Address：No.6 Anmin Road, Panyang Industrial Park,Huangdai Town,Xiangcheng Borough, Suzhou City.Tel：400-828-7377Website：www.jinhonggroup.com
ENVIRONMENTAL,SOCIAL,AND
GOVERNANCE REPORT
20232023
Stock Code 688106
About this ReportThis is the first environmental, social, and governance Report released to the public by Jinhong Gas Co., Ltd. (hereinafter referredto as the Jinhong Gas, group or we), which comprehensively details the group’s environmental, social and governance practicesand performance in 2023 based on the principles of objectivity, standardisation, transparency and comprehensiveness.
Scope of ReportThis report covers Jinhong Gas and subsidiaries/branches under its control, Unless specified otherwise, the scope is consistentwith that of the group’s Annual Report.
Time Range
This is a report covering the period from January 1, 2023 to December 31, 2023 (the "reporting period"). For the purpose of makingthe report more comparable and forward-looking, some of the content appropriately refers back to previous years or hasforward-looking descriptions. This report is issued on an annual basis, consistent with the financial year.
Compilation BasisSelf-Regulatory Guidelines No. 1 for Companies Listed on Shanghai Stock Exchange——Standardized Operation(Revised in December 2023)Self-Regulatory Guidelines No.2 for Companies listed on the STAR Market of Shanghai Stock Exchange-Voluntary Information DisclosureGuidelines on China’s Corporate Social Responsibility Reports (CASS-ESG 5.0)Sustainability Reporting Standards (2021 version) released by the Global Reporting Initiative (GRI)Sustainable Development Goals of the United NationsSustainability Accounting Standards Board (SASB) StandardsThe Guidelines on Corporate Social Responsibility of State-owned CompaniesRecommendatlons of the Task Force on Climate-related Financlal Disclosures (TCFD)
Data Interpretation
The sources of data used in the report include the original data of the Jinhong Gas's actual operation, public data fromgovernment departments, annual financial data, relevant internal statistical statements, third-party questionnaires and interviews.The financial data in this report is denominated in CNY, and in case of any inconsistency with the financial report, the financialreport shall prevail.
Reliability
The Board of Directors of the group approved this report on March 25, 2024 in conjunction with the annual report. The Board iscommitted to overseeing the content of the report and ensuring its freedom from misrepresentation or misleading statements. Itis also responsible for ensuring the truth, accuracy, and completeness of the content.This report is published in Chinese. The English version shall been translated from the Chinese version and in case of anydiscrepancy between the two versions, please refer to the Chinese one.
Access to the ReportThe report can be viewed and downloaded from the official website of the Jinhong Gas (www.jinhonggroup.com) and ShanghaiStock Exchange (www.sse.com.cn).
01 02
Governance StructureReturns to ShareholdersInvestor Rights and InterestsInformation DisclosureRisk ManagementBusiness EthicsInformation Security ManagementGuidance of Party Building
Environmental ManagementEnergy ManagementEnvironmental Impact ManagementEcological Conservation
R&D Innovation and IP ManagementQuality ManagementIntelligent ManufacturingSafe ProductionCustomer Service
Employee StructureTalent IntroductionEmployee Rights and InterestsSalaries and BenefitsEmployee Training and DevelopmentEmployee Health
Supplier ManagementStrategic CooperationGlobal ExpansionIndustry Co-construction
Care for the Next GenerationPublic Welfare Activities
| 02 | 04 | 06 | ||
| 01 | 03 | 05 |
Compliance, the basisof our corporate governance
Environment, the important partof building ecological civilization
Excellence, the ultimate pursuitof quality development
Cooperation, the common pathto achieve sustainable goals
Responsibility, the commitmentto our social contribution
Talent, the strong foundationof our company
Look forward to the Future
Appendix
CONTENT
About this ReportContentMessage from the ChairmanHighlights of SustainableDevelopment in 2023About Jinhong GasSustainability ManagementTopic: Green Mission for theGas Industry
03 04
Message from the Chairman
Focusing on sustainable development is the eternalpursuit of the Jinhong Gas. The group firmlypractices the concept that “clear waters and greenmountains are invaluable assets", actively responds tothe goals of “peaking carbon emissions andsubsequent carbon neutrality", abides by internationalstandards, effectively fulfils its social responsibility,and lays the cornerstone of green development. In themarket competition, the group takes sustainabledevelopment as a guideline, continuously improvesthe quality of products and services, optimises thebusiness structure, contributes to achievingsustainable development goals, and collaborativelybuilds a better future.
Looking back at the past, the group has taken solidsteps on the path of intelligent transformation,actively responding to the innovation-drivendevelopment strategy, transforming industries withdigital technologies, and continuously improved theintelligent level. At the same time, it proactivelydelves into sustainable practices and exploredapplication of renewable energy, and has laid a solidfoundation for realising eco-friendly production andlow-carbon development.Maintaining ecology is the solemn commitment ofthe Jinhong Gas to the future. The group adheres tothe concept of green development and integratesenvironmental protection into every aspect ofdevelopment. It has strengthened environmentalmanagement and rigorously controlled environmentalpollution in the production process to ensure thatwaste gas, wastewater, waste residue and otherpollutants discharged up to standard, while usingenvironmentally-friendly processes to minimizeproduct impact on the environment.Striving for excellence is the power source of theJinhong Gas's continuous breakthrough. The group
focuses on innovation-driven development, improvesthe quality control mechanism, constantly launchesnew products and services with marketcompetitiveness to meet the diversified needs ofcustomers. As a leading environmentally-friendly,intensive and comprehensive gas service provider in
China, it will continue to increase investment, activelyexplore new technologies and fields, and endeavour tobecome a leader in the green and low-carbon sector.Hand in hand, Jinhong Gas embarks on the road tosustainable development. The group collaborates withpartners, industry associations, government departments,and other stakeholders to promote the sustainabledevelopment of the industry. Additionally, the groupparticipates in environmental protection initiatives,promotes green living, and supports the development ofgreen industry chains.Attaching importance to talent is the key to corecompetitiveness of the Jinhong Gas. The group isdedicated to increasing investment, establishing acomprehensive training system, and providing employeeswith ample development opportunities. It aims to foster aninclusive and innovative culture and encourage activeparticipation in sustainable development practices. Thecommitment is to cultivate an outstanding team with astrong sense of sustainable development to create abrighter future.Taking responsibility is an important guarantee for theJinhong Gas to win the trust of the society. The groupmaintains a strong sense of social responsibility and fulfilsits obligations as a corporate citizen. It also supports socialwelfare initiatives and actively participates in povertyalleviation, education support, and other activities tocontribute to the development of society.In the forthcoming voyage, embracing the concept ofsustainable development, the group will relentlesslyadvance intelligent transformation and the research,development and application of clean technologies. We willintensify our commitment to legal compliance, fortify ourendeavors in eco-conscious construction, elevate thequality of our products and services, propel the trajectorytowards high-quality development. Hand in hand with ourpartners and stakeholders from all walks of life, we willcollectively foster sustainable evolution of the industry,lending greater impetus to the realization of the vision of aBeautiful China. With unwavering determination, we’ll strivefor a brighter tomorrow!
Message from the ChairmanJinhong Gas Co., Ltd.
05 06
Highlights of SustainableDevelopment in2023
EconomicPerformance
EnvironmentPerformance
Governance Performance
Industrial Performance
EmployeePerformance
Investment in Environmental Protection
Shareholders' General Meetingtimes
R&D Investment
itemsPatents GrantedQuality Internal AuditSecurity Investment
Coverage of SocialInsurance and HousingProvident Fund?Employee WelfareExpenses
Coverage of NewEmployee Training
Training Investment
Coverage of Safety Training
Completed Internal Audit Projects
items
Coverage of Employee Anti-Corruption Training
Investor CommunicationIntegrated Energy Intensity
Water Intensity
Greenhouse Gas Emission Intensity(Scope 1 and Scope 2)
#
$$
tonnes of standard coal per million CNY
7.42
tonnes per million CNY1,288.41
tCO2e per million CNY
27.77
times
%
Ten thousandCNY3,240.87
times
RevenueCNY 242,735.33 Ten thousandCNY 333.70 Ten thousand
CNY8,630.14 Ten thousand
CNY
178.03 Ten thousand
CNY4,670.96 Ten thousand
Net Income Attributable to Shareholders ofListed CompanyCNY 31,500.14 Ten thousandTotal AssetsCNY 623,965.93 Ten thousandTotal Tax Payment(excluding personal income tax)CNY 17,807.94 Ten thousand
%
100%
100%
Highlights of Sustainable Development in 2023Jinhong Gas Co., Ltd.
07 08
About Jinhong Gas
Group ProfileFounded in 1999, Jinhong Gas is a safety-focused, eco-friendly, andcomprehensive gas service provider specializing in gas research anddevelopment, manufacturing, sales, and service. Its headquarters are locatedin Panyang Industrial Park, Huangdai Town, Xiangcheng District, Suzhou.Jinhong Gas was listed in June 2020 (688106) on the STAR Market. Afteryears of development, Jinhong Gas has established over sixty subsidiaries,paving the way for the group to embark on a path of group operations.Jinhong Gas is dedicated to establishing itself as the first national brand inthe gas industry and delivering exceptional value to its customers.
09 10
Development History
The First Five-Year Plan1999~2004
The Second Five-Year Plan2005~2009
The Third Five-Year Plan
2010~2014
The Fourth Five-Year Plan2015~2019
In 1999, the group was established based on the formerSuzhou Liquid Oxygen Manufacturing Plant. During thisphase, the main products were bulk gases such asoxygen, nitrogen, argon, and acetylene. It establishedsmall air separation production units in Suzhou andacquired some gas production assets in Suzhou fromL'Air Liquide. By continuously expanding its marketpresence, it had gradually established a sales andservice network.
In 2010, the group officially launched the production andoperation of 7N electronic-grade ultra-pure ammonia.Following this, in 2012, it invested in the construction of anatural gas-to-hydrogen project. In 2013, the testing centerhad been accredited as a CNAS-approved laboratory,significantly enhancing its quality control capabilities.During this phase, the group continuously enriched itsproduct range and significantly strengthened its productquality, detection technology, research and developmentcapabilities, and service capabilities. With the listing of thegroup on the New Third Board in 2014, both brandawareness and corporate image were elevated.
Listed on the STAR Market, Stock Code: 688106Awarded the "small giant" enterprise, "?the?13th Five-YearPlan" gas industry leading enterprise"?the?13th Five-YearPlan" gas industry innovative enterprise, Jiangsu Provincefour-star cloud enterprise. "a device for recovery andpurification of nitrous oxide" won the gas industry patentprize award.
In 2005, the group constructed its first dry ice production line,thereby expanding the application areas of carbon dioxide. In2009, it invested in the construction of a carbon dioxiderecovery project with an annual production capacity of100,000 tons. Also in 2009, it completed the shareholdingreform, which led to an enhancement of its corporategovernance structure. During this phase, the groupcontinuously diversified its product offerings and embarked ona business model emphasizing the circular economy andexhaust gas recycling.
The group introduced the "Vertical & HorizontalDevelopment" strategy. In terms of vertical development, itfocused on independently developing and producing varioushigh-barrier specialty gas products, expanding theproduction capacity of ultra-pure ammonia multiple times,and establishing new projects such as high-purity nitrousoxide and hydrogen to accelerate the industrialization ofelectronic specialty gases. Regarding horizontal layout, itexpanded its operations across regions, deepening its rootsin the Yangtze River Delta market while planning to expandnationwide, establishing retail networks in the Pearl RiverDelta, Beijing-Tianjin, Sichuan-Chongqing, and other regions.
The Fifth Five-Years Plan2020~2025
2020
Achieved a breakthrough in the first electronic bulk carriergas project, and signed a supply contract with STIC.Acquired Haining lishen Oxygen, Hai'an Jixiang, Hai'anFuyang, Taizhou Guangming, Shanghai Shennan, ChangshaMande, Suzhou Qidu, Zhuzhou Hualong, and integrated bulkstorage and transportation facilities.Recognised as a Pilot Enterprise (AAA Level) for StandardImplementation of Jiangsu Province's Integration ofInformationization and Industrialization Management System(Upgraded Version) in 2021, and awarded SDRI (Specialized,Refinement, Differential, and Innovation) “Little Giant”enterprise of Jiangsu Province in 2021.
Officially changed its groups name to Jinhong Gas Co., Ltd.Acquired Suzhou Sutong.Awarded the titles of National Intellectual Property DemonstrationEnterprise, National Intelligent Manufacturing Demonstration Factory,Excellent Enterprise of Jiangsu Province in Science and TechnologyInnovation and Development, Jiangsu Manufacturing OutstandingContribution Award, Jiangsu Governor's Quality Award NomineeAward, and successfully became one of the Jiangsu InnovativeLeading Enterprises.Acquired Shanghai Zhenzhi, Shanghai Changhe and Shanghai Yiyang tointegrate medical oxygen sales channels in Shanghai area.Secured CSMC Electronics Bulk Carrier Gas Project, achieving the firstmature mass production FAB bulk gas station replacement in China.Successfully issued convertible bonds.Awarded the title of national "Green Factory" in 2022, Jiangsu May 1stLabour Certificate, Jiangsu 5A Civilized Unit, Internationally RenownedBrands that Jiangsu Province focuses on Cultivating And Developing,and Jiangsu Province Industrial Internet Demonstration Project Five-StarCloud Enterprise.
2021
2022
2023
Based in Suzhou, integrated resources andexpanded the market.
Breakthrough in high-end special gases andupgraded corporate governance.
Standardised management, high-qualitydevelopment of Jinhong Gas.
Expanded the gas category and enhanced thebrand influence.
Vertical and Horizontal layout to build the firstnational brand in the gas industry.
About Jinhong GasJinhong Gas Co., Ltd.
11 12
Organizational Structure
Jinhong Gas Co., Ltd.
Suzhou Jinhong Gas Co., Ltd. Wuzhong Branch
Qianjiang Runsu Energy Technology Co.,Ltd.Suzhou Sutong Liquefied Gas Co.,Ltd.Suzhou Green Island New Energy Development Co.,Ltd.Jiaxing Jinhong Logistics Co.,Ltd.Jinhong Gas (Jiaxing) Co.,Ltd.JinHong Gas(Vietnam) Co.,Ltd.Jiaxing Yaoyi Gas Co.,Ltd.Changsha Yihua Gas Co.,Ltd.Changsha Defan Gas Co.,Ltd.Changsha Jinhong Mande Logistics Co.,Ltd.Zhuzhou Hualong Special Gas Co.,Ltd.Chongqing Jinsu Transportation Co.,Ltd.Suzhou Qidu Fuel Liquefied Gas Co., LtdJiangsu Jinhua Long Gas Development Co.,Ltd.
JinHong Gas Holding Pte. Ltd.JinHong Gas (Singapore) Investment Pte. Ltd.Jinhong Gas (Pizhou) Co.,Ltd.Qingdao Jinhongrun Gas Co.,Ltd.Beijing Jinhong Electronic Materials Co.,Ltd.Huainan Jinhong Carbon Dioxide Co.,Ltd.Jinhong Gas (Xiamen) Co.,Ltd.Guangzhou Jinhong Electronic Materials Technology Co.,Ltd.Chongqing Xipeng Jin Hongrun Electronic Materials Co.,Ltd.Chongqing Xipeng Jin Hongrun Electronic Materials Co.,Ltd.Quanjiao Jinhong Electronic Materials Co.,Ltd.Jinhong Gas (Tianjin) Co.,Ltd.Hai'an Jixiang Gas Co.,Ltd.Hai'an Fuyang Acetylene Gas Co.,Ltd.Taizhou Guangming Oxygen Supply Co.,Ltd.Jinhong gas (Shanghai) Co.,Ltd.Haining Lishen Oxygen System Co.,Ltd.Shanghai Shennan Special Gas Co.,Ltd.Chongqing Jinhong Haige Gas Co.,Ltd.Changsha Mánd Gas Co.,Ltd.Su Xiang Cooperation Zone Jin Hong Run Gas Co.,Ltd.Shanghai Changhe Medical Gas Co.,Ltd.Shanghai Zhenzhi Gas Co.,Ltd.Shanghai Yiyang Medical Gas Co.,Ltd.Jinhong gas electronic materials (Huai'an) Co.,Ltd.Jishan County Mingfu Gas Co.,Ltd.Wuxi Jinhong Semiconductor Technology Co.,Ltd.Chongqing Jinsu Chemical Co.,Ltd.Suqian Jinhong Gas Co.,Ltd.Xi'an Weiguang Gas Co.,Ltd.Pingdingshan Jinhongpuen Electronic Materials Co.,Ltd.Suzhou Jinhong Gas Co., Ltd. Wujiang BranchSuzhou Jinhong Gas Co., Ltd. Huangqiao BranchSuzhou Jinhong Gas Co., Ltd. Yangchenghu BranchSuzhou Jinhong Gas Co., Ltd. Shanghai Pudong BranchXuzhou Jinhong Gas Co.,Ltd.Suzhou Wuzhong Jinhong Gas Co.,Ltd.Suzhou Jinhua Runze Energy Co.,Ltd.Solare Green Energy (Suzhou) Co.,Ltd.Suzhou Industrial Park Huanya Trading Co.,Ltd.Suzhou Jinhong Gas Technology Development Co.,Ltd.Kunshan Jinhong Carbon Dioxide Co.,Ltd.Zhangjiagang Jinhong Gas Co.,Ltd.Taicang Jinhong Electronic Materials Co.,Ltd.Suzhou Jinruijie Clean Technology Co.,Ltd.Suzhou Jinpao Electronic Technology Co.,Ltd.Suzhou Jinhong Logistics Co.,Ltd.Suzhou Jinhong Inspection and Testing Technology Co.,Ltd.Suzhou Jinhongrun Investment Co.,Ltd.Shanghai Xintouqiao Longshen Gas Sales Co.,Ltd.Shanghai Sudai New Materials Co.,Ltd.Shanghai Jinhong Runze Gas Co.,Ltd.Jinhong Gas (Qidong) Co.,Ltd.Jinhong Gas (Rugao) Co.,Ltd.
About Jinhong GasJinhong Gas Co., Ltd.
13 14
Jinhong Gas is a safety-focused, eco-friendly, and comprehensive gas service provider specializing in gas research anddevelopment, manufacturing, sales, and support. With over 20 years of experience in exploration and development, the group hasestablished a complete gas supply and service network with diverse categories, reasonable layout, and reliable distribution. Weoffer customers more than 100 types of gas products across three categories: special gas, bulk gas, and natural gas. Our productline includes ultra-pure ammonia, high-purity nitrous oxide, ethyl orthosilicate, and high-purity carbon dioxide, high-purityhydrogen and other special gases, electronic bulk carrier gases for the semiconductor industry as well as bulk gases and naturalgas for various industrial applications.
Business ProfileCorporate Culture
Vision
Build the first nationalbrand in the gas industry
MissionIntegrate intoeconomyDemonstrate nobletemperament
Values
Safety IntegrityDedication Innovation
About Jinhong GasJinhong Gas Co., Ltd.
15 16
Enterprise Honors
LevelsTitleNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalNationalProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincialProvincial
National Enterprise Technology CenterNational Post-Doctoral Research WorkstationNational SDRI (Specialized, Refinement, Differential, and Innovation)
“Little Giant” enterpriseNational Intellectual Property Demonstration Enterprise
National High-Tech EnterpriseNational Intelligent Manufacturing Demonstration Factory
National Green FactoryNational-Level Smart Manufacturing Excellence SceneNational Service-Oriented Manufacturing Demonstration Platform
Chinese Well-known TrademarkChina Patent Excellence AwardDemonstration Enterprises of China Industry-University-Research
Institute Cooperation InnovationInternationally Renowned Brands that Jiangsu Province focuses on
Cultivating and DevelopingJiangsu Province May 1st Labour CertificateNomination Award of Jiangsu Governor's Quality AwardThe New Round of Innovative Leading Enterprises in JiangsuProvince to Cultivate Action entering warehouse of EnterprisesJiangsu Province Industrial Internet Demonstration Project Five-Star
Cloud EnterpriseExcellent Enterprise with Outstanding Contributions “Made in
Jiangsu”Excellent Enterprise of Jiangsu Province in Science and Technology
Innovation and Development“Quality Benchmark” of Jiangsu ProvinceTop 100 Innovative Enterprises in Jiangsu ProvinceThe First Batch of Supply Chain Innovation and Application Key
Cultivation Enterprises in Jiangsu ProvinceJiangsu Engineering Technology Research Centre for Specialty
Gases and Adsorbents PreparationJiangsu High Purity Specialty Gases Engineering Centre
About Jinhong GasJinhong Gas Co., Ltd.
17 18
Sustainability Concept
The concept of sustainable development emphasises the comprehensive value of enterprises to the environment, society and theeconomy, and requires enterprises to pay attention to environmental protection, fulfil their social responsibilities actively, promoteeconomic development, and achieve a harmonious symbiosis between enterprises and society.Jinhong Gas adheres to the road of sustainable development, actively fulfils its social responsibility, strives to carry out the missionof sustainable development, continuously explores and optimises its portfolio of business, closely follows the concept of greendevelopment, and adheres to the road of safe, reliable, efficient and environmentally-friendly development, in an attempt to gaina firm foothold in the increasingly fierce market currents, and to achieve long-term growth.
Sustainability Goal
With the rapid acceleration of globalization and the relentless advancement of science and technology, sustainable developmenthas become an unavoidable topic. Corporate social responsibility and sustainable development capabilities can enable companiesto stand in the midst of the current of change.With reference to the Sustainable Development Goals of the United Nations(SDGs) and in conjunction with the actual situation ofthe group's operation, Jinhong Gas has formulated the management objectives related to sustainable development, which covereconomic, social, environmental and other aspects, pointing out the direction of future development and reflecting the group'scommitment to the global sustainable development.
Sustainability Management
DimensionManagement ConceptSDGsGovernance
Environmental
Industrial
Employee
Commonwealth
G
E
S
S
S
Compliance, the basis of our corporategovernance
Environment, the important partof building ecological civilizationTopic: Green Mission for the GasIndustryExcellence, the ultimate pursuit ofquality developmentCooperation, the common path toachieve sustainable goals
Talent, the strong foundation of ourcompany
Responsibility, the commitment to oursocial contribution
Sustainability ManagementJinhong Gas Co., Ltd.
19 20
Communication with StakeholdersBuilding mutual trust with stakeholders is the cornerstone of achieving a win-win situation. In today's era of competition andcooperation, Jinhong Gas prioritizes communicating with stakeholders, clarifying cooperation goals, formulating feasible plans,ensuring a balance of interests between both parties, and working together towards shared success.
The group values and continuously strengthens regular communication and participation with internal and external stakeholders,establishes various communication channels to promptly understand the opinions and suggestions of all relevant parties, identifies theESG priorities, and actively responds to the expectations and demands of relevant parties through continuous improvement of itsmanagement and practices. Stakeholders primarily include governments and regulators, shareholders and investors, customers,employees, suppliers, communities and others.
Expectations & DemandsExpectations & DemandsExpectations & DemandsExpectations & DemandsExpectations & DemandsExpectations & DemandsExpectations & DemandsExpectations & Demands
Communication & FeedbackCommunication & FeedbackCommunication & FeedbackCommunication & FeedbackCommunication & FeedbackCommunication & FeedbackCommunication & FeedbackCommunication & Feedback
Governmentand Regulators
ClientsEmployeesCommunitySuppliers
Investorsand Shareholders
Trade Associations
Professional Organisations
Media
Business EthicsEnvironmentalManagementEnergy Efficiency &Carbon ReductionWater ManagementCircular EconomyHealth & Safety
Product QualityManagementClients RelationshipManagementDigital IntelligenceTransformationCircular EconomyEnergy Efficiency &Carbon Reduction
Health & SafetyEmployee Training &DevelopmentEmployment PracticesDigital IntelligenceTransformation
EnvironmentalManagement &ComplianceWater ManagementEnergy Efficiency &Carbon ReductionHealth & SafetyCommunity Welfare
GovernmentCommunicationsInformation DisclosureDaily Communicationand ReportingListed Group Activities
Client visitsDaily communicationTechnical andProduct ExchangeMeetingsFactory VisitsCustomerSatisfaction SurveyCustomer TrainingE-mail & Tel
Employee RepresentativesMeetingEmployee ForumSuggestion BoxEmployee SatisfactionSurveyCorporate CultureActivitiesProposal ManagementRegular TrainingInternal PublicationGroup Media Matrix
Social WelfareActivitiesCommunity Monitoringand FeedbackEnvironmental RiskAssessmentIndustry TalentDevelopmentProgrammes
Supply ChainManagementProduct QualityManagementHealth & SafetyDigital IntelligenceTransformation
Corporate GovernanceRisk & ComplianceManagementBusiness EthicsDigital IntelligenceTransformationEnergy Efficiency &Carbon ReductionProduct QualityManagement
Science and TechnologyInnovation AchievementsQuality AssuranceStrategic Co-operationIndustry co-construction
Corporate GovernanceCommunity WelfareDisclosure ofInformation
Supplier TrainingSupplier Audit &MonitoringSupplier ExchangeMeetingsTechnology Exchangeand R&D Co-operationE-mail & Tele
General Meeting ofShareholdersInformation DisclosureInvestor HotlineOnline InteractivePlatformE-mail
ForumPromotional EventOther meetings
Group Official WebsiteGroup Media MatrixCommunicationConference
Sustainability ManagementJinhong Gas Co., Ltd.
21 22
Analysis of Substantive IssuesJinhong Gas analyses its own sustainable development challenges based on the disclosure guidelines of domestic and internationalsocial responsibility/sustainable development/ESG reports, the indicators of concern to domestic and international rating agencies,and the tracking analysis of relevant policies in the industry, establishes a mechanism for the identification of material topics, anddetermines the annual material topics every year through the analyses and researches of internal and external related parties.
Jinhong Gas identified and evaluated the importance of ESG material topics, categorized the key ESG issues. Using the importancelevel for both the group and stakeholders, it created a substantive issue matrix to outline the significant ESG topics.
Process for Identification of substantive issues
Substantive Issues
highImpact on the Group
Very highImpact on Stakeholders
Very high
SocialGovernance
Environmental
Policy and RegulationBenchmarking Study
Group Fundamental
Analysis
Industry Best PracticeBenchmarking
External PublicOpinion Analysis
R&D Management
Compliance
Business Ethics
Three Committees Structure
Information Disclosure
Information Security
Shareholders & Investors Protection
Party Building
Environmental Management
Addressing Climate Change
Energy Efficiency
Ecological Protection
Waste Management
Exhaust Gas Management
Water Management
DE&I
Employee Training &Development
Employee Welfare
Intellectual PropertyProtection
Community Welfare
Clients RelationshipManagement
Supply ChainManagement
Quality Management
Health & Safety
2021
Sustainability ManagementJinhong Gas Co., Ltd.
23 24
Topic
Green Mission forthe Gas Industry
Gas is crucial to the industry, playing a vital role in the national economy and various fields. As a key supportfor modern industry, the gas sector is essential for achieving sustainable development. The industry'scommitment to its green mission is not only a demonstration of corporate social responsibility, but also criticalto promoting sustainable development.
Jinhong Gas aims to be a pioneer in establishing a sustainable factory and become a leading advocate forenvironmental responsibility in the industry. Through continuous innovation and optimization of productionprocesses, Jinhong Gas strives to improve resource utilization, reduces energy consumption, and enhancesenergy efficiency. The ultimate goal is to achieve a low-carbon and green production process, setting anexample for the industry in sustainable development. In 2023, the National Ministry of Industry and InformationTechnology announced the 2022 Green Manufacturing List with Jinhong Gas being honored with the title of"National Green Factory".In order to achieve the goal of peaking carbon emissions and subsequent carbon neutrality, Jinhong Gas isactively promoting the development of a green circular economy and implementing a nationwide plan. Thegroup has established several tail gas recovery projects on site to recover gases such as hydrogen, carbondioxide, and nitrous oxide. By fully utilising these resources and utilising carbon dioxide and other tail gases invarious fields, it has demonstrated a circular economy, reduced overall carbon emissions, and effectivelypromoted China's progress towards carbon neutrality. During the reporting period, Jiaxing Jinhong CarbonCapture Project entered trial production, and the Huainan Jinhong Carbon Capture and ComprehensiveUtilisation Project was officially capped. The Carbon Capture and Utilisation Project can effectively promote thecommercialisation and utilisation of carbon capture technology. It can also promote the establishment of animproved carbon asset trading system, provide a more friendly development space for the popularisation andapplication of CCUS in China, and provide a strong technological guarantee for the realisation of the goals ofpeaking carbon emissions and subsequent carbon neutrality.
As a group committed to driving sustainable development, Jinhong Gas aims to enhance green manufacturingpractices by incorporating hydrogen energy. Hydrogen energy is a clean, carbon-free secondary energysource with widespread availability and diverse applications. It is pivotal in achieving significantdecarbonization and catalyzing the transition to sustainable energy sources. Jinhong Gas is capitalizing onindustry development opportunities by establishing a presence in the hydrogen energy market. It has createda comprehensive network integrating hydrogen production, storage, transportation, and refuelling.As of the end of the reporting period, Jinhong Gas has planned five hydrogen production plants in Suzhou,Chongqing, Zhangjiagang, Meishan, and Zhuzhou. The group's logistics ensures the quality, quantity, andsupply of hydrogen storage and transportation. It supplies hydrogen to refuelling stations in Jiangsu, Zhejiang,Shanghai, Sichuan, and Chongqing and provides hydrogen for hydrogen fuel cell vehicle demonstrationprojects, including fixed and skid-mounted refuelling stations for oil-hydrogen joint stations and"Gas-Hydrogen-Electricity Service" integrated refuelling stations, imultaneously exploring applications ofhydrogen electric bicycles, forklift trucks and drones.Looking ahead, Jinhong Gas will stay true to its founding mission and continuing to broaden its green missionboth vertically and horizontally. The group will collaborate with the industry to establish a low-carbonecosystem and contribute to the achievement of carbon neutrality. Jinhong Gas is committed to advancingthe green mission of the gas industry and making significant contributions to building a beautiful China andpromoting sustainable development.
25 26
Compliance,the basis of ourcorporate governance
Governance StructureReturns to ShareholdersInvestor Rights and InterestsInformation Disclosure
Risk ManagementBusiness EthicsInformation Security ManagementGuidance of Party Building
Compliance governance is essential for both sound enterprisedevelopment and modern corporate governance. In today'scomplex and volatile markets, integrating compliance and legalitythroughout the entire business management process is imperativefor achieving long-term success. Ensuring that the Group operatesin a standardised manner in accordance with the rule of law is notonly necessary for the sound development of the enterprise, butalso a demonstration of its responsibility to society and investors.
27 28
Corporate Structure
Corporate Structure
Governance Structure
Jinhong Gas adheres strictly to relevant laws and regulations, continuously improves its corporate governance structure, fulfils itsinformation disclosure obligations, and regulates its operations. It has established a corporate governance mechanism with cleardivision of powers and responsibilities that is scientific and efficient. Jinhong Gas conducts a thorough review of its Articles ofAssociation, rules of procedure for various committees, and other relevant documents to enhance corporate governance andestablish a strong foundation for sustainable and stable operations, as well as healthy and upward development.
Shareholders'General Meeting
Board of Directors
General Manager
Board of SupervisorsStrategy CommitteeRemuneration&Appraisal Committee
Nomination CommitteeAudit Committee
Electronic Specialty Gas Division
Bulk Gas Division
Cryogenic Express Division
Electronic Gas Division
Industrial Division
On-site Gas Production Division
Medical & Domestic GasDivision
Installation & After-salesService Dept.Gas Cylinder Inspection DivisionInternational Division
Rare Gases Division
Hydrogen Division
Carbon Dioxide Division
Quality Dept.R & D CentreProject Dept.
IT Dept.Production Dept.Procurement Dept.
Environmental & Safety Dept.
HR Dept.
Administration Dept.
Finance Dept.
Strategic Investment Dept.
Securities Dept.Law Dept.PID
Audit Dept.
Secretary of Board
GM Office
Compliance, the basis of our corporate governanceJinhong Gas Co., Ltd.
29 30
To effectively promote standardized corporate governance and ensure scientific decision-making, Jinhong Gas has established fourspecialized committees Audit Committee, Strategic Committee, Nomination Committee, and Compensation and AppraisalCommittee in accordance with relevant laws and regulations. These committees are accountable to the board of directors andperform their duties in accordance with the Articles of Association and the authorization of the board of directors. Meanwhile, JinhongGas has developed the Rules of Procedure for the Audit Committee of the Board of Directors ,Rules of Procedure for the Strategic Committee of theBoard of Directors,Rules of Procedure for the Nomination Committee of the Board of Directors and Rules of Procedure for the Remuneration andAppraisal Committee of the Board of Directors to guide the working details of the specialized committees.
The Shareholders’ General Meeting is the supreme authority of JinhongGas, making decisions on major matters and having extensivedecision-making power over the Group's operations and management.Jinhong Gas strictly complies with the requirements of relevant lawsand regulations and urges the Board of Directors to effectively performits duties and organise the general meeting of shareholders in aconscientious and punctual manner, so as to ensure that shareholdersexercise their rights in accordance with the laws and to ensure that allshareholders of Jinhong Gas, in particular the small and medium-sizedshareholders, are able to enjoy equal rights and fully exercise theirvoting rights.Jinhong Gas adopts a combination of on-site meetings and web-basedmeetings to facilitate the participation of investors in voting at generalmeetings. When the shareholders' general meeting considers significantmatters affecting the interests of small and medium-sized investors, thevotes of small and medium-sized investors shall be counted separatelyand disclosed publicly in a timely manner.
Shareholders’ General Meeting
The Board of Supervisors is the highest supervisory body of the Group and is responsible to the Shareholders’ General Meeting.Supervisors of Jinhong Gas actively attend the Supervisory Meetings, the Board of Directors and the general meeting of shareholders.In accordance with the relevant requirements of the Articles of Association and the Rules of Procedure of the Supervisory Committee,eachsupervisor diligently fulfills their duties, overseeing the legality and compliance of the production and operation, financial operations, aswell as the performance of duties by the directors and other senior management personnel. They also provide opinions on ourresolutions regarding major matters and safeguard the legitimate rights and interests of the group and its shareholders.
Board of Supervisors
The Board of Directors is responsible to the Shareholders’ General Meeting and serves as the decision-making body ofJinhong Gas. When selecting members for the Board of Directors, the Group considers factors such as gender, age,educational background, professional knowledge and skills, and industry experience to ensure a diverse composition thatmeets the needs of each business sector. Jinhong Gas conducts Board of Directors meetings in strict accordance with theArticles of Association and Rules of Procedure, and exercises its powers in compliance with the law. This ensures that the Directors,particularly the Independent Directors, play a positive role in the standardized operation of the Group.
Board of Directors
Returns to ShareholdersIn accordance with the Notice on Further Implementation of Matters Relating to Cash Dividends for Listed Companies, the Rules Governing theListing of Stocks on the STAR Market of the Shanghai Stock Exchange, and the Supervisory Guideline No. 3 of Listed Companies- Cash Dividends forListed Companies, Jinhong Gas has fully safeguarded the lawful rights and interests of its shareholders, and providedshareholders with stable and sustainable returns on their investment. The company has taken into consideration the Group’sdevelopment plan and has specified the policy on profit distribution in the Articles of Association.
2 general meetings of shareholders
were held
During the Reporting Period:
During the Reporting Period:
During the Reporting Period:
Member
Independent DirectorDirectorChairman of the BoardJobTitle
Over 50 y.o.40 to 50 y.o.30 to 40 y.o.Age
FemaleMale
Genders
DoctorUndergraduateJunior college and belowEducationalBackground
7 supervisory meetings were held34 proposals were considered and passed
8 board meetings were held100% attendance rate of directors42 proposals were considered and passed
Key Performance2023Cash dividend per share, CNY (Tax included)Total Amount of Cash Dividends Disbursed (Tax included),
CNY ten thousandPercentage of net income attributable to shareholders of
listed company in consolidated statement, %
0.25
12,030.06
52.50
?
1 the special meeting of shareholders1 the annual shareholder’s meeting
13 proposals were considered and passed?
For more information, see the website ofShanghai Stock Exchange (www.sse.com.cn).
Including：
Compliance, the basis of our corporate governanceJinhong Gas Co., Ltd.
31 32
Jinhong Gas attaches great importance to investor relationship management and actively safeguards the legitimate rights andinterests of investors, especially small and medium-sized investors. It has formulated the Investor Relationship Management System andcarried out investor relationship management in strict accordance with the Group Law of the People's Republic of China, the Securities Lawof the People's Republic of China, the Guidelines No. 1 of the Shanghai Stock Exchange for the Self-regulation of Listed Companies - StandardizedOperation and the Guidelines for the Management of Investor Relationships of Listed Companies, as well as other relevant laws and regulationsand relevant provisions in the Articles of Association, so as to ensure that investors have access to the Group's public information ina fair and timely manner.During the reporting period, Jinhong Gas actively communicated with investors through a variety of channels such as RegularReports, Earnings Presentation, On-site Investor Research, Roadshows and Sub Roadshows, Investor Hotlines, the?SSE?E-Interactionand other channels, responded to investor concerns, and safeguarded the investors' right to know, right to vote, and otherlegitimate rights and interests, demonstrated the Group's operating conditions to investors by compiling a visual report of theregular report (video and graphics), and pushed the latest business enquiries in time through the mediums of Jinhong Gas's officialwebsite's investor relationship management column, WeChat public number, and video number, so as to enrich the channels ofsmall- and medium-sized investors' access to information.
With the increasingly fierce market competition, the role of corporate internal control in improving the level of corporategovernance and risk prevention capabilities and promoting the sustainable development of enterprises is becoming more and moreimportant. Jinhong Gas continues to optimise the construction of the internal control and compliance system, and has establishedan effective and efficient internal constraint mechanism, focusing on maximising enterprise value and constantly reducing costs,improving efficiency and enhancing quality.Jinhong Gas has established an internal control system based on the Group's organisational structure and operation mode,including corporate governance structure, business system, accounting system, etc., which Jinhong Gas, its subsidiaries andbranches comply with. The Audit Committee is established under the Board of Directors, which is mainly responsible for thecommunication, supervision and verification of the Group's internal and external audits, and its standing organization is the AuditDepartment of Jinhong Gas, which is responsible for the management of internal control of the whole Group, including thediscovery of defects in internal control and supervision of the improvement of the situation, and the independent supervision andevaluation of Jinhong Gas's financial revenues and expenditures as well as its economic activities, and reports its work to the AuditCommittee on a regular basis.During the reporting period, Jinhong Gas conducted a self-evaluation of the effectiveness of the internal control over itself and itssubsidiaries and branches, etc. The total assets of the units included in the scope of consolidation accounted for 100% of the totalassets of the Jinhong Gas's consolidated financial statements, and the revenue accounted for 100% of the total revenue of theJinhong Gas's consolidated financial statements, and no significant deficiencies in the design and implementation of Jinhong Gas'sinternal control were found throughout the year.At the same time, Jinhong Gas carries out internal audits on a regular basis, with a total of 43 audit projects completed during thereporting period, of which: regular audits are carried out at least once a year, and special audits and exit audits are carried out inaccordance with actual needs.
Legitimate Management
Risk ManagementInvestor Rights and Interests
In accordance with relevant laws and regulations and the relevant provisions of the Articles of Association, Jinhong Gas has formulatedthe Management System for Information Disclosure Matters, the Management System for Informants of Insider Information, the Management Systemfor Confidentiality of Information and other relevant systems to strengthen the quality of information disclosure, ensure the truthfulness,accuracy, completeness and timely disclosure of information, and safeguard investors' right to know. At the same time, it attachesimportance to the confidentiality of undisclosed information, and fosters employees' awareness of compliance and prevents insidertrading by strengthening publicity and education and reinforcing daily management.In accordance with the requirements of the regulators, Jinhong Gas discloses information such as periodic reports and interimannouncements in a timely manner through the website of the SSE(www.sse.com.cn), the China Securities News, the Securities Timesand the?Shanghai Securities News, as well as releasing the latest information on Jinhong Gas's website and other platforms, so as toenable stakeholders to have a timely and comprehensive understanding of the contents of their concerns.
Information Disclosure
During the Reporting Period:
4 periodic reports87 interim announcements
3 times Earnings Presentation65 Online-Responses on the?SSE?E-Interaction
237 times Investor Communication100% Online-Responses Rate on the?SSE?E-Interaction
Key Performance
PROJECT
Jinhong Gas has effectively implemented and maintained accountability mechanisms for information disclosure:
Compliance, the basis of our corporate governanceJinhong Gas Co., Ltd.
33 34
Jinhong Gas has formulated the Anti-fraud and Reporting System in accordance with the requirements of relevant laws and regulationsand in light of the actual situation, in order to regulate the professional behaviour of all employees of Jinhong Gas, establish a goodethos of integrity and diligence and dedication, and prevent the occurrence of acts detrimental to the interests of the Group andits shareholders.Jinhong Gas has set up a special anti-corruption investigation team to investigate all reports, and to ensure that anti-corruptionpersonnel do not and cannot have any interest in the cases they handle or their relatives, so that the source of the report is notknown by the reported person or department. If it is necessary to access the information related to the complaint or report, itshould be authorised by the General Manager and the accessing personnel must register the content, time and relevant informationof the accessing personnel with the Audit Department.
Jinhong Gas encourages employees to supervise each other's irregularities and disciplinary actions, and has set up a variety ofpublic reporting channels to prevent the risk of corruption. The Audit Department is responsible for the establishment ofprofessional ethics issues and fraud cases report phone and e-mail, and will report phone and e-mail in the Group's websiteannounced to the public, the department is tasked with archiving the reports and materials related to the investigation andprocessing of fraud cases in a timely manner.
Tax Management
Related Transaction
Jinhong Gas strictly complies with the anti-corruption laws and regulations of China, the United Nations Convention against Corruptionand the applicable anti-corruption and anti-bribery laws and regulations of other countries (regions) in which it operates, andcontinuously strengthens the construction of a culture of integrity in accordance with the provisions and commitments of theGroup and its business partners on integrity and anti-corruption.Jinhong Gas adheres the attitude of 'zero tolerance'”towards corruption, placing anti-corruption as the highest priority in theconstruction of business ethics, constantly optimises the anti-corruption organisational structure, establishes an anti-corruptionorganisational structure led by the general manager and composed of the audit department, the heads of molecular companies orbusiness divisions, the legal department, the finance department, etc., to improve the integrity system and perfect the supervisionand reporting mechanism, and promotes the Group to operate in good faith.
In order to standardise the tax declaration procedures of the Group, ensure timely and accurate tax declarations and withholdings,and prevent tax risks, Jinhong Gas has formulated the Tax and Fee Declaration Management System, adheres to the principle of payingtaxes in accordance with the law, conscientiously fulfills its tax obligations, strictly complies with the relevant tax policies of thecountries or regions in which it operates. This supports the payment of all taxes lawfully, accurately and in a timely manner withtrue and complete tax-related information. Furthermore, the company has carried out the disclosure of tax information inaccordance with the regulations, so as to ensure that it complied with the supervisory requirements of the tax authorities.
In respect of the management of connected transactions, Jinhong Gas has formulated the Related Transaction Management System inaccordance with relevant laws and regulations in consideration of the actual situation, which clearly stipulates the determinationand management of the price of connected transactions, decision-making management, voting procedures, disclosure ofinformation, and execution of contracts, so as to safeguard the lawful interests of the shareholders and creditors, and to ensurethat the connected transaction contracts entered into by the Group and its connected parties are in line with the principles ofequality, voluntariness, equivalence, and mutual benefit.
Anti-Corruption
Anti-Corruption Processing
Business Ethics
Register and document all reports upon receipt of information.
Analyse and evaluate the matter.Reply to the whistleblower after approval by the GM.
Form a special investigation team with relevant departmental managers to conduct theinvestigation.Engage external agencies to assist in the investigation as necessary.
Issue an investigation report, approved by the general manager in accordance with therelevant provisions of the Jinhong Gas to deal with.For violation of national laws of reporting matters, will be transferred to the judicialorgans to deal with.
Register
Acceptance
Investigation
Reporting
During the Reporting Period:
CNY 17,807.94 ten thousand in total taxes paid (excluding personal income tax), effectively
contributing to the development of local economy.
Compliance, the basis of our corporate governanceJinhong Gas Co., Ltd.
35 36
Jinhong Gas is committed to building a fair and just corporate environment. In the future development of its business, the Groupwill strictly abide by the relevant laws and regulations and follow the provisions of the Competition Law, to ensure faircompetition in the market and guaranteeing that all market participants enjoy equal opportunities.
Fair Competition
Reporting ChannelReport Tel: 0512-65767715-8110/8106Report Email: jubao@jinhonggroup.com
Whistle-blower ProtectionAcceptance of the report or participate in the investigation of personnel to strictly protect the relevant information ofthe whistleblower, the specific content of the report, the relevant investigations are carried out without revealing theidentity of the whistleblower. Unless the whistleblower agrees, in any case, not to disclose the whistleblower's name,contact details and other information.For violation of confidentiality or improper performance of duties of the staff, according to the situation and theconsequences of serious treatment. Constitutes an offence, transferred to the judicial authorities.Any unit or individual shall not use any excuse to block, suppress the whistle-blower report, shall not take any way toretaliate against the whistle-blower. Retaliation against whistleblowers, once verified, in accordance with the relevantprovisions of Jinhong to be dealt with seriously. Offences against the law, transferred to the judicial authorities inaccordance with the law.
In the context of the society and the country's increasing concern about information security and data privacy, Jinhong Gascontinues to improve its internal information security management system to ensure the security of employees and customers'information and data privacy in an all-round way.
Information Security and Privacy
In order to effectively strengthen network security and information security prevention, to ensure network operation security andinformation security, combined with the actual situation, the Group has formulated the Information Security Emergency Response Plan,which makes it clear that the Information Security Emergency Response Leading Group is responsible for coordinating the work ofinformation security emergency responses, with the aim of further enhancing the ability and level of preventing and controllingnetwork and information security emergencies, and minimising or eliminating the hazards and impacts of network and informationsecurity emergencies.The Group has established an Information System Emergency Response Leading Group, which follows the principle of "Who is incharge and who is responsible", establishes and improves the security responsibility system at all levels, coordinates themanagement mechanism and linkage mechanism, and is fully responsible for organising and coordinating the emergency responseto information system emergencies throughout Jinhong. At the same time, the Group is committed to strengthening computerinformation network security publicity and education to raise information security awareness among all employees.
Emergency Management for Information Security
Jinhong Gas attaches great importance to and coordinates the promotion of network security, privacy protection and informationtechnology. The Group strictly adheres to relevant laws and regulations and has formulated management systems such as theNetwork and Mail Information Security Management System, and requires strict internal implementation of relevant systems, standardisesthe operation of the information security management system, ensures that no information security incident occurs, and effectivelymaintains our information security and customer privacy protection.
During the reporting period,no information security-related incidents occurred in the Group.
Information Security Management
Key Performance
Key Performance
100% Employee anti-corruption training coverage
Key PerformanceDuring the reporting period, there were no lawsuits related to unfair competition, antitrust and antimonopoly.
Compliance, the basis of our corporate governanceJinhong Gas Co., Ltd.
37 38
The party branch of Jinhong Gas insists on the system of "the first issue", earnestly implements the system of "three meetingsand one lesson", holds special theme party day activities in conjunction with important nodes, holds the national flag-raisingceremony of National Day, organises party members to visit the red bases of Jiaxing South Lake, Feng Menglong Memorial Hall,etc., constantly improves the sense of responsibility and mission of the party members and workers, gives full play to the roleof the party organisation's battling fortress and party members' vanguard role as an exemplary example, sets up party members'responsibility area and party members' demonstration post, etc., and encourages the party members to compete for the firstand create excellence, so as to realise the deep fusion and benign interaction of the party building work and the developmentof the enterprise.
Party Organisation
Flag-Raising CeremoniesVisit Feng Menglong Memorial Hall
Party Building Activity
Jinhong Gas adheres to the deep integration of party leadership and modern corporate governance, focuses on strengthening thetop-level design, continuously deepens the theoretical research, and actively explores the practical applications to provide guidancefor enterprises to deepen reform and development, industrial restructuring and upgrading, enhance the endogenous power, andpromote the successful completion of various development tasks.
Party Organisation
Jinhong Gas’s party branch actively explores "double cultivation" mode of party members and key personnel, namely "to cultivateparty members into backbone, backbone cultivation into party members," through the innovative implementation of the "two-waycultivation" mechanism, plays the role of the "double drive" to promote the party members and the backbone of the realization ofmutual learning and mutual promotion, mutual assistance and win-win situation, to achieve the party, business and promote theenhancement of the powerful driving force to promote the high-quality development of the enterprise.
Guidance of Party Building
Political Party LessonPolitical Party Lesson
Sales Joint Party
Branch
General Branch Committee
of CPC Jinhong
General ManagementParty Branch
R&D and OperationParty Branch
Guidance of Party BuildingJinhong Gas Co., Ltd.
39 40
Party Service Centre
Jinhong Gas built and opened the first enterprise partygroup service centre in HuangDai town in 2019, with thegoal of highlighting the party building service functionand close relationship between the party and Jinhong,to create a comprehensive service body integratingenterprise culture, product service, party building branddisplay and party members and workers' activities, andto become a house of faith for Jinhong Gas's partyorganization to educate party members and serve partymembers.In 2021, Jinhong Gas Party Group ServiceCentre was selected as the SuZhou"Party building visitdemonstration point".
Deep learning and understanding of the 20th Congress, the practice of creating a brand. Jinhong Gas is committed to building"Promote Righteousness" party building brand, through "tamping a party building foundation, strengthening the four leading", andstriving to achieve strong branch, strong development, strong performance.
Party Honours
"PromoteRighteousness"
Lead the direction of development,
as a good"navigator".
Lead all employees to do a good
job, as a "booster".
Lead the reform and innovation, as
a "think tank".
Lead the enterprise image, as a
good "bridge".
Suzhou "Pioneer Party Organisation
of Non-public Enterprises"
In 2020, Jinhong Gas was awarded as
the demonstration unit of "ThreeCreation and Two Enhancement"activities of Party building with labourbuilding in non-public enterprises in
Jiangsu Province.
Huang Dai Township "Pioneer Grassroots
Party Organisations"
Guidance of Party BuildingJinhong Gas Co., Ltd.
41 42
Environment,the important part ofbuilding ecological civilization
Environmental ManagementEnergy ManagementEnvironmental Impact ManagementEcological Conservation
While expanding its business, Jinhong Gas actively exploreseffective ways to achieve carbon neutrality. Through unremittingefforts, Jinhong Gas has been recognized as a “National GreenFactory” green factory. In future environmental work, we hopeto collaborate with more entrepreneurs who are concernedabout environmental changes, in jointly creating a better world.
43 44
Environmental Management Policy and Target
100% compliant discharge of wastewater, waste gas, dust and noise;100% compliance disposal of solid waste;
0 chemical spillage incidents;0 incidents of fire and explosion.
Jinhong Gas's environmental targets were reached and there were no major pollution incidents.Jinhong Gas abides by the laws and regulations and relevant provisions such asthe Environmental Protection Law of the People's Republic of China and the EnergyConservation Law of the People's Republic of China, and has formulated relevantsystems combined with the actual situation, and has obtained the ISO14001environmental management system certification.In March 2023, the Ministry of Industry and Information Technology of thePeople's Republic of China announced the 2022 Green Manufacturing List, andJinhong Gas was awarded the title of "National Green Factory".
Environmental Management System
Jinhong Gas has compiled documents such as the Risk and Opportunity Identification and Evaluation Management Procedure and theEmergency Response Plan for Environmental Emergencies. Based on the requirements of the management system, Jinhong Gasregularly identifies and evaluates various environmental factors involved in its production and business activities, and takescorresponding countermeasures.Jinhong Gas regularly carries out hidden danger inspections, organizes self-examination and self-correction, and applies theprinciple of "Infer other things from one fact" in terms of the scope and content of inspections. The inspections are included inJinhong Gas's hidden danger rectification tracking and supervision system, and closed-loop rectification is required within a setdeadline.
Environmental Risk Management
Up to the end of the reporting period, Jinhong Gas has organised a number of environmentally-themed trainings and activities forour employees, such as skills related to emergency response, training on solid waste safety and control, and risk identification andevaluation of risk management (hazardous sources). These trainings have effectively raised our employees' environmentalawareness and deepened their overall understanding of the environmental management system.
Environmental Culture Building
During the Reporting PeriodCNY 333.70 ten thousand total environmental protection investment
Environmental Management
We are committed to reducing the consumption of energy resources and improving the efficiency of energy use in its operations.In accordance with the national energy policy guidelines, we have developed the Energy Management Manual and the EnergyManagement System, which cover aspects such as management objectives, scope of management, the organizational structure andresponsibilities of energy management, as well as implementation procedures. This system applies to all departments involved inthe production, supply, and use of energy within the entire Group.
Energy Management SystemEnergy Management
ISO14001 Environmental ManagementSystem Certification
During the Reporting Period:
Key Performance
To establish Jinhong Gas's goals and direction in environmental and occupational health and safety management, we haveformulated the following environmental and occupational health and safety management policy: "Safety first,prevention-oriented; Improving the environment, protecting health; Comprehensive governance, continuousimprovement; Abiding by regulations, comprehensive promotion." Based on actual business situation, Jinhong Gas hasalso set the following environmental targets.
Environment, the important part of building ecological civilizationJinhong Gas Co., Ltd.
45 46
Jinhong Gas successfully connected itsphotovoltaic power station to the grid in 2023,increasing the diversity of energy supply,reducing dependence on fossil energy, helpingto reduce carbon emissions and environmentalpollution, and responding to the national policyof energy conservation and emission reduction.
As a comprehensive gas service provider offering one-stop gas supply solutions for customers, including various special gases, bulkgases, and natural gases, we take the national climate goals as guidance and integrates low-carbon development activities withthe strategies for low-carbon social and economic development. We have established multiple exhaust recovery projects acrossthe country to recover gases such as hydrogen, carbon dioxide, and nitrous oxide. By utilizing these recovered greenhouse gasesin different fields, we aim to create a virtuous cycle of greenhouse gas recycling , thus contributing to the goals of carbon peakingand carbon neutrality.
Jinhong Gas has strengthened emission reduction efforts in all aspects and actively adjusted the Group's energy structure. Duringthe reporting period, the total distributed photovoltaic power generation has reached 461,742.00 kWh.
Climate Change
We focus on low-carbon operations, adopting the energy policy of "Lowconsumption, high efficiency, energy conservation and emission reduction,striving for profitability. Standardized operation, technological innovation,pursuing excellence !" Our energy management system has been certified to complywith the requirements of the ISO 50001 Energy Management System Certification.
Energy Efficiency
Photovoltaic Power Station Successfully Connected to the Grid
Photovoltaic Power GenerationWater RecyclingEnergy-saving LightingUtilization of Renewable ResourcesEnergy-saving Retrofit of Equipment
Application of Insulation MaterialsApplication of Thermal Insulation MaterialsRecovery and Utilization of Waste HeatCollection and Analysis of Energy DataCultivation of Employees' Awareness of Energy Conservation
Energy-Saving Measures of Jinhong Gas
UnitTypeValueJinhong Gas's Energy Usage
Note: Energy Consumption Intensity = Energy Consumption / Annual Revenue.
Direct EmissionReduction Measures
Through technological innovation, Jinhong Gas has reduced direct greenhouse gasemissions in the production process and industrial chain.RenewableElectricity
Jinhong Gas's photovoltaic power station has successfully been connected to the grid,reducing its reliance on traditional energy sources to a certain extent. This not only savesrenewable electrical energy but also reduces carbon emissions.Emission Reduction
Policy Concerns
Jinhong Gas's relevant departments are closely monitoring the latest laws and regulations,and are actively taking various energy-saving measures to meet the requirements of theenergy-saving, emission reduction and green transformation policies.
Carbon CaptureTechnology
We are deeply promoting the investment and development of carbon capture andutilization projects.
Carbon Management
ISO 50001 Energy ManagementSystem Certification
Comprehensive Consumption Intensity
Tons of standard coal/CNY million
7.42
LNG Consumption IntensityGasoline Consumption IntensityDiesel consumption intensityConsumption intensity of purchased electricityConsumption intensity of purchased heat
Tons/CNY millionTons/CNY millionTons/CNY millionkWh/CNY million
GJ/CNY million
0.01
0.01
1.74
38,845.37
2.01
Environment, the important part of building ecological civilizationJinhong Gas Co., Ltd.
47 48
ValueUnitType
GHG Emission Intensity (Scope 1 and Scope 2)
GHG Emission Intensity (Scope 1)GHG Emission Intensity (Scope 2)
Renewable Energy Usage
tCO
e/CNY milliontCO
e/CNY milliontCO
e/CNY milliontCO
e
27.77
5.55
22.37
384.17
Jinhong GHG Emissions
Note: GHG Emission Intensity = GHG Emissions / Annual Revenue.
Huainan Jinhong's Carbon Capture and Comprehensive Utilization ProjectHuainan Jinhong's Carbon Capture and ComprehensiveUtilization Project was officially topped out in June 2023.The project, invested and constructed by Huainan JinhongCarbon Dioxide Co., Ltd., won the second prize in theHuainan competition of the 12th China Innovation andEntrepreneurship Competition in Anhui Province in 2023.The carbon capture and comprehensive utilization projectcan effectively promote the commercial utilization ofCCUS (Carbon Capture, Utilization and Storage), facilitatethe establishment of a sound carbon asset trading system,thereby providing a more favorable development space forthe domestic promotion and application of CCUS, andproviding strong technical support for achieving the"Carbon Peaking and Carbon Neutrality" goals.
Jiaxing Jinhong’s Carbon Capture Construction ProjectIn June 2023, Jiaxing Jinhong’s Carbon CaptureConstruction Project commenced its trial production.The project, invested and constructed by Jinhong Gas(Jiaxing) Co., Ltd., has been selected as the third batchof pollution reduction and carbon emission reductionpilot projects and the second batch of benchmarkprojects in Zhejiang Province.By utilizing upstream exhaust gas recovery andadopting advanced purification technology, the projectaims to reduce emissions, minimize environmentalimpact, and achieve the reuse of carbon dioxide,thereby enhancing resource utilization efficiency.
Environmental Impact Management
Jinhong Gas attaches great importance to water resourcemanagement, and carries out irregular maintenance and repair ofwater supply pipes, and has professional guidance andsupervision of water use for employees.
Water Resource Management
Water Conservation
Climate change is full of uncertainty and complexity, and the extreme weather it triggers, such as heavy rainfall and flooding, lowtemperatures and freezing temperatures, may damage factories, equipment and office buildings, resulting in the loss of JinhongGas's assets; at the same time, it may also indirectly impede Jinhong Gas's stable production due to the effects of damage toequipment, the inability of employees to perform their normal work, and the disruption of transport.
Coping with Extreme Weather
Water Conservation Slogan in Office Area
Routine PrecautionaryArrange daily reminders of meteorological conditions.Regular inspection and maintenance of productionfacilities and equipment.Structural reinforcement of important productionfacilities and buildings to enhance their ability to resistwind, rain and earthquakes.Equip backup generators or other reliable energysupply equipment to cope with possible poweroutages.Regularly inspect and clean the drainage system toensure that it is unobstructed to prevent waterloggingand flooding.Establish an emergency liaison mechanism.Arrange inspections to promptly notify abnormalsituations and remove potential safety hazards.
Set up an emergency command team to organiseand coordinate the response work.Formulate an emergency plan and clarify the dutiesof each department and personnel.Reserve emergency supplies in advance, such assandbags, tarpaulins, standby generators, etc.In case of extreme weather, stop dangerous operationsin time to ensure personnel safety.Organise evacuation of staff to safe areas if necessary.Clean up snow and water in time and repair damagedfacilities.Assess damage and resume production.Summarise and improve preventive measures.
Emergency Response
Environment, the important part of building ecological civilizationJinhong Gas Co., Ltd.
49 50
During the reporting period, Jinhong Gas's water intensity was 1,288.41 t/CNY million.
Note: Water intensity = Total water consumption / Annual Revenue.
Note: Wastewater Intensity = Wastewater Emissions / Annual Revenue.
ProcessMeasuresKey Control IndicatorsEfforts are being made to reduce water consumptionand reduce pollutant emissions by optimisingproduction processes and adopting cleaner productiontechnologies.Establish a comprehensive monitoring system toregularly test the water quality parameters ofwastewater.Wastewater treatment facilities are equipped to ensurethat wastewater has been treated before discharge.These facilities use physical, chemical and biologicaltreatment methods to meet discharge standards.
Monitoring&TestingWastewaterTreatmentFacilities
Suspended SolidsChemical Oxygen
DemandFive-day Biochemical
Oxygen Demand
AmmoniaTotal Phosphorus
Total NitrogenAnimal and Plant Oil
From the manufacturing, Jinhong Gas strictly follows the requirements of engineering design specifications in the design andconstruction of air pollutant collection devices and the application of exhaust gas collection technology to reduce the emission ofair pollutant. Jinhong Gas regularly commissions external professional organisations to carry out exhaust gas testing to ensure allair emissions meet the requirements of the Integrated emission standard of air pollutants (GB16297-1996) and the Emission standards forodor pollutants (GB14554-1993).
Exhaust Gas Pollution Control Management
Noise generated in the production process mainly comes from the production line and other equipment, for this reason, JinhongGas takes noise control as an important part of the production process. In the selection of equipment, priority is given to theselection of low-noise equipment, and at the same time, vibration damping measures are strengthened and mufflers are installedto reduce the noise; at the same time, Jinhong Gas has installed mufflers in the noise sources of each process, constructedacoustic barriers in part of the factory boundaries, and carried out acoustic isolation and acoustic absorption wrapping treatmentfor the pipelines with a large noise value.
Type
Jinhong Exhaust Gas Emissions
According to the Notice of the Provincial Housing and Urban-Rural Development Department on the Announcement of the Evaluation Results ofWater-saving Enterprises (Units) and Water-saving Districts in Jiangsu Province (No. 548 of Su Jian letter Cheng [2019]), Jinhong Gas wasawarded the title of "Water-saving Enterprises in Jiangsu Province".
In accordance with the Law of the People's Republic of China on the Prevention and Control of Water Pollution and Wastewater quality standardsfor discharge to municipal sewers (GB8978-1996) and relevant laws and regulations, Jinhong Gas strengthens the control of waterpollutant emissions in the production process and carries out the reuse of resources, so as to promote long-term development.
Wastewater Treatment
During the reporting period, Jinhong Gas's wastewater discharge intensity was 20.36 t/CNY millionOur wastewater recycling rate is
14.77%.
Noise Regulation
Note: Emission Intensity = Emissions / Annual Revenue.
Emissions of Exhaust Gas Pollutants
Key Performance
Key Performance
Source Control
Particulate Matter Emission Intensity
SO
Emission IntensityNOx Emission IntensityVOCs Emission Intensity
Tons/CNY millionTons/CNY millionTons/CNY millionTons/CNY million
Ten thousand m?/CNY million
2.29x10
-4
4.45x10
-4
1.35x10
-4
4.12x10
-4
5.72Exhaust Gas Emission Intensity
UnitValue
Environment, the important part of building ecological civilizationJinhong Gas Co., Ltd.
51 52
Jinhong Gas strictly adheres to relevant national and local regulations and standards, such as the Standard for pollution controlon thenon-hazardous industrial solid waste storage and landfill and the Standard for pollution control on hazardous waste storage. It classifies andcollects waste according to different types. For hazardous waste, Jinhong Gas establishes dedicated storage facilities anddisposes of them in accordance with relevant regulations. For general industrial waste, regular cleanup and disposal areconducted. At the same time, regular supervision and inspections are carried out to ensure the effective implementation of wastemanagement measures.
Waste Handling
Jinhong Gas attaches importance to the reuse of gas packages. For packages that can be used again, they will be recycled afterinspection, maintenance, cleaning, testing, etc., to reduce the generation of waste;for those packages that can not be recycled,they will be handed over to the professional treatment organisations to be disposed of or recovered in a safe manner.The reuse of packaging not only maximises the value of materials and reduces operating costs, but also makes a positivecontribution to the cause of environmental protection, demonstrating the determination and practical action in sustainabledevelopment of Jinhong Gas.
Material Recycling
ValueTypeUnit
Intensity of non-hazardous industrial solid wasteCompliant disposal rate of non-hazardous
industrial solid waste
Non-hazardous Industrial Solid Waste
Intensity of hazardous industrial solid wasteCompliant disposal rate of hazardous industrial
solid waste
Tons/CNY million
%Tons/CNY million
%
0.002
0.017
Hazardous Industrial Solid Waste
Jinhong Solid Waste Disposal
Note: Intensity = Capacity / Annual Revenue.
Ecological Conservation
Jinhong Gas strictly observes national environmental laws and standards to protect the environment and prevent damage to marineand terrestrial ecosystems. Jinhong Gas ensures that all capital investment projects take measures to minimise negative impactson the environment, and it pays attention to the protection of the ecosystem while rationally utilising natural resources.
Biodiversity Conservation
Jinhong Gas is committed to creating a garden-like factory that integrates environmental protection, aesthetics, and efficiency. Itnot only focuses on updating production equipment and upgrading technology, but also takes ecological harmony as its corephilosophy. It comprehensively considers the importance of environmental protection and ecological balance, and throughscientific planning and design, rationally arranges production, office, and living areas, making the entire factory green andenvironmentally friendly. This creates a comfortable and harmonious workplace for employees, and establishes a brand-new modelfor the green and sustainable development of the industry.
Garden Factory
Jinhong Gas did not have any production bases or operations located within, near or outside nature reserves in areasrich in biodiversity. None of our production and operation activities, products and services had a significant impacton biodiversity.
Greening ConstructionFlower-lined Path
During the Reporting Period:
Environment, the important part of building ecological civilizationJinhong Gas Co., Ltd.
53 54
Excellence,the ultimate pursuitof quality development
R&D Innovation and IP Management Quality ManagementIntelligent Manufacturing
Safe ProductionCustomer Service
Focusing on customer needs, providing innovative and qualityproducts to society is an important social responsibility for us as anenterprise. We continue to innovate and adhere to quality, leveragingrelying on leading technological achievements to provide high-qualityproducts and solutions as well as excellent services, thus aiming tocreate even greater value for our customers.
55 56
We take a vertical and horizontal development strategy as foundation, enhancing team cohesion and fostering team collaboration.Guided by new technologies and products, we accelerate progress and innovation to ensure our development. We attach greatimportance to enhancing research and development capabilities. In order to further standardize our R&D processes, we haveestablished a series of scientific and technological innovation management systems such as the Small-scale Experimental AcceptanceManagement System for the Technology Research and Development Center, the Medium-scale Experimental Acceptance Management System for theTechnology Research and Development Center and the Design and Development Control Procedures.These systems have formed a completeR&D process, laying a solid foundation for us to achieve a sustainable and high-quality development.Jinhong Gas closely monitors the progress of projects and actively promotes the R&D work. Our long-term plan includes thedevelopment of new products and technologies targeting electronic special gases, precursors, carbon capture&utilization,hydrogen energy, and other objectives.
R&D System and Process
Jinhong Gas is committed to promoting technological innovation, actively building a professional research and development teamby continuously enhancing our scientific and technological conditions, and injecting continuous innovative vitality into ourdevelopment. To stimulate employees' enthusiasm for innovation, we are continuing to increase the investment in R&D, providinga solid material foundation and technical support for technological innovation.The Group has established a series of incentive measures including the Innovative Project Incentive Program of Jinhong Gas,theManagement Measures for the Evaluation of Professional Titles and Vocational Skills of Jinhong Gas Employees and the Intellectual Property andStandards Reward Measures. These measures aim to encourage employees to actively engage in R&D work as well as enhance theGroup's independent innovation capabilities.
Incentives for Innovation
Jinhong Gas has obtained honorary qualifications such as the National SDRI (Specialized, Refinement, Differential, and Innovation) “LittleGiant” enterprise, National Intellectual Property Demonstration Enterprise, and Top 100 Innovative Private Enterprises in Suzhou,reflecting the Group’s excellent performance in technological innovation, intellectual property protection and industry status. JinhongGas also has a National Enterprise Technology Center, a National Post-Doctoral Research Workstation, a CNAS-accredited laboratory,and the Jiangsu High-Purity Specialty Gas Engineering Center, further demonstrating our strength in scientific research andtechnological innovation.
Results in Science and Innovation
R&D Process
R&D Innovation and IP Management
Project ApprovalLab TrialsPilot ApprovalTrial ProductionContinuous Improvement
CNAS Laboratory Accreditation Certificate
CNY 8,630.14 ten thousand R&D investment in 2023
3.56% proportion of R&D Investment in Operating
Income
377 emlpoyees of R&D team18 employees with master's degree or above in R&D team
National Enterprise Technology Center
National SDRI (Specialized, Refinement,Differential, and Innovation) “Little Giant” enterprise
Jiangsu High-Purity Specialty Gas Engineering Center
National Post-Doctoral Research Workstation
High-tech Enterprise Certification
Key Performance
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
57 58
In terms of Industry-University-Research cooperation, Jinhong Gas has established long-term and stable cooperation withmultiple universities and research institutions, and achieved breakthroughs in technological research and innovation. The Grouphas joint hands with Dalian University of Science and Technology, East China Normal University, Soochow University, SuzhouUniversity of Science and Technology, Jiangsu Provincial Research Institute of Industrial Technology and other units to build ahigh-level "Industry-University-Research" co-operation platform, which provides strong support for our development andtechnological innovation.
Jinhong Gas strictly abides by laws and regulations such as the Detailed Rules for the Implementation of the Patent Law of the People'sRepublic of China and the Trademark Law of the People's Republic of China, and has established a series of systems including the PatentManagement Procedure, the Intellectual Property Risk Management Procedure and the Trademark Management Procedure. While protectingour intellectual property rights, we also strengthen employees' awareness to protect intellectual property rights.During the reporting period, we has filed 61 new patent applications, including 31 invention patents and 30 utility modelpatents. We also received authorization for 62 patents, including 24 invention patents. Additionally, we have obtainedIntellectual Property Management System Certification and been awarded as the National Intellectual PropertyDemonstration Enterprise.By the end of the reporting period, Jinhong Gas has actively promoted and implemented a series of important intellectualproperty projects:
IP Management
Top 100 Innovative PrivateEnterprises in SuzhouChina Gas Industry Association
Innovation Unit Award
Innovative Product Award
ASTRI Suzhou Xiangcheng Technology
Exchange Meeting
2023 International Scientist Summit in Suzhou
2023 Workshop on Silicon Based Gases
for Integrated Circuits
The 12th China Innovation and Entrepreneurship
Competition Anhui Huainan Competition
Demonstration Enterprises of China
Industry-University-ResearchInstitute Cooperation Innovation
Project TitleType
Enterprise Intellectual Property Strategy Promotion ProgrammeHigh-value Patent Cultivation Programme for the Preparation and
Application of High-purity Hydrogen GasIntellectual Property Peak Action Plan for Enterprises in the Field of
High-end New Materials and Special Gas MaterialsPromotion Plan of Trademark and Brand Strategy of Jinhong Gas
Co., Ltd.Promotion and Application of Cylinder Handling Technology for
Electronic Grade Ultra-High Purity Gases
Jiangsu Province Intellectual Property Strategy
Promotion Programme Project
Suzhou Enterprises Intellectual Property Peak
Action Plan ProjectSuzhou Trademark and Brand Strategy Promotion
Plan ProjectSuzhou Major Patent Technology Promotion and
Application Plan
Suzhou High-value Patent Cultivation Programme
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
59 60
Intellectual Property ManagementSystem Certification
National Intellectual Property
Demonstration Enterprise
Intellectual Property Conformity ReviewSuzhou High Value Patent ProjectAcceptance Meeting
Jiangsu Enterprise Intellectual Property StrategyPromotion Plan Project Demonstration Site Meeting
332 authorised patents Jinhong Gas hascumulatively obtained85 granted patents for inventions JinhongGas has cumulatively obtained
Jinhong Gas always adheres to the quality policy of "Standardized management, Quality first; Customer first, Continuousimprovement", and has established a set of systematic and standardised management systems, continuously pushes forward theconstruction of the quality management system. The Group has formulated the Monitoring and Measuring Control Procedure, BCM BusinessContinuity Management Procedure, Corrective and Preventive Measures Procedure and other management systems to clarify the qualityrequirements for product production and the acceptance criteria for key processes. At the same time, the Group's qualitymanagement system also focuses on continuous improvement and innovation, continuously improve product quality and servicelevel to promote the sustainable development of the Group.
Jinhong Gas is continuously strengthening the performance excellence model, andhas obtained the Nomination Award of Jiangsu Governor's Quality Award, SuzhouMayor's Quality Award and other honours. From product R&D to manufacturing, andthen to after-sales service, we strictly control the quality standards in order to achievethe sustainable development and excellence in achievement.
Quality Management SystenmQuality Management
The Group has passed ISO9001 quality management system certification and ISO22000 food safety managementsystem certification.
ISO 9001 Quality ManagementSystem Certification
ISO 22000 Food Safety Management
System Certification
Nomination Award of Jiangsu
Governor's Quality Award
During the Reporting Period:
By the end of the Reporting Period:
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
61 62
During the reporting period, Jinhong Gas has conducted 236 internal quality audits
Jinhong Gas has formulated the Control Procedures for Responding to Risks and Opportunities and the Procedures for Analysing Potential FailureModes and Consequences of Processes to effectively identify, analyse and respond to the potential quality improvement opportunities.We have also formulated systems such as the Control Procedures for Nonconforming Products and the Product Withdrawal and Recall System.Quality Risk Control
The Group attaches great importance to the construction of quality culture, and improves the quality awareness and skill level ofthe staff through the implementation of quality training and education activities. Employees integrate the quality concept into everywork process in the process of continuous learning and practice. At the same time, through the sharing of quality managementexperience and best practices, we promote the dissemination and development of quality culture, ensuring that all employees arededicated to continually improving the quality of our products and services.
Quality-Specific Training
In September 2022, the Ministry of Industry and Information Technology, the National Development and Reform Commission, and theGeneral Office of the Ministry of Finance jointly released the Implementation Plan for Intelligent Manufacturing Pilot Demonstration Action. Thisplan aims to foster the high-quality development of intelligent manufacturing by selecting exemplary scenarios, establishingdemonstration factories, and establishing pioneering positions in various industries. Aligning with these objectives, Jinhong Gas iscommitted to promoting information-based and intelligent production and management. We have centralized various systems such ascustomer relationship management, production information systems, process optimization, equipment optimization, qualitymanagement, HHT warehouse cylinder management, TMS logistics intelligent scheduling, storage tank level monitoring, and safetymanagement onto a single platform, which allows for the unified management and sharing of equipment, process, safety, andenvironmental information, thereby ensuring the safe, stable, efficient, and cost-effective operation of our enterprise.
Intelligent Manufacturing
We had not experienced any product recalls.
SPC-Specific TrainingISO 9001 Internal Audit Skills Competence
Improvement Training
Jinhong Gas Digital Operation Center
Whole processinformation digital
management
system
ERPCustomer relationshipmanagementSupply relationshipmanagementOffice automation
Logistics transportationData analysisPersonal Affairs System
SAPCRMSRMOA
TMSBIHRHHTCylinder managementGas warning systemFinancial sharing centerOverall budgetSales performanceWechat mall
Key Performance
By the end of the Reporting Period:
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
63 64
CNY 3,240.87 ten thousand security investment0 annual production accidents0 deaths on duty
Occupational Health and Safety objectives
Production Safety Management
"Embracing the digital revolution and spearheading the intelligent future" is an inevitable path for enterprises striving forhigh-quality development. The Group starts with a deep integration of intelligence, automation, and information technology. Wecomprehensively ensure key aspects such as personnel organization, project construction, and capital allocation, thereby effectivelydriving the overall transformation and upgrading of our information technology infrastructure. In the past three years, ouroutstanding performance has earned us the prestigious titles of the National Intelligent Manufacturing Demonstration Factory andNational Intelligent Manufacturing Excellent Scene. During the reporting period, Jinhong Gas was further recognized as theFive-Star Cloud Enterprise in Jiangsu Province.In the future, the Group will firmly adhere to the path of digital transformation and development, deeply explore and leverage ourinformational potential, ultimately enhance our operational efficiency.Jinhong Gas adheres to the policy of "Safety first, Prevention foremost, and Comprehensive management," standardizingour production safety management in accordance with relevant laws and regulations. We have compiled the Safety ManagementSystem Guidelines to ensure that all safety-related work is governed by clear rules and thoroughly documented, thus safeguardingour production safety. Notably, we has successfully completed the second-level safety production standardization certificationreview in 2023.Intelligent LogisticsGiven the Group's extensive range of industrial gas products and the diverse demands of our clients, we has implemented the TMSlogistics intelligent scheduling platform to optimize service quality and resource allocation efficiency. The platform seamlesslyintegrates human and locomotive equipment, ensuring the safety of vehicles during transportation through GPS positioning and acomprehensive vehicle monitoring system. Additionally, it allows for remote monitoring of driver status, ensuring adherence tomanagement standards as well as establishing a secure and intelligent logistics platform.Concurrently, the TMS logistics intelligent scheduling platform leverages the full capabilities of information technology and theInternet of Things to monitor tank trucks. This transition from static to dynamic management optimizes vehicle task allocation,significantly enhances distribution efficiency and reduces transportation costs.
Jinhong Gas has established the Safety-Production Committee and has compiled the Safety Production Responsibility Manual.Regular meetings and assessments are organized to establish the comprehensive responsibility system and the reward &punishment mechanism, which ensures that safety responsibilities are implemented across every aspect of the operation,encompassing every link, position, and employee. By strictly enforcing the safety system, we provide a robust safetyguarantee for our sustainable and stable development.
Safe Production
Major casualty incidents: 0Occupational disease incidence: 0%Fire, explosion accident: 0
TemperatureSensing
Two-wayIntercom
Visualization
CrossingAlarm
OverspeedAlarm
TravelDistribution
TaskAssignment
IntelligentAnti-FatigueAnti-theft
SystemFuelConsumptionMonitoring
Key Performance
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
65 66
Security Risk Control
Jinhong Gas holds security risk control and hidden danger investigation in high esteem. Adhering to the "Prevention-Oriented"principle, we have established a robust risk assessment and hidden danger investigation mechanism. Through regular riskassessments and hazard inspections, the Group can ensure the production safety and the safety of employees' lives & property.Furthermore, the Suzhou Federation of Trade Unions has organized the "I Offer a Plan for Safe Production" rationalization proposalactivity, in which the Group's employee emerged victorious, securing the first prize for their innovative "Safety Training Information"proposal. In 2022, the Group's "Real-time Monitoring and Identification of Security Risks" scenario has been recognized as theOutstanding Example in Intelligent Manufacturing. Additionally, during the reporting period, Jinhong Gas has proudly received theaccolade of being one of the top ten fire safety management units in Xiangcheng District.
In 2022, the City's "I offer a plan for safeproduction" Rationalization Proposal Award ListXiangcheng District Top Ten FireSafety Management Units
LAW
Safety First Aid ClassIn March 2023, Jinhong Gas has organized a comprehensive training session on "Emergency Rescue Knowledge forEnhanced Awareness". This hands-on training emphasized techniques such as "cardiopulmonary resuscitation" and otheressential first aid skills. The objective was to broaden the comprehension and proficiency in first aid among a diverseaudience, ensuring that more individuals are equipped with the knowledge and skills necessary to respond in emergencysituations. Concurrently, this training aimed to heighten the emergency preparedness of all employees, enabling them toeffectively handle emergencies and accidental injuries. By mastering fundamental first aid knowledge and practical skills,employees are now better prepared to uphold Jinhong's core values of "safety" through practical actions.
Fire Evacuation Emergency DrillIn November 2023, with the aim of efficiently fulfilling the responsibility of fire prevention, sounding the alarm, andembodying the theme of Fire Safety Publicity Month, "Prioritizing Prevention, Valuing Life First," the Ministry ofEnvironmental Safety organized a fire evacuation emergency drill for all employees in the operation building. Thisexercise aimed to enhance employees' emergency evacuation and escape capabilities, ensuring their safety in the eventof a fire emergency.
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
67 68
100% coverage rate of safety training225 safety emergency drills held in Jinhong17,888 persons participated in safety training
Safe Production Month
In June 2023, the Group hosted the launch ceremony of the "Safety Production Month," centered on the theme "EveryoneSpeaks Safety, Everyone Responds to Emergencies." Following this, a series of specialized activities were meticulouslyorganized, including public awareness campaigns, educational and training sessions, safety production knowledgecompetitions, skills contests, outstanding hidden danger management selections, and emergency drills. These endeavorsaim to further enhance the safety awareness and proficiency of all employees, ensuring that they perform their duties withutmost safety and responsibility.
Related Party Security ManagementJinhong Gas places emphasis on the safety management of relevant parties. We have formulated the Contractor and Supplier SafetyManagement System which includes measures such as identifying and assessing relevant parties, signing safety agreements,conducting safety training and communication, and on-site safety management. These measures ensure that relevant partiesunderstand and comply with the company's safety policies, jointly creating a safe working environment.
Safety Culture ConstructionAs safety is one of our core values, the Group pays attention to the construction of safety culture, by emphasizing the safetyconcept, providing safety training, establishing safety system, encouraging safety communication, creating a safety environmentand other measures, vigorously cultivate the safety awareness of employees, comprehensively improving the safety skills of ouremployees. In doing so, safety has become everyone's common responsibility, which contributes to the strong safety cultureatmosphere within the company.
Safety Production Knowledge ContestIn June 2023, with the aim of vigorously disseminating knowledge about safety production and adhering to the safetymonth theme of "Everyone Prepared for Emergencies, Evereyone attaches importance to safety," the Group has organizeda production safety knowledge competition. This endeavor aimed to effectively enhance the emergency awareness anddisaster prevention and mitigation capabilities of the entire organization, ultimately safeguarding the safety of ouremployees' lives and property. A total of 26 teams participated in the preliminary round, and after rigorous competition,12 teams comprising 36 individuals emerged victorious and qualified for the finals.
Key Performance
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
69 70
Customer Service System
Full Life Cycle Service
On-site Gas Service
Jinhong Gas has formulated a comprehensive service strategy, with a focus on fostering the development of "Green Ecology." Thisstrategy encompasses a comprehensive suite of services that span the entire lifecycle, including gas planning, design, installationand construction, along with the development, production, filling, distribution, testing, operation, maintenance, recycling andmanagement of various industrial gases.
Customer Satisfaction SurveyTo gain a profound understanding of customers' satisfaction levels with our products and services, promptly identify any issues,consistently enhance quality, foster loyalty, strengthen our competitive edge, and provide a solid foundation for ourdecision-making processes, Jinhong Gas conducts annual customer satisfaction surveys.
Customer Service Training
By investing in customer service training, Jinhong Gas enhances the service-oriented mindset and proficiency of its employees,ensuring that customers receive an exceptional experience and boosting their satisfaction levels. During the reporting period, theGroup successfully organized 8 sales staff training courses, attracting a total of 1,050 participants with a remarkable 100%participation rate.To meet the unique requirements of our customers, we offer a comprehensive range of on-site gas production lifecycleservices. By the end of the Reporting Period, we have successfully delivered these specialized services to numerousenterprises, including STIC, AscenPower, HTGD, HC Semitek and Changelight.During the reporting period, Jinhong has secured nine new on-site gas production projects, significantly strengtheningour relationship and loyalty with our esteemed customers.
Electronic Special Gas out of Storage Packaging Operation Procedures TrainingIn February 2023, our comprehensive trainingwill empower employees to proficientlymaster the operational procedures forelectronic special gas outbound packaging,thereby ensuring safe, precise, and efficientproduct delivery that seamlessly meetscustomer needs.Web : www.jinhonggroup.comWechat public account: Jinhong GasComplaint hotline: 400-886-2178
Fax: 86-512-65789129Hotline: 400-828-7377
Customer Service
Customized gas supply scheme planning servicesCustomized design and manufacturingProfessional technical support
Inspection and predictive maintenanceIntelligent logistics distributionMulti-channel consulting services
Customer Communication Channels
99.05% customer satisfaction 100% customer complaint resolution rate
Key Performance
Excellence, the ultimate pursuit of quality developmentJinhong Gas Co., Ltd.
71 72
Cooperation,the common path toachieve sustainable goals
Supplier ManagementStrategic Cooperation
Global ExpansionIndustry Co-construction
With the aim of optimizing supplier management, fosteringdeeper strategic collaborations, strengthening industryco-construction, and ultimately enhancing the competitiveness,Jinhong Gas actively cultivates stable partnerships withhigh-quality suppliers. We strive for mutual growth and prosperitywith industry partners, actively participating in industryco-construction efforts to promote the sustained health of thesector. Through these endeavors, we aim to bolster our overallstrength and secure our long-term development.
73 74
Supplier Selection Development and Management Process
Jinhong Gas meticulously evaluates suppliers' products, adhering strictly to the prescribed procedural documents to guaranteetheir compliance with relevant standards. Subsequently, we form an evaluation team to conduct thorough inspections and on-siteaudits. This team assesses the supplier's production capabilities, delivery timelines, and after-sales service. Additionally, the teamevaluates the supplier's reputation, financial standing, and commitment to environmental and social responsibilities. Thiscomprehensive approach ensures the stability of our supply chain and customer satisfaction. By carefully selecting supplierscapable of providing high-quality products and services for sustained, stable collaboration, we aim to achieve mutual success andwin-win outcomes.
Supplier Selection and Access
Jinhong Gas carries out a meticulous and comprehensiveassessment of suppliers utilizing the Supplier Quality SystemAudit Form. This assessment encompasses various aspectssuch as the quality status, delivery timeline, serviceofferings, and pricing of the products provided during theevaluation. Based on the evaluation results, suppliers arecategorized into four distinct levels: I, II, III, and IV. Thiscategorization ensures the sustainable development andefficient operation of our supply chain.
Supplier Management
Strategic Cooperation
100%
Integrity training coverage
Jinhong Gas adheres strictly to relevant laws and regulations and has established acomprehensive suite of processes and regulations, including the Supplier Developmentand Certification Process, Supplier Classification Management Regulations, Supplier PerformanceManagement Process, Supplier Two-Party Audit Process, and Supplier Information ManagementRegulations. These measures standardize our approach to supplier selection,development, certification, evaluation, auditing, and maintenance. We ensure that oursuppliers meet our standards for quality, reasonable pricing, and reliable delivery,aligning with our production needs. Additionally, we forge clean agreements withqualified suppliers, resolutely eliminating any form of commercial bribery and unfaircompetition, ensuring that our procurement process remains fair and transparent.
Supplier Management System
Green procurement is not just about cutting costs and enhancing efficiency for enterprises but also drives the green transformationof the entire supply chain, fostering sustainable societal development. In the crucial stages of supplier selection and productprocurement, Jinhong Gas places utmost priority on choosing products and services that meet rigorous green standards orcertifications. By fostering close collaboration with our suppliers, we jointly champion innovation and achieve noteworthyaccomplishments in energy conservation, emission reduction, and resource preservation.
Green Procurement
Jinhong Gas is dedicated to yield sustainable development through strategic collaborations that foster synergistic enhancementsin economic, environmental, and social benefits. It strives for win-win outcomes in its partnerships and explores innovativedevelopment models by establishing close cooperative relations with leading enterprises and institutions across diverse fields.
Supplier Evaluation andClassification
Establish supplierprofileFirst instance
Examine
CancelExamine and approve
Login (Access)Periodic assessmentRetain or log in again
Sample evaluation
Field evaluationWritten evaluation
During the reporting period, Jinhong Gas and CIMC initiated a strategic cooperation with the launch ceremony of a newgeneration of domestic liquid helium tank products, and the two sides will collaboratively develop a one-stop solution forliquid helium storage and transportation. We plan to purchase a batch of liquid helium tanks for the storage,transportation and distribution of liquid helium. Through this cooperation, the two sides will establish an in-depthexchange and communication mechanism, give full play to their respective advantages, build a one-stop solution for liquidhelium storage and transportation, and help achieve a new situation of domestic helium autonomous control.
One-stop Solution for Liquid Helium Storage and Transportation
Debut Ceremony of New Generation of Domestic Liquid Ammonia Tank Products
NOOK
OKOK
NO
Key Performance
75 76
Cooperation, the common path to achieve sustainable goalsJinhong Gas Co., Ltd.
Global Expansion
Jinhong Gas closely aligns with the national"the Belt and Road" initiative and proactivelyestablishes subsidiaries in Vietnam andSingapore. Leveraging its inherent strengths,Jinhong Gas strives to establish a robustoverseas business foundation, enabling itsproducts to expand globally and laying a solidfoundation for international development.
In June 2023, Jinhong Gas made a significantappearance at the 2023 Middle East International GasExhibition. The visit of our "pioneer team" to Dubairepresented a noteworthy milestone in our import andexport business. This trip effectively bolstered thefrequency and depth of Sino-foreign industryexchanges, enhancing our competitiveness in overseasmarket orders, fostering the dissemination ofcutting-edge technologies, and contributing to theestablishment of industry standards.
Jinhong Gas's products have been exported to adiverse array of 32 countries, including theUnited Kingdom, Germany, France, Japan, SouthKorea, Chile, Nigeria and Australia, with businessspanning across Asia, Europe, Africa, andOceania. Looking ahead, Jinhong Gas aims tofurther deepen its export cooperation withcountries along "the Belt and Road" initiative,continually expanding its business scope andenhancing its global market influence. This willlay a solid foundation for future sustainabledevelopment, ensuring that Jinhong Gas remainsa formidable player in the international arena.
Vietnam JinhongMiddle East International Gas Exhibition 2023
77 78
Cooperation, the common path to achieve sustainable goalsJinhong Gas Co., Ltd.
Industry Co-construction
Jinhong Gas actively engages in industry seminars, significantly contributing to the overall development of the sector. Throughparticipation in these forums, companies can engage with experts, scholars, and entrepreneurs within the industry, gaining insightsinto the latest trends and developments. By the end of the reporting period, Jinhong Gas has established memberships withnumerous social organizations, including the China Industrial Gas Industry Association, the Integrated Circuit Material IndustryTechnology Innovation Alliance, the China Hydrogen Energy Alliance, and the China Semiconductor Industry Association. Theseaffiliations have enabled Jinhong Gas to continuously deepen and broaden its industry exchanges, fostering even greatercollaboration and cooperation.
The Fourth Meeting of the Sixth National Gas StandardizationTechnical Committee of the National Semiconductor Equipmentand Materials Standards Committee Gas Sub-committee
2023 Joint Annual Meeting of the National BottleLabel Committee Filling Branch National Gas Standard
Committee Mixed Gas Branch
2023 National Conference on Gas Standardization2023 China Gas Association Helium Industry Series
and Hydrogen Energy and Other Group Standards
Preliminary Review Meeting
79 80
Cooperation, the common path to achieve sustainable goalsJinhong Gas Co., Ltd.
Talent, the strongfoundation of our company
Employee StructureTalent IntroductionEmployee Rights and Interests
Salaries and BenefitsEmployee Training and DevelopmentEmployee Health
Jinhong Gas highly values talent reserve, emphasizing thedevelopment of internal talent diversity. It actively absorbs andnurtures numerous outstanding talents from the industry,providing a robust foundation for executing its comprehensivestrategic plans. Through meticulous talent development strategies,Jinhong Gas introduces and cultivates individuals, aiming to forgea highly educated, efficient, multi-disciplinary, and multi-tieredtalent team. By fostering a harmonious work environment, JinhongGas empowers each employee to unleash their full potential andstrive for excellence.
81 82
Jinhong Gas places significant emphasis on optimizing and enhancing its staff structure. By attracting and nurturing a diverse arrayof outstanding talents, it strives to cultivate a high-quality, innovative workforce that provides a consistent flow of energy for ourbusiness expansion and innovation efforts. This propels the enterprise towards continuous breakthroughs in product research anddevelopment, market expansion, customer service, and other critical areas.
Talent serves as the indispensable cornerstone for driving Jinhong Gas's progress. Therefore, we accord utmost priority to thediscovery and development of talents. Beyond merely posting recruitment information on job boards and social media platforms,we also reach out to the community and campuses, fostering close collaborative relationships with preeminent universities,headhunting agencies, and industry associations. Additionally, it employs a scientific talent evaluation and selection mechanism toidentify individuals who truly align with our cultural and strategic requirements.Jinhong Gas achieved an impressive recruitment completion rate of
97.80%, successfully bringing in a total of
593 new employees. This influx of fresh talent has significantly revitalized the company, ensuring its long-term stabilityand sustainable growth. Furthermore, in February 2023, we were honored as the "Outstanding Contribution Unit of TalentIntroduction" in Xiangcheng District in 2022.
Employee StructureTalent Introduction
Employee Structure
2,495?employees
21.80% employees are female
21.43% managers are female
593 new employees113 new female employees
Live Recruitment Event
During the reporting period, Jinhong Gas activelyparticipated in various recruitment events, including thelivestream activities in Xiangcheng District in June andthe "Talent Night Market" livestream recruitment inHuangdai Town in October. Leveraging an onlineefficient docking platform, the recruitment managerengaged in "cloud negotiations" with job seekers,discussing Jinhong Gas's growth trajectory, jobrequirements, and compensation packages. This allowedfor direct and seamless communication with potentialcandidates, fostering stronger connections and a deeperunderstanding of mutual expectations.Over 50 y.o.30 to 50 y.o.Up to 30 y.o.FemalesMales
Gender
Ethnic minority
employees
1,951544
Age
1,586
OthersFinanceTransportationSalesTechnologyProduction
Specialty
516327
Below junior collegeJunior collegeUndergraduateMasterDoctor（5）Education
1,392
Jinhong Gas Management Training ClassJinhong Gas proactively establishes a robustcommunication bridge with colleges and universities,viewing the recruitment of fresh graduates as acrucial component in cultivating a talented echelon.Additionally, Jinhong Gas devises a comprehensivemanagement training plan, enabling these newcomersto grow through practical experience and effectivelybolster Jinhong Gas's competitiveness.
General employeesGeneral managementMiddle managementSenior management（6）
Grade
2,117
Key Performance
During the Reporting Period:
83 84
Talent, the strong foundation of our companyJinhong Gas Co., Ltd.
The workers' congress serves as the fundamental platform fordemocratic management within Jinhong Gas, the principalvehicle for disclosing factory affairs, and the principalmechanism for workers to exercise their democraticmanagement rights. Jinhong Gas actively solicits the opinionsand suggestions of employees regarding the production andoperational management of the enterprise, as well as matterspertaining to the vital interests of its workforce. Our workers'congress is committed to safeguarding the collective bargainingrights and interests of employees, playing a pivotal role in affairsdisclosure, facilitating employee participation in democraticenterprise management, deliberating on significant matters thatimpact employees' vital interests, and ensuring decision-makingis conducted with fairness and transparency.
Democratic Management
In compliance with the Labor Law, the Regulations on Working Hours of Employees issued by the State Council, the Measures for theImplementation of Paid Annual Leave for Enterprise Employees, and other pertinent laws and regulations, Jinhong Gas has delineated thestandard working hours, types of leave, application approval processes, overtime policies, and other related matters. This ensuresthe safeguarding of employees' rights and interests, promotes a healthy work-life balance, and provides a solid foundation forJinhong Gas's stable and sustainable development.
Working hours
Gender equality is a crucial aspect of fostering a harmonious enterprise culture, and Jinhong Gas strongly advocates the principlesof "equality between men and women" and "respect for women." We firmly believe that women possess remarkable talent andcapabilities in the workplace. Consequently, we offer equal employment and promotion opportunities to our female employees,encouraging them to unleash their full potential and achieve their personal aspirations. Furthermore, we pay utmost attention tothe physical and mental well-being of our female workforce, providing comprehensive welfare benefits to ensure they receive thenecessary care and support in both their professional and personal lives.
Focus on Women's Rights and Interests
Workers' Congress
March 8th Women's Day Activities
2023 Annual Summary and CommendationCeremony & Workers’ Congress
Employee Rights and Interests
We strictly adhere to the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, the Protection ofMinors Law of the People's Republic of China, and other pertinent laws and regulations. We have formulated comprehensive systems suchas the Jinhong Gas Recruitment Management Regulations and the Jinhong Gas Labor Contract Management System to ensure fairness andtransparency in all recruitment and employment processes. Regardless of ethnic, racial, gender, religious, or other differences, allemployees are afforded equal employment opportunities. We are committed to safeguarding the legitimate rights and interests ofits workforce and striving to cultivate a "Multiplicity, Equality, and Inclusiveness" corporate culture.
Jinhong Gas did not have any violations or complaints concerning the use of child labor or forced labor.
Compliance Employment
100% labor contract signing rate100% social security coverage rate
100% five social insurance and one financial fund coverage rate100% full labor compensation/timely release rate
During the Reporting Period:
Key Performance
85 86
Talent, the strong foundation of our companyJinhong Gas Co., Ltd.
Staff SeminarJinhong Gas Sales System Summary
and Commendation Conference
Jinhong Gas fosters active communication and interaction with its employees through various avenues, including organizingemployee seminars, publishing internal newsletters, and holding departmental exchange meetings. These platforms encourageemployees to voice their suggestions and opinions regarding Jinhong Gas's operations and business practices, enabling continuousperformance improvement and enhancing work efficiency.
Diversified Communication Channels
Jinhong Gas regularly conducts monthly satisfaction surveys and publishes comprehensive analysis reports to listen attentively tothe voices and suggestions of its employees. We actively respond to their demands, aiming to enhance job satisfaction and loyaltyamong its workforce.
Employee Satisfaction Survey
Jinhong Gas Compensation Structure
Overtime PayDuty Allowance
LicensedAllowance
Performance
IncentiveAllowance
Post Allowance
Special/Other
SubsidiesBasic Pay
Jinhong Gas MonthlyDepartmental Meeting
North and East China Sales SummitExcellent Staff Experience Sharing
During the reporting period, 96.90% employee satisfaction
Salaries and Benefits
Jinhong Gas has established a comprehensive salary system that aligns salary income with job responsibilities and performance.This system incorporates a scientific performance appraisal framework that ensures employees being evaluated objectively andfairly based on their work outcomes. The results of these appraisals serve as the foundation for determining salary levels,thereby facilitating the standardization and institutionalization of salary management and distribution.
Employees are our invaluable assets, and a competitive welfare system serves as a magnet to attract top talents whileensuring the retention of our existing workforce. Therefore, in addition to competitive salaries, Jinhong Gas offers an arrayof benefits that include subsidies for high temperatures, holiday gifts, illness and injury assistance, congratulatory gifts fornewborns, complimentary working meals, regular health checks, and various other perks.
Compensation and Benefits System
Jinhong Gas Employee Welfare System
Subsidies for Preventing
Heat from HighTemperaturesFree Working Meal
Holiday GiftsPhysical Examination
Sickness and InjuryAllowanceOccupational HealthExamination
Birth CongratulationsHome Chartered Bus
Birthday CongratulationsHelp Employees in Need
Departmental ActivityUnion Benefits
Key Performance
87 88
Talent, the strong foundation of our companyJinhong Gas Co., Ltd.
In 2021 and 2022, Jinhong Gas introduced the Jinhong Gas 2021 Restricted Stock Incentive Plan and the Jinhong Gas 2022 Restricted StockIncentive Plan respectively, aimed at igniting employee enthusiasm, enhancing performance, attracting and retaining top talents, andfostering Jinhong Gas's sustainable growth in the long run.
Equity Incentive
During the reporting period, CNY 4,670.96 ten thousand in welfare expenditure
During the reporting period, CNY 178.03 ten thousand investment in trainingDuring the reporting period,100% training coverage of new employees
Outdoor ActivitiesMid-Autumn Festival and National Day
Carnival Activities
"Celebrate the New Year" CeremonyMid-Autumn Festival Welfare
Employee Training and Development
Aligned with its development strategy, we meticulously craft the Annual Training Plan, taking into account the specifictraining plans and needs of each department. It ensures that each training course undergoes diverse evaluation andfeedback mechanisms. Additionally, we conduct a comprehensive annual assessment of the training time and teachinghours completed by each employee, considering the completion of compulsory courses as a crucial factor in evaluatingemployee performance and eligibility for promotion.
Staff Training
Jinhong Gas Talent Training System
类型Training Course SystemMiddle/Senior Executive Training Program
Grass-roots Cadre Training Progrem
New Employee Orientation ProgramTraining Program for New College StudentsEducation Promotion Program( high school to junior college,junior college to undergraduate)
Title Promotion Project
干部培训
专业培训
新人培训
其它培训
Finance
HumanResources
R&DLogisticsQualityProductionEHS
Type
Cadre Training
Professional Training
Rookie Training
Other Training
Key Performance
Key Performance
89 90
Talent, the strong foundation of our companyJinhong Gas Co., Ltd.
Training ProgramTraining ObjectTraining Content
Management Trainee
Training Class
Management Trainee
Induction Training
Job Training and Job
Transfer Training
Core Values Training
Professional QualityTraining
BusinessAdvancementManagementAdvancementOutward Bound
TrainingLeadership Training
New Employee
Department responsibilities/Business learning.Specify learning materials and business documents.Introduce the relevant work process and provide business guidance.
Compulsory courses: system training, corporate culture training, productknowledge training, safety training.According to the department's job training manual, it mainly includes thesafety operation specification, equipment maintenance, emergency plan,6S and employee code of conduct.Training with Jinhong Gas corporate culture as the core, including: JinhongDNA, Speaking with results, Leading the team to get results and other courses.
How to grasp the work life, office skills (PPT+Excel+Word), Professional image andworkplace etiquette, stress and emotional management, five management and so on.
Seven series of training for marketing, customer service, human resourcemanagement, financial management, production quality management,technology research and development, logistics management.Three levels of management training for team leader management,juniormanager management, middle and senior management.Outdoor challenges, team building activities, thinking camp activities,cultural experience activities and other training.Macroeconomic, strategic planning, organization and management,business wisdom training.
New Employee
TransferredEmployee
All Employee
JuniorManagement
Personnel
Decision Maker
Leader
Elementary and
IntermediateManagerialPersonnel
Jinhong Gas initiated the "Jinhong Gas Liangjian Cloud School Project Program," which offers professional knowledgeexplanations and teachings encompassing leadership, workplace general functions, business etiquette, and other pertinentaspects. This endeavor aims to enrich course content, fostering a conducive atmosphere for internal sharing, communication,and learning. Furthermore, it establishes a learning platform that effectively reflects the unique corporate culture and learningprinciples of "Jinhong Gas."
Concurrently, we maintain an internallecturer team, primarily comprised of itscadres, outstanding business personnel,and departmentally recommendedindividuals. This team is stratified intothree levels: A-level lecturers, B-levellecturers, and C-level lecturers. As of thereporting period's conclusion, the Groupboasted a total of 56 lecturers, including 6at the A-level, 17 at the B-level, and 33 atthe C-level.
Training Platform Construction
We have developed a comprehensive suite of system documents, including Training and Education Management Regulations and TrainingControl Procedures. Furthermore, we offer tailored training programs to different employees, taking into account their uniqueaptitudes and skill sets.
Hierarchical Training
Jinhong Gas Liangjian Cloud School Functional Framework
91 92
Talent, the strong foundation of our companyJinhong Gas Co., Ltd.
Apart from offering fundamental training, Jinhong Gas actively encourages and backs its employees in actively pursuing internaland external qualifications pertinent to the business. It remains steadfast in its commitment to cultivating a multidisciplinary talentpool that is dedicated, ethical, skilled, innovative, and enriched with diverse talents.
Eagle Talent Training Program"Third Command Project" Personnel Training Project
Management Trainee to Model Training CampHigh Performance Sales Team Building Course
Vocational Skill Level Certification ExamDelivery Clerk Training Program
Jinhong Gas holds the career development of its employees in high regard, continuously striving to refine its promotion systemand enhance employee enthusiasm. This ensures robust talent support for Jinhong Gas's sustainable growth. To fully tap intointernal talent, Jinhong Gas has established the Jinhong Gas Employee Transfer Management Regulations. This allows employees to seekdevelopment opportunities, aligning with their career planning and personal interests.
Staff Development
Employee HealthPaying attention to employee health is instrumental in boosting work efficiency, satisfaction, and promoting the sustainabledevelopment of enterprises. Jinhong Gas has formulated a comprehensive health and safety policy, established an effectivemanagement system, and launched promotional programs to prioritize the physical and mental well-being of its employees. Regularhealth check-ups and fitness activities are organized to promote a healthy lifestyle. Furthermore, we place particular emphasis onthe quality of drinking water and sanitation environment, providing employees with qualified drinking water equipment andarranging regular cleaning and disinfection of sanitation facilities by professional personnel. Additionally, we regularly commissionsprofessional third-party organizations to conduct comprehensive workplace testing, ensuring a hygienic, healthy, and comfortableworking environment for its employees.
We passed the ISO 45001 Occupational Health and Safety
management system certification.
ISO 45001 Occupational Health and SafetyManagement System Certification
During the Reporting Period:
93 94
Talent, the strong foundation of our companyJinhong Gas Co., Ltd.
Responsibility, thecommitment to oursocial contribution
Care for the Next GenerationPublic Welfare Activity
As a socially responsible enterprise, Jinhong Gas not only prioritizeseconomic benefits but also emphasizes fulfilling socialresponsibilities and obligations. Committed to sustainabledevelopment as our ultimate goal, we remain deeply mindful ofsocietal issues, proactively discharging our social responsibilities,and enthusiastically participating in public welfare activities. It isthrough these tangible actions that we strive to execute ourcommitment to societal duties.
95 96
Throughout our business development, we have remained steadfast in its original aspirations, upholding social responsibility andactively engaging in various charity projects. These include assisting the elderly, aiding the impoverished, supporting the disabled,assisting students, and aiding doctors, among others. With practical actions, we have supported the advancement of social charityefforts, delivering warmth and infusing positive energy into our community.
To better cater to the residents' oxygen therapyrequirements, Jinhong Gas undertakes the crucialtask of supplying medical oxygen to multiplecommunity oxygen inhalation points. We ensure theprompt and precise delivery of high-quality medicaloxygen, thereby safeguarding the residents' oxygentherapy needs and their overall health and safety.
In recent years, Jinhong Gas has generously donated tovarious organizations, including the Jiangsu VirtusFoundation, Suzhou Charity Federation, Suzhou Caringfor the Next Generation Foundation, the "XiangyanghuaScholarship Fund" of the Suzhou New GenerationEntrepreneurs Chamber of Commerce, Suzhou YouthDevelopment Foundation, Suzhou Xiangcheng DistrictCharity Association, and Huangdai Town CharityAssociation. Additionally, we pledged "Youth BlessingBags" to the "Warm Winter Action" campaign led by theSuzhou Youth League Committee and Youth DevelopmentFoundation. We also actively participated in the "WarmFeelings · Build a Dream for the Future" student aidprogram initiated by the Charity Association of HuangdaiTown, Xiangcheng District, Suzhou City. Furthermore, wedonated books to Suzhou Industrial Park Star Bay School,Suzhou No. 10 Middle School, Suzhou Zhenhua MiddleSchool, and other institutions to contribute towards theestablishment of "bookish campuses" and supported thegrowth and development of young individuals.
医用氧产品
Public Welfare Activity
Care for the Next Generation
Book Donation of “Scholarly Campus” Project
Under the auspices of the Suzhou Caring for the Next Generation Work Committee, Jinhong Gas contributes significantlyto the establishment of Suzhou's school education "Scholarly Campus" project. We actively engage in the "LoveNourishing Education, Charity Feeding the Future" book donation campaign, aim at fostering a reading culture withincampuses and supporting the educational development of future generations.
To embody goodness and walkin the light, Jinhong Gas, as aproud member of the caringenterprises, lends support toSMIC's "Xingan Baby Project."We actively participate indonations, making modest yetmeaningful contributions, andspreading warmth through ourtrickle of love to bring morehope to children in need.
Xingan Baby Project
"Xingan Baby Project" Donation Ceremony
Medical Oxygen Products
Book Donation Ceremony
Meeting with some Directors of Caringfor the Next Generation Foundation
97 98
Responsibility, the commitment to our social contributionJinhong Gas Co., Ltd.
Alongside this, Jinhong Gas remains committed tosafeguarding traditional culture, steadfast in ouradherence to the principles of preserving andhonoring it." Reflecting this commitment, we activelyparticipated in the co-organization of the "Chengjie"cultural propaganda group's inaugural performanceand the "Our Festival · Yuanxiao" cultural activitiesduring the 2023 Lantern Festival. Through traditionalperformances encompassing Pingzhu, tin opera,Yangcheng fishing songs, dance, and other art forms,we showcased the profound spiritual essence of theParty's 20th Congress in a manner that resonatedwith the masses. Furthermore, we celebrated theinspiring and heartwarming narratives of Xiangcheng,paying tribute to its rich cultural heritage.
Express genuine feelings through actions, convey love through deeds. Jinhong Gas donated money to Wuzhong District Big Benrescue dog mobile team to support the construction of Wuzhong District Big Ben rescue dog mobile team.
We expressed heartfelt condolences to the nursing home for the elderly, demonstrating our profound love and care for the staffand residents. This gesture underscores our commitment to corporate social responsibility and its dedication to humanistic care.
Furthermore, we regularly take part in voluntary blood donation events. Our employees actively sign up and volunteer, willinglycontributing their share of love to society. These unpaid blood donation activities not only demonstrate our commitment to socialresponsibility and compassion, but also underscore the selfless dedication and service-mindedness of our employees.
Donation Certificate
Voluntary Blood Donation Scene
"Chengjie" Culture Benefit the People
Community Sympathy
99 100
Responsibility, the commitment to our social contributionJinhong Gas Co., Ltd.
The growth of enterprises and the undertaking of social responsibility are interrelated,they mutually influence each other and collaboratively promote the development ofbusinesses. To achieve healthy and sustainable development, enterprises focus shouldextend beyond their own operations and profits, but also actively fulfill their socialresponsibilities. Corporate social responsibility can not only enhance brand image andreputation, but also create broader development space and opportunities for enterprises.Jinhong views environmental, social, and corporate governance as integral componentsof fundamental operations, alongside research and development, production, and sales.This approach not only serves as a cornerstone for Jinhong's sustainable and long-termdevelopment, but also represents a crucial means for enterprises to fulfill their socialresponsibilities. In our daily operations, we prioritize balancing the interests of all parties,with a particular focus on environmental protection, social responsibility, and corporategovernance matters. We are committed to actively fulfilling the needs of all stakeholders,safeguarding their rights and interests.As a preeminent Group in the domestic industrial gas industry, we fully grasp thesignificance of corporate social responsibility and seamlessly integrate it into ourlong-term development strategy. We examine the intricate nexus between socialresponsibility and the enduring prosperity of enterprises through the prism of societal,environmental, and economic harmony. Our endeavor is to transform social responsibilityinto a catalyst for enterprise growth and enduring benefits. We aim to achieve aharmonious blend of economic profitability and societal welfare, thereby contributing tothe sustainable development of society as a whole.
Look forwardto the Future
101 102
Reporting IndexAppendix
CatalogueCASS-ESG 5.0（GRI Standards）
Sustainability Concept
Governance StructureReturns to ShareholdersInvestor Rights and InterestsInformation DisclosureRisk ManagementBusiness EthicsInformation Security
ManagementGuidance of Party Building
Sustainability GoalAdvancing for Our
StakeholdersIdentification of Material
Topics
About Jinhong Gas
About this ReportP1.1/P1.2/P1.3/G3.7
P4.1/P4.2/P4.3/P4.4G3.2G3.2G3.6G3.5V4.3/V4.4/V4.5
G1.1/G1.2
G1.10G1.10G1.10G1.3G1.5/G1.6/G1.7/G1.8/G1.9
S4.6
/E1.1/E1.2/E1.3/E1.4/E1.5/E1.6/E1.7E1.8/E2.1/E2.2/E2.4/E5.1/E5.5/E5.6
E2.9/E2.10/E3.1/E3.2/E3.3/E3.4/E3.5/E3.6/E3.8
E4.1
P2.1/P2.2
P3.1
2-2/2-3/2-4
2-1/2-6/2-9
2-9/2-14
2-222-16/2-293-1/3-2/3-3
302-52-9/2-10/2-11/2-12/2-27
2-122-16/2-27/2-29
/2-12/207-1/207-2205-1/205-2/205-3/206-1
418-12-272-12/2-27302-1/302-2/302-3/302-4/302-5/305-1/305-2
303-1/303-2/303-4/303-5/306-1/306-2/306-3/306-4/306-5
304-1/304-2
//
Message from the
ChairmanHighlights ofSustainableDevelopment in 2023
Compliance,the basis ofour corporate
governance
Environment, theimportant part ofbuilding ecological
civilization
Topic: Green Mission for the Gas Industry
Environmental Management
Energy ManagementEnvironmental Impact
ManagementEcological Conservation
SustainabilityManagement
CatalogueCASS-ESG 5.0（GRI Standards）
R&D Innovation and IPManagementExcellence, theultimate pursuit ofquality development
Cooperation, thecommon path toachieve sustainable
goals
Talent, the strongfoundation of our
company
Responsibility, thecommitment to oursocial contribution
Appendix
V2.1/V2.2/V2.3S4.1/S4.4/S4.5V1.1/V1.3/V1.4S3.3/S3.4/S3.5/S3.6/S3.7/S3.8
/S3.9/S3.10/S3.11
S4.1/S4.7/S4.8S5.1/S5.2/S5.7
V1.1/V1.3V2.5/V2.7
S1.3V3.1/V3.2S1.1/S1.2/S1.4/S1.6/S1.8/S1.9/S1.10/S1.11
S2.1/S2.2/S2.3/S2.4
S3.1/S3.2
V3.3
S1.7
V2.8
Quality ManagementIntelligent Manufacturing
Safe ProductionCustomer Service
Supplier ManagementStrategic Cooperation
Global ExpansionIndustry Co-construction
Employee Structure
Talent IntroductionEmployee Rights and
InterestsSalaries and
BenefitsEmployee Trainingand DevelopmentEmployee HealthCare for the NextGenerationPublic Welfare ActivityLook forward to the Future
Reporting IndexPerformance TableFeedback Form
V3.4/V3.5A1A4A2A5
203-1416-1
/403-1/403-2/403-3/403-4/403-5/403-6/403-7/4
03-8/403-9/403-10
416-1414-1
/
/405-1401-1401-2/406-1/407-1/408-1/409-1
404-1/404-2/404-3
403-1203-1
201-3
/
203-1/413-1
/
/
/2-16
103 104
AppendixJinhong Gas Co., Ltd.
Performance Table
Dimensionality
IndicatorsUnit2023
Environmental Management
2023
EnvironmentalPerformance
Resource Management
Greenhouse Gas Emission Management
Management of Three Wastes Discharge
RevenueNet Imcome Attributable to Shareholders of Listed Company
Total assetsTotal Tax Payment (Excluding personal income tax)
Shareholders' meeting convenedProposal Passed at Shareholders' General Meeting
Board of DirectorsIndependent directorFemale directorDirectors Board MeetingProposal Deliberated by Board of Directors
Supervisory board meetingProposal Deliberated by Board of SupervisorsCash dividend per share (Tax included)Total Amount of Cash Dividends Disbursed (Tax included)
Performance presentation
Investor communicationSSE E-interactive replySSE E-interactive response rate
Regular report disclosureInterim announcement disclosure
Internal audit projectStaff anti-corruption training coverage
Major violation of business ethicsInformation security related incidents
Percentage of net income attributable to shareholders
of listed corpany in consolidated statement
EconomicPerformance
GovernancePerformance
CNY Ten thousandCNY Ten thousandCNY Ten thousandCNY Ten thousand
TimesItemsPersonsPersonsPersonsTimesItemsTimesItemsCNYCNY Ten thousand%TimesTimesTimes%PiecesPiecesItems%TimesTimes
242,735.33
Environmental protection inputCompliance rate of waste water, waste gas, dust and noise
Chemical spill incidentOther major environmental violationsEvents that have a major impact on biodiversity
Comprehensive energy intensityIntensity of LNG consumptionIntensity of gasoline consumptionDiesel fuel consumption intensityIntensity of consumption of purchased power
Intensity of purchased heat consumption
Water use intensityGreenhouse gas emission intensity (Scope 1 and Scope 2)
Greenhouse gas (Scope 1) emission intensityGreenhouse gas (Scope 2) emission intensity
Carbon reduction from renewable energy
Wastewater discharge intensity
Recycling rate of wastewater
Exhaust emission intensityParticulate emission intensity
SO
emission intensityNOx emission intensityVolatile organic compounds emission intensity
General industrial waste produces strengthCompliance rate of general industrial waste generated
Hazardous waste generation intensityCompliance rate of hazardous waste generated
CNY Ten thousand%TimesTimesTimesTons of standardcoal/CNY millionTons/CNY millionTons/CNY millionTons/CNY millionkWh/CNY million
Gj/CNY millionTons/CNY milliontCO
e/CNY milliontCO
e/CNY milliontCO
e/CNY million
tCO
eTons/CNY million
%Ten thousand cubicmeters/CNY million
Tons/CNY millionTons/CNY millionTons/CNY millionTons/CNY millionTons/CNY million
%Tons/CNY million
%
333.70
7.42
0.01
0.01
1.74
38,845.37
2.01
1,288.41
27.77
5.55
22.37
384.17
20.36
14.77
5.72
2.29x10
-4
4.45x10
-4
1.35x10
-4
4.12x10
-4
0.002
0.017
31,500.14623,965.93
17,807.94
0.25
12,030.06
52.50
DimensionalityIndicatorsUnit
105 106
AppendixJinhong Gas Co., Ltd.
Product Quality
2023
IndustrialPerformance
Safe Production
Customer Service
2023
EmployeePerformance
Supplier Management
Employee Rights and Interests
Compensation and Benefits
Democratic Management
Staff Training and Development
Technological Innovation & Intellectual Property ProtectionInvestment in R&DR&D investment as a percentage of revenue
Total number of R&D teamNumber of master degree or above in R&D team
New patent applicationNew application for invention patentNew application for utility model patent
Newly granted patentNew authorized invention patentsAccumulated authorized patentsAccumulated authorized invention patents
Quality internal auditA product recall occurredSafety inputMajor casualty accidentIncidence of occupational diseaseFire, explosion accidentDeaths in the line of dutySafety training coverageConduct safety emergency drillsParticipate in safety training staff
Customer satisfactionCustomer complaint resolution rate
CNY Ten thousand
CNY Ten thousand
%
%TimesPersons
%
%
%
TimesPerson-time
Persons
Persons
Items
Items
Items
Items
Items
Items
Items
Times
Times
Times
8,630.14
Integrity training coverage
New employeesRecruitment completion rateBring in new female employees
Total number of employeesCoverage rate of labor contractCoverage of five social insurance and one financial fund
Full labor compensation/timely release rate
Proportion of women in management
Percentage of female employees
Minority employeesEmployment violationsEmployee welfare expenditure
Employee satisfaction
Training investmentNew employee training coverage
Internal lecturer
%100Persons593
%97.80Persons113Persons2,495
%100
%100
%100
%21.43
%21.80Persons29Times0CNY Ten thousand4670.96
%96.90CNY Ten thousand178.03
%100Persons56
3.56
3,240.87
17,888
99.05
DimensionalityIndicatorsUnitDimensionalityIndicatorsUnitIndustrialPerformance
107 108
AppendixJinhong Gas Co., Ltd.
Feedback Form
Thank you for taking the time to read Jinhong Gas CO.,LTD. 2023 Environmental, Social, and Governance (ESG)Report. We greatly appreciate your feedback on our ESG efforts and this report, as it serves as a crucial foundationfor us to continually enhance the level of transparency in our ESG information disclosure. Your comments andsuggestions are invaluable in promoting the management and practice of sustainable development within ourenterprise. Kindly complete the form below and send us your feedback via email.
Mail : dongmi@jinhonggroup.com
1.As far as Jinhong is concerned, your identity is：
□ Regulatory agency □ Client □ Employee □ Public □ Supplier
□ Shareholders and Investors □ Trade association □ Medium □ Other__________
8.What are your comments and suggestions on our specific actions to fulfill our social
responsibility and sustainable development, as well as this report?______________________________________________________________________________
9.In addition to what has already been revealed in this report, what other information
would you like to see?______________________________________________________________________________
2.Your overall assessment of our ESG performance is：
□ Excellent □ Good □ Neutral □ Poor □ Bad
3.Your overall assessment of this report is：
□ Excellent □ Good □ Neutral □ Poor □ Bad
4.What do you think of the quality of ESG information disclosed in this report?
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5.What do you think of the structure of this report?
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6.What do you think of the layout and presentation of this report?
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7.Can you easily find the information you are interested in in the report?
□ Yes □ Neutral □ No