2023 ENVIRONMENTAL, SOCIALAND GOVERNANCE REPORT
2023
Goneo GroupCo., Ltd.
*Data source: Shangpu Consulting Group; Over 70% of households in China either currently use or have used Bull products (electrical connections, wallswitches and sockets, LED lighting, digital accessories, etc.); Survey completed in August 2023.
Table of Contents
About the ReportBoard StatementCompany ProfileCompany StrategyCorporate CultureGlorious 2023ESG Empowerment
Index of IndicatorsReaders' Feedback
Consolidating theCornerstone ofRobust Developmentthrough ScientificGovernance
Company GovernanceCompliance ControlBusiness Ethics
Pursuing Excellence,Forging theEssence of QualityCraftsmanship
Vigorous Quality DevelopmentBusiness Management SystemProtection of Customers' Rightsand InterestsImplementation of ResponsibleProcurementResponsible Marketing
Embracing GreenEcology, Illustratingthe Tapestryof SustainableDevelopmentExemplary EnvironmentalManagementEnergy Resource UtilizationRefinement in Pollution Control
Cultivating UnifiedCorporate Drivethrough HarmoniousDevelopmentProtection of Employees'Rights and InterestsOccupational Health andSafetyFocusing on TalentDevelopmentProviding Diverse Well-beingSupporting Public Welfare andCharity
Embarking on a NewJourney, FosteringInnovation forDevelopmentNew PathNew AchievementNew Layout
Responsibility Topic
0102Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Based on the principles of objectivity, standardization, transparency, and comprehensiveness, the2023 Environmental, Social and Governance Report of Goneo Group Co.,Ltd.discloses in details theCompany's practices and performance in environmental, social, corporate governance (ESG) andother areas of responsibilities 2023.
Description
The organization scope of the Report is Goneo Group Co.,Ltd. and its subsidiaries.。
Reporting scope
Sustainable Development Goals (SDGs) Corporate Action Guidelines of the United NationsSustainability Reporting Standards from Global Sustainability Standards Board (GRI Standards)Guidelines for Compiling Corporate Social Responsibility Reports in Chinafrom Chinese Academy ofSocial Sciences (CASS-CSR5.0)Guidelines for Compilation of Social Responsibility Reports from China's National Standards (GB/T36001-2015)Shanghai Stock Exchange Self-Regulatory Supervision Guidelines for Listed Companies No. 1 -Standardized Operations
Compilation basis
The Report is released in electronic form. You can view and download it on the website of the ShanghaiStock Exchange (www.sse.com.cn) and the Company's official website (www.gongniu.cn)Report acquisition
From January 1 to December 31, 2023. To enhance the comparability and completeness of the Report,some content is appropriately retroactive to previous years, and subsequent events related to 2024 areadded.Time frame
For the convenience of expression and reading, "Goneo Group Co.,Ltd." is also referred to as "Goneo","Company", "Enterprise" or "Group" in the Report.
Descriptions on references
The data sources used in the Report include the original data on the Company's actual operation,annual financial data, internal statistical reports, administrative documents and reports, etc. Thefinancial data in this Report is in RMB. In case of any inconsistency with the financial report, the financialreport shall prevail.
Descriptions on data
About the Report
0304Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Message from the Board of Directors
In 2023, we embraced change and innovationamidst a complex economic landscape both athome and abroad. Thanks to our unwaveringdedication, we achieved commendable results,with our operating revenue and profit soaringto record highs as we attained robust growthacross economic cycles. During the year, werecorded operating revenue of RMB15.695billion, up 11.46% year on year; and a net profitattributable to our shareholders of RMB3.87billion, representing an increase of 21.37% fromthe year earlier. We further fortified our strengthsin the electric connection business. Despiteprofound adjustments in the real estate sector,we still managed to secure rapid growth in thesmart electrical lighting business. And, ridingtailwinds, we achieved leapfrog development inthe new energy business. As a result, the visibilityand reputation of our brand—Goneo—have beenfurther enhanced.In 2023, we were committed to innovation-driven development. Based on customer needs,
we unveiled a range of highly recognised newproducts, such as the Master Track Socket, theButterfly Wing Ultra-thin Switch, the BladelessFan Lamp, the "Mini Power Cabin" Socket, theSafe Charging Point, and the Smart No-main-lamp Lighting. These inventions have elevatedGoneo to new heights in terms of smart, high-end and trendy products. Throughout the year,the Company won more than ten Chinese andinternational design awards, including iF, RedDot, IDEA, and Gmark.In 2023, we vigorously promoted channel reformas well, converting existing store-in-stores intoflagship stores carrying comprehensive Goneoproducts. This has elevated both the stature ofour outlets and the image of Goneo as a providerof comprehensive products. Furthermore, wealso introduced a new retail model to achievecollaborative growth between our online andoffline channels.In 2023, we drove comprehensive brand
upgrades. We joined forces with globally
acclaimed light designer Roger Narboni tolaunch "Murora", an industry-pioneering no-main-lamp lighting brand that has garneredwidespread interest. Furthermore, we secured
the endorsement of international supermodelLiu Wen, who subsequently agreed to becomethe face of Goneo. We also collaborated withesteemed supercar designer Fabrizio Giugiaroin crafting our Master Track Socket. Througha range of branding and digital marketingactivities, such as celebrity endorsements andKOL promotions, we have reinforced Goneo'simage as a leading trendsetter in safe electricalproducts.In 2023, we pursued excellence with determination,arranging our businesses, markets, and corecapabilities from a forward-looking perspective.We also established our International BusinessDepartment, marking our comprehensive entryinto the global market. Moreover, we founded ourProcess Optimisation and Digitalisation Centreand joined forces with Huawei Cloud to officiallyrelease Goneo's blueprint for digitalisation.Additionally, construction officially began on oursmart lighting industrial base in the city of Huizhouin Guangdong Province. These arrangements havelaid a solid foundation for the Company's long-termsustainable development.In 2023, we also deepened our environmental,social, and governance (ESG) practices, vigorously
promoting the utilisation of green energy andinnovation in low-carbon products. We alsoadvanced modern corporate governance in linewith international standards. Meanwhile, weproactively fulfilled our social responsibilities,donating a cumulative total of RMB193 million in theyear to various causes such as cultural education,healthcare, disaster relief, and poverty alleviation.Looking ahead, we will remain committed to ourthree major strategies: a smart ecosystem, newenergy, and internationalisation. These efforts areguided by our principles of "taking the long waywith professionalism and devotion, and striving forNo. 1". We will also forge ahead with determinationtowards our goal of RMB100 billion operatingrevenue, as well as our vision of "becoming a leaderin the international civil electrical industry"The Board of Directors of Goneo Group Co., Ltd.
April 2024
0506Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Company Profile
VisionBecome a leader in the international civilelectrical industry
Mission
Provide customers with a safe andcomfortable power use experience
Core Values
Loyalty, integrity, professionalism anddevotion
Corporate ConceptBeing the best and taking the long waywith professionalism and devotion
Intelligent EcosystemNew Energy Power UtilizationInternationalization
Leader in the International Civil Electrical Industry
Technology Leader Client Oriented Digital Intelligence Driven Global Breakthrough
Leading the Way in Electric Power Utilization
Hundred Billion Value Strategy
Digitization
Strategy
The Company, driven by the vision of "becoming a leader in the international civil electrical industry", ispoised to seize the opportunities of our era. It will expedite the progress of intelligent ecosystems, harnessnew energy applications, and propel international business development. The goal is to cultivate strategicprowess propelled by "technology leading, customer centricity, data intelligence, and global breakthrough".Through this, the Company will consistently fortify its competitive edge across product excellence,marketing finesse, and operational capabilities, thus ensuring the delivery of superior and diversifiedelectrical products and services to consumers.
CultureFounded in 1995, Goneo concentrates on the research, development, manufacturing, and marketing of civilelectrical products. Over the past two decades, with adherence to the corporate vision of "becoming a leader inthe international civil electrical industry", the Company shoulders the corporate mission of "providing customerswith a safe and comfortable power use experience", and practices the development philosophy of "taking thelong way with professionalism and devotion". The Company has always been driven by consumer needs witha focus on product quality. Starting from the subdivision of "sockets", it has continuously promoted functional,technological, and design innovation and developed a large number of new products which are popular amongconsumers. With an innovative spirit, the Company has utilized its comprehensive leading advantages in productR&D, marketing, supply chain, and branding to form three major business sectors consisting of electricalconnections, smart lighting solutions, and new energy through years of development, thereby forming a long-term sustainable industrial layout in the field of civil electrical and lighting.
Goneo is committed to becoming a leader in the international civil electrical industry. With both intensive
domestic efforts and global breakthrough, the Company focuses on civil electrical engineering with household
scenarios as the core; by shouldering the corporate mission of "providing customers with a safe and comfortable
power use experience", the Company uses intelligent technology to create a safe power use environment and a
comfortable power use experience for customers. The Company adheres to the core values of "loyalty, integrity,
professionalism and devotion". With honesty and trustworthiness, it aims to achieve harmonious and win-win
results and cultivate its businesses with a revolutionary and innovative spirit.
0708Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Double Triumph of Goneo at China's Digital Service AnnualBillboard
Launch of 4.0 Flagship Store Strategy
Emerging from over 2,000 service brand samplesnationwide, at the (8th) Annual Conference on theDevelopment of China's Digital Service Industry 2023 onDecember 7, Goneo was distinguished with two majorawards - the Top 100 China's Service Brand of the Yearand the Annual Customer Word-of-Mouth Award -for its commitment to service excellence and customersatisfaction in user experience.
On December 25, Goneounveiled its Flagship StoreStrategy 2024 in Cixi,announcing plans for the
4.0 flagship store design
and new retail strategy,empowering consumerswith a convenient, multi-category, one-stopshopping experience andproviding comprehensivesupport to distributionpartners.
December
Glorious 2023
The Goneo Charity Trust landed at Wuhan University Project
Goneo attained "Golden Bull" Award once again
Goneo reclaimed its position in China's Top 200 MostValuable Brands
The Digitization Transformation Blueprint was unveiled by Goneo
Grand Unveiling Ceremony of Muguang's Signature HeadlessLamps Brand Conference and First Flagship Store in China
The Company was recognized as one of the Top 100 MostValuable Main Board Listed Companies
Groundbreaking Ceremony was implemented for SmartLighting R&D Manufacturing Project
On March 13, the opening ceremony of the project fundedby Goneo Charity Trust took place at Wuhan University.The trust, with a total fund of RMB 200 million, is set tobolster Wuhan University's efforts in introducing high-
On October 25, the List of GoldenBull Securities Companies Award2023 was released by the ChinaSecurities Journal, recognizingGoneo as the recipient of theMost Valuable Investment Priceof the 25th Golden Bull Award forListed Companies.
On June 15, at the 20th WorldBrand Summit, the list of "China'sTop 500 Most Valuable Brandsof 2023" was revealed, propellingGoneo to a new pinnaclewith a brand value of RMB24,567,000,000, securing the351st position and reaching newheights in brand value.
On August 9, the kickoff meetingfor the digitization transformationblueprint project between Goneoand Huawei Cloud marked thecomprehensive initiation of theGroup's digital transformation.
In March 2024, the grandunveiling ceremony ofMuguang's Signature HeadlessLamp Brand Conference andFirst Flagship Store in Chinatook place at the Global BrandLighting Center in GuzhenTown, Zhongshan City, knownas the "Lamp City".
Goneo's track socket received the China Patent Award ofExcellenceIn July 2023, Goneo'strack socket, throughtechnological innovation,received the China PatentAward of Excellencefrom the China NationalIntellectual PropertyAdministration for breakingthe traditional plug-and-socket electrical connectionutilized in track systems.New Energy After-sales Service received "T?V RheinlandCertification" from GermanyOn September 26, theafter-sales service ofGoneo's new energy ACcharging pile installationwas awarded theInstallation Service ProviderCertificate for ElectricVehicle Charging Facilities
by T?V Rheinland, theinternationally acclaimedcertification body.
Bladeless fan light won the Red Dot Design Award in Germany
In April 2023, theinnovative centrifugalbladeless fan light stoodout among numerousproduct designs,clinching the prestigiousRed Dot Design Award2023 and later, in August,securing a position in theesteemed IDEA Awardsin the United States.
On November 28, Goneo was honored as one of the top100 most valuable main board listed companies duringthe 17th China's Listed Company Value Selectionhosted by the Securities Times.
On the morning of December 28, Goneo held thegroundbreaking ceremony for its smart lighting R&Dmanufacturing project in Zhongkai High-tech Zone, Huizhou.
March
level talents from both domesticand international domains,enhancing its teaching andresearch capabilities, as wellas co-establishing the Institutefor Goneo New Energy, WuhanUniversity. It's worth noting
July
August
April
June
October
November
that the Charity Trust, the first of its kind in the Ningbo areato be registered at the district and county level, has beenrecognized as one of the Top Ten Charitable Events of"2023 · Touching Ningbo".
September
0910Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
ESG Empowerment
In a quest to refine the Company'sESG governance framework,elevate its ESG managementstandards, and propel sustainableand top-tier development, theestablishment of the Environmental,Social, and Governance (ESG)Committee has been orchestrated incompliance with theCompany Lawof the People's Republic of China,the Code of Corporate Governancefor Listed Companies in China, theArticles of Association of GoneoGroup Co.,Ltd., and pertinentregulations.With the Chairman at the helm, the ESG Committee has been poised to engage in timely discourse on ESGmatters with the Board of Directors. Operating at the executive level, the Executive Office shoulders theresponsibility for executing the practical facets of the ESG Committee's duties, working in close collaborationwith relevant departments to facilitate and support ESG-related initiatives across the organization.
ESG Governance Structure
Unveiling of Goneo's ESG Committee
Refined Organizational Structure Chart of the ESG Committee
Carbon Emission
Social Responsibility Management
of Supply Chain
Corporate Governance
Water Resources Use
Information Security and Privacy
Protection
Shareholders' Equity
Climate Change
Health and Safety of EmployeesEmployee Training and Development
Business Ethics and Morality
Green Operation
Scientific and Technological
Innovation
Product Quality and Safety
Resource Conservation/Recycling
Remuneration and Welfare
Compliance with Laws and
Regulations
Green Products
Customer Experience
IPR Management
Waste Management
Diversity and Equal Opportunity
Governance of Board of Directors
E-waste
Accessibility of Products and
Services
Propelling of Industrial Development
Anti-corruption
ESG Committee
E (Environmental)
S (Social)G (Governance)
ESG Executive Office
Core Responsibilities at Each Hierarchical Level of the ESG Governance Structure
Hierarchical Levels ofthe ESG GovernanceStructure
Main Duties and Responsibilities
These departments are responsible for internalizing and enacting resolutions of theESG Committee and undertaking ESG initiatives to achieve or assist in achieving thedepartment's ESG performance; routinely reporting the department's ESG endeavors tothe ESG Committee while embracing the ESG Committee's oversight and guidance.Various FunctionalDepartments of the
Company
Charged with the day-to-day affairs of the committee and the execution of its decisions,its duties include but are not limited to, preparatory work for committee resolutions,routine work coordination, meeting orchestration, and the realization of committee-related determinations - all falling within the remit of the Executive Office for the hands-on execution of responsibilities of the ESG Committee.ESG Executive Level
Tasked with overseeing the effective implementation of environmental protection,social responsibility, and standardized governance within the Company, it steers theCompany's environmental, social and governance progression. This includes, butis not limited to, researching and formulating strategic management plans of ESG,management frameworks, systems, and detailed implementation guidelines; identifyingand supervising ESG-related risks and opportunities that profoundly impact theCompany's operations, guiding the Company in taking fitting measures to navigate ESGrisks and opportunities.ESG Committee
1112Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In response to the SustainableDevelopment Goals (SDGs) of theUnited NationsCarrying out social welfare and charity donations
Carrying out social welfare and charity donations
Providing all kinds of professional training
Ensuring equal employment rights and eliminating gender discrimination
Improving the occupational health management systemPerfecting the safety production management system
Continuing efforts in the new energy fieldDeveloping new energy productsImproving the salary assessment systemDefining career development pathsCaring for both physical and mental health of employeesTechnological breakthroughs to enhance business capabilitiesCompleting the science and technology innovation systemFacilitating digital transformation to drive corporate change
Engaging in volunteer servicesValuing community communication and development
Supporting rural revitalization efforts
Optimizing the environmental management system
Enhancing energy resource management levelsPerfecting comprehensive quality management systems
Perfecting the supplier management systemPerfecting the contractor management system
Spurring the healthy development of the industry
Strengthening legal and compliant operation
Consolidating clean governanceHeightening risk identification and management
Reinforcing efforts in sewage discharge managementAttaching importance to the protection of underwater biodiversity
Devoting greater effort to the management of the three wastes
Focusing on biodiversity protection
Improving energy management levelsAdhering to green, low-carbon development strategies
Developing low-carbon productsGreenhouse gas inventory and management
Building urban "new infrastructure" - new energy charging piles
1314Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Main Stakeholders
Issues Concerned
Means and Channelsof Communication
GovernmentDepartments and
Regulators
?Energy Management
?Water Resource Management?Waste and Hazardous Substance Management?Compliance with Laws and Regulations
?Protection of Intellectual Property RightsPerfection of Corporate Governance?Adherence to Business Ethics
?Inspections by Government and Regulators?Compliance Inspections and Checks?Regular Meetings with Local GovernmentRepresentatives
?Forums, Conferences, and Seminars?Routine Policy Implementation
Shareholders and
Investors
?Tackling Climate Change
?Clean Technology Opportunities
?Product Quality and Safety?Transparent Disclosures
?Risk Management
?Protection of Rights and Interests ofInvestors
?ESG Strategies
?General Meeting of Shareholders
?Investor Communication Meetings
?Online Performance Presentations?Shanghai Stock Exchange Interactive Q&A?Investor Hotline?Company Survey?Telephone Consultations?Emails?Regular Reporting and Official WebsiteDisclosure
Customers
?Green Products?Customer Relationships?Product Quality and Safety?Accessibility of Products and Services
?Customer Satisfaction Surveys?Email and Daily Phone Communications?Customer Mailbox
?Handling Customer Complaints?Customer Visits
Partners
?Industry Communication and Development?Supply Chain Management
?Selection and Evaluation?Procurement Processes?Performance Appraisal?Regular Communication with BusinessPartners (e.g., email, meetings)
Employees
?Green Office?Occupational Health and Safety?Occupational Training and Development?Protection of Employees' Rights and Interests?Employee Communication and DemocraticManagement?Employee Care?Diversity and Equal Opportunity
?Training and Onboarding?Emails and Suggestion Box?Regular Meetings?Employee Performance Assessment?Employee Activities
Society and thePublic
?Developing the Circular Economy?Biodiversity Protection?Responding to National Strategies?Practicing Social Responsibilities
?Emails?Telephone Call?Company Announcements?Social Networking Platforms?Company Website?Social Media?Charitable Donations and Volunteering?Community Activities
Stakeholder CommunicationMateriality Assessment
Goneo actively communicates with all kinds of stakeholders, collecting their requirements and expectationsthrough multiple channels to achieve mutual development with them.With reference to the Global Reporting Initiative's Sustainability Reporting Standards (GRI Standards), theCompany further screens ESG-related issues based on the focuses of stakeholders. According to the above-mentioned issue identification procedures, the Company and professional personnel jointly determine ESGissues with substantive materiality as the key content of company management and this report.
⑤Developing the CircularEconomy
①
Biodiversity Protection②Tackling Climate Change
⑧Protection of Rights and
Interests of Investors
④Clean Technology
Opportunities
⑥Employee Care
⑦Transparent Disclosures
③Diversity and Equal
Opportunity
Goneo's Analysis Matrix of Substantive Issues in 2023
⑩ Perfection of Corporate
Governance
⑨Customer Relationships
Responding to NationalStrategies
Energy Management
Supply Chain Management
Occupational Training andDevelopment
ESG Strategies
Accessibility of Products andServices
Protection of IntellectualProperty Rights
Risk Management
Adherence to BusinessEthics
Compliance with Laws andRegulations
Waste and HazardousSubstance Management
Green Products
Product Quality and Safety
Occupational Health andSafety
Protection of Employees'Rights and Interests
Practicing SocialResponsibilities
Employee Communication andDemocratic Management
Industry Communicationand Development
Water Resource Management
②
Importance to Internal Stakeholders
Importance to External Stakeholders
①
③④
⑤
⑥⑦
⑧
⑨⑩
121314
1920
Topic: Embarking on a New Journey,Fostering Innovation for DevelopmentNew AchievementIn a bid to establish leading-edge R&D and innovation management capabilities, the Company meticulouslyscrutinized the pivotal core technologies underpinning each product line, gauged the advanced nature oftheir key technical indices, and consequently formulated pioneering technological goals. Its objective isto ensure that within three years, over 90% of the critical technologies become advanced within maturebusiness segments, while more than 80% advance within newer business domains. Annually, theCompany devises a comprehensive three-year technical blueprint, delineating foresight technologies, keyinnovations, and product-specific technologies. Furthermore, it has crafted a roadmap for technologicalevolution and a strategic path for attaining pre-eminent technology objectives. As of the end of the reportingperiod, the Company boasted a robust cohort of 1,581 R&D personnel. In 2023, the Company allocated overRMB 16 million towards incentivizing R&D projects and disbursed a special patent bonus worth RMB 1.37million, effectively kindling the flames of inventive excellence.
Butterfly Winged I Ultra-thin Switch
In its pursuit of delivering the paramount visual and safety experience inelectrical usage, Goneo has ingeniously developed the Butterfly WingedUltra-thin Switch. The Butterfly Winged I Ultra-thin Switch, graced withan original design by an Italian master, showcases a sleek style with anultra-thin panel of 6.4mm, embodying a light and nimble demeanor. Itsports a flush child protection door to avert accidental electric shock, aunique ultra-compact angle (2
o) three-level transmission structure foragile and refined operation, and a robust metal fixing bracket ensuringstability and durability.
As of the end of the reporting period, the "Butterfly Winged Ultra-thin Switch" had earned the DIA Excellent WorkAward, IF Award, and AWARD 2023 Award, accruing a total of 9 invention patents and 5 utility model patents.Moreover, the provincial standardization pilot project, represented by the Butterfly Winged Ultra-thin Switch -Discrete Products (wall switches and sockets) Lean Intelligent Manufacturing Project - attained an outstandingrating during the acceptance review.
CaseButterfly Winged Ultra-thin Switch Project
BULL Track Socket
In a quest to elevate the user's electrical experience, Goneohas unveiled the BULL Track Socket as the cornerstone of itsintelligent electrical connectivity solution, integrating an array ofproprietary patented technologies. Crafted by an internationallyacclaimed supercar designer, the BULL Track Socket boasts abrand-new exterior exuding a minimalist linear aesthetic.Featuring an intelligent digital display and a savvy protection chip, it delivers overload protection and automaticpower cutoff. With the addition of APP and button controls, it empowers effortless power management. Boasting arobust load-bearing capacity of 8,000W, it facilitates the simultaneous operation of multiple high-power devices,providing users with a more convenient and intelligent electrical experience. As of the end of the reporting period,the "BULL Track Socket" has clinched 6 prestigious international and domestic accolades, including the IF DesignAward, the German Design Award, and the 24th China Patent Award of Excellence. It has secured 2 inventionpatents, 10 utility model patents, and 14 design patents. Furthermore, it was acknowledged under the inauguralset of "Zhejiang Standards".
CaseBULL Track Socket Became Another Masterpiece
Aligned with national standards development strategies, Goneo has actively showcased its leadershiprole in the industry, fervently engaging in standardization initiatives within the industry. While propellingtechnological innovation within the Company, it continuously champions the industry's journey towardsmethodical and high-quality development. Furthermore, through its internal development and contributions,it has not only advanced the industry but also actively collaborated with all kinds of industry associations andresearch institutions, extensively participating in the development of new technologies and projects, yieldingpositive economic and social outcomes.
Standard System Construction
Standard CodeStandard NameStandard LevelGB/T 22769-2023Electric bathroom heater (Yuba)National Level
GB/T 30845.1-2023
Plugs, socket outlets, and ship couplers for high-voltageshore connection systems (HVSC-Systems) - Part 1:
General requirements
National Level
GB/T 7000.1-2023Luminaires - Part 1: General requirements and testsNational Level
GB/T 7000.201-2023
Luminaires - Part 2-1: Particular requirements - Fixed
general-purpose luminaires
National Level
Key Performance
National standardstotalParticipate in writing group standardsDuring the reporting period, the company actively participated in the formulation of relevant industry standards
31013
List of Some Standards Participated in by Goneo
1516Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTTopic: Embarking on a New Journey, Fostering Innovation for Development
As a China National Intellectual Property Model Enterprise and a vanguard for safeguarding trade secretsin Zhejiang Province, the Company holds the protection of intellectual property in the highest regard. TheCompany follows the principle of protecting its intellectual property rights without infringing on the rights ofothers. To this end, we have meticulously crafted and promulgated the Trademark Management System,the Copyright Management System, the Patent Management System, and the Trade Secret ManagementSystem. This concerted effort in establishing application procedures for trademark and copyright protectionhas allowed us to conduct meticulous risk assessments and tailored registrations, aligning precisely with ourbusiness imperatives. Concurrently, armed with administrative complaints and civil litigation, we ardentlyconfronted third-party encroachments on intellectual property. In 2023, the Company spearheaded sevenpatent defense actions relating to an array of products including cube sockets, rotary multi-plug sockets,wall switches, storage box sockets, and charging piles, achieving an impeccable 100% success rate,resoundingly fortifying our market presence and compressively shielding our intellectual property rights.
Protection of Intellectual Property Rights
Goneo was honored with the prestigious title of China National Intellectual Property Model Enterprise
Topic: Embarking on a New Journey,Fostering Innovation for Development
During the reporting period, the Company orchestrated a total of seven training patents, coveringdiverse themes such as patent mining, the art of drafting technical disclosure documents, andstrategies for mitigating patent infringement risks. Importantly, these sessions engaged researchand development personnel across all product lines, significantly elevating the collective awarenessof patents within the entire organization.
CaseOrchestrating Intellectually Stimulating Training Sessions
Snapshot from Goneo's Captivating IP Training Session
Key Performance
which included
comprising
included inventions
utility model patents
utility model patents
utility model patents
design patents
design patents
design patents
Goneo secured an impressivetotal of
it filed
As of the end of the reporting periodthe company has accumulated validauthorized patents
During the reporting period
370 newly authorized patents 50 inventions540new patent applications
2686
inventions
1448
1718Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTTopic: Embarking on a New Journey, Fostering Innovation for Development
New Layout
Goneo has been embarking fervently on the path to globalize its brand, exploring the intricate terrainsof developed markets in Europe and America, alongside burgeoning opportunities in Southeast Asia.This strategic endeavor underscores a localized approach to research and development, entwined withmarketing efforts aimed at crafting a distinct international brand through pioneering product innovation andchannel development.In the European market, the Company has astutely harnessed the burgeoning phase of new energydevelopment, swiftly immersing into this domain with a keen focus on new energy charging and householdenergy storage businesses. When it comes to products, Goneo has honed its ability to pinpoint marketdemands, rapidly engineering an array of self-conceived and self-made energy storage products. Thishas been achieved through seamless integration into the supply chain, resulting in an unparalleled costadvantage. In terms of channels, Goneo has solidified its foundation through comprehensive early-stagemarket validation, laying the cornerstone with an installer channel while constructing an exceptional servicesystem. This has culminated in differentiated competition within the burgeoning European new energymarket. In the field of charging piles, overseas market research has been launched, enabling the earlycompletion of product planning and supply chain deployment.In emerging markets, the Company has been embracing the new phase of electrification in countries likeSoutheast Asia, utilizing core products such as electrical connections and lighting solutions to overcomethe developmental constraints of Chinese brands in emerging markets. Simultaneously, the Companyhas taken the lead in recruiting distributors in emerging markets such as Southeast Asia, the Middle East,South America, and Russia - promptly expanding its operations overseas. Implementing a multi-categorydevelopment strategy, the Company upholds the notion of product localization, crafting specialized productsthat resonate with each market. This includes finalizing overseas product planning and deployment,innovating localized market development methods, and upgrading domestic methodologies to suit overseasmarkets. The Company advocates for localized business operations by establishing overseas subsidiariesin various countries, thus effectively propelling the establishment of overseas business operations.
On September 18, the International BusinessDivision of Goneo was officially establishedto accelerate its internationalization effortsand comprehensively venture into overseasmarkets. This division aims to integrateplanning,research and development, supply chainmanagement, and overseas marketingfunctions. Subsequently, the Companyestablished an overseas entity in Dusseldorf,Germany, on September 27. The InternationalBusiness Division will build on existingbusiness foundations, fulfilling the layout anddevelopment of overseas markets, with aresolute commitment to establishing "GONEO"as a globally recognized brand.
CaseOverseas Market Expansion to Drive Globalization
Germany
Topic: Embarking on a New Journey,Fostering Innovation for Development
New PathSince 2021, Goneo has ventured into the realm of charging piles, spearheading its new energy initiativefocused on charging guns, charging piles, and energy storage solutions for electric vehicles. This venturehas been integral to the Company's strategic growth, marked by amplified research and developmentinvestments, the infusion of top-tier talents, and a concentrated dual impetus on "talents, vehicles, andpiles", as well as "technology" fused with "market demand". This approach has not only sparked an ongoingstream of groundbreaking product developments but has also fostered a significant surge in overseaslocalization and domestic consumers/operators. In just two years, Goneo has not only diversified its productline extensively but has also sculpted an all-encompassing product ecosystem catering to varied powercapacities and diverse charging scenarios. Consequently, the Company has garnered widespread acclaimfrom its partners, distributors, and users alike. In 2023, the tally of newly developed SKUs exceeded 90,marking a remarkable 30% surge from the figures recorded in 2022. The sales of new products soaredbeyond RMB 100 million, surpassing the new product sales target by an impressive 109%.
During the Second Shanghai International Charging Piles and Battery Swap Station Exhibition (CPSEExhibition) in June 2023, Goneo showcased several flagship products including integrated DCcharging piles, AC charging piles, as well as charging and discharging guns, captivating significantattention at the event.As a recognized and professional selection platform for charging and swapping brands in China,the results of the selection of the top ten brands in China's charging and swapping industry wereunveiled during the exhibition. Goneo's charging piles clinched two renowned awards, lauding itsexceptional performance with a remarkable "over threefold growth within a year", alongside theaccolade recognizing the quality assurance resulting from its focus on safe electrical technologyand streamlined production. These achievements crowned Goneo as the "CHINA CHARGING &BATTERY SWAPPING INDUSTRY TOP 10 INFLUENCE BRAND 2023" and bestowed upon it the "CHINACHARGING & BATTERY SWAPPING INDUSTRY TOP 10 EXCELLENT QUALITY AWARD 2023".
Case
Triumph in Two Prestigious Awards! The Limelight Shines on Goneo's ChargingPiles at the International Charging Piles and Battery Swap Station Exhibition
Goneo was invited to partake in the International Charging Piles and Battery Swap Station Exhibition andsecured two distinguished industry awards
Case
1920Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORTTopic: Embarking on a New Journey, Fostering Innovation for Development
SCIENTIFICGOVERNANCE
Consolidating the Cornerstoneof Robust Developmentthrough Scienti?c Governance
Through the construction of a governance structure with clear rights and responsibilitiesand balanced coordination, Goneo continuously improves its governance system,strengthens internal control and risk management systems,and enhances complianceawareness. This ensures the legality and compliance of its operations, promotes thecontinuous optimization of its governance structure, and supports the scientific andhigh-quality development of the Company.
SDGs
Our key issuesCompany GovernanceCompliance ControlBusiness Ethics
2324Consolidating the Cornerstone of Robust Development through Scientific GovernanceGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Company GovernanceAt Goneo, we embrace a governance philosophy that champions standardization, efficiency, and transparency. Ourgovernance structure revolves around the General Meeting of Shareholders, the Board of Directors, the Board ofSupervisors, and the Senior Management, creating a mechanism with clear rights and responsibilities, fostering mutualcoordination, and ensuring checks and balances. The Company places paramount importance on safeguarding theinterests of all shareholders, especially small- and medium-sized investors. Through diverse communication channels,we strengthened information exchange with investors, guaranteeing their right to be well informed. Internally, throughtraining programs, we cultivated compliance awareness and professional skills while enhancing the quality of informationdisclosure. This approach serves to protect the rights and interests of investors and drive continuous improvement andoptimization of our governance structure.
Adhering rigorously to the laws and regulations such as the Company Law of the People's Republic of China, theSecurities Law of the People's Republic of China, theCode of Corporate Governance for Listed Companies in China,and theRules Governing the Listing of Stocks on the Shanghai Stock Exchange, Goneo has established a governanceframework encompassing the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors, andthe Senior Management. This framework incorporates mechanisms for coordination and checks and balances amongthe power, decision-making and supervisory departments, and the Management, ensuring clear delineation of authority,close cooperation, and efficient operation.We have devised a "1+3+N" governance system matrix, consisting of the "Articles of Association + Rules of Proceduresfor the Three Boards + numerous special governance systems". During the reporting period, in line with new regulatoryrevisions from the China Securities Regulatory Commission, and Shanghai Stock Exchange, and operationalconsiderations, we continuously updated and improved the Independent Director Working System, revised the rulesof procedures for the Three Boards, and multiple systems such as theManagement System of Information DisclosureAffairsand theInternal Reporting System for Significant Information. This move fully guarantees the standardizedoperation of the Three Boards and the Management and key internal control departments.
The General Meeting of Shareholders is the highest authority of the Company. The responsibilities of the GeneralMeeting of Shareholders are clearly defined, with effective implementation of clear rules of procedure. The convening,opening, and proposal procedures of the General Meeting of Shareholders comply with relevant laws and regulations, aswell as internal policies of the Company.
Its responsibilities are clear, and all supervisors conscientiously and responsibly fulfill their duties. The convening andopening procedures of the Board of Supervisors comply with relevant laws, regulations, and institutional provisions.Throughout their tenure, all members of the Board of Supervisors diligently fulfill their duties, actively participate in themeetings of the Board of Supervisors, and conscientiously carry out their responsibilities. With a sense of responsibilityto the shareholders, they oversee the legality and compliance of the Company's finances, and the performance of theCompany's directors and Senior Management, thereby safeguarding the legitimate rights and interests of the Companyand all shareholders.
The Board of Directors is the highest decision-making body of the Company. Its responsibilities are clear, and all directorsconscientiously and responsibly fulfill their duties. The convening and opening procedures of the Board of Directorscomply with relevant laws, regulations, and institutional provisions.In accordance with the Articles of Association, the list of non-independent directors is proposed by shareholdersseverally or jointly holding more than 3% of the total voting shares issued by the Company, and the list of independentdirector candidates is proposed by the Board of Directors, the Board of Supervisors, or shareholders severally or jointlyholding more than 1% of the issued shares of the Company. The candidate list of directors undergoes qualificationreview by the Board of Directors (including the Nomination Committee). After the Board of Directors confirms the directorcandidates, they are submitted to the General Meeting of Shareholders for election through proposals.Throughout their tenure, all directors have demonstrated diligence and responsibility, attending board meetings with aserious and conscientious attitude, being conversant with relevant laws and regulations, and fully exercising their rights,duties, and responsibilities as directors. Therefore, they have safeguarded the legitimate rights and interests of theCompany and all shareholders.
Improvement of the Governance System
The General Meeting of Shareholders
Supervisors and the Board of Supervisors
Directors and the Board of Directors
The Board of Directors has established an Audit and Risk Committee, and set up strategy, nomination, remuneration andappraisal, and other special committees. These special committees are responsible to the Board of Directors and performtheir duties under the authorization of the Articles of Association and the Board of Directors. Proposals shall be submittedto the Board of Directors for deliberation and resolution. Members of the special committees are all composed ofdirectors, among whom the Audit and Risk Committee, the Nomination Committee, and the Remuneration and AppraisalCommittee have independent directors accounting for the majority and serving as conveners. The convener of the Auditand Risk Committee is a professional accountant. The Board of Directors is responsible for formulating work proceduresfor these special committees and standardizing their operations.
Number of members of the Board of Directors
Disclosure by gender
Male director7Female director2Disclosure by type
Independent director3Non-independent director6
The Company fervently prioritizes the welfare of all shareholders, with a specific focus on safeguarding the rights of small-and medium-sized investors. To bolster communication channels between Goneo and its investors, ensuring investors'comprehension and alignment with the ethos of the Company, Goneo has strategically devised the Investor RelationsManagement System, intending to protect the investors' legitimate rights and interests, facilitate the establishment of along-term, stable, and positive relationship between the Company and its investors, and further improve the corporategovernance structure.
Investor Relations
Number of the meetings
of the Audit and Risk
Committee
Number of the meetings ofthe Nomination Committee
Number of the meetingsof the Remuneration andAppraisal Committee
Number of the meetingsof the General Meeting of
Shareholders held
Number of the meetings ofthe Board of Directors held
Number of the meetings of theBoard of Supervisors held
2526Consolidating the Cornerstone of Robust Development through Scientific GovernanceGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
The Company prides itself on a consistent track record of delivering rewarding returns to shareholders, cementing alasting bond between the Company and its investors. Since going public, the Company has consistently upheld highdividend payouts alongside steady performance growth. Notably, in the profit distribution plan for 2022, the Companyraised cash dividends to RMB 33 per 10 shares. Considering the combined amount spent on share buybacks duringthat year, the cash dividends accounted for 68.96% of the net profits attributable to the shareholders of the listedcompany. Moreover, the Company extended a bonus of 4.8 shares from the capital reserve for every 10 shares held,while balancing the immediate and long-term interests of shareholders and taking into full consideration its currentoperational performance and future strategic development needs. It actively rewards investors, sharing in theCompany's business achievements and development dividends.
Generous Shareholder Returns
For international investors, the Company consistently publishes its annual and ESG reports in English, encompassingvarious dimensions such as production and operations, product innovation, corporate governance, sustainabledevelopment, employee rights and interests, and social welfare. These reports candidly and comprehensivelydivulge the Company's practices and performances pertaining to environmental responsibility, social contribution,and corporate governance.
Engagement with Overseas Investors
Goneo steadfastly upholds rigorous standards in compliant information disclosure, unwaveringly abiding by theCompanyLaw of the People's Republic of China, theSecurities Law of the People's Republic of China, and theRules Governing theListing of Stocks on the Shanghai Stock Exchange. It has meticulously formulated and consistently enhanced systems suchas theManagement System of Information Disclosure Affairsand theInternal Reporting System for Significant Information.Embracing the principles of trueness, accuracy, completeness, clarity, and accessibility - void of falsifications, misleadingassertions, or significant omissions - the Company ensures that investors gain a comprehensive and multi-facetedunderstanding of its operational status and future trajectory. Concurrently, the Company has prepared theAccountabilitySystem for Major Mistakes of Information Disclosure in the Annual Report, guided by principles of fact-seeking, objectivity,error accountability, proportional fault and responsibility, and balance of rights and obligations, thereby effectivelysafeguarding the rights and interests of investors. The Company remains dedicated to elevating the quality of informationdisclosure, enabling all investors to equitably access Company data and safeguarding their rights to information.
Compliant Information Disclosure Management
From a comprehensive communication standpoint, the Company embraces a versatile and multi-pronged approach toconducting investor relations activities. Leveraging platforms such as the official website, the Shanghai Stock Exchangewebsite, the SSE E-Interactive Platform, as well as various new media outlets, telephone, fax, email, and other mediums,Goneo has established a robust means (such as the General Meeting of Shareholders, Investor Briefing, Roadshows,Analyst Meetings, and Reception for Visiting Research) of communication with investors regarding crucial events. Thisforms a constructive and interactive communication with the capital market, delivering the Company's value in a fair, open,objective, and transparent manner.During the reporting period, the Company has proactively engaged in extensive and enlightening dialogues with small- andmedium-sized investors. This has involved performance briefings, interactions via the SSE E-Interactive Platform, andfacilitating hotline calls. Furthermore, the Company implemented online voting for the General Meeting of Shareholders.For significant matters such as equity distribution, related-party transactions, and the use of raised funds that impact theinterests of small- and medium-sized investors, individual voting by shareholders owning less than 5% of shares wasimplemented and disclosed, ensuring the interests of all shareholders, particularly those of small- and medium-sizedinvestors. In 2023, the Company facilitated a deeper understanding of itself among small- and medium-sized investors byengaging with investors, providing an investor hotline, conducting email correspondence, and offering free physical copiesof annual reports and ESG reports to those in need.Key Performance
inclusively involvingapproximately investorsDuring the reporting period, thecompany conducted investorinteraction activities190+2600
resulting in nearly interactionsthrough investor hotlines and emails.
1000
Key Performance
including interimdisclosureDuring the reporting period,company announcements and nonannouncement online documents16684
and received accolades for informationdisclosure from the Shanghai StockExchange for two consecutive years.A-grade assessment
Moreover, the Company actively engaged directors, supervisors,senior executives, and personnel of the Securities Department inall kinds of specialized training sessions hosted by entities such asthe China Association for Public Companies, the Shanghai StockExchange, the China Securities Investor Services Center, the ChinaSecurities Regulatory Commission, and the China Capital MarketInstitute, enriching their professional knowledge in securities marketlaws, regulations, and investor relations management. Additionally, theSecurities Department diligently collaborated with external experts,conducting regular training to further enhance compliance awarenessand professional skills among personnel involved in investor relations.
Training for Directors, Supervisors, Senior
Executives, and Staff of the Securities Department
The Company has persistently pursued innovative communicationmethods to cater to investors' needs. Illustratively, duringthe reporting period, the Company hosted the 2022 AnnualConference and First Quarter Performance Briefing for 2023at the SSE Roadshow Center, employing live broadcasts,video clips, and online textual interactions to facilitate extensiveexchanges between the Management, and more than ten on-site representatives and numerous online participants. This eventoffered a vivid portrayal of the Company's operational status andprovided a profound interpretation of its developmental strategies.
CaseGoneo's Pursuit of Innovative Communication Modes
2022 Annual Conference and First QuarterPerformance Briefing for 2023
During the reporting period, Goneo organized the AnnualInteraction Day of Investors, inviting investors for on-siteinspections and visits. Over a hundred investors partook infirsthand experiences of the Company's innovative products,production processes, and lean manufacturing capabilities.This occasion also enabled face-to-face discussions with theManagement in terms of business development and futureconcepts, eliciting a highly positive response.
Goneo's Pursuit of Innovative Communication Modes
The Annual Interaction Day of Investors
Case
2728Consolidating the Cornerstone of Robust Development through Scientific GovernanceGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
To reasonably ensure the efficacy of business operations, the reliability of financial reports, and adherenceto laws and regulations, the Company, in accordance with theBasic Norms of Enterprise Internal Controlfor listed companies and complementary guidelines, and the combination with its actual condition, hasmeticulously reviewed business processes, crafted a risk control matrix, delineated the full spectrum ofinternal control risk points, operational protocols, execution system standards, risk mitigation measures,specific job responsibilities, etc. TheInternal Control Manualso produced serves as the cornerstone of theCompany's internal control management system.The Company has established an internal control manual, an internal control evaluation managementprocess, and an internal control inspection mechanism, and standardized the operation of the internalcontrol management system within the Company, its business units, business management centers, andfunctional management centers. Therefore, these efforts provide lucidity on the organization, content,responsibilities, requirements, and outcomes throughout the establishment, evaluation, and dailyinspections of the internal control system.
Goneo possesses a comprehensive mechanism for continuous enhancement of the internal controlsystem. Through the formulation of regulations, the Company progressively expanded the purview of theinternal control system, established incentives for its development, and implemented a three-tiered internalcontrol evaluation method that encompasses self-assessment, testing, and evaluation. It further instituteda framework for cultivating "internal control specialists", unceasingly advancing the perpetual improvementand refinement of the internal control system.
Internal Control Management System
Improvement Mechanism of Internal Control Management
Key Performance
During the reporting period, the Company expanded the coverage of its internal control system. By 2023, a total of
22 internal control system units had been established. In the upcoming year of 2024, the Company plans toinitiate internal control operations within the New Energy Business Division, B-end Business Division, MuguangChannel, and other departments, to achieve full coverage of the internal control system by 2025.
Compliance ControlGoneo persists in establishing a robust internal control and risk management system, nurturing a cultureof risk management. Through pervasive and comprehensive risk oversight involving all employees, itfortifies internal controls, enhances operational compliance, and augments capabilities for risk preventionand control in service of sustaining the Company's high-quality development. To this end, the Companycontinually refines its internal control system, perfects the risk management organizational structure,and systematically advocates for the identification and assessment of risks across various functionaldepartments, centers, and business units, thereby fostering the stable growth of the Company.
The Company has crafted theAssessment Regulations for Internal Control Management, establishingan evaluation group, standardizing internal control assessment rules, and designating business units,management platforms, and functional centers with established internal control systems as assessmentunits. Moreover, the Company has instituted incentives for the establishment of internal control systems.For those undergoing internal control assessment for the first time, each unit was rewarded based on thenumber of control cycles, progress in system establishment, and significance. They were meticulouslyevaluated across multiple dimensions such as cycle count, control points, timeliness, and quality.
Assessment of Internal Control Management
The Company has implemented the Assessment Regulations for Internal Control Performance,incorporating a comprehensive three-tiered mechanism that encompasses self-assessment, testing, andevaluation. All are aimed at continually enhancing the level of internal control management.
Internal Control Evaluation MethodMonthly self-assessmentQuarterly spot checkAnnual evaluation
Internal ControlEvaluation Method
Workflow Diagram of Internal Control Evaluation
Accountability andprocess optimizationby Internal Control
Department
Risk assessment
score
Deducted scoresActual scores
Percentage score
Risk levelassessment
Implementationdefects
Control testing
Understandthrough interviewsYes
Yes
Yes
No
NoNo
Update RCM
Walk-through
testing
Understand specific controlmeasures after the changethrough further interviews
Design defects/implementationdefectsAbnormalitydetermination andfill in abnormalitiesdescription
End
Start
Identifyabnormalities
If control changes
Identifyabnormalities
1. Large defects in design e?ectiveness with poor implementation;
2. Partial de?ciencies in design e?ectiveness with poor implementation;
3. Actual operation has a ?xed process and the actual process design is
not defective except absence of standard documents;
4. The design is e?ective, but the implementation is materially defective;
5. The design is e?ective, but the implementation is partially defective.
Internal Control Evaluation Mechanism and Process
2930Consolidating the Cornerstone of Robust Development through Scientific GovernanceGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
The structured mechanism and evaluation process has been devised for nurturing "Internal ControlSpecialists". Members from business units and management platforms with established or developinginternal control systems can voluntarily become "Internal Control Specialists". "Internal Control Specialists"are categorized into three levels, each requiring compliance with distinct certification standards in termsof evaluation. Rewards are granted based on the achieved evaluation level. The Company has rewardedcertified "Internal Control Specialists" with corresponding incentives based on different levels.
To promote outstanding improvement cases and enrich internal learning and communication channels, theCompany established the Evaluation and Sharing Mechanism for Outstanding Cases of Internal ControlImprovement in 2023. During the reporting period, a total of 15 exceptional projects were acknowledged,with three remarkable improvement measures being replicated in other business units.
Evaluation and Sharing Mechanism for OutstandingCases of Internal Control Improvement
Expanding beyondimparting knowledge ininternal control and riskconcepts to practicalimplementation
As the saying goes, "practicewhat you learned" and"teach one to fish". Theseare approaches that not onlytest one's abilities but alsotransfer expertise, promotingsynchronized growth.Training ContentCombiningTheory withPractice
ExperienceSharing andGrowth
Goneo places significant emphasis on establishing and continually improving its risk managementmechanisms. It nurtures a robust risk management system, fosters a risk management culture,supports daily management and operational decisions, and elevates management standards, therebyensuring reasonable assurance in achieving its strategic objectives. The Company has outlined theRisk Management System, detailing management principles and goals, and specifying processes forrisk identification, handling, and response. Through comprehensive and Company-wide risk control, itleveraged internal control as a foundation to enhance compliance management, strengthen risk preventionand control capabilities, and serve as a safeguard for the high-quality development of the Company.In an effort to effectively manage comprehensive risk, the Company systematically promoted riskidentification and assessment across various functional departments, centers, and business units. Toensure stable development, the Company has instituted theJoint Office Working Mechanism for Audit andRisk Management, further refining its risk management organizational structure.
Risk Management and Control Mechanism
Board of DirectorsAudit and Risk CommitteeAudit and Risk Management Joint Office
Business Unit 1Business Unit 2...Business Unit N
Unified leadershipHierarchical managementEnhancing riskmanagement Buildinginternal control foundation
Risk management throughout the
entire process
Principle of balancing riskmanagement and benefits
Risk management processand requirements
Risk ManagementOrganization System
Principles for Risk Management
Development and Evaluation of "Internal Control Specialists"
Case
Learning from Excellence and Bringing Forth the New - A Memoir of the SharingEvent of Outstanding Internal Control Improvement ProjectTo facilitate communication, experience sharing, and recognizing outstanding projects, the Companyhosted its inaugural event to recognize and share outstanding internal control improvementprojects on August 28. Thirteen internal control units submitted significant improvement projectsfor consideration. Each project focused on identifying root issues, finding solutions, and developingdigital pathways to address operational challenges, thereby providing crucial support for productionand operations. From January to June 2023, various internal control teams spearheaded 176significant improvements, with 61 enhancements facilitated through project-based initiatives.
Case
The Sharing Event of Internal Control Improvement Project
Goneo's Risk Management Organization System
3132Consolidating the Cornerstone of Robust Development through Scientific GovernanceGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Goneo consistently adopts an unequivocal stance of zero tolerance towards bribery, corruption, and otherunfair practices. This is exemplified through a series of regulations such as theIntegrity ManagementRegulations of Goneo, theGuidelines for Handling Complaints via the Integrity Reporting Channel, andthe Accountability Management System. These regulations delineate employee conduct, managerialresponsibilities, training mechanisms, investigation procedures. The Company has established an Auditand Supervision Committee, comprising leaders from the Audit and Supervision Center, the FinancialManagement Center, the Human Resources Center, the Operations Management Center, the Legal AffairsDepartment, and those from Goneo's labor union. In principle, the committee, whose members are thehighest-level leaders of each center/department, is responsible for decision-making regarding significantcase-related matters. In addition, the Company mandated that all employees and stakeholders sign the
Commitment of Post Integrity and the Agreement on Joint Effortsfor Integrity Building, guiding them inupholding ethical standards. Moreover, the Company actively promoted a culture of accountability byempowering employees to report any instances of bribery, unethical conduct, or behaviors contraveningethical standards that may compromise the Company's interests. Employees are encouraged to shareleads, offer evidence, and aid in investigations. Staff members have the freedom to report incidentsanonymously, confidentially, or publicly. To fortify this commitment, the Company has entrenched a robustwhistleblower protection mechanism, ensuring the utmost confidentiality of the whistleblower's identity andinformation, thereby shielding their rights and interests from any potential repercussions.
Integrity and Righteousness
Business Ethics
Goneo upholds the values of integrity, equity, and responsibility in its business ethics. It maintains anunequivocal stance of zero tolerance against any form of unfair competition, particularly bribery andcorruption. To ensure compliance with social responsibility standards, the Company has establisheda thorough institutional framework, and formed the Audit Supervision Committee. Concurrently, theCompany strictly adheres to anti-monopoly laws, anti-unfair competition laws, and other pertinent laws andregulations, bolstering the construction of an anti-monopoly compliance system to foster fair competitionand cultivate a harmonious operational environment.
Risk information
collection
Selection of risktreatment options
Implementation
of risk control
measures
Supervision andimprovement ofrisk managementRisk assessment
Developmentof risk control
measures
In 2023, the heads of various business divisions, procurement department, marketing department,and other primary departments signed theIntegrity Commitmentwith the chairman, committing to"fulfill promises, self-regulate, and willingly accept monitoring from the Company and its employees".
CaseSigning of Goneo's Integrity Commitment
Goneo steadfastly abides by the provisions of theAnti-monopoly Law of the People's Republic of China andthe Law of the People's Republic of China for Countering Unfair Competition,and other laws and regulations,continually fortifying the framework for anti-monopoly compliance to ensure that the Company's marketactivities are not only lawful but also ethical. A robustAnti-monopoly Compliance Management Systemhasbeen established to actively cultivate a harmonious and organized operational environment. Concurrently,specific agreements in the form of theMarketing Personnel Compliance Commitment and the DistributorCompliance Commitmenthave been individually inked with marketing personnel and distributors, therebysafeguarding the seamless functioning of the anti-monopoly compliance structure and the practicalexecution of associated measures.
Anti-monopoly
Risk Management Process
Key Performance
In 2023, there were instances of staff compliance training1,440
involving training.
1,298.84hours
Key Performance
A total of employees received specializedtraining on these subjects
encompassing approximately
In 2023, employees received an averageof per person to anti-monopoly and unfaircompetition matters.while distributors expended an average of perperson in legal risk training
0.61 hours per person
0.5 hours per person
1,144 employees
2,410 individuals
Key Performance
Performance: In 2023, over 31,000 employees received integrity training, including integrityand accountability training, specialized training for new hires, and specific warning-related integrity
training. The average duration of anti-corruption and anti-bribery training for employees was
hours per person. Furthermore,6 directors underwent anti-corruption and anti-bribery training,with an average duration of1 hour per director.The year 2023 also witnessed the publication of 34integrity-related articles, reaching over56,000 readers.
STRIVE FOREXCELLENCE
SDGs
Our key issues
Pursuing Excellence, Forg-ing the Essence of QualityCraftsmanship
Pursuing Excellence, Forging theEssence of Quality Craftsmanship
Goneo regards quality as its lifeblood, infusing meticulous attention into every product,rigorously overseeing the entire process from material selection to production, leaving noroom for compromise at any stage. Tirelessly pursuing the creation of high-quality productsstands as the linchpin of Goneo’s ethos. Firmly believing that only through deliveringhigh-quality products can consumers bask in a secure and comfortable electrical ambi-ance, this dedication leads to an incessant enhancement in brand recognition, reputation,and contentment, thus fortifying Goneo’s indomitable stature.
Company GovernanceCompliance ControlBusiness Ethics
3536Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Quality epitomizes an enterprise's vitality. The Company actively orchestrates the establishment of qualitygoals and assessments for the Group, instills tangible product quality management standards, and erectsa robust quality management system within Goneo. It oversees and evaluates the performance of variousbusiness units and functional departments in fulfilling their quality management obligations, nurturing aconstructive culture of quality enhancement.
Goneo places paramount emphasis on constructing the quality management system and has integratedthird-party authoritative certification to bolster and refine its quality management system. As of the end ofthe reporting period, Goneo Group Co.,Ltd., Cixi Goneo Electric Co., Ltd., Goneo Group Co.,Ltd. GuyaoBranch, Ningbo Banmen Electric Co., Ltd., Ningbo Goneo Low Voltage Electric Co., Ltd., Ningbo GoneoElectric Appliance Co., Ltd., Ningbo Goneo Optoelectronic Technology Co., Ltd., Ningbo Goneo HomeAppliances Co., Ltd., and Ningbo Goneo Digital Technology Co., Ltd., have each obtained the GB/T19001-2016/ISO9001:2015 Quality Management System Certification.
Quality Management System
Vigorous Quality DevelopmentQuality serves as the bedrock for propelling a 100-billion-yuan enterprise, encapsulating the aspirationto create world-class Goneo quality. Goneo has fervently embraced this ethos by deeply ingraining acommitment to prioritizing quality, holistically enriching product standards, propelling brand advancementacross all fronts, and zealously augmenting both quality and efficiency.Goneo meticulously observes theProduct Quality Law of the People's Republic of Chinaand other pertinentlaws and regulations. Through an unceasing refinement of management systems, cultivation of a qualityculture, and comprehensive implementation of quality management, the Company ensures product qualityand safety, catering to diverse customer requisites.
As the first China space affiliate in the civil electricalindustry, Goneo has been awarded the AS9100DAviation Management System Certification (AMSC)for its exceptional capabilities and rigorous approach.AS9100, developed based on the ISO 9001 quality systemrequirements, represents a globally recognized standard.The AS9100D certification, as the latest version of thisstandard, is considered an "entry permit" into the aerospacedomain. This certification requires passing throughnumerous "checkpoints" such as risk management, keyproject management, and product safety. This achievementthrough AS9100D certification once again affirms that Goneohas achieved international advanced levels in managementsystems, product quality control, and other related aspects.
案例Goneo Honored with Aviation Management System Certification (AMSC)
Goneo became the China Space Affiliate andwas awarded the Aviation Management SystemCertification
The Company has ventured deep into the realm of quality management, steering away from mere inspectioncontrol and embracing a proactive stance towards quality assurance. With a keen focus on pivotaltransformational aspects such as mitigating new product quality risks, perpetually enhancing supplierquality, and vigilantly monitoring customer experience, Goneo is steadfast in its pursuit of elevating productquality.In the domain of new product quality, Goneo strategically adopted a customer-centric approach, delvinginto the core of customer needs to craft products that embody high standards, superior specifications, andindustrial-grade excellence. Meticulous adherence to risk control measures for new product quality spansthe entire spectrum, encompassing product conceptualization, design development, prototype testing, andmass production, all geared towards safeguarding product quality.Regarding supplier quality, Goneo has forged an adept team for supplier quality management, instillingcomprehensive quality oversight in supplier selection, performance evaluation, and product introduction.Furthermore, the Goneo has initiated diverse programs aimed at aiding suppliers, including trainingin supplier PSP improvement tools and delivering guidance on supplier quality. In a bid for operationalefficiency, Goneo has established a digitized workflow for mass production approval, thus achieving holisticprocess optimization and data-driven approval for both sample parts and mass production.Dedicated to crafting a paramount customer experience, the Company has created a model for surveyingand assessing satisfaction across all consumer touchpoints, including distributors and market landscapes.This meticulous approach ensures swift and proficient handling of every customer feedback, subsequentlyinforming new product development to enable continuous refinement and enhancement, all in service ofbolstering customer satisfaction.
Goneo has been engaged in fundamental research pertaining to material quality and houses an independentmaterial research institute. Through pioneering technological research and rigorous application validation,Goneo endeavors to augment the stability, consistency, and applicability of material quality, therebyconsistently advancing product reliability, durability, and sophistication. Simultaneously, its distinguishedquality testing center showcases premier domestic testing capabilities, occupying a vast 12,189 squaremeter area hosting three nationally certified laboratories. It has garnered accolades from esteemedprofessional institutions such as "UL Witness Laboratory", "CNAS Laboratory", "CCC Site Laboratory","WMT Accredited Laboratory", "DEKRA Cooperative Laboratory", "HCT Cooperative Laboratory", and "TUVRheinland Authorized Laboratory". The Company has research assets exceeding RMB 39 million in cutting-edge software and hardware, along with a formidable arsenal of over 1,940 sets of testing equipment.
Improvement of Management Quality
Quality Policy:
●
Every member of Goneo should forever recognize that quality is the reason for customers selectingGoneo and forms the bedrock of its survival and development;●
We believe that adhering to rules and processes and getting it rightthe first time, is the ultimate efficiency responsibility. By harnessingthe collective potential of all our staff, we aim to build and perpetuallyenhance quality;●We always strive to strike a balance between opportunities and risksfrom the customers' perspective, responding swiftly to their needs,thus achieving sustainable development.
ISO9001 Quality Management System Certification was awarded to Goneo and its subsidiaries
3738Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
The Company commits to strictly adhere to a series of national laws and regulations pertinent to theproduction of electrical products. When necessary, it will obtain electrical production permits in accordancewith the law and fully assume the responsibility of the legal entity as the first person responsible for productsafety.Moreover, based on the laws, standards, and implementation regulations related to electrical safety inChina, Goneo continued to implement advanced quality methods and tools like QFD, SFMEA, APQP,PPAP, DFMEA, PFMEA, and CP across the entire Group and various business departments. It alsointroduced new internal fundamental resolution methods, significantly enhancing the effectiveness ofquality management throughout the product lifecycle, and reducing the likelihood of quality issues occurringat later stages. Additionally, it collected information on electrical safety risk monitoring and market problemfeedback, establishing a repository of failure cases and promptly providing feedback to the R&D end forclosed-loop follow-up. This proactive approach aimed to prevent and resolve potential problems in productdesign, thus transforming post-event "remedying mistakes" into pre-emptive prevention, shifting from"post-event supervision" to "pre-event prevention", thereby avoiding electrical safety accidents.With its stringent product safety management methods, Goneo has garnered numerous accolades inthis field, being the first domestic electrical industry enterprise to obtain the China Great Wall certification.Subsequently, as its products became international, it has successively obtained 3C, UL, VDE, BIS, GS,Malaysia SIRIM, Indonesia SNI, Hong Kong HKSI, Singapore PSB, and customs AEO certifications.Particularly after the introduction of the new standards for socket products, Goneo once again became thefirst among its peers nationally to obtain the inaugural new standard 3C certificate, playing a pivotal role instandardizing operations within the industry. Internally, it integrated the product certification system with theintegrated management system, leveraging unified management advantages.
The Company emphasizes quality education and training of employees. On one hand, it intensified technicaltraining to enhance the technical competence of practitioners, thus laying a solid foundation for improvingproduct quality. On the other hand, it strengthened training for employees in legal regulations and integrityconsciousness, particularly organizing regular sessions for staff to study laws and regulations such astheProduct Quality Law, theStandardization Law, theMetrology Law, electrical production certificationconditions, as well as all kinds of standards. This aimed to elevate the overall legal and integrity awarenessof employees, ensuring that everyone in the Company comprehends, understands, and abides by relevantlaws, regulations, and standard requirements throughout the actual production process.
Product Safety Assurance
Quality Culture Development
Business Management SystemThrough continuous strengthening and development in recent years, Goneo's Business System (BBS) hasgradually become an important operational system driving to improve its business quality.
In April 2023, Goneo's intelligent clothes dryer series J05 received theinaugural CQC certification from the China Quality Certification Center.Focused on product quality and the personal and property safety ofconsumers, this certification signifies that Goneo's intelligent clothes dryerseries J05 has passed strict quality testing, demonstrating high quality,safety, and innovation, offering consumers greater peace of mind duringpurchase and use.
CaseJ05 Yuebian Series Clothes Dryer Received the Inaugural CQC certification
J05 Yuebian Series Clothes Dryer received the CQC Certification
CaseGoneo's Quality Training Activities
Bottom-up support
SalesProduction
ServiceResearch
Top-down drive
Automation
Vision: Create world-class BBSThree-year BBS Structure
Precision growth, Cost optimization,
Talent leading
Continuous businesssuccess
Strategicdeployment
Valuestream
Brand-level talentcultivationGrowthmodel
Processoptimiza-
tionLeanimprove-
ment
Coresupplierempower-ment
Informatization
Key measures
BBS culture (guideline of high goals) Full participation 5S visualization DM (Daily management) CI (Continuous improvement)Mission: Empowering every employee and business of Goneo to pursue faster, higher and further development
Targetsystem
规则体系
Monitoring/evaluationCorrection/empowermentDailymanagement
BBSLean management Processed management
Goneo's BBS System
3940Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Protection of Customers' Rightsand Interests
Upholding the customer service vision of "building a professional service system for undertaking Goneo's100 billion businesses to be the top one service brand in the intelligent electric field", the Company, with afocus on undertaking the Group's 100 billion development strategy, adheres to high target requirementsand establishes rules with internal driving force to promote the construction of a service system centered ondealers and distributors, to create the customer service concept of being a new model for high-quality industryservice by providing Goneo consumers with timely, professional, and warm services.
In 2023, Goneo's BBS, guided by the principle of "accompanying business to deliver results", constructeda comprehensive value chain empowerment system based on strategic planning and deployment (PD). Byelevating thinking and simplifying implementation, it bridged the business process, forming a closed loop.It comprehensively implanted the genes of BBS from point to surface, internally and externally, within theentire value chain of production, research, sales, and services, empowering each business for continuoussuccess.
Focusing on new channels and new businesses, a toolset was embedded through the introductionand internalization of growth models (such as lean merchandise planning, BPD, 3P, lean marketing,and other tools), constructing a growth process to enable continuous business growth. In 2023, leanmerchandise planning achieved full introduction and application across all businesses/channels,taking on the strategic growth objectives of each business development. Operationalizing the leanmerchandise planning room led to the seamless coordination among products, marketing, andbranding, ensuring the achievement of sales targets across various product platforms.
In terms of innovating new dimensions for growth
In 2023, by introducing systematic methodological practices such as Sparrow Factory, the waste withinthe entire value chain from customer demand to fulfillment was significantly reduced. The concept ofthe "Sparrow Factory" embodies an exceptional and lean manufacturing hub that strives for completecustomer satisfaction by seamlessly integrating every aspect of the value chain. This establishmentunites the factory with its customers through a harmonious fusion of planning, design, physical logistics,information flow, and on-site material management - all meticulously woven together across fivepivotal stages, culminating in an uninterrupted and seamless workflow. During the reporting period, theCompany successfully piloted and established benchmark Sparrow Factory 1.0 for multiple businesses.This resulted in substantial improvements in supply chain safety, quality, delivery, inventory, laborefficiency, machine efficiency, space efficiency, and material efficiency, laying a solid foundation forGoneo's process and digital transformation.
Establishing lean benchmark factories
Leveraging Goneo's Leadership Model and BBS empowerment, Goneo formulated competencydevelopment plans for different managerial and technical talents at various levels, precisely nurturingvarious BBS-tiered talents suitable for Goneo's business development based on business needs.Furthermore, a BBS expert pool was formed, identifying expert talents within the Group who understandboth business and tools, ensuring solid support for the Company's rapid and continuous development. In2023, the Company organized over 400 sessions of improvement weeks for expert empowerment andtrained 19 black-belt talents, 100 blue-belt talents, and 1,688 green-belt talents, effectively supportingvarious business initiatives and priorities.
Dimension of talent development
To promptly address the after-sales needs of consumers, the Company has established a nationalunified customer service hotline 400 reachable 24/7, staffed with dedicated representatives who promptlyregister and categorize consumer issues. Based on the types of consumer demands, the Company swiftlycategorized and escalated them to the corresponding personnel for resolution. Subsequently, follow-up visits were conducted with consumers to confirm the final resolution, ensuring a closed-loop processfor issue resolution. Additionally, the Customer Service Department regularly summarized and compiledconsumer feedback issues into theVoice of the Customer Reportthat was presented to various businessdepartments to drive continuous product and service enhancements.Moreover, Goneo solemnly pledges that in the event of any quality issues with its products, the Companywill, once an investigation conducted jointly by the Company and relevant departments confirms its liability,strictly adhere to corresponding laws and regulations such as theProduct Quality Lawand theLaw on theProtection of Consumer Rights.Within the legal framework and pursuant to consumer preferences, Goneowill provide comprehensive three-guarantee services for its products, ensuring satisfactory after-salessupport for consumers.To enhance the quality of door-to-door services provided by service providers, Goneo developed theStandards for Acceptance of Product Installationand After-sales Services, specifying response times,operational standards, and completion timeframes. Goneo implemented round-the-clock daily supervisionand management, and real-time service progress checking, and based on the assessment of serviceproviders, established a dynamic service area adjustment mechanism to ensure continuous improvementof service advantages. These efforts resulted in a nearly 40% positive user feedback rate for e-commerceusers in 2023, surpassing industry averages.
After-sales Service
Goneo received numerous positive user feedback
4142Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In terms of capacity building, Goneo has upgraded the capabilities of after-sales service networkservice outlets in terms of intelligent door locks, household appliances, intelligent headless lamps, newenergy, electric tools, and other product categories, through various forms of training, certification, andcompetitions. This helped to achieve the annual addition of 1,849 certified network service outlets, including637 star-rated service outlets, thus hastening the specialization transformation of the Company's after-sales service network.
The Company fervently embraces a vision of customer service and an overarching development strategy,all centered on the ultimate goal of serving our cherished customers. By orchestrating meticulous customersatisfaction surveys, we endeavor to delve into the depths of customer needs and aspirations, collectingvaluable feedback and insightful suggestions. This concerted effort allows us to promptly unearth areasfor enhancement, thus elevating customer satisfaction, nurturing enduring patronage, and propelling theoverall advancement of our business.During the reporting period, the Company diligently conducted comprehensive customer satisfactionsurveys, engaging both end users and distributors.
Customer Satisfaction Surveys
With a refined focus on end users,Goneo sought toprofoundly grasp the intricacies of user experienceswith its products and services, fostering anenvironment for continuous enhancements inproduct quality and service delivery to consistentlymeet evolving user needs. Notably, the Companyentrusted the esteemed Zhejiang Quality Associationto perpetually execute a third-party evaluation ofuser satisfaction. It achieved the User SatisfactionIndex of 90.36 in 2023, a 3.75 increase over 2022(86.61), signifying sustained improvement in userexperience with Goneo's products and services.
In terms of clients,the Company has explicitly outlinedthe responsibilities and processes for collecting andanalyzing distributor satisfaction information andbusiness process, fostering timely and effectiveclosed-loop management of distributor issues.Goneo has formulated theCustomer SatisfactionManagement Regulations, delving into dimensionssuch as products, quality, orders, logistics, finance,after-sales, and marketing support to uncover factorsimpacting distributor satisfaction. Through continuousPDCA improvement, the distributor satisfaction indexhas seen a consistent increase over five years.
User SideClient Side
The Company persistently strengthens its digital service infrastructure. By managing Moments of Truth(MOT) for customers, it has achieved unified service standards across online and offline channels. Frominitiating service requests to automatic assignments, initial appointments, on-site check-ins, servicecompletion, and feedback, the entire service process is visualized and shared, enhancing lean serviceoperational efficiency.
Digital Service Management
A Series of After-sales Service Personnel Training Activities Conducted by Goneo during the Reporting Period
Customer Satisfaction Index
20192020202120222023
80.61
82.15
84.08
84.39
85.35
Goneo's Customer Satisfaction Index over the Past Five Years
Visualized Management Process of Goneo's Services
4344Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
The Company has always considered supply chain management as a key strategic approach toward achievingsustainable development goals. Goneo continuously enhances its supply chain management system, optimizing variousaspects such as purchasing product quality, technical standards, supplier grading management, and procurementprocedures based on existing systems including theManagement Procedure for Suppliers of Production Materials,and theRegulations on the Admission of Non-production Suppliers. Furthermore, the Company diligently pursuedmultidimensional analysis of issues arising during the procurement process, maintaining its efforts in continuousimprovement. Through standardized, meticulous, and continuous supplier management, the Company ensures that theprocurement process meets environmental and social expectations, thereby enhancing enterprise efficiency, productquality, and core competitiveness.During the reporting period, Goneo continually standardized supplier admission, annual reviews, re-evaluations,issue improvement, and compliance, and introduced 27 detailed regulations, further optimizing the system for supplychain management. For instance, in the procurement management of production materials, it introduced a bidding andtendering process on top of the existing joint factory audit mechanism, evaluating suppliers based on, and establishingtheBidding and Tendering Management System of Production Materials.
In the management of procurement information, the Company adopted the "1+2 Procurement Management Platform",comprising 1 digital procurement management cockpit and 2 procurement management systems (i.e., SRM systemand MRO system). Based on differences in procurement volume, amount, repeatability, and supplier developmentprocesses, the SRM system is used for production materials, while the MRO system is applied for non-productionmaterials. The digital procurement management cockpit interfaces with SRM and MRO systems to obtain foundationaldata and automatically generate trend analyses concerning quality, cost, leading time, and market conditions based onpreset models. Through this platform, the whole process of internal and external procurement operations is connected,and the visualization management of end-to-end supply chain for procurement operations is achieved, providing reliableinformation support for management decisions.During the reporting period, Goneo introduced essential digital capabilities across diverse areas to support key businessinitiatives aimed at achieving strategic objectives. This initiative outlined an enabling platform crucial for realizing thevisionary "1+3+6+X" digital framework.In the realm of procurement, Goneo harnessed a foundation anchored in data infrastructure, cloud computing platforms,and IoT frameworks to establish a robust supplier management system. This enhancement bolsters procurement'sdigital capabilities, enabling the implementation of an agile supply procurement strategy, ultimately achieving seamlessconnectivity throughout the entire value chain.
Supplier Management
Digital EmpowermentImplementation of ResponsibleProcurementIn alignment with sustainable development goals, the Company emphasizes comprehensive consideration of environmentalprotection, social responsibility, and economic benefits in the procurement process. This ensures that products andservices purchased meet expected quality and technical standards in both environmental and social aspects. The Companyhas established a robust supply chain management system, implemented supplier admission and review mechanisms,utilized information-based procurement management platforms and transparent procurement mechanisms, and embracedtransparent, fair, and efficient procurement processes. Additionally, it emphasizes establishing partnerships with suppliersto jointly contribute to the construction of a green supply chain for long-term benefit to the Company and society.
In response to China's sustainable development strategy requirements, Goneo has made environmental qualifications
essential basic thresholds for supplier admission. The Company selected collaborative suppliers for projects involving energy
consumption, such as equipment procurement, with a focus on future energy consumption considerations. Meanwhile,
a specialized procurement team was established to manage waste and obsolete materials, highlighting the green and
environmentally friendly supply chain as one of the central focuses of Goneo's supply chain development.
For new supplier admissions, the Company insisted that all cooperative suppliers must pass environmental assessments and
fire safety checks while existing suppliers should undergo periodic verification. Suppliers lacking fire safety or environmental
assessments are categorized as high-risk manufacturers and cease to be evaluated. Qualified suppliers should sign the
Safety and Environmental Management Agreement,emphasizing occupational health and environmental protection.
Green Supply Chain Management
Enhanced supply chain system capability
Supplier full lifecycle management
Procurement cost management
Procurement risk warningIntegrated procurement collaboration
Data infrastructure
Cloud computing platform
IoT platform
Agilesupplychainprocure-
mentDigitalcapabilitySupplier management systemDigital platform & systemExcerpt from theBidding and Tendering Management System ofProduction Materials- Shortlisting Requirements for Suppliers
Existing cooperativesuppliers (cooperativesuppliers for bid materials)
Qualified suppliers(cooperative suppliers fornon-bid materials)
New suppliers●
Subject to annual review andfactory audits correspondingto bid materials;
●
Excess capacity > the highestbid requirement × 130%;●
Performance should not havethree or more occurrencesof grade C or D within thelast year, with an overallperformance not lower thangrade B.
●
Passing the "capabilityevaluation" is a prerequisite;●
Excess capacity > the highestbid requirement × 130%;●
Performance should not havethree or more occurrencesof grade C or D within thelast year, with an overallperformance not lower thangrade B.
●
Passing the "capabilityevaluation" is a prerequisite;●
Excess capacity > the highestbid requirement × 130%;●
Completion of sample sealingfor bid materials.
4546Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
To fortify fairness, equity, and efficiency in the procurement decision-making process, Goneo has erected acomprehensive transparent procurement management mechanism. This intricate structure encompassestwo tiers of decision-making bodies (Group-level and Supply Chain-level procurement committees) thatcollaboratively review crucial project requirements and judiciously select suppliers. The implementationof procurement needs, supplier quotations, and pricing is systematically conducted to minimize humanintervention while heightening overall procurement efficacy.
In addition, the Company regards theAgreement on Joint Efforts for Integrity Buildingas an integralappendix to its procurement agreements, obliging suppliers to sign and undergo integrity examinations.Violations of these agreements will result in a punitive breach of responsibilities, including compensating theCompany for losses and termination of cooperation qualifications.
Transparent Procurement
Responsible Marketing
Goneo unwaveringly upholds its core values of "loyalty, integrity, professionalism, and devotion", along withits corporate vision of "becoming a leader in the international civil electrical industry". Advancing its saleschannel system continually, the Company insists on compliant operations during marketing endeavors,adhering to commercial ethics while implementing various measures. The Company enforced behavioralnorms for marketing personnel and distributors through the signing of compliance commitments and theAgreement on Joint Efforts for Integrity Building. Furthermore, it provided compliance and legal risk trainingto enhance their awareness and capabilities in fulfilling social responsibilities, thereby safeguarding therights and interests of relevant stakeholders from harm.
Group Procurement BusinessDecision-making CommitteeSupply Chain ProcurementBusiness Decision-making
Committee
Project Demand Proposal Review
Management Committee
SRM
MRO
Business decision controlSystem control
Transparent Procurement
Key Performance
1,026
Percentage of new suppliersscreened using environmentalstandards
Percentage of suppliersscreened using socialstandards
100 %
By assessment type
Percentage ofsuppliers that haveexecuted theSupplierCode of Conduct100 %Percentage of suppliersthat have signedagreements containingenvironmental and laborrequirements clauses100 %
Total number of suppliers1,026
Number of suppliers identifiedwith actual or potential significantnegative environmental impactsNumber of suppliers that haveundergone environmentalimpact assessments
Number of suppliers thathave undergone social impactassessments1,026
Number of suppliers identifiedwith actual or potential significantnegative social impacts
%
Evaluation of suppliers' product quality,pricing, environmental management status,delivery, and problem-solving capabilities;
Investigation of customer satisfaction levelswith the supplier and post-delivery service;
Long-term stable supply performance, fairpricing, and continuous improvement will receivepriority confirmation for existing suppliers.
Inspection of supplier systems and evaluationof their supply capabilities (scale, personnel,equipment, technology, processes, logistics,environment, business scope, etc.);
Principles for Selecting and Evaluating Non-production Suppliers
If suppliers have obtained system certificationor product quality certification, they arerequired to provide relevant certificates.Preference is given to those with systemcertification or product quality certification;
From March to April 2023, Goneo undertook its annual supplier inspection to gain practical insightsinto the commercial and ethical conduct of its suppliers in collaboration with the Company, and seekadvice from the suppliers. Combining on-site visits and telephonic communication, the inspectionaimed to investigate any breaches in work procedures or corrupt behavior during their partnershipwith Goneo.
Case Integrity Inspection against Suppliers of Goneo
4748Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Employing a multi-channel and multi-dimensional approach to brand building, Goneo consistently enhancedbrand value and expanded its market share. Meanwhile, leveraging diverse marketing strategies tailored todifferent channels resonates with brand-building efforts, enabling the realization of Goneo's influence in nichemarkets, elevating its core competitiveness, and consequently driving sales and customer satisfaction.
Brand Building and Marketing Strategies
China Aerospace teamed up with partners,endorsed as "Safety Electrical Expert"
International design masters personally join theeffort to create new products for Bull
Strategic Partnership with High Potential,Co-creation with International Design Masters
· "Sea, Land, Air" media exposure matrix
· Renowned platforms present
brand marketing awards
Global Media High-density Exposure
· Authoritative media coverage, explosive
online discussion of popular products
Brand Potential Upgrading and Extension
· Upgrade to "high-end, fashionable"· International fashion supermodel Liu
Wen endorses
· Upgrade to "technological, international"· Bull showcases charging piles at the topinternational technology exhibition CES
· Brand extension to "smart, healthy"· MuGuang's brand-new brandcreates a healthy light for the wholehouse
●
With a focused layout in the areas of government-subsidized housing and delicately decorated houses,and relying on high-quality products, Goneo has won bids for several key government-subsidizedhousing and talent apartment projects in Xiong'an New Area, Baoding, Tengzhou, Zhuhai, andZhengzhou. Additionally, through impeccable service, it has gained the trust of well-known top 100 realestate enterprises in China. Goneo has established long-term and stable strategic partnerships withPoly Developments, Greenland Group, Yuexiu Property, Taikang Group, etc.B-endChannel
●Establishing online comprehensive dealer business policies, Goneo created a positive cycle andsustainable e-commerce ecosystem;
●Through online promotional support policies, distributors were helped to enhance store and productcompetitiveness, further improving their operational health;●To safeguard the legitimate rights and interests of all partners, Goneo has established and reinforcedonline market management norms, clarifying operational and positive competitive mechanisms;
E–commerceChannel
Innovative Brand Strategies of Goneo
DigitalChannel
●
Goneo utilized digital marketing methods to enhance its brand's online exposure and interaction,increasing brand awareness among consumers;
●Goneo actively promoted professional technical certifications to enhance consumer awarenesswith an industry benchmark positioning;
●Goneo unified product packaging, dimensions, and display images to enhance brand recognition.
Hardware
Channel
●
Guided by "open source, cost-saving, and risk prevention", the Company comprehensivelyintroduced lean market operation tools;●
Targeting and providing key support to weak markets, Goneo improved the operational conditionsof key markets and enhanced market operation capabilities;●The Company established a professional engineering project operation team to provide professionalengineering project solutions and create professional dedicated sales areas and engineering distributors;
●The Company had a product circulation service process from distributors to business end, businessto end-users, and end-users to consumers.
New Energy
Channel
●Goneo actively participated in various honorary evaluations to enhance the credibility of its brand;
●
We tailored a series of effective marketing strategies and methodologies for different customer needs inthe C-end and B-end markets;●We increased investment while leveraging economies of scale and enhancing the visibility of Goneocharging piles in the residential and commercial markets;●Concentrating on major customers, we signed strategic cooperation agreements or strategicsupply agreements.
Decoration
Channel
●
Centering on distributors, salespersons, and stores, we helped them set goals, guiding theirmarketing methods, and finding sales breakthroughs at the same time;●
Using flagship store construction and the promotion of safe electrical solutions of household,Goneo developed tailored service methods and content based on customer types and demandcharacteristics to improve marketing efficiency and user loyalty;●We optimized inventory structure and undertook slow-moving product replacement projects fornew distributors to promote healthy market development.
Diverse Marketing Strategies for Goneo across Different Channels
4950Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Key Honor
In 2023, Goneo's digital channels pioneered aninnovative marketing approach. We leveragedinternet celebrities and influencers to promoteand market products, establishing popularonline retail hubs. This strategy not onlyfacilitates product placement in stores, leadingto increased sales but also generates over athousand videos, resulting in a brand exposureof over 100 million times. We have ultimatelyachieved a win-win situation among the brand,distributors, and sales outlets!
In August 2023, the Company conducted safety electrical promotion activities at nearly a thousanduniversities nationwide, disseminating electrical safety knowledge among the younger demographic,and providing safe and reliable products for university freshmen lacking quality recognitionexperience. Through direct selling guidance to distributors and offering favorable prices and practicalgifts to new college students, Goneo successfully imparted essential education on electrical safetypractices to young individuals while bolstering Goneo's brand, fostering a safer electrical environmentfor countless students.
Case
Case
Innovative Marketing - Building Unique New Media Operations
Promoting Safe Electricity Use on Campus
Our digital platforms leveraged internet celebritiesand influencers to promote and market products,establishing popular online retail hubs. Thisstrategy not only facilitates product placementin stores, leading to increased sales but alsogenerates over a thousand videos, resulting in abrand exposure of over 100 million times.
Key Achievements:
During the reporting period, Goneo executed strategiccooperation agreements with several major clients includingLongfor Group Holdings Limited, Yuexiu Property, WeixingReal Estate, China Railway Construction Real EstateGroup Co., Ltd., Huawei Group, Chengdu Xingcheng-Renju Real Estate Investment Group, China ConstructionFourth Engineering Division Corp. Ltd., China ConstructionEighth Engineering Division Corp. Ltd., China RailwayNo.4 Engineering Group Co., Ltd., and China Railway 20thBureau Group Corporation Limited.
In August 2023, Goneo's maiden portablepower source triumphantly secured theCCC certification in China. With China'sfurther specification of the battery market,Goneo became one of the drafting unitsfor national standards in mobile power andcellphone batteries.
In 2023, the Companyexecuted a comprehensivepackaging overhaul acrossseven key digital productcategories, standardizingseries dimensions andrefining display imagery - amove that earned widespreadacclaim across the market.
Promotion of Safe Electricity Use
5152Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
To enhance the influence of Goneo's charging piles in both C- and B-end markets, the Companyinitiated the "0-1 Pilot Project" in 2023, formulating a series of effective marketing strategies andmethodologies.For the C-end market, the Company has formulated theEight Promotion Sale Steps of Delivery
and theOne-stop Home Charging Pile Services; for the B-end market, Goneo has introducedtheMethodology for Small- and Medium-sized B-end Government-Enterprise Projects,and the
Turnkey Project Service.Within 2023, the strategic breakthrough of "Thousands of Counties & Stores and NumerousCharging Stations" was achieved. The consumer market achieved coverage in the top one thousandcounties in China, successfully developing 17,000 consumer distribution points. The B-end marketcompleted over 20,000 commercial charging piles and guns.
Expanding Goneo's New Energy Operations to Thousands of Countiesand Stores, Establishing Numerous Charging Stations
Goneo formulated corresponding marketing management methods for various marketing channels,enhancing marketing management effectiveness by constructing marketing compliance for channellines and providing continuous training and supervision against potential marketing behaviors that mayjeopardize stakeholders.During the reporting period, the Company, using legal risks and cases, conducted multiple training ofdistributor marketing compliance building and legal risks, and warning education for hardware, digital,decoration, e-commerce, new energy, and Muguang channels involving approximately 2,410 participants.
Goneo is steadfast in its dedication to nurturing enduring partnerships with distributors, employingcomprehensive empowerment initiatives aimed at fostering mutual growth and success for all distributorsinvolved. The Company has implemented multiple measures to strengthen the market competitiveness andbusiness capabilities of distributors.
Furthermore, the Company continuously advanced measures to execute a letter of commitment forcompliance. The Marketing Personnel Compliance Commitment was executed by the human resourcesdepartments of various channels with marketing personnel, serving as one of the documents signed bynew marketing personnel upon onboarding. Through the signing of a letter of commitment by marketingpersonnel, the normal operation of the anti-monopoly compliance system is ensured, along with theactual implementation of related measures and the responsible operation of marketing. TheDistributorCompliance Commitmentserves as a pivotal appendix to the distributor contract, mandating 100%participation from distributors. This commitment signifies their partnership with the Company in upholdingcompliance standards and fortifying marketing strategies.
Marketing Channels and Distributor Management
Distributor Capability Building and Empowerment
Capability Building MeasuresLean Market Planning01Centered around distributors, Goneo provided annual reviews and opportunity analyses, assistingdistributors in actively seeking growth and innovation, and identifying growth points and marketingstrategies in line with annual targets. In 2023, the Company intertwined lean market planning withGoneo Headquarters' product development (PD) capabilities, guiding distributors to not only recognizebut seize burgeoning market opportunities. This holistic approach resulted in comprehensive coverageof lean market planning for distributors, empowering them to identify key business prospects andfostering unwavering confidence, thereby providing robust backing to meet and exceed performancetargets for the year.
Highlighted
TrainingContents
Compliance with VI imagestandards and usage scope
of the CompanyAvoidance of trademarkabuse and infringement in
customized productsFulfillment of obligations of
gift quality assurance
Accurate labeling ofgift prices and productinformation
Avoidance of unauthorizedmodifications to packagingleading to false advertising
Refraining from engagingin commercial defamationagainst competitors
Anti-monopoly complianceCase
Measures for Distributor Capability Building in the Decoration Channel
5354Pursuing Excellence, Forging the Essence of Quality CraftsmanshipGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Additionally, the Company conducted various distributor empowerment activities to drive the implementationof distributors' marketing strategies and foster growth. In 2023, Goneo employed digital tools to empowerdistributors' daily work, innovating AI store inspections, B-end business opportunity conversions, andelectronic contract signings to improve efficiency and control risks. Through bank loans and subsidizedsupport from the Company, a three-party financial policy was developed to relieve the financial pressure ondistributors and operators, facilitating the efficient and timely implementation of strategic projects.
Amidst the rapidly changingmarket environment, toensure the sustainableoperation and development ofdistributors, Goneo's hardwarechannel embraced a win-win partnership and leanmarketing. Guided by "opensource, cost-saving, and riskprevention", the Companycomprehensively introducedlean market operation tools toenhance distributor precisionin site selection and salescapabilities.Simultaneously, the Companytailored exclusive warehousinginsurance plans for itsdistributors, with a view toenhancing their risk resilience.Professional labor risk trainingwas provided to promotestandardized and compliantmanagement actions amongdistributor teams, ensuringtheir sound operation.
In the fourth quarter of 2023, the Company launched a plan to empower distributors in the decorationchannel. The supported distributors effectively enhanced operational efficiency, not only promotingchannel sales but also ensuring the sustainable and healthy development of their business.
Empowerment for Distributors in the Hardware Channel
Empowering Distributors to Boost Dynamic Sales Performance in the Decoration Channel
Value Selling
Focused on distributors and sales professionals, the Company uncovered the "black box" of marketoperations (launching new products), improving their market operational efficiency and effectivenesswhile streamlining the management of sellout channels. In 2023, the interior decoration channelsignificantly boosted its sales performance by implementing value-oriented improvement projectsof value selling. This garnered high acknowledgment and appreciation from distributors, winning theprestigious BBS Innovative Growth Project Award of the Group in 2023.
Lean Retail
Centered around stores, improvements were made in terms of customer flow from outside the store,transactions inside the store, and increasing the average customer transaction value. All are aimed athelping stores enhance sales performance, which lays the foundation for creating millions of flagshipstores. In 2023, through the lean retail project, dynamic sales of stores saw a significant year-on-yearincrease, nurturing 13 lean retail green-belt talents, and winning the BBS Innovative Growth ProjectAward of the Group for the first half of 2023.
Lean Market Planning & Lean Marketing in the Decoration Channel
During the reporting period, Goneo's new energy channel used methods, tools, and funding toenhance the capabilities of distributors, aiding in achieving performance goals.
CaseEmpowerment for Distributors in the New Energy Channel
Case
Case
SUSTAINABLEDEVELOPMENT
SDGs
Our key issuesExemplary Environmental ManagementEnergy Resource UtilizationRefinement in Pollution Control
Embracing Green Ecology,Illustrating the Tapestry ofSustainable Development
For an extended period, Goneo has championed the EHS policy of “abidance by laws and compli-ance with regulations, and fulfillment of social responsibilities; prevention of pollution, and creation ofgreen factories; precedence to people, protection of employee health; regulation of behaviors,security of safe production”. This commitment has been marked by a continuous enhancementand perfection of its environmental management system. Goneo has proactively identified environ-mental risks, significantly bolstering emergency management capabilities. Moreover, diverseenvironmental protection training activities have been initiated to heighten employee awarenessand engagement. Through efficient energy management strategies, Goneo has successfullycurtailed its greenhouse gas emissions, taking active steps to combat climate change. Concurrent-ly, efforts to optimize waste pollution management sought to minimize environmental impact.Furthermore, the promotion of a circular economy was actively encouraged to maximize resourceutilization, thereby achieving a harmonious balance between the Company and green ecology,ultimately steering it onto the path of long-term sustainable development.
5758Embracing Green Ecology, Illustrating the Tapestry of Sustainable DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Goneo has consistently established and improved the environmental management system in line with theISO 14001 standard, obtaining multiple national- and city-level green factory certifications.
To ensure the effective implementation of EHS responsibilities and strict enforcement of preventivemeasures and regulations, Goneo has set up the EHS Committee in accordance with the requirements oftheLaw of the People's Republic of China on Production Safety, as well as the EHS operating system of theCompany and its actual needs of operation management. Meanwhile, the Company also defined relevantresponsibilities to ensure the effective operation of the EHS system.
EHS Management Structure
EHS System Certification
EHS Management Structure and Corresponding Responsibilities
Exemplary Environmental Management
Goneo has established and continually improved the EHS management system, undergoing annual reviewsand enhancements to environmental, occupational health, and safety-related regulations in compliance withlegal requirements and its operational circumstances. In 2023, Goneo revised six EHS management systems,including theEnvironment, Occupational Health and Safety Management Manual,theEHS Education andTraining Procedure, theEquipment Safety Management System, theHazardous Chemicals ManagementRegulations, theEHS Reward and Punishment Management System, and theEHS Incident Reporting,Investigation, and Management System.
Key Performance
During the reporting period, Goneo's environmental investment reachedRMB5,993,400.
The EHS Committee of the Companyacts as the paramount governingand decision-making body for EHSoperations, bearing the responsibility ofproviding comprehensive leadership,coordination, and guidance for theGoneo's EHS endeavors.
It undertakes the safety productionresponsibilities of the EHS Committee,organizes work according to theCommittee's requirements; it evenformulates relevant rules and regulations,and operational procedures, conductssafety production education andtraining, and supervises the effectiveimplementation of safety production input.
These departments are responsiblefor internally implementing the workrequirements of the EHS Committee andare subject to supervision and penaltiesfrom the Committee as well.
EHS CommitteeEHS Committee OfficeOther EHS-related Departments
In 2023, several subsidiaries of Goneo, including Cixi Goneo Electric Co., Ltd., Ningbo BanmenElectric Co., Ltd., Ningbo Goneo Electric Appliance Co., Ltd., Ningbo Goneo OptoelectronicTechnology Co., Ltd., Ningbo Goneo Digital Technology Co., Ltd., Ningbo Goneo Low VoltageElectric Co., Ltd., and Ningbo Goneo New Energy Technology Co., Ltd., all obtained ISO 14001certification of environmental management system.
System Certification:
Environmental Management System Certification of Some Subsidiaries
GreenFactory
As of the end of thereporting period, Goneohas been awardeda total of 1 national-level green factorycertification and 2 city-level green factorycertifications.
Ningbo GoneoElectric ApplianceCo., Ltd.
Ningbo GoneoOptoelectronicTechnology Co., Ltd.
Ningbo GoneoDigital TechnologyCo., Ltd.
NationalLevel
CityLevel
CityLevel
Preventionof pollution,and creationof greenfactories;
Precedenceto people,protectionof employeehealth;
Regulationof behaviors,securityof safeproduction.EHS Policy
Abidanceby laws andcompliance withregulations,and fulfillmentof socialresponsibilities;
5960Embracing Green Ecology, Illustrating the Tapestry of Sustainable DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
To effectively identify environmental risks and implement adequate risk control measures, Goneohas formulated management systems and procedures such as theProcedures for Hazard SourceIdentification, Risk Assessment, and Risk Control Decisions, the Identification and Evaluation Proceduresfor Environmental Factors, theSafety Inspection (Hidden Danger Investigation) and Governance System,and theEHS Laws, Regulations and Other Requirements Management Provisions. These efforts aim tostandardize the periodic process of risk identification and normalize environmental risk control.
Meanwhile, Goneo continuously enhances its emergency response capabilities to environmental incidents,striving to elevate its risk resilience level. This involves developing theEHS Incident Reporting, Investigation, andManagement System, theEmergency Preparedness and Response Control Procedures, theERT OrganizationManagement Regulations, and the Drug Management Regulations, for the purpose of comprehensivelycontrolling accident reporting, investigation, response, and processing procedures, enhancing the speed ofincident response of the Company, and minimizing the impact of environmental incidents.
Environmental Risk
In May 2023, the decoration partscompany (painting factory) of Goneoconducted an emergency leakage drillaccording to theEmergency HandlingProcedure for Chemical Leakage. Thedrill aimed to familiarize on-site staffwith emergency response procedures,clarify their respective responsibilities,cultivate mutual support andcoordination in case of emergencies,and verify the adequacy and integrityof emergency response equipment.This drill was designated to improve theemergency response capabilities andcrisis awareness of on-site personnel.Subsequently, the Company identifiedand analyzed actual problemsoccurring during the emergency,continuously optimizing and enhancingits emergency management level.
CaseEmergency Leakage Drill of Oil Blending Plant
Emergency Drill Image
Environmental Risk Identification and Management Procedure
Identification ofEnvironmental
Factors
· Environmental impact consists of seven kinds: water pollution, air pollution, noisepollution, solid waste pollution, soil pollution, utilization of energy resources, andother environmental issues.· Three states: under normal control, abnormal occurrences, and environmental
impacts associated with emergencies.· Three tenses: past (unresolved environmental issues), present (current pollution
and environmental issues), and future (potential environmental factors due to
planned activities).· Impact of stakeholders: environmental impacts of the activities of relevant parties
such as suppliers and contractors of the Company's products and services.
Control ofSignificantEnvironmentalFactors
· Goneo developed procedural documents, operational instructions, and emergency
plans tailored to different types and natures of significant environmental factors. Control
is generally achieved through daily supervision, monitoring, and guidance.· In addition to the methods above, significant environmental factors are controlled in
accordance with the requirements of the management plan.· Management of environmental impacts of stakeholders is implemented following
regulations governing environmental impacts imposed by stakeholders.
Evaluation ofEnvironmentalFactors
· Evaluation criteria for non-energy resource environmental factors encompass
frequency of occurrence, extent, and degree of impact, persistence, and severity ofimpact.
· Evaluation criteria for energy resource environmental factors involve consumption
frequency, scale or quantity of consumption, and the control status of resources.
Determination
of SignificantEnvironmentalFactors
Any of the following will be considered as a significant environmental factor:
· Environmental factors that have violated or are close to violating legal and standardrequirements.· Environmental factors that are highly monitored or enforced by local governments.· Materials prohibited, restricted, or scheduled for replacement by government or legalmandate.· Both non-energy and energy resource-related environmental factors are consideredsignificant if they achieve a specified score through comprehensive assessment.
Updating ofEnvironmentalFactors
· Every year before setting target indicators, different departments and activities
within the Group's functional departments and business units are subject toupdates on environmental factors.· When the following situations occur, relevant departments should promptly
notify the Business Management Department and the Safety and EnvironmentalSupervision Department of each business unit, which shall then organize relevantdepartments to promptly identify environmental factors and arrange for personnelto conduct updated evaluations.Significant changes in laws, regulations, and other requirements applicable to Goneo;Major changes in production processes having a severe environmental impact;Reasonable complaints from stakeholders affecting environmental factors;Omissions in the identification of environmental factors;When new processes, materials, or equipment are being developed or used, requiringenvironmental factor identification and evaluation during the engineering trial period.
6162Embracing Green Ecology, Illustrating the Tapestry of Sustainable DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Energy Resource Utilization
The use of energy resources is one of the essential driving forces for the development of human society.Goneo attaches great importance to the conservation and utilization of energy resources, continuouslyimplementing energy-saving technological improvement projects in production and living, and activelyadvocating the significance of water and energy conservation. These aimed at effectively enhancing theawareness of all employees about resource conservation, reducing the Company's resource usage, andachieving sustainable development of Goneo and natural resources.
In terms of resource management, Goneo has developed an Energy Management System based onrelevant laws and regulations such as theEnergy Conservation Law of the People's Republic of China, andtheEnergy Conservation Regulations of Zhejiang Province. This system encompasses the organizationalstructure for energy management, management requirements for electricity, water, and oil usage, energymeasurement, and performance management. The energy consumption management system clearlydefines the responsibilities of the Industrialization Department and the Finance Department of the businessunit and regional management heads for implementation and auditing of energy consumption management.According to theEnergy Management System, the Company established an Energy Leadership Group andan Execution Group, clearly defining the responsibilities of each group and other functional departmentsregarding energy management. The Energy Leadership Group strives to prevent the "running, overflowing,dripping and leaking" of resources, as well as energy waste and unauthorized usage. It also focuses onconserving energy, reducing costs, increasing efficiency, safely and reasonably utilizing water and electricityresources, and ensuring the production and living of workshops. Additionally, the system stipulated specificassessment methods for energy management to effectively enhance the awareness of relevant personnelin energy conservation, improve the overall energy utilization efficiency, and prevent wasteful behaviors.
Energy Management
Responsible Head of Industrialization ofthe Business Unit (Deputy Team Leader)
Equipmentand FacilityDepartment
(TeamMember)
DeliveryDepartment
(Team
Member)
General Manager of the Business Unit
(Team Leader)
HumanResourcesDepartment
(TeamMember)
QualityDepartment
(TeamMember)
ProcurementDepartment
(TeamMember)
BusinessManagementDepartment
(Team
Member)
TechnologyResearch andDevelopmentDepartment(TeamMember)
Manufacturing
Department(TeamMember)
Energy Leadership Group
In compliance with the regulationsoutlined in the system,departments that have completedenergy-saving tasks, proposedenergy-saving rationalizationsuggestions and demonstratedachievements in energyconservation will be required toreport to the Energy LeadershipGroup. Subsequently, the EnergyLeadership Group will assess andprovide specific rewards.
? For behaviors of energy waste, corresponding penalties are to be applied according to the severityof the behavior. Reference can be made to theAccountability Management System (Q/GN G013053-2020) in cases where energy waste occurrences remain unaddressed or the recti?cation is notevident within a speci?ed period. In the event of identifying units with energy waste or unreasonableenergy usage, the Execution Group will compile reports for submission to the Energy LeadershipGroup and internal noti?cation to the Company. In severe cases, the Energy Leadership Group willdecide on penalties accordingly.? Any de?ciencies in the energy management system, incomplete energy statistics ledger, or
inadequate energy measurement records will result in a general unquali?ed assessment.? Energy-using departments failing to adhere to the regulations will receive a general unquali?edassessment related to the failure to analyze the corresponding energy utilization status.
?All departments within the Company must strictly adhere to the system and intensify energy-
saving education among employees. All of them are actively encouraged to save a single unit
of electricity, water, or oil. Appropriate penalties are to be applied for any instances of energy
waste based on the severity of the behavior.
Incentives
PenaltiesAssessmentManagementof EnergyManagement
Goneo's Energy Usage
Assessment Management of Energy Management
DisclosuresUnit202120222023Natural Gasm
41,604143,240168,854Outsourced
Power
kWh17,716.8417,101.6820,440.42Solar EnergykWh2,636,7025,959,4005,535,537
Goneo places great emphasis on environmental protection training. Based on its EHS policy and system,theEHS Education and Training Procedurewas formulated and aperiodically carried out throughout theyear to enhance the environmental awareness and professional competence of its employees.Environmental Protection Training
In June 2023, Goneo organized an Environmental Knowledge Contest on the World Environment Day.The activity aimed to thoroughly practice the spirit of President Xi Jinping's congratulatory messageto the national main venue event for Environment Day on June 5, promote the study, publicity, andimplementation of the spirit of the 20th National Congress of the Communist Party of China, andwidely disseminate President Xi Jinping's ecological civilization ideology. It was also the activity thatadvocated engagement in the great practice of promoting the entire society's awareness of ecologicalenvironment protection and participating in the construction of a modern harmonious coexistencebetween humans and nature.Through the Environmental Knowledge Contest, employees were encouraged to start from thedetails of life, understand Goneo's environmental situation, and contribute to the maintenance ofenvironmental safety, thereby contributing to the construction of the ecological environment. Theactivity covered all employees of Goneo.
World Environment Day - "Achieving a Harmonious and SustainableCoexistence between Humans and Nature"Case
6364Embracing Green Ecology, Illustrating the Tapestry of Sustainable DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In 2023, Goneo repurposed idle factory rooftops to establish two distributed photovoltaic powerstations with an installed gross capacity of 7.2MW. Projections indicate an annual electricitygeneration surpassing 8 million kWh, with over 98% intended for internal consumption and anysurplus power being integrated into the grid.During the period from January 2022 to June 2023, the cumulative electricity generation amountedto 1.6 million kwh.
During the reporting period, Goneo actively focused on researching and innovating low-carbonproducts. Notably, the "Single-phase 32A AC Charging Pile" product underwent low-carbon productcertification, with a third-party testing organization issuing an report for product carbon efficiencyratio accounting.
In August 2023, following an on-site audit by a third-partyverification organization, the emission reporting and calculationmethods for the year 2022 at Ningbo Goneo PrecisionManufacturing Co., Ltd. were found to be compliant with theGuidelines of Greenhouse Gas Emission Accounting andReporting for Mechanical Equipment Manufacturers (Trial).
The total greenhouse gas emissions for 2022 amounted to63,231 tons. This report also provided recommendations for theCompany's future accounting activities, aiming to enhance itscapability to accurately conduct greenhouse gas inventoriesand effectively manage emission levels.
Case
Case
CaseGoneo's Substantial Investment in Photovoltaic Power Generation Equipment
Green and Low-carbon Products
Annual Carbon Inventory at Ningbo Goneo Precision Manufacturing Co., Ltd.
Goneo's Photovoltaic Power Stations
Report for Product CarbonEfficiency Ratio Accounting
Greenhouse GasEmission Verification Report
Low-carbon Product Certification
To address climate change and reduce greenhouse gas emissions, Goneo has been steadfast in advancing theresearch and development of low-carbon products. Furthermore, it has initiated a greenhouse gas inventorywithin some subsidiaries to comprehensively analyze emissions during production and operations, therebysupporting further efforts in emission reduction and carbon footprint reduction.
Regarding water resource management, Goneo took proactive steps to conserve water and increaseemployee awareness of water resource protection. Regular inspection and maintenance work were carriedout to ensure efficient equipment operation and prevent damage and water leakage, reducing water usageand alleviating water resource pressure.The EHS Leadership Groupand the EHS ExecutionGroup implementedrelevant policies andregulations concerningwater conservation.
Efforts were made to strengthenthe management of wastewaterdischarge and enhance therecycling of cooling water,ensuring the rational utilizationof water resources.
In alignment withthe directivesof the EnergyLeadershipGroup, regularinspection andmaintenance ofthe Company's tapwater pipelinesand public faucetswere conductedby the ExecutionGroup to prevent"running,overflowing,dripping andleaking".
Energy-using departmentswere responsible for the overallstatistics, management andsupervision of water usage,adhering strictly to relevantnational regulations in this respect.
Comprehensive water conservationmeasures were carried out throughoutall workshops and departments in theCompany, with prompt repair actionstaken in cases of damaged or leakingpipelines and public faucets.
EHS took charge ofthe supervision andmanagement of firefightingwater across all bases.
Employees in various workshopsactively engaged in waterconservation actions, increasingtheir consciousness regardingwater conservation and curbing thewaste of continuous water flow.
Water Management
of Goneo
Water Resource Management
6566Embracing Green Ecology, Illustrating the Tapestry of Sustainable DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Goneo's Water Usage
DisclosuresUnit202120222023
Total WaterConsumption(= Total WaterWithdrawal -Total
Discharge)
m
671,984779,742948,414
In July 2023, Goneo embarked on a transformative journey by introducing a centralized watersupply system for precision carving machines at its glass factory. This pioneering initiative aimedto revolutionize water resource utilization, significantly curbing fresh water consumption by animpressive 1,340 liters per minute.
Case Technical Transformation of Water Conservation Project
A Glimpse of the Centralized Water Supply for PrecisionCarving Machines at the Second Branch of Goneo Electric
Goneo categorically manages various emissions generated during production and operations, includingair pollutants, wastewater, general waste, and hazardous waste. Strict adherence to relevant national lawsand regulations, along with the establishment of systems such as theRegulations on the Management ofHazardous Waste and General Industrial Solid Wasteand theSelf-monitoring Management System forPollution Sources, ensuring compliance and standard emissions by taking corresponding measures.Goneo identifies the types of pollutants produced in production and operational processes within it andits subsidiaries, monitoring and managing them according to corresponding emission standards. Duringthe reporting period, the waste gas, wastewater, and other major pollutants of Goneo's licensed pollutantdischarge departments were all up to standards in an organized manner.
Refinement in Pollution Control
At the spray booth of the coating plant of Goneo, a state-of-the-art water recycling methodologywas in place. The original water, combined with PAC, PAM, or AB agents, underwent a meticulouscoagulation process, resulting in the formation of floc sedimentation. Following this treatment, watertreated with PAC journeyed into the flotation tank, where aeration masterfully orchestrates impeccablesolid-liquid separation. The ensuing sediment and floating scum elegantly find their way into the sludgeconcentration tank, while the clarified liquid proceeds to subsequent oxidation processes.This remarkable treatment process boasted a COD removal rate of 15% and an SS removal rate of95%. The water underwent a breathtaking transformation from a murky black to a pristine, colorless,and transparent state, flawlessly meeting production requirements while dramatically reducing freshwater usage. The designed discharge volume impressively sits at a mere 1m
/h.
CaseChampioning Water Recycling Techniques
Water Recycling Process Flow Diagram
Circulating water from
Spray RoomCirculating water of waste
sprayOther clean water
Integrated combined
air flotation tank
Reuse line
Overflow300m
/h
40m
/h
Alkali/PACdispersant/PAM/
defoamer
Clean-water reservoirCirculating watercollection pool
6768Embracing Green Ecology, Illustrating the Tapestry of Sustainable DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
WasteTypes
Waste GasWastewaterHazardous Waste
WasteCategory
· Acetate esters· Benzene
derivatives· Non-methane totalhydrocarbons
· Particular matter· Nitric oxides· Hydrogen sulfide· Tin and its
compounds
· Nitric oxides· Sulfides· Odor concentration
· PH· Color· Odor and taste· Visible matter· Total bacterial count· Total coliforms· Turbidity· Suspended solids· Chemical oxygendemand· BOD5· Ammonia nitrogen· Total phosphorus· Total nitrogen
· Physicochemical sludge ofsewage treatment facilities
· Waste iron packing drums· Filtration adsorbent waste· Paint residue· Mold cleaning solution
(electrolyte)· Waste packing drums· Contaminated waste· Waste mineral oil· Waste ink cartridges,
selenium drums, carbon
ribbons
· Waste activated carbon· Waste paint drums· Waste cutting fluid· Waste mold cleaning
solution
· Waste selenium drums,ink cartridges· Spray water (granulation)· Waste wiping cloths· Wire cutting/electricaldischarge machining fluid· Waste electrolyte· Waste mold cleaningsolution· Waste emulsified liquid· Waste emulsified oil(waste saponified oil)· Cleaning mold productionwaste· Waste alcohol, wastecleaning agent· Waste circuit boards· Screen cleaningwastewaterMethodsof Disposal
Utilizing six types ofwaste gas treatmentequipment, weselectively adsorbedand removed variouspollutants from thewaste gas.
Spray water treatmentfacilities wereemployed to subjectthe wastewater toprocesses suchas air flotation,Fenton reaction, andbiological methods.
The Company engaged a third-party accredited unit todischarge hazardous waste in an organized manner.
In a committed effort to continually reduce waste and optimize resource usage, Goneo has embarked on aseries of environmental enhancement initiatives aimed at significantly curbing waste emissions.Goneo's Involvement with Three Wastes and Disposal Methods
Goneo's Discharge of Three Wastes
DisclosuresUnit2023
Wastewaterdischarge
data
Total wastewater dischargem
209,136Chemical oxygen demand (COD)mg/L87Biochemical oxygen demand (BOD5)mg/L33.4
Suspended solidsmg/L11Ammonia nitrogenmg/L10.2Total phosphorusmg/L0.872
pH-6.9Total general solid wasteTon7,801Total hazardous wasteTon747.1552
Goneo launched a project in October 2023 to transition from oil-based paint to water-based paintin the coating plant, aiming to reduce operational and maintenance costs of existing waste gastreatment facilities and minimize the production and disposal volume of hazardous waste. Thisproject anticipates achieving a 50% shift to water-based paint usage by the close of 2024.
Oil-to-Water Conversion Project at Coating Workshops forDiminished Hazardous Waste Generation
Oil-to-Water Conversion Project at the Electric Appliance Coating Workshop of Goneo
In May 2023, Goneo rejuvenated the filtration segment of the coating plant's waste gas treatmentfacilities, effectively addressing the persistent challenge of elevated differential pressure during wheelregeneration, which led to heightened natural gas consumption within the RTO. As of the end of thereporting period, the Company successfully slashed natural gas expenses by RMB 234,200.
Case Zeolite Wheel Replacement for Substantial Natural Gas Reduction
Zeolite Wheel Replacement at the Electric Appliance Coating Workshop of Goneo
Case
HARMONIOUSDEVELOPMENT
SDGs
Our key issuesProtection of Employees’ Rights and InterestsOccupational Health and SafetyFocusing on Talent DevelopmentProviding Diverse Well-beingSupporting Public Welfare and Charity
Cultivating Uni?ed Corpo-rate Drive through Harmo-nious Development
Embracing a human-centric ethos, Goneo wholeheartedly respects and safeguards thefundamental rights and interests of every employee, prioritizing their growth and profes-sional development, and nurturing their physical and mental well-being. Therefore, itprovides diverse welfare, thereby fostering mutual advancement between employees andthe Company. Meanwhile, the Group has actively shouldered social responsibility, andorganized and participated in charitable undertakings to foster harmonious societal prog-ress, cultivating a unified corporate drive to propel sustainable and high-quality enterprisedevelopment.
7172Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Goneo observed strictly relevant national laws and regulations such as theLabor Law of the People's Republicof Chinaand theLabor Contract Law of the People's Republic of China. It respected and protected humanrights, and regulated employment procedures to effectively safeguard the legitimate rights and interests of itsemployees. Goneo rigorously developed theManagement Regulations on the Recruitment of Administration/Marketing Employees,and theManagement Measures on Protection for Female and Underage Workers. Weentered into labor contracts with our employees pursuant to law. We firmly prohibited the employment and useof child labor, and resisted any forced labor, so as to provide equal employment opportunities for all candidatesand employees. Goneo undertakes that it will never discriminate against candidates or employees as a result ofgender, age, race, color, religion, nationality, disability, or retirement.
Under the umbrella of legality and compliance, Goneo consistently hones its compensation andperformance management system, factoring in industry market dynamics, actual business endeavors,and future growth strategies. In terms of determining salaries, Goneo adheres to the principles of"performance-guided, market-competitive, resource-inclined, legal and compliant, comprehensive,and guiding". Furthermore, it also aims at crafting a relatively equitable compensation frameworkfor all employees while also carving out a broad space for incentive structures, thereby fully ignitingemployees' fervor and proactivity. Regarding performance assessment of employees, Goneo hasrefined and updated theEmployee Performance Management Regulations, conducting advocacy onperformance management systems and processes through the Group's Performance ManagementCommittee, the Human Resources Center, and human resources departments of the business unit forroutine performance assessment.
Compliant and Equitable Employment Practices
Employee Compensation and Incentives
Protection of Employees' Rightsand Interests
Goneo diligently upholds fair and equal employment principles, legally safeguarding the legitimate rightsand interests of employees, and providing an equitable and just workplace environment. Furthermore, itemphasizes salary and welfare assurances to ensure that employees receive fitting rewards, collectivelyforging a brighter future.
Key Performance
During the reporting period, theCompany hired
80 people with disabilities
36.92 % of the workforce
with female employees constituting
and military veterans
The labor contract signing rate stood at100 %
As of the end of the reportingperiod,the Company had a total of13,746 employees
Indicators20222023Total employees12,35113,746Female employees4,6355,075Minority employees1,0951,307Disabled employees3380
Age
Number ofEmployees (Person)
Aged 51 and above273Aged 41 to 502,064Aged 31 to 405,890Aged 30 and below5,519
EducationBackground
Number ofEmployees (Person)
Bachelor's degree
and above
2,402Junior college2,252Technicalsecondary schooland below
9,092
Principle ofresourceinclination
ComprehensivecompensationprinciplePrinciple oflegality andcompliance
Principleof marketcompetitiveness
Performanceresults feedbackand application
Performanceappraisal andreview
Performance-guided principle
Goal and plandevelopment
Performanceimplementationand coaching
Compensation Determination PrinciplePerformance Management Process
Employee Structure by Agein 2023
Employee Structure by EducationBackground in 2023
7374Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
To fortify the enduring impact of incentives on core employees, the Company unveiled theRestricted StockIncentive Plan (Draft) of Goneo Group Co.,Ltd. for 2023in April 2023. This plan targets core managementpersonnel and key staff whose prior-year performance meets the criteria, totaling 750 individuals thatwere actually granted. The assessment period spans three fiscal years from 2023 to 2025, with an annualevaluation conducted each year. Moreover, the Company issued theMeasures for the Administration ofImplementation Assessment of the Restricted Stock Incentive Plan of Goneo Group Co.,Ltd. for 2023tofurther refine Goneo's corporate governance structure, and establish and improve incentive constraintmechanisms. This move ensures seamless implementation of the restricted stock incentive plan 2023 andmaximizes the role of this incentive plan, thereby ensuring the fullest realization of its development strategyand operational objectives.
Goneo gathered employee opinions and suggestions through the Workers' Congress and daily work, assigningdedicated management personnel to respond promptly and follow up on addressing employee concerns. It evenestablished extensive communication channels and actively listened to the voices of employees.
To standardize democratic management and oversight mechanisms and encourage contributions andopinions of employees to the Company's development, Goneo leveraged platforms for employees tovoice their concerns and conducted surveys on integrity satisfaction, which fully guarantee their rights toinformation, participation, expression, and supervision.
Democratic Management
In May 2023, Goneo organized the second session of the fifth Workers' Congress, where various workreports and management systems were deliberated and sanctioned, collective wage negotiationstook place, and theCollective Contractand theCollective Wage Agreementwere executed. A neworganizational structure was elected as well, further advancing its democratic management to newheights.
CaseDemocratic Management Reached New Heights
Employee Feedback Platform
Goneo has established and consistently refined its occupational health and safety management system,formulating numerous regulations for safety in production and occupational health. Each year, the Companyconducts reviews and ongoing improvements in line with legal requirements and other regulations,considering its operational status. In 2023, Goneo revised various regulations such as theEnvironment,Occupational Health and Safety Management Manual and theEquipment Safety Management System.
Occupational Health and Safety Management System
Occupational Health and SafetyHolding fast to the EHS policy of "precedence to people, protection of employee health; regulation ofbehaviors, security of safe production", Goneo continues to fortify its occupational health managementsystem, bolster emergency safety management, and enhance resilience to safety risks. It has alsoconducted diverse training activities, with a view to comprehensively elevating the management level andhealth and safety awareness of relevant personnel.
TypeDocument Name
Safe Production
Equipment Safety Management RegulationsSafety Management Regulations for Special Equipment
Fire Safety Management RegulationsSafety Management Regulations for Hazardous OperationManagement Regulations on Lifting Ropes and Tools
Electricity Safety Management RegulationsHazardous Chemicals Management Regulations
Occupational Health
Regulations on Prevention and Control of Occupational DiseasesManagement Regulations on Occupational Health Protection Facilities
Management Regulations on Labor Protection Articles
Stakeholder Control
Safety Management Regulations on Stakeholders
Occupational Health and Safety Management System of Goneo
7576Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
System Certification:
Goneo's ISO45001 Occupational Health and Safety Management System Certification (ISO45001)
To comprehensively enhance safety emergency capabilities and effectively respond to safety accidents,Goneo has established theEmergency Preparedness and Response Control Proceduresand theERTOrganization Management Regulations, as well as other emergency management systems.
These systems require that when an accident occurs, the on-site person in charge should quickly organizethe department's ERT first-level response team according to the response procedure requirements, andassess the on-site situation:
Safety Emergency Management
Safety Emergency Management Procedure of Goneo
It is necessary to rapidly carry out emergency rescue work; according to theirroles, all personnel are divided into rescue teams, support teams, evacuationteams, medical teams, etc.
If the ERT first-level organizationeffectively deals with the accidentthrough emergency rescue anddisposal
It is necessary to report to the second-level ERT leaders at the base, whowill issue the order to establish the second-level ERT response team, swiftlyconvene the members of the second-level ERT response team, and rush tothe scene to carry out emergency rescue work. All personnel are divided intoguidance teams, rescue teams, support teams, evacuation teams, medicalteams, etc.
If the ERT first-level organizationcannot effectively deal with theaccident through emergencyrescue and disposal
The second-level ERT leaders are responsible for contacting external rescueforces such as government departments.
If the ERT second-levelorganization cannot effectivelydeal with the accident throughemergency rescue and disposal
Key Performance
Goneo has a total of
52 first-level ERT rescueorganizations
42 hazardous waste leakageemergency drills
10 confined space emergencydrills.
It also has5 second-level ERT rescueorganizations
with624 full-time and part-time rescue personnel,covering
various workshops and teams of the entire Group
20 scald emergency drills42 chemical leakage
emergency drills
12 vehicle accidentemergency drills
30 personnel electric shockemergency drills
84 fire emergency drills84 mechanical injury
emergency drills
The entire Group conducted382 emergency training and drills
including22 emergency drills ofelevators and lifts
36 fire evacuation drills
with120 full-time and part-time rescue personnel,covering the
five major production bases of Goneo
Mechanical Injury Emergency DrillEmergency Drill for Poisoning in Confined Spaces
7778Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Fire Evacuation Drill
On-site Safety Inspection
Based on the principle of "unified planning, hierarchical management and division of responsibility"and "safety must be ensured in production and business management, one who is in charge assumesresponsibility", the Company formulated theSafety Inspection (Hidden Danger Investigation) andGovernance System, which stipulates the items, contents, time, methods, rectification of hidden hazards,division of responsibilities and requirements for safety hazard inspection. The Company also formulated theProcedures for Hazard Source Identification, Risk Assessment, and Risk Control Decisionsto identify thehazardous sources affecting occupational health and safety in the Company's activities, products, services,and operations, and evaluate risks. This is also designated to determine and timely update unacceptableand major hazardous sources and specify control measures to reduce risk levels as the basis for confirmingits identification of hazardous sources, risk assessment, and control measures.To further enhance Goneo's EHS risk control management and effectively identify the core values of eachmodule and utilize them to form efficient management, Goneo, during the reporting period, optimized andimproved the risk control management, linking the risk control management modules into a systematicmanagement mode (four-level risk control) according to logical relationships, progressively managing andidentifying its core values to establish an efficient model.
At Goneo, our enduring commitment to advancing our capacity for preventing and controlling occupationaldiseases and nurturing our employees' understanding of occupational health, effectively preventingoccupational diseases and safeguarding the employees' occupational health and rights and interests hasbeen exemplified through consistent health training initiatives. Through a diverse array of approachessuch as lectures, case studies, and on-site simulations, the training is meticulously tailored to the specificroles and real-life situations of our employees. This ensures that the training is not only effective but alsoeminently practical.
Management and Control of Safety RisksHealth and Safety Training Activity
EHS Four-level Risk Control System
Key PerformanceIn 2023, the risk closure rate reached99.42%
In September 2023, Goneo conducted a targeted psychological health training session for managerialstaff and above. This session featured the expertise of Dr. Zhang Guiqing, a distinguished expertholding a special subsidy from the State Council, as well as a medical doctor and professor. The goalwas to deepen employees' grasp of mental health, enhance their own coping mechanisms, and fosterpositive mental attributes. This session not only facilitated learning and exchange among employeesbut also empowered managers to better comprehend and address workplace and life pressures.Furthermore, it introduced new pathways for recognizing and supporting the emotional stressexperienced by colleagues. Over 200 employees participated in this enriching training experience.
CaseMental Health Training
Hidden dangers
JHA
Risk map
Risk radar
Utilize thecomprehensivereporting of hiddendangers by allemployees, in allaspects, throughout allprocesses to discoverhidden dangers moreeffectively and controlrisks in a timely manner.
Gradually analyzeand control the risksof job steps, suitablefor on-site softwareoperation riskmanagement.
Use risk gradingmethods to categorizeon-site risks intohigh, medium, andlow levels, facilitatingmanagementpersonnel in allocatingresources to high andmedium risk areas.
Further classify risks,focus on importantweak links, highlightimportant weak linksfor tracking andclosing the loop.
Firefighting SkillsCompetition
In November 2023, aligning with the theme of the 32ndNational Fire Prevention Month, "Prevention First,Life First", Goneo orchestrated a firefighting skillscompetition. The event encompassed challenges suchas the "60-meter single hose reel two-person operationcompetition" and the "60-meter fire extinguisher individualoperation competition". This initiative was aimed atcontinually fortifying the safety culture within Goneo,fostering an environment that prioritizes individual care,cherishes life, and underscores the importance of firesafety. A total of 70 individuals took part in this spiritedfirefighting skills competition.
Case"Excellence through Competition" - Firefighting Skills Showdown
7980Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Total number of employeesundergoing training
15,687employees
Goneo recognizes that outstanding talents serve as the driving force behind enterprise innovation anddevelopment. Consequently, it consistently refines its human resource management to provide an extensivearray of training resources for a diverse workforce, all while bolstering the professional development ofits teaching staff. During the reporting period, the Company steadfastly implemented the project trainingsystem pertaining to Goneo's spirit to comprehensively enhance the overall capacity of its employees,thereby activating their creativity in line with the expanse of high-quality corporate development.By tailoring diverse learning paths and promotion steps from newly graduated entrants to outstandingpotential managers, Goneo aims to cultivate a talented workforce characterized by diverse levels,outstanding qualities, and an indomitable spirit of innovation.
Employee Training
Focusing on Talent DevelopmentAt Goneo, we are steadfast in our pursuit of deepening human resource management, emphasizing talentretention and attraction, and fortifying our teaching faculty. We provide tailored training opportunities fordiverse employee categories, empowering them to chart their personal growth trajectories and offeringexpansive spaces for their individual development.
Case
Goneo's Training Camp 2023
BPD Demonstration Class
TTT Internal Lecturer Training Scene
Continuing Education and Training for Mechanicaland Electrical Professionals of Ningbo City in 2023
Key Performance
Total training hours for grassrootsemployees33,287 hours
Total investment in employeetrainingRMB 4,603,100Total training hours for mid-levelmanagement employees3,514 hours
Average duration ofemployee training
2.4 hours
Total training hours forsenior managementemployees847 hours大学生项目
Goneo's Spirit-related Training System
'Goneo' Training System
Onboarding trainingfor fresh graduatesand Goneo Academy'sgraduates
? Directed by GoneoUniversity."Niu" Plan Project
Capability enhancementtraining for outstanding/high-potential N-3managers
? Goneo University isresponsible for genericcompetency training;? Each department andbusiness unit is responsiblefor practice and professionalskills training.
"Gang" Plan ProjectN-3 Development Project
Capability enhancementtraining for outstanding/high-potential N-2managers
? Goneo University isresponsible for genericmanagement competencytraining;? Each departmentand business unit isresponsible for practice andprofessional skills training.
"Ben" Plan ProjectN-2 Development Project
Capability enhancementtraining for N-1 managers
? Goneo University is
responsible for leadershiptraining;? Each department andbusiness unit is responsiblefor practice and professionalskills training.
"Wu" Plan ProjectN-1 Project
College Student Project
Indicators202120222023Million Work Hours Injury Rate0.9337800.7743040.793001Health and Safety Investment (inten thousand yuan)
838.524762.333765.200
Occupational Health and Safety Key Performance Indicators
8182Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Goneo has developed and rigorously enforced theManagement Regulations on the Recruitment ofAdministration Employees, establishing a 19-level professional ranking system targeting management andprofession to meet the strategic developmental needs for human resources and the career progressionrequirements of its employees. Offering vertical and horizontal promotional channels within both internaland external sequences, the Company received reliable talent support to fortify organizational capacity andfoster mutual development between the Company and its employees.In addition to internal career development pathways, Goneo extended opportunities for career growth toexternal distributors and suppliers.
Goneo's talent echelon construction includes cadre teams and expert teams.For cadre teams, a series of leadership development projects such as the "Niu Plan -GangPlan -BenPlan -Wu Plan" supported the construction of cadre teams at various levels from "Supervisor-Manager-Director-General Manager". Annually, based on talent inventory results, the Company identified high-potentialreserves and enrolled them in corresponding leadership development programs.Regarding expert teams, Goneo conducted capability assessments based on competency models invarious job fields. It designed and implemented diverse professional development plans according toorganizational development needs and individual career development plans.Goneo organized an annual promotion and concurrently conducted internal competitive bidding forpromotions based on actual position vacancies. Annual promotion assessment process:
Career Development and Promotion
Internal Talent Echelon Construction
InternalExternal
CadresExpertsDistributors
Distributors'professional
managers
Distributors'executives
Unique employee development path
Goneo's Employee Development Pathway Diagram
Types of ConditionsAssessment DimensionsRejection CriteriaValues, discipline, seniorityMandatory CriteriaPrevious job level work experience and performance resultsAdequate CriteriaPosition proficiency requirements and position-specific experience
Reference Criteria
Management sequence: Goneo leadershipProfessional sequence: industry certifications, awards; national associate
senior titleBBS capabilityJob rotation willingness
Over-the-standard
Criteria
Previous job level tenure, performance results, and outstanding contributionsCross-level Criteria
Performance results, meeting basic and special consideration criteria,
potential assessment, BBS capability, and project experience
Year20222023
Number of promotions432468Number of managerialstaff promotions
2862Rate of positionpromotions
35.3%38.2%Rate of managerialposition promotions
21.1%46.7%
Promotion assessment process includes
During the reporting period, the Company's landscape of employeepromotion is as follows
Recommendationsfor promotion
Promotion
review360 assessment
Result approvaland disclosure
Evaluation during the
study period
8384Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Goneo established a distinctive value chain (suppliers, distributors, etc.) development pathway, offering internaloutstanding talents opportunities to develop into distributors or professional managers. Additionally, there areopportunities for outstanding talents to join the core management team of suppliers, including roles in suppliermanagement, on-site representative, and factory workshop management. As of the end of the reporting period,over 300 employees had made the transition into distributors or professional managers.
For frontline staff,Goneo fosters a diverseskill set, developing employees with multiplecompetencies through job rotations. Thisenhances their capabilities, enabling themto pursue work of significant value whilefostering mutual understanding of workcontent among colleagues, ultimatelypromoting better collaboration.
Regarding professionals and managers,rotation engenders involvement in cross-functional work, broadening knowledge basesand comprehensively mastering operationalcapabilities within the Company and acrossdepartments. This strategic movementprovides numerous opportunities to developemployees into versatile talents.
Staff Training
Professionals and Managers
Training
Goneo has consistently championed the nurturing of employee growth through well-suited job rotations,establishing avenues for cross-business unit/inter-departmental exchanges. This approach not only aidsin talent mobility but also invigorates the dynamism of our workforce.
External Career Development Pathway
Rotation and Shift Mechanism
Key Performance
During the reporting period, the Company facilitated the transfer of 336 talented individuals acrossbusiness units.
Goneo introduced theMid-to-High-Level Manager Learning and Growth Systemin 2014, advocatingand supporting core personnel to participate in external MBA and EMBA programs. As of the end of thereporting period, Goneo sponsored over 10 senior executives to attend such programs, reimbursing 80%of expenses for general managers and above of the business units, and 50% for directors. Furthermore,Goneo actively supported employees' pursuit of educational advancement at varying levels, selecting andproviding various educational paths and learning facilities for them.
Encouraging Educational Advancement
Benefit programs, selected based on internal development needs and employee requirements, span basicsecurity, life benefits, rest and holiday, learning and growth, and cultural development.
Employee Compensation and Benefits
Providing Diverse Well-beingEmployees' happiness and a sense of belonging directly impact an enterprise's stability and long-termcompetitiveness. Guided by a people-oriented approach, Goneo places high value on humane care for itsemployees, offering diverse benefits to enhance overall employee satisfaction.
During the reporting period, the Company diligently refined and unveiled the updatedEmployee BenefitsManagement Regulations. This involves enhancing regulations governing reimbursement standards forpre-employment medical examination expenses, lunch subsidies, housing allowances, transportationsubsidies, and more, encompassing a total of 7 comprehensive modifications. In parallel, we alsostrengthened and released an updated version of theRegulations on the Management of Social Insuranceand Housing Fund of Employees, which predominantly broadened guidelines related to work-related injuryidentification and reimbursements, maternity allowances or reimbursement of materntiy medical expenses,high-end medical procedures, personnel audit, and expense reimbursements for social insurance andhousing fund contributions in non-registered locations, alongside adjustments to other components,totaling 14 enhancements.Additionally, the Company formulated the ManagementMeasures for the Red Cross (Charity) Relief ofEmployees Facing Difficulties. This program allows employees facing difficulties to seek assistance fromthe Red Cross (Charity) Relief of the Company. After review, interviews, and research, the final amount ofassistance was determined and provided to those in need.
Goneo's Benefits
Basic security
Life benefitsRest and holidayLearning and growthTeam building
Social insurance and housing provident fund
Housing allowance
Education andtrainingPaid annual leaveSick leave,bereavement leave,marriage leave,prenatal check-up leave, paternityleave, etc.
Culture-relatedactivitiesTeam building andculture-relatedactivities
Migratory Bird HouseLoans for house purchase
Gifts for service anniversary, birthday,wedding, and childbirth careNew Year's allowanceLong-service memorial awardRed Cross (charity) relief Retirement care
Medical coverageCommercial insuranceHealth certificatemedical examination
High-end medicalinsuranceStatutory holidaysHigh temperature allowanceLunch allowanceNight shift allowanceHoliday careBenefits
Onboarding physical
examination
Occupational healthscreening
Goneo's Benefits
8586Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Key PerformanceDuring the reporting period, the average paid leave daysper person were6with 402 employees taking
childcare leave
96.94% return rate after
the leavethe Red Cross (Charity) Relief of the Company providedassistance totalingThe employee turnover ratedecreased by14%RMB 332,800 to employees in need.
96.94
Goneo integrated employee care into its corporate culture, fostering communication opportunities betweenthe Company and employees through diverse activities to strengthen cohesion and create a harmoniousworking atmosphere.
Employee Care Activities
Every year, Goneo organizesvarious activities such astrips, dinners, seminars,and birthday parties on adepartmental basis. Tripslasting over two daysqualify for one day of officialleave (once a year). Theimplementation of team-building activities effectivelyenhances the coordinationand cooperation abilitiesamong the teams, playing acritical role in enhancing theoverall combat effectivenessof the Company at variouslevels and throughout theorganization.
To inherit the spirit of Goneo,showcase employee presence,enrich the business life ofworkers, and build a uniquepath for the Goneo Culture,the 9th Annual Goneo CultureFestival themed "GrowingTowards the Sun" officiallycommenced in June 2023.By October, in addition to theopening ceremony, closingceremony, "the Olympics ofGoneo People", and talentshows, activities includedWorker Skills Competitions,"Goneo Guinness", and SkyOutdoor Cinema. The totalnumber of participants reached12,000 with over 170,000people showing interest,laying a solid foundation forthe dissemination of GoneoCulture.
Case
Case
Case
Caring for Employees
Team Building Activities in 2023
"Growing Towards the Sun" - The 9th Annual Goneo Culture Festival
Lu Xun Native Place - Sightseeing
Gupo Mountain - Sightseeing
Opening Ceremony of theCultural Festival
The Olympics of Goneo People
"Migratory Bird House" - SummerCare for Employees' Children
Condolences for Employees Staying in the Company during theChinese New Year
Condolences for EmployeesFacing Difficulties in the ChineseNew Year
Huangyao Ancient Town- Sightseeing
Indoor Team-building Activitiesfor Employees
Closing Ceremony Performanceof the Cultural Festival
Talent Show
8788Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
During the reporting period, the Company organized an outdoor fitness walking activity andscreenings for two types of cancers for female employees during International Women's Day,bringing warm wishes and greetings to female employees.
CaseCaring for Women Activity
Outdoor Fitness Walk Activity for FemaleEmployees in March
Cancer Screenings for FemaleEmployees in March
During the reporting period, Goneo's team-building activities coveredwith approved expenses exceedingdiverse-themed joyous meetings49,700 persons181 diverse-themed joyous meetingsRMB6 million.reaching 23,519 persons.
Key Performance
During the reporting period, the Company hosted
During the reporting period, the Company assisted employees facing difficulties. The FragrantMeadow Mutual Aid Association assisted a total ofwith a total assistance amount of
155 peopleRMB 623,200.
Supporting Public Welfare and Charity
Goneo actively shoulders social responsibilities and is committed to participating in public welfareundertakings. The Company has wholeheartedly embraced a spectrum of initiatives, including uplifting theelderly from poverty, bolstering education, extending medical aid, rural revitalization, and spearheadingenvironmental conservation and low-carbon efforts. This multifaceted approach exemplifies its dedicationto societal well-being, fostering mutual growth with local communities, reaping mutual rewards, andpropelling collective prosperity.
TypePhilanthropic EndeavorsAmount
PovertyAlleviation andAged Supporting
· June 2023: Commencement of the Cixi · Charity SpaceProject
· August 2023: Donation to Cixi City Elderly Care DevelopmentFund as the title sponsor (Round 2, Year 2)
· December 2023: Condolence for Guyaopu Village during theChinese New Year 2024, providing care for the elderly agedabove 70· December 2023: Condolences for the widowed and elderlyYi people in Ninglang during the Chinese New Year
EducationUndertaking
· February 2023: Student aid fund· July 2023: Goneo Charity Trust (Wuhan University)· July 2023: Longshan Town Education Fund· August 2023: Initiation of a scholarship for the new energyclass at the College of Science and Technology, NingboUniversity· September 2023: Student aid fund· November 2023: Goneo Charity Trust (Wuhan University)· December 2023: Goneo Education Fund under the CixiEducation System· December 2023: Dongrun Public Welfare Foundation· December 2023: Goneo Charity Trust (Wuhan University)
Healthcare
· January 2023: Condolences for medical staff involved inprevention and control efforts
· March 2023: AK Fund (Round 2, Year 5)· March 2023: AK Fund (Round 2, Year 5)· May 2023: Goneo Daycare Center· September 2023: Health and Sanitation System Assurancefor Residents of Guyaopu Village, Zhangqi Town
RuralRevitalization
· August 2023, construction of Guyaopu Village· December 2023, construction of Guyaopu Village
· RMB 3 million· RMB 7 million
Partial Public Welfare and Charity Projects
· RMB 5 million
· RMB 13,100· RMB 50 million· RMB 5 million· RMB 1 million· RMB 13,100· RMB 50 million· RMB 3 million· RMB 4.3 million
· RMB 1 million· RMB 3 million· RMB 2 million· RMB 300,000· RMB 1 million
· RMB 50 million
· RMB 500,000· RMB 849,000· RMB 10,000
8990Cultivating Unified Corporate Drive through Harmonious DevelopmentGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
In March 2023, the project that GoneoCharity Trust generously fundedWuhan University was held. During thereporting period, funded projects maderemarkable strides in scientific research,laboratory construction, talent nurturing,and scholarship allocation. A total ofRMB 320,000 was disbursed as "GoneoScholarships", with a substantial investmentof RMB 20 million in the Institute for GoneoNew Energy, Wuhan University.
In July 2023, coinciding with the PLA Founding Day, the Lvheng Welfare's project team ("Accompanyingwith Care") orchestrated a visit for Vietnam War veterans from Guanhaiwei Town. Goneo providedtransport for this activity and deployed five volunteers to actively participate throughout the activity.Veterans, welfare workers, and volunteers congregated at the Guanhaiwei Library, then journeyed toDinghai in Zhoushan, embarking on a voyage to rekindle their historical memories. They bore witnessto the heroism of the Nandong Memorial Truck and immersed themselves in the transformation of ruralculture at the newly built Grand Theater. At the Nandong Art Valley, veterans renewed their oath to theParty, reflecting on their initial commitment. Finally, they reveled in the beauty of nature on the beach ofZhangzhou Bay and deepened their bonds of friendship. This outing not only reminisced about historybut also cherished peaceful living, emphasizing the importance of remembering history, cherishingpeace, collaborating, and striving for a better future.
On June 10, 2023, Goneo orchestrated anoutdoor volunteer activity titled "CarryingForward Lei Feng Spirit" and "HealthAlways with Us". Forty-three volunteersdiligently safeguarded the "green home"at Dongpaoshui-Kaolaoshan in Cixi City.Volunteers managed waste disposal frombarbeque and bayberry festival events atDongpaoshui-Kaolaoshan, ensuring properwaste sorting and disposal at the mountain'sbase.
CaseCase
Case
Goneo Charity Trust Funds Wuhan University ProjectVeteran Care Volunteer Activity
"Carrying Forward Lei Feng Spirit" and "Health Always with Us"
Ceremony Scene of Goneo Charity TrustFunding Wuhan University Project
Veterans and Volunteers Posing for a Commemorative Photo
Scene of Garbage Clearance
In December 2023, Goneo inked astrategic cooperation agreement with theVeteran Volunteer Service Team. Thissocial organization, affiliated with the earlytown's retired military service station,primarily comprises veterans. Throughthis partnership, Goneo aimed to bolsterretired soldiers in their societal serviceendeavors, illuminating their dedication andcontributions.
Case Signing a Strategic Cooperation Agreement with the Veteran Volunteer Service Team
Snapshot from the Signing Ceremony
On November 23, 2023, Goneo's VolunteerClub visited the Qian Haijun Navy VolunteerService Center for benchmark learning.Inspired by Mr. Qian Haijun's selfless spirit ofgiving to others, the Club made a generousdonation of RMB 500,000 toward the culturalproject - "Warming Thousands of Home" - amovie about the deeds of Qian Haijun, a rolemodel in the era of learning.
CaseBenchmark Learning Visit to Qian Haijun Navy Volunteer Service Center
Commemorative Photo in Front of the Qian HaijunVolunteer Service Center in Cixi City
9192Index of IndicatorsGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Index of IndicatorsGRIStandards
Disclosures
Index of Chapters orSectionsGRI 1: Foundation 2021GRI 2: General Disclosures 20212-1Organizational detailsAbout the Report2-2Entities included in the organization's sustainability reportingAbout the Report2-3Reporting period, frequency, and contact pointAbout the Report2-6Activities, value chain, and other business relationshipsCompany Profile2-9Governance structure and compositionCompany Governance2-10Nomination and selection of the highest governance bodyCompany Governance2-12
Role of the highest governance body in overseeing the
management of impacts
Company Governance2-13Delegation of responsibility for managing impactsCompliance Control2-16Communication of critical concernsESG Empowerment2-27Compliance with laws and regulationsCompliance Control2-29Approach to stakeholder engagementESG Empowerment
GRI 201: Economic Performance 2016201-3Defined benefit plan obligations and other retirement plans
Protection of Employees'Rights and InterestsGRI 203: Indirect Economic Impacts 2016203-1Infrastructure investments and services supported
Supporting Public Welfare
and Charity203-2Significant indirect economic impacts
Implementation ofResponsible ProcurementGRI 205: Anti-corruption 2016205-2
Communication and training about anti-corruption policies and
procedures
Business Ethics
GRIStandards
Disclosures
Index of Chapters or
SectionsGRI 206: Unfair Competition206-1
Legal actions for anti-competitive behavior, anti-trust, and
monopoly practices
Business EthicsGRI 302: Energy 2016302-1Energy consumption within the organization
Energy ResourceUtilization302-3Energy intensity
Energy ResourceUtilizationGRI 303: Water and Effluents 2018303-2Management of water discharge-related impacts
Energy ResourceUtilization303-3Water withdrawal
Energy ResourceUtilization303-4Water discharge
Energy ResourceUtilization303-5Water consumption
Energy ResourceUtilization303-7
Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant
gas emissions
Energy ResourceUtilizationGRI 306: Waste 2020306-2Management of significant waste-related impacts
Refinement in Pollution
ControlGRI 308: Supplier Environmental Assessment 2016308-1New suppliers that were screened using environmental criteriaSupplier Management
GRI 401: Employment 2016401-2Benefits provided to full-time employees
Providing Diverse Well-
being401-3Parental leave
Providing Diverse Well-
beingGRI 403: Occupational Health and Safety 2018403-1Occupational health and safety Management System Certification
Occupational Health and
Safety
9394Index of IndicatorsGoneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
Readers' Feedback
Dear reader,Thank you for taking the time to read the2023 Environmental, Social and Governance (ESG) Report ofGoneo Group Co.,Ltd.amid your busy schedule. To continuously improve our report preparation andenhance the responsibility and level of Goneo Group Co.,Ltd., we sincerely invite you to provide valuablecomments and suggestions on the Report to help us make continuous improvements.
1.For Goneo, your stakeholder category is
□ Government □ Customers □ Employees □ Partners □ Environmental Organizations □ Community and Public
2.What's your overall evaluation of the Report?
□ Very Good □ Good □ Average □ Poor □ Very Poor
3. How do you rate the structural arrangement of the Report?
□ Very Reasonable □ Reasonable □ Average □Unreasonable □ Very Unreasonable
4. How do you rate the layout design of the Report?
□ Very Reasonable □ Reasonable □ Average □Unreasonable □ Very Unreasonable
5. How do you rate the readability of the Report?
□ Very Reasonable □ Reasonable □ Average □Unreasonable □ Very Unreasonable
6. Do you think the Report reflects the significant impacts of the Company on the economy, society, and the
environment?
□ Yes □Partially □ I Don't Know
7. How do you rate the clarity, accuracy, and completeness of the information, data, and indicators disclosed
in the Report? □High □Moderately High □ Moderate □ Moderately Low □ Low
8. How do you think the Company has performed in serving customers and protecting stakeholders'
interests?
□Good □ Average □ Poor □ I Don't Know
9. Do you have any further valuable comments or suggestions regarding the report preparation or
responsibility practices?
GRIStandards
Disclosures
Index of Chapters or
Sections
403-2Hazard identification, risk assessment, and incident investigation
Occupational Health and
Safety403-3Occupational health services
Occupational Health and
Safety403-4
Occupational health and safety: Worker participation, consultation,
and communication on occupational health and safety
Occupational Health and
Safety403-5Worker training on occupational health and safety
Occupational Health and
Safety403-6Promotion of worker health
Occupational Health and
Safety403-7
Prevention and mitigation of occupational health and safetyimpacts directly linked by business relationship
Occupational Health and
SafetyGRI 404: Training and Education 2016404-1Average hours of training per year per employee
Focusing on TalentDevelopment404-2
Programs for upgrading employee skills and transition assistance
programs
Focusing on TalentDevelopmentGRI 405: Diversity and Equal Opportunity 2016405-1Diversity of governance bodies and employeesCompany Governance
GRI 413: Local Communities 2016413-1
Operations with local community engagement, impactassessments, and development programs
Supporting Public Welfare
and CharityGRI 414: Supplier Social Assessment414-1New suppliers that were screened using social criteria
Implementationof ResponsibleProcurementGRI 416: Customer Health and Safety 2016416-1
Assessment of the health and safety impacts of product and
service categories
Protection of Customers'Rights and InterestsGRI 417: Marketing and Labeling 2016417-1Requirements for product and service information and labelingResponsible Marketing
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Goneo Group Co.,Ltd.2023 ENVIRONMENTAL, SOCIAL AND GOVERNANCE REPORT
*Data source: Shangpu Consulting Group; Over 70% of households in China either currently use or have used Bull products (electrical connections, wallswitches and sockets, LED lighting, digital accessories, etc.); Survey completed in August 2023.