rmly implement its strategy of "Internationalization, Diversi?cation, and Electri?cation." The company will continue todeepen and strengthen its domestic market share while gradually enhancing the brand recognition and market share of its products inoverseas regions. The company will also steadily expand the globalization of its production capacity, enhance its global operation capabilities,and deliver more e?cient and premium services to overseas customers. The company will increase investment in research and development,uphold its innovation-driven growth strategy and technological leadership, diversify its product portfolio, and continuously broaden down-stream applications and scenarios. The company will strategically develop relevant electric control and execution devices to meet the electri?-cation demands of downstream industries, including construction machinery, marine equipment, and industrial equipment. The company iscommitted to becoming a ?rst-class domestic and world-renowned high-end transmission equipment supplier and transmission solutionprovider.
???? is a year of resolute advancement for the company as it anchored its strategic goal of "R&DInnovation Breakthrough Year," achieving progress in technological breakthroughs, managementupgrades, and global layout. Facing a complex and changeable market environment and industrycompetition, the company takes "technology-based and innovation-driven" as the core engine, andachieves systematic breakthroughs in nine aspects, including new product development, e?ciencyimprovement, quality control, safety production, and management and operation. These accom-plishments not only consolidate its leadership in the industry but also demonstrated the corporateresponsibility of "Strong Country in Intelligent Manufacturing" with tangible actions.Innovation-driven development and shoulder the mission of serving the nation through industry.As a leader in China's hydraulic industry, we fully recognize the importance of achieving indepen-dent and controllable core technologies. In ????, Hengli's self-developed achievements such as theworld's largest piling ship cylinder and the V??N??? high-pressure heavy-duty pump that brokethrough the "bottleneck" technology not only ?lled the domestic gap, but also empowered theindependent construction of major national projects.Empower with green intelligent manufacturing to safeguard our green mountains and clearwaters homeland
We have always integrated green development into the corporate gene. In the construction of theintelligent production base, the coating line adopts electrostatic spray gun technology, reducingpaint waste while signi?cantly improving product surface quality and production e?ciency. Thenon-standard cylinder production line has undergone lean layout optimization, shortening logisticsdistance by ?,??? meters and reducing energy consumption and carbon emissions. The constructionof our Mexico plant strictly complies with international environmental standards, and embodies ourcommitment to "local production, global responsibility." In the future, we will continue to exploregreen manufacturing processes and contribute the Hengli solution to the "dual-carbon" goals.Employee-oriented, creating a secure and happy haven.Employees are the greatest treasure of Hengli. In ????, we invested over ?? million yuan in upgrad-ing safety facilities and implemented "Mobile Safety Management". A total of ?? safety trainingsessions were conducted throughout the year, achieving "zero occurrence" of major accidents.Through mechanisms such as "Improvement Proposals", the innovation vitality of all employees wasinspired, with more than ?,??? suggestions adopted throughout the year, empowering frontline sta?to take the lead in enhancing quality and e?ciency. We continue to improve our talent developmentsystem and have recruited nearly ??? fresh graduates, providing a growth platform for young talents.Hengli is not just a company, but a big family full of temperature and opportunities.As we look toward ????, the journey of responsibility is endless. We will adhere to the core values of"Quality-oriented, Innovation-oriented, Employee-based, and Green-oriented", demonstrate theoriginal intention of serving the country through technology in the technological breakthroughs,protect the earth's home in the green transformation, and convey the responsibility and kindness ofChinese enterprise in the Journey of Globalization.
Chairman of Jiangsu Hengli Hydraulic Co., Ltd.:
Industrial Hydraulic AndPneumatic Components?Industrial cylinders?Industrial pumps?Industrial valves
?Industrial motors?Hydraulic system integration?Pneumatic components
Linear Drive Technology
?Electric cylinders?Ball screws?GuidewaysElectric Drive Components
?High-Speed motor drive assemblies?High-Peormance motors?Electric drive system assemblies
Technical Components
?Castings?Seals?Cold-Drawn tubes
Mobile Hydraulic AndElectronic Components?Hydraulic cylinders
?Hydraulic pumps
?Hydraulic multi-way valves?Threaded caridge valves?Hydraulic motors?Orbital motors?Electronic control components
Hengli has consistently dedicated substantial e?ort and?nancial resources to technology and product research anddevelopment, while also setting ambitious strategic develop-ment goals: Focus on the main business, take hydraulics as thecore, and expand various hydraulic product categories. There-fore, after the high-pressure oil cylinder reached stable develop-ment, Hengli develops pumps and valves with higher technicalcomplexity and added value, aiming to break the foreign brands'monopoly on high-end hydraulic components and overcomethe "bottleneck" technology.Hengli invested ??? million yuan in its listing year to buildChina's ?rst large-scale production base for high-precisionhydraulic castings. The key is to grasp the core of high-endhydraulic components, which echoes the saying, "MasterCasting, and You Master Hydraulics."With the o?cial commencement of production by the castingcompany in Dec. ????, Hengli met the quality and capacitydemands for high-precision hydraulic castings required byhigh-pressure oil cylinders and hydraulic pump valves. This alsodemonstrates that Hengli has progressively built the industrialfoundation for mass production of pumps and valves. Thus, in????, the company established Jiangsu Hengli HydraulicTechnology Co., Ltd., focusing on the development of high-per-formance hydraulic piston pumps and multi-way control valves.The company successively hired dozens of experts in the ?eld ofpumps and valves from many countries such as Germany,Japan, and the United States, and invested in equipping world'sleading scienti?c research facilities and technical processes.After more than two years of dedicated e?orts, the companysuccessfully developed high-pressure piston pumps andmulti-way control valves speci?cally for ?T/?T excavators. Thispioneering initiative has energized the market of China'sengineering machinery industry, making the localization ofhigh-end hydraulic components a reality. After supplying in bulkto supporting units such as Sany Heavy Industry, XCMG Group,and LiuGong Group, customer feedback indicates that theproduct performance has reached and even surpassed that ofmainstream international products.In ????, with the establishment of the Hydraulic SystemsDivision, Hengli has the ability to independently design andmanufacture high-performance hydraulic test benches. In early????, Shanghai Lixin Hydraulic's system division was mergedinto the Changzhou production base, marking the beginning of anew journey in integrated system design and manufacturing.The division has already achieved remarkable accomplishmentsin various ?elds.?Providing complete hydraulic system assemblies for various
TBMs and shield tunneling machines in domestic and interna-tional markets.?In the marine engineering ?eld, it has integration capabilitiesfor ????T marine platform latch lifting hydraulic system anddevelopment capabilities for ???T-class drag-suction dredgerhydraulic systems.?The successful research and development of EHA systemintegration demonstrates the strength of developing high-preci-sion servo actuators.Hengli has successively overcome technical challenges in keycomponents such as high-pressure oil cylinders and hydraulicpumps and valves, establishing R&D and manufacturing capabil-ities for delivering high-end hydraulic components and systems.It has become a leading domestic enterprise capable of compet-ing with foreign brands. To further highlight the nature of itsmain business, the parent company's name was changed fromJiangsu Hengli High-Pressure Oil Cylinder Co., Ltd. to JiangsuHengli Hydraulics Co., Ltd. in ????, our commitment toexcellence as a high-end hydraulic component and systemintegration provider.Currently, the series of excavator-speci?c oil cylindersdeveloped by Hengli are widely used in supporting equipmentfor internationally renowned construction machinery manufac-turers such as Caterpillar, Hitachi Construction Machinery, SanyHeavy Industry, and XCMG Excavators. This has earned Hengli tobecome the only enterprise in Asia to receive the PlatinumQuality Award from Caterpillar for ?ve consecutive years, with adomestic market share more than ??%, ranking ?rst in Chinaand top three in the world; the specialized cylinders for shieldtunneling machines are used in large-scale shield tunnelingmachines such as CCCC's "Great Wall" series, achieving a domes-tic market share of over ??% and ranking ?rst in China. Hydraulicactuators are used in the construction of NAOC (NationalAstronomical Observatories)'s FAST (Five-hundred-meterAperture Spherical radio Telescope) project. The marinecorrosion-resistant and wear-resistant composite coatedcylinder was delivered and used to the "Wanshan" wavecompensation power generation device and the "Nanhai ?" oildrilling platform; the domestic market share of hydraulic pumpsand valves exceeds ??%, ranking second in China, among whichthe proportion of small excavator pumps and valves exceeds??%, ranking ?rst in China.
?.? Company Pro?le
—Industrial Layout
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About Us
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
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About Us
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
?.? CORPORATE GOVERNANCE
During the reporting period, the Company continuously improved its corporate governance structure and enhanced the management level of internal control in accordance with the Company Law, Securities Law, Guidelines for Articles of Association of Listed Companies, Code of Corporate Governancefor Listed Companies, Shanghai Stock Exchange Listing Rules, Basic Standards for Enterprise Internal Control, as well as the relevant regulations of the China Securities Regulatory Commission (CSRC) and the Shanghai Stock Exchange. This has e?ectively ensured the standardized operation and steadyand rapid development of the Company.The corporate governance during the reporting period is as follows:
The company conducted two general meetings of shareholders during the reportingperiod. The company convenes and holds the general meeting of shareholders inaccordance with the relevant provisions and requirements of the Company Law, thecompany's Articles of Association, the Rules of Procedure for Shareholders' Meetings, andShareholders' meetings are conducted and voted upon through both on-site and onlinevoting methods. It guarantees equal rights for all shareholders in the company, particular-ly minority shareholders, and enables them to fully exercise their voting rights. Theshareholders' general meeting of the company rigorously deliberates on connectedtransactions in compliance with the established procedures. The related shareholdersabstained from voting to ensure the connected transaction complies with the principles offairness, impartiality, and transparency without harming the interests of minorityshareholders. The company's lawyer conducts on-site witnessing of the shareholders'general meeting and issues the corresponding legal opinion letter. The resolutions of theshareholders' meeting are all disclosed promptly and fully after the meeting is held.
Shareholders and shareholders' meetings
Controlling shareholders and listed companies
The company's controlling shareholder, Changzhou Hengyi Intelligent Equipment Co.,Ltd., lawfully exercises its shareholder rights and ful?lls associated obligations throughthe shareholders' general meeting, without interfering with the normal production andoperational activities of the company. The company has independent business opera-tions and operational autonomy, with complete separation from the controllingshareholder in business, personnel, assets, organizational structure, and ?nancialaspects. The connected transactions between the controlling shareholder and thecompany have strictly ful?lled the approval procedures of the board of directors and thegeneral meeting of shareholders in accordance with the relevant regulations. Theindependent directors issue a pre-approval opinion and consent opinion. Interesteddirectors and a?liated shareholders shall abstain from voting. Major connected transac-tions shall be subject to review opinions issued by the Audit Committee. Legally discloserelated-party transactions that reach the disclosure standards. No illegal occupation offunds occurred by controlling shareholders or their related parties during the reportingperiod.
Supervisors and the Board of SupervisorsThe company currently has three supervisors, including two employee-elected supervi-sors. The number and composition of the board of supervisors meet the requirements oflaws, regulations and the company's articles of association. The company conducted ?veSupervisory Board meetings during the reporting period. The content primarily involvesregular reports and pro?t allocation. The supervisory board members conscientiouslyperform their duties, and adhere to a shareholder-oriented approach to supervise thelegitimacy and regulatory compliance of the directors' and senior executives' ful?llmentof responsibilities, as well as the company's business operations. The convening andholding procedures of the company's Board of Supervisors comply with the relevantprovisions of the Company Law, the company's Articles of Association, and the Rules ofProcedure for the Board of Supervisors. The meetings of the Board of Supervisors shall beconducted in accordance with the speci?ed procedures.
Senior management personnelDuring the reporting period, all senior management personnel of the company diligentlyperform their duties in accordance with the authorization of the shareholders' meeting,relevant regulations, and the company's rules and policies.
Information disclosure and transparencyThe Company conducts information disclosure in accordance with relevant regulations ofthe "Administrative Measures for Information Disclosure of Listed Companies" issued bythe China Securities Regulatory Commission, the "Shanghai Stock Exchange ListingRules," the Company's Articles of Association, and the Company's "Information Disclo-sure Management System.", and the Shanghai Securities News and the Shanghai StockExchange website are designated as the newspapers and websites for the company'sinformation disclosure. The company conducts the registration of insiders with access toinside information in accordance with the provisions of the "Inside Information InsiderRegistration Management System", ensuring equal information access for all sharehold-ers.
Internal control constructionThe company e?ectively implements the provisions of the "Basic Norms for EnterpriseInternal Control" and its supporting guidelines, and the company's internal controlpolicies. The Board of Supervisors supervises the establishment and implementation ofinternal control by the Board of Directors, while the management team is responsible fororganizing and leading the daily operation of internal controls within the enterprise. Thisensures compliance with laws and regulations in business operations, enhances thecompany's operation management capabilities, and strengthens risk prevention.
Corporate Integrity and Anti-Corruption MeasuresIn order to promote the company's operation in accordance with the law, the integrity ofemployees, and protect the interests of the company and the legitimate rights andinterests of employees, the company has developed anti-corruption related systemssuch as "Employee Integrity System", "Anti-corruption and Anti-bribery Control Proce-dures", "Fair Trade, Advertising and Competition Management System", "Whistle-blow-ing Management Measures", and "Sensitive Transaction Gift System", strengtheningcompliance management in aspects such as code of conduct, gift acceptance, andwhistleblower rewards. An integrity and self-discipline training shall be organized at leastonce a year for employees from procurement, outsourcing, marketing center, ?nance,and warehousing departments. The training content describes some common types ofduty crimes in enterprises, including Non-State Functionary Bribery, Bribery to Non-StateFunctionaries, Job Encroachment, Misappropriation of Funds, Trade Secret Infringe-ment, and Breach of Trust Damaging Listed Company Interests. Supported by multipleconcrete case studies, the contributing factors to occupational crimes within enterprises,and their legal consequences are analyzed, and various types of unlawful actions aredescribed in detailed. This training serves as a warning to enhance employees' integrityand anti-corruption awareness.To build a fair, just, and transparent cooperative environment, the company requiressuppliers and external contractors to sign the Integrity Responsibility Agreement at thebeginning of collaboration. During the reporting period, the contract signing rate withsuppliers and outsourcing vendors reached ???% during the reporting period.The company establishes o?cial reporting channels such as an integrity hotline andintegrity email, and carries out integrity promotion through various means to encourageemployees, suppliers, and other business partners to participate in the integrity andcompliance supervision system. The company rigorously follows the Employee IntegrityPolicy, Anti-Corruption and Anti-Bribery Control Procedure, and Whistleblowing Manage-ment Policy to standardize the investigation and handling mechanisms for reportingmatters. The General Manager's O?ce is the only authorized department responsible forhandling fraud-related complaints, ensuring the independence and impartiality ofinvestigation results. The company encourages all sta? to monitor and report issues.Substantiated reports will be rewarded, and the anonymity of whistleblowers is guaran-teed.
Investor relations management
During the reporting period, the company attaches high importance on investor relationsmanagement, and sets up a dedicated investor email address to respond to shareholderinquiries. We engaged in direct communication with investors through various channels,including on-site visits, securities forums, strategy conferences, hotline services, andonline interactions, receiving over a thousand investor visits throughout the year.
Directors and Board of Directors
The company currently has ? directors, including ? independent directors, and thenumber and composition of the board comply with the laws and regulations. A total of sixboard meetings were convened by the company during the reporting period. The meetingcontent primarily involves regular reports, pro?t allocation, related-party transactions,and changes in accounting policies. All company directors have exercised due diligence,acted in good faith, familiarized themselves with relevant laws and regulations, andgenuinely protected the interests of both the company and its shareholders. The conven-ing and holding procedures of the company's Board of Directors comply with the relevantprovisions of the Company Law, the company's Articles of Association, the Rules of Proce-dure for the Board of Directors, and the Independent Director System. The Board ofDirectors has established four specialized committees: the Strategy Committee, theNomination Committee, the Remuneration and Appraisal Committee, and the AuditCommittee. The committees perform their respective duties in accordance with theirworking rules, making the company's decision-making more e?cient, standardized, andscienti?c.
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Development Responsibility
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
?.? ???? Corporate Events
?.Hengli International R&D Center ProjectIn Oct. ????, the civil works and curtain wall works of the R&D building have been successfully completed, with a total construction area of??,???.?? square meters. Currently, the decoration project and landscape greening project of the R&D building are almost ?nished. Soon,this "City of Future Technology," integrating R&D, o?ce spaces, and leisure, will add the most brilliant stroke to Hengli's global R&Dblueprint.
?.Hengli Precision IndustryHengli Precision Industry covers an area of ?????? square meters and has a constant temperature, humidity, and shock resistantworkshop. It o?cially started production in ???? and has developed dozens of product series.?.Hengli MexicoThe construction of our Mexico facility has been successfully completed, marking the o?cial commencement of trial production. Initialproduct samples have already been delivered to customers for evaluation.
Strategic development at full speed
?.The world's largest oil cylinderOn Oct. ??, ????, the world's largest hydraulic cylinder for pile-driving vessels was successfully launched at Hengli's headquarters ando?cially set the Guinness World Record for "the largest hydraulic cylinder"! This fully demonstrates Hengli's strong capabilities in thedesign, manufacturing, and testing of various super-sized hydraulic cylinders .?.?????-cubic-meter rake suction dredger projectIn China's ?rst ??,???-cubic-meter LNG clean-energy-powered rake suction dredger project, Hengli provided a complete set of hydrauliccylinders and hydraulic systems, supporting its integration with the nation's most advanced intelligent system.?.????mm-wide thick plate rolling mill projectWith the rich experience accumulated in the industrial ?eld, Hengli Hydraulic provided ? core systems for a renowned steel enterprise's????mm wide-thick plate project. They are servo hydraulic system and auxiliary transmission hydraulic system in the rolling mill area,pre-aligning hydraulic system, hot aligning hydraulic system, and cooling bed hydraulic system, including hydraulic pump stations,accumulator groups and all control valve stands (including AGC valve stands and AWC valve stands).
Market development depends aggressive e?orts
?.Single champion enterprise in the manufacturing industryIn the ?rst quarter of this year, the Ministry of Industry and Information Technology (MIIT) and the China Federation of Industrial Economics(CFIE) released the list of the eighth batch of national-level manufacturing 'Single Champion' enterprises in ????. Jiangsu Hengli HydraulicTechnology Co., Ltd. was awarded the title of "Manufacturing Single Champion Enterprise" for its technological innovation, market opera-tions, and industry in?uence in the ?eld of high-pressure axial piston pumps.?.First Prize of Science and Technology Award of the Machinery IndustryOn Sep. ??, the results of the proposed award projects for the ???? "Science and Technology Award of the Machinery Industry" wereannounced. Jiangsu Hengli Hydraulic Co., Ltd. was honored with the ?rst prize once again for its outstanding contributions in the ?eld ofkey technologies and applications of intelligent rotary drilling rigs, following its previous achievement with hydraulic multi-valve products.?.Global Top ??? Supporting Components for Technological InnovationIn Nov. ????, the "Top ?? Annual Ranking of the Construction Machinery Industry" was released. As a benchmark enterprise in the hydrau-lic industry, Jiangsu Hengli Hydraulic Co., Ltd. was awarded the "Global Supporting Component Top ??? - Technological Innovation" prizefor its high-performance products and professional, reliable services.
Honor blessing point "highlight"
?.Strategic cooperation with the Quality Standards Institute of the Ministry of Water ResourcesOn May ??, ????, Hengli Hydraulics signed a strategic cooperation agreement with the Institute of Product Quality Standards of theMinistry of Water Resources / Hangzhou Machinery Design and Research Institute of the Ministry of Water Resources in Changzhou.The two sides further exchanged views on the water conservancy industry and future cooperation directions, and reached an on-siteagreement on a product-research collaboration project to achieve domestic substitution using Hengli Surface Technology's coatingmaterials.?.Henli and Siemens Spray Coating Cooperation ProjectOn Aug. ??, ????, the signing and groundbreaking ceremony for the Hengli-Siemens Energy coating project was grandly held atHengli Surface. This not only embodies the shared vision and steadfast belief of both parties in future development, but also heraldsa profound transformation in the coating industry - one driven by innovative technologies, deep trust, close collaboration, andshared prosperity.?.Main business of construction machineryIn ????, the pump and valve business of Hengli's excavator achieved rapid growth, supported by stabilized market demand andincreased market share in medium and large excavators. The general machinery business segment will further expand into areassuch as material handling machinery, agricultural machinery, and port machinery by focusing on the key points of "one-stopsolutions, electri?cation, and customization.", achieving a year-on-year revenue growth of over ??%, and maintaining a rapid growthtrend.
?.Institutional Investor Awards Top Industrial Sector Again. In June ????, ranked ?rst in the 'll-Asia' industrial ?eld once again after four years. The company was honored with eight prestigiousawards, including 'Asia's Most Admired Company' and 'Asia's Best Board of Directors'.?.Honored to appear on CCTV twice consecutivelyHengli actively contributes to the green, e?cient, and safe new energy strategy and had the honor of participating in the ?lming of CCTVFinance's documentary Energy Wave. and made a brilliant appearance in the third episode 'Power of Heavy Equipment' broadcast on theevening of March ?.On Nov. ??, the large-scale new media series program "Intelligent Manufacturing: The Power of Innovation", produced by the FinanceProgram Center of China Central Television (CCTV), focused its lens on Hengli Hydraulic, delving into multiple industrial sectors of thecompany.
?.Single champion enterprise in the manufacturing industryIn the ?rst quarter of this year, the Ministry of Industry and Information Technology (MIIT) and the China Federation of Industrial Economics(CFIE) released the list of the eighth batch of national-level manufacturing 'Single Champion' enterprises in ????. Jiangsu Hengli HydraulicTechnology Co., Ltd. was awarded the title of "Manufacturing Single Champion Enterprise" for its technological innovation, market opera-tions, and industry in?uence in the ?eld of high-pressure axial piston pumps.?.First Prize of Science and Technology Award of the Machinery IndustryOn Sep. ??, the results of the proposed award projects for the ???? "Science and Technology Award of the Machinery Industry" wereannounced. Jiangsu Hengli Hydraulic Co., Ltd. was honored with the ?rst prize once again for its outstanding contributions in the ?eld ofkey technologies and applications of intelligent rotary drilling rigs, following its previous achievement with hydraulic multi-valve products.?.Global Top ??? Supporting Components for Technological InnovationIn Nov. ????, the "Top ?? Annual Ranking of the Construction Machinery Industry" was released. As a benchmark enterprise in the hydrau-lic industry, Jiangsu Hengli Hydraulic Co., Ltd. was awarded the "Global Supporting Component Top ??? - Technological Innovation" prizefor its high-performance products and professional, reliable services.
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Development Responsibility
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
As of the end of ????, the company had a total of ??? valid patents, including over ??? invention patents and PCT international patents,forming a patent portfolio centered on hydraulic transmission, electronic control systems, and intelligent equipment. The company has??? valid registered trademarks both domestically and internationally. The brand value of "Hengli Hydraulics" continues to rise,establishing itself as a dual benchmark for technological innovation and brand development in the industry.Performance Improvements?.V??N??? series-connected high-pressure heavy-duty pumpIt is the innovatively produced by Hengli, and a boost impeller and power take-o? are combined, simplifying the structure and savinginstallation space. This design also increases displacement, reduces the speed, and optimizes fuel consumption.?. HVME???B main valve + V??N???T main pumpEnergy saving and consumption reduction, making mobile machinery more e?cient. Compared to the previous generation, fuelconsumption is reduced by ≥?% at the same e?ciency level, and the valve ?ow capacity is increased by ≥??% at the same volume level.?.Closed traveling system upgradeIn ????, the new V??E/G series high-pressure closed pumps and M??V bent-axis variable motors will be launched, and the hydrostaticclosed drive system composed of them will be upgraded again, which can signi?cantly improve the traveling performance and e?ciencyof vehicles.
Digital intelligence and electri?cation
?.Electronic pump (V??D???, V??G)The V??D??? series and V??G??? series electronic pumps originated from Hengli Germany InLine product have the advantages of highprecision and high response, suitable for large-scale construction machinery and industrial ?elds.
Sustained Innovation Sets the 'Standard'
?.High-speed pump setResponding to the market demands, Hengli combines high-e?ciency motors and variable displacement pumps, and launches a varietyof motor and pump assembly solutions, achieving the goal of smaller size and higher power density under the same working conditionsto bring lower operation and maintenance costs to customers.?.Four-motor reducer systemDriven by four high-speed hairpin motors working in parallel, the setup eliminates gear shifts and power loss while maximizing drivepower, e?ectively addressing the industry pain point of high failure rates in transmissions.Greening?. Hydrogen compressorIndependent innovation empowers green development. The specialized oil-free lubrication coating and sealing are perfectly suited forultra-high-pressure hydrogen dry friction operating conditions.Product expansion?.New hydraulic motorIn ????, Hengli has completed the development of travel motors for all types of skid-steer loaders, achieving a breakthrough of zeroinstallation of radial piston motors for agricultural and road machinery. Additionally, a revolutionary compact excavator swing motorwith innovative braking principles has been successfully developed. A total of ?? patents were applied throughout the year, including ?invention patents and? authorized invention patent.?.Compact hydraulic new productsIn ????, Hengli increased investment in R&D and production, launching approximately ??? types of thread cartridge valves and morethan ??? types of valve blocks and balance valves. We continue to provide services to customers in traditional ?elds such as high-risemachines, excavators, and forklifts, while achieving breakthroughs in applications for agricultural machinery, road machinery, loaders,special equipment, and industrial ?elds.??.Voice coil servo proportional cartridge valveThe ?WRCVE two-way high-frequency response servo proportional cartridge valve ensures system stability and precision with its high-ac-curacy and high-response closed-loop control, helping customers improve production e?ciency and reduce operation and maintenancecosts.
?.Institutional Investor Awards Top Industrial Sector Again. In June ????, ranked ?rst in the 'll-Asia' industrial ?eld once again after four years. The company was honored with eight prestigiousawards, including 'Asia's Most Admired Company' and 'Asia's Best Board of Directors'.?.Honored to appear on CCTV twice consecutivelyHengli actively contributes to the green, e?cient, and safe new energy strategy and had the honor of participating in the ?lming of CCTVFinance's documentary Energy Wave. and made a brilliant appearance in the third episode 'Power of Heavy Equipment' broadcast on theevening of March ?.On Nov. ??, the large-scale new media series program "Intelligent Manufacturing: The Power of Innovation", produced by the FinanceProgram Center of China Central Television (CCTV), focused its lens on Hengli Hydraulic, delving into multiple industrial sectors of thecompany.
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The company attaches high importance on providing reasonable returns to investors. While balancing the company's devel-opment stage and long-term growth needs, we strive to share development dividends with all shareholders and maximizeboth corporate value and shareholder interests. Since its listing in ????, the company has implemented cash dividends everyyear, with the annual cash dividend payout ratio exceeding ??% of the net pro?t each year. The cumulative cash dividendamount has reached ?.??? billion yuan.The company consistently adheres to the principles of truthful, accurate, complete, timely, and fair information disclosure,actively ful?lls all information disclosure obligations, and continuously improves the quality and transparency of corporateinformation disclosure. The company has been awarded an "A" rating in the Shanghai Stock Exchange's information disclo-sure assessment for the seventh consecutive year.The company conducts multi-level communication and exchanges with investors through various channels such as earningsbrie?ngs, roadshows and reverse roadshows, investor hotlines, on-site research, and corporate email, e?ectively conveyingthe company's value to the capital market. We aim to build a healthy ecosystem where companies and investors work togeth-er to enhance the quality of development.
?.? Shareholder Responsibilities
??
Corporate Responsibility Practices
Hengli Hydraulic Corporate Social Responsibility (CSR) Report
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Over the years, Hengli Hydraulics has consis-tently adhered to the ideal of serving thenation through industry and the entrepreneur-ial spirit of hard work and innovation, whilenever forgetting the social responsibilities thata company should bear. The company hasbeen actively participated in a wide range ofcharitable initiatives.
The company actively builds its public welfare brand, with annual cumulative investmentsexceeding ? million yuan. A series of public welfare activities have been carried out invarious forms, such as blood donation, education and assistance, conveying love to allcorners of society. The establishment of Hengli's public welfare brand has continuouslyimproved the company's social image.There are more than ???,??? security alarms throughout the year, and more than ??,???security incidents were handled, with a ???% handling rate of the security incident. Thecompany has established a complete security incident response mechanism to quicklyanalyze and handle security alarms and to take timely measures to handle securityincidents, ensuring the stable operation of the company's information system. After a year ofdedicated e?orts, the proportion of high-risk security alerts in the company's informationsecurity system dropped from ??% in mid-year to ??% by year-end, achieving a remarkableimprovement in information security conditions. The company takes safety production asthe basic starting point for ful?lling social responsibilities, and establishes a special safetymanagement department safety committee. The company implements the concept andaction of safety production into all aspects of production and operation by means of improv-ing the system, strengthening management, and strengthening training. The companyregularly conduct the investigation and management of potential safety hazards, e?ectivelypreventing and avoiding safety accidents caused by hidden dangers. The company will alsoorganize ?re drills at various plant sites to enhance employees' emergency responsecapabilities to safety incidents. These activities include ?re drill training, specialized trainingfor team leaders, as well as activities such as Safety Month, gas safety lectures, and dormito-ry ?re safety education. In ????, the company's safety production situation remained stablein ????, with no major labor safety accidents occurring.
Caring for Special Communities, Brightening Inner Light: In June ????, the company organizedcondolences for students in special schools and care activities for the elderly in the communi-ty, and there are more than ??? public welfare volunteers in the company throughout the year.In the special school, the company's volunteers play games, draw, and sing songs with thechildren, o?ering them joy and warmth. In the community, volunteers went into the homes ofthe elderly who were lonely, chatted with them, and delivered daily necessities, making theelderly feel the care and respect of the society.
Carry out regularsocial care initiatives
to convey warmthand hope
Establishment ofpublic welfare brandand gathering oflove power
Handling securityincidents to maintain
system stability
On-site discussion of the management levelOn-site investigation by foreign shareholders
Investor Service Center Partners with Shanghai Securities NewsOn-Site Research Activity for Minority Shareholders
On-site communication at the exhibition
?.? Social Responsibility?.? Social Responsibility
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Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
Under the group management framework of the company, a Culture BP organization was established in ????, and regular work meetings areheld to communicate progress on initiatives. The establishment of the Culture BP organization has strengthened communication andcollaboration between corporate culture development and business departments, enabling corporate culture to be better integrated intothe company’s daily operations. Furthermore, the company has sorted out and optimized processes related to cultural development,enhancing the e?ciency and quality of cultural initiatives and laying a solid foundation for the implementation of corporate culture.
.Building a cultural system to strengthen the foundation of culture
?.? Corporate Culture ConstructionBy enhancing corporate culture development, the company has continuously enriched its cultural essence, diversi?ed cultural activities,and broadened cultural promotion avenues. Through the organizational leadership of the Party, labor unions, and youth leagues, it hasunited the e?orts of all employees, providing robust cultural support for the company's development.
?.Deepening the content and enhancing the cultural connotationThe company focuses on deepening the content of cultural promotion, re?ning and elaborating on the original basis. By thoroughly explor-ing cultural elements such as the company's development history, corporate spirit, and core values, a series of cultural platforms have beencreated. These initiatives enable employees to better understand the company's culture and enhance their sense of identity and belonging.?.Creative Methods, Wider In?uenceIn ????, the company introduced live broadcast as a new promotional method, which not only expanded the reach of communication butalso enhanced interaction with employees and improved the e?ciency of information collection. Through the live broadcast platform, thecompany can transmit cultural activities and important meetings to employees in real time, allowing employees to experience the charm ofcorporate culture more intuitively. Furthermore, employees can interact with the company via the live broadcast platform, sharing theirfeedback and suggestions, thereby enhancing a sense of participation and motivation.?.Development of cultural and creative products, and enrichment of cultural carriersThe company actively develops cultural and creative products and enriches cultural communication carriers. By designing and producingcultural and creative products with company characteristics such as cultural shirts, notebooks, and keychains, the company integrates itscultural elements into daily necessities. This allows employees to accept imperceptibly the company culture while using these products,further spreading the company's cultural values.
.Innovative Cultural Promotion to Communicate Corporate Values
?Building Party Organizations and Reinforcing Political LeadershipThe company's Party committee framework has preliminarily reorganized, and the Party branch division logic has been readjusted underthe company's management model. The company's Party Committee has recruited ? new Party members and admitted ?? new Partymembers. By strengthening Party organization construction, the Party organizations' role as a stronghold and the exemplary vanguard roleof Party members are fully ful?lled, providing solid political assurance for the company's development.?.Trade union work to safeguard the rights and interests of employeesThe company's trade union diligently performs its duties in safeguarding the lawful rights and interests of employees. The company activelyorganizes employee welfare activities and help employees in di?culty to e?ectively address practical issues and di?culties for employees.?.Building the Communist Youth League, inspiring youth vitalityThe Communist Youth League organization of the company has carried out a series of distinctive activities centered around the company'score work, such as youth volunteer initiatives and the selection of outstanding young skilled workers. These activities have ignited the workenthusiasm and innovative vitality of young employees, injecting new momentum into the company's development.
.Building up the Party, labor unions, and youth leagues to enhancethe leadership of the organization
Party Branch Co-construction
Tree-planting activities
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(?) Successful completion of the particulate matter emission reduction and improvement project: In ????, the castingcompany will successfully complete the construction and acceptance of the particulate matter emission reduction andimprovement project. Through the special audit report, the implementation of the project has e?ectively reducedparticulate matter emissions, improved the air quality in the surrounding area, and created a cleaner living environmentfor residents.(?) Digital Carbon Emission Management for Accurate Control of Environmental Monitoring: The company has adoptedcarbon accounting software to conduct accurate calculation and digital management analysis of organizational carbonemissions and product carbon footprints. This software allows the company to monitor real-time carbon emission data,promptly identify issues, and implement targeted measures, thereby providing strong data support for achievingcarbon reduction goals.
Energy-saving and consumption-reduction initiativesto enhance energy utilization e?ciency
At the end of ????, the company built a rooftop distributed photovoltaic power station with a scale of ?.?WM. The annual powergeneration of ?.? million kWh not only meets part of the company's production and o?ce electricity demands but also reducescarbon dioxide emissions by ?,??? tons.In ????, the company is actively planning the second phase of the photovoltaic power generation project, which is scheduled forcompletion in the ?rst half of ????. By then, the annual power generation is expected to increase by ? million kWh, reducing carbondioxide emissions by ?,??? tons. The implementation of this project will further increase the company's proportion of greenenergy and drive progress toward its low-carbon and sustainable development goals.
Green energy transition, leading the way to a low-carbon future.
Promoting emission reduction initiatives for better air quality
The company's e?orts in environmental responsi-bility have not only laid a solid foundation for itsown sustainable development but also contribut-ed to the global ?ght against climate change. Weare fully aware that the Earth is our shared home,and protecting the ecological environment is anobligation that every enterprise must ful?ll.
?.? Environmental Responsibility
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CORPORATE RESPONSIBILITY PRACTICES
HENGLI HYDRAULIC CORPORATE SOCIAL RESPONSIBILITY (CSR) REPORT
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(?) Remarkable results in energy-saving transformation of equipment: The company has conducted a series of energy-savingupgrades for its equipment and facilities. Through measures such as time sequence control, frequency conversion retro?ts, and LEDreplacements, electricity consumption was reduced by ?.?? million kWh in ????, resulting in a carbon emission reduction of ?,???tCO?
. the company invested ?.? million yuan to replace the factory lighting with LED lamps, which reduces carbon emissions byapproximately ?,??? tCO
?
every year. These transformations not only reduce the company's energy costs, but also demonstrate itsstrong commitment to environmental protection.(?) Recovery of heat from steam condensate, turning waste into treasure: The installation of heat exchange devices successfullyrealized the recovery and utilization of steam condensate heat, which can save ??? tons of carbon dioxide emissions every year. Thismeasure not only improves energy e?ciency, but also reduces thermal pollution to the environment, achieving a win-win ofeconomic and environmental bene?ts.
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First Aid TrainingHigh Temperature Condolences-- ???? --
Employees are the most valuable wealth for the company. The company always adheres to the people-oriented development concept, andis committed to creating a good working environment and development opportunities for employees. By establishing a perfect welfaresystem, abundant humanistic care activities, and strict occupational health and safety management, the company makes employees feel thewarmth and care of a family, enhancing their sense of belonging and loyalty.
?. Increase the subsidy and enhance employees' sense of gainThe company has increased the comprehensive subsidy and housing subsidy for all employees, and the subsidy is increased by ??? - ???yuan according to di?erent positions, with an increase of ??% - ??%. This measure has e?ectively increased employees' income levels,alleviated their ?nancial burdens, and made them feel the company's care and respect.?.New Employee Subsidy, Boosting Your Career JourneyFor newly recruited college students, a living allowance of ?,??? yuan/person will be given by the company in the ?rst month of employment.This not only helps new employees alleviate the economic pressure at the beginning of employment, but also re?ects the company's impor-tance to the talent training, providing strong support for the career development of new employees.?.Dormitory construction to create a warm homeThe company has added two new sta? dormitory buildings, which will o?cially start construction in Aug. ???? and are expected to bedelivered in July ????. At that time, ??? employees can be accommodated, and the total number of employees in the company's sta? dormi-tory building will reach ?,???. The company is committed to creating a warm home for its employees, ensuring they can enjoy ample rest andrelaxation after work.
?.System construction and strengthen safety foundationThe company has established and improved the occupational health and safety management document system in accordance with theISO????? occupational health system, and conducts internal and external audits every year. Furthermore, an occupational health and safetycommittee headed by the general manager is established, and monthly meetings are held to study and solve major matters found in occupa-tional health and safety work in a timely manner. A perfect management system and organizational structure provide strong safeguards foremployees' occupational health and safety.?.Health management, care the physical and mental health of employeesThe company invests more than ?.? million yuan in employee physical examination every year, organizes all employees to receive compre-hensive health examinations, including routine physical examination items, and occupational health examinations for ??? occupationalhazard positions to timely discover potential health problems of employees, and achieve early prevention, early detection and earlytreatment of diseases, re?ecting the company's great importance to the health of employees. In addition to the original regular monitoringof hypertension and diabetes, the company’s in?rmary classi?es and ?les personnel with major diseases and hidden dangers of infectiousdiseases, and regularly supervises them for inspection in hospitals to avoid the progression of diseases. Furthermore, the company is alsoequipped with ? AED ?rst-aid equipment and ? additional medical points to escort the health of employees.?.Risk prevention and control to eliminate potential safety hazardsThe company organized and carried out the special action of "hazard identi?cation and risk assessment", identifying ?? major risks, andestablished a "red, orange, yellow, blue" four-color safety early warning mechanism. The company conducts ?? safety hazard inspectionsthroughout the year and addressed ??? issues for recti?cation. The "hazard-equals-accident" zero-tolerance approach helped eliminaterisks at the source, ensuring the safety of employees' lives.?.Management of external operations to ensure the safety of all partiesThe company supervised and managed the dangerous operations of foreign units ?,??? times a year, and provided safety training as well aslabor protection equipment such as safety helmets and re?ective vests for foreign workers. This not only ensures the safety of externalworkers but also maintains the company's normal production operations, preventing safety accidents caused by external operations.?.Emergency management and enhancement of response capabilitiesThe company organized ?? emergency drills for ?re ?ghting, limited space, and chemical leakage throughout the year, and innovativelyproposed the ???? ?re emergency response methods. Through frequent drills, the emergency response ability and self-protection aware-ness of employees have been improved. There were no ?res or serious injuries throughout the year, and ??? false alarms were reported byvarious departments. The corresponding recti?cation measures were made, thus e?ectively reducing the probability of work-relatedaccidents.?.Distributing cooling supplies to show care for employees working in high temperaturesDuring the high-temperature season, the company distributed cooling supplies worth nearly ? million RMB, bringing relief and care toemployees working in hot working environments. Meanwhile, the mutual medical insurance rate of employees has remained ???% for threeconsecutive years, providing additional medical security and alleviating employees' healthcare burdens.
Upgrade welfare guarantee and improve the quality of life of employees
Occupational health and safety management to ensure the life and health?.? Employee Responsibility
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Corporate Responsibility Practices
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
?.Summer Childcare Program to Relieve Employees' ConcernsSince the establishment of the employee childcare initiative in ????, the company has operated a summer childcare program to address thechallenge of employee child supervision, with expenditures exceeding ? million RMB. As of now, the program has provided childcare servicesfor ??? employees' children, alleviating employees' worries and enabling them to focus more on their work.?. The College Entrance Scholarship System Inspires Students to GrowThe company has established a scholarship system for employees' children who take the college entrance exam (Gaokao), awarding ??outstanding students annually. This system serves not only as an incentive for outstanding students but also as a source of motivation andsupport for employees' families. By recognizing exceptional students, it motivates more employees' children to study hard, pursueexcellence, and cultivates more outstanding talents for society.?. Industry- University -Research Collaboration Empowers Talent DevelopmentThe company has established "Hengli Order Classes" with three local vocational colleges, o?ering over ??? internship positions every year.Additionally, the company has built industry- university -research partnerships with multiple universities to provide students with practicalopportunities, promoting talent cultivation and the transformation of scienti?c and technological achievements.
Support for the cultivation of young talents to help future development
20242024
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In ????, facing the transformation of global manufacturing and the new "dual-circulation" development pattern, the company will anchorits in-depth advancement of globalization strategy, ?rmly pursue diversi?ed and electri?cation strategies, and focus on the "bottleneck"technologies breakthrough. It will accelerate R&D in cutting-edge ?elds such as electro-hydraulic components and control systems whiledeepening industry-university-research cooperation with global universities. By diversifying its technological capabilities, Hengli aims tobuild a robust competitive barrier. Relying on the core product matrix such as compact hydraulic valve group, high-pressure and heavy-dutypump valve, servo hydraulics, and electric drive, the company will continue to expand downstream ?elds such as construction machinery,agricultural equipment, new energy, precision machining, and marine engineering; empowering sustainable development with green andintelligent manufacturing, optimizing production processes to reduce energy consumption, and practicing the concept of sustainabledevelopment o?er more e?cient and reliable technical solutions for global customers.Hengli people will always uphold the mission of serving the nation through industry, climbing new heights in technological breakthroughs,and writing brilliant chapters through responsibility and commitment. We steadfastly pursue our vision of 'Becoming an outstanding suppli-er of high-end transmission equipment and a leading provider of transmission solutions'!
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Corporate Responsibility Practices
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
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?.Intelligent canteen to satisfy your taste budsThe company invested ?? million yuan to build a new hydraulic technology sta? canteen. The company's sta? canteens now serve nearly??,??? meals daily and over ? million annually. All associated expenses are borne by the company.?. Birthday care, conveying warm wishesThe company pioneered the "Employee Birthday Gift" care system. On an employee's birthday, a thoughtfully prepared gift and a warmgreeting allow them to feel the company's care in their busy work, enhancing their sense of belonging and loyalty. In addition to birthdaybene?ts, the company also customizes anniversary gifts for employees, and holiday bene?ts for outstanding employees. In ????, ??,???customized gifts will be distributed, with an expenditure of more than ? million yuan.?.Cultural activities to together team strengthThe company has carried out ?? cultural activities such as the New Year theme, Mid-Autumn Festival and National Day, with more than??,??? participants. These activities have enriched employees' leisure time, enhanced communication and interaction among sta?, andcreate a positive, collaborative, and united corporate culture. Through these activities, employees experience the power of teamwork andthe company's strong cohesion.
Humanistic care upgraded to enrich the spiritual life of employees
Future Prospects
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Economic Performance
Operating revenue
Key Accounting DataUnit
??,??? yuan??,??? yuan??,??? yuan??,??? yuanYuan/share%
Net pro?t attributable to shareholders of thelisted companyNet pro?t attributable to shareholders of thelisted company after deducting non-recurringpro?ts and lossesNet cash ?ow from operating activitiesBasic earnings per shareWeighted average return on equity
2022???,???.?????,???.?????,???.?????,???.???.????.??
2024???,???.?????,???.?????,???.?????,???.???.????.??
Corporate Governance Performance
Number of board members
Quantitative Performance Indicato
Number of independent directorsNumber of male members on the board of directorsNumber of female members on the board of directorsNumber of board meetings heldNumber of audit committee meetings heldNumber of strategic committee meetings heldNumber of shareholders' meetings heldNumber of supervisors board meetings held
Unit
PersonPersonPersonPersonTimesTimesTimesTimesTimes
2022?????????
2024?????????
R&D Performance
R&D investment amount
Quantitative Performance IndicatorUnit
??,??? yuan%人%Ratio of R&D expenses to operating revenueNumber of R&D personnelProportion of R&D personnel
2022??,???.???.????????.??
2024??,???.???.????????.??
Resource utilization performance
Power consumption
Quantitative Performance IndicatorUnit
MWhm
?
m
?
Natural gas consumptionWater consumption
2022
???,???.????,???,??????,???
Greenhouse Gas (GHG) EmissionsManagement Performance
Total greenhouse gas emissions
Quantitative Performance Indicator
Total Scope ? Greenhouse Gas EmissionsTotal Scope ? Greenhouse Gas Emissions
2022
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UnittCO?etCO?etCO?e
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Key Quantitative Performance
Hengli Hydraulic Corporate Social Responsibility (CSR) Report????
2023
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2023
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2023
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2024
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2023
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Note: In 2024, the company adopted SGS-certi?ed organizational carbon emission accounting software and product carbonfootprint accounting software to improve and standardize accounting standards and emission factors, while implementing digitalmanagement and information archival of carbon emission data. The company's largest manufacturing plant, the Hydraulic CylinderFactory, has conducted greenhouse gas veri?cation in accordance with ISO 14064 and obtained TUV certi?cation.
Jiangsu Hengli Hydraulic Co., Ltd.
No.?? Longqian Road, Wujin District, Changzhou ??????TEL：+?? ?????? ????E-mail：hengli@henglihydraulics.comWeb：www.henglihydraulics.com
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