Guangdong Huate Gas Co., Ltd.Phone: 400-888-1188Address：LiShui Heshunjinfeng Road, Nanhai District, Foshan City, GuangdongProvince W
Stock Code：688268
ebsite：http://www.huategas.com/index.aspx
20232023
HUATE GAS’S 2023 ESG REPORT
GOVERNANCE (ESG) REPORTENVIRONMENTAL, SOCIAL AND
This Report is the 2nd Environmental, Social and Governance Report of Guangdong Huate Gas Co., Ltd. Based on objective,comprehensive, regulative and transparent principles, this Report expounds management ideas, key practices and annual achievementsfor environmental, social and governance work of Huate Gas in 2023.
This report was approved by the Board of Directors of the Company on 11 April 2024 and was published at the same time as the AnnualReport. The Board of Directors undertakes to monitor the contents of the report and to ensure that it does not contain any falseinformation or misleading statements and is responsible for the truthfulness, accuracy and completeness of the contents.This report is published in Chinese. The English version has been translated from the Chinese version and in case of any discrepancybetween the two versions, the Chinese version shall prevail.
You may browse or download the Report (the electronic version) at the official website of Huate Gas (www.huategas.com) or at thewebsite of Shanghai Stock Exchange (www.sse.com.cn) .
About this Report
Abbreviation of CompanyFull Name of Company
Huate Gas, Company or weSouthern China Special Gas Institute
Xinhui Special Gas Insititute
Zhongshan HuaxinSuining Country United Chemical
Jiangxi HuateAsia Pacific Gas
Guangdong Huate Gas Co., Ltd.Guangdong Southern China Special Gas Institute Co., Ltd.JiangMen City Xinhui Special Gas Insititute Co., Ltd.
Zhongshan Huaxin Gas Co., Ltd.Suining Country United Chemical Co., Ltd.Jiangxi Huate Electronic Chemical Co., Ltd.Asia Pacific Gas Industry Co., Ltd.
Appellation Description
Report Preparation and Approval
Access to the Report
The sources of data used in the report include the original data of the Group's actual operation, public data from governmentdepartments, annual financial data, relevant internal statistical statements, third-party questionnaires and third-party evaluationinterviews. The financial data in this report is denominated in CNY, and if there is any inconsistency with the financial report, thefinancial report shall prevail.
From 1 January 2023 to 31 December 2023 (the "reporting period").In order to enhance the comparative and forward-looking nature of this report, some of the contents are retrospective orforward-looking where appropriate. This report is issued on an annual basis, in line with the financial year.
Guidelines on Self-regulation of Listed Companies on the Science and Technology Innovation Board of Shanghai Stock Exchange No. 1—Standard OperationRules Governing the Listing of Stocks on the Science and Technology Innovation Board of Shanghai Stock ExchangeThe Chinese Corporate Social Responsibility (CSR) Report Preparation Guide (CASS-CSR5.0)Global Reporting Initiative Sustainability Reporting Guidelines (2021 edition)Sustainable Development Goals of the United NationsSustainability Accounting Standards Board SASB GuidelinesThe Guidelines on Corporate Social Responsibility of State-owned Companies
Unless otherwise stated, this Report includes Guangdong Huate Gas Co., Ltd.’s headquarters, all the branches and subsidiaries, with thesame scope of 2023 Annual Report of Huate Gas.
Scope of the Report
Time Range
Reporting Guidelines
Accuracy
About this ReportMessage from the ChairmanReport HighlightsAbout Huate GasSustaianble Management
Governance SystemCompliance GovernanceInvestor Relations ManagementCorporate EthicsInformation SecurityParty Building
Governance
Environmental ManagementEnvironmental Risk ManagementResourcesEmissions ManagementBiodiversity Preservation
Environment
InnovationProduct ResponsibilityThe Huate Gas Supply ChainCaring for Customers
Product
Rights and BenefitsPersonnel TrainingHealth and Safety at Huate Gas
Our People
ESG Data SummaryIndex Table of IndicatorsFeedback Form
Appendix & Disclosures
Green Public WelfareDonationStrategic Cooperation
Communities
Future Expectations
In response to the specialaction initiative aimed at"Enhancing Quality, BoostingEfficiency, and GeneratingReturns"
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Shanghai Aerospace Automobile Electromechanical Co., Ltd.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
future for the gas industry.employees. With a more open mindset, we will actively fulfill our social responsibility and join hands with all parties to create a betterits innovation capacity, promote strategic cooperation within the gas industry, and continuously optimize welfare benefits forHuate Gas will adhere to the core strategy of sustainable development, continue to enhance its green development strategy, strengthenenvironmental protection and donations.harmonious progress" in our actions. We actively participate in social welfare undertakings and contribute to the society throughsymbiosis between the enterprise and the society, and have deeply planted the guideline of "concentricity in public welfare and
We understand the way of In terms of social responsibility, Huate Gas is grateful and actively fulfils the social responsibility.opportunities, create a positive working atmosphere, and strengthen the sense of belonging and cohesion among employees.development. We will enhance employee welfare benefits, improve the training mechanism, provide employees with more developmentemployee development into our business mission. We respects the rights and dignity of our employees and priority their growth andthe rights and interests of our employees and fostering a sense of unity. It has integrated the goal of providing the best platform for
We uphold the principle of protecting In terms of our people, Huate Gas takes people as the centre and builds a talent highland.
enterprises to promote the synergistic development of the industrial chain and achieve resource sharing and mutual benefit.customers with safer and more efficient gas products and services. We actively cooperate with upstream and downstreamtechnology research and development and product innovation, and constantly improve product quality and service level, to providethe first power to lead the development, the company to "innovation-driven, industrial take-off" as the strategy, focusing on
Innovation is In terms of industrial development, Huate Gas embraces innovation as our core soul and shares the fruit of value.protection of the environment.protection concepts, encourage employees to participate in environmental protection activities, and jointly contribute to theemission in the production process. At the same time, We actively advocate green office, green travelling and other environmentalin environmental protection, introduce advanced environmental protection technology and equipment, and reduce the pollutionfirst, sustainable development", strictly abide by the national environmental protection laws and regulations, increase the investment
We adhere to the road of "green In terms of environment, Huate Gas advocates green and carries out low-carbon production.financial status to shareholders and the public in a timely manner, and strengthen credibility and social recognition.transparency and compliance of our operation, actively fulfil the obligation of information disclosure, disclose our operation andthe principle of "orderly governance, solid enterprise", constantly improve the corporate governance structure, ensure the
We always adhere to In terms of governance, Huate Gas adheres to the norms and strengthens the cornerstone of governance.a better future.our wisdom and strength towards the prosperous development of the gas industry, and thereby contributing to the construction ofGas always sticks to the original intention and is committed to realising the long-term development of the enterprise, contributingWith the rapid development of the global economy, the concept of sustainable development has gained increasing popularity. Huate
Chairman：
Message from the Chairman
2023 Report Highlights
Economic Performance
Environmental Performance
Governance Performance
R&D Performance
Social Performance
Note: Total social contribution value = Net profit + income tax expense + business tax and surcharges + cash paid to and for employees +current employee compensation - previous employee compensation + financial expenses + donation - sewage and clean-up costsSocial Contribution Value per share = The average of total social contribution Value/total number of shares at the beginning and end of
The total social contribution value of the company in 2023 is about
CNY419MILLION
The social contribution value per share is CNY 3.48
the period
Our key figures
Operation revenueNet ProfitInterest expenseTotal shares
CNY 1.5 billionCNY 172 millionCNY 29 millionCNY 120 million
Total environmental expenses
ElectricityTotal water consumptionTotal GHG emissions
CNY 944.6 million
10,129,154.65 kWh118,376 Tonnes14,794.35 tCO
e
Shareholders' general meetingBoard meeting?Supervisory board?meetingAnti-Corruption trainingInternal risk management training
Legal training
4 times17 times14 times25 times20 times4 times
R&D investmentPatentsSoftware publicationsTrademarksPublished papers
CNY 50.4288 million
No. of volunteers
Public inputEmployee benefit expensesEmployee training coverage
CNY 448.4 millionCNY 27.676 million
100%
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Guangdong Huate Gas Co., Ltd. was founded in 1999 and,was listed on the Science and Technology Innovation Boardof Shanghai Stock Exchange on December, 2019, with the stock abbreviation of “Huate Gas” (Stock Code:
688268.SH),which is the the first company in Foshan to be listed on the Science and Technology Innovation Board andthe first gas industry enterprise in China to be listed on the Science and Technology Innovation Board.We are committed to the localisation of special gases, to break the very large-scale integrated circuits, new displaypanels and other high-end fields of gas material constraints, the main business of special gases as the core of the R&D,production and sales, supplemented by common industrial gases and related gas equipment and engineering business,to provide a one-stop integrated application of gas solutions.
Huate Gas Profile
Our CultureAbout Huate Gas
Committed to gas R&D andapplication, and becoming aleader in the gas industry.
Vision
Harmonious, enterprising,
pragmatic, adaptable.
Enterprise Spirit
Identity, responsibility, equality,safety and environmental
protection.
Values
Provide the best platform foremployee development, enhance
the competitiveness of Chinese
gas industry, and create
maximum value for customers
and society.
Mission
Achievement of customers, andget self-improvement.
Business Philosophy
About this Report
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
1993
1996
Southern China Special GasInstitute (the predecessor ofHuate Gas) was established.
The rare gas products weredeveloped and successfullyapplied to downstream.
The research anddevelopment of specialgas blends was started,and we launchedAr+CO
blends, whichbecame the firstdomestic special gascontainer gas.
Foshan Huate Gas Co.,Ltd. was established.
1998
1999
2007Our products successfully enteredthe Taiwan semiconductor market.
2005Formally entered theresearch and developmentand application of electronicspecial gases and theproducts entered 4 inchsemiconductor factories forthe first time.
Identified asa High-techenterprise.
2008
2012
2014Undertook the research anddevelopment of the “SpecialGases for Flat Panel Displays”in the project of Pilot ClusterDevelopment of StrategicEmerging Industries inGuangdong Province(next-generation displaytechnology) .
The Hong Kong subsidiarywas established.
2017Obtained Excellence Awardof National Patent Award “Apurification method forhexafluoroethane”.Our products forphotolithographyindependently developedby us obtained thecertification of ASML.Awarded the title of theSecond (2017)“Top 10Professional ElectronicChemical MaterialsManufacturers in China”inChina’s electronics materialsindustry.
2019
Listed on the Science andTechnology Innovation Board.Awarded the title of“ChineseEnterprise with the Advantageof Intellectual Property”.Identified as a high-technologyenterprise for the fourth time.Awarded the title of the Third(2019) “Top 10 ProfessionalElectronic Chemical MaterialsManufacturers in China” inChina’s electronics materialsindustry.
2021Our products enter the well-knownsemiconductor factory in Germany.4 kinds of gas products forphotolithography obtained thecertification of Gigaphoton Inc. ofJapan.Awarded the title of the Fourth (2021)“Top 10 Professional ElectronicChemical Materials Manufacturers inChina” in China’s electronics materialsindustry.
2013Undertook the “High Purity Electronic GasResearch and Development andIndustrialization”in the major national R&Dproject “Extremely Large Scale IntegratedCircuit Manufacturing Equipment andComplete Sets of Technology” (02 specialproject), in charge of the topic “Researchand Development and Pilot Plant Test ofHigh Purity Trifluoromethane”.20th anniversary.Foshan Electronic Gas Research andDevelopment Center was established.Our fluorocarbon products entered thewell-known semiconductor factory inTaiwan.Our products into China's well-knownsemiconductor factory.
2015Inaugurated a joint laboratory withGuangdong Industrial TechnologyResearch Institute .Obtained Guangdong ProvincialEnterprise Technology Centerrecognition.
Our productsentered thewell-knownsemiconductorfactory in SouthKorea.
2018
2020
2006
Successfully developedthe excimer laser gasindependently andrealized the importsubstitution of clinicalmedical gases.
Our productsentered thewell-known memorymanufacturers inSouth Korea.Our products enterthe well-knownsemiconductorfactory in Singapore.
2011
Participated in the researchand development projectscombining production,education and research ofGuangdong ProvincialDepartment of Education,mainly in respect of specialgases applied in thesemiconductor field.
2010
2022Our products have passed thecertification of famoussemiconductor factory in Korea.Awarded the title of “Top 20Listed Companies in Respect ofCorporate Governance in theGreater Bay Area in 2022”.Our products intoChina's well-knownsemiconductorfactory.
2023Awarded the title of “Top 20Listed Companies in Respect ofCorporate Governance in theGreater Bay Area in 2022”.Awarded "GuangdongSpecialised, Specialised and NewSmall and Medium-sizedEnterprises", "GuangdongInnovative Small andMedium-sized Enterprises","Guangdong Patent Award ofExcellence", "GuangdongManufacturing Industry IndividualChampion".
Our Development
About this Report
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Shareholding Structure of Huate Gas
Shareholding StructureEnterprise Honors
China Integrated CircuitInnovation Alliance
Awarding UnitHonor TitleThe 6th "IC Innovation Award"Achievements Industrialization Award
The Ministry of Industryand Information Technology
Awarding UnitHonor Title
Specialized and Sophisticated SMEs
The People's Government
of Guangdong Province
Awarding UnitHonor Title
Guangdong Patent Award of Excellence
Nanhai District Science andTechnology Bureau of Foshan City
Awarding UnitHonor TitleLeading Enterprises of Foshan Nanhai
District Science and Technology
The People's Government of Foshan City
Awarding UnitHonor Title
2023 Foshan Science and Technology
Leading Enterprises(Innovation Effectiveness)
Guangdong Provincial Department ofIndustry and Information Technology
Awarding UnitHonor Title
Specialized and Sophisticated SMEsin Guangdong Province
Guangdong Provincial Department ofIndustry and Information Technology
Awarding UnitHonor TitleInnovative Small and Medium-sizedEnterprises in Guangdong Province
The People's Government ofGuangdong Province
Awarding UnitHonor TitleGuangdong Patent Award of Excellence
The People's Government ofGuangdong Province
Awarding UnitHonor TitleGuangdong ManufacturingIndividual Champion
China National IntellectualProperty Administration
Awarding UnitHonor TitleNational Intellectual PropertyAdvantage Enterprise
Huahong Investment
Zhang SuipingShi PingxiangFu ZhuhongShi SihuiZhang SuihuaGuangdong Huate Gas Co., Ltd.
Huahe Investment
Huate Investment
Huajin Investment
South China Research InstituteFoshan HuayueSuining United Chemical IndustryChenzhou XiangnengJiangxi HuateHuapu TechnologySihui MoisteningHuaqi New MaterialsHuate New MaterialsQingyuan LianshengFoshan lintShenzhen HuaxiangZhejiang HuakeFoshan HuayanHuakai, HeiheGuangdong BaogusXinhui InstituteHuizhou HualongZhongshan HuaxinEast China, JiangxiDongguan High EnergyShanghai Huayao Ding
Shenzhen New Dragon Changxing
Thailand Huate
Asia Pacific GasAsia International
Asian industrial gasesAsian Gas InvestmentAxiom Gases Sdn.Bha
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.About this Report
Huate Gas is well aware of the far-reaching impact of corporate social responsibility and sustainable developmenton society. While continuously pursuing economic benefits, We are firmly committed to the path of sustainabledevelopment. Through the practice of sustainable development, we can enhance the comprehensive value andcontribute to the sustainable development of the society.
Sustainability Development
Sustaianble Management
GovernanceIssues
EnvironmentalIssues
Industrial
Issues
EmployeeIssues
Commonwealth
Issues
Optimising the governance mechanism of the threecouncils and strengthening risk management awareness.Adherence to honest business principles and transparentand reasonable disclosure of information.
Promote the development of innovation ability and refinethe supply chain management.Commitment to product quality improvement, improvecustomer service system.
Focus on creating social value and actively assume socialresponsibility.
Improve the environmental management system andenhance the efficiency of resource use.Strict emission pollution management, focusing onecological environmental protection.
Maintaining a diverse and equal workplace andpromoting the development of employees' abilities.Protecting employees' occupational health and creatingshared value together.
Sustaianble Management
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Sustainability Goal
Huate Gas’s Supporting InitiativesUN SDGs
Governance
Environmental
Industrial
Employee
Communities
Huate Gas’s Supporting InitiativesUN SDGs
Integration of sustainability concepts into corporatestrategy and daily operations；Established a perfect governance structure of our threecommittees in accordance with the law, adhered to theprinciple of operating in compliance, set up the AuditDepartment, and continuously maintained and improvedour internal control system；Standardise the information disclosure process, broadeninvestor communication channels, and give investorscontinuous and scientific profit distribution；Continuously improve the construction of our businessethics system, and regularly conduct anti-corruption andanti-unfair competition training.
Provide equal opportunities in recruitment, welfare,promotion, training and do not discriminate againstemployees on the basis of gender, age, race, religion,etc.；Ensure fairness in employee income and establish areasonable remuneration system and incentivemechanism；Provide women with the same job opportunities asmen and ensure equal opportunities for women in therecruitment and promotion process；Creating a female-friendly work environment,supported by appropriate facilities；Provide training and retraining opportunities for theprofessional development of employees；Provide safety training and protective equipment tosafeguard the occupational health and safety ofemployees.Fulfil social responsibility, make external charitabledonations and actively support the development ofcharitable and public welfare undertakings；Participate in public welfare, organise our employeesto take to the streets to pick up discarded rubbish onthe road surface and put it into separate places；Promotion of co-operation and communicationbetween Russia and China in the field of gases.
Strengthening environmental protection measures andimproving environmental and environmental riskmanagement systems；Increased efficiency in the use of resources；Establishment of wastewater, waste gas and solidwaste treatment facilities to ensure that they meetstandards for discharge or reuse；Reduce the discharge of wastewater, waste gas andsolid waste, and reduce the pollution of the ecologicalenvironment of the waterside；Firmly implement the concept of "three simultaneous",and regularly monitor the ecological andenvironmental impacts within 5 kilometres of theboundaries of our plants.Increase investment in scientific and technologicalresearch and development, and promote scientific andtechnological innovation in the field of electronics；Strengthening co-operation with universities andscientific research institutes and promoting theintegration of production, learning and research；Strictly control the quality of products and provide highquality service；Establishment of perfect supply chain managementsystem and long-term stable cooperation relationshipwith suppliers；Customer demand-oriented, enhance customersatisfaction, to achieve long-term stable developmentand the customer's bilateral.
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Sustaianble Management
We are committed to establishing close communication and co-operation with all stakeholders to ensure that views and suggestionsare well received at all levels. Diversified communication channels have been established with government and regulatory authorities,shareholders, employees, partners and the community to ensure that the needs and expectations of all parties are fully understood. Wealways respond positively and endeavour to meet the needs of all parties and jointly promote the sustainable development.
Stakeholder Engagement
Huate Gas is committed to building a sustainable industrial ecosystem with stakeholders to achieve long-term win-win co-operation.Basedonglobalstandardsandindustrybestpractices,weconductself-assessmenttoidentifysubstantiveissues,andconductin-depth analyses and research on internal and external stakeholders to determine the most important issues for the year.
Weidentified and assessed theimportance of materiality topics, sorted out materiality issues, and formed a materiality matrix based on the level of importance of the issues in terms of "Importance to the Company" and "Importance to the Stakeholders".
Identification of Material Issues
StakeholderTopics of InterestCommunication Channels
Government
&Regulatory Agencies
Investors
&Shareholders
Employees
Suppliers
Clients
Community
Policy and RegulationBenchmarking Study
Company FundamentalAnalysis
Industry Best PracticeBenchmarking
External PublicOpinion AnalysisProcess for Identification of Material issues
Material issues
Importance to Huate's Sustainable Development
Importance to Stakeholders
EnvironmentalSocialGovernance
Social WelfareEcological ConservationData Protection and Privacy
Party Building
Shareholder and Investor Rights Protection
Waste Management
Energy Sawing and Carbon Reduction
Environmental Protection
Water Resource Management
Employee Training
Intellectual Property Protection
Employee Rights
Business EthicsInformation Disclosure
Corporate Governance
Law Compliance GovernanceChain of supply,management
Customer ServiceProduct Quality
R&D InnovationProduction Safety
Environmental ProtectionEnergy Saving and Carbon Reduction
Water Resource Management
Circular EconomyProduction SafetyEmployee RightsBusiness EthicsData Protection and Privacy
Social Welfare
Environmental Protection
Corporate GovernanceEconomic Performance
SustainabilityRisk ManagementInformation Disclosure
Business EthicsData Protection and Privacy
Corporate Governance
Production Safety
Employee RightsData Protection and Privacy
Corporate Governance
Business EthicsChain of supply management
Corporate Governance
SustainabilityData Protection and Privacy
Business EthicsProduct QualityChain of supply management
Environmental Protection
Production SafetyEmployee Rights
Social Welfare
Government Communication Meeting
Regular reports & AnnouncementsDaily Communication and ReportingListed Company Training Activities
General Meeting of ShareholdersRegular reports & AnnouncementsAnnouncement of Important Project Progress
Investor Communication
Staff CongressEmployee Symposium
Suggestion BoxEmployee Satisfaction Survey
Corporate Culture Activities
Proposal Management
Regular TrainingInternal Magazine and WeChat
Supplier Exchange MeetingTechnology Exchange and R&D Co-operation
Mail & Telephone
Factory VisitCustomer Satisfaction Survey
Customer Feedback
Mail & TelephonePublic Welfare ActivitiesCommunity Monitoring
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Sustaianble Management
Governance
Governance Structure
In accordance with the requirements of relevant laws and regulations, we have established a three-chamber governancestructure comprising the General Meeting of Shareholders, the Board of Directors and the Supervisory Committee, whichforms a mechanism for coordination and mutual checks and balances among the authorities, decision-making bodies,supervisory bodies and management, with clear powers and responsibilities and standardised operation, which haseffectively safeguarded the interests of shareholders and, in particular, ensured that small and medium-sized shareholdersare able to enjoy equal rights.
Governance System
Governance Framework
Audit Dept.
Financial Dept.
HR Dept.
International BusinessDept.
Procurement Dept.
IT Dept.
Investment PlanningDept.
GM Office
Quality Control Dept.
Electronic SpecialGas Dept.
Domestic Sales Dept.
Logistics Dept.
Safety office
Production Dept.R&D Center
Civil Gas Dept.
Securities Dept.
Guangdong Huate Gas Co,Ltd.
Shareholdersgeneral meetingStrategy CommitteeRemuneration andAppraisal CommitteeNominating Committee
Board of Directors
Board of SupervisorsSecretary ofBoard of DirectorsGeneral ManagerAudit Committee
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
“Three Boards” Governance
Shareholders’ General MeetingThe shareholders' meeting is the highest authority of Huate Gas, andwe convene and hold the shareholders' meeting in strictaccordance with the provisions and requirements of the Articles of Association and the Rules of Procedure for Shareholders' Meetings of the Company.The Board of Directors convened and organised the Annual General Meeting by using a combination of on-site and Internet voting tofacilitate the participation of investors in the voting at the Annual General Meeting and by counting the votes of retail investorsindividually on all proposals, thereby effectively safeguarding the rights of retail investors to participate in and supervise the AnnualGeneral Meeting.
Board of Directors
The Board of Directors is the decision-making organ of our operation and management and the business executive organ of theGeneral Meeting of Shareholders, responsible to the General Meeting of Shareholders for safeguarding the interests of the Companyand all shareholders. We have formulated the Rules of Procedure of the Board of Directors of Guangdong Huate Gas Co., Ltd. to clarify the workresponsibilities and ensure the standard operation of the Board of Directors' deliberation and decision-making procedures as well asthe level of scientific decision-making.We takes into full consideration the gender, age, educational background, professional knowledge and skills, industry experience andother factors of the Board members to ensure the diversity of the composition of the Board of Directors while meeting the needs ofeach business. The Board of Directors consists of seven directors, and the existing members of the Board of Directors havediversified professional backgrounds, and they actively utilise knowledge related to their respective specialisations for the purpose ofmaking decisions.During the reporting period, Huate Gas has held 17 meetings of the Board of Directors.
In order to effectively promote the standardised governance and ensure scientific decision-making, we have set up four specialcommittees in accordance with the relevant regulations, which are responsible to the Board of Directors and perform their duties inaccordance with the Articles of Association and the authorisation of the Board of Directors, and have formulated the working rules of thecommittees, so as to provide the Board of Directors with scientific and professional opinions and references for the decision-making.
Board of SupervisorsThe Board of Supervisors is the supervisory body of us, responsible to the General Meeting of Shareholders for the operation andfinance as well as the performance of duties by the Directors, President and other senior management. We have formulated the Rulesof Procedure of the Board of Supervisors of Guangdong Huate Gas Co., Ltd. to safeguard the legitimate rights and interests of the Company andshareholders.The Board of Supervisors consists of 3 supervisors, including 1 chairman.
General meetings ofshareholders were held
Extraordinary GeneralMeetings of Shareholders
Motions wereconsidered and passedDuring the Reporting Period
We held a total of 14 meetings of the Board of Supervisors and considered 47 motions.
meetings of specialised committees were held, and a total of
motions were considered.Audit Committee
times, considering
motions;Remuneration and Evaluation Committee
times, considering
motions;Strategy Committee
times, considering
motions;Nomination Committee
times, considering
motions.Board of Directors
Job Title
Age
Genders
Professions
Educational Background
Independent DirectorNon-independent Director
Independent Directoras Chairperson
Chairman of the board
?DirectorIndependent director
41-50 years old51 years and aboveMaleFemaleMetallurgyAccountancy
OthersJunior college and below
Undergraduate
?Master
?Doctor
Audit CommitteeStrategy CommitteeNomination CommitteeRemuneration and Appraisal
Committee
√×√×
During the Reporting Period
During the Reporting Period
●●●●
Governance
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Risk Prevention and Control
We have always adhered to the principle of compliant operation, following national laws and regulations and regulatory requirements,and have made risk management, compliance management and internal control the cornerstones of business development. Throughinternal audits and corrective actions, it ensures the standardisation and accuracy of business operations. Meanwhile, we attachimportance to the establishment of risk and internal control management systems, continuously improve relevant systems andprocesses, and enhance the risk awareness and response capabilities of our employees. For surety business, we strictly monitor andensure that it complies with the law and avoids any irregularities. We always follow the legal requirements to ensure the complianceand soundness of the business.Through the operation, analysis and evaluation of the internal control system, we effectively prevent risks in operation and managementand promote the achievement of internal control objectives. We will continue to strengthen the construction of internal control, furtherestablish and improve the internal control system that is compatible with our scale of operation and business scope, etc., so as topromote the healthy and sustainable development.
Tax PaymentsWe strictly comply with national tax laws and regulations, always uphold the principle of paying taxes in accordance with the law,complete tax declaration and payment in a timely and accurate manner in accordance with tax management regulations, ensure thattaxes are paid in full, and does not engage in any unlawful acts such as tax evasion and tax avoidance. Our management attaches greatimportance to tax management and ensures the compliance and accuracy of tax processing by strengthening the construction ofinternal control and supervision mechanisms to reduce tax risks.During the reporting period, we achieved good tax management results, which effectively safeguarded the sound development. Wehave always adhered to the principle of operating in good faith and resolutely eliminated any form of tax violation to safeguard ourreputation and long-term interests.
Related Transaction ManagementIn respect of the management of connected transactions, we have formulated the Decision-making System for Connected Transactions inaccordance with the PRC Company Law, the Accounting Standards for Enterprises No.36, the Rules Governing the Listing of Stocks on the STAR Market of theShanghai Stock Exchange and other relevant laws, and in conjunction with our actual situation, to clearly stipulate the deliberation anddisclosure procedures, decision-making procedures, etc. are clearly stipulated. We strictly implement the connected avoidancemechanism, and when considering connected transaction matters, connected directors and connected shareholders must avoid voting.
Internal Control ManagementHuate Gas has always insisted on operating in compliance with the law, and has formulated a series of systems such as BasicStandard for Internal Control of Enterprises, Internal Audit System and Internal Reporting System for Material Information,which providecomprehensive guidance and norms, and ensure the effective operation of internal control. In order to guarantee the safety of ouroperation and management, and to improve the operation efficiency and profitability, we have organised 20 times of internalcontrol training, with 15 participants and 15 hours of training.The Audit Committee is the highest responsible department for our internal control, and the Audit Department has been set upunder it to inspect and supervise the establishment and implementation of our internal control system, etc., which providesreasonable assurance for our lawful compliance in operation and management, safety of the assets, financial reporting, efficientoperation, and the truthfulness and completeness of relevant information. We continuously pay attention to and evaluate theoperation of internal control, and regularly invite third parties to evaluate and certify our internal control system, so as toeffectively prevent risks and provide guarantee for sound development. The annual Internal Control Assurance Report is published onthe website of Shanghai Stock Exchange together with the annual report.During the reporting period, we conducted a self-evaluation of the effectiveness of internal controls at the head office and subsidiaries,and no significant deficiencies in the design and implementation of internal controls were identified throughout the year.
Compliance Governance
We did not engage in any irregular connected transactions.
In order to strengthen communication between Huate Gas and investors, especially small and medium-sized investors, and to promoteinvestors' understanding of us. In accordance with the Guidelines for the Administration of Investor Management for Listed Companies and otherrelevant regulations, and taking into account the actual situation, we have formulated the Investor Management System, which aims toenhance the transparency of our production and operations, enable investors to better understand our operations, and effectivelysafeguard the rights and interests of investors.
Information DisclosureWe standardise the information disclosure process and strictly implements our internal Information Disclosure Management System,Information Suspension and Exemption Disclosure Business Management System, Voluntary Information Disclosure Management System and other relevantsystems to strengthen the quality of information disclosure, ensure the truthfulness, accuracy, completeness and timeliness ofinformation disclosure and safeguard the investors' right to know, which are published in China Securities Journal, Shanghai Securities Journal,Securities Times, Securities Daily and the website of Shanghai Stock Exchange and other platforms for investors to read.
Investor Relations Management
Periodic reports ;
Interim reports have been disclosed to the public.
During the Reporting Period
During the Reporting Period
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Governance
Investor Communication
In order to further strengthen the communication between Huate Gas and investors and potential investors, to enhance investors'understanding of us, and to further improve the corporate governance structure, we have established an investor relations managementfunction, formulated the Investor Relations Management System taking into account the actual situation, actively organised performancebriefings through various channels, platforms and levels, and conducted investor relations management activities using new media. Atthe same time, we have set up an "Investor Relations" section on our official website (www.huategas.com) to facilitate investors' accessto relevant information. We also actively respond to investors' questions through emails, conference calls, on-site surveys and SSEe-interaction, and strive to present a true, transparent and compliant image of the listed company.
Investor Returns
We attach importance to creating value for our shareholders, focus on rewarding our shareholders and society with excellentperformance, strictly implement the profit distribution policy stipulated in the Articles of Association, formulate the shareholder returnplan for the next three years (2022-2024) and continue to establish and improve the system related to profit distribution in conjunctionwith the actual situation, further improve the decision-making and supervision mechanism of dividend distribution in a sustainable,scientific and stable manner, and actively reward the majority of our investors.
Huate Gas's 3-year Cash Dividend, CNYKey performance202320222021
3.993.547,893,302.8242,000,000
42.62%32.48%
Anti-Unfair Competition
Huate Gas is well aware of the importance of the principle of fairness and honesty in business competition, which is not only relatedto the reputation and long-term development of the enterprise, but also the respect and maintenance of consumers and the wholemarket order. Therefore, we firmly reject all unethical or illegal business practices, such as false publicity, price fraud, commercialbribery and so on.
Anti-CorruptionWell aware of the importance of integrity and honesty for the development of the company, Huate Gas attaches great importance tothe work of advocating cleanliness and anti-corruption construction, and resolutely prevents corrupt behaviours. We strictly abide bythe laws and regulations and regulatory requirements, and have formulated the Business Ethics Management System, which adopts azero-tolerance attitude towards any illegal and corrupt behaviours, and resolutely stops and combats them.
Corporate Ethics
Information Security Management SystemIn order to protect the interests of the company from being infringed upon, enhance the competitiveness of the enterprise, andstrengthen the management of our trade secrets, Huate Gas has formulated the Confidentiality Management Provisions, IT Information SecurityManagement Provisions and other internal management systems, and put forward the information security policy of Active Prevention,
Timely Detection, Rapid Response, and Ensuring Security, to enhance the awareness of the staff of the information security, to
provide a reliable guarantee for the stable operation of the information system, so as to achieve the laws and regulations to beobserved and acted in accordance with the rules and regulations.At the same time, we have set up the Information Security Organisation to ensure the safe, efficient and stable operation of thesecurity system.
Information Security
We held a total of 4 regular report performance briefing sessions, 1 collective investor reception day, e interactiveresponse to 49, the response rate of 100%. At the same time, we organise 100+ investor exchanges with 400+participating organisations.
We organised 25 training sessions on anti-corruption and integrity, with 50 hours of training. We did not experienceany major violation of integrity management incidents, no corruption and no facts of legal proceedings involvingviolation of any domestic or foreign misconduct throughout the year.
There were no lawsuits related to anti-unfair competition, antitrust and antimonopoly.
During the Reporting Period
During the Reporting Period
During the Reporting Period
Dividend per 10 shares(including tax)Cash dividend amount
(including tax)Cash dividend amount as apercentage of total profitdistribution
59,941,393.50
46.62%
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Governance
InformationSecurity Officer
●
●
●●●●
Information
Security
LeadershipGroup
●●
Department
Manager
●●
ConceptOur ActionsProactive Prevention
●Timely Detection
●
Rapid Response
●
●
Safeguards
Information security training sessions were conducted
hours of training
participants in training
Information security-related incidents
Information Security Organisation
●●●●●●●●●●●●
Through the information network monitoring platform and centralised log management system,together with administrative monitoring, security and other measures, information security risksare detected in a timely manner.
Continuously improve and implement information security measures to prevent informationsecurity incidents.
Relying on the alarm events provided by the information security support system and the earlywarning information provided by the administrative security and various functional departments,we will do real-time follow-up and report different events to the relevant business leadersrespectively;For those that may cause local or global impacts, they are promptly reported to the IT managerfor processing, and according to the level of the incident, they are sequentially reported to theinformation security leading group for processing.
Coordinate and organise our information security work, and report directly to the immediateleader.According to the needs of business development, formulate the our information security systemplanning, and promote the deployment, implementation and evolution of the information securitysystem.Organise security system audits, and fully explore, assess and eliminate our information securityrisks.Formulate contingency plans for information security risks.Organise the disposal of information security emergencies.Preventive warning and notification of information security.Organise and manage the technical team of the department, coordinate the resources anddivision of labour of the department.Participate in the construction of information security system and projects, and promote theimplementation.Carry out the tasks assigned by the superior, responsible for dealing with unexpected informationsecurity incidents, to ensure that our IT system is safe, efficient and stable operation.Responsible for monitoring and managing the information security of the department andrequiring the information security of the department to be implemented according to thenational information security requirements. And cooperate with IT department to implement theoverall IT security construction.
Management ofInformationSecurity Personnel
InformationSecurity Training
Strengthening of
Safety andSecurity Capacity
InformationLeakage IncidentContingency Plan
Employees need to sign a confidentiality agreementAll project team members of high-security projects sign a special confidentiality agreementand receive information security training, and project personnel are required to work centrallyin the project area.According to the Key Positions (Information Security) Management Rules, establish a list of keypositions for information security and conduct information security training.Organise information security training for new employees to ensure that employees are clearabout their information security responsibilities.Regularly organise information security training for current employees.
Set up an emergency response team to control the scope of information leakage andinvestigate the incident.Formulate HT-IT-002 IT Major Emergency Overall Emergency Response Plan to deal with theemergency situation in the information server room.
Establishment of internal audit team.Carry out information security internal audit at least once a year.The audit team promotes the relevant responsible departments to improve on the problemsfound in the audit.Adopting data encryption tools to prevent unauthorised leakage of confidential data.Monitor the real-time status of servers and network devices in the domain through monitoringsoftware and generate logs.
During the Reporting Period
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Governance
Huate Gas adheres to the original intention, taking Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era as theguidance, closely combines with the spirit of CPC Central Committee and Guangdong Provincial Party Committee's Economic WorkConference, closely combines the Party building work with production and operation, and takes the Party building as the leading rolein promoting the overall development.During the reporting period, in order to strengthen the staff's understanding of the history of the Party and the Party committee’stheories, we organised a number of staff to participate in activities to learn about the Party's history and to visit the old site of theWorkers' Committee. It also stimulated the enthusiasm and creativity of the party members, and injected a strong spiritual impetus forthe sustainable development and innovation. Huate Gas will continue to deepen the party history learning and education, promote theoverall quality of the staff team, and contribute to the realisation of our development goals.
Party Building
Party and Group ConstructionThe Party branch of Foshan High-tech Industry Association and the Party branch of the company jointly carried out theParty building activities with the theme of "Remembering the mission of the beginning, strengthening the responsibility tobear", with the participation of nearly 30 Party members and activists. The activity invited the professor of Marxism Schoolof Foshan Institute of Science and Technology to share the spirit of the 20th CPC National Congress, socialist core valuesand patriotism, which strengthened the sense of responsibility of the party members.
Visit to the Former Site of Nan San Hua Labour CommitteeAfter the learning and exchange meeting of party building activities, the party members arrived at the former site of SouthSanhua Labour Committee for a visit together. Through the combination of theory and practice, the party membersrevisited the history of the party, traced the red marks, and once again deeply felt the struggling spirit of the CommunistParty of China, which is not afraid of hardship and difficulties, and inspired the mission to bear.
"School-Society-Enterprise" Joint Theme Day ActivityIn the afternoon of 25th April, the party branch of Heshun Primary School, together with Lishui Town Education DevelopmentCentre, Hefeng Village and Huate Gas Co. The party members first visited the production area of Huate Gas and experiencedthe advanced technology. Afterwards, they studied the important speech of General Secretary Xi Jinping in the party buildingroom. Finally, the three branches of "school, society and enterprise" had in-depth exchanges on the topics of party building,improving the professional ability of party members and exploring new modes of party building work.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Governance
Perfection of Environmental Management SystemHuate Gas consistently puts environmental protection and ecological civilization construction in the core position, upholdsthe policy of conservation, protection and restoration, promotes the coordination of development and resources andenvironment, so as to build a resource-saving and environment-friendly enterprise.
Environmental Management
We conduct in-depth research and implementation of environmental protection laws and regulations, focusing onenhancing strategies and systems, while continuously integrating green and low-carbon concepts and technologiesinto production and operations. To address existing and potential ecological environmental issues effectively, aswell as to strike a proper balance between production operations and the ecological environment, we havedeveloped a comprehensive set of environmental management rules and regulations that have been compiled intoreference materials.Our environmental management system is certified for compliance with the requirements of ISO 14001:2015“Environmental management systems – Requirements with guidance for use”.
Environment
100%CNY
944.6
Thousand in total environmental protection expenditures;
100% simultaneous operation of environmental protection facilities;implementation rate of "three simultaneous" environmental protection for construction projects.
Key indicators of Huate Gas’s environmental performance in 2023
ISO 14001:2015 Environmental Management SystemCertification of Guangdong Huate Gas Co., Ltd.
ISO 14001:2015 Environmental Management SystemCertification of Jiangxi Huate Electronic Chemical Co., Ltd.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Structure of Environmental Management SystemWe place great emphasis on environmental protection efforts, increase investment in environmental protection, and strictly adhere tothe relevant rules and regulations for environmental management. The general manager assumes the highest responsibility anddecision-making authority for safety and environmental protection, utilizing the HES department as a liaison to connect with departmentheads in order to establish Huate Gas's environmental management structure.
Implementation of the Environmental Policy
As a responsible manufacturing enterprise, we earnestly fulfill our environmental obligations and are committed to realizing ourcommitment to being environmentally friendly. We continuously improve our environmental management system, increaseinvestment in environmental protection, and set environmental management targets based on business situation and national"double carbon" goals.
In order to ensure the steady progress of environmental protection work, achieve expected environmental protection goals, strengthenleadership and management in environmental protection efforts, safeguard employee health during production labor and preventpollution of the environment, as well as effectively prevent incidents of environmental pollution, we have established an EnvironmentalResponsibility System and Environmental Protection Target Responsibility System, ensuring vertical accountability from top to bottom andhorizontal responsibility across all levels.
Executives ofStructural Units
Responsibility
GeneralManager
●●●
DivisionPrincipal
●●●
●●
●
HSE
●●●
●●●
Environmental Target and Achievement Status
Environmental TargetActual Performance
TargetAchievement
Status
All achieved
Structure of Environmental Management System
Responsible for managing quality, environment, and safety by establishing an effective managementsystem and ensuring the successful implementation;Communicate the significance of complying with customer and regulatory requirements to the entirecompany, and identify and provide the necessary resources for effective management systemimplementation;Responsible for assessment, continuously improve quality, environment and safety management system.The highest principal of wastes treatment;Conscientiously promote and enforce environmental protection policies, laws, and regulations, whileclosely monitoring and inspecting their implementation across various departments, with particularemphasis on the production workshop;Responsible for cooperating with superior authorities to carry out inspection and investigation,formulating the rules of environmental protection management system as well as maintenance andimprovement of various environmental protection equipment;Responsible for the formulation of assessment methods for environmental protection staff, and putforward rewards and punishments for contributors to environmental protection and those responsible foraccidents;Implement the work plan of cleaner production, organize and coordinate environmental monitoring work;Organize investigation of environmental accidents.Develop environmental protection work plan, layout testing projects;Supervise the implementation of environmental protection management system, organize the relevantdepartments to negotiate and discuss the problems found, come up with solutions to the problems, andreport to leaders at any time;Apply for technical transformation of environmental protection equipment, electrical appliances, etc;In the management of construction projects, strictly control the "three simultaneous", and ensure thenormal operation of environmental protection facilities;Responsible for the preparation of environmental accident emergency plan, and regularly organizepersonnel to conduct drills, and overall planning of hidden danger investigation;Responsible for the daily management and operation of environmental protection work.FunctionalDepartment
Ministryof AuditPurchasing
InvestmentPlanningHumanResource
QualityControlLogistics
FinanceBond
SalesIT
ProductTechnology
InternationalBusinessResearch andDevelopmentCenter
No gas, pressure vessel explosion and major leakage
accidentsNon-fire accidentHazardous waste is transferred legally and handed over
to qualified units for treatmentReduce electric power consumptionNoise emission compliance
The number of leakage accidents is zero
The number of fire accidents is zero
Full legal dispositionOutput value per kWh ≥ 150 thousands
No excess emission
Environment
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Our System
Huate Gas follows the principle of "prevention first", strictly carries out environmental risk inspection and assessment, and establishesa series of environmental risk management systems such as Risk and Opportunity response measures control Procedures, Environmental factoridentification and importance control procedures and Hazard identification, Risk assessment and control measures determination procedures. We arecommitted to carefully implementing risk control measures to further strengthen the monitoring and management of environmentalrisks and strengthen environmental supervision.Huate Gas regularly conducts strict inspection and assessment of the environmental risk management system, and timely reevaluatesand revises the control procedures to ensure their adequacy and suitability.
Environmental Risk Management
Our ApproachHuate Gas continues to improve the environmental risk prevention and control and emergency measures system, formulates the "HuateGas Emergency Plan", sets up an emergency organization, and builds an environmental emergency response plan for us andsurrounding enterprises, district level and municipal level. Through the cooperation, we can minimize the loss, event impact andpollution level in the shortest possible time and with minimal resources.
Emergency MeasureWe continue to monitor and manage environmental risk receptors, environmental risk source substances, environmental risk units andmajor risk sources, regularly analyze and review historical environmental emergencies, and prevent and control environmentalemergencies.
Huate Gas emergency rescue organization structureHuate Gas emergency plan system
Emergency Command
Emergency Office
Site Disposal Team
Integrated Coordination Group
Emergency Monitoring Team
Logistics Support Group
Emergency Plan forEnvironmental Emergenciesin Foshan City
Hainan District EmergencyPlan for EnvironmentalEmergencies
Guangdong HuateGas Co., Ltd.Emergency Planfor EnvironmentalEmergenciesGuangdong HuateGas Co., Ltd.Production Safety
AccidentEmergency Plan
Other EmergencyRescue Plans forSurroundingEnterprises
Risk groupDescriptionRisk managementProbability
150m? emergency pool750m? emergency pool
Leakage ofhazardouschemicals in tankarea or storageareaChemical leakageDomestic sewageand productionwastewater leakage
Hazardous wasteleakage in holdingroomGas leakage
LowLowLowLowLow
MediumFire accident
The leakage material isdischarged into the surfacewater through the storm waternetwork.Hazardous wastes such as firesand used in the accident arenot properly disposed of andaffect the environment.Leaking chemicals volatilize andpollute the atmosphere.
Develop hazard inspection system, and arrange personnel to conduct regularinspection, and set up 24h monitoring in the storage tank area.Set fire hydrants in the corresponding positions in the warehouse and storagetank areas.A 150m? cofferdam area is set up in the methanol storage tank area as anemergency pool, and a 750m? emergency pool is set up in the northeast sideof the plant area, equipped with valves and pumps.Empty barrels are set in the raw material warehouse to transfer leakingchemicals.The plant rainwater discharge outlet is equipped with a cut-off valveWaste fire sand and other hazardous waste used in the accident shall bedisposed of outside.The failure of waste gastreatment facilities leads to theescape of waste gas, whichendangers human health andpollutes ambient air.
Stop filling and other processes of production.Establish hazard inspection system and arrange personnel to conduct regularinspection.The warehouse and storage tank area are equipped with more perfect firefighting facilities, fire lanes and fire spacing.There is a 750m
emergency pool in the northeast corner of the factory, andthe rainwater collection pipe network in the factory is used as the fire wastewater collection pipe network in the whole factory. We set a cut-off valve atthe total rainwater discharge outlet, and the rainwater pipe network at theother end is connected to the emergency pool. The cut-off valve is also setbefore the emergency pool, and the bottom of the rainwater stop valve is flatand the rail is set. By closing the rainwater cutoff valve and opening the cutoffvalve of the emergency pool, the rainwater drainage in the factory can be cutoff. The fire fighting wastewater enters the emergency pool through therainwater pipe network in the factory. If the amount of rainwater and firefighting wastewater is too much, the water pump can be used to quicklypump it to the emergency pool.
During the fire fighting, the firefighting wastewater containingchemicals is produced, whichspills everywhere and isdischarged into the surfacewater through the rainwaterpipe network.In the process of fire, a largenumber of toxic and harmfulsmoke is produced, whichpollutes the atmosphere.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Environment
TrainingIn order to better carry out emergency rescue operations for environmental risk accidents, we have set up an emergency rescue team,which is based on the engineering production operators. After the team is set up, the training of safety knowledge and rescueprofessional knowledge is carried out once a month. The environmental protection technicians teach the rescue personnel safety andrescue professional knowledge, and regular drills and assessments are carried out.
Climate ChangeHuate Gas followed the relevant laws and regulations and formulated a comprehensive emergency response plan for production safetyaccidents, aiming to further improve our defence strategy in the face of various natural disasters, and to build a set of systematic,standardised and institutionalised response mechanism against typhoons and rainstorms.In order to ensure that rescue and relief operations in the event of typhoons and storms are carried out in an orderly and efficientmanner, we have set up a typhoon and storm emergency response team to ensure that, in the event of a disaster, we can minimisecasualties and property damage and ensure that normal, safe production and life are not affected.
Raising Environmental AwarenessTo ensure our employees understand the relevance andimportance of their work to the environmental managementsystem, we provide regular training sessions. These sessionsdeepen their knowledge and understanding of theenvironmental management objectives and enhancecommunication through regular meetings, thematic studies,and cultural newsletters. Our aim is to contribute to theachievement of the management objectives.
To improve the supervision and management ofenvironmental protection, regulate employee behaviour, andenhance their environmental awareness, we have createdthe 'Environmental Protection Reward and PunishmentManagement System'. This system will punish employeeswho violate environmental regulations based on the severityof their actions and reward those who make outstandingcontributions to environmental management.
Hydrogen tube bundle filling leakage fire, sudden environmental events,
and emergency evacuation drillTo improve safety awareness and emergency responseamong employees, we conducted an emergencyenvironmental incident and evacuation drill on July 18,2023. The drill aimed to enhance self-rescue andrescue skills in the event of special equipmentaccidents, improve rapid response, emergency rescue,and collaborative rescue abilities, and comprehensivelyimprove the ability to deal with sudden productionsafety accidents and environmental incidents, such ashydrogen tube bundle car charging leakage and fire.
Environmental Impact Hazard IdentificationIn order to identify, assess and control risk factors thatmay have a negative impact on the environment, weconduct regular general hazard inspections, specialisedhazard inspections, seasonal hazard inspections,pre-vacation hazard inspections and daily hazardinspections. Hidden hazard inspections are used to detectunsafe human behaviour, unsafe conditions andenvironmental influences in advance, and to identify andresolve potential problems in time to prevent and reduceenvironmental pollution.
Inspections
We have established a responsibility system for environmental impact hazard investigation and management, with the EnvironmentalProtection, Health and Safety Department as the responsible organisation for hazard investigation and management, and departmentalmanagers leading departmental technicians and cooperating with the relevant departments of the enterprise to carry out environmentalimpact hazard investigation and management, and to establish and implement a post responsibility system for environmental impacthazard investigation and management on a level-by-level basis.
environmental training in calendar year 2023;
employees participated in training.
Reporting period
Ethylene Oxide Gas Leakage Emergency Disposal Exercise
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Environment
Huate Gas commits to complying with energy laws, regulations, and other requirements. We actively implement the national'dual-carbon' strategy, promote clean production, reduce energy consumption at the source, and adopt new energy-savingtechnologies, processes, and materials to improve energy efficiency and promote the development of a circular economy. It uses energyefficiently, establishes and improves energy management, fulfils the social responsibility, and achieves sustainable development.
Energy Management
Huate Gas consumes mainly electricity, diesel, and petrol during production and operation. To enhance energy management, wediligently study and implement General Secretary Xi Jinping's guidance on energy conservation and environmental protection. Wecontinuously refine our energy management system to achieve our energy-saving and consumption-reduction objectives.
Resources
Energy EfficiencyEnergy Saving TechnologiesTo strengthen corporate energy and conservation management, we prioritize energy-saving technological transformations and promoteenhanced energy efficiency and reduced emissions through our technological innovation strategy. During the reporting period, HuateGas focused on transforming production facilities to save energy, planning plant areas more efficiently, and developing a recyclingeconomy. These efforts were aimed at exploring energy-saving potentials, improving energy efficiency, and reducing energy waste.
PromotionHuate Gas is committed to promoting energy-saving and emission reduction by actively carrying out energy-saving training andpublicity. We urge our employees to form good behavioural habits of consciously fulfilling energy-saving and emission reduction,eliminating waste, and contributing to the development of the enterprise. This will ensure that the overall development strategy canbe achieved.We focus on low-carbon operations and always aim to save resources and eliminate waste in our daily office work. We also strive topromote awareness of the low-carbon economy, energy-saving, and green office practices among our employees. To achieve this, westrictly control the power consumption of lighting and electrical equipment in the office area and encourage employees to practiceenergy-saving actions. Our goal is to enhance the awareness of energy-saving and emission reduction among our employees.Additionally, we frequently organise events focused on energy conservation and carbon reduction to enhance employees'comprehension of the importance of energy efficiency and emission reduction. This will enable us to more effectively advance ourobjective of achieving carbon neutrality.
Layer
Person in
charge
DutyGroup leader
Generalmanager
●●Deputy leader
Director ofOperations
●●●
Members
Departmentalmanagers
●●●
Direct Energy
Diesel（tons）2,762.41Petrol（tons）111.58
Indirect EnergyElectric power（KWh）5,409,225
Energy Saving Technology - Energy Saving Air Compressor
Energy Conservation Leading Group
Energy Consumption by Huate Gas (2023)
Responsible for researching and making decisions on major issues of energy conservation, andlistening to regular reports on the work of the deputy head and members of the team.Formulate work requirements for promoting energy conservation and energy management, andpropose specific energy conservation targets to the Energy Conservation Group.Regularly check the implementation of energy-saving measures in each department, and host aregular meeting on energy management once a month.Formulate assessment methods with clear rewards and punishments.Implementing the renovation funds for energy-saving planning.Responsible for specific energy management and promoting the implementation of our energyefficiency improvement, energy saving planning, energy saving training and energy savingpublicity.Handle the relationship between daily production and energy-saving renovation, implement themaintenance and renovation time of energy-saving projects, and ensure the successfulcompletion of renovation projects.Energy efficiency training and energy efficiency promotion.
Note: The above data are consolidated.
4142
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Environment
Water StewardshipWe value the management of water resources and adhere to the concept of conserving every drop of water. We prioritize thedaily maintenance and management of water supply equipment and pipelines during production and office operations. We strictlyprohibit running, risking, dripping, and leaking, and eliminate the occurrence of prolonged water flow to ensure the rational useof water resources.
Wastewater ManagementTo improve our environmental performance, competitiveness, and promote sustainable development while achieving cleanerproduction, Huate Gas has developed a wastewater management system in compliance with relevant laws and regulations. This systemstrengthens our control and management of water pollutant discharges during our production process.The wastewater generated in our production operation includes staff living sewage, kitchen wastewater, production wastewater, andempty 12mL gas cylinder cleaning wastewater. During the reporting period, we continued to recycle wastewater, developed advancedindustrial wastewater treatment technologies such as the recycling of RO concentrated water, optimized wastewater management, andpromoted wastewater and sewage reduction.
Green Office
At Huate Gas, we pay attention to details and guide our work based on concepts. We incorporate the idea of resource conservationinto every aspect of our work. We aim to improve our office's sustainability by implementing several measures. Firstly, we will strengthenour management of office supplies and reduce the issuance of paper notices. We also encourage double-sided printing and will publishall notices and announcements online. Additionally, we have established a management system for the collection and use of officesupplies and accounts to reduce the waste of disposable office consumables. Secondly, we will adopt the form of telephone or videoconferencing instead of traditional on-site meetings to reduce unnecessary travel. We will also regulate the use of cars for travellingand advocate the use of new energy vehicles to effectively save travelling costs and reduce the consumption of resources.
118,376 tonnes of water consumption6,180 tonnes of water saving5%of water recycledReporting period
Huate Gas adheres strictly to all relevant laws and regulations, and continuously strengthens the management of environmentalemissions to ensure compliance with applicable laws, regulations, and standards.Emissions Management
Environmental monitoring is implemented, with a focus on monitoring each pollution source and maintaining accuraterecords. A third party is commissioned quarterly to test exhaust gas, wastewater, and other pollutants.Manage the environmental protection facilities operation record ledger strictly. This includes the purchase, use, andstorage management ledger of raw and auxiliary materials, hazardous waste collection and handover records, transfer andhandover records, and records of environmental emergencies.Hazardous wastes generated are entrusted to qualified units for treatment.Each production department and team maintains equipment and facilities to prevent leakage.Implement a pollution accident reporting system. In the event of a pollution accident, issue a preliminary report to thedistrict environmental authority.
Environmental Pollution Management Measures
Wastewater Discharge Indicators
Air Pollution ManagementHuate Gas is committed to managing air pollution by strictly controlling air pollutants generated during production and operations. Weaim to minimise the environmental impact on our operation site by monitoring exhaust emissions at least four times a year, duringperiods of relative production stability.We use a combination of classified collection, efficient treatment equipment, and refined management to reduce emissions.Additionally, we use spray purification towers to recycle and treat exhaust gases.
1702.1 tonnes of exhaust gases were emitted in fiscal year 2023.
46,333
tonnes of wastewaterRecycled 9,159 tonnes of wastewater
Reporting Period
Reporting Period
Type
SewageDischargein 2023, tons
ProcessesPreprocessingMethodsDisposalDomesticsewage
66,340
Tertiary septicpre-treatmentKitchenwastewater
5,847
Grease trappre-treatment
Production
effluent
29,800Water forcleaning
7,620
●●●●●
"Hydrolytic acidification + contactoxidation + precipitation + disinfectionprocess" treatment.
After meeting the local Guangdongprovincial standard, it is discharged tothe Hegui Wastewater TreatmentPlant via the Lishui Municipal PipelineNetwork.Self-built sewage treatment facilities(treatment process of coagulation andsedimentation + A/O biochemical +membrane biological reaction)treatment.
Recirculation back to the cleaningline, equipment cooling make-upwater and water spray make-upwater, no external emissions.
4344
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Environment
Noise ControlHuate Gas generates noise during the operations mainly from the operation of vehicles and various mechanical equipment. As anenterprise committed to building an efficient and environmentally friendly production process, Huate Gas is well aware of the impactof noise on our employees and the surrounding community. To minimize the impact on the surrounding acoustic environment, we haveimplemented several measures. These include regular monitoring of ambient noise at the plant boundary, as well as the use of soundisolation and vibration-damping techniques. Our goal is to ensure that the noise at the plant boundary complies with Category 2standards as outlined in the Standard for the Emission of Noise from the Plant Boundaries of Industrial Enterprises (GB12348-2008).
Waste HandlingHuate Gas has formulated Waste Management Control Procedures to manage solid waste generated during production and operations. Wehave also established a responsibility system for pollution prevention and environmental control throughout the entire process of solidwaste generation, collection, storage, transportation, utilization, and disposal. In addition, Huate Gas has created solid wastemanagement accounts to accurately record the types, quantities, flow, storage, utilization, and disposal of solid waste. These measuresensure that solid waste can be traced and queried, and prevent industrial solid waste from polluting the environment. We must establisha solid waste management account to record the type, quantity, flow direction, storage, utilization, and disposal of solid waste truthfully.It should also ensure that solid waste is traceable and accessible while taking measures to prevent and control environmental pollutioncaused by industrial solid waste.To comply with legal requirements, we engage qualified third parties to dispose of or reuse solid waste generated during production.This helps to reduce waste pollution in the environment. Key waste discharge units will regularly disclose waste disposal information tothe public.
We strongly advocate for reducing industrial solid waste at the source and promoting the efficient and comprehensive large-scaleutilization. We also prioritize the high-value recycling of renewable resources. Our focus is on replacing outdated equipment throughtechnological reforms to increase production rates and reduce emissions targets. Additionally, we are developing new processes toenhance the efficiency of industrial resource utilization and the comprehensive utilization of solid waste.
To ensure our employees fully comprehend the dangers of hazardous waste and the significance of environmental protection, we havearranged professional training on hazardous waste management and disposal.
Huate Gas complies with national environmental regulations and considers environmental protection a crucial aspect of our develop-ment. We are committed to preventing harm to both marine and terrestrial ecosystems and executing our projects in an environmentallyfriendly manner.In our investment projects, we always prioritize reducing negative environmental impact. We firmly implement the 'three simultaneous'concept, which means that environmental protection facilities are designed, constructed, and put into operation at the same time asthe main project. We regularly test the ecological and environmental impacts within a 5-kilometre radius of the plant boundaries. Thisincludes surface water, groundwater, atmosphere, and acoustic environment to ensure compliance with national and local environmen-tal quality standards.No changes were made to the original text as it already meets the desired characteristics of clarity, conciseness, precision, formality,structure, professional vocabulary, grammatical correctness, and preservation of original meaning and quotes. The text is free fromerrors and effectively conveys the intended message without the need for further modifications.
Biodiversity Preservation
Solid Waste Emission IndicatorsGeneration in 2023,
(tons)
Processing flowGeneral
waste
Generation
capacity
82.26
●●Quantitydisposed
82.26
Hazardous
waste
Generation
capacity
35.56
●●
Quantitydisposed
27.24
Storage Room for Hazardous Waste
Regarding the end treatment, we established atemporary storage room for hazardous waste incompliance with GB18597-2001 regulations. Wedisplayed warning signs for the hazardous waste storagearea and implemented measures to protect againstwind, rain, and sunlight. Additionally, we packed thehazardous waste in bags, attached hazardous wastelabels to the packages in a visible location, andsubmitted a hazardous waste management plan alongwith solid waste disposal measures to the competentdepartment of ecology and environment.
Environmental Equipment Hazardous Waste Management TrainingHazardous Waste Standardised Management Training
Domestic and office solid waste should be collected and handed overto the sanitation department for disposal.Industrial solid waste should be uniformly stacked in the general solidwaste bin and recycled by general waste recycling companies.Once a certain amount of hazardous waste has been collected andstored in the designated bin, it will be regularly handed over toprofessional environmental protection, recycling, and disposalorganisations for treatment.The waste catalyst is recycled by the manufacturer.
4546
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Environment
Innovation ManagementWe place significant emphasis on research and development (R&D) and innovation. To standardise the process ofdesigning and developing new products, we have implemented theNew Product Development Systemand theProject R&DManagement System. To standardise the process of designing and developing new products, we have implemented the 'NewProduct Development System' and the 'Project R&D Management System'. To standardise the process of designing anddeveloping new products, we have implemented the 'New Product Development System' and the 'Project R&DManagement System'. These systems aim to strengthen the management and supervision of the R&D process, ensuringthat it is carried out in an orderly manner.Once the development of new products is complete, a third party will test them to ensure that the indicators meetcustomer needs. Qualified products will then be sent to customers for trial, and user reports will be issued.During the reporting period, all of our research and development processes complied with the requirements, and weconducted phased audits in accordance with the progress of the project, with a cumulative total of four audits.
Innovation
Incentive SchemeInnovation is crucial for development. To better mobilise the enthusiasm and creativity of technology research anddevelopment personnel, we have developed the R&D Personnel Performance Appraisal Methods and Core Technical Personnel ProjectPayroll Management System. These measures will effectively improve the efficiency of R&D resource allocation, stimulateinnovation, and accelerate the promotion of our major scientific and technological research and development resultstransformation.To encourage employees to innovate technologically, we have established the Provisions on Project (Patent) Declaration Rewardand other innovation reward systems. These systems provide bonus incentives to those who provide clues or suggestionsfor research and development projects. Additionally, a one-time high bonus will be given to those whose contributions areparticularly significant.
Product
Huate Gas R&D Process
CNY 411,796 incentive bonus granted to employees in fiscal year 2023.During the Reporting Period
ProjectAcceptanceProject Initiation
ProjectImplementationProjectDesign Review
4748
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Collaboration with R&D Centers and Universities
Cooperation with universities is an essential aspect of our R&D platform building initiatives. We have formulated a management systemfor industry-university-research cooperation. Currently, we have a close R&D partnership with South China University of Technology.Additionally, we have established a post-doctoral research mobile station to sustain R&D investment and keep our products advanced.
Fostering and Supporting Young ScientistsTo meet the demands of the market economy and foster innovation, we have developed a talent management system that evaluatesindividuals based on their academic qualifications, professional knowledge, and work experience. This helps to improve the talentstructure and allocation of human resources.The recruitment of R&D personnel is primarily accomplished through various channels, including talent markets, university job fairs, andinternal employee referrals. For exceptional candidates, we offer a more flexible compensation and benefits package to enhance ourappeal to a diverse range of highly skilled professionals and technical experts.
Our Results
Through continuous innovation and research and development, we focus on special gas R&D as our core and strive to perfect ourelectronic special gas product line. We continuously expand our special gas product categories and work towards localising moreconstrained electronic special gas varieties. We are continuing to introduce new technologies and develop products, while alsodeepening our technical cooperation and exchange. We aim to strengthen the integration of production, learning, and research.As of the end of the reporting period, we have now cumulatively achieved import substitution of more than 55 products, and constantlystrengthen the continuous investment and transformation of independent intellectual property rights, in-depth practice of our missionas a national high-tech enterprises. Through long-term product development and certification, we have successfully achieved over 90%customer coverage of domestic IC manufacturers above 8 inches.Our flagship lithography gases (Ar/Ne/Xe, Kr/Ne, F
/Kr/Ne, F
/Ar/Ne) are certified by ASML and GIGAPHOTON, and are the only gascompanies in the country with two certifications. Our products have been supplied in batches to 14nm, 7nm and other production lines,and some fluorocarbon products and hydrides have been used in 5nm advanced manufacturing processes and are continuing to expandcoverage. Our self-developed whole-industry chain product - germanane - passed the certification of the 5nm process production lineof the largest memory company in South Korea and generated orders. During the period under review, our excimer laser gas productsalso passed the 193nm test of the German laser manufacturer, further enhancing the Company's recognition and visibility in the fieldof excimer laser gases.
Foshan City Industrial Field ProjectThis project focuses on researching the depth purification of electronic special gases used in advanced semiconductorprocesses of 8 inches and above, analyzing and detecting trace impurities, treating the inner walls of gas cylinders, anddeveloping gas storage and transportation technologies. The goal is to achieve breakthroughs in the purificationtechnology of ultra-high purity nitrogen. The production line will manufacture ultra-high purity argon, krypton, and xenon,as well as high purity octafluorocyclobutane. The products will reach a leading level in the country, with some indexesreaching the advanced level internationally. Additionally, there have been breakthroughs in the purification technology ofethylene and propylene hydrocarbons. The purification technology for ethylene and propylene hydrocarbons is used tocreate technical reserves and provide strong technical support for large-scale production. Additionally, forward-lookingtechnology development and research is carried out to address basic common technical problems in related areas. Thishelps to solve common weak links such as process, equipment, testing, standards, and production quality. Ultimately, thisleads to the gradual formation of a complete electronic gas industry with independent development capability. Acceleratethe adoption of domestic electronic gases in the production and manufacture of chips in the semiconductor andintegrated circuit industry in Guangdong Province and throughout the country. This will help to substitute imported gaseswith locally produced ones and enhance the market application of these gases while promoting the transformation ofscientific and technological achievements.
R&D and Engineering Platform for Electronic Gases forSemiconductors and Integrated CircuitsThrough independent science and technology projects, and actively undertake all kinds of science and technology plansand projects, in view of the technical needs of the industry and industrial development, especially limited imports andproducts of strategic significance in the semiconductor field, carry out common technology research, and solve thecommon weak links such as process, equipment, testing, standards and production quality. Build a technology researchand development and engineering verification platform for electronic special gases, key materials in the semiconductorand integrated circuit industry chain, including research laboratories and technical service platforms (gas purification, gasmixing, gas analysis, gas cylinder treatment), and pilot test platforms for achievement transformation, and actively promotethe localization process of electronic special gases.
China National Accreditation Service for Conformity Assessment Laboratory Accreditation Certificate
4950
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Product
We have conducted significant scientific research projects, including the R&D and Pilot Project of High Purity Trifluoromethane as part of theNational Major Science and Technology Special Project (02 Special Project), as well as the R&D of 'Specialty Gases for Flat PanelDisplays' in the Pilot Project of Regional Concentration and Development of Strategic Emerging Industries in Guangdong Province (NewGeneration of Display Technology). We were selected as the only gas company for three consecutive years as one of the 'Top 10Electronic Chemical Materials Companies in China' in 2017. Additionally, we were selected as one of the 'Top 10 Electronic ChemicalMaterials Professionals in China' for three consecutive years in 2017, 2019 and 2021. In 2023, we were awarded the sixth 'IC InnovationAward' by China IC Innovation Alliance for the industrialisation of achievements ('IC Innovation Award'). In 2023, we won the sixth 'ICInnovation Award' from China IC Innovation Alliance for their research and development and industrialisation of dilute photolithographygas for integrated circuits. They were also selected as one of the fifth batch of national specialty, specialty and new 'small giants'enterprises. The text mentions several honourable titles, including the Guangdong Provincial Patent Award, the Guangdong ProvincialManufacturing Industry Single Champion, and the 2023 Foshan City Science and Technology Leading Enterprises (InnovationEffectiveness) award.Intellectual Property Protection
We place a high value on safeguarding intellectual property rights. To enhance the management of intellectual property rights andsafeguard the interests of the company and the affiliates, we have developed methods for managing intellectual property rights basedon relevant laws and regulations. Additionally, we have established an Intellectual Property Office to collaborate with the administrativeand R&D departments in this regard. We regularly provide training on intellectual property protection to raise awareness among allemployees.
Quality Management SystemWe adhere to the quality policy that states 'quality is the foundation of enterprise survival'. We have established a quality managementsystem that covers the entire life cycle of our products. Our focus is on applying advanced management tools and concepts to enhanceour quality management practices. The implementation of the SPC 6σ management system ensures product stability and compliancewith semiconductor industry quality control standards for raw materials. Additionally, the SQC management method guaranteesquantitative and scientific quality control, resulting in efficient and consistent product quality improvement.
Product Responsibility
Our quality management system and food safety management system are certified for compliance with the requirements of ISO9001and ISO22000. We advocate for the implementation of total quality management. The general manager should lead the quality controlto create a new quality management model.
Total of
authorised patents;
authorised patents for invention;
authorised patents for utilitymodels;
trademarks;
CNY5,0428.8Thousand investments in R&D in 2023
papers publishedHosted or participated in the development of a number of electronic industrial gases, including
internationalstandard,
national standards,
industry standards and
group standards.
During the Reporting Period
By the end of the reporting period
Quality Management Structure
Quality Director
QA ManagerQC Manager
ISO Specialist/ClerkQuality Engineer
Deputy Director ofQuality Inspection
Industrial Gas/Special GasInspector
Medical/FoodGas Inspector
Nail CrackGas Examiner
ElectronicGas Inspector
Material/ProcessControl Inspector
ComplaintProcessing/File Manager
●
●
5152
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Product
Quality Risk Management
We place significant emphasis on managing product quality risks and have established Control Procedures for Identification andResponse to Risks and Opportunities. These procedures involve regular surveys of stakeholder needs and expectations, riskidentification and assessment, and updates to responses for risks and opportunities.
Quality AssuranceHuate Gas implements full-process management for incoming materials, production processes, and after-sales quality supervision.
ISO9001 Quality Management System CertificateISO22000 Food Safety Management System Certificate
Product Quality Risk & Opportunity Control Process
Equipmentmanagement
Develop equipment management and control procedures, and carry out the management work
related to production equipment according to the prescribed procedures.
Materialmanagement
Production
processmanagement
Warehouse write the inspection formand attach the supplier report
Warehouse keeper classifies and marks them
Return or concession acceptance (within one week)Packaging appearanceLeak detection, pressure, weightGas quality detection
Quality inspectionThe quality control department willissue a report within three days
Wait for inspectionCheck report
BelowstandardQualifiedWarehouse entry
Production department reworkPackaging appearanceLeak detection, pressure, weight
Gas quality detection
Quality inspectionQuality inspection labeling,
reporting, sealing
Warehouse entry
Production with qualified raw materials,
production according to orderThe production department completes
the finished product
Shipment
BelowstandardQualified
Risk factors(internal/ external)
External factors such as laws and regulations, technological innovation, market competition, and marketdemand, as well as internal factors like company values, management documents, professional knowledge, andcompany performance, all play a significant role in shaping a business's success.
Risk management
/mitigation
Risk Avoidance、 Risk-taking、 Risk reduction、 Changing the likelihood and consequences of risk、 Risk sharing、Deferring risk.
Description
Each department head identifies risks and opportunities related to their department's operations, records theresults in the Risks and Opportunities Assessment and Analysis Form, and submits it to the Quality ControlDepartment.The QC department summarizes the list of risks and opportunities and reports it to the managementrepresentative.The management representative will identify the risks and opportunities that require attention at the companylevel, considering all internal and external factors, the requirements of relevant parties, and the risks andopportunities identified by each department.
When changes occur in the management system or in internal or external factors affecting the managementsystem, the evaluations of risks and opportunities and responses should be updated.Timely update of results ofrisk and opportunityidentification and response
5354
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Product
To prevent non-conformity and potential issues in our product quality management and social responsibility operations, Huate Gas hasdeveloped the Corrective and Preventive Measures Control Procedure in compliance with relevant laws and regulations. This will effectivelyNon-Conformity Managementprevent similar problems from recurring and ensure the continued efficient and effective operation of our management system.
Huate Gas has established a comprehensive product recall mechanism for unqualified products with potential and significant qualityhazards. Upon discovery of any issues, production and sales will be halted immediately, and a recall will be initiated. The defects willbe assessed, and remedial measures will be taken.
Huate Gas correction and prevention process
Huate Gas product recall process
Fail to review
Responsibledepartment toanalyze the causeFoundunqualified
Record keeping
Submit formanagementreview
Need forevaluationmeasuresDefinite measureImplementationmeasure
Reintroduce measures
Correct or stop
Determine the extent andseverity of the impact
NO
YES
Effective
In vain
Customercomplaint
Internaldiscovery
Quality appraisal
Record archiving
Preliminaryhazardassessment
Implementa recall
RecallconfirmationRecall plandesignationNews release
Acceptanceand treatment
Initiate
Nonconforming productcontrol procedures
NO
NO
YES
YESTrace verification
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Product
Product Quality TrainingWe are committed to enhancing staff awareness of quality risk responsibility and improving the enterprise's level of qualitymanagement. This will enable us to achieve high-quality development in the competitive market. As per the quality managementsystem, we regularly provide training to our staff on quality management topics, including regulations, policies, quality knowledge, andjob skills. This training is designed while considering the annual quality management objectives, business development needs, and jobcompetence requirements.
Life Cycle ManagementHuate Gas adheres strictly to relevant laws and regulations. It has formulated Procurement Control Procedures that take into account our ownactual situation. We have established a multi-dimensional and multi-departmental participation assessment system that effectivelyensures the continuous iterative optimization of suppliers' resources. This guarantees the supply chain's sustainable performance andestablishes a supply chain environment with fair competition, integrity, transparency, and strong traceability.Who We ChoseBefore commencing the procurement process, we will conduct initial audits of suppliers to assess their qualifications, legitimacy,performance capability, and reputation in accordance with the Procurement Control Procedures. In addition to assessing basic qualifications,we will also evaluate suppliers' performance in areas such as quality management systems, EHS management systems, socialresponsibility, and environmental protection.
The Huate Gas Supply Chain
ISO three system internal auditor training
Procurement selection process
New supplier selection
Basic survey of suppliers
Sampling
Sample confirmation
Qualified supplier entry
Evaluation pointsEvaluation procedureEvaluation principleSupplier assessment
Further purchaseDeadline improvement
Small batch use
Delivery timePriceQuality
NG
NG
Distribution group
OK
OK
OK
Production class
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Product
Huate Gas categorises suppliers into four groups based on the materials and services they provide. Different selection criteria areHolding the Highest Standardsapplied to each type of supplier.
Supplier Engagement and Accountability
Huate Gas conducts annual performance evaluation of existing qualified suppliers at the beginning of each year, and adopts the formof Annual Supplier Evaluation Form for suppliers in category A and with more than 3 batches of supply volume in the previous year, andconducts comprehensive evaluation of their one-year supply performance together with relevant departments.We comprehensively consider the annual performance evaluation and the annual system audit to assess the grades, and dynamicallyadjust the List of Qualified Suppliers. During the reporting period, we evaluated a total of 86 suppliers in category A, with an evaluationcompletion rate of 100 per cent.
Procurement Ethics
In order to promote the construction of integrity in the supply chain, we have signed the Letter of Agreement on Integrity with our suppliers,requiring them to strictly comply with relevant national laws and regulations on integrity, as well as the relevant rules on integritymanagement formulated by Huate Gas.During the reporting period, the signing rate of the Letter of Agreement on Integrity by all our suppliers reached 100%.
Service SystemHuate Gas attaches importance to the construction of customer service management system, continue to implement the"customer-centric" service concept, the "customer-oriented" core values into practice, for which we have formulated the Customer ServiceControl Procedures, the establishment of a smooth customer communication channels, to ensure a clear understanding of customerrequirements, to do a good job in the pre-sale, sales, after-sales service, improve customer satisfaction.
Customer Complaint Handling
Huate Gas adheres to the service concept of customer first, set up a special rights and interests of the service hotline to ensure thatcustomer feedback on product quality and applications for return of products will be promptly responded to and dealt with, after theimplementation of processing procedures, 100% of customer complaints should be responded to and the results of processing thearchives, and gradually to achieve customer complaints to zero.At the end of each month, all quality feedback is categorised and summarised according to production plants, product categories andcauses of defects, and summary information is produced which is passed on to the production plants as a data reference for continuousimprovement of quality work.
Caring for Customers
GroupMaterialSelection Method
A
●●●●
B
●●
C
●●
D●
QualityDelivery datePriceServiceHSE
Supplier Annual Performance Appraisal Dimensions
Production of raw materials,packaging, valves, distributionof products
Equipment, accessories, reagentsLogistics outsourcing, testing,certification, metrology,calibration and other servicesAuxiliary materials, office labourinsurance products, hardwareaccessories
Issue the 'New Supplier Investigation and Evaluation Form' and 'SupplierEnvironmental Status Questionnaire' to new suppliers. Require suppliers to strictlyadhere to the form's requirements and provide the necessary qualificationdocuments.Purchasing staff should verify the information provided on the 'New Supplier Surveyand Evaluation Form' and complete the 'New Supplier Initial Evaluation andAssessment Form'. Submit the form to the relevant departments for approval.After approval, the QC department will organise a written or on-site audit for thesupplier.The Purchasing Department obtains samples from the suppliers and sends them tothe relevant departments for testing and trial production. The results are then fedback to the Quality Control Department, Quality Control Office, PurchasingDepartment and R&D Centre.The purchasing clerk assesses suppliers' business qualifications;The using department verifies that the required materials meet their needs.Selection of logistics providers: review their business qualifications, including theirbusiness licence and road transport permit for hazardous chemicals.Selection of measurement and testing service providers: review their businessqualifications, including their business licence, measurement and testing capacityrecognition, and system certification.Buyers do not need to qualify suppliers and can purchase directly from online shops.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Product
To improve the efficiency of handling customer complaints, Huate Gas has implemented a digital complaint handling system andformulated customer service control procedures to monitor and handle product quality complaints.
Customer Satisfaction Monitoring
In order to fully understand the needs of customers, we regularly conduct customer satisfaction surveys every year to understand theproduct through multiple dimensions and improve the quality management system based on the results of the survey. For customerdissatisfaction or survey form scored less than 80 points of the project or the overall assessment of dissatisfaction in accordance withthe relevant procedures to issue a report, and instruct the relevant departments to respond and improve.
Privacy ProtectionHuate Gas is committed to complying with relevant laws and regulations and to strictly protecting customer privacy. All customerinformation is treated confidentially and we guarantee that all channels of information collection are legal and appropriate.During the year there were no incidents of breaches of customer privacy or disclosure of customer information by Huate Gas.
Customer Complaint Handling Procedures
Digital Customer Complaint Handling Platform
97.12%
Customer satisfaction index
Customer complaints100%Response rateDuring the Reporting Period
Finish
Reasonable complaint
YES
YES
NO
NO
Unreasonable complaint
Customer complaintCustomer complaint record(completed by service assistant)
In accordance with complaint
handling principlesMaintain processcontrol procedures
Explain to the user
Complaint processing closedCustomer acceptance
Report to service manager
(give advice)
Customer acceptance
Consult according to opinionAfter-sales managerrecords and records
Service manager reportsto chief engineer
Chief engineer's final proposal
Complaint Handling Report(prepared by QOQ)
Product
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Our People
Compliance EmploymentEmployees are the most invaluable assets of us. We consistently adhere to a people-centered management philosophyand strictly comply with pertinent laws and regulations. We have formulated a comprehensive Employee Manual thatcovers areas such as recruitment and employment, as well as wages and benefits, to ensure that every applicantreceives equal employment opportunities throughout the recruitment process. Additionally, we are committed tosafeguarding the legitimate and reasonable rights and interests of our employees.In the Employee Handbook, we define a diversified recruitment channel to ensure the wide dissemination of recruitmentinformation. Recruitment channels are divided into online recruitment, on-site recruitment and our official website, etc.,providing employees with a variety of choices to facilitate understanding and applying for positions.During the reporting period, we offered employment to 153 job seekers.
Rights and Benefits
1,186Headcount as of December 31,2023,
35.08%
of employees are women;
97.39%
Labour contract coverage,
95.62%
Coverage of five insurance policies.Key performance
Campus job fairA pro bono job fair
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
To safeguard the physical and mental well-being of minors, uphold the compulsory education system, and protect their legitimate rightsand interests, we have established rigorous Prohibition of Child Labor and Control Procedures for Underage Workers. We strictly scrutinize theidentity information of candidates during the recruitment process to eliminate any instances of child labor. If a minor is discoveredworking, their employment will be promptly terminated, and a comprehensive health assessment will be conducted by a professionalmedical institution to ensure that no harm to their health has occurred. Additionally, we will ensure that the minor is safely escortedback to their guardian.
Inclusion and Diversity
Harassment and DiscriminationHuate Gas has established the Anti-Discrimination Control Procedure to ensure a positive and welcoming working environment for allemployees. We encourage employees to show mutual respect, provide support to one another, and grow and progress together. Allemployees have the right to work in an atmosphere free from harassment, and Huate Gas strictly prohibits any conduct that creates acoercive, hostile, or uncomfortable work environment. This includes, but is not limited to, disparaging or inappropriate remarks, actions,gestures, jokes, or epithets, as well as the public display of slanderous, obscene, derogatory, or offensive signs, posters, cartoons,photographs, or images. We also condemn any form of unlawful sexual harassment.
Women's EmpowermentWe place utmost priority on safeguarding the rights and interests of women, and are deeply committed to enhancing the welfare offemale employees in the workplace. Female employees are entitled to paid maternity leave, breastfeeding leave, and various otherbenefits as stipulated by national regulations. Furthermore, in accordance with relevant national laws, we provide appropriate "fourstages" protection to female employees, ensuring that pregnant and breastfeeding women are not assigned to perform tasks that mayharm their health or the fetus.The trade union of us has established a dedicated committee for female workers, aimed at guiding them in actively participating inenterprise construction. This committee carries out education on "self-esteem, self-confidence, self-reliance, and self-improvement" toenhance the overall quality of female workers. It also demonstrates care for the daily lives of female employees and ensures theprotection of their unique rights and interests.
Headcount as of the end of the reporting period, people
Overall1,186Gender
male
female
Age
up to 30 y.o.
30 to 50 y.o
over 50 y.o.
Position
production
sales
finance
administrative
Technology
Transport
Others
Ethnic Minority
Disabled8
38 Women's Day Activities
The number of employees currently benefiting from maternity leave stands at
, with a maternity leavereturn rate of
83.33%
;The number of employees enjoying paternity leave is
, and the return rate of paternity leave is100%;
During the reporting period
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Our People
CompensationStructure
In order to standardize salary management, ensure effective salary incentives and fairness, and foster a positive team atmosphere, wehave crafted the Salary Management Regulations tailored to our unique circumstances. These regulations provide clear direction for oursalary administration, fully leveraging the incentive power of salary distribution, and ultimately enhancing our core competitiveness.Adhering strictly to the principles of fairness, competitiveness, incentive, and legitimacy, we establish and adjusts salaries for eachposition. It ensures a scientific and rational compensation system by reasonably setting salary levels for diverse roles, taking into accountfactors such as job responsibilities, skill requirements, and the complexity of work.
Financial Incentives for EmployeesTo enhance our appeal to exceptional talents and spark their endogenous motivation and potential, we have crafted and implementedan equity incentive plan. During the reporting period, we thoroughly reviewed and approved two crucial proposals: the Proposal on the FirstGrant of Restricted Stock to the Target of the 2023 Restricted Stock Incentive Plan, and the 2023 Restricted Stock Incentive Plan of Guangdong Huate Gas Co., LTD.(Revised Draft). It has been decided that March 20, 2023, will mark the initial grant date for our 2023 restricted stock incentive plan. Atotal of 329,200 restricted shares will be awarded to 25 eligible incentive subjects at a grant price of 41.36 yuan per share.Time Away
To standardize attendance management, enforce strict work discipline, and effectively promote employee professionalism, the WorkingTime Management Procedure has been established. This procedure stipulates that all employees are entitled to at least one day of rest everyseven days, and the overall weekly working time shall not exceed 60 hours. We adopt a combination of mobile phone attendance andmanual attendance to ensure accurate tracking. In cases where overtime work is necessary, employees will be compensated inaccordance with the overtime management regulations, subject to the approval of the leadership.Life and FamilyTo ensure the provision of fundamental employee benefits and foster a stronger sense of belonging to the enterprise, we adhere strictlyto national laws and regulations. The Employee Manual comprehensively details the various benefits offered, and we are committed todelivering diverse welfare security measures that enhance the quality of life for our employees.
Basic payMerit paySeniority wage
Education/title subsidy
other
Salary Structure
Huate Gas Welfare SystemStatutory welfareLeave benefitsOther benefits
Total CNY
27.676
MILLION employee welfare investment:
CNY
15.389
MILLION statutory welfare expenses, CNY
12.3674
MILLION non-statutory welfare allocations.
During the reporting period
Huate employees parent-child fun gamesStaff canteen
Staff rest area
National statutory holidays, five insurance and one fund.Weekends and weekends, sick leave, work injury leave, marriage leave, funeral leave, maternity leave, paternityleave, personal leave, etc.Apartment-type dormitory, high-quality meals, shuttle bus, annual travel and physical examination, holidaybenefits, housing provident fund, student fund, telephone subsidy, private car allowance, cultural activities, helpto solve staff difficulties, staff self-improvement rewards.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Our People
Human RightsLabor Union
To better safeguard the legitimate rights and interests of employees, stimulate their enthusiasm for work, and foster the growth of theenterprise, we have established a trade union organization in accordance with the Trade Union Law and the Constitution of the Chinese Trade Union.Regularly convening the workers' congress, we uphold employees' rights to information and participation, and actively listen to their opinionsand suggestions.
Diversified Communication Channels
To foster active communication and interaction with employees, we have implemented various initiatives, including the establishment ofsuggestion boxes and feedback forms, conducting employee respect surveys, organizing tea parties, theme salon activities, and employeesymposium procedures. We encourage employees to voice their suggestions and opinions regarding our operations and business, aiming tocontinually enhance performance and improve work efficiency.If employees believe they have been discriminated against, they have the option to report through our Prevention of Disciplinary Control Proceduresand Employee Advice and Complaint Management Procedures. Once the Human Resources Department verifies the claim, the reporting employee willbe rewarded, and their information will be kept confidential whenever necessary.
Employee Respect DegreeHuate Gas carries out an annual employee respect survey encompassing all personnel, with the goal of attentively listening to the voices ofour employees, addressing their demands and expectations through tangible actions, enhancing the overall employee experience, andultimately fostering positive business outcomes.During the reporting period, the employee satisfaction score was 3.3 out of 5.
30.02%
union members are active employees.
Training Platform
Recognising that employees are the driving force behind the sustainable development of our enterprise, we actively create a clearand flexible growth path for our personnel. We strive to unlock their potential and provide ample development opportunities. We arecommitted to their career planning and personal development, encouraging continuous learning and improvement.To support the personal development of our employees, we have established the Human Resource Control Procedures and implementedthe Huate Training System Plan. These initiatives are designed to ensure that employees receive the required training and supportto achieve their career goals.
Personnel Training
Total CNY 530,000in training investment,8,322employees of Huate Gas participated in thetraining in calendar year 2023;
127,923training hours in Huate Gas in FY2023,
hours of training per person.
Four functions of Huate Gas unionMaintenance
ConstructParticipation
Education
Staff seminar
Workingenvironment
Communicationmechanism
Departmentalcooperation
Corporateculture
Staff
training
Safetymanagement
Performance
Compensationand welfare
Employee respect degree survey dimension
Represent and safeguard the legitimate rights and interests of employeesParticipate in the democratic management of enterprises and exercise democratic supervisionGuide employees to participate in enterprise construction and complete production and operation tasksStrengthen staff education and improve staff qualityDuring the Reporting Period
During the Reporting Period
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Our People
Huate training system planning
To guarantee the professionalism and efficiency of the trainer team, we have meticulously crafted the Trainer Management System and TrainingEvaluation Management System. These systems outline the selection, training, utilization, performance, and evaluation processes for trainers,ensuring they possess the necessary skills and awareness to fulfill their roles effectively. During the reporting period, we successfully certifieda total of 16 internal instructors.
Hierarchical Training
To enhance the professional capabilities of our employees, we conduct comprehensive and systematic professional training tailored to thespecific characteristics and job responsibilities of each business department. We carefully design professional knowledge training plans andskills training programs aimed at fostering the holistic development of our workforce.
TrainingProgram
Training
Object
Training Content
Human ResourcesThird Party AgencyLeadership Group
Storage ConditionTalent PoolCompetency ModelCourses at All Levels
Talents at All LevelsSystem Training
Human ResourcesHuman Resources
Induction TrainingBlue ProjectTalent InventoryProjectTalent Assessment(Internal + External)
InstructorTraining -TTT
Coach Training
Result Output
Develop ProfessionalCourses at All Levels
Platform-solidified CourseExportation
Carry OutPlanning Item
Fulfiiment
Newcomer EntryCorporate CultureSafety Training
External Survey
Warehouse A
Warehouse BClosed Beta Test
Core BackboneMiddle ManagementWhampoa Troupe
Carry Out
Planning Item
Result Output
Talent Inventory
Training Courses at All LevelsYouth and Blue Project Old Bring New
Curriculum ConsolidationTalent Replication
Evaluation System
Mentor Training
ProjectImplementation
Feedback Check
Record
Competency ModelCurriculum System
Grassroots Talent
Middle and SeniorTalents
Key Behavior
Upload and Record
Core Curriculum
Completion Export
TrainingImplementation
Instruction Chart
WarehousingIncentive
Tape-broadcastCourse
New employee
training
New employeeSenior executives
and generalmanagers of
each subsidiary
Management
trainee
Workshop staff
on duty
Executivestrategy training
Newmanagementtrainee trainingWorkshop safety
skills training
Provide employees with safety knowledge, company regulations, and business skills requiredfor the position. The training time is two days after the entry.
Provide training on strategic planning and implementation for senior management.We offer training for management trainees encompassing a diverse range of topics, includingR&D skills, production processes, product information and knowledge, packaging expertise,sales know-how, fundamental financial understanding, and career planning.To enhance the proficiency of workshop personnel in utilizing safety facilities, strengthenemergency management, and improve their capacity in safety production management, theR&D center conducted a workshop safety skills training session.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Our People
Education Promotion Training
With the aim of fulfilling our corporate mission of "providing the best platform for employee development" and upholding a people-orientedapproach, we establish long-term and stable partnerships with reputable educational institutions. This collaboration serves as a reliable avenuefor employees to enhance their academic qualifications, constantly motivating them to maintain a positive mindset, pursue continuouslearning, and elevate their professional standards. Additionally, we encourage employees to participate in professional title assessments andoffer commensurate rewards to recognize their achievements.Career DevelopmentPromotion ManagementHuate Gas places significant emphasis on employee self-development and currently intends to introduce classified management tailored tothe nature of work across various positions. This approach aims to empower employees to select their own career development paths, bothhorizontally and vertically, while assisting them in enhancing their professional capabilities and competitiveness.
Internal Post Transfer Mechanism
We utilize internal transfers as a means for horizontal talent transmission, promptly filling vacant positions within the organization, therebyenriching the talent pool and maintaining a healthy flow of talent. Furthermore, we encourage employees to pursue horizontal developmentacross various positions based on their individual aspirations, fostering internal talent mobility and enabling employees to achieve autonomousgrowth and progress.
Protecting Our PeopleHuate Gas upholds the occupational health and safety policy of being"people-oriented, prioritizing employee well-being; committed to safeproduction and environmental protection through systematic and scientificmanagement; adhering to legal compliance and continuous improvement,striving for industry-leading standards." We consistently prioritize the healthand safety of our employees, continuously enhancing our occupationalhealth and safety systems, identifying and mitigating workplace hazards,and making every effort to fortify a robust defense line for employee healthand safety.To ensure the effective implementation of safety measures, we haveestablished internal rules and regulations, including the Compilation ofOccupational Health Management Systems, and strictly adheres to these systemsin the operations and management. Furthermore, we have established anHSE organizational structure to effectively prevent, control, and eliminateoccupational hazards, thereby further preventing the occurrence ofoccupational diseases and safeguarding the health rights and interests ofour employees. During the reporting period, we successfully obtainedISO45001 Occupational Health and Safety Management Systemcertification, actively fostering a safe and harmonious workingenvironment, and demonstrating a commitment to employee well-being.
Health and Safety at Huate Gas
Executive strategy training21 new management trainee training
Workshop safety skills trainingThe first employee Skills competition of Huate Gas
GB/T 45001-2020/IS0 45001:2018Occupational health and safety management system certification
HSE Management Organizational Structure Diagram
Main person in chargeIn charge of safety
HSE department
AuditDept.
Securities
Dept.
QualityControlDept.FinancialDept.
SalesDept.InternationalBusinessDept.
ProductionDept.
ProcurementDept.
HR Dept.
R&DCenter
LogisticsDept.
InvestmentPlanningDept.
IT Dept.
TechnicalDept.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Our People
Security Risk Management
To standardize the processes of hazard identification, risk assessment, and risk control, we have developed a comprehensive Security RiskClassification Management and Control System. This system ensures that all types of risks are effectively contained, thereby enhancing our safetymanagement standards and safeguarding the personal and property safety of our employees. Additionally, we have established a dedicatedsecurity risk management and control group to facilitate the seamless implementation of "full staff, whole process, all-round, all-weather" riskmanagement and control practices.
Hidden Danger InvestigationWe have established and continuously refined a comprehensive safety production responsibility system for all employees, explicitly outliningthe responsibilities and requirements of personnel at every level in safety production. This system serves to enhance the safety awarenessand accountability of employees, thereby ensuring the effective implementation of safety measures.To further safeguard our production safety, the organization has developed a comprehensive Hidden Hazard Investigation and Management System.This system mandates regular inspections of potential hazards within the plant premises, ensuring prompt rectification and notification. It alsoentails documenting, evaluating, classifying, grading, and analyzing the causes of these hidden hazards, followed by the implementation ofcountermeasures and treatment plans to guarantee their timely elimination. Additionally, to standardize employee behavior, we haveestablished a set of regulations governing employee rewards and punishments, aimed at actively mobilizing the enthusiasm of employees,eradicating safety hazards, preventing major safety accidents, and ultimately enhancing work efficiency and business performance.
2023 Occupational Health and Safety goalsAchievements in 2023●●●●●
All achieved
Occupational Health and Safety Goals for 2024
●●●●●●
●●●●●
Hidden danger investigation and management on-site inspection photos
No food poisoning incidents;No occupational diseases among employees;No major driving accident;No significant death rate due to work-related injury;Minor injuries of employees (within 3000 yuan/piece) control ≤5 pieces/year.
No general accidents and above security incidents;No workplace accidents with serious injuries or more occurred;No fire accidents;No food poisoning incidents;Zero incidence of occupational diseases;Safety equipment and facilities integrity rate of 100%
Major industrial accidents ≤3 cases/year;There were zero major security risks in the on-site review ofgovernment departments;Safety education and training pass rate 100%;Safety hazard rectification rate is 100%;Special operations and special equipment operators have acertified work rate of 100%.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Our People
Emergency Preparedness and ResponseWe firmly adhere to the principles of safety and prevention being paramount, prioritizing special investigations and comprehensive treatment.Guided by our century-old plan and quality-centered safety policy, we have formulated a comprehensive Emergency Plan for Production SafetyAccidents. This plan includes contingency measures for accident rescue, the establishment of an accident emergency management system,and the definition of handling procedures for various accidents based on the identification of accident factors and risk levels both within andoutside the plant. Additionally, we have established a dedicated Safety Management Office, which is responsible for overseeing productionsafety and emergency management matters. The head of this office serves as our directly responsible person for safety management,emergency management, and safety production. Our approach to safety management aims to achieve "five simultaneities": planning, layout,inspection, summary, and evaluation must all occur concurrently.The emergency rescue team has organized and conducted numerous practical drills of emergency plans, ensuring that employees have aprofound and comprehensive understanding of the measures to be taken in the event of production safety accidents. During the reportingperiod, we successfully conducted 40 emergency drills, further enhancing the team's readiness and response capabilities.
Safety Management MeasureContractor Safety ManagementIn order to strengthen the safety management of contractors and prevent the occurrence of production safety accidents and environmentaldamage incidents, we have formulated the Contractor Safety Management System in accordance with the Production Safety Law of the People's Republic ofChina, the Environmental Protection Law of the People's Republic of China, the Occupational Disease Prevention and Control Law of the People's Republic of China, etc.,and in combination with the actual situation. Among them, it clearly stipulates the contractor's safety management responsibilities, HSEaccess, HSE protocol management, HSE education during construction, etc., so as to ensure the contractor's operation safety.Smarter ChemistryIn order to enhance the safety management of our hazardous chemicals and prevent potential safety accidents, we have developed acomprehensive hazardous chemicals safety management system, including chemical leakage emergency disposal cards and other pertinentdocuments tailored to our specific operational context. Additionally, we have clearly defined the responsibilities and authorities of eachdepartment to guarantee the secure storage, usage, and handling of hazardous chemicals, ultimately safeguarding the safety of ouremployees and the enterprise.
Vehicle injury accident emergency drillFood poisoning emergency drill program training
Hydrogen tube bundle filling leakage, fire emergency drillEquipment line overload fire emergency response drill
Prevention and Control of Hazardous Chemicals
Purchase,purchasemanagementWarehousemanagement
Unload
Storage
Use
Undertake a thorough review of our suppliers, ensuring that they furnish safety technicalinstructions and chemical safety labels. Concurrently, exercise rigorous control over the purchaseand storage quantities to ensure compliance and safety.Before storage, check and register according to the purchase order.When handling dangerous chemicals, it is imperative to wear protective equipment to ensuresafe and light loading and unloading. During the unloading process, designated personnel shouldbe assigned to oversee and monitor the operation, ensuring the smooth and safe execution.Based on the type and characteristics of the chemical substances, appropriate ventilation, fireprevention, explosion-proof, and gas-resistant isolation safety facilities are established toensure safety.Our process operation rules and safety operation regulations must be strictly adhered to whenusing, and it is mandatory to wear labor protection equipment and appliances for operation.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.Our People
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Our People
and safety.Strengthen the training of employees' occupational health knowledge and enhance their awareness of occupational health protectionMake reasonable work rest time to ensure the combination of work and rest.other posts shall have a health inspection.Good staff health monitoring. Every year, the occupational-disease-inductive post shall have an occupational health inspection, andaccording to requirements.glasses, protective masks, positive pressure breathing apparatus and other labor protection supplies, and wear them correctlyStrengthen personal protection. Employees shall be equipped with safety helmets, labor protection shoes, overalls, protectiveand the installation of air conditioning systems, to ensure optimal environmental conditions.The production and filling areas utilize various ventilation and cooling measures, including natural ventilation, mechanical ventilation,from touching frostbite.Cryogenic pipelines, such as liquid nitrogen, liquid argon and liquid oxygen, adopt cold protection measures to prevent personnelmeasure to prevent leakage.effectively mitigate issues such as leakage. For instance, the employment of film presses with excellent sealing capabilities is a keyBy rationalizing the design process engineering and enhancing production equipment along with operational methods, we can
During the reporting period
CNY1,061.24Thousand total security investment.
Wear a helmetEntry safety instructions
Occupational Health Protection Measures
safeguarding the lives and health of our esteemed employees.company, mitigating the risk of occupational diseases, andelevating the overall safety management standards of theworkplace. Additionally, it holds immense significance inthereby strengthening safety management within thecomprehension of occupational health and safety measures,equipment. This training aimed to enhance employees'examination procedures, and the use of labor protectionhealth, workplace hazard management, occupational healthencompassing fundamental knowledge of occupationalroom. The primary focus of this meeting was safety trainingof convened a monthly safety meeting in the 403 trainingOn November 9th, our Safety and Environment Department
Monthly Security Meeting in November
During the reporting period, all employees underwent medical examinations.employee safety and well-being.monitoring. Risk assessments are conducted and control measures are developed based on monitoring and assessment outcomes to ensureaddition, we have established occupational health protection facilities in relevant workplaces and regularly perform on-site occupational healthoccupational diseases. It is also important to standardise the creation of individual occupational health monitoring files for each worker. InWe will conduct physical examinations before, during, and after work for employees in hazardous occupations to identify any risks ofOccupational Health Security
safeguarding our intelligent operational safety.monitoring, early warning, emergency response, and system evaluation. Additionally, it significantly reduces the risk of security accidents,approach offers us a comprehensive suite of intelligent data management and control capabilities, encompassing rapid perception, real-timeenables synchronized large-screen functionality on the computer end but also thoughtfully incorporates mobile-side functionality. Thisacross the 376 combustible toxic monitoring points, 2 major hazard sources, and 376 real-time data monitoring interfaces. This not onlyUtilizing the intelligent safety management platform, we have implemented comprehensive real-time monitoring and multi-tiered warningsDigital Management Platform
safety production system and operational procedures.of the entire production process can only be guaranteed when every employee possesses a profound understanding of and adherence to theWe place significant emphasis on safety awareness training for our employees in their daily work. We firmly believe that the safety and stabilityTraining
Communities
Huate Gas remains steadfast in the commitment to embodying the "Lei Feng Spirit" and elevating the image of a civilizedcity. During the reporting period, we successfully hosted the "Low-Carbon Environmental Protection - I Can Do It"initiative, encouraging our employees to actively participate in picking up pavement waste and properly classifying it.This endeavor not only fostered a sense of community responsibility among employees but also contributed significantlyto the local green development efforts.
Green Public Welfare
Concurrently, Huate Gas embodies the low-carbon philosophy through practical actions, steadfastly fulfilling the GreenMission. In March 2023, we organized a meaningful "March 12 Tree Planting Activity" for our employees and their families,thereby deeply ingraining the principles of green and low-carbon living into the hearts of our workforce.
"Low-carbon Environmental Protection I can do" Activity
3. 12 Tree Planting Activities
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Common prosperity has been the dream and pursuit of the Chinese nation for thousands of years. Huate Gas actively participates insocial welfare undertakings, enthusiastically engages in social welfare activities, and actively contributes to the society in areas such ascharitable donations, environmental protection, and care for students.Natural disasters are indeed merciless, but humanity remains compassionate. In response to the devastating 6.2-magnitude earthquakethat struck Jishishan County, Linxia, Gansu Province, Huate Gas promptly took action. Through the Red Cross Society of Foshan City,we actively donated funds to support relief efforts and post-disaster reconstruction in the affected areas. We understand that, in timesof crisis, every small act of kindness can amass into a powerful force that brings hope and warmth to those in need. Huate Gas standsready to stand shoulder to shoulder with the people of the disaster-stricken regions, joining forces to embrace a brighter future in theaftermath of this tragedy.Education is instrumental in nurturing talent and driving social progress. In October 2023, Huate Gas demonstrated the commitment tothis noble cause by donating scholarships to Chongwen School in Huangpi Town, Xingning City, through the Xingning CharityAssociation. This donation aims to further inspire the enthusiasm and positivity of teachers and students, injecting fresh momentum intothe pursuit of high-quality education. Huate Gas has long been a staunch supporter of educational endeavors, dedicated to providingtangible support to teachers and students. By doing so, we jointly contribute to the flourishing and advancement of education.Furthermore, Huate Gas remains actively engaged in numerous charitable endeavors. We have made generous donations to variousorganizations, including the Lecong Charity Association of Shunde District in Foshan City, the Nanhai Charity Association, and the ChinaSoong Ching Ling Foundation. These donations reflect our profound concern and commitment to fulfilling our societal responsibilities.Huate Gas firmly believes that the success is not only measured by the economic performance, but also by our ability to makemeaningful contributions to society and improve the well-being of the people. We are committed to actively fulfilling our socialresponsibilities and will continue to make significant contributions to the development and promotion of charitable enterprises.
Donation
On June 6, 2023, the first tank of liquid helium land transportation project of Huate Gas and the Russian Federation successfully usheredin the first tank of liquid helium, marking an important step in the development of Huate Gas in the helium business. The success ofthis land transportation project is not only a supplement to the strategic resources for the development of Huate Gas, but also anaffirmation of our long-term commitment to high-quality gas products and services.
Liquid helium, a rare and crucial industrial gas, finds extensive application in various high-tech sectors, encompassing semiconductorproduction, medical diagnosis, and scientific research. The successful execution of the liquid helium land transportation project betweenus and the Russian Federation has not only fostered enhanced cooperation and communication between China and Russia in the gasindustry, but also spurred the flourishing development of the global gas market. Furthermore, it has facilitated optimal resourceallocation, fostering a mutually beneficial and win-win scenario.
Strategic Cooperation
The first tank of liquid helium was successfully transported by land between Huate Gas and Russian Federation
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.Communities
Huate Gas is committed to promoting listed companies to continuously improve their management and standardise their governancesystem. In order to deeply practice the special action initiative of "Improving Quality, Increasing Efficiency and Focusing on Returns" forcompanies listed on the Science and Technology Innovation Board, to actively give back to investors, to help restore market confidence,to maintain the stability of the capital market, and to promote the high-quality development of the economy, we have speciallyformulated the "Improvement of Quality, Increasing Efficiency and Strong Returns" special action programme of Huate Gas for the yearof 2024."Special Action Programme.
For more information, please refer to the Announcement of Guangdong Huate Gas Co., Ltd. on the Action Programme of "Improving Quality, IncreasingEfficiency and Focusing on Returns".
Focus on market demand and our own technical advantages to formulate development objectivesMulti-species development strategy for speciality gases
Inresponsetothespecialactioninitiativeaimedat"Enhancing Quality, Boostingand Generating Returns,"
Focus on themain business,promotehigh-qualitydevelopment
Improve thematerial industry
chain andenhancecompetitiveness
Leverage thestrengths of R&Dto develop new
quality
productivity
●●Focusing on product development of electronic special gases with R&D of special gases as the core, and continuouslyrealising the localisation of more restricted varieties of electronic special gases.Practising the product development mode of "one batch for mass production, one batch for R&D and one batch for reserve".
Completion of the industry chain●●
Promote the upstream extension of the industrial chain to gradually realise the autonomy of more types of materials.Extend large categories from small categories, and lay out the whole industry chain of fluorocarbon and silicone-basedproducts.
Vigorous promotion of investment in science, technology and innovation
R&D Management●●Launched a number of new products in the fluorocarbon series and achieved certification by well-known semiconductorcustomers.Accumulated more than 55 types of products that have achieved import substitution.
Strengthen the continuous investment and transformation of our independent intellectual property rights●●●
Our self-developed industry chain product, germanium, has passed the certification of the 5nm process production line ofthe largest memory company in Korea and generated orders.Our products have been supplied to 28nm, 14nm, 7nm and 5nm production lines in bulk.Continuously expanding the scope of application of advanced process products.
Developing a layout that capitalises on our strengths
●Launching more applications of advanced process products through the regional advantages of overseas companies and thekey technological advantages
●We formulate New Product Development System and Project R&D Management System to standardise the R&D process.
R&D Incentives●We have formulated the Regulations on Project (Patent) Declaration Rewards to provide bonus incentives to relevant personnel.
Hosting or participating in the formulation of industry standards●Presided over or participated in the formulation of 55 standards, including many national standards for electronic industrialgases, 6 industry standards, 1 international standard and 11 group standards.
Introduction of R&D talents●●●Maintain cooperation with universities and colleges to cultivate talents who are familiar with the core technology of electronicspeciality gases.Attaching importance to the introduction of high-precision technical talents and continuous investment in R&D to maintainthe advanced nature of products.Attracting talents through multiple channels such as talent market, university double-selection meeting, internal staffrecommendation, etc., and providing more flexible salary system and benefits for outstanding talents to improve theattractiveness.
●●●
Enhance product reserves and increase investment in technological transformation and project construction.Keeping up with the future development trend of the downstream field and customers' needs, we conduct R&D on theapplication of advanced process technology around our advantageous products.Based on electronic special gas and extended to other pan-semiconductor materials, with high-end products as the maindirection of attack.
Investor Returns
Focus onshareholderreturns and sharethe fruits ofdevelopment
Strengthen thecornerstones ofgovernance and
enhancing
operations
Enhancedinvestmentmanagement
oriented toinvestor needs
Actively promote
fundraisingprojects
●●
Developed the Guangdong Huate Gas Co., Ltd Dividend Return Plan for Shareholders for the Next Three Years (2022-2024).Implemented dividends every year since listing on 26 December 2019 to date, with cumulative cash dividends ofapproximately CNY 156 million.
Governance Structure●Established a three-chamber governance structure comprising the general meeting of shareholders, the board of directorsand the supervisory board, with clear responsibilities, mutual coordination and checks and balances.
Share Incentive●We implemented the Restricted Share Incentive Scheme in June 2021 and March 2023, with the first grant date being 20March 2023.
Enhance communication with directors and supervisors
●Maintaining close communication with the "key few" such as real controllers, controlling shareholders, shareholders holdingmore than 5% of shares, and directors and supervisors.
Implementation of "ESG" concepts
Risk Control●●The Audit Committee is the highest responsible department for the Company's internal control, and the Audit Departmenthas been established under it to check and supervise the establishment and implementation of the Company's internalcontrol system.We complete tax declaration and payment in a timely and accurate manner in accordance with tax management regulationsto ensure that taxes are paid in full.
Share buyback●Issued a share buyback plan in May 2022 and October 2023 respectively, and the repurchased shares will all be used foremployee share ownership plan or share incentives.
We will continue to disclose the Environmental, Social and Governance (ESG) Report.We will fully integrate ESG concepts into the strategies and daily operations, with the Board of Directors overseeing ESGmatters and being responsible for the effectiveness of management.●●
"Training for "Key Minorities
Enhance compliance training for directors, supervisors and senior management to ensure that directors, supervisors andsenior management understand the latest laws and regulations.Organising and inviting professionals on a regular or irregular basis to disseminate the latest laws and regulations andstrengthen compliance awareness.
●●
Information Disclosure
●Huate Gas standardises the information disclosure process, strengthens the quality of information disclosure, ensures true,accurate, complete and timely disclosure of information, and protects investors' right to know.
Project Construction●Accelerating the construction and transformation of convertible bond investment projects, releasing production capacity andoutput value, enriching product lines and enhancing the company's competitiveness.
Funds Management●Continuously strengthen the management of fund-raising projects, prudently use the fund-raising funds, and effectivelyensure the fund-raising projects to be smoothly promoted according to the plan.
Investor CommunicationWe have set up a securities department and actively organised performance briefing sessions through various channels,platforms and levels.We have set up an "Investor Relations" section on the official website (www.huategas.com) to facilitate investors' access torelevant information.We have actively responded to investors' questions through emails, teleconferences, on-site surveys and SSE e-interaction.●●●
Operation Huate
Operation Huate
"Improve quality, increase efficiencyand return"Action Goal"
"Improve quality, increase efficiencyand return"Action Goal"
Communities
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Amidst the ever-evolving global economy and the relentless advancement of science and technology, Huate Gas standsat the cusp of unparalleled opportunities and daunting challenges. In our future development, Huate Gas remains steadfastin the commitment to the innovation-driven, quality-focused philosophy. It will actively expand our market presence,bolster competitiveness, and strive for sustainable development.In terms of corporate governance, Huate Gas remains committed to enhancing internal management and oversightmechanisms, thus ensuring transparency and compliance throughout the operations. Concurrently, we are dedicated tofulfilling the social responsibilities, fostering stronger communication and cooperation with regulators, investors, and thepublic, and ultimately bolstering our social credibility.Huate Gas is firmly committed to minimizing environmental pollution and resource consumption in the productionprocesses. Through the optimization of production workflows and the enhancement of energy efficiency, we aim tosignificantly reduce carbon emissions and waste generation, thereby achieving green production. Additionally, Huate Gasactively participates in environmental protection and public welfare activities, contributing to the promotion ofenvironmental awareness within the society.Huate Gas remains steadfast in the commitment to technological innovation. It will continue to invest heavily in researchand development, strengthening the capacity for independent innovation. This focus on innovation will lead to furtheradvancements in our technical systems, enhancing the quality and performance of our products, and accelerating thelocalization process of electronic special gases. Additionally, Huate Gas will foster stronger cooperation and exchanges withleading international enterprises, introducing cutting-edge technology and management expertise to bolster the corecompetitiveness. Moreover, we will enhance the exchanges and collaborations with international counterparts, drawinginspiration from global best practices, actively engaging in international market competition, and expanding the presencein overseas markets.With regard to talent acquisition, Huate Gas remains committed to broadening the avenues for attracting, retaining, andnurturing top talent. We are dedicated to safeguarding the rights and welfare of our employees, ensuring a conducive workenvironment that fosters growth and development. By doing so, Huate Gas aims to build a robust talent pool that willpower our sustainable development and propel it towards future success.Huate Gas is steadfast in the pursuit of achieving more stable and sustainable development through comprehensiveenhancements in environmental, social, and corporate governance. With a more open and inclusive mindset, Huate Gasremains committed to exploring and implementing innovative practices, collaborating closely with all stakeholders to jointlyforge a brighter future.
Future Expectations
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.
ESG Data Summary
EconomicPerformance
GovernancePerformance
EnvironmentalPerformance
Net assets attributable to shareholders of a listed companyOperation RevenueNet profit attributable to shareholders of listed companiesOperating cash flowTotal Taxes PaidBasic earnings per shareWeighted average return on equityShareholders' meeting convenedProposal deliberations at shareholders' meetinBoard of DirectorsIndependent directorFemale directorSpecial committee meetingSpecial committees examine billsSupervisory board meetingThe Board of Supervisors considers the proposalInternal control trainingParticipate in internal control trainingRegular report disclosureInterim announcement disclosureRegularly report on performance presentationsInvestor group reception Daye Interactive replyInvestment question response rateDividend payout per 10 shares (tax included)Cash dividend amount (tax included)The amount of cash dividends as a proportion of the total profitdistributionAnti-corruption trainingMajor breach of business integrityInformation security trainingInformation security related incidentsEnvironmental ManagementInvestment in Environmental ProtectionSynchronous operation rate of environmental protection facilitiesConstruction project environmental protection "threesimultaneous" implementation rateGas, pressure vessel explosions and major leakage incidentsAnnual fire accidentHazardous chemicals/hazardous waste spillsOther major environmental violationsEnvironmental risk emergency drillEnvironmental trainingResource ManagementDiesel consumptionLiquefied petroleum gas consumptionOutsourced powerTotal water useManagement of Three Wastes DischargeDischarge of wastewaterAmount of waste water recoveryExhaust emissionGeneral waste generationGeneral waste disposal volumeAmount of hazardous waste producedQuantity of hazardous waste disposalThree wastes discharge and disposal trainingGreenhouse Gas Emission ManagementTotal greenhouse gas emissionsDirect greenhouse gas emissions (Scope 1)Direct greenhouse gas emission intensity (Scope 1)Indirect greenhouse gas emissions (Scope 2)Indirect greenhouse gas emission intensity (Scope 2)
CNY BillionCNY BillionCNY BillionCNY BillionCNY Billion
CNY/share%TimesItemsPersonsPersonsPersonsTimesItemsTimesItemsTimesPerson-timePiecesPiecesTimesTimesTimes%CNYCNY%TimesTimesTimesTimes
CNY Ten thousand%%TimesTimesTimesTimesTimesTimesTonsTonsKwhTonsTonsTonsTonsTonsTonsTonsTonsTimesTonstCO
etCO
e/million CNY RevenuetCO2etCO
e/million CNY Revenue
1.825
1.5
0.171
0.17
0.093
1.43
9.77
59,941,393.50
46.62
94.46
2,762.40
111.58
10,129,154.65118,37646,3339,1591,702.1
82.26
82.26
35.56
27.24
14,794.359,017.69
6.01
5,776.66
3.85
1.542
1.8
0.129
/
0.085
//
/
/
/
//
3.99
47,893,302.82
42.62
/
/
/4,269,144.0966,576////////12,668.88////
IndicatorsTotal assets
UnitsCNY Billion
2023
3.162
2022
2.395
IndustrialPerformance
EmployeePerformance
SocialPerformance
Technological Innovation & Intellectual Property ProtectionInvestment in R&DR&d incentive bonusCumulative number of patents grantedTrademarkResponsible Supply ChainEvaluate suppliersSupplier evaluation of completion rateSupplier integrity agreement signing rateCustomer ServiceNumber of customer complaintsCustomer complaint resolution rateCustomer satisfactionViolation of customer privacy and disclosure of customerinformationEmployee Rights and BenefitsNew employeeTotal number of employeesCoverage rate of labor contractCoverage of five social insurance and one financial fundFemale employeesMinority employeesDisabled employeeNumber of employees on maternity leaveMaternity leave return rateNumber of employees on paternity leavePaternity leave return rateCompensation and BenefitsGrants restricted stock to employeesGranted restricted number of sharesTotal welfare expenditureStatutory welfare expenditureNon-statutory welfare paymentsDemocratic ManagementActive employees are union membersParticipate in employee respect surveyEmployee respect ratingStaff training and DevelopmentInvestment in Employee TrainingParticipate in staff trainingExecutive trainingTotal duration of employee trainingAverage length of training for employeesEmployee training coverageCertified in-house instructorOccupational Health and SafetyTotal safety inputFood poisoning incidentOccurrence of occupational diseaseMajor traffic accidentDeath accident due to work injury liabilityWork safety inspectionSafety hazardSafety hazard rectification completion rateProduction safety emergency drillSafety awareness trainingEmployee physical examination coverageSocial WelfareCharitable donationNumber of volunteersNumber of public welfare project activitiesNumber of employees participating in public welfare volunteersNumber of public welfare recipients
CNY Ten thousandCNY///%%Times%%TimesPersonsPersons%%PersonsPersonsPersonsPersons%Persons%PersonsTen thousand sharesCNY Ten thousandCNY Ten thousandCNY Ten thousand%Persons-CNY Ten thousand
Person-timePerson-timeHour (s)Hour (s)%Persons
CNY Ten thousandTimesTimesTimesTimesTimesItems%TimesTimes%
CNY Ten thousandPersonsTimesPerson-timePersons
5,042.88411,796
97.12
1186
97.39
95.62
83.33
32.92
2,767.631,530.891,236.74
30.02
3.3
8,322
127,923
1,061.24
44.84
3,000+
6,011.84/
//////
1156
97.57
98.82
//////////
1.76
33.6
4,400/173,394
/
574.86
/
66.11
////
IndicatorsUnits20232022
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)
Shanghai Aerospace Automobile Electromechanical Co., Ltd.
Appendix & Disclosures
Index Table of IndicatorsFeedback Form
Dear reader,Greetings! Thank you so much for dedicating your precious time to review this report amidst your busy schedule. To ensurethat you and other stakeholders receive even more valuable ESG insights, we kindly request your assistance in completingthe feedback form and providing us with feedback in the areas mentioned below. Your inputs will greatly assist us in furtherenhancing our ESG management capabilities.
1. Which category of stakeholder do you belong to?
□ Shareholders and Investors □Government and regulatory agency □Employee
□ Customer and partner □Supplier □Community and public □Other
2.Your overall assessment of this year's ESG report?
□Excellent □Good □Fair □Poor □Bad
3. What do you think of this report?
Information disclosure：□Excellent □Good □Fair □Poor □BadLayout：□Excellent □Good □Fair □Poor □BadReadability：□Excellent □Good □Fair □Poor □Bad
4. Which issues are most concerns to you? (You can choose 3 options)
Governance Issues:
□ESG governance □Governance structure □Investor relations management
□Business Ethics □Compliance operation
Social Issues:
□Digital construction □Research and Development Innovation
□Industry development and win-win □Privacy and data security
□Product and service quality □Customer service □Supply chain management □Diversity and equality
□Talent introduction and retention □Employee rights and benefits □Staff training and development
□Occupational health and safety □Intellectual Property Protection □Social Welfare
Environmental Issues:
□Fight climate change □Environmental Management □Energy-saving technology
□Resource utilization □Emission management □Smarter chemistry
5.Is the information you are concerned about reflected in this year's ESG report?
□Yes □No （What other information would you like to see?_________________________________________）
6.What other comments or suggestions do you have regarding our ESG reporting or ESG efforts and
sustainability management?______________________________________________________________________________________________________________
CatalogueCASS-ESG 5.0（GRI Standards）
Basis of reporting
ESG governancephilosophyESG governanceobjectivesStakeholder engagement
Substantive issue
analysisCorporate governance
Law-abiding and
compliantInvestor relation
managementBusiness EthicsInformation Security
Party Building
Environmental
managementEnvironmental risk
management
Resource useEmission managementEcological environmental
protectionR&d innovationProduct liabilityResponsible supply chain
Customer rights
protectionEmployee rights and
benefitsStaff training and
developmentOccupational health and
safetyGreen public welfareCharitable donationStrategic cooperation
Performance table
Reporting IndexFeedback Form
P1.1/P1.2/P1.3/G3.7
P2.1/P2.2
A2P4.1/P4.2/P4.3/P4.4
G3.2G3.2G3.6G3.5G1.1/G1.2G1.3/G1.4
G1.10G1.5/G1.7/G1.8
S4.6
/E1.1/E1.2/E1.3/E1.6
E1.4/E1.5/E1.7E2.1/E2.2/E2.9/E2.10/E2.12/E2.13/E2.14
/E5.1E3.1/E3.2/E3.3/E3.4/E3.5/E3.6/E3.8
E4.1/E4.2V2.1/V2.2/V2.3/V2.4/V2.5S4.1/S4.4S5.1/S5.2S4.5/S4.7/S4.8S1.1/S1.2/S1.3/S1.4/S1.6/S1.7/S1.8/S1.9/
S1.10/S1.11S2.1/S2.2/S2.3/S2.4S3.1/S3.1/S3.3/S3.4/S3.5/S3.6/S3.7/S3
.8/S3.10/S3.11V4.4V3.4V2.8
A1A2A4A5
2-2/2-3/2-4//2-1/2-6/2-9
2-9/2-14
2-222-16/2-293-1/3-2/3-32-9/2-10/2-11/2-12/2-27
2-12/207-1/207-2
2-16/2-27/2-29205-1/205-2/205-3/206-1
418-12-272-12/2-27
201-2302-1/302-2/302-3/302-4/302-5/303-
1/303-3/303-5303-2/303-4/306-1/306-2/306-3/306
-4/306-5304-1/304-2
203-1416-1414-1416-12-7/2-19/201-3/401-1/401-2/405-1/406
-1/407-1/408-1/409-1404-1/404-2/404-3403-1/403-2/403-3/403-4/403-5/403
-6/403-7/403-8/403-9/403-10
203-1/413-1
203-1
////2-16
Message From ChairmanHighlights of Sustainable
Development in 2023
About HuateSustainabledevelopmentgovernance
Orderly governance,
stable enterprises
Green first,sustainabledevelopment
Innovation-driven,industry takes off
Protection of rights
and interests,
solidarityPublic welfare is of thesame mind, advancing
together in harmonyAppendix & Disclosure
Future Expectations
Appendix & Disclosures
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORT (2023)Shanghai Aerospace Automobile Electromechanical Co., Ltd.