JL MAG CSR REPORT
Create a Better Life with Rare Earth
ContentsMessage from the Chairman01
Outlook63
About JL MAGImportant Events in 2020
Benchmark IndicatorsReader Feedback
Giving Back tothe World
DevelopmentthroughInnovation
Public WelfareNature Protectionand EcologicalDevelopment
Achieving 30/60 Goal andCreating a Wonderful Life
SoundGovernance
Internal ControlManagement
Party Building
InvestorRelations
ResponsibleGovernance
Transcendenceand Win-win
Integrity andSustainableOperation
Employees andCollaborationTranscending Supply-Demand Relationship& Achieving Win-winPartnershipTranscending Competitionand Achieving IndustrialProgress
TechnologicalInnovation and GreenProduction
Service Innovation and CustomerPerception
Quality Innovation andQuality ControlCapability Innovation andLean Production
This is the second CSR Report issued by JL MAG Rare-Earth Co., Ltd., aiming to ensure an open communication with all stakehold-ers on the Environmental, Social, and Corporate Governance (ESG) concepts, practices and performance of the Company, as wellas systematically respond to the expectations and demands of stakeholders.The reporting period is from January 1, 2020 to December 31, 2020. In order to improve the comparability and completeness of thereport, some of the content goes beyond the above scope.This report is issued annually. The last report was released on March 24, 2020.
Data sources used in this report include the Company's original operation data, internal statistical data, public data of govern-ment departments and third-party institutions, etc.
The report covers JL MAG Rare-Earth Co., Ltd. and its main subsidiaries.
In this report, "JL MAG Rare-Earth Co., Ltd." is referred to as "JL MAG" or the "Company".
International Standard ISO 26000 Guidance on Social Responsibility 2010The United Nations 2030 Sustainable Development Goals (SDGs)The GRI Sustainability Reporting Standards (GRI Standards) of Global Sustainability Standards BoardChinese National Standard GB/T 36001-2015 Guidance on Social Responsibility ReportingGuidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 4.0) by the Corporate Social Responsi-bility Research Center, Institute of Economics of the Chinese Academy of Social Sciences (CASS)Guidelines for Social Responsibility of Listed Companies by Shenzhen Stock Exchange
About this Report
Purpose
Reporting period
Release cycle
Data description
Reporting scope
Designation
Guiding standards
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
The outbreak of COVID-19 in early 2020 had a profound impact on global social and economic life. With turbulent internationalsituation and turmoil in global ?nancial markets, the world economy is facing unprecedented challenges.The Company's manage-ment actively responded to epidemic prevention and development, working hard to address the unfavorable impact caused byCOVID-19, and actively implemented measures in order to meet the company's ESG responsibilities. We pulled together and had amost extraordinary year.
JLMAG is value-oriented and a practitioner of long-termism. In 2020, under the guidance of the company's core values of "cus-tomer orientation, innovation and transcendence; unity of knowledge and action, integrity and gratitude", we promoted soundgovernance ?rmly, adhered to long-termism, and further strengthened the cohesion. The overall core competitiveness has beensigni?cantly improved. In 2020, the company achieved operating income of RMB 2.42 billion yuan and net pro?t attributable toshareholders of RMB 244.48 million yuan, a year-on-year increase of 42.58% and 55.84% respectively, achieving substantial growthfor many years in a row, and creating good returns for shareholders with high value-added total cash dividends.The Company hasbeen recognized by authoritative media organizations with such awards as: the "GEM Best Board of Directors" Award at the 11thTianma Award for Investor Relations of Chinese Listed Companies hosted bySecurities Times; and the "Best Listed Company onGEM" Award at the 15th China Listed Companies Competitiveness & Credibility Survey and Competition hosted byChinese Securi-ties Journal.We work together to become a co-creator of a better life. Facing the development of employees, we have been adhering to theconcept of growing together with employees, practicing the sharing concept of "co-creating a platform and sharing results"，fo-cusing on employee bene?ts, and actively empowering employees' growth and value realization. At the same time, with the aspira-tion to become a value creator, we issued the2020 Restricted Stock Incentive Planin 2020 to fully mobilize sta?, to fully inspire theenthusiasm and creativity of employees and maintain the stability of our team.Facing social expectation,we have been committingto charity, poverty alleviation and poor students support programs. Through continuous participation in public welfare, we com-mit to becoming an excellent corporate citizen.We have put much e?ort in becoming a green and low-carbon contributor. Adhering to green development, we have beenbuilding a sound environmental governance system to actively promote carbon neutral actions, and have been treating wastesin compliance with regulations and advocated green o?ce, striving to reduce the environmental impact of our business opera-tions. At the same time, we have been focusing on electric and energy conservation and environmental protection, and have beencontinually playing a key role in environmental protection industries such as electric vehicles, energy-saving variable frequencyair conditioners, and wind power, etc. The Company vows to help China achieve "carbon neutrality" and contribute professionalsolutions to the world green development, sustainability and ecological environment protection. In 2020, the company's industrialbusiness such as electric vehicles, energy-saving variable frequency air conditioners, and wind power will help reduce carbonemission by approximately 32.34 million tons.We never forget who we are and where we are from.The development and progress of JL MAG attributes to the trust and support ofall stakeholders.In 2021, we will continue to work hand in hand with all parties, aiming to become a world leading enterprise in therare earth permanent magnet segment and create a better life with rare earth.
Chairman of the Board：
Message from the Chairman
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
About JL MAG
JL MAG Rare-Earth Co., Ltd. (listed on the Shenzhen Stock Exchange on September 21, 2018, Stock Code:
300748) is a high-tech enterprise specializing in the R&D, production and sales of high-performance NdFeBpermanent magnet materials. It is a leading supplier of core materials for electric, energy conservation and en-vironmental protection in China.The Company adopts a sales-based production management mode, purchasing rare earth raw materials andauxiliary metal materials according to the order quantity, and designing and producing NdFeB magnets. TheCompany has whole product production capacity, ranging from product R&D, mold development and man-ufacturing, semi?nished product to ?nished product processing, and seeks to comprehensively control andmanage each process ?ow.The Company includes the whole product production, ranging from product R&D,mold development and manufacturing, blank production to ?nished product processing, and seeks to compre-hensively control and manage each process ?ow.JL MAG is a world leading supplier of rare earth magnet for electric vehicles, energy-saving inverter air condi-tioners and wind power. The Company is a supplier of drive motor magnets for electric vehicle companies suchas Tesla, BYD, and UAES, and a supplier of auto parts magnets for Bosch Group for many years.The Company isa supplier of magnets for well-known variable frequency air conditioner manufacturers, such as Midea, Mitsubi-shi, Gree, and Shanghai Highly. The Company's ultimate customers in the wind power sector include Goldwindand Siemens Gamesa.During the reporting period, the Company's 3C products have been under mass produc-tion, which is becoming a new growth pole of the Company. The Company also has been actively involving inenergy-saving elevators, robotics ,intelligent manufacturing, rail transit, new energy and environmental protec-tion markets. Now, the company becomes one of the leading high-performance magnet suppliers in the above?elds, claiming strong market competitiveness.The company's vision is "to become the world's leading enterprise in the rare earth permanent magnets indus-try". Since its establishment 13 years ago, the Company has been keeping in mind the mission of "create a bet-ter life with rare earth", focusing on electric, energy conservation and environmental protection,and will alwaysadhere to the core values of "Customer orientation, innovation and transcendence; unity of knowledge andaction, integrity and gratitude".
Important Events in 2020
As of December 2020, thecompany's rough produc-tion capacity has grown to15,000 tonsThe Company was rated asthe "Excellent Supplier ofEfficiency Improvement"by Midea Group Electro-mechanical Product Divi-sionChairman of the Boardwon the "Golden QualityOutstanding Entrepreneur"award issued byShanghaiSecurities NewsThe Company establishedthe "JL MAG-ShouzengScholarship" at the Univer-sity of Science and Tech-nology Beijing to encour-age outstanding studentsto serve their country
The company has com-pleted the evaluation ofscienti?c and technologi-cal program of "High-tem-perature resistant, low-heavy rare earth andhigh-performance rareearth permanent magnetkey technology researchand industrialization",and the company's inno-vative achievements havereached the internationalleading level
Shen Changyu, Directorand Party Secretary of theChina National Intellec-tual Property Administra-tion, led a team to inspectthe Company's intellectu-al property workThe Company signed aParts Purchase Agreementwith Tesla to supply mag-nets for electric vehicles
January 2020February 2020May 2020
June 2020July 2020August 2020
September 2020October 2020November 2020December 2020
The company was grant-ed the "2020 VE ProposalAward" by MitsubishiElectric
The Company won the title"The Quality Supplier ofMidea for Lean Transforma-tion"The Baotou subsidiary ofthe Company completedthe industrial and commer-cial registration proceduresand was officially estab-lished
The Company was awardedthe "Long-term CooperationAward" by GoldwindThe company donatedimported medical masks worthmore than RMB 100,000 yuanto the Ganzhou Red CrossFraternity Foundation
The Company was granted theaward "GEM Best Board of Di-rectors"by Securities Times
As of June 30, the Com-pany's annual productioncapacity of blank productshas grown to 12,000 tons
The Company was awardedthe honorary title of "Qualityand Credit AAAAA Supplier" byGoldwindThe Company was granted the"2019 Best Cooperation Award"by UAESThe Company donated RMB 1million yuan to the First A?liat-ed Hospital of Gannan MedicalUniversity in Ganzhou City tohelp ?ght against COVID-19
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Economic Performance in 2020Operating income: RMB
2.42
billion yuan, with a YOY growth of
42.58%
;Net pro?t: RMB
244.48
million yuan, with a YOY growth of
55.84%
;
Sales of ?nished magnets:
8,818tons, with a YOY growth of
40.38%
.Cash dividend of RMB
86.34
million
yuan in 2020.Since its establishment in 2008, the Company has distributed cash dividends to shareholders worth approxi-mately RMB
0.70
billion yuan（Including the amount of the 2020 cash dividend distribution plan）.
Return on net assets:
17.13%
Production of magnet products:
9,613tons, with a YOY growth of
44.95%
；
；
Social Performance in 2020Development Performance in 2020
Environmental Performance in 2020
In 2020, the Company invested RMB
103.18
million yuan in R&D, with a YOY growth of
60.44%
, accounting for
4.26%
of operating income.
The Company donated a total of RMB
1.21
million yuan of anti-epidemic and poverty alleviation funds and anti-epi-demic goods in 2020In 2020,58% of the Company's employees came from poverty-stricken areasSet up scholarships in Tsinghua University, Tongji University, Beijing University of Science and Technology, Jiangxi Univer-sity of Science and Technology and a total of
students were awarded scholarships.Since the establishment of the "Jinli Permanent Magnet Scholarship", more than
outstanding college studentshave been awarded.
The Company invested a total of RMB
22.03
million yuan in the Intelligent Manufacturing ApplicationR&D Center and independently delivered more than
units of new automation equipment.Through lean management,the Company reduced delivery times by30%, and turnover days in pro-duction by30%.
The Company's magnet production for drive motor of electric vehicles could support the assembly of about
0.45
million
electric vehicles, helping reduce carbon emissions by approximately
0.93
million tons/year;The Company's magnet production for variable frequency air conditioners could support the assembly of around
million unitsof air-conditioning compressor, helping reduce carbon emissions by approximately
14.84
million tons/year;The Company's magnet production for wind power could support wind power installed capacity of about
GW, help-ing reduce carbon emissions by approximately
16.57
million tons/year;The Company invested approximately RMB
8.18
million yuan in environmental protection and treated
0.22
million
tons of waste water;Reduced electricity and water consumption by
4.27%
and
19.09%
respectively compared to 2019.
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Achieving 30/60Goal and Creatinga Wonderful Life
Our action：
Our performance：
serving industries committed to "carbon emission reduction" and "low carbon"
Products sold in 2020 will help reduce carbon emissions approximately
32.34
million tons per year
China's 30/60 goal of peaking carbon emissions by 2030 and achieving carbonneutrality by 2060 will have a profound impact on various industries, people'shabits, economy, and environment.Rare earth permanent magnets, an import-ant driving force behind the green economy, is playing essential and strategicrole in realizing the great goal of carbon neutrality.To contribute to global car-bon emissions control and help realizing China's 30/60 goal, JL MAG has beenactively involving in "carbon reduction" and "low-carbon" efforts along thesupply chain according to the requirements of customers, committing Chinarealize the 30/60 goal and promotes global sustainable development by advan-tage extending its 30/60 goal-based business features and product technologi-cal innovations.
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Wind power generation:
In 2020, the Company's magnet production for wind power could support wind power installed ca-pacity of about
GW, which could reduce carbon emissions by 16.57 million tons per year.
To reduce carbon emissions, it is necessary to improve the power structure from the supply side, increase the use of clean energysuch as wind power and photovoltaics to achieve "carbon reduction" on one hand; and increase the use of green products andimplement carbon removal from the consumer side to achieve "low carbon" on the other hand.As a global leading supplier of coreapplication materials for electric and energy conservation and environmental protection, JL MAG has a widespread presence in the"carbon reduction" and "low carbon" industries.JL MAG has been committing to "carbon reduction" industries such as electric vehicles, energy-saving inverter air conditioners, andwind power and has established long-term and stable cooperation with leading domestic and foreign companies in various ?elds.On this basis, JL MAG has actively explored "low-carbon" businesses and focused on high-tech technologies such as 3C smartelectronics, energy-saving elevators, robotics and intelligent manufacturing. Moreover, it has continued to meet the demands oflow-carbon technologies and help carbon emission control while boosting the technological advancement in China.In 2020, JL MAG continued to increase the supply of core rare earth components for consumer products such as electric vehicles,variable frequency air conditioners and wind power, aiming to expand the application of green products and fully cover energysupply and consumption, so as to e?ectively help energy conservation, reduce carbon emissions and enhance energy e?ciency.
Emission reduction performanceElectric vehicles：In 2020, the magnets production of the Company could support the assembly of around
0.45
million electricvehicles, which can help the transportation industry reduce carbon emissions byabout
0.93
million
tons each year.Energy-saving variable frequency air conditioner: In 2020, the magnets production of the Company could support theassemblyof about
million air-conditioning compressors.which can help reduce carbon emissions by
14.84
mil-lion tons per year.
Main customers include KONEand Mitsubishi Elevator.It has become one of thehigh-performance magnet sup-pliers leading in the elevatormarket, claiming strong marketcompetitiveness.
In 2020, the company's revenuein the field of electric vehiclesand auto parts will reach RMB
0.33 billion yuan, with a YOY
growth of 48.07% .
Actively engaging in 3C industrychain and kicking o? mass pro-duction.Becoming a new growth pole ofthe Company.
In 2020, the company's revenue in the ?eld ofwind power reached RMB 0.88 billion yuan,with a YOY growth of 2.78%.The Company's ultimate customers in thewind power sector include Goldwind andSiemens Gamesa. The Company has beenawarded the title of "Quality and CreditAAAAA Supplier" by Goldwind for six consecu-tive years. Meanwhile, it has been granted the"Long-term Cooperation Award" and "2020Technology Support Award" by Goldwind.
The main customer is BoschRexroth.It has become one of thehigh-performance magnet sup-pliers leading in the elevatormarket, claiming strong marketcompetitiveness.
Electric
vehicles
C
Smart
electronics
Wind
power
Eobotics
and
In 2020, the company's ener-gy-saving variable frequency airconditioner revenue will reachRMB 0.88 billion yuan, with a YOYgrowth of 107.99%.The major customers of theCompany include famous brandssuch as Midea, Gree, ShanghaiHighly and Mitsubishi. In 2020,the Company was rated "TheQuality Supplier of Midea forLean Transformation", the "Ex-cellent Supplier of EfficiencyImprovement" by Midea GroupElectromechanical ProductDivision, and was granted the"2020 VE Proposal Award" byMitsubishi Electric (Guangzhou)Compressor Co, Ltd.
"Carbonreduction"industry
"Low-carbon"industries
JL MAG's "dual carbon" business layout structure to serve China's 30/60 goal
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g
y
-
s
a
v
i
n
g
v
a
r
i
a
b
l
e
frequency
air
conditioner
The Company is the drive mo-tor magnet supplier for electricvehicle manufacturers such asTesla, BYD, and UAES. End usersof the Company include SAIC,NIO, and Li Auto. The Companyis also the rare earth permanentmagnet supplier for the Volkswa-gen Group MEB platform and thedesignated supplier of rare earthpermanent magnet for GM BEV3platform.In 2020, the Companywas granted the "Excellent Quali-ty Award" by BYD Fudi Power Co,Ltd.
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l
li
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e
n
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manu
fa
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t
u
r
i
n
g
0910
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Integrity is one of the core values of JL MAG.Based on integrity, theCompany persists in sound governance and continuously improvesgovernance structures and systems that align with the developmentof the Company. It leverages Party building as an effective toolto reinforce the foundation of development. According to its CSRgovernance guidelines, the Company intends to strengthen riskmanagement and compliance to reward investors.
Integrity andSustainableOperation
Our actions：
Our performance：
continuing to improve the governance structure, strengthening Party building,advancing the responsible governance system, reinforcing risk managementand compliance, and managing investor relations.
Shenzhen Stock Exchange Information Disclosure Assessment Rating:
Grade Athe company won the "Best Board of Directors"
award at the Tianma Award for Investor Relations of Listed Companies bySecurities Times;distributed cash dividends of RMB
86.34
million yuan and the ratio ofcash dividends to the net pro?t attributable to ordinary shareholders of listedcompanies in the consolidated statement reached
35.32%
;Since its establishment in 2008, the Company has distributed cash dividends toshareholders worth approximately RMB
0.70
billion yuan.(Including theamount of cash dividend distribution plan of 2020)
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Organization Chart
JL MAG takes a responsible attitude towards investors. It acted strictly by the requirements of laws and regulations during the re-porting period, continuously improved its corporate governance structure, and established and perfected its internal managementand control system. The Company has built the basic rule system composed of theArticles of Association,Rules of Proceduresfor the General Meeting of Shareholders,Rules of Procedures for the Board of DirectorsandRules of Procedures for the Board ofSupervisorsand formed a governance system for the coordinated operation of the General Meeting of Shareholders, the Board ofDirectors and the Board of Supervisors, as well as a corporate governance mechanism featuring well-de?ned powers and respon-sibilities, coordination, and e?ective checks and balances, aiming to e?ectively protect the legitimate rights and interests of allshareholders and creditors.
The Company has established a perfect internal control system in accordance with relevant national laws, regulations and rules,includingArticles of Association, Rules of Procedures for the Board of Directors, Rules of procedure of the board of supervisors, Themanagement system of related party transactionsandThe management system of the use of raised funds, which provides a moreperfect system guarantee for standardizing the operation of the company and improves the level of corporate governance.
Board ofSupervisors
Board Secretariat
ManagementRepresentative
Board ofDirectors
GeneralManager
Remuneration andAppraisal CommitteeStrategy CommitteeNomination Committee
Audit Committee
GeneralMeeting ofShareholders
Technology R&D DepartmentProduction Management O?ceIntelligent Manufacturing R&D CenterSupply Chain Management CenterHR & Administration DepartmentQuality Management DepartmentMaterial Control DepartmentFinance DepartmentAudit DepartmentInvestment and Financing DepartmentMarket and Production ManagementCommand Center
Internal Control System
S/NName of Internal Control SystemS/NName of Internal Control System
Articles of Association
Detailed Implementation Rules for the Cumulative VotingSystem
Rules of Procedure for the General Meeting ofShareholders
External Guarantee Management System
Rules of Procedure for the Board of Directors
Outbound Investment Management System
Rules of Procedure for the Board of Supervisors
Related Transaction Management System
Pro?t Distribution Management System
Measures for the Management of Raised Funds
Commitment Management System
Information Disclosure Management System
Work Rules for General Manager
Investor Relations Management System
Work System for Independent Directors
Internal Reporting System for Material Information
Work Rules for the Nomination Committee of the Boardof Directors
Management System for Preventing ControllingShareholders and Their Related Parties from OccupyingFunds
Work Rules for the Audit Committee of the Board ofDirectors
Accountability System for Major Errors in Annual ReportInformation Disclosure
Work Rules for the Remuneration and EvaluationCommittee of the Board of Directors
Work Rules for the Secretary of the Board of Directors
Work Rules for the Strategy Committee of the Board ofDirectors
Internal Audit System
Insider Registration Management System for InsideInformation
Foreign Exchange Derivatives Transaction ManagementSystem
Subsidiaries Management System
Sound Governance
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
1193431
FrequencyProposals5841221861
Board ofDirectors
Board ofSupervisors
GeneralMeeting ofShareholders
AuditCommittee
Remuneration andAppraisal Committee
StrategyCommittee
NominationCommittee
The company was granted the "
Best Board of Directors
" award at the 11th ChinaListed Companies Investor Relations Tianma Awards by theSecurities Times.
JL MAG is independent of shareholders regarding assets, personnel, finance, organization, and business. The Company has acomplete business system, which enables it to run independently. Meanwhile, it owns an independent supply, production andsales system.
The Company has complete ownership and control over various assets relevant to productionand operation such as land, office space, machinery and equipment.The property rightsrelationship between the Company and the controlling shareholder is clear, and theCompany’s assets are independent of the controlling shareholder and other enterprisescontrolled by it.
Independent operation
The Company has established an independent financial department, an independentaccounting system, and a standardized ?nancial management system.The Company owns anindependent bank account, a separate basic bank account, and does not share bank accountswith companies controlled by the controlling shareholder, the actual controller or otherenterprises controlled by it.
With clear-de?ned main business, the Company owns independent production and operationspace as well as necessary personnel, funds, equipment and supporting facilities for businessdevelopment. Meanwhile, it has set up an independent and complete business system to runindependently of the in?uence of the controlling shareholder, the actual controller and otherenterprises controlled by it.
The Company has defined strict labor, personnel and salary management systems inaccordance with the law, and elected or appointed directors, supervisors and seniormanagement in accordance with due procedures.The Company's General Manager, DeputyGeneral Managers, Financial Director and other senior management have not held positionsor received salaries in companies controlled by the controlling shareholder, the actualcontroller or in other enterprises controlled by it.
The Company has established the General Meeting of Shareholders, Board of Directors andBoard of Supervisors in accordance with theArticles of Association. Each institution operatesindependently and exercises their respective powers in accordance with the law, which runindependently of those in companies controlled by the controlling shareholder, the actualcontroller or other enterprises controlled by it.
Independent
assets
Independent?nance
Independent
business
Independentpersonnel
Independentorganization
The independent operation of the Company
4 non-employeerepresentativesupervisors
The company strictly abides by theCompany Law, Securities Law, Guidelines for the Standard Operation of Listed Companies onthe Shenzhen Stock Exchangeand other rules and regulations, as well as theArticles of Association and other rules and regula-tions. In 2020, the company held 3 shareholder meetings, 11 board meetings, and 9 board of supervisors meetings, which ensuredthe company's standardized operation and compliance governance. The Audit Committee, Nomination Committee, Remunerationand Appraisal Committee and Strategy Committee of the Board of Directors have all ful?lled the duties of special committees,played the role of special committees, and promoted the company's sustainable development.
Operation of the General Meeting of Shareholders, the Board ofDirectors, and the Board of Supervisors
3 independentdirectors
6 non-independentdirectors
3 employeerepresentativesupervisors
The composition of the Company’s Board of Directors and the Board of Supervisors
Members of the
board
Members ofthe Board ofSupervisors
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Party member structure
Commending outstanding Party members during the epidemic
Carrying out Party's Day activities
Organizing education work meetings
Organizational setting standard-ization
Standardization of party mem-ber team building
Standardization of work tasks
Standardization of services tothe people
Standardization of leadershipteam building：
Standardization of funding guar-antees：
Standardization of operatingmechanism
Standardization of organizationalactivities
Standardization of Party BuildingResponsibilities
Standardization of event venues
Improve the organizationalstructure of the party branch
Realize the standardizationof personnel structure, partymember training, education andtraining, supervision and man-agement, party dues payment,and incentive care
Improve the work task list andrealize the standardization ofresponsibilities
Realize the standardization ofserving employees, serving en-terprises, serving society, andserving customers
Improve academic require-ments, management level re-quirements, and cross-employ-ment requirements
Improve work funding, party workallowances, Activity funding guar-antee system
Improve the standardization oforganizational meetings such asmanagement decision-makingmeetings, democratic conferences,non-party employees attendingparty organization meetings, andthe standardization of personalperformance such as party organi-zation secretary performance goalcards, party members' personalvanguard storage cards, etc.Realize the standardization of threemeetings and one lesson, themeparty day, organizational life meet-ing, democratic evaluation of partymembers, and heart-to-heart talksCarry out the coordination of an-nual production and operationtasks and party building tasks,party branch members with onepost and two responsibilities,party branch team reporting andevaluation, and realizing the align-ment and standardization of partybuilding responsibilities "person,matter, and duty"
Achieved the standardized con-struction of the six areas: "there is aparty ?ag", "a system", "a place", "afacility", "a logo", "a book"
JL MAG adheres to integrating into the center and focusing on Party building. With the goal of improving the quality of Partybuilding work, the company continuously improves the standardization construction, focuses on promoting the standardizationconstruction and realizes the continuous improvement of Party building working mechanism and daily management ability. JLMAG forms the same frequency resonance between Party building work and enterprise management, and guides the company toachieve high-quality development.
Party Building
Improve standardiza-tion construction
Promoting standardiza-
tion
Male/Female Party
membersAge
Capacity
Educationbackground
Party members
male Party members
female Party members
members under 35
members over 35average age is 36
postgraduates
undergraduates
junior college graduates and
members below junior college
management cadres
employees
1920
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Responsible Governance
JL MAG has established a corporate culture system based on core values. Guided by its mission, the Company focuses on rare earthpermanent magnets, and supports green industries through the innovation and application of permanent magnet materials. Pro-viding clean and e?cient energy and application solutions, it has made unremitting e?orts to create a better life for mankind.
JL MAG has identi?ed substantive issues in 2020 through communication with stakeholders and analysis of national policies, in-dustry trends and company development blueprints.
Responsibility culture
Substantive issues
Become the world's leadingenterprise in the rare earthpermanent magnets industry
Customer orientation, inno-vation and transcendence;unity of knowledge and action,integrity and gratitude
Cutting-edge technology,reliable quality, punctual deliv-ery,Management (service) up-grade, capital assistance,Leap-frog development
JL MAG creates a betterlife with rare earth
Vision
Corevalues
Businessphiloso-
phy
Mission
Issues on corporategovernance
Issues on economy
Issues onenvironmentBusinessperformanceTechnologicalinnovationGovernancecomplianceBusiness riskspreventionLean managementLean productionEmployee care
Safeguardingcustomer rights andinterests
Resource recycling
EmployeeempowermentProduct qualityEmission reductionOccupational healthTargeted poverty
alleviationCustomer serviceEnergy savingSalary and bene?ts
Major public events
supportSupply chainmanagement
Wastemanagement
Employmentcompliance
Community supportIssues onemployees
Issues on community
JL MAG actively promotes close communication with stakeholders. Through publishing CSR reports and convening exchangemeetings, the Company intends to fully understand the concerns and needs of stakeholders.
Communication with stakeholders
Customer satisfaction surveyCompany Tel/email/mobile phone
General Meeting of Shareholdersinformation disclosure roadshow; reverse roadshowo?ine researchonline communication
Visit and inspection
Carrying out volunteer activitiescharitable donation
Participating in standard formulationindustry exchanges and communicationdeveloping school-enterprise cooperation
Labor Union activitiesemployee training
Supplier meetingsupplier contract
Product qualityhigh-quality serviceprotection of rights and interests
Business performancegovernance compliancerisk prevention
Creating jobspromoting local economicdevelopmentoperation compliancegreen production
Green productionsocial welfarevoluntary services
Product responsibilitycommon progress
Employment compliancesalary and bene?tsoccupational health and safetyempowerment and career de-velopment
Transparent procurementhonest trade
Communication channel/methodStakeholdersConcernsClient
Employees
Shareholders/investors
Industry/standardassociations
Supplier
Government
Community
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Internal Control ManagementThe company's internal control management system consists of the board of directors, the audit committee, the audit department,the company's various functional departments and various business units. In daily management, the company carried out Gover-nance special actions, through company self-inspection, on-site inspection, internal and external audit, supervision and recti?ca-tion and other links, e?ectively improve risk prevention capabilities. In 2020, the company completed the "2020 Internal ControlSelf-evaluation Report" according to the "Internal Audit System", "Application Guidelines for Enterprise Internal Control", "Guide-lines for the Normative Operation of Listed Companies on the Shenzhen Stock Exchange (Revised in 2020)", etc. Relevant lawsand regulations, on the basis of daily supervision and special supervision of internal control, The evaluation scope includes Fundmanagement, procurement management, sales management, preparation of ?nancial reports, related transactions, raised funds,project management, foreign investment, etc. The evaluation conclusions are public.There are no major and important defects inthe internal control of the company. The accountant and the continuously supervising the securities ?rm respectively issued attes-tation opinions and veri?cation opinions on the above reports.
The company has established a complete set of humanresources management procedures, and formulated amanagement system covering the entire process, ratio-nally combining employees' careers with the company'scareer development, and achieving a win-win situation forthe company and employees.
A sound ?nancial management system has been estab-lished, and business processes have been comprehen-sively sorted out to ensure that the ?nancial reports aretrue, complete, and timely. At the same time, an account-ing ?rm was hired to conduct audits in accordance withregulations.
The Company has set up the Purchasing Department tobe responsible for purchasing a?airs, and formulated thePurchasing Management & Control Procedures to tightenthe internal control over procurement and payment, andstandardize procurement and payment behaviors.
In terms of capital business, the company has establisheda position responsibility system and authorization approv-al system, and strictly follows the principle of incompati-ble position separation, and allocates the responsibilitiesof relevant departments and positions.
Establish the "Related Transaction Management System",clearly stipulate the relevant content, and ensure the le-gality, fairness and rationality of the related transactionsbetween the company and each related person; the controlmeasures can be e?ectively implemented in the report.Sign the "Tripartite Supervision Agreement on RaisedFunds" with the sponsor and the special account de-pository bank to ensure that the special funds are usedexclusively; the report has not shown any embezzlementor occupation.All aspects of the project selection are evaluated and cer-tified. According to relevant regulations, the content ofthe internal control of the project covers the key points,effectively preventing the occurrence of constructionrisks and fraud.The company's major investment activities are conductedin accordance with relevant regulations, fully demonstratethe necessity and feasibility of investment projects, andstrictly follow the corresponding approval procedures andinformation disclosure obligations.
Develop a sales and collection management system in-volving the entire process, and make clear regulations foreach department.Establish relevant regulations and systems for asset man-agement, clarify the control process of company property,ensure the correctness, completeness and safety of ?xedasset records, and ensure the normal operation and ef-ficiency of fixed assets. During the reporting period, thecontrol measures of all aspects of the company's assetmanagement were e?ectively implemented
Human Resource Management
Preparation of ?nancial report
Procurement management
Fund management
Related party transactions
Raise funds
Engineering project management
Foreign investment
Sales Management
Asset Management
Board of DirectorsAudit CommitteeAudit Department
Functionaldepartments andbusiness units of
the company
Investor RelationsDuring the reporting period, JL MAG accurately and completely disclosed relevant information in accordance with the requirementsof the Information Disclosure Management System and Investor Relations Management System, and actively communicated withinvestors to maintain a good relationship with them.
Disclosure practices of the Company
Company honors for information disclosure
The Secretary of the Board of Directors is responsible for information disclosure, receiving shareholders and providing consultingso as to ensure that all shareholders have equal access to information.Information disclosure
Number of information disclosures:
Information Disclosure Rating:
A-level according to Shenzhen Stock Exchange(According to the information disclosure assessment results of listed companies releasedby the Shenzhen Stock Exchange in September 2020: there are 387 companies among2,196 listed companies in Shenzhen Stock Exchange with an assessment result of A,accounting for 17.62%)
disclosing
announcements in 2020
Information disclosure channels:
Securities Times, China Securities Journal, Securities Daily,Shanghai Securities News and CNINF.
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
In 2020, JL MAG distributed dividends in accordance with the relevant provisions on pro?t distribution of Articles of Associationand the Company'sShareholder Dividend Return Plan for the Next Three Years (2019-2021) to protect the interests of shareholders. Return on investment
Investor communication practices of the Company[see annual report for details]
The Company's cash dividend distribution in 2020 is as follows:
Unit: 10 thousand RMB
Investor survey
The cash dividend amount (tax included) in 2020 was RMB 86,340,792.80 yuan, which was calculated based on the total share cap-ital of 431,703,964 shares after the market close on February 26, 2021. The actual dividend amount was calculated based on thetotal share capital on the equity rights registration date for pro?t distribution.
20208,634.0824,448.3735.32%
Distributionyear
Cash dividend amount(tax included)
Net pro?t attributable tocommon shareholders oflisted companies in the 2020consolidated statement
The ratio of the amount ofcash dividends to the netpro?t attributable to ordinaryshareholders of the listedcompany in the consolidatedstatementReception timeGuestReceptionmethod
Guest type
June 3, 2020Thursday, June 11, 2020Friday, July 17, 2020
Wednesday, November4, 2020Friday, November 20,2020
Friday, September 4, 2020Thursday, September17, 2020Tuesday, November 3,2020
CITIC Securities, Shanghai Boju Investment Development Center (LimitedPartnership), Cai XiaodongHaitong Securities2020 Investor Collective Reception Day for listed companies in JiangxiShanghai Boju Investment Development Center (Limited Partnership),Fujian Hongteng Asset Management Co., Ltd., Grace Chan Wealth Manage-ment(Shanghai), Hongfeng Assets
CCB International, Tianfeng Securities, Shenwan HongyuanGenharmony, Hubei High Technology Industry Investment, Ruishi Fund
JNK Securities、LAZARD Asset ManagementCITIC AMC, Zhong Ou Asset Management, China Orient Asset Management,Changjiang Securities, Daoren Investment, Founder Asset Management, Si-nosafe Assets, China Fuming Assets, Shanhe Investment, Knight Investment,Jiu Lei Investment
Field researchField researchOthersOthers
InstitutionsInstitutions
Field researchTelephonecommunicationField researchField researchField research
InstitutionsInstitutionsInstitutionsInstitutionsInstitutions
Since the establishment of the company in 2008, the total amount of dividend is about RMB
0.70
billion yuan (including the amount of cash dividend distribution plan of 2020).In 2020, the company replied
questions through the interactive e-commerce platform, an increase of196%compared with that in 2019.
JL MAG communicates with investors through various online and o?ine channels to ensure that investors can get full access to theCompany's operating conditions.Investor communication
Investor communication channels:
Online conference call ando?ine exchange meeting
Institution strategy meet-ings, roadshow and counterroadshow
Direct communication withinvestors
Investors visit the Compa-ny's workshop and have in-depth exchanges with seniorexecutives
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Innovation is the driving force behind the development of enterprises.JL MAGhas attached great importance to all-round economic innovations. The Com-pany has continuously iterated the latest technology and its lean managementcapabilities and optimized quality management and service experience, vow-ing to become a high-performance rare earth permanent magnet provider inthe world.
DevelopmentthroughInnovation
Our actions:
Our performance:
innovative technology, innovative quality, innovative capabilities, innovativeservices.
In 2020, the Company spent RMB
103.18
million yuan on R&D, witha year-on-year increase of
60.44%,
accounting for
4.26%
of operating income. The customer approval rate throughout the year was100%; the delivery time was shortened by30%, and the turnoverdays in production was reduced by30%
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Innovation achievements of JL MAG are leading in the worldCase study:
Technological Innovation and Green Production
Since its establishment, the Company has been focusing on technological R & D and innovation. In 2020, the Company spentRMB 103.18 million yuan on R&D, with a year-on-year growth of 60.44%, accounting for 4.26% of its operating income.JL MAG hasestablished a sci-tech innovation incentive system and an intellectual property management system to promote the e?ciency ofthe Company's R&D and innovation e?orts.In 2020, the Company continued to advance patent application and R&D, and activelyundertook national and provincial research projects. Meanwhile, it actively cooperated with customers to carry out new productR&D and product iteration and upgrade,providing high-quality services for environmental protection and energy conservationindustries.
In 2020, JL MAG issued theManagement Measures for ScienceandTechnology Innovation Awardand theJL MAG IntellectualProperty Management Systemto encourage R&D personnel to innovate through system guarantee and cash incentives, aiming toimprove the independent innovation capabilities of the Company and drive technological progress while e?ectively protecting TheCompany's intellectual property rights.
R&D management
The system has defined the management of,novelty search of, application of, and protection ofintellectual property.The Company has establishedan Enterprise Intellectual Property TechnologyCenter and an early warning mechanism, andhas analyzed 670 patent infringement cases.The patent risk management efforts have beenrecognized by major customers.
The Company conducts a quarterly selection ofscienti?c and technological innovation projects.The evaluation team is composed of the DeputyGeneral Manager in charge and heads of theProduction Management Center, the FinanceDepartment and other departments. The teamwould grant four awards (special prize, firstprize, second prize and third prize) to innovationprojects according to three criteria:innovation,economic bene?t and quality improvement.
JL MAG Intellectual Property Management System
The Company's R&D management system
The Company was rated as a high-tech enterprise in Jiangxi Province
In 2020, JL MAG actively undertook national and provincial R&D projects, and cooperated with stakeholders such as universitiesand research institutes to promote breakthroughs and industrial applications of innovative achievements and support the devel-opment of green industries.
Green innovation
In 2020, the Company got actively involved in key national and provincial R&D projects
Patents of the Company
As of the date of issuance of this report, the Company has applied for
patents totally.The Company has licensed
invention patents and
utility models.
JL MAG participated in the national key research and development program "Networked CollaborativeManufacturing and Smart Factories", and undertook the program themed"Intelligent ManufacturingIntegrated Technology and Application of Rare Earth Functional Materials".The Company undertook a major sci-tech R&D project in Jiangxi Province in 2020: research on keytechnologies of high-performance rare earth permanent magnets for energy-saving motors.
Case study:
Evaluation of scienti?c and technological achievements
In 2020, the Company completed the scienti?c and technolog-ical achievement evaluation of "research and industrializationof key technology of high temperature resistance and lowheavy rare earth in high-end magnets". According to the com-prehensive evaluation of the Chairman of the Chinese Societyof Rare Earths and other top experts of the industry, JLMAGhas invented and realized industrial production of 56SH, 54UH,and 50EH which are made of high-temperature resistance andhigh-performance sintered NdFeB magnet materials with thetechnology of reducing the use of heavy rare earth, providingkey support to electric vehicles, wind power, compressors,intelligent manufacturing and 3C electronic products. It hasyielded signi?cant economic and social bene?ts, and thus beenregarded as a world leading technology.
Management Measures for Science and TechnologyInnovation Award
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Key points of the Company's quality culture
One center:
customerrequirements
Two risk preventionmeasures:
Prevention throughdesign and pre-production prevention
Three red lines:
Engineering changes,?rst item inspection,quality & integrity
In 2020, JL MAG explored to establish its own quality system to meet the requirements of di?erent customers.With more than tenyears of development, JL MAG has established a complete quality control and management program covering each step fromproduction to after-sales management, forming a unique quality culture.Through implementing the strict quality managementsystem, the Company e?ectively achieved its quality management goals in 2020.
Quality management
The development roadmap of the Company's quality system
Quality Innovation and Quality ControlThe Company has built a quality management system in strict accordance with the quality standards of the automotive industry.The system features high standard management and requires participation of all employees to implement full control. It has main-tained the quality level of 0 PPM at a number of well-known international and domestic clients such as Bosch Group and MGC.The Company has comprehensively implemented the IATF 16949:2016 International Standard for Automotive Quality ManagementSystems and established its own quality management system JLQB by adapting the quality management system requirements ofinternational customers, such as GM's Built in Quality Supply (BIQS)
Passed quality sys-tem certification
ISO90012009
Passed the auto-motive quality sys-tem certificationIATF2011
JL MAG establishedits unique qualitymanagementsystem, JQB, byidentifying andintegrating variouscustomer require-ments2020
Passed the envi-ronmental sys-tem certi?cationISO14001
2010
Customer quality sys-tem requirements suchas:14Q，QD83，BIQS，Formel Q
2011 - 2019
In 2020, the Company carried out various quality improvement activities, such as the appraisal of Weekly Improvement ProjectAwards, Monthly Quality Excellence Awards, Annual Quality Awards, and General Manager Quality Awards, and granted rewardsaccording to quality improvement scores, trying to encourage cooperation and improvement in production, technology, andquality.Meanwhile, it has established a layered audit and rapid response mechanism, advanced personnel training and systemtraining and implemented strict engineering change management, so as to fully guarantee the quality of the Company's productsand achieve substantial quality cost reduction.
Quality improvement
The Company carried out quality training
In 2020, the Company's Intelligent Manufacturing Application R&D Center invested RMB 22.03 million yuan to independently devel-op, manufacture, and deliver more than 100 units of new automation equipment, which signi?cantly improved its ability to inde-pendently develop equipment and produce molds, and maintained product quality stability and consistency.
JL MAG continues to foster intelligent manufacturingCase study:
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
JL MAG assembled a lean production improvement team to engage in lean production activities, and mobilize relevant departmentpersonnel to get actively involved in various lean production activities.The Company has advanced its high-quality development ofbusiness performance by adopting lean production concepts and tools to solve the problems in the production process.
In 2020, JL MAG worked hard to implement lean production, integrate business processes, and build a corporate value chain. Itsproduct delivery capabilities and production e?ciency are leading in the industry and widely applauded by customers.Lean management
Capability Innovation and Lean Production
Lean Daily Management (LDM)
IE daily check scoreMorning perfor-
mance-drivingmeeting review
Weekly perfor-mance-drivingmeeting review
Monthly perfor-mance-driving re-view
Annual perfor-mance-drivingsummary
Daily check
Morning meeting review Weekly meeting Monthly review Annual summary
The FivePrinciples ofLean
Establish
Pull
Map
the
Value
Stream
D
e?
ne
Value
Pursue
Perfection
Corporate strategiesCompany goalsDepartment indicators
Process analysisProblem identi?cationCountermeasuresGoal support
Pattern matchingModel planningDashboard designInventory design5S visualization
PSP, SMEDTPM, SW….
Regular checkDaily morning meetingWeekly meetingMonthly review
Create
Flow
Lean practices
JL MAG has actively carried out relevant improvements and talent training based on the lean productionmanagement model.In 2020, the Company reduced delivery time by30%and turnover days inproduction by30%
.
Talent cultivation and training:
Through the Improvement Week Program,
sta? have been certi?ed green belts, with aprogram completion rate of 120%.
In 2020, JL MAG carried out 54 times of Improvement Week Program
VSM: Identifying areas of highenergy consumption withvalue stream-based thinking
Driving
Conducting the activity ofProblem Solving and Perfor-mance-driving Week for16 times
throughout the year
Conducting the activity of ValueStream Improvement Week for
times throughout the year
Carrying out the activity of QuickChangeover and Improvement Weekfor8 times throughout the yearCarrying out the activity of EnergyE?ciency Improvement Week for
times throughout the year
Carrying out the activi-ty of Performance-driv-ing Week for6 times
throughout the year
PSP: Identifying energyconsumption areas with a?owchart (problem solving)
SMED: Applying quick changeovermethod to improve mold changee?ciency and reduce debuggingTPM: Applying disassembly andmaintenance to improve energy waste(Total production maintenance)
Energy e?ciency improvement
improvementweeks
Carrying out the activity of Pro-duction Maintenance Improve-ment Week for5 timesin totalthroughout the year
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
JL MAG is customer-oriented, and keeps carrying out technological upgrades and product di?erentiation design.The Companyextends its technical services to the client side, which applies its technical advantages in NdFeB permanent magnet materials tocustomers' product design. The goal is to assist customers in optimizing product performance, reduce product costs, and provide afull spectrum of technical solutions.
Service Innovation and Customer Perception
JL MAG Customer Service System
JL MAG has formulated theCustomer Service Specification, which defines the objectives, concepts, rights and responsibilitiesof customer services. The goal is to enhance the standardization of customer services, ensure scienti?c and e?cient marketingdecisions, handle quality issues promptly and maintain stable quality operation.Service system
Standardizing the operationprocess and detail require-ments of customer service,and through continuouscommunication and in-teraction with customers,achieve continuous im-provement of details andharmonious relationship.
"Professional, Rigorous,Prompt and Innovative".Customer service is a sys-tematic work that formsa complete closed loopthrough various practices.
The specification clearlyrequires that the DeputyGeneral Manager is respon-sible for the overall coordi-nation; the Marketing andSales Department and theCustomer Service Depart-ment are responsible fortask implementation, andthe Quality Department andthe System Department areresponsible for customerservice support.
The specification clearlydefines the whole processof customer services, in-cluding the organizationand initiation of customerservice, customer visits,abnormal project follow-up,successful experiencesharing, and performanceappraisal. Meanwhile, thespeci?cation would be con-tinuously revised accordingto the new situation andnew experience of customerservices.
GoalsResponsibilitiesConceptExecution
While implementing customer satisfaction management and after-sales services, JL MAG actively analyzes customer needs andimprovement solutions, and responds to customer complaints and comments, forming a closed loop to improve service quality.
JL MAG has established theCustomer Satisfaction Survey Management Procedureto regularly conduct customer satisfactionsurveys from multiple dimensions such as product quality, timely delivery rate, delivery cycle, R&Dcapabilities, timely responserate of complaints, product price, and customer services. Based on the feedback of the satisfaction survey, the Company wouldmaterialize recti?cation and improvement practices.
JL MAG formulated the Customer Complaints Management Procedureand revised the procedure twice in 2020, aiming to ensurethat the procedure can fully cover possible service scenarios, and the relevant departments can handle customer complaints andreturns in a timely and e?ective manner and take corrective and improvement measures to guarantee customer satisfaction. Inaddition, the relevant departments gave the feedback of customer requirements and opinions on products to the Company to con-tinuously improve product quality.
Service practices
Customer satisfaction management
After-sales services
JL MAG attaches great importance to the rights and interests of customers.JL MAG has established the Project Information SafetyManagement System to ensure the information security of customers, and safeguard the rights and interests of customers throughvarious practices.
JL MAG has formulated theProject Information Safety Management Systemto standardize the managementrequirements of con?dentiality and security of project information, prevent leakage of con?dential information ofthe Company and its customers, and ensure information security.
After the Marketing Department receivesthe project information, the projectmanager/marketing leader would confirmthe confidentiality level of the project. For"confidential" projects, the project manager/marketing leader shall establish a list of projectmembers and require relevant sta? to sign theconfidentiality agreement and supervise theimplementation process.
TheProject Information Safety ManagementSystemclearly stipulates that employeeswho need to access the original drawings ordocuments of the customer or employees insensitive positions shall submit theApprovalForm for Joining the Project Team. They canonly join the team after being approved andproperly trained. In addition, regular training isrequired.
Safeguarding customer rights and interests
Systemguarantee
Agreementsigning
Carryingout training
JL MAG fully guarantees project information security
In 2020, the JL MAG customer satisfaction survey showed that the overall satisfaction rate ofautomotive customers scored
while that of non-automotive customers was
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
JL MAG has been committed to creating high-quality workingconditions and environment for its employees. It has worked hardconstantly to standardize and optimize the management of suppliersand promote industrial exchanges and progress, aiming to transcendthe relationship between employer-employee and supply-demand,seeking to achieve win-win development for all parties.
Transcendence andWin-win
Our actions：
Our performance：
Employment compliance, improving remuneration and benefits, ensuringoccupational health and personal safety of employees, strengthening suppliermanagement, and adhering to transparent procurement.
In 2020, RMB
97.63
million yuan was spent on employee welfare;In 2020, the company held
recreational and sports activities foremployees, with15,971participants; The Company completed thefirst production sequence skill level evaluation; In 2020, the Company spentapproximately RMB
3.65
million yuan on occupational safety throughoutthe whole year, with an increase of
38.63%
year-on-year.
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Employees aged51-53 1%
The Company has continuously improved humanistic care and employee well-being.By improving the salary and benefitssystem, re?ning the training system, and providing care for female employees, the Company has made every e?ort to create awarm work environment and enhance the sense of happiness and contentment of employees.
The Company has clari?ed the salary calculation method in accordance with theSalary Management Procedure, making sure itswage and subsidy system meets the requirements of laws and regulations. It has striven to increase the transparency of salary,and protect the legitimate rights and interests of employees.In addition to providing the statutory bene?ts of Five Insurances and One Housing Fund, the Company has purchased acci-dental injury insurance for management and ?eld personnel. Moreover, it has regularly or irregularly issued temporary or long-term welfare policies based on actual conditions.The Company attaches importance to value creators. It not only compensatesemployees working under special conditions, but also provides material and spiritual incentives to value creators such as out-standing teams, excellent employees, advanced individuals, and JL craftsmen.
Employee care
Male employees 68%
Age structure of employees
Education background of employees
Gender structure of employeesPhD holders
2,746
Master degree holdersJunior college and belowBachelor degree holders
Female employees 32%
Employees aged31-40 48%
Employees aged41-50 17%
Employees aged54 and above 0%
Employees agedunder 30 34%
The Company regards talent as its greatest capital, and insists on attracting talents with vision, hiring talents based on achieve-ments, retaining talents with career opportunities, assessing talents based on performance and being value creator-oriented.In2020, the Company approved the2020 Restricted Stock Incentive Planto fully mobilize the initiative and creativity of employees,maintain team stability, build harmonious employer-employee relationships, and enhance employees' sense of accomplish-ment and belonging.
Employees and Collaboration
The Company strictly complies with theLabor Law, Labor Contract Lawand other relevant laws and regulations. It insists onemployment compliance, signing labor contracts with employees in accordance with the law. Moreover, the Company providesemployees with equal access to employment and development opportunities and safeguards their basic rights and interests.Asof December 31, 2020, the Company has a total of 3,038 employees.
Employment compliance
Improving the salary and bene?ts system
Welfare policy of the Company:
Gender structureof employees in2020
Age structure ofemployees in2020
Rewards given to employees by the Company
Birthday meals andgifts for employees
Year-end bonuses
Employees with over 5years of service will berewarded with com-memorative gold coins
A variety of recreation-al and sports activities
Free working mealsand accommodation
Cash bonus for traditionalfestivals and red packetfor commissioning
Donation to employ-ees in di?culties
Outstanding Sta?New Employee Growth Award Monthly ?oating performance bonusVarious project rewardsIn 2020, the labor contract signing rate of new employees was100%;
employees renewed labor contracts;
persons were converted to quali?ed employees duringthe probation period; and the coverage rate of social insurance for eligible employees was100%
1,000 1,5002,0002,5003,000 3,5005000
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
The Company provides additional compensation foremployees working under special conditions
Night shiftallowance
Con?dential-ity allowance
Providing free laborprotection and pro-tective appliance
High tempera-ture allowance
Seniority allow-ance
Business travel
allowance
The Company spent RMB
97.63
million yuan on employee welfare throughout the year;In 2020, the Company organized
recreational and sports activities for employees, with15,971participants.
The Company has paid attention to the voice of employees and built internal democratic communication channels. It has for-mulated internal systems and speci?cations such asEmployee Appeals and Handling Procedure, andFreedom of Associationand Collective Consultation Control Procedureto fully protect employees' legal rights and interests, and respect their freedom.The Company would adopt reasonable suggestions and complaints and make improvements to promote the harmonious devel-opment of the Company.The Company also has fully protected the employees' participation rights and expression rights by holding employee represent-ative meetings, implementing employee satisfaction surveys on sense of belonging, and organizing reserve cadres' communi-cation meetings. On this basis, it has formulated and implemented improvement plans to persistently optimize the Company'smanagement.
Strengthening democratic communication
The 12th "JL MAG Cup" Men's Basketball Match
The Company's e?orts to care for female employees
The Company has created a multi-dimensional incentive system including equity incentive plans to e?ectively mobilize the initi-ative and creativity of employees and maintain team stability.
The Company pays attention to the protection of the rights andinterests of female employees. It approves leaves for female em-ployees during pregnancy, childbirth and lactation. It devotes toprovide female employees with comfortable working conditions,and o?er warmth and care to female employees.
Note: among the above "net profit" indicators, the net profit in 2019 is the net profit attributable to the shareholders of the listed company, i.e.RMB 156,880,220.48 yuan. The net pro?t in 2020, 2021 and 2022 refers to the net pro?t attributable to the shareholders of the listed company, afterexcluding the in?uence of equity incentive cost.
The Company provides VIP meals for female employeesduring pregnancy. It does not arrange extended workinghours for female employees who are pregnant for morethan 7 months, and gives prenatal check-up leaveFor female employees during perinatal period, the Companywill grant the corresponding number of days of maternityleave in accordance with the relevant policies of the state andJiangxi Province, and pay maternity leave wages and materni-ty allowances in accordance with regulationsFor female employees during the lactation period, theCompany does not arrange extended working hours,and grants at least 1-hour leave for nursing
Multi-dimensional incentive mechanism
Care for female employees
Releasingperiod ofrestricted stock
Correspondingassessment year
Annual net pro?t growth rate relative to 2019
target value
Trigger value
During the reporting period, the Company implemented the concept of "creating platform together and sharing bene?ts together" andactively materialized equity-based incentives through the capital market.In August 2020, the Company approved the 2020 RestrictedStock Incentive Plan. By now, the Plan has granted a total of 8,034,000 shares to 226 employees, accounting for about 2% of the Compa-ny’s total share capital. The incentive objects include: directors, senior executives and core technical (business) personnel. The net pro?tgrowth rate is taken as assessment index in this incentive plan, and the details are as follows:
First releasing periodof restricted stockSecond releasing periodof restricted stockThird releasing periodof restricted stock
202020212022
Growth of net pro?t in 2020 will not be less than 30.00%comparing with net pro?t of 2019Growth of net profit in 2021 will not be less than 60.00%comparing with net pro?t of 2019Growth of net profit in 2022 will not be less than 90.00%comparing with net pro?t of 2019
20.00%
40.00%
70.00%
The Company approved the2020 Restricted Stock Incentive PlanCase study
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
The Company has continuously improved its training management system, promoted level-based and position-based annual trainingprogram. It has created six employee development channels featuring management, specialty, quality, sales, function, and produc-tion, striving to stimulate potential and value of employees to the full extent.
Adhering to the idea of "assessing talents based on data and performance", the Company has integrated the employees' ca-reers with the Company's development in a scienti?c and rational way. It has built a platform and shared bene?ts together withemployees, and advocated more pay for more work, excellent pay for excellent work, with an aim to build a superior careergrowth platform for employees and achieve win-win development of the Company and employees.
New employee training: pre-post theory training, pre-post skills training
Quality target requirements trainingOn-the-job training: conventional theory training, job transfer skill training, standardchange skill training, return-to-job skill training, and skill enhancement training
Sales service training
Improving training system
Employee growth
Annual training program:
Position-based annual training program
Department oftrainees
Position of traineesTypes of training
courses
production/work section,technical department,functional departments
deputy general manager,director, manager (includingsenior engineer), supervisor(including engineer),team leader and assistant,employee
open courses, skillenhancement, quality system,safety, empowerment
JL MAG Open Class
The safety production standard-ization system of the Company
The long-term mechanism forsafety production of the Company
The Company obtained the Third-lev-el Certi?cate for Enterprises of SafetyProduction Standardization
The Company follows the safety production policy featuring "safety ?rst, prevention ?rst, comprehensive management, peo-ple-oriented, full participation, and intrinsic safety". It has established and maintained a safety production standardization sys-tem and a long-term mechanism for safety production.The Company has established a robust safety management system andorganizational structure.In 2018, the Company obtained the Third-level Certi?cate for Enterprises of Safety Production Standardization. It kept carryingout the management of safety production standardization system, and completed the self-evaluation work at the end of De-cember 2020.
Health and safety
In 2020, the Company completed the ?rst production sequence skill level evaluation, and preliminarily established the evaluationmethod and criteria for each position, as well as corresponding theoretical and practice question banks.Skill evaluation is conduciveto the training of employees, and to motivating employees and enhancing the work quality of technicians.Improving professional skills
Safety productionstandardizationsystem
Continuousimprovementof safetyperformance
Planning
Self-check
Self-improvementExamination
ImprovementSelf-correctionImplementation
Long-termmechanismfor safetyproduction
The Company has established the safety manual and related safetymanagement systems.In 2020, the Company reviewed all systems and revised
of them. Therevised safety production rules and regulations have been issued to relatedpositions, and employee-training has been organized.In 2020, there was no major production safety accidents in the Company, andno fatal accidents, serious injuries, occupational diseases, and fire accidentswith direct economic loss of more than RMB 10,000 yuan.
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
The Company has formulateda Responsibility System for All Employees to clarify the safety responsibilities of leaders at alllevels, functional departments, and employees. The aim is to strengthen safety management, e?ectively protect the safety andhealth of employees, prevent major accidents, reduce the frequency of general accidents, and ensure the order of productionand business activities.
The Company attributes great importance to enhancing employees' safety awareness. It has formulated theSafety ProductionEducationand Training SystemandFire Safety Management Systemto strengthen and standardize its internal safety manage-ment.In addition to team daily safety publicity and education activities, the Company has also carried out various safety activ-ities, such as three-level safety training for new employees, on-the-job safety training for all employees, safety publicity activ-ities, and emergency drills, in order to improve the safety knowledge and awareness of employees and strengthen employees'ability to prevent accidents and protect themselves.
Implementation of safety responsibilities
Enhancing safety awareness
Leaders at alllevels
CompanypersonnelSafetyProductionCommittee
Environmentalprotectionandsafety departmentResponsible for the revision, distribution, controland management of theResponsibility System forAll EmployeesResponsible for the organization, implementation,supervision, inspection and assessment of the Re-sponsibility System for All Employees
Performing safety responsibilitiesand supervising and assessing thesafety responsibility implementationof employeesResponsible for supervising and assessingthe implementation of safety responsibili-ties of personnel at all levels
Performing safetyresponsibilitiesand abiding byrules and disci-plines for worksafetyDescription of responsibilities in the Company'sResponsibility System for All Employees
Team daily safety publicity activitiesFire-fighting equipment practical operation
training for new employees
To implement the policy of"Prevention ?rst, Combination of ?re prevention and ?re ?ghting" and to ensure intrinsic safety, in2020, the Company continued to increase investment in safety production, improve safety production levels, reduce accidents,and ensure the personal safety and health of employees.Investment in safety production
In 2020, the Company invested approximately RMB
3.65
million yuan in safety production.
In 2020, the Company conducted
sessions of three-level education and training activities for newemployees, with2,096 participants;In 2020, the Company conducted
sessions of on-the-job safety and health education and training for allemployees, with3,700 participants.
Purchasing mini
?re stations
Buildingnew outdoor
charging
stations
Establishing a three
tiered(company-workshop-team)safety productionmanagement system
Increasing investment in
safety production
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
The Company has set up a Safety Production Department that is responsible for the development of safety emergency manage-ment system. It has formulatedAccident Emergency Rescue Management System andComprehensive Emergency ResponsePlan for Safety Production Accidentsto de?ne the emergency response process and structure. Meanwhile, it has built an emer-gency team composed of 181 part-time ?re?ghters who carry out various emergency drills on a regular basis, with the goal to ef-fectively prevent and respond to safety emergencies, improve employees' ability and awareness of self-prevention and self-res-cue, avoid, reduce and mitigate hazards caused by incidents.
Safety emergency management
On December 1, 2020, the Company conducted an environmental accident emergency drill at the wastewater treatment station.Through emergency drills, the Company intended to improve its ability to respond and organize rescues in the event of chemicalspills, and to check the e?ciency and e?ectiveness of the on-site emergency command system, as well as of on-site cleanup after theaccident in case of the following situations: the leakage of hazardous chemicals in the proposed area, accident alarms, the activationof emergency rescue systems, the assembly of rescuers, on-site vigilance and evacuation, rescue of injured persons, on-site emergen-cy repair and rescue, and ?re ?ghting.
Emergency drill for environmental accidents
In 2020, the Company carried out
emergency trainings and drills with2,939 participants.
The Company organized all employees to join emergency drills for evacuation and ?re?ghtingCase study
The Company has formulated safety management systems such as theHazard Inspection Management System, Hazard SourcesIdenti?cation and Risk Evaluation Management System, andHazard Sources Management System. It has carried out safety riskidenti?cation and evaluation regarding the whole production process, formulated control and emergency response measuresand established a hierarchical risk control list.The Company has organized various safety inspections to check and manage hid-den dangers.The Safety Production Department of the Company has organized safety personnel to carry out daily safety inspections to iden-tify and rectify potential safety hazards in a timely manner.
Implementation of safety inspections
Safety production inspection
Special safety inspection carried out by the Company
In 2020, the Company carried out
comprehensive safety inspections.
Special inspectionfor limited space
Special inspection on the safety ofprecursor/explosive chemicals
Special electricalsafety inspection
Safety inspection ledby General Manager
Special inspection onmagnetic mud safety
Pre-holiday safetyinspection
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
The Company pays close attention to the safety of contractors and their employees. It has formulated theContractor Manage-ment SystemandExternal Construction Organization Safety Management System. It has signed safety environment agreementswith contractors to clarify responsibilities and obligations of contractors and reduce potential hazards, so as to ensure thatcontractors comply with the Company's safety management requirements, and to protect the safety of the Company's and con-tractors' employees in a reasonable and standardized manner.
The Company attaches great importance to the occupational health of employees. It has established theOccupational Health andSafety Management Systemand signed theResponsibility Letter for Occupational Disease Prevention and Control Workwith su-perior departments. The Company has carried out numerous practice in occupational hazard detection, strengthening occupationalhealth examination and training , aiming at safeguarding the physical and mental health of employees and protect their rights andinterests.
Contractor safety commitment
Strengthening occupational health management
Arranging management personnel to participate in management training organized by superiordepartments and to obtain relevant occupational health management quali?cationsHiring a third-party quali?ed organization to regularly test occupational hazards at job sites andrelease the resultsOrganizing employees to carry on occupational health examinations before, during and afteremployment, and establishing occupational health monitoring documentationCarrying out regular occupational health publicity and training;Regularly updating the notice boards and warning signs of occupational hazards
Setting up ventilation, dust removal, detoxi?cation, noise reduction and other protective facilities,and carrying out simultaneous design, simultaneous construction, concurrent use for occupationalhealth in new, reconstruction and expansion projects
Developing the standard of labor protection supplies for each position, distributing labor protectionsupplies that comply with national or industry standards to employees, and requiring employees towear and use protection supplies correctly
Occupational health management
As of December 2020, a total of1,020new employees exposed to occupational hazards have hadphysical examinations, all the examinations have been completed and reports issued;
1,347employees have had on-the-job occupational health examinations, and reports have beencompleted.
Occupational hazard detection
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Supplier preliminarysurvey and capabilityevaluation
Supplier deliveryperformanceevaluation standardsUpgrading andmanagement of under-performing suppliersSupplier quali?cationevaluation
Supplier Chain Management Procedure
Annual ?eld review
Supplier sample andPPAP evaluation
Supply chain management plays a key role in the Company's operation, which matters to the Company's healthy developmentand reputation in the long run.The Company has been committed to building an excellent supply chain. Through signing long-term supply agreements, it has actively conducted cooperation with suppliers and established long-term and friendly cooper-ation relationship with suppliers. The Company has continuously improved its supply chain management to grow together withsuppliers.
Transcending Supply-Demand Relationship& Achieving Win-win Partnership
with China Southern Rare Earth Groupand China Northern Rare Earth GroupSigning and implementing long-termsupply agreements
Establishing a multi-channel rare earth supply chain:
The Company has formulated and kept improving theSuppli-er Management Procedure.It has established a supply chainmanagement department and a quality improvement teamto select qualified suppliers and standardize supplier man-agement. The Company requires suppliers to sign social re-sponsibility commitments, and rewards or punishes suppliersaccording to the delivery performance results. The goal is topromote suppliers to continuously improve their delivery ca-pabilities and management levels, satisfying the Company'sneeds for e?cient and high speed growth.The Company has strengthened supply chain management.Technology, production and purchasing departments haveconducted positive interaction and collaboration with suppli-ers. Under the premise of technical con?dentiality, and withan open mind the Company has invited suppliers to join itssupplier collaborative cost reduction (SCCR) program.
The Company strictly follows the principle of transparentprocurement and honest trade. It requires employees to signthe Anti-corruption and Self-discipline Commitment for Pro-curement to improve their awareness of integrity and self-dis-cipline. Meanwhile, it has signed transparent procurementagreements with suppliers, and required suppliers to sign theSupplier Anti-bribery Commitment, aiming to eliminate risksfrom the source, promote the healthy and orderly develop-ment of the Company and its business partners, and create apositive business environment.
Reinforcing SupplierManagement
Sticking to TransparentProcurement
The Company has actively participated in industrial meetings to promote exchanges, discussions and cooperation with itspeers. The Company goes beyond competition and seeks future development possibilities together with the entire industrialsector.
Transcending Competition andAchieving Industrial Progress
The Company participated in the 2020 Annual Academic Conference of The Chinese Society of Rare Earths and Jiangxi (Ganzhou) RareEarth Resources Green Development and E?cient Utilization Conference held in Ganzhou from October 19 to 21, 2020.The conference featured 15 academic exchange sessions, including the development of rare earth resources, rare earth magneticmaterials and applications, rare earth biomedicine, rare earth environmental economics and industrial policies. Meanwhile, the 2020Academician Visit of The Chinese Society of Rare Earths, Seminar of High-Quality Development of Rare Earth Permanent Magnet Mo-tor and Rare Earth Sci-tech Achievements Promotion Meetings were held simultaneously.Academicians, experts and business repre-sentatives from the rare earth industry gathered at Ganzhou to discuss the development of the rare earth industry and promote thehigh-quality development of the rare earth industry in Ganzhou.
2020 Annual Academic Conference of The Chinese Society of Rare Earths and Jiangxi(Ganzhou) Rare Earth Resources Green Development and Efficient Utilization ConferenceCase study
The Company participated in the 2020 Annual Academic Conference of The Chinese Society of Rare Earthsand Jiangxi (Ganzhou) Rare Earth Resources Green Development and E?cient Utilization Conference
On December 23rd , 2020, the Company participated in the "Study on the Strategic Consideration and Planning of Promoting theComprehensive Implementation of Innovation-Driven Development in the Rare Earth Industry of Ganzhou" and Seminar on the Over-all Development of Rare Earth Resources and Applications in Ganzhou, Jiangxi Province.The event focused on promoting key point of the development of Ganzhou's rare earth industry, contributed scienti?c planning solu-tions to the industry, and proposed the basic ideas, basic principles and development goals for Ganzhou's rare earth industry duringthe "14th Five-Year Plan".The aim was to promote the in-depth implementation of the national rare earth industry developmentstrategy in Ganzhou, ensure the relevance and continuity of policies, and align policies with the development needs of the rare earthindustry.
"Study on the Strategic Consideration and Planning of Promoting the ComprehensiveImplementation of Innovation-Driven Development in the Rare Earth Industry of Ganzhou"and Seminar on the Overall Development of Rare Earth Resources and ApplicationsCase study
Anti-corruption and Self-discipline Commitment forProcurement
Supplier Anti-briberyCommitment
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
JL MAG has been committed to building an ecological andharmonious society, persists in promoting ecological developmentand building a resource-saving and environment-friendly enterprise. Ithas been actively involved in public welfare and ful?lled CSR missions.The Company believes in giving back to the world and creating asocial environment full of warmth and hope.
Giving Back tothe World
Our actions：
Our performance ：
Persisting in environmental governance, improving Three Wastes (waste gas,waste water and waste residues) management, energy conservation andemission reduction.
In 2020, the Company spent approximately RMB
8.18
million yuan onenvironment protection, and treated
0.22
million
tons of waste water;number of major environmental pollution accidents was
, and the timely.disposal rate of hazardous waste was100%; the electricity and waterconsumption per product unit decreased by
4.27%
and
19.09%
respectively compared with that of 2019.
In 2020, the Company donated anti-epidemic and poverty alleviation fundsand materials worth RMB
1.21
million yuan.
In 2020, proportion of employees from former key cities or counties included inthe national plan for poverty alleviation through development was58%.
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
“
”
The beginning of 2020 witnessed the sudden outbreak of COVID-19. JL Mag maintained its strength and was closely associated withall sectors of society. It actively helped to ?ght the epidemic situation, ensured its safe resumption of work and production, andexerts its strength to help economy and society stabilization. Since the outbreak of COVID-19, the company has paid high attentionto the progress of the epidemic. While actively carrying out epidemic prevention and control measures, it has ful?lled the socialresponsibility of listed companies, shouldering burdens for the government and solving di?culties for the people, devoting a solidcontribution to the ?ght against COVID-19.
Anti-epidemic e?orts
Epidemic prevention and control mechanismof JL MAG
Donation: Making donation topurchase protective appliance formedical workers on the front line ofepidemic preventionSupply collaboration: share materi-
als and assist stakeholders includingsuppliers and customers to ?ght theepidemic
Efficient organization:Efficientorganization:set up the epidemic
prevention and control leading groupat the ?rst timeSpecial management: formulating
and issuing a series of documents onthe prevention of COVID-19 epidemiccontingency plan, JL MAG epidemicprevention and control manual, etc.Resource Scheduling: activelymobilizing resources and makingcomprehensive arrangements for epi-demic prevention and controlInformation sharing: quickly estab-lishing a contact group, uploadingand issuing epidemic information andthe company's policy of productionand work resumptionProtect the grassroots: stabilizing
the staff and making every effort toensure their health and safety
Requirements Implementation:
responding to the requirements ofthe notice on the implementation ofenterprise work resumption reportingsystem andthe scheme for industrialenterprise work resumption and epi-demic prevention and control in Gan-zhou Economic Development Zoneissued by the municipal epidemicprevention and control headquartersto ensure securing the bottom lineRapid communication: obtainingthe reply onApproving the resump-tion of industrial enterprises toensuree?ective complianceIssued announcement: " JL MAG'sAnnunciations on Donations toSupport the Fight against COVID-19"stabilizing the confidence of stake-holders including investors
Compliance with regulatoryrequirements to ensureresumption of work andproduction
Maintain internal concentrationto ensure safety and stability
Continue to participate in theepidemic prevention and control
Public WelfareThe Company has been actively involved in social welfare, striving to repay society. It has worked hard in COVID-19 epidemic pre-vention and control and contribute to poverty alleviation causes. The Company has insisted on providing education support andearnestly ful?lled its social responsibilities as a listed company.
"This donation gives us not only materialsupport, but also spiritual encouragement. Weare not fighting alone. With a caring enterpriselike JL MAG and caring people behind us, we arebound to win this white war! "
Comments from stakeholders:
Hu Zhixin, director of thepresident's office of theFirst Affiliated Hospital ofGannan Medical College
”
The Company donated RMB 1.00million yuan to support the pre-vention and control of COVID-19in Ganzhou. In February 2020, theCompany was granted a donationcertificate by the Ganzhou RedCross Fraternity Foundation.
The Company donated 2.80thousand medical masks toGanzhou Red Cross Society tohelp carry out epidemic preven-tion and control work. In Feb-ruary 2020, the Company wasgranted a donation certi?cate bythe Ganzhou Red Cross FraternityFoundation.Timely resumption of work and production, devoting contribution tosocial and economic development during the epidemic
Recovered best capacity by the end ofFebruary 2020, ensuring the produc-tion of downstream enterprises andcontributing to the stable operation ofeconomy
Contribution to social stability
Contribution to the stabledevelopment of economy
0:
Zero outbreak and zero infectioninside the Enterprise1:
Took effective measures to re-sume work on February 12, 2020, andbecame the first batch of local enter-prises to resume work and production2:
Two consecutive rounds of dona-tions, funds and supplies totaled RMB
1.212 million yuan
3:
Provided approximately 449,500masks for the company's stakeholders,including domestic and foreign em-ployees, domestic and foreign custom-ers and suppliers
Donation of anti-epidemic and poverty alleviation funds and anti-epidemic materials totaled
1.21
million RMB
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
"JL MAG Scholarship" Signing Ceremony at Tongji University"JL MAG Scholarship" Signing Ceremony at Tsinghua University
The Company makes full use of government policies to create jobs by setting up poverty alleviation workshops.In 2020, employeesfrom the key counties and cities of national poverty alleviation and development work accounted for 58.00% of the total sta?. Inaddition, the Company's molding workshop was recognized as an employment-based poverty alleviation workshop by the HumanResources and Social Security Department of Ganzhou Economic Development Zone.
Poverty alleviation
In 2020, the Company donated poverty alleviation funds and materials worth RMB
1.21
million yuanIn 2020, the company's employees from the former key counties and cities of national poverty alleviation anddevelopment work account for58%of the total sta?.
Employees in poverty alleviation workshop
The Company has established the "JL MAG Scholarship" to encourage outstanding students to make contributions to the nation.In 2020, the Company donated a total of RMB 420,000 yuan to award 86 college students in Tsinghua University, Tongji University,Nanchang Hangkong University, Nanchang University, Jiangxi University of Science and Technology, Harbin Institute of Technol-ogy, University of Science and Technology Beijing, and Shenyang University of Technology. Since its establishment, the "JL MAGScholarship" has funded more than 600 outstanding college students.
Education support
"JL MAG Scholarship" Awarding Ceremony at Jiangxi University of Science and Technology
5758
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
Nature Protection and Ecological DevelopmentNatural ecology protection is the foundation and prerequisite of enterprise development.The Company has implemented scienti?cenvironmental governance and energy-saving and emission reduction measures. It has actively facilitated ecological and environ-mental protection, and supported the harmonious development of ecology and cities.
Committing to the policy of "law-abiding, risk prevention, continuous improvement and win-win" , the Company has worked hardto improve its environmental management systems. The Company has merged the previous Environmental Protection Departmentand the Power Equipment Department into the new Environmental Protection and Power Equipment Department. The e?ort is tocomprehensively coordinate the Company's energy conservation, emission reduction, equipment management, and power supplyand to promote the implementation of environmental governance systematically.
The Company has applied lye spray methodand wet dust collection process to treat wastegas generated in the smelting and sinteringprocesses to meet the emission standards.
Managing the hazardous waste disposalprocess in the Company and reducing thenegative impact on the environment.
Guiding sewage treatment and providingtechnical support .
Environmental governance
Effectively monitoring and controlling wastegas in all areas and all waste gas generatingequipments to reduce environmental pollu-tion and human healthy hazard.
Gas Emission Management Procedures
Standardizing the rainwater dischargemanagement and emergency treatment,strictly separating rainwater from sewage,and preventing other pollutants fromentering the rainwater pipe network.
Rainwater Management System
E?ectively monitoring and controlling noise,reducing noise induced hearing damageand potential accidents, preventing noisepollution and protecting the health ofemployees.
Noise Management Procedures
Normalizing the discharge of sewage suchas rainwater, process wastewater, anddomestic sewage in the Company to reduceenvironmental pollution.
Water Pollution Management Procedures
Operation Guide for WasteGas Treatment Tower
Waste Management Procedures
Operation Procedures for SewageTreatment
The organization structure of the Environmental Protection and Power Equipment Department
The Company has obtained the Environmental Management System (ISO 14001) Certi?cate granted by SGS
Power Team
EnvironmentalProtection andPower EquipmentDepartment
Environmen-tal ProtectionDivision
WastewaterTreatmentStationBench WorkerTeamElectricianTeam
TPM Team
EquipmentDivision
O?ce
5960
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
。
The Company has set up a specialized system for wastewater, waste gas and solid waste treatment. It has purchased specialized waste-water treatment equipment, built supporting facilities, and assembled a quali?ed environmental protection team.The Company has alsoformulated the Management Regulations for the Treatment of Production Waste to recycle valuable production waste, ensuring materi-als of value being stored separately and bringing in every single grain.
Three Wastes Management
Wastewater includes production wastewater, domestic wastewater, and ground ?ushing water.
Solid waste is mainly divided into common industrial solid waste, hazardous waste and household garbage
Waste gas includes vacuum exhaust gas generated by smelting, sintering and hydrogendecrepitation, pre-treatment drying exhaust gas and canteen oil fume
Noise mainly comes from high-power fan, motor, air hammer, grinder and other mechanicalequipment and high frequency noise from ultrasonic cleaning.The Company adopts frequency conversion, sound insulation, vibration reduction, reasonablefactory planning and increasing greening to reduce the impact of noise on the surroundingenvironment.
All waste water is collected according to the principle of "separation of clean water from sewage;rainwater from sewage".
The production wastewater has been treated through the process of PH adjustment + coagulating sedimentation+ hydrolysis acidi?cation + biological contact oxidation + sand ?ltering before being standardized discharged intothe sewage pipe network.The ground ?ushing water has been treated through the process of grating + oil removal + sedimentation beforebeing discharged into the sewage pipe network.Domestic wastewater has been treated by the integrated domestic wastewater treatment facility before beingdischarged.
Common industrial solid waste classi?cation and collection strictly follows the 3R (reuse, recycle, reduce) principle,minimizing generating volume and processing with recycling and circulation method.Hazardous waste, after being classi?ed and collected, shall be temporarily stored in the hazardous waste storage areaand treated by quali?ed hazardous waste disposers.The household garbage, after being collected, shall be handed over to the sanitation department for regular disposal.
The main pollutants in exhaust gas from smelting, sintering, and pre-treatment drying tunnel are dust and VOCs,which are collected and discharged through a chimney with a height of 15m after undergoing the process of dustremoval + photo-oxidation catalytic treatment.The vacuum exhaust gas from hydrogen decrepitation is ?ltered by the equipment dust ?lter and then dischargedthrough a chimney with a height of not less than 15m.Canteen oil fume is discharged through a chimney with a height of not less than 15m after being processed by a multi-stage high-voltage electrostatic ?eld oil fume puri?er.
Wastewater treatment
Solid waste treatment
Waste gas treatment
Noise treatment
The Company has formulated theHazardous Waste Management System,which describes in detail the identi?cation, collection,storage and delivery, and marking of hazardous waste so as to standardize the hazardous waste management and optimize thedisposal process.
While paying attention to its own hazardous waste management, the Company is also concerned about the disposal of hazardouswaste along the supply chain. The Company has inspected the hazardous waste disposal of suppliers to ensure that suppliers treathazardous waste according to requirements and speci?cations.
Classi?ed storage and identi?cationPartitioned management based on characteristics of hazardous waste.Setting up hazardous waste logos and warning signs that meet environmental protection standards in front of thehazardous waste warehouse.Signing hazardous waste disposal contracts with quali?ed hazardous waste disposers at the end of each year, andhanding over hazardous waste to quali?ed companies for disposal.
The Company has de?ned 10 categories of hazardous waste, and made due arrangements in the hazardous wastewarehouse according to the characteristics of each waste:
The Company's integrated wastewater treatment facility
The Company has commissioned Tongji University to design an integrated wastewater treatment facility, which treats process wastewa-ter with mature and advanced technology and the membrane material developed by Tongji University.
Hazardous waste disposal
Hazardous waste regulations for suppliers
In 2020, the number of major environmental pollution accidents in the Company was
, and the timelydisposal rate of hazardous waste was100%.
Treatment of process wastewaterCase study
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JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
The Company has formulated theManagement Regulations for Production Waste Disposal to realize the recycling and utilization ofvaluable production waste through standardized and scienti?c processes.
each production section has classi-?ed waste into metal, plastic, wood,iron drums, hazardous chemicalspackaging and paper, and placedeach waste at a separate and desig-
nated location
Before dumping waste materials(with no recycling value) into thegarbage dump, team leader/sec-tion leader/manager shall sign the
Valueless Waste Disposal Certi?cate
and hand over the certificate tothe security inspection personnel.Administrative Department shallcollect and record the certificates
every day
Waste to be dumped into the gar-bage dump must be inspected bythe security personnel with metaldetectors to confirm that there isno metal substances
Waste disposal
Waste sorting and storage
Accountability of eachproduction section
Thorough detection
Waste collection process and requirementsThe Company has formulated a standardized emergency plan to de?ne the emergency response process and structure. Meanwhile,it has carried out comprehensive environmental emergency drills to improve employees' ability and awareness of self-preventionand self-rescue.
Environmental emergency management
The Company organized emergency drills for environmental accidents
On December 1, 2020, the Company conducted an environmental accident emergency drill at the wastewater treatment station.Throughemergency drills, the Company intended to improve its ability to respond and organize rescues in the event of chemical spills, and tocheck the e?ciency and e?ectiveness of the on-site emergency command system, as well as of on-site cleanup after the accident in caseof the following situations: the leakage of hazardous chemicals in the proposed area, accident alarms, the activation of emergency rescuesystems, the assembly of rescuers, on-site vigilance and evacuation, rescue of injured persons, on-site emergency repair and rescue, and?re ?ghting.
Emergency drill for environmental accidentsCase study
The Company has formulated theGreenhouse Gas Control Proceduresto standardize the greenhouse gas management in linewith the requirements of the ISO14064-1 standard.The Company's greenhouse gas mainly comes from the electrical equipment inthe factory. Therefore, the Company has implemented innovative and comprehensive energy management activities to optimizeprocesses, reduce energy consumption, adopt energy-saving equipment, use electricity e?ciently, and reduce electricity cost. TheCompany has actively participated in the sales of electricity advocated by the state, and strictly controlled the waste of nitrogenand argon.
The Company advocates a green and low-carbon working environment. It devotes to promote green o?ce, create a green andcomfortable working environment, and enhance employees' awareness of environmental protection.
Hazardous waste collectionbins are placed on each?oorelectronic approval, elec-tronic work instructions andother documents
double-sided printing; paperrecycling
Electronico?ce
Greenhouse gas management
Green o?ce
The Company actively participates in the energy conservation and emission reduction action. It has formulated the Energy Re-source Management Procedures to guide the management of the Company's internal resources and energy, realizing the e?ectiveuse of resources and energy conservation.Energy conservation and emission reduction
Green o?ce actions
Recyclingequipment ino?ce
Paper use
Compared with 2019, the power consumption and water consumption per unit product of the companydecreased by 4.27% and
19.09%
respectively.
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
OutlookIn 2020, General Secretary Xi Jinping made a solemn promise to the international community about emis-sion peak and carbon neutrality and put forward speci?c goals at the Climate Ambition Summit.In 2021, theOutline of the 14th Five-Year Plan (2021-2025) for National Economic and Social Developmentand the Long-Range Objectives Through the Year 2035 was adopted by the Fourth Session of the 13th Na-tional People’s Congress. The outline proposes to improve the core competitiveness of the manufacturingindustry and promote breakthroughs in high-end rare earth functional materials; vigorously boost the scaleof wind power, orderly develop o?shore wind power, and increase the proportion of non-fossil energy intotal energy consumption to about 20%; and focus on strategic emerging industries such as electric, newmaterials, high-end equipment, electric vehicles, and environmental protection.As a core component supplier in the sector of electric and energy conservation and environmental protec-tion, JL MAG will take concrete actions to help China realize "carbon neutrality" and "implement manufactur-ing power strategy and build a modern energy system" detailed in the "14th Five-Year Plan". While continuingto focus on epidemic prevention and implement normalized epidemic prevention and control, the Companywill work hard to carry out safety production and environmental protection, and strictly obey various lawsand regulations and rules for listed company issued by Shenzhen Stock Exchange. The Company is ready toful?ll its responsibilities to various stakeholders including shareholders, investors, communities and environ-ment.Planning strategy and leading development: The Company has continued to grow in recent years withcompound annual growth rate of operating income reaching 38.41% from 2017 to 2020.To meet market demandsas well as the needs of "emission peak" and "carbon neutrality" causes, the Company has formulated a 2021-2025development plan: It is expected that the Company will have a production capacity of 23,000 tons of high-perfor-mance rare earth permanent magnet materials by 2022. On this basis, it commits resources to build productionbases in Ganzhou, Baotou, and Ningbo. It is expected that the Company will have a total production capacity of40,000 tons of high-performance rare earth permanent magnet materials by 2025.Focusing on the main business and operating steadily: the Company will focus on the R&D, production andsales of high-performance NdFeB permanent magnet materials, and maintain leading advantage in electricvehicles and auto parts, energy-saving variable frequency air conditioners, wind power, energy-saving ele-vators, robotics and intelligent manufacturing. In addition, the Company will actively explore the 3C and railtransit market, optimize product structure and customer structure, and reduce operating risks. At the sametime, the Company will continue to increase investment in technology R&D, further implement lean manage-ment, and comprehensively enhance its pro?tability and industry position.Working together with employees for win-win development: The Company regards talents as its most valu-
able assets. It attracts talents with vision, promotes talents based on performance, and retains talents withcareer opportunities.The Company will further improve the incentive mechanism including stock ownershipincentive to motivate employees.Empowering employees through training and tapping into the potential oftalents.Striving to expand the company platform to provide more career development opportunities for em-ployees who are prepared and accountable. Advocating teamwork and cooperation, assessing employeesbased on performance, and encouraging value creators.Since its establishment 13 years ago, the Company has been committed to the mission of "creating a betterlife with rare earths". It advocates the unity of knowledge and action in accordance with core values, andimplements a profit distribution and incentive mechanism featuring "building the platform together andsharing the bene?ts together". In 2021, the Company will use value creation as the starting point and objec-tive to guide the operation and management work, lead all employees to forge ahead, advance towards theforefront of the industry, strive to enhance its competitiveness as a listed company, and work hard to repayinvestors and society with outstanding performance.
About This ReportMessage from the ChairmanAbout JL MAG
Achieving 30/60 Goal and Creating a Wonderful Life
Integrity andSustainableOperation
DevelopmentthroughInnovation
Transcendenceand Win-win
Giving Back tothe WorldBenchmarkIndicatorsReaderFeedback
Sound GovernanceParty BuildingRisks and ComplianceInvestor RelationsTechnologicalInnovation andGreen ProductionQuality Innovation andStrict Quality ControlCapability Innovationand Lean ProductionService Innovation andCustomer PerceptionEmployees andCollaborationTranscending Supply-Demand Relationship& Achieving Win-winPartnershipTranscendingCompetition andAchieving IndustrialProgressNature Protection andEcological DevelopmentPublic Welfare
401-2/401-3/403-4/404-1
301-3/302-4/305-1/306-3/306-4/307-1102-55
102-53
302-5
102-30
ResponsibleGovernance
101/102-45/102-46/102-48/102-49/102-50/102-51/102-52/102-54102-14/102-15/102-23102-1/102-2/102-5/102-6/102-7301/302/305102-18/102-22
102-16/102-17/102-21/102-29/102-34/102-40/102-44/102-47
Benchmark IndicatorsContent of the ReportGRI
6566
JL MAG 2020 CSR REPORTSOCIAL RESPONSIBILITY REPORT
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Mailing address:：81 Jinling West Road, Ganzhou economic and Technological DevelopmentZone, Jiangxi ProvinceZip code: 341000
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3. Do you have any suggestions for our future CSR reports?
Reader FeedbackThis report is the second CSR report released by JL MAG. To continuously improve our CSR managementwork, and improve our ability to ful?ll social responsibilities, we look forward to hearing your opinions andsuggestions. We sincerely ask you to complete the following questions and feedback to us as instructed.Multiple-choice questions (please tick the box)
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