Devoted to tools innovation,
creating the better life.
About Keystone Electrical
Eco-?rst—Leading the Way to a Green Future
Prudent Operations—Strengthening the Foundation for Development
Continuous Innovation—Pursuing Excellence in Quality
0103
0204
Company OverviewMilestones in 2023Moments of GloryThe Pathway to Sustainable Development
Strengthening Environmental ManagementReducing Three-waste EmissionsOptimizing Resource ConservationPreventing Environmental Hazards
Solidifying corporate governanceProtecting Investors' Rights and InterestsInternal Control and Risk ManagementStrict Adherence to Business Ethics
Driving Innovative DevelopmentImposing Rigorous Control on Product QualityRegulating Supply Chain ManagementValuing Customer ServiceProtecting Data Security
Intelligent Talent Development—Building the Dream of Talent Together
Creating a Win-Win Situation Together—Practicing Social Mission
Equal Employment and RetentionEmployee Training and DevelopmentEmployee Rights and Bene?tsOccupational Health and Safety
Leading Industry ExchangesRevitalization of Rural Development
CONTENTS
About This ReportA Message from the Chairman
Performance in 2023Index of IndicatorsReader Feedback
Opening
Conclusion
This is the first Environmental, Social, and Governance (ESG) Report published by Zhejiang Keystone ElectricalCo., Ltd. This Report discloses the Company's development practices and major achievements in economical,environmental, social, and corporate governance responsibilities for the year 2023 in an attempt to communicatee?ectively with various stakeholders and systematically respond to stakeholder expectations and requirements.
About This Report
Time FrameThe Report covers the period from January 1, 2023, to December 31, 2023. To enhance the comparability andperspectiveness of the Report, some content appropriately refers to previous and subsequent years.Scope of ReportThe Report discloses information and typical cases of Zhejiang Keystone Electrical Co., Ltd. and its direct subsidiariesin the ful?llment of economic, environmental, social and corporate governance responsibilities.
Appellations in the ReportZhejiang Keystone Electrical Co., Ltd. ("Keystone Electrical", "The Company" or "We")Data Source
The information disclosed in this Report has been obtained from the o?cial internal documents, statistical reportsand annual reports of Keystone Electrical.The data in this Report comes from the raw data of the Company's actual operation, public data from governmentdepartments, annual ?nancial data, relevant internal statistical reports, third-party questionnaires and third-partyevaluation interviews. The ?nancial data in this Report is in RMB. In case of any inconsistency between this Reportand the Financial Report, the Financial Report shall prevail
Basis for CompilationUN Sustainable Development Goals (SDGs) 2030GRI StandardsChinese Academy of Social Sciences (CASS) Guidelines on Corporate Social Responsibility Reporting for ChineseEnterprises (CASS-ESG 5.0)Chinese National Standard Guidelines on Social Responsibility Reporting (GB/T36001-2015)International Organization for Standardization ISO 26000: Guidance on Social Responsibility (2010)Shenzhen Stock Exchange Self-disciplinary Supervision Guidelines for Listed Companies No. 2—StandardizedOperation of Listed Companies on GEM BoardReport Acquisition
This Report is published in electronic format and can be accessed on the Company's official website (https://cn.keystone-electrical.com/) or Shenzhen Stock Exchange website (http://www.szse.cn). If you have any questions orsuggestions about this Report, please email to board@keystone-electrical.com or call 0579-89163684.
Environmental, Social and Governance （ESG）Report
A Message from the Chairman
As a national enterprise, we share the same breath and fate with the country this year. This year, we adhere to thereform ideas, forge ahead to brave the tide and ride the waves, and successfully step into the capital market bylisting on the Shenzhen Stock Exchange GME Board. The Company has thus pressed the Forward Key to embrace anacceleration and embark on a new journey.We focus on seeking breakthroughs in our main business and accelerating the new pace of high-quality development.This year, we enjoy the R&D result highlights brought by accelerated launches of new products and new projects; thisyear, the Company takes the ?rst step of overseas investment by building an overseas factory in Vietnam; this year,we open a new chapter in school-enterprise cooperation and the cooperation with Kunshan Innovation ResearchInstitute, Xidian University will surely inject new vigor and vitality into the future of the Company.We grow together with a humanistic approach and build sustainable development goals together. We practiceharmony, diversity and inclusiveness to provide fair and reasonable employment opportunities for the community.We continue to improve the sta? training and development management system, and provide all-round support forthe growth of employees; we advocate the value of contribution for returns, build the "technology + management"dual promotion channel, and achieve a win-win situation for employees and the Company.We are committed to becoming a first-class company that earns customers' satisfaction, societal respect, andemployee's happiness., working with customers and suppliers to achieve a win-win situation, and sharing the fruitsof development with employees and investors. We always hold ourselves to the highest standards of business ethics,establish a complete governance structure to maximize internal energy e?ciency, and strengthen risk prevention tomaintain e?cient and stable operations.The dragon rides the wind for miles and miles. The year 2024 is a critical year for the Company as it moves into rapidgrowth. All members of Keystone Electrical will stay true to its founding mission, keep con?dent, and contribute theirwisdom and strength to China's economic and social development by seeking new opportunities and opening upnew horizons amidst the changing circumstances with high morale!
Zhejiang Keystone Electrical Co., Ltd.
Chairman：Wu Ning
April 2024
Environmental, Social and Governance （ESG）Report
Zhejiang Keystone Electrical Co., Ltd. was founded in2015 with the registered capital of RMB 80 million. TheCompany is committed to the research and development,production, sales and related technical services of hand-held power tools, and has set up wholly-owned/controlledsubsidiaries in Jinhua, Hangzhou, Shenzhen, Kunshanand Vietnam. Shenzhen and Hangzhou subsidiaries aremainly engaged in cross-border e-commerce operationsand promotion of their own brands, and Kunshansubsidiary is the R&D sub-center for cooperation withinstitutions of higher learning. In June 2023, the Companywas successfully listed on the GEM Board of the ShenzhenStock Exchange under stock code 301448.
AboutKeystone Electrical
Mission
Devoted to tools innovation, creating the betterlife.VisionTo be a ?rst-class company that earns customers'satisfaction, societal respect, and employee'shappiness.Core ValuesIntegrity, Pragmatism, Striving, Innovation, Win-Win.
Corporate Culture
Environmental, Social and Governance （ESG）Report
Company OverviewThe Company's products can be divided into two categories—AC power tools and DC power tools. T rich productsystem covers electric circular saws, multifunction saws, reciprocating saws, angle grinders, polishers, impact drills,electric wrenches, etc. The Company fully participates in the global market competition. We have established long-term and stable relationships with such customers as BOSCH in Germany, Stanley Black & Decker and Harbor FreightTools in the United States, Groupe Adeo in France and other internationally renowned brands of power tools andchain building materials supermarkets.
The Company attaches great importance to the continuous innovation of products and core technologies. Its strongR&D and innovation strength can be evidenced by a large number of patents, software copyright and honorary titles.The Company had been awarded 159 patents and 1 software copyright as of December 31, 2023. The Companyhas won more than 50 honors, including National Specialized, Re?ned, Di?erential and Innovative “Little Giant”Enterprise, National Advantageous Intellectual Property Enterprise, Zhejiang Provincial Enterprise ResearchInstitute, Enterprise Technology Center of Zhejiang Province, Intellectual Property Demonstration Enterprise ofZhejiang Province, Third Batch of "Cloud Enterprises" in Manufacturing Industry of Zhejiang Province, Ninth Batchof Demonstration Enterprises for Big Data Application of Zhejiang Province, Digitalization Pioneer Enterprise ofZhejiang Province, and Quality Award of Jinhua Municipal People's Government.Market Layout of Keystone Electrical
Environmental, Social and Governance （ESG）Report
Milestones in 2023
Chen Peng, Chairman of Nanchang Transportation
Institute, visited the Company with other leaders.Both sides had an in-depth exchange on school-enterprise cooperation and reached a consensuson matters such as talent cultivation and resourcesharing.
Jinhua Yunchuang Electric Tools Co., Ltd. wasestablished, which meant that the Company'sproduct chain became more complete and couldbetter to satisfy consumer needs.the Company's ?rst BOSCH AC jig saws were put into
production.
March
The Company's project for development of its first
BOSCH AC reciprocating saws was initiated.
The Company held a kick-o? meeting for managementreform, o?cially starting management reform.The Company's project for development of its ?rstBOSCH AC reciprocating saws was initiated.
Mr. Xing Zhihong, then Mayor of Jinhua City, andhis delegation paid a research visit to the Company.They spoke highly of the Company and expressedtheir high expectations for the Company in the NewYear.
Wu Ning, the Chairman of the Company, was electedas a delegate of the 14th Zhejiang Provincial People'sCongress.
January
the Company took part in Eisenwarenmesse in
Germany.
February
Mr. Zhu Mingzhe, Vice President of KunshanInnovation Research Institute, Xidian University,led a team to the Company, and both exchangedviews on their respective advantages and agreed onfollow-up mutual visits.
Allan Mutchnik, as President of HFT, led a team to visitthe Company.
The Company held a kick-o? meeting for managementreform, o?cially starting management reform.
The Company held the 2023 Work Summary and2024 Work Planning Meeting in Jinhua Guzichengwith the theme of "Starting the new journey,habouring the dream to start again".
From January to December, development of severalCPI high-end Hercules DC tools was completed, andpreparations were made for launching these tools.
Keystone Electrical was listed on the GEM Board of
the Shenzhen Stock Exchange (stock code: 301448).
The Company got down to R&D of MPP B seriesproducts on a brand new platform.It was the ?rst time that the Company o?ered thestocks in public, and was listed on the Second-BoardMarket. The online roadshows were performed inPanoramic Roadshow. In answering the investors'questions, Chairman Wu Ning stated that, since itsestablishment, the Company has been focusing ontechnological R&D and innovation; it constantlyupdates and renews each core technology accordingto market research, technological progress anddownstream customer demand, and continuouslydevelops new products while improving thetechnical level and production e?ciency ofexisting products. From 2020 to 2022, the Companydeveloped more than 100 new types of products intotal.
June
AugustOctoberNovemberDecember
Environmental, Social and Governance （ESG）Report
Moments of Glory
网站无障碍关怀版English首页新闻资讯政府信息公开在线办事互动交流党的建设派驻监督> 新闻资讯> 通知公告首页关于浙江省第四批内外贸一体化“领跑者”企业、改革试点产业基地培育名单公示发布日期：2023-02-14 09:13访问次数： 896 信息来源：商贸处根据《浙江省商务厅关于开展第四批内外贸一体化
2023年2月21日，过期不予受理。联系人：邵一为、聂龙电话：13566942772，0571-87051834附件：
附件1：浙江省第四批内外贸一体化“领跑者”企业培育名单.doc 附件2：浙江省第四批内外贸一体化改革试点产业基地培育名单.doc
| 浙江省商务厅 2023年2月14日 打印 关闭上一篇：浙江省商务厅关于公开征集《浙江省鼓励...下一篇：关于专家库拟入库专家名单的公示用户中网站地图主办：浙江省商务厅 网站标识码：3300000070 备案号：浙ICP备05000009号-1地址：浙江省杭州市延安路468号，邮编：310006，电话：0571-87051769 公安机关备案号：浙公网安33010302001019 |
Fourth Batch of Leader Nurturing Enterprises in Domesticand Foreign Trade Integration of Zhejiang Province
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| 国知发运函字〔 |
国家知识产权局关于确定
2023
| 国家知识产权局关于确定 |
复核的国家知识产权示范企业和优势企业的通知
复核的国家知识产权示范企业和优势企业的通知各省
、
| 各省 |
、
、
| 直辖市和计划单列市 |
为深入贯彻落实
《
| 为深入贯彻落实 |
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）》
| 年 | |
《
| 十四五 |
》
，
| 决策部署 |
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| 家知识产权局办公室关于面向企业开展 | ||||
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| （国知办函运字〔 |
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、
| 组织测评 |
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| 由国家知 | ||
| 识产权局审核并公示 |
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| 确定 |
）、
| 家企业为新一批国家知识产权优 | ||
| 势企业 |
（
），
| 名单见附件 |
）、
| 家 | |||||||||
| 国家知识产权优势企业（名单见附件 | |||||||||
| 通过复核的企业一并继续保留国家知识产权示范企业或优势企 | |||||||||
我局将进一步加大政策协同支持力度
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| 我局将进一步加大政策协同支持力度 |
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| 组织企业深入参与 |
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| 年 |
国家知识产权
| 国家知识产权 | 局 |
National Advantageous Intellectual Property Enterprise
Famous Export Brand of Zhejiang Province
Third Batch of "Cloud Enterprises" in Manufacturing
Industry of Zhejiang Province 2023
浙经信云计算〔2023〕265号
浙江省经济和信息化厅关于公布2023年浙江省第三批制造业“云上企业”名单的通知
各市、县（市、区）经信局，有关企业：
根据《浙江省经济和信息化厅关于组织申报浙江省第三批制造业“云上企业”及市县级制造业“云上企业”培育库入库企业的通知》（浙经信云计算〔2023〕170号）文件，为贯彻落实《关于培育发展制造业“云上企业”促进数字化转型的实施意见》（浙数办〔2021〕12号），加快培育我省制造业“云上企业”，助力数字经济创新提质“一号发展工程”，经企业逐级申报、各市推荐、专家评审及公示，遴选出“雅莹集团股份有限公司”等110家企业为浙江省第三批制造业“云上企业”，现予公布。
Ninth Batch of Demonstration Enterprises for Big Data
Application of Zhejiang Province简繁阅读辅助关怀版智能问答工业和信息化部浙江省人民政府浙江政务服务网
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索引号: 002482904/2023-01412发布日期: 2023-12-21
发布机构: 省经信厅公开方式: 主动公开
关于公布浙江省第九批大数据应用示范企业名单的通知
文号：浙经信云计算〔2023〕272号各市、县（市、区）经信局、有关企业：
为进一步落实《浙江省促进大数据发展实施计划》（浙政发〔2016〕6号）文件精神，推进大数据技术、应用和产业创新发展，根据《关于组织申报浙江省第九批大数据应用示范企业的通知》要求，在企业申报和各市经信局初审基础上，我厅对各市推荐的企业进行了审核，并组织专家进行了评审，经社会公示后，择优确定蚂蚁科技集团股份有限公司等40家企业为浙江省第九批大数据应用示范企业，现将名单予以公布，请各地、各有关企业结合实际，认真抓好示范工作。附件：浙江省第九批大数据应用示范企业名单
索引号: 002482904/2023-01412发布日期: 2023-12-21发布机构: 省经信厅公开方式: 主动公开浙江省经济和信息化厅2023年12月20日附件：浙江省第九批大数据应用示范企业名单（40家）序号地市企业名称1杭州蚂蚁科技集团股份有限公司2绍兴浙江舜云互联技术有限公司3宁波吉利汽车集团有限公司4杭州浙江开心果数智科技有限公司5嘉兴浙江东方科脉电子股份有限公司6杭州杭州富阳海康保泰安防技术服务有限公司7杭州杭州玳数科技有限公司8杭州华立科技股份有限公司9杭州杭州叙简科技股份有限公司10杭州杭州凡闻科技有限公司11杭州易联云计算（杭州）有限责任公司12湖州浙江宏丰炉料有限公司13金华浙江白马科技有限公司14杭州浙江百应科技有限公司15宁波浙江野马电池股份有限公司16台州浙江海翔川南药业有限公司17湖州浙江凯迪汽车部件工业有限公司18金华浙江立久佳运动器材有限公司19宁波宁波奥克斯智能科技股份有限公司20温州浙江苍南仪表集团股份有限公司21宁波宁波通商银行股份有限公司22台州浙江文信机电制造有限公司
用户中
| 浙江省经济和信息化厅2023年12月20日附件：浙江省第九批大数据应用示范企业名单（40家）序号地市企业名称1杭州蚂蚁科技集团股份有限公司2绍兴浙江舜云互联技术有限公司3宁波吉利汽车集团有限公司4杭州浙江开心果数智科技有限公司5嘉兴浙江东方科脉电子股份有限公司6杭州杭州富阳海康保泰安防技术服务有限公司7杭州杭州玳数科技有限公司8杭州华立科技股份有限公司9杭州杭州叙简科技股份有限公司10杭州杭州凡闻科技有限公司11杭州易联云计算（杭州）有限责任公司12湖州浙江宏丰炉料有限公司13金华浙江白马科技有限公司14杭州浙江百应科技有限公司15宁波浙江野马电池股份有限公司16台州浙江海翔川南药业有限公司17湖州浙江凯迪汽车部件工业有限公司18金华浙江立久佳运动器材有限公司19宁波宁波奥克斯智能科技股份有限公司20温州浙江苍南仪表集团股份有限公司21宁波宁波通商银行股份有限公司22台州浙江文信机电制造有限公司用户中 |
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组织机构新闻动态政务公开政务服务政企互动热点专题经信数据
印发时间：2023-12-20 浏览次数：781
Digitalization Pioneer Enterprise of Zhejiang Province
2023
Listed Companies of Jinhua City 2023
Top 10 Industrial Companies of the Year 2023
Enterprise with Self-operated Export Exceeding USD 10
Million in 2023
National LevelProvincial Level
Municipal Level
District Level
District Level
Provincial Level
Provincial Level
Provincial Level
Provincial Level
1112
Environmental, Social and Governance （ESG）Report
The Pathway to Sustainable Development
Keystone Electrical has established a corporate social responsibility (CSR) management system in accordance withthe ISO 45001: 2018 Occupational Health and Safety Management System and the Business Social ComplianceInitiative (BSCI). The Company has appointed the Deputy General Manager as the managerial representative of theCompany's CSR management system to work with various departments to systematically manage aspects such aslabor rights and interests, occupational health and safety, environmental protection and supplier management. Thegoals are to continually improve the working and living environment of the employees, e?ectively safeguard theirbasic rights and interests, and ful?ll CSR. Furthermore, the Company carries out a review on the system at least oncea year to evaluate the adequacy, appropriateness and effectiveness of the ISO 45001: 2018 Occupational Healthand Safety Management System, rectify the aspects that do not meet the requirements and continuously track thee?ectiveness of the modi?cations.
Note:●means that the position has management functions for the job responsibilities;▲means that the position has executive functions for the job responsibilities.
Social Responsibility Management System
Social Responsibility Policy of Keystone Electrical
Table of Functional Distribution of Social Responsibility System
Headline
GeneralManager
ManagementRepresentative
Administration
and FinanceDepartment
Warehouse
WorkerRepresentative
Workshop
WorkerA?airsGroup/EHSDirectorGuidelines on ChildLabor
●●●▲▲▲▲Guidelines on ForcedLabor
●●▲▲●▲▲Health and SafetyGuidelines
●●▲▲●▲●Freedom to OrganizeTrade Unions andCollectives Guidelineson the Right toNegotiate
▲▲▲▲●▲▲Guidelines onDiscrimination
●▲▲▲●▲▲Guidelines on PunitiveMeasures
▲▲▲▲●▲▲Guidelines on WorkingHours
▲▲▲▲▲▲▲Guidelines on Wage andRemuneration
●●Guidelines onManagement Systems
●●Policies
●▲
Management Review
●▲
CompanyRepresentatives
●▲
Planning andImplementation
▲▲▲▲▲Regulation on Suppliers●Addressing Concernsand Taking CorrectiveActions
●▲▲▲▲▲ExternalCommunication
▲▲Veri?cation Pipelines▲●▲▲▲▲▲Records▲▲▲▲▲▲▲
Comply with laws and regulations,protect the interests of employees,and build a green and harmonious home.
1314
Environmental, Social and Governance （ESG）Report
Based on the GRI Standards and the Chinese Academy of Social Sciences Guidelines on Corporate SocialResponsibility Reporting for Chinese Enterprises (CASS-ESG 5.0), and in combination with the annual hot topics,national policies and industry trends as well as the actual development of the company, Keystone Electrical hassorted out and identi?ed 22 material issues that have a great impact on the Company and its stakeholders. This laysthe direction and foundation for the Company's sustainable development system.
Material Issue Analysis
Analysis Process of Material Issues
· The issues are identi?edand selected based on ?vedimensions: internationalmacro policy orientation,research on domesticand international socialresponsibility standards,industry benchmarking,stakeholder interviewsand research, and strategiccorporate developmentplanning.
· Communication with internaland external stakeholdersinvolves directors andsupervisors, other employeesof the Company, shareholders/investors, customer companies,vendors/service providers,government regulators, etc.
· Based on the results ofstakeholder research andin combination with expertanalysis, the material issuesare adjusted, the importanceranking of material issues isdetermined and a matrix ofmaterial issues is formed,and issues of concern tostakeholders are responded inthe Report.
Issue Identi?cation and
Screening
Stakeholder Survey
Comprehensive Analysis of
Results
Matrix of material issues
Signi?cance for stakeholders
Signi?cance for the CompanyHigh
High
Environmental
1.Greenhouse gas emissions
2.Treatment of three wastes
3.Reduction of energy consumption
4.Design of green products
5. Management of hazardous wastes
and chemicals
6.Green o?ce
Social
7. Strengthening supply chain
management
8. Product quality and
maintenance services
9.Customer relations management
10. Intelligent and technological
innovation
11.Occupational health and safety
12. Employee diversity and equal
opportunity
13. Employee bene?ts and
protection of rights andinterests
14. Employee development and
training
15. Social welfare and rural
revitalization
16. Promoting industry
development
17.Community relations
Governance
18. Improving corporate
governance
19. Business ethics and anti-
corruption initiatives
20. Strengthening compliance
operations
21. Protection of intellectual
property rights
22.Privacy and data security
1516
Environmental, Social and Governance （ESG）Report
Based on the industry and operational characteristics, Keystone Electrical has identi?ed such major stakeholdersas shareholders and directors, supervisors and senior leaders, other employees of the Company, shareholders/investors, customer companies, vendors/service providers, government and regulatory agencies and theenvironment. The Company has established a regular communication mechanism with stakeholders, communicatedwith them through channels and methods such as the website, the media, meetings, reports and activities, andpositively responded to the stakeholders' requirements and expectations.
Stakeholder Communication
Fair and high-quality procurement
Supplier support and
empowermentGreen procurementHonest and friendly cooperation
R&D innovationIndustry upgradeIndustry cooperation
Low-carbon operationEnergy conservation and emission
reductionTreatment of three wastes
Social welfare
Supplier evaluationSupplier communication and
trainingTransparent procurementResource sharing
Industry-academia-research
cooperationActive exchanges and visitsParticipation in industry forums
and standards
Green o?ceEnvironmental activities and
trainingGreen factory
Rural revitalizationPublic bene?t activities
Response to national development
strategiesIntegrity and law-abiding
operationsTax payment according to lawProtection against business risks
Internal control systemLearning and implementingvarious regulatory provisionsActive cooperation with regulationLaw-abiding operations and fair
competition
Sustainable pro?tabilityRegulating corporate governanceDisclosure of operatinginformationAsset preservation and return on
investment
Convening the General Meeting of
ShareholdersPeriodic reports and interim
reportsirm.cninfo.com.cn, investorresearch, investor relationscolumn, email and phoneProtecting the basic rights andinterests of employeesA well-devised career development
systemGood bene?tsA healthy and safe working
environment
Regular employee rights meetingsRights and interests complaint
channelsTrade Union management
Quality productsAfter-sales service
Innovative R&D designProduct quality controlHigh-quality and e?cient services
Expectations and requirementsCommunication and responseStakeholdersExpectations and requirementsCommunication and responseStakeholders
Community and Public
Employees
Government and regulatory
agencies
Shareholders and investors
Customers
Partners
Suppliers
Environment
1718
Environmental, Social and Governance （ESG）Report
High-quality and efficient corporate governance is thefoundation of prudent operations of modern enterprises.Keystone Electrical strictly abides by the laws andregulations,and actively communicates with investors toensure information transparency, protect investors' rightsand interests, strengthen compliance risk preventionand control, and standardize corporate governance.Meanwhile, the Company strengthens the education onintegrity and business ethics, and resolutely protectsintellectual property rights, so as to ensure prudentoperations and sustainable development.
SDGs Benchmarking
Our Actions
Philosophy
Prudent Operations
Strengthening the Foundation for
Development
Solidifying corporate governanceProtecting investors' rights and interestsInternal control compliance and risk managementStrict adherence to business ethics
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Environmental, Social and Governance （ESG）Report
Solidifying corporate governanceKeystone Electrical has revised and improved the Articles of Association, the Working System of IndependentDirectors and other governance systems, established and improved the standardized corporate governance structurein strict accordance with the requirements of The Company Law, The Securities Law, Guidelines for the Governanceof Listed Companies and other relevant laws and regulations. This has e?ectively guaranteed the orderly operationof corporate governance, and practically safeguarded the rights and interests of the investors and the Company'sstakeholders.
Under the Board of Directors are the Audit Committee, the Strategy and Development Committee, the NominatingCommittee, and the Remuneration and Evaluation Committee, and the Board of Directors has revised the workingrules of each committee. Specialized committees are composed of the Company's directors and independentdirectors with over 50% members are independent directors. Moreover, the Company attaches importance tothe diversity of the Board of Directors. Directors are selected after qualification examination by the NominatingCommittee, deliberation by the Board of Directors and the General Meeting of Shareholders, and comprehensiveconsideration of various factors, such as professional competence, cultural and educational backgrounds, industryexperience, gender, etc. The goal is to further strengthen the scienti?c and rational decision-making of the Board ofDirectors and enhance the level of corporate governance.
The Company also attaches importance to the empowerment of its directors and supervisors, and continuouslyimproves their compliance awareness and management level. A sound and regularized training mechanism fordirectors and supervisors has been put into place. The Company regularly conducts internal training and activelyorganizes the participation of directors and supervisors in the training conducted by the Securities RegulatoryBureau, the Stock Exchange and other regulatory authorities, so as to deepen their knowledge and understanding ofthe relevant laws and regulations and enhance the level of corporate governance.
Keystone Electrical has established a sound governance structure consisting of the General Meeting of Shareholders,the Board of Directors, the Board of Supervisors and the management. With well-de?ned powers and responsibilities,the three mechanisms have each performed its own responsibilities, and restrained each other. The Companyhas also continuously improved a number of governance systems and the working rules of the Three Mechanismsto ensure the legality, compliance, truthfulness and effectiveness of its major decisions, enhanced the level ofcorporate governance and promoted the standardization of governance.
Three-mechanism Governance
Organizational Structure of Keystone Electrical
Composition and Responsibilities of the three Mechanisms
· The General Meeting of Shareholders is convened according to law to ensure that all shareholders
have the right to be informed of, to participate in and to vote on major matters of the Company,and to guarantee that all shareholders enjoy an equal status and are able to fully exercise theirrights, thus assuring the legality and e?ectiveness of the General Meeting of Shareholders.GeneralMeeting ofShareholdersBoard ofDirectors
·The Company has established a comprehensive governance system, including the Rules ofProcedure of the Board of Directors;·The Board of Directors of the Company has deliberated and made decisions on major matters ofthe Company in strict accordance with the terms of reference set out in the Articles of Association.
Board ofSupervisors
· The Company performs its duties in strict accordance with the provisions of the Articles of
Association and other relevant laws and regulations. Responsible to the General Meeting ofShareholders, the Company examines and reviews the regular reports of the Board of Directors,inspects and supervises the corporate finances, directors and senior management, and paysattention to its operations.
In 2023, the Company had a total of 9 Board members, of whom 3 were independent directors
and 6 were non-independent directors, and 1 was female and 8 were male.
In 2023, the Company held 4 General Meetings of Shareholders at which a total of 19 motions wereconsidered, 12 Board of Directors meetings at which a total of 39 motions were considered, and 10Supervisory Board meetings at which a total of 28 motions were considered.
Key Performance
Key Performance
Personnel DepartmentInvestment Budget DepartmentDomestic Trade DepartmentProcurement DepartmentInformation DepartmentProduct Development DepartmentAdministrative DepartmentFinance and Accounting SupervisionSales & Engineering DepartmentMaterial Coordination DepartmentPower Equipment DepartmentProject DepartmentHuman Resources Coordination DepartmentInternational Trade DepartmentMarketing Coordination DepartmentWarehousing DepartmentLaboratorySupplier DepartmentFinancial DepartmentKey Accounts DepartmentTechnology R&D DepartmentProduction Technology DepartmentPMC DepartmentCost Accounting DepartmentBrand Marketing DepartmentTechnology Support DepartmentQuality DepartmentProduction DepartmentHRCenter
FinanceCenter
Marketing
Center
TechnologyCenter
SupplyCenter
Production
Center
Strategy CommitteeBoard of SupervisorsRemuneration andEvaluation Committee
Board O?ceNominating Committee
General Manager's O?ce
Audit CommitteeInternal Audit
Department
General Meeting of Shareholders
Board of DirectorsGeneral Manager
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Environmental, Social and Governance （ESG）Report
The Company believes that transparency of remuneration is a leading corporate governance measure. In strictaccordance with the requirements of various laws and regulations and after discussion by the Remuneration andEvaluation Committee of the Board of Directors, and consideration of the actual development of the company, theannual remuneration plan of directors, supervisors and senior managers has been formulated.
Transparency of Remuneration
In order to adapt to the rapid development requirements, Keystone Electrical has started the management reformwork, adhered to the reform concept of "adjustment, consolidation, enrichment, improvement", completed therecon?rmation of its ?rst and second-level organizational structure. The Company has further reviewed and adjustedthe original management system and management methods, improved its scientific and fair management andperformance evaluation, and ensured the steady progress of reform work.
Management Reform
In November 2023, the Company initiated the management reform work and organized regular weekly meetings onthe topic of management reform with the heads of each department. As of the end of the reporting period, a total of 9meetings had been organized to discuss the problems encountered by various departments during the advancementof management reform, and external experts had been invited to answer questions in order to guarantee that thecorporate governance system and corporate management process match the corporate development.
Reinventing Management Systems to Enhance Corporate E?ectivenessCase
| Management Reform Kick-o? Meeting | Management Reform Thematic Meeting |
Protecting Investors' Rights and InterestsKeystone Electrical attaches great importance to investor relations and is committed to protecting the interestsof investors. Solid investor relations have been established through compliant information disclosure and activecommunication and interaction. The Company actively fulfills its information disclosure obligations, protects therights and interests of all shareholders, especially small and medium-sized shareholders, and communicates andinteracts with investors through multiple channels and platforms to establish a foundation of trust and realize a win-win situation.
In combination with the actual situation, Keystone Electrical has formulated the Investor Relations ManagementSystem, set up multi-channel investor communication platforms to strengthen effective communication withinvestors, establish good investor relations, and enhance investors' understanding and recognition of the Company.The ultimate goal is to realize the return of investors, and protect the investors' rights and interests.
In order to strengthen the management of information disclosure a?airs and standardize the Company's informationdisclosure, Keystone Electrical has formulated the Information Disclosure Management System, Internal ReportingSystem for Material Information, Registration and Management System for Informants of Insider Information andother systems. Good compliance support has been provided for the disclosure of changes in fund-raising andinvestment, foreign investment, changes in the insurance agent, equity distributions, the departure of directorsand supervisors, the employment of directors and supervisors, and connected transactions. And the obligation ofinformation disclosure has been conscientiously ful?lled to reduce the risk of information asymmetry, and e?ectivelysafeguard and protect the rights and interests of investors.
Investor Management
Information Disclosure
Investor Communication ChannelsFollow irm.cninfo.com.cn and promptly answer the questions of investors. A total of 70 questions wereanswered this year.3 investor o?ine surveys were organized and the survey records were disclosed in a timely manner.
Improve the investor relations column of the Company's o?cial website https://cn.keystone-electrical.com/Add investor relations column in the Company's WeChat Public AccountO?cial Tik Tok account and videoInvestor Hotline
In 2023, the average remuneration of the Company's directors was RMB 236, 300, and theaverage remuneration ratio between the General Manager and employees was 60.3：1.
Key Performance
In 2023, the Company organized 15 internal training sessions and 9 external training sessions forits directors and supervisors.
Key Performance
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Environmental, Social and Governance （ESG）Report
Internal Control and Risk Management
In accordance with the requirements of laws and regulations, the Stock Exchange and the Articles of Association,Keystone Electrical has formulated systems such as the Internal Audit System and the Basic Code for InternalControl. With a combination of risk-orientation and cost-effectiveness, the Company has continuously improvedits internal control system to form a scientific mechanism for decision-making, execution and supervision. TheCompany formulates and strictly implements the annual work plan of the Internal Audit Department to ensurethat the work of internal control and risk management is carried out legally, reasonably and e?ectively, correct andprevent errors and malpractices in a timely manner, guarantee the legal and compliant operations and managementof the Company, reduce business risks and promote its high-quality and sustainable development.
·Working hours, bene?ts, environment and safety· Employees’ dissatisfaction with the Company’sadministrative decisions or punishments·Employee con?icts arising from work· Disclosure of internal business materials, business
information or management rules to other organizations orpersonnel without permission· Complaints against or reasonable suggestions for service or
management procedures and related rules· Matters about relatively signi?cant adverse impacts imposed
by the acts of the employees/other organizations or personnel
upon the Company’s reputation, and relatively heavy
property losses caused therebyThe Internal Audit Department verifies the situation within 5 working days; if the situation is true, it will submitthe written handling suggestion to the Chairman or General Manager for approval, and reply the final handlingsuggestion within 2 working days after approval. Moreover, the Company has established a whistleblower protectionmechanism. When the complaint is accepted, the real-name whistleblower's name, ID number, contact phonenumber and other information shall be kept strictly con?dential, and no one shall retaliate against the whistleblower.Once such acts are found, they will be dealt with severely.
Principles of Internal Control
Strict Adherence to Business Ethics
Observing business ethics and the spirit of contract, Keystone Electrical has put in place a sound anti-fraudmechanism, entered into the Integrity Agreement with external parties and the Letter of Commitment to Integritywhen new employees are employed, identified the key areas, key links, and main contents of anti-fraud. Theprovision of internal business data, business information, and management systems of the factory to personnel fromoutside organizations is strictly prohibited. Meanwhile, the Company has set up diversi?ed channels for employeecomplaints to receive complaints and suggestions on various types of business ethics, labor rights and interestsand other related issues. The code of business ethics has been continuously improved, and human resourcesmanagement has been continuously strengthened.
Business Ethics Management
In 2023, the Company issued 4 internal audit reports.
In 2023, the Company received no corruption lawsuits from regulatory authorities, no anti-
corruption or human rights violation reports.
In order to further strengthen the management of related-party transactions, Keystone Electrical has formulatedthe Management System for Related-party Transactions which specifies the approval procedures, disclosurerequirements, and the duties and authorities of relevant responsible persons for related-party transactions. Anyproposal involving related-party transactions must undergo a rigorous deliberation and decision-making procedureto ensure the legality, fairness and necessity of such transactions. In 2023, the Company engage in no large-
scale related-party transactions. In the future, the Company will continue to adhere to standardized operations,strengthen internal control and protect the rights and interests of investors.
Control of Related-party Transactions
In order to strengthen the confidentiality of insider information, Keystone Electrical has strictly implemented theMeasures for the Administration of Information Disclosure by Listed Companies, Supervisory Guidelines for ListedCompanies No. 5—Registration and Management System for Informants of Insider Information of Listed Companies,and Self-disciplinary Supervision Guidelines for Listed Companies No. 2—Standardized Operation of ListedCompanies on GEM Board, and other laws and regulations. The Registration Management System for Informantsof Insider Information has been formulated, and the principles of openness, fairness and impartiality, upholdsfairness and justice have been strictly observed to uphold fairness and justice, adhere to the lofty bottom line of lawand morality, and safeguard the legitimate rights and interests of stakeholders. In 2023, the Company engage in noinsider transactions.
Management of Insider Information
Whistleblown or complained matters to be processedWhistleblowing and Complaint Channels
Internal controls should run through the whole process of decision-making, implementation andsupervision, covering all kinds of business and matters of the enterprise and its a?liated units.Principle ofcomprehensiveness
Internal controls should focus on signi?cant operational matters and high-risk areas on the basis ofcomprehensive controls.Principle ofmateriality
Internal controls should create mutual constraints and supervision in terms of governance structure,organizational setup and allocation of authority and responsibility, and business processes, whiletaking into account operational e?ciency.Principle of checks
and balances
Internal controls should be commensurate with the scale of the enterprise's operations, scope ofbusiness, competitive situation and level of risk, etc., and should be adjusted in a timely manner ascircumstances change.Principle ofadaptability
Internal controls should balance the cost of implementation against the expected bene?ts to achievee?ective controls at an appropriate cost.Principle of cost-
e?ectiveness
Reporting Complaint MailboxChairman's MailboxOpens once a week on MondaysReporting complaints to senior leadership
Face-to-face interviewWhistleblowing hotlines：
0579-89133852，0579-89133857；
Whitleblowing email：
neishen@keystone-electrical.comReferral to workers' representatives
Key Performance
Key Performance
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Environmental, Social and Governance （ESG）Report
Eco-first
Leading the Way to a Green Future
Committed to realizing a balance between economicbenefits and environmental protection, KeystoneElectrical actively promotes a low-carbon and greenmode of operations. The Company has adopted a series ofmeasures such as strengthening environmental protectioninvestment, energy-saving renovation and introduction ofclean energy, in order to reduce greenhouse gas emissionsand keep hazardous substances under control, safeguardproduction safety and chemical compliance and safetymanagement, and minimize the adverse impacts on theenvironment caused by its production and operations.
SDGs Benchmarking
Our Actions
Philosophy
Strenghening environmental managementReducing three-waste emissionsOptimizing resource conservationPreventing environmental hazards
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Environmental, Social and Governance （ESG）Report
Strengthening Environmental Management
Reducing Three-waste Emissions
In order to implement the basic national policy of environmental protection, Keystone Electrical has strictlyimplemented The Environmental Protection Law of the People's Republic of China and other laws and regulations,established and improved the environmental management system. Furthermore, a system network centered on theEnvironmental Protection Management System and covering the disposal of hazardous wastes, pollution preventionand control, and chemicals management has been formulated and certi?ed by the ISO 14001:2015 EnvironmentalManagement System. Moreover, the Company won the 2018 Conforming Enterprise of Cleaner Production Audit andInspection of Zhejiang Province, 2021 Green Low-carbon Factory of Jinhua City, 2022 Beautiful Factory BenchmarkEnterprise of Jinhua City and many other green honors, showcasing its positive contribution to the cause ofenvironmental protection.
In order to strengthen the environmental control work, Keystone Electrical has formulated and implementedEnvironmental Protection Management System, Pollutant Discharge and Environmental Protection StatisticsManagement System, Waste Management System and other management systems. The "Three Simultaneous"and "Five Incorporation" control requirements have been put forward. Irregular sampling and random inspectionof emission points have been carried out, inspection conducted, and accounts established to ensure timely ande?ective monitoring work; relevant departments such as ?nance and supply have been required to fully cooperatewith the implementation of environmental protection projects, so as to promote the Company's pollution preventionand environmental control work, and realize green production.
The Company has built an EHS (Environment, Health and Safety) steering group, appointed the General Manageras the first person responsible for environmental protection work, and the head of each department as the firstperson in charge of their respective department. The policy of "comprehensive planning, technological innovation,comprehensive utilization, scienti?c management, prevention of pollution" has been implemented, and the trainingof environmental protection for employees has been strengthened at all levels for effective green developmentwork. Meanwhile, the Company has established an environmental performance incentive mechanism, incorporatingenvironmental protection and completion of environmental work tasks into the assessment conditions of theselection of advanced individuals. Spiritual encouragement and material rewards have been given to employeesand relevant departments contributing to environmental protection work. The goal is to stimulate the enthusiasmand enthusiasm of employees for environmental protection and promote the harmonious coexistence of corporatedevelopment and the environment.
Management Requirements for Three-waste Emissions
Green Factory Training and Education
—
浙经信绿色〔2019〕120号
| 各市经信局：根据《中华人民共和国清洁生产促进法》和《清洁生产审核办法》，2018年我省共有815家企业通过了清洁生产审核，在节能、降耗、减污、增效上取得了较好的效果，现将验收合格的企业名单予以公布。希望通过验收的企业再接再厉，积极开展持续性清洁生产审核工作，不断减少资源消耗和污染物排放，为我省生态文明和美丽浙江建设作出积极贡献。浙江省经济和信息化厅2019年7月9日 |
Certi?cate of ISO 14001:2015Environmental Management System
| Certi?cate of ISO 14001:2015 Environmental Management System | 2021 Green Low-carbon Factory of Jinhua City | |
2018 Conforming Enterprise ofCleaner Production Audit andInspection of Zhejiang Province
| 2018 Conforming Enterprise of Cleaner Production Audit and Inspection of Zhejiang Province | 2022 Beautiful Factory Benchmark Enterprise of Jinhua City |
The matching rate of pollution source treatment facilities is 100%, and the annual operation rate ofenvironmental protection facilities is 100%.If pollution is caused, the Company will be responsible for controlling the source of pollution and treating it toeliminate the e?ects of pollution.Improve technical innovation and comprehensive utilization, eliminate running, risking, dripping and leaking,and reduce the three wastes in the production process.Capacity expansion, technological transformation, the principle of "new in replacement of old" to beimplemented.In-plant production should meet the requirements of a leak-free plant to e?ectively reduce the impact ofpollution.Organizational Structure of EHS Steering Group
Head of Marketing Center｜Head of Supply Center｜Head of Technical Center｜Head of Power Equipment DepartmentHead of Quality Department｜Head of HR Center｜Head of Production CenterEHS Director2930
Environmental, Social and Governance （ESG）Report
The Company's waste gas mainly includes injection molding exhaust, dip coating paint exhaust, welding fumes,quenching exhaust and etc. The Company effectively carries out the prevention and control of atmosphericpollutants in its daily production operations: after collecting the dip coating paint exhaust, it is treated with primary?ltration + UV photolysis puri?er + activated carbon adsorption device before being discharged into the atmosphereat a height of 15 meters; the injection molding exhaust is collected through a gas collection device and then treatedwith primary filtration + activated carbon adsorption device before being discharged into the atmosphere at aheight of 15 meters; the quenching exhaust is collected and then treated with an oil mist purifier before beingdischarged into the atmosphere at a height of 15 meters. The Company attaches great importance to environmentalmanagement and has entrusted third-party professional organizations to conduct testing on waste gas pollutantsand noise to ensure that pollutant emissions meet standards, striving to minimize negative impacts on theenvironment.
·Set up a special area for stockpiling, and establish storage, transferand disposal ledgers.·Forming waste and other industrial solid waste should be unifiedlycollection for outsourcing disposal.·Domestic waste is mainly entrusted to the sanitation department foruni?ed treatment.· In-plant production should meet the requirements of leak-freefactories to e?ectively reduce the impact of pollution.
The Company has formulated the Management System of Three Wastes, and Waste Management System to regulatethe management, collection, storage and disposal of its wastes. The wastes generated by the Company are mainlysolid wastes and hazardous wastes. Solid wastes are mainly composed of metal scraps, scrap cakes and othergeneral industrial solid waste and domestic waste; hazardous wastes are mainly waste emulsion, waste paintbuckets, waste anti-rust oil and waste activated carbon. The solid wastes generated by the Company should becomprehensively utilized as far as possible, so as to transform hazards into bene?ts. If the wastes cannot be utilized,they are entrusted to a quali?ed third party organization for disposal.
Waste Disposal
Methods for Management of Waste Disposal
Table Energy Consumption
CategoryUnit202120222023Purchased electricitykWh6,720,860 4,193,174 4,727,781Purchased photovoltaic electricitykWh1,309,463 1,135,163 1,274,082
Optimizing Resource Conservation
Keystone Electrical earnestly fulfills the responsibility of resource conservation, takes the realization of intensive,recycling, eco-friendly green development as the entry point for transforming the mode of economic development,adheres to the concept of green development, and actively responds to the national call for dual-carbon emissionreduction. The Company requires the Power Equipment Department and the Administration Department as themain responsible department for its energy conservation supervision, inspection and management work to promoteprogress of energy-saving technologies.
Keystone Electrical takes "Cleaner Production" as the purpose and "elimination of pollutants at source" as theprinciple, adheres to the priority of energy conservation and emission reduction, formulates and strictly implementsconsumption quotas, and comprehensively utilizes resources and energy. Based on the premise that the currentdomestic technology is feasible and economically reasonable, the Company requires the comprehensive utilizationof all kinds of resources with a utilization rate more than 80% , and reduces energy loss and promotes greendevelopment through continuous technological innovation and management optimization.
Energy Management
By adjusting the heating of the steam room, the Company eliminated the use of resistance rod heaters, and adoptedthe variable frequency magnetized furnace water tank for high temperature heating, so that the water in the watertank can vaporize to produce steam, and the steam can be transported to the steam room through the pipeline toachieve the humidi?cation e?ect. For the same heating e?ect, the heating power is reduced from 48kW to 30kW, andthe electric energy is saved by about 30%, thus helping the Company realize green energy-saving production.
Steam Room Renovation and Upgrading to Reduce Equipment Energy ConsumptionCase
Continuously committed to green production and sustainable development, the Company has adopted LED lampsin all factory buildings. Under the same illumination conditions, the LED tubes use an electronic starter, and can savemore than 30% of electricity than the ordinary lamps. In the design of factory buildings, the Company focuses on thegreater use of natural light, thus reducing the use of electricity. Furthermore, the Company seizes the opportunityof clean energy, and actively promotes the implementation of distributed photovoltaic projects. The fuel sedanshave been replaced by new energy sedans as corporate vehicles, reducing fossil fuel combustion, responding to thenational dual-carbon strategy development.
The Company strictly executes the Integrated Sewage Discharge Standard, conducts pre-treatment through the useof puri?cation and treatment facilities, and discharges the conforming waste water into the urban sewage treatmentplant. Furthermore, the Company divides the domestic water from rainwater and waste water, and requires eachworkshop to clean up the trenches and wells in the area under its jurisdiction in time to prevent debris from blockingthe trenches and wells, and subsequent sewage over?ow.
Waste Water and Waste Gas Management
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Environmental, Social and Governance （ESG）Report
Energy-saving equipment has been embedded in the injection molding equipment to promote manufacturing
energy conservation and emission reductionInjection MoldingCondensation Tank
| Injection Molding Condensation Tank | Condensate Circulating Water Pump | ||
At the level of water resource management and protection,Keystone Electrical strictly abides by the laws and regulations onwater resource management and takes creating a water-savingenterprise as its own responsibility. In the process of productionand operations, the Company requires all departments to usewater rationally and for multiple purposes. We have adoptedinjection molding condensation tank and condensation process tocontinuously reduce the consumption of fresh water, continuouslyimproved the management of water resources, and enhancedthe utilization rate of water resources. Meanwhile, the Companyconstantly strengthens the management of the water dischargesystem network, so as to achieve rainwater and sewage separation,and ensure no seepage, no leakage, no bubbling and unobstructedflow. These measures are to prevent wastewater discharge frompolluting the groundwater source and rainwater discharge system,and promote the long-term development of conservation andprotection of water resources.
Water Conservation Management
In order to actively respond to the national greenenergy policy and promote its green transformation,the Company has entered into a rooftop distributedphotovoltaic power station project contract with JinhuaTaikun New Energy Technology Co., Ltd. The projectis planned with a total installed capacity of 1.2MW,and the annual power generation is expected to reachover a millionkWh. The use of clean energy can helpreduce carbon emissions, and contribute to sustainabledevelopment.
Building a Green and Clean Future Hand in Hand with Jinhua TaikunCase
The production and operation process of Keystone Electrical often involves a variety of non-direct materials, and alarge number of products are sold around the world every year. Hence, a great deal of product packaging materialsare also used. In order to further promote green operations and implement effective material supervision andmanagement, the Company has formulated and implemented Incoming Inspection Standard for Plastic pallets,Specification on Utilization Rate of Recycled Plastics and other normative documents. These documents canhelp ensure the quality of raw materials and efficient utilization of resources, promote the innovation of productpackaging, and reduce waste packaging materials. The Company conducts regular material audits to identifypotential or existing problems and proposes management optimization measures to reduce the cost of waste andnegative impacts on the environment. Furthermore, all the products sold to EU of the Company are compliant withthe EU ROHS 2.0 Standard.
Material Control
Water Resources Consumption
CategoryUnit202120222023
Purchased municipal waterm
20,22220,67723,752Consumption intensity of water resources
m
/RMB 10,000 ofoperating revenue
0.250.350.41
Method of restriction· Clearly specify the types ofmaterials that the Companyrestricts in procurement for thereference of each department andsubsidiary;· Strictly control the quantity of
inventory in each department, trynot to set up small warehouses,and reduce material stagnation.
Method of conservation
· Change the mindset and developthe habit of conservation;· Printed on both sides of the paper;· Repair warehouses built；· Receive consumables with limitedquantity and within the specifeidtime, and keep ledgers properly.
Supplies sharing
· Make it clear that o?ce suppliescan be shared, suggest thatprinters can be used togetheracross departments, set areas andformulate management measures;· Regularly clean and recycle excessand unused o?ce supplies andconsumables.
Procurement Method & Process· Introduce network procurementfor some supplies;· Improve the network procurementprocess, clarify the considerationsof the network procurementplatform, etc.
Centralized treatment
· Classify and dispose of the
scattered substances with recyclingvalue in a uni?ed manner;· Establish appropriate regulationsand guidance methods for scrapprocedure, recycling and disposal.
Methods for Management of
Materials
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In order to further save paper, the Company hasoptimized the supplier collaboration module of ERPsystem to place electronic and paperless purchaseorders, saving more than 10,000 pieces of A4 paperper year, enhancing efficiency and implementing thegreen concept to ensure environmental protection andsustainable development.
Promoting E-procurement and New Green Paperless PracticesCase
By revising the system document Confirmation of ProductBOM Usage, the Company has improved data accuracyand production standardization, further strengthened therecycling of material resources, crushed and reused reusableplastic parts with a scienti?c ratio, signi?cantly reduced thescrap of plastic pallets, reduced the number of outsourcedpallets. This has also lowered energy consumption andresource inputs required for the management of reportedwastes, thus realizing the simultaneous enhancement ofeconomic bene?ts and environmental bene?ts. It is estimatedthat the monthly production waste has been reduced from
5.2 tons to 3.5 tons, and the monthly direct waste reuse has
increased from 2 tons to 2.5 tons. RMB 422,400 in directcosts is expected to save throughout the year.
System Optimization and Resource Recycling to Build a New Chapter of Environmental ProtectionCase
Procurement Information PlatformRecycling and Scrap of Plastic Pallets
Consumption of Packaging Materials
Emergency Plan System Diagram
CategoryUnit202120222023Packaging material used: woodTon51,802.52 36,630.00 40,860.00Packaging material used: plasticTon199,117.27 139,342.86 153,753.39Packaging material used: paperTon3,731,813.68 1,967,999.96 1,949,010.12Packaging material used: OtherTon70,731.32 37,224.58 39,768.97Total packaging consumables usedTon4,053,464.792,181,197.42,183,392.48Consumption intensity ofpackaging consumables
T/RMB 10,000 ofoperating revenue
50.3136.4837.24
Preventing Environmental Hazards
Keystone Electrical earnestly implements the Law on Safety in Production , the Law on Emergency Responses, andrelevant laws and regulations, and has formulated the Emergency Plan for Production Safety Accidents, EmergencyManagement Control Procedures, Management System for Hazardous Chemicals and Fire Safety ManagementSystem. Greater e?orts have been made to strengthen the supervision of the operation activities related to majorrisk factors of the Company, ensure that in the event of a major accident, the situation can be quickly and e?ectivelycontrolled and rescue can be promptly organized to maximize the protection of the personal safety of employeesand the property safety of the enterprise.
Keystone Electrical strictly refers to and implements the Emergency Plan for Production Safety Accidents andIntegrated Emergency Plan for Production Safety Accidents. In line with the principles of people-oriented, safety ?rst;uni?ed leadership, accountability at di?erent levels; dependence on science and regulation according to law; priorityto prevention and care at all times, the Company has regularly identified and analyzed major hazards accordingto the Identification of Major Hazards of Hazardous Chemicals. Fire, other explosions, electric shock, containerexplosion and other types of accidents are classified according to severity; targeted emergency treatment planshave been formulated, and the emergency response organization network has been built for immediate emergencyrescue. Furthermore, the Company conducts regular safety inspections and evaluations, and carries out emergencydrills and other activities to strengthen the employees' full commitment to preventing and minimizing workplaceaccidents.
Emergency Response
In 2023, the Company had no major environmental safety incidents.
Specialized Emergency PlanField Punishment Scheme
Integrated Emergency Plan
EmergencyPlan forHazardousChemicalSpills
EmergencyPlan forFires andExplosions
EmergencyPlan forSpecialEquipmentInjuries
EmergencyPlan forNaturalDisasters
Mechanicalaccidents
High-temperatureburnsElectricshockaccidents
Vehicleinjuryaccidents
Key Performance
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Environmental, Social and Governance （ESG）Report
Emergency Organization Network Diagram
Group Responsibilities of Emergency Organization
Emergency Response Level and Support Measures
Fire safety is a top priority in the Company's emergency management e?orts. The Company adheres to the principleof "safety must be managed in production management; whoever is in charge is responsible", resolutely implementsthe policy of "safety ?rst, prevention foremost, prevention and elimination combined". The ?re drill plan has beenformulated and comprehensive ?re drills for the whole factory are organized twice a year to constantly strengthensthe ?re awareness, safety and ?re safety responsibilities and obligations of all employees.
Response levelAccident hazardRequest for support
Level I
Accidents like catastrophic or major ?re, orexplosion causes serious personal injuries or deaths(causing personal injuries to 3 or more persons, orcasualties to one or more persons); thunderbolt,earthquake, typhoon, storm and ?ood, etc. lead toforce majeure like natural disasters.
119, 120, 110, local police stations,
governments
Level II
Relatively heavy explosion or ?re occurs, but can becontrolled through control equipment, resulting inpersonal injuries (to 2 or fewer persons).
119, local police stations,governments
Level III
General ?re or other accidents occur (withoutpersonal injury, or with insigni?cant economic loss)
None
Commander-in-chief
Deputy Commander-in-chief
Members of the EmergencyResponse CommandEvacuation and
Alert Team
EmergencyRescue Team
Logistics SupportTeam
Communication
Liaison Team
Medical Aid Team
Communication Liaison Team·Collect rescue information and organize press releases.·Call the police in emergencies, hold press conferences to answer questions from the media, and communicate information.·Take charge of liaison and communication of internal and external information.
Medical Aid Team·Take charge of organizing the supply of emergency supplies and logistical and living materials, and arrange for vehicles to transport emergency supplies and personnel.·Implement medical care for the injured, provide transportation vehicles, contact and identify hospitals for treatment, and handle related procedures.·Purchase and stock medical equipment and medicines needed for emergency care and ?re?ghting equipment.·Keep the emergency vehicles in good condition to ensure that the emergency leadership team can be quicklytransported to the scene at any time after an accident.Evacuation and Alert Team· Set up a security cordon to prevent unrelated people from entering the scene of rescue, guarantee the smooth
?ow of emergency personnel, vehicles and emergency materials at the scene, ensure the safe and smoothprogress of the rescue work.·Secure the scene of accident and draw the quarantine zone.·Work with relevant functional departments to analyze and investigate the causes of accident·Afterwards, the accident should be documented in writing and opinions or recommendations should be made on how to deal with the accidentEmergency Rescue Team
·The commander-in-chief shall immediately issue rescue instructions to the members of the team, direct therescue and formulate a plan.· All members should quickly rush to the scene of rescue, each performing their own responsibilities anddelivering good rescue work;·Technical and professional personnel are responsible for rescue, repair and emergency measures to resume production as soon as possible to reduce losses.·Safeguard the safe evacuation of personnel and rescue the scene.
Logistics Support Team·Identify accidents, casualties, and direct economic losses.·Identify the causes and nature of accident and submit an accident investigation report.· Determine liabilities for the accident and make recommendations on how to deal with those responsible forthe accident.·Work with government departments in the investigation of accident.· Propose measures and recommendations to prevent accidents and evaluate the emergency response to accidents.· Take charge of the aftermath of the accident; stabilize the thoughts and emotions of the injured employees and their families.3738
Environmental, Social and Governance （ESG）Report
The chemicals involved by Keystone Electrical are mainly lubricants, epoxy resins and thinners, and we have alwaysattached great importance to chemical safety management and implemented relevant laws, regulations, normsand standards. In the principle of "uni?ed collection, classi?ed disposal, and elimination of hidden dangers", theCompany has achieved the goal of "reduction, resource utilization and hazard-free disposal" of hazardous wastes.The Company has further established and improved the chemical safety management system, formulated theInternal Management System and Post Responsibility System for chemical management, and constantly optimizedchemical collection, storage and other facilities. Moreover, the Company proposes that any unit or individualhas the right to complain and report on the Company's unauthorized transfer and disposal of hazardous wastesand pollution of the environment, thus better supervising its chemical management and effectively reducing theincidence of chemical accidents.
· Classi?ed storage according to the nature; set up the appropriate ventilation, explosion-proof, pressure relief, ?re, lightning, alarm, ?re, sun, temperature, static electricity elimination,protective embankment and other safety facilities should be provided; the chemicals should beclearly marked, and sealed immediately after use;· Chemicals spilled on the ?oor should be wiped up with a rag, which should be disposed of ashazardous waste.
Chemical Safety
Chemical Management Procedure
To enhance safety of the chemical warehouse and satisfy thestringent management requirements for the storage, the Companyhas replaced the original glass walls with reinforced concrete walls,thus greatly improving refractory performance of the warehouse.Besides, the Company has equipped the chemical warehouse withfire doors, explosion-proof lamps, gas masks, goggles, eyewashshowers, fireproof sand, fire extinguishers, combustible gasalarms and explosion-proof ventilation devices. This renovationsafeguards the safety of employees and the enterprise, and re?ectsthe Company's emphasis on production safety and its continuouslyimproving chemical management mechanism.
Chemical Warehouse Renovation to Improve Fire SafetyCase
In April and November 2023, the Company carried out three ?re safety drill training sessions for employees of theProduction Department, Supply Center and Technology Center. The Company reminds employees to raise theirawareness of ?re safety through the analysis of typical ?re cases across the country. Moreover, the Company explainsand teaches the correct use of ?re extinguishers, knowledge of ?re escape, ?re treatment, and educates employeesto remain calm in case of ?re, so as to improve self-defense and self-rescue capabilities, and to protect against toxicsmoke.
Conducting Safety Drills to Strengthen Emergency Response CapabilitiesCase
Solid Masonry Concrete Walls after
RenovationFire Drill on April 8
Fire Drill on April 8Fire and Disaster Prevention Safety Training on April 18
Fire and Disaster Prevention Safety Training on April 18Safety in Production Training on November 22
· Check whether the packaging is damaged or leaking and within the expiration date, andhas an MSDS;·In case of inspection compliance, acceptance formalities will be handled.
· Suppliers are required to take precautions against leakage, dumping, etc. duringtransportation and handling;· Suppliers should be required to provide the MSDS report which should be distributed foruse on site.
Storage and
UtilizationManagement
Arrival of
Chemicals
Procurement
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Environmental, Social and Governance （ESG）Report
Continuous InnovationPursuing Excellence in Quality
Keystone Electrical focuses on the continuous innovationof products and technology, and ensures excellent productquality by increasing R&D investment and talent reserves,promoting digital transformation process, standardizingsupply chain management, and establishing a scientificquality management system. Meanwhile, the Companyattaches importance to customer experience, and has putin place a perfect customer service system and a completeinformation security protection system. We can providecustomers with high quality services while guarding thesecurity of customer data and privacy, developing andmaintaining long-term and stable customer relationships.
SDGs Benchmarking
Our Actions
Philosophy
Driving Innovative DevelopmentImposing rigorous control on product qualityRegulating supply chain managementValuing customer serviceProtecting data security
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Environmental, Social and Governance （ESG）Report
Driving Innovative DevelopmentAs the core drivers of innovation and development, technology innovation and digital transformation play a crucialrole in the development of both enterprises and society. Through continuous product and technology innovation,Keystone Electrical continues to develop more competitive products and services to better meet the increasinglydiverse needs of customers. Meanwhile, the Company actively promotes digital transformation, thus optimizes theallocation of resources, achieves a substantial increase in production and management e?ciency, and promotes itshigh-quality and sustainable development.
As a National High-tech Enterprise and a "Little Giant" enterprise, Keystone Electrical pays attention to thecontinuous innovation of products and core technologies, optimizes the R&D and innovation system, and pushesforward the construction of R&D projects. Active efforts have been made in exploring new R&D direction, andprospective research and technical reserve have been conducted to promote the updating of products andtechnologies, and boost the transformation and upgrading of the industry with the power of Keystone Electrical.
The Company has formulated R&D management and incentive systems such as Technology Center ManagementSystem, R&D Project Management System, R&D Personnel Performance Evaluation System, and Incentive Measuresfor Scienti?c and Technological Progress, established the R&D incentive mechanism, and formed a standardized ande?cient R&D management model. The performance evaluation of R&D personnel is linked with indicators such asthe number of patent applications, and the percent of pass of new products, so as to constantly motivate employeesto innovate and improve the e?ciency of product research and development. Furthermore, the Company works withpartners to set up cooperative laboratories to promote technological innovation and enhance its R&D strength.
Leading Technological Innovation
R&D Management Model
Customer requirements oriented
R&D System
The Company's R&D team actively lays out new R&D directions and carries out technical reserve in advance byanticipating the future development direction and technology of the downstream industry, in order to keep the itsR&D technology forward-looking and advanced. The Company constantly updates and renews each core technologyaccording to market research, technological progress and downstream customer demand, and continuouslydevelops new products while improving the technical level and production e?ciency of existing products. In 2023,the Company invested RMB 20.7944 million in R&D and developed a total of 31 new products. Key New Products of the Company in 2023
45NM Electric Drill97813 Jig Saw20V Brushless Multi-purpose
Tool
R&D Results
The product is able to adjustthe controller software toquickly meet the customer'srequirements.
The product is in?nitelyclose to the customer'srequirements and can beused directly as a prototypewithout additionalinvestment of moreresources.
The product is developedbefore customerdevelopment and productproblems can be veri?edin advance and customerproduct development cyclecan be shortened.
Advantages
Primarily customized development,and independent research anddevelopment in parallel
Organizational Structure of R&D Center
Technology CenterTechnology R&D
Department
Product DevelopmentDepartment
Technology SupportDepartment
ProjectDepartmentSeniorEngineer
Team
ITeamIITeam
III
Team
IV
Team
VMotorElectr-
onics
FinalStudy
Design SupervisorTechnical EngineerTechnical EngineerAssistant EngineerTechnical Engineer
Certi?cation SpecialistAssistant EngineerAssistant EngineerAssistant EngineerDesign SupervisorAssistant Engineer
Intellectual Property Right SpecialistTechnical EngineerDesign Supervisor
TechnicianTechnical EngineerTechnical Engineer
ERP SpecialistProject ManagerDesign SupervisorTechnical Engineer
Standardization SpecialistAssistant EngineerAssistant Engineer
Document Control SpecialistNew Product Material SpecialistTechnical EngineerAssistant Engineer
Assistant EngineerDesign SupervisorDesign Supervisor
Mold SpecialistProject Assistant
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Environmental, Social and Governance （ESG）Report
Keystone Electrical adheres to the development strategy of digital transformation, continues to promote theupgrading and optimization of information technology products. Combining traditional manufacturing withthe digital economy, the Company has transformed the production mode from "manufacturing" to "smartmanufacturing", promoting the improvement of its manufacturing level and forming a strong competitive advantage.In order to adapt to the trend of digital transformation of the manufacturing industry and customers' requirementsfor multi-variety and small-batch and fast production, the Company has comprehensively implemented digitalmanagement, integrating multiple core digital systems to form an intelligent manufacturing innovation platform.The e?ciency of production and operations management has been signi?cantly improved. The Company has alsocontinued to promote the ERP collaborative management platform on the supplier side. Now 9 suppliers has joinedthe platform, and the number of suppliers is expected to increase to 49 in the future.
The Company constructed a highly efficient data center platform and worked with Zhejiang Normal University todevelop the Uni?ed Data Exchange Platform. The full-process informatization management from order generation toproduct delivery has signi?cantly improved the Company's management level and work e?ciency, and helped builda solid data foundation. Meanwhile, the application of the platform provides a model of enterprise IoT factory forJinhua manufacturing enterprises, and plays a leading role in the construction of Jinhua manufacturing IoT factories.
Promoting Digital Innovation
Highlights of Digital System Establishment in 2023
Key Implementation Contents of the Data Center
Uni?ed Data Exchange Platform for Intelligent Manufacturing Workshops
| The Company actively contributed to the No. 1 Development Project of Digital Economy Innovation and Quality, thus rated one of the Third Batch of "Cloud Enterprises" in Manufacturing Industry of Zhejiang Province 2023. | The Company promoted the development of big data technology, application and industrial innovation, thus rated one of the Ninth Batch of Demonstration Enterprises for Big Data Application of Zhejiang Province | ||
Provision of data sharingand exchange functions formultiple systems such as ERP,MES, PLM, WMS, CRM and HR;
Day-to-day operations andmaintenance management ofdata exchange scripts;
Realization of visual datamanagement of BI andanalytics data for corporatedecision-making.
Continuously optimize digital system functions
Constantly optimizefunctions of MES, ERP, WMSand other systems;
Deploy private cloud andcreate a data resource base;perform structured processingof heterogeneous system dataand build an integrated dataexchange center;
Perform data cleaning andgovernance through ETL toform a uni?ed enterprisedecision-making system.
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Environmental, Social and Governance （ESG）Report
The Company has established a uni?ed decision-makinganalysis visualization platform which collects andintegrates production and operation data, and extractsand processes the collected data information. All kinds ofproduction charts, operation and market trend analysischarts, market forecast charts, customer analysis charts,and other data analysis charts are displayed in a largevisualization screen, so as to provide decision-makingsupport in a more intuitive and clear way.
Establishment of a Visualization Platform Application to Promote the Integration Process ofManagement Decision-makingCase
Large Visualization ScreenCerti?cate of Intellectual Property Management System
Keystone Electrical has formulated the IntellectualProperty Management Measures, Patent ManagementSystem and other system documents in accordancewith the requirements of the relevant national laws andregulations. With the Certificate of Intellectual PropertyManagement System, the Company makes greater e?ort inthe management of intellectual property rights, encouragesinvention and creation, and protects the intellectualproperty rights held by it. In 2023, the Company wonthe title of National Advantageous Intellectual PropertyEnterprise, showcasing its strength in patent transformation,and shaping the corporate image with strong research anddevelopment strength.
Safeguarding Intellectual Property Rights
As of 2023, the Company had held 1 copyright and 159 domestic and foreign patents in toal (including
6 invention patents), with an annual increase of 11 new patents.
Imposing Rigorous Control on ProductQualityKeystone Electrical attaches great importance to product quality control, fully implements the requirements of ISO9001:2015 Quality Management System. Thus far, the Company has established a sound quality management system,formulated complete quality inspection procedures, practiced the quality control system in R&D design, materialprocurement, product production and testing, warehousing and sales, and formed a complete quality control closedloop.
The Company ensures that its products comply with the speci?ed quality standards and technical requirements bymarking, analyzing and correcting the causes of nonconforming products in the processes of incoming inspection,processing, assembling and outgoing inspection, as well as following up and verifying the corrective and preventivemeasures of nonconforming products, isolating and controlling nonconforming products, preventing unintended useand delivery of nonconforming products.
Continuous Improvement Procedure for Quality Management System
Corrective Procedure for Nonconforming Products
Continuous improvementof the quality management
system
ManagementResponsibilities
Resourcemanagement
CustomerRequirements
CustomerSatis?edMeasurement,analysis andimprovement
Products
Con?rm defectivecontents ofnonconformingproducts
Perform causeanalysis on defectsin nonconformingproducts
Issue a CorrectiveAction Report torelevant parties at fault
Con?rm correctiveactions
Key Performance
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Environmental, Social and Governance （ESG）Report
The Company has set stringent goals for product quality compliance rates and product quality compliance ratesin 2023 all exceeded the set target values. Thus far, the Company has been certi?ed by the ISO 9001:2015 QualityManagement System, and its main products have been respectively certi?ed by the EU CE/EMC, the U.S. UL/ETL, theGerman GS and other international certi?cation standards and the EU ROHS standards. The corresponding productcerti?cations or test reports have been obtained.
The Company is aware that that empowering production, quality control and other related employees is animportant measure to guarantee product conformity. In 2023, the Company carried out a full range of empowermenttraining for production personnel, and conducted a total of 51 training sessions on product process, productionprocess protection, 6S training, quality awareness enhancement and standards, and skill recognition of vocationalskill level turners and pliers. These e?orts were to try our best to deliver safe and reliable products and services toour customers.
| Certi?cate of Quality Management System | Certi?cate of EU EMC (Partially Displayed) | Certi?cate of German GS (Partially Displayed) | ||||
During the period from April to June 2023, the Company carriedout training on quality awareness enhancement and standardsfor employees in the Quality Department and Production Center.The Company has launched 8 training sessions on this series oftopics, covering a total of 1,000 trainees. The training contentmainly involves quality awareness, quality standards, defectiveproduct identi?cation, judgment and treatment, and the "three-no principles" of process quality control, aimed to strengthenthe quality control ability of production-related employees andimprove their production awareness of quality ?rst.
Quality Awareness Training to Enhance Employee Quality Management LevelCase
Regulating Supply Chain ManagementKeystone Electrical has formulated the Supplier Management Procedure, Procurement Management Procedure,Supplier Code of Conduct and other systems and guidelines. The Company has further established a perfect suppliermanagement system which is unified by the Supply Center, with the participation of multiple departments inimplementation for comprehensive management of all aspects of the supply chain. Meanwhile, the Company hasincorporated suppliers' business ethics, environmental impact and other indicators into its management system tojointly build a sustainable supply chain.
According to the needs of production and operation, Keystone Electrical has established and standardized thedevelopment process of new suppliers, and introduced new suppliers based on comprehensive screening ofproducts, quality, delivery, price and service. In accordance with the ISO 9001:2015 quality management systemstandard, the Company has signed the Product Quality Agreement with the suppliers to clarify the product content,acceptance standards, quality responsibility and other terms, requiring the suppliers to be responsible for the qualityof their manufactured products, and promptly deal with and solve product quality problems.
Supplier Introduction Management
In 2023, the Company's total number of suppliers reached 580, of which 69.5% are local suppliers.More than 90% of suppliers have signed the Supplier Code of Conduct with the Company.
New Supplier Development Procedure
NO
NO
YES
ConformingNonconforming
Development ApplicationInvestigationNew Supplier AssessmentConforming or NotInitial Monitoring Commission
Eligibility MonitoringLiaison on Monitoring ResultsCon?rmation of Monitoring ResultsRe-commissionRecti?cation Necessity
DisuseNew Supplier Introduction
Procurement DepartmentQuality Control Department
Key Performance
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Environmental, Social and Governance （ESG）Report
Keystone Electrical has established and continuously optimized and improved the management methods for supplierperformance evaluation. According to the importance of the purchased materials to the products, the Companyevaluates the supplier's product quality, delivery time, service ability, cooperation degree, customer feedback andother comprehensive aspects, and rates all suppliers for management based on performance evaluation. For Level Aexcellent suppliers, the Company gives priority in procurement, increased procurement share, payment, and qualitymanagement system certi?cation support; for non-conforming suppliers, the Company will suspend procurementand improve the suppliers' capabilities through counseling.
The Company attaches importance to integrity and a win-win situation, incorporates the concept of anti-corruptionand anti-bribery into the requirements of supplier management, continuously strengthens the integrity and honestymanagement of suppliers. The Company has further signed the Supplier Integrity and Self-discipline Commitmentwith the suppliers, requiring the suppliers and employees of Keystone Electrical to strictly abide by the provisionsof integrity and adhere to the principles of fairness, openness, impartiality, and honesty and trustworthiness in theirbusiness dealings. The Company has set up a reporting and supervision channel to ensure the standardization andintegrity of the supply and demand relationship, preventing and curbing the occurrence of illegal and disciplinaryproblems from the source, and promoting the sound development of the supply chain.
Supplier evaluation contents·Quality management level·Delivery date·Price
· After-sales servicecooperation·Customer feedback
Supplier Rating
·Grade A (Excellent Supplier): Performance ratingscore ≥ 90;·Grade B (Good Supplier): Performance ratingscore 80~90;·Grade C (Conforming Supplier): Performancerating score ≥ 70;·Grade D (Non-conforming Supplier): Performancerating score < 70;
Supplier Evaluation System
Keystone Electrical is committed to promoting the sustainable development of the whole industry chain, andrequires the suppliers to strictly comply with the Supplier Management System. Meanwhile, the Companyimplements the concept of sustainable development in all aspects of supplier management. The Supplier EvaluationTeam evaluates and selects suppliers based on the investigation of suppliers and their commitment to continuousimprovement and e?ectiveness, and makes a comprehensive assessment of suppliers in the management reviewmeeting with relevant departments once a year to promote sustainable supply chain management in all aspects.
Furthermore,the Company, based on the results of the supplier's performance evaluated, has established a supplierexit mechanism. For suppliers with continuous quality problems and delivery problems and non-conforming afterrepeated counseling and rectifications by the Company or inactive in coordination, the Company will cancel thequali?cation as conforming suppliers and initiate the exit process.Construction of Sustainable Supply Chain
Supplier Evaluation System
Measures for Sustainable Supplier Management
Complaint Reporting Supervision Channel
Valuing Customer ServiceKeystone Electrical values customer service, and has formulated the Delivery and After-sales Service ManagementProcedure, Customer Complaint Handling Management Procedure and other management systems to constantlystandardize the team's after-sales service work. Product liability insurance has also been purchased for exportedproducts to ensure customer response speed, product quality and service level. The Company regularly collectscustomers' opinions through customer satisfaction surveys, keeps abreast of new customer requirements and makescontinuous improvements based on customer feedback to provide customers with better quality services, enhancecustomer loyalty, and increase customer satisfaction and trust. In 2023, the Company was highly recognized bycustomers such as CPI and BOSCH.
Whistleblowing hotlines: 0579-89133852, 0579-89133857Internal Audit Department
· Assess their compliance with the Supplier Management System;· Record investigations and improvement requirements in the Supplier Evaluation Form.
New Suppliers
·Set forth improvement requirements in the Supplier Evaluation Form;· Issue the Corrective/Preventive Action Form to request the supplier to make correctionswithin a speci?ed period of time;·New Suppliers: not selected into Company Suppliers/Current Suppliers: cooperation canceled.
Non-conforming Suppliers
·Conduct the annual supplier social responsibility survey.
Current Suppliers
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Environmental, Social and Governance （ESG）Report
Protecting Data SecurityIn order to strengthen the construction of data security and information security, Keystone Electrical hasformulated the Machine Room Management System, Computer Equipment Management System and EmergencyPlan for Information Equipment Failure. A complete security protection system has been built to ensure thesafety of computer data and the stability of information equipment. Meanwhile, the Company has formulated theData Security and Backup Recovery Management System, adopted strict data security measures and customerprivacy protection measures to ensure information and data security and integrity. The Company signs relevantconfidentiality agreements in order to ensure the security and integrity of information and data, and respond tocustomer needs.
With the deepening of information construction, it has become one of the important tasks of the Company tostrengthen the processing ability of all kinds of equipment, systems and information and network security in thecomputer room to deal with emergencies. The Company has formulated the Emergency Plan for InformationEquipment Failure to identify the major emergencies and take corresponding disposal measures, so as to betterprevent and respond to the machine room emergencies that may occur, minimize the damage of potential or alreadyoccurred accidents, and ensure corporate information security.
Customer Complaint Handling ProcedureData Security Protection System
Emergency Plan for Information Equipment Failure
The Company adopted the SANGFOR next-generationfirewall system to identify security risks before,during and after the event, monitor and coordinatethe enterprise's private cloud, data center, consoleUI, configuration issuance and other work, and formsecurity barriers such as intrusion defense, dataleakage prevention and content filtering. Through thedeployment of the ?rewall system, the Company is ableto clearly understand the security status of networkassets, quickly identify various network threats andattacks, and strengthen network security.
Keystone Electrical Firewall DeploymentCase
Customer Appreciation EmailThe Whole-process Visualized Interface for Quick
Statistics on Network Threats
In 2023, the Company had no negative incidents involving violation of customer privacy andloss of customer data.
Complaint Initiated by the Customer
Cause InvestigationDirect Complaint Handling
Complaint Handling SuggestionsCustomer Information Reply (within 24H)
Satis?ed or Not
Cause Analysis by Relevant DepartmentsFormulation of Corrective Measures
EndNoYes
Firewall
HyperconvergedCloud ComputingSystem
AntivirusSoftware
Setting ofEmergency PlanMeasures
CDP TechnologyData Multi-copy TechnologyVirtual Machine Backup TechnologyApplication Data BackupNetwork Behavior Management
Server Equipment/Software DamageVirus Security
Hacking AttackWAN Line InterruptionKey Performance
Global Security
Capabilities
DataSecurityandReliability
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Environmental, Social and Governance （ESG）Report
Intelligent Talent
Development
Building the Dream of Talent Together
Keystone Electrical attaches great importance to thecultivation of employees, takes the talent strategy as thefocus of enterprise development, and provides employeeswith fair development channels and diversi?ed educationand training opportunities. The Company also cares forthe work and life of the employees through employeesatisfaction survey and employee communication toe?ectively give employees warmth and concern. A healthyand safe working environment has been created forthe employees, so as to realize the win-win situation ofhigh-quality corporate development and the growth ofemployees.Our Actions
Philosophy
Equal employment and retentionEmployee training and developmentEmployee rights and bene?tsOccupational health and safety
SDGs Benchmarking
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Environmental, Social and Governance （ESG）Report
Equal Employment and Retention
Employee Training and Development
Keystone Electrical strictly abides by the International Labor Organization Convention (ILO), ISO 45001: 2018Occupational Health and Safety Management System and BSCI requirements, and rigorously implements the LaborLaw of the People's Republic of China, Labor Contract Law of the People's Republic of China, Law of the People'sRepublic of China on the Protection of Women's Rights and Interests as well as other relevant laws and nationalemployment regulations. The Company has formulated the Employee Handbook, Recruitment and Job TransferManagement Measures, and other management documents. We are committed to establishing and improving a fair,reasonable and scienti?c talent management system, realizing the true match of "man and responsibility, man andpost, man and e?ciency", and achieving a "win-win" situation between strategic goals and talent development.
Keystone Electrical attaches importance to the development and cultivation of talents, establishes a soundmechanism for the development of talents and the distribution of employee remuneration, continuously improvesthe management of talent reserves, encourages employees to continue to learn, constantly update and improvethemselves. Diversi?ed training is provided to continuously enhance the professional knowledge and skills of theemployees, and helps them with their career development.
Keystone Electrical respects its employees and undertakes not to employ child labor, to guarantee equal pay forequal work, not to engage in or support any di?erential treatment of employees based on their race, social class,religion, gender, age, disability, and other factors in matters of hiring, pay, training, promotion, bene?ts, termination,or retirement; the Company also undertakes not to force pregnancy testing and contraception as a condition ofemployment, or not to dismiss female employees due to pregnancy, and to protect employees' religious beliefs,freedom of speech and other rights, and to actively build inclusive and harmonious labor relations.
Diversity and Equality
Keystone Electrical strictly follows the laws and regulations, cracks down on gender discrimination and harassment,explicitly prohibits the act of forced labor, and safeguards the legitimate working conditions of employees. TheCompany further provides employees with labor protection supplies and safety production facilities as well as ahealthy, safe, and comfortable working environment, and builds an equal, harmonious, and friendly workplaceenvironment.
Guarantee of Working Conditions
Keystone Electrical has formulated the Employee Compensation Management Measures, Employee PerformanceManagement System and other systems, and followed the remuneration distribution principles of "distributionaccording to work, equal pay for equal work, reward for hard work and penalty for laziness, and gradual increase.The remuneration and incentive mechanism has been constantly improved, so as to better retain and motivatetalents, improve the Company's overall performance and core competitiveness.The Company firmly rejects the deduction of wages due to gender, provides competitive remuneration for allemployees, and pays them in full and on time. Meanwhile, the Company ?rmly believes that setting reasonable andfair remuneration is an important part of the industry-leading remuneration incentive system to ensure the decentlife needs of employees, and reward employees for assuming work responsibilities and creating value.
Remuneration Incentive Management
In 2023, the Company employed a total of
employees, including
ethnic minorityemployees and
disabled employees; The labor contract signing rate was
100%.
2023 Employee Structure
In order to enable all employees to get a reasonable rest, the Company requires the managers not to force employeesto work overtime in any form or under any pretext, nor to punish employees who do not work overtime for anyreason. The Company does not encourage overtime work. If overtime work is necessary under special circumstances,it must be properly arranged on the premise of protecting the health and willingness of employees; at least one dayof rest should be arranged per week.
Reasonable Working Hours
The Company strictly prohibits sexual harassment or other discriminatory harassment incidents. When subject tonoticing sexual harassment, threatening, discriminatory harassment and other vicious incidents, employees canreport to the head of the department and the Human Resources Center to protect themselves from discrimination,abuse, destruction, persecution and other malignant workplace incidents.
Anti-harassment and Anti-abuse
Above 5040~5030~40Below 30
Employee AgeDistribution(Persons)
EmployeeEducation(Persons)
Bachelor degree or aboveJunior collegeBelow junior college
EmployeeGender Structure(Persons)
Male EmployeesFemale Employees
416381201580
Key Performance
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Environmental, Social and Governance （ESG）Report
Furthermore, the Company continuously improves the departmental recommendation and internal employmentmechanism, and has formulated the Human Resources Control Procedure. The quali?cations and skill requirementsof each position are specified, and employees are encouraged to participate in internal job competition androtation, so as to promote the benign mobility of the excellent internal talents. Meanwhile, the Company has setup the professional and management dual-channel development and promotion pathways, and provided moreequitable promotion opportunities for all types of talent while taking into account the skills of each employee andtheir own contribution. The talent pool of Keystone Electrical has been constantly improved, and long-term careerdevelopment space has been built for employees to achieve long-term common development of talents and theenterprise.
In 2023, the company will have 19 reserve talents passed the assessment and 7 promoted employees;from 2022 to 2023,143 employees have passed internal recruitment / department recommendation.
Channels of Internal Talent Flow
Figure: Career Development Pathways
Keystone Electrical regards employees as its ?rst treasure, and has formulated the Employee Career DevelopmentPlanning, Reserve Talent Cultivation System and other systems, established and improved the reserve talentcultivation mechanism. The heads of all departments are taken as the responsible person of the training plan to trainthe reserve talents in the whole cycle. Through the talent training and development plan, the reserve talent teamcan be reasonably built, so as to promote the construction of the Company's talent echelon and provide humanresources guarantee for sustainable development.
Talent Pool Development
Overall Goal of Reserve Talent Training
The Company has set up a complete evaluation system for the reserve talents. Through the reserve talent skillevaluation table, the reserve talents are evaluated and scored in an all-round way from the probation period,the regular period, multiple training periods, the target position period. Those rated 80 points and above will beconsidered quali?ed. This is to scienti?cally and reasonably retain the valuable talents who progress together withthe Company.Reserve Talent Evaluation System
Recruitment ofManagementTrainees
ProbationPeriod
RegularEmploymentPeriod
SegmentedEvaluation
Realizationof TrainingObjectives
Competencyassessmentby the head ofdepartment
(50%)
Examinationpaperassessment(20%)
360°evaluation
(15%)
Debrie?ngreview (15%)
Assessment
Score
DepartmentalRecommendation
InternalRecruitment
Nomination by the department, joint assessment by the Personnel Department andrelevant departments.Requirements put forward by the user department, internal recruitment informationrelease by the Human Resource Department, and uni?ed interview and assessment.
About ManagementAbout Marketing
About EngineeringTechnologies
AboutProductionStrategy
Layer
11Chairman---BusinessLayer
10General ManagerGeneral Manager--
Deputy General Manager/
Director
Deputy GeneralManager/Director
Deputy Technical Director/
Superior Expert
-
BackboneLayer
8Department ManagerDepartment Manager
Department Manager/
Senior Expert
-
Deputy DepartmentManager
Deputy DepartmentManager
Product Manager
SuperiorTechnician
Workshop Director/Section Chief/Supervisor
Section Chief/Supervisor
Chief Engineer
SeniorTechnician
Deputy WorkshopDirector/Principal
Specialist
Principal SpecialistSenior EngineerTechnician
Line Supervisor/TeamLeader/Senior Specialist
Senior Merchandiser/Salesperson
Engineer
SeniorTechnician
ExecutionLayer
3Intermediary Specialist
IntermediaryMerchandiser/Salesperson
Assistant Engineer
IntermediaryTechnician2Junior Specialist
Junior Merchandiser/Salesperson
Technician
JuniorTechnician1EmployeesEmployeesEmployeesEmployees
Layer
Series
Furthermore, the Company has set up an incentive measure based on the annual outstanding employee selectionand recognition, giving the annual employee trophies and bonuses, and setting an excellent example for allemployees, encouraging employees to persevere in the pursuit of personal development and unswervingly promoteteam progress. In 2023, the Company commended a total of 27 outstanding employees in various departments.
Key Performance
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Environmental, Social and Governance （ESG）Report
Keystone Electrical has always been concerned about the growth of employees, and has formulated the TrainingManagement System, Education and Training Control Procedure and other system documents. A sound talenttraining system has been established, and incorporated into the various stages of development of all employees.The Company flexibly carries out basic skills training for various positions and comprehensive quality trainingfor management personnel online and offline in the forms of internal lecturers, external lecturers and expatriatetraining. Through practical operation, assessment and other means, the Company ensures that employees fullygrasp knowledge and skills, give full play to their potential, so as to realize the common growth with the employees.
Employee Training System
·Induction Training·Safety Training·Pre-job Training (including job transfers)
·On-the-job Training·Management Skills Training·Personal Development Training· Training of Operators in Special Types of Work
Training System of Keystone Electrical
In February 2023, the Company held new employee induction training which mainly involved attendance and workdiscipline management regulations, quality policies and safety policies, health and hygiene, site management. Thetraining was to deepen the understanding of the new employees of the Company, so that they could consciouslyabide by the rules and regulations of the Company and accept the corporate culture. After the new employeeinduction training, the Human Resource Department and the employment department conducted a joint evaluationto ensure that new employees have the knowledge and skills relevant to their job responsibilities. The training wasdelivered in 1 hour and a total of 123 employees participated in the training and evaluation.
Conducting New Employee Training to Accelerate Integration into Keystone ElectricalCase
In June 2023, the Company offered a 6-day theoretical and practical training course, covering safety and quality,equipment management, power tool manufacturing expertise, power tool manufacturing equipment, tool operationand commissioning (practical operation), power tool assembly process (practical operation), and power toolworkpiece measurement (practical operation). More than 230 assembly employees participated in the training,of whom 100 obtained the Certi?cate of Senior Power Toolmaker and 96 obtained the Certi?cate of Senior BenchWorker.After the training, the Company conducted a survey on training suggestions in terms of course content, courseprofessionalism, teaching skills and style, etc. The assemblers who participated in the training gave an average scoreof 8.5 points.
Conducting Assembly Employee Skills Training to Improve Professional Skill LevelCase
| New Employee Training and Evaluation | Skills Training for Assemblers | Assembler Training and Assessment Site |
In 2023, the Company worked with Times Bright CreSuccess for externaltraining. Middle and senior cadres, reserve cadres, key employees and otherpersonnel learned such courses as Overall Solution of Talent Managementbased on Competency, Enterprise year-end Accounting and Tax Handling Skillsand Risk Prevention, Benchmark Improvement and System Implementationfrom Strategy to Execution, Enterprise Process Planning and SystemConstruction Practice. The management cadres have been further empoweredto improve the Company's comprehensive management level. A total of 29employees participated in this training series.
Working with External Training Experts to Empower Cadres to Manage and Increase E?ciencyCase
Management Cadre TrainingTimes Bright CreSuccessLeadership Empowering Training
Certi?cate
Training System of Keystone Electrical
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Environmental, Social and Governance （ESG）Report
In 2023, the Company completed 153 training sessions of 525 hours, including 45 trainingsessions on production line 6S, and skill recognition of pliers.
In 2023, the total number of employees entitled to maternity leave in the Company came up to 314,and the rate of return to work from maternity leave was 100%.
Employee Rights and Bene?ts
Adhering to the people-oriented principle, Keystone Electrical makes every effort to protect the legal rights andinterests of its employees and their basic legal benefits. The Company also strives to make every effort to createvarious special benefits, cares for female employees, and assists groups in difficulties. Meanwhile, the Companyattaches importance to the voices of the grassroots employees, and constantly improves its level of democraticmanagement, responds to the requirements of the employees in a timely manner, enhances their satisfaction andsense of belonging, and strengthens their cohesion.
Keystone Electrical steadily advances democratic management and emphasizes democratic communication toensure that the right of all employees to freely reflect their opinions is not interfered with. The Company has setup the Chairman's Mailbox in each department and workshop, and publicized the report mailbox and complainthotline for the employees, so as to strengthen the communication between the management and the employees.The Company has set up a party branch, a labor union and a red mediation room to collect employees' opinions orsuggestions and submit them to the corporate leaders and ?ght for the due rights and interests of employees.
In order to improve the level of employee bene?ts, Keystone Electrical stipulates the content of employee bene?tsin the Employee Handbook, and gives away gifts to employees to thank them for their work in Mid-Autumn Festival,Spring Festival and other festivals, so as to better stimulate the employees' sense of belonging and enthusiasmfor work. Meanwhile, the Company attaches great importance to the physical and mental health of its employees,and enhances their sense of well-being from all aspects of life by setting up employee canteens and dormitories,advocating a positive and healthy lifestyle, providing convenient sports venues, and actively organizing educationaland diversified employee activities to help employees relieve their psychological pressure and build a positivemindset.Democratic Management of Employees
Employee Bene?t Activities
Employee Representation Work?ow
Employee Bene?ts
In 2023, the representative of the Company's Trade Union reported to the management the requirements forimproving the employees' accommodation environment. The management requested the Human Resources Centerto implement the suggestions of the Trade Union representative as soon as possible, and the logistics managementsta? to fully cooperate with the Human Resources Center in the relevant work. The management was responsible forchecking the implementation.
Regular Communication with Management on Employee Matters and Active Promotion ofDemocratic Employee ManagementCase
Collection of commentsand suggestions
Fact investigation
Presentation of information and
claims to the management
Release of the handling results to the employee who
made the comments
Regular routine meetings held by the management
· Employees who need to stop working and wait for materials due to production arrangements or lack of raw materialsare entitled to a daily allowance for waiting for materials at the minimum wage rate upon con?rmation and approval.· Enjoy statutory holidays, paid annual leave, maternity leave, breastfeeding leave, marriage leave, funeral leave, etc.· Supplementary bene?ts such as year-end bonus, post allowance, and heatstroke prevention allowance.· Three festivals (Spring Festival, Dragon Boat Festival and Mid-Autumn Festival), March 8, working meals, rewards for
employees' outstanding children, reimbursement of round-trip tickets for employees from other provinces during theSpring Festival, and settlement of di?culties in schooling for children of employees from other provinces, and otherbene?ts provided by the Company.
Key Performance
Key Performance
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Employee Canteen｜A new canteen was opened in April with more than 10 breakfast o?erings (including 5
Chinese food o?erings) per day, and the next week's menu is announced in advance every Sunday.
Bene?ts on Mid-Autumn
Day
| Red Packet for Resumption of Work | Giveaways on Chinese New Year's Eve | Bene?ts on Mid-Autumn Day | Employee Dormitory | ||||||
In August, 2023, Wucheng District Federation of Trade Unionssent the summer cooling consolation goods to the Company'sgrass-roots employees to show care for the majority of theworkers sticking to their posts in the hot summer. The Chairmanof the Company's Trade Union arranged for the members todistribute materials for the front-line employees, and affirmedthe spirit of the front-line employees not afraid of the hot summerand sticking to their post, and told them to have proper heatprevention and cooling, and e?ectively protect their own safetyand health while working in high temperature weather.
Wucheng District Federation of Trade Unions Visited Employees, and Cared for Heat StrokePrevention of Employees
Case
After learning that an employee of the Warehousing Sectionof the Material Control Department had a sudden accidenton December 25, 2023, the Human Resources Center issue a"Donation Initiative" to all employees. On December 28, themanager of the Warehouse Department sent condolencesto the employee with difficulties and gave away the fundsraised on behalf of all employees. Through this donation,all members of Keystone Electrical take practical actions tointerpret the selfless love of one big family and helping eachother, bring timely care to the employee with di?culties, andhighlight its responsibility and unity in times of crisis.
Gather the Strength of All Employees to Raise Funds for the Employee with Di?cultiesCase
In September 2023, the Company held the Employee Fun Games, enriching the cultural and sports activities of theemployees. The participating employees made concerted e?orts to take part in such competitions as Crab RunningRelay Race, Walking Forward, Needle Threading, Giant Bouncing Ball and so on. The fun games not only exercised theemployees' body, but also further enhanced the team cohesion, and injected new vitality for corporate development.
Organizing Fun Games to Enrich Employees' Cultural and Sports ActivitiesCase
The Chairman of the Trade Union sent cooler
giveaways to employeesAt the Fun Games
As the Spring Festival approaches, the Company's leaders andofficials from Wucheng District Human Resources and SocialSecurity Bureau visited the employees' families in Mapu Town,Luyi County, Zhoukou, Henan Province. Supplies were broughtto these employees' families to show the care of the Company.At this visit, the Company talked with the employees' families,introduced the enterprise and employees' work performancein detail. Through WeChat video, the employees shared thejoy of their upcoming return with their families, which furtherenhanced their sense of belonging.
Visiting Employees' Families and Giving Them WarmthCase
At the Fun GamesLeaders of the Company Visited the Employees'
Families
Leaders of the Company Visited the Employees'
FamiliesRaise Funds for the Employee with Di?culties
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Occupational Health and Safety
Occupational health and safety is not only important for the well-being of employees, but also for attracting andretaining talent, managing human resources e?ciently, and ensuring the smooth running of business. In accordancewith local regulations and the requirements of ISO 45001: 2018 Occupational Health and Safety Management Systemand BSCI, the Company has prepared the Management System for Labor Protection Products. The risk investigationof occupational disease risk positions andemployee physical examination for occupational diseases have beenorganized, constantly improving the safety of the workplace and living quarters, and ensuring the work safety of allemployees.
Methods for Management of Employee Occupational Health and Safety
The Company has formulated Canteen Management Measures and Dormitory Management Measures for rigoroussafety management of drinking water and canteen food and beverages. The dormitory facilities have been constantlyrenovated to enhance the living and dietary safety of employees. Furthermore, experts have been invited toconduct health and safety lectures and provide public health checkups, annual employee physical examination tocomprehensively protect the occupational health and safety of employees.Board and Lodging Safety Management
In 2023, the Company had 20occupational disease positions, and 20 employees took the occupationaldisease physical examination, generating an occupational disease physical examination rate of 100%.The Company had 9 work-related accidents.
In February 2023, the Company invited doctors fromCiming Health Checkup Center to hold a seminar onSequelae of Influenza and Mental Health, and thedoctors gave professional answers to the questions ofthe employees.
In April 2023, the Company invited doctors from JinhuaOphthalmology Hospital to carry out free eye healthcheckups and ophthalmology consulting services forthe employees. The doctors patiently conducted eyehealth checkups for every employee who came forthe checkups, so that everyone could have a clearerunderstanding of his/her own eye health conditions. Thedoctors also carefully analyzed and explained the resultsof the checkups and gave the corresponding professionaladvice to each person.
Conducting Health Lectures and Providing Public Health CheckupsCase
Certi?cate of ISO 45001 Occupational Health and Safety Management SystemHealth Lecture
Health LecturePublic Bene?t Consultation
Food Safety and Security
Special types of work and labor protection products
Dormitory environment renovation
·Food suppliers are fully licensed;·Food samples are kept for inspection at each meal;· Canteen employees hold a health certi?cates and wearoveralls on duty;· The venue is clean and hygienic, and tableware is strictlycleaned and sterilized;· Organize monthly cross-departmental health inspection, andimplement more than 30 corrective actions.
· Those engaged in special types of work must be licensed and subject to quali?ed pre-job training before theyare allowed to work.· Employees must wear labor protection products in accordance with the regulations, and use correctlywhereever and whenever needed. Warehouse workers entering the shelves must wear safety helmets.
·Slip-resistant bathroom renovation:
· Banning open-?ame stoves: reducing ?rerisks in dormitories.
Key Performance
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Creating a Win-WinSituation TogetherPracticing Social Mission
Based on the principle of mutual benefit and win-winsituation, Keystone Electrical actively works with theoutside world, builds close partnerships with universities,and constructs an efficient and co-prosperous industryenvironment. Bearing in mind its social responsibility, theCompany organizes public welfare activities, responds torural revitalization, gives back to society and contributesto the construction of a better society.
Our Actions
Philosophy
Leading industry exchangesRevitalization of rural development
SDGs Benchmarking
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Leading Industry Exchanges
Promoting industry co-construction and sharing is the direction of Keystone Electrical's efforts. As an enterprisefocusing on innovation, the Company values technology sharing, enjoys industry exchanges, carries out industry-academia-research cooperation based on cutting-edge technology, joins hands with all parties to help industrialupgrading, and makes progress together with industry partners.
The development of the industry cannot be separated from the mutual collaboration and support of all partiesin the ecosystem. Keystone Electrical has always been committed to building stable, good and sustainablepartnerships, focusing on in-depth exchanges and collaboration with industry partners and academic institutions,extensive participation in industry exchanges. The Company also actively joins the industry associations, seizesnew opportunities for industrial development, and works with industry partners to promote the high-qualitydevelopment of the entire industry hand in hand.
Highly stable reciprocating saw with frame structureThird Prize of the 10th Jinhua Industrial Design Structure
Competition
Energy E?cient Lithium-ion Brushless DC Mini
Electric Circular SawSecond Prize of the Ninth Jinhua Industrial Design Structure
Competition
Furthermore, the Company actively participates in industry competitions, successively winning the Golden IDEAIndustrial Design Award with its strong R&D strength. Strengthening industry exchanges and sharing results with theindustry is of positive signi?cance to enhancing the Company's creative design ability.
In-depth Integration within the Industry
Positions Held by Keystone Electrical in Associations
Awards Won at the Golden IDEA Industrial Design Award
In order to promote the continuous innovation of the products, the Company focuses on the cooperation withuniversities and research institutes, and builds experts and postdoctoral workstations. Now the Company hasestablished industry-academia-research cooperation with Southeast University, Zhejiang Normal University, Xi'anUniversity of Technology, Xi'an Jiaotong University, Kunshan Innovation Research Institute, Xidian University,Shanghai Power Tools Research Institute. High-quality innovative talents can be stably transported to the Company,providing important guarantees for the Company to reserve technical elites, quickly set up expert level teams, andconsolidate the technical foundation.
Industry-academia-research Promoting Development
Aggregate university laboratoryequipment resource
Join hands with scienti?c and technologicalinnovation talents in universities
Rely on the theoretical andanalytical capacity of universities
Concept Model of Industry-academia-research Cooperation
S/NAssociationPosition Held
Power Tools Branch (Power Tools Specialized Association) of China
Electrical Equipment Industry Association
Member Unit
China Chamber of Commerce for Import and Export of Machinery
and Electronic Products
Member3China Association for Public CompaniesMember4Zhejiang High-tech Enterprise AssociationMember Unit5Listed Company Association of ZhejiangMember6Jinhua Quality AssociationCouncil Member
Jinhua International Chamber of Commerce, Jinhua Committee ofChina Council for the Promotion of International Trade
Member8Jinhua Capital Market Development Promotion AssociationMember Unit9Jinhua Human Resources Service AssociationMember Unit
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Industry-academia-research Cooperation of Keystone Electrical
In March 2023, the Company received the delegation of Chairman of Nanchang Jiaotong Institute. Both sides had anin-depth exchange on school-enterprise cooperation and reached a consensus on matters such as talent cultivationand resource sharing.
Meeting with Nanchang Jiaotong Institute, Reaching a Consensus on School-enterprise CooperationCase
In 2022, the Company paired up with Wuyun Village, Shafan Township, Jinhua, and donated RMB 50,000.
Charitable Donations to Wuyun Village in Support of Rural RevitalizationCase
Visit of Nanchang Jiaotong Institute Donation of RMB 50,000
Revitalization of Rural DevelopmentKeystone Electrical is aware that revitalizing the rural areas and benefiting the people's livelihood is its socialresponsibility. Combining its own characteristics and giving full play to its strengths and advantages, the Companyis devoted to social welfare undertakings, and helps rural revitalization through charitable donations, assistanceand other means in a rational and persistent manner. Over the years, the Company has been actively organizingand carrying out public welfare activities such as donating funds to schools, helping new rural construction andrevitalizing education. In the future, the Company will continue to output social value from multiple dimensions.While realizing its own economic value, the Company will give back to the society and help the country revitalize thedevelopment of the rural areas.
Southeast University· Industry-academia-research Cooperation of Keystone Electrical;· The collaborative project is titled Research on Anti-jamming Control Algorithm of Brushless Motor for PowerTools, which is dedicated to solving the problem of improving the control performance of brushless motorsystem without position sensor.
Xi'an University of Technology·Co-establishment of Zhejiang Postdoctoral Workstation;· The cooperation project is titled Development of Robot Loading and Unloading System for Turning of PowerTool Reducer Box, and the design scheme of the project has been completed.
Zhejiang Normal UniversityTwo cooperation projects:
·Cooperation project I: Software Maintenance Project for Enterprise Uni?ed Data Exchange Platform; the dataexchange platform has been o?cially put into use;·Cooperation project 2: Research and Development of a Highly E?cient Cutting Reciprocating Saw; the projectis progressing according to plan.
Xi'an Jiaotong University·The cooperation project is Development of Direct-drive Switched Reluctance Motor and Controller for CuttingMachine; the second round of prototype installation test has been completed.
Kunshan Innovation Research Institute, Xidian University· The Company has invested and established a wholly-owned subsidiary in Kunshan, and carried out matching,negotiation and exchange visits with Kunshan Innovation Research Institute, Xidian University to jointlyupgrade its products.
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Performance in 2023
Disclosure ItemUnit202120222023
Corporate OperationEconomicindicator
Total assetsRMB 10,00044,482.3046,043.24 83,183.23Operating incomeRMB 10,00080,564.44 59,793.89 58,629.32Net pro?t attributable toshareholders
RMB 10,0006,749.29 5,911.98 5,140.93Total tax payment RMB14,716,285.60 12,658,832.72 11,938,902.14
Corporate GovernanceNumber of general meeting of stockholderstimes334Number of general meeting of stockholderstimes4512Number of members of the board of directorspersons999Disclosure bygender
Male directorpersons888Female directorpersons111Disclosure bytype
Independent directorpersons333Executive Directorpersons666Number of meetings of the board of supervisorstimes4510Number of meetings of the StrategicDevelopment Committee
times113Number of meetings of Audit Committeetimes447Number of meetings of Nomination Committeetimes122Number of meetings of Remuneration and
Appraisal Committee
times111
Business Ethics
Number of corruption proceedingspcs000Number of anti-corruption reportspcs000
Environmental ManagementEnergyconsumption
Total diesellitre300 280 240Total gasoline litre36,000 33,500 32,000Total purchased electricityKWh6,720,860 4,193,174 4,727,781
Disclosure ItemUnit202120222023Energyconsumption
Total purchased photovoltaic
power
KWh1,309,463 1,135,163 1,274,082Waterresourcesusage
Total amount of municipalwater purchased
ton20,222 20,677 23,752
PackagingMaterials
Total amount of packaging
consumables used
ton4,053,464.79 2,181,197.40 2,183,392.48Packaging material used: woodton51,802.52 36,630.00 40,860.00Packaging material used: total
plastic
ton199,117.27 139,342.86 153,753.39Packaging material used: totalamount of paper
ton3,731,813.68 1,967,999.96 1,949,010.12Packaging material used: Otherton70,731.32 37,224.58 39,768.97
R&D Innovation and Intellectual Property ProtectionR&DInnovation
Total R&D personnelpersons958879Total R&D investmentRMB 10,0002,425.20 1,954.13 2,079.44Intellectual
PropertyProtection
Total patents heldpcs140153159Total number of invention
patents held
pcs356Total number of new patents in
the year
pcs81411Total number of copyright
holdings
pcs111Responsible Marketing
Number of violations of anti-marketingcommunication regulations or voluntary codes
pcs000Supply chain management
Total number of supplierssuppliers118433580Total number of suppliers that signed the Code
of Conduct in the current year
suppliers6154522Total number of local supplierssuppliers5048403
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Environmental, Social and Governance （ESG）Report
Disclosure ItemUnit202120222023
Employee rights and interestsProportion of labor contract signing%100%100%100%
Employee satisfaction%100%100%100%Maternity
leave
Return rate after maternity leave
(Note 1)
%100%100%100%Employment and RetentionTotal number of employees persons922713797By gender
Male employeespersons467369416Female employeespersons455344381By age
Below 30persons26715520130-40persons27718820540-50persons240215241Above 50persons138155150By academicquali?cations
Bachelor degree or abovepersons565976Junior collegepersons120142141Below junior collegepersons746512580Number of ethnic minority employeespersons694439Number of disabled employeespersons777
Occupational Health and SafetyEmployeehealth
Number of employees inoccupational-disease-risk
positions
persons121920Number of employeesparticipating in physicalexamination of occupational
diseases
persons121920Safetyaccidents andpersonnel
Number of employment injury
accidents
case659Number of work-related deathspersons000
Note 1: Return rate after maternity leave = total number of employees actually returning to work at the end ofmaternity leave/total number of employees who should return at the end of maternity leave x 100
Index of Indicators
GRIStandards
DisclosureLocation
GRI 2: General DisclosuresG2-1Organizational detailsCompany OverviewG2-2
Entities included in the organization’s sustainabilityreporting
About This ReportG2-3Reporting period, frequency and contact pointAbout This ReportG2-6Activities, value chain and other business relationships
Company Overview、Regulating Supply
Chain ManagementG2-7EmployeesEqual Employment and RetentionG2-9Governance structure and composition
Solidifying Corporate Governance，Refer to
Annual ReportG2-10
Nomination and selection of the highest governancebody
Solidifying Corporate Governance，Refer to
Annual ReportG2-11Chair of the highest governance body
Solidifying Corporate Governance，Refer to
Annual ReportG2-12
Role of the highest governance body in overseeing themanagement of impacts
Solidifying Corporate Governance，Refer to
Annual ReportG2-14
"Role of the highest governance bodyin sustainability reporting"
The Pathway to Sustainable DevelopmentG2-16Communication of critical concernsThe Pathway to Sustainable DevelopmentG2-17
"Collective knowledge of the highestgovernance body"
Solidifying Corporate GovernanceG2-18
"Evaluation of the performance of thehighest governance body"
Solidifying Corporate GovernanceG2-19Remuneration policiesEmployee Training and DevelopmentG2-20Process to determine remunerationSolidifying Corporate GovernanceG2-22Statement on sustainable development strategyThe Pathway to Sustainable DevelopmentG2-27Compliance with laws and regulationsInternal Control and Risk ManagementG2-28Membership associationsLeading Industry ExchangesG2-29Approach to stakeholder engagementThe Pathway to Sustainable Development
GRI 201: Economic PerformanceG201-3
De?ned bene?t plan obligations and other retirementplans
Employee Rights and Bene?tsGRI 202：Indirect Economic PerformanceG203-1Infrastructure investments and services supportedRevitalization of Rural Development
GRI content indexStatement ofused
Zhejiang Keystone Electrical Co., Ltd has reported the information cited in this GRI content indexfor the period from January 1, 2023 to December 31, 2023 with reference to the GRI Standards.
GRI 1 UsedGRI 1: Foundation 2021
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Environmental, Social and Governance （ESG）Report
GRIStandards
DisclosureLocation
G203-2Signi?cant indirect economic impactsDriving Innovative Development
GRI 205: Anti-corruptionG205-1Operations assessed for risks related to corruptionStrict Adherence to Business EthicsG205-3Con?rmed incidents of corruption and actions taken
Strict Adherence to Business Ethics，Weweren't involved in such incidents.GRI 206: Anti-competitive BehaviorG206-1
Legal actions for anti-competitive behavior, anti-trust,and monopoly practices
Strict Adherence to Business Ethics，Weweren't involved in such incidents.GRI 207: TaxG207-1Approach to taxRefer to Annual ReportG207-2Tax governance, control, and risk managementRefer to Annual ReportG207-3
Stakeholder engagement and management of concernsrelated to tax
Refer to Annual ReportG207-4Country-by-country reportingRefer to Annual Report
GRI 301: MaterialsG301-1Materials used by weight or volumeOptimizing Resource ConservationG301-3Reclaimed products and their packaging materialsOptimizing Resource Conservation
GRI 302: EnergyG302-1Energy consumption within the organizationOptimizing Resource ConservationG302-2Energy consumption outside of the organizationOptimizing Resource Conservation
GRI 303: Water and E?uentsG303-2Management of water discharge-related impactsOptimizing Resource ConservationG303-5Water consumptionOptimizing Resource Conservation
GRI 306: WasteG306-1Waste generation and signi?cant waste-related impactsReducing Three-waste EmissionsG306-2Management of signi?cant waste-related impactsReducing Three-waste Emissions
GRI 308: Supplier Environmental AssessmentG308-1
New suppliers that were screened using environmentalcriteria
Regulating Supply Chain ManagementG308-2
Negative environmental impacts in the supply chainand actions taken
Regulating Supply Chain ManagementGRI 401: EmploymentG401-2
Bene?ts provided to full-time employees that are notprovided to temporary or part-time employees
Employee Rights and Bene?ts
GRIStandards
DisclosureLocationGRI 403: Occupational Health and SafetyG403-1Occupational health and safety management systemOccupational Health and SafetyG403-2
Hazard identi?cation, risk assessment, and incidentinvestigation
Occupational Health and SafetyG403-4
Worker participation, consultation, and communicationon occupational health and safety
Occupational Health and SafetyG403-6Promotion of worker healthOccupational Health and SafetyG403-7
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Occupational Health and SafetyG403-8
Workers covered by an occupational health and safetymanagement system
Occupational Health and SafetyGRI 404: Training and EducationG404-1Average hours of training per year per employeeEmployee Training and DevelopmentG404-2
Programs for upgrading employee skills and transitionassistance programs
Employee Training and DevelopmentGRI 405: Diversity and Equal OpportunityG405-1Diversity of governance bodies and employeesEqual Employment and Retention
GRI 406: Anti-DiscriminationG406-1Incidents of discrimination and corrective actions taken
Employee Rights and Bene?ts ，We weren'tinvolved in such incidents.GRI 408: Child LaborG408-1
Operations and suppliers at signi?cant risk for incidentsof child labor
Employee Rights and Bene?ts、RegulatingSupply Chain Management，We weren'tinvolved in such incidents.GRI 409: Forced LaborG409-1
Operations and suppliers at signi?cant risk for incidentsof forced or compulsory labor
Employee Rights and Bene?ts ，We weren'tinvolved in such incidents.GRI 414: Supplier Social AssessmentG414-1New suppliers that were screened using social criteriaRegulating Supply Chain ManagementG414-2
Negative social impacts in the supply chain and actionstaken
Regulating Supply Chain ManagementGRI 416: Customer Health and SafetyG416-1
Assessment of the health and safety impacts of productand service categories
Valuing Customer ServiceG416-2
Incidents of non-compliance concerning the health andsafety impacts of products and services
Valuing Customer Service，We weren't
involved in such incidents.GRI 417: Marketing and LabelingG417-1
Requirements for product and service information andlabeling
Imposing Rigorous Control on Product
Quality7980
Environmental, Social and Governance （ESG）Report
GRIStandards
DisclosureLocationG417-2
Incidents of non-compliance concerning product andservice information and labeling
Imposing Rigorous Control on ProductQuality，We weren't involved in suchincidents.GRI 418: Customer PrivacyG418-1
Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Valuing Customer Service，We weren'tinvolved in such incidents.
Reader FeedbackDear Reader,Greetings!Thank you very much for taking time out of your busy schedule to read the Environmental, Social and GovernanceReport of Zhejiang Keystone Electrical Co., Ltd. In order to provide you and other stakeholders with more valuableinformation and e?ectively promote the Company's ability and level of ful?llment of corporate social responsibility,we sincerely look forward to your comments and suggestions.Choice Questions (please tick in the appropriate box)What is your overall evaluation of this Report?Very Good □ Good □ Medium □ Relative Poor □ PoorHow are the report responses and disclosures to stakeholder concerns?Very Good □ Good □ Medium □ Relative Poor □ PoorHow do you think Keystone Electrical is doing in terms of economic responsibility?Very Good □ Good □ Medium □ Relative Poor □ PoorHow do you think Keystone Electrical is doing in terms of environmental responsibility?Very Good □ Good □ Medium □ Relative Poor □ PoorHow do you think Keystone Electrical is doing in terms of safety management?Very Good □ Good □ Medium □ Relative Poor □ PoorHow do you think Keystone Electrical is doing in terms of employee responsibility?Very Good □ Good □ Medium □ Relative Poor □ PoorHow do you think Keystone Electrical is doing in terms of community responsibility?Very Good □ Good □ Medium □ Relative Poor □ PoorAre the information, indicators and data disclosed in the Report clear, accurate and complete?Very Good □ Good □ Medium □ Relative Poor □ PoorDo you ?nd the organization and layout of this Report easy to read?Yes □ NoOpen-ended QuestionDo you have any comments or suggestions on the ful?llment of social responsibility by Keystone Electrical and thisReport?
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