Stock Code：300109
Phone：0391-8696320Address：No. 1888, Culture Road (East),Boai County, Jiaozuo City, Henan Province, ChinaWebsite：www.boai-nky.com
Boai NKY Medical Holdings Ltd.
Environmental, Socialand Governance (ESG) Report
用心创新
Table of Contents
About This ReportStatement of Chairman
About NKY
Company ProfileCompany GrowthEnterprise CultureIndustrial Distribution
Commitment to Corporate GovernanceParty Building Leads to Development
Protect Environment with Efforts
Focusing on Governance,Consolidatingthe Foundation to Move Steadily Forward
Concentrating on Creation, Devotingto Furture Research and Development
Ensure Good Quality with Craftsmanship
Contributing to Society,Doing Public Welfare
Moving Forward Together,Building a Harmonious Family
Responsible Environmental ManagementRegulate the Use of EnergyEnsure Clean Emissions
Assure Quality RigorouslyStrengthen Security BaselineSustainable Supply Chain
Focus on Science and Technology InnovationProtect Information Security
Protect Employees’ Rights and InterestsContribute to Employees’ DevelopmentMaintain the Occupation Health
Care Employees’ lifePay attention to Public WelfareESG Management
TopicRemain True to our Original Aspirationafter Struggling for 20 Years
Stakeholders CommunicationSubstantive Issue Matrix
AppendixIndex TableFeedback Form
Looking back to the challenges we’ve overcome, we remain true to our original aspirations so that to win more success. 2023 wasa very critical year in the history of the Company’s development. In the context of national Carbon Peaking and Carbon Neutralitypolicy and the new situation of increasingly fierce market competition and rapid technological progress, we maintained the spirit of“breakthrough”, the momentum of “innovation”, and the style of “getting things done”. And under the guidance of annual work policy,we adjusted ourselves according to the situation, actively responding to new challenges, fully achieving various business objectives,and continuing to write a new glory for the Company.Solidify governance for steady progress. In 2023, we was always committed to improving the Company's governance system,maintaining communication with investors, ensuring compliance disclosure of informationwith openness and transparency. At thesame time, we continuously strengthened internal control and upheld business ethics to lay a solid foundation for the Company’ssustainable development. In addition, we adhered to party building to lead high-quality development and made a contribution to theCompany’s growth and the revitalization of the nation.Going green for environment protection. In 2023, we continued to optimize the environmental management system, clarify andimplement the environmental responsibility system, strengthen environmental risk management, and enhance the emergencyresponse capability of our staff. To be specific, we actively carried out environmental protection training, and advocated green office,strictly controlled the three wastes and ensured that the emissions are up to the standard. Moreover, we strengthened themanagement of water resources, and endeavored to build a water-saving Company, so that we could practice our commitment tothe earth with actions.
Statement of Chairman
Strengthen cooperation for win-win situation. In 2023, adhering to the concepts of quality first and production safety, wecontinued to improve the quality management system, supplier assessment and grading management to promote the digitaltransformation of the supply chain. And the responsibility system for production safety was completely implemented and a solidbottom line for production safety was built with the help of the intelligent safety and emergency comprehensive supervision platform.Moreover, in order to meet customer satisfaction, we strengthened the management of the customer complaint process andafter-sales service, so as to effectively safeguard the rights and interests of customers.Strive for excellence by innovation. In 2023, more efforts were put to increase the introduction of research and developmentpersonnel to inject vitality into the development of innovation. And we constantly explored and introduced new technologies,stimulated the transformation of scientific and technological achievements, fully grasping the market opportunities and deepeningproduct development, structural adjustment and technological innovation. At the same time, we also protected our intellectualproperty rights through intellectual property rights investigation, training and other means.Joint hands for the development of Boai. In 2023, we implemented equal and democratic management to ensure that employeescould give full play to their potential and realize their personal values;. To be more specific, we continuously improved the trainingsystem to provide employees with diversified learning and development opportunities to help them grow. In the way, it couldoptimize the occupational health and safety management system to safeguard the occupational health of employees.Enthusiastic dedication for presenting the images of Boai. In 2023, we carried out employee physical examination and establishedmental health care system with all-round attention to the physical and mental health of employees. In detail, through the provisionof Chinese New Year benefits and other ways, we showed love and care to the retirees. Additionally, we devoted into the charitableassociations of the Joint General Association of Scholarships, donations to combat natural disasters and other public welfare projects,to give back to the community and pass on the positive energy through actions.It is the best time to create a better future. In 2024, we will stick to the original aspiration of “Diligence and Innovation”, strive to openup new fields and new tracks in the development of PVP industry and give birth to more new technologies and new industries. Allin all, we aim to write a new chapter of high-quality development with better services and products, contributing to the developmentof China’s new polymer materials, functional chemicals and pharmaceutical products in China.
Chairman of NKY
0403
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
0605
About NKY
Boai NKY Medical Holdings Ltd (NKY, stock code: 300109) is a leading company to research, developand manufacture polyvinylpyrrolidone (PVP) series products in China. With more than 30 years’experience, we have made great progress in improving the production technology and automaticcontrol level, perfecting the industrial chain structure, expanding the production scale and improvingthe quality management level. We occupy an important position in the global PVP industry pattern, andare also one of the leading enterprises capable of producing PVP products and high-purity vinyl etherintermediates in China. Based on the production of health care products and Precision Medicine Sectorservices, we are committed to technological innovation and new product development. With the aim ofsustainable development and the concept of fraternity, we are devoted to researching technology andquality, serving the general public and creating a better life.
Company Profile
Group Organization Chart
Boai NKY Medical Holdings Ltd.
Wuhan Heer Medical Technology Development Co., Ltd.
Eastwin Scientific Equipments Inc.
Genergy Bio-Technology (Shanghai) Co., ltd.
Beijing NKY Precision Medicine Technology Co., Ltd.
NKY (Shanghai) Medical Technology Co., Ltd.
Tianjin Boai NKY International Trade Ltd.
BOAI NKY Chemicals GmbH (Germany)
NKY (Jiaozuo) Polymer Materials Co., Ltd.Changsha Sanji Bio-technology Co., Ltd.
Boai NKY Biological Technology Co., Ltd.Boai NKY Pharmaceuticals Ltd.
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
Milestones of Development
1987
NKY founded andbecame the first PVPmanufacture in China.
1995
The establishmentof the first branch
factory.
2003Completion ofthe restructuringof privateenterprises.
2006Formation of an internationalmarketing team andintroduction of the chiefscientist, Mr Herbert WilhelmUlmer (Herbrt).
2008Established Tianjin Boai NKYInternational Trade Ltd.Researched and development ofOraRez series products, whichwere currently the onlybenzene-free PVM/MA seriesproducts globally.
Looking back on the vibrant development process of more than thirty years, we have experienced ups and downs. With the spiritof exploration, we forge ahead courageously and continuously grow through hard work, rising and thriving in adversity. A series ofhistorical moments witnessed our magnificent transformation from nothing to something, from small to large.
2014Planning Fine Chemicals Sectorand healthcare dual-main business
strategy, merging and acquiring
three precision medicinecompanies, Sanji Bio-technology,Wuhan Heer Medical and GenergyBio-Technology, which passed theapproval of the Securities andFutures Commission (SFC) in 2015.
20132011
Construction of theproject with an annualoutput of 10,000 tons ofvinyl methyl ether/maleicanhydride copolymer and10,000 tons ofpolyvinylpyrrolidonecommenced.
2010Listed on ShenzhenStock Exchange as apublic company andissued 9 million shares toraise RMB 270 million.
2009Annual production reached
4,000 tons.Converted into a joint stockcompany and prepared forIPO(Initial Public Offering).
2015Becoming the first pharmaceuticalexcipient production enterprise inChina to obtain EXCiPACT GMPCertificate.Completed theconstruction of the "HealthcareService Platform" and NKY
healthcare.
2018
The new R&D Centre inJiaozuo was inaugurated.The Company’s factorypassed the US FDA (for thesecond time) third party
audit.
Started theconstruction of PVPseries new materialproject in JiaozuoZhongzhan Chemical
Engineering Park.
20222020Construction hasstarted on thePrecision MedicineSector Industry Base inSongjiang, Shanghai.
2023The first phase of the NKY(Jiaozuo) polymer materialsproject was completed andput into production.Shanghai Songjiang PrecisionMedicine Sector Industry Basewas put into production.
The first phase of theproject with an annualproduction capacity of
10,000 tons of vinylmethyl ether/maleicanhydride copolymer and
10,000 tons ofpolyvinylpyrrolidone wascompleted and moved tothe new plant.
0807
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing to
Society
Enterprise Spirit
DiligenceInnovation
Code of ConductMake the Product Fine,Do the Work Fine
Values
Honesty and Accountability,Aiming for Excellence,Embracing Innovation,Promoting Integrationand Sharing Progress.
Mission
Serving Customers,Achieving Employees,Rewarding Shareholders
and Benefiting Society
VisionWorld-class Products,Centuries of Excellence
At present, the main business of NKY is divided into two segments, Fine Chemicals Sector engineering and precision medicine,with different development modes to synergize and promote the Company’s growth.In the field of Fine Chemicals Sector engineering, the Company is the first high-tech enterprise in China that focuses on theproduction, R&D and sales of polyvinylpyrrolidone (PVP) series products and vinyl methyl ether and maleic anhydride copolymer(PVME/MA) series products. Moreover, we are also the first enterprise in China that have the ability to produce PVP K12 (powderand liquid), PVP K90 and PVP K60 powder and K120 powder on a large scale. Our products are widely used in many modernindustrial fields, such as daily-use chemicals, pharmaceutical industry, brewing and beverage industry, pigment and coatingindustry, textile industry, paper industry, oil extraction, photographic materials and electronic industry.
Enterprise CultureIndustrial Layout
Innovation, Dedication to Tasks,Broad Origins and Enduring Flow.NKY, with the long accumulationof history, always maintains thedynamic spirit of innovation,adheres to the belief ofdedication to tasks, and seeks asustainable future.
Xin: NKY has always been concerned about and committed to the forefront of medicaltechnology, research and development concepts, technology and equipment,customer experience, management systems, etc. We insist on being close to orleading the forefront with a dedicated, innovative mindset and proactive approach,akin to fresh growth on a whetstone, enduring like the beginning.Kai: We focuse on developing and researching technology, mastering cutting-edgemedical concepts, transforming the most advanced scientific research achievementsin medical science into applications, and bringing the most suitable life and healthtechnology solutions to the most needed social audience.Yuan: NKY was founded with a focus on the medical field, dedicated to exploring thetruth of diseases and improving the quality of life. With a compassionate heart thatremains unchanged, we aim for enduring development and broad impact.Remembering the original aspiration is the key to persistence.
A list of the main products in the field of Fine Chemicals SectorButyrolactone2-PyrrolidinoneN-VinylpyrrolidonePolyvinyl Pyrrolidone SeriesCopper Glycinate and other VP/VA Copolymer Series Products
Polyvinyl Pyrrolidone Cross-linkedPolyvinyl Pyrrolidone and Related Pharmaceutical Intermediates
Polyvinyl Pyrrolidone K12 (Powder and Liquid)Polyvinyl Pyrrolidone K90 and Polyvinyl Pyrrolidone K60 Powders
K120 Powder
In the field of precision medicine, theCompany focuses on early diagnosis oftumors, molecular diagnosis, genetictesting and other medical services. What’more, hawse have built a medical serviceplatform featuring “precision medicine”and “female health” on the basis of thethree technologies of “device-side”,“reagent-side” and “service-side”. On thisbasis, we continue to explore the potentialof the precision medicine business.
Device-side
Reagent-side
Service-side
It is equipped with fully automated cellular
tumor screening and analysis system,
real-time fluorescence quantitative PCR
detection system, gene amplifier and other
devices.
All self-produced devices are equipped with
self-produced reagents.
We can provide single-cell sequencing,
high-throughput sequencing and other
services, providing a perfect overall solution
for scientific research, medicine and health
testing in the field of life sciences.
The fieldof Precision
Medicine
Precision MedicineFemale Health
Industrial Layout
Industrial Sector
Food ManufactureDaily NecessitiesChemical Engineering
OtherIndustriesPolyphenol Adsorption, Filtration Treatment inBrewing IndustryOral CareCosmetic Additives
Binder for oral preparations
Coating Materials andDisintegrating MaterialsPolyvinyl Pyrrolidone IodineSterilized Water
Main Uses of PVP
Patterns of Development in the Field of Precision Medicine
TraditionalPharmaceuticalIndustry
1009
Business PhilosophyTaking quality management as theprogram of our management,technical innovation as the survivalfundamental, customer satisfactionas the yardstick to measure ourwork to create a brand name as our
goal.
Corporate Philosophy
Various CoatingsProcessing Aids for Water Treatment MembraneMaterialsOil and Gas ExtractionNew Materials for Artificial Dialysis MembraneDispersants for Lithium Battery ConductiveSystem and Conductive Material Processing Aids
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
Upholding the concept of environmental protection as an important part of the corporate social responsibility, the Companycontinuously improves the efficiency of comprehensive resource utilization, and promotes the sustainable development of theenterprise and the environment. At the same time, the Company attaches great importance to the rights and interests of investors,customers, employees, partners and other stakeholders, actively listens to and responds to their concerns about ESG issues, andestablishes solid cooperative relationships through a variety of communication channels.
Stakeholders Communication
ESG Management
As a responsible listed company, NKY has always insisted on green, low-carbon and high-quality development andcontinued to promote the Company to improve the environmental, social and corporate governance system. Moreover, weproactively integrate ESG management into the Company’s development strategy, production and operation, incorporatingthe enhancement of the level of ESG governance into the Company’s development direction. In this way, we can graduallyplay the roles of ESG management and practice to promote the Company's sustainable development.
StakeholdersExpectations and ClaimsActionsCompliance OperationPaying Taxes according to the LawEnvironmental Protection
Compliance with Laws and RegulationsActive Tax PaymentLow Carbon DevelopmentImproving Corporate GovernanceTimely Information DisclosureDividend returns
Enhancing Internal ControlsRegular Information DisclosureProtect Shareholders’ Rights and InterestsPrivacy ProtectionAfter Sales ServiceProduct Quality and Safety
Protecting Customer PrivacyCustomer Satisfaction SurveyStrict Quality ManagementSupply Chain ManagementMutual BenefitsCo-development
Building a Responsible Supply ChainCommitment to Business EthicsCo-operation and CommunicationEstablishment of Career Development ChannelsRich Compensation and BenefitsEnsure Occupational HealthProtect the Rights and Interests of Employees
Improvement of Internal Management SystemEmployee Work and Life ProtectionStrengthen the Construction of Occupational HealthEmployee Communication and Feedback Mechanism
SuppliersClientInvestor
Government
Employees
Communities
Social WelfarePublic Welfare DonationsEnergy Saving and Emission ReductionProtecting the Ecology
Energy SavingsGreen OfficeEnvironment
In determining ESG issues, the Company fully draws on relevant ESG standards and other corporate best practices, taking intoaccount the Company’s development strategy and industry characteristics and establishing a mechanism for identifying materialissues. To conclude, we determine the annual materiality of the issues through analyses and researches of internal and externalrelated parties.
In 2023, the Company identified atotal of 15 substantive topics.
Substantive Issue Matrix
Identify
Identify and determine important issues in accordance with national policies, requirements of relevant regulatory
bodies, ESG standards, and the Company's development strategy.
Evaluate
Actively communicate with stakeholders to understand their major issues of concern and to assess the level of
importance of the issues against those of the industry and Company.
Screen
Screen and rank the materiality issues in terms of “importance to the Company” and “importance to
stakeholders” to form a materiality issues matrix.
Substantive Issue Analysis Process
Very HighVery High
| High | Very High |
Importance to Stakeholders
Importance to the Company
Community ContributionStaff Training and Development
EnvironmentalManagementThree Waste ManagementCorporate GovernanceBusiness EthicsInvestor RelationshipManagement
R&D and InnovationOccupational Health andSafetyProduct Quality andSafetyRisk Management
Information Security andPrivacy ProtectionWater ManagementEmployee Compensation andBenefitsLabor RelationshipManagement
1211
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
1413
Remain True to our OriginalAspiration after Struggling for 20 Years
Topic
Construction of an Entirely New Base
Recalling the past years; looking at the present day to make new prosperity. 2023 was the 20th anniversary of thereorganization of NKY, so the Company held a grand celebration activities. Over the past twenty years, the Company hasconcentrated on manufacturing and focused on research and development. Based on the domestic, we explored the worldand contributed to improving the technical level of China’s new polymer materials, functional chemicals and pharmaceuticalproducts, promoting the development of China’s chemical engineering and pharmaceutical industries.
On 21st May 2023, to celebrate the 20th anniversary of restructuring and the completion and launch of the new project ofNKY (Jiaozuo) Polymer Materials Co, Ltd, the Company held an unprecedented celebration. Leaders of Jiaozuo MunicipalPeople’s Government, the Company’s chairman and customer representatives from all over the world came to the scene andwitness this historic moment. After the celebration, the Company invited the guests to the headquarters for a site visit,deepening their understanding of the Company’s technology, products and corporate culture , and further promotingcooperation and win-win situation.
Leadership in Development Technology
In 2023, NKY continued to deepen its technological research, promote industry innovation and development. And we activelyparticipated in well-known research forums and industry summits both dometic and abroad to enhance international visibility andhelp shape the Company’s image and brand.
Based on a new starting point, we are heading for a new journey and forging a new glory. On the occasion of the 20th anniversaryof restructuring, the Company has ushered in a brand-new stage of development and will embrace more opportunities andchallenges in the future. The Company will continue the “fine products, fine work” of the original aspiration, from the past journeyto draw the power to move forward, strive for excellence, and effectively meet the needs and expectations of all sectors of society.With “Intelligence” and “Innovation”, NKY strives to win the first opportunity for development, achieving the vision of “World-classProducts, Centuries of Excellence”.
the Twentieth Anniversary of NKY Restructuring and Start-up Celebration for New Project Completion ofNKY (Jiaozuo) Polymer Materials Co, Ltd.
Taking Guests on a Field Trip to the Company's Headquarters
On 29th March 2023, the world’s top cosmetic raw materials industry exhibition “In-cosmetics Global” was successfullycarried out in Barcelona, Spain. NKY brought its own innovative cosmetic raw materials to the exhibition, and demonstratedthe excellent quality and safety of the Company's products to the attendees from all walks of life. Through the on-siteexplanation, the Company fully demonstrated our scientific and technological strength, product advantages and the abilityto provide international solutions.
Attending In-cosmetics GlobalCase
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon Creation
Topic
Environmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
On 16th May 2023, the 15th China International Battery Fair (CIBF2023) hosted by China Chemical and Physical PowerIndustry Association (CCPPI) was held as scheduled. NKY brought PVP ultra-low moisture conductive paste dispersant andrelated technologies to the exhibition for the first time, attracting the attention of many participants. Through this event, theCompany deeply understood the dynamics of industry’s cutting-edge technology, and discuss potential applications withmany partners actively, further establishing the Company’s new image in the industry.
The15th China International Battery Fair
“The 15th Watertech China” was grandly opened on 5 June 2023 in Shanghai National Convention and Exhibition Centre.NKY appeared in the exhibition, showing the green PVP series products. Through the exhibition, the Company not onlydeepened the trust and friendship with existing customers, but also laid a solid foundation for cooperation with potentialcustomers, injecting new vitality for future market expansion.
The fifth Watertech China
On 18th October 2023, NKY, together with the Great Health Research Centre of China Industrial Securities Co., Ltd., jointlyheld a grand G60 Biomedical Industry Base Cell and Gene Therapy Innovation Forum. The forum gathered more than 150outstanding representatives of the biomedical industry from all over the country to seek new opportunities for cooperationand talk about a new stage of industrial development.At the forum, the chairman and general manager of the Company introduced the “NKY Songjiang Precision Medicine SectorBase” to the industry and investment community, fully demonstrating the Company’s profound strength andforward-looking layout in the field of precision medicine. Subsequently, the four cell and gene therapy companies investedby the Company introduced the latest progress of their respective R&D pipelines, highlighting the Company’s innovativestrength and continuous investment in the field of biomedicine.The successful holding of this forum not only demonstrated the stage-by-stage results achieved by the Company’s medicalsegment, but also highlighted the Company’s determination and strength to firmly promote the innovative development ofChina’s cell and gene therapy profession and industry.
Successfully held G60 Biomedical Industrial Base Celland Gene Therapy Innovation Forum
1615
Case
CaseCase
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon Creation
TopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
1817
On 18 October 2023, the 89th China ActivePharmaceutical Ingredient API / Intermediates/ Packaging / Equipment Trade Fair (APIChina) and the 27th China InternationalPharmaceutical (Industry) Exhibition andTechnology Exchange(CHINA-PHARM) wereheld in Nanjing International Expo Centre.And NKY brought high-quality products to theexhibition, which attracted the attention andpraise of many people inside and outside theindustry. The Company will unswervingly takeinnovation as the core driving force, promoteindustrial upgrading, and contribute to thecontinuous progress and development of thepharmaceutical industry.
Attending the 89th China Active Pharmaceutical Ingredient API / Intermediates / Packaging / Equipment Trade Fair (API China)
Layout of Global Markets
NKY always engages into the process of globalization with a positive attitude and makes global layout with an openvision. So the Company gradually moves to the center of the world stage and ranks among the world’s first-classstandards by virtue of our excellent technology and product strength. By the end of the reporting period, the Company’sproducts have covered more than 60 countries and regions around the world.
On 24th October 2023, 2023 InternationalPharmaceutical Ingredients Exhibition (CPhIWorldwide) was held in Barcelo, Spain.Leaders such as Chief Scientist of NKY,General Manager of Chemical EngineeringSector and General Manager of NKYChemical Engineering in Germany attendedthe exhibition with relevant teams anddisplayed a series of high-qualitypharmaceutical excipient products, whichfully demonstrated the Company’sinternationalized and professionalized image.
Attending Chemical Pharmaceutical Ingredient Exhibition (CPhI Worldwide)
Academic research, as the deep foundation for exploration in the medical field, provides constant inspiration and supportfor technological innovation and progress, and is a solid cornerstone for the development and innovation of medicaltechnology. Therefore, the Company has established comprehensive and in-depth cooperation with the European Societyof Medical Oncology and other internationally renowned universities and institutions.
Case
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
Adhering to the mission of “Rewarding shareholders and benefiting society”, NKY integrates the concept of sustainabledevelopment into corporate governance. In addition, we continue to improve the governance structure, standardizingthe operation of the three committees, strengthening communication with investors, strengthening internal controland strictly adheres to business ethics. In this way, we can promote the high-quality development of the Company.
Our PhilosophyResponsive SDGs
Focusing on Governance,Consolidating the Foundation to MoveSteadily Forward
Three-Committee Governance
NKY strictly abides by the Company Law of the People's Republic of China, the Securities Law of the People's Republic of China, the Code ofGovernance for Listed Companies, the Guidelines for the Standardized Operation of Companies Listed on the Growth Enterprise Market of the ShenzhenStock Exchange and other relevant laws and regulations of the State and the Securities and Futures Commission. Besides, we haveformulated the Articles of Association, and established the governance structure consisting of the General Meeting of Shareholders,the Board of Directors, the Supervisory Committee and the senior management. The Company emphasizes the diversity of theBoard of Directors, clarifies the responsibilities of all parties, fully respects the independence of independent directors, and workstogether to maintain the Company’s compliance and sound operation. Under the Board of Directors, there are four specializedcommittees, namely Strategy Committee, Nomination Committee, Audit Committee and Remuneration and Evaluation Committee,each comprising five members.
The Company clarifies the convening and convening procedures of the General Meeting of Shareholders, the Board of Directors,the Supervisory Committee in accordance with the Rules of Procedure for the Shareholders’ General Meetingthe Rules of Procedure for theBoard of Directors, and the Rules of Procedure for the Board of Supervisors, so as to effectively safeguard the shareholders’ rights toinformation, participation and voting through the General Meeting of Shareholders.The Company has formulated the Implementing Rules of the Remuneration and Evaluation Committee of the Board of Directors, specifying thatthe Remuneration and Evaluation Committee is responsible for the incentive and restraint mechanism for directors and seniormanagement, ensuring a high degree of transparency in the management of the remuneration of the Board of Directors and seniormanagement. During the reporting period, the Company continued to improve the performance appraisal system andremuneration system for directors and senior management, linked performance appraisal to income, released 1,464,000 restrictedshares of 2021 restricted shares for directors and senior management, and granted 350,000 reserved shares of 2021 restrictedshares to senior management.
Commitment to Corporate Governance
Investor Relationship Management
The Company strictly abides by the requirements of Administrative Measures for Information Disclosure of Listed Companies and hasformulated systems such as Internal Reporting System for Material Information and Investor Relationship Management System. Moreover, theleadership of the Board of Directors manages the disclosure of information, and the Secretary of the Board of Directors isresponsible for the specific coordination and organization of information disclosure and other matters to ensure that the relevantinformation is disclosed in a true, complete, accurate, timely and fair manner. During the reporting period, the Company discloseda total of 4 periodic reports and 102 interim reports to the public.The Company designates Securities Times, China Securities Journal, Shanghai Securities News, Cninfo(http://www.cninfo.com.cn) , and Shenzhen Stock Exchange as the official information disclosure channels. And we communicateand interact with investors through diversified communication methods. Besides, the Company earnestly receives visits andinquiries from investors and research institutions, safeguards the legitimate rights and interests of investors in accordance with thelaw, promoting the discovery and recognition of the investment value of the Company by the capital market. During the reportingperiod, the Company’s information disclosure grade was B.
Composition of the Board of Directors, Supervisory Board, and Various Committees
Strategy CommitteeNomination CommitteeAudit CommitteeRemuneration andEvaluation Committee
Shareholders’General Meeting
Board ofDirectors
SupervisoryCommittee
Governance Structure
/
GeneralShareholders’ Meeting
1048
Board of Directors
Board ofSupervisory Meetings
Audit Committee
Strategy Committee
Nomination Committee
Remuneration andEvaluation Committee
Diverse Board Composition
Male Directors
Female Directors
Disclosure by Gender
Independent Directors
Non-independent Directors
Disclosure by Type
2221
Number of persons/personNumber of meetings held
Consideration of the numberof adopted motions
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
In order to further protect the interests of small andmedium-sized investors and strengthen thecommunication with investors, NKY held the onlinemeeting of the 2022 Annual Performance BriefingSessions on May 12, 2023. At the meeting, thechairman, vice chairman, independent directors,secretary of the board of directors and chief financialofficer attended together to answer the questionsand solve the problems of the shareholders, whichdeepened the investors’ understanding andrecognition of the Company.
Conducting the 2022 Annual Performance Briefing Sessions
On May 18, 2023, “Sincere Communication, Transmitting Value -Henan Jurisdictional Listed Companies 2023 OnlineCollective Investor Reception Day Activity” was held at Panorama Roadshow. The secretary of the board of directors ofNKY attended the activity on behalf of the Company, who gave a detailed introduction of the excellent marketperformance of OraRez products, indicating that the Company will continue to promote technological progress and striveto create value for customers and returns for shareholders.
The Company pays out cash dividends to reward investors, aiming to boost investor confidence and loyalty and promote theCompany's long-term development.
Participation in the 2023 Online Collective Reception Dayfor Investors of Listed Companies in Henan Jurisdiction
Key Performance
Key Performance
Number of on-siteInvestor Surveys
Number of InvestorsAttending on-site Surveys
Number of InvestorQuestions Answered
Response Rate toInvestors' Questions
90%
Number of Interactions on theShenzhen Stock Exchange's“Interactive Easy” Platform
Number of InvestorOpen House Sessions
Number of Investor Calls Answered
Number of Communications via Email/Social Platforms
2021
Cash Dividend per share
0.51 RMB/Share
Total Cash Distribution (including Tax)16,789.22 Ten Thousand RMB
2022
Cash Dividend per share
0.50 RMB/Share
Total Cash Distribution (including Tax)
16,195.27 Ten Thousand RMB
2023
Bonus Shares per ten shares 2Cash Dividend (including tax)10 RMB/ten sharesCapital Reserve Was Converted into3 shares
Total Cash Distribution ( including Tax)32,260.18 Ten Thousand RMB
DiversifiedInvestorCommunication
PerformanceBriefing SessionsInteractive
Easy
Shenzhen StockExchange GrowthConnect
Investor Survey
InvestmentExchange
Securities TimesChina Securities
Journal
Shenzhen Stock
ExchangeCNINFO
InformationDisclosure Channel
2423
2022 Annual Performance Briefing Sessions
2023 Online Collective Reception Day for Investors of Listed Companies in Henan Jurisdiction
Case
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
Internal Control
In accordance with the provisions of the Basic Standard for Enterprise Internal Control and its supporting guidelines and otherinternal control regulatory requirements, the Company has formulated internal control systems and evaluation methods, such asthe Internal Control System, Internal Audit Management System and Compendium of Internal Control Processes. In addition, we also haveestablished and improved the Company’s internal control system, carried out internal audits on a regular basis, strengthening theinternal control and standardizing the Company through a combination of daily supervision and special supervision operation.Therefore, it can continuously optimize the management process and internal supervision mechanism, and enhance the riskprevention capability. In 2023, the Company conducted a comprehensive internal audit and issued an internal audit report.
The Company advocates all employees and stakeholders to consciously resist corruption, encouraging our employees to report tothe Audit Department by telephone and other means to expose all kinds of disciplinary violations. In addition, we promise to keepthe acceptance of the report, the investigation and other aspects as well as the personal information of the informant strictlyconfidential. Upon receiving the report or complaint, the Audit Department shall immediately register and investigate it accordingto the jurisdiction.For employees in important positions and important links, the Company has implemented a commitment system for the preventionof commercial bribery, requiring managers and important positions to sign the Employee Commitment to Anti-Graft and Anti-Corruption,and requiring relevant parties with business dealings with the Company to sign the Commitment to Integrity in Practice. By doingso, we aim to strengthen the supervision and management of improper behaviors, such as graft and corruption and commercialbribery. In 2023, the Company's signing rate of commitment to anti-corruption and anti-corruption commitment was 100% and thesigning rate of the Commitment Letter for Integrity in Business was 100%.
Business EthicsIn order to strengthen the construction of business ethics in the process of production,operation and management, and effectively manage anti-graft and anti-corruption andanti-commercial bribery, the Company has formulated the Anti-graft and Anti-CorruptionSystem. To be specific, we have established the leading organization for the governanceof business ethics and identified the Audit Department as the coordinating and managingdepartment responsible for the governance of work related to business ethics,supervision and auditing. Moreover, we have continuously improved the internal controlmechanism, strengthened the system of supervision and promoted the system ofanti-corruption to strengthen the prevention and treatment of corruption from thesource. To establish a clean and clear business atmosphere, we have prevented andgoverned corruption, insisting on treating both the symptoms and the root causes,ensuring a long-term mechanism for governance against corruption and anti-corruptionand preventing all kinds of improper behaviors from occurring.
Organizational Structure of theLeadership Body for BusinessEthics Governance
Structure of the Branch Committee
Board of Directors
Audit CommitteeAudit Department
Party Building Organizations
NKY has implemented the spirit of General Secretary Xi Jinping’s instructions on party building. We have comprehensivelystrengthened the ideological, organizational, work style, and institutional construction of party branches to fully play the role ofparty organizations as bridges and bonds and the role of party branches as bastions. Moreover, we adhere to the party buildingwork and production and management objectives "with the deployment, with the inspection, with the assessment, with therecognition", guiding party members to base themselves on their positions, blazing new trails, fully playing the role of pioneers andmodels, and escorting the Company’s sustainable development. As of the end of the reporting period, the Company has a total of3 party branches, 45 party members, and held 9 party committee meetings.
Complying with the general requirements of “Learning Ideology,Strengthening Party Character, Emphasizing Practice and BuildingNew Achievements”, NKY regularly carries out party buildingactivities such as branch committees and theme party daysaccording to the requirements of the “Three Meetings and OneLecture System”. By doing so, we hope the party members toimprove their ideological and political qualities and to change theirworking styles and promotes the construction of party membersand grass-roots party organizations. In addition, we carry outeducation and study of party history on a regular basis, conductsin-depth study and implementation of the theme of Xi JinpingThought on Socialism with Chinese Characteristics for a New Era sothat we organically combines party building activities withproduction, operation and management.
Party Building Leads to Development
Party Building Activities
Group Party BranchWuhan Heer Medical Party BranchSanji Bio-technology Party Branch
Party Organization
Commissary in Charge
of Organization
Commissary inCharge of Publicity
Branch Secretary
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Statement of ChairmanAbout NKYESG Management
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Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
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Contributing toSociety
In 2023, the Party branch of NKY regularly organized its employees to study the spirit of the 20th Party Congress and XiJinping's Thought on Socialism with Chinese Characteristics in the New Era. In that way, we aim to enable the Partymembers to fully understand the Party’s history of development, motivating the Party members to make unremittingefforts to undertake the mission of development in the new era.
Thematic Party Day ActivitiesJoint Theme Party Day Activities
On July 1, 2023, the Party branch of NKY organized the staff to visit the Shierhui Village and the Taihang Ba Ying Museumto commemorate the birthday of the Party, remember the martyrs of the revolution, and remind the Party members toalways bear in mind the historical mission of the great rejuvenation of China.
July 1st Event
On October 20, 2023, the Party Branch of NKY, the Party Branch of Securities and Finance Headquarters of China GalaxySecurities Co., Ltd and the Party Branch of Guangzhou Dongfeng Middle Road Securities Business Department jointly heldthe joint theme party day activity of “Remember Origins, Stay True, Fulfill Mission”. Through this activity, the partycomrades had a deep understanding of the history of Jiaozuo’s profound economic and social changes and the spirit ofpeople’s dedication to south-to-north water diversion project, which is characterized by “loyalty and responsibility, tenacityand hard work, unity and cooperation, and selfless dedication”.
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Thematic Party Day Activities
Visiting the Shierhui Village and the Taihang Ba Ying Museum
Joint Theme Party Day Activity of “Remember Origins, Stay True, Fulfill Mission”
CaseCase
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Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
Responsive SDGs
Adhering to the environmental protection policy of “law-abiding, clean production, energy saving, pollutionprevention”, NKY is committed to reducing the pressure and impact from its own operations on the environment.Additionally, we stick to protect the ecological environment and biodiversity from being damaged, and contributinggreen power to the realization of the national “Carbon Peaking and Carbon Neutrality” goal.
Our philosophy
Protect Environment
with Efforts
Environmental Management System
In order to promote the deepening of the concept of environmental protection, NKY has formulated environmental protectionpolicies and implementation targets within the Company, implementing technological innovations and deepening the importanceof pollution control.
The Company has established a complete environmental management organization structure, formulated the EnvironmentalProtection Job Responsibility System, implemented the environmental protection responsibility attribution, and effectively finished theenvironmental management work. For each environmental protection management department, the Company formulatedEnvironmental Protection Assessment System. The assessment standards were coordinated by the environmental protection department,including facilities and equipment, wastewater, domestic garbage, accounts, rectification of hidden dangers and other aspects ofmanagement. The situation of management is linked to the performance of the responsible department, which will be inspectedand assessed by the Ministry of Environmental Protection and each month the department develops a work plan for the followingmonth. At the end of the month, the senior leadership conducts a performance appraisal of the work from level to level tosupervise the practical fulfillment of the environmental protection work.
The Company attaches importance to the compliance management ofenvironmental protection. We have formulated the EnterpriseEnvironmental Information Disclosure System, and disclosed environmentalprotection information through the enterprise environmental informationdisclosure system according to the law (Henan) and the national sewagedischarge license management information platform. During thereporting period, the Company adhered to the environmental protection"three-simultaneous" system(safety facilities shall be designedsimultaneously, constructed simultaneously, and put into operationsimultaneously with the main building) for new, reformed and expandedconstruction projects. In addition, we apply for sewage dischargelicense and water intake license according to the requirements.Therefore, there are no environmental protection accidents and illegaland unlawful incidents in the field of environment.In 2023, the Company has obtained the certificate of environmentalmanagement system certification and has been awarded the honorarytitle of energy saving and emission reduction science and technologyinnovation demonstration enterprise in Henan Province.
NKY adheres to the concept of respect for and protection of the natural environment, and actively seeks low energy consumption,low pollution, low emission production mode. Taking “compliance, clean production, energy saving, pollution prevention” as theCompany’s environmental protection policy, we integrate low-carbon concepts and awareness of environmental protection in theoperation of the various aspects and put them into practice, unswervingly taking the road of green development.
Responsible EnvironmentalManagement
Elimination of Major Environmental Pollution Incidents.The Waste Gas, Waste Water and Noise Generated by the Production Process are all in Compliancewith the Standards.Strict Implementation of National Solid Waste Related Management Requirements.All Sub-factories and Workshops Strictly Implement the Concentration Limits of Wastewater PollutantsDischarged by the Company.Train Employees on Environmental Protection in Accordance with the Environmental ProtectionTraining Management System.The Operation of Wastewater Treatment Facilities at the Wastewater Treatment Station is Required toReach 100%, and the Wastewater COD Discharge Concentration is Required to be Controlled within150mg/L, and the Ammonia Nitrogen Discharge Concentration is Required to be Controlled within25mg/L.In accordance with the Implementation of Cleaner Production Standards, the Incidence of thePhenomenon of “Running, Bubbling, Dripping and Leaking” of Equipment is Controlled at 98%.In 2023, All of the above Environmental Implementation Targets have Completed
Organization Structure of Environmental Protection Positions in the Company
Environmental Management System Certificate
General ManagerFirst Person Responsible for Environmental ProtectionConducting Environmental
Protection Work
Work Cooperation
and Supervision
Vice President of Safety and Environmental Protection
Environmental Protection Authority
Vice President of ProductionSupport to Cooperate with Environmental Protection WorkMinistry of Environmental ProtectionEnvironmental Protection Work Authority
Workshop DirectorWorkshop Environmental Protection Workof the First Responsible Person
Team LeaderThe first Person Responsible for theEnvironmental Protection Work of the Team.
Part-time Safety and Environmental Officer of the Branch PlantCommunicate the Relevant Policy Requirements of the Ministry
of Environmental Protection to the Branch Plant
Environmental Protection AdministratorInspection and Supervision of Enforcement
Production Management DepartmentSupervision of Production andEnvironmental Protection Work of each Project
2023 Environmental Performance Targets of Fine Chemicals Sector
3231
Statement of ChairmanAbout NKYESG Management
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Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
On March 22, 2023, the Company foundthat the hazardous waste signs neededto be replaced during the environmentalrisk hazard investigation, and promptlyremade them in accordance with therequirements given in the TechnicalSpecification for the Setting of HazardousWaste Identification Signs (HJ1276-2022).
On November 8, 2023, the Companyfound that the hand valve in front of theliquid ammonia tank level gauge did nothang a “No shut-off” sign during theenvironmental risk hazard investigation,and supplemented the signage in atimely manner on the next day to ensurenormal warning.
Promptly Rectify Each Identified Hazard during Inspections
Environmental Risk Management
Attaching importance to environmental risk management, NKY has established a complete risk prevention mechanism, formulatedthe Environmental Risk Hidden Trouble Identification and Management Responsibility System and Environmental Risk HiddenTrouble Identification Organization and Implementation System. By doing so, we aim to clarify the responsibility of the risk hiddentrouble investigation and implementation methods.
The Company attaches great importance to the emergency management of environmental emergencies. We have established acomprehensive set of emergency management mechanism and formulated Environmental Emergency Management System, EmergencyResponse Plan for Environmental Emergencies and for the record. Besides, we have equipped with trained emergency rescue dutypersonnel and emergency rescue equipment, and regularly conducts emergency response drills, so as to minimize the impacts ofpossible environmental events.
Plant Emergency Response ProceduresBefore RectificationAfter Rectification
Before RectificationAfter Rectification
Classification of Potential HazardsApproach to Screening
General Hazard: Hazards and rectification difficultiesare small, and the hazards can be rectified andeliminated immediately after discovery.Significant hazards: For significant hazards withrectification difficulties, either requiring a complete orpartial shutdown of operations, the hazards can only beeliminated after a certain period of rectification andtreatment. Alternatively, external factors may causedifficulties in eliminating the hidden dangers inproduction and operations.
Self-inspection: Workshops are inspected weekly; theenvironmental protection department conductsquarterly inspections, and keeps good records in thelog.Self-reporting: Report any hidden dangers promptlyand ensure a smooth handover of the rectificationstatus.Self-correction: Hidden dangers discovered arerectified in a timely manner with clear responsibilitiesand timely follow-up.Self-inspection: Assessment and acceptance bytechnicians and experts after rectification.Strengthen publicity and drills: Annually publicize andconduct drills for environmental incident risk preventionand control.
Classification ofEnvironmental Emergencies
SevereLargeGeneralLevel I emergencyresponse
Level III emergencyresponseLevel II emergencyresponse
Emergency Rescue Command
Center Coordinates withHigher-level Emergency Response Plan.
On Site Command by theLeader of the EmergencyRescue Command Center
On Site Command by themain person in chargeof the workshop
Environmental Emergencies
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Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon Creation
TopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
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Contributing to
Society
Environmental Awareness RaisingIn addition to emergency drills, the Company also attaches importance to the promotion ofenvironmental protection. For example, in the daily office, it will carry out a variety ofenvironmental awareness-raising activities, especially in June each year as the NationalSecurity Month. The Company will focus on a series of activities, such as group learning, tofurther deepen the knowledge of environmental protection and safety, and enhance theawareness of environmental protection and safety.
Energy Conservation ManagementIn order to better fulfill its social responsibility of energy conservation and environmental protection, NKY comprehensivelypromotes the concept of green manufacturing and build a resource-saving and environment-friendly enterprise. Besides, we haveestablished an energy management system in accordance with the Energy Conservation Law of the People's Republic of China, the MetrologyLaw of the People's Republic of China, and other laws, regulations, and departmental rules and regulations, and formulated the EnergyManagement System, Energy Measurement Management System, and so on. In addition, the Company has set up an energy-saving leadinggroup, which is responsible for promoting the Company’s energy-saving work. The leading group has established an office underit, which is located in the production management department, and is responsible for undertaking the daily energy-savingmanagement tasks of the Company.
In accordance with the three-level managementresponsibilities of the Company, each branch plant, and thework team to implement graded, categorized management,level by level supervision and evaluation.Focus on Learning PromotionalMaterials during Safety Month
Energy Management System Certification
On June 27, 2023, the Company conducted an emergency rescue drill for liquid ammonia leakage accidents. It simulatedthe scene of liquid ammonia leakage accidents, and organized the relevant employees to learn the handling processcarefully. Besides, the employees made a summary of the incident to improve after the drill, which had a very positive effecton improving the employees’ ability to deal with the accidents.
Emergency Rescue Drill for Liquid Ammonia Leakage
On October 12, 2023, the Company carried out online environmentalprotection knowledge training to popularize the basic knowledge ofenvironmental protection, environmental pollution and hazards, increasingemployees’ understanding of environmental protection knowledge.
Environmental Knowledge Training
Key Performance
Number of Environmental Trainings
Number of Participants in Environmental Training
Hours of Environmental Training
3 Hours
To adhere to the energy-saving policy of “Abiding by regulations, green manufacturing, continuous improvement and harmoniousdevelopment”, NKY continues to promote the establishment of resource-saving and environmentally friendly enterprises.
Regulate the Use of Energy
Energy Conservation Management
Energy measurement is an important part of the enterprisemeasurement work. The guiding ideology of energymetering management is to focus on energy metering datamanagement, based on metering instrument management,to ensure the authenticity, completeness, accuracy, andcontinuity of the collected data. An energy meteringmanagement leadership team, consisting of a leader andmembers, has been established.
Energy ConservationMeasurement Management
The Company(the Company has Set Up an Energy ConservationLeadership Group, which is Responsible for LeadingEnergy Conservation of the Company)
Each Branch Plant
Work Group
(Each Branch Plant Shall Set Up the CorrespondingLeading Group and Office, Set Up FunctionalDepartments Responsible for the Supervision andManagement of Energy Saving, and Establish andimprove the three-level energy-saving organization andmanagement system formed by the branch plant andthe work group)
Energy Conservation Management Group
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Statement of ChairmanAbout NKYESG Management
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Protect Environment
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Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
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Contributing to
Society
The overall goal of energy saving of NKY is to establish a relatively perfect long-term mechanism for monitoring, evaluation,incentives and other energy-saving management. Besides, we aim to have a management level compatible with that of leadingdomestic enterprises, to have the ability to produce international first-class products through green manufacturing, and to continueto enhance the social image and brand value of the Company. At the same time, we also conduct energy consumption auditsbased on relevant national energy-saving norms and standards, and have now issued an energy consumption audit report for 2022.
The Company has established an energy-saving assessment mechanism, which incorporates the energy-saving management workinto the business performance evaluation and assessment system of the main responsible person of each branch plant level bylevel. The assessment includes daily production and operation and energy-saving inspection. There will be economic rewards forexcellent energy-saving achievements. Meanwhile, the Company has formulated a reward and punishment system to reward thosewho have made contributions in energy saving, as well as those who have reported energy wasting behaviors. Units that do notactively carry out energy-saving work will be held accountable. Each sub-factory should formulate an energy-saving assessment,reward and punishment system according to the situation. The Company and sub-factories have also set up special reward fundsto motivate departments and employees to make outstanding contributions to energy saving and environmental protection.
Strengthening the basic management of energy measurement, quotas and statistics, establishingstatistical accounts of energy consumption, and collecting, summarizing and analyzing energyconsumption indicators on a regular basis, in strict accordance with the statistical methods,coverage and conversion standards stipulated by the State.?
Strengthening the statistical monitoring of data on energy consumption in the production process,upgrading the level of informatization of energy management, and establishing and improvingenergy consumption statistics.
?
Ensuring the completeness and accuracy of energy statistics. In detail, the Company assesses andapproves energy-saving effects in various forms such as self-inspection, third-party testing,internal audits and audits, and breaks down the assessment indicators layer by layer to strengthenthe assessment of grass-roots units.?
System of Statistics, Monitoring and Assessment of Energy Consumption Indicators
ElectricityConservationMeasures
Cleaner ProductionThe Company carried out a cleaner production audit in 2019. Now we have completed the cleaner production audit acceptance,set up a cleaner production audit leading group and working group, and organized cleaner production training. Moreover, we putforward dozens of feasible cleaner production programs, through the implementation of cleaner production work to continue topromote the Company’s continuous transformation in the direction of energy saving, reduction of consumption, reduction ofpollution, and increase in efficiency.
In order to promote the smooth progress of thecleaner production audit, the Company has carried outcleaner production training within the Company,which explains the importance and necessity ofcarrying out cleaner production, as well as how tocarry out cleaner production audits.
Cleaner Production Training
Cleaner Production Training Site
Key PerformanceDuring the reporting period, the Company’s total expenditure on environmental protection was nearly 500,000 RMB,and there was no environmental protection incident and no violation of laws and regulations in the environmentalfield. In the past three years, the Company’s environmental protection facilities synchronous operation rate and theexecution rate of the “three simultaneities” for construction projects are 100%.
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Promote green lighting technologies, products and energy-saving appliances.Adoption of energy-saving transformers and gradual phasing out of various types of oldtransformers.Promote energy-efficient electric motors and upgrading and phasing out inefficient electricmotors and high power-consuming equipment.Accelerate the upgrading of inefficient fans, pumps, motors and transformers to improvesystem operational efficiency.Optimize the operation and control of motor systems: promote soft-start devices, reactivepower compensation devices, computerized automatic control systems, etc., and rationallyallocate energy through process control to achieve economic operation of the system.Promote the use of clean energy.
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing to
Society
In the treatment of pollutants, NKY adheres to the operational process of various types of pollutants generated by the wholeprocess of control. By doing so, we aim to reduce the generation of pollutants from the source and strict control of pollutantemissions to ensure that emissions meet the standards.
Guaranteeing Cleaner Emissions
Exhaust Gas Management
Management of Three Wastes
In the Fine Chemicals Sector, the Company has established the Three Wastes Management System, which follows the principle of“prevention first, source management and comprehensive prevention and control” in the treatment of three wastes. Besides, wespecified the treatment, emission and monitoring methods for the waste gas, waste water, solid wastes and noise generated inthe process of production to prevent environmental pollution and reduce the risk of production and operation.
The project waste gas generated by the Company mainly comes from gas boiler exhaust, spray drying exhaust, crushingand packaging exhaust and incinerator exhaust. To control them, the Company has taken various waste gas managementmeasures to strictly control the emission of waste gas to meet the emission standards for organized and unorganizedemissions are well controlled. For example, the Company has formulated the Management System for Unorganized Emission ofVOCs in the Factory Area for the unorganized emission of VOCs.
Green OfficeBy improving the system mechanism and strengthening the scientific management, the Company constantly raises the awarenessof all employees to save resources and protect the environment. And we encourage everyone to start from the small things aroundthem, cherishing every degree of electricity, every drop of water and every piece of paper. We continue to promote theclassification of garbage, practicing the concept of green and low-carbon with actions.
? Leaks are Found and Repaired in a Timely MannerWater Conservation
? Formulation and Implementation of the
Management System for the Use of Central Air-conditioning and Lighting Facilities
Power Conservation
? Implementation of a Registration System for the Collection of Printing
and Copying Paper
Paper saving
? Implementation of Waste Segregation for Office WasteWaste management
In the organized emissions of exhaust gases, 20 tons of gas boilers installed with automatic monitoring facilities.The rest of the emissions of exhaust gases in accordance with the requirements of the emission permitself-monitoring program, commisions a third party to carry out regular testing and issued a test report, the resultsof which meet the limits of emission requirements of the relevant standards.●
The storage of volatile raw materials and products adopts airtight facilities, and the storage tanks are equipped withbreathing valves, pressure regulating devices or adopt internal floating roof storage tanks to reduce the emissionof exhaust gas.Strictly operate in areas and equipment where VOC leaks may occur according to regulations, conduct regularinspections, and reduce unorganized emissions.
●●●●
Dust removal and treatment equipment such as air collection hoods, baghouse dust collectors and cyclone dustcollectors are installed for organized emission sources.Set up a person in charge of the operation and maintenance of environmental protection facilities for theunorganized waste gas, and monitor the emission of pollutants on a regular basis.
Monitoring
Emission Reduction
Addressing
Exhaust gas treatment and collection equipment is regularly maintained and serviced to ensure proper functioning.●
Maintenance
Keep a running record of the operation of waste gas generation and treatment equipment.●
Recording
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Statement of ChairmanAbout NKYESG Management
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Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
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Contributing to
Society
Hazardous Waste Management
The Company continues to strengthen the management of hazardous waste, formulating systems such as Hazardous WasteManagement System, Hazardous Waste Management Responsibility System, Hazardous Waste Management Plan and Management Account System,Hazardous Waste Identification Marking Management System, etc. Moreover, we set up a separate management system for hazardouswastes with greater hazards in addition to the three-waste management system.For hazardous waste, the Company follows the principle of “unified collection, classification and disposal, centralized incineration”,and aims at “minimization, resourcefulness and harmlessness”. In the process of generating, collecting, storing, transporting,transferring, disposing and recording of hazardous waste, a specially established hazardous waste management team makesdecisions on,, supervises and coordinates the management of hazardous waste, and establishes management accounts for thewhole treatment process of hazardous waste to ensure standardized management with records to follow.
The Company also requires that the storage, transportation and disposal of hazardous waste sites must be set up in accordancewith the law to meet the requirements of the national standards of the appropriate signs, warning signs and signage. Besides, wewill carry out training on hazardous waste storage and identification signs set up to strengthen the degree of awareness ofemployees on the handling of hazardous wastes.
Wastewater ManagementThe wastewater generated by the Company includes production wastewater and domestic wastewater.
In the total discharge of wastewater, automatic online monitoring equipment is installed to carry outreal-time monitoring of water, pH, total nitrogen, ammonia nitrogen, COD, etc., And the rest of theindicators are to be manually detected in accordance with the requirements of self-monitoring program. Thethird-party testing company is commissioned to regularly test and issue test reports to ensure that thewastewater discharged in compliance with the standards.●
Monitoring
After the production wastewater and domestic sewage are collected by the sewage pipeline in the plant,part of the wastewater is treated by the water reuse system and recycled, and the other part is treated bythe sewage treatment station and discharged to the sewage network in compliance with the standard.●
Addressing
The wastewater treatment station records its operation on a daily basis, and the Environmental ProtectionDepartment produces a monthly workshop production and discharge assessment form to managemonthly discharges.●
Recording
Solid Waste Management (except Hazardous Waste)
The solid waste generated by the Company mainly consists of general solid waste (calcium carbide slag, sludge, wastedesiccant) and domestic garbage.
After press-filtering the calcium carbide slag, it is temporarily stored in the calcium carbide slag shed and regularlysold outside.Sludge is regularly transported to the dump station for uniform treatment.The waste desiccant is heated and dried for recycling.Domestic garbage is collected and put into garbage cans, and is regularly removed by the sanitation departmentof the industrial cluster area.
●●●●
Addressing
Record ledgers for the amount of solid waste in general and calcium carbide slag in particular that is transported.●
Recording
Other Management
Adopt measures such as sound insulation and muffling. Besides, every year the Company commissions a third party
to carry out noise testing to ensure that the noise at the plant boundary meets the standard.●
NoisesSoil andGroundwater
The Company commissions a third party to carry out soil and groundwater testing every year. To be specific, we
formulate a self-monitoring program for soil and groundwater, builds and maintains monitoring facilities,
implements the monitoring program, records and saves monitoring data. Based on these data, we analyze the
monitoring results, prepare an annual report on monitoring, and report the monitoring data to the environmental
protection department in accordance with the law, so as to ensure that the testing is up to standard and that it
does not have an impact on the biodiversity of the surrounding area.
●
On September 6, 2023, the Company’s environmental protection department carried out key points of the training on theHazardous Waste Storage Pollution Control Standards, Hazardous Waste Identification Marking Setting Technical Specification forenvironmental protection administrators and part of the personnel involved in the generation of hazardous wastesub-factories. By doing so, it aims to let relevant staff to learn to understand the norms and standards of hazardous wasterequirements and to enhance the level of management of hazardous wastes.
Conduct Training on Hazardous Waste Storage and Identification Markings
Hazardous Waste Storage and Identification Marking Training Site
? Mainly HW11 Distillation Residue
Type ofhazardous waste
? Incineration by Plant IncineratorTreatment
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Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
Water Resource ManagementThe Company attaches importance to the saving and reuse of water resources, improving the utilization rate of water resources,reducing the consumption of tap water and helping to build a resource-saving and environment-friendly society.In terms of water conservation, the Company’s fresh water source is mainly from underground water sources, and the municipalwater supply network supplies part of the domestic water. In order to conserve water resources, the Company has formulatedWater Conservation Management Regulations and Water Conservation Reward and Punishment System, calling on all employees to conservewater in production and life, and has set up rewards and penalties for water conservation, giving rewards to employees who havemade contributions to water conservation technology and prevented the waste of major water resources, and penalizing individualsand departments who have seriously exceeded the amount of water consumption and intentionally wasted water resources, so asto practically supervise the implementation of water conservation work.In terms of recycled water, the Company increases the utilization rate of water through the resourceful use of non-conventionalwater sources such as recycled water. In the Company’s water treatment system, water with different levels of contamination isdiverted and treated by different systems.
For rainwater, steam condensate, purified soft water filtration water, etc., they’re collected by the rainwaternetwork system.
Environmental Equipment ManagementIn order to guarantee the normal operation of thethree-waste treatment and monitoring equipment, theCompany has formulated the Environmental ProtectionFacilities Operation Management System and EnvironmentalProtection Facilities Inspection (Maintenance) ManagementSystem. They stipulate that the environmental protectionfacilities must be operated in synchronization with theproduction facilities, and that the environmentalprotection facilities are inspected on a regular basis orat irregular intervals, so as to eliminate the hiddendangers of the equipment. Besides, the third-partyoperation and maintenance unit carries out dailymanagement of the waste gas and waste water onlinemonitoring equipment, establishes environmentalprotection equipment operation accounts in dailyoperation, and conducts maintenance and overhaulingof various environmental protection equipment on aregular basis to maintain the normal operation of theCompany's environmental protection.Production wastewater and domestic sewage are treated by the water treatment system. Currently, the Companyhas a water reuse project with a treatment capacity of more than 3,000t/d which constructs complete sewagetreatment equipment including sedimentation tanks, oxidation tanks, etc. The process is that through hydrolysis,acidification, and other reactions, the clean water that meets the standards after treatment is returned to thesystem for reuse or directly discharged. In this way, it reduces the consumption of fresh water and promotes thesaving of resources.
Reuse Water Recycling TowerRecycling Pumps for Water Reuse
Summary of Solid Waste Disposal Data for the Fine Chemicals Sector
General Waste Generation
7,890.00 ton
General Waste Disposal
7,890.00 ton
General Waste Disposal Rate
100%Hazardous Waste Generation
195.80 ton
Volume of Hazardous waste Disposed
195.80 ton
Hazardous waste Disposal Rate
100%
2023
Summary of Water Utilization Data for the Fine Chemicals Sector
Total Water Consumption334,795.00 ten thousand ton
Groundwater Withdrawals
333,743.00 ten thousand ton
Municipal Water Purchases
1,052.00 ten thousand ton
Wastewater Discharge
97,300.00 ten thousand ton
2023
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Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
Adhering to the quality policy of “timely, truthful and scientific”, NKY makes continuous efforts for the quality visionof “Fully participation, pursuit of excellence, and becoming the best in the industry”. It also strives to realize thelong-term vitality of the enterprise and strong core competitiveness in the market, to ensure that the needs andexpectations of customers are satisfied by making continuous efforts towards quality development.
Our philosophy
Ensure Good Quality
with Craftsmanship
Responsive SDGs
Quality Management System
NKY is always concerned about product quality, strictly follows the Product Quality Law of the People's Republic of China and other nationallaws and regulations as well as management system requirements like ISO 9001. Taking Quality Manual as the basic system forregulating quality management work, we adhere to the overall improvement of the Company’s quality management capabilities.
Assure Quality Rigorously
Quality Risk Management
Quality risk management is a continuous process to reduce product quality risks throughout the product lifecycle. In accordancewith YY/T0316-2016/ISO14791: 2007 Revised Medical Devices - Application of Risk Management to Medical Devices, the Company hasestablished a robust procedure for managing product quality, including the establishment of a quality risk management team toidentify, assess, control, communicate and review potential risk factors that may impact final product quality, thereby ensuringhigh-quality end products.
Quality Vision? Fully participation, pursuit of excellence, and becoming the best in the industry
QualityAssurance
? Timely, truthful and scientific
Quality Mission? Traceability of process data, minimization of quality risks, maximization of social value
Quality Risk Management Model DiagramQuality Management Organizational Structure
Quality DirectorQA Department
QA Manager
QA Assistant
Manager
ValidationCoordinator
DocumentsManager
RegulatoryManagementCoordinator
Onsite QA
Quality Objectives for 2023
Pharmaceutical/food grade products pass rate ≥99.5% at one time100% response to customer complaints: initial response within 6 days;final response within 30 days; 95.5% timeliness rateCAPA implementation completion rate ≥94.5%Validation implementation completion rate ≥94%Failed batches of raw material and packaging material purchases ≤ 2Training plan implementation rate ≥95%Customer satisfaction ≥95%
IndexObject100% pass external audits (including official audits, client audits)0 serious defects/times, major defects ≤ 1/3 times, by sectorsExternal GMP(Good Manufacturing Practice) audit
One time yield rateClient ComplaintsCAPA(Corrective Action and Preventive Action)
implementation rateValidation of Master Production Schedule
Execution RateRaw Materials,
Packaging Materials
Implementation Rate
of the Training PlanCustomer Satisfaction
√√√√√√√√√
Initiation of QualityRisk Management
Risk Review
Risk Management
Risk Assessment
Do Not AcceptCommunication of Risk
Risk Assessment Tools
Risk Evaluation
Risk Analysis
Risk AcceptanceResults of Risk Management
Risk Reduction
Review of Results
Risk Recognition
4847
In 2023, all the quality objectives mentioned above have been accomplished.
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
The Company has obtained a number of certificates such as ISO 9001 Quality Management System Certification, ISO 22000 FoodSafety Management System Certification, EXCiPACT Pharmaceutical Excipients Supplier Certification, Safe Production License.Wuhan Heer Medical has achieved two certificates, ISO 9001 Quality Management System Certification and ISO 13485 MedicalDevice Quality Management System Certification.
Product Lifecycle Management
The Company implements product lifecycle management, and establishes a complete management process for products fromproduction to recall. In the Fine Chemicals Sector, it includes warehouse material reception and release, material release,intermediate product release, product release, product recall, etc. In the Precision Medicine Sector industry segment, it includesproduct design and development, instrument product manufacturing, instrument product inspection, marking and traceability,special component inspection, and machine inspection, etc. All of the process has complete process management charts, and theresponsible personnel and operation methods of each link are clearly defined, so that node management is in place andresponsibilities are clearly attributed.
ISO 9001 Quality Management
System Certification
Certificate of Suitability toMonograph of EuropeanPharmacopeia (Povidone K25)
Certificate of Suitability toMonograph of EuropeanPharmacopeia (Povidone K30)
Certificate of Suitability toMonograph of EuropeanPharmacopeia (Povidone K90)
Safe Production License
Chemical Product Recall Flowchart
Medical Product Recall FlowchartWuhan Heer Medical ISO 9001 Quality
Management System Certification
ISO 22000 Food SafetyManagement System Certification
EXCiPACT PharmaceuticalExcipients Supplier Certification
Halal Certificate
Certificate of GoodManufacturing Practice for
Pharmaceutical Products
QA Fills in the “Product Recall
Processing Form” with theName, Number, Lot Number and Reason for the Recall
Establish theRecall Team
QA Manager AuditQuality Director AuditGeneral Manager
Approval
Sales Department Quickly Access
to Sales Records according tothe Recall Information, Listing All
Relevant Customers, Contact
Information Shipment Date andContact InformationSales Department Records theActual Number of Recalls andSends It to the Head of theDepartment for Review beforeExchanging the “Product Recall
Handling Form” with the QA
DepartmentWarehouse Checks theName of the Product,Number, Batch Number,Specifications, Quantity,etc., Signing and Storingthem in A Safe Area
QA Tracks the Number ofRecalls, Calculates theRecall Traceability Rate, andFills Out the “Product RecallProcessing Form III”
Identify Non-conformingProducts with the“On-conforming Materials andProducts Handling Management
Procedures”
Quality Authorized Person(QAP) ConductsEffectiveness Evaluationsand Drafts Product RecallInvestigation Reports
QA Copies the “ProductDisposal Form” andDistributes It to the TeamMembers, and Fills Out the“Product Recall Registration
Ledger”Sales Department Notifiesthe Relevant Customersand Records theNotification
Anomaly Source
Collection
Non-implementationAnomaly Management/Decision Implementation
Initiation/Reporting of
Advisory Notices
Formulation ofAdvisory Notices
Publication ofAdvisory NoticesProduct RecallOperationsHandling ofRecalled ProductsNotification/RecallRecords Management
Appraise
NO
5049
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing toSociety
After the delivery of the medical devices, in the event of any actual or potential harm to human body, property, orenvironment, or non-compliance with legal and regulatory requirements for the product, the Company will issue an advisorynotice to provide users with additional information and recommended actions to ensure product safety.The Company formulates annual quality training plan, actively carries out quality training activities, enhances the qualityawareness and culture of the employees through centralized learning, consolidating the foundation of quality management.
Quality Training for the Fine Chemicals Sector
Wuhan Heer Medical -Device Manufacturing Quality Technology LearningWuhan Heer Medical- Medical Device R&D (Reagents, Devices) TrainingKey PerformanceDuring the reporting period, there were no product recalls due to health and safety issues and no relatednegative public comments.
Quality Management Performance
Number of Participants inTraining Sessions on Quality Culture
13,288
Total Hours of Quality Culture Training73 Hours
Number of training sessionson quality culture
2023
Number of annual qualityinternal audits
Number of Third-party Agencies Hired for Sampling
Safety Management System
The Company has established a multi-level safety committee, with the company-level safety committee coordinating the overallsafety work, and the safety sub-committees of each department carrying out the safety work. In 2023, the company-level safetycommittee formulated the Company’s safety management plan, defined the production safety target, and was guided by the safetywork idea of “focusing on the annual safety target, practicing one concept, and transforming three-level functions”. It aimed toimplement the safety work and ensure accident-free production.
Adhering to the safety policy of “Safety firs, prevention first, comprehensive management” , NKY attaches importance toproduction safety, and has established a complete safety management system from establishing the safety committee, managingproduction safety risk, to the management of hazardous chemicals, emergency rescue management, etc., aiming to ensure thesafety work with a comprehensive management system.
Strengthen Security Baseline
? Practicing the core safety concept of “people-oriented, life first”
Practicing A
Philosophy
Transformation ofthe Three Levels
of Functions
? Transformation of Safety Management Functions at the Departmental,
Branch Plant and Work Group levels
DepartmentBranch of a FactoryWork GroupSupervision and Management
Passive ManagementTask-oriented Production
Managing and Directing Together
Active ManagementSafety Production Type
5251
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing to
Society
Safety Risk Rating and Control Process
Composition of the Emergency Response Command
Key PerformanceIn 2023, the Company’s Fine Chemicals Sector carried out a total of 43 safety inspections, including 4comprehensive safety inspections at the company level,4 seasonal safety inspections, 5 holiday safety inspections,18 safety inspections of various specialties and 12 monthly safety inspections. A total of 281 hidden problemswere found, all of which have been completed and rectified, with a rectification rate of100%.In terms of production safety responsibility, theCompany has formulated the Production SafetyResponsibility System, Production Safety ResponsibilityAssessment System and Production Safety Reward andPunishment System, etc. The policies designatethe Safety Committee as responsible for overallcoordination and guidance, with various levels ofmanagement, including the trade union,, generalmanager, vice president of safety, etc., to thesubordinate special safety managementinstitutions, such as the Safety Department, theEnvironmental Protection Department, and theDepartment of Safety and Production, andstipulates that all levels and departments shouldimplement a production safety responsibilitysystem, sign production safety targetresponsibility letters at all levels, summarize theassessment of safety responsibilities on anannual basis, assess performance according toperformance, and implement rewards andpunishments, so as to ensure safe productionand strengthen safety management.
For the management of hidden dangers, the Company has formulated the Hidden Danger Inspection System for SafetyProduction Accidents. It combines daily hidden danger inspection, comprehensive hidden danger inspection, professionalhidden danger inspection, seasonal hidden danger inspection, hidden danger inspection before major activities and holidays,and accident analogous hidden danger inspection, and systematically carries out the hidden danger inspection work. For thehidden dangers found in the inspection, timely rectification will be carried out; For the major sources of danger, the SafetyDepartment will coordinate and focus on the management, identify the major sources of danger on a regular basis, and carryout monitoring, rectification and registration.
In terms of emergency management, the Company has formulated the Emergency Rescue Plan for Safety Production Accidents. Andit sets up the Emergency Command Department, which is responsible for the organizational leadership and decision-makingcommand of the emergency rescue work in the event of accidents. At major sources of danger and fire and explosionaccidents formulated the emergency response procedures, it formulated the targeted plans for the types of accidents suchas accidents, so as to strengthen the ability of emergency management and control.
Security Risk ManagementThe Company attaches importance to safety risk management, has established a complete risk prevention mechanism and adoptsa graded prevention and control approach for safety risks within the company. The team responsible for constructing the sefetyrisk grading system conducts risk assessments and implements timely control measures to minimize the safety risks and safeguardthe lives of employees.
Company's Safety Management Objectives for 2023
In 2023, all the safety management objectives have been accomplished
Risk RecognitionRisk AssessmentRisk ClassificationRisk Management
Commander-in-chief:
General ManagerDeputy Commander-in-chief:
Deputy General Manager of Each Specialty
Emergency Command Members:
Each Workshop, Each Department Professional Specialists
EmergencyResponse Office
TechnicalConsulting Group
Communicationand Liaison Group
Fire RescueGroup
EvacuationGuidance Group
MedicalRescue Team
LogisticsSupport Group
5453
0 Accidents with Minor Injuries0 cases of general and above accidents0 cases of Occupational Disease IncidenceEmployee Safety Training (including Third-LevelEducation and Re-education) Rate 100%100% Implementation Rate of ChangeManagement100% Implementation Rate of Safety HazardIdentification and Correction
0 Accidents with Serious InjuriesLess than 10 attempted accidents0 Fire Accidents100% of Special Operators are LicensedDigitalization of Dual Prevention Meets StandardsSafety Standardization Efforts Continue toAdvance towards Compliance
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
In 2023, the Company conducted a number of emergency rescue drills to simulate a wide range of accidentscenarios and improve the emergency rescue capabilities of employees.
Conducted fireevacuationemergency drill
Conducted Numerous Emergency Response Drills for Accidents
In terms of emergency drills, during the reporting period, the Company continued to carry out a number of drills, such asemergency drills for fire accidents and emergency drills for electrocution, in order to improve the practical ability of employees inemergency rescue.
Emergency Response Process for Work Safety Accidents
Emergency Rescue Drill for Methanol Leakage and Fire Accident
Workshop Emergency Rescue Drill for Restricted Space Accident
Emergency Rescue and Evacuation Drill for Crystallization Kettle Fire
5655
March 17th
ConductedWorkshopElectrocutionAccident on-siteDisposal DrillApril 25th
Comprehensive Drillfor Liquid AmmoniaLeakage AccidentJune 27th
WorkshopEmergency RescueDrill for RestrictedSpace AccidentAugust 9thand 12th
Conducted EmergencyDrill for Burn AccidentOctober 24th
Conducted Fire Drill forAcetylene Leakage inAcetylene StationWorkshopDecember 26th
Emergency RescueDrill for MethanolLeakage and FireAccidentMay 28th
Workshop FireEmergency RescueDrillJuly 20th
Emergency Rescueand Evacuation Drillfor CrystallizationKettle Fire
September 28th
ConductedEmergency RescueDrill for Fire inCalcium CarbideStorehouseNovember 26th
Report timely about accurate information to internal responsible departments and personnel as well as relevant unitsafter an accident occurs. Judge the level of the accident according to the accident situation, and activate thecorresponding response procedure.Information ReportWarningResponse InitiationEmergencyManagement
When the Company’s rescue capabilities are insufficient, promptly evacuate emergency rescue personnel, expand thealert and evacuation range, and seek emergency support from external emergency forces.After the accident is under control, emergency response is terminated.EmergencyResponse Support
Monitoring and surveillance systems, personnel safety inspections, etc., are used to detect abnormal situations andpromptly issue warning messages for response preparation.During emergency response, the emergency command center coordinates the allocation and management ofemergency resources, organizes personnel evacuation, and promptly and accurately releases information.
Response Termination
Dealing with the scene according to the level of the incident, following the response process, rescuing theinjured, and eliminating hazards.
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
In June 2023, the Companycarried out activities under thetheme of “Safe ProductionMonth”, including emergencydrills, safety knowledgecompetitions and prize-givingceremonies.
“Safe Production Month”
Digital Platform
In order to improve management efficiency, the Company integrates digital evaluation into safety management and adopts theintelligent safety and emergency comprehensive supervision platform. To be specific, it breaks down all production units andstorage facilities involving hazardous chemicals into 3 safety risk analysis units, 56 sets of equipment and facilities, and 5workplaces. By posting the QR code of hidden danger inspection in the unit parts and scanning the code on site to realize thehidden danger inspection and checking, the Company integrates the offline risk control and hidden danger inspection andmanagement with the online digital system to realize the online safety management.
Security Awareness EnhancementIn order to improve the awareness and ability of employees in production safety, the Company has formulated the Safety Training and EducationSystem, formulated the annual education and training plan for production safety and introduced targeted safety training measures. Besides, ithas provided different contents of training to internal employees and external contractors, so as to continuously improve the safety awarenessof employees and partners.
Intelligent Safety and Emergency Comprehensive Supervision Platform
“Safe Production Month” Activity
The Company provides specialized safety training for external contractors and construction workers, including safetyguidelines for worksites, procedures for obtaining permits for hazardous operations, and safety constructionmanagement agreements.
Safety Training for External Construction Workers
Safety Training for External Construction Workers
Key Performance
Number of Safety Emergency Drills
In 2023, the Company invested more than 3 million yuan in safety production.
Special Operators Licensed Rate100%
Total Investment in Safety Education and Training500+ Ten Thousand Yuan
2023
5857
Case
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
Key Performance
Quantity
In 2023, there were 51 suppliers of Fine Chemicals Sector and 228 of Precision Medicine Sector, 279 in total.
Proportion
15.08%
2023
Supplier ManagementSupply chain management is an important link to maintain the normal operation of the whole enterprise. The Companycontinuously enhances the stability and sustainability of the supply chain through establishing a perfect procurement and supplychain management system, strengthening the evaluation and of suppliers, and continuously improving the safety and quality ofsuppliers' products.For Fine Chemicals Sector, the Company has formulated the Supplier Management System, which makes provisions on suppliers'information acquisition, qualification review, selection, renewal, risk assessment and scoring standards, and evaluates the suppliersonce a year and assesses grades of suppliers in accordance with the Supplier Risk Evaluation Form.
And The Company has also drafted the Warehouse Setting Management Regulations to stipulate the storage and location of variousmaterials and standardize the management of them.For Precision Medicine Sector, the Company has in place the Supplier Evaluation Guidelines, whereby the Purchasing Departmentcompiles the Qualified Supplier List, categorizes suppliers into A, B and C, and fills out the Supplier Evaluation Form after initial selection,inspection and evaluation. The form includes the assessment of the supplier's ability in various aspects, such as productivity, qualitymanagement system, technology and after-sales service.
Sustainable Supply Chain
Protecting Customers’ Rights and InterestsThe Company actively listens to its users' voice, provides customers with perfect aftersales service, and regularly conductscustomer satisfaction surveys to solve service problems in a timely manner.In after-sales service, in order to assist customers to better use the products, The Company made "Installation and CommissioningInstruction", "Guidebook of Repair, Replacement and Operation Change", "Operation Guidebook of Disinfection and Cleaning forReturned Products." etc., so as to enable the employees to provide customers with required services in a timely manner and makeregular visits to customers. For improving the efficiency of after-sales service, the Company adopts video conferencing system toprovide technical training and exchanges for customers. It publishes video product introductions, operating methods, etc. onWeChat Official Account, and customers can also make technical inquiries and sales contacts through it.In 2021, the Company conducted a satisfaction survey on customers including Fudan University and the Institute of Hydrobiology,Chinese Academy of Sciences, with a score of 96.15/100.
ScoresSupplier Rating
90.1—100
80.1—90
70.1—80
60.1—70
Below 60
Lowest-Risk SuppliersLow-Risk SuppliersMedium-Risk Suppliers
High-Risk SuppliersUnqualified Suppliers
North China
Quantity
Proportion
0.56%
Northeast China
Quantity
Proportion
78.77%
East China
Quantity
Proportion
48.60%
Central China
Quantity
Proportion
10.61%
South China
Quantity
Proportion
1.68%
Overseas
Quantity
Proportion
0.56%
Southwest China
6059
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
With technological innovation as its core concept, NKY continues to promote process innovation and develop newproducts, actively follow up global technological development trend, and endeavor to meet customer needs. Inaddition, the Company also attaches great importance to information security management, to take comprehensivemeasures to ensure information security, and avoid information leakage.
Our PhilosophyResponsive SDGs
Concentrating on Creation,Devoting to Future Researchand Development
Structure of the R&D Center in Fine Chemicals Sector
Structure of the R&D in Precision Medicine Sector
Based on the core value of "Creating Value for the Society" and promoting the research and development of related industries,NKY is willing to cooperate with related colleges, research institutes and enterprises. The cooperation is based on the principleof mutual benefits and consensus; We provide its R&D Center as an open platform for institutions and enterprises in need tocontribute to the improvement of the technology of new polymer materials, functional chemicals and pharmaceutical productsin China.
Focus on Science andTechnology Innovation
R&D Management
Leading by scientific and technological innovation, NKY constantly improves its R&D innovation management system. Adhering tothe love and pursuit of technology, it stands at the forefront of the industry and strives to promote the development of scienceand technology. To achieve this goal, the Company focus more on R&D innovation and continues to improve its own R&Dcapabilities to ensure smooth progress of the projects and improve the quality and efficiency of R&D.The following is the organizational structure and corresponding responsibilities of the R&D center in Fine Chemicals Sector:
The following is the organizational structure and program plan of the R&D center in Precision Medicine Sector:
R&D DirectorR&D Chief
R&D Engineer
TesterR&D EngineerTesterTesterTester
R&D EngineerR&D EngineerMid-TesterTesting Engineer
Inspector
Group Leader ofNew Product
Group Leader ofMicromolecule
Group Leader of
ORZ
Group Leader of
PVP
Group Leader ofPilotscaleExperiment
Inspection GroupLeader
DescriptionResponsibility
???
TechnologySupport
???ProductionSupport
ProductDevelopment
?????
Put forward product development plan and make strategic suggestions to the GeneralManager and management team.Collect related data about new technology, process and equipment from domestic andforeign counterparts, conducting research and experiments of the data.Launch products, design and implement the research plan.Convert new products into manufacturing.Improve the technology of existing products.Prepare samples for trial sale.Study the application performance of the products.Provide related technology support for pre-sale and after-sale services.
Provide technology support for testing raw materials before producing.Manage and distribute special materials for related products.Coordinate with Product Branch Factory, Quality Department and Sales Department to dealwith customers complaints and abnormal fluctuations in product routine indicators.
Responsibilities of the R&D Center in Fine Chemicals Sector
Structural EngineerEmbedded Engineer
Test Engineer
Process Engineer
R&D Reagent EngineerR&D Reagent Assistant
Registered Engineer
R&D ManagerR&D Chief Engineer
Software Engineer
6463
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
Certificate for High-Tech Enterprise (Fine Chemicals)Certificate for High-Tech Enterprise (Precision Medicine)
Section Meetings
the Annual Meeting of Chinese PathologistsThe R&D Procedure in Precision Medicine Sector
NameTime
Non-Gynecological HE Stain Scanning Program
P16Ki67 Analysis SoftwareArtificial Intelligence analysis software for Cervical Cytology
Database Docking ToolsUpgrade for New Compound Dyeing Robotic Arms
From April, 2023 to July, 2023From March, 2023 to June, 2023From February, 2023 to December, 2023From June, 2023 to August, 2023From March, 2023 to December, 2023
R&D Project Plan for Precision Medicine Sector in 2023
The Company has a wealth of achievements in the field of science and technology. It has also gained equal recognition in pharmaceutical fieldin addition to being certified as a high-tech enterprise in chemical field. As an innovative enterprise, the Company is committed to promotingthe development of science and technology. For pharmaceutical field, it actively organizes section meetings to provide opportunities for expertsand scholars in the industry to communicate and cooperate. the Company also actively participates in the Annual Meeting of ChinesePathologists to share its research results and experience in this field with industry elites.In 2023, the Company joined the Science and Technology Association of Boai County, Jiaozuo City, Henan Province. This not only recognizesthe Company's technical strength and influence, but also provides an opportunity for it to further expand its influence in the field of scientificresearch. As a member of the association, the Company will discuss the importance of scientific and technological development with othermembers and make positive contributions to the scientific and technological progress of Boai County.
YES
YES
YES
NO
NO
NO
NO
NO
NO
Design Development and Conversion
Design Development
Output
Make a Casual Trial
Verify
Confirm
Pilot Plant Test
Normal Production
Process Scale-Up
Output Review
DesignDevelopment Input
Input Review
R&D Period
Non-Launch
Project Launch
Review
Application forProject Launch
Development Planfor Product Design
Termination ofthe Launch
6665
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
Encourage Research TalentsAiming at motivating and promoting the development of the scientific research personnel, the Company has speciallyformulated the regulations such as Performance Evaluation System for Research and Development Personnel, Management Provisions forResearch and Development Organization, Performance Assessment for Research and Development Personnel, Incentive and Reward System forOrganization and Implementation of Scientific and Technological Achievement Transformation and so on. These rules focus on improving theprofessional quality of scientific researchers and promote technological innovation to better meet the developmentrequirements of the Company.Talents IntroductionFor the sake of meeting the Company's demand for human resources, the Talents Introduction System has been formulated. Thesystem details the specific processes and standards for the introduction of talents to ensure that the recruitment process is fair,and transparent. The Company will apply a variety of ways to attract and recruit excellent talents. Firstly, we will search for suitabletalents through market research and employee recommendation. Secondly, we will utilize online recruitment platforms to releaserecruitment information and actively participate in university and recruiting events. In addition, we will consider rehiring retireesand work with professional headhunters to find candidates for senior and specific positions.
Intellectual Property Rights ProtectionNKY respects the protection of intellectual property rights and strictly abides by relevant laws and regulations to ensure thatinnovations are protected and properly applied. At the same time, we actively take part in the development and promotion ofdomestic and international technical standards to promote the standardization of the industry.
Key Performance
R&D Investment
5,000+ Ten Thousand Yuan
Number of New Product Development Projects
2023R&D Performance Summary
Number of Granted Patents
Number of the R&D Team
Number of AuthorizedInvention Patents
Number of GrantedUtility Patents
Number of GrantedDesign Patents
Innovation Achievements
Enterprise with Specialized,Sophisticated, Novel and Unique Technology
National High-Tech Enterprises
Postdoctoral Workstation
Certificate for the Company’s Innovation Ability
Composition of the R&D Team
Divided by Education LevelDivided by Age
Ways of Talents Introduction
Methods to Protect One’s Own and Others’ Intellectual Property Rights
During the process of R&D projects, incorporate thestatus of intellectual property investigations intofeasibility reports, and reduce the risk of productsinfringing on other’s intellectual property rights ofothers by means of project review meetings.
When develop a project,apply and register forintellectual propertyrights timely.
Carry out intellectual propertyrights training regularly.
6867
Bachelor，177
Master，40Doctor，16
For high-level talents, direct transfer and recruitment can be taken to encourage the establishment of long-termand stable labor relations with the Company.For those who do not have a job (including fresh graduates), they can sign a labor dispatch contract through the Company'sdesignated dispatching company, so we can introduce talents by way of dispatching.Qualified experts and senior personnel can be introduced flexibly in accordance with the introduction mechanismof "not seeking what they have, but seeking what they can", "not seeking to be located, but seeking to becompetent.” The introduction of talents is carried out flexibly and creatively by means of intellectual introduction,intellectual borrowing, part-time employment, temporary employment and technical cooperation.
30-40 years old，69Over 40 years old，38
Under 30，126
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon Creation
TopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
Improve the Awareness and AbilityTo strengthen the overall competency of scientific and technological workforce and promote the standardization andinstitutionalization of scientific and technological personnel training, NKY has formulated the Scientific and Technological PersonnelTraining Rules on the foundation of following the relevant state regulations. The provisions targets at enhancing the technical leveland comprehensive quality of scientific and technological personnel, which aims to establish scientific, efficient andcomprehensive system of personnel training to satisfy the needs of scientific and technological development.
Overall Plan for Information Security Work
??????
?????
Principles
Policies
?
Adhere to the policy of "Safety first, prevention-oriented, equal emphasis on managementand technology, comprehensive prevention", and realize information security beingcontrollable and under control.
Goals
?
Ensure continuous, stable and reliable operation of information security, and guaranteethe confidentiality, integrity and availability of information content.
Responsible for the overall planning, management, and supervision of the Group's networkinformation security, as well as for the formulation, interpretation, and supervision of theimplementation of this system.
Principle of Information SecurityRequirementPrinciple of Responsibility for KeyLeadersPrinciple of Full ParticipationPrinciple of Systems ApproachPrinciple of Continuous ImprovementPrinciple of Management by Law
Responsible Departments for Information Security
Key Performance
Number of Software Publications
100+
Number of Trademarks
Protect Information Security
Information Management SystemNKY strictly complies with the Personal Information Protection Law of thePeople's Republic of China, General Data Protection Regulation and other relevantnational and regional laws and requirements of regulatory agencies. Inorder to facilitate the strategic development, the Company has drawn upa series of measures including equipment management system,information security management system, machine room managementsystem and information security emergency plan to comprehensivelystrengthen the protection and management of information security, andto ensure the security and confidentiality of customer and business data.When planning and constructing information security, its measures shouldbe synchronized with information security construction in accordancewith the principle of "three synchronization" including synchronizedplanning, synchronized construction and synchronized operation.
Principle of Decentralization and DelegationPrinciple of Choosing Mature TechnologyPrinciple of Hierarchical ProtectionPrinciple of Equal Emphasis on Managementand TechnologyPrinciple of Combining Self-protection andState Regulation
ProcessInformation Center
Responsible for data management of IT equipment and related accounts, timely identifyingsecurity risks and reporting to the Process Information Center. In charge of internalpromotion, implementation, and supervision of this system.
Infrastructure
Department
Responsible for the design, construction, maintenance, and optimization of the Company'snetwork security infrastructure. Establish security strategy, baseline and emergencyresponse plan; carry out security loophole tracking, testing and assessment; assist businessdepartments in IT internal control compliance, and complete the construction andimprovement of IT service system.Head of Information
Security
Accountable for data management of IT equipment and related accounts in its owndepartment; in charge of internal promotion, implementation, and supervision of this system.
Departments of
the Company
DepartmentDuty
Types of Training
VocationalSkills Training
ContinuingEducation
TechnicalPositions Training
7069
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentrating
on Creation
TopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
Contingency Plan for Cloud Service Failure
Emergency Plan for Disposing Computer Virus
Management MethodsIn the digital age, information security has become an indispensable and important part of enterprise development. In order tosafeguard information security, NKY responds to various potential security incidents by formulating a variety of emergency plans.These plans include measures and processes to deal with situations such as network attacks, virus infections, data leaks, systemfailures, and so on. In addition, the development and implementation of emergency plans can also improve the security awarenessand protection abilities of employees, and further strengthen the Company's information security capabilities.
Check the VPN Service
Check the Dedicated
Cloud Service Line
Check the NC Servers
Check the VPN server;
if the problem is notsolved, contact theCloud Service Engineer.
Check the NC &
OA ServersOA Server MalfunctionNC Server Malfunction
Check the OA ServerMalfunctionNormalMalfunctionNormalMalfunctionNormal
Contact a Landray
engineer; if theproblem is not solved,
contact the CloudService Engineer.
Contact a Yonyouengineer to assist withthe investigation; if theproblem is not solved,contact the CloudService Engineer.
Contingency Plan for Cloud Service Failure (NC &OA system)
2. Both NC&OA Are
not Accessible
1. NC Malfunction OA Normal
3. NC Normal OA
Malfunction
Self-check whether cloud service fees are due and unpaid, contact cloud serviceengineers to troubleshoot the problem.Post a malfunction notification on DingTalk.Cooperate with Huawei cloud engineers to restore network settings and servers.Record and Summarize.
It’s necessary to check many times and by many ways to judge if the virus in the host is eliminated.After confirming that virus in the host is removed, it is prudent to have temporary access to a public-level networkto observe.The infected operating system must be reinstalled once the virus is removed. The virus must be thoroughlychecked and eliminated multiple times to ensure it is no virus before accessing to the Company's internal network.Record and summarize, update accessories in time.
Emergency Plan for Disposing Computer Virus
Isolate the host wherecomputer virus is found.
Stop spreading computer virus by
shutting down all switchingequipment within the Company.
Troubleshoot the spread ofcomputer virus.
Take measures to remove the
virus in accordance with thespread of the virus.
Disconnect the network andisolate the host.Host antivirus and data backup.Reinstall the system, antivirusagain and disconnect the networkto observe.Restore the network if no virus isfound after checking serval times.
Consider seeking externalassistance to eradicate the virus inthe following scenarios.Virus is extremely harmful anddifficult to clean.Virus spread widely at a fast speed.Virus infected the core data.
7271
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon Creation
TopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
Contingency Plan for Illegal Speech on WebsitesNKY understands the importance of information security for business operations, and therefore strives to improve the securityawareness and skills of its employees. The Company through a variety of training methods to ensure that employees have acomprehensive grasp of information security knowledge and skills, in order to better prevent and respond to possible informationsecurity incidents, so as to protect The Company's business operations.
Key Performance
Times of Relevant Training
Number of Participantsin Practice & Training
Number of Information Security and Privacy Breaches During the Reporting Period
Employee Coverage forPractice & Training100%
Total Investment in Data Security10+ Ten Thousand Yuan
On November 28, 2023, the Company conducted information security training for employees. The training started withan example, thus highlighting the importance of information security awareness and guiding employees to betterrecognize and understand the importance of it. Then, it focused on a series of systems and regulations formulated byThe Company for information security, so as to help employees better comply with The Company's information securityrequirements and thus safeguard The Company's information security.
Information Security Training
Training for Information Security
Ensuring that the Company's business operations are compliant, NYK has actively conducted a training for advertisinglaw for its employees in order to popularize the knowledge of advertising law and reduce information violations. Thetraining aims to strengthen employees' understanding and awareness of advertising law, improve employees' legalawareness and compliance awareness, and ensure that employees have a comprehensive grasp of the knowledge andskills in advertising law.
Training for Preventing Information Violation by Advertising Law
Training for Advertising Law
Contingency Plan for Illegal Speech on Websites
Suspend the operation of theCompany's website at the first
time if illegal or undesirable
information is found.
Register and backup emergency contact numbers of webservice providers.In cases where the impact of undesirable information ismanageable, the website can be kept in operation with theconsent of the leader in emergency response team.Members of the emergency response team rush to the sceneto deal with.Identify why illegal information appeared.Recover website information from the backup data.Make necessary records, safekeep related records, logs, oraudit logs, and put the website pages back into use.
Webmasters must regularly inspect the Company's website and make records.Webmasters must regularly backup the Company's website data and make records.If it is determined that the website may have been attacked and hacked, the supplier must first be notified tostrengthen security precautions, seal the loopholes, and report the case to the public security department.If illegal information causes adverse effects, the Company's leaders must promptly convene a special meeting, andthe legal counsels and board secretarial offices take public relations measures to eliminate the adverse effects as faras possible.This emergency plan applies to manage WeChat Official Account and other media of the Company.
Track where illegal information comes from and report to theemergency response team.Reevaluate the situation and decide whether to notify thepublic security department or seek assistance accordingly.
Follow the procedure torestore the network.
Track where illegalinformation comes from.
Summarize and close the
loophole.
7473
Case
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentrating
on Creation
Topic
Environmental, Social and Governance(ESG) Report 2023
Moving Forward
Together
Contributing to
Society
NKY Mission: serve customers, improve employees, return to shareholders, and benefit society. We are committed tobuilding an impartial, and transparent platform, a smooth career development path for employees, highly concernabout employees' occupational health and safety, and try to protect the rights and interests of them. We place greatemphasis on the personal welfare of our employees, aiming to create a conducive working environment whileproviding ample opportunities for career development and training, give due consideration in employee welfare andencourage for active participation in decision-making.
Our PhilosophyResponsive SDGs
Moving Forward Together,Building a Harmonious Family
Offline Recruiting Event
Canteen for Muslims
Status of New Employees
Number of New Employees
Rate of Labor Contract Signing
100%
Female，88
Male，53
New Employees Divided by GenderNew Employees Divided by Recruitment Channels
Social Recruitment，128
Campus Recruitment，7Other Recruitment Channels，6
Data of Employee Recruitment Channel
ChannelNumber of ResumesMasterBachelor
NKY has always attached great importance to the vital interests of employees and considers promoting their overall developmentas one of the company's significant development goals. The Company not only focuses on protecting employees’ rights andinterests to promote their physical and mental health, but also strives to create an inclusive, equal, mutual trust and collaborativework environment to achieve the unity of the Company's value and employees’ value. The Company has taken a series of measuresto protect the rights and interests of employees, such as formulating a comprehensive employee welfare system, paying attentionto physical and mental health of employees, and providing vocational training and development opportunities. At the same time,the Company also advocates equal cooperation between employees and communication with mutual trust, encouraging employeesto leverage their personal strengths and promote the development of the company.
Safeguarding Employees’ Rightsand Interests
Management SystemNKY has always strictly abided by national laws and regulations, focusing on protecting the legitimate rights and interests ofemployees. To this end, The Company has especially formulated the Employee Handbook, Attendance Management Guidelines, PersonnelManagement Guidelines, Recruitment Management Guidelines, and other systems to standardize and protect the work and life ofemployees. These systems not only clarify the Company's management policies and regulations, but also provide employees withclear working guidelines and management bases, and protect their legitimate rights and benefits.Employee Recruitment
The Company adopts a variety of recruitment channels according to the characteristics of the positions, including internalcompetition, campus recruitment, media recruitment, job fairs in the labor market, intermediary companies and so on. The principleof avoiding relatives is adopted during recruitment to ensure that the recruitment process is fair, just and open, and that humanresources are allocated in a reasonable manner.
Equalization ManagementThe Company has been committed to the implementation of a diversified talent strategy,promoting a culture of equality, fairness and inclusiveness, providing fair opportunities anddevelopment space for employees from different backgrounds, advancing the diversifieddevelopment of employees and promoting the sustainable development of the company. Atthe same time, The Company has set up a relevant management system, stablishes a list ofprohibited issues for recruitment, sets up a canteen for Muslims, and pays attention to andcares for employees of ethnic minorities to further improve and strengthen the Company'shuman resource management and social responsibility.
7877
Campus Recruitment in HenanPolytechnic UniversityCampus Recruitment in Henan
Normal UniversityRecruiting Event in Zhenzhou
LongzihuTalent Recruitment & ProjectMatchmaking Event in Henan
Province
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
Junior College, High school
and below，467
Salary StructurePicture of Welfare Structure
Key Performance
Total Training Hours ofEmployee Diversity Policy306 Hours
Number of Employeeson Maternity Leave
In 2023, there were no negative incidents of child labor or forced labor in the Company.
Number of Employeeson Parental Leave
Return Rate of EmployeesAfter Parental Leave
100%
The Company values the rights and interests of employees. In the event of discrimination, harassment, mistreatment, or violation ofhuman rights against an employee, he/she can lodge a complaint orally or in writing to the HR Administration Office or the GeneralManager. In addition, the Company has set up a variety of complaint channels, including complaint phone line, E-mail and mailbox, sothat employees can make complaints anytime and anywhere. The Company will strictly protect the privacy and rights of thecomplainants, handle each complaint incident seriously, and ensure fairness, impartiality and transparency.NKY pays attention to safeguarding the rights and interests of female employees and is committed to creating an equal workingenvironment for everyone. It actively promotes gender equality and strives to create a workplace without gender discrimination. Inrecruitment, promotion and other aspects, the Company will not make decisions with discrimination based on gender, but willassess and make decisions based on the employee's abilities and performance.
Salary and WelfareThe Company has always been committed to improving the motivation and efficiency of its employees so as to enhance thecompetitiveness. To achieve this, The Company has formulated the Salary Management System, Performance Management Guidelines andother systems, and makes adjustments to wages, performance, remuneration and job mobility based on the actual situation. NKYhas carried out the Management Measures for the Implementation and Assessment of the Restricted Stock Incentive Plan 2021, to further establishand improve the long-term incentive mechanism of the Company, fully mobilize the enthusiasm of employees, attract and retainoutstanding talents, and effectively combine the interests of shareholders, the company and employees.
Post Wage
Skill-Based PayWage forSeniorityBonus
Channels forComplaint
Tel8694479
E-mailxkybgs@126.com
Mailing AddressLiving Building Lobby
8079
Leave System
Statutory Leave,Sick Leave, FamilyLeave, Marriageand BereavementLeave, and Work
Injury Leave
NationalStatutory InsurancePension insurance,Medical Insurance, WorkInjury Insurance,Maternity Insurance,Unemploymentinsurance. Housing
Provident FundOther WelfaresAnnual Free PhysicalExamination,Dormitory, HolidaySympathy, RegularTravel and ManyOther Benefits
Composition of Employees
Total Employees
1,165
Manufacturing，670Employees Divided by ProfessionEmployees Divided by Education Level
Finance，29
Sale，111Administration，91
Junior College，333Master and above，85Bachelor，280Technology，264
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
Performance ManagementKey Performance
Statutory Benefits Expenditure
200+ Ten Thousand Yuan
Other Benefits Expenditure
40+ Ten Thousand Yuan
Key Performance
Number of Items Adopted bythe SRC/Trade Union
Agreement Coverage ofCollective Bargaining
85%
Number of Employees’ Complaints
Employee Satisfaction
98.84%
Engagement Rate for Employee Satisfaction100%
On April 26, 2023, NKY held an important collective negotiation meeting, aiming at fully discussing and negotiating wageissues for the 2023 through collective consultation between representatives of the employees and the Company. Themeeting mainly focused on the development of the Company, the rights and interests of the employees, targeting atproviding the employees with a better working environment and more fair and transparent remuneration, so as to injectnew impetus into the sustainable development of the company.
Collective Negotiation Meeting
NKY attaches great importance to employee performance managementbecause it helps the Company to better manage its human resources,identify and cultivate high-performing employees, and optimize theallocation of employees. Through the monitoring and feedback of workperformance, employees can better unleash their potential and improvework efficiency and quality, thus improving the company's humanresource efficiency. The performance management system consists ofa cyclic process of performance plan development, performancecoaching and communication, performance appraisal and evaluation,and application of performance results, continuously evolving to meetthe needs of the company and employees.
Democratization ManagementNKY respects and protects the democratic rights and interests ofemployees. According to the Trade Union Law of the People’s Republic of China,Regulations of Grass-roots Members of Trade Unions General Assembly and otherlaws and rules, it has set up a trade union and formulated the System ofTrade Union for Safeguarding the Lawful Rights and Interests of Employees and theWage Collective Contract of 2023, which provide the employees with a channeland a platform to safeguard their rights and interests. The Trade Union willactively fulfill its functions, pay attention to the productivity and livingconditions of employees, actively safeguard their legitimate rights andinterests, and provide various services and assistance to them.
Performanc Feedback
Performance Plan
PerformanceImplementation
PerformanceAssessment
PerformanceManagement
Regularly convene seminars to know needs and difficulties of grass-roots workers in their work and life.Establish online talking group, so that all the union members can speak freely.Set an E-mail (zsbgw8613568@163.com) and a telephone hotline (8613568) to provide appropriate assistance toworkers in difficulty, etc.
Responsibility for Trade Union
During the reporting period, NKY distributed offline quiz to all employees for satisfaction surveys.
8281
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
New Employee Training
Department Responsibility
??
HRDepartment
?
Heads ofDepartments
QADepartment
????
Draft and review the Company’s annual training plan of GMP, review and approve thetraining list.Organize and implement the Company's annual GMP training plan, including providingadditional training; supervise, guide, and coordinate GMP training of various departments;assess the effectiveness of the training and write an annual GMP training assessmentreport.Evaluate internal GMP trainers to ensure that they can meet GMP-related trainingrequirements.Collect GMP-related training records in a timely manner and deliver them to the HRDepartment for filing.Carry out, draft, and complete the Company’s training plan.Manage and control training fees.Build a team of internal trainers.Manage training records and materials.Track the effectiveness of training.Organize external training and retraining, and evaluate training results.Develop and implement training plan, subject to review and approval by the vice presidentor director in charge.Gather training needs of the employees.Develop specialized training materials for the department.Implement departmental training and reflect its effectiveness.Identify internal trainer candidates and support their work.
Basic knowledge required for employees to perform their assigned responsibilities orrelated tasks.The job-specific skills required for employees to be competent in their own or relatedwork.Enhance the overall ideology and quality of the employees, thereby enhancing theCompany's image.Training on culture, management system and rules and company regulations.
Graded and Tiered Training System
Training System
NKY attaches importance to the employees’ development and has formulated the Training Management Regulations to standardize thetraining system, providing employees with higher-quality and efficient training services and helping them improve their skills andabilities so as to promote the overall development of the company.
Support Employees inProfessional Development
On June 1, 2023, NKY conducted an induction training for newemployees, aiming to help them be able to integrate into thecompany quickly and have a comprehensive and in-depthunderstanding of their positions. The whole induction processwas full of warmth and care, giving the new employeessufficient information and resources so that they could adaptto the new working environment and identity quickly.
New Employee Training
VMTA Training
VMTA Training
From February 10th to 12th, 2023, NKY held the "MotivationCamp Class Training for Team Leaders ". The Companyspecially invited top professional training organization inChina, VMTA, to train and teach the employees. This traininghas facilitated employees in cultivating new perspectives,broadening their horizons, enriching their knowledge base,enhancing team cohesion, and establishing a robustfoundation for building an invincible team.
In the whole training system, the Company mainly focuses on internal instructional trainer, and emphasizes on establishing a teamwith high knowledge level, excellent business skills and outstanding quality. Such a team not only possesses professionalknowledge and skills, but also has an in-depth understanding of the Company's culture and business to better meet the trainingneeds of employees.
Building andManagement
of InternalTrainer Team
8483
The Company’s general managers directly lead construction and management of theCompany's internal trainer team.The HR Department is in charge of internal trainers and responsible for the organizationand implementation of the recruitment, evaluation, certification, appointment andassessment of trainers.Heads of departments assist HR in managing internal trainers and supporting their work.Professional Knowledge
TrainingSpecialized Skill
TrainingIdeology and Quality
TrainingCultural System
Training
Case
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing to
Society
Process of Internal Trainer Selection
Internal Trainer Meeting
Employee Promotion Channel
NKY has been committed to standardizing the Company's promotion system and process, and constantly optimize the constructionof the employee career promotion path, in order to create a fair, open and transparent competition mechanism. The Companyprovides employees with specialized promotion channels and internal transfer opportunities, so that employees have moreopportunities to achieve career development and personal value enhancement. For managing and developing employees moreaccurately, the Company has set up five dimensions for different functions, namely, management sequence, technical sequence,production & operation sequence, functional sequence and sales sequence, to develop vertically and encourage employees torealize upward development. If employees meet the assessment requirements and relative performance conditions, they can applyfor job promotion.
Responsibilities
for Internal
Trainers
Key performance
Female，59.7 Hours
Senior Manager，
160.50 Hours
Intermediate Manager，
170.75 Hours
Grass-Roots Employees,
324.51 Hours
Male，113.1 Hours
Everage Time of Training Divided by GenderEverage Time of Training Divided by Occupational Title
Investment in Employee Training
90+ Ten Thousand Yuan
Number of Training
Total Number of Employees Trained1,114Total Person and Times ofEmployees Trained42,738
Employee Training Coverage(Ratio of Employees Trained)
94.12%
Total Hours of Training2,713 Hours
Average Training Hours for Employees Participatingin Management Training47 Hours
Average Training Hours for Employees Participatingin Professional Training
102.28 Hours
Average Training Hours for Employees Participatingin Leadership Training62 Hours
Average Time Length of Training per Employee per Year
79.55 Hours
8685
Fill out the "InternalTrainer Registration Form".
Receive the “InternalTrainer Registration Form”
Organize review activities forinternal trainers’ competition.
Issue lecturer's certificates
and include in the"internal trainers" list,with the reference number.Approver
Employee Self-nomination
or Recommendationfrom Their Departments
HR Department
HR DepartmentHR Departmentthe General Manager
In order to meet the training needs of theemployees in relevant positions, the HRDepartment needs to follow the process ofevaluating, updating and replenishinginternal trainers in a timely manner in theevent of a change in personnel or othersituations that require the updating ofinternal trainers. At the same time, the listof internal trainers needs to be filed in theHR Department.
Participate in research of training course demand and provide accurate information onemployee and departmental training needs for the HR department.Develop and design relevant courses, such as standardized training materials, cases, PPTs,test papers and answers, etc., and regularly enhance their quality.Develop and implement training according to the training plans, and complete the deliveryof classes on time, in quality and quantity.Responsible for assessing post-training effectiveness, reviewing the examination papersand improving lectures based on the results.Assist department heads in developing and implementing internal training plans for theirdepartments.Draw a "job training checklist" for the orientation and re-education of new employees.
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
Employee Promotion Path
Occupational Health and SafetyManagement System Certificate
Posting of Information Cards in Specific PlacesNotification Card of Occupational
Health in Workshop
Measures forOccupational HealthProtection
Formulate the Management System for Detecting Occupational Hazardous Factors inWorkplaces.Conduct occupational health monitoring regularly.Supervise the environment of the production areas.Registration form of personnel health management.Requirements for licensing: special equipment licenses.Distribute protective equipment according to types of occupational hazards.
Key PerformanceLicensed Rate of Special Operators
100%
Employee Physical Examination Coverage100%
Detection Rate of OccupationalDisease Hazards100%
Pass Rate for MonitoringOccupational Disease Hazards100%
Increased Occupational Diseases
Key Performance
A total of 11 employees were internally transferred or recruited during the reporting period.
Occupational HealthNKY values the management of occupational health, and actively complieswith the Occupational Disease Prevention and Control Law of the People's Republic ofChina, Measures for the Administration of Occupational Health Examination, Measuresfor the Supervision and Administration of Occupational Health for Employers andother relevant laws and regulations. To pay better attention to the healthof employees, the Company has customized the Occupational HealthManagement System and set up an occupational health managementorganization and equiping with full-time or part-time managers, who areresponsible for the occupational health management of the Company. Italso obtained the Occupational Health and Safety Management SystemCertificate to ensure employees’ occupational health is effectivelysafeguarded and monitored.
Maintain the Occupational Health
8887
Administrative
Level
JobPosition
Grade
Management
Sequences
TechnicalSequences
ProductionOperations
FunctionalSequences
SalesSequences
MiddleManagementAdministrator
SupervisorExecutiveAncillary
Sales SpecialistSenior SalesmanSalesmanSales Clerk
Decision-making
Level
SeniorManagement
CEOVice GeneralManager/Director
Senior ManagerManager/Factory
DirectorAdministrator/Workshop Director
Chief Engineer
TechnologistSeniorEngineerEngineerSeniorTechnician
Skills SpecialistSeniorTechnicianTechnicianOrdinaryWorker
FunctionalSpecialistHighCommissionerCommissionerClerk, Cook,DriverLandscaping,Janitorial, GateGuards
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environmentwith Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopicEnvironmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety
NKY attaches importance to employee’s physical and mental health, thinking that employees are valuable wealth andimportant resources of the company and healthy development cannot be separated from the active participation andcontribution of employees. It also actively fulfills its social obligations, and has made outstanding achievements inpromoting employment, rural revitalization, supporting social welfare and other fields.
Our PhilosophyResponsive SDGs
Contributing to Society,Engaging in Public Welfare
Set Sail for a New Journey
On January 11, 2023, NKY held the 2022 annual summarycommendation party in the auditorium. The meetingsummarized the work in 2022 and determined the workpolicy and annual work tasks in 2023, commended andrewarded the outstanding collectives and individuals in2022, and held a New Year's Eve party.
Annual Wrap-Up Recognition Gala in 2022
Photo of the Annual Meeting
Caring Enterprise
At the end of 2023, Eastwin organized a grand annualmeeting. It was not only a celebration, but also an eventof unity and motivation. Various wonderful culturalperformances and the lucky draw at the annual meetingpushed the atmosphere to the climax. The participationof every leader added a solemnity and joy to the event.The laughter and applause of the employees were loudand clear, showing their positive spirit. The success ofthe annual meeting not only brought joy andencouragement to the employees, but also injected vigorand passion into the work of the new year.
The 10th Anniversary Annual Meeting of Eastwin
Touring Hainan and Ningxia, Seeing the Splendid Desert and Blue Sea
In the autumn of 2023, NKY organized an autumn outing - Hainan tour and Ningxia tour, so that employees can enjoydifferent landscapes and custom. Traveling allows everyone to temporarily get away from the pressure of work and thebusy pace of life but relax and regain vitality. They relax physically and mentally, enrich personal horizons, and enhanceteam cohesion through the activities.
Autumn Outing
NKY attaches importance to work-life balance of employees, and actively organizes a variety of activities to enrich the spare timeof them, cares and promote their physical and mental health, regularly organizes employees to designated hospitals to receive acomprehensive body checkup to provide employees with mental health services and support.The Company has always put employees in an important position. In September 2023, it paid 50,000 yuan to aid the families ofemployees in difficulty, and at the end of 2023, it carried out retired employees' solicitude activities, distributing rice and oil tothem for the New Year's greetings.
Care Employee’s Life
NKY has always been mindful of the community, adhering to thecommon development with the community. It also activelyparticipates in charitable causes and provides scholarships for poorstudents to help them successfully complete their studies. Duringthe reporting period, the Fine Chemicals Sector donated 50,000yuan to the United Association of Charitable Associationsscholarship program, and 130,000 yuan of self-organizedscholarships, fully demonstrating the Company's social responsibilityand citizenship image.NKY deeply recognizes rural revitalization is significant to the country's economic and social development. In line with the senseof responsibility and mission, it has been committed to contributing to rural revitalization and helping the comprehensivedevelopment of rural areas to achieve rural prosperity.
Pay attention toPublic Welfare
Key Performance
Total Investment inPublic Welfare
18 Ten Thousand Yuan
Rural RevitalizationProjects
Increased NewEmployees
Number of TrainedGrass-Roots Cadres
Number of TrainedSpecialized Technician
9291
Case
Case
Case
Statement of ChairmanAbout NKYESG Management
Focusing onGovernance
Protect Environment
with Efforts
Ensure Good Qualitywith Craftsmanship
Concentratingon CreationTopic
Environmental, Social and Governance(ESG) Report 2023
Moving ForwardTogether
Contributing toSociety