Email:zqb@innovationmetal.comTel:010-66536198
Address:No.1808,Floor18,ExcelCentre,WudinghouStreet,XichengDistrict,Beijing
Innovation New MaterialTechnology Co., Ltd.
2023Environmental,Social andGovernanceReport
About the Report
Messagefrom theChairman
About Innovation New
Material
Company ProfileCompany CultureHonors & Awards
Key ESG Performances
GRI Standards Index
Contents
Sustainable Development
Management
Innovation Pioneering the GreenAluminum JourneyESG GovernanceCommunications with StakeholdersMaterialityIssue AnalysisInnovation New Material in Figures
Pursuing Green Cycle to
Promote Green
Development
Designing Green and Low-carbonProductsActively Responding to Climate ChangePracticing Environmental Protection
Green-driven Innovation andProduct-led DevelopmentDiving Deep into TechnologicalInnovationStriving for Excellent QualityProviding Quality Services
Practicing SoundManagement to PromoteResponsibility-Driven
Development
Improving Risk Prevention and ControlCapabilitiesStrengthening Business EthicsConstructionStrengthening Patent and BrandProtectionStepping Up Information SecurityEffortsBuilding a Sustainable Value Chain
Unite Efforts and Join Hands
to Forge Development
Together
Empowering Employees' GrowthProtecting Work SafetyFacilitating Harmonious SocialDevelopment
About the Report
TheReportisthefirstEnvironmental,SocialandGovernancereportpreparedandissuedbyInnovationNewMaterialTechnologyCo.,Ltd.(hereinafter''InnovationNewMaterial'',''theCompany''or''We'').TheReportfocusonmaterialESGtopicsofconcerntostakeholders,andisintendedtodisclosetheCompany'sstrategies,practicesandperformanceinEnvironmental,SocialandGovernance(hereinafter''ESG'')inanobjective,justandtransparentmannertopromotestakeholderstogainamorecomprehensiveunderstandingofInnovationNewMaterial.
Introduction
ThescopeoftheReportincludesInnovationNewMaterialanditssubsidiaries.ThestatisticalscopeofdataintheReporthasbeenmarkedthereinanddataiscalculatedinaccordancewithnationalregulationsorinternationalstandards.Unlessotherwisestated,theamountsintheReportaredenominatedinRMB.
Reporting Scope
TheinformationanddatacontainedintheReportcoverstheperiodfrom1January2023to31December2023(hereinafter''2023''or''thisyear'').ForthecomparabilityandcompletenessoftheReport,theperiodhasbeenextendedforwardandbackwardasappropriate.
Reporting Period
TheReportispreparedbasedontheGlobalReportingInitiativeReportingStandards(GRIStandards),theSelf-disciplineRegulationofListedCompaniesNo.1-StandardizedOperationbytheShanghaiStockExchangeandtheUnitedNationsSustainableDevelopmentGoals(UNSDGs).
Basis of Preparation
Feedback on the Report
Company abbreviationFull name of companyInnovation New Material, the Company, weInnovation New Material Technology Co., Ltd.
Innovation MetalShandong Innovation Metal Technology Co., Ltd.Innovation PrecisionShandong Innovation Precision Technology Co., Ltd.Suzhou ChuangtaiSuzhou Chuangtai Alloy Material Co., Ltd.Shandong Sheet MaterialsShandong InnovationCreative Sheet Materials Co., Ltd.Yuanwang Electrical TechnologyShandong Yuanwang Electrical Technology Co., Ltd.Shandong Chuang Yuan Renewable ResourcesShandong Chuang Yuan Renewable Resources Co., Ltd.
Chuanghui New MaterialShandong Chuanghui New Material Technology Co., Ltd.Chuangfeng New MaterialShandong Chuangfeng New Material Technology Co., Ltd.
Innovation BeihaiShandong Innovation Beihai Co., Ltd.Yunnan InnovationYunnan Innovation Alloy Co., Ltd.
QingDao Li WangQingDao Li Wang Precision Technology Co., Ltd.Inner Mongolia InnovationInner Mongolia Innovation New Materials Co., Ltd.Inner Mongolia LightweightInner Mongolia Innovation Lightweight New Materials Co., Ltd.
Index of Abbreviations for Company Members
0102
ThisReportcanbedownloadedandviewedontheCompany'swebsite(http://www.innovationmetal.com/)andtheShanghaiStockExchange'swebsite(http://www.sse.com.cn/).IfyouhaveanyvaluablesuggestionsontheReportorwouldliketoaccesstootherrelevantinformation,pleasecontactusthroughthefollowingchannels:
Email:zqb@innovationmetal.comTel:010-66536198Address:No.1808,Floor18,ExcelCentre,WudinghouStreet,XichengDistrict,Beijing
Message from the Chairman
0304
Astimepasses,opportunitiesarealsoconstantlyemergingandevolving.Theyear2023witnessedtherapidprogressofInnovationNewMaterialfollowingitslistingonthecapitalmarket,andayearwhentheresultsofourdevelopmentarerealized.Overthepastyear,wehaveadheredtotheprinciplesofsharingfuturewithouremployees,growingtogetherwithourcustomers,developingalongsideourpartners,andprogressinginsyncwithsociety.Wehaveachievedremarkablesuccessesinlow-carbondevelopment,productmanufacturing,technologicalinnovation,andmarketexpansion,whichlaidasolidfoundationfortheCompany'slong-termdevelopment.
Ayearofdeepeningcommitmenttogreendevelopmentandleadingthelow-carbonera.Facingtheseverechallengesoftheglobalclimatechange,wehavebeenfirmlycommittedtothepathofgreendevelopmentbybuildingacomprehensivedevelopmentsystemofgreenenergy,greenproduction,greenemissions,greenproducts,andgreenrecycling,integratingthephilosophyofgreendevelopmentthroughouttheentirelifecycleofourproducts.Wehavemadesignificantprogressintheconstructionofourindustrialchainofgreenaluminumduringtheyear.LeveragingtheuniqueadvantagesinresourcesofYunnanandInnerMongolia,wehavemadefulluseofhydroelectric,windandsolarpoweraluminumtocontinuetoexpandourpresenceinthefieldofsecondaryaluminum.Additionally,wehaveboostedenergyconservationandemissionreductionintheproductionprocesswhileincreasingtheproportionofrenewableenergy,whichsignificantlyreducedcarbonemissionsthroughouttheproductlifecycle.Bydoingso,wehaveprovidedlightweightandenvironmentallyfriendlyaluminumalloyproductstonumerousindustriesdomesticallyandabroad,contributinginnovativestrengthtothesustainable,green,andhealthydevelopmentofthealuminumindustry.
Ayearofacceleratingtechnologicalinnovationandrefiningqualitymanagement.WefirmlybelievethatinnovationisthepersistentdriverfortheCompany'sdevelopment,andthatqualityisthesolidfoundationofbrandreputation.Centeringaroundthecoreprinciplesoftechnologicalinnovationandhigh-qualitydevelopment,wehavecontinuouslyimprovedourinnovativecapabilitiesandproductionefficiency.Tomaintainaleadingpositioninthefiercemarketcompetition,wehaveintroducedandcultivatedtechnicaltalentswhileincreasinginvestmentintechnologicalinnovationandenhancingthelevelofintelligenceintheproductionprocess.Wehavebeencontinuouslystrengtheningourcustomer-centeredphilosophyandimprovingourqualitymanagementsystemtoensurethateveryproductandservicemeetsorevenexceedscustomerexpectations,bywhichwehaveestablishedagoodbrandimageinthemarket.Ourcommitmenttoinnovation-drivenandquality-firstprincipleshasinjectedstrongmomentumintothesustainableandhealthydevelopmentoftheCompanyandtheentireindustry,whichmanifestourwell-foundedconfidenceandenduringpursuitforthefuturedevelopmentoftheindustry.
Ayearofstrengtheningcorporategovernanceandforginganexcellentbrand.WehaveaprofoundunderstandingthatstandardizationisthecornerstoneoftheCompany'ssteadydevelopmentandhaveinvestedsubstantialeffortinit.Wehavealwaysadheredtotheprincipleofhonestoperationbycontinuouslystrengtheninginternalcontrolandriskmanagementtoensuretherationalityandcomplianceofcorporatedecisions.Wefirmlyupholdafairandcompetitivemarketorderwithafocustorespectandprotectintellectualpropertyrights,creatinglong-termvalueforshareholdersandcustomers.Wehaveestablishedlong-termandstablecooperativerelationshipswithoursupplierstojointlybuildasustainableecosystemalongtheindustrialchain,promotingthehealthydevelopmentoftheindustry.Inacomplexandevolvingmarket,wehaveadheredtoouroriginalaspirations,operatedwithintegrity,andpressedforwardsteadily,continuouslycreatingsustainablevalueforsociety.
Ayearoffulfillingsocialresponsibilitiesandbuildingaharmoniouscommunity.Asacompanyfullofwarmth,wehaveassimilatedsocialresponsibilitiesintoourcorporateculture.Werecognizethehardworkofeveryemployeeandsafeguardtheirworkplacerightsandinterestswhileenablingtheirgrowthanddevelopment,tocreateaworkingenvironmentcharacterizedbyhappinessandasenseofbelonging.Furthermore,weactivelyparticipateinsocialwelfareundertakingstogivebacktosocietythroughpublicwelfareaid,charitydonations,andothermeans.Indoingso,wehavepromotedpositiveenergyandbroughtwarmthandhopetosociety.Weholdthefirmbeliefthatfulfillingcorporatesocialresponsibilitiesisourinescapableduty,whichnotonlybenefitsemployeesbutalsoservesasasincerecontributiontosociety,drivingoursustaineddevelopment.WewillunswervinglyadvanceESGpracticesinourfuturedevelopment,withgreaterdeterminationandinvestmentinpromotinggreendevelopment,fulfillingsocialresponsibilities,andstrengtheningcorporategovernancetocapturethedevelopmenttrendsoftheneweraandaccuratelyseizestrategicopportunities.Wewillcontinuetocollaboratewithglobalpartners,withamoreopenmindsetforchangeandmoresolidadvancesforthefuture,tojointlyexplorenewpathsfortheCompany'ssustainabledevelopment.Inthisprocess,wewillworkcloselywithallsectorsofsocietytoanchorourgoalsanduniteourefforts.Wewillstrideforwardonthejourneyof''becominganindustryleaderandbuildingacentury-oldenterprise''tocreatemaximumvalueforshareholders,customers,employees,society,andotherstakeholders,usheringinamorebrilliantandgloriousfuture!
Mr. Cui Lixin
Chairman of Innovation New Material
050606
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
AboutInnovation NewMaterial
Company Profile
InnovationNewMaterialisalarge-scale,modernandcomprehensiveenterprisemainlyengagedintheproductionandoperationofaluminumprofilesfor3Cconsumerelectronics,aluminumprofilesforvehiclelightweighting,sheetsandfoils,aluminumrodsandcables,aluminumalloyrods,structuralcomponents,etc.Positionedasoneoftheworld'slargestproductionandresearchanddevelopmentbasesforaluminumalloymaterials,theCompanyhasmaintainedaleadingglobalmarketshareinaluminumalloyrodsformultipleconsecutiveyears.TheCompanyspecialisesintheresearch,development,production,andprocessingofaluminumalloysandtheirproducts,offeringcomprehensivesolutionsforthealuminumalloyprocessingindustry.Itsproductsarewidelyusedinvariousfieldssuchas3Cconsumerelectronics,vehiclelightweighting,construction,andnewenergy.InnovationNewMaterialhasestablished14industrialparksacross4provinces(autonomousregions)inChina,includingShandong,Jiangsu,InnerMongolia,andYunnan,aswellasoverseaslocationsinVietnamandMexico.Withatotalof10,724employees,theCompanyachievedatotalproductionoutputof4.7196milliontonsin2023,whichinvolving3.4093milliontonsofrods,87,800tonsofprofiles,551,500tonsofsheetsandfoils,671,000tonsofaluminumrodsandcables,and23.1262millionstructuralcomponents.
Milestones
Foundedin2007,InnovationMetalisatechnology-basedenterprisefocusingonresearch,development,production,andprocessing,whileprovidingcomprehensivesolutionstothealuminumalloyprocessingsector.Wepioneeredauniqueprocurementmodelthatensuresliquidaluminumremainsuntouchedbytheground.ThisinnovativeapproachforgedastrategicpartnershipwithWeiqiaoPioneeringGroup,theworld'slargestprivately-ownedelectrolyticaluminumenterprise.Thiscollaborationmarkedasignificantmilestoneinourjourney,asitwasthefirsttimeweformallysetthedevelopmentgoalof''buildingacentury-oldenterprise.''
2007-Amomentousyearofestablishment,openinganewchapter,aswesolidifiedfoundationsforacentury-oldenterprise
In2013,wesuccessfullytackleddifficultiesrelatedtohigh-strengthsuperconductivityinaluminumalloycables.Assuch,duringthe13thFive-YearPlanperiod,ourproductswerechosenbyover70%ofthebiddingwinnersforthenationalwest-to-eastpowertransmissionprogram.
2013-Fortifyingdiversifiedgrowth,wesurpassedindustrybenchmarks
In2018,wedevelopedasoneofthecoresupplierstotheworld'slargest3Cconsumerelectronicsresearch,development,andmanufacturingenterprises.Assumingapivotalrole,wetookontheresponsibilityofdeveloping,prototyping,andindustrializingaluminumalloymaterialsforvariousinnovativeproducts.Thisendeavorwaswidelyacknowledgedbyourhigh-qualitycustomersinthe3Cconsumerelectronicssectorandbeyond.
2018-Navigatingtherapidsandraisingthesails,weestablishedaglobalpresencewithvibrantindustrialgrowth
Since2021,wehaveembarkedonajourneytosupplyaluminumalloymaterialsinbulktotheworld'sleadingmanufacturersofnewenergyvehicles,remainingvigilantandresponsivetothedemandsofthehigh-endmarket.Throughoutthisjourney,wehaveconsistentlypositionedourselvesattheforefrontofindustrytechnology.
2021-Unveilinganewchapterinvehiclelightweighting,wesetglobalbenchmarksintechnicalexcellence
TheCompany'ssignificantassetrestructuringwasapprovedbytheChinaSecuritiesRegulatoryCommissionon13October2022.Subsequently,inDecember2022,wesuccessfullylistedonthemainboardoftheShanghaiStockExchange,withthestockabbreviation''InnovationNewMaterial''andstockcode''600361''.Byleveragingthecapitalmarket,wehaveachievedcontinuousoptimizationofourcapitalstructureandsustainedenhancementofourdevelopmentmomentum.
2022-''Dream-PursuingPlan''remainedunwavering,asweshapedthefuturethroughinnovation
0708
AccordingtostatisticsprovidedbytheChinaNonferrousMetalsFabricationIndustryAssociation,innovationmetal'sproductsstandattheforefrontoftheindustryinvariousaspects,suchasenergyconsumptionperunitproduct,emissionsofpollutantsperunitproduct,rawmaterialconsumptionperunitproduct,solidwasteutilization,andcarbonemissionsperunitproduct.Thiscomprehensivecommitmenttogreendevelopmentplacesuswithinthetop10%oftheindustry.
2023
Awarded among the EighthBatch of ManufacturingIndividual Champions(Aluminum-Magnesium-Silicon Alloy)2022
Ranked No. 3 globallyand No. 1 nationally in3C electronic aluminumprofiles market share
2023Ranked 169th in the List ofTop 500 ChineseManufacturing Enterprises
2023
Ranked 98th in the List of Top
500 Chinese PrivateManufacturing Enterprises
2023Ranked 335th in theList of Top 500 Chinese
Enterprises
2023
Ranked 149th in the List ofTop 500 Chinese PrivateEnterprises
2023Ranked 16th in the List of Top100 Shandong PrivateEnterprises
2023
Ranked No. 1 globally inround aluminum alloyingot market share
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
Company Culture
EnterprisePhilosophyA beautiful futurethrough innovation
Enterprise
MissionPropelling industryprogress throughscientific andtechnologicaladvancements
Enterprise
EthosPioneering andinnovating through
a truthful andpragmaticperformance
BusinessPhilosophyCustomersatisfaction is thekey driving force fora wider presence
EnterpriseObjectiveAspiring to industryleadership andbuilding a century-
old enterprise
Honors & Awards
InnovationNewMaterialhasalwayspracticedthesustainabledevelopmentstrategyandisrecognizedbygovernmentandinstitutionsinvariousaspects.In2023,theCompanyanditssubsidiariesreceivedanumberofhonors&awards,includingbutnotlimitedto:
DateName of Honors & AwardsIn December2023
Innovation New Material joined the Aluminum Stewardship Initiative (ASI).In December
2023
Innovation New Material was nominated for the Shandong Provincial Governor Quality Award.
In December2023
Yunnan Innovation Alloy Co., Ltd.
?was shortlisted as No. 29th in the ''2023 Top 100 Yunnan Enterprises'' list, rising by 34 positions from theprevious year;
?was ranked 15th in the ''2023 Top 100 Yunnan Manufacturing Enterprises'' list, rising by 18 positions fromthe previous year;
?was shortlisted 8th in the ''2023 Top 100 Yunnan Private Enterprises'' list, rising by 23 positions from theprevious year.
In November2023
TheCode for Control of Wastewater , Waste Gas and Scrap Waste from Aluminum and Aluminum Alloy
Melting and Castingled and prepared by Innovation Metal and Suzhou Chuangtai Alloy Materials Co., Ltd.
won the first prize of the Excellence Award for Technical Standards awarded by the National Nonferrous
Metals Standardization Technical Committee.
Innovation Metal participated in preparing theAluminum Alloy Ingots for Aviation Products, which won the
second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals
Standardization Technical Committee.In November2023
Innovation Metal was awarded the title of ''National Green Factory''.In October
2023
Innovation Metal was funded by 2023 Shandong Provincial Key Research and Development Programme
(Major Scientific and Technological Innovation Project).In September
2023
Innovation Metal
?ranked 149th in the List of Top 500 Chinese Private Enterprises for 2023, rising by 23 positions compared
to the previous year.
?ranked 98th in the ''List of Top 500 Chinese Private Manufacturing Enterprises in 2023'', rising by 7positions compared to the previous year.In September2023
Innovation Metal was successfully selected into the ''Provincial Quality Benchmarking''.
0910
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
Honors & Awards
DateName of Honors & Awards
In September2023
Innovation Precision's project -''lightweight alloy material application in rail transit with an annual output of100 thousand tons'' was shortlisted for Shandong New Material Innovation and Application DemonstrationProjects.In September
2023
Yunnan Innovation Alloy Co., Ltd. was ranked as the 19th of the Top 100 Non-Public Enterprises in YunnanProvince in 2023 and 16th of the Top 20 Non-Public Manufacturing Enterprises in Yunnan Province in 2023.In August2023
our Company ranked 23rd in the List of China's top 50 nonferrous firms in 2022, advancing by two positions.In August2023
Innovation Metal was shortlisted in the ''Top 100 Shandong Private Enterprises'' list for the 11th consecutive
year, ranking 16th, advancing by one position from the previous year.In August2023
Innovation Precision and Yuanwang Electric Power were awarded the Shandong provincial-level ''Green
Factory'' title for 2023.In August2023
the national standard GB/T 13586-2021 secondary aluminum prepared by the Company was approved as
Shandong Original Technical Standard Project.In June
2023
Innovation Metal and Innovation Precision were selected into the ''Cultivation List of Shandong New Material
Leading Enterprises''.In June2023
Innovation Precision was accredited in the cultivation list of first batch of ''Morning Star Factories'' for the
digital economy in Shandong Province.In June2023
Innovation Metal was awarded as the ''Outstanding Unit for Blood Donation Organisation'' in Shandong
Province.In June
2023
Innovation Precision was certified as Shandong ''One Enterprise, One Technology'' R&D Centre, and Binzhou
Industrial Design Centre.In February2023
Innovation Metal was awarded the title of ''National Advanced Private Enterprise in Employment and Social
Security''.In February2023
The ''Shandong Engineering Research Centre for New Aluminum Alloy Materials with Ultra-strength and High
Toughness'' was approved the optimization and integration by the Shandong Development and Reform
Commission.In January2023
Innovation Metal was honored as ''The Most Innovative Enterprise in 2022''.
1112
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
1314
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
SustainableDevelopmentManagement
ESG governance
InnovationNewMaterialvaluesESGgovernancehighly.Withthegoalofrealizinghigh-qualitysustainabledevelopmentoftheCompany,wecomprehensivelyintegrateESGconceptsintothedailymanagementsystemoftheenterprise,respondtotheconcernsofcustomers,employees,investorsandotherstakeholdersabouttheESGperformanceoftheenterprise,andcontinuouslycreatevalueforallstakeholders.
InordertobetterpromoteESGgovernance,InnovationNewMaterialhasestablishedanESGmanagementsystemwiththeBoardofDirectorsasthesupremegoverningauthority,theStrategyandESGCommitteeundertheBoardofDirectorsasthespecializedcommittee,theESGWorkingGroupasthecoordinatingauthorityfororganizingtheESGworkofitssubsidiaries,anditssubsidiariesasthemainexecutingagencies,thuslayingthefoundationforthemanagementofESGrelatedmattersoftheCompany.
ESG governance structure
1516
TheBoard ofDirectors
Strategy and ESG
Committee
ESG Working Group
?ResearchesanddraftsESGstrategies,actionplansandmanagementsystems,andorganizesthepreparationofESGreportsandotherESGdisclosures;?FocusesonESGrelatedrisksandissuesindaily
management,responsibleforliaisonandcommunicationwithconsultingandratingagenciesandESGmanagementtraining;?CoordinatesandpromotestheimplementationofESG
relatedmatters,submitstheinformationrequiredfordecision-making,andfullyfulfilsthedailyESGmanagementduties.
?Asthehighestdecision-makingauthorityforESGwork,itisresponsiblefortheCompany'sESGstrategyandreporting.ItregularlylistenstoandreviewsreportsfromtheStrategyandESGCommitteeontheESGworkprogress,andprovidesguidanceontheESGworkguidelines.
Innovation Pioneering the GreenAluminum Journey
Asglobalclimatechangebecomesincreasinglyprominentandthenational''CarbonPeakingandCarbonNeutrality''goalsmakesteadyprogress,thealuminumindustryisfacingunprecedentedchallengesingreentransformationforitsmassiveenergyconsumptionandhighcarbonemissions.Thistransformationservesasaninevitabletrendforindustrydevelopmentaswellasaprofoundresponsetoenvironmentalprotectionandsustainabledevelopment.Enterprisesintheindustryarebeingdrivenbytheerawithanurgentneedtoacceleratetechnologicalinnovationtopromoteindustrialupgradingandfacilitateprofoundtransformation.Inthistransformation,secondaryaluminum,asarepresentativeofgreenandcirculareconomy,isreceivingincreasingattention.Thecomprehensiveenergyconsumptionofsecondaryaluminumisonly5%ofthatofprimaryaluminum.Besides,thecarbonfootprintofprimaryaluminumis8.6tonsofCO
pertonofaluminum,withthatofsecondaryaluminumbeingonly0.5,whichrepresentsamere5.8%ofthegreenhousegasemissionsofprimaryaluminum.Thismeansthatforeveryadditionaltonofsecondaryaluminumutilized,onetonofprimaryaluminumproductioncanbeavoided,therebyreducing94.2%ofcarbonemissionsandyieldingsignificantsocialbenefits.Thetremendouspotentialandadvantagesofthesecondaryaluminumindustryinenergyconservationandenvironmentalprotectionarecrucialforthehealthy,stable,andlong-termdevelopmentofthealuminummarket.Asaleadingenterpriseinthealuminumalloysector,InnovationNewMaterialhasalwaysadheredtothephilosophyofgreendevelopment.TheCompanyisfullycommittedtobuildingagreenlifecycleforitsproductsandleadingtheindustryinembarkingonagreenaluminumjourneythroughdevelopinghigh-endflagshipgreenproducts,boostinginvestmentincarbonreduction,andestablishingcloseindustry-widecooperation.Developinghigh-endflagshipgreenproductsistheessentialcoreofgreendevelopment.Innovation
NewMaterialperceivesinnovationasthekeytogreentransformation.TheCompanyengagesindeep''industry-academia-research''cooperation,initiatingcollaborativeeffortstotackletechnicalchallengesintheindustrywithrenowneduniversitiesandresearchinstitutionsbothdomesticallyandinternationally.Asaresult,theCompanyhassuccessfullydevelopedaseriesofhigh-performancealuminumalloyproductswithlowenergyconsumptionandemissions.Theseproductshavenotonlymetthemarketdemandforhigh-qualityaluminumalloysbutalsoeffectivelyreducedtheenergyconsumptionandcarbonemissionsduringproduction.Thelaunchofthesehigh-endflagshipgreenproductshaveenhancedtheCompany'smarketcompetitivenesswhileprovidingstrongsupportfortheindustry'stransformation.
Boostinginvestmentincarbonreductionisanimportantmeanstoachievegreendevelopment.The
Companyhasenteredthesecondaryaluminummarketandmadeproactiveinvestmentsleveragingupstreamhigh-qualityandgreenrawmaterialstoexpeditetheentryofvariousdownstreamcastingandextrusionaluminumalloyproductsintothefieldsofgreenandcleanenergy,therebybuildingagreenlifecycleforitsproducts.Onthisbasis,theCompanycontinuestoexpanditsinvestmentandconstructioninsecondaryaluminumalloyprojects,sparingnoefforttopromotethegreendevelopmentofthealuminumindustrychain.
Establishingcloseindustry-widecooperationisacrucialapproachtodrivegreendevelopment.The
Companyleveragesitsadvantagestoestablishclosepartnershipswithupstreamanddownstreamenterprises.Throughdeepcooperationwithupstreamsuppliers,theCompanyensuresthestablesupplyofhigh-quality,greenrawmaterials,providingpowerfulassurancesforgreenproduction.TheCompanyalsoactivelycollaborateswithdownstreamcustomerstojointlydevelopandpromotenewproductsthatmeetthemarket'sdemandforgreenaluminummaterials.Simultaneously,theCompanyengagesinvigorousexchangesandcooperationwithpeerenterprisestojointlypromotethegreentransformationandindustrialupgradingofthealuminumindustry.
?ServesasaspecializedcommitteeonESGmanagementunderthe
BoardofDirectors,andreportsregularlytotheBoardofDirectorsonmajorESGmatters;?ResearchesandproposesESGstrategies,policiesandworkplanning,
andconsidersESG-relatedmajorriskresponseprograms,ESGreportsandotherpublicdisclosureofsignificantESGinformation;?OverseestheCompany'scommitmentandperformancetoaddresskey
issuessuchasclimatechangeandotherESGrelatedmatters.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
Communications withStakeholdersInnovationNewMaterialactivelycarriesoutstakeholdercommunicationsandrespondstotheexpectationsofdifferentstakeholders.ConsideringthecharacteristicsoftheCompany'sdailyoperationsandbusinessscope,wehavefullyidentifiedstakeholdersandestablishedavarietyofcommunicationmechanismstorespondtotheexpectationsanddemandsofstakeholders,tojointlybuildagoodcooperativerelationship,andtostrivetoachievewin-wincooperationandmaximizevalue.
Stakeholders
Communicationchannels
Expectations and demands
Shareholder and investors
Shareholders' meeting,Annual/Interim reports,Corporateannouncements/Pressreleases,Field trips,Research and questionnaire
R&D & Innovation,Product management,Customer service,Responding to climate change,Carbon emission management
Government and regulators
Regular meetings of regulatoryauthorities,Seminars,Regular information reporting,Site visits,High-level meetings,Policy advisory
Business ethics and compliance,Water resource management,Occupational health and safety,Public interest initiatives,Biodiversity conservation
The Board of Directors andCorporate Management
Reporting,High-level meeting,Site visit,The Board of Directors,Regular questioning
ESG governance,Product management,R&D & Innovation,Business ethics & compliance,Sustainable supply chain,Energy management
1718
Stakeholders
Communicationchannels
Expectations and demands
Employees
Staff council,Symposium,Employee feedback mailbox,Internal office software,Employee satisfaction survey,Training,Internal publication
Employee rights and diversity,Professional health and safety,Talent training and development,Compensation and benefits
Clients
Business communication,Client feedback,Client satisfaction survey,Social media
Product management,Customer service,Circular economy and waste management,Carbon emissions management,Responding to climate change,Energy management
Partners
Bidding and procurement,Access and evaluation,Field trips,Seminars and forums
Sustainable supply chain,Product management,Occupational health and safety manufacturing
Community and the public
Public welfare activities,Community activities,Press releases,Social media,Seminars
Actions for the public good,R&D & Innovation,Responding to climate change,Carbon emissions management
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
1920
Materiality issue analysis
Duringtheyear,InnovationNewMaterialanalyzedtheCompany'sinternalandexternalsustainabledevelopmentbackgroundbasedontheCompany'scorebusinessandfuturedevelopmentplans,combinedwithfactorssuchasindustryESGrelatedpoliciesandstandards,andcapitalmarketfocus.Basedontheresultsoftheanalysis,theCompanyidentifiedatotalof18materialESGissues.InordertofullyunderstandthefeedbackfrominternalandexternalstakeholdersonthematerialityoftheCompany'sESGissues,InnovationNewMaterialconductedasurveyonthematerialityoftheissuestoeachstakeholderusingacombinationofonlinequestionnairesandofflineinterviews.Inresponsetothefeedbackfromeachstakeholder,theCompanyconductedin-depthanalysesandformedthefollowingmatrixofmaterialityissue,inordertobetterrespondtotheneedsofthestakeholders.
Impact on external stakeholders
Impact on Innovation New Material
?Public welfare actions?Biodiversityconservation
?ESG governance
Innovation New Material 2023 Matrix of Materiality Issues
?Water resources management
?Circular economy and waste
management
?Climate change response
?Carbon emissionsmanagement?Resource / Energymanagement
?Professional health and safety
?Sustainable supplychain?R&D & Innovation
?Product management?Business ethics &
compliance
?Compensation
& Benefits
?Talent training & development?Employee rights and diversity
?Exhaust emissionmanagement
?Customer service
Innovation New Material in Figures
Environmental IssuesSocial IssuesGovernance
Issues
Green DevelopmentLow Carbon Materials Use?The total amount of electrolytic liquid aluminum purchased by the Company reached 3.42 milliontons, accounting for 76% of the total raw electrolytic aluminum materials.?The Company purchased 1.4406 million tons of green-power aluminum and secondary aluminum,accounting for32%of the total raw electrolytic aluminum materials, with 426,700 tons of green-
power aluminum purchased.Secondary Aluminum Use and Development?The Company comprehensively recycled 1.0139 million tons of secondary aluminum, consistingof698,900 tons recovered from external sources and 315,000 tonsreused from the Company's
own production lines.?The Company launched 7projects for secondary aluminum, with plans to increase the annual production
capacity of secondary aluminum to
2.05 million tons.
?The Company has achieved 100%maintenance of quality level for the use of secondary aluminum.?The Company has participated in the formulation of 5 national and industry standards for secondary
aluminum.Carbon Footprint and Environmental System Certification?TheCompanyhasobtainedcarbonfootprintcertificationsfor19products.?2subsidiarieshaveobtainednational-levelgreenfactorycertification,withanother2obtainingprovincial-
levelgreenfactorycertification.Onthemunicipallevel,thereare2subsidiarieswithgreenfactory
certification.Besides,1subsidiaryhasobtainedmunicipal-levelgreensupplychainenterprisecertification.
?TheproportionoftheCompany'ssubsidiarieshavingobtainedISO14001environmentalmanagement
systemcertificationreaches100%.
?9subsidiarieshaveobtainedISO14064greenhousegasemissionsaccountingcertification.?9subsidiarieshaveobtainedISO14067carbonfootprintofproductscertification.?4subsidiarieshaveobtainedISO50001energymanagementsystemcertification.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
Employment?The total number of employees is 10,724, the proportion of female employees accounts for 31.4%.?The employee satisfaction survey covers 92% of employees, with a satisfaction rate of 90%.Employee Safety
?8 of the Company's subsidiaries have obtained ISO 45001 Occupational Health and SafetyManagement System certification, with the number of employees holding certified safety engineerqualifications exceeding40.
?The participation rate for employee safety training is 100%, with 100%of participants completing thesafety education and training. Besides, the completion rate for emergency drills is100%.?There have been nocases of work-related fatal accidents, severe injuries, or occurrences of occupational
diseases.Employee Development and Care
?In 2023, the Company organized more than 50employee activities and 40employee skill competitions.?In 2023, 98vehicles were issued to ''loyal teams''.?At present, the Company has a total of 2,598dormitories in various parks, of which 344dormitories
will be newly built and put into use in 2023.
2122
Innovation New Material in Figures
Green DevelopmentEnvironmental Technology Transformation
?The Company has invested 58.9298 millionyuan in environmental protection.?Through waste heat recovery technology, the Company has generated 35.64millionkWh of electricity,
saving10,800tonsof standard coal annually, equivalent to reducing carbon dioxide emissions byapproximately28,000tonsper year.?Through clean technology upgrades, the Company can save 1.73million cubic meters of natural gas
annually, reducing carbon emissions by approximately3,700tons.Low Emission of Waste Gases?The emissions of particulate matter, sulfur dioxide, and nitrogen oxides at the Company's operation sites
in Binzhouare far below the Shandong provincial standards and national standards. The emissionconcentration of particulate matter and sulfur dioxide are both lower than the10% of the nationalstandard, while nitrogen oxide emissions are50%lower than the national standard.
?The effective collection rate of waste gas reaches 99.5%,Dust removal efficiency exceeded
99.7%,
Purification efficiency of oil mist and flue gas exceeds95%.
?TheCompanyhasobtained445patents,including44inventionpatentsand401utilitymodelpatents.?In2023,theCompanyobtained110newlyauthorizedpatents,amongwhich18areinventionpatents
and92areutilitymodelpatents.
?100%oftheCompany‘ssubsidiarieshavingobtainedISO9001QualityManagementSystem
certification.
?8oftheCompany'ssubsidiarieshaveobtainedtheIATF16949AutomotiveIndustryQualityManagementSystemcertification.
Product QualityResponsible Operations
?Therewasnoincidentofviolationagainstlawsandregulationsin2023.?In2023,theCompanyconducted18sessionsoftraininginlawsandregulations,withatotalof1,454attendances.
?Thecustomersatisfactionrateexceeded90%.?In2023,theCompanyheld3suppliersymposiums,invitingatotalof35suppliers.
People-centeredPhilosophy
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
2324
Pursuing GreenCycle toPromote GreenDevelopmentAsoneofthelargestglobalaluminumalloymaterialsuppliers,InnovationNewMaterialiswellawarethatwebearagreaterresponsibilityinthecurrenteraofglobalclimatechangeandsustainabledevelopment.Practicallyimplementingthegreendevelopmentphilosophy,theCompanyiscommittedtobuildinganindustry-leadinggreenaluminumindustrychain.Wevigorouslydevelopgreen-poweraluminum,liquidaluminumandsecondaryaluminumindustriesfromtherawmaterialside.Wealsomakefullandefficientuseofhydroelectric,wind,photovoltaicpowerandothercleanenergysourcesduringproduction.Bydoingso,wecontinuouslyprovidelightweight,low-carbonandenvironment-friendlyaluminumalloyproductstodomesticandoverseassectorssuchasphotovoltaics,3Celectronicsandautomanufacturing,thuscontributingtothesustainabledevelopmentofthealuminumindustryandalow-carbonsociety.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
ThischapterrespondstotheUNSDGs
Designing Green and Low-carbonProductsInnovationNewMaterialiscommittedtothegreenandlow-carbondevelopmentphilosophy,andstrivestodevelopasystematicaluminumalloyindustrythatcentersoncirculareconomy,enablingthegreenandcirculardevelopmentofthewholeindustrychain.Basedontheactualprocesses,theCompanyactivelyseeksandhasrealizedthelarge-scaleuseofgreenaluminummaterials,thelow-carbonandcleanproductionandthesystematicrecyclingofaluminumalloyproducts,drivingthedevelopmentofthesecondaryaluminumindustry.InnovationNewMaterialmakesconcreteeffortstopromotetheaccountingandcertificationofproductcarbonfootprint,continuouslypromotingthe''cradle-to-gate''carbonfootprintcertification,inanefforttotrackthecarbonfootprintinthewholeproductlifecycle.Bytheendof2023,theCompanyhasobtainedtheobtainedthecarbonemissionscertificateissuedbytheChinaQualityCertificationCentre(CQC).Wehaveobtainedcarbonfootprintcertificationfor19products,including2cylindricalingotsofsecondaryaluminum.Byadoptingadvancedproductiontechnologyandenergy-savingandconsumptionreductioncontrolmeasures,combiningthehigh-qualitygreenpoweraluminumprovidedbytheupstreamofthesupplychainandtheinnovativeindustrialcooperationmodel,aswellasstrictcarbonemissionmanagement,theCompanyeffectivelyreducesthecarbonfootprintofitsproductsandprovidesmorelow-carbonproductsfortheindustrialchain.2526
Application
areasAluminum alloyproductsCastingproductionProcurement ofraw materials
Whilestrictlyadheringtothegreendevelopmentphilosophy,SuzhouChuangtaiAlloyMaterialsCo.,Ltd.(''SuzhouChuangtai'')putseffortsinhigh-qualityandgreendevelopmentandupholdsthephilosophyofgreen,low-carbonandcirculardevelopmentthroughouttheproductlifecycle.In2023,SuzhouChuangtaitookseveralmeasuresforenergyconservationandemissionreduction,advancingtherationalallocationandcomprehensiveutilisationofenergyandresourcesintheplant.TheCompanyintendstobuildthe''greenaluminum''industrychainthroughouttheprocessescoveringaluminumrecycling,casting,extrudingandCNCfinishingtofacilitatethenational''CarbonPeakingandCarbonNeutrality''strategies.Thisyear,SuzhouChuangtaiwassuccessfullyadmittedtothenationalgreenmanufacturinglist.
Buildingthefull-process''greenaluminumindustrychain''for''CarbonPeakingandCarbonNeutrality''goals
Case
National ''green factory'' for Suzhou Chuangtai
GreenpoweraluminumNon-green
poweraluminum
Electrolyticaluminum
liquidAluminum
ingotSecondaryaluminum
Use of clean
energyCast rollingHot rollingCold rollingForgingFoil rollingExtrudingSmelting,etc.
Aluminumalloy
BarProfileStructuralcomponentSheet and
foilAluminum
rod and
cable
Building andstructureElectronicsand powerConsumer
durables
PackagingcontainerOthers
Machineryandequipment
PV3Celectronics
LightweightautomobileEfficient use ofenergy
Transportation
AluminumIndustry Chain
We have obtained carbon footprintcertification for19products, including 2
cylindrical ingots of secondary aluminum.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
2728
ThemainupstreamrawmaterialsofInnovationNewMaterial'sproductsareelectrolyticliquidaluminum,aluminumingotandsecondaryaluminum.Bydevelopinggreen-poweraluminum，optimizingtheindustrialpatternandencouragingtheuseofsecondaryaluminum,andincreasingtheproportionsofgreenpoweraluminumandsecondaryaluminuminrawmaterials,theCompanyhasavoidedtheincreaseincarbonfootprintwithintheproductlifecyclewhilerawmaterialsincrease,andprovidedmorelow-carbonproductstodownstreamcustomerstoboostthetransformationoftheindustrychain.Thisyear,theCompanyused1.4406milliontonsofgreen-poweraluminumandsecondaryaluminum,comprising32%ofthetotalrawelectrolyticaluminummaterials.
Optimization of raw materials structure
Meanwhile,tofurtherpromoteandreduceproductcarbonfootprints,theCompanyleveragesrenewableenergytolaunchhigh-endflagshipgreenproducts.InnovationYunnanhascapitalizedontheamplelocalhydropoweraluminumresourcesandsetcarbonfootprintobjectivesforcylindricalaluminumalloyingots:
Since 2021We have achieved anyearly carbon footprintreduction of 0.05kilograms of CO
equivalent per kilogramof cylindrical aluminum
alloy ingots.
By the end of 2025The carbon footprint forevery kilogram ofcylindrical aluminumalloy ingots will havedropped to 5.64kilograms of CO
equivalent.
By the end of 2030
The carbon footprint for
every kilogram ofcylindrical aluminumalloy ingots will havedropped to 5.39kilograms of CO
equivalent.
Comprising of32%
The Company used
1.4406 million tons
100% secondaryaluminum
Innovation Precision ——Profile for 3C electronics
97% secondaryaluminum
Suzhou Chuangtai ——Cylindrical aluminumalloy ingot
High-contentsecondary aluminum
Innovation Metal ——Cylindrical aluminumalloy ingot
100% coal-powered
aluminum
21.41 kilograms of
CO
equivalent
40% secondaryaluminum
11.52 kilograms of
CO
equivalent
Traditional process
13.9 kilograms of
CO
equivalent
1.74 kilograms of
CO
equivalent
0.76 kilograms of
CO
equivalent
0.79 kilograms of
CO
equivalent
Substituted with
Substituted with
Substituted with
carbon footprintreduced by
94.3%
carbon footprintreduced by
93.4%
carbon footprintreduced by
91.9%
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
2930
Developing green-power aluminum presenceInnovationNewMaterialhasmadepreliminaryeffortsinareassuchasInnerMongoliaandYunnantomakefulluseoflocalhydroelectric,windandphotovoltaicpowerforaluminumproduction.Inaddition,theCompanyhasestablishedin-depthcooperationwithelectrolyticaluminumsuppliersusingcleanenergytojointlyreducethecarbonemissionsthroughouttheproductlifecycle.Byutilizingthehigh-qualitygreen-poweraluminumresourcesofShandongInnovationGroupCo.,Ltd.(hereinafterreferredtoas''InnovationGroup'')inInnerMongolia,theCompanycontinuouslyincreasestheproportionofgreen-poweraluminuminitsrawmaterials,whichwillreach50%bytheendof2026.TheCompanyalsoleverageshydropoweraluminumresourcestoactivelydevelopthehydropoweraluminumindustryandsetrelevantproductioncapacitygoals.InnovationYunnanplanstoboosttheproductioncapacityofcylindricalaluminumalloybarsusinghydropoweraluminumto600,000tonsand900,000tonsbytheendof2025and2030respectively.Thisyear,theCompanypurchased425,200tonsofgreen-poweraluminum.
Optimizing the industrial cooperation model
InnovationNewMaterialactivelypromotesthegreentransformationandtakesfulladvantageofthealuminumindustrycluster,establishingan''InnovationModel''basedonshort-distancetransportationanddeepprocessinginvirtueofco-locationwithelectrolyticaluminumenterprises.Additionally,withaluminumingotshavingbeenreplacedwithelectrolyticliquidaluminumduringproduction,thecoagulationandcastingprocessofelectrolyticliquidaluminumisavoided,reducingcarbonemissionsinrawmaterialselection.Meanwhile,theshort-distancetransportationhassubstantiallycutthecarbonemissionsfromthetransportofelectrolyticaluminumandreducedthecarbonfootprintoftheproducts.Thisyear,theCompanypurchased3.42milliontonsofelectrolyticliquidaluminumintotal,accountingfor76%ofthetotalelectrolyticaluminum.InnovationNewMaterialalsodevelopsthealuminumindustryinYunnanandmaintainsthecooperationwithShandongWeiqiaoPioneeringGroupCo.,Ltd.Bygivingfullplaytoadvantagesofupstreamanddownstreamindustryclusters,theCompanyhasexpandedproductioncapacityandreducedthecarbonemissionsinproductionandoperationtodrivegreendevelopmentoftheindustry.
Intending it to reach 50%by the end of 2026.Innovation Yunnan plans to boost the production capacity of cylindrical aluminum alloybars using hydropower aluminum to600,000tons and 900,000tons
by the end of 2025 and 2030 respectively.This year, the Company purchased
425.2thousand tons of green-power aluminum.
3.42million tons of
electrolytic liquid aluminum
in total76%of thetotal electrolyticaluminum
''Innovation Model'': An example diagram of upstream
and downstream collaboration
Aluminumliquid
Shorten theproduction chain
IngotTransportationRemeltingCasting processing
Ordinary
ingotAluminum
ingotAluminum
liquid
Short-term transportationDeep processing
High-endalloyValuetechnologies
Secondary
aluminumAluminum
liquid
Aluminumingot
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
Expanding the application of secondary aluminum
Asaleaderinsecondaryaluminum,InnovationNewMaterialrecoverssecondaryaluminumthroughindustrialleftovermaterialsfromdownstreamcustomersandwastefromexternalmarkets.TheCompanyhasmaintainedandadvancedthequalitylevelofthesecondaryaluminumusingadvancedindustrialproductiontechnologiesandequipment.Inaddition,throughthepersistentR&Dandapplicationoftechnologies,wehavebeenabletomanufacturerods,profilesandstructuralcomponentsinprocessessuchascasting,extrudingandfinishingwithrecoveredsecondaryaluminum,enablingthewideuseofsecondaryaluminumin3Celectronics,lightweightautomobiles,newenergyindustry,etc.toacceleratethecirculationofsecondaryaluminumandboostitseconomicvalue.Thisyear,theCompanycomprehensivelyrecycled
1.0139milliontonsofsecondaryaluminum,ofwhich
698,900tonswererecoveredfromexternalsources,withtherestof315,000tonsreusedfromitsownproductionlines.Additionally,secondaryaluminumaccountedfor60%ofthetotalrawmaterialsatSuzhouChuangtai.
3132
Recycling market wasteTheCompanyhasamplesourcesofmarketwasteandactivelypromotesitsrecyclingtoefficientlyuselimitednaturalresources.Weseektorecyclemarketwastefromdownstreamcustomersandotherthirdpartiestoreplaceelectrolyticaluminumasrawmaterialsforcasting.Inaddition,weconstantlyincreaseourrecyclingefforts.TheCompanyalsostrivestomaximisetheutilizationofwasteandhasestablishedstablemarket-basedrecyclingchannelsbyacceleratingthelayoutandbuildingofdomesticrecyclingstations.Wehaveformedarecyclingteamforsecondaryaluminum,implementingapoint-to-pointrecyclingmodelinmajorrawmaterialbasessuchasShanghai,Suzhou,GuangdongandChongqing,inanefforttoenabletheaccuraterecyclingofmarketwaste.
Recycling industrial leftover materials
Astheupstreamenterpriseofthevaluechain,InnovationNewMaterialhassignedstrategiccooperationagreementswithdownstreamcustomerstodefinetherolesofthepartiesinvolvedinaluminumproductrecoveryandpromoteresourcerecycling.Thisyear,intheprocurementcontractwithdownstreamcustomers,InnerMongoliaLightweightspecifiedtheproportionofsecondaryaluminumusedintherawmaterialsaswellastherequirementsfortherecyclingofindustrialleftovermaterials,inanefforttojointlycreateandexpandsecondaryaluminumchannels.
Topromotesustainabledevelopment,SuzhouChuangtaiactivelypurchasedwastealuminumprofilesandscrapstoensurethatmorethan60%ofrawmaterialswereindustrialleftovermaterialsfromdownstreamcustomers,whilespecifyingthattheproportionofsecondaryaluminumusedinsomeproducttypesmustbe100%.Inthemeantime,theCompanyplanstomakerecycledmaterialsaccountfor70%ofrawmaterialsacrossalllinesby2025,withthepercentagebeing100%forsecondaryaluminumlines.
SuzhouChuangtaiactivelypurchasesmarketwastetodesignsecondaryaluminumproductsCase
Bytheendof2023,InnovationNewMaterialhasalsoobtainedtheSCSGlobalServicesandUnderwritersLaboratories(UL)Certificationforsomeproducttypes.
The Company comprehensively recycled 1.0139million tons of secondary aluminum ,with the rest of:
315,000 tons reused fromits own production lines
698,900tons wererecoveredfromexternalsources
Reusing aluminum from the Company's production lines
InnovationNewMaterialscontinuestopromotecirculareconomyandactivelycarryouttherecyclingofwastealuminumfromitsownproducts.Forwastematerialssuchasrodheads,rodtails,scraps,andtrimmededgesgeneratedduringtheproductionprocess,theCompanyhasestablishedascientificandefficientrecyclingprocess.Throughcontinuoustechnologicalinnovationandprocessoptimization,theCompanyensuresthattheyarereusedtothemaximumextent,mitigatingenvironmentalpollution.Thisyear,theCompanyreused315,000tonsofaluminumfromitsownproductionlines.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
InnovationNewMaterialpromotesthegreenandlow-carbontransformationthroughvariousmeasures.Resourceefficiencyhasbeenenhancedbyactivelydevelopingsecondaryaluminumalloylines,continuouslyimprovingtheenergymanagementsystem,increasingtheproportionofcleanenergyandvigorouslyupgradingenergy-conservingtechnologies.Thisyear,9subsidiariesobtainedtheISO14064greenhousegasaccountingcertification.
Carbon reduction throughout productionprocesses
Thisyear,ShandongChuangYuanRenewableResourcesCo.,Ltd.successfullyputitsfirstproductlineofthe500,000-tonhigh-qualitysecondaryaluminumprojectintooperation.Relyingonimportedproductionequipmentwithhighefficiencyandlowenergyconsumptionaswellasotheradvancedenergy-savingtechnologies,theprojectcanrealisetheminimumconsumptionofenergyandlowestcarbonemissionsduringproduction.Theproductionprocessofcylindricalaluminumalloyingotsisfurtheroptimizedtomaximizeresourceutilizationandproductionefficiency.Advancedimportedequipmentsuchaspaintremovingfurnacesrunautomaticallyandenableultra-loworevenzeroemissions.Wastegasgeneratedduringoperationcanbeusedforwasteheatrecoveryandreusedforpowergeneration.Everyeffortismadetominimizeresourcewasteandenvironmentalpollution.Thesuccessoftheprojecthasadvancedthegreendevelopmentofthealuminumalloyindustrychain,promotingsustainabledevelopmentofthewholeindustrychainandboostingthedevelopmentofthe''hubofglobalhigh-endaluminumbases''.
Promotingtheproductionofhigh-qualitysecondaryaluminumforcirculardevelopmentofthevaluechainCase
Secondary aluminum alloy production lineQuality level maintenance of secondary aluminumTheCompanyfocusesonmaintainingthequalitylevelofsecondaryaluminumandworkswithdownstreamcustomerstoensurethestabilityandreliabilityofthefeedstock.Inaddition,weconvertthesecondaryaluminumcontainingvariousimpuritiesintothealloyedproductwithcompositionandperformancewithinspecificationsthroughstrictcontrolprocesses.Byintroducingstate-of-the-artproductionequipmentandprocessestotheproductionline,theCompanyactivelymakesproactiveeffortstorecoversecondaryaluminumandachieve100%maintenanceofqualitylevelforreuse.Withoursuperiorexpertiseinfront-endprocessesaswellascoretechnologiestopurifyhigh-qualityaluminummeltandremoveimpuritiesinsecondaryaluminum,theCompanycanupgradethequalityofsecondaryaluminumbyeffectivelycontrollingitschemicalcomposition.
TheCompanyhasbeenworkingwitharenownedtechnologycompanysince2017torecoverandreusethesecondaryaluminuminaclosedloop,leadingthemaintenanceandupgradeofthequalitylevelofsecondaryaluminum.TheCompanyhasformedamaturetechnologysystemintermsofsecondaryaluminumscreening,decontamination,impurityremovalandpurification,andalloying,whichhasbeenappliedtoallproducts.Thissystemcanmaintainandevenupgradethequalityofsecondaryaluminumbykeepingconsistentproductperformance,maximizingalloyproperties,effectivelyremovingimpuritiesandensuringthepurityanduniformityamongsecondaryaluminumproducts.Currently,theCompanyhasachieved100%qualitylevelmaintenanceofsecondaryaluminumforuseandbecomeadomesticleaderinmanufacturingandutilizingsecondaryaluminum.
Workingwitharenownedtechnologycompanyonthequalitylevelmaintenanceof3CelectronicsforrecyclingCase
9subsidiariesobtainedtheISO14064greenhousegasaccountingcertificationandISO14067carbonfootprintofproductscertification.
Currently, the Company hasachieved 100%qualitymaintenance of secondary
aluminum for use.
Secondary aluminum alloy projectsInnovationNewMaterialvigorouslydevelopsthesecondaryaluminumindustryandcontinuestopromotethegreendevelopmentofthealuminumindustrychainwithastrongsenseofsocialresponsibility.TheCompanyhaslaunched7secondaryaluminumprojectsintotalandplanstoboosttheannualsecondaryaluminumproductioncapacityto2.05milliontons.Atpresent,wehaveput2high-qualitysecondaryaluminumalloyprojectsintooperationwithannualproductionreaching600,000tons.
TheCompanyhaslaunched7secondaryaluminumprojectsintotalandplanstoboosttheannualsecondaryaluminumproductioncapacityto
2.05milliontons.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
Optimising the energy structure
TheCompanycontinuestooptimizeitsenergystructuretopromotetheconstructionofnewenergyprojectsandpracticethe''dualcarbon''philosophy.TheCompanyvigorouslydevelopsphotovoltaicpowerprojectstosaveenergyandreduceemissions.Consequently,wehavereducedproductioncostsandboostedtheuseofgreenenergy,achievingeconomic,ecological,andsocialbenefits.Thisyear,theCompanyhascompletedtheinstallationandgrid-connectedpowergenerationof22.58MWofphotovoltaicequipmentinShandongProvince,whichisexpectedtoreduceapproximately13,521tonsofcarbondioxideemissionsannually.
3536
Green energy transformation
InnovationNewMaterialcontributestothenational''CarbonPeakingandCarbonNeutrality''strategiesbyvigorouslypromotingthegreentransformationandstridingtowardsgreenandhigh-qualitydevelopment.Westrivetoreducetheconsumptionoftraditionalenergyinproductionandoperationonallfrontstograduallyincreasetheusageofcleanenergyandfurtherenhanceourproductionandoperationefficiency.Energy management system
Tocarryoutenergymanagementsystematicallyandefficiently,theCompanyhascomprehensivelyplanned,implemented,inspectedandimprovedenergymanagement.TheCompanyscientificallymonitorsthewholeprocessofenergymanagementtoeffectivelycontrolenergyconsumptionandimproveenergyutilizationefficiency.AccordingtolawsandstandardssuchastheEnergyConservationLawofthePeople'sRepublicofChina,ISO50001EnergyManagementSystemandRB/T117-2014EnergyManagementSystemsCertificationRequirementsforNonferrousIndustry,theCompanyhastakenintoaccounttheactualdailyoperationoftheCompanytoestablishathree-levelmanagementsystemincludingtheCompany,departmentsandteams.
Anenergymanagementleadershipgroupandofficehavebeenestablished,withthedeputygeneralmanagerastheteamleader.TheyareresponsibleforformulatingenergypoliciesandoperatingguidelinestoclearlydefineandcommunicatethescopeofresponsibilityandauthorityrelatedtoenergymanagementwithintheCompany.Meanwhile,theywilldevelopguidelinesandmethodstoensureeffectivecontrolandoperationoftheenergymanagementsystemandregularlyreporttheworkprogresstothetopmanagement.
At theCompany
level
Anenergymanagementteamhasbeenestablishedwithmembersfromnumerousdepartmentstocarryoutenergymanagementpolicies.Theteamisalsoaskedtoestablish,implement,maintain,andcontinuouslyimprovetheenergymanagementsysteminaccordancewithstandardsandrequirementstoplaneffectiveenergymanagementactivities.Inaddition,theteamisinchargeofmonitoringenergyperformanceandevaluatingcomplianceissuestohelpallemployeesenhancetheirawarenessofenergypoliciesandgoalsandregularlyreporttotheCompanylevel;
At thedepartmental
level
Energymanagementspecialistsareresponsiblefordailyenergymanagementandthecontinuous,effectiveimplementationofenergymanagementwithintheenterprise.
At theteam level
This year，4 subsidiaries of the Company have obtained the ISO 50001Energy Management System certification.
InnovationMetal'sdistributedphotovoltaicpowergenerationprojecthasbeensuccessfullyconnectedtothegrid.Thisyear,theFourthParkofInnovationMetal,theFirstParkofInnovationBoardMaterial,theParkofChuanghuiNewMaterial,andtheParkofYuanwangElectrotechnicshavebeenintegratedintothegrid,withatotalinstalledcapacityof22.58MW.
SuzhouChuangtai'sphotovoltaicpowergenerationprojecthasbeensuccessfullyconnectedtothegrid.SuzhouChuangtaiplanstousethe120,000-square-metreroofinthefactorytoconstructa12MWphotovoltaicpowergenerationfacilitywithananuualcapacityof12millionkWh,whichcansupplyabout70%ofthefactory'sdemandforelectricity.
InnovationFirstIndustrialPark'sdistributedphotovoltaicpowergenerationprojecthasbeensuccessfullyconnectedtothegrid.TheCompanyhassignedacooperationagreementwithathirdpartyfortherooftopdistributedphotovoltaicpowerstationprojectandsuccessfullyconnectedthephotovoltaicpowerstationtothegridin2023.AlltheelectricitygeneratedbytheprojectwillbesuppliedtotheCompanyforenergyconservationandemissionreduction.
This year, the Company has completed the installation and grid-connected powergeneration of
22.58MW of photovoltaic equipment in Shandong Province,
which is expected to reduce approximately13,521tons of carbon dioxide
emissions annually.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
3738
Photovoltaic factory
InordertoeffectivelypromotetheCompany'slow-carbondevelopment,InnerMongoliaLightweighthasaddedrooftopphotovoltaicpowergenerationtothenewfactory'sdesignandinvestedheavilyintheconstructionofwastealuminumrecyclingproductionlines.Whileimprovingitsgreenandlow-carbondevelopment,italsocontributestothegreentransformationofthevaluechain.
Carryingouttheconstructionofthephotovoltaicfactorytocreatealow-carbonsupplierimageCase
Energy Efficiency UpgradingTheCompanycontinuestomakeenergy-conservingtechnologicalimprovementsandupgradethetechnologyofexistingproductionequipment.Wearealsoreducingenergyconsumptiontoimproveenergyefficiencybyadoptingwasteheatrecoverytechnology.Aftertheupgradeiscompleted,theCompanywillbeabletogenerate35.64millionkWhofelectricitybyrecoveringandutilizingtheheatoffluegasandsteam,saving10,800tonsofstandardcoalannually,whichisequivalenttoreducingapproximately28,000tonsofCO
emissionsannually.
Saving10,800 tonsofstandardcoalannually,whichisequivalenttoreducingapproximately28,000tonsofCO
emissionsannually.
Inordertoimprovetheefficiencyofcleanenergyuse,InnovationMetalhascarriedoutsuccessiveupgradesofcombustionfurnaces,replacingconventionalmeltingequipmentwithregenerativeheatingcombustionfurnacestoacceleratetheinternalheatingandimprovetherecoveryandutilizationrateofwasteheat.Comparedwithtraditionalfurnaces,naturalgasconsumptionhasbeenreducedbyabout42%,withtheenergyefficiencyofequipmentimproved.Bytheendof2023,theCompanyhassaved1.73millionm
ofnaturalgasannuallythroughcleantechnologyupgrades,reducingcarbonemissionsbyabout3,700tons.
UsingregenerativeheatingcombustionfurnacestoreducenaturalgasconsumptionCase
Regenerative heating combustion furnace
Naturalgasconsumptionhasbeenreducedbyabout42%，saved1.73millionm
ofnaturalgas，reducingcarbonemissionsbyabout3,700tons.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts and
Join Hands to
Forge Development
Together
Waste heat turbine generator
InnovationNewMaterialprovideshigh-performancealuminumalloyproductsfordownstreamindustriesandactivelysupportslow-carbondevelopmentintheindustrialchain.Withtheadvantagesofaluminumalloybeinglight-weightandhigh-quality,theCompany'sproductsarewidelyusedinhigh-enddomainssuchasphotovoltaics,light-weightautomobilesand3Celectronics.Toagreatextent,theCompanyhasmettheenvironmentalandlow-carbonrequirementsofdownstreamcustomersforgreenproductsandagreenindustry.Meanwhile,theCompanyisworkingcloselywithcustomersinthedownstreamsupplychaintoexplorepossibilitiesofcarbonreduction.Wearecommittedtocooperatingwithcustomerstocarryoutgreenandlow-carbonproductionthroughouttheentireindustrialchaintocontinuouslystrengthenthegreenattributesoftheindustry.
Deepening green application domainsInnovationMetalchannelsthefluegasgeneratedintheproductionprocessintothewasteheatrecoveryboilerforsteamproduction.Afterstabilizingthepressureandthefluid,thefluegasisfedintoaturbinegeneratorforhigh-qualitypoweroutput,enablingthecascadeutilizationofenergy.Theprojectfullyutilizesthemediumandlow-levelwasteheatresourcesandtheheatofhigh-temperaturefluegasdischargedfromtheoriginalproductionline.Withatotalinstalledcapacityof5MW,theannualpowergenerationreaches35.64millionkWh,savingup10,781tonsofstandardcoalannually.
RecoveringwasteheattogenerateelectricityandreduceenergyconsumptionCase
Reaches35.64millionkWh,savingup10,781tonsofstandardcoalannually.
PhotovoltaicsTheCompany'saluminumalloyproductsareusedinkeypartssuchassolarpanelframes,photovoltaicmodules,andphotovoltaicpillarsduetotheirhighdurability,lightweight,corrosionresistanceandrecyclability.Aluminumalloyiscapableofimprovingtheoverallperformanceandreliabilityofphotovoltaicequipmentandenhancingitsabilitytowithstandwindandsnowloads.Meanwhile,iteffectivelyreducestherisksofloadbearing,therebyexpandingtheapplicationscenariosofrooftopdistributedphotovoltaicswhileincreasingtheinstalledcapacityofphotovoltaics.Inaddition,aluminumalloycansignificantlyreducecarbonemissionsduringtheproductlifecyclecomparedtosteelduringtransportation.Theexcellentcorrosionresistanceofaluminumalloycanextendtheservicelifeofphotovoltaicequipment.Moreover,duetotheconvenienceofrecycling,therecoveryrateofaluminumalloyinphotovoltaicequipmentremainshighafteryearsofuse,withtheenergyconsumptionforrecyclingbeingonlyasmallportionofthatofsteel.Theseadvantagesofaluminumalloyhavepromisedavastarrayofitspotentialapplicationsinthephotovoltaicsindustry.
Lightweight automobilesThealuminumalloymaterialsproducedbytheCompanyarewidelyusedinautomotivetrimparts,sunroofguiderails,automobileseats,batterytrays,etc.Theirstrengthandotherindicatorsmeettherequirementsforautomotiverigidityandperformance.Additionally,theuseofaluminumalloyhasreplacedthatofsteeltoreducetheweightofautomobiles.
3C electronics
ThealuminumalloyproductsproducedbytheCompanyaremainlyusedfordecorativeparts,supportparts,shellcases,framematerials,andstructuralcomponentsforvariouscategoriesofelectronicproductssuchaslaptops,tablets,mobilephones,andwearabledevices.Theyhavebeensuppliedtomanywell-known3Celectronicbrands.Thelight-weightandhigh-strengthaluminumalloyishighlycompatiblewiththetrendofportabilityandthinnessinthedevelopmentof3Celectronics.Theapplicationofsecondaryaluminumalloyalsohelpstoreducecarbonemissionsinthelifecycleofconsumerproducts.Currently,theCompanyhasgainedrecognitionfromgloballeadingcustomersin3Celectronicsforitsadvancedmanufacturingtechnologyandexcellentperformanceofgreenandlow-carbonaluminumproducts.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
4142
Actively Responding to ClimateChange
Thisyear,inordertosystematicallyanalyzetheimpactandopportunitiesofclimatechangeontheCompany'soperations,theCompanyreferredtotheRecommendationsoftheTaskForceonClimate-relatedFinancialDisclosures
(TCFD)toproactivelyidentifytherisksofclimatechangeandanalyzetheabilityofourmeasurestocopewiththerisks.
Risks and potential impactsCoping strategiesTransition risks
Policy andLegal
Chinahaslaunchedanationalcarbonmarket,withtherequirementsforcontrollingcarbonemissionsbecomingincreasinglystrict,whichmaycreateanimpactontheCompany'soperations,e.g.,higheroperatingcostsduetotheneedtoinvestmoreintechnologyimprovement.Internationally,barrierstocarbon-relatedtrade,suchastheEUCarbonBorderAdjustmentMechanism(CBAM),continuetoincrease.ThiswillnotonlyimpacttheCompany'sfutureexportstooverseasmarkets,butalsoaffectthecross-bordertransactionsinthedownstreamvaluechain.
TheCompanywillactivelyrespondtonationalpoliciesandindustrydevelopmenttrendsbyacceleratingthegreentransformationandincreasingtheuseofcleanenergyandgreenaluminumtoreducecarbonemissions.
Technology
WithChina's''carbonpeakingby2030andcarbonneutralityby2060''goals,thecountry'scarbonemissionpolicieswillbegraduallytightened,puttingpressureontheCompanytoreducecarbonemissions.Intheshortandmediumterm,theCompanymayhavetoresorttocleantechnologiesduetocarbonreductionneeds,resultinginincreasedoperatingcosts.
TheCompanywillcontinuetooptimiseenergyconservationandemissionreductionmanagement,promotingtheresearchandapplicationofaluminumrecyclingtechnology.TheCompanywillcontinuetoconductresearchincleantechnologiesandvigorouslyoptimisetheenergystructure,suchasincreasingtheusageofcleanenergy,includingphotovoltaicandwindenergy.Moreover,theCompanywillacceleratetheenergystructureadjustmentofitssubsidiaries.
Market
TheCompany'sdownstreamenterprisesareplacinggreateremphasisonthelow-carbonattributesoftheirproductsandservices,thuselevatingthelow-carbonrequirementsforupstreamaluminumalloymanufacturers.Theshiftinmarketdemandisaccompaniedbytheemergenceofnewopportunities,whileproductsnotcompliantwiththegreenattributesfacetheriskofobsolescence.
TheCompanyalreadyhasaproductionlineforsecondaryaluminumalloy.Inthefuture,theCompanywillgraduallyincreasetheuseofsecondaryaluminuminotherproductionlinesaswelltoenhancethegreenattributesofproductsandexpandthemarketshareoftheCompany'sgreenproducts.
Reputation
InconsistencybetweentheCompany'sbusinessbehaviouranditsgreenandlow-carbonphilosophymayaffectitsreputationandimage,jeopardizingitsmarketperformance.
TheCompanywillestablishspecialcommunicationchannelswithstakeholders.Whenproblemsarise,theCompanywillquicklydevelopandimplementremedialsolutionswhileprovidingtimelyfeedbacktostakeholders.
Risks and potential impactsCoping strategiesPhysical risks
Acute
Climatechangehasledtoanincreaseinthefrequencyofextremeweathereventssuchasfloodsandtyphoons,whichmayresultinpoweroutages,watersupplyinterruptions,anddamagetologisticalroutes,potentiallydisruptingtheCompany'snormaloperationsandcausingfinanciallosses.
TheCompanywilldevelopcontingencyplansrelatedtosupplychainprotectiontorespondtounexpectednaturalweathereventsandmeetthetransportationneeds.Besides,theCompanywillcarryoutequipmentreplacementtoimproveresilienceagainstnaturaldisasters.Chronic
Climatechangeiscausingasustainedriseinglobaltemperatures,whichmayleadtochronicriskssuchasthemeltingofseaice,risingsealevels,andchangesinwaterresourcedistribution.ItmayalsoaffecttheCompany'soperatingcoststhroughincreasingthefrequencyofequipmentmaintenanceandrefrigeratingequipmentpurchases.Climate change as an opportunity
InnovationNewMaterialisactivelyrespondingtothedemandforgreendevelopmentinthevaluechain.Byreducingouroperationalcarbonemissionsandincreasingtheuseofgreenenergyinproductionandoperations,wearedrivingthegreenandlow-carbondevelopmentoftheentirevaluechain.ReferringtotheTCFDframework,themainclimateopportunitieswehaveidentifiedinclude:
Opportunitytype
Opportunities and potential financial impacts
Products and
services
InnovationNewMaterialiscommittedtohelpingthevaluechainachievegreenandlow-carbondevelopment.Weactivelypromotetheuseofgreenandcleanenergywhileupgradingproductionprocessestocreatelow-carbonproducts.Inaddition,wevigorouslypromotetheapplicationofthephilosophyofcirculareconomybysigningstrategiccooperationagreementsonaluminumrecyclingwithdownstreamcustomerstoenabletheproductionofgreenerandlighteraluminumalloyproductsandprovidesolutionsthatbettermeetlow-carbonneeds.Meanwhile,wecontributetothehigh-qualitydevelopmentofthenewenergyindustrybyprovidinghigh-qualityaluminumalloysforindustriessuchaswindpowerandphotovoltaics,toboostthejointcreationofeconomicandsocialvaluealongthevaluechain.Markets
Toachievelow-carbondevelopmentgoals,countriesandregionsworldwidehaverenderedstrongsupporttogreendevelopmentinvariousindustriestoreducetheconsumptionoftraditionalenergy.Therefore,theCompanyvigorouslypromoteslow-carbontransformationbyrespondingtomarketdemandsforgreenaluminumalloysandseizingnewmarketopportunitiestocreatenewgrowthdriversforincome.Resourceefficiency
TheCompanyhascarriedoutgradualenergy-conservingtechnologicalupgradestoimprovetheenergyefficiencyofproduction,reducetheuseofresources,andscalingdowinenergyconsumption.Inthemeantime,benefitingfromtheincreaseinproductioncapacity,theCompanycanproducemorefinishedgoodswithinthesametimeframetogeneratemoreprofits.Energy source
TheCompanyisconstructinggreenenergyfacilitiessuchasphotovoltaicandwindpowerstationsinmultipleoperatinglocations,planningtograduallyreplacetraditionalenergyusesinproductionactivities.Whilereducingourcarbonemissions,wealsohavealsomitigatedthecompliancerisksarisingfromstricteremissionpoliciesinthefuture.Inaddition,theCompanycontinuestoincreasetheusageofcleanenergysuchashydropowerinYunnanProvince.
Resilience
TheCompanyactivelylaysoutthelow-carbondevelopmentofthewholeprocessofproducts,givesfullplaytotheadvantagesofindustrialcooperation,cooperateswithupstreamenterpriseswithahigherproportionofcleanenergyuse,expandstheproportionofgreenpoweraluminumrawmaterialsatsource,expandsthechannelsofsecondaryaluminum,increasestheproportionofsecondaryaluminumrawmaterials,andrealizesthereductionofcarbonatsource;andcontinuestoincreasetheinvestmentinandconstructionofsecondaryaluminumalloyprojects,expandstheproportionofsecondaryaluminumalloyproducts,andproducesmorelow-carbonproducts,soastoenhancetheabilityoftheCompanytograspthenewopportunitiesoflow-carbonmarketssuchasgreenaluminumalloysandothernewopportunitiesinthelow-carbonmarket,andenhancetheCompany'sresiliencetocopewiththeimpactofclimatechange.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
4344
Practicing EnvironmentalProtectionTheCompanyalwaysadherestotheenvironmentalprotectionphilosophyof''Lucidwatersandlushmountainsareinvaluableassets''throughcontinuousimprovementofenvironmentalprotectionmanagementandpersistenteffortstoreducetheenvironmentalimpactsofproductionandoperation,includingformulatingstrictstandards,adoptingadvancedemissionreductiontechnologies,andcultivatingemployees'awarenessofenvironmentprotection.Indoingso,wehavepracticedthephilosophyofgreenandsustainabledevelopment.Thisyear,2subsidiarieshaveobtainednational-levelgreenfactorycertification,withanother2obtainingprovincial-levelgreenfactorycertification.Onthemunicipallevel,thereare2subsidiarieswithgreenfactorycertification.1subsidiaryhasalsoobtainedmunicipal-levelgreensupplychainenterprisecertification.
Environmental risk management
Thefacilitiesforpollutionpreventionandcontrolinconstructionprojectsshouldbedesigned,constructed,andputintooperationsimultaneouslywiththemainproject.
Thisyear,2subsidiarieshaveobtainednational-levelgreenfactorycertification,withanother
2obtainingprovincial-levelgreenfactorycertification.Onthemunicipallevel,thereare2subsidiarieswithgreenfactorycertification.Besides,1subsidiaryhasobtainedmunicipal-levelgreensupplychainenterprisecertification.
TheCompanystrictlycomplieswithlawsandregulationsincludingtheEnvironmentalProtectionLawofthePeople'sRepublicofChina,LawofthePeople'sRepublicofChinaonthePreventionandControlofAtmosphericPollution,LawofthePeople'sRepublicofChinaonthePreventionandControlofWaterPollution,andtheLawofthePeople'sRepublicofChinaonPreventionandControlofEnvironmentalPollutionbySolidWaste.Inaddition,theCompanyhasformulatedenvironmentalmanagementpoliciessuchastheEnvironmentalProtectionManagementPolicyandtheManagementPolicyforLegalDisclosureofEnvironmentalInformation.Inordertocarryoutrefinedenvironmentalmanagement,theCompanyhasestablishedtheSafetyandEnvironmentSupervisionDepartmentthatisresponsiblefortheoverallenvironmentalsupervision,inspectionandmanagement,thehandlingofenvironmentalprotectionproceduresforconstructionprojects,andtheimplementationofthe''threesimultaneities''
.Meanwhile,wedispatchfull-timepersonneltosuperviseandinspectthemanagementprogressofwastegas,wastewaterandsolidwasteateachsubsidiaryaccordingtotheCompany'senvironmentalpoliciesandmanagementrequirementstoscreenandrectifypotentialenvironmentalrisks.Bytheendof2023,allsubsidiariesoftheCompanyhaveobtainedtheISO14001environmentalmanagementsystemcertification,andSuzhouChuangtaiisapplyingforthecertificationofASIPSperformancestandardmanagementsystem.
Strengthening environmental management
All subsidiaries of the Company have obtained the ISO 14001environmental management system certificationSuzhou Chuangtaiis applying for the certification ofASI PS
performance standard management system.
Topreventandcontrolsuddenenvironmentalincidentsandrisks,theCompanyhasformulatedtheContingencyPlanforSuddenEnvironmentalIncidentsandfileditinaccordancewithlegalrequirementssuchastheManagementMeasuresfortheFilingofContingencyPlansforSuddenEnvironmentalIncidentsinEnterprisesandInstitutions(Trial).ConsideringtheCompany'scharacteristics,theCompanyhasidentifiedfactorsrelevanttoenvironmentalimpactbeforescreeningriskstorectifyhiddendangers.Werequirepersonnelresponsibleforenvironmentalprotectiontoregularlyinspecttheoperationsinworkshopsandconductinvestigationsintohiddendangerssuchashazardousmaterials,fires,atmosphericimpacts,soilenvironment,etc.Fortheexposedenvironmentalrisks,theCompanyhasestablishedstrictcontrolproceduresforrectificationofenvironmentalissues,specifyingdeadlinesforsolutionswhilerequiringallissuestobesubmittedtotheCompany'sSafetyandEnvironmentSupervisionDepartmentintheformofrectificationreportsforreview.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
TheCompanypersistentlyusesenvironmentalprotectionequipmentwithhigherefficiencyandoptimizespoliciesandmanagementmeasurestocontinuouslyreducepollutantemissionsforscientificandeffectivewastedisposalaswellasreasonableuseofwaterresources,inanefforttomaintainecologicalbalanceandprotectthenaturalenvironment.
Implementing environmental protectionmeasures
Waste gas treatment
TheCompanystrictlyimplementstheIntegratedEmissionStandardforAirPollutants,theEmissionStandardforAirPollutantsfromIndustrialKilnandFurnace,andlocalemissionstandardsforairpollutants.TheCompanyhasestablishedamanagementsystemforwastegastreatmentfacilitiesandrequiresthatemissionsfromallsubsidiariesshallnotexceedrelevantnationalorlocalemissionindicators.In2023,allpollutantemissionsfromtheCompany'smanufacturingbasesmetthenationalandlocalemissionstandardsforairpollutants.AttheCompany'soperationalsiteinBinzhou,theemissionsofparticulatematter,sulfurdioxide,andnitrogenoxidesweresignificantlylowerthanboththeprovincialstandardsofShandongandthenationalstandards.Specifically,theemissionsofparticulatematterandsulfurdioxidewerebothlowerthan10%ofthenationalstandard,whilenitrogenoxideemissionswerelowerthan50%ofthenationalstandard.
The emissions of particulate matter and sulfur dioxide were both lower than 10%of the nationalstandard , while nitrogen oxide emissions were lower than50%of the national standard.
This year, the Company has invested
58.9298million yuan in environmental protection.
InnovationBoardMaterialusesafull-oilreclamationandpurificationsystemtopurifyoilmistinwastegasforutilization.Thissystempurifiestheoilyfluegasinthepurificationtower,whichusesthepurifiedoilasfuel.Inthisway,theemissionconcentrationofoilyfluegasisreduced,withtheresourcesrecycled.Withthissystem,around540tonsofrollingoilcanbereclaimedeveryyear,whichpromotestheCompany'senergyconservationandemissionreductionaswellasthesustainabledevelopmentofcirculareconomy.
Adoptingthefull-oilreclamationandpurificationsystemtomakefulluseofwastegasCase
Full-oil reclamation and purification systemTheCompanyalsocontinuestoupgradeandrenovateenvironmentalprotectionfacilitiestoimprovetheoperatingefficiencyofenvironmentalprotectionequipment.Thisyear,theCompanyhasinvested58.9298millionyuaninenvironmentalprojectrenovation.Ourmainmeasuresinclude:
Installing and renovatingequipment for waste gas
treatment
TheCompanyhasintroducedaregenerativelow-nitrogenburnersystemtoreducenitrogenoxidegenerationbyadjustingtheaircombustionratio,whichcanreducenitrogenoxideemissionsbyabout10tonsannually.TheCompanyhasupgraded32smeltingfurnaceswithregenerativelow-nitrogenburners,reducingtheconcentrationofnitrogenoxideemissionsbyabout20%.
Conducting fuelreplacement andcollecting waste gasTheCompanyoptedfornaturalgasastheonlyfuelinthesmeltingprocesstogeneratelesswastegas.Theefficiencyoffugitivewastegascollectionhasbeenimprovedto
99.5%byusinglargergashoodon
thefurnacedoor,enlargingthediameterofthemainflueandincreasingtheairvolumeofthefan.
Optimizing processes ofend-stage treatment
Forwastegastreatment,high-efficiencycyclonedustcollectorandbagfiltersareusedfordustremoval,withthetreatmentefficiencyexceeding99.7%.Thenewfull-oilrecoveryandpurificationsystemisadoptedintherollingprocess,achievinganover95%purificationefficiencyofoilmistandsmoke.
Wastewater governanceTheCompanystrictlycomplieswiththeLawofthePeople'sRepublicofChinaonWaterPollutionPreventionandControlandotherlawsandregulationsaswellaslocaldischargestandardsofwastewater.Accordingtothefeaturesofproductionprocesses,theCompanyhastakenvariousmeasuresforcomplianttreatmentandrecyclingofwastewatertodischargelesswastewaterandpromotecirculareconomy.
For aluminum profilesurface treatmentThe Company reuses allof its nickel-containingwastewater after nickelrecovery for zerodischarge duringproduction.
In dyeing process
The Company subjectsthe wastewatergenerated in thisprocess and from othersources to high-saltwastewater treatmentbefore recycling,achieving a 90%recycling rate.
In machining processThe reuse rate ofwastewater reaches 80%after treatment, with theremaining 20% ofconcentrated wastewaterand wastewater of othertypes will be discharged inthe sewage network of thePark after compliance withtreatment standards.
For wastewater indaily operationsDomestic sewage istreated by the septictank in the factory andthen discharged into thesewage network of thePark.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
4748
Water resource management
StrictlyabidingbytheWaterLawofthePeople'sRepublicofChina,theLawofthePeople'sRepublicofChinaonWaterPollutionPreventionandControlandotherlawsandregulations,theCompanycontinuestopracticerefinedmanagementofwaterresources.ThewaterusedbytheCompanymainlycomesfromthemunicipaltapwaternetwork,ofwhichthemainpurposesaredesignatedforofficeoperations,canteen'scateringandproduction.TheCompanyattachesgreatimportancetotherationaluseofwaterandpayscloseattentiontothemanagementofwaterconservation.Toenhanceemployees'awarenessofwaterconservation,theCompanyhaspostedsignssuchas''Pleasesavewater''nearwater-consumingfacilitiestoemphasizetheimportance,callingforjointeffortstoprotecttheenvironment.TheCompanytakessustainedactionstomanagewaterresources.Forexample,allrecirculatedcoolingwaterusedinproducingaluminumalloymaterialsisreusedratherthandischarged,withfreshwaterregularlyreplenished.InnovationPrecisionhasrecollectedthewaterusedinanodisingproductionfortoiletflushing,savingabout1,100tonsofwaterannually.
Waste management
TheCompanystrictlycomplieswiththeLawofthePeople'sRepublicofChinaonthePreventionandControlofEnvironmentalPollutionbySolidWaste,theStandardforPollutionControlonHazardousWasteStorageandotherlaws,regulationsaswellasnationalstandards,andreducestheamountofwastegeneratedatsourceandattheendthroughtheimprovementoftheproductionequipmentandprocesses,andtheresourcefulnessandminimizationmanagementofthesolidwastegenerated.Forhazardouswaste,westrictlyabidebytheStandardforPollutionControlonHazardousWasteStoragetobuildstandardizedstoragewarehousesforhazardouswaste.Besides,wehavemadedetailedplansandestablishedastandardizedsystemaswellasledgerforhazardouswastemanagement,regulatingtheoverallmanagementofhazardouswaste.Strivingtoachieve''zerolandfill''ofwaste,wehavelegallyentrustedexternalqualifiedthirdpartiesforhazardouswastedisposal,adheringtotheprincipleof''organizationscapableofcomprehensiveutilizationanddisposalcomefirst''.Leftovermaterialsinproductionarealsorecycledinacomprehensiveway.TheCompanyadoptsadvancedtechnologiestoscreenandrecyclealuminumash.Afterthescreeningprocess,theup-to-standardaluminumashisprocessedagain,withtheremainingscrapwasterecycledbyqualifiedthirdpartiesfortheproductionofhigh-value-addedproducts,inanefforttopromotethedevelopmentofcirculareconomyalongthevaluechain.Meanwhile,wecontinuetoupgradeequipmenttoreducehazardouswastegeneration.Thereplacementofaluminumashseparatorshasreducedthealuminumcontentinthesecondaryaluminumashtobelow5%,reducingthegenerationofbothsecondaryaluminumashandhazardouswaste.
InnovationBoardMaterialusesaluminumashseparatorsbeforeusingballmillingscreenersforaluminumashextraction,improvingtherecyclingefficiencyofaluminumash.Thisyear,InnovationBoardMaterialrecycledmorethan8,000tonsofaluminumblocks(includinggranular),reducingthegenerationofsolidwastewhilepromotingwasterecycling.
AcceleratingtechnologyupgradestoimproverecyclingefficiencyCase
TheCompanycollectsthegeneralsolidwasteanddomesticwasteatfixedsitesasrequired.Wastewithrecoveryvaluewillundergothecomprehensiverecyclingprocess,withtheresthandedovertoaqualifiedthirdpartyforregulardisposal.In2023,InnovationBoardMaterialrecycledaround3,000wastewoodenpalletsthroughouttheyear.
OptimisingthealkalinewashingprocesstoreducewastewaterdischargeCase
Alkaline washing device and process
Toimprovewastewaterutilization,InnovationPrecisionusesadvancedalkalirecoverytechnologytorecyclealkaliinthewastewatergeneratedfrommoldcleaning.Byadoptingmulti-processchemicalandphysicalprocesses,InnovationPrecisionrecycles90%ofalkali-containingwastewaterfromthecleaningprocess.Theseprocessesalsoreducetheuseofapproximately200tonsofalkalitabletsand90%ofsodiumhydroxide,therebyachievingthereuseandconservationofwaterandotherresources.
AboutInnovationNew Material
Sustainable
Development
Management
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
4950
Green-drivenInnovation andProduct-ledDevelopmentIntoday'sever-changingandchallengingera,InnovationNewMaterialadherestothespiritofingenuity,andstayscommittedtodevelopmentdrivenbybothtechnologicalinnovationandqualitymanagement.WesparenoeffortstoacceleratetheconstructionofR&Dplatforms,overcomedifficultiesinprocesstechnologies,andactivelyparticipateintheformulationofindustrystandards,toshapeahealthierandmoresustainableindustryecosystem.Besidescultivatingtechnicalelitesandpromotingsmarttransitionofproductiontoenhanceourowntechnicalstrengths,wealsocontributetothesustainabledevelopmentoftheentireindustry.Furthermore,duetostrictcontrolofproductqualityandconstantoptimizationofcustomerservice,wehavewonthetrustofourcustomers,andlaidasolidfoundationforcommondevelopmentoftheindustry.ThischapterrespondstotheUNSDGs
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
5152
Diving Deep into TechnologicalInnovationPursuing the mission of ''innovation makes the future'', the Company has formulated supporting policies and builtinnovation platforms to boost independent innovation development. We also promote patent R&D, participate in thestandard formulation, and foster innovative talents, to enhance our abilities to innovate production technologies andtransform results, which strongly bolsters the development of the Company and the industrial chain.
In2023,theCompanyhad110newlyauthorizedpatents,including18inventionpatents,and92utilitymodelpatents.Bytheendof2023,wehadobtained445patentsintotal,including44inventionpatents,and401utilitymodelpatents.InnovationMetal'sinventionpatent-''aprocessforproducingelectronicaluminumalloysbyusingsecondaryaluminum''wonthefirstprizeof2023BinzhouPatentAward.InnovationPrecision'sinventionpatent-''amethodfortestingcoarsecrystallayerofaluminumalloy''wonthesecondprizeof2023BinzhouPatentAward.
TheCompanyrecognizestheimportanceofbuildingasolidscientificresearchfoundation.Inthisregard,theCompanystrivestopromoteclose''industry-university-research''cooperationbyconstructingresearchinstitutes,studios,practicebases,etc.,soastoenhancetheR&DstrengthsoftheCompanyandtheindustry.Bytheendof2023,wehadestablishedvariousplatformssuchasthe''InnovationAlloyResearchInstitute'',the''AcademicianWorkstationofShandongProvince'',New-typeR&DInstitutionofShandongProvince,the''PostdoctoralResearchPracticeBaseofShandongProvince'',the''EnterpriseTechnologyCentreofShandongProvince'',the''ShandongEngineeringResearchCentreforNewAluminumAlloyMaterialswithUltraStrengthandHighToughness''andthe''ModelWorkerInnovationStudio''.Indoingso,weexertourselvesinR&D,topromotethetransformationofR&Dachievements.
Accelerating the construction of R&Dplatforms
Key aspects of Innovation New Material's technology R&D
The Company has 110newly authorized patents, including 18 invention patents,and92 utility model patents. We have obtained 445 patents in total, including44 invention patents, and 401 utility model patents.
Promoting smart
transition ofproduction
Focusing onkey R&Dprojects
Participating inindustrystandardsformulationFosteringindustrytechnical
talents
Accelerating theconstruction ofR&D platforms
Thisyear,the''ShandongEngineeringResearchCentreforNewAluminumAlloyMaterialswithUltraStrengthandHighToughness''jointlybuiltandoperatedbytheCompanyandCentralSouthUniversitywasapprovedbytheShandongDevelopmentandReformCommission.Focusingonthemajorstrategicneedsofthecountry,theResearchCentreisdevotedtoovercomingthecommontechnicalproblemsthatneedtobeaddressedinthealuminumprocessingindustry,consideringthetechnologicaldevelopmentoftheindustry.Theseproblemsincludeproducinghigh-endaluminumalloyproductswithsecondaryaluminum,removingdamagingelementsinthemelt,controllingimpurityelements,castingwithhomogenizedstructure,andtheheattreatmenttechnologywithmulti-scaleandmicrostructurecoordinatedcontrolofcomprehensiveperformance.Bytacklingthesedifficulties,theCentreaimstoboostgreenandcirculareconomyinrecyclingaluminum.
Promoting industry-university-research cooperation to tackle difficulties of the industrytechnologiesCase
Shandong Engineering Research Centre for NewAluminum Alloy Materials with Ultra Strength and
High Toughness
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
TheCompanyconstantlyworksonthehigh-endtechnologyR&D,andparticipatesintheresearchoflocalandnationalkeyscienceandtechnologyprojects,receivinghighrecognitionfromtheindustrypeers.In2023,InnovationMetalandInnovationPrecisionwereselectedintothe''CultivationListofShandongNewMaterialLeadingEnterprises''.Tobespecific,InnovationMetalwashonoredas''TheMostInnovativeEnterprisein2022''byAll-ChinaFederationofIndustryandCommerce,andits''R&Dandapplicationmanagementteamofthekeytechnologyinhigh-endaluminum''wonthehonorof''2023BinzhouMostBeautifulScienceandTechnologyInnovationTeam''.InnovationPrecisionwascertifiedasShandong''OneEnterprise,OneTechnology''R&DCentre,andBinzhouIndustrialDesignCentre.Itsproject-''lightweightalloymaterialapplicationinrailtransitwithanannualoutputof100thousandtons''wasselectedastheShandongNewMaterialInnovationandApplicationDemonstrationProject.
FocusingonkeyR&Dprojects
5354
Thisyear,InnovationPrecision'sproject-''lightweightalloymaterialapplicationinrailtransitwithanannualoutputof100thousandtons''wasshortlistedforShandongNewMaterialInnovationandApplicationDemonstrationProjects.Asa''ShandongNewMaterialLeadingEnterprise'',InnovationPrecisionwilltaketheopportunityofbeingshortlistedforShandongNewMaterialInnovationandApplicationDemonstrationProjectstofurtherreplaceoldgrowthdriverswithnewones.Bydeepening''industry-university-research''cooperation,InnovationPrecisionenhancestheR&Dstrength,andmakesgreatercontributionstothenewmaterialindustryofShandongProvince.
Demonstration projects for common development of the industryCase
In2023,InnovationMetalledacademicinstitutionsandthird-partyprofessionalcompaniesincarryingouttheproject''R&Dofcompletesetoftechnologyformanufacturinghigh-qualitysecondaryaluminumalloy''.Theprojectwasfundedby2023ShandongProvincialKeyResearchandDevelopmentProgram(MajorScientificandTechnologicalInnovationProject).Toeffectivelyhelptheindustrytoachievethegoalofcarbonpeakandcarbonneutrality,theprojectfocusesonsolvingkeyneedsinthedevelopmentandengineeringapplicationofthesecondaryaluminumindustry.Theprojectcoverstheefficientseparationofsecondaryaluminum,impurityremoval,melttreatment,refinementandtougheningofanti-poisoningseed,smeltingandcasting,intelligentproductionandtypicalapplicationdemonstration.Meanwhile,basedonthe''industry-university-research''cooperationmodel,theprojectiscommittedtobuildingasounddevelopmentandindustrialapplicationsystemofcompletesetoftechnologyforhigh-qualitysecondaryaluminumalloymanufacturing.
Supporting the R&D of key projects to foster industry leaderCase
TheCompanyplaysanactiveroleintheformulationofindustrytechnicalstandards,tappingintothestandardizeddevelopmentinkeyandhotareas,suchashigh-endalloymanufacturing,secondaryaluminummanufacturing,andgreenmanufacturing.So,weactivelyparticipateintheformulationandrevisionofanumberofnational,industryandgroupstandards,topromotethehigh-qualitydevelopmentofindustrytechnologies.In2023,theCompanyparticipatedintheformulationandrevisionofstandardsrelatedtosecondaryaluminum,aluminumscrap,environmentalindicatorsandenergyconsumptionindicatorsforthealuminumindustry,qualitymeasurementandotheraspects.TheCompanyparticipatedintherevisionof2nationalstandards,namely,theRecyclingMaterialforCastAluminumAlloysandtheAluminumandAluminumAlloyTermsandDefinitions—Part4:AluminumScrap,thelatterofwhichwasapprovedasShandongOriginalTechnicalStandardProject.Wealsoparticipatedintherevisionof3groupstandards;thestandardthattheCompanyledinthecompilationwonthefirstprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee,andthestandardthattheCompanyparticipatedinthecompilationwonthesecondprizeoftheExcellenceAwardforTechnicalStandards.
Participating in industry standardsformulation
The Company participated inthe revision of2nationalstandards,We also participated in therevision of3group standards.
In2023,theCodeforControlofWastewater,WasteGasandScrapWastefromAluminumandAluminumAlloyMeltingandCastingledandpreparedbyInnovationMetalandSuzhouChuangtaiAlloyMaterialsCo.,Ltd.wonthefirstprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee.InnovationMetalparticipatedinpreparingtheAluminumAlloyIngotsforAviationProducts,whichwonthesecondprizeoftheExcellenceAwardforTechnicalStandardsawardedbytheNationalNonferrousMetalsStandardizationTechnicalCommittee.TheawardsnotonlydemonstratetheCompany'scrucialcontributionstothenationalnonferrousmetalstandardization,butalsoshowfullrecognitionoftheCompany'seffortsinpromotinghigh-qualitydevelopmentoftheindustry.
Participating in preparing technical standards to lead the high-end development of theindustry
Case
The first and second prize of the Excellence Award for Technical Standards awarded by the National Nonferrous Metals
StandardisationTechnical Committeelightweight alloy material application in rail transit
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Fostering industry technical talentsPursuing''abeautifulfuturethroughinnovation'',theCompanyputsemphasisoncultivatingtechnologicalinnovationtalentsthatcancontributetotheprogressoftheCompanyandtheindustry.Tofurtherstrengthenthetrainingofinnovativetalents,theCompanyhasformulatedtheEnterpriseAdministrativePolicyforAllStaffInnovation.Wealsocarryoutmulti-dimensionaltalenttrainingprograms,andholdlaborcompetitionforexcellence,tostimulateemployeestobringouttheirinnovationabilities.Additionally,diversifiedinnovationactivitiesareorganizedtoadvocateinnovationcultureamongallemployees.
InJuly2023,ShandongChuanghuiNewMaterialTechnologyCo.,Ltd.heldarecognitionmeetingfor''outstandingworkers''incableworkshop,atwhich6awardswerepresentedbythegeneralmanager.Inthisactivity,theCompany'sCableDepartmentlearntfrombenchmarkingenterprises,andadoptedaseriesofreformmeasuressuchas''fixedstaff,fixedpost,andfixedvalue''forthewiredrawingequipmentoftheworkshop,whichgreatlyimprovedtheworkshopcapacity.Fromthestudyactivity,employeeswereinspiredtofullyimplementtheproductionconceptof''reducingcostandincreasingefficiencywithoutstandingquality'',topromoteinnovationandmakebreakthroughs.
Holding a recognition meeting for ''outstanding workers'' to mobiliseinnovationenthusiasmCase
Recognition meeting for ''outstanding workers''
Thisyear,toencourageallemployeestoinnovate,InnovationPrecisionheldthe''InnovationandBreakthrough''improvementproposalcollectionactivity,with1,325participants,and698proposalsobtained.Attherecognitionmeeting,812employeesof425caseswererewardedwithRMB61.1thousandofincentivemoneyintotal.Besides,themanagementofInnovationPrecisionencouragedemployeestoactivelyparticipateinthe''innovationandbreakthrough''activity,andputtheimprovementsuggestionsandprogramsintopracticetoimproveworkefficiency.Inaddition,thegeneralmanagerofInnovationPrecisioncalledonemployeesto''review''theproposedimprovementcases,soastoachievepersistence,continuouspromotionandmaximumbenefit.Employeeswerealsoencouragedtocontinuetoputforwardmoreexcellentimprovementsuggestions.
Collecting ''innovation and breakthrough'' proposals to foster an innovation atmosphereCase
Recognition meeting for the ''innovation andbreakthrough'' proposal collection activity
Thisyear,InnovationPrecisionintroducedtheMOMsystemtorealizestandardizedoperationalprocesses,transparentmanagementandreal-timedataanalytics.Thesystemcontainsfivemodules,namely,planningandscheduling,productionmanagement,intelligentequipment,intelligentenergymanagementandintelligentcarbonmanagement.Bylinkingandcombiningtheinformation,thesystemenableseachmanagementunittoidentifyandsolveproblemsinatimelymanneronthesameplatformandinthesamedimension,effectivelyimprovingtheefficiencyofproblemsolving.TheadoptionoftheMOMsystemwillsteadilypromoteInnovationPrecision'sdigitaltransformationandupgrading,realizingpaperlessandautomatedoffice,aswellasreal-timemonitoringandrefinedmanagementofproductionandoperations,andeffectivelysupportsitsscaledevelopment.
TheMOMsystemwasadoptedforarefinedoperationmanagementCase
Toensurecontinuousqualityimprovement,theCompanyintroducedtheworld-leadingautomatedcastingsystem.Additionally,themostadvancedhardwarewasequippedtooptimizethespecialsoftwareusedindirectchillcasting,creatinga''one-stop''solutionforintelligentmanufacturing.Thissystemprovidednecessarytoolsandhistoricaldatafortheproductionandmanufactureofsomeproducts,andhelpedtoimproveproductquality.Moreover,theCompanyintroducedanewelectromagneticmulti-layerfiltrationsystemtofiltertheliquidaluminumbyelectromagneticforce,performsreal-timesummaryandanalysisofmeasurementdatathroughautomatedsampleloadingandautomatedsamplemeasurement,toachievecomprehensivemonitoringandprecisecontrolofproductquality.
AutomatedcastingsystemswereintroducedtocreatearefinedproductionprocessCase
Tocreateafirst-class''excellentoperation+intelligentmanufacturing''benchmarkfactory,theCompanyiscommittedtointegratingscienceandtechnologyapplicationintoproductionandoperation,toimprovetheproductionandoperationefficiency,andlaythefoundationforrapidandhigh-qualitydevelopment.In2023,wecarriedoutdigitalreformofproductionprocesses.Specifically,wehavelaunchedthereal-timetrackingsystemofsecondaryaluminumandtheQRcodemanagementsystemtoensurethetraceabilityofproducts,whichrealizedthevisualization,standardizationanddataficationinproduction.Inaddition,wedevelopedaproductionmanagementsystemwithathird-partydeveloper,theManufacturingOperationManagement(MOM)platform.Wealsointroducedanonlineenergyconsumptiondatacollectionsystem,toapplythedigitalconceptintotheentireprocessofourproductionandoperation.In2023,thankstothepotentialofindustrialdataresourcesandthenewdata-drivenmanufacturingmodel,InnovationPrecisionwasaccreditedinthefirstbatchof''MorningStarFactories''forthedigitaleconomyinShandongProvince.Meanwhile,InnovationPrecisionwasincludedinthesecondbatchofpilotenterprisescertificatedbyDataManagementCapabilityMaturityAssessmentModel(DCMM)inShandongProvincein2023.ThishonorprovidesareferenceforInnovationPrecisiontoenhanceitsdatamanagementcapabilitiesintermsofdatastandards,datagovernanceanddataquality,therebypromotingitsdigital,networkingandintelligenttransformationandupgrading.
Promoting smart transition of production
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Striving for Excellent Quality
TheCompanyfirmlybelievesthatqualityproductsarethekeyfactortowincustomers'trustandcompetitivenessinthemarket.Adheringtothequalitymanagementconceptof''customerorientation,fullparticipation,andcontinuousimprovement'',weadoptthequalityapproachofputtingqualityfirst,seekingcontinuousimprovement,complyingwiththelawandservingcustomers.Inthisway,weaimtooptimizethequalitymanagementsystemonacontinuousbasis.Inaddition,wehaveformulatedstrictproductqualityrequirementsthatareintegratedintotheentireproductionprocesstoprovidehigh-qualityproducts.In2023,theCompanywontheShandongProvincialQualityBenchmarkingAwardandwasnominatedfortheShandongProvincialGovernorQualityAward.
Tocontinuouslystrengthenqualitymanagement,theCompanyhasformulatedinternalproceduresforqualitymanagementandestablishedatwo-tiermanagementstructurewithaQualityManagementCentreandQualityManagementDepartmentofsubsidiariestoeffectivelyreportandpresentqualitymanagementrequirements.Meanwhile,theCompanyhasclarifiedthequalitymanagementrequirementsforeachposition,toimplementqualitymanagementmeasures.
Quality management system
QualityManagement
Centre
?CoordinatestheCompany'squalitymanagement,formulatesqualitymanagementpolicy,andsupervisesthequalitymanagementperformanceofbusinessunits.
QualityManagementDepartment of
Subsidiaries
?Communicateandimplementqualitymanagementinallaspects,includingqualitycontrol,qualityimprovementandqualityassurance.
QualityManagementPositions
?Includefourstages:qualitycontrol,qualityengineering,documentcontrolcentreandqualityassurance;ensuretheimplementationofqualitymanagementmeasuresatallstages;implementthequalityplanningdevelopedbytheCompany;participateinqualityperformanceassessmentandtraining;accomplishqualitymanagementobjectives.
Bytheendof2023,theCompanyanditssubsidiarieshaveobtainedtheISO9001QualityManagementSystemCertification.Specifically,8subsidiarieshaveobtainedtheIATF16949AutomotiveIndustryQualityManagementSystemCertification.
TheCompanyanditssubsidiarieshadeachobtainedISO9001QualityManagementSystemCertification.8oftheCompany'ssubsidiarieshaveobtainedtheIATF16949AutomotiveIndustryQualityManagementSystemcertification.
TheCompanyfocusesonthewholeprocessofqualitymanagement,fromrawmaterialsprocurementtosupplierclassificationmanagement,fromproductqualityplanningtothequalitycontrolofthemanufacturingprocess,fromthequalityinspectionanddeliveryandthepost-deliveryservicequality,eachstageoftheprocessisfullyintegratedwiththeconceptofthePDCA
qualitymanagementcycletoachieveacomprehensiveprocessoffinequalitycontrol.Inordertopromotestandardizedmanagement,wehaveformulatedaseriesofoperationstandards,includingincominginspectionoperationstandards,processinspectionoperationstandardsandshippinginspectionoperationstandards,aimingtoensurethatthereareclearqualitycontrolstandardsandoperationnormsforeachstageoftheprocessfromrawmaterialwarehousingtoproductshipment,avoidingthegenerationandoutflowofsubstandardproducts,andimprovingthestabilityandreliabilityofproductquality.
Full-process quality control
Inordertodeepentheleanmanagementofquality,wecontinuetointroduceadvancedqualitymanagementmethods,includingthecreationofa''lean''qualityculture,theestablishmentofatechnicalresearchgroup,thedevelopmentofqualitycontrolteamactivities,digitalsystemanalysis,etc.,tocontinuouslyimprovethequalitymanagementprocess,andprovidecustomerswithhigh-qualityproducts.Inaddition,wehaveestablishedahighlyefficientqualityissuehandlingprocesstoensureaquickresponseandeffectivelypreventrecurrenceofsimilarissues.Oncewereceiveaqualitycomplaint,weimmediatelyidentifythecauseandspecifytheresponsibledepartmenttodealwiththecustomer'sprobleminatimelymanner.Subsequently,throughtheestablishmentofaqualityfeedbackcommunicationgroupandthereleaseofmonthlyqualityreports,weworkwithalldepartmentstoimproveandpreventtherecurrenceofproblems,soastorealizeavirtuouscycleofqualitymanagement.
Incoming quality inspection
Clarify the requirements forquality measurement tools,inspection equipment,inspection standards andinspection methods,standardize the procedures fordealing with anomalies, andemphasize the responsibilitiesof relevant inspectionpersonnel, so as to improvethe accuracy, standardizationand consistency of inspection.
In-process quality inspectionEmphasize the continuousquality control in theproduction process, includingthe inspection requirementsfor the first batch of finishedproducts and the samplingrequirements for eachproduction process;emphasize whether theinspection of the appearanceand performance of finishedproducts meets customerrequirements; clarify theinspection tools andequipment, and the manner inwhich the results are recordedand reported. Detailedinstructions are also providedfor dealing withnonconforming products.
Out-going quality inspectionClarify the items, inspectionand operation methods andjudgement standardsaccording to productstandards, customerrequirements, quality plansand other information; clarifythe response process forabnormalities found in theout-going quality inspection,including the identification,isolation, disposal andreporting of nonconformingproducts, to avoid potentialnonconforming products fromentering the market.
ThePDCAcycleisafour-stepmodelforqualitymanagement,namelyPlan,Do,CheckandAct.
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Hazardous substance control
Toprovidehighqualityproducts,wecontinuouslyassesspotentialhealthandsafetyrisksduringproductionanduseofourproductsinaccordancewithlegalandregulatoryrequirementsaswellastherequirementsofourcustomers.Thescopeofassessmentcoversrawmaterialinspection,in-processqualityinspection,finishedproductinspection,andby-productinspectionduringtheproduction.5subsidiariesoftheCompanyhavepassedtheQC080000HazardousSubstanceProcessManagementSystemCertification.
Quality culture constructionTheCompanycontinuestostrengthentheconstructionofqualityculture,andorganisesavarietyofactivitiestoraiseemployees'qualityawareness.In2023,weactivelycarriedoutactivitiessuchas''QualityMonth''and''QualityChampionCompetition''toenhanceemployees'understandingofqualitymanagementthroughouttheproductlifecycle.
TheCompanyholdsmonthlyorquarterlyqualityanalysismeetingstosummarisethequalityperformanceandoptimisethequalityandcoststructure,andformulatesqualitytargetsandimprovementplans.Specifically,theCompanyhadsetupatechnicalresearchgroupdedicatedtosolvingtechnicalproblemsinproduction,inspectionandinternalandexternaldefects.Inaddition,theCompanyencouragestheQCgrouptomaketechnicalinnovationsinprocedures,energyconsumptionandprocess,andactivelycallsforallemployeestoputforwardvaluablesuggestionstoimprovedesignquality.Withthesemeasures,wenotonlysignificantlyimprovedthequalityofourproducts,butalsoeffectivelyreducedproductioncosts.
StrengtheningqualityimprovementandpromotingtechnologicalinnovationCase
Raw material testing
To ensure that the content ofhazardous substances in rawmaterials is lower than thestandard amount, we inviteprofessional third parties toconduct RoHS testing on relevantsuppliers., among which thequalified ones can be enrolled;
Manufacturing processmonitoringTo minimisesafety hazards duringthe manufacturing process, wemonitor key parameters to ensurea reliable and stable productionprocess;
Finished product inspection
To ensure the safety of finishedproducts, we carry outcomprehensive quality tests at theinspection stage to ensure thatthe products meet the standards.
Providing Quality Services
Adheringtothebusinessphilosophythat''customersatisfactionisthekeydrivingforceforawiderpresence'',theCompanycontinuouslyimprovestheservicequalityandactivelyrespondstocustomerneeds,therebycontinuouslyincreasingcustomersatisfaction.Wehavedevelopedacustomerrelationshipmanagementframeworkinmodulesaccordingtobusinesscharacteristicsandprocesses,coveringfourareasofsalesassistant,fieldsalesassistant,on-siteoperationsandsecondaryaluminumrecovery,toprovidecomprehensivequalityservices.Meanwhile,theCompanyprovidescustomerswithavarietyoffeedbackandcomplaintchannels,includinge-mail,WeChat,fax,telephoneandon-sitemeetings.ThesechannelsenabletheCompanytolistentocustomers'demandsandprovideexcellentservicestocustomers.Customer complaint management processTheCompanyhasformulatedCustomerFeedbackProcessControlProcedurestostandardisethecustomercomplaintmanagementprocess.Theproceduresprovidedetailedrulesontheprocessandtimeframeforhandlingcustomercomplaintstoensureatimelyandproperresolutionofeachcustomercomplaint.
Customer Satisfaction SurveyMeanwhile,theCompanylistenstothecustomers.Atleastonceayear,theCompanyconductssatisfactionsurveysforallcustomersthroughonlinequestionnairesandofflinevisits.Thesesurveyscoverfouraspectsofproductquality,service,deliveryandhazardousmaterialcontrol,aswellasproductappearance,serviceattitude,packagingandlabelling.TheCompanythencollects,collatesandanalysesthefeedbackdatatoproduceproductandserviceimprovementsuggestionsandresultsreports,whicharepresentedtomanagementasabasisformanagementimprovement.In2023,theCompanyconductedseveralcustomersatisfactionsurveys,andreceivedasatisfactionrateofmorethan90%.
The Company conducted several customersatisfaction surveys, and received asatisfaction rate of more than90%.
The Quality ManagementDepartment organisesa qualityreview meeting within 48 hoursand analyses the cause with therelevant responsible departments,who formulate corrective andpreventive measures inaccordance with theProcessControl Procedures forImprovement, Corrective andPreventive Actions, theProcessControl Procedures forNonconforming Productsandother documents.
The responsible departmentsimplement the above measures asplanned within 72 hours. TheQuality Management Departmentresponds to customers by issuingthe 8D report (i.e., a problemsolving method commonly usedby engineers or otherprofessionals) or by sendingcontact letters, and monitors theabnormal closure of customercomplaints.
The Marketing Departmentreceives and responds to thecomplaint within 24 hours after ithappened, and forwards thecomplaint to the QualityManagement Department andrelevant responsible departments.
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Practicing SoundManagement toPromote Responsibility-Driven Development
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Practicing SoundManagement toPromoteResponsibility-DrivenDevelopmentFacedwithanincreasinglycomplexbusinessenvironment,InnovationNewMaterialcontinuestostrengthenitsriskpreventionandcontrolcapabilitiestoensuresoundbusinessoperations.Meanwhile,theCompanyabidesbybusinessethics,strengthenspatentandbrandprotectionandenhancesinformationsecurityandprivacymanagement,tobuildaresponsiblecorporateimageinacontinuousmanner.TheCompanyalsomakessustainedeffortstopromotethecommondevelopmentoftheindustry.Bystrengtheningsuppliermanagement,theCompanystrivestocreateasustainableecosystemwithsuppliers.ThischapterrespondstotheUNSDGs
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TheCompanyactivelystrengthensriskmanagement,andkeepsstrictcompliancewithrelevantlawsandregulations.Inaddition,wehaveformulatedinternalriskmanagementpoliciestopreventandcontrolpotentialrisksandsafeguardthesoundoperationoftheCompany.Tothisend,theCompanyhasestablishedthreelinesofdefence:
The finance department, legaldepartment and archive officeact as the second line ofdefense, monitor and inspectthe execution situation of thefirst line, ensuring thecomplete control of risks.
The second line of defense
Frontline employees serve asthe first line of defense,responsible for daily internalcontrol, assess risks and takecontrol matters, and report tothe management whennecessary.
The first line of defense
The internal audit departmentacts as the third line ofdefense, responsible for theinternal audit and riskmanagement review, ensuringthe rigor of the Company'sinternal risk controls.
The third line of defense
Meanwhile,toensureeffectiveriskmanagement,theCompanyhasestablishedariskmanagementsystemcoordinatedbytheCompany'sheadofficetomonitorandevaluatetheriskmanagementperformanceofallinternalorganisationsandsubsidiaries.Aftertheriskassessment,theAuditDepartmentattheheadofficewillsummarizetheassessmentresultsandrectificationsuggestionsinatimelymannerandreporttotheAuditCommittee.Meanwhile,outstandingissuesandcorrespondingactionswillbefollowedupandimplementedinatimelymanner,formingaclosed-loopriskmanagementsystem.Strengthening Business EthicsConstructionTheCompanyfirmlybelievesthatbusinessethicsarethecornerstoneofsoundbusinessoperationsandsustainabledevelopment.WestrictlycomplywiththeCompanyLawofthePeople'sRepublicofChina,theAnti-UnfairCompetitionLawofthePeople'sRepublicofChina,theAnti-monopolyLawofthePeople'sRepublicofChina,theAnti-MoneyLaunderingLawofthePeople'sRepublicofChinaandotherrelevantnationallawsandregulations.Indoingso,wehaveformulatedpoliciessuchastheCodeofBusinessConduct,theManagementControlProceduresforAnti-ForeignBriberyandAnti-Corruption,theManagementControlProceduresforProhibitionofAcceptingBribesorUsingOtherMeanstoObtainImproperAdvantagesandtheControlProceduresfortheRegulationofEthicalStandardstoeffectivelyregulatetheoperationsoftheCompanyandtheemployees'codeofconduct.In2023,theCompanyhadnoviolationsofcorruption,moneylaundering,unfaircompetition,bribery,extortion,andfraudthatwouldhaveasignificantimpact.TheCompanyattachesgreatimportancetocorporateanti-corruptionandintegrity.Wehaveestablishedacomprehensivereviewsystemforviolationsoflawsandregulations,setsuptheEconomicOversightandInspectionDepartmenttotakeresponsibilitiesininvestigatingillegalanddisciplinaryincidents,analyzingtheresultsofinvestigationsandproposingcountermeasurestopreventrisksofbusinessethics.Toensurefairoversight,weprovideemployees,suppliersandotherstakeholderswithopenreportingchannelssuchasemailandtelephone.
Meanwhile,theCompanyhasestablishedstrictrequirementstoprotectthewhistleblowerprivacyandmanagethereportinginformationtoensurethatwhistleblowerscaneffectivelyexercisetheirlegitimaterights.Tostrengthentheintegrityconstructionofsuppliers,theCompanyattachestheIntegrityAgreementtothecommercialcontractssignedwithsuppliersandconductsintegrityrelatedauditsonsuppliers,toincreasetransparencyandcredibilityinthesupplychain.TheCompanyisactivelyinvolvedinthedevelopmentofbusinessethicsandorganizesregulartrainingonlawsandregulationstocontinuouslyraiseemployees'awarenessoflegalcompliance.Thisyear,theCompanycarriedout18trainingsessionsonlawsandregulations,whichwereattendedby1,454middleandseniormanagementpersonnel,projectmanagersandrelatedpersonnel.Thetrainingcoveredlegalawareness,typicalcases,andgeneralknowledge.Inaddition,weconductspeciallegalandregulatorytrainingforkeydepartments.Thetrainingincludesexplanationoflaws,regulationsorrules,analysisofcompanycasesandsummaryoflessonslearned,toraisethelegalawarenessofmanagerpersonnelandrelevantemployees.Additionally,theCompanygivesconsiderableweighttotheprotectionoftradesecretsofitspartners.Wehaveadedicatedtradesecretprotectionofficethatformulatesthetradesecretconfidentialitysystemandthecompetitionagreementsystemforouremployeestoensurepropermanagementofcustomerinformation.Thisyear,theCompanyupdatedtheBiddingandBusinessIntegrityAgreementtofurtherstrengthenanti-corruptionmanagementatsource.Meanwhile,theCompanyadoptstechnicalmeasuressuchasdataencryptionandtwo-factorauthenticationtoprotectcustomerprivacy,andsetsaccessrightstoenhancetheconfidentialityofcustomerinformation.Strengthening Patent andBrand Protection
WearecommittedtoprotectingourownIPrightsandrespectingthoseofotherstopromotethecommonandharmoniousprogressoftheindustry.InstrictcompliancewiththePatentLawofthePeople'sRepublicofChina,theTrademarkLawofthePeople'sRepublicofChinaandotherlawsandregulations,wehaveactivelyimprovedtheIPmanagementsystem,setuptheIPmanagementleadinggroupandestablishedtheinternalmanagementsystemforpatents,trademarksandsoftwarecopyrightstoprotecttheIPrightsinanall-roundway.Moreover,weincluderestrictiveclausesinbusinesscontractswithourpartnerstoclarifytheallocationofIPrightsandinterestsandtheinformationconfidentialityobligationsofeachparty,soastoavoidinfringingonthelegitimaterightsandinterestsofbothparties.ToavoidinfringingIPrightsofothers,duringtheR&Dofnewproducts,theCompany'stechnologycenterstrictlyreviewsandevaluatesnewproductprojectsbeforetheyarelaunched.Atthesametime,theIPoutputandprotectionarecontinuouslymonitoredtoensurethattheIPrisksarecontrolled.Additionally,theCompanyhasadedicateddepartmentthatprovideslegaladviceonIP-relatedissuesinvolvedinoperationsandassistsotherdepartmentswiththeirIPmanagement.TheCompanyincorporatestrainingonintellectualpropertyrightsmanagementandprotectionintotheannualtrainingforemployees,organizesthemtoparticipateinintellectualpropertyrightsmanagementtrainingofferedbyrelevantdepartments,andinvitesexpertstogivespeciallectures.TheCompanyalsocarriesoutspecialtrainingonthecreation,application,andprotectionofintellectualpropertyrightsamongtheemployeestoenhancetheirawarenessofintellectualpropertyrightsmanagementandprotection.
Emailaddress（sdcxjt@sdcxjt.com）Hotline（0543-6981801、0543-6981777）
Improving Risk Prevention andControl Capabilities
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Stepping Up Information SecurityEffortsTheCompanyattachesgreatimportancetoinformationsecurityandprivacyprotectionandstrictlyobserveslawsandregulationsincludingtheCybersecurityLawofthePeople'sRepublicofChinaandthePersonalInformationProtectionLawofthePeople'sRepublicofChina.TheCompanyhasformulatedtheInformationSecurityStrategyandManagementPolicy,theInformationSecurityEducationandTrainingPolicy,thePasswordManagementPolicyandotherregulations,inordertoenhanceemployees'cybersecurityawarenessandabilitytoprotectinformation.TheCompanycontinuetoimproveinformationsecuritymanagementandoperationsystemstoavoidthenegativeimpactofcybersecurityincidentsontheCompany'soperationsandcustomerprivacyprotection.TheCompanyhasanInformationSecurityWorkingTeam,whichisheadedbytheGeneralManager,whoisalsotheultimateresponsiblepersonforinformationsecurity.TheTeamconsistsofcybersecurityexperts,applicationsecurityexperts,datasecurityexperts,andcomplianceandlegalexpertstomanageinformationsecurity-relatedmattersseparately.Intheeventofanetworksecurityincident,theCompanystrictlyfollowstheIncidentResponseEmergencyPlantotakeaction,shutsdownthefailedlineorserver,removethevirusesandvulnerabilitiesfromtheattackedequipment,andmakeseveryefforttoensurethesecurityoftheCompany'sinformationsystemandimportantdata.Atthesametime,theCompanyusesfirewalls,IPS,IDSandotherfacilitiestomakeinformationmoresecure,andsetsupstrictaccesspermissions,whicharemanagedbytheInformationCentre.Wehaveestablishedacompletedatabackupsystemthroughthecloudplatformtostrengthendatabackupcapabilities.Inaddition,theCompanyregularlyconductsinformationsecurityanddatasecuritytrainingamongallemployeesoftheInformationCentretoimproveemployees'cybersecurityawarenessandriskpreventionandmitigationcapabilities.Thisyear'strainingincludedphishingwebsites,emailidentification,andpasswordsecurityprotection.
Building a Sustainable Value ChainTheCompanyiscommittedtoestablishinggoodcommunicationchannelsandclosepartnershipandbuildingasmoothcooperationmodeltopromotethecommondevelopmentofthevaluechainbyformulatingmanagementstandards,carryingoutbusinesscooperationandexchanges,andpromotingsustainabledevelopmentprojects.Inthisregard,theCompanyhasformulatedmanagementpoliciessuchastheProcurementProcessControlProcedures,the
SupplierControlProcedures,theSupplierEvaluationManagementControlProceduresandtheQualifiedSupplierEvaluationStandardstoclarifysuppliermanagementrequirementsandstandardizethesupplychainmanagementprocess.
InaccordancewiththeSupplierControlProcedures,wecollectinformationandconductqualificationauditsonsuppliersbeforetheyareadmitted,andformauditreports.Uponapproval,weconductcomprehensivereviewsofsuppliersbeforeformalcooperationandrequirethemtosigntheSupplierSocialResponsibilityCommitment,theProhibitedSubstanceAssuranceDeclarationandHSFNoticeandotherdocumentsthatguidethemtoimprovetheirESGperformance.Duringthecooperation,weestablishsupplierauditplanswithreferencetorelevantpoliciesanddocuments,andcontinuouslymonitorsuppliers'performancethroughon-siteevaluation,supplierself-evaluationandsecond-partyevaluation.Wealsocommunicatewellwithoursuppliers,sharingoursustainabledevelopmentconceptandlisteningpatientlytotheirdemands.Thisyear,wecommunicatedwithoursuppliersontheintegrityandbiddingrequirements,andcommonprocurementissuesbyorganizingsupplierassistance,industryexhibitions,in-personmeetingsandexchangeseminars,etc.,tohelpbothsidesmaintaincloseandfriendlylong-termcooperation.Bytheendof2023,theCompanyhadsuccessfullyorganized3symposiums,inviting35supplierstodiscusscooperationanddevelopmentissues,withabout70participants.
Supplier management and coordinateddevelopment
InnovationNewMaterialactivelyengageswithprofessionalthirdpartiesanddownstreamcustomersincollaborativesustainabledevelopmentprojectstoachievesynergiesinsustainabledevelopmentwithourcustomersandotherpartiesacrossthewholevaluechain.Duringtheyear,theCompanydevelopedadigitalcarbonemissioncalculationtoolwithathird-partyprofessionalorganizationtoaccuratelycalculateandmonitorthecarbonfootprintofproductsandfurthermeettherequirementsofdownstreamcustomers.Atthesametime,asasuppliertomanyindustryleaders,theCompanyreceivessocialresponsibilityauditsfromdownstreamcustomerseveryyear,coveringenvironmentalprotection,resourcemanagement,humanrights,etc.,andstrivestobecomearesponsiblesupplier.
Sustainablevaluechaincollaboration
The Company successfully organized 3symposiums，inviting 35 suppliers todiscuss cooperation and development issues,with about70 participants.
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Unite Efforts andJoin Hands toForgeDevelopmentTogetherAdheringtotheprincipleof''IntegrityandTalent,Person-to-postMatching'',InnovationNewMaterialprotectsthelegitimaterightsandinterestsofemployees,empowersemployees'growthinanall-roundwayandshapethecorporatecultureof''jointconstruction,jointcreation,sharedprosperity,sharedbenefits''.Theseeffortsenableustocreateahappyworkplaceandachievewin-winresultswithemployees.Inaddition,weshoulderoursocialresponsibilitiesandparticipateinpublicwelfareactivitiessuchascharitabledonations,socialcareandenvironmentalprotection.Wealsoencourageemployeestotakepartinvolunteeractivitiestobuildanimageofaresponsibleenterprise.
ThischapterrespondstotheUNSDGs
AboutInnovationNew Material
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Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
Recruitment and dismissalTheCompanyhasformulatedtheRecruitmentManagementPolicy,theSeparationofEmploymentPolicyandotherdocumentsthatclarifytheprocessandimplementationstandardsformanagingtheentryandexitofemployees.WerequirerecruiterstoworkinstrictaccordancewiththeRecruitmentManagementPolicy.Wehavesetupmonitoringandreportingmailboxesandatelephonelinetoacceptthemonitoringofcandidatesandthecommunity.Employeeseparationishandledinstrictaccordancewiththerelevantsystemsandprocessestoprotecttherightsandinterestsofemployees.
Remuneration and benefitsInordertobetterserveemployees,wepracticeequalpayforequalwork,andadvocatesforaperformance-basedsalaryincentivepolicywithvariousbonusesandallowances.Thisfairpaysystemcanstimulatetheenthusiasmandcreativityofemployees.Wecontinuetoimprovetheemployeebenefitsbasedonthenationalstatutorystandardstomakeourcompensationsystemmorecompetitive.
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Empowering Employees' Growth
TheCompanyeffectivelyprotectsthelegitimaterightsandinterestsofemployeesbyprovidingafair,justandopenworkingatmosphereaswellasaninclusiveanddiversifiedworkplace,andlocallycompetitiveremunerationpackages.Toenhanceemployees'senseofbelonging,wedoourbesttoensurethatthey''workwell,eatwell,livewell,learnwellandgrowwell''.Wecareforouremployeesinallaspectsofworkandlife,creatingahealthy,safe,beautifulandhappyworkingenvironment.
Commercial insurance, holiday gifts,private car allowance, free workingmeals and accommodations, shuttlebuses, health check-ups, teambuilding fund, association, etc.Additionalbenefits
Insurance and Housing Fund,marriage leave, maternity leave,et cetera.Statutorybenefits
In 2023, the employee satisfaction survey covered 92% of employees, and90%of the surveyed employees were satisfied with the Company.
StrictlyabidingbytheInternationalLaborStandard,theLaborLawofthePeople'sRepublicofChinaandotherstandards,lawsandregulationsathomeandabroad,theCompanyhasformulatedtheEmployeeHandbook,the
CorporateCultureHandbookandotherrulesandregulationswhichclarifythecodeofconductforemployees,emphasizingthemanagementprincipleof''policiesandproceduresgofirst''.Werespectouremployees'socialbackgrounds,nationalities,physicalconditions,genderorientations,religiousbeliefs,etc.,andtreatallofouremployeesequallyintermsofcompensation,recruitment,promotion,andtraining.Bytheendof2023,somesubsidiarieswerecertifiedtotheSA8000:2014SocialAccountabilityInternationalstandard.Westrictlyenforcestandardworkinghoursandarrangeholidaysforouremployeesbasedonstatutoryholidaysandbusinessconditions.Wealsopaysocialsecurityandhousingcontributionsforouremployeesinaccordancewiththerelevantstandards,andpurchaseadditionalcommercialinsurancetoprovideouremployeeswithcomprehensiveoccupationalandsocialsecurity.Inaddition,wefullyrespectandprotectemployees'freedomofassociation,theirrighttocollectivebargaining,beliefs,freedomtoformandjoinlaborunionsandrighttopeacefulassembly,basedonthelaborUnionManagementPolicyandotherrules.
Safeguarding employees'rights and interests
Diversity promotionTheCompanyvaluesthediversityofemployeesintermsofage,gender,andbackground,andhasbuiltaseniormanagementteamconsistingofpromisingyoungtalents,experiencedmiddle-agedtalents,professionalmanagerswhomastermanagement,andseniortechnologistswhoareexpertsinR&D.Theworkforceisacombinationofinnovation,experienceandwisdomthatcanimprovetheoperationefficiency.TheCompanycaresforfemaleemployees,supportingtheircareerdevelopmentandprovidingsupportrolesbasedontheprincipleofequalpayforequalwork.Inaddition,theCompanyhasformulatedacomprehensiveandflexibleleavepolicythatprovidesstatutorymaternityleaveandbreastfeedingleaveforfemaleemployeesandtheirfamilies,andprotectsemployeebenefitsduringspecialperiods.
Employee communication channelsTheCompanysmoothscommunicationchannelsforemployeesandconvenesstaffcongressesregularlytocommunicatewithemployeerepresentativesaboutpolicies,guidelines,corporateculture,rulesandregulations.Tocontinuouslycollectopinionsandsuggestionsofemployeesandfullylistentotheirvoices,theCompanyhassetupstaffsuggestionboxesinthecanteen,thestaffactivitycenterandproductionworkshop,aswellasadirecttelephonelinewhereemployeescancommunicatewiththePresident.Inaddition,theCompanyconductsanemployeesatisfactionsurveyeveryyear,inwhichemployeeswritedowntheiropinionsandsuggestionsonthequestionnaires.TheEnterpriseManagementDepartmentsummarizesandanalysesthequestionnaireandsubmitsittothemanagement.Afterdiscussion,themanagementdeterminestheimprovement,preventiveandcorrectivemeasures,andthecounterpartsensurethattherelevantimprovementsareputintoeffect.In2023,theemployeesatisfactionsurveycovered92%ofemployees,and90%ofthesurveyedemployeesweresatisfiedwiththeCompany.
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7172
Inordertoimprovethe''everyoneadvises''mechanismandpromoteemployeeparticipationincorporatedevelopment,wehaveconductedademocraticappraisalamongallemployees,invitingthemtoevaluatethecadresondutyinananonymousway,andtoexpresstheiropinionsandsuggestionsontheCompany'smanagement,safeproduction,technologicalinnovation,etc.Employees'suggestionsweresummarizedandanalyzedbytherelevantdepartment,andthensubmittedtothePresidentforreviewanddeterminationofrectificationplans.In2023,wemadeadjustmentsbasedonemployees'suggestions,includingincreasingthefrequencyofshuttlebuses,improvingthestandardofemployees'meals,andimprovingaccommodation,andbuildinghigh-standardemployeeactivitycenterTheseeffortswerewidelypraisedbyemployeesandmotivatedthemtobecomemoreinvolvedintheCompany'sdevelopmentdecisions.
DemocraticappraisalforalltopromotetheparticipationofallemployeesinmanagementCase
TheCompanyensuresthatemployees''learnwell''and''growwell''.Adheringtotheprincipleof''learntouseandusewhathasbeenlearned'',wearecommittedtoprovidingemployeeswithasmoothpromotionpathandasoundtrainingsystemtoimprovetheirworkskillsandprofessionalism,stimulatetheirpotential,andlayasolidfoundationforthelong-termdevelopmentoftheCompanyandemployees.
Prioritising employee development
Bytheendof2023,morethan300skilledpersonnelhavepassedthroughindependentevaluation,furtherpromotinginternaldevelopment.
''Fourchannels''underthe''Dualsequences'':''Dualsequences''refertofunctionalsequenceandproductionsequence.Thefunctionalsequenceincludesprofessionalchannelandmanagementchannelwhiletheproductionsequenceincludesskillchannelandmanagementchannel.
Smooth employee development pathsTheCompanyiscommittedtobuildingafair,justandtransparentpromotionsystem.Inordertoensurethefairnessofthepromotionprocess,wehaveintroducedanall-employeedemocraticassessmentmechanism,whichcombinesmultiplefactorstomakeacomprehensiveassessmentoftheemployee'sperformance,includingjobrequirements,performance,anddepartmentalevaluations.Inaddition,wefullyinvestigatetheemployeestobepromotedandhaveestablishedapromotionpublicitysystemtopublicizepromotioninformationaswellasthehandlingofobjectionswithintheCompanytoensurethatthepromotionprocessisfairandtransparent.TheCompanycontinuestoimprovediversifiedpaths,includingthefourchannelsunderthe''dualsequences''
,internalrecruitmentandindependentevaluationplatformforskilledpersonnel,inordertoachieveperson-to-postmatching.Toboostemployeedevelopment,theCompanyhasestablishedaninternalrecruitmentmethodwhereinternalrecruitmentinformationisregularlyreleasedandemployeesareencouragedtoapplyforpositions,thusprovidingemployeeswithmoredevelopmentopportunities.TheCompanyhasobtainedShandongEnterpriseSkillsSelf-evaluationQualification,whichprovidesmoreopportunitiesforskilledpersonneltolearn,evaluateanddevelop.Bytheendof2023,morethan300skilledpersonnelhadpassedthroughindependentevaluation,furtherpromotinginternaldevelopment.
Improving the employee training systemTheCompanyfostersaloveoflearningamongallemployees,andiscommittedtobuildingtheCompanyintoamoredynamicandinnovativelearningorganization,providingemployeeswithmoreopportunitiesforgrowthanddevelopment.WehaveformulatedtheTrainingManagementPolicyandofferemployeeslearningresourcesandplatforms.Inthisway,employeesareencouragedtoimprovethemselvesandadaptthemselvestotheneedoftheCompany'sglobalizationstrategy.Inordertoinvolveallemployeeintothetrainingprogram,wehavecarriedoutsystematictrainingprogramsforemployeesindifferentpositionsandgrades,including:
Toimprovethetrainingefficiencyandenrichthecontent,theCompanyhasbuiltonlinetrainingplatformssuchasthe''MagicSchool''and''DechuangBusinessSchool''tocontinuouslyexploretrainingresourcesandmethodsandimproveemployees'satisfaction.Moreover,inordertomotivateouremployeestolearn,wehavesetuptheAcademicUpgradingIncentivePolicy,whichstandardizesstudysubsidies,includingsubsidiesfortitles,certificatesofcertifiedsafetyengineers,andotherskillsofothercorrespondingoccupationalgrades.
For middle and seniormanagement
We adopt a ''input andoutput'' training method.They are required toparticipate in the''condensed EMBA'' training,and transfer the learningresults to the whole staff. Inthis way, we try to promoteconsistency between thethinking of the managementand that of the working level.
For new employees
We hold seminars,symposiums and teambuilding activities to listen totheir voices. We continue toupdate the training PPT andenrich the training courses sothat new employees have anin-depth understanding ofthe Company. We also adoptan ''instructor'' approach tohelp them integrate into theCompany more quickly afterjoining.
For technicalmanagement personnelWe carry out the ''teamleader training'' and ''furnaceprogram'' training session forreserve talents, and cultivatereserve talents in theproduction managementsystem through the''independent evaluation ofskilled talents'' platform.
Symposium for reserve talents
Thisyear,InnovationSheetMaterialorganizedasymposiumforreservetalentstohelpthemfullyunderstandthetrainingrequirements,adapttothenewworkingenvironmentassoonaspossibleanddevelopahigh-qualitytalentpool.Atthesymposium,theGeneralManageremphasizedtherequirementsforthereservetalentsintermsofworkingconditions,mindexpansion,workinghabits,etc.Theleadersofeachdepartmentclarifiedthetrainingobjectivesandhabitsforthereservetalentsintheirdepartmentsandencouragedthemtodevelopwithapositiveandpeacefulmindset,demonstratingtheCompany'sfocusontalent.
AsymposiumoninnovativereservetalentstostrengthentalentteamdevelopmentCase
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7374
Opening ceremony of the second training session of the ''Furnace Programme'' for reserve talents''Lean Management Enhancement'' training completion ceremony
Thisyear,InnovationMetalsuccessfullyheldthesecondtrainingsessionofthe''FurnaceProgram''forreservetalentsandselected41traineesthroughcompetitiveexaminationanddepartmentalrecommendation.Thistrainingsessionisbasedonthevisionof''buildingpassionateteam,creatingcorevalue''andincludesacurriculumdesignedtohelptraineespursue''exercise,practice,breakthrough,innovation,value''withthecoreobjectiveof''lowercosts,higherefficiency,andmorebenefits''.Thetrainingprogramaimstoenableemployeestobenefitfromwhattheylearn,andtobuildasolidtalentbasefortheCompany'sscientificandtechnologicalinnovation.
The''FurnaceProgram''reservetalenttrainingsessionCase
Thisyear,InnovationPrecisionsuccessfullyheldthethird''LeanManagementEnhancement''training,withatotalof66participants.ThetrainingincludedtheQualityManagement-SixSigmaSystem,LeanProductionManagementPractice,FourStepstoProjectManagementandLeanProductionTechnique,whichconveyedthebasicknowledgeandskillsofleanmanagementtotheparticipantsintheformofwork-basedlectures.Thiscourseprovidedknowledgeandtechnicalsupportforsystematicleanmanagement,andlaidasolidfoundationforleanmanagement.
Atrainingcourseon''LeanManagementEnhancement''tostrengthenmanagement'sknowledgeandskills
Case
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7576
TheCompanyalwaysadherestotheprincipleof''people-oriented''andplacesgreatimportanceonthewell-beingofemployees.Tothisend,theCompanyensuresthatemployees''workwell,eatwell,playwell'',creatingabetterworkingandlivingenvironmentforemployees.
Caring for employees
Workwell
Garden-style factory
Wecreateagarden-stylefactoryandofficeenvironmentforemployeesandprovidethemwithafavorableworkingenvironment.
Eatwell
Daily meals for employees
Weprovideemployeeswithhigh-standardandfreeworkingmeals,sothattheycaneatwell.
PlaywellWeprovideemployeeswithhigh-standardapartmentsaswellaswell-equippedrecreationalfacilities,includinggymnasiums,indoorbasketballcourts,badmintoncourts,billiardcourt,Tabletenniscourt,audio-visualroom,readingroom,yogaroom,laundryroom,etc.,ofwhichthegymisequippedwithmultifunctionaltreadmill,ellipticalmachine,mountaineeringmachine,waistandbackmulti-functionalabdominalmuscletrainer,shoulderpressbench,barbellbenchandotherequipment,lettingemployeesfullyenjoyleisuretimesbesideswork.
Employee Activity Center
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7778
TheCompanyattachesgreatimportancetoemployees'workplacehappinessandsenseofbelonging,andorganizesavarietyofculturalandsportsactivities,sothatemployeesworkininnovation,happinessininnovation.In2023,wehavecarefullyorganizedmorethan50varioustypesofemployeeactivities,morethan40employeeskillscompetitions,includingtheannualsummaryoftheGeneralAssembly,theCompany'sannualmeeting,the8thofMarchWomen'sDayactivities,theMayDayWorkers'SportsDay,Mid-autumnFestivalactivities,ThanksgivingDayactivities,Christmasactivities,NewYear'sDayTeaParty,rewardactivitiesforemployees'children'sadvancementtohighereducation,seminarsforgraduates,knowledgecompetitionactivities,etc.,aimingatenrichingthelifeofemployees,promotingthefriendshipofcolleagues,conveyingtheCompanyculture,andfurtherenhancingthesenseofidentityandreputationofemployeestotheCompany.Thisyear,wealsorewardedatotalof98vehiclesfortheCompany'sloyalteamrolemodels,recognizingtheirconsistenthardworks.
Weprovidehigh-standardapartmentstoemployees.Atpresent,theCompanyhasatotalof2,598dormitoriesinvariousparks.Tocontinuouslyimproveemployeelivingconditionsandmeettheaccommodationneedsofnewemployees,theCompanyhasbuiltandputintouse344dormitoriesthisyear.
Employee Apartments
At present, the Company has a total of 2,598dormitories in various parks.The Company has built and put into use344dormitories this year.
In2023,wehavecarefullyorganizedmorethan50varioustypesofemployeeactivitiesMorethan40employeeskillscompetitionsWealsorewardedatotalof98vehiclesfortheCompany'sloyalteamrolemodels
Enrolment celebration activity for employees' children
Campaigns of ''health education on traditional Chinese medicine for the International Women's Day''
In2023,atotalof108employeesandtheirchildrenvisitedthehigh-strengthandhigh-toughnessaluminumalloyrodproductionworkshopinInnovationMetal,theNo.1andNo.2aluminumextrusionworkshopsinInnovationPrecision,andthecoldrollingproductionworkshopandproductdisplayzoneinInnovationSheetMaterial.Duringtheactivity,representativesofemployees'childrendeliveredrousingspeeches,sharingtheirlearningexperiences,expressingtheirgratitudetotheirparentsandwishingtheCompanyaprosperousfuture.ThisactivityhasfurtherstrengthenedthecohesionandcentripetalforceoftheCompany,stimulatedthestaff'ssenseofidentityandbelongingness,anddeliveredtheCompany'shumanisticcareforemployees.
Enrolmentcelebrationactivitiesforemployee'schildrentoshowhumanisticcareCase
InMarch2023,theCompanyjoinedhandwithZoupingHospitalofTraditionalChineseMedicinetoholdtwocampaignsof''HealthEducationonTraditionalChineseMedicinefortheInternationalWomen'sDay'',involvingmorethan140femaleemployeeparticipants.Doctorsfromthehospitaleducatedfemaleemployeesonthepreventionandtreatmentofcommonfemalediseasesandshareddailyself-careprogramstopromoteahealthylifeforthem.Inaddition,doctorsinterpretedindetailthecommandsandmovementsofthe''BaduanjinQigong''tohelpemployeescultivategoodlivinghabitstoachievephysicalandmentalhealthandfamilyharmony.
Holdingcampaignsof''HealthEducationonTraditionalChineseMedicineforthe
InternationalWomen'sDay''toadvocaterightideaonhealthCase
AboutInnovationNew Material
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797980
Protecting Work Safety
Attachinggreatimportancetoproductionsafetyandemployeehealth,theCompanyadherestothehealthandsafetymanagementpolicyof''safetyfirst,preventionatthecore,comprehensivemanagement,continuousimprovement,peoplecentricity,andsafedevelopment''.Weadheretothesafetymanagementconceptof''allriskscanbecontrolledandallaccidentscanbeprevented'',andcontinuouslyoptimizethesafetyriskidentificationandcontrolprocess.Besides,weimplementtheworksafetyresponsibilitysystem,improvetheworksafetyprotectionandmanagementcapacity,andstrengthenthemonitoringofoccupationalhealth,toprovideemployeeswithasafeandhealthyworkingenvironment.Bytheendof2023,theCompany'sheadofficeand9subsidiarieshadcompletedtheacceptanceofsafetystandardization(levelIII)andactivelysubmittedtheapplicationforacceptanceofsafetystandardization(LevelII)totherespectiveprovincialdepartmentsofemergencymanagement.Duetotheexistingreconstructionandexpansionprojects,therespectiveemergencymanagementdepartmentsdidnotarrangeacceptancefortherestsubsidiaries.However,thesafetystandardizationsystemhadbeenestablished,improvedandeffectivelyoperatedinsuchsubsidiaries.Atpresent,9oftheCompany'ssubsidiarieshaveobtainedISO45001occupationalhealthandsafetymanagementsystemcertification.
By the end of 2023, the Company's headquarter and 9subsidiaries had completed theacceptance of safety standardization (level III).
8subsidiaries of the Company have achieved ISO 45001 OccupationalHealth and Safety Management System certification.
Safety CommitteeThe head of the safetycommittee holds quarterlymeetings to summarize,deploy and coordinate thepromotion of safetymanagement, formulatesannual work safety objectivesand plans, to promote safetymanagement in eachsubsidiary;
Safety and Environmental
Supervision Department
The Department of Safety andEnvironmental Supervision acts asthe office of the Safety Committee,plays the role of unified deploymentof safety management,coordination of services, trainingand guidance, and comprehensivesupervision, and performs thefunction of safety services. TheDepartment also continuouslyimproves the work safety systemand optimizes the workflowaccording to the actual productionneeds;
Each subsidiary
Be fully responsible for itsown safety work, carries outthe main safe productionactivities, accepts the Group'ssupervision on safetymanagement, and undertakesthe safety management tasksassigned by the headquarter.
''Double-wheel driving'' structure of productionmanagement for all employeesTheCompanybuildsa''double-wheeldriving''systemforsafetymanagement,withtheunifiedmanagementoftheGroupandmanagersofsubsidiariesastheactivewheel,andthehierarchicalmanagementofsubsidiariesandthe12elementsofsafetymanagementasthepassivewheel.Underthejointeffectoftheworksafetyresponsibilitysystemforallemployeesandtheperformanceevaluation,theCompanycreatesaprogressiveproductionsafetymanagementmodetoeffectivelyconductworksafetymanagementmeasures.
Two''One''Centralisedmanagementby the Group
ManagementManagementbyBranch leaders
Team
Fivelevels of
control
12 elements
of safetymanagement
The driving wheelThe driven wheel 1The driven wheel 2
TheCompanycontinuestoimproveitssafetymanagementrulesandregulationsandhasformulatedaseriesofpolicieswithrespecttoworksafetyresponsibility,riskassessmentandcontrolmanagement,specialoperationpersonnelmanagement,operationsafetymanagement,occupationalhealthmanagement,worksafetyassessmentmanagement,emergencymanagement,andsafetyperformanceevaluationmanagement.Inordertoeffectivelyimplementhealthandsafetymanagement,theCompanyhasestablishedatop-downmanagementmodelwithunifiedleadershipandformulationofworksafetyobjectivesandplansbytheSafetyCommittee,unifiedsupervisionandmanagementbytheSafetyandEnvironmentalSupervisionDepartment,andindependentmanagementbyeachsubsidiary.Inaddition,theCompanyemphasizesthecoreconceptof''whoevermanagesproductionmustmanagesafety''and''whoevermanagessafetymustunderstandsafety'',andcontinuouslystrengthenstheconstructionofthesafetymanagementteam.TheCompanyimplementsthetitlesubsidysystemforCertifiedSafetyEngineers(CSE)andprovidessubsidiesforexaminationandtrainingcoststoencouragefull-timesafetymanagementpersonneltotaketheCSEexamination.Inrecentyears,atotalof57safetymanagementpersonnelandproductionmanagementcadreshaveparticipatedinCSEstudies,trainingsandexaminations,andmorethan40employeesarecertifiedsafetyengineers.
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TheCompanycontinuouslyimprovestheidentification,assessment,managementandmonitoringofoccupationalhealthandsafetyrisks.WehaveformulatedtheGradedRiskManagementandControlListtomanagethesafetyriskshierarchicallybasedontheindustrypracticesonaccidentsandthehazardsidentified.Fordifferentrisksources,wehaveformulatedtheRecordsofIdentification,EvaluationandAnalysisonRisks,whichclarifiestheengineeringandtechnicalmeasures,managementmeasures,trainingandeducationmeasures,individualprotectionmeasuresandemergencyresponsemeasuresforpreventingeachrisk,toensuretherationalityandoperabilityofthecontrolmeasures.Inaddition,tocontinuouslyenhanceitsriskidentificationandmanagementcapabilities,theCompanyestablishesapoolofinternalsafetyexperts,andcarriesoutmonthlyinspections,regularcomprehensiveinspectionsandspecialsafetyinspections.Atthesametime,theCompanyemploysqualifiedexternalunitstocarryoutinspectionseverysixmonthstocomprehensivelyidentifysafetyrisks.Forthesubsidiaries,weemphasizethatalllevelsattachgreatimportancetotheinvestigationandmanagementofhealthandsafetyhazards.Andwerequireoursubsidiariestoorganizesafetyinspectiononceeverymonth,undertheleadershipofthemainmanagersandtheengagementoftheheadsofworkshops.Workshopsarerequiredtoorganizesafetyinspectiononceeverymonth,undertheleadershipoftheworkshopdirectorsandtheengagementoftheteamleaders.Bytheendof2023,theCompanyhadachieved100%rectificationforhazards,withover95%ofhazardsrectifiedinfirstre-inspection.Ifanaccidentoccurs,theCompanyrequiresallsubsidiariestoseriouslyimplementtheprincipleof''NoForgiveness''
.Whileinvestigatingaccidentsandtracingworksafetyloopholes,westrivetofurtherpromotesafetytraining,preventivemeasures,andhazarddetectionandrectification,toresolutelyavoidany''gap''inresponsibilityorany''blindspot''inmanagement.Thisyear,theCompanyhadnoworkfatalitiesorseriousinjuries.Inresponsetopotentialsafetyemergencies,theCompanyhasestablishedcomprehensiveemergencyrescue,mitigationandremediationmeasuresandrequireseachsubsidiarytoformulateanEmergencyPlanforWorkSafetyAccidentsbasedontheiractualsituation,andtosetupemergencyfacilities,prepareemergencyequipmentandreserveemergencymaterialsatthesite.
Controlling safety risks
Adheringtotheprincipleof''replacinglaborwithmechanization,reducinglaborwithautomation,andrealizingunmannedoperationwithintelligence'',theCompanycontinuouslycarriesouttechnologicaltransformationandequipmentupgrading.topromoteintelligentandautomaticequipmentinpartoftheproductionprocess,soastoensurethesafetybymitigatingworksafetyriskthroughlaborintensityreduction.Thisyear,theCompanyvigorouslypromotedtheconstructionoftheintelligentmonitoringinformationplatform,integratingthesafetydetectionalarmdataandlinkagedataintothesafetymanagementplatformtorealizethedailycentralizedcontrolandmanagementofhealthandsafety.Atthesametime,wehaveimplementedintelligentsurveillanceviolationdetectionandearlywarning,andusedintelligentanalysistechnologytoanalyzeanddeterminebehavioralviolationsinthesurveillancearea.Wehavesetupelectronicfencestodetectviolationssuchasoff-duty,overcrowdingandlackoflaborprotectioninrealtime.Ifrelevantbehaviorsoccur,thesystemwillimmediatelysendouton-sitealarmstostopandcorrecttheviolations.
Intelligent safety management
Namely,noforgivenessforthefollowingsituations:thecauseoftheaccidenthasnotbeeninvestigated;nopreventivemeasureshavebeentaken;thepersonresponsiblefortheaccidenthasnotbeenpunished;andlessonshavenotbeenlearnedfromtheaccident.
Evaluation indicatorsControl objectives
Safety responsibility
system
Qualified rate of compliance with the work safety responsibility system100%Pass rate of safety education and training100%Percentage of special operation personnel licensed to work100%Rate of controlled sources of danger100%Pass rate of one-time review of hazards (including deferredrectification)
95%Completeness rate of complete devices, safety signs and emergencyfacilities
100%Completion rate of emergency drills100%
Management of work
injuries
Work-related fatalities0Occupational disease rate0Serious accidents0Minor injury rate per one thousand people10%
Toefficientlyimplementtheworksafetyresponsibilitysystemforallemployees,theCompanyadherestothepositiveincentiveconceptof''rewardfirst,penaltysecond'',andhasestablishedasafetyperformanceassessmentsystemandformulatedtheMeasuresforSafetyPerformanceAssessmenttoclarifytherequirementsonsafetyresponsibility,zerotoleranceofaccidents,andthetargetrewardandpunishmentmode,soastodriveallemployeestofulfiltheirdutiesinworksafetyindependently.TheCompanyorganizesquarterlycomprehensiveinspectionsforsafetymanagementpersonnelandtechniciansofeachsubsidiaryandimplementsdailymanagementsafetyperformanceappraisal.Basedonindicatorssuchasworkinjuries,performanceofsafetyresponsibilities,training,controlledsourcesofdanger,andrectificationforhazards,theCompanyevaluateson-sitesafetymanagement,performanceofsafetyresponsibilities,andachievementofgoals.Basedontheyear-endcomprehensiveassessment,theCompanyrewardsmiddleandseniormanagement(includinggeneralmanagersofsubsidiaries)andgrass-rootscadresinaccordancewiththerulesandregulations.Key Performance Indicators for Health and Safety
TheCompanyhadachieved100%rectificationforhazards,withover95%ofhazardsrectifiedinfirstre-inspection.
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8384
TheCompanyattachesgreatimportancetothecultivationofemployees'healthandsafetyawareness,andregularlycarriesoutavarietyofoccupationalhealthandsafetytrainingforemployees.WehaveformulatedtheSafetyEducationandRetrainingProgramforPractitioners,whichincludesmonthlytrainingforallemployees,teamactivities,''three-level''safetyeducationfornewemployees,aswellascompetencetrainingforpersonnelindifferentpositions.TheCompanyrequiressubsidiariestoconductmonthlymeetingsonsafetytoshareandlearntheknowledgeofsafetymanagement.AsrequiredbytheCompany,forcompaniesinvolvedinmoltenmetalproduction,thetotaldurationoftrainingforallemployeesshallbenolessthan20hoursperyear;forcompaniesinnon-high-riskindustries,thetotaldurationoftrainingforallemployeesshallbenolessthan8hoursperyear.During2023,theCompany'semployeesafetytrainingparticipationratewas100%.
Improving safety awareness
Werequireproductionandoperationunitstoorganizecomprehensiveorspecialemergencydrillatleastonceeveryyear,aswellastoorganizefullspecialdrillatleastonceeverythreeyears.Werequireeachproductionandoperationunittoestablishanemergencydrillrecordafterthedrillandevaluatethedrilleffect,soastoidentifydeficienciesandmakecontinuousimprovements.
Emergency management training
Innovation new material's highlight health and safety training courses
During 2023, the Company's employee safetytraining participation rate was100%.
The Company requires allnew employees to receivesystematic andcomprehensive safetymanagement educationbefore work. Among these,the duration of pre-servicetraining for employeesinvolved in molten metaloperations shall be no lessthan 72 hours; and theduration of pre-servicetraining for employees ofcompanies in non-high-riskindustries shall be no lessthan 24 hours. Newemployees will be allowedto start work only afterpassing a training test.
To enhance theprofessional competence ofbusiness personnel, theCompany employsqualified external trainingagencies to provide trainingon safety management andsafety technology review forfull-time safetymanagement personnel,production managementcadres and specialoperation personnel.
The Company requiresteam leaders of each shiftto carry out safetyeducation activities in themorning meeting,informing about thesituation of on-site safetyproduction and problemsin the previous shift. Theteam leaders are requiredto declare the risk points,key preventive measuresand emergency responsemeasures of the team,check the working status ofthe participants, andconduct random checks onthe key work of safetyproduction for the teammembers.
Training for Front-lineEmployeesProfessional Technical
Safety Training
Training for New
Employees
Thisyear,InnovationSheetMaterialorganizedofflinetrainingonemergencymanagementfor1,300workersinproductionlineandthoseinchargeofworksafety.Thetrainingincludesthegeneralknowledgeofemergency,emergencyplans(emergencyresponseduties,emergencyresponseproceduresandmeasures,etc.),self-rescueandmutualrescueandescapetechniques.Italsoincludesthecorrectuseofprotectivefacilitiessuchasairrespirators,fireextinguishersandsafetybelts,aswellasanalysesoftypicalaccidentcases.
OrganizingemergencymanagementtrainingtoenhancesafetyawarenessofemployeesCase
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8586
Withregardtooccupationalhazards,theCompanyadherestothecomprehensiveprinciplesofprevention,control,reductionandeliminationtopreventoccupationaldiseases.Inordertoeffectivelydealwiththeoccupationalhazardsofdifferentpositions,theCompanyregularlyissuesstandardizedoccupationalprotectiveequipmenttoemployeesand,througheducation,urgesthemtouseandkeeptheequipmentcorrectly.Atthesametime,theCompanyhasstandardizedthemanagementofpre-service,in-serviceandoff-serviceoccupationalhealthcheck-ups,andestablishedpersonalhealthfileforeveryemployee.Thisyear,nooneintheCompanysufferedfromoccupationaldiseases.
Safeguarding occupational health
TheCompanyincorporatesdispatchedlabors,third-partyemployees,externalconstructionparties,andotherexternallyhiredpersonnelintotheunifiedsafetymanagementsystem.Theselectionofcooperativeconstructorsrequiresverificationoftheirqualificationsandpersonalinjuryinsurancecoveringtheconstructionpersonnel,andthelicensingofspecialoperators,toensurethattheiremployeesgainthehealthandsafetyprotection.TheCompanysignssafetymanagementagreementswithexternalconstructionunitsandjointlyformulatesplansfordangerousoperations,andrequiresthemtocarryoutsafetynotificationtrainingandassessmentbeforeenteringtheproductionplant.Inaddition,theCompanyconductsdailyandregularsafetyinspectionsforexternalconstructionunits,andcarriesouton-sitepre-operationhazardinspectionsmonthlytoensurethesafetyforthird-partyconstructionpersonnel.
Third-party safety management
Occupational health management training
InSeptember2023,InnovationSheetMaterialorganizedofflineoccupationalhealthmanagementtrainingforallworkersinproductionlineandthoseinchargeofworksafety.Thetrainingcomprehensivelycoversthebasicknowledgeofoccupationaldiseasepreventionandcontrolregulations,therightsandobligationsofworkersinoccupationalhealthprotection,themainoccupationaldiseasehazardsandpreventivemeasuresforjobs,aswellastheuseandmaintenanceofpersonallaborprotectiveequipment.Thepurposeofthetrainingistoraiseemployees'awarenessofoccupationalhealthandtoassisttheminbetterunderstandingandfulfillingtheirresponsibilitiesinoccupationalhealth.
OccupationalhealthmanagementtrainingCase
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8788
TheCompanyattachesgreatimportancetoenvironmentalprotectionandencouragesemployeestoprotecttheenvironment.Weextendtheconceptofenvironmentalprotectiontopublicwelfareactivitiestopromotethegreenandsustainabledevelopmentofthesociety.
Environmental protection
TheCompanyhasalwaysinsistedongivingbacktothesocietyandactivelyengagedincharitabledonations.Basedonouradvantagesinresources,wehavesetup''Lvxingren'',apublicwelfareorganization,toshareourachievementswiththesociety.
Charitable donations
TheCompanyalwayspaysattentiontotheneedsofdisadvantagedgroups,anddeliverssocialcareinvariouspublicwelfareactivities,activelycreatingafairandharmonioussocialatmosphere.Social care
Adheringtotheconceptof''nopoorstudentdroppingoutofschool'',theCompanyactivelycarriesoutthe''TrinityofSponsorship''activitytoprovidemoreopportunitiesforgood-performancestudentsfromdisadvantagedfamiliesinpoverty-strickenareastostudy,soastopromoteequalityineducationandfulfilitssocialresponsibility.
Holdingthe''TrinityofSponsorship''tohelppoorstudentsmakedreamscometrueCase
Caringabouttheseniors,theCompanyorganizedemployeestothehomesfortheelderlyinGaoxinTown,XidongTown,JiaoqiaoTownandWeiqiaoTowninBinzhoutovisitseniorsundercentralizedsupportandpeopleinexceptionalpoverty.TheCompany'sconsolationteamwentwithflour,cookingoilandconsolationmoney,andgainedin-depthunderstandingofthedailylifeoftheseniorsthere,demonstratingouremployees'exemplaryroleindedicatingtothesocietyandhelpingtheseniors.
VisitinghomesfortheelderlyandwarmingtheheartsoftheseniorsCase
Distribution of consolation money to the seniors
Ceremony of ''Trinity of Sponsorship''
Tohelpemployeerelativessufferingfromcerebralhaemorrhage,''Lvxingren''issuedafund-raisinginitiative,whichwassupportedbytheCompany'scadresandemployeeswithdonations.InAugust2023,''Lvxingren''handedovertheraisedfundtothebeneficiaries,embodyingthespiritofsolidarityandfraternity.
''Lvxingren''raisedfundtohelppatientsovercomedifficultiesCase
Charitable donation ceremony
InNovember2023,''Lvxingren''carriedoutactivitiesthemedon''Enhancingenvironmentalprotectionawarenesstojointlybuildaninnovativehome''.Atotalof81employeesparticipatedintheactivities.Theypickeduprubbishatdesignatedplacesandcleanedupalongtheroads,contributingtotheprotectionofurbanecology.
EnhancingenvironmentalprotectionawarenesstojointlybuildaninnovativehomeCase
Public welfare activities for environmental protection
Facilitating Harmonious SocialDevelopmentTheCompanyisdeeplyengagedinpublicwelfareprojects,andcallsonemployeestoactivelyparticipateinvoluntaryactivitiestobuildanimageofresponsiblecorporatecitizenship.Thisyear,theCompanyorganizedandparticipatedinvariousprojectscoveringcharitabledonation,socialcare,environmentalprotectionandothers,inabidtofulfilitssocialresponsibilityfromallaspectsandenhanceitsbrandimageandsocialinfluence.
AboutInnovationNew Material
SustainableDevelopmentManagement
Pursuing GreenCycle toPromote GreenDevelopment
Green-drivenInnovation andProduct-ledDevelopment
Practicing SoundManagement toPromote Responsibility-Driven Development
Unite Efforts andJoin Hands toForge DevelopmentTogether
8990
Key ESG Performances
Key Performance IndicatorsUnit2023
Greenhouse Gas (GHG) Emission
Total GHG emissionTons (CO
equivalent)865,967.35?Direct GHG emission (Scope 1)Tons (CO
equivalent)387,053.55?Indirect GHG emission (Scope 2)Tons (CO
equivalent)478,913.80GHG Emission Intensity?Aluminum rodsTons (CO
equivalent)/tons0.12?Aluminum rods and cablesTons (CO
equivalent)/tons0.13?Aluminum profilesTons (CO
equivalent)/tons1.09?Aluminum sheets and foilsTons (CO
equivalent)/tons0.52?Structural components
Tons (CO
equivalent) /10,000
pieces
10.47
EnergyTotal energy consumptionTons of standard coal272,109.36Total direct energy consumption
Tons of standard coal203,646.04?GasolineTons190.56?DieselTons698.16?Natural gasCubic meters166,541,868.00Total indirect energy consumption
kWh576,592,451.99?Solar powerkWh19,527,164.00?Purchased electricity
kWh557,065,287.99
Environmental KPIs
Key Performance IndicatorsUnit2023Water Resource Usage
Total water withdrawalTons2,647,465.33Wastewater
Total compliant industrial wastewater dischargesTons19,499.00By contents of substances inwastewater
Ammonia Nitrogen Dischargein Wastewater
Kg69.05Chemical oxygen demandKg1,851.89Waste Gas
Sulfur oxides (SOx) emissionTons20.72Nitrogen oxides (NOx) emissionTons208.86Particulate matter emissionTons43.78Volatile organic compound (VOC) emissionTons2.01
Waste
Total hazardous waste generated
Tons61,141.56Total hazardous waste treatedTons61,676.64Total general industrial solid waste generatedTons637,436.18Total utilization of general industrial solid wasteTons562,552.41Secondary Aluminum Recycling
Total recycling of secondary recyclingTons698,900.00
TheCompany'swaterwithdrawalsarefrommunicipalwatersupplies,andtherearenowithdrawalsfromareasofhighwaterpressure.
Hazardouswastemainlyincludesaluminumash,dustremovalash,oil-containingdiatomaceousearth,wasteoil,wastesludge,andwasterollingoil.
Secondaryaluminumrecyclingconsistsofmarketscrapandindustrialresiduals.
ThecoverageofthefollowingKPIsisthesameasthatoftheconsolidatedstatements.Incaseofanydiscrepanciesbetweenthetotalnumberandthesumofthedataandratiosdisclosedherein,itisduetorounding.
Directenergyconsumptioncoversgasoline,dieselandnaturalgas.TheresultiscalculatedinaccordancewiththeGeneralRulesforCalculationoftheComprehensiveEnergyConsumption(GB/T2589-2020).
Indirectenergyconsumptioncoverssolarpowerandelectricityconsumption.TheresultiscalculatedinaccordancewiththeGeneralRulesforCalculationoftheComprehensiveEnergyConsumption(GB/T2589-2020).
Purchasedelectricityconsistsofelectricitypurchasedfromthenationalandnon-nationalgrid.
Key Performance IndicatorsUnit2023Employee TrainingTraining coverage%100Employee training total timeHours310,553Total training time by gender
MaleHours207,967FemaleHours102,586Training time per capita by gender
MaleHours38.76FemaleHours37.88
Training time per capita by employmenttype
Production personnelHours49.91Sales personnelHours60.47R&D personnelHours69.99Finance personnelHours35.95Procurement personnelHours48.48Management personnelHours71.46Other admin and logistics personnelHours62.11
R&D Investment
Total R&D investmentRMB 10,00051,431.25Total employees on R&D positionsPerson814
Social KPIs
9192
Key Performance IndicatorsUnit2023
Employment
Total employeesPerson10,724By gender
MalePerson7,361FemalePerson3,363By employment type
Full-time employeesPerson10,724Part-time employeesPerson0Workers besides employees
Dispatched workersPerson212Dispatched workers from contractorsPerson409Management level employeesnumber and proportion bygender
Male management level employeesPerson198Female management level employeesPerson24Proportion of male management level employees%89.19Proportion of female management level employees%10.81By region
Chinese mainland employeesPerson10,671Overseas Territories employeesPerson53
Employee Health and Safety
Lost work time due to work injuriesDays5,710Number of work injuryincidents
Employee53Contractor0Number of work-relatedfatalities
Number of deaths0
9394
Key Performance IndicatorsUnit2023Suppliers
Total suppliers
2,233By region
Chinese Mainland2,221Overseas Territories12
By level
Total level 1 suppliers
2,233Total key level 1 suppliers
Proportion of procurement from key level 1suppliers
%74.02None-level 1 key suppliers0Key suppliers (include level 1 and none-level 1)91
Number of suppliersparticipating in evaluation andtraining
Suppliers that passed onsite evaluation1,500Number of suppliers assessed to have significantactual/potential negative impacts
Percentage of suppliers with significant actual orpotential negative impacts that have takencorrective action or improvement plans
%0Number of suppliers with significantactual/potential negative impacts terminated
Total number of suppliers supported in correctiveaction plan implementation
By main operating region (Shandong province) of supplier, proportion of totaltransaction amount
%43Anti-corruptionNumber of corruptionlawsuits filed and concluded against the Company or itsemployees during the reporting period
Number of discrimination or harassment lawsuits filed and concluded against theCompany or its employees during the reporting period
Number of customer privacy data lawsuits filed and concluded against the Companyor its employees during the reporting period.
Number of conflict of interest lawsuits filed and disposed of against the Company orits employees during the reporting period
Number of money laundering or insider trading cases filed and concluded againstthe Company or its employees during the reporting period
ThetotalnumberofsuppliersthatgeneratedtransactionswiththeCompanyduringthereportingperiod.
Tier1suppliersrefertosupplierswhohavetransactionsdirectlywiththeCompany.
ImportantsuppliersarethesumoftheCompany'sClassAandClassBsuppliers.
GRIStandards
DisclosureChapter(s)intheReportGRI 2 The Organization and Its Reporting Practices2-1Organizational detailsAbout Innovation New Material2-2
Entities included in the organization's sustainability
reporting
About the Report2-3Reporting period, frequency and contact pointAbout the Report2-4Restatements of information/2-5External assurance/GRI 2 Activities and Workers2-6Activities, value chain and other business relationships
About Innovation New Material, Building a Sustainable
Value Chain2-7Employees
Innovation New Materials in Figures
Key ESG Performances2-8Workers who are not employeesKey ESG PerformancesGRI 2 Governance2-9Governance structure and composition
Sustainable Development Management, Innovation
New Material 2023 Annual Report2-10
Nomination and selectionof the highest governance body
Innovation New Material 2023 Annual Report2-11Chair of the highest governance bodyInnovation New Material 2023 Annual Report2-12
Role of the highest governance body in overseeing themanagement of impacts
Innovation New Material 2023 Annual Report2-13Delegation of responsibility for managing impactsInnovation New Material 2023 Annual Report2-14
Role of the highest governance body in sustainabilityreporting
Sustainable Development Management2-15Conflicts of interestSustainable Development Management2-16Communication of critical concernsSustainable Development Management2-17Collective knowledge of the highest governance body/2-18
Evaluation of the performance of the highestgovernance body
/
GRI Standards IndexStatementofUse
Forthe2023reportingperiod,InnovationNewMaterialpreparedreportwithreferencetotheGRIStandards.GRI1UsedGRI1:Foundation2021
9596
GRIStandards
DisclosureChapter(s) in the Report
2-19Remuneration policiesEmpowering Employees Growth2-20Process to determine remuneration2-21Annual total compensation ratio/GRI 2 Strategy, Policies, and Practices2-22Statement on sustainable development strategyMessage from the Chairman2-23Policy commitments
Strengthening Business Ethics Construction,Empowering Employees Growth2-24Embedding policy commitmentsStrengthening Business Ethics Construction2-25Processes to remediate negative impacts2-26Mechanisms for seeking advice and raising concernsStrengthening Business Ethics Construction2-27Compliance with laws and regulationsNo major incidents of violation2-28Membership associations/GRI 2 Stakeholder Engagement2-29Approach to stakeholder engagementCommunications with stakeholders2-30Collective bargaining agreementsEmpowering Employees GrowthGRI 3 Material Topics3-1Process to determine material topics
Communications with stakeholders, Materiality issueanalysis3-2List of material topics
Communications with stakeholders, Materiality issueanalysis3-3Management of material topics/GRI 201: Economic Performance201-1Direct economic value generated and distributedInnovation New Material 2023 Annual Report201-2
Financial implications and other risks andopportunities due to climate change
Actively responding to climate change201-3
Defined benefit plan obligations and other retirementplans
Empowering Employees Growth201-4Financial assistance received from government/GRI 202: Market Presence202-1
Ratios of standard entry level wage by gendercompared to local minimum wage
/
GRIStandards
DisclosureChapter(s) in the Report202-2
Proportionofseniormanagementhiredfromthelocal
community
/GRI 203: Indirect Economic Impacts203-1InfrastructureinvestmentsandservicessupportedFacilitatingHarmoniousSocialDevelopment203-2SignificantindirecteconomicimpactsFacilitatingHarmoniousSocialDevelopmentGRI 204: Procurement Practices204-1ProportionofspendingonlocalsuppliersKeyESGPerformancesGRI 205: Anti-Corruption205-1Operations assessed for risks related to corruptionStrengthening Business Ethics Construction205-2
Communication and training about anti-corruptionpolicies and procedures
Strengthening Business Ethics Construction205-3Confirmed incidents of corruption and actions takenStrengthening Business Ethics ConstructionGRI 206: Anti-Competitive Behavior206-1
Legal actions for anti-competitive behavior, anti-trust,and monopoly practices
Strengthening Business Ethics ConstructionGRI 207: Tax207-1Approach to tax/207-2Tax governance, control, and risk management/207-3
Stakeholder engagement and management ofconcerns related to tax
/207-4Country-by-country reporting/GRI 301: Materials301-1Materials used by weight or volume
Designing Green and Low-carbon products, Practicing
Environmental Protection301-2Recycled input materials used
Designing Green and Low-carbon products, Practicing
Environmental Protection301-3Reclaimed products and their packaging materials
Designing Green and Low-carbon products, Practicing
Environmental Protection
9798
GRIStandards
DisclosureChapter(s) in the ReportGRI 302: Energy302-1Energy consumption within the organizationKey ESG Performances302-2Energy consumption outside of the organization/302-3Energy intensityKey ESG Performances302-4Reduction of energy consumptionDesigning Green and Low-carbon products302-5
Reductions in energy requirements of products and
services
Designing Green and Low-carbon productsGRI 303: Water and Effluents303-1Interactions with water as a shared resourcePracticing Environmental Protection303-2Management of water discharge-related impactsPracticing Environmental Protection303-3Water withdrawalKey ESG Performances303-4Water dischargeKey ESG Performances303-5Water consumptionKey ESG PerformancesGRI 304: Biodiversity304-1
Operational sites owned, leased, managed in, oradjacent to, protected areas and areas of highbiodiversity value outside protected areas
Not applicable304-2
Significant impacts of activities, products and serviceson biodiversity
Not applicable304-3Habitats protected or restoredNot applicable304-4
IUCN Red List species and national conservation listspecies with habitats in areas affected by operations
Not applicableGRI 305: Emissions305-1Direct (Scope 1) GHG emissionsKey ESG Performances305-2Energy indirect (Scope 2) GHG emissionsKey ESG Performances305-3Other indirect (Scope 3) GHG emissions/305-4GHG emissions intensityKey ESG Performances305-5Reduction of GHG emissions
Innovation New Materials in Figures, Designing Green
and Low-carbon products305-6Emissions of ozone-depleting substances (ODS)/305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and othersignificant air emissions
Key ESG Performances
GRIStandards
DisclosureChapter(s) in the Report
GRI 306: Waste306-1
Waste generation and significant waste-relatedimpacts
Practicing Environmental Protection306-2Management of significant waste-related impactsPracticing Environmental Protection306-3Waste generatedKey ESG Performances306-4Waste diverted from disposalKey ESG Performances306-5Waste directed to disposalKey ESG PerformancesGRI 308: Supplier Environmental Assessment308-1
New suppliers that were screened using environmentalcriteria
Building a Sustainable Value Chain308-2
Negative environmental impacts in the supply chainsand actions to be taken
Building a Sustainable Value ChainGRI 401: Employment401-2
Benefits provided to full-time employees that are notprovided to temporary or parttime employees
Empowering Employees' GrowthGRI 402: Labor/Management Relations402-1
Minimum notice periods regardingoperational changes
/GRI 403: Occupational Health and Safety403-1Occupational health and safety management systemProtecting Work Safety403-2
Hazard identification, risk assessment, and incidentinvestigation
Protecting Work Safety403-3Occupational health servicesProtecting Work Safety403-4
Worker participation, consultation, andcommunication on occupational health and safety
Protecting Work Safety403-5Worker training on occupational health and safetyProtecting Work Safety403-6Promotion of worker healthProtecting Work Safety403-7
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Protecting Work Safety
99100
GRIStandard
DisclosureChapter(s) in the ReportGRI 411: Rights of Indigenous Peoples411-1
Incidents of violations involving rights of indigenous
peoples
Not ApplicableGRI 413: Local Communities413-1
Operations with local community engagement, impactassessments, and development programs
Facilitating Harmonious Social Development413-2
Operations with significant actual and potentialnegative impacts on local communities
/GRI 414: Supplier Social Assessment414-1New suppliers that were screened using social criteriaBuilding a Sustainable Value Chain414-2
Negative social impacts in the supply chain andactions taken
Building a Sustainable Value ChainGRI 415: Public Policy415-1Political contributionsNot ApplicableGRI 416: Customer Health and Safety416-1
Assessment of the health and safety impacts ofproduct and service categories
/416-2
Incidents of non-compliance concerning the healthand safety impacts of products and services
No occurrence of such incidentsGRI 417: Marketing and Labeling417-1Requirements for product and service information and
labeling
Striving for Excellent Quality417-2Incidents of non-compliance concerning product and
service information and labeling
No occurrence of such incidents417-3Incidents of non-compliance concerning marketing
communications
No occurrence of such incidentsGRI 418: Customer Privacy418-1
Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data
Providing Quality Services
GRIStandard
DisclosureChapter(s) in the Report
403-8
Workers covered by an occupational health and safetymanagement system
Protecting Work Safety403-9Work-related injuriesProtecting Work Safety403-10Work-related ill healthProtecting Work SafetyGRI 404: Training and Education404-1Average hours of training per year per employee/404-2
Programs for upgrading employee skills and transitionassistance programs
Empowering Employee Growth404-3
Percentage of employees receiving regularperformance and career development reviews
/GRI 405: Diversity and Equal Opportunities405-1Diversity of governance bodies and employeesKey ESG Performances405-2
Ratio of basic salary and remuneration of women tomen
/GRI 406: Non-discrimination406-1
Incidents of discrimination and corrective actionstaken
Empowering Employee GrowthGRI 407: Freedom of Association and Collective Bargaining407-1
Operations and suppliers in which the right to freedomof association and collective bargaining may be at risk
Empowering Employee Growth, Building a Sustainable
Value ChainGRI 408: Child labor408-1
Operations and suppliers at significant risk forincidents of child labor
/GRI 409: Forced or Compulsory Labor409-1
Operations and suppliers at significant risk forincidents of forced or compulsory labor
Empowering Employee Growth, Building a Sustainable
Value ChainGRI 410: Security Practices410-1
Security personnel trained in human rights policies orprocedures
/
Email:zqb@innovationmetal.comTel:010-66536198
Address:No.1808,Floor18,ExcelCentre,WudinghouStreet,XichengDistrict,Beijing
Innovation New MaterialTechnology Co., Ltd.
2023Environmental,Social andGovernanceReport