The crystal of technology enjoysgreat prestige in the world
Forging Ahead on SolidFootprint
Working Together forWin-win Cooperation
Seeking Zero-carbon DrivenGreen Development
Cultivating Talents forA Promising Future
Focusing on Innovation andDevelopment
Ful?lling Social Responsibilitiesby Contributing to the Society
Compliance OperationRisk ManagementBusiness EthicsPrivacy and Information SecurityIP Protection
About This ReportChairman MessageCompany pro?leCompany Development HistoryMajor 2023 Events2023 HonorsSustainable DevelopmentManagementSpecial Subject: Digital IntelligenceDrive and Green Development
Key PerformanceIndex of IndicatorsReader Feedback
Supply Chain ManagementIndustry Cooperation
Environmental ManagementAddressing Climate ChangeGreen OperationSafe Production
Employee Rights and BenefitsEmployee DevelopmentWelfare and Care
Technology R&DQuality ManagementCustomer Service
Public WelfareRural Revitalization
CONTENtS
This is the 3rd Environmental, Social, and Governance (ESG) Report published by Zhejiang Jingsheng Mechanical& Electrical Co., Ltd. The Report discloses the Company's development practices and major achievementsin economical, environmental, social, and corporate governance responsibilities for the year 2023.It aims tocommunicate e?ectively with various stakeholders and systematically respond to the expectations and requirementsof stakeholders.
Time Frame
The Report covers the period from January 1, 2023, to December 31, 2023. To enhance the comparability andperspectiveness of the Report, some content appropriately refers to previous and subsequent years.Basis for CompilationUN Sustainable Development Goals (SDGs) 2030Global Reporting IntiativeGRI StandardsChinese Academy of Social Sciences (CASS)Guidelines on Corporate Social Responsibility Reporting for ChineseEnterprises (CASS-ESG 5.0)Chinese National Standard Guidelines onSocial Responsibility Reporting (GB/T36001-2015)Sustainability Accounting Standards BoardSASB Standards
Shenzhen Stock Exchange Self-disciplinary Supervision Guidelines for Listed Companies No. 2—StandardizedOperation of Listed Companies on GEM Board
Data SourceThe data in this Report comes from the raw data of the Company's actual operation, public data from governmentdepartments, annual ?nancial data, relevant internal statistical reports, third-party questionnaires and third-partyevaluation interviews. The ?nancial data in this Report is in CNY. In case of any inconsistency between this Reportand the ?nancial report, the ?nancial report shall prevail.
Report TerminologyFor the purpose of presenting the economic, social and environmental responsibilities of Zhejiang JingshengMechanical & Electrical Co., Ltd. (hereinafter referred to as "JSG", the "Company" or "we") and its subsidiaries, thefull names and abbreviations of some of the subsidiaries covered in this Report are as follows:
Huixiang E&H refers to Hangzhou Huixiang Electronic Hydraulic Technology Development Co., Ltd.JingHuan Electronic refers to Inner Mongolia JingHuan Electronic Materials Co., Ltd.Ningxia JingHuan refers to Ningxia Jinghuan New Material Technology Co., Ltd.Jingrui Electronic refers to Zhejiang Jingrui Electronic Materials Co., Ltd.Jinghong Precision refers to Zhejiang Jinghong Precision Machinery Manufacturing Co., Ltd.Jingxin Green Diamond refers to Zhejiang Jingxin Green Diamond Technology Co., Ltd.Jingsheng Photonics refers to Zhejiang Jingsheng Photonics Technology Co., Ltd.ZVISION Optoelectronics refers to Hangzhou ZVISION Optoelectronics Technology Co., Ltd.Jingchuang Automation refers to Zhejiang Jingchuang Automation Equipment Co., Ltd.Jingyu New Materials refers to Zhejiang Jingyu New Materials Co., Ltd.Meijing New Materials refers to Zhejiang Meijing New Materials Co., Ltd.Qiushi Semiconductor refers to Zhejiang Qiushi Semiconductor Equipment Co., Ltd.Ningxia Xinjingsheng refers to Ningxia Xinjingsheng Electronic Materials Co., Ltd.* See the Company's 2023 Annual Report for the scope of the speci?c holding subsidiaries covered in this Report.
Report AcquisitionThis Report is published in electronic format and can be accessed on the Shenzhen Stock Exchange website (http://www.szse.cn) and CNINFO (www.cninfo.com.cn). The Report is available in both English and Chinese. In the event ofany discrepancy in the interpretation of the two texts, the Chinese version shall prevail.
About This Report
0102
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Chairman Message
For 17 years, JSG has always adhered to the mission of "Tobecome a leading equipment supplier of semiconductormaterials; To facilitate high-tech industry developmentfor green intelligent manufacturing", stayed true toits entrepreneurial spirit of developing the two mainindustries of semiconductors and photovoltaics, focusedon the dual-engine sustainable development strategy of"advanced materials and advanced equipment", continuedto innovate, and strived for mutual growth and win-wincooperation with our partners.In the semiconductor sector, leveraging the domesticreplacement trend, JSG fully utilizes its core advantageof strong innovation capability to accelerate thelayout of core equipment in the semiconductorindustry chain and capture the market for domesticreplacement of semiconductor equipment. TheCompany has progressively achieved a breakthroughin the localization of 8-12 inch semiconductor siliconwafer equipment, with its products leading in marketshare among domestic semiconductor silicon growthfurnace. Through continuous innovation, JSG hasachieved a series of innovative results, includingthe development of internationally advanced 8-inchsingle-chip and double-chip silicon carbide epitaxialgrowth furnaces, optical measurement equipment forsilicon carbide substrates and epitaxial wafers, 12-inch three-axis thinning and polishing equipment forwafers and packaging ends, initiation of 6-inch and
8-inch silicon carbide projects and acceleration ofkey technology breakthroughs and industrialization.Amidst the accelerated development trend ofdomestic production in semiconductors, the Companyhas driven rapid growth in its semiconductor business.In the PV sector, as a leading domestic PV equipmentsupplier in both technology and scale, JSG hasestablished a core product system spanning siliconwafer, cell, and module segments, and graduallyforged a path of technology-driven and platform-driven development. In 2023, the Company continuedto strengthen R&D and technological innovation,vigorously developed new products and achievednumerous accomplishments, including launchingthe fifth-generation mono crystal puller, introducingsemiconductor superconducting magnetic fieldtechnology to the PV field, enhancing cell efficiencyfrom the material end, achieving customer recognitionfor new PV cell module equipment, leading in quartzcrucible market share, and achieving significantbreakthroughs in diamond wire technology.Furthermore, from an industrial chain innovationperspective, the Company collaborates with industrialchain customers to promote integrated intelligentfactory construction, advancing towards a greenfuture. In the process of the PV industry's transitionfrom rapid growth to intensified competition, JSGhas completed its strategic transformation fromscale-driven rapid development to innovation-ledhigh-quality development. Looking ahead, we willcontinue to embrace the vision of creating a green
ecosystem, with innovation as the engine, propellingthe continuous advancement of the clean energytransformation process.We practice sustainable development with robustgovernance. Under the leadership and supervisionof the Board of Directors, we continuously improvemodern enterprise management levels, withthe Board's Strategy and Investment Committeeoverseeing and guiding the Company's ESG work,and the management and the executive teamsimplementing them. Meanwhile, we enhance ourgovernance system, proactively fulfill informationdisclosure obligations, protect the rights and interestsof investors, actively communicate with stakeholders,and convey the Company's value.Over the past 17 years of entrepreneurship, if wewere to encapsulate JSG's journey of sustainabledevelopment, it would be our consistent commitmentto the principle of technological innovation.Investment in technological innovation is our mostvaluable initiative, serving as both an intrinsicrequirement for the Company's sustainabledevelopment and a crucial responsibility forpromoting the healthy growth of the semiconductorand PV industries. In 2024, we will continue touphold our core values of "honesty and optimism,loyalty and dedication, struggle orientation, partneraccomplishment, pioneering and innovation, and co-creation of brilliance", unite the strength of forgingahead, and continue to write a new chapter.Zhejiang Jingsheng Mechanical & Electrical Co., Ltd.ChairmanDr. Cao Jianwei
0304
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd., established in 2006, is a leading domestic high-tech enterprisespecializing in "advanced materials and equipment". It was listed on the stock exchange in 2012. The Companyboasts a technical research and development, and management team centered around professors and PhDs, withmore than 1,678 R&D personnel, including over 41 PhDs and post-doctorates. It possesses national-level post-doctoral workstations, national enterprise technology centers, overseas R&D centers, and several specializedresearch institutes.The Company has become a global leader in PV equipment technology and scale, and a leading domestic enterprisein 8-12 inch large silicon wafer growth and processing equipment. Its large-size sapphire silicon growth process andtechnology have reached an international leading level, making it a leading enterprise with core technologies andscale advantages.The Company has successfully grown industry-leading 8-inch silicon carbide crystals and has achieved autonomouscontrol over large-size silicon carbide crystal growth and processing technology. The company provides intelligentfactory solutions for the semiconductor industry, PV industry, and compound substrate industry, meeting customers'needs for digital and intelligent production modes.The Company has been honored with numerous awards, including the First Prize for Technological Progress inZhejiang Province, maintaining the top position in terms of tax contribution in the Chinese electronic specialequipment industry for six consecutive years, being listed in the Hurun China 500 Most Valuable Private Companiesfor four consecutive years, making it to the top ten most promising listed companies on the Growth Enterprise Marketfor three consecutive sessions, being recognized as a best practice case in corporate governance by the China ListedCompanies Association in 2023, being ranked among the ESG Pioneer 60 2023, and being ranked in the Forbes ChinaTop 50 Innovative Enterprises List in 2021.
The crystal oftechnology enjoysgreat prestige inthe world
Vision
Honesty and optimismLoyalty and dedicationStruggle orientationPartner accomplishmentPioneering and innovation
Co-creation of brilliance
ValuesTo become a leadingequipment supplier ofsemiconductor materialsTo facilitate high-tech industry
development for greenintelligent manufacturing
Mission
Company pro?le
0506
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
公司发展历程
2006
●?
Shangyu JingshengMechanical & ElectricalEngineering Co., Ltd.established
2007
●?
Developed the ?rstdomestic fully-automaticmono crystal silicon growthfurnaceand achieved batchsales
2008
●?
Successfully developedthe largest fully-automaticCzochralski mono crystalsilicon growth furnace inChina
2017
●?
Acquired 10% shares and jointly establishedthe Zhonghuan Advanced SemiconductorMaterials Co., Ltd with Zhonghuan
●?
Developed a 12-inch semiconductorsuperconducting magnetic ?eld mono crystalpuller
●?
Invested in semiconductor precision partsbase through JingHong Precision
●?
Established JSG Japan Co., Ltd., starting thepath of international R&D for semiconductorequipment
2009
●?
Successfully developed the?rst domestic dual-sourceJSH450multicrystal ingotfurnace
2014
●?
Established JingRuiElectronic, with aproduction capacity of 12million pieces of sapphireslicing and polishingprojects
2018
●?
Successfully developed a 6-inch SiCcrystal growth furnace
●?
Established PRIMET Japan Co.,Ltd., expanding into the high-endsemiconductor precision component field
●?
Established Qiushi Semiconductor,initiating the development ofsemiconductor CVD equipment
2016
●?
8 The 8-inch zone meltingsilicon mono crystal pullerpassed the national 02special project acceptance
●?
Established JingchuangAutomation, starting theequipment service journey
2021
●?
Successfully developed a 12-inch semiconductor hard-axisCzochralski silicon mono crystalpuller
●?
Successfully developedthe process exhaust gastreatment equipment for thesemiconductor industry
●?
Developed the ?rst 8-inch siliconwafer thinning machine
●?
Developed the ?rst chip-endLPCVD, o?cially entering the ICmanufacturing ?eld
2010
●?
Underwent a shareholdingreform to become:
Zhejiang JingshengMechanical & Electrical Co.,Ltd.
2013
●?
Established JingHuanElectronic to engage in thesapphire crystal materialbusiness
2019
●?
Successfully developed various equipmentfor G12 silicon wafers, double-side grindingmachines for 8-12 inch silicon wafers, andpolishing machines for 6-8 inch silicon wafers
●?
Achieved full coverage of 8-inch semiconductorsilicon wafer growth, slicing, polishing, andCVD processing equipment
2015
●?
Acquired ZVISIONOptoelectronics, aiding inthe creation of automatedintelligent production lines
●?
The 300mm Czochralskisilicon mono crystal growthequipment passed thenational 02 special projectacceptance
2022
●?
Crystal Laboratory successfullygrew the ?rst 150kg deep red ruby
●?
Successfully developed a fully-automatic diamond growth furnace
●?
JSG celebrated its tenth anniversaryof listing
●?
Successfully developed an 8-inchN-type SiC crystal
2011
●?
Successfully developed thedomestic first gas-cooledmulticrystalline siliconcasting furnace
●?
Successfully developedthe first sapphire silicongrowth furnace
2012
●?
Listed on the GEM of theShenzhen Stock Exchange
2020
●?
Jointly established the NingxiaXinjingsheng with Lens Technology
●?
Successfully grew a 700Kg levelsapphire crystal
●?
Completed the technicalidenti?cation of the third-generation semiconductor CVDequipment
●?
Successfully developed a 12-inchprecision double-side polishingmachine
Company Development History
0708
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JanuaryJSG was selected as a key enterprise research institute in Zhejiang Province.Jingrui Electronic grew an industry-leading 8-inch N-type silicon carbide wafer.
FebruaryJSG's Technology Center was recognized as a national enterprise technology center.JSG released a 6-inch double-chip silicon carbide epitaxial furnace.
JuneThe internationally advanced 8-inch monolithic silicon epitaxial furnace was successfullydeveloped.
NovemberJSG was approved as a Zhejiang Provincial Engineering Research Center.JSG signed a contract to start the project with an annual output of 250,000 pieces of 6-inchand 50,000 pieces of 8-inch silicon carbide substrate wafers.
SeptemberDr. Cao Jianwei, Chairman of JSG, served as a torchbearer for Hangzhou 19th Asian Games
DecemberJSG held its 2023 Global Suppliers Conference.
October
Jingsheng Photonics Technology Co., Ltd. held its founding ceremony.JSG continuously received an "A" rating in information disclosure for 10 years.Jingxin Green Diamond cultivated high-quality synthetic diamonds of 10 carats.
MayMeijing New Materials became the ?rst company in China to develop and mass-produce 42-inch quartz crucibles.The School of Mechanical Engineering of Zhejiang University held the inaugurationceremony of "Jingsheng Building".JSG released the fifth generation of mono crystal puller, integrated sorting and boxingequipment, and tungsten wire.
Major 2023 Events
National Level
Provincial Level
ESG Awards
2023 Honors
3 subsidiaries listed asSpecialized, Re?ned, Special,and Innovative Little Giants
2023High-tech Enterprise
Ranked the top position in termsof tax contribution in the Chineseelectronic special equipmentindustry for six consecutive years
Provincial Engineering Research
Center
2023 Provincial IndustrialInternet Platform Creation List
National Enterprises ofZhejiang Merchants 2023
29th Batch of NewlyRecognized National
Enterprise Technology
Centers
15th China Semiconductor
Equipment InnovationProducts
Ranked among the top 30companies in terms of operatingincome in the 22nd ZhejiangProvincial Electronic Information
Manufacturing Industry
Dr. Cao Jianwei, Chairman,was awarded the 2023 MayDay Labor Medal of Zhejiang
Province
Top 500 New EconomyEnterprises in China
Hurun China 500Most Valuable PrivateCompanies
2023 China Brand Value
Evaluation Certi?cate
Top 500 High-TechEnterprises with Innovation
Capability in ZhejiangProvince
Dr. Cao Jianwei, Chairman,
was awarded the 2022"Science Entrepreneur" in
Zhejiang Province
2023 Best Practice Case inCorporate Governance byChina Association for Public
Companies
Top 60 ESG Pioneers
2023
Zhejiang Meijing New Materials Co., Ltd. was o?cially established.March
0910
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG aims to "To become a leading equipment supplier of semiconductor materials , To facilitate high-techindustry development for green intelligent manufacturing", actively assuming responsibilities to shareholders, theenvironment, customers, employees, and the community.
JSG has identified and confirmed the ESG material issues for 2023 by considering the macro policies anddevelopment trends, taking into account the development of its own ESG work and the focuses of its stakeholders,referring to international authoritative standards, benchmarking against the focuses of ratings such as MSCI ESG, andcommunicating with external experts and projects. The Company responds to stakeholder demands and disclosuresthrough the entire process of issue identi?cation and screening, to stakeholder research, comprehensive analysis ofthe results, and ultimately to the formation of a material issue matrix.The analysis results of material issues providean important reference for the Company's future ESG management work.
The Company places emphasis on ESG risk control and governance, has gradually improved its ESG managementsystem, and has formed a three-tier ESG management organizational structure of "Decision-Making - Management- Execution". Currently, the Board of Directors serves as the decision-making layer, with the Strategy andInvestment Committee underneath acting as the management layer, regularly reporting to the Board of Directors.Additionally, an ESG Working Group comprising the heads of various functional departments has been established tocomprehensively coordinate ESG matters. The ESG Working Group is responsible for formulating ESG managementregulations, conducting communication and information disclosure, reporting the progress and results of ESGwork to the Strategy and Investment Committee, and coordinating the daily ESG management work of variousdepartments.
●?
Empowering new energyproducts
●?
Promoting greenoperation and production
●?
Comprehensiveemployee training system
●?
Transparent promotionpaths
●?
Caring for employeehealth and life
●?
Continuous innovation
●?
Promoting industrydevelopment
JSG's ESG Management Philosophy
●?
Solid corporategovernance and operations
●?
Actively creatingshareholder value
●?
Business ethics
●?
Becoming the mosttrusted partner forcustomers
●?
Stable supply chain
●?
Focusing on vulnerablegroups
●?
Conducting publicwelfare donations andactivities
Robust governance
Collaboration withmultiple parties
Protecting the environment
Caring for employees
Technology R&D
Contributing to the society
1 Corporate governance2 Digital transformation3 Information securityand privacy protection4 Risk management5 IP protection6 Business ethics andanti-corruption7 ESG management8 Compliance withinformation disclosure
Governance issues
9 Energy and resourcemanagement10 Green logistics(including packaging,transportation andwarehousing)11 Clean technologyopportunities12 Source of raw materials13 Emission management14 Supply chainmanagement (includingenvironmental
Environmental issues
17 Employee rights,development, and health18 Product quality andsafety19 Technology R&D andinnovation20 Transparentprocurement21 Customer service22 Leading industrydevelopment23 Public welfare24 Gender equality
Social issues
Following domestic and international standards and policies, based on industrypolicy analysis and benchmarking against peers,24 issues related to the Companyhave been identi?ed and summarized.Identificationand Screening
Communicate with internal and external stakeholders through onlinequestionnaires, covering employees, customers, investors, suppliers, serviceproviders, government and regulatory agencies, media, industry associations, andcooperation institutions.Stakeholder
Survey
Based on the results of stakeholder research, combined with expert analysis, thematerial issues are adjusted, the Board of Directors reviews the completeness andaccuracy of material issues, determines the importance ranking of material issues,forms a matrix of material issues, and responds to issues of concern to stakeholdersin the Report.Comprehensive
Analysis ofResults
JSG's ESG Management Organizational Structure
Board of Directors
Strategy and Investment
Committee
ESG Working Group
Sustainable Development Management
ESG Management
Material Issue Analysis
Materiality for JSG
Materiality for Stakeholders
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG attaches great importance to stakeholder communication. As a group that mutually influences and sharesmutual bene?ts with the Company, the expectations and demands of stakeholders are an important reference forthe Company's sustainable development work. The Company regularly understands the expectations and feedbackof external stakeholders such as investors, the government, customers, employees, suppliers, and the media throughvarious channels.
Stakeholderidenti?cation
Communication
and responseExpectations and
demands
Stakeholderidenti?cation
Communication
and responseExpectations and
demands
●?
Equity complianceassurance
●?
Comprehensivecompensation system
●?
Smooth promotion system
●?
Rich employee activities
●?
Internal system publication
●?
Internal online communicationplatforms
●?
Skill training and careerdevelopment guidance
●?
Organizing various employeeactivities
●?
Stable performance growth
●?
Shareholder rightsprotection
●?
Investor relationsmanagement
●?
IP protection
●?
Adherence to businessethics
●?
Active R&D innovation
●?
Compliance informationdisclosure
●?
Smooth investorcommunication channels
●?
IP training and protection
●?
Establishing a system ofintegrity and ethics
●?
Law-abiding businessoperations
●?
Compliance with regulatoryrequirements
●?
Response to nationaldevelopment policies
●?
Supply chain management
●?
Anti-corruption
●?
Mutual bene?t and win-winresult
●?
Product responsibilitymanagement
●?
Industry communicationand cooperation
●?
Smooth communicationchannels
●?
Improving customersatisfaction
●?
R&D innovation
●?
Brand collaboration
●?
Industry upgrade
●?
Public welfare
●?
Rural revitalization
●?
Internal control system
●?
Learning and implementingvarious regulatory provisions
●?
Promoting rural revitalizationand realizing "dual carbon"goals
●?
Supplier assessment,exchange, and training
●?
Transparent procurement
●?
Resource sharing
●?
Comprehensive qualitymanagement system
●?
Technical discussions
●?
Customer service hotline andcustomer surveys
●?
Satisfaction surveys andfeedback
●?
Collaborative R&D
●?
Exchange visits
●?
Industry forums
●?
Volunteer services andcommunity activities
●?
Targeted assistance
Employees
Investors andshareholders
Governmentand regulatory
authorities
Suppliers (serviceproviders)
Partners
Customers
Communityand Public
Stakeholder Communication
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG supports the United Nations 2030 Agenda for Sustainable Development and promotes the realization of the UNSustainable Development Goals (UN SDGs 2030) through its actions.
Corresponding Section: Cultivating Talents for A Promising FutureJSG adheres to an equal employment policy, o?ers fair compensation and bene?ts,and creates a harmonious and equal working environment.SDG 10：Reduced inequalities
Corresponding Sections: Seeking Zero-carbon Driven Green Development, Fulfilling SocialResponsibilities by Contributing to the SocietyJSG adheres to the environmental protection and low-carbon design concepts, andcontributes to the promotion of clean energy technology and innovation, creating greenenergy for the world. In addition, JSG actively organizes public welfare activities to return thesociety with various practical actions.
SDG 11：Sustainable cities and communities
Corresponding Section: Long-term layout and robust governanceIt establishes a governance system with clear accountability, compliance, andefficiency, strengthens business ethics management, pays attention to informationsecurity and intellectual property protection, and maintains the sustainable operationand development of the company.
SDG 16：Peace, justice, and strong institutions
Corresponding Sections: Long-term layout and robust governance, Focusing on Innovation andDevelopment, Working Together for Win-win CooperationJSG empowers technological innovation through industry-academia-research cooperation,assisting in the collaborative development of specialties and industries. It establisheshonest, transparent, and mutually trustworthy relationships with suppliers, creating aresponsible supply chain and promoting cooperation for mutual benefits across the entireindustry chain
SDG 17: Partnerships for the goals
Corresponding Sections: Seeking Zero-carbon Driven Green Development, Focusing onInnovation and DevelopmentJSG firmly grasps opportunities in clean technology, increases investments in greentechnology, continuously monitors its greenhouse gas emissions, increases the use ofclean energy, and constantly improves its energy-saving and emission-reduction e?orts.
SDG 13：Climate action
Corresponding Sections: Cultivating Talents for A Promising Future, WorkingTogether for Win-win CooperationJSG consistently enhances its employee training, creating a training brand systemcentered around Jingsheng Academy. For several years, it has conducted varioustraining activities such as new employee training, team leader leadership training,"Porter Cup", "Lu Ban Cup", etc., empowering employees. The Company hasestablished long-term educational support partnerships with universities, whichvigorously support national R&D personnel.
SDG 4：Quality education
Corresponding Section: Cultivating Talents for A Promising FutureIt values the rights of female employees, practices equal pay for equal work amongmale and female employees, and focuses on the development of female employees.SDG 5：Gender equality
Corresponding Sections: Seeking Zero-carbon Driven Green Development,Cultivating Talents for A Promising FutureJSG continuously improves its occupational health and welfare system, implementsvarious health and safety measures, and fully guarantees the physical and mentalhealth of its employees.
SDG 3：Good health and well-being
Corresponding Section: Cultivating Talents for A Promising FutureJSG provides employees with market-competitive salaries, develops and implementslong-term compensation incentive programs.SDG 8：Decent work and economic growth
Corresponding Sections: Focusing on Innovation and Development, WorkingTogether for Win-win CooperationIt insists on innovation-driven, independent R&D, and is committed to leading thedevelopment of the global PV equipment industry with innovative technologies andproducts
SDG 9：Industry, innovation, and infrastructure
Responding to the UN Sustainable Development Goals
SDGs
1516
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG actively responds to the national digitalization strategy, takes digital innovation as the fundamental path fordevelopment, explores equipment digitalization and intelligence based on cloud computing, and focuses on theintegration of the industrial digital brain and intelligent manufacturing bases of the future factories. With dual-carbongreen circular development as the foundation, it promotes the construction of "Industrial Brain + Future Factory",achieving synergy in R&D, supply chain, production manufacturing, and after-market services, providing customerswith solutions that combine lean manufacturing+digital+AI big data, and advancing high-quality development inmanufacturing through intelligent management.
JSG adheres to dual-carbon green circular development, and continuously optimizes and innovates in leanproduction and full supply chain management. The Company upgrades "isolated operations" to "continuous ?ow",utilizes Milk Run for precise material distribution, employs WMS for intelligent warehouse management to con?rmgoods and allow for inspection-free storage, and coordinates with TMS for loading and route planning, to achievee?cient, agile, lean, and ?exible digital factory management.JSG's intelligent solution
Suppliers prepare goods according to SRM requirements and use unified standard recycled green packagingapparatus to load and unload the whole vehicle within 15 minutes, which is expected to increase loading andunloading e?ciency by more than 50% and vehicle loading rate by more than 30%.
Informational factoryDigital factoryIntelligent factory
DescriptionDiagnosisForecast
Equipment interconnectivityachieves data uploading
Data visualization andprocess transparency
Automated behavior anddecision making based on
predictive capabilities
Milk Run precise material distribution model
Digital Green Logistics
Logistics supply
Return of empty boxes and goodSupplier
JSG
Special Subject
Digital Intelligence Drive andGreen Development
1718
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Automatic circulation is an important embodiment of the lean layout of digital factories. JSG continuously enhanceslean management and digital manufacturing, and has fully completed the lean automation upgrade of productionlines, and effectively implemented a series of lean improvements such as automatic vacuuming on seed crystallines, RGV automatic circulation on crucible lines, automatic lifting of rotary plate valves, and automatic strappingand packing of composite boxes. Combined with the recycling of packaging tools, it effectively reduces solidwaste production in the parks, rapidly increases factory capacity, and builds new advantages in green intelligentmanufacturing. Furthermore, the Company has designed foolproof and ergonomic workstations, and combinedwith fixtures and inspection tools to ensure effective control of key points, ensuring both safety and efficiencyin operations. As a result, assembly personnel have been reduced by 35%, and labor intensity has significantlydecreased, further establishing a new benchmark in industry production.
The Company implements green access, with recyclable vehicles picking up goods in a planned route and speci?edtime window, achieving integrated goods collection and delivery, reducing waiting time and energy consumptionwithin the factory. Along the delivery route, the Company has set up real-time monitoring of the transit process and,since 2022, has opened 7 circulating pickup routes, saving energy, reducing emissions, and improving receivinge?ciency.
Circulating packaging and boxingCirculating pickup routes
Automatic Green Production
Circulating pickup routesLean automation upgrade of production line
Lean automation upgrade of production lineAutomatic vacuuming of seed crystal line
Automatic vacuuming of seed crystal lineAutomatic binding and packing of integrated box
The circulating pickup routes have improved overall transportation efficiency by over 40%,reducing transportation distance by 40% to 70%, achieving an annual reduction of around
3,000 tons of greenhouse gas emissions.
Key Performance
The daily production capacity of JSG's factory increased by 20%, the total working hours permono crystal puller improved by 20%, and the output of solid waste was reduced by 83%.
Key Performance
1920
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
As an important player in the global PV industry, JSG has always been deeply committed to the path of green andsustainable development. By insisting on technology-driven strategies and standing at the forefront of innovation,integrating digital technology, and AI big data as supports for development, the Company is dedicated to researchingand developing more intelligent, green high-tech products and solutions. This commitment provides a strongimpetus for the transformation of the PV industry and contributes to the global energy transition.
With the advent of the N-type era, the industry has placed higher demands on the quality of silicon wafers. TheCompany launched its ?fth-generation mono crystal puller, which introduces superconducting magnetic ?eldtechnology widely used in the semiconductor ?eld into the PV sector. Building on the foundation of the originalintelligent whole-plant silicon growth control system and AI data analysis system, it provides customers withan open secondary platform for mono crystal puller. This enables customers to independently program theprocess and logic of the mono crystal puller, thus deeply mining data value and creating di?erentiated corecompetitiveness.
In November 2023, the Company participated in the 6th China International PV Industry Conferencewith its latest PV equipment, auxiliary materials, consumables, and intelligent factory solutions.Through this Conference, the Company offered a comprehensive intelligent factory solution thatintegrates lean manufacturing+digital+AI big data to its customers, using digital products to drivethe transformation of the PV industry and contribute to the global energy transition.
| The 5th-generation mono crystal puller | Participated in the 6th China International PV Industry Conference |
Product integrated with digital AI technology, propelling the PV industry to new heightsCase
Debut at the 6th China International PV Industry Conference, empoweringthe industry with digital valueCasePromoting Intelligent Development of the Industry
2122
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Forging Ahead on
Solid Footprint
Centering on the core values of "honesty and optimism, loyalty anddedication, struggle orientation, partner accomplishment, pioneeringand innovation, and co-creation of brilliance", JSG has establisheda sound governance structure and a comprehensive internal controland risk management system. By protecting the rights and interests ofinvestors, and upholding business ethics, the Company has constructedan orderly information security environment, valued IP protection,and steadily promoted the long-term sustainable development of theCompany.
Our Philosophy
Our ActionsCompliance OperationRisk ManagementBusiness EthicsPrivacy and Information SecurityIP Protection
2324
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG strictly abides by the "Company Law of the People's Republic of China", the "Securities Law of the People'sRepublic of China", the "Code of Corporate Governance for Listed Companies", and the legal regulations of theSecurities Regulatory Commission and the stock exchanges. It has established a governance structure composed ofthe General Meeting of Shareholders, the Board of Directors, the Board of Supervisors, and the management team,and continuously improved various governance systems and the working rules of the three mechanisms, ensuringthe legality, compliance, authenticity, and effectiveness of major company decisions, promoting standardizedoperations, and improving the comprehensive governance level.Organization chart
Composition and responsibilities of the three mechanisms
In 2023, the Company held 4 General Meetings of Shareholders, 12 Board Meetings, and11 Supervisory Meetings. A total of 65 resolutions were considered.
Board of SupervisorsAccording to the "Articles of Association", the Board of Supervisors supervises the Company's businessmanagement and decision-making, safeguarding the legitimate rights and interests of the Company and itsshareholders. The Board of Supervisors includes shareholder representatives and an appropriate proportionof company sta? representatives. The chairman of the Board of Supervisors is elected by more than half ofthe supervisors. Staff representatives are democratically elected by the Company's staff through Workers'Congress, Employee Meeting, or other forms.
Board of Directors
The Board of Directors of the Company is a permanentdecision-making body, mainly exercising the powersgranted by laws, regulations, Articles of Association,and the General Meeting of Shareholders.
General Meeting of ShareholdersThe General Meeting of Shareholders of theCompany decides on the business policies andinvestment plans of the Company,and reviewsimportant matters of the Company.
Compliance Operation
Three-mechanism Governance
GeneralMeeting ofShareholders
Board ofSupervisors
NominationCommittee
Remunerationand EvaluationCommittee
AuditCommittee
Strategy andInvestmentCommittee
Board ofDirectors
The Board of Directors of the Company has established four specialized committees: Nomination, Compensation andAssessment, Audit, and Strategy and Investment. The rules of procedure for each committee have been revised andimproved, operating strictly according to the rules of procedure of each specialized committee, providing scienti?cand professional advice for the decision-making of the Board of Directors.
Committee Responsibilities and Independence under the Board of DirectorsCommitteeName
Key ResponsibilityCommittee Independence
AuditCommittee
●?
Understand the progress of business operations andmajor issues;
●?
Guide internal audit work and review the Company's?nancial statements and business data;
●?
Propose the appointment or replacement of externalaudit institutions;
●?
Supervise the Company's internal audit system and itsimplementation;
●?
Responsible for communication between internal andexternal audits;· Review the Company's financial information and itsdisclosure
●?
The Committee consists of
independent directors, with100% independence;
●?
Ms. Fu Qi is the chairperson,and Mr. Zhao Jun and Mr.Pang Baoping are committeemembers.
Strategy andInvestmentCommittee
●?
Review the long-term development strategy and majorinvestment and ?nancing decisions of the Company, inlight of the development of the industry in which theCompany operates and its own development situation.
●?
The Committee consists of Dr.Cao Jianwei (chairperson), Ms.Qiu Minxiu, and Mr. Zhou Zixue.
Key Performance
2526
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In 2023, the Company's Board of Directors consists of 9 directors, including 3 independentdirectors and 2 women directors.
Key Performance
JSG, in accordance with relevant laws and regulations and the "Articles of Association", has established governancesystems such as the "Independent Director Work System" to promote the diversity and professional balance of theBoard of Directors. The members all possess rich industry experience and professional capabilities in engineering,accounting, law, and other fields, ensuring the comprehensive governance and insight ability of the Board ofDirectors,making reasonable decisions, improving risk response capabilities, protecting investors' interests, andenhancing the professionalism of corporate governance.
Board Independence and Diversity
Committee
Name
Key ResponsibilityCommittee Independence
NominationCommittee
●?
Advise and make recommendations to the Board
of Directors on the selection of directors (includingindependent directors), General Manager and othersenior management of the Company, and be responsibleto the Board of Directors.
●?
The Committee consists of Mr.Zhao Jun (chairperson), Mr. PangBaoping, and Mr. He Jun;
●?
The Committee includes
independent directors.Remunerationand EvaluationCommittee
●?
Review the compensation policy and assessmentschemes for the directors and senior management ofthe Company, evaluate and review the work situationsof the directors and senior management accordingto performance evaluation standards, review theimplementation of the Company's restricted stockincentive plan.
●?
The Committee consists of Mr.
Pang Baoping (chairperson), Ms.
Fu Qi, and Mr. Mao Quanlin.
●?
The Committee includes
independent directors.
Independence and diversity of board members
TypeNameGender
Professional AbilityIndustryExperience
RiskManagement
FinancialManagementChairmanCao JianweiMale√Executive directorQiu MinxiuFemale√Executive directorHe JunMale√Executive directorMao QuanlinMale√Executive directorZhu LiangMale√
JSG strictly abides by the "Company Law of the People's Republic of China", "Securities Law of the People's Republicof China", "Measures for the Administration of Information Disclosure by Listed Companies", and other laws andregulations, and formulates the "Information Disclosure Management System" and other systems to proactivelydisclose the relevant information in a truthful, accurate, timely, fair and complete manner, e?ectively guard againstthe risk of information disclosure, and adequately safeguard the shareholders' right to know, in particular the smalland medium-sized shareholders. Since listing, the Company has consecutively received an "A" grade in theShenzhen Stock Exchange's annual information disclosure evaluation for 10 years.
All information that needs to be disclosed is announced through the designated information disclosure media,"Securities Times" and CNINFO (www.cninfo.com.cn).
Information Disclosure
In 2023, the Company disclosed 163 announcement documents, including 4 regular reports,and there were no incidents of violations of information disclosure regulationsresulting in penalties.
Key Performance
TypeNameGender
Professional AbilityIndustryExperience
RiskManagement
FinancialManagement
Executive directorZhou ZixueMale√√Independent directorZhao JunMale√Independent directorFu QiFemale√Independent directorPang BaopingMale√
JSG has established internal systems such as the "Investor Relations Management System" based on laws andregulations like the "Guidelines for Investor Relations Management of Listed Companies" and the "Guideline No. 2for the Self-Regulatory Supervision of Listed Companies on the Shenzhen Stock Exchange - Standard Operation ofCompanies Listed on the GEM". It continuously improves public, fair, transparent, and multi-dimensional investorcommunication channels, actively engages in communication and interaction with investors, deepens investors'understanding of the Company's production and operations, better conveys the Company's investment value, andenhances investors' identi?cation with the Company.
Investor Relations Management
2728
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Investor communication activities
The Company always regards returning to shareholders as its core concept. Based on the pro?t distribution policyof the "Articles of Association" and relevant regulations, it establishes a continuous, stable, and scientific returnmechanism for investors through share repurchase, increased cash dividends, and optimized dividend timing. Itshares development achievements with investors, protects the interests of all shareholders, strengthens the market'scon?dence in the high-quality development of the Company's business, maintains and ensures the investment valuefor long-term investors,and promotes the Company's continuous and healthy development.
Annual reportbrie?ng
Companywebsite
Telephoneconsultation
Analystmeeting
Media interviewsand coverage
Periodic reports
and interimannouncements
RoadshowGeneralMeeting ofShareholders
One-to-onecommunication
On-sitevisit
Performance
brie?ng
? From September 2023 to January 2024, the Company has implemented its share repurchaseplan through centralized bidding transactions, legally repurchasing shares worth CNY100
million, totaling 2,173,984 shares.? Since the year of listing, the Company's cash dividend rate has been maintained at over20%,with a cumulative dividend amount exceeding CNY 2.7 billion (Including 2023 profitdistribution).
Key Performance
JSG strictly adheres to legal and regulatory requirements, continuously improves its corporate governance structure,enhances its risk management systems, establishes a sustainable and regular risk management operation system,clari?es responsibilities and powers at all levels of risk management, sets up a complete risk management process,and takes measures to keep risk within an acceptable range, driving the Company's rapid development.
Main risk response measures of the Company
Risk management processRiskidentification
Riskassessment
Targetsetting
Riskcontrol
Risksupervision
Riskgovernance
Possiblerisks
Potential RiskResponse Measure
IIndustryfluctuationrisk
The Company's main products are equipment used in the photovoltaic(PV) and semiconductor integrated circuit industries. Leveraging years oftechnology and expertise in the growth and processing of brittle crystalmaterials, the Company has extended its portfolio to include sapphirematerials, silicon carbide materials, and core auxiliary consumables forthe related industry chain, such as quartz crucibles, diamond wires, andprecision parts. The products are primarily utilized in the semiconductor,PV, and LED industries, which are influenced by downstream end-market demand and industry policies. Benefiting from the robust marketdemand in downstream industries, the Company has rapidly developedand continuously improved its performance. However, a slowdownin market growth or a decline in demand due to cyclical or policyfluctuations could adversely affect the Company's business performance.
The Company remains committed to technological innovation,actively extends the application field of semiconductor industrychain by continuously increasing the research and developmentof new products, expands the new material business with broadmarket demand and development prospects, and graduallyimproves the supporting system of industrial chain products.By gradually extending its business layout, the Company aimsto mitigate the impact of single-industry fluctuations on itsperformance, thereby strengthening its core competitiveness andrisk resilience.
Marketcompetitionrisk
The semiconductor and PV industries have promising developmentprospects. With the technological advancement and the continuousimprovement of the industry chain ecology, more and more new playersare entering the industry. Furthermore, the top players in the industrycontinuously increase their production capacity expansion by virtueof their advantages in brand, scale and technology, and implementthe integration strategy to expand upstream and downstream of theindustrial chain, thus intensifying competition in the industry.
The Company keeps abreast of cutting-edge industrytechnologies, and prepares for future developments basedon its R&D innovations. By continuously launching innovativeproducts and maintaining high-quality and advanced offerings,combined with strengthened technical services, the Companyaims to reduce costs and enhance efficiency for customers,thereby securing and gradually increasing its market share of coreproducts.
Technology
R&D risk
The Company operates in a technology-intensive industry. For years, ithas focused on the R&D, production, and sales of key equipment andmaterials used in the semiconductor and PV industries, emphasizing in-house R&D and technological innovation, guided by market demandand forward-looking predictions for product development. As thetechnological level of the industry continues to rise, the demands onproducts are also increasing. If the Company cannot quickly launchnew products that meet market demands as scheduled, it could affectthe market competitiveness of its products and adversely impact theCompany's business development.
The Company adheres to a dual-drive R&D model based ontechnological innovation and in-depth exploration of customerneeds. It has established a complete R&D control system coveringdesign production, process improvement, product certificationtesting, and project development applications. By strengtheningresearch on national industrial policies and industry developmenttrends, tracking the direction and cutting-edge dynamics of thePV and semiconductor industries, and analyzing customer needs,industry markets, competitive enterprises, and new products andtechnologies, the Company determines the objectives, directions,and paths for new product development, and actively cultivates,reserves, and introduces high-level R&D technical talent to ensurethe sustainability of its R&D innovation.
Risk of lossof technicalpersonnel
The Company possesses a group of core technical and R&D personnelwith rich industry experience and innovative capabilities, and profoundlymasters the technology and expertise in the growth and processingof brittle materials. These core personnel are the foundation for theCompany's continuous technological and product innovation. Thesemiconductor and PV industries continue to be in short supply ofhigh-end technical talents, and the competition for talents amongmanufacturers is intensifying. If there is a significant loss of core technicalpersonnel, it could lead to the diffusion of core technologies, reducing theCompany's technological advantages and innovation capabilities, andthereby affecting its business development.
The Company mitigates this risk by providing a good careerdevelopment platform for technical talents, strengtheningcorporate culture construction, improving the compensationincentive system, and continuously implementing equityincentive policy. These measures aim to integrate companydevelopment with employee development, attract and retaintalents and maintain team stability. The Company signsconfidentiality agreements with key technical personnel, clearlydefining non-compete obligations and responsibilities tominimize or eliminate the risk of technical diffusion due to the lossof key technical personnel.
Orderfulfillment
risk
As of the end of the reporting period, the Company had a substantialnumber of orders in hand, but customers might adjust projectschedules based on their industry outlook and development, leading touncertainties in executing contracts that have not yet been completedwith the Company. Some downstream customers might cancel ordersor request delayed deliveries, posing risks to the Company in fulfillingunexecuted orders.
In the process of market development, the Company reducesorder fulfillment risk by strengthening due diligence tounderstand the business conditions of target customers, focusingon developing large, financially strong, and well-managed qualitycustomers, implementing strict customer credit managementsystems, signing standardized commercial contracts, andpromoting sound payment term management.
Risk Management
2930
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG places a high emphasis on adhering to principles and norms of business ethics throughout its production,operation, and management processes, insists on fair competition, and strictly carries out anti-corruptionmanagement, steadily promoting the Company's sustainable and high-quality development. JSG actively constructsan integrity and ethics system, using self-examination, public supervision, and oversight from other relevant partiesto ensure lawful and compliant operations. It also focuses on fostering a healthy development of an integrityculture, regularly conducting integrity-themed propaganda, education, and training for all employees, continuouslyimproving employees' awareness of integrity and honesty in their professional conduct.
JSG is committed to establishing transparent cooperation relationships with upstream and downstream suppliersand partners. In business operations, it practices the principles of fairness, justice, and openness, opposes unfaircompetition behaviors like price monopolies, conducts anti-unfair competition legal and regulatory training for allemployees, continuously enhances the transparency of business activities, and is determined to maintain a good
market economic order.
JSG, in accordance with laws, regulations, securities markets, and regulatory bodies' stipulations and requirements,has developed and regularly updated "Anti-Fraud Management Measures" and other internal systems. It hasestablished an organizational structure coordinated by the Company's board of directors as the highest governingbody for anti-corruption issues, the internal audit department as a permanent institution, and various functionaldepartments for collaborative management. This structure and speci?c internal control procedures and mechanismse?ectively prevent fraud, strengthen the company's integrity and compliance governance, reduce corporate risks,and standardize business conduct.
JSG's integrity and ethics systemCaring and respectEstablish a platform for valuecreation and sharing
E?ectively protect theinterests of shareholders,especially those ofminority shareholders
Develop JSG's businessContribute to the societyEstablish a partner supplychainRespect each other, abide by integrity,respond quickly, exceed customerneeds and achieve win-win results
Corporateintegrityand ethicssystem
Employees
Shareholder
Clients
Suppliers
Society
Business Ethics
Fair Competition
Business Ethics
Complaint channel
The Company continuously strengthens anti-corruption management, conducts anti-corruption audits, andcorruption risk investigations across all business departments, focuses on business ethics, and implementscontinuous audits throughout the year. The Company has established a corruption reporting mechanism in the"Anti-Fraud Management Measures", setting up hotlines, e-mail, and anonymous mailboxes for reporting channels.The "Anti-Fraud Management Measures" have established a whistleblower protection mechanism, stipulating thatinvestigators must keep the investigation process and afterwards con?dential, not disclosing the whistleblower andthe investigation's related information (except for publicly announced information).Those who violate con?dentialityrules or retaliate against whistleblowers or investigators will be dismissed or have their labor contracts terminated,and if laws are broken, they will be referred to judicial authorities.
Report telephone: 0571 - 89905290 (ext. 8081)Report mailbox: ia@jsjd.cc
Anti-corruption management organizational structure and responsibilities
Board of Directors
Company management
Internal audit department
Regulation
o?ce
Functionaldepartments
Top regulatory body
Responsible for the occurrence of fraudulent behaviors;Responsible for the establishment, development, effective implementationand self-assessment of anti-fraud procedures and controlsincluding fraud risk assessment and fraud prevention.Permanent anti-fraud institution;Responsible for the inspection and audit of the Company's internal anti-fraudwork, establishing and improving anti-fraud work.Regulation office: Responsible for implementing the handling opinions ofpersonnel related to fraud.Functional departments: Responsible for undertaking the anti-fraud work oftheir .
3132
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
The Company actively fosters an anti-fraud corporate culture, clearly de?ning the red lines of fraudulent behaviorto employees. Upon hiring, the Company signs an "Integrity Commitment" with employees and conducts anti-corruption training for new employees. Moreover, the Company regularly communicates and trains on theCompany's anti-fraud policies, procedures, related measures and regulations through various forms such asemployee handbooks, company rules and regulations, intranet announcements, negative event warnings, andspecialized integrity training to ensure no improper bene?ts are exchanged in business operations.
In 2023, the Company carried out a series of thematic educational activities with "Party building leading theconstruction of clean culture", strengthened the company's clean culture and enhanced the legal awarenessof employees by visiting clean education bases, inviting the public security organs to carry out clean thematiclectures, legal knowledge training and other activities.
In 2023, the Company carried out 3 training sessions on business ethics and anti-corruption, andthe coverage rate of employees trained on anti-corruption topics reached 100%.Note:In 2023, the company has not hirer any contractors or part-time employees, and all employees were regular employees.
Conducting anti-corruption and integrity training, and strengthening the constructionof the Company's integrity cultureCase
Key Performance
JSG strictly abides by laws and regulations such as the "National Security Law of the People's Republic of China" andthe "Cybersecurity Law of the People's Republic of China", has formulated systems like the "Information SecurityManagement Manual", "Information Security Risk Assessment and Management Process", and added managementmethods such as "Management Speci?cations of Group Encryption System", "Management Speci?cations of GroupDomain Control", "Measures for the Management of Meeting Room Equipment", etc., It has continued to build aninformation security management system and established an information security management system model tosafeguard information privacy and security against ISO 27001.
Privacy and Information Security
The Company has established an organizational structure for information security management, forming a three-tier structure of "Board of Directors-Information Security Management Committee-Information Security WorkingGroup", with the Chairman of the Board of Directors and the Vice President of Operations serving as the Director ofthe Information Security Management Committee (ISMS) and the Executive Deputy Director of the ISMS, respectively.This leadership drives the heads of multiple departments such as the R&D Center, Sales Center, and IT Department,along with security o?cers, to collectively promote privacy and information security work.
The Company has planned and implemented the "JSG Security Service Implementation Plan", comprehensivelytested the Company's network security protection capabilities, improved the monitoring and emergency responseabilities for network security incidents, and continuously re?ned an information security management system andoperational system that adapts to business development and meets the needs of secure growth.
Organization chart of information security system
Board of DirectorsInformation Security Management CommitteeInformation Security Working Group
Information security management system modelStakeholdersStakeholdersPlanning
DisposalImplementation
Inspection
Maintenance
andimprovement
Implementationand operationInformation
securityrequirements
andexpectations
Informationsecuritymanagement
Establishment
Monitoringand review
Network security penetration project with "four major measures and nine tasks
●?
Task One: Security policy
●?
Task Two: Failure detection
●?
Task Three: Penetration test
●?
Task Four: Data ex?ltration test
●?
Task Five: Attacker teamevaluation
●?
Task Six: Sensitive informationcollection
●?
Task Seven: Consultingand planning
●?
Task Eight:Full tra?c threatdetection
●?
Task Nine: Emergencyresponse
Phase 1:
Investigation andcleanup of dataleakage channels
Phase 2:
Simulation ofmalicious attacks
Phase 3:
Normal security
Phase 4:
Other security
3334
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
The Company enforces strict data control, conducts daily data security inspections to assess potential risks in datastorage, transmission, and processing, promptly identi?es and ?xes vulnerabilities, and establishes systems such as"Data Backup Strategy Execution Form" and "Data Backup and Recovery Registration Form" to prevent data loss ordamage due to hardware damage, software failures, human errors, virus infections, etc., thus ensuring the securityand integrity of the Company and customer data.
The Company strictly complies with the requirements ofthe "Personal Information Protection Law of the People'sRepublic of China", the "Data Security Law of the People'sRepublic of China" and the "Cybersecurity Law of thePeople's Republic of China", strengthens the managementof data compliance, and carries out compliance riskassessment, compliance review and compliance trainingfor the collection, use, transmission and handling of theprivacy of its employees, visitors and partners in the courseof its daily operations, so as to safeguard the privacy andinformation security of the Company and its customers.
Data security inspection content
In 2023, the Company conducted 6 new employee information security training and 4 specialtraining on information security and privacy protection.
Data TypeInspection Content
Data stored in data serverData centers, servers, storage devices, etc.Business dataFile sharing, and virtual machine business system dataBackup dataBackup data of various business systems
Key Performance
JSG is committed to the path of independent intellectual property (IP) rights, attaches importance to themanagement and protection of IP rights, and has established an IP management system centered on the "Measuresfor the Management of Intellectual Property", "Patent Management Procedures", etc. to standardize the IPmanagement work and to promote the formation of technological innovation and independent IP rights.
IP Protection
IP protection management process
Patentapplication
Patentearlywarning
Patentactivities
Patentretrieval
Patentlayout
The Company focuses on independent R&D and technological innovation, has formulated the "Measures for theManagement of Patent Award Selection", and established an intellectual property application incentive mechanism.Centering on invention and creation, it adheres to the principles of objectivity, fairness, justice, and openness in theselection process, rewards R&D personnel who submit patents with corresponding IP application rewards, motivatesemployees' enthusiasm and initiative for R&D and innovation, promotes the quality of patents, continuously inherits theenterprise culture gene of valuing R&D, and continuously creates a strong research atmosphere and good R&D conditions.
In 2023, the company added 345 newly authorized patents, including 92 new inventions.As of December 31, 2023, the Company has a total of 914 valid patents, including 172 inventionpatents (including 7 international patents).
In 2023, the Company awarded a patent award of CNY1,370,000.
Four dimensions of patent award selection
Technicaladvancement
Patentquality
Marketcompetitiveness
Patentprotection
Key Performance
Key Performance
3536
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Seeking Zero-carbon
Driven GreenDevelopment
JSG aims to "To become a leading equipment supplier of semiconductormaterials, To facilitate high-tech industry development for green intelligentmanufacturing". It has established a sound environmental managementsystem, actively responded to changes in the climate, attached greatimportance to the environmental protection of its own production andoperations, and raised the awareness of environmental protection andsafety among all employees, to realize sustainable development of theenvironment and operations.
Our Philosophy
Environmental ManagementAddressing Climate ChangeGreen operationSafe production
Our Actions
3738
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
环境管理
JSG attaches importance to clean production, implements green concepts, sets environmental managementobjectives, guides all employees to participate in environmental protection control and green energy saving,and implements assessment and scoring of environmental protection indexes of suppliers to drive the upstreamand downstream enterprises of the industrial chain to jointly improve the environment and promote the healthydevelopment of the green energy industry. In 2023, the Company was rated as a Grade A credit level unit inenvironmental protection by the Department of Ecology and Environment of Zhejiang Province.
The international community clearly recognizes that promoting green and low-carbon development with clean energy isthe fundamental way for humanity to address global climate change, the backbone of achieving global carbon neutralitygoals and the key to sustainable global development. As a leading high-end equipment manufacturing enterprise inthe international PV industry in both technology and scales actively assumes the responsibility of promoting greendevelopment and vigorously promotes the realization of the national dual-carbon goals.
The Company actively practices the use of green and clean energy, firmly grasps the opportunities of cleantechnology, and fully utilizes the existing roofs and carports of each plant to promote rooftop PV powergeneration by constructing power generation systems and laying PV panels, etc. It continues to explore andapply more green technologies, and contributes to the achievement of dual-carbon goals. Currently, the rooftopdistributed PV power stations have been built in three parks in Zhejiang, Inner Mongolia and etc., covering anarea of over 70,000 square meters.
The Company strictly implements the "Environmental Protection Law of the People's Republic of China", the"Production Safety Law of the People's Republic of China", the "Fire Control Law of the People's Republic of China",and other laws and regulations. It has established an Environment, Health, and Safety (EHS) management systemand EHS management team, and formulated an "EHS Environmental Management Manual" and other policiesto standardize environmental management and control work in various production links, enhance resourceconservation and environmental protection, and achieve sustainable development of the environment and businessoperations. In 2023, the Company successfully completed its ?rst certi?cation of the energy management system andcontinued to contribute to energy saving and emission reduction through standardized management.
2023 environmental management objectives and achievements
Greenhouse gas emissions
Environmental Management ObjectiveIndex2022 Achievement2023 Achievement
Clean energy utilization rate≥60%≥60%≥60%Recovery rate of total recyclable waste≥80%80%82%Recycling utilization rate of general solid waste≥80%82%86%Three-waste emission compliance rate100%100%100%Identi?cation of important environmental factors
and e?ective control rate
100%100%100%Major environmental pollution accident000Administrative punishment for environmental
protection
Note：1. It contained the GHG emission in JSG's operation and production in 2022 and 2023.
2. The value was calculated based on the "Notice on the Management of Greenhouse Gas Emission Reporting for the Power Generation Industry
from 2023 to 2025" issued by the Ministry of Ecology and Environment of the People's Republic of China (HBQHH [2023] No. 43), the "Electronicequipment manufacturing Guidelines for Accounting Methods" and the "Reporting of Greenhouse Gas Emissions for Enterprises (Trial) andGuidelines for Accounting Methods and Reporting of Greenhouse Gas Emissions for Machinery and Equipment Manufacturing Enterprises (Trial)".
CategoryUnit20222023Total greenhouse gas emissionstCO2146,478276,046Greenhouse gas emission intensitytCO2/CNY10,000 revenue0.14
0.15
| ISO 14001 Environmental Management System Certi?cate | ISO 50001 Energy Management System Certi?cate |
In 2023, the Company's total PV power generation amounted to 10.38 million kWh, savingapproximately 2,958 tons of standard coal, reducing carbon dioxide emissions by 5,446 tons,sulfur dioxide emissions by about 183 tons, and nitrogen oxide emissions by about 91 tons.
●?
Establish green concepts
●?
Promote clean production
●?
Facilitate high-tech industry developmentfor green intelligent manufacturing
●?
Achieve sustainable development ofenvironment and business
●?
Comply with environmental regulations
●?
Fully participate in control
●?
Prevent environmental pollution
●?
Continuously improve environment
Environmental management philosophyEnvironmental management policy
Environmental Management
Addressing Climate Change
Key Performance
3940
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG takes green development as its duty, integrates green and sustainable development concepts into corporateculture and production operations, improves the entire process of pollution control mechanisms, continuouslystandardizes environmental management processes, enhances the efficiency of energy and resource utilization,strengthens the Company's energy-saving and energy-substitution capabilities, and responds to societalexpectations with practical actions to contribute to the construction of a green and blue home.
The Company's waste water primarily consists of domestic and industrial waste water. Domestic waste water originates fromoffice and residential areas, while industrial waste water mainly comes from the use of purified water and the preparationof concentrated water. The Company has formulated "Code of Waste Water Management" to collect and treat all types ofwastewater generated, further reducing environmental pollution. Additionally, the Company has set up a waste water reusesystem to reuse waste water twice to enhance the secondary utilization rate of waste water and reduce waste water discharge toa greater extent.
JSG attaches great importance to the management of waste gas, waste water and waste residues (three wastes) andcontinuously strengthens the investment and management of the three wastes. It has established dedicated departments tomanage the treatment of waste water, waste gas, solid waste, and hazardous waste, supervise chemical safety, maintain theCompany's environmental protection facilities, comprehensively enhance the level of waste management, and reduce the useof toxic and hazardous substances. At the same time, the Company uses environmentally friendly packaging and promotesgreen logistics to minimize the impact on the environment and make positive contributions to society and the environment.
Waste water management
In 2023, the total wastewater discharged by the Company was 958,056.79 cubic meters,and the total volume of recycled waste water was 45,907.27 cubic meters.
2022-2024 PV installation situation and planning of the CompanyCapacity：
8,743.32KWP2022
Added capacity：
3,935.995KWP
2023
Greenhouse Gas emissions can be reduced9,217tonsEstimated new capacity：7,472.345KWP
2024
PV power generation of the Company (unit: 10,000 KWH)
202220232024 estimated
1,038
1,800
Jingyu New Materials now uses pure water equipment that generates RO concentrate during the puri?cation process.This concentrate, containing excessive impurities and organic matter, cannot be directly used in production. JingyuNew Materials added a three-way valve and an electromagnetic valve to the drainage pipe of the pure water equipment,channeling the concentrate to a collection barrel. By installing a booster pump at the barrel's outlet, the concentrate istransported for use in ?ushing toilets across various ?oors and for adjusting chemicals in the sewage station. This projectsaves approximately CNY 68,185 annually in tap water costs and concentrate treatment. Furthermore, Jingrui Electronicintroduced a new intermediate water reuse system for treating waste water from the thinning machine, with a capacity ofup to 20 cubic meters per hour. It is estimated to save about CNY 320,000 in treatment costs annually.
PV installationNew waste water treatment equipment
Green Operation
Treatment of three wastes
Reduced waste water discharge by upgrading the treatment system, reducing costs andincreasing e?ciencyCase
Key Performance
4142
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
The Company's waste gas mainly comes from production and daily activities. Production-related waste gas primarilyconsists of acidic organic gases and particulate matter, which is effectively managed through activated carbonadsorption and spray devices. Daily waste gas mainly includes vehicle exhaust, for which the Company advocatesgreen transportation by promoting electric vehicle charging facilities within the plant area, reducing exhaustemissions. The Company has also established "Code of Waste Gas Management" to e?ectively collect and treat alltypes of emissions, ensuring compliance with national and local emission standards and preventing environmentalpollution due to non-compliant emissions.
Waste gas treatment
The Company has established a "Solid Waste Management System" to scientifically and rationally manageenvironmental monitoring and the statistics of waste recycling, promoted the use of recycling bins and recyclablepackaging, and reduced excessive packaging waste in product packaging and transportation to achieve costreduction and efficiency improvement. Moreover, the Company actively conducts various training sessions toenhance employees' knowledge and skills in handling chemicals, solid waste, and hazardous waste.
Waste treatment
Waste gas emission and management
Waste discharge
Waste Gas TypeEmission (Total Amount Approved)Emission Concentration
PM1.765t/a≤120mg/m
CategoryUnit202120222023Total recyclablewaste
Ton1,3001,8001,500Total general solidwastes
Ton4006001,100Total general solidwaste recycled
Ton8001,200140
note
May 2023, the Company organized chemical safety training, divided into groups and batches, to educateemployees equipped with chemical safety knowledge. The training covered the classification of generalchemicals, chemical usage standards, etc. The assessment was conducted in a Q&A format to ensureparticipants mastered the knowledge of chemical safety management, correct management processes andmethods. A total of 180 employees participated in the training, accumulating 3 hours of training time.
Chemical safety training successfully conducted, improving employee's safety awarenessCase
The Company conducted waste sorting training, including solid waste sorting and hazards, principles andtechnologies of solid waste treatment, and relevant legal requirements, to further enhance employees'understanding of solid waste, promote the classified placement of waste, reduce the time spent on wastesorting, e?ectively decrease environmental pollution, and prevent resource wastage.
Chemical safety trainingWaste sorting training
Waste sorting training successfully conducted, strengthening solid waste managementCase
Note: The Company's previous product packaging involved a signi?cant amount of cardboard, wood, and other packaging materials. In 2023, theCompany primarily replaced the original packaging materials with turnover boxes, pallets, and other alternatives, reducing excessive packaging andachieving multiple cycles of reuse.4344
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG is committed to improving energy e?ciency and reducing resource waste. It has formulated the "Code of Energyand Resource Management", and set goals for water and electricity conservation, as well as overall resource andenergy savings. JSG is committed to achieving the goal of emission reduction and promoting green productionby introducing and improving water treatment equipment, exploring water and power saving technology andoptimizing the e?ciency of equipment and other energy-saving and consumption-reducing measures.
The water resources used by the Company primarily come from municipal tap water and treated recycled/reclaimedwater, serving the needs of production, operation, and daily life.
Water resource management
Water consumption
TypeUnit202120222023
Purchased municipal waterm
742,142922,3233,028,793Consumption intensity of water
resources
t/CNY10,000revenue
1.240.871.68Note: In 2023, the expansion of the materials business (crucibles, silicon carbide substrates) led to an increase in water consumption.
The energy consumed by the Company includes diesel, gasoline, and purchased electricity, with electricity beingthe primary energy source. The Company continuously reduces energy consumption and improves energy e?ciencythrough various measures such as eliminating and replacing equipment with new ones, improving processes, andusing energy in a scienti?c way. In production, the Company prioritizes energy-saving and low-energy-consumptionauxiliary equipment; in daily operations, the Company has eliminated three diesel forklifts to reduce diesel usageand gives priority to electric vehicles for business travel to reduce gasoline consumption, thereby comprehensivelyreducing energy consumption and promoting green and harmonious development of the Company and theenvironment. In 2023, the Company received the ISO 50001 Energy Management System Certificate for energymanagement activities related to the production of polycrystalline silicon ingot casting furnace, mono crystal puller,and their auxiliary equipment.
Energy management
Energy consumption
TypeUnit202120222023
Diesel consumptionLiters860166,05634,710Gasoline consumptionLiters3,52131,08415,080
Electricity consumption
TypeUnit202120222023
Purchased electricity
consumption
kWh288,453,817255,969,990484,010,108Operating incomeCNY10,000596,1361,063,8311,798,319Purchased electricityconsumption intensity
kWh/CNY10,000
revenue
483.87240.61269.15Floor area of all plants10,000 m
54.7989.14128.88Purchased electricityconsumption intensity
MWh/10,000 m
5,264.722,871.553,755.51
The Company's sapphire silicongrowth furnace employs aclosed-loop circulating poolfor cooling, operating 24 hoursa day with a 1,000 cubic meterwater pool powered by waterpumps. With 16 water pumpsworking simultaneously, theannual recycled water usagereaches 34,560,000 tons.
Adopted circulating pool for cooling, improving water resource utilizationCase
Resource Conservation
1# internal circulating pool
Plate-type heatexchanger
Productionarea B
Productionarea A
4546
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG always adheres to the original intention of environmental protection, and integrates environmentalprotection into the Company's operation through measures such as waste sorting, paperless o?ce, and organizinggreen activities. The Company has planned a series of specialized training covering in-depth interpretations ofenvironmental protection policies and regulations, identi?cation and management of environmental risks, and thelatest knowledge on environmental protection technologies and processes, to enhance the environmental awarenessand responsibility of all employees.
| Charging stations of the Company | Ecological ?shpond in the park | Environmental protection banners | ||||
JSG always adheres to the concept of production safety, pays attention to chemical safety, emphasizes on thecultivation of employees' emergency response ability, strictly abides by the "Law of the People's Republic of Chinaon Work Safety", "Law of the People's Republic of China on Prevention and Control of Occupational Disease" andthe requirements on the safety restriction of chemicals, and formulates systems such as the "Chemical SafetyManagement System", "Emergency Response Plan for Sudden Environmental Pollution Accidents", and othersystems. The Company has built an occupational safety and health management system and organizationalstructure, set safety management goals and tracked the achievement of the goals, implemented strict chemicalsafety control in the whole process from product design, procurement, manufacturing to shipment, and obtainedISO 45001 Occupational Health and Safety Management System Certi?cate, which provides a strong guarantee forthe Company's high-quality development.
2023 safety management objectives and achievements
Safety Management ObjectiveIndexAchievementIdenti?cation and e?ective control rate of major hazard sources100%100%Major production safety accidents/personal injury accidents00
Recti?cation rate of hidden safety hazards100%100%Complete rate of safety facilities and equipment100%100%
Green operation measures of the Company
Install fresh airsystems in all areas toe?ectively ventilatework areas andimprove the workingenvironment
Reduce printingdevices, centralizingto one device per?oor and promotingdouble-sided printingConduct wastesorting, implementthe "three reductionsand four separations"method, andperiodically carryout environmentalinspections
●?●?
●?
Stagger airconditioning usageduring summer andset temperaturecontrols
●?
Install chargingstations in theparks
●?
Implement treeplanting and carry outgreen environmentalwork
●?
Develop ecologicallandscape belts,renovate ecological?shponds, and use?ltration systems toimprove water quality
●?
Safe ProductionGreen o?cing
4748
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Under the EHS management system, JSG has established a Joint Safety Production Committee and a Safety ExecutionTeam, meticulously planned safety management and audit work, and incorporated safety management objectivesinto the requirements of the entire safety production process. Through safety and health tiered management, priorityoptimization processes are continuously improved for positions with high labor intensity, potential periodic fatigue, andpossible occupational hazards, reducing the risk of occupational health and safety to employees.
●?
Diligently implement national guidelines, policies, laws, and regulations on safety production and theCompany's safety management regulations;
●?
Implement the work requirements conveyed by the Joi=nt Safety Production Committee, and improvethe supervision and management of safety, environmental protection, fire safety, special equipment,occupational health, and other safety supervision work in each regional company;
●?
Participate in formulating and revising various regulations on safety production and supervise theirexecution;
●?
Assist the Company leaders in organizing safety production meetings, regularly organize department headsfor major safety inspections, organize accident investigations, and implement the principle of "no leniency";
●?
Be responsible for organizing the Company's safety production publicity, education, and job safety skillstraining, supervising the implementation of the three-level safety education for employees;
●?
Be responsible for organizing the compilation and improvement of emergency plans for production safetyaccidents, environmental and hazardous waste accidents, and organizing emergency plan drills;
●?
Organize the Joint Safety Production Committee to hold a safety special meeting semi-annually, the SafetyExecution Team to hold a safety special meeting quarterly, and each area to organize a safety specialmeeting monthly, regularly collaborating with various departments for on-site safety production inspections.
●?
Implement the principle of "safety ?rst, prevention foremost, and comprehensive management", enforceall relevant laws, regulations, rules, and standards, study important issues on safety production, and reportsafety work to superior authorities and local safety committees in a timely manner;
●?
Implement comprehensive management of safety work of companies in the joint area, and be responsiblefor coordinating, guiding and supervising safety production work;
●?
Review and approve the safety production policies, objectives, management plans, regulations, safetymeasures, and plans of the a?liated companies and supervises their implementation.
Responsibilities of Joint Safety Production Committee
Responsibilities of Safety Execution
Safety management organizational structure
Board ofDirectors
Chairman
Joint SafetyProductionCommittee
Safety Execution
Team
JSG vigorously promotes the construction of safety culture, formulates annual safety training plan, combinesinternal and external trainings, organizes employees to participate in all kinds of safety and emergency training, andsupplements it with diversi?ed assessment methods, such as question and answer, examination, practical operation,and obtaining certificates, etc., to enhance the awareness of production safety of the whole staff, strengthen theskills of self-help and rescue to deal with all kinds of environmental protection accidents, minimize the hazards of theaccidents, and enhance the practical ability of the sta? to work in a safe way.
2023 Safety Training Plan
In 2023, JSG conducted more than 38 safety training sessions according to its annual training plan.
JanuaryFebruaryMarch
AprilMayJuneJulyAugustSeptember
OctoberNovemberDecember
Special Equipment Training and Certi?cation2023 Assessment Rules of Safety Production
Responsibility SystemSpecial Training for Winter Safety Production
Fire Safety Knowledge Training
Waste sorting trainingFirst Aid Knowledge Training
Security Skills TrainingChemical safety training
Solid Waste Knowledge TrainingSolid Waste Knowledge Training
Accident Case TrainingSpecial Operation Personnel TrainingHazard Source and Environmental Factors Training
Emergency Knowledge TrainingElectrical Safety TrainingLogistics Service Personnel Training
EHS System TrainingFire TrainingSafety Production Knowledge Contest
Training subject
UsersTeam leaders and aboveTeam leaders and aboveTeam leaders and aboveSafety o?cersSafety o?cersAll security personnelSafety o?cers
Safety o?cersSystem specialists
Safety o?cers
Safety o?cersSpecial type of workTeam leaders and above
All members
Safety o?cersLogistics service personnel
Team leaders and above
Participants
TraineeTraining time
Safety Management OrganizationSafety Production Training
Key Performance
4950
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
To ensure the health and safety of its employees,the Company has specially installed automaticexternal defibrillators (AED) and invited external RedCross rescuers to conduct on-site classes, aiming toenable employees to master the basic knowledge ofemergency care and key AED first aid practices, andto improve the emergency response ability of theemployees in the face of accidents, so that they canplay the role of "the first rescuer" before the arrivalof professional ambulance personnel. In 2023, theCompany held a total of 2 first aid training sessions,certifying 114 individuals.
Improve employees' awareness of fire safety and enhance their emergency response capabilities to fires,including mastering correct firefighting techniques, the Company organized fire drill training activity. Thisactivity included segments on emergency evacuation, firefighting drills, and emergency first aid, coveringtopics such as ?re safety basics, extinguishing ?res, evacuation, and ?rst aid. Participants learned about theprinciples and use of ?re extinguishers, became familiar with evacuation routes and precautions, and masteredevacuation techniques and skills.
First aid knowledge trainingFire safety drill training
AED training successfully carried out, enhancing employees' ?rst aid awarenessCase
Fire drill training successfully organized, enhancing ?re safety awareness Case
In June 2023, the Company and its subsidiaries implemented multiple measures to closely follow the theme ofSafe Production Month, which is "Everyone cares about safety and everyone can respond to emergencies", toe?ectively grasp all the work, implement the safety issues, and to organize and carry out a series of activitiesfor safe production month. The Company and its subsidiaries created a strong atmosphere of production safetyby carrying out publicity activities, hanging production safety banners, production safety slogans, broadcastingpublicity videos and thematic educational films, etc.; carrying out the "I eliminate hidden dangers" activityfor the whole sta?, and investigating hidden safety dangers in depth; organizing and carrying out emergencyresponse drills, knowledge contests on production safety, ?re?ghting skills competitions, expert lectures andother activities to enhance safety knowledge and practical ability in the learning process, and to strengthen thesafety awareness and safety responsibility of all cadres and employees.
Fire safety drill trainingExpert lecture on safety production
| Expert lecture on safety production | Emergency drill in Safe Production Month | Knowledge contest in Safe Production Month | ||||
Conducted the Safe Production Month activity of "Everyone cares about safety andeveryone can respond to emergencies"Case
In November 2023, the Company conducted a 2-hour emergency knowledge training session with 200participants. The training detailed emergency evacuation techniques and emergency first aid knowledge,including an emergency drill to further solidify employees' abilities to respond to emergencies and handle thempro?ciently, with an aim to strengthen self-rescue and emergency skills in the event of various environmentalaccidents, ensuring e?ective organization, rapid response, e?cient operation, and no chaos in emergencies.
Emergency knowledge training successfully conducted, strengthening employees'emergency capabilitiesCase
5152
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Focusing onInnovation and
Development
JSG ?rmly believes that innovation and quality assurance are vital to acompany's lifeblood, and takes innovation and development as the coredriving force of its development. Through continuous exploration andinnovation, JSG leads the development of the PV and semiconductorindustries, helps promote and innovate clean energy technologies, andcreates green energy for the world while continuously improving andbuilding a higher-quality product and service system to promote theentire industrial chain to a higher level.
Our Philosophy
Technology R&DQuality ManagementCustomer Service
Our Actions
5354
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG places research and development at the core of its development, always insists on implementing R&Dinnovation in a dual-wheel drive mode of technological innovation and in-depth excavation of customers' needs, andcontinuously strengthens investment in research and development to continuously strengthen its own R&D strengthand innovation ability, so as to ensure the sustainability of the Company's competitiveness and to create greatervalue for its customers.
Organization chart of R&D platform
JSG has built and perfected its R&D system, focusing on strategic R&D, product and technology R&D, and processand technical support R&D. By strengthening the research on national industrial policies and industry developmenttrends, tracking the development direction of the PV and semiconductor industries as well as technologicalfrontiers, collecting and analyzing information on customer demands, industry markets, competitive enterprises,and new products and technologies, the Company determines its R&D objectives, directions and paths, plans forthe establishment of a series of core technological development platforms and industrialization platforms for itsproducts and technologies, and continues to research and develop new products and technologies that meet themarket demands and the Company's development strategies, to ensure that the Company is in an advantageousposition in the industry and provide more high-quality production capacity for the country and the industry.
JSG has always adhered to its core strategy of "To become a leading equipment supplier of semiconductormaterials, To facilitate high-tech industry development for green intelligent manufacturing".The Company's core business is in upstream the green energy industry chain, covering silicon wafers, cells, andcomponents in the PV equipment field. Relying on years of deep understanding of PV materials, equipmenttechnology, and processes, JSG continuously increases investment in technological innovation, deepens cooperationwith upstream and downstream industry chains, produces multiple scienti?c research achievements, and promotesan eco-friendly industrial chain ecosystem.
JSG is constantly optimizing its R&D organizational structure, which includes 4 major R&D centers, 9 large-scaleequipment research institutes, 2 large advanced laboratories, and 2 professional R&D departments. Additionally, thecompany actively promotes the construction of R&D platforms, holding national postdoctoral research stations, state-levelenterprise technology centers, Zhejiang Semiconductor Equipment Industry Research Institute, Zhejiang SemiconductorEquipment Precision Parts High-tech Enterprise R&D Center, Zhejiang Province Foreign Experts Station, Zhejiang ProvincialKey Research Institute in Industrial 4.0, Zhejiang Jingsheng Electric Crystal Growth Equipment Research Institute, ZhejiangSemiconductor Intelligent Manufacturing Key Enterprise Research Institute, and Zhejiang Semiconductor Material GrowthProcessing Equipment Key Enterprise Research Institute, among others.
In 2023, the Company's R&D investment amounted to CNY 1,145,395,200, accounting for
6.37% of the revenue, an increase of 43.83% over the same period last year.
Mono silicon rodPoly-silicon
PV equipment
Silicon growthequipment
CropperSquarerGrinder
Slicer
Pre&Sep&Final cleaning integrated
machine
Silicon wafer sorting and boxing
equipment
PECVD(POLY)
Boron di?usion
furnace
Annealing furnaceShingled component
R&D organizational structure
9 large-scaleEquipment ResearchInstitutes
2 large advancedlaboratories
2 professional R&DDepartments
Technology R&D
Scienti?c Research Management
Scienti?c Research Platform
Opportunities in Clean Tech
4 major R&D centers
Silicon waferBatteryModules
Key Performance
5556
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Note: The value was calculated based on the 2022 national power grid average emission factor of 0.5703t CO
/MWh published in the "Notice onthe Management of Greenhouse Gas Emission Reporting for the Power Generation Industry from 2023 to 2025" issued by the Ministry of Ecologyand Environment of the People's Republic of China (HBQHH [2023] No. 43), the "Construction and Operation of PV Power Generation in 2021"and "Construction and Operation of PV Power Generation in 2022" published by the National Energy Administration, the annual average powergeneration per GW of installed PV capacity obtained according to the "Cumulative Solar Power Generation in 2022" published by the NationalBureau of Statistics, as well as the expandable PV installed capacity mentioned earlier.
As of December 31, 2023, the Company's total un?llied contracts for crystal growth equipmentand intelligent processing equipment order amounted to CNY 28.258 billion, including
CNY 3.274 billion for semiconductor equipemnt orders. The fully automatic mono crystal
silicon growth furnace is the core process equipment in the Company's PV industry chain, with anestimated reduction of GHG emissions of 80 million tons CO
equivalent.
Key Performance
Green innovation, advancing clean energy transformation
In May 2023, the Company invited over 200 industry-leading clients and investors to a product launch event,showcasing the release of three innovative PV products. These products include the fifth-generation monocrystal puller, an integrated sorting and boxing machine, and tungsten wire, marking signi?cant achievementsin response to the increasingly stringent quality requirements for silicon wafers in the PV industry.
Released three innovative products, leading technological innovation in the PV industryCase
●?
Provide customers a single-machine open secondaryplatform for mono crystal puller, allow users toindependently program processes and logic onthe platform, deeply mine data value, and createdifferentiated core competitiveness.
●?
Introduce superconducting magnetic field technologywidely applied in semiconductor field into PV field, toeffectively eliminate concentric circles, improve minoritycarrier lifetime, expand the effective resistivity range,and bring the efficiency of N-type cells closer to thetheoretical limit once again.
●?
It is a new generation of integrated equipment that combines high-speed Al detection, sorting, and automaticpackaging.
●?
It achieves high production efficiency, high detection rate, high yield, reduced manpower, and intelligentoperation, connecting the last station of silicon wafer intelligent factory.
●?
Feature high tensile strength, high toughness, high breaking force, fatigue resistance, and corrosionresistance. It is more suitable for "large size + thinning" silicon wafer cutting, having surpassed thecarbon steel wire and showing the feasibility of continuous thinning.
The 5th-generation mono crystal puller
Integrated sorting and boxing equipment
Tungsten wire
Dr. Cao Jianwei, Chairman of the Boardof Directors, explained the 5th-generation
mono crystal pullerDr. Zhu Liang, Vice President, explained the sorting and boxing equipment
Dr. Zhu Liang, Vice President, explained the sorting and boxing equipmentDr. Fu Linjian, Vice President of Operations, explained tungsten wires5758
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Scienti?c breakthroughs, promoting the domestication of semiconductormaterials and equipment
In November, Jingxin Green Diamond's R&D teamsuccessfully completed the cultivation of 10-Caratsynthetic diamonds, marking a significant advancementin key core technologies in the industrialization processof large-sized synthetic diamonds. As a new generation ofsemiconductor material, high-quality synthetic diamondscan be used not only in jewelry making but also widelyin high-tech industries such as 5G communicationsand advanced equipment. In the future, Jingxin GreenDiamond will continue to adhere to its mission of "lettingsunlight into diamonds", dedicating itself to technologicalinnovation in the synthetic diamond process, breakingindustry bottlenecks, meeting market demands, andfacilitating industry upgrades.
In August 2023, the first mass-produced superconducting magnet for PV monocrystalline furnaces, developedby Huixiang E&H, successfully debuted. This marks the beginning of superconducting magnets into the massproduction era in the PV ?eld. Moreover, JSG's ?fth-generation PV mono crystal puller will be widely introduced tosuperconducting magnetic ?eld technology. This project's implementation meets the demand for expansion of PVmono crystal puller in the era of N-type silicon, helps open the process window for low-oxygen N-type silicon growth,improves the quality of N-type silicon wafers, stimulates production capacity, achieves lower costs in reducingconcentric circles and oxygen content in N-type silicon crystal pulling, and drives global progress in PV intelligentmanufacturing technology towards a more e?cient and environmental-friendly new era.
Jingxin Green Diamond realized the cultivation
of 10-Carat synthetic diamondsHuixiang E&H's ?rst mass-produced superconducting magnetic ?eld for PV mono crystal puller successfully
debuted
Huixiang E&H superconducting magnet debuts, ushering in the mass productionera in the PV ?eldCase
Jingxin Green Diamond breaks through core technological barriers to successfullycultivate 10-Carat synthetic diamondsCase
In September 2023, Huixiang E&H achieved a newbreakthrough in the development of semiconductor-grade mono crystal superconducting magnetic fields -the 12-inch dry transverse superconducting magneticfield over 5000Gs for the first time. This marks HuixiangE&H as the first domestic company capable of stablymass-producing MCZ superconducting magnets with5000Gs. Compared to international MCZ superconductingmagnet manufacturers with 3000-4000Gs, HuixiangE&H has overcome numerous technical challenges insuperconducting magnet design and manufacturingprocesses, significantly improving crystal pulling effects,laying the foundation for high-end semiconductor crystalpulling processes, meeting the differentiated needsof the semiconductor industry for Czochralski siliconmono crystal processes, and creating greater bene?ts forcustomers.
In June 2023, the Company successfully developed an 8-inch monolithic silicon epitaxial furnace with aninternational advanced level. This equipment achieves epitaxial quality with doping uniformity within4%. The 8-inch monolithic silicon epitaxial furnace is compatible with the production of 6-inch and 8-inchsilicon carbide epitaxial wafers. It solves the control difficulties such as temperature field uniformity and?ow ?eld uniformity in cavity design, realizing a mature and stable 8-inch silicon carbide epitaxial process.This equipment marks another signi?cant technological breakthrough for the Company in the ?eld of third-generation semiconductor equipment, providing ample equipment support for the technological and capacityupgrading in the domestic silicon carbide industry.
Huixiang E&H's ?rst mass-produced superconducting magnetic ?eld for PV mono crystal puller successfully
debuted12-inch transverse magnetic ?eld without liquid
helium
12-inch transverse magnetic ?eld without liquid
helium8-inch monolithic silicon epitaxial furnace
Huixiang E&H achieves leadership internationally by making 12-inch transversemagnetic ?eld over 5000Gs for the ?rst timeCase
8-Inch single-wafer silicon carbide successfully developed, leading technicalupgrades in the domestic silicon carbide industryCase
5960
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
| The ?rst (set) product in Zhejiang Province in 2023 | Listed in the First Batch of Eagle Enterprises in Zhejiang Province |
In January 2023, the main building of the JSG Innovation Industrial Park Project was established, markingan important step in the Company's strategic layout towards "three major manufacturing bases "two majorexperimental centers".To support the development of 12-inch large silicon wafers, the Company invested CNY800 million to builda testing experimental line of 12-inch integrated circuit large silicon wafer equipment in the industrial park,equipped with industry-leading testing and detection equipment, and constructed a testing environmentsite that meets high standards. This improves the Company's hardware facilities in the testing and detectionlinks, provides testing that meets different testing requirements, tracks and applies new semiconductortechnologies. After the experimental line was put into use in July 2023, it will accelerate the developmentand innovation of domestic large silicon wafer equipment, promote the Company's equipment processimprovements and achieve international leadership, provide customers with silicon wafer equipment andsilicon wafer production line testing, accelerate the innovation process, solve the difficult problems ofcustomers in the core technology of the semiconductor track being "strangled", accelerate the transformationof scienti?c and technological achievements of enterprises, and speed up the domestication process of largesilicon wafer equipment and auxiliary materials consumables.
JSG Innovation Industrial Park Project Building established, accelerating thedevelopment and innovation of domestic large silicon wafer equipment
Case
JSG has always been adhering to the principle of quality ?rst, formulated and optimized systems such as "Planningand Control Procedure for Product and Service Realization", "Quality Objective Management Procedure", "ProductProtection and Control Procedure", etc. The company has built a quality management system, and continuouslyimproved standardized management, after-sales standard management, supplier management, tooling equipmentmanagement, risk management, testing center standardization management, materials and finished productsimprovement management, and other tasks through the QFD (Quality Function Deployment) model with PDCA asthe core concept, to ensure the quality management throughout the lifecycle of product.
The Company prioritizes informatization and intelligent construction to drive quality management. In 2023, itsuccessfully launched the SAP project, established the overall framework of the JSG integrated digital managementplatform, created an integrated system architecture that "focuses on financial management, standardization ofbusiness processes, standardization of data management, timely sharing of business data, and visualization ofbusiness decisions". This integration allowed for the interconnectivity of systems like SAP, BPM, SRM, etc., integratedthe entire process from customer demand to development orders, planning, purchasing, and production delivery,and deepened integration of "upstream and downstream" business with "front/middle/back-end" functions, thuspromoting comprehensive collaboration across ?nance, planning, sales, purchasing, production, and inventory, andenhance the Company's operational e?ciency and quality control level.
In 2023, the Company added 33 new system documents, expanded the standard matrix by22, introduced 71 new system documents, and optimized 70 documents.
Building capping ceremonyAll employees celebrated the launch of the SAP system
Whole process quality control
MissionRisk management and control based on the whole process quality, pursuing zero defect
Compliant andreliable
Fast responseZero defectReduced escape,no recurrence of
problemsObjectives
Quality Management
Key Performance
6162
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In accordance with ISO 9001 quality management system certification, the Company has established a completeR&D quality control system from design and production, process improvement, product certification and testing,project development and declaration. In 2023, the Company further strengthened its quality management systemcertification, expanded certifications for multiple management systems, and conducted regular audits of theexisting quality management system to improve product quality stability, systematic level of quality control, andthe Company's overall quality consciousness and management level, enhancing its competitive advantage bothinternationally and domestically.Changes in management system certi?cation
3 bases5 bases
Quality management system certi?cation
Production base changes:
4 types of equipment
Product changes:
Coveringall production
equipment of the Company
Product safety certi?cation
●?
Certi?ed equipment:
●?
Added in 2023:
●?
Certi?cation in progress:
mono crystal puller, grinder,wire slicer, squarer, shingledcomponent equipment;Polisher, integrated machine,crystal pulling vehicle, stringtesting machineCropper, roller
CEcerti?cation
ISO 9001:2015 Quality Management System CertificateSummary meeting for Quality Month
Summary meeting for Quality MonthQuality Month activity site
In May 2023, Ningxia Xinjingsheng launched the 2023 Quality Month activities themed "Establish qualityconsciousness, solidify the quality foundation, enhance quality e?ectiveness",organized quality management training and knowledge competitions, strengthened process quality control,and held a summary commendation meeting for Quality Month, creating a positive environment whereeveryone cares about, values, and pursues quality, deepening the implementation of the "quality strengthensenterprise" strategy, and practicing the goal of "quality wins".
Quality Month series activities successfully concluded, solidifying the foundation ofquality managementCase
6364
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In July 2023, Ningxia JingHuan held its inaugural QCC quality improvement project launch ceremony to furtherenhance the quality management awareness of all employees, and strengthen the ability of all employeesto collaborate innovatively and improve problems, with group leaders from quality, machining, wire slicing,polishing, equipment, tooling, etc. presenting the project implementation plan, objectives, and expectedoutcomes. The project aims to integrate team wisdom and strength to solve identified work issues, deeplyembed the QCC concept into daily operations, reduce redundant work processes, enhance quality controlcapabilities, increase customer satisfaction, and surpass customer needs with better quality and service.
Ningxia JingHuan initiated the QCC quality improvement project to strengthen productquality management
Case
JSG adheres to a customer-?rst service philosophy and is committed to satisfying every customer with high-qualityservices. The Company has established systems like "Customer Complaint Management Process", "CustomerSatisfaction Management Process", and "Customer Training Management Process", focusing on customer complaintfeedback and process handling, strengthening customer satisfaction management, standardizing customer trainingmanagement processes, and providing high-quality services to customers.
JSG attaches importance to customer feedback, holds regular customer satisfaction surveys, conducts quarterlysatisfaction survey planning and monthly satisfaction research for project and spare parts customers, and regularlyholds satisfaction weekly meetings to address customer issues, with relevant department heads analyzing causes,following up on processes, and implementing improvement measures to achieve an early detection, feedback, andclosing loop for issues in all processes.
Customer Service
Customer Communication Feedback
Product or service complaint management process
· When receivingcomplaint lettersfrom customers ordiscovering safetyand major qualityincidents, it is requiredto report them to theQuality ManagementDepartment by e-mailor telephone within 2hours on working daysand 6 hours on non-working days· Quality and safetyincidents are alsoreported to the GroupQuality Committee
· Quality and safetyincidents are alsoreported to the GroupQuality Committee· QA of the QualityDepartmentcommunicates with therelevant sales personor after-sales serviceleader to con?rmwhether the customerneeds a responseletter to deal with theproblem
· Analyze the causes ofquality problems bymeans of various qualitytools and developurgent measures· Set up a team to analyzeand improve importantproblems/qualityaccidents according to8D method
· Validate post-implementation e?ectsusing tests, varianceanalysis, pareto diagrams,histograms, etc.
· Develop permanentmeasures usingresponse tables suchas the PDCA method,network diagrams,etc.
· Cases of validatedmeasures are expandedhorizontally anddocumented
· Customer complaintsare integrated intothe BPM system formanagement
Questionpresentation
Effectverification
CaseClosurePreventivemeasuresInformation
transfer
Causeanalysis
Measureformulation
In 2023, the customer satisfaction rate was 97.8% and the customer complaint resolutionrate was 100%.
Key Performance
6566
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG PDCA customer training process
JSG values empowering customers, establishes training processes, and speci?es the needs identi?cation, trainingplan, implementation, and continuous improvement during customer training. It provides comprehensive training onequipment technical speci?cations, operation instructions, and common fault handling to ensure the achievementof the expected training outcomes.
In 2023, the after-sales service team of Huixiang E&H'sexhaust equipment was awarded the "Best ServiceTeam" of 2022 by Tianjin Zhonghuan AdvancedMaterials Technology Co., Ltd., which was highly praisedby the customer and evaluated as the best service teamof Azeus. In the future, Huixiang E&H will continue tobuild a more professional service team with the missionof "focusing on high-end equipment manufacturing andcreating a national excellent brand", and demonstratethe corporate value of "struggle orientation, partneraccomplishment" through actions.
JSG's Xining Service Station received a banner from customersHuixiang E&H received the "Best Service Team"Award of 2022 from Tianjin Zhonghuan
Huixiang E&H won "Best Service Team" Award, earning high recognition for outstandingserviceCase
●?
Coordinate customer training contentbased on needs;
●?
Identify essential training needs based onequipment installation progress;
●?
Prepare the customer training plan
●?
Issued training questionnaires to obtaincustomers' evaluations of the training,including evaluations of trainers'competence, course content, and traininge?ectiveness.
●?
Conduct customer training according to theplan;
●?
Timely adjust and resolve issues encounteredduring the training process;
●?
Responsible for feedback and reporting on
problem resolution progress.
●?
Organize the summary and reviewof training evaluations;
●?
Develop and implement improvementplans;
●?
Share accumulated knowledge andexperience.
Action (A)Check (C)
Plan (P)Do (D)
Customer Training
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Working Together for
Win-win Cooperation
JSG, with modern supply chain construction as the link, continuouslyimproves supply chain management to support and strengthen theCompany's ?rst and second growth curves, better respond to marketchanges, improve organizational resilience, and enhance marketcompetitiveness. Additionally, the Company continuously carries outdiversi?ed cooperative activities, breaks through cooperation barriers,explores industry cooperation frontiers, and supports the breakthroughof the third growth curve, fully enhancing the sustainable developmentof the Company.
Our Philosophy
Supply Chain ManagementIndustry Cooperation
Our Actions
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG centers its efforts on "focusing on the industrial chain supply chain to enhance the innovation chain,continuously enhancing technological support capabilities", and is committed to creating a flexible and resilientsupply chain system, and leveraging company strength to promote both international and domestic dual circulation.Through continuous strategic supplier management processes, practicing transparent and honest procurement,creating innovative supply chains, conducting procurement training, and strengthening supplier cooperation andcommunication, the Company ensures high-quality development
To build a safe and stable integrated supply chain management system, JSG has developed and perfected varioussystem documents like "New Supplier Development Process", "Supplier Management Process", "Supply Chain RiskControl Process", "Supplier Performance Management Process", and "Supplier Audit Process". With "PDCA" as thecore structure, the Company has built a standardized "trinity" supplier management process, added supplier riskassessment link on the basis of the original supplier management process, and revised the performance content ofquali?ed suppliers for all materials, services and outsourcing procurement. The performance content of suppliershas been revised for all materials, services and outsourcing procurement, which e?ectively improves the timelinessof suppliers' delivery and the quality of materials, strengthens the ability of identifying, analyzing and evaluatingsupply chain risks, and improves the Company's supply chain management e?ciency.
Supply Chain Management
Integrated Supply Chain Management
Supplier management process
Supply chain
strategicmanagement
Supplier quality
management
Supplier riskassessment
Purchase order
management
Supplierperformancemanagement
The Company prioritizes enhancing the professional capabilities of purchasing personnel, addressing key points inmodern supply chain management from the demand side, internal, and supplier perspectives, conducting targetedtraining for procurement staff, and continuously improving their purchasing management capabilities. Moreover,the Company regularly convenes annual supplier conferences, combines various experiences and perspectives,collaborates innovation and joint e?orts to introduce new products and technologies that meet the market demand,and discusses the way of development, to build a high-quality supply chain that can quickly adapt to the market anddevelop ?exibly.
Flexible supply chain procurement stategy
Demand
Streamline the numberof suppliersStandardizationMulti-purchase uni?edGroup purchasingGeneralization
Integrate supply-sideoperations
Concentrated
Purchasingconcentrated
Managementconcentrated
Supply sourceconcentrated
Purchasing +Management
Supplier
In December 2023, the Company held the 2023 Annual Global Supplier Conference smoothly. The Conference, themed"Innovation · Integration · Breakthrough", was attended by Dr. Cao Jianwei, the Chairman of the Company, and othersenior management members, along with representatives from nearly 200 global suppliers, gathering at the InnovationCenter. During the conference, the Company's leaders shared experiences in supply chain management, discussed thechallenges currently faced in the market, expounded on future product research and development directions, proposedspeci?c measures to strengthen supplier management, and engaged in in-depth discussions with the suppliers present.The successful conclusion of this Conference has profound signi?cance for the Company to strengthen supply chain value,deepen strategic partnerships with suppliers, and achieve joint innovation and growth.
Speech by President He Jun at the 2023 Supplier
Conference2023 Annual Supplier Conference site
2023 Annual Supplier Conference successfully concluded, working together to face complex situationsand grow with suppliersCase
2023 Annual Supplier Conference siteSpeech by Chairman Dr. Cao Jianwei at the 2023
Supplier Conference7172
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In October 2023, the Company organized procurement team members to undergo training in procurementcost reduction management and commercial negotiation practices.By focusing on changing demands, data-driven thinking, internal collaboration, and supplier relations, the training guided employees to adopt newmethods, tools, and processes to improve procurement e?ciency and professionalism, reduce potential risksin procurement processes, and save procurement costs.A total of 28 employees from the procurement teams of the Hangzhou and Shanghai bases participated in thistraining, which e?ectively enhanced their core competenciesin supplier relationship management, selection assessment, cost analysis, price control, and negotiation skills.
Implemented procurement cost reduction management and commercial negotiation training toenhance employee's procurement management capabilitiesCase
JSG continually optimizes the supplier performance evaluation process, maintains a "Qualified Supplier List",and ensures normal production operations and product quality through a series of processes including regularsupplier assessments, key performance indicator statistics and monitoring, and analysis of interactive results.Additionally, the Company incorporates ESG factors into supply chain assessment indicators, evaluates supplierson risk management, environmental, and social indicators using the "Supplier On-Site Inspection Scoring Form",and requires suppliers to provide a "Commitment to Non-Use of Banned Substances", which includes terms fromthe "Requirements of Concentration Limits for Certain Restricted Substances in Electrical and Electronic Products",to ensure that the products or services provided do not contain substances harmful to the environment and humanhealth. In 2023, the Company optimized its supplier performance evaluation process by adding internal reviewmeetings to further motivate suppliers to improve their capabilities and business performance, together building anoutstanding and sustainable supply chain system.
The Company advocates transparent procurement, considers integrity as the red line for supply chain construction,and signs integrity agreements with suppliers to enhance awareness and strictly enforce ethical procurement.Additionally, the Company practices transparent procurement through regular training on the topic of integrity andtimely updating of the quali?ed supplier list.
Evaluation indicators of Supplier Site Visit Rating Form
In 2023, the Company had a total of 1,504 suppliers, of which 100% signed the Supplier Code of Conduct;100% of the suppliers signed agreements that included environmental and labor requirements; 93% of
the suppliers conducted social impact assessments;94% of the suppliers conducted environmental impactassessments; and100% of the purchasers completed sustainable procurement training.
As an industry-leading intelligent PV and semiconductors manufacturer, JSG shoulders the social responsibilityof a leading enterprise, focuses on regional cooperation and joint development, maintains good cooperation andcommunication with the government, colleges and universities, and upstream and downstream of the industrial chain,and collects all the strengths to lead the industry's development and show the enterprise's commitment. As an industryhidden champion and high-tech enterprise, the Company is committed to collaborative innovation and mutual bene?t,striving to bring domestic equipment to the global market and become the light of Chinese enterprise development.
JSG tirelessly explores new models of industry-academia collaboration, aiming to connect academic intellectualresources with the Company's leading technology as a formidable enterprise. By collaborating with domestic "985Project" universities, JSG has established various research centers and joint full-time professional master's degreeprograms, injecting practical momentum into universities, enhancing the Company's innovative technology level,and refining its talent structure, thereby promoting sustainable development in the industry through industry-academia-research application.
Quali?cationTechnical levelPerformanceWarehouse logisticsSafety management
Production equipmentmanagement
Product designSafetyEnvironmental protection
Quality management
system
Operating statusFinancial risk
Industry Cooperation
Sustainable Supply Chain Management
Industry-academia Collaboration
Key Performance
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In February 2023, the Company completed the "12-inch hard-axismono crystal silicon growth furnace" research project in collaborationwith the School of Mechanical Engineering, Zhejiang University. TheCompany works with Zhejiang University and other universities topromote the in-depth integration of cutting-edge knowledge and ?rst-class technology.This project signifies the Company's significant achievement incontinuous technical and knowledge exchange with universitieslike Zhejiang University, deepening the integration of cutting-edgeknowledge and top-tier technology. Initiated by the Company in March2021, the project focused on research for the 12-inch Czochralskihard-axis mono crystal silicon growth furnace, including vibrationelimination at the growth interface, control of micro defects based onV/G theory, and oxygen content control. It achieved breakthroughs inprecise transmission sealing and mechanical stability control of thehard-axis crystal pulling system, precise control of large-size siliconmono crystal growth rate and radial uniformity, and compatibilitybetween diamond-structure transverse superconducting magnetic?elds and hard-axis mono crystal growth furnaces. The project's mainperformance indicators reached an international advanced level,realizing import substitution.
The "12-inch hard-axis mono crystal silicon growth furnace" research project completed, drivingindustry development with industry-academia-research collaborationCase
As a leader in the domestic PV industry, JSG maintains strong cooperation with government agencies, industries, andnon-pro?t organizations, actively demonstrating its role as an industry leader and hidden champion. The Companycontinually participates in setting national, industry, and group standards, showcases its years of accumulatedexperience and expertise in semiconductor materials and equipment technology, and drives high-qualitydevelopment in the industry with its leading R&D innovation capability and top-tier technology level. By the end of2023, the Company led and participated in the establishment of 19 national, industry, and group standards.
Standard Setting
Name Standard Plan No.Standard Type
Terminology for Integrated Circuit (IC) Manufacturing EquipmentGB/T 40577-2021National
High Purity Alumina for Sapphire Mono Crystal20211952-T-469National
Monocrystalline Sapphire BarGB/T 31092-2022NationalMono Crystal Silicon Furnace for PVSJ/T 11854-2022IndustryPositive-pressure Float Zone Crystal Growth FurnaceSJ/T 11853-2022Industry
Standards jointly prepared by the Company (partial)
Name Standard Plan No.Standard Type
Correction Wheel for Wafer Precision Grinding Disc/Industry
Wafer Precision Grinding Disc/IndustryTDR Series Mono Crystal Growth PullerT/ZZB 0044-2021GroupMulticrystalline Silicon Casting FurnaceT/ZZB 0061-2016GroupChemical Vapor Deposition (CVD) Epitaxial Equipment forPreparing Silicon Carbide Semiconductor Materials
T/ZJATA 0017-2023Group
To exemplify the domestic industrial chain's internal circulation and contribute to the sustainable and high-qualitydevelopment of the global PV and semiconductor sectors, JSG seeks long-term cooperation with enterprises in theindustry, creating win-win and sustainable strategic partnerships. In 2023, the Company continued to strengthen itswin-win cooperation model, joined hands with industry leaders to conduct strategic cooperation under the principleof mutual benefit, fully leveraged both parties' resources and advantages, and actively explored and developedinnovative business to contribute to the sustainable development of the new energy industry.
In June 2023, JSG and Western Superconducting TechnologiesCo., Ltd. held a strategic cooperation signing ceremony inXi'an. Western Superconducting is a domestically leadingand internationally advanced innovator and producer ofsuperconducting materials, superconducting magnets, high-end titanium alloys, and high-performance high-temperaturealloys, and has the world's ?rst full-process R&D and productionbase for superconducting ingots, wires, and magnets. Thisstrategic cooperation further strengthens and consolidatesboth parties' technical advantages and competitiveness in theirrespective fields, accelerates the supply of superconductingmagnetic ?elds, continuously drives PV technology innovation,and jointly promotes industrial development.
Strategic cooperation with Western Superconducting to support the development of global newenergy industryCase
Industry Collaboration
As a key participant in the global PV industry, JSG adheres to the development strategy of "advanced materials, advancedequipment", focuses on the domestic production of high-end semiconductor equipment. The Company maintains activecommunication and cooperation with industry peers and actively participates in domestic and international industryexchange activities, shares cutting-edge technological achievements and experiences, aims to collaborate with topdomestic and international industry enterprises in developing high-tech products and provides customers with high-quality solutions, thereby facilitating technological innovation and sustainable development in the industry.
Communication at Home and Abroad
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In June 2023, the Company showcased its core business of semiconductor equipment with the latesttechnology and innovative achievements at SEMICON China 2023 in Shanghai. During the exhibition, theCompany displayed its latest domestic developments, including 8-inch silicon carbide epitaxial furnace, anddemonstrated its technical strength and product level in the field of compound semiconductor substratematerials. This showcased the Company's leading technological strength and product innovation ability,helping to further expand its market domestically and internationally and contribute to the industry'sdevelopment.
In June 2023, the Company presented its PV smart manufacturing solutions and advanced equipment likethe PV low-oxygen mono crystal puller, which leads the industry's latest technology, at the Intersolar Europein Munich, Germany. These solutions provide intelligent management and data-driven decision-making forcustomers, meeting their needs for quality improvement and e?ciency enhancement. This participation wasan important opportunity for the Company to strengthen communication and cooperation with domestic andinternational peers and a key step in the joint development and progress with global PV smart manufacturingtechnology enterprises.
In December 2023, the Company's high-quality 8-inch silicon carbide substrates and 8-inch epitaxial growthequipment made their ?rst international appearance at SEMICON JAPAN 2023 in Tokyo, Japan, attracting manyattending industry experts and customers. This exhibition marked an important step towards the Company'sgoal of becoming a global leader in technology and scale in the semiconductor equipment industry. It alsorepresented a milestone in assisting domestic semiconductor enterprises in entering the global market andintegrating into the global industrial chain.
Exhibition site of the Company at SEMICON China in ShanghaiExhibition site of the Company at Intersolar Europe in Munich, Germany
Exhibition site of the Company at Intersolar Europe in Munich, GermanyExhibition site of the Company at SEMICON JAPAN 2023 in Tokyo, Japan
JSG participated SEMICON China in Shanghai, actively exploring domestic and internationalcooperation to aid industry developmentCase
JSG participated the Intersolar Europe in Munich, Germany, strengthening exchange andcooperation with domestic and international peersCase
Participated in SEMICON JAPAN 2023, promoting domestic semiconductor equipment andmaterials to the global industry giantsCase
7778
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Cultivating Talents for
A Promising Future
Employees are the foundation of the Company's development. JSG?rmly believes that providing a broad platform and opportunities foremployee growth is the Company's social responsibility. JSG alwaysregards talents as the cornerstone of high-quality development,adheres to the values of "working hard, partner accomplishment"and continues its people-oriented management philosophy. Itfocuses on employee rights protection and development, establishescomprehensive training programs and development paths to uncoveremployee potential and enhance their abilities, continuously improvesemployee benefits, offers diversified care, and injects continuousvitality and innovation into the Company's development, promotingemployees to grow together with the Company.
Our Philosophy
Employee Rights and Bene?tsEmployee DevelopmentWelfare and Care
Our Actions
7980
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Talent is the foundation of the Company's substantial development. JSG places great importance on human resourcedevelopment, and strictly adheres to laws and regulations such as the "Labor Law of the People's Republic of China",the "Labor Contract Law of the People's Republic of China", and the "Law of the People's Republic of China on theProtection of Women's Rights and Interests", as well as national employment policies. It efficiently manages anddevelops human resources, ensuring employees enjoy all legal rights and bene?ts, promoting mutual growth of theCompany and its employees.
The Company values talent development, has established a comprehensive talent development managementstrategy, implements strategic talent pool planning, continuously expands recruitment channels to includecampus recruitment, social recruitment, internal referrals, etc., attracting talents from various backgrounds andspecialties to empower the Company's long-term development and technological innovation, and injectinginnovative kinetic energy into the Company's development. Additionally, the Company has formulated policies likethe "Implementation Standard of Internal Referral Bonus for Recruitment of Internally Recommended Positions",established an internal referral mechanism covering nearly 65 positions across 17 business lines, and set up the "BoLe Award" and bonuses, to stimulate employee enthusiasm and improve the Company's talent pool construction.
JSG actively builds harmonious labor relations, adheres to an equal, non-discriminatory employment policy, legallyprohibits child labor, resists forced labor, ensures equal pay for equal work, protects the lawful rights of femaleemployees, and treats employees of different ages, genders, ethnicities, religions, nationalities, disabilities, andcultural backgrounds equally. The Company is committed to creating a diverse, equal, and fair working atmosphereand adopts a zero-tolerance attitude towards any form of discrimination and unfair competition. Moreover, thelabor management system developed by the Company covers not only the entire Company but also suppliers andcontractors, aiming to maintain a healthy order in the labor market.
The Company always adheres to theprinciples of "equality, democracy,openness, and consultation", regularlyconvenes the Workers' Congress to listento and understand employees' needs,and jointly discusses labor management-related matters, to foster a moreharmonious and united corporate culture,and enhance the Company's cohesionand creativity.
JSG highly values democratic communication, establishes and improves a democratic communication mechanism,and opens up diversified channels for democratic communication. This enhances employees' participation inimportant company decisions and management, deepens their understanding of the Company's operations,promotes internal and external information flow, communication coordination, and team collaboration, andachieves sustainable development for both employees and the Company.
As of December 31, 2023, the Company had a total of 7,495 employees, including 304 ethnic minorityemployees and5 disabled employees, with a 100% labor contract signing rate.
Workers' Congress
6,330 male
22.39%
84.45%
15.55%
1.64%
1.59%
65.87%
1,165 female
Distribution of male and female employees
4.65%
28.60%
66.75%
Age structure of research personnel
1,120 sta? aged below 3078 sta? aged above 40480 sta? aged between 30 and 40
21.40%
2.38%
24.43%
Education degree of research personnel
51.79%
869 Bachelor40 PhD410 Master359 Diplomacy and below
Employee Rights and Bene?ts
Compliant Employment
Democratic Communication
4,937 production personnel1,678 R&D personnel123 sales personnel119 ?nancial personnel638 administrative personnel
Sta? position structure
8.51%
Key Performance
8182
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
The Company always prioritizes employee feedback, facilitating an upward feedback mechanism through variouscommunication channels such as regular symposiums, soliciting opinions, and an employee mailbox. The Companyconducts regular employee satisfaction surveys each year, covering aspects like a?nity research and canteen satisfaction.In addition, the Company has established an Employee Shared Service Center, which provides an e?cient communicationand service platform for employees, discloses the contact information of the person in charge of the Center and thecomplaint e-mail address, responds to and solves the problems encountered by employees in a timely, coordinatedand e?cient manner, and publishes the information related to the human capital and the results of the handling on thebulletin board, so as to enhance the sense of belonging and satisfaction of the employees.
Feedback mechanism
JSG's employee service center structure
Employee shared service feedback and complaint mailbox
Service window information publicityWindows of Employee Service Center
Windows of Employee Service CenterEmployee evaluation channelsestablished at service windows
ShangyuHangzhouHohhot
In June 2023, the Company conducted a canteen satisfaction survey focusing on aspects such as balanceportion of vegetables and meat, dining order, and dining environment. The aim was to improve the diningexperience for employees, create a more harmonious working atmosphere, understand employees' needsand opinions, enhance employee satisfaction and work efficiency, and further promote the harmoniousdevelopment of the Company.
Employee evaluation channelsestablished at service windowsEmployee satisfaction survey
Canteen satisfaction survey conducted to strengthen democratic managementCase
Employee Service Center
Employee a?airs Talent servicesAdministrative serviceIT serviceFinancial service
Staff shared service comment and complaint e-mailHRSSC@jsjd.cc
In February 2023, in accordance with the "Trade Union Law of the People's Republic of China" and the"Regulations on Democratic Management of Enterprises in Zhejiang Province" and other regulations, theCompany held the ?rst Workers' Congress of the third session. The main agenda of the Congress was to discussand approve the recommendation list of candidates for the third Trade Union Federation Committee, theFinancial Audit Committee, and the employee representative supervisors, focusing on democratic matterssuch as the "JSG Trade Union Work Report" and the "Funds Audit Report of JSG Trade Union". After discussion,deliberation, and voting at the Workers' Congress, the list of the third session of the Trade Union FederationCommittee, the Financial Audit Committee, and the employee representative supervisors was unanimouslyapproved, continuously improving employee democratic management.
Employee satisfaction surveyThe ?rst Workers' Congress of the third session
Workers' Congress successfully convened to improving the democratic management organizationof employeesCase
8384
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG always cares about the growth of employees, regards employees as the ?rst wealth of the Company, activelyempowers employees, develops their potential, provides broad development space for employees, and helpsemployees realize their self-worth. The Company has established a dual career development channel for technicalexperts and business talent, offered a comprehensive training platform and resources, and supplemented byproject training, skills competitions, and incentive measures. This ensures fair and transparent promotion channels,enhancing the overall quality and professional skills of employees.
JSG creates a fair and market-competitive overall compensation incentive system for all employees and distributescompensation based on the employees' work performance and contribution, which better attracts and retainsoutstanding talents, promotes employees' motivation, stimulates employees' creativity, and enhances theCompany's overall competitiveness. Employee compensation includes fixed salary (job standard salary, positionbusiness allowance) and variable salary (stock incentive, special patent bonus, excellence award). The Company hasimplemented three phases of stock incentive plans and one employee stock ownership plan since 2015, bene?tingover 1,000 participants, e?ectively allowing employees to enjoy deserved rewards and promoting mutual progressbetween employees and the Company.
The cultivation and development of talent are crucial to the Company's strategic achievement and businessdevelopment. JSG has always regarded talent as the cornerstone of its high-quality development, and hasformulated a talent development system that covers all employees, as well as a rich talent training and developmentprogram to explore the potential of its employees, improve their abilities and empower them in all aspects, allowingthem to obtain the career development that is suitable for them, and realizing the individual value of each employee.
Compensation incentive system
Jingsheng Academy is subordinate to the Group's HR Center and is an important part of JSG's talent developmentplatform. The Company has established the "Code of Management for JSG Academy", and clari?ed related responsibilitiesand speci?c steps for educational training. Leveraging the JSG Academy platform, it has created a corporate university-type of continuous vocational training and career pathways for employees, focusing on enhancing the capabilities andskill levels of key personnel. The training adopts methods like competition-based training, simulation-based training,lecture-based learning, examination-driven learning, and integrated training and practice, supplementing and deepeningsome of the weaker links to provide employees with an excellent learning platform.
Jingsheng Academy
In 2023, JSG Academy conducted 54 training sessions, with an average duration of 490 minutes per person.
Organization chart of Jingsheng AcademyTalent Development Committee
HR CenterPresident of Jingsheng Academy
Academic dean
Training specialistInternal training teamExternal training institution
Promotion and salary increaseAnnual salary increase; twice-a-year promotion opportunities.
Stock incentiveCore talent stock incentive plans.
Bonus incentive
Performance bonus, year-end bonus, special bonus (for R&Dpositions), patent bonus, excellence award, and assistance fund.
Employee Development
Compensation Incentives
Employee Training
JSG's training system platform
External Channels
Training system platform
Theme training campOnline course
CoursewareLecturer
CulturalpromotionVideo courseLecturer team
O?cial account of Jingsheng
AcademyNew employee training
CounselingCoursework/project practiceCoursework sharing
Internal training certi?cation
Key Performance
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
To achieve the goal of "Empowering employees, accomplishing the Company" and continuously drive theCompany's development, JSG has formulated the "Code of Management Trainee Camp and Continuous Training" todeploy a talent strategy for the management trainee program. New hires from campus recruitment are selected asmanagement trainees and undergo comprehensive training, including internships, position rotations, and trainingcourses. While enhancing their overall quality and professional skills, the Company focuses on improving the softskills of the management trainees, such as communication, teamwork, and innovation, enabling them to becomehigh-quality talents capable of independently undertaking job responsibilities.
Management trainee program
JSG deeply realizes that under the increasingly prominent talent competition environment, how to attract and identifytalents and how to improve the talent management system and management process have become compulsory coursesfor managers. The Company attaches importance to empowering managers, and has been conducting leadership trainingfor many years to strengthen the leadership and management ability of managers, and to enhance their sense of missionfor the importance of team management, so that they can better retain and lead the outstanding talents, lay the core ofenterprise development, and increase the competitiveness of the enterprise.
Leadership training
In July 2023, the Company launched the JSG 2023 Fresh Graduates Training Camp under the theme "DreamChasing and Future Oriented", with more than 350 fresh graduates from over 60 universities participating. TheCompany leaders from various departments introduced courses such as "Industry and Products", "JSG CulturalFactors", and "College Graduate Role Transition and Career Planning" to new employees, accelerating theirunderstanding of JSG's corporate culture and mastering the basic knowledge related to their positions.
The Management Trainee Induction Training Camp, oriented towards professionalism and driven by capabilityenhancement, balances outcome and process indicators. Within two years, trainees are required to completeat least two professional training camp courses. The Company will arrange graduation defenses based ontheir work performance and capability assessment standards. Management trainees who pass the defense areawarded certi?cates and can o?cially start their careers at JSG.
Starting from March 2023, the company launched a nearly ?ve-month training program for all silicon carbideteam leaders. The training program aims to improve the team leader's knowledge and management ability ofthe products and technological processes at multiple levels and in all aspects. Through the training of teamleaders, the Company cultivates managers and inheritors with corporate culture and technician culture.
JSG started 2023 new employee induction training campCaseOrganized team leader training to improve leadership and management skillsCase
2023 management traineesTeam Leaders Training
Team Leaders TrainingGroup photo of 2023 new employees
Team leader training outcomes
Strengthen the idea of PDCA and improvethe management levelEnhanced performance interview and communication skillsImprove team work planning and task arrangementImproved site 6S management
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
JSG values every employee's outstanding performance and has established a perfect career development system,which has formed a working mechanism and process of evaluating performance as the standard and providingregular performance evaluation and feedback to employees, and provides all employees with performanceevaluation and promotion opportunities twice a year. The Company offers three-sequence mode, allowingemployees to develop towards technical experts and business talents through di?erent sequence. Additionally, theCompany has designed a dual-direction, multi-choice career path for R&D talents, supplemented by project training,competitions, and personality development activities, allowing them to grow together with the Company.
In 2023, JSG held its Sixth Lu Ban Cup Skills Competition with "Hammer" as the theme. The event aimedto foster more "JSG Artisans" through competition-based training and practice, and improve collaborativeinnovation capabilities in R&D, processes, and manufacturing, thus cultivating an engineer culture. TheCompetition involved mixed teams of mechanical engineers, process engineers, programming engineers, andmanufacturing technicians, forming four teams. They demonstrated exquisite skills, an ultimate pursuit ofdetail, and stringent quality requirements, produced finely crafted "Hammers", and showcased exceptionalmanufacturing capabilities and innovative spirit.
Sta? participating in the "Lu Ban Cup" studied carefullyAll participants of "Lu Ban Cup" competition
JSG hosted the Sixth Lu Ban Cup Skills Competition, enhancing the Company's R&D collaborativeinnovation capabilityCase
Development path map of JSG's three-sequence talents
R-sequence R&D classP-sequence production class
M-sequence management
functional class
Project management talentsTechnical talentsManagement talents
Technicalexpert
Businesstalents
Senior engineer
Two-path development path of JSG's R&D personnel
Technical path
EngineerAssistant Engineer
Project leaderIntermediate engineer
Chief engineer
Deputy director
Director
Senior fellowsystem
ProjecttrainingQualityexpansion
PorterCupProjectcompetition
Management path
Career Development
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In September 2023, the Company conducted the 27-kilometer "Youth City · JSG 2023 New Youth EnduranceChallenge". This event marked the ninth consecutive year of the challenge, with over 400 participants,including company executives, R&D directors, and new R&D and management trainees. After more than ?vehours, 21 teams reached the finish line, successfully completing the challenge. The Company, through thisendurance challenge, honed the will and spirit of the new young employees, enhanced team coordination andcooperation, and ingrained the values of "struggle orientation, partner accomplishment" in every employee.
New Youth Endurance Challenge, demonstrating the youthful spirit of JSGCase
In December 2023, the JSG R&D Center hosted the three-day 16th "Porter Cup" competition, themed "Realismand Innovation for Forward Progress", with over 60 mechanical, electrical, materials, and process engineersfrom the R&D Center participating. As an important event in JSG's R&D Center, the "Porter Cup" has been heldfor sixteen consecutive sessions. Through a "competition-based training and practice" approach, it enablesparticipating employees to learn, communicate, and practice, fostering a culture of innovation among R&Dpersonnel, mastering project management concepts and methods, and achieving rapid progress and growth.This enhances the corporate R&D competitive advantage and provides a powerful impetus for the Company'shigh-quality, sustainable development.
Youth City · 9th JSG 2023 New Youth March Challenge"Porter Cup" Competition site
JSG's 16th "Porter Cup" Concluded, enhancing corporate R&D competitive edgeCase
The Company organizes the selection and commendation of outstanding employees, and recommends outstandingemployees to the election of regional model workers, so that the positive work performance and professionalismof employees are fully affirmed by society as a whole, and employees are helped to obtain a sufficient sense ofprofessional satisfaction and achievement. In January 2023, under the theme "Striving for the future, welcomingJSG's 'Core' era", JSG held its second "JSG Artisan Award" ceremony and 2022 Annual Commendation Conference,distributing a total of CNY13.8 million in various awards.
"Porter Cup" Competition site"JSG Artisan Award" conference site and trophy
JSG has fully considered the needs of employees and set up an influential welfare plan to protect the statutorybene?ts that employees should enjoy, and actively provide employees with a series of supplementary bene?ts tomeet the material and spiritual needs of employees for work and life. The Company's welfare plan encompassesbasic statutory benefits, subsidy benefits, holiday benefits, union benefits, learning benefits, social benefits, andfamily bene?ts, covering 100% of employees for both income and non-income-related statutory bene?ts, includingmeal subsidies.
Employee welfare systemBasic welfare
Subsidywelfare
Holidaywelfare
Trade Union
welfare
Learningwelfare
Social welfareFamily welfare· Five socialinsurances andone housingfund Physicalexamination· Physicalexamination· Clothing gift· Sta? canteen· Sta?accommodation·Shuttle bus
· High-temperaturesubsidy· Travellingsubsidy· Tra?c subsidy· Meal subsidy
· Statutoryholiday
· Annual leave· Welfare leave· Holiday giftpackage
· Wedding gift· Birth gift· Trade Union giftpackage· Condolencepayment
· Employeetraining· Workplacesupport
· Fellowship
activity
· Team building
activity
· Internal
procurement
· Gym
· Sports ground
· Settlementassistance· Children'senrollmentassistance
Welfare and Care
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
The Company is committed to providing comprehensive protection for employees, advocating a balance between lifeand work, paying attention to the physical and mental health of employees, actively creating a working environmentthat combines work with leisure, and organizing various health training activities to give everyone the opportunity torelax after work. These e?orts enrich the cultural life of employees, alleviate work pressure, and cultivate a healthylifestyle. Additionally, the Company focuses on the care of female employees and those facing di?culties, o?eringwarm-hearted assistance to these special groups.
| Sta? canteen | Sta? dormitory |
Friendship basketball match
| Friendship basketball match | Bandminton match | Table tennis match | Billiards match | ||||||
In February 2023, to enrich the cultural life of the employees and activate the festive atmosphere, theCompany organized and carried out the "Lantern Festival Celebration" themed activities in the six parks, whichdemonstrated the elegance of JSG's employees and strengthened the cohesion of the employees to create agood corporate culture atmosphere, allowing employees to enjoy a warm, pleasant, and joyful Lantern Festival.Employees participated in making lanterns, guessing lantern riddles, and playing ring toss games, creating afestive and harmonious atmosphere at the event site.
Celebrated the Lantern Festival to enrich the life of employeesCase
In March 8, 2023, the Company organized a variety of colorful festival activities, delivering gifts and happiness tofemale employees, and allowing them experience a di?erent festival. Various parks hosted various interestingactivities and presented female sta? with exquisite gifts such as cakes and roses, adding a touch of color to thefestival, showcasing the Company's care for women, and enhancing employee cohesion.
Activity siteShangyu Material Park: DIY cake and co?ee making
Shangyu Material Park: DIY cake and co?ee makingShangyu Precision Park and Equipment Park:
Carried out tea art and hand-painted canvas bagactivities, and distributed small cakes
Shangyu Precision Park and Equipment Park:
Carried out tea art and hand-painted canvas bagactivities, and distributed small cakesNingxia Jingsheng Industrial Park: DIY aromatherapy
activity
Ningxia Jingsheng Industrial Park: DIY aromatherapy
activityHangzhou Qiushi Park: Distributed movie coupons,cakes, roses and other gifts to female employees, and
played ring toss game.
Hangzhou Qiushi Park: Distributed movie coupons,cakes, roses and other gifts to female employees, and
played ring toss game.Inner Mongolia Park: Conducted courses on beauty and skin care
Women-caring activity in Women's DayCase
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Fulfilling SocialResponsibilities byContributing to the
Society
JSG is always grateful to the society, actively organizes public welfareactivities to repay the society through various practical actions, andpromotes the development of the surrounding communities fromeducation, sports, medical care and other aspects. JSG employeesactively participate in blood donation, make donations to elementaryschools and universities to support talent development, and assist inagricultural support to facilitate the smooth implementation of therural revitalization strategy.
Our Philosophy
Public WelfareRural Revitalization
Our Actions
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Relying on society for development, JSG is grateful to society and actively engages in public welfare activities, suchas sponsoring sports events, donating money to schools, and organizing blood donations, etc. JSG demonstratesits corporate social responsibility and the concept of corporate citizenship, makes positive contributions to theconstruction of a more harmonious and caring social environment, and contributes JSG's power to the promotion ofsocial sharing and sustainable development.
In March 2023, the Company sponsored and participated in the "Welcoming Asian Games · 2023 National HalfMarathon Championship (Shaoxing?Shangyu Station) & the 7th Shaoxing?Shangyu Cao'e River Half Marathon",with a total sponsorship amount of CNY300,000. This sponsorship not only raised health awareness amongemployees and strengthened team cohesion but also promoted local sports development, demonstrated theCompany's sense of social responsibility, and supported local economic growth.
In October 2023, the Company organized a blood donation event in the Shangyu Precision Park, with a total of64 employees actively participating in the blood donation. Over the years, the Company has organized severalblood donation events, with employees conveying a spirit of love and charity to society, contributing to thecontinuation of life. Through this activity, the Company and its employees conveyed positive social values,inspired a sense of social responsibility among employees, and helped build a more harmonious and caringsocial environment.
JSG sponsored the 7th Shaoxing ? Shangyu Cao'e River Half MarathonEmployee's blood donation event
JSG sponsored the Marathon activityCase
JSG organized employee's blood donation eventCase
In May 2023, senior executives of the Company were invited to attend the inauguration ceremony of the newbuilding at the School of Mechanical Engineering of Zhejiang University. During the ceremony, Dr. Cao Jianwei,the Chairman, participated in the unveiling of the building and delivered a speech. The newly donated BuildingNo. 1 was named "JSG Building", symbolizing the shared commitment between academia and industry toenhance self-reliance and strength in technology. It also marks the determination of both sectors to contributeto technological innovation and industrial upgrading.
Employee's blood donation eventJSG Building Plaque
"JSG Building" at the School of Mechanical Engineering of Zhejiang University inauguratedCase
| JSG Building Plaque | Opening ceremony of "JSG Building" |
JSG made several donations to support the development of educationCase
Donation to Bowen Elementary School
Donation to Zhejiang University Education Foundation
The Company donated CNY100,000 to the Bowen Elementary SchoolScholarship to help Bowen Elementary School inspire and cultivatemore outstanding students, and promote educational equity and socialdevelopment.
The Company participated in the donation to Zhejiang UniversityEducation Foundation, totaling CNY7,000,000, to promote thecultivation of talents in universities and help the cultivation of nationalhigh-tech talents.
July 2023
December 2023
Public Welfare
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
In July 2023, the 11th China Transformation Forum — the Forumfor Common Prosperity and High-Quality Development — washeld in Hangzhou, where the conference released the "First Top30 Enterprise Charities in Zhejiang" list. The Company was listedamong the Top 30 for its outstanding performance in promotingeducation development, scholarship donations, disaster reliefe?orts, and rural revitalization, among other public welfare areas.This recognition not only a?rms the Company's charitable e?ortsbut also acknowledges its continuous contributions to publicwelfare. In the future, the Company will continue to upholdthe values of "struggle orientation, partner accomplishment",expressing gratitude to society and continually promoting socialprogress and economic prosperity.
In December 2023, the Company purchased specialty lamb meat from Ningxia and organized the ?fth LambRoast Festival, a traditional cultural event for all employees. This event not only boosted employee jobsatisfaction but also supported rural industry development, contributing to local economic growth andincreased income for farmers in alignment with the rural revitalization strategy.
JSG ranked as one of the First Top 30 Enterprise Charities in ZhejiangCase
JSG held the Fifth Lamb Roast FestivalCase
Enterprises are participants, promoters, and bene?ciaries of rural revitalization. For a long time, JSG has consistentlyleveraged its technical and resource advantages to support rural revitalization efforts, promote rural economicdevelopment, contributing to local economic growth and increased income for farmers in alignment with the ruralrevitalization strategy.
Rural Revitalization
Key Performance
IndicatorUnit202120222023Total number of employeesPeople4,5497,6887,495Total number of R&D personnelPeople1,0151,3541,678Proportion of number of R&D
personnel
%22.3117.6122.39Total R&D investmentCNY10,00035,35879,633114,540As of the end of the reportingperiod, the cumulative number ofpatents of the Company
Pcs512644914As of the end of the reportingperiod, the cumulative number ofinvention patents of the Company
Pcs6681172Number of new patents this yearPcs72141345Number of new invention patents
this year
Pcs91592
Society
IndicatorUnit202120222023
Amount of investment in green
environmental protection
CNY10,0003462,8753,833PV power generation10,000 KWH1483451,038Environment
IndicatorUnit202120222023
Operating incomeCNY10,000596,1361,063,8311,798,319Net profit attributable to parent
company
CNY10,000171,172292,437455,751Total assetCNY10,0001,688,3752,888,9283,680,836Tax payment amount during the
reporting period
CNY10,00091,597150,184165,275
Economy
Lamb Roast FestivalTop 30 Enterprise Charities in Zhejiang
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
Index of Indicators
GRI content indexStatement of used
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd has reportedthe information cited in this GRI content index for the period from
January 1, 2023 to December 31, 2023 with reference to the GRI
Standards.GRI 1 UsedGRI 1: Foundation 2021GRIStandards+A4:C99
DisclosureLocation
GRI 2: General DisclosuresG2-1Organizational detailsAbout This ReportG2-2
Entities included in the organization's
sustainability reporting
About This ReportG2-3Reporting period, frequency and contact pointAbout This ReportG2-6
Activities, value chain and other business
relationships
Company ProfileG2-7EmployeesEmployee Rights and BenefitsG2-8Workers who are not employees
Employee Rights and Benefits、Refer to Annual ReportG2-9Governance structure and compositionCompliance OperationG2-10
Nomination and selection of the highest
governance body
Compliance OperationG2-11Chair of the highest governance bodyRefer to Annual ReportG2-12
Role of the highest governance body inoverseeing the management of impacts
Refer to Annual ReportG2-13
Delegation of responsibility for managing
impacts
Refer to Annual ReportG2-14
"Role of the highest governance bodyin sustainability reporting"
Sustainable Development
ManagementG2-16Communication of critical concernsCompliance OperationG2-17
"Collective knowledge of the highest
governance body"
Compliance OperationG2-18
"Evaluation of the performance of thehighest governance body"
Refer to Annual Report
GRIStandards+A4:C99
DisclosureLocationG2-19Remuneration policiesEmployee Rights and BenefitsG2-20Process to determine remunerationEmployee Rights and BenefitsG2-22Statement on sustainable development strategy
Sustainable Development
ManagementG2-23Policy commitments
Employee Rights and Benefits、Compliance Operation、Environmental Management、Supply Chain ManagementG2-24Embedding policy commitments
Employee Rights and Benefits、Compliance Operation、Environmental Management、Supply Chain ManagementG2-26
Mechanisms for seeking advice and raising
concerns
Business Ethics、Welfare and
CareG2-29Approach to stakeholder engagementStakeholder Communication
GRI 201: Economic PerformanceG201-1Direct economic value generated and distributedKey PerformanceG201-3
Defined benefit plan obligations and other
retirement plans
Employee Rights and BenefitsGRI 202：Indirect Economic PerformanceG203-1
Infrastructure investments and services
supported
Green OperationG203-2Significant indirect economic impactsGreen Operation、Public Welfare
GRI 205: Anti-corruptionG205-1
Operations assessed for risks related to
corruption
Business EthicsG205-3
Confirmed incidents of corruption and actions
taken
Business Ethics，We weren't
involved in such incidents.GRI 206: Anti-competitive BehaviorG206-1
Legal actions for anti-competitive behavior,
anti-trust, and monopoly practices
Business Ethics，We weren't
involved in such incidents.GRI 207: TaxG207-1Approach to taxRefer to Annual ReportG207-2Tax governance, control, and risk managementRefer to Annual Report101102
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
GRIStandards+A4:C99
DisclosureLocationG207-3
Stakeholder engagement and management of
concerns related to tax
Refer to Annual ReportG207-4Country-by-country reportingRefer to Annual Report
GRI 301: MaterialsG301-2Recycled input materials usedGreen OperationG301-3
Reclaimed products and their packaging
materials
Green OperationGRI 302: EnergyG302-1Energy consumption within the organizationGreen OperationG302-2Energy consumption outside of the organizationGreen OperationG302-3Energy intensityGreen OperationG302-4Reduction of energy consumption
Addressing Climate Change、
Green OperationG302-5
Reductions in energy requirements of products
and services
Addressing Climate Change、
Green OperationGRI 303: Water and EffluentsG303-1Interactions with water as a shared resourceGreen OperationG303-2Management of water discharge-related impactsGreen OperationG303-5Water consumptionGreen Operation
GRI 305: EmissionsG305-1Direct (Scope 1) GHG emissions
Addressing Climate Change、
Key PerformanceG305-2Energy indirect (Scope 2) GHG emissions
Addressing Climate Change、
Key PerformanceG305-4GHG emissions intensityAddressing Climate ChangeG305-7
Nitrogen oxides (NOx), sulfur oxides (SOx), and
other significant air emissions
Green OperationGRI 306: WasteG306-1
Waste generation and significant waste-related
impacts
Green OperationG306-2
Management of significant waste-related
impacts
Green Operation
GRIStandards+A4:C99
DisclosureLocationGRI 308: Supplier Environmental AssessmentG308-1
New suppliers that were screened using
environmental criteria
Supply Chain ManagementG308-2
Negative environmental impacts in the supply
chain and actions taken
Supply Chain ManagementGRI 401: EmploymentG401-1New employee hires and employee turnoverKey PerformanceG401-2
Benefits provided to full-time employees that
are not provided to temporary or part-time
employees
Employee Rights and BenefitsGRI 403: Occupational Health and SafetyG403-1
Occupational health and safety management
system
Safe ProductionG403-2
Hazard identification, risk assessment, and
incident investigation
Safe ProductionG403-4
Worker participation, consultation, andcommunication on occupational health and
safety
Safe ProductionG403-5
Worker training on occupational health and
safety
Safe ProductionG403-6Promotion of worker healthSafe ProductionG403-7
Prevention and mitigation of occupationalhealth and safety impacts directly linked by
business relationships
Safe ProductionGRI 404: Training and EducationG404-1Average hours of training per year per employeeEmployee DevelopmentG404-2
Programs for upgrading employee skills and
transition assistance programs
Employee DevelopmentGRI 405: Diversity and Equal OpportunityG405-1Diversity of governance bodies and employeesEmployee Rights and Benefits
GRI 406: Anti-DiscriminationG406-1
Incidents of discrimination and corrective
actions taken
Employee Rights and Benefits，We weren't involved in such
incidents.
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ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.
GRIStandards+A4:C99
DisclosureLocation
GRI 408: Child LaborG408-1
Operations and suppliers at significant risk for
incidents of child labor
Employee Rights and Benefits、Supply Chain Management，
We weren't involved in such
incidents.GRI 409: Forced LaborG409-1
Operations and suppliers at significant risk for
incidents of forced or compulsory labor
Employee Rights and Benefits，We weren't involved in such
incidents.GRI 414: Supplier Social AssessmentG414-1
New suppliers that were screened using social
criteria
Supply Chain ManagementG414-2
Negative social impacts in the supply chain and
actions taken
Supply Chain ManagementGRI 416: Customer Health and SafetyG416-1
Assessment of the health and safety impacts of
product and service categories
Customer ServiceG416-2
Incidents of non-compliance concerning the
health and safety impacts of products and
services
Customer Service，We weren'tinvolved in such incidents.GRI 417: Marketing and LabelingG417-1
Requirements for product and service
information and labeling
Quality ManagementG417-2
Incidents of non-compliance concerning productand service information and labeling
Quality Management，Weweren't involved in such
incidents.GRI 418: Customer PrivacyG418-1
Substantiated complaints concerning breachesof customer privacy and losses of customer data
Customer Service、Privacyand Information Security，We weren't involved in such
incidents.
Dear Reader,Thank you very much for taking time out of your busy schedule to read the 2023 Annual Environmental, Social andGovernance (ESG) Report of Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. In order to provide you and otherstakeholders with more valuable information and e?ectively promote the Company's ability and level of ful?llmentof corporate social responsibility, we sincerely look forward to your comments and suggestions.
1. Choice Questions (please tick in the appropriate box)
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
2. How are the report responses and disclosures to stakeholder concerns?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
3. How do you think JSG is doing in terms of economic responsibility?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
4. How do you think JSG is doing in terms of environmental responsibility?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
5. How do you think JSG is doing in terms of safety management?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
6. How do you think JSG is doing in terms of employee responsibility?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
7. How do you think JSG is doing in terms of community responsibility?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
8. Are the information, indicators and data disclosed in the Report clear, accurate and complete?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
9. Do you ?nd the organization and layout of this Report easy to read?
□ Very Good □ Good □ Medium □ Relative Poor □ Poor
Open-ended QuestionDo you have any comments or suggestions on the ful?llment of social responsibility by JSG and this Report?
Reader Feedback
105106
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) REPORTZhejiang Jingsheng Mechanical & Electrical Co., Ltd.