About This ReportContents
Reference GuidelinesWe prepare this report in accordance with the "GlobalReporting Initiative Standards" (GRI Standards), the"Sustainability Accounting Standards Board Standards"(SASB Standards), and also refer to the "Guidelines No. 1of Shanghai Stock Exchange for Self-Regulation of ListedCompanies - Standardized Operation", "Guidelines No. 14of Shanghai Stock Exchange for Self-Regulation of ListedCompanies-Sustainability Report (Trial)", IFRS SustainabilityDisclosure Standards(ISDS) developed by InternationalSustainability Standards Board(ISSB), and the UnitedNations Sustainable Development Goals (SDGs).
Reporting Scope
The reporting period is between January 1, 2023, andDecember 31, 2023, and some parts of the report are beyondthe scope mentioned above. Unless otherwise speci?ed,the environmental, economic, and social data disclosed inthis report covers all enterprises within the NFLG's scope ofconsolidation.Access to Reportand FeedbackWe released this report in electronic format in both Simpli?edChinese and English. In case of any inconsistencies betweenthe Chinese and English versions, the Chinese version shallprevail. The electronic copies are available on our o?cialwebsite（www.n?g.com）and Shanghai Stock Exchangewebsite（www.sse.com.cn）. If you have any comments orsuggestions on our sustainability performance, please emailus at dong_o?ce@n?g.com.
This is the 2023 Sustainability Report ("this report") releasedby Fujian South Highway Machinery Co., Ltd. ("NFLG" or"We"). This report presents stakeholders with an overview ofNFLG's ESG management e?orts for ?scal year 2023, as wellas the initiatives and achievements towards advancing theUnited Nations Sustainable Development Goals.
Our Overall Solutions for GreenRecycling Building MaterialsOur International Business Layout2023 At a Glance2023 Honors and Awards
Message from the ChairmanAbout NFLG
Data OverviewGRI IndexISDS IndexSASB Index
Appendix
Climate ResponsePollution Control and EcosystemProtectionResource Utilization and CircularEconomy
Environmental
Sustainability-Related GovernanceMechanismsAnti-Commercial Bribery and Anti-UnfairCompetition
Governance
Innovation-Driven Development &Suppliers and ClientsEmployeesRural Revitalization and SocialContribution
Social
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Message from the Chairman
2023 proved to be a year fraught with challenges. The persisting impacts of global climate changecontinued to unleash extreme weather conditions, posing threats to the survival environment of humansocieties. Meanwhile, risks such as slowing economic growth and geopolitical con?icts presentedsigni?cant challenges to the sustainable development of businesses. Amidst this evolving externalenvironment, we remained committed to our core values of "specialization, excellence, quality, andlongevity," and deepened our research and innovation in the ?elds of engineering mixing, materialsprocessing, and construction waste treatment with the development philosophy of innovation,coordination, green, openness and sharing. We embraced low-carbon environmental protection andpursued intelligent development pathways to provide overall solutions for green circular buildingmaterials to our industry clients, while vigorously propelling the sustainable advancement of our ownbusiness and industry ecosystem.We o?er industry clients overall solutions for green recycling building materials that are safer,environmentally friendly, e?cient, and intelligent, jointly building a sustainable developmentecosystem for the industry chain.
In the past year, we anchored ourselves in aggregate processing and actively pursued technologicalresearch in crushing, screening, shaping, sand production, and construction waste management.We provided the sand and gravel industry with smarter, eco-friendly machinery for producing sand,o?ering users overall solutions spanning the entire building materials sector, from raw materials towaste treatment, fostering the low-carbon, eco-friendly, and high-quality development of the sand andgravel aggregate industry together. We continued to drive forward our digitalization and intelligencetransformation, actively forging new models for engineering IoT of digital intelligence and property-basedservice operations management. Through synergistic empowerment, we formulated a holistic "hardware-software services" solution layout. During this year, we pioneered arti?cial intelligence technologies suchas slump detection, AI-assisted unloading, and recycling of discarded concrete, which were applied tothe concrete mixing process, resulting in a signi?cant reduction in carbon emissions during production.Furthermore, we established a carbon-negative laboratory to research and apply various producttechnologies aimed at boosting the development of energy-saving and carbon-reducing technologies,striving to provide more e?cient and environmentally friendly solutions for the industry's green and low-carbon transformation.
We have established harmonious and friendly relationships with the local communities andindigenous peoples, shouldering corporate social responsibility to achieve mutual prosperity andsymbiosis between our business and the local communities.
In the past year, we continued to optimize communication mechanisms with the local community,actively listening to their needs and fostering harmonious community relations. We emphasized on localcommunity education and children's welfare, and donated 110,000 RMB to the Haicheng Experimental
Kindergarten in Fengze District, Quanzhou City, for minor repairs and upgrades to safety facilities. Weconsistently rewarded outstanding educators in local schools through the "NFLG Education Fund,"encouraging their ongoing e?orts to nurture more talents for society. We remained committed tolocal employment and procurement, alleviating local employment pressures and supporting thedevelopment of local businesses. We reciprocated and contributed to the local community throughreal actions, supporting its economic, educational, and cultural development.
We adhere to a people-centered approach, endeavoring to forge an open, inclusive, and secureprofessional development platform for our employees, enabling talent to serve as the inherentdriving force propelling the enduring growth of our enterprise.
In the past year, we persisted in reinforcing human rights risk management. We provided ouremployees with clear career development pathways by constructing a comprehensive and multi-levelemployee training and development system. We re?ned performance evaluations and promotionmechanisms to attract, retain, and cultivate top talent, inspiring our employees to collaborate with thecompany in continuously creating new value.Moving forward, we will remain steadfast on our strategic orientation of product-service integration,digitalization, intelligence, environmental sustainability, and internationalization, forging ahead on thepath towards becoming a leader with overall solutions for green recycling building materials. We arededicated to integrating the principles of sustainable development with our business expansion. Witha heightened sense of social responsibility, we will collaborate with industry partners and stakeholdersto tirelessly work towards achieving the Sustainable Development Goals of human society.
Message from the Chairman
About NFLG EnvironmentalSocialGovernanceAppendix
The chairman of NFLG
2023 Sustainability Report
MixingEquipment
AggregateResourceRecycling and
ProcessingEquipment
About NFLG
NFLG (Stock Code: 603280.SH), established in 1997, hasbeen deeply engaged in the ?eld of engineering mixingfor over 25 years. Based on insights and expertise in theconstruction sand and gravel aggregate industry, wehave gradually formed a complete industry chain andmulti-level product system covering "primary aggregateprocessing, engineering mixing, and aggregate resourcerecycling and processing." We integrate customizeddesign, research and development, production, andsales, and conduct business including quarry crushingand screening, aggregate processing, constructionand road material mixing, and construction wasteresource recycling. Creatively, we provide the marketwith integrated solutions for green recycling buildingmaterials, addressing customers' procurement needsfor a full range of green building material equipmentwith one-stop service.
Our Overall Solutions for GreenRecycling Building MaterialsOur products include equipment for primary aggregateprocessing, engineering mixing, and aggregate resourcerecycling, which are widely used in downstream marketssuch as construction, roads, bridges, tunnels, waterconservancy, and real estate development. Leveragingour solid technological research and developmentadvantages, robust professional distribution network,strong brand reputation, stable product quality, andcomprehensive integrated services, we have become aprovider of overall solutions for green recycling buildingmaterials. We are committed to assisting customersin establishing a virtuous circular ecosystem for theproduction and recycling of construction materials.
Aggregate Shaping and SandMaking Equipment
Concrete Mixing Equipment
Sludge Washing Processing Line
Tracked Mobile Crusherand Screen
Asphalt Mixing Equipment
Renovation Waste Processing Line
Stationary Crusher
Dry Mortar Mixing Equipment
Mobile Demolition WasteProcessing Line
0403
AggregateTreatmentEquipment
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About NFLG EnvironmentalSocialGovernanceAppendix
2023 Sustainability Report
NFLG Global Sales Network Distribution
NFLG National SalesNetwork Distribution
Our International Business LayoutWe have established production bases in Quanzhou, Fujian, andXiantao, Hubei. Our products and services primarily target thedomestic market while actively exploring international markets,including countries and regions such as Russia, Southeast Asia,and Australia. We provide services to well-known domesticand international enterprises such as China Railway GroupLimited, China Guangdong Nuclear Power Group Co., Ltd., ChinaCommunications Construction Group, Beijing ConstructionEngineering Group Co., Ltd., Nippon Paint, SikaDavco, and Quick-Mix.
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2023 Sustainability Report
EnvironmentalSocialSocialEconomic
Total asset
2,016.89million RMBOperating revenue1,140.95million RMBOperating cost
848.87
million RMBNet pro?t attributableto shareholders of the parentcompany
120.42
million RMB
Total social contributions
253.73
million RMBIncluding: Tax payment
39.04
million RMBEmployee compensation
184.09
million RMBDividends paid to shareholders
34.69
million RMBSocial donations
0.34
million RMBMinus government subsidies received
4.43
million RMBSocial contribution per share
2.34
RMB
Research and Development input
73.46
million RMBOccupational fatalities
personsWork safety input
4.22
million RMBTotal training hours of occupationalhealth and safety13,420
hoursNumber of emergency drills
timesTotal number of employees1,234personsTotal employee training input
0.51
million RMBTotal employee training hours
30,235.50hours
Total environmental protection input
1.44
million RMBGHG emissions4,357.48tCO
eGHG emission intensity
381.92
tCO
e/hundred-million RMB of operating revenueEnergy consumption intensity
92.65
tons of coal equivalent/ hundred-million RMB ofoperating revenueWater resources consumption intensity1,247.93
m?/ hundred-million RMB of operating revenue
The total training hours for employees in 2023 only include theemployee training organized by the company's Human ResourcesDepartment and Safety and Environmental Department.
2023 At a Glance
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2023 Sustainability Report
1009
2023 Honors and Awards
26th place on "World Top 100(PLUS 50)Construction Machinery Manufacturer"awarded by T50 Summit of World ConstructionMachinery Industry and China Construction
Machinery Magazine
“2023 In?uential Brands in the Ready-mixed Mortar
Industry” awarded by China Building Materials Federation Ready-
mixed Mortar Branch
"2023Outstanding Equipment Suppliers in the
Aggregates Industry"
awarded by China Aggregates Association
"2023 Innovative Enterprises in the Aggregates Industry"
awarded by China Aggregates Association
"Outstanding Equipment Supplier in theAggregates Industry 2023"awarded by China Aggregates Net
"The 2023 Municipal-Level IndustrialLeading Enterprises in Quanzhou"awarded by Industry and InformationTechnology of Quanzhou City
"2023 Model Enterprises of the Aggregates Industry
for the 'Belt and Road' Initiative"
awarded by China Aggregates Association
"2023 Outstanding Enterprises in the Aggregates Industry"
awarded by China Aggregates Association
"Innovative Enterprise in theAggregates Industry 2023"awarded by China Aggregates Net
“2023 Benchmark Enterprise for Work Safety
Standardization in Fengze District”awarded by the Fengze District Work Safety Committee of
Quanzhou City
51st place on the list of “Top 100 PrivateEnterprises in Quanzhou for 2023”issued by the Quanzhou Investment
Promotion Bureau
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About NFLG EnvironmentalSocialGovernanceAppendix
2023 Sustainability Report
Environmental
Climate ResponsePollution Control and Ecosystem ProtectionResource Utilization and Circular Economy
气候行动
水下生物
陆地生物
经济通用的清洁能源
清洁饮水和卫生设施
可持续城市和社区
产业、创新和基础设施
2023 Management Goals for Environmental Issues
Completion of annual inventory of GHG emissions (Scope 1 and Scope 2)
Gradual reduction of non-renewable energy consumption and increase in the proportion of renewable energy usage
Innovative development of more green products and services to help industry clients e?ectively reduce carbonemissions
Achievement of 100% compliance in pollutant emissions (wastewater, exhaust gas, noise, waste)
100% implementation rate of environmental“Three simultaneous”practices(safety facilities shall be designedsimultaneously, constructed simultaneously, and put into operation simultaneously with the main building)
Advocacy for water conservation to reduce water resource waste
100% compliant disposal rate of hazardous waste according to regulations
100% recti?cation rate of environmental hazards
100% e?ectiveness rate of environmental facilities
Increase in the quantity of products for recycling construction waste resources compared to the same period lastyear
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ClimateResponseClimate change has emerged as a severeglobal challenge. We proactively respondto the national carbon peaking and netzero goals, as well as the temperaturecontrol objectives outlined in the ParisAgreement. We gradually integrate low-carbon transformation with our corporatedevelopment strategy, earnestly embracingour responsibility in addressing climatechange. Guided by the principles ofinnovation, coordination, green, openness,and sharing, we advocate for green,low-carbon, circular, and sustainableproduction methods. We strive tominimize the adverse environmentalimpacts of our business operations byenhancing our green manufacturingand management capabilities of digitalintelligence. We promote sustainableresource utilization and circular economythrough technological innovation, aimingto develop overall solutions for greenrecycling building materials. We partnerwith stakeholders across the industrychain to accelerate the development ofnew quality productive forces and achievesustainable industrial development.
We focus on the development trends of intelligence,environmental protection, energy conservation, andrecycling in the construction machinery industry,with a strategic positioning of integrated productservices, digitization, intelligence, environmentalfriendliness, and internationalization. We aremarket-oriented, with technological innovationas our core competitiveness. We persist in R&Dand manufacturing in the fields of engineeringmixing, material processing, and constructionwaste treatment. We plan ahead for the future keydevelopment directions such as construction wasterecycling, intelligent unmanned mixing industrialparks, high-quality asphalt mixture production,and efficient and environmentally friendly materialhandling, to satisfy the industry's demand forproduct intelligence and environmental protectionwhile enhancing our design and manufacturingcapabilities through the construction of a big dataplatform of industrial Internet of Things. We arecommitted to becoming a leader in the overallsolutions for green recycling building materials.
Respond to the national dual-carbon strategy, conduct greenhouse gas inventoryfor the year 2023 according to the ISO14064 standard, and continuously promotedecarbonization both the company’s own operations and the industry chain.Integrate the green and low-carbon concept into various aspects of productionand operations, implement a series of measures such as technological innovationand digitization to achieve energy conservation and emission reduction withinthe company’s own operations, while also providing green and low-carbontransformation solutions for the industry to promote sustainable development.Emphasize water resource conservation and improve water resource utilizationthrough measures such as water recycling, employing water-saving facilities, andpromoting water conservation.Follow the requirements of the Environmental Protection Law of the People'sRepublic of China, the Environmental Impact Assessment Law of the People'sRepublic of China, and other relevant laws and regulations, strive to reduce thenegative impact of emissions of waste gases, wastewater, solid waste, and noisepollutants on the environment, and continuously optimize and enhance theenvironmental management level in the production and manufacturing process.Prioritize biodiversity conservation, avoiding business activities in nature reserves,ecologically sensitive, and fragile areas. Conduct environmental assessmentsand soil monitoring before constructing new project sites or production lines tominimize adverse impacts on local biodiversity and ecological environment duringbusiness operations.Offer society diverse solutions for the recycling of construction waste, incorporatea resource-saving, intensive, and cyclical utilization perspective into thecompany's development strategy, and promote sustainable and circular utilizationof resources in the course of business operations.
Environmental
气候行动
水下生物
陆地生物
经济通用的清洁能源
清洁饮水和卫生设施
负责任消费和生产
产业、创新和基础设施
To promote the deep integration of sustainabledevelopment concepts with the company'sdevelopment strategy, we take the UnitedNations' 17 Sustainable Development Goals(SDGs) as a guide, forming a framework forcorporate sustainable development.
Corporate MissionFocus on customer needs andchallenges, deliver optimal value tocustomers, and aspire to becomea worldwide leader in providingoverall solutions for green recycling
materials
Corporate Vision
Become a world-classenterprise trusted bycustomers, respected bypeers, with unique capabilityfor sustainable innovationCorporate Core ValuesContinuous Innovationfor Specialization and
Excellence
Corporate Strategy
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2023
Continuously invest in research and development innovation, enhance the researchsystem, intensify efforts in technical development and independent innovation,benchmark against international leading technologies, actively engage in industry-university-research cooperation and international collaboration, and continue toimprove the company's independent innovation capability.Practice responsible sourcing principles, consistently improve responsible supplychain management systems, establish a Supplier Code of Conduct to regulatesupplier behavior, provide guidance and training for suppliers and dealers, workhand in hand with industry partners to seek sustainable development, and promotethe construction of responsible supply chains.Establish a comprehensive quality management system for the entire productlifecycle, center around customers, empower services with technology, and fullyensure customer rights.Standardize company information security management, continuously improveinformation security management mechanisms, enhance information securitymanagement levels, and effectively protect customer privacy.Set up the Mixing Institute to provide personalized training programs for dealersand customers, continuously cultivate practical and skilled talents for high-qualityand sustainable development in the industry.Respect the requirements regarding human rights protection in the "UniversalDeclaration of Human Rights," "UN Guiding Principles on Business and HumanRights," "Universal Declaration of Human Rights," "OECD Guidelines forMultinational Enterprises," and "The Convention on the Elimination of All Forms ofDiscrimination against Women." Eliminate all forms of discrimination, harassment,and violence to provide all employees with a fair and harmonious workingenvironment.Value talent cultivation and development, provide employees with competitivecompensation and benefits, as well as ample career development opportunities.Safeguard the basic rights of employees and demonstrate care through real actions.Establish long-term incentive mechanisms to share the achievements of enterprisedevelopment with employees.Attach great importance to the occupational health and safety of employees,distributors, and installation service providers. Keep improving occupational healthand safety management to ensure the health and safety of all employees andfulfilling corporate responsibility for work safety.Respect the customs and culture of the local community, prioritize communicationwith the community, establish friendly communication mechanisms with localresidents and government departments, actively listen to the community's demands,and minimize the negative impact of company production and operation activities onthe living environment of local residents to the greatest extent possible.
SocialSocial
Adhere to stable industrial development to promote employment, continuouslydeepen local employment policies, provide employment and trainingopportunities for local residents during the company's development process,alleviate local employment pressure, contribute to the revitalization of rural areasthrough practical actions to support the rural revitalization strategy.Focus on social welfare, encourage employees to participate in volunteeractivities, contribute to building a harmonious society, and pay close attentionto the growth of children and teenagers in the local community. Support thedevelopment of children's education in the community by providing educationfunds, improving educational facilities, and other means.
Integrate sustainable development principles into corporate management,continuously improve the scientific and efficient governance system, and improveESG management levels.Establish diverse communication channels to maintain close communicationand exchange with stakeholders, and incorporate stakeholders' expectations andsuggestions into the company's sustainable development governance.Implement a risk-oriented internal control system, continuously improveinternal control systems and processes, strengthen risk control at key points,implement internal control supervision and inspection, effectively prevent varioussignificant operational risks, and enhance the company's resilience to sustainabledevelopment risks and opportunities.Adhere to principles of compliance, fairness, and integrity, conduct businessactivities with high ethical standards, and advocate for and maintain anenvironment of integrity, fairness, and freedom in business.Comply with laws and regulations related to anti-corruption and anti-bribery,firmly oppose any form of corruption or bribery, establish an Anti-Corruptionand Anti-Bribery Policy, and implement corresponding management measures toprevent corruption and bribery risks.Construct an intellectual property rights management system to manage andcontrol all aspects of intellectual property acquisition, maintenance, utilization,and protection, effectively protecting the company's intellectual property rights.Overserve all relevant tax laws and regulations applicable to the business'slocation, uphold principles of legal and compliant tax practices, integrity, andtransparency, fulfill tax obligations in accordance with the law, and strengthen taxrisk management.
Governance
促进目标实现的伙伴关系
和平、正义与强大机构
无贫穷
零饥饿
优质教育
减少不平等
良好健康与福祉
性别平等
体面工作和经济增长
负责任消费和生产
促进目标实现的伙伴关系
产业、创新和基础设施
可持续城市和社区
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About NFLG EnvironmentalSocialGovernanceAppendix
According to the requirements of the IFRS S2Climate-related Disclosures issued by InternationalSustainability Standards Board (ISSB), wehave incorporated sustainability-related riskmanagement into our comprehensive enterpriserisk management system. In assessing short-term, medium-term, and long-term sustainabledevelopment risks, we have utilized scenariomodels proposed by the Intergovernmental Panelon Climate Change (IPCC) to identify and evaluatethe company's physical risks in the near, medium,and long term. We have also referenced scenariomodels from the International Energy Agency(IEA) to identify and evaluate transition risks andopportunities the company may face in the short,medium, and long term. Based on the identificationand evaluation results, we have developedcorresponding risk response and strategicadjustments to enhance our strategic resilienceto sustainability-related risks and strengthen ourcapacity for sustainable development.
We selected the very low GHG emissions scenario(SSP1-1.9) from the IPCC's five scenarios underShared Socioeconomic Pathways. In this scenario,it is assumed that global greenhouse gas emissionswill peak around 2030 and then gradually decline,reaching net-zero emissions by 2050. Compared to1850–1900, global surface temperature averagedover 2081–2100 is very likely to be higher by
1.0°C to 1.8°C under the very low GHG emissions
scenario (SSP1-1.9), the likely global mean sea levelrise is 0.28–0.55 meters, and the average annualglobal land precipitation is projected to increase by0–5%. We also chose the very high GHG emissionsscenario (SSP5-8.5), which assuming that globalgreenhouse gas emissions will continue to increaseby the end of the 21st century. Relative to 1995-2014, global surface temperature is very likely tobe higher by 3.3°C to 5.7°C by 2100 under thevery high GHG emissions scenario (SSP5-8.5), thelikely global mean sea level rise is 0.63-1.01 meters,and the average annual global land precipitationis projected to increase by 1-13%(likely ranges).We thereby conducted short, medium, and longterm assessment of the physical risks and climatedisaster risks to our business development.
Sustainable DevelopmentRisk Management
Physical Risks
Climate Disaster Risks
CurrentStatus
20302050SSP1-1.9SSP5-8.5SSP1-1.9SSP5-8.5Floods and TyphoonsThe strong winds and heavy rainfallbrought by typhoons, as well as the?ooding caused by ?oods, may lead tointerruptions in transportation systems,a?ecting the supply chain of raw materialsand products, resulting in transportationdelays or interruptions, impactingproduction and delivery. This could causeinterruptions to business operations, withthe company's equipment, buildings,and inventory potentially being damagedby natural disasters such as ?oods andwindstorms, requiring time and resourcesfor recovery and repair. It may alsopose a threat to the health and safety ofemployees.Sea Level RiseThe company's equipment, buildings,and inventory may be at risk of ?oodingor depreciation, which could lead tointerruptions in transportation systems,adversely a?ecting the procurement ofraw materials and the transportation ofproducts, thereby impacting productionschedules and delivery capabilities.Extreme HeatCould result in overheating of machineryand equipment in production facilities,potentially causing them to malfunctionor cease operation, thereby impactingproduction e?ciency. Additionally,extreme heat poses a threat to thehealth and safety of employees. Elevatedtemperatures in the work environment canlead to heat exhaustion, fatigue, and otherhealth issues, reducing employees' worke?ciency and quality.DroughtsPotential increase of operational costsfor businesses, requiring additionalinvestment to acquire water resources tomitigate the impacts of water stress anddrought on business operations, suchas the construction of water treatmentfacilities. This may result in inadequatesupply of water resources for bothproduction and domestic purposes duringbusiness operations.Biodiversity Loss and HabitatDisplacementMay encounter habitat displacement,as well as associated disruptions tofreshwater, terrestrial, and marineecosystems that rely on human systems.
Extreme Low Impact
Low Impact
Medium Impact
High Impact
Extreme High Impact
Physical Risk Assessment
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About NFLG EnvironmentalSocialGovernanceAppendix
Physical Risk Management
Transition Risk Management
Physical Risks
ImpactPeriod
Response
Floods and TyphoonsThe strong winds and heavy rainfall brought by typhoons,as well as the ?ooding caused by ?oods, may lead tointerruptions in transportation systems, a?ecting thesupply chain of raw materials and products, resulting intransportation delays or interruptions, impacting productionand delivery. This could cause interruptions to businessoperations, with the company's equipment, buildings, andinventory potentially being damaged by natural disasters suchas ?oods and windstorms, requiring time and resources forrecovery and repair. It may also pose a threat to the health andsafety of employees.
Near, Medium,and Long Term
?Establish a robust emergency managementmechanism, develop emergency plans, and takeappropriate measures according to di?erentlevels of alerts.?Conduct regular emergency drills to enhance theability to respond to ?oods and typhoons.?Implement reinforcement and protectionmeasures for critical equipment and buildings toensure that company assets can withstand theimpact of super typhoons.
Sea Level RiseThe company's equipment, buildings, and inventory maybe at risk of ?ooding or depreciation, which could lead tointerruptions in transportation systems, adversely a?ectingthe procurement of raw materials and the transportationof products, thereby impacting production schedules anddelivery capabilities.
Medium andLong Term
?Monitor meteorological and oceanic changesreported by the government to promptly adjustresponse strategies. Diversify the supply chain,reduce reliance on a single supplier, and mitigatesupply chain risks associated with rising sealevels.?Implement protective measures such asreinforcing levees, constructing ?oodgates, andupgrading drainage systems for existing facilities.Regularly inspect and maintain these facilities toensure their proper functioning.?Prudently evaluate the feasibility of initiating newinvestment projects in low-lying areas or regionssusceptible to the impact of rising sea levels.Extreme HeatCould result in overheating of machinery and equipment inproduction facilities, potentially causing them to malfunctionor cease operation, thereby impacting production e?ciency.Additionally, extreme heat poses a threat to the health andsafety of employees. Elevated temperatures in the workenvironment can lead to heat exhaustion, fatigue, and otherhealth issues, reducing employees' work e?ciency andquality.
Near, Medium,and Long Term
?Monitor temperature conditions and provideemployees with health and safety protectionmeasures for working in high-temperatureenvironments.?Upgrade equipment with heat-resistant materialsto enhance heat resistance and conduct regularmaintenance to proactively address the risk ofextreme high temperatures.DroughtsPotential increase of operational costs for businesses,requiring additional investment to acquire water resources tomitigate the impacts of water stress and drought on businessoperations, such as the construction of water treatmentfacilities. This may result in inadequate supply of waterresources for both production and domestic purposes duringbusiness operations.
Near, Medium,and Long Term
?Advocate water conservation principles, promotewater-saving appliances, and reduce waterconsumption.?Regularly assess water resource risks and developcorresponding response measures, includingestablishing emergency water reserves andformulating emergency plans.Biodiversity Loss and Habitat DisplacementMay encounter habitat displacement, as well as associateddisruptions to freshwater, terrestrial, and marine ecosystemsthat rely on human systems.
Medium andLong Term
?Conduct environmental impact assessmentsbefore the construction, renovation, or expansionof factory areas or production lines.?Restore and compensate for a?ected ecosystems.
With reference to the IEA'S scenario model, we selectedthe Net Zero Emissions by 2050 (NZE) Scenario, wherethe global energy-related CO
emissions are expectedto reach net zero by 2050, o?ering the world a chanceto limit the global temperature rise to 1.5 °C. We alsochoose the Stated Policies Scenario (STEPS), whichconsiders only speci?c policies already enacted orannounced by governments, and annual CO
emissionsfrom energy-related and industrial processes areprojected to increase from 34 gigatons in 2020 to 36gigatons in 2030, and remain at approximately thesame level until 2050. If emissions continue along thistrajectory and non-energy-related greenhouse gas
Transition Risks
emissions follow a similar trend, the global temperatureis estimated to rise by around 2.7°C by 2100 (witha 50% probability). By 2050, the share of renewableenergy in global electricity generation is projected toapproach 55%. Over the period from 2020 to 2050,global coal consumption is expected to decreaseby 15%, oil consumption to increase by 15%, andnatural gas consumption to increase by nearly 50%.We conducted short-term, medium-term, and long-term identi?cation and assessment of the transitionrisks to our supply chain operations and real estatebusiness, and developed and continuously improveresponse measures and strategies for business modeltransformation.
Transition Risks
ImpactPeriod
ResponseMacroeconomic?uctuations and policyadjustments
Near, Medium,and Long Term
?Continuously deepen the construction of a multi-level product system along theentire aggregate industry chain, focusing on strategic positioning around product-service integration, digitalization, intelligence, environmental protection, andinternationalization.?Actively develop overseas markets and accelerate international layout to deepen andimprove the global business system.Policy and regulatorypressures related to GHG
emissions
Near, Medium,and Long Term
?Integrate green and low-carbon concepts into production and operations, conductcarbon inventory to understand and grasp the GHG emissions at various stages of thecompany's production and operation processes.?Through technological research and development innovation, process equipmenttransformation, and the implementation of a series of energy-saving and emission-reduction measures such as intelligentization and digitalization, improve the e?ciency ofresource and energy use, and facilitate the formation of new quality productive forces.Demand forproduct researchand technological
innovation
Near, Medium,and Long Term
?Intensify e?orts in technology development and independent innovation. Upgradeand expand the research and development center on the basis of existing technologyand R&D resources, introduce advanced software and hardware equipment, andenhance the capability of transforming technological achievements and e?ciency inproduct development.
?Proactively learn from advanced technologies abroad, collaborate with leadingresearch institutions and universities at home and abroad in industry-university-research cooperation, and grasp market demand and technological developmenttrends. Explore research and development and forward-looking strategies in keyand emerging application ?elds such as construction waste resource utilization, toenhance new product development capabilities and technological competitiveness.
Shifts in marketpreferences andintensi?ed competition
Near, Medium,and Long Term
?Leveraging current product portfolio, strategically position in key future growth areassuch as integrated utilization of construction solid waste, environmentally friendlyintelligent mixing plants, smart dry mortar production lines, and integrated productionequipment for machine-mixed sand mortar. Continue to reinforce the ability toprovide customers with integrated overall solutions and strengthen competitive edge.
?Continue to advance the construction of the product marketing and after-sales servicenetworks, aiming to elevate service standards and capabilities, strengthen marketcompetitiveness, and ful?ll the evolving needs of the market.?Diligently explore international markets, intensify marketing e?orts for overseas sales,and strive to expand into new regional markets, thereby broadening the geographicalcoverage of business operations.Pressure on corporate
reputation
Medium and
Long Term
?Guided by the United Nations' 17 Sustainable Development Goals (SDGs) to shapecorporate sustainability framework, fostering a responsible corporate citizen image.?Vigorously engage in stakeholder communication to address the management andpractice related to stakeholders' concerns. Organize business activities in accordancewith high standards of business ethics requirements, actively practicing corporateenvironmental and social responsibilities.
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About NFLG EnvironmentalSocialGovernanceAppendix
We conducted an organizational carbon inventory for the year 2023 in accordance with the ISO 14064-1:2018standard. This enabled us to assess our GHG emissions profile, providing the necessary data foundation forformulating and implementing emission reduction plans.
GHG Emissions Management
During the reporting period, our GHG emissions totaled4,357.48 tCO
e, with a GHG emission intensity of 381.92tCO
e/hundred-million RMB of revenue. Speci?cally,direct GHG emissions (Scope 1) accounted for 579.84tCO
e, representing 13% of the total emissions, whileindirect GHG emissions (Scope 2) amounted to 3,777.64tCO
e, constituting 87% of the total emissions.
GHG Emissions
Further increase of our production capacity in 2023,theconsumption of gasoline and diesel increased comparedto 2022, resulting in a rise in direct GHG emissions(Scope 1) by 154.70 tCO
e. Additionally, the purchase ofexternal electricity increased compared to 2022, leadingto an increase in energy indirect GHG emissions (Scope
2) by 288.59 tCO
e. Overall, GHG emissions increased by
443.29 tCO
e compared to 2022.
GHG EmissionsGHG Emissions
●Scope 1（tCO
e）
●Scope 2（tCO
e）
●GHG Emissions Intensity(tCO
e/hundred-millionRMB of operating revenue)
Category20232022
Scope 1：DirectEmissions（tCO
e）
579.84425.14
Scope 2：IndirectEmissions（tCO
e）
3,777.643,489.04Total Emissions（tCO
e）4,357.483,914.18GHG EmissionsIntensity(tCO
e/hundred-million RMB ofoperating revenue
381.92321.56
GHGCategory
De?nition
Primary GHG Emission
Activities
Scope 1
Direct GHG emissions refer to the emissions of greenhouse gasesgenerated directly by an organization, including emissions from thecombustion of fossil fuels and emissions generated during industrialprocesses. This includes stationary combustion emissions, mobilecombustion emissions, process emissions, and fugitive emissions.
? Natural gas stoves? Diesel generators? Gasoline ?eet vehicles? Diesel forklifts and other on-site motor vehicles? CO
Gas metal arc weldingScope 2
Indirect energy-related GHG emissions refer to the emissions ofgreenhouse gases generated from the energy consumed by anorganization, such as electricity and heat, which includes purchasedelectricity, purchased steam, etc.
? Electricity for production? Electricity for o?ce use
Activity Boundary
Organizational BoundaryThe entities with financial and operational control authority.
GHG TypesThe greenhouse gases include carbon dioxide(CO
), methane (CH
), nitrous oxide (N
O),hydrofluorocarbons (HFCs), perfluorocarbons(PFCs), sulfur hexafluoride (SF
), and nitrogentrifluoride (NF
).
Global Warming PotentialsWe used the Global Warming Potentials (GWP)for greenhouse gases(GHG) provided by theIntergovernmental Panel on Climate Change (IPCC) SixthAssessment Report.
0.000
2,000.00
500.00
20232022
2,500.00
1,000.00
3,000.00
1,500.00
3,500.00
4,000.00450
425.14
579.84
3,489.04
321.56
381.92
3,777.64Unit：tCO
eUnit：tCO
e/ hundred-million RMB
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Energy Conservation Management
Action for GHG EmissionReduction
We have established the "Energy ConservationManagement Regulations" and the "EnergyMeasurement Management System," and set up anenergy management team to comprehensively overseeenergy management. We aim to strengthen e?ectivemanagement and control of energy consumptionin production and daily life, continuously improveenergy utilization e?ciency, reduce per unit energyconsumption, and sustainably optimize energystructure. Within our management system, the internalaudit team and the 6S team are responsible for energymanagement. They conduct periodic inspectionsof energy-saving implementation and carry outassessments. At least one inspection is conductedweekly, and inspection results are promptly reported.Any violations or inadequate supervision are addressedaccording to relevant regulations, with individualsresponsible for recti?cation. Each production workshopis responsible for managing reasonable energy use in itsarea and supervising the e?ectiveness of energy use inproduction teams. Production and auxiliary teams areresponsible for implementing reasonable energy use intheir respective areas, promptly reporting any issues.
During the reporting period, our comprehensive energyconsumption was approximately 1,057.05 tons ofcoal equivalent. Looking at the energy consumptionstructure, electricity accounted for the highestproportion, approximately 77.01%. Regarding GHGemissions from energy consumption, emisssions
We embed the green and low-carbon philosophy intoevery facet of our production and operations. Wepromote technological innovation, implement a seriesof energy-saving and emission-reduction measuressuch as intelligence and digitization to advancesustainable resource utilization and recycling. Whileachieving our own GHG emissions reduction, we alsoprovide green and low-carbon transformation solutionsfor the industry to address the transition risks of climatechange, thereby achieving sustainable development."Energy ConsumptionEnergy Type20232022
Comprehensiveenergy consumptionin 2023 (tons of coalequivalent)
Comprehensiveenergy consumptionin 2022 (tons of coalequivalent)
Energy consumptionproportion in 2023Electricity (kWh)6,623,950.616,117,910.00814.08751.8977.01%Natural Gas（m?）70,931.0075,327.0094.34100.188.93%Diesel（L）95,917.6259,434.00120.1974.4811.37%Gasoline（L）26,473.6120,200.0028.4421.702.69%Total//1,057.05948.25100.00%
Electricity
Diesel
Natural Gas
Gasoline
77.01%
11.37%
8.93%
2.69%
The entire process of construction, including theproduction of building materials, constructionphase, and operation phase, is one of the high-energy-consuming industries globally. We activelyrespond to the national dual-carbon policyrequirements by providing society with resourceregeneration, energy-saving, and environmentallyfriendly mechanical equipment, as well as overallsolutions for green recycling building materials,
Green and Low-carbon Productsand Services
to promote the overall green and low-carbondevelopment of the industry.◎ Overall Solutions for GreenRecycling Building MaterialsWhile continuing to focus on the ?eld of engineeringmixing in business layout, we are also rooted inaggregate processing and conduct technologicalresearch in the areas of crushing, screening, shaping,sand making, and construction waste, aiming to providethe sand and gravel industry with more intelligent andenvironmentally friendly mechanism sand equipment.We o?er customers comprehensive solutions coveringthe entire ?eld of building materials from raw materialsto construction waste treatment. We continuouslyintroduce a series of low-carbon equipment for materialprocessing, engineering mixing, and construction wastetreatment, which are widely used in infrastructureconstruction such as buildings, roads, bridges, tunnels,water conservancy, and real estate developmentmarkets. It covers areas including mining crushing andscreening, aggregate processing, construction androad material mixing, and construction waste recycling,thus establishing a benign cycle of resource recyclingand promoting green, low-carbon, and high-qualitydevelopment of the industry.
from electricity consumption contributed the most,accounting for 87% of the total GHG emissions fromenergy consumption throughout the year.
2023 EnergyConsumption
Structure
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Innovation in research and development of "Asphalt Mixing Plant + Raw Material Shaping"equipment: The ?nished aggregates produced by this equipment have good particle shape, optimal
gradation, precise control of powder and water content, thereby improving the production e?ciency ofthe backend mixing plant, reducing energy consumption, and saving asphalt usage. Taking the example ofproducing 500,000 tons of asphalt mixture per year, using low-moisture asphalt-shaped aggregates insteadof purchasing wet aggregates for drying can save about 20% of energy consumption, save about 650 tonsof heavy oil, and reduce carbon emissions by 2,060.5 tons. The dust removal system adopts o?ine pulsedust removal method to collect and remove dust centrally, with an e?ciency of up to 99.5%. The entiresystem operates under negative pressure, without the need for external sealing, and there is no worryabout dust leakage. The concentration of smoke emissions is less than 20mg/m
, reducing dust emissionsduring asphalt aggregate production process.Innovation in the development of e?cient "Thermal System": For aggregate drying, the optimizedfeeding blades of the new drying drum can evenly heat the aggregates, making full use of ?ameradiation energy to e?ciently and smoothly complete aggregate drying. Compared with the previousdesign, it can save about 10% of energy consumption. The large-size head cover of the burner formsa high-temperature pre-combustion chamber to improve atomization quality, thereby promotinge?cient combustion and reducing fuel consumption. It achieves high-standard control precision withprecise oil and air ratio control, and intelligent air distribution. Compared with the previous design, itcan save 10%-15% of fuel consumption.
Innovation in research and development of "LBPS Asphalt Concrete Recycling MaterialScreening Equipment + RAP Aggregate Regeneration" equipment: This equipment can screen outthe most economically valuable particles below 5mm from asphalt concrete waste, and e?ectivelyseparate old asphalt and old aggregates, e?ectively break up agglomerated materials, eliminate falseparticles, ensure the quality of asphalt mixture after adding a large proportion of recycled materials,and achieve the recycling of recycled aggregates.
In response to the existing problems with the asphalt mixing equipment at Ningbo Great Wall BitumenProducts Co.,Ltd., we provided a retro?t and upgrade solution. After the retro?t and upgrade, the failure rateof the asphalt mixing equipment signi?cantly decreased, the discharge time per batch reduced, and theproduction capacity increased from the original 150 tons per hour to 220-230 tons per hour. The consumptionof heavy oil and natural gas also decreased signi?cantly. The burner's built-in oil return system eliminatedthe exhaust process, saving time and reducing odor emissions, thus helping the company achieve a greentransformation in asphalt mixing production.
Highlight
Asphalt Mixing Equipment Retrofit and Upgrade of Ningbo Great Wall Bitumen ProductsCo.,Ltd.
"LBPS Asphalt Concrete Recycling Material Screening Equipment + RAPAggregate Regeneration" Equipment
Asphalt Mixing Equipment at Ningbo Great Wall Bitumen Products Co.,Ltd.
"LBPS Asphalt Concrete Recycling Material Screening Equipment + RAPAggregate Regeneration" Equipment
Low-carbon Solutions for Asphalt Mixing ProductionAsphalt mixture is a common road constructionmaterial, widely used in various road constructionprojects due to its advantages such as longservice life, strong adaptability, good skidresistance, and cost-e?ectiveness compared totraditional concrete pavement. However, duringthe construction process of asphalt pavement, asigni?cant amount of energy consumption andemission of harmful gases such as SO
and NOX
will be generated. To address these issues, wepropose a low-carbon solution for asphalt mixingproduction by integrating green, environmentallyfriendly, and intelligent concepts throughoutthe entire process of research and development,production, and application. This solution aims topromote the green and low-carbon upgrading ofasphalt mixing production.
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Achieve fully automatic batching to meet therequirements of automated production, savingtime and e?ort, and e?ectively improvingproduction e?ciency.The main building is fully enclosed, with eachpowder tank equipped with independent dustcollection equipment. The powder generatedduring the production process can be returned tothe corresponding powder tank, preventing dustover?ow and waste discharge.The mixing host is e?cient and durable,achieving better homogeneity in a shorter mixingtime, resulting in a 10% increase in the averagestrength of concrete.The powder tank is equipped with low-pressureash removal equipment and explosion-proofdevices, e?ectively reducing noise and preventingaccidents such as powder tanker explosions.
Low-Carbon Solutions for Ready-Mixed Concrete Production LineIn the fully automatic ready-mixed concreteproduction line developed and manufactured byour company, the mixing plant adopts the top-mounted powder tank layout, which not onlyimproves the e?ciency of the mixing plant but alsosaves packaging costs, thus assisting in achievingthe green and low-carbon transformation of ready-mixed concrete production.
The mixing plant is equipped with car washingequipment, sewage recycling and treatmentequipment, and spray dust removal systems.Vehicles entering and exiting must pass throughthe equipped fully automatic car washingplatform, where high-pressure water guns areused to wash the vehicles, eliminating dust.Rainwater, production wastewater, and otherwastewater are recycled through the sewagerecycling system to achieve zero wastewaterdischarge and green circular production.During the process of aggregate conveying, watermist is sprayed to reduce dust emissions causedby aggregate vibration.
Huizhou Chengtou Zhike Concrete Co., Ltd. is a subsidiary of Huizhou City Construction Investment Group,specializing in precast concrete, precast mortar, and related businesses. It is an intelligent, automated, low-energy consumption, green, and environmentally friendly smart factory. After conducting a survey andplanning of the project site, we have developed a comprehensive solution for green and e?cient intelligence.This includes the installation of two HZS270 fully automated precast concrete production lines, a concretewet mixing mortar dual-purpose station, and an intelligent ERP commercial concrete management system.With complete environmental protection equipment and convenient management, the project achievescentralized remote control, ensuring both safety and e?ciency in the production process. It is capable ofproducing 1 million cubic meters of commercial concrete and 250,000 cubic meters of mortar annually.
Highlight
Pilot Project of Huizhou City Construction Investment Group's First Top StandardGreen Garden-style Ready-Mixed Concrete Mixing Plant
Pilot Project of Ready-Mixed Concrete Mixing Plant
Automatic Ready-Mixed Concrete Production Line
Automatic Ready-Mixed Concrete Production Line
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Green Solutions for Dry Mortar MixingGreen Solutions for Concrete MixingOur developed dry mortar mixing equipment features a compact structure, occupying minimal space, andintegrates screening, metering, mixing, packaging, bulk handling, dust removal, and electrical control. Duringequipment operation, the dust emission concentration is less than 20mg/m?, and the factory noise is lowerthan 55 decibels, minimizing the negative environmental impact of the mixing production process. Comparedto traditional twin-shaft mixers, the mixing e?ciency is increased by approximately 30%.
Ultra-High Performance Concrete (UHPC) is gradually being applied in China due to its characteristics of ultra-high strength,toughness, and durability. Based on the large scale of infrastructure construction, harsh environments in some projects,numerous engineering challenges, and diverse demands in China, UHPC demonstrates signi?cant development potential inlarge-span bridges, deep underground structures, as well as high-rise and super high-rise structures. We are closely followingindustry trends and have collaborated with Poly Changda Engineering Co., Ltd. (hereinafter referred to as "Poly Changda") tojointly develop specialized mixing equipment for UHPC.The specialized mixing equipment for UHPC adopts a vertical shaft planetary mixer as mainframe, ensuring the uniformityand e?ciency of concrete mixing. It achieves good dispersion of concrete and ?bers, helping to shorten construction periodand enhance economic bene?ts. The modular design of the equipment facilitates easy installation and rapid relocation alongwith the project. The UHPC produced by the equipment possesses advantages such as lightweight, low carbon emissions,and long service life, winning wide recognition from the market and customers. Additionally, we also provide customizedservices for ?xed-site customers, o?ering tailored solutions according to on-site application conditions.We designed a FBT3000 Tower-type dry mortar production line with an annual capacity of 300,000 tonsfor Qinhuangdao Lituo Building Energy Saving Material Factory. The mixing mainframe adopts advancedploughshare mixing technology and independently developed core technology, with unique frequencyconversion mixing technology, e?ectively reducing energy consumption by 25%. It can produce multiplecategories of dry mortar including masonry mortar, plastering mortar, ?oor mortar, general waterproof mortar,and interface mortar, with a mixing ratio of up to 1 to10,000. The equipment's unique bulk loading and dustseparation control enhance dust removal e?ciency, meeting high environmental standards. It integrates theadvantages of tower-type dry mixing lines, allowing for rational planning of material yards and productionplant areas, achieving stable equipment operation, better control of product quality, and costs.
In 2023, the Lianshiwan Bridge on theZhongshan West Ring Expressway,constructed by Poly Changda Engineering Co.,Ltd., utilized UHPC (Ultra-High PerformanceConcrete) as the current most e?ectivesolution to address pain points in steelbridge construction. The UHPC used for thesteel bridge deck paving was mixed andproduced with specialized equipment jointlydeveloped by our company and Poly ChangdaEngineering Co., Ltd. This project, whichmarked the ?rst domestic use of specializedUHPC equipment for mixing and producingUHPC for steel bridge deck paving, not onlyachieved environmental friendliness butalso saved on labor and machinery costs.It enhanced e?ciency and achieved abreakthrough in surface smoothness, reachinga precision level of 3 millimeters, therebyhelping to address the issue of easy damagein steel bridge deck paving.
Highlight
FBT3000 Tower-type Dry Mortar Production Line project at Qinhuangdao Lituo Building EnergySaving Material Factory
Highlight
The Lianshiwan Bridge on the Zhongshan West Ring Expressway successfully applied acomprehensive solution of Ultra-High Performance Concrete(UHPC)
FBT3000 Tower-type Dry Mortar Production Line Project at Qinhuangdao Lituo Building Energy Saving Material Factory
Pre-blend dry mix station
UHPC Specialized MixingEquipment
Planetary Host Modular Station
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Green Solutions for Mobile Crushing and ScreeningGreen Solutions for Sand Making EquipmentOur developed mobile crushing and screening equipment is widely applied in various production processessuch as crushing of rocks and ores in mines, stone processing, peeling crushing in cement concreterenovation, pre-crushing of asphalt concrete materials for recycling, and crushing of construction waste forcement concrete recycling. It contributes to improving production quality and e?ciency.
The V7 dry sand making equipment represents atechnological breakthrough in the ?eld of sand makingequipment. It breaks through key technologies suchas vertical shaft crushing and air screening, adoptinga ?ve-hole impact rotor structure and a centrifugalcrushing method known as "stone hitting stone" toachieve self-crushing and high-density crushing ofraw materials. This improves the particle shape ofthe ?nished sand and increases the production of?ne aggregates. At the same time, combined with airscreening technology, it achieves excellent gradingof particle size, ?nished sand, and stone powder,improving grading e?ciency, and utilizing intelligentcontrol to adjust the ?neness modulus of the ?nishedsand. Additionally, the equipment utilizes o?ineash cleaning pulse dust collector technology toe?ectively control the content of stone powder. The?nished sand has excellent particle shape, continuous
We have designed a frame-type mobile crushing and screening production line for Shandong Guangtong Road& Bridge Engineering Co., Ltd. The production line consists of a jaw crusher, impact crusher, and screeningmachine. The equipment installation is convenient, and the transition is easy. It requires minimal investmentand does not need complex foundation construction. It has a high production capacity of up to 200 tons perhour and can produce four types of ?nished products suitable for asphalt mixing. Additionally, ShandongGuangtong Road & Bridge Engineering Co., Ltd. has selected a set of asphalt milling and crushing screeningequipment, with a production capacity of 120 tons per hour, produced by the company. This equipmentcan ?nely classify recycled milling materials into coarse, medium, and ?ne grades, further expanding theapplication market for asphalt recycled materials.
Highlight
Frame-type mobile crushing and screening production line at Shandong Guangtong Road& Bridge Engineering Co., Ltd.
Asphalt Milling Material Crushing and Screening Equipment
Frame-type Mobile Crushing and Screening Production Line
V7 dry sand making equipmentgrading, controllable stone powder content,and adjustable ?neness modulus. It is applied inconcrete with low water absorption, enhancingconcrete performance, improving the appearanceof concrete, and realizing the green and intelligentproduction of sand making.
Highlight
The V7 dry sand making equipment contributes to the construction of highways in Guangxi
V7-60 Dry Sand Making Equipment
Guangxi Road and BridgeEngineering Group Co., Ltd.purchased V7-60 dry sandmaking equipment in 2017 toprovide high-quality sand andgravel aggregates for highwayconstruction and bridgeconstruction. The equipmentwas put into operation in May2017 and has been runninge?ciently and steadily forover 20,000 hours to date,with a daily production of15 hours and a production capacity of up to 60 tons per hour. It has successfully served several importantprojects such as Heba Expressway and Wuxin Expressway, providing strong support for the green and high-quality construction of highways in Guangxi. As of December 2023, Guangxi Road and Bridge EngineeringGroup Co., Ltd. has introduced a total of 8 sets of our sand production lines. The high-quality machine-madesand produced by these lines has been widely used in multiple major projects, including the C70 machine-made sand internal concrete of Pingnan Third Bridge, UHPC combination bridge of Changning to BaoshanExpressway, and machine-made sand mass concrete of Longtan Tianhu Bridge.
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Mobile Crushing Green SolutionsCarbon Sequestration Technology in Concrete
Concrete Slump Online AI Monitoring System
The E-series electric-driven mobile crusher developedand produced is applied in various ?elds such assand and gravel aggregates processing, constructionwaste recycling, earthwork projects, tailings and slagtreatment, and mine restoration and utilization. It isparticularly suitable for scenarios with well-developedpower grids and less demand for equipment mobility,empowering industrial partners with safe, e?cient, andgreen production. This equipment features designssuch as external power supply drive, onboard low-power diesel engine, and dust suppression system,achieving energy-saving and environmental protection.The overall transmission e?ciency of the equipmentcan be increased by 30%, achieving a 30% reductionin fuel consumption under the same capacity, andreducing equipment maintenance costs by 50%.
Concrete, as the core material in the construction sector, holds signi?cant importance and its industrialscale profoundly impacts the overall development of the building materials industry. Our carbon-negativelaboratory has proposed three concrete carbon sequestration technology routes to reduce carbon emissionsduring the concrete production process:
The independently developed Concrete Slump Online AI Monitoring System, combining arti?cial intelligenceand machine vision technology, eliminates the traditional cumbersome sampling and testing process,achieving real-time monitoring of concrete slump during the mixing process. This signi?cantly reduceslabor costs for enterprises and enhances production e?ciency. With this system, the problem of slump?uctuations caused by di?erences in sand and gravel materials is e?ectively addressed, preventing potentialsigni?cant losses to projects due to non-compliant slump requirements. Furthermore, the system can obtainreal-time production task information such as strength, slump requirements, pouring methods, etc., andintelligently compare and judge AI prediction results with task requirements to ensure concrete quality,reduce unnecessary resource waste, and contribute to the green and low-carbon development of the concreteindustry.
Based on the principle of carbon sequestration in recycled wash water, the regenerated waterenhances concrete strength by incorporating ultra-?ne suspended solids generated from the reactionbetween recycled water and carbon dioxide. This method not only recycles stabilized cement ?nescontaining carbon dioxide as bonding materials in new concrete mixes, reducing the need for newcement, but also avoids the unstable performance variations that may occur when using untreatedrecycled water slurry in fresh concrete production.During the concrete mixing process, lique?ed carbon dioxide is injected into the cement slurry, formingcarbonate ions that combine with calcium ions in the cement to produce minerals that enhanceconcrete strength. This method not only improves the fracture strength and physical properties ofconcrete but also reduces cement consumption and production costs while decreasing CO
emissionsduring concrete production. Preliminary estimates suggest that this technology can sequester 10,000tons of carbon dioxide annually for a production volume of 100,000 cubic meters of concrete.Carbon dioxide is injected into cement-based materials to enhance the overall performance ofrecycled aggregate concrete, while chemically converting carbon dioxide into stone permanently.This technology improves the quality of recycled aggregate concrete, enabling it to achieve the samephysical and mechanical properties as original aggregate concrete, e?ectively utilizing constructionwaste and reducing land?ll. With China's annual production of waste concrete reaching 2.35 billiontons, preliminary estimates suggest that this technology can sequester 150 million tons of carbon.
The E-Series Electric-Driven Mobile Crusher
◎ Green Technology Application and Digital Intelligence Transformation
In terms of technology and products, we continue to advance digitalization and intelligent transformation. Duringthe reporting period, we developed arti?cial intelligence technology products such as slump detection, AI intelligentunloading systems, and recycling of waste concrete, and applied them to the concrete mixing process, signi?cantlyreducing carbon emissions during concrete production. To further promote the development of energy-saving andcarbon-reduction technologies, we established a carbon-negative laboratory to conduct research and application ofvarious product technologies, providing more e?cient and environmentally friendly solutions for the industry's greentransformation and promoting the sustainable development of the entire industry chain.
Carbonsequestrationthrough wash
water
Carbonsequestration
during
concrete
mixing
Carbonsequestrationin recycledaggregates
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AI + Intelligent Aggregate Feeding SystemThe system utilizes arti?cial intelligence and visual detection technology to monitor the gradation andmorphology of aggregates online. Comprising a visual system and PC intelligent module, it employs AIrecognition to monitor the gradation and morphology of aggregates during aggregate conveying. When theAI determines that the aggregate speci?cations do not match the target silo, it issues an alert to prompt sta?intervention. This system not only enhances operational safety by signi?cantly reducing the probability oferroneous feeding but also improves customer operational e?ciency, operational quality, and managemente?ciency. It lowers operating costs for customers, making the aggregate feeding process greener and moreintelligent.
We place great emphasis on the construction of a green and low-carbon corporate culture, integrating green concepts into its dailyoperational activities. We advocate for employees to conserveelectricity, water, and paper in their daily o?ce work, encourage theprioritization of purchasing high-energy-e?cient o?ce equipment,and strictly manage the use of lighting, air conditioning, computers,printers, and copiers in public areas. Area managers are requiredto check the electrical control cabinet switches and positionsbefore leaving work and turn o? all power sources to reduceenergy consumption. By strengthening the promotion of greeno?ce practices, we aim to enhance employees' awareness ofenvironmental protection comprehensively.During the National Energy Conservation Publicity Week, weinitiated a "Low-Carbon Check-in" activity on platforms such asRED and Douyin, encouraging all employees to actively practicelow-carbon living by using reusable water bottles, choosing low-carbon transportation, and using eco-friendly bags for shopping.Additionally, activities like the "Tree Planting Day CarbonReduction Quiz Battle" and the "Popular Carbon Circle KnowledgeQuiz Challenge" were organized to further enhance employees'awareness of green and low-carbon lifestyles.
Strengthen the Construction of Greenand Low-Carbon Corporate Culture
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Pollution Controland EcosystemProtection
We consistently integrate the environmentalconcept of "compliance with laws and regulations,pollution prevention, continuous improvement;providing society with resource regeneration,energy conservation, and environmentally friendlymachinery and equipment" into various aspectsof business operations. We strictly adhere to therequirements of laws and regulations such as theEnvironmental Protection Law of the People'sRepublic of China and the Environmental ImpactAssessment Law of the People's Republic ofChina to carry out environmental managementwork. An environmental factor assessmentform covering o?ce areas and workshops hasbeen established, continuously promoting thestandardization of environmental managementand striving to reduce the negative impacts onthe environment during business operations. Weobtained ISO 14001 environmental managementsystem certi?cation and established a top-downthree-level environmental management structure.The chairman of Board of Directors serves as theperson in charge of environmental management,functional departments and productionworkshops are responsible for implementingspeci?c environmental management work,and the safety and environmental protectiondepartment is responsible for supervising thee?ective implementation of management work,continuously optimizing and improving theenvironmental management level.During the reporting period, we formulated anenvironmental self-monitoring plan coveringprojects such as wastewater, exhaust gas, andplant boundary noise. We organized trainingsessions related to environmental protectionthemes such as global climate crisis, carbonneutrality, and biodiversity to enhance employees'environmental awareness and improve the overallenvironmental management capabilities. A totalinvestment of 1.44 million RMB was allocated toenvironmental protection e?orts.
We attach importance to water resources conservation,adhering to and implementing relevant laws andregulations such as the Water Law of the People'sRepublic of China. It has issued and implementedregulations such as the "Water ConservationManagement System," "Water Conservation QuotaManagement, Rewards and Penalties for ExceedingQuotas," "Regular Maintenance System for WaterEquipment and Pipelines," and "Energy ConservationManagement Regulations." Strict measures for waterresources management are implemented, includingthe recycling of equipment cooling water and therational control of water usage for ?ushing surfacesor facilities, watering plants and trees, constructionsites, and summer cooling measures. We also preventwater leakage from valves, pipes, and water equipment,regulate the use and management of production anddomestic water, and reduce water wastage.
We strictly adhere to the requirements of the WaterPollution Prevention and Control Law of the People'sRepublic of China and local laws and regulations inthe areas where our plants are located. It has obtaineddischarge permits issued by the Ministry of Ecology andEnvironment of Quanzhou City and Xiantao City. Ourwastewater mainly consists of domestic sewage andindustrial wastewater. It strictly complies with relevantregulations on urban drainage and sewage treatment,sets up discharge outlets in accordance with urbandrainage and sewage planning requirements, constructscorresponding treatment facilities, conducts monitoringof key indicators such as ammonia nitrogen, COD,BOD, and suspended solids in domestic wastewater,and entrusts professional third-party organizationsto conduct testing on domestic wastewater. Duringthe reporting period, the key indicators met therequirements of the "Integrated Wastewater DischargeStandard" (GB8978-1996) and the "WastewaterDischarge Standard for Urban Sewer Systems" (GB/T31962-2015), achieving standardized discharge ofwastewater.
We strictly comply with the Air Pollution Prevention and Control Law of the People's Republic of China and local laws andregulations in the areas where our plants are located. We conduct regular inspections of the operation and managementof air emission facilities to ensure compliance with emission standards. The main sources of air emissions during ourproduction process come from the painting process, which generates pollutants such as toluene, xylene, aromatichydrocarbons, nitrogen oxides, non-methane total hydrocarbons, as well as particulate matter from sandblasting, shotblasting, and welding processes. For di?erent air pollutants, we have implemented targeted treatment measures:
We strictly adhere to relevant laws and regulations such as the "Law on the Prevention and Control of EnvironmentalPollution by Solid Wastes of People's Republic of China" and the "Measures for the Prevention and Control ofEnvironmental Pollution by Hazardous Chemical Wastes." We formulate and implement related management systemsand operational procedures for waste management, including the "Management System for the Disposal of HazardousWastes," "Management Measures for Hazardous Waste Storage Facilities," "Procedures for the Storage, Transfer, andProcessing of Hazardous Wastes," "Speci?cations for Packaging and Labeling of Hazardous Wastes," "ResponsibilitySystem for the Prevention and Control of Environmental Pollution by Hazardous Wastes," and "Prevention Measuresand Emergency Plans for Accidents Involving Hazardous Wastes." These regulations and procedures strictly regulate thecollection, storage, and disposal of waste, aiming to reduce the negative impact of waste on the ecological environment,including soil, water sources, atmosphere, and human health.
During the reporting period, we actively promotedthe management of air emissions. We conducted self-monitoring of emissions from multiple paint booths,shot blasting exhaust outlets, sandblasting exhaustoutlets, and unorganized emissions at the factoryboundary to ensure compliance with standards.Additionally, we commissioned professional third-party organizations to conduct emissions testing, andthe relevant indicators for various pollutants met therequirements of the " Integrated emission standardof air pollutants " (GB16297-1996) and the "Emissionstandard of volatile organic compounds for industrialsurface coating" (DB351783-2018), achieving emissioncompliance.
Water Resources Conservation
Wastewater Management
Air Emissions Management
Waste DisposalHighlightBy implementing a recycling system for the coolingwater used during steel plate cutting and thewastewater generated from the painting process,we signi?cantly reduce wastewater discharge andimprove water resource utilization e?ciency.
For pollutants such as toluene, xylene,aromatic hydrocarbons, nitrogen oxides,non-methane total hydrocarbons, threeair treatment lines are employed: "glass?ber cotton ?ltration + activated carbonadsorption + catalytic combustiondesorption" process line, "glass ?bercotton ?ltration + spray washing + activatedcarbon adsorption" process line, and "watercyclone + activated carbon adsorption"process line.For particulate matter: 2 baghouse dust
collectors and 5 mobile dust collectors aredeployed for treatment.
Waste Gas Treatment Equipment
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The hazardous waste generated in production andoperation mainly includes waste dyes, paints, used oils,waste paint buckets, spent activated carbon, wasteemulsions, and so on. We have established a HazardousWaste Pollution Prevention and Control Working Groupcomposed of leaders from various workshops andmembers of the Safety and Environmental ProtectionO?ce. This group is responsible for decision-making,supervision, and coordination of various hazardouswaste pollution prevention and control tasks.Additionally, each department is required to uniformlystore hazardous waste in designated temporary storageareas and label them with hazardous waste signs forclear classi?cation. All hazardous waste is then handedover to quali?ed third-party organizations for harmlesstreatment. Furthermore, we strictly follow proceduressuch as entry, sorting, ledger recording, and platformreporting, strengthen communication with majordepartments generating hazardous waste, and achievenormalized management of hazardous waste.During the reporting period, we completed the revisionof the hazardous waste ledger based on the "TechnicalGuidelines for the Formulation of Hazardous WasteManagement Plans and Management Ledgers" andactively took the following measures to reduce thegeneration of hazardous waste:
To reduce the environmental impact of waste emissionsand improve resource utilization e?ciency, we striveto minimize the generation of general waste throughgradually re?ning production processes, productiontechniques, and the following management measures:
Management of Hazardous WasteGeneral Waste Management
Applying the "Activated Carbon Adsorption - Desorption- Catalytic Combustion" exhaust gas treatment processto increase the e?ciency of exhaust gas treatmentwhile increasing the utilization rate of activated carbon,reducing the generation of waste activated carbon.Using coatings that are less likely to produce VOCs toextend the service life of activated carbon and e?ectivelyreduce the generation of paint sludge.
For general waste such as scrap iron parts, scrap iron?lings, and waste wood boards, a general waste storagewarehouse is set up for storage and external sales.Regarding household garbage, the administrativedepartment strengthens daily supervision and handlingof household garbage, requiring strict measures suchas preventing spillage during transportation by wastedisposal providers to avoid secondary pollution tothe environment. Additionally, regular inspectionsand cleaning of septic tanks are conducted to ensureno over?ow occurs. During the reporting period, wedid not receive any complaints or dissatisfaction fromsurrounding communities or residents due to untimelydisposal of household garbage or other solid waste, andthere were no incidents of septic tank over?ow.
Hazardous Waste Warehouse
General Waste Warehouse
Hazardous wastecategory
2023 total productionamount（t）Waste paint sludge33.046Waste paint buckets11.294Waste activated carbon2.896Waste emulsion solution2.975
Total50.211
In 2023,total hazardous waste production atQuanzhou base
During the reporting periodWe generated hazardouswaste a total of
71.21
tons
During the reporting period,we generated a total of2,024
tons of industrial waste
Generated at the Quanzhouheadquarters
50.21
tons
of which2,024
tons
Generated at the Xiantao base
21.00
tonsAll of this hazardous waste has beendisposed of by quali?ed third-partyorganizations.
were recycled as industrial waste
Reusing emulsions to reduce the generation ofemulsions.
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Noise pollution prevention and control are closelyrelated to the occupational health of employees andthe daily lives of surrounding residents. We implementthe Law of the People's Republic of China on NoisePollution Prevention and Control, strictly adhere tothe Emission standard for industrial enterprises noiseat boundary (GB 12348-2008) and the Environmentalquality standards for noise (GB3096-2008), and conductnoise management work in accordance with thestandards. Equipment is regularly maintained, andboundary noise is monitored to continuously improvethe sound environment quality and prevent noisepollution.During the reporting period, we formulated anenvironmental self-monitoring plan covering projectssuch as wastewater, exhaust gas, and boundary noise.Self-monitoring of boundary noise was conducted, andthe monitoring results met the relevant requirements.Additionally, we commissioned a professional third-party organization to conduct testing on tra?c noiseand industrial noise within the factory area. The daytimedecibel levels were all below the standard limit of 60dB(A), complying with the requirements of the Emissionstandard for industrial enterprises noise at boundary(GB12348-2008) for Class 2 standards.During the reporting period,we invested a total of 45,000RMB in noise management. This was used to providequali?ed noise reduction earplugs to employees andensure their usage. Furthermore, vibration isolationmounting bases were installed for equipment with highnoise levels to reduce noise generation. In addition,we implemented measures such as arranging worktimes reasonably, ensuring that noisy operations arenot scheduled during the rest periods of surroundingresidents (from 22:00 to 06:00 the next day), andceasing noisy operations throughout the day duringthe college entrance examination period, aiming toreduce environmental noise pollution. Throughout thereporting period, we did not receive any complaintsfrom surrounding residents about the impact ofproduction noise on their rest and daily lives, nor didwe receive any administrative penalties due to noisepollution.
According to the "Global Risks Report 2024" releasedby the World Economic Forum, biodiversity loss andecosystem collapse have become one of the top tenrisks that may seriously a?ect human society in thenext decade. We attach great importance to biodiversityconservation, strictly adhering to the "Regulations onNature Reserves of the People's Republic of China,"the "Law on the Protection of Wildlife of the People'sRepublic of China," and relevant laws and regulationsrelated to biodiversity in the operating locations. Wecontinuously monitor the impact of our activities onbiodiversity, avoiding conducting business activitiesin nature reserves, ecologically sensitive, and fragileareas. Currently, all projects developed and constructedare not located within ecologically sensitive areas.Before the construction of new project plants or newproduction lines, we incorporate the distribution ofrare and endangered animal and plant resources andancient forest communities around the project into thescope of environmental assessment consideration. Soilmonitoring is conducted to assess whether the projectwill impact protected areas for animals and plants,production and breeding sites, etc., to minimize adversee?ects on the ecological environment and biodiversity.During the reporting period, we actively organizedbiodiversity training and popularized knowledge relatedto biodiversity conservation on our o?cial WeChatpublic account platform, enhancing the awareness ofbiodiversity conservation and ecological environmentalprotection among all employees.
Noise ManagementBiodiversity Protection
ResourceUtilizationand CircularEconomyDeveloping a circular economy andpromoting the e?cient and intensive useof resources are powerful supports forthe country to achieve our dual carbongoals. We incorporate the resource conceptof saving, intensifying, and recyclinginto the development strategy. We arecommitted to realizing the reuse of wasteand the recycling of resources by providingdiversi?ed solutions for the utilization ofconstruction waste resources to society.We actively promote the sustainableand circular use of resources in businessoperations, making contributions to theconstruction of a circular society as NFLG.
According to data from the Ministry of Housing andUrban-Rural Development of China, China generatesbillion tons of construction waste each year, accountingfor 30%-40% of the total urban waste. Most of thisconstruction waste is left untreated and is either openlypiled up or buried in suburban or rural areas, causingpollution to the land and environment in these areasand directly a?ecting the lives of surrounding residents.Currently, the utilization rate of construction waste inChina is less than 10%, while in developed countries,the utilization rate exceeds 90%. The key to addressingconstruction waste lies in the resource utilization andrecycling of construction waste.We adhere to the principles of green production,energy conservation, emission reduction, and resourceconservation. Starting from the green ecologicalindustry chain, we integrate processes such as sorting,crushing, and screening to transform construction solidwaste into recycled aggregates. In an integrated factory,these recycled aggregates are further processed intoproducts such as recycled concrete, recycled bricks,recycled mortar, stabilized soil materials, and back?llmaterials. We achieve zero pollution and zero emissionsin terms of environmental protection, and we turnconstruction solid waste into valuable resources atrelatively low processing costs. We provide solutions forthe recycling of construction waste in the constructionindustry, widely applying them to the regenerationof old materials in road surface and roadbed, therecycling of surplus mud, subway shield tunnelingmuck, engineering muck, and the regeneration andutilization of construction waste and decoration waste.This e?ort helps to reduce, recycle, and harmlesslydispose of urban construction waste, achieving the goalof reducing, reusing, and recycling waste resources.
Solutions for Recyclingof Construction Waste
Complete industry chain multi-dimensionalvalue integration, improving resourceutilization: Continuously converting constructionsolid waste into various building materialsproducts, establishing the upstream anddownstream channels for resource reuse, andincreasing the utilization rate of construction solidwaste resources to over 90%. This signi?cantlyreduces the production costs of backend productssuch as recycled concrete, recycled bricks, andrecycled mortar, achieving multi-dimensional valueintegration across the entire industry chain.
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Intelligent management of the productionprocess to create a low-cost, high-returncapability for the conversion of recycledresources: Leveraging intelligent control systems,various online monitoring devices not onlyconduct high-precision inspections and automatedproduction allocation but also swiftly respond tocontinuously changing operational requirements,e?ectively reducing energy consumption and laborcosts.
Architectural Waste Recycling Solution Renderings
Highlight
Green and Intelligent Building Materials Comprehensive Industrial Park for the Recycling ofConstruction Waste in Huicheng District, Huizhou City
Highlight
Construction Waste Comprehensive Industrial Park of Qinhuangdao Hongzheng NewBuilding Materials Technology Co., Ltd.
Green and Intelligent Building MaterialsComprehensive Industrial Park for theRecycling of Construction Waste in HuichengDistrict, Huizhou City
RAPR aggregate recycling equipment
Construction Waste Comprehensive Industrial Park ofQinhuangdao Hongzheng New Building Materials Technology Co.,Ltd.
We provided a comprehensive solution for the processing andutilization of construction waste in the Green and IntelligentBuilding Materials Comprehensive Industrial Park for the Recyclingof Construction Waste in Huicheng District, Huizhou City. In the ?rstphase of the project, we installed nine production lines, including a300t/h demolition waste processing line, a 70t/h renovation wasteprocessing line, a large-item waste processing line, and a landscapingwaste processing line, ensuring the proper disposal and utilizationof various types of waste. Additionally, intelligent material storagesystems, LS3-1545 shaping sand making equipment, NWCB600stabilized soil mixing equipment, 2-HLS270 commercial concretemixing towers, and fully automatic brick production lines were set up.These installations successfully established a route for the recyclingof front-end construction waste resources and the reuse of ?nishedaggregates, injecting new impetus into the development of thecircular economy in the construction waste recycling industry.
We provided Qinhuangdao Hongzheng New BuildingMaterials Technology Co., Ltd. with integratedsolutions for waste resource utilization and anenvironmentally friendly comprehensive constructionwaste processing line. Construction waste transportedfrom construction sites enters our comprehensiveconstruction waste processing line, where weundergo crushing with jaw crushers, cone crushers,and other equipment. Subsequently, we go throughprocesses such as iron removal, sand adjustment,and screening to obtain aggregates of di?erentspeci?cations. Moreover, at various material transferpoints and dusting points along the production line,sealed negative pressure dust prevention technologyis applied to prevent dust dispersion. Materials sentto the ?nished product warehouse are uniformlyhumidi?ed to prevent dust dispersion during materialdischarge. This construction waste comprehensiveprocessing line is expected to process 1 million tons ofconstruction waste annually, reducing approximately13,000 tons of CO
e emissions. Additionally,
Qinhuangdao Hongzheng New Building MaterialsTechnology Co., Ltd. has introduced equipmentsuch as commercial concrete mixing equipment,asphalt concrete mixing equipment, waterstabilization stations, and brick production linesfrom the company for producing a series ofrecycled building materials including recycledconcrete, recycled asphalt mixtures, recycledstabilized materials, and recycled bricks, forminga green closed loop.
RAPR aggregate recycling equipment facilitates the reuse of old pavement materials
The RAPR aggregate recyclingequipment developed and producedadopts a mechanical stripping methodto e?ectively separate the old asphaltand old aggregates in RAP, achievingprecise grading management ofRAP and signi?cantly reducing theoccurrence of false particle sizes andtheir variability. The separate heatingand e?cient regeneration of old asphaltand aggregates in RAP can improvethe stability of RAP aggregate grading,enabling a large proportion of additionand promoting the achievement ofenergy-saving goals.
Environmentally friendly industrial design tomeet the production environment requirementsof low dust and low noise: Utilizing various
environmentally friendly industrial designs such asbag-type dust removal, o?ine dust cleaning withpulse, and noise reduction with mu?ers, achievinga dust particle concentration of less than 10mg/m? and noise level lower than 55 decibels on theproduction line.
Sophisticated crushing and screening processesensure the excellent quality of recycledproducts: Various types of construction solid wasteare ?nely classi?ed, ensuring continuous grading,purity, and uniformity of the recycled aggregates,leading to the production and application of high-quality recycled products. This promotes the high-quality development of the construction solidwaste resource utilization industry.
Social
Innovation-Driven Development & Suppliers and ClientsEmployeesRural Revitalization and Social Contributions
2023 Management Goals for Social Issues
Increase investment in the research and development of digital intelligence products
Develop a "Supplier Code of Conduct" and gradually incorporating CSR/ESG requirements into the supplieradmission and evaluation process
Establish a sound supply chain risk management system to e?ectively identify and assess supply chain risks andprevent related risks
No incidents resulting in penalties due to product and service quality occurred throughout the year
No incidents resulting in penalties due to violations of information security management regulations occurredthroughout the year
No incidents of violating customer privacy occurred throughout the year
No incidents resulted in penalties for violating labor laws or human rights protection throughout the year
The total training hours provided to employees throughout the year were no less than 15,000 hours, with an averageof no less than 20 hours per person
Priority is given to providing employment opportunities to the local area, with an annual employee localizationemployment ratio of no less than 60%
Focus on the welfare of children and teenagers in the local area, continuously promoting donation and sponsorshipactivities for education
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Innovation-DrivenDevelopment& Suppliersand ClientsNFLG adheres to the corporate philosophyof "specialization, excellence, quality, andlongevity ". We drive industry developmentthrough innovation and craft responsibleproducts with ingenuity. Our commitmentis to become a world-class enterprisetrusted by customers, respected by peers,and known for our unique and sustainableinnovation capabilities. In addition tosetting high standards for quality andservice in our own operations, we alsopromote responsible procurement andmarketing practices, working with industrypartners to build a stable, transparent, andsustainable supply chain.
We understand that research and developmentinnovation is the inexhaustible driving force forachieving high-quality development. We adhere to thestrategy of independent innovation, focusing on bothoriginal innovation and the introduction, digestion,absorption, and re-innovation. We continuouslyinvest in research and development innovation,improve our scienti?c research system, and enhanceour technological development and independentinnovation capabilities. We benchmark againstinternational leading technologies, actively engagein industry-university-research cooperation andinternational collaboration, and continuously enhancethe independent innovation capabilities.
Technical R&D and Innovation
We have established internal management systemssuch as the "Research and Development ProjectManagement System" and "Product Design andDevelopment Management Procedures" to promote theimplementation of Integrated Product Development(IPD) project management. These systems regulatethe entire research and development process,including project planning, project initiation, projectdevelopment, and project acceptance, aimingto strengthen the standardization of the productdevelopment process. Each stage of product researchand development, testing, and other processes ismonitored to establish a quality assurance system forresearch and development that is process-controlled,closely connected, and operates in a closed loop.Additionally, to ensure the security and control oftechnical information, we have formulated a "TechnicalInformation Con?dentiality System" and implementedcon?dentiality mechanisms, with strict punitivemeasures for any breach of con?dentiality.Our Technology Research and Development Center,Research Institute, Intelligent Control Division, andVarious Product Divisions are responsible for technologyresearch and development work. Speci?cally:
To encourage and support research and developmentinnovation, attract and cultivate advanced technicaltalents, and stimulate the innovation enthusiasmof personnel, we have formulated the "IntellectualProperty Rewards and Punishments System", whichprovides corresponding rewards to employees whohave obtained patent acceptance or authorization fortheir service invention and creation. Additionally, wehave established and continuously improved incentivesystems such as the "Patent Reward Measures".Internally, annual awards such as the "Invention andCreation Award" and the title of "Outstanding PatentWorker" have been established. Employees whoare assessed internally to have made outstandingcontributions can receive corresponding rewards
R&D and Innovation Management
The Technology Research and Development Center consistsof speci?c functional departments such as the TechnologyO?ce, Technology Pre-Research Planning Department,Structural Optimization Department, and EnvironmentalProtection Department, which respond to the technicalneeds of the company's various product divisions to conductresearch and development of new products and technologies.
The Research Institute includes a research center, post-doctoral research workstation, industry-university-researchmanagement department, etc., mainly responsible forresearching cutting-edge technologies, guiding the company'skey technical issues, conducting academic exchanges andcooperation, and managing graduate student training.The Intelligent Control Division conducts research anddevelopment and provides technical support for intelligentcontrol platforms per company's product planning needs.Each product division conducts research and analysis ofmarket and customer demands, engages in product researchand development innovation, and promptly collaborateswith other research and development departments tocommunicate new technology development requirements.They participate in research and development projects relatedto technical modules and fundamental theories to ensure thespeci?city and timeliness of the development.
Highlight
Master Craftsman Award
We value the promotion of the craftsman spiritand is dedicated to creating a work atmospherecharacterized by dedication, perfectionism,meticulousness, and the pursuit of excellence.Employees who use their high-level technicalabilities to ensure the quality of our high-end products and have been recognized asexcellent management elites or outstandingteam leaders for two consecutive years willbe selected for the " Master Craftsman"candidates. NFLG will evaluate employees'performance and award them with the "MasterCraftsman" honor.This recognizes thosedeeply focused on technical research andthose who make signi?cant contributions toour technology and management, conveyingthe concept of craftsmanship and motivatingemployees to continuously elevate theirtechnical skills, aiming to craft professional,outstanding products with dedication.
In addition, we collaborate on technological research and development with well-known universities,research institutions, and academies such as the Haixi Institutes, Chinese Academy of Sciences, the ResearchInstitute of Highway Ministry of Transport, and Huaqiao University to grasp market demand and technologicaldevelopment trends, conduct research and development and forward-looking layout in hotspot applicationdomains and potential application areas such as construction waste resource utilization, and enhance thecompany's new product development capabilities and technological competitive strength. We have establisheda long-term collaborative mechanism with Huaqiao University, recruited post-doctoral fellows to promotetechnological exchange and cooperation, established a training base for graduate students, and cooperated inresearch projects and internships for graduate students to conduct research and development on intelligentcontrol technologies such as online detection of aggregate grading. Through research and developmentcooperation, we provide strong technical support for product development and market layout of our company.In addition, we actively establish channels for technical exchanges between our R&D personnel and domesticuniversities, as well as advanced enterprises in both domestic and international industries. We regularlyorganize R&D personnel to go abroad or invite domestic and foreign experts for technical exchange activities.
Cooperation in R&D and Innovation
and honors. Additionally, we have established andcontinuously improved incentive systems such as the"Patent Reward Measures". Internally, annual awardssuch as the "Invention and Creation Award" and the titleof "Outstanding Patent Worker" have been established.Employees who are assessed internally to have madeoutstanding contributions can receive correspondingrewards and honors.
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Digital Intelligence is a crucial pathway to empowerthe transformation and upgrading of traditionalindustries, enabling the achievement of high-qualitydevelopment. We have invested in the constructionof industrial Internet infrastructure, establishingdigitalized workshops, facilitating supply chaincollaboration, and integrating information technologiesto consistently advanced the process of corporatedigital intelligence transformation. Furthermore, weare actively engaged in the research and developmentof digital intelligence products. We have establishedan Internet of Things (IoT)-based smart operation andmaintenance management cloud platform, enablingremote monitoring and interconnectivity of equipment.It promotes the transition of product operation andmaintenance from traditional o?ine methods to"Internet+" intelligent technological means. Ourcommitment lies in leveraging information technologies
After years of exploration and accumulation, we haveobtained core technologies such as "e?cient compositeshaft stirring technology," "rotor self-balancing crushingtechnology for crushers," and "key technology for?exible heating of asphalt reclaimed materials," andhave been recognized as a high-tech enterprise in FujianProvince, a leading little giant of technology enterprisesin Fujian Province, and a key research and developmentdemonstration enterprise in Quanzhou. We also have apost-doctoral research workstation. We have graduallytransitioned from initial follower-based research anddevelopment to proactive project reserves research anddevelopment, leading to a continuous enhancement inthe company's product competitiveness.During the reporting period, we were awarded thedesignation of "National Enterprise Technology Center,"and our Postdoctoral Research Workstation washonored as the "Outstanding Postdoctoral ResearchWorkstation of Quanzhou City in 2023." Additionally, theproject "Key Technologies and Engineering Applicationsof Asphalt Pavement Regeneration in Wet and Hot
Transformation and Advancementin Digital Intelligence
Achievements in R&D and Innovation
Highlight"IoT + Equipment" Remote Intelligent Service Platform
Our "IoT + Equipment" remote intelligent service platform breaks through time and space limitations,addressing challenges related to multiple subordinate sites and untimely maintenance. It e?ectively reducespersonnel mobility risks, and provides a secure, e?cient, and convenient platform for information exchange,technical communication, and post-sales maintenance service deployment for clients.
Areas" was awarded the " Science and TechnologyAward China highway society". We completed ?veproduct and technology research and developmentprojects and initiated six new projects. As of now, wehave a total of 18 ongoing projects, with research anddevelopment reserves being solidly established, andeach project is progressing steadily. Completed projectsinclude "Research and Application of Key Technologiesfor Fine Stripping of Asphalt Regenerates," "Researchand Application of Online Monitoring Technologyfor Engineering Equipment," and "Development ofFully Automatic Dry Mortar Production Equipment,"which e?ectively enhanced the intelligence level ofproducts and user experience. The current ongoingprojects encompass not only fundamental theoreticalexplorations in process methods and materials but alsothe development of generic technologies applicableto multiple product lines. Moreover, they includethe application of new technologies in products,fully re?ecting our commitment to specialization,precision, and continuous innovation in research anddevelopment.
such as the Internet, IoT, and data analysis to aidtraditional industries in reducing energy and resourceconsumption, while driving holistic green and low-carbon development across the industrial chain.
Remote Communication:
The service platformemploys ultra-high-de?nition wide-anglecameras and precise controlsystem synchronization topresent a true 1:1 on-sitescene, enabling remotecommunication.
Strong Interactivity: The service
platform can be remotely controlledin real-time, facilitating image anddata access. In addition to real-time interaction with on-site controlsystems, the service platform canalso integrate with cloud platforms,visualized big data, storage monitoring,and other intelligent informationsystems. This enables comprehensivestatistics, analysis, and display ofmultidimensional data.
High Expertise: The serviceplatform is sta?ed by experts fromvarious industry domains, o?eringon-site guidance for original factoryturnkey services. This providesusers with an all-in-one deliveryservice, tailored to their needs,to achieve a personalized serviceexperience. The platform ensures"early prevention, early diagnosis,early treatment" of equipmentissues, eliminating potentialproduction hazards in their earlystages.
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We actively practice responsible procurementprinciples, giving priority to cooperating withsuppliers who align with our sustainable developmentphilosophy. Through the establishment of a "SupplierCode of Conduct," we aim to regulate supplier behavior,ensuring alignment with the our ethical standards,environmental practices, labor policies, and health andsafety standards.
Responsible Supply Chain
We have established a set of supplier managementsystems, including the "External Supplier ManagementProcedures", "Supplier Quality Performance EvaluationRules", "Monthly Supplier Product Quality EvaluationDetails", "Supplier Performance Management Provisions","Business Guidelines" etc. These systems provide strictregulations for supplier assessment and admission,evaluation and appraisal, and quality audits. They aimto enhance responsible supply chain management,improving the transparency, standardization, andprofessionalism of supply chain management practices.
Distributors, as important business partners and brandrepresentatives, directly in?uence our relationshipswith customers and our brand image. To strengthendistributor management, we established the "DistributorService Management Regulations", specifying therequirements for distributors regarding servicestandards, equipment acceptance, on-site presence,scheduled inspections, follow-up visits, and warrantyservices. Distributors are trained in product knowledge,business management, contract management, servicestandards, ?nancing leases, contracting, safety, andmore, assisting them in enhancing team-building andcontinuously improving professional competence toensure the distributor's services meet our requirementsfor product installation quality and customer service.In addition, we also provide professional technicaltraining for distributors through the NFLG MixingInstitute, empowering distributors with a win-win andopen-minded approach to jointly provide high-qualityservices to customers. During the reporting period,the NFLG Mixing Institute conducted a total of 309training sessions for customers and dealers nationwide
Through industry exchanges, exhibitions, networking,and other means, we understand the cooperationintentions of suppliers; conduct ?eld visits and technicalcommunications based on the development needs ofboth parties, comprehensively assess the overall strengthof the suppliers, and, based on the speci?c situation ofthe suppliers, conduct on-site audits, sample testing, trialproduction, and other procedures before cooperation,and conduct a comprehensive evaluation of thesuppliers.For core and critical component suppliers, onlythose who pass the on-site quality managementcapability audit can be admitted, and they will bemanaged according to the audit results.We sign legal documents such as the " Supplier Anti-Bribery Commitment", "Clean Cooperation Convention"and "Quality Assurance Agreement" with suppliersto promote the concept of responsible supply chainmanagement and supervise suppliers to conductbusiness activities in compliance with requirementsrelated to human rights protection, business ethics, safetyand environmental protection, and quality.
Established management systems such as"Supplier Performance Management Regulations,"" Monthly Supplier Product Quality EvaluationDetails," and "Supplier Quality PerformanceEvaluation Rules," incorporating quality, price,delivery time, and service into the supplierassessment mechanism. Performance evaluationand comprehensive assessment scoring forsuppliers are conducted on a monthly, semi-annual, and annual basis to promptly identifysupplier issues. Based on the annual assessmentscores, suppliers are categorized into fourlevels: A, B, C, and D. The rating results serveas the basis for next year's production capacityallocation and eligibility for procurementpreferential policies. Suppliers rated as A levelare commended and rewarded, while those ratedas C or D level are provided with improvementsuggestions and required to rectify and providefeedback. Cooperation is terminated for supplierswith repeated unsatisfactory ratings, therebyreinforcing supplier accountability and fosteringmutually bene?cial and long-lasting businesspartnerships.For all suppliers of important components orsafety parts, the Quality Management Departmentdevelops an annual on-site quality managementcapability audit plan at the beginning of eachyear and organizes our implementation, coveringaudits at least once every three years. Basedon the requirements of the ISO9001 QualityManagement System, supplier quality systemaudit procedures, and relevant product lawsand regulations, combined with factors suchas supplier type, factory scale, and processcomplexity, on-site audits and evaluations ofsupplier quality management capabilities andquality systems are conducted. The audits focuson the overall capabilities of suppliers in designand development, raw material procurement,production control, and quality management.After completing the audit, communication withthe supplier is conducted on-site, and the progressof rectifying non-conformities is continuouslytracked and veri?ed. For suppliers withimprovement awareness or poor foundations,assistance is provided through methods suchas providing technical materials, guiding theestablishment of tooling, dispatching technicalpersonnel or inspectors for on-site guidance,training professional personnel, and coachingon quality management systems, activelyassisting in supplier technical improvement andenhancing quality management capabilities.During the reporting period, a total of 34 supplierquality management systems were audited, andcorresponding guidance was provided for theissues identi?ed with the suppliers.
Supply Chain Management
Distributors Management
Supplier Evaluation and Admission
Supplier Assessment and Evaluation
throughout the year, with over 1,600 participants.In terms of distributor assessment and evaluation, wehave established internal management documentssuch as "Distributor Service Assessment", "IndependentInstallation Distributor Assessment Plan" "ServiceEngineer Grading Scheme" "Annual Agent EvaluationMethod," "Independent Installation Agent AssessmentPlan," and "Agent Service Sales Assessment." Thesedocuments incorporate dealer assessment andevaluation systems, which include the completion rateof service sales, service team building, service quality,customer satisfaction, equipment timely acceptancerate, installation service contractor team building,installation capability, installation quality, safetymanagement, training duration, and other aspects.We conduct regular assessments and evaluationsof distributor and installation service contractors,quanti?es their service quality levels, clari?es theirservice work objectives, and comprehensively improvesthe level of distributor customer service.
Specialized Training
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Highlight
Specialized Training on Operation and Maintenance of Integrated Asphalt MixingEquipment for Malaysian Distributors by NFLG Mixing Institute
In 2023, for the ?rst time, NFLG Mixing Institute conducted a specialized training program on the operationand maintenance of integrated asphalt mixing equipment for service personnel of Malaysian distributors,utilizing a bilingual training mode in both Chinese and English. The Institute 's team of senior instructorsdelivered targeted teaching on asphalt equipment structure and production processes, control systems, andasphalt-related structural components, helping Malaysian distributor service personnel comprehensivelygrasp knowledge and skills related to the operation and maintenance of asphalt mixing equipment.
We have established the "Quality Risk ManagementProcedure " to establish a sound supply chain riskmanagement system covering various departments andbusiness chains. In response to potential risks in supplieradmission, operation, quality, and commercial aspectsof production and business activities, each department isresponsible for conducting risk identi?cation, analysis, andevaluation. Based on the identi?ed risk levels, targetedrisk control measures are implemented. Through internalaudits, management reviews, internal inspections, and
Supply Chain Risk Management
other forms, the e?ectiveness of existing risk controlmeasures is assessed to determine whether further riskcontrol measures are necessary. Annually, we conducttimely supervision and inspection of the operation statusof the risk management process based on internal andexternal environmental developments and changes. Thisis to ensure the e?ective implementation of risk controlmeasures and to prevent sustainable development riskstransmitted through the supply chain.
Explanation of Main Supply Chain Risk Management MeasuresRisk PointRisk DescriptionResponse
ProductDesign
Failure to promptly and accurately understand updates to productstandards and regulations results in products not meetingthe latest requirements stipulated by product standards andregulations (such as environmental and safety requirements)
We stay abreast of the latest updates on productstandards and legal regulations, promptlyupdate technical documents, inspectionprocedures, and other relevant documents asneeded, and organize relevant training sessions.MarketingEvent
Equipment experiences major quality or safety incidents and isexposed by the media, or receives administrative penalties fromgovernment authorities
We adhere to certi?cation or accreditationfor quali?ed safety components and providescheduled inspection services.
MarketingEvent
Exaggeration in marketing, advertising, or promotional content,or suspected infringement of others' intellectual property rights,results in sales prohibition or administrative penalties fromgovernment authorities.
All advertising campaigns must be rigorouslyreviewed and approved before publication,in compliance with legal requirements andregulations.
Highlight
NFLG Mixing Institute Distributor Specialized Training on the Operation of Main Shaft Endof Sand Making MachineThe disassembly, inspection, and installation processes of themain shaft end of the sand making machine are skill bottlenecksfor dealers. In 2023, NFLG Mixing Institute conducted specializedhands-on training on the operation of the main shaft end of thesand making machine for service personnel from distributornationwide. The training focused on hands-on practice, providinga quick introduction to the mechanical structure principle ofthe sand making machine, assisting dealer service personnel insolving operational issues, reducing problems during installationor disassembly, and improving their on-site e?ciency in workingon the main shaft end of the sand making machine.
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We strictly adhere to quality management requirementsand have established a comprehensive qualitymanagement system throughout the product lifecycle.We follow rigorous inspection standards to ensurethat products meet high-quality standards throughoutthe design, manufacturing, and delivery processes,guaranteeing their reliability, safety, durability, compliance,and quality stability. We have obtained ISO 9001 qualitymanagement system certi?cation.
Responsible Products
2023 Product Quality Management Objectives/Targets
ProjectStatistical methods
Objective/Target
CompletionStatus
Customer satisfactionSatis?ed Customers/Customer Survey Pool≥95.00%95.96%Cumulative weightedpass rate of productinspections
Number of First-pass Items/Total Inspection Items*100%
≥99.60%99.98%Compensation Amounton Quality Issues to SalesRevenue Ratio
Compensation Amount on Quality Issues/ SalesRevenue *100%
≤0.12%0.01%Workshop Raw MaterialReturn Rate
Value of Returned Raw Materials Due to QualityIssues/Total Purchased Value
≤0.40%0.03%Number of Quality IssuesReported per EquipmentInstallation/Post-salesIssues
Total Post-sales Issues /Total Numbers ofequipment installed
≤1.830.00Number of Serious Non-conformities in ExternalAudits and RegulatoryInspections
∑(Items Number of Serious Non-conformities)00Calibration CompletionRate of InspectionMeasuring Instruments(Internal + External)
Monthly Actual Calibration of Inspection Measuring
Instruments/Monthly scheduled Calibrations of
Inspection Measuring Instruments *100%
100.00%100.00%
We have established the "Inspection Procedure ofPurchased Parts," which clari?es the inspection methods,items, tools, sampling rules, judgment criteria, exemptioncriteria, etc., for each category of purchased materials. Tostrengthen the management of purchased parts quality,the following measures are implemented:
Inspection of IncomingPurchased Parts
For products not speci?ed in the procedureor products that cannot be inspected uponreceipt, veri?cation is carried out beforeshipment, during production and equipmentinstallation.For new products or ?rst-time inspectedproducts from new suppliers, an applicationis made through the BPM system'sprocurement item sample trial productionapplication process, and the executionof standards or technical speci?cationsrecognized by the design and technology isused to verify sample production.For products and items subject to periodicsampling inspection, an annual plan forperiodic sampling inspection is formulatedand implemented. If the inspection fails,inventory products must be returned or fullyinspected. For products already producedand shipped, the ?ow must be traced, andquality impacts tracked to ensure thatproducts already in operation do not poseany safety hazards.Additionally, we have established a defect feedbackreward mechanism, which encourages relevant partiesin the production, manufacturing, installation, andcommissioning processes to submit feedback afteridentifying issues related to process improvement, qualityenhancement, product delivery, drawing correction, safetypublic account. We categorize defects and assign themto the responsible departments for problem analysis andthe formulation of improvement measures. The QualityManagement Department continuously monitor thestatus of the process. We comply a monthly report thatincludes the types and quantities of feedback problemsand the closure rate, and rewards the personnel involvedin the feedback that is ultimately accepted. It encouragesand supports proposal improvement feedback actionsand promotes the formation of long-term mechanismsfor product and management optimization. During thereporting period, the "Defect Management" module ofRDM system collected a total of 225 defect feedback cases,with a comprehensive closure rate of 91.6%.
We implement a "customer-?rst" service philosophy,always placing customers at the center, empoweringservices with technology, focusing on customers'technical pain points and development constraints,continuously enhancing our research and development,design, manufacturing, and service capabilities, andproviding professional and customized solutions fordi?erent product application scenarios. Additionally,we actively establish customer feedback mechanisms,continuously improving and enhancing product qualitythrough communication and feedback with customers,meeting customer needs and expectations. With adeep understanding of professional knowledge andcustomer requirements, we earn customers' respect andcontinuously create new value for customers. During thereporting period, we conducted a customer satisfactionsurvey, achieving a satisfaction rate of 95.96%.
Excellent Customer Service
95.96%
Customer Satisfaction Rate
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HighlightMixing Institute Specialized Training for Commercial Concrete Customers
Concrete mixing plants are an indispensablepart of China's infrastructure development. Theprofessional training of employees in concreteproduction enterprises is crucial for long-termdevelopment. It not only concerns the imageand reputation of the enterprise but also a?ectsconstruction safety and quality. Our MixingInstitute o?ers specialized training for commercialconcrete customers nationwide. Covering variousdimensions such as key component maintenance,commercial concrete electrical operating systems,practical operations, service inspections, capacityupgrades, AI intelligent management, low-carbon environmental protection solutions, smartfactories for green building materials, and safetyproduction education for commercial concreteequipment, comprehensive courses are arrangedbased on the actual situations of the trainees. Thisensures that trainees understand the structureand production process of commercial concrete
Provide a
customer service system witha dedicated marketing service team availablearound the clock, o?ering one-stop professionalservices including branch introductions, productand equipment consultations, technical support,product complaints, service complaints, repairs,and spare parts consultations, ensuring swiftresponses, communication, and resolution ofcustomer needs.
Provide on-site free training for customersincluding operation, maintenancetroubleshooting, and routine maintenance duringinstallation, and ensure smooth operation ofequipment through proactive periodic follow-up visits, tracking and servicing each piece ofequipment regularly.
Implement a stable and e?cient cloud servicesystem based on automation control andIoT technology, collect data on equipmentoperation conditions and component healthstatus, send the data to cloud servers via theinternet or wireless networks, analyze the dataprofessionally by the technical service team,provide customers with proactive remotediagnosis and maintenance information for theirequipment, achieve worry-free stewardship-styleequipment service on the cloud platform, ando?er value-added services such as customizedanalysis and recommendations for energysaving, cost reduction, e?ciency improvement,quality enhancement, and operational assistancemanagement according to customer needs.
Establish regulations for " Equipment DeliveryManagement and Free Warranty ManagementRegulations," whereby customers can requestafter-sales service for any problems occurringduring the installation and commissioningperiod or the equipment warranty period. Uponveri?cation by the distributor, the industrialservice department, and quality department,products and parts covered by the warranty willbe replaced or repaired free of charge. For issuesnot covered by the warranty, we also provide paidservices. The quality management departmentconducts monthly statistics on processedfeedback, conducts inspections on problematicproducts, comprehensively analyzes product issuesymptoms, promptly recti?es product defects,ensuring e?ective satisfaction of customerneeds, and continuously improving customersatisfaction.
Establish an "Expert Online" customer serviceplatform, bringing together technical experts in?elds such as cement concrete mixing, dry mortarmixing, asphalt mixing, etc., to promptly addressusers' technical queries regarding equipment,production, operation, and management.
Encourage customer personnel to visit for learningpurposes and actively cultivate industry-orientedtalents for customers. Conduct customizedtechnical training courses through our MixingInstitute platform.
Establish
sales outlets and
partscenters nationwide, offering consultative salesservices both online and o?ine to customers.
equipment, enhance their knowledge, skills, andpractical application abilities in daily maintenanceand key points, and help them solve equipmentproblems more quickly and e?ectively.
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We prioritize information technology development and have graduallyintegrated it into all aspects of business operations, production, andsales. Through the continuous construction of stable and reliabletechnical infrastructure and comprehensive integrated technologyplatforms, we provide vital support and technical guarantees forthe e?ciency and quality control of product production. In termsof information security, we strictly adhere to the "CybersecurityLaw of the People's Republic of China" and other relevant laws andregulations, establishing a series of internal information securitymanagement systems such as "Information Security Policy,""Information Security Management System," "Encryption SystemManagement System," "Data Center Management System," "ComputerStandardization Installation Speci?cations," and "Network StandardSpeci?cations" to direct and regulate our information securitymanagement tasks. We continually improve our information securitymanagement mechanisms to enhance the level of informationsecurity management and ensure enterprise information security.
Information Security and Privacy Protection
We have established an information security team led bythe General Manager and the Deputy Leader, who is thedirector of the company's Information Center. The teammembers include operational sta? from the InformationCenter and designated information security o?cers fromvarious departments. These security o?cers promptlyreport any information security risks that occur in theirdepartments to the Information Center for handling.General incidents related to information security arereported to the director of the Information Center, andsigni?cant incidents are escalated to the General Manager.We conduct our information security management workin accordance with internal policies, covering physicalsecurity, terminal security, network security, applicationsystem security, data security, and operational security.Measures such as ?rewalls and antivirus software areused for real-time monitoring and prompt handling ofinformation security risks and vulnerabilities. We enforceinternal and external network access management,conduct regular backups of business data and check the
We have established a network information securityemergency response leadership team, led by the directorof the Information Center, and including heads ofvarious departments and related personnel. This teamis responsible for the overall planning, coordination,and decision-making of information security emergencyresponses. We follow the principle of "the person in chargeis responsible; the operator is accountable," implementingan information security accountability system with activesupport and assistance from all departments in emergencyresponse e?orts.We have developed a "Network and Information SecurityIncident Emergency Response Plan," which is activatedin response to potential or occurring network andinformation security public emergencies. Departments arerequired to report to the emergency response team in atimely manner, with signi?cant and particularly signi?cantincidents subject to situation progression reportingand daily reporting systems. After receiving a report,the emergency response team evaluates the incident'sseverity and initiates the appropriate emergency plan.After the emergency response is activated, the team leadsInformation Security Management
Network Security EmergencyManagement
backup systems, and strictly implement ?le encryptionand decryption mechanisms, di?erentiating encryptionlevels according to di?erent business needs. Regularinventory checks of computers, servers, and networkequipment are conducted, along with audits of companyand departmental personnel's operations. Informationsecurity risk assessments and reviews are routinelycarried out, with internal and external informationsecurity inspections and IT audits used to strengthen theassessment, monitoring, and response to informationsecurity risks. We have implemented additionalinformation security measures like intrusion detectionsystems, quarterly network security checks, irregularinspections and optimizations of information systems byexternal bodies, annual IT audits, and updates to antivirusdatabases and rules for new viruses and vulnerabilities toensure the stability and security of information systems.Throughout the reporting period, there were no incidentsof penalties due to violations of information securitymanagement regulations or breaches of customer privacy.
and coordinates the emergency response e?orts; oncethe operation concludes, an incident investigation teamis formed to conduct a thorough investigation of theincident and its management, draw lessons, and optimizethe emergency response plans to enhance our ability tomanage information security incidents e?ectively. Regularinformation security emergency drills are conducted tocontinuously improve emergency response capabilities.During the reporting period, we carried out quarterlydatabase recovery emergency drills for the SAP system totest the response speed and data backup availability.
We highly value the construction of an informationsecurity culture. New employees undergo informationsecurity training to familiarize them with informationsecurity knowledge and cultivate awareness. Throughchannels such as Tencent Communicator, OA, and email,we communicate our information security policiesand systems to all employees and sends informationsecurity risk alerts. This initiative educates all sta? aboutinformation security and enhances the informationsecurity management capabilities of relevant departmentpersonnel.
Information Security Educationand Training
IT Training
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We strictly adhere to the requirements of the "Advertising Law of the People's Republic of China" and other relevant laws andregulations, following the principles of responsible marketing. We ?rmly oppose false and misleading marketing tactics andare committed to disseminating true, accurate, and compliant product information and marketing content. We ensure theaccurate communication of product features, performance, and safety information, allowing customers to make informeddecisions based on complete and truthful information. Additionally, we actively advocate for green marketing by emphasizingthe environmental attributes and sustainable value of our products, guiding both the market and customers to participatein environmental protection. For quantitative data in marketing content, it is reviewed by our ?nance department beforepublication to ensure the accuracy and truthfulness of the information. During the reporting period, there were no incidents offalse advertising or inappropriate marketing.
We actively participate in industry association activities and are involved in drafting or participating in the drafting of national/industry standards. We discuss industry trends together with enterprises, experts, scholars, and policymakers in the industry,and share corporate best practices and experiences. Through our NFLG Mixing Institute platform, we e?ectively integrate theachievements of domestic and foreign industry research institutions and universities, closely aligned with industry-leadingpractical experience, to provide innovative theories, experiences, and value for our end customers' products. Simultaneously,we collaborate with industry partners to discuss opportunities, providing a platform for practical technology exchanges in theindustry and fostering practical and skilled talents for high-quality, sustainable development.
Responsible Marketing ActivitiesPromote Industry Development
Participation In Industry Association
Association NamePosition
China Construction Machinery AssociationExecutive DirectorChina Construction Machinery Association Road Machine BranchVice PresidentChina Construction Machinery Association Concrete Machinery Sub-AssociationExecutive DirectorChina Building Materials Federation Premixed Mortar Sub-AssociationVice Chairman of the Board
China Concrete & Cement-based Products AssociationVice PresidentChina Concrete & Cement-based Products Association - Ready-Mixed Concrete Sub-AssociationVice President
China Aggregates AssociationVice PresidentGypsum Association of China Building Materials FederationMember
China Highway Construction AssociationDirectorChina Building Materials Enterprise Management AssociationDirectorChina Building Materials Enterprise Management Associationi-Brand Management BranchDirectorChina Bulk Cement Association Of Popularization & Development Ready-Mixed Mortar
Professional Committee
Deputy DirectorChina Bulk Cement Association Of Popularization & Development Ready-Mixed Mortar
Equipment Technology Committee
Deputy DirectorChina Bulk Cement Association Of Popularization & Development Construction Professional
Committee
Deputy DirectorChina Bulk Cement Association Of Popularization & DevelopmentVice Chairman of the BoardChina Bulk Cement Association Of Popularization & Development Ready-Mixed Concrete
Professional Committee
Deputy DirectorChina Recycled Aggregate AssociationVice PresidentChina Highway & Transportation Society Road Construction Machinery Sub-AssociationMemberProfessional Committee for Industrial Solid Waste Application TechnologyDirectorChina Aggregates Association - Construction Solid Waste Utilization Sub-AssociationVice President
Highlight
Digital Marketing CampaignsWe are actively expanding ouronline channels through platformslike WeChat O?cial Accounts andTikTok, where we timely publishthe latest product information,technological developments, andindustry news. We also provideprofessional consulting servicesand customer support, enablingcustomers to easily accessinformation and communicate.By leveraging the advantages ofsocial media platforms, we canmore e?ectively gather customerfeedback and market demands,promptly adjust our marketingstrategies and product directionsto better meet customerneeds, and enhance customersatisfaction. Simultaneously, westrictly monitor online contentand advertising, adhering tofair competition market rules,and establishing a responsiblecorporate image.
Multimedia Brand Matrix
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China Construction Machinery AssociationDirectorMetallurgical Mines’ Association of ChinaMemberChina Concrete & Cement-based Products Association9th Vice President of CouncilChina Construction Machinery Association Road Machine BranchVice PresidentChina Society of Building Materials Industry Economy Special Committee for Solid Waste
Disposal and Resource Utilization of New Materials
Our Chairman Mr. Fang Qingxi waselected the 1st Board Executive DirectorChina Society of Building Materials Industry Economy Special Committee for Solid Waste
Disposal and Resource Utilization of New Materials
Executive Director
协会名称担任职务
Compilation or Participation in the Formulation of National/Industry Standards
CodeStandardsCategory
Roles inParticipation
GB51176-2016Code for design of dry-mixed mortar production lineNational-levelCompilationGB51186-2016Code for design of machine-made gravel aggregate plantNational-levelCompilationGB/T10171-2016
Building construction machinery and equipment-Concrete mixing
plant(tower)
National-levelCompilationGB/T17808-2010
Road construction and maintenance machinery and equipment &
Asphalt mixing plant
National-levelCompilationGB/T30752-2014
Road construction and maintenance machinery and equipment &
Asphalt mixing plant-Safety Requirements
National-levelCompilationJB/T12816-2016
Building construction machinery and equipment-Environment-
friendly concrete mixing plant(tower)
Industry-levelCompilationJBT11185-2011
Building construction machinery and equipment-Drymitxed mortar
mixer
Industry-levelMain compilationJBT11186-2011
Building construction machinery and equipment-Dry-mortar mixing
plants
Industry-levelMain compilationJCT2089-2011
Technical speci?cation for manufacture technics and application of
dry-mixed mortar
Industry-levelCompilationJT/T270-2002Batch type asphalt mixing plantIndustry-levelCompilationSB/T11129-2015Dry-mixed mortar screening equipment technical speci?cationIndustry-levelCompilationTB/T3291-2013Ballastless track cement emulsi?cation bitumen mortar truckIndustry-levelCompilationT/CBMF38-2018Aggregates for high performance concrete
Association-level
CompilationT/CCMA0066-2018Asphalt mixing plant--Environmental emission limits
Association-level
CompilationT/CCMA0067-2018Asphalt mixing plant-Safety mark
Association-level
CompilationGBT 14684-2022Sand for constructionNational-levelDraftingGBT 14685-2022Pebble and crushed stone for constructionNational-levelDrafting
Highlight
15th Road Construction and Maintenance Technology Forum
Highlight
24th IE Expo China
In 2023, we co-organized the 15th Road Constructionand Maintenance Technology Forum, jointly hosted bythe Highway Research Institute of Highway Ministry ofTransport and the Road Engineering Branch of ChinaHighway & Transportation Society. The forum aimedto promote the sharing and exchange of advancedacademic achievements, accelerate the industrializationand engineering application of road science andtechnology innovations, and support the high-qualitydevelopment of road engineering construction. Mr.Liu Zhibin, our Director of Asphalt Products Marketing,delivered a keynote report on "Low-Carbon Technologyin Asphalt Mixing Plants" at the forum, sharing the latest
In 2023, we were invited to participate in the 24th IE Expo China, where we exhibited comprehensive solutionsfor the recycling of construction waste across the entire industry chain, including solutions for demolitionwaste, renovation waste, and sludge residue resource utilization, as well as standout products like densityscreens, positive pressure lightweight material separation equipment, and construction waste automaticsorting robots. These exhibits provided new industry ideas for e?ectively solving construction wastemanagement challenges and producing high-value recycled products, facilitating in-depth exchanges anddiscussions on cooperation with experts from various ?elds.
R&D achievements in asphalt mixture recyclingtechnology with the industry.
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Highlight
2023 World of Concrete Aisa (WOCA)
Highlight
The 9th Guangzhou InternationalAggregates, Quarrying Tailings &Construction Waste Disposal Exhibition
Highlight
2023 Construction Indonesia &Mining Indonesia
In 2023, we were invited to exhibit at the 2023 Worldof Concrete Aisa (WOCA). Our exhibits covered rawmaterials, ?nished products, equipment, and integratedtechnology solutions, showcasing our low-carbon andintelligent R&D achievements in the dry mix mortar andconcrete ?elds through live video demonstrations, modeldisplays, interactive experiences, and explanations byprofessional technicians. We also shared and exchangedviews on industry development trends and cutting-edgetechnologies with various industry stakeholders.
In 2023, under the theme "Breaking NewGround, Carving the Future," we showcasedgreen and intelligent material processingsolutions and three premium materialhandling equipment pieces (NFI200RStrack-mounted mobile impact crusherscreen, VC series multi-cylinder hydrauliccone crusher VC1500, NT series horizontalscreen 3NTV2560) at the 9th GuangzhouInternational Aggregates, Quarry Tailings &Construction Waste Disposal Exhibition. As aprovider of green recycling building materialssolutions, we presented our products tomore than 170 domestic and internationalleading aggregate equipment companiesand attendees, while also conveying ourcommitment to green, low-carbon, high-quality development.
In 2023, we were invited to participate inthe 2023 Construction Indonesia & MiningIndonesia. As a global provider of greenrecycling building materials solutions, weshowcased products such as the NFJ1175Tracked Mobile Jaw Crusher, NFI1313Tracked Mobile Impact Crusher, NFS350Tracked Mobile Screen, JSL2350 ConcreteMixer, and LBGZ Integrated Asphalt MixingEquipment. We demonstrated the e?cientstability, green low-carbon features, andintelligent convenience of our productsthrough real-world cases in Jakarta. At thisexhibition, we explored the concept of "NewTrends in Industrial Sustainability" with over500 exhibitors from 32 countries and regionsworldwide, leading high-quality industrydevelopment.
Employees
We ?rmly believe that the developmentof us is inseparable from talent. Weplace high importance on nurturing anddeveloping talent, o?ering employeescompetitive compensation, bene?ts, andbroad career development opportunities.We actively uphold the fundamental rightsand interests of our employees, care forthem through concrete actions, and sharethe fruits of corporate development withthem. Embracing the principles of fairness,harmony, diversity, inclusiveness, and co-creation of value, we are committed tobuilding the "NFLG Family," a nurturingenvironment that attracts, retains, anddevelops top-quality talent.
We respect the content and requirements of humanrights protection stated in the "International Bill ofHuman Rights," "UN Guiding Principles on Businessand Human Rights," "Universal Declaration of HumanRights," "OECD Guidelines for Multinational Enterprises,"and the "Convention on the Elimination of All Forms ofDiscrimination Against Women." We strictly abide by the"Labor Law of the People's Republic of China," "LaborContract Law of the People's Republic of China," and thelaws and regulations of the locations where we operate.We have established a "Human Rights Policy" and committo preventing any form of human rights abuse. Throughthe implementation of the "Employee Handbook" and"Human Resources Management System," we providetraining for new employees and advocate againstdiscrimination, harassment, and violence, continuouslystrengthening our management of human rights risks.During the reporting period, we did not incur anypenalties or su?er losses due to violations of labor laws oremployment discrimination laws.
Human Rights Protection
In our employment practices, such as recruitment,promotion, and evaluation, we adhere to the principlesof fairness and justice. We do not discriminate based ongender, age, nationality, ethnicity, region, race, religion,disability, marital status, reproductive status, or sexualorientation. We pay special attention to the rights offemale employees by providing equal compensation,bene?ts, and employment opportunities. We implement
Equal Employment
EqualEmployment
Anti-Discrimination and
Anti-Harassment
Prohibition of ChildLabor and Forced
Labor
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Discriminatory actions
Harassment actions
Violent actions
MaleFemale
aster and aboveBachelorDiploma Others
86%14%
23%62%
15%
3%
33%15%
49%
Employee
GenderDistribution
Employee Age
Distribution
EmployeeEducationDistribution
Below 30 30 to 50 Abowe 50
We conduct compliant recruitment activities according to the"Human Resources Management System." Every candidate'sscreening, interviewing, and hiring are carried out followingstandardized procedures, with decisions made based oncomprehensive evaluations of personal qualities, professionalskills, and ethical behavior. In the case of employee referrals,if the referring employee is a direct relative of the candidate, aspecial declaration must be made to ensure the fairness andtransparency of the recruitment process.
Through our "Human Rights Policy," we declare ourcommitment to eradicating all forms of discrimination,harassment, and violence, including but not limited toposture, language, and physical contact. We opposegathering crowds to disrupt social order, misuse ofauthority, or improper intervention in employee a?airs.Neither internal nor third-party security personnel mayuse violence, and illegal or cross-gender searches areprohibited.
Through our "Human Rights Policy," we resolutelyoppose any form of child labor and forced labor, pledgingnot to employ minors under the age of 18 in jobs thatendanger their safety or health. We manage workinghours in accordance with relevant laws and regulations:
functional positions adhere to a standard eight-hour,?ve-day workweek; production positions have a dualfeedback mechanism for working hours, with the humanresources department reporting attendance hours andthe production o?ce/plan department reporting plannedhours. By comparing and intervening in these two types ofhours, we arrange reasonable working times for front-lineemployees, ensuring at least one day o? per week.
We encourage employees who experience or witnessunjust treatment to report to their immediate supervisorsor the human resources department. Upon receiving acomplaint, the relevant department should initiate animmediate investigation, gather evidence, and protectthe identity of the complainant and the victim. If theinvestigation con?rms the allegations, we will takedisciplinary action against the involved parties based onthe severity of the incident.
include but are not limited to those involvingreligion, race, skin color, region, ethnicity, age,gender, disability, privilege, marital status,employment opportunities, and bene?ts, as well asdefamatory remarks.
includes but is not limited to sexual requests,insinuations, provocations, or discomfortingphysical contact and other behaviors that hinder anemployee’s ability to perform their duties.
include but are not limited to ?ghting, brawling,threats, intimidation, verbal abuse, physicalpunishment, and abuse.
Anti-Discrimination and Anti-Harassment
Prohibition of Child Labor andForced Labor
We respect the constitutional and legal rights of employeesto democracy, free speech, freedom of association, andcollective bargaining. We fully guarantee employees'rights to be informed, participate, express themselves, andsupervise, and we have legally established trade unionorganizations. Through various employee communicationchannels such as face-to-face meetings, team meetings,workshop surveys, telephone, email, and internal o?cesystems (Tencent RTX), we strengthen communicationbetween employees and their supervisors and the HRdepartment. We encourage employees to actively expresstheir opinions, suggestions, and complaints aboutcompany management and operations, and we promptlyaddress and provide meaningful feedback on theinformation received, e?ectively addressing the concernsof employees.
We continuously build a comprehensive, multi-leveltraining and development system for our employees,creating opportunities for continuous learning anddevelopment. We regularly assess industry marketdynamics to provide employees with salaries and bene?tsthat are fair internally and competitive externally. Throughcomprehensive performance assessments and promotionmechanisms, we provide clear career development pathsfor employees, fully stimulating organizational vitality.
Employee Communication
Employee Development
statutory rights such as maternity leave and breastfeedingleave, and ensure that female employees are notassigned to jobs that are prohibited due to physiological
characteristics or involve intensive labor, thereby reducingand addressing the special di?culties faced by womenduring pregnancy, childbirth, and breastfeeding.
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We have established three major career developmentpathways: management, technical, and skilled trades. Eachpathway has di?erent grades, and we have developedsystems such as the "NFLG Engineer Rating Scheme" andthe "Front-line Skills Level Assessment System" to setdiverse career paths and continuously standardize talentstandards, encouraging healthy competition and creatingan open, fair, and just career development environment tobuild a talent pipeline for the company’s development.We o?er front-line technical sta? two upgrade assessmentopportunities annually, aligning with employeeevaluation system results and performance. We matcheach job level's experience and capability requirementswith corresponding salaries and skill allowances foreach skill level; employees who do not participate inthe grading review or who fail both theoretical andpractical evaluations are downgraded, truly encouragingemployees to enhance their technical skills. Engineerpromotions utilize a combination of self-nomination andrecommendation, with regular evaluations conductedannually. Participating employees must write a "PromotionReport" detailing their understanding, thoughts, and valuecontributions to completed projects, and present it to areview committee, with the employee's department andHR department jointly assessing through review meetingsand defenses. During the reporting period, 19 employeeswere promoted through the engineer rating process, witha pass rate of 82.6%.
We develop and oversee the implementation ofannual employee training plans in line with corporatedevelopment requirements, providing trainingopportunities in various formats, including online ando?ine, theoretical and practical. Training includes pre-employment training, skills training, and managementenhancement training, helping employees discovertheir potential and improve their job competency andprofessional demeanor.We provide employees with a variety of learning resourcesand foster a proactive learning atmosphere. We haveformed a high-level, professional internal training team,encouraging employees to share their expertise andpersonal experiences internally, establishing an internaltraining case library. Additionally, we hire professorsfrom higher education institutions or professionaltraining organizations to teach employees and supporttheir participation in external training, inspections,observations, and exchanges, continually fostering anenterprising learning culture.During the reporting period, as we further advanced ouroverseas market layout plans, to enhance employees'English pro?ciency, we established a weekly "EnglishCorner" at the Mixing Institute, hiring specialized foreignteachers and encouraging interested employees toparticipate actively. Throughout the year, we invested
0.51 million RMB in employee training, organizing 50
training sessions attended by 3,526 participants, totalingapproximately 16,996 training hours.
Career DevelopmentEmployee Training
Internal Auditor Training
Highlight
2023 Management Trainee Development Program
Highlight
Capability Enhancement Training Program — "Squat Management Workshop"
For newly recruited management trainees, we provide three major career paths: sales, technical, andmanagement, with a customized probationary period training plan. The plan consists of ?ve phases, each withdi?erent objectives aimed at output results, following the "721" growth rule (70% learning by doing + 20%intensive training + 10% self-study), enhancing trainees' competence in knowledge, skills, and professionaldemeanor. The HR center tracks the training progress of the trainees throughout their probation, conductingmonthly one-on-one interviews to understand their adaptation and learning progress, providing feedback onthe training process to mentors and department managers, and further enhancing the training e?ectivenessof the management trainees.
The "Squat Management Workshop" targets front-line managers transitioning from business coreto management roles, focusing on seven corecompetencies of a manager: professional ethics, goal-setting, process tracking, results attainment, team-building, team training, and culture-building. Throughvarious training forms such as o?ine classes, onlinetraining, practical training, study group discussions,scenario-based training, and task-oriented training,the workshop helps front-line managers develop theright management mindset and improve their goalalignment and managerial skills.
Business GuidanceIdeologicalGuidanceMentorshipEvaluation andAssessment
Life AssistancePsychologicalCounselingDaily Managementand Tracking
Stage Business Mentors
Internship Consultant
HR Career Mentor
Research and Development Internship -Professional CoachingEngineers Level A and Above as Mentors
Job Rotation LearningPeriod - Rotation MentorMiddle Management asMentors
Invested
0.51
million RMB in employee trainingOrganized
training sessionsAttended by3,526
participantsApproximately16,996
total training hours
Management Trainee Mentorship System
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We strictly adhere to relevant national laws andregulations and have established management methodssuch as a "Human Resources Management System" toensure that the working environment, conditions, andhours of our employees comply with legal standards. Wecommit to providing compensation that meets or exceedsthe local minimum wage standards and ensure equal payfor equal work for female employees.We follow the principles of fairness, competitiveness,motivation, a?ordability, and con?dentiality to establish acompensation system centered on salaries with bonusesas supplements. Based on our operational status andemployee performance, we have developed annualadjustments to salary standards, irregular adjustments,and immediate personal pay raises to fully leverage theperformance goal orientation mechanism and a scienti?ccompensation system to positively motivate employees.Additionally, we have set up various special awardsand recognition mechanisms, such as quarterly teamexcellence, annual individual excellence, and annual teamexcellence awards to stimulate employee potential andpassion, helping them receive fair incentives, achievelong-term personal growth, and enhance overall workquality. We have established long-term service awards torecognize employees who have continuously worked forten or twenty years, motivating them to grow alongsidethe company.To inspire enthusiasm for work and e?ectively attract
We o?er a comprehensive and diversi?ed bene?ts system for our employees. On top of legally mandated leaves such asmarriage leave, maternity leave, breastfeeding leave, sick leave, bereavement leave, and annual leave, we provide additionalcoverage including accidental injury insurance, mutual medical aid insurance, employer liability insurance, and tra?caccident insurance. For expatriate sta?, we purchase personal accident insurance. We also provide bene?ts such as canteens,dormitories, work uniforms, holiday bene?ts, birthday gifts, employee trips, a team sunshine sharing plan, health check-ups, and Friday return home shuttle services. Furthermore, we actively coordinate local resources to assist employees withissues such as their children's education and have established a mutual medical aid project to secure medical health care foremployees and their families.
Employee CompensationEmployee Bene?ts
Highlight
Front-line Employee "Point System"AssessmentAt our Xiantao base, we use a "Point System"for the piece-rate management of front-line workers, including work volume points,quality points, skill points, 5S points,improvement and innovation points,equipment maintenance points, and labordiscipline points. This system ensures fairand just adjustments to worker pay throughscienti?c and rational evaluation.
and retain top talent, we have established a long-termincentive mechanism and implemented an employeestock ownership plan (ESOP) to stimulate the intrinsicdrive for enterprise development, share the company'soperational achievements with employees, and achievea shared risk and bene?t model with them. As of the endof the reporting period, our ESOP included 59 employees,such as core technical personnel, key backbone sta?,strategically important new hires, and executives,collectively holding 8.78% of the company's shares.
Highlight
Employee Medical Mutual Aid Project
We have set up a medical mutual aid project foremployees, providing subsidies for employees inneed, aiming to resolve their practical di?culties.During the reporting period, approximately 31individuals were reimbursed through this project,with a total subsidy amount of 61,534 RMB. In2023, we provided mental health treatmentbene?ts to an employee who was undersigni?cant psychological stress and unable tocontinue working in their position. We monitoredthe situation closely, coordinated resources,and accompanied the employee to the hospitalfor registration, psychological consultation,assessment, arranged for subsequent treatment,and covered related costs.
Quanzhou Headquarters Canteen
Xiantao Base Canteen
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We adhere to the occupational health and safety policy of"safety ?rst, prevention foremost; risk control, comprehensivemanagement; continuous improvement, safe development,and healthy living." We strictly comply with the "Law of thePeople's Republic of China on Work Safety" and other relevantlaws and regulations, continuously improving our managementsystems and regulations regarding work safety and occupationalhealth. We strengthen safety supervision and inspectionsand continually enhance our occupational health and safetymanagement levels. During the reporting period, we haveachieved ISO 45001 Occupational Health and Safety ManagementSystem certi?cation. Our Quanzhou headquarters passed thereview for Level 2 enterprise work safety standardization, andour Xiantao base passed Level 3. We also place high importanceon and continuously strengthen safety management for dealersand installation service contractors, actively creating a safe andhealthy working environment to ensure stable operations. Duringthe reporting period, there were no deaths or serious accidents,no incidents of severe injury or above, and the incidence rate ofoccupational diseases was zero.
Occupational Health and Safety
Goals/IndicatorsCompletion Status
severe injuries (including acute industrial poisoning) and above
major ?re (explosion) incidents
incidence of occupational dis eases
accidents involving special equipmentMinor injuries controlled below5%Immediate and quali?ed rate of safety hazard recti?cation to reach100%
Safety training coverage and quali?cation rate for employees to reach 100%
Certi?cation rate for "key position personnel" to reach
100%
Execution rate of safety operation standards at positions to reach 100%Compliance and integrity rate of safety protective equipment and facilities to reach 100%
Control rate for hazardous operations to reach
100%
Integrity rate of equipment and facilities to be100%, maintenance rate of equipment andfacilities to be100%Ensure dedicated investment in safety production costs, for speci?c use only
We have established the Work Safety and OccupationalHealth Committee (hereinafter referred to as the "SafetyCommittee"), chaired by the Chairman of the Board.The Chairman, Vice Chairman, and General Managerserve as the principal responsible persons for worksafety. Department heads serve as departmental safetyo?cers, while workshop managers and subsidiary safetymanagement personnel serve as workshop safety o?cers.To more e?ectively advance the work of work safety andoccupational health management, a dedicated Safety andEnvironmental Department operates under the SafetyCommittee as its executive o?ce. This department isresponsible for implementing speci?c work safety andoccupational health management tasks and regularlyreports on safety and health-related work to management,continuously improving the level of work safetymanagement and providing solid protection for our worksafety and employees' occupational health.
At the beginning of each year, the Safety Committeerevises the work safety and occupational health goalsfor the year based on the actual conditions from theprevious year. To ensure that all departments strictlyimplement and achieve these work safety goals, theSafety Committee holds quarterly meetings to assess thecompletion of work safety targets by each department andlinks the assessment results with the compensation andperformance of the relevant personnel and management.We fully implement the "whole sta? work safetyresponsibility system," ensuring that safety managementactivities are integrated vertically and horizontallythroughout the entire production and operation process.During the reporting period, we signed 1,492 "Work SafetyResponsibility Agreements," covering 100% of employees.
Occupational Health and Safety Management Structure
Charrman
Vice Chairman
General Manager
Department HeadsSafety andEnvironmentalDepartment
Work Safety andOccupationalHealth Committee
Workshop Managers andSubsidiary
Safety lanagers
Work Safety Management Structure2023 Corporate Occupational Health and Safety Management Goals/Indicators
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We strictly adhere to the "Law of the People's Republicof China on Work Safety" and other relevant legal andregulatory requirements, continuously improving ourmanagement systems for work safety and occupationalhealth, and perpetually enhancing our level ofoccupational health and safety management.
We have developed and implemented systems such asthe "Work Safety Risk Classi?cation and Control System,""Hazard Identi?cation and Risk Assessment ManagementSystem," "Safety Warning Yellow Card ManagementMethod," and "Accident Management System" to identifyhazards in production activities and services, determinetheir risk levels, and adopt appropriate and e?ectivemeasures to eliminate and control these risks. Fordynamic operational activities, we use the Job HazardAnalysis (JHA) method to identify hazard factors; for staticequipment and facilities, we use the Safety Checklist(SCL) method to identify hazard factors and developcorresponding prevention and control measures afteridentifying potential safety incidents.
Occupational Health and SafetyManagement System
Occupational Health and SafetyRisk Management
Work Safety Management Systems
Occupational Health and Safety Risk LevelControl and Management Procedure
Work Safety Target Management SystemWork Safety Responsibility System ManagementSafety Culture Construction Management SystemSpecial Operations Personnel Management SystemEquipment and Facilities Safety Management SystemCon?ned Space Management SystemTemporary Electricity Usage Management SystemHazardous Chemicals Safety Management SystemWork Safety Target Assessment SystemWork Safety Commitment SystemWork Safety Information Management SystemTeam Safety Activities Management SystemSpecial Equipment Safety Management SystemHigh-altitude Operations Management RegulationsLifting Operations Safety Management SystemFire Safety Management System
Safety Hazard Inspection and Management
We strictly enforce the "Safety Hazard Inspectionand Management System," establishing a long-termmechanism for the inspection and management ofsafety hazards. Through safety inspections, hazardidenti?cation, hazard reporting, recti?cation, andaccountability measures, we strive to prevent andreduce accidents. Our safety inspection work includesdaily safety inspections, seasonal safety inspections,comprehensive safety inspections, holiday safetyinspections, and special safety inspections. Duringthe reporting period, we conducted 70 safety hazardinspections through safety checks, all of which havebeen recti?ed.Daily Safety Inspections: Conducted by the Safetyand Environment Department, focusing on the mainfactors such as people, machines, and the environmentthat may cause accidents, shifting safety work frompost-incident management to pre-incident prevention.Seasonal Safety Inspections: Organized by theGeneral Manager or the Safety and EnvironmentDepartment, focusing on lightning protection andbuilding leakage prevention in spring; heat strokeprevention, typhoon, and ?ood prevention in summer;?re, explosion, and dust prevention in autumn; and?re, slip, and frost protection in winter.Comprehensive Safety Inspections: Conducted
quarterly by the General Manager or the Safetyand Environment Department, covering the entirecompany, with results announced by the Safety andEnvironment Department and communicated at safetymeetings, with mandated recti?cations and follow-ups.Holiday Safety Inspections: Focus on thearrangement and implementation of safety andsecurity measures before and during holidays,with special attention to ?re, explosion, and theftprevention, emergency supplies, and spare parts.Special Safety Inspections: Conducted by the headof the Safety and Environment Department, involvingrelevant professionals from production and operationson electrical equipment, ?re safety facilities, specialequipment, and hazardous chemicals.
Determinethe methodforIdeneryinghazands (riskpolnts)
Utilize methodslike JHA, SCL,PHA, HAZOP, etc.De?ne thescope of hazardidenti?cation
Specify identi?cationscope (areas,locations, etc.)Conduct hazardidenti?cation
Compile hazardidenti?cationinformation tablesPerform riskassessment
Determine riskassessmentmethods such asLEC, TRA, etc.Conduct riskclassi?cation
Prepare riskassessmentclassi?cation statisticstablesPlan risk controlmeasures
Clarify principles andrequirements for riskcontrol measuresImplementcomprehensively,follow up, andverify
Regularly updateStrengthen the process
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Safety Hazard Investigation and Rectification ProcessReport hazardinformation
Assess hazardlevel
Issue hazardrecti?cation noticeOrganize veri?cationand acceptance
Feedback onrecti?cation status
Determine responsibledepartment
Implement hazardrecti?cation
To enhance our occupational health and safetymanagement levels, we continue to strengthen theinformationization of safety production, enabling real-time monitoring of safety conditions in the plant areato promptly identify onsite safety hazards. Additionally,safety management personnel regularly report workshopsafety inspection results or identi?ed safety issues to theMES system, maximizing the discovery and elimination ofpotential daily safety hazards.
At our Xiantao production base, besides daily safetypatrols, we conduct special safety inspections on ?resafety, electricity use, equipment, and facilities, organizeregular comprehensive inspections monthly, and conductextensive safety inspections for the whole company beforeand during holidays.
Confined Space Emergency Rescue Drill
Crane Injury Accident Emergency Drill
Forklift Emergency Drill
Emergency Rescue Management
To e?ectively respond to potential emergenciessuch as ?res, safety accidents, and naturaldisasters, we have established the "AccidentEmergency Rescue Management System" andspeci?c emergency plans and on-site handlingschemes for various types of accidents, including"Comprehensive Emergency Response Plans forWork Safety Accidents," "Special Emergency Plansfor Mechanical Injury," "Fire and Explosion AccidentEmergency Rescue Plans," "Con?ned SpaceAccident Emergency Rescue Plans," "ChemicalLeak Emergency Rescue Plans," "Crane InjuryEmergency Plans," "Pressure Vessel AccidentEmergency Rescue Plans," "Object Strike IncidentOn-site Handling Schemes," "Electrical ShockEmergency On-site Handling Schemes," and "High-altitude Fall Incident On-site Handling Schemes."These ensure that we can respond quickly andorderly in emergencies, minimizing casualties,property damage, and disruptions to normalproduction and living order. Additionally, our SafetyCommittee annually reviews emergency plans, andthe Safety and Environment Department revises,updates, or recompiles emergency plans basedon review feedback, enhancing the timeliness andpracticality of the emergency plans.We conduct comprehensive emergency plan drillsonce a year, speci?c emergency plan drills twice ayear, and on-site handling scheme emergency drillsbiannually by each production and operationsdepartment. During the reporting period, weconducted nine safety production accidentemergency drills, covering crane injury, mechanicalinjury, ?re incident handling and evacuation,con?ned space rescue, and forklift emergencydrills, with a total of 500 participants.
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Highlight
Flood and Typhoon Emergency Management
In July 2023, when the super typhoon "Doksuri"made landfall in Jinjiang, Fujian, we quicklyactivated our emergency plans and deployedvarious measures for ?ood and typhoonresistance:
?Organized workshops to stack sandbagsat entrances and exits to prevent rainwaterintrusion; required employees to turn o? all water,electricity, and gas before leaving the workshopsand to waterproof equipment.?Used steel cables to reinforce gantry cranesand emptied high shelves.?Used waterproof covers to protect materials,e?ectively ensuring the safety of production andthe personal safety of employees.
In terms of project installation services, our business primarily adopts an outsourcing approach complemented by directinstallation. Currently, over 95% of our project installation services are provided by dealers. To ensure the quality and safetyof these services, we strictly enforce the "Contractor Safety Management System" and other relevant regulations, requiringdealers, suppliers, and contractors to continually improve their safety management measures to ensure the safety and healthof involved personnel and reduce the likelihood of safety incidents.
Occupational Health and Safety Management for Suppliers/Contractors
For Suppliers
For Installation Service Contractors
We have established a "Supplier Safety Management System" that mandates suppliers of various raw materials,equipment, facilities, and services to possess relevant quali?cations as stipulated by national regulations.Suppliers providing hazardous chemicals must have appropriate quali?cations for production, operation, andtransportation of hazardous chemicals. We do not establish purchasing relationships with suppliers lackingsafety quali?cations. Moreover, when suppliers deliver goods or equipment to our company, they must providesafety data sheets and safety labels that comply with national requirements. Our Safety and EnvironmentDepartment is responsible for providing safety education and occupational hazard information to suppliersbefore they enter our company premises. Each department and workshop conducts safety training for suppliersentering operational areas, covering site-speci?c characteristics, main hazards, emergency measures, and safetyprecautions, and oversees the safety activities at the supplier's worksite.
We audit installation service contractors based onthe requirements of the "Business Guidance Manual"and "Independent Installation Dealer AssessmentScheme," requiring that they be independentlyincorporated companies with valid corporatesafety quali?cations and legal representativesafety certi?cates. They are also required topay a certain amount of installation deposit toensure onsite installation management safety. Forconstruction personnel and maintenance teamsof installation service contractors, we implementstrict safety production quali?cation reviewscovering construction, maintenance, and service-related personnel quali?cations, including but notlimited to safety certi?cates for construction teamleaders or project managers, special operationpermits (electrician, welder, high-altitude operationcerti?cates), and we require installation personnel tohave relevant installation experience. Additionally,we specify that installation quali?cations are onlyvalid for projects undertaken by the installationservice contractors themselves; unauthorized useof quali?cations is strictly prohibited. If a majoraccident occurs during the authorized quali?cationperiod, we will immediately terminate theirquali?cation authorization to ensure high qualityand safety of installation services.◎Our project managers are responsible foroverseeing the safety work and 6S management(Sorting, Set in order, Shine, Standardize, Sustain,Safety) of each installation team on site. Installationteam leaders are responsible for on-site safety and6S management, while safety o?cers are in chargeof safety management during equipment installationand commissioning, as well as safety orientations forinstallation teams upon arrival. They also organizedaily safety morning meetings to compile and reportnear-miss incidents.◎For on-site installation personnel, we requirethem to observe their surroundings duringinstallation, avoid areas with ?ammable gases toprevent ?res, promptly identify safety hazards, andhave them addressed by responsible individuals.They must wear safety helmets with the chin strapfastened and correctly use personal protectiveequipment. Installation personnel must write a worklog every three days to record progress and submit
it to us promptly; we may communicate with theinstallation personnel as necessary to accuratelyunderstand the on-site installation progress.◎In a direct sales model, aside from sendingour personnel for equipment installation, allother installation services must be undertaken byinstallation companies certi?ed by Southern RoadMachinery. In the dealership model, although we donot provide installation services directly, we requiredealers to appoint certi?ed installation companiesfor the installations.◎We regularly provide installation training for thepersonnel of installation service contractors andsupply them with installation diagrams to ensurethat installations are carried out according to thedrawings. We sporadically send personnel to dealersand installation service contractors for specializedsafety training and actively invite them to the MixingAcademy for safety training. At the start of eachproject, we strictly require the on-site installationproject manager to organize safety training for allparticipants, including clients and crane operators.During the reporting period, we conducted 80safety training sessions for 12 installation servicecontractors, totaling 240 hours of safety training.
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For Construction ContractorsWe require contractors to sign a safety agreementbefore entering the construction site and to conductregular safety inspections of contracted projects,sites, and equipment as speci?ed in the safetyagreement. If safety issues are discovered, they mustbe recti?ed promptly and reported; we appoint full-time safety management personnel to monitor andinspect the site to ensure e?ective implementationof safety measures. We organize safety trainingfor management personnel and various operatorsand ensure that special operation personnelmaintain valid certi?cations; contractors are directlyresponsible for the safety of their projects, rentedsites, used equipment, and employees.
◎For on-site managers, we require compliancewith national employment regulations, strictlyprohibiting the unauthorized hiring of unquali?edinstallation personnel. We organize safety training forall installation personnel throughout the installationperiod; conduct weekly safety inspections, issuerecti?cation notices for non-compliant items, andfollow up to ensure compliance; and hold safetymeetings every morning before shifts to providesafety brie?ngs and maintain safety records.
◎ For on-site safety managers, we require daily
morning inspections to check safety equipmentsetup, use of personal protective equipmentby employees, violations, and safety hazards,and to generate records and corrective actionrecommendations; conduct weekly specialinspections of electricity use, constructionmachinery, and hazardous materials to ensureorderly construction safety; supervise and inspectthe safety practices of installation personnel,imposing strict penalties for violations.To unify safety management across di?erentprojects, we establish dedicated project departmentsand set up Project Safety Management Committeesresponsible for leading safety work and decidingon signi?cant technical safety measures on site.Additionally, we have established a reward andpenalty system, regularly inspecting and evaluatingeach project department to ensure e?ectiveimplementation of work safety.
Project Work Safety Management Committee
Project Work Safety Management Committee
Work Safety ManagementPlanning Group
Work Safety Process
Monitoring Group
Work Safety Evaluationand Assessment Group
Various Construction Work TeamsVarious Departments of the Project Management O?ce
We strictly supervise and inspect the safetymanagement during the construction projectprocess, regularly identifying operational natureand behavior-related risks of contractors,implementing e?ective risk control measures, andassessing their safety performance:
◎For actions during construction that fail toimplement safety measures, involve violations ofoperations, or reckless behavior potentially causingpersonal injury to our employees or damage toproduction and equipment, we will order a workstoppage and, depending on the severity of the
We strictly implement the "Safety Education and Training Management System," continuously enhancing our safety educationand training system. We are committed to raising employees' awareness of work safety laws and improving their safetymanagement levels, enhancing the safety awareness and operational skills of front-line employees, and reinforcing theresponsibility of all sta? in their roles. We strive to integrate safety culture as an organic part of our corporate culture. Annually,our Safety and Environment Department collects the next year's safety education and training needs from all departments toformulate our annual safety training plan and conduct corresponding safety education and training.
Occupational Health and Safety Training
case, impose ?nes on those responsible.
◎For service providers that do not meet theconditions for safe production, we will terminate alltheir construction projects, strictly prohibit themfrom conducting project construction, and impose?nes.◎ For construction units that violate systemsand relevant regulations, we will orderimmediate recti?cation and impose ?nes.
For all current employees
For external personnel
For new employees such astemporary workers, contractworkers, labor workers,rotational workers, andagreement workers
For specialized workers whohave left their positions formore than six months
For specialized workers suchas electricians, welders,pressure vessel operators,and crane operators
Conduct three-tier safety education and trainingat the company, department, and team levels.
Conduct safety education through face-to-faceinstruction and onsite brie?ngs, covering topicssuch as factory safety rules, unit productioncharacteristics, work nature, safety andenvironmental precautions, accident lessons,safety regulations, emergency protectionmethods, and emergency evacuation routes.
Conduct mandatory safety training to ensurethey possess the safety knowledge and skillsrequired for their positions, such as self-rescue,mutual rescue, and emergency response.
Require them to retake practical operationexams, and only upon passing these exams canthey resume their positions.
Provide safety technical theory and practical
operation training related to their specializedtasks and require them to obtain a specialoperation quali?cation certi?cate before working.
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2023 Sustainability ReportDuring the reporting period, we conducted a total of 206 safety training sessions through various forms such asoutsourced training, safety knowledge lectures, team safety learning meetings, pre-shift meetings, accident site meetings,safety bulletin boards, WeChat public accounts, audiovisual viewing, concentrated classes, and discussion meetings.Training topics included safety laws and regulations, company safety management systems, basic knowledge of worksafety, safety technical knowledge, and accident case study analysis, totaling approximately 13,420 hours and 8,733participants, covering 100% of our employees.
Highlight
Safety Management Annual Conference
In August 2023, we held the 7th AnnualSafety Management Conference at theMixing Institute. Senior leaders, regionalservice supervisors, installation agents,subcontractors, workshop safety o?cers,and the Industrial Service Departmentparticipated in the conference. Theconference focused on raising safetyawareness, safety management Q&A,and identifying hazards at constructionsites. It aimed to enhance the safetyawareness of work safety managementpersonnel at all levels, strengthen theirsense of safety responsibility, and lay asolid foundation for our safe and healthydevelopment.
We have established an Occupational HealthManagement Leadership Group, led by the GeneralManager, with main department heads and workshopleaders as members, and the Safety and EnvironmentDepartment handling daily occupational healthmanagement. We have developed systems such asthe "Occupational Disease Prevention and Education
Occupational Disease Prevention
We conducted a total of
safety training sessions
Totaling approximately8,733participantsTotaling approximately13,420
hours
Occupational DiseasePrevention Training
Provision of LaborProtection Supplies
Occupational Disease Prevention
Occupational Hazard DetectionWorkshops utilize pre-shift and post-shiftmeetings, safety bulletin readings, and on-sitejob hazard explanations to conduct occupationaldisease protection training. Occupational hazardnoti?cation cards are prominently displayedin workshops, detailing types of occupationalhazards, consequences, and emergency responsemeasures to enhance all employees' health andsafety awareness.
We equip our employees with personal protectiveequipment that meets national occupationalhealth standards and supervise their properuse during production to prevent or reduceoccupational accidents and diseases.
The Safety and Environment Departmentemploys full-time (or part-time) occupationalhealth professionals responsible for ouroccupational disease prevention e?orts. Whensigning labor contracts with employees, weproactively inform them of occupational hazardsrelated to their positions to ensure all employeesare aware of potential occupational health risksassociated with their activities. We organizepre-employment, on-the-job, o?-the-job, andemergency occupational health checks. If weidentify workers with health damage relatedto their occupations, we promptly transferthem from their original positions and makeappropriate arrangements.
Assign personnel to maintain occupational healthprotection facilities daily to ensure safe andnormal operation of equipment. The Safety andEnvironment Department also employs full-time(or part-time) professionals for regular monitoringof occupational hazards, regularly entrustingquali?ed occupational health technical servicesto conduct occupational hazard detection invarious workplaces, and reports the detectionand evaluation results to health administrativedepartments and employees, continuouslysupervising improvements in workplaceoccupational health conditions. During thereporting period, we entrusted a third-partyprofessional institution to conduct occupationalhazard factor detection, and the occupationalexposure results for all employees met standardrequirements.
During the reporting period, we have had nooccupational disease incidents.
Training System," "Occupational Disease ProtectionFacilities Maintenance System," "Occupational HazardWarning and Noti?cation System," and "OccupationalHazard Project Declaration System," clarifyingmanagement measures for employee occupationalhealth:
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RuralRevitalizationand SocialContribution
We have formulated a "Community Policy,"pledging to respect the customs andculture of the community, actively listento the aspirations and hopes of the localpeople, and support the development ofthe community. As responsible corporatecitizens, we actively ful?ll our socialresponsibilities, while seeking our ownbusiness development, by promoting localemployment, supporting the developmentof local education, engaging in charitableactivities, and other means to contribute tothe well-being of the community and therevitalization of rural areas.
We value communication with our local communityand strive to minimize any negative impact ourproduction and operational activities may have onthe lives of local residents. To achieve this, we haveestablished a friendly communication mechanismwith local residents and government departments:
Establishment of aCommunity-friendlyCommunication Mechanism
Actively participate in various activities organized bylocal government departments and trade unions.Through forms such as WeChat, phone calls,symposiums, and joint construction with partyorganizations, maintain long-term contact withlocal residents and government departments. Thishelps in understanding community needs, receivingand addressing important community issues andcomplaints, and providing timely follow-up andfeedback to ensure proper resolution.Organize factory tours periodically, inviting residentsfrom surrounding areas to visit the factory environmentand learn about employee working conditions, fosteringdeeper communication with the local community.Pay attention to noise issues generated duringproduction operations. During important events suchas entrance exams, actively avoid noisy operations,require all vehicles entering the factory area to refrainfrom honking, encourage employees to avoid loudnoises, and temporarily suspend workshops andlogistics operations near schools to avoid disruptingthe normal life of the surrounding community.During the reporting period, we did not receive anycomplaints from the community.
Highlight
Rich and Healthy Employee LifeWe enrich our employees' leisure time and care for their physical and mental health by organizing a variety ofcultural and sports activities:
Badminton Tournament
Mid-Autumn Festival Dice Game
International Women's Day
Employment is crucial for people's livelihoods, andachieving fuller and higher-quality employmentis an inherent requirement for promoting high-quality development. It serves as a vital foundationfor advancing rural revitalization and achieving
Stabilize Industries toPromote Employment andRural Revitalization
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Highlight
School-enterprise Cooperation Promotes EmploymentWe have established a school-enterprise talent joint training mechanism with several universities andcolleges, such as Huaqiao University, Fujian Agriculture and Forestry University College of Mechanical andElectrical Engineering, and Sanming Senior Technician School. Through various forms of cooperationsuch as establishing student internships and employment bases, providing vocational skills training, andorganizing "NFLG Welding Classes," we strengthen technical exchanges and collaboration between schoolsand enterprises, alleviate local graduates' employment pressure, and promote the integrated developmentof production, research, and education. During the reporting period, we signed a cooperation agreementwith Quanzhou Normal University, establishing professional practice bases and organizing activities such asschool-enterprise cooperation forums and enterprise visits to promote employment opportunities for localhigh-quality applied technical talents.
Highlight
Paired Assistance in Revitalizing Rural Areas
We have established a paired assistance relationship with Hewan Village in Xiantao City, Hubei Province. Weprovide employment and training opportunities for local villagers to help them improve their skills and secureemployment. Upon learning about the longstanding issues of infrastructure disrepair and rough roads inHewan Village, we organized repair e?orts to enhance local transportation convenience and safety, facilitatingresidents' travel and improving their well-being.
We believe education is one of the greatest driversof sustainable development. We deeply care aboutthe growth of children in our local community.By providing educational funding, improvingeducational facilities, and other means, we supportthe development of children's education in thecommunity, contributing our corporate efforts toachieving United Nations Sustainable DevelopmentGoal 4 - "Quality Education."In 2019, we established the "NFLG EducationFund." Since 2020, we have donated 100,000 RMBannually to Quanzhou Chengdong Middle Schoolto reward outstanding achievements in the middleand high school entrance exams, teaching skillscompetitions, student subject competitions,education research, and other outstandingachievements by faculty and staff. This initiativeaims to encourage teachers to be dedicated, fostereducation, continuously improve the quality ofeducation and teaching, and cultivate more talentsfor society.
Support Education for Children
During the reporting period, we donated 110,000RMB to Haicheng Experimental Kindergarten inFengze District, Quanzhou City, for sporadic repairsand replacement of safety protection facilities,ensuring the personal safety of children, preventingaccidents, and creating a more comfortable andaesthetically pleasing learning environment. Wealso donated mobile recording and broadcastingequipment to Haibin Experimental PrimarySchool in Fengze District to support the sharing ofeducational resources both on and off campus.
The spirit of volunteerism has always been a part of our culture. We are committed to supporting socialwelfare initiatives and actively encourage employees to participate in volunteer activities, contributing to theconstruction of a harmonious society.
Promote the Spirit of Volunteerism
We organize employeesto actively participate involuntary blood donation activities,spreading love and hope for life, anddemonstrating their enthusiasm forsocial welfare and their willingness toshoulder social responsibilities.During the Chongyang Festival,we conduct visits and condolencesto families in need, distributingappropriate gifts to the elderly inthe community, inheriting andpromoting the traditional Chinesevirtues of respecting and honoring theelderly, and fostering a good socialatmosphere.
common prosperity. Faced with complexinternational situations, severe impacts fromclimate change-induced extreme weather events,and daunting challenges brought by economiccycles, we persist in stabilizing industries topromote employment. We continuously deepen
local employment policies, providing employmentand training opportunities for local residentsduring the development of our enterprises. Thishelps alleviate local employment pressures andcontributes to rural revitalization by giving back tosociety through tangible actions.
Governance
Sustainability-Related Governance MechanismsAnti-Commercial Bribery and Anti-Unfair Competition
和平、正义与强大机构
促进目标实现的伙伴关系
2023 Management Goals for Governance Issues
Based on our strategy and business reality, formulate sustainable development policies and declarations
No incidents of commercial bribery or corruption occurred throughout the year
No con?icts of interest incidents occurred throughout the year
No money laundering or insider trading incidents occurred throughout the year
No lawsuits or administrative penalties occurred due to unfair competition practices throughout the year
No litigation occurred throughout the year due to infringement of intellectual property rights
No incidents of tax violations occurred throughout the year
Regularly compile and disclose sustainability reports to stakeholders, explaining the e?ectiveness of our sustainabledevelopment e?orts
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Sustainability-RelatedGovernanceMechanismsWe integrate the concept of sustainabledevelopment into our corporatemanagement, continuously improve ourscienti?c and e?cient governance system,and enhance our ESG management level.This is to strengthen our resilience inaddressing sustainable development risksand opportunities in our operations andbusiness development. Additionally, weexpand diverse communication channels tofully safeguard the interests of shareholdersand all stakeholders, ensuring thesustainable development of our company.
NFLG strictly adheres to the relevant laws andregulations, such as the Company Law of the People'sRepublic of China and the Securities Law of the People'sRepublic of China. We have established a corporategovernance structure composed of the shareholders'meeting, the board of directors, the board ofsupervisors, and the management team. The corporategovernance structure is responsible, scienti?callye?cient, mutually coordinated, and balanced. We haveformulated a series of governance system documents,such as the "Articles of Association," "Rules of Procedurefor Shareholders' Meetings," "Rules of Procedure forBoard Meetings," "Rules of Procedure for SupervisoryBoard Meetings," and "Independent Director WorkingSystem," continuously improving the governancemechanism and standardizing our operation, enhancinglevel of corporate governance, and ensuring the high-quality development of NFLG.Our Board of Directors comprises four specializedcommittees: The Strategic Committee, AuditCommittee, Nomination Committee, and Remunerationand Assessment Committee. Among them, the AuditCommittee, Nomination Committee, and Remunerationand Assessment Committee each have two independentdirectors, with one of them serving as the convener.These committees ful?ll their duties according toregulations, leveraging their professional expertiseto provide guidance and oversight on sustainabledevelopment-related matters and decisions. Theycontribute to scienti?c decision-making on signi?cantissues related to our sustainable development andprovide support and assurance for the professionaloperation of the Board of Directors. During the reportingperiod, we convened a total of 7 board meetings andreviewed 34 proposals. Additionally, we held 7 meetingsof the specialized committees, discussing 22 proposals.The attendance rate for all board meetings was 100%.
Governance Structure
We convened a total of
board meetings
We reviewed
proposals
To enhance the management level of various ESG topics and achieve ESG management goals/indicators, we haveestablished a sound and e?ective ESG governance framework. Under the leadership of the Board of Directors, we haveformed an ESG Working Group consisting of three sub-groups: Corporate Governance, Environment, and Social. Each sub-group comprises relevant functional departments responsible for speci?c ESG management tasks. We have implementedweekly and quarterly reporting mechanisms, where the management reports to the Chairman through weekly meetingsof senior management and quarterly meetings of the company's operational management. This ensures that ESG-relatedwork is e?ectively implemented.
ESG Management
Board of DirectorsBoard of Directors O?ce
ESG Working Group
EnvironmentalGovernanceSocial
Environmental ComplianceEnergy Management &
EnergyconserationWater Resources Conservation
Discharges Management
Resources RecyclingBiodiversity Protection
Xiantao South HighwayMachinery Co, Ltd
Safety and Environmental Dept.
Operation Compliance
Risk Management
Anti-CorruptionAnti-Unfair CompetitionIntellectual Property Rights
Protection
Tax Compliance
Board O?ce
Audit Dept.
Finance & AccountingManagement Center
Human Rights ProtectionEmployee Development and
CommunicationOccupational Health and Safety
Comunity Relationship
R&D InnovationResponsible Supply Chain
Responsible Marketing
Customer ServicesInformation Security
CEO O?ceHR Center
Mixing Institute
Technology R&D Center
Research Institute
Intelligent Control DivisionVarious Product Divisions
Supply Chain Center
Marketing Center
Quailty Management Center
Information Center
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2023 Sustainability ReportWe have formulated a series of sustainabledevelopment policies based on our strategy andbusiness practices, providing a set of behavioral normsfor all our employees to adhere to in our global businessoperations. These policies serve as institutionalsafeguards for the management of various ESG topics.
Sustainable Development PolicyBusiness Code of ConductSupplier Code of ConductAnti-Corruption and Anti-Bribery Policy
Environmental Protection Policy
Human Rights PolicyCommunity PolicyTaxation PolicyInformation Security Policy
We are committed to building a diversi?ed andprofessional board of directors and management
Appointment of Directors andSenior Management
MaleFemale
Industry ExperienceOperational Management
Risk Control and Compliance
Finance & Accounting
77.78%
22.22%
36.84%
31.58%
21.05%
10.53%
Directors bygender
Directors byprofossionalbackground
NameOccupationAge
Professional BackgroundAttendanceRate(Boardof directorsand specialcommittees)IndustryExperience
OperationalManagement
RiskControl andCompliance
Finance &AccountingFang Qingxi(M)
Chairman76〇〇〇100%Fang Kai
(M)
Vice Chairman, General Manager47〇〇〇100%WanJingwen(F)
Director, CFO, Board Secretary63〇〇〇〇100%PengSiming(M)
Director, Chief Engineer56〇〇100%HuangWenjing(M)
Director, Chief Engineer49〇〇100%Yi Zhensheng(M)
Director56〇〇〇100%ZhangYongkui(M)
Independent Director51〇100%JiaoShengjie(M)
Independent Director69〇100%Chen Yang
(F)
Independent Director45〇100%We highly value the continuous improvement of the performance capabilities of our directors, supervisors, and seniormanagement personnel. We actively organize them to participate in various training sessions organized by local o?cesof the China Securities Regulatory Commission (CSRC), stock exchanges, and other institutions. Additionally, we holdinternal seminars and exchange meetings on ESG-related topics to continuously enhance our corporate governance level.During the reporting period, we organized a total of 9 training sessions for directors, supervisors, and senior managementpersonnel, covering topics such as new regulations and risk management, hosted by CSRC (Fujian), the Listed CompaniesAssociation of Fujian, the Shanghai Stock Exchange, and others.
team. Our Nomination Committee strictly follows theprovisions of the Company's Articles of Associationand the Working Rules of the Nomination Committeeto carry out the selection and nomination proceduresfor directors and senior executives. The committeeselects initial candidates based on our company'sactual needs and considers multiple factors such asgender, age, professional background, work experience,and social responsibilities. After compiling a shortlistof candidates, the committee reviews them againstthe quali?cation requirements for directors and seniorexecutives and presents candidate recommendationsto the board of directors. Director candidates aresubject to approval by the board of directors and thenput to a vote at the shareholders' meeting for election,while senior executive candidates are appointed afterapproval by the board of directors.Our board of directors comprises nine memberswith diverse gender, age, professional capabilities,and background experiences. Among them, two arefemale directors, accounting for 22.22% of the totalboard members, and three are independent directors,all holding master's degrees or above, representing
33.33% of the total board members. The board
members possess extensive experience in operationalmanagement, risk control, compliance, ?nancialaccounting, and other areas, providing crucial supportfor our informed decision-making.
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Our Board Remuneration and Assessment Committeeis responsible for formulating compensation schemesfor directors and senior management personnel.According to the Company's Articles of Associationand the Rules of the Remuneration and AssessmentCommittee, these schemes are submitted to the Boardfor approval and then presented to the shareholders'meeting for voting. The compensation scheme forsenior management personnel is approved by theBoard upon recommendation from the Remunerationand Assessment Committee. Directors who do not holdpositions within the company do not receive directorremuneration. Directors holding positions withinthe company receive remuneration commensuratewith their speci?c roles within the company, whileindependent directors receive director allowances.Our senior management personnel operate on anannual salary basis, consisting of two components:
basic annual salary and performance-based annualsalary. The basic annual salary is determined based
Compensation of Directors and Senior Management
on factors such as the senior management's jobresponsibilities and tenure, while the performance-based annual salary is determined based on factorssuch as the company's annual operational performance(e.g., net pro?t), the completion of annual work plans,organizational assessments, and the results of thesenior management's annual performance evaluations.To achieve the organic integration of personal valueand corporate development for our directors and seniormanagement personnel, we have implemented anemployee stock ownership plan. This plan establishesa long-term incentive and constraint mechanism toensure the realization of our operational goals andsustainable development. As of the end of the reportingperiod, our directors and senior management personnelindirectly held 5,360,000 shares of the company throughthe employee stock ownership platform, accounting for
4.944% of the total share capital of the company.
NameOccupation
Number of shares indirectly held through shareholdingplatforms as of the end of the reporting period (shares)
Fang QingxiChairman1,500,000Fang KaiVice Chairman, General Manager1,010,000Wan JingwenDirector, CFO, Board Secretary350,000Peng SimingDirector, Chief Engineer1,050,000Huang WenjingDirector, Chief Engineer1,050,000Yi ZhenshengDirector400,000
Total5,360,000
To safeguard the legitimate rights and interests ofshareholders, especially small and medium-sizedshareholders, we have formulated the "ImplementationRules for Related Party Transactions" in accordancewith relevant laws, regulations, and regulatory rules.Through clarifying the scope of related party transactions,deliberation and decision-making procedures, andinformation disclosure, we standardize the management of
Related-Party Transaction
related party transactions to ensure that such transactionscomply with the principles of fairness, impartiality,transparency, equity, voluntariness, equivalence, andcompensation. We strictly adhere to the approvaldecision-making process in accordance with regulations,implement mechanisms for related shareholders anddirectors to recuse themselves, and ensure that relatedparty transactions are compliant and fair.
We have explicitly de?ned the ?duciary duties of ourdirectors and senior executives in our company'sArticles of Association. They are obligated to act in thebest interests of the company and all shareholders.To prevent any negative impact caused by con?icts ofinterest, our directors and senior executives are required
Prevention of Con?ict of Interest
to proactively report their positions as directors orsenior executives in other entities to the company.This information will be disclosed to the shareholdersand the public in our annual reports, and appropriatemeasures will be taken to supervise and preventcon?icts of interest situations.
We strictly adhere to the relevant laws and regulations,listing regulations, and internal company rules suchas the Company Charter and Shareholders' MeetingRules to ful?ll the procedures for convening, holding,and voting at shareholders' meetings. We also provideshareholders with online voting channels to fullyguarantee the rights of shareholders, including theright to be informed, participate, vote, and supervise.Additionally, we employ mechanisms such as separatevote counting for small and medium-sized investors toe?ectively safeguard the rights and interests of minorityshareholders. During the reporting period, we helda total of 3 shareholders' meetings and reviewed 16proposals.We have established the "Investor RelationsManagement System" to clarify the responsibleentities and their duties, management methods andcommunication channels, as well as supervision
Protection of Investor Rights and Interests
mechanisms, to guide and standardize investorrelations management work and strengthencommunication and exchanges with investors. Westrictly adhere to relevant regulations and the internal"Information Disclosure Management System" to ful?llour information disclosure obligations, providinginvestors with truthful, accurate, complete, timely, andfair disclosure of company information. Additionally,we proactively and promptly report relevant mattersto regulatory authorities, striving to enhanceour transparency and the quality of informationdisclosure. We have established a diversi?ed investorcommunication mechanism, engaging with investorsthrough various channels such as the Shanghai StockExchange E Interactive Platform, investor hotline,performance brie?ngs, investor open days, and investorsurveys. These e?orts aim to provide investors andother stakeholders with comprehensive channels tounderstand our company, while also fully listening totheir suggestions and expectations.
Held a total of
shareholders' meetings
.Reviewed
proposals
Investor research reception Investor research reception
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We have established a risk-oriented internal controlsystem, continuously improving control mechanismsand processes, enhancing risk control at critical points,and implementing internal control supervision andinspection. This is to e?ectively prevent various signi?cantrisks that may occur in our business operations, ensuringcompliance and stable management of the company.
Risk Management, InternalControl, and Compliance
Our Board Audit Committee is responsible for guiding,supervising, and reviewing the establishment andimplementation of our internal control system, whilemanagement is responsible for organizing and leadingthe daily operation of internal control. Our auditdepartment is responsible for formulating and improvingthe internal control system and for inspecting andevaluating the integrity, rationality, and e?ectiveness ofits implementation. Each year, the audit department,
Risk Control and ComplianceManagement
in conjunction with our operational and businessdevelopment needs, determines the focus of internal auditwork for the year. After review by the Audit Committee, theplan is implemented and the results are reported at ourquarterly/annual management meetings and to the AuditCommittee, where guidance and supervision are provided.We continuously promote the soundness andimprovement of our internal control procedures byidentifying risk control points in business activitiesand key processes. We combine strategic planning,business development, product increments, functionaladjustments, cost reduction needs, and other factors. Afterthe annual report disclosure, we organize comprehensivereviews and timely revisions and optimizations of internalcontrol systems and processes each year. This continuousenhancement of risk control points, control procedures,and internal control systems e?ectively prevents variousrisks and safeguards the company's stable operation.In addition, through the "rationalization proposal"mechanism, we encourage employees to proactivelyreport potential risks or suggest improvements in internalcontrol management.As examples of the two types of risks identi?ed by us:
Risks and ImpactsMitigation Measures
Risk of Key Personnel Attrition:
With the continuous intensi?cation of market competition, thereis an increasing demand for professional talents in the industry,and even situations where enterprises compete for talents. Inthe future, we face the risk of key personnel attrition.
We have established competitive compensation and incentivesystems in the market. We have also signed con?dentiality andnon-compete agreements with key technical personnel, clearlyde?ning obligations and responsibilities regarding non-competeclauses to minimize the risk of attrition among key personnel,especially senior management and technical talents.The risk of technology leakage:
If key technical personnel are lost, it may lead to the leakage ofour core technology, weakening our competitive advantage andpotentially a?ecting our business development.
We have signed confidentiality agreements and non-competeagreements with key technical personnel, and established acon?dentiality control mechanism. On one hand, this restrictsthe scope of knowledge and access to technical confidentialinformation, strictly enforces procedures for the transmission,storage, and destruction of technical secrets. On the other hand,we manage and control sensitive equipment and networksthrough technical means.During the reporting period, we advanced andimplemented internal control optimization projects,reviewed and revised internal control manuals, addedcorresponding internal control procedures based on newbusiness product lines, optimized contract managementand seal management procedures, identi?ed andstrengthened control over risks such as foreign exchange,
wars, and industry standards that may be involved inoverseas business, added credit guarantee processes,etc. Through the addition or optimization of controlprocesses, control objectives, and the enhancement of riskcontrol matrices, we continuously enhance our internalmanagement and business compliance operation level.
We regularly conduct routine audits, special audits, internal control assessments, and other risk and compliancesupervisory checks to promptly identify de?ciencies and issues in the construction and operation of our internal controlsystem. We urge relevant departments or business units to rectify and improve these issues, aiming to achieve e?ectiverisk control and internal control operation.During the reporting period, we conducted the following risk and compliance inspections:
We place great importance on building a culture of risk awareness within our organization. Through organizing riskand compliance training sessions and facilitating communication, we aim to educate our employees on relevantlaws, regulations, and internal policies. By disseminating knowledge related to risk management and compliance,we continuously enhance employees' awareness of risk prevention and compliance practices, thus improving theirprofessional competence and skill levels in their respective roles.
Inspection of Risk Control and Compliance
Risk Control and Compliance Education
Highlight
Bank Guarantee Business SeminarIn 2023, we invited external institutions to conduct seminars and training sessions on bank guaranteebusiness for employees of various departments such as Sales Management, Marketing Management, OverseasDepartment, Legal Department,Securities Department,and Financial ManagementCenter. The sessions coveredtopics including fundamentalknowledge, operationalpractices, and risk prevention,allowing employees to shareand discuss with experts. Thisinitiative aimed to enhanceemployees' understanding ofthe legal regulations and riskcontrol measures related to bankguarantee business, therebyimproving their risk awarenessand response capabilities inbusiness operations.
Internal control evaluations were conducted for all operatingentities within the scope of consolidation, focusing onoperational and business critical areas as well as high-risk domains. External professional organizations werecommissioned to audit the e?ectiveness of internal controls.
Special internal audit projects were carried out focusingon procurement, production, costs, and ?nancial systemexecution. These audits covered the company, itssubsidiaries, and branches. Recti?cation and optimizationwere performed based on the audit ?ndings to strengtheninternal controls and mitigate operational risks.
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We maintain close communication and exchange with stakeholders through diverse channels, incorporating their expectationsand suggestions into our sustainable development governance.Communications with stakeholders
Stakeholders
EmployeesCustomersSuppliersDistributorsInvestorsBanksMedia
GovernmentsandSupervisionDepartmentsNGOs
Material Issues
Information SecurityR&D InnovationCustomer Service
Anti-corruptionCustomer ServiceAnti-Unfair Competition
Anti-corruptionResponsible Supply Chain
Intellectual Property
Rights Protection
Tax ComplianceAnti-Unfair Competition
Information SecurityRisk Management
R&D InnovationEnvironmentalComplianceOperation Compliance
Tax ComplianceRisk Management
Anti-corruptionOperation Compliance
R&D InnovationAnti-corruptionEnvironmentalComplianceCustomer Service
R&D InnovationTax ComplianceOperation Compliance
Community InvestmentOperation ComplianceAnti-Unfair CompetitionAnti-corruption
CommunicationMethods
Employee Meetings andOne-on-One InterviewsEmployee Training and
ActivitiesEmployee Care andWellbeingEmployee Complaints
Customer Service and
ComplaintsCustomer SatisfactionSurveysSpecialized TrainingOnline Communication
Online Communicationand On-Site VisitsQuality ManagementCoachingIndustry Exhibitions
Distributors TrainingDistributors MeetingOn-Site GuidanceOnline Communication
Public Disclosureof Listed CompanyInformationE-Interactive Platformand Investor HotlinePerformance Brie?ngsInvestor Surveys
Public Disclosureof Listed CompanyInformationOn-Site Visits
Public Disclosureof Listed CompanyInformationSocial MediaCommunicationPublic OpinionMonitoring
On-Site VisitsGovernment ProjectCollaborationsConference Training
On-Site VisitsPublic ServicePublic OpinionMonitoring
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High
LowLowHighImportance to stakeholders
Importance to NFLG
We regularly conduct substantive issue assessments to continuously improvethe management measures related to these issues. By addressing the resultsof these assessments, we aim to enhance our management e?ectivenessacross various ESG issues. Furthermore, we ensure that our ESG reports orsustainability reports address the concerns of stakeholders.In 2023, we identi?ed 27 ESG topics relevant to our operations and businesscharacteristics. We referenced reporting frameworks such as GRI and SASBand benchmarked against industry peers' ESG best practices. We invitedmanagement and other stakeholders to participate in substantive issuesurveys to analyze and evaluate the ESG topics of concern to them. Based onthe results of internal and external research, we conducted a comprehensiveanalysis and ranking of the importance of ESG topics considering their ?nancialimpact on us and their signi?cance to stakeholders. This process resulted in theformation of the 2023 Substantive Issue Importance Matrix. The results of the2023 Substantive Issue Assessment were submitted to the board of directors forapproval. We highlighted the three most important substantive issues identi?edin this assessment—R&D Innovation, Tax Compliance, and EnvironmentalCompliance—in relevant sections of this report.
Material Issues Assessment
Environmental Issues
Environmental Compliance
GHG Emission
Energy Management
Water Resources Protection and Wastewater Management
Waste Air Management
Waste Management
Biodiversity Protection
Resources Recycling
Social Issues
Equal Employment
Human Right Protection
Occupation Health and Safety
Training and Education
Compensation and Welfare
Employee Communication
Community Investment
Responsible Supply Chain
Responsible Marketing
Customer Service
Governance Issues
Operation Compliance
Risk Management
Anti-corruption
Anti-unfair Competition
R&D Innovation
Intellectual Property RightsProtection
Information Security
Tax Compliance
Complaint Mechanism and Complainant Protection
252024
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Anti-CommercialBribery andAnti-UnfairCompetitionWe strictly abide by the laws and regulationssuch as the Unfair Competition Law of thePeople's Republic of China and the Anti-Monopoly Law of the People's Republicof China, and the relevant policies andregulations where we operate. We adhere tothe principles of compliance, fairness, andintegrity, conducting our business activitieswith high ethical standards. We activelyadvocate for and uphold an environment ofintegrity, fairness, and freedom in business.Through the establishment of a "Codeof Business Conduct," we articulate ourstance on anti-corruption, anti-bribery, fairand free competition, con?ict of interestavoidance, anti-money laundering, insidertrading prohibition, protection of companyassets, complaint handling, and complainantprotection. This code serves as the behavioralnorms that all our employees should adhereto in their business activities. Furthermore,we also expect and encourage our suppliers,contractors, distributors, and other partnersto comply with the requirements of this code,embracing responsible business practicesand jointly promoting integrity in businessoperations and ethical development.
We maintain a zero-tolerance stance towards corruptionand bribery. We strictly adhere to relevant laws andregulations on anti-corruption and anti-bribery,vehemently opposing any form of corrupt or briberybehavior. We have formulated an "Anti-Corruption andAnti-Bribery Policy" and implemented correspondingmanagement measures to prevent corruption and briberyrisks.
Anti-Corruption andAnti-Bribery
We require all employees to adhere to relevant laws, regulations, and internal policies regarding anti-corruption and bribery,and to uphold integrity and self-discipline. In our Employee Handbook, we clearly de?ne provisions related to anti-corruption,anti-bribery, and con?ict of interest, and establish a system of rewards and penalties. Instances of corruption or commercialbribery by employees are considered serious violations and are subject to appropriate disciplinary measures. To further preventcorruption risks in procurement activities, managers and personnel responsible for procurement tasks are also required to signa "Commitment to Anti-Commercial Bribery and Integrity" pledge, committing to comply with relevant laws, regulations, andour integrity rules, prohibiting any form of corruption or bribery, and preventing potential con?icts of interest. Violations of thiscommitment will result in disciplinary action and accountability.
Integrity Management of Employees
We strictly adhere to national and local regulationsregarding anti-monopoly and anti-unfair competition,conducting our business activities on the principles ofintegrity, freedom, and fair competition. We respectand protect the legitimate rights of our competitors,and uphold the free and fair economic market orderand business environment. We require personnelresponsible for procurement and related tasks toorganize procurement strictly in accordance with ourapproved procurement methods, following principles offairness, justice, and transparency. They must not o?erpreferential or discriminatory treatment to suppliers underunreasonable conditions, establish biased quali?cationthresholds or technical terms, exclude or restrict otherpotential suppliers, collude maliciously with suppliersor procurement units, abuse their authority to designatesuppliers forcefully, interfere with normal procurementactivities, or engage in inappropriate ?nancial transactionswith procurement personnel or suppliers to gain unfairbene?ts. In the event of any such unfair competition bycompany personnel, we will take appropriate measuresand hold them accountable according to internalregulations and penalty mechanisms. During the reportingperiod, we did not experience any litigation or signi?cantadministrative penalties due to unfair competitionpractices.
Anti-unfair Competitionand Anti-Monopoly
We continuously supervise potential corruption issues through internal audits, internal control reviews, and other monitoringmethods, urging corrective actions to e?ectively prevent corruption risks. During the reporting period, we did not experienceany incidents of commercial bribery or corruption.
Integrity Management of Business Partner
Integrity Risk Supervision and Management
For suppliers
through quali?cation checks, on-site inspections,and other means, we examine and preventpotential integrity risks among suppliers;require suppliers to sign a "Company IntegrityCooperation Agreement," pledging not to bribecompany personnel in any way, refusing anysolicitation for bribes from company personnel,and refraining from any other improper behaviorlisted in the agreement. If a supplier violatesthe integrity agreement, we reserve the rightto take actions such as revoking their supplierquali?cation, demanding the return of impropergains, and pursuing legal liabilities.
For distributors
we require them to sign an "Anti-CommercialBribery Commitment," pledging not to request ordeliver any bribes or other improper bene?ts tocompany personnel, and they must proactivelyreport any instances of a?liation with us. If adistributor violates the integrity commitment,we reserve the right to take actions suchas terminating the partnership, reclaimingbreach penalties, and pursuing legal liabilities.We also promote integrity requirements todistributors through online and o?ine meetingsto strengthen the prevention of integrity risksamong distributors.
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We have established an intellectual property managementsystem and formulated regulations such as the IntellectualProperty Management Manual, Intellectual PropertyManagement Measures, and Patent Management Measuresin accordance with the relevant laws and regulations ofthe Patent Law of the People's Republic of China, theCopyright Law of the People's Republic of China, and theTrademark Law of the People's Republic of China, as wellas the national standard GB/T29490-2013 "EnterpriseIntellectual Property Management ". We manage andcontrol various aspects of intellectual property acquisition,maintenance, utilization, and protection to e?ectivelyprotect company's intellectual property.We strictly adhere to the internal intellectual propertymanagement system to review and register newtechnologies and products, promptly apply for intellectualproperty rights registration, and establish an intellectualproperty management ledger. We continuously monitorand manage intellectual property to promptly detect anyinfringement and take necessary measures. During thereporting period, we ?led 25 new patent applications,obtained 79 new authorized patents, registered 9 newcopyrights, and applied for 6 new trademarks. As of
Intellectual Property Rights Protection
the end of the reporting period, we held a total of 726authorized patents, 31 registered copyrights, and 23registered trademarks.We have established a con?dentiality control mechanism.On one hand, we classify technical information as topsecret, limiting access and strictly enforcing proceduresfor the transfer, storage, and disposal of technical secrets.On the other hand, we manage and control sensitiveequipment and networks using technical means. Forexample, we implement double-network isolation forresearch and development (R&D) personnel's internetaccess, physically lock workstations, strictly prohibitthe use of external hard drives or USB devices, encryptsensitive drawings and data, and limit email sendingtra?c. We also sign con?dentiality and non-competeagreements with technical sta? and specify correspondingpenalties for violations of con?dentiality regulations in ourIntellectual Property Rights (IPR) incentive and penaltysystem. Additionally, by conducting intellectual property-related training, we instill awareness among employeesregarding the protection and risk prevention of intellectualproperty, e?ectively preventing and timely addressingrisks associated with intellectual property infringement.Highlight
Specialized Training of "Common Intellectual Property Rights Risks andCountermeasures for Engineering Machinery Enterprises"In 2023, we invited external professional organizations to conduct specialized training on "CommonIntellectual Property Risks and Response Strategies for Engineering Machinery Enterprises" for departmentheads and key business personnel. The training aimed to disseminate basic knowledge of intellectualproperty rights and tailored the content tothe business characteristics of engineeringmachinery enterprises. Starting fromvarious business scenarios such as technicalresearch and development, design,procurement, production, and sales, thetraining provided professional guidanceon intellectual property risk prevention,response, and management. This initiativeaimed to enhance the awareness andmanagement capabilities of relevantpersonnel regarding intellectual propertyrisk prevention.
We strictly comply with the national tax laws andregulations, such as the Corporate Income Tax Law of thePeople's Republic of China, as well as all relevant tax lawsand regulations applicable to each business location. Wehave formulated a "Tax Policy" based on the principles oftax legality, compliance, integrity, and transparency. We arecommitted to ful?lling our tax obligations in accordancewith the law and strengthening tax risk management. Wepledge not to transfer pro?ts to regions with lower taxrates or other jurisdictions for the purpose of impropergain, nor adopt tax structures or arrangements lackingcommercial substance for the purpose of tax evasion. Weadhere to the principle of fair dealing in transfer pricingarrangements between related entities to ensure thefairness and reasonableness of transactions. During thereporting period, our total tax payment amounted to 39.04
Tax Compliance Management
Highlight
"Annual Pre-Closing Tax Risk Assessment and Routine Business Tax Consultation" SpecializedTrainingIn 2023, we invited an external tax consultancy ?rm to organize a specialized training session titled "AnnualPre-Closing Tax Risk Assessment and Routine Business Tax Consultation" for all personnel in our Finance andAccounting Management Center and the Board O?ce. This training aimed to provide professional guidanceand advice on tax risk identification, management, tax declaration, and processing, enhancing the taxcompliance awareness and professional capabilities of relevant sta? members.
million RMB, and no tax-related violations occurred.We follow the requirements outlined in the InternalControl Manual to identify and manage potential taxrisks in our operational processes according to internalcontrol procedures. We implement e?ective controlmeasures for key risk points. Annually, we engage externalorganizations to conduct tax audits and maintain periodiccommunication and exchange with tax authorities andexternal tax advisors to enhance tax risk prevention andensure tax compliance. Additionally, we organize trainingsessions for personnel from relevant departments toenhance awareness of tax risk prevention and improve taxexpertise, thereby enhancing our overall tax managementcapabilities.
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2023 Sustainability Report
Data OverviewEnvironment
IndicatorUnit20222023Environmental Protection InvestmentTotal annual environmental protection investmentTen-thousand RMB78.50 144.16Environmental Management
Number of environmental violations in the year
Time
The number of environmental emergency drills in the year4 4Emissions and Discharges
GHGScope1: Direct GHG emissions
tCO
e
425.14579.84
Scope2: Indirect GHG emissions3,489.043,777.64Total GHG emissions
3,914.184,357.48 Total GHG emissions intensity
tCO
e/ hundred-millionRMB of operatingrevenue
321.56381.92
Air PollutantsNOx emissions
Ton
0.10 0.00
PM emissions0.870.13Non-methane hydrocarbons emissions 28.10 17.14Benzene/0.09Toluene 0.14 0.08Xylene 0.51 0.20Aromatic compounds 0.77 0.42Ethyl acetate, Butyl acetate/0.03
Complaint and Reporting Channels
Complainant Protection Mechanism
Complainants can lodge complaints and reportsanonymously or with identi?cation through thefollowing channels:
In terms of complainant protection, we allowanonymous complaints and strictly implementmechanisms to keep complainant informationcon?dential. We rigorously maintain thecon?dentiality of complainant identities andmaterials, e?ectively safeguarding their legitimaterights and interests. When rewarding complainants,we refrain from disclosing their identities without
their consent.We ?rmly oppose any retaliatory actions. If anyemployee is found to engage in retaliatory behavioragainst complainants, we will issue warnings,dismissals, or other disciplinary actions basedon the severity of the situation, and hold themaccountable for their actions under the law.
In addition, we have clearly listed the complaintand reporting hotline, email address in the "Anti-Commercial Bribery and Integrity Commitment"signed by employees, and in the "CompanyCooperation Integrity Agreement" signed bysuppliers. This provides clear and accessiblechannels for employees and suppliers to makecomplaints and reports.Complaint HotlineComplaint EmailComplaint Email
0595-28201085audit@nflg.com
Mailing Address: No. 700, Sports Street, High-tech Industrial Park, Fengze District, Quanzhou City
We encourage employees, suppliers, and otherstakeholders to oversee our business activities. Theyare welcome to report any violations of business ethicsor laws and regulations in our business operations. Ourcompany's audit department is responsible for receiving,processing, and documenting complaints and reports.To stimulate the enthusiasm and proactiveness of
Complaint Mechanism and Complainant Protection
employees, suppliers, and other stakeholders in providingfeedback and to timely and e?ectively detect and preventethical risks, we have established a reward mechanism.Upon veri?cation of relevant complaints and reports,corresponding rewards are granted to the individualsinvolved.
1.The increase in the company's GHG emissions compared to 2022 is mainly attributed to the increase in production volume.
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Wastewater and Wastewater Pollutants Discharges
Wastewater discharges
Ton
/81,004.00COD 24.08 17.98BOD
8.97 6.93Ammonia Nitrogen discharge 1.21 1.95Total Nitrogen discharge/2.77Suspended solids/4.37
Waste
Hazardous WasteHazardous waste generation
Ton
61.16 71.21
Transfer and disposal volume of hazardous waste 61.16 71.21General WasteIndustrial waste produced volume
Ton
1,761.002,024.00Industrial waste recycled volume1,761.00 2,024.00Water ResourcesThe number of operational sites in water-scarce regionsCount00 Water withdrawal in water-scarce regions
m
Water withdrawal95,846.00 95,242.18Water consumption/14,238.18Water consumption density
m
/ hundred-million RMBof operating revenue
/1,247.93
Energy ConsumptionElectricity consumption
kWh6,117,910.00 6,623,950.61Natural gas consumption m
75,327.00 70,931.00Gasoline consumption
Litre
20,200.00 26,473.61Diesel consumption
59,434.00 95,917.62
IndicatorUnit20222023Market
IndicatorUnit20222023
Product Quali?cationTotal number of quali?ed products
Case
371385Total number of products371385Product quali?cation rate%100.00100.00Incidents of non-compliance concerning the health and safety impacts of products and servicesTotal number of non-compliant incidents related to health and safety impactsof products and services
Case00Incidents of non-compliance concerning product and service information and labelingTotal number of non-compliant incidents related to product and serviceinformation and labeling
Case00Incidents of non-compliance concerning marketing communicationsTotal number of non-compliant incidents related to marketing communicationCase00Incidents of Customer ComplaintsTotal number of customer complaint incidents
Case
Resolved customer complaints/11Customer complaint resolution rate%/100.00
R&D Investment in Science and Technology
Total R&D investment in science and technology
Ten-thousand
RMB
6,424.027,345.87 Intellectual PropertyNumber of new patent applications
Item
6825Number of new patent grants6579Number of new copyright registrations/9Number of new trademark applications/6
Suppliers Management
Annual Distribution of Suppliers by RegionNumber of suppliers in mainland ChinaCount533656
2.The increase in the company's industrial waste produced volume compared to 2022 is mainly due to the increase in production volume.
3.The increase in the company's electricity consumption compared to 2022 is mainly due to the increase in production volume.
4.The increase in gasoline consumption compared to 2022 is primarily due to the increase in the company's business tra?c volume.
5.The increase in diesel consumption compared to 2022 is primarily due to the increase in the company's business tra?c volume.
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Including: Number of suppliers in the province where the company is located
Count
291242Number of suppliers in other regions58Total538664Number of Tier 1 suppliers/341Number of signi?cant suppliers/76
Supplier Audit
Number of newly admitted suppliers in the year
Count
4051Number of newly admitted suppliers assessed through desk review/51Number of newly admitted suppliers assessed through on-site inspection/18Number of suppliers on hand assessed through desk evaluation/146Number of suppliers on hand assessed through on-site inspection/43Number of signi?cant suppliers assessed/76Total number of suppliers participating in coaching programs/26Total number of suppliers participating in coaching programs with signi?cantreal potential negative impacts
/0Distributor ManagementRegional Distribution of DistributorsNumber of distributors in mainland China
Count
2223Including: Number of distributors in the province where the company is located
Number of distributors in other regions88Total3031Distributor Audit
Number of distributors reviewed in the current year
Count
3031Number of new distributors admitted in the current year41Proportionof newly admitted distributors reviewed to the total number ofreviewed distributors in the current year
%13.336.45
IndicatorUnit20222023Employment
IndicatorUnit20222023
Employee Composition
Total employees
Person
1,2151,234Including: Employees with signed employment contracts1,2151,217
Employees who signed reemployment agreements/17Other workers
2646Employee Composition By GenderMale
Person
1,0441,064Female171170Employee Composition By Age Under 30
Person
270283 30 to 50781767Over 50 164184Employee Composition By EducationMasters and above
Person
3335Bachelors385413Colleges355182Others442604Employee Composition By NationalityChina
Person
1,2131,233Others21
6.Workers other than employees include external consultants, interns, labor dispatch personnel, etc.
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Employee Composition By ProfessionProduction employees
Person
578582Sales employees112114Technical employees287382Finance employees2016Administrative employees218140Female production employees2820Female sales employees3442Female technical employees2837Female ?nance employees1712Female administrative employees6459Employees in Science, Technology, Engineering, and Mathematics (STEM)positions
/280Female employees in Science, Technology, Engineering, and Mathematics(STEM) positions
/22Proportion of female employees in Science, Technology, Engineering, andMathematics (STEM) positions
%/7.86
Employment in the Local Province
Number of local employeesPerson820825Proportion of local employees%67.4966.86Number of female local employeesPerson134131Proportion of female local employees%78.3677.76Number of local senior management
Person/4
IndicatorUnit20222023
7.The senior management personnel of the company includes the General Manager, Chief Engineer, Chief Financial O?cer, and Board Secretary.
Percentage of local senior management%/100.00Number of female local senior management Person/1Percentage of female local senior management %/100.00Management Gender Distribution Male management
Person
98101Female management2424Including: Female senior management11 Female middle management2323Proportion of female senior management
%
/25.00Proportion of female management19.6719.20Proportion of female managers in revenue-generating departments/12.90Labor Contracts
Employment contract signing rate%100.00100.00Employment of People with DisabilitiesNumber of employees with disabilitiesPerson22Ratio of employees with disabilities%0.160.16
Employee TurnoverThe Overall Situation of Employee Turnover
Total employees at the beginning of the year
Person
1,2111,215Total new recruiters in the year177249The total number of resignations for the year173230The total number of voluntary resignations/179The total number of resignations from the management team/14
IndicatorUnit20222023
116115
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Annual turnover rate%12.4615.71Employee Turnover by AgeThe number of employees under 30 years old who resigned
Person
/103The number of employees between 30 and 50 years old who resigned/116The number of employees above 50 years old who resigned/11
Employee Turnover by Nationality
The number of Chinese national employees who resigned
Person
/229The number of non-Chinese national employees who resigned/1
Employee Training
The Overall Situation of Employee TrainingTotal annual investment in employee training
Ten-thousandRMB
91.5650.68
Total number of employees trainedPerson1,2151,234Average amount of training
Ten-thousandRMB
0.080.04
Total number of female employees trained
Person
171170Total number of male employees trained1,0441,064Proportion of female employees trained
%
100.00100.00
Employee training coverage rate100.00100.00Total number of training sessions for employeesTime102256Total number of training hours for employees
Hour
11,541.0030,235.50Average training hours for employees9.5024.50Total participants in trainingParticipant3,68512,259
IndicatorUnit20222023
8.Apart from the data of total annual investment in employee training, the data under The Overall Situation of Employee Training only includes employee training
organized by the Human Resources Department and the Safety and Environmental Department. The data for the Employee Training by Type are only counted foremployee training conducted by the Human Resources Department.
Employee Training by Type
Total online training hours
Hour
/531Total number of hours spent on coaching and training sessions/15,784Total hours of leadership training/675Total number of hours spent on IT training sessions/6Average number of training hours for female employees/55Average number of training hours for male employees/34Average training hours for employees under 30/30Average training hours for employees aged 30 to 50/32Average training hours for employees over 50/34Average training hours for junior management /11Average training hours for middle management /58Average training hours for senior management /7Employee PerformanceThe number of production personnel who undergo regular performance andcareer development evaluations
Person
/542The number of sales personnel who undergo regular performance and careerdevelopment evaluations
/9The total number of employees who undergo regular performance andcareer development evaluations
/551The percentage of employees who undergo regular performance and careerdevelopment evaluations
%/44.65
IndicatorUnit20222023
118117
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Employee Compensation
The entry level salary for male employees
RMB
2,0002,000 The entr level salary for female employees2,1002,100 The government-mandated minimum wage for males in the local area1,6501,650The government-mandated minimum wage for females in the local area1,6501,650The ratio of the entry level salary for males to the government-mandatedminimum wage for males in the local area
%
121.21121.21
The ratio of the entry level salary for females to the government-mandatedminimum wage for females in the local area
127.27127.27
Freedom of AssociationNumber of employees participating in the labor unionPerson/1,234Proportion of employees participating in the labor union%/100.00
Employee Care and Welfare
The de?ned bene?t plans and other retirement plans
Ten-thousandRMB
/2The company's contribution ratio to the de?ned bene?t plans and otherretirement plans
%/74.97 Total duration of paid maternity leave taken by employeeDay/40
Security PracticesSecurity personnel trained in human rights policies or procedures
Person
1414The number of security personnel employed by company88Total number of third-party security personnel66The proportion of security personnel trained in human rights policies orprocedures
%100.00100.00
IndicatorUnit20222023Occupational Health and safety
IndicatorUnit20222023
Work Safety Input
Total annual investment in work safety
Ten-thousandRMB
303.50421.57
Ocupational Health and Safety Training Performance
Total participants in occupational health and safety trainingParticipant 2,161 8,733Total participant time in occupational health and safety trainingHour4,035 13,420Total number of people receiving occupational health and safetytraining
Person1,215 1,234Proportion of personnel receiving occupational health and safetytraining
%100.00100.00Number of females receiving occupational health and safety trainingPerson 171 170Proportion of females receiving occupational health and safetytraining
%100.00100.00Number of safety emergency drillsTime 7 9Number of attendees for safety emergency drillsParticipant /500Number of occupational health and safety o?ine training sessionTime 38 206
Work Safety Accident
Extremely serious accidents
Case
Serious accidents00Major accidents00General accidents00Number of shutdownsTime00Hours of shutdownsDay00
120119
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Occupational Health and Safety Performance
The number of workers covered by the occupational health and safetymanagement system
Person
1,215 1,234Occupational injuries 10 6Occupational fatalities00Occupational fatality rate%0.000.00Total lost time due to work-related injuriesDay/61Total number of work-related injury incidents
Case
10 6The total number of near-miss incidents/45Total Recordable Injury Rate (TRIR) per 200,000 hours worked -Employees
/
/0.55Total Recordable Injury Frequency Rate (TRIFR) per 1,000,000 hoursworked - Employees
3.892.76
Lost Time Injury Rate (LTIR) per 200,000 hours worked - Employees/45.01Lost Time Injury Frequency Rate (LTIFR) per 1,000,000 hours worked -Employees
/225.06Million Hours Near-Miss Incident Rate/20.75
IndicatorUnit20222023Community
Governance
IndicatorUnit20222023
Outward Donations
Total outward donations
Ten-thousandRMB
71.9433.97
IndicatorUnit20222023Business EthicsAnti-corruption Advocacy and TrainingProportion of employees received anti-corruption training
%
/100.00The proportion of suppliers received anti-corruption training/100.00The proportion of distributors received anti-corruption training/100.00The proportion of customers received anti-corruption training/96.00Violations of Business EthicsCommercial bribery and corruption incidents
Case
/0Con?icts of interest incidents/0Money laundering or insider trading incidents/0Litigation or signi?cant administrative penalties resulting from unfaircompetition or monopolistic practices
/0Litigation resulting from infringement of intellectual property rights/0
122121
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GRI Index
GRI Stan-
dards
DisclosuresLocationOmission
General Disclosures
GRI 2: Gen-eral Disclo-sures 2021
2-1 Organizational detailsAbout NFLG2-2 Entities included in the organization'ssustainability reporting
About This Report2-3 Reporting period, frequency and contactpoint
About This Report2-4 Restatements of informationNot covered in this report
This report does notinvolve informationrestatement2-5 External assuranceNot covered in this report
The externalassurance has notbeen carried outduring the reportingperiod2-6 Activities, value chain and other businessrelationships
About NFLG
Message from the Chairman
Innovation-Driven Development & Suppliers and
Clients2-7 Employees
Equal Employment
Data Overview2-8 Workers who are not employeesData Overview2-9 Governance structure and compositionSustainability-Related Governance Mechanisms2-10 Nomination and selection of the highestgovernance body
Sustainability-Related Governance Mechanisms2-11 Chair of the highest governance bodySustainability-Related Governance Mechanisms2-12 Role of the highest governance body inoverseeing the management of impacts
Energy Conservation Management
Pollution Control and Ecosystem Protection
Sustainability-Related Governance Mechanisms
Risk Management, Internal Control, and
Compliance2-13 Delegation of responsibility for manag-ing impacts
Sustainability-Related Governance Mechanisms
Risk Management, Internal Control, and
Compliance2-14 Role of the highest governance body insustainability reporting
Sustainability-Related Governance Mechanisms2-15 Con?icts of interestSustainability-Related Governance Mechanisms2-16 Communication of critical concernsCommunications with stakeholders
GRI 2: Gen-eral Disclo-sures 2021
2-17 Collective knowledge of the highestgovernance body
Sustainability-Related Governance Mechanisms2-18 Evaluation of the performance of thehighest governance body
Not covered in this report
Data notcollectedduring thisreport period2-19 Remuneration policiesSustainability-Related Governance Mechanisms2-20 Process to determine remunerationSustainability-Related Governance Mechanisms2-21 Annual total compensation ratioNot covered in this report
Data not collectedduring this reportperiod2-22 Statement on sustainable developmentstrategy
Message from the Chairman
Corporate Strategy
2-23 Policy commitments
Climate Response
Pollution Control and Ecosystem Protection
Responsible Marketing Activities
Human Rights Protection
Occupational Health and Safety
Rural Revitalization and Social Contribution
Anti-Commercial Bribery and Anti-Unfair
Competition
2-24 Embedding policy commitments
Climate Response
Pollution Control and Ecosystem Protection
Responsible Marketing Activities
Human Rights Protection
Occupational Health and Safety
Rural Revitalization and Social Contribution
Risk Management, Internal Control, and
Compliance
Anti-Commercial Bribery and Anti-Unfair
Competition
2-25 Processes to remediate negative impacts
Climate Response
Pollution Control and Ecosystem Protection
Responsible Supply Chain
Excellent Customer Service
Information Security and Privacy Protection
Rural Revitalization and Social Contribution
Risk Management, Internal Control, and
Compliance
Anti-Commercial Bribery and Anti-Unfair
Competition
GRI Stan-
dards
DisclosuresLocationOmission
124123
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GRI 2: Gen-eral Disclo-sures 2021
2-26 Mechanisms for seeking advice andraising concerns
Responsible Supply ChainExcellent Customer ServiceEmployee CommunicationOccupational Health and SafetyEstablishment of a Community-friendlyCommunication MechanismStabilize Industries to Promote Employment andRural RevitalizationProtection of Investor Rights and InterestsCommunications with stakeholdersComplaint Mechanism and ComplainantProtection
2-27 Compliance with laws and regulations
Energy Conservation ManagementPollution Control and Ecosystem ProtectionInformation Security and Privacy ProtectionResponsible Marketing ActivitiesHuman Rights ProtectionOccupational Health and SafetyGovernance StructureProtection of Investor Rights and InterestsRisk Management, Internal Control, andComplianceAnti-Commercial Bribery and Anti-UnfairCompetition2-28 Membership associationsPromote Industry Development2-29 Approach to stakeholder engagementCommunications with stakeholders2-30 Collective bargaining agreementsNot covered in this report
Data not collectedduring this reportperiod
Material topics
GRI 3: Mate-rial Topics2021
3-1 Management of material topics
Material Issues AssessmentCommunications with stakeholders3-2 List of material topicsMaterial Issues AssessmentEconomic performanceGRI 3: Mate-rial Topics2021
3-3 Management of material topics
Sustainable Development Risk ManagementGovernance StructureRisk Management, Internal Control, andComplianceCommunications with stakeholders
GRI 201:
EconomicPerfor-mance 2016
201-1 Direct economic value generated anddistributed
2023 At a Glance201-2 Financial implications and other risksand opportunities due to climate change
Sustainable Development Risk Management
Risk Management, Internal Control, and
Compliance201-3 De?ned bene?t plan obligations andother retirement plans
Data Overview201-4 Financial assistance received fromgovernment
2023 At a GlanceMarket presenceGRI 3: Mate-rial Topics2021
3-3 Management of material topicsHuman Rights ProtectionGRI 202:
MarketPresence2016
202-1 Ratios of standard entry level wage by
gender compared to local minimum wage
Data Overview
202-2 Proportion of senior management
hired from the local community
Data OverviewIndirect economic impactGRI 3: Mate-rial Topics2021
3-3 Management of material topicsRural Revitalization and Social ContributionGRI 203:
IndirectEconomicImpacts2016
203-1 Infrastructure investments and services
supported
Rural Revitalization and Social Contribution
203-2 Signi?cant indirect economic impactsRural Revitalization and Social ContributionProcurement practices
GRI 3: Mate-rial Topics2021
3-3 Management of material topicsResponsible Supply ChainGRI 204:
Procure-ment Prac-tices 2016
204-1 Proportion of spending on local suppli-
ers
Not covered in this report
Data not collectedduring the reportingperiodAnti-corruption
GRI 3: Mate-rial Topics2021
3-3 Management of material topicsAnti-Corruption and Anti-Bribery
GRI Stan-
dards
DisclosuresLocationOmissionGRI Stan-
dards
DisclosuresLocationOmission
126125
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GRI 205:
Anti-corrup-tion 2016
205-1 Operations assessed for risks related tocorruption
Anti-Corruption and Anti-Bribery205-2 Communication and training aboutanti-corruption policies and procedures
Anti-Corruption and Anti-Bribery205-3 Con?rmed incidents of corruption andactions taken
Anti-Corruption and Anti-Bribery
Data Overview
Anti-competitive behaviorGRI 3: Mate-rial Topics2021
3-3 Management of material topicsAnti-unfair Competition and Anti-MonopolyGRI 206:
Anti-com-petitiveBehavior2016
206-1 Legal actions for anti-competitive
behavior, anti-trust, and monopoly practices
Anti-unfair Competition and Anti-MonopolyData OverviewTaxGRI 3: Mate-rial Topics2021
3-3 Management of material topicsTax Compliance Management
GRI 207: Tax2019
207-1 Approach to taxTax Compliance Management
207-2 Tax governance, control, and risk man-
agement
Tax Compliance Management
207-3 Stakeholder engagement and manage-
ment of concerns related to tax
Tax Compliance ManagementCommunications with stakeholders
207-4 Country-by-country reportingNot covered in this report
Data not collectedduring this reportperiod
Materials
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
Corporate StrategyAction for GHG Emission ReductionWaste DisposalResource Utilization and Circular EconomyData OverviewGRI 301:
Materials2016
301-1 Materials used by weight or volume
Resource Utilization and Circular EconomyData Overview
GRI 301:
Materials2016
301-2 Recycled input materials used
Action for GHG Emission ReductionResource Utilization and Circular EconomyWaste DisposalData Overview301-3 Reclaimed products and their packag-ing materials
Resource Utilization and Circular EconomyEnergy
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
2023 At a Glance
Corporate Strategy
Energy Conservation Management
Action for GHG Emission Reduction
Resource Utilization and Circular Economy
Data Overview
GRI 302: En-ergy 2016
302-1 Energy consumption within the organi-zation
Energy Conservation Management
Data Overview302-2 Energy consumption outside of theorganization
Not covered in this report
Due to the privacypolicies of some ofclients, this report iscurrently unable toaccurately calculatethe external energyconsumption of theorganization302-3 Energy intensityData Overview302-4 Reduction of energy consumption
Corporate Strategy
Energy Conservation Management
Action for GHG Emission Reduction
Resource Utilization and Circular Economy302-5 Reductions in energy requirements ofproducts and services
Action for GHG Emission Reduction
Resource Utilization and Circular EconomyWater and e?uents
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
Corporate Strategy
Action for GHG Emission Reduction
Pollution Control and Ecosystem Protection
Water Resources Conservation
Wastewater Management
Data Overview
GRI Stan-
dards
DisclosuresLocationOmissionGRI Stan-
dards
DisclosuresLocationOmission
128127
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GRI 303:
Water andE?uents2018
303-1 Interactions with water as a sharedresource
Corporate StrategyAction for GHG Emission ReductionWater Resources ConservationWastewater Management
303-2 Management of water discharge-relat-ed impacts
Corporate StrategyAction for GHG Emission ReductionWater Resources ConservationWastewater Management303-3 Water withdrawalData Overview303-4 Water dischargeData Overview303-5 Water consumptionData Overview
Biodiversity
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
Corporate StrategyPollution Control and Ecosystem ProtectionBiodiversity Protection
GRI 304:
Biodiversity2016
304-1 Operational sites owned, leased,managed in, or adjacent to, protected areasand areas of high biodiversity value outsideprotected areas
Not covered in this report
The businessoperations are notlocated within oradjacent to protectedareas or areas rich inbiodiversity outsideprotected areas304-2 Signi?cant impacts of activities, prod-ucts and services on biodiversity
Not covered in this report
The businessoperations will nothave a signi?cantimpact onbiodiversity304-3 Habitats protected or restoredNot covered in this report
The businessoperations are notlocated in protectedor restored habitats
304-4 IUCN Red List species and national con-servation list species with habitats in areasa?ected by operations
Not covered in this report
The businessoperations andsurrounding areas donot involve a?ectedhabitats
Emissions
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
GHG Emissions ManagementEnergy Conservation ManagementAction for GHG Emission ReductionPollution Control and Ecosystem ProtectionAir Emissions ManagementData Overview
GRI 305:
Emissions2016
305-1 Direct (Scope 1) GHG emissions
GHG Emissions ManagementData Overview305-2 Energy indirect (Scope 2) GHG emis-sions
GHG Emissions ManagementData Overview305-3 Other indirect (Scope 3) GHG emissionsNot covered in this report
During this reportingperiod, we have notyet compiled thisdata305-4 GHG emissions intensity
2023 At a GlanceGHG Emissions ManagementData Overview305-5 Reduction of GHG emissions
Action for GHG Emission ReductionSolutions for Recycling of Construction Waste305-6 Emissions of ozone-depleting sub-stances (ODS)
Not applicable
The operations donot involve relevantemissions305-7 Nitrogen oxides (NOx), sulfur oxides(SOx), and other signi?cant air emissions
Data OverviewWaste
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
Corporate Strategy
Action for GHG Emission Reduction
Resource Utilization and Circular Economy
Waste Disposal
Data Overview
GRI 306:
Waste 2020
306-1 Waste generation and signi?cantwaste-related impacts
Action for GHG Emission Reduction
Resource Utilization and Circular Economy
Waste Disposal306-2 Management of signi?cant waste-relat-ed impacts
Corporate Strategy
Action for GHG Emission Reduction
Resource Utilization and Circular Economy
Waste Disposal
GRI Stan-
dards
DisclosuresLocationOmissionGRI Stan-
dards
DisclosuresLocationOmission
130129
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GRI 306:
Waste 2020
306-3 Waste generated
Waste DisposalData Overview306-4 Waste diverted from disposal
Waste DisposalData Overview306-5 Waste directed to disposal
Waste DisposalData OverviewSupplier environmental assessment
GRI 3: Mate-rial Topics2021
3-3 Management of material topicsResponsible Supply ChainGRI 308:
Supplier En-vironmentalAssessment2016
308-1 New suppliers that were screened
using environmental criteria
Data Overview
308-2 Negative environmental impacts in the
supply chain and actions taken
Responsible Supply Chain
Employee
GRI 3: Mate-rial Topics2021
3-3 Management of material topicsHuman Rights Protection
GRI 401:
Employ-ment 2016
401-1 New employee hires and employee
turnover
Data Overview
401-2 Bene?ts provided to full-time employ-
ees that are not provided to temporary or
part-time employees
Employee Development
401-3 Parental leaveNot covered in this report
Not yet calculatedduring the reportingperiodLabor management relationsGRI 3: Mate-rial Topics2021
3-3 Management of material topics
Human Rights ProtectionEmployee CommunicationGRI 402:
Labor/Man-agementRelations2016
402-1 Minimum notice periods regarding
operational changes
Not covered in this report
The company is notinvolved in relevantmattersOccupational Health and SafetyGRI 3: Mate-rial Topics2021
3-3 Management of material topicsOccupational Health and Safety
GRI 403: Oc-cupationalHealth andSafety 2018
403-1 Occupational health and safety man-agement system
Occupational Health and Safety403-2 Hazard identi?cation, risk assessment,and incident investigation
Occupational Health and Safety403-3 Occupational health servicesOccupational Health and Safety403-4 Worker participation, consultation, andcommunication on occupational health andsafety
Occupational Health and Safety403-5 Worker training on occupational healthand safety
Occupational Health and Safety
Data Overview403-6 Promotion of worker healthOccupational Health and Safety403-7 Prevention and mitigation of occu-pational health and safety impacts directlylinked by business relationships
Occupational Health and Safety403-8 Workers covered by an occupationalhealth and safety management system
Occupational Health and Safety403-9 Work-related injuries
Occupational Health and Safety
Data Overview403-10 Work-related ill health
Occupational Health and Safety
Data OverviewTraining and educationGRI 3: Mate-rial Topics2021
3-3 Management of material topicsEmployee Development
GRI 404:
Trainingand Educa-tion 2016
404-1 Average hours of training per year peremployee
Data Overview404-2 Programs for upgrading employee skillsand transition assistance programs
Employee Development404-3 Percentage of employees receivingregular performance and career developmentreviews
Data OverviewDiversity and equal opportunityGRI 3: Mate-rial Topics2021
3-3 Management of material topicsHuman Rights ProtectionGRI 405:
Diversityand EqualOpportuni-ty 2016
405-1 Diversity of governance bodies and em-
ployees
Human Rights Protection
GRI Stan-
dards
DisclosuresLocationOmissionGRI Stan-
dards
DisclosuresLocationOmission
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GRI 405:
Diversityand EqualOpportuni-ty 2016
405-2 Ratio of basic salary and remunerationof women to men
Not covered in this report
Not yet calculatedduring the reportingperiod
Non-discrimination
GRI 3: Mate-rial Topics2021
3-3 Management of material topicsHuman Rights ProtectionGRI 406:
Non-dis-crimination2016
406-1 Incidents of discrimination and correc-
tive actions taken
Human Rights Protection
Freedom of association and collective bargainingGRI 3: Mate-rial Topics2021
3-3 Management of material topicsEmployee CommunicationGRI 407:
Freedomof Associ-ation andCollectiveBargaining2016
407-1 Operations and suppliers in which the
right to freedom of association and collective
bargaining may be at risk
Not covered in this report
Data not yet collectedduring the reportingperiodChild laborGRI 3: Mate-rial Topics2021
3-3 Management of material topicsHuman Rights ProtectionGRI 408:
Child Labor2016
408-1 Operations and suppliers at signi?cant
risk for incidents of child labor
Not covered in this report
Data not yet collectedduring the reportingperiodForced or compulsory laborGRI 3: Mate-rial Topics2021
3-3 Management of material topicsHuman Rights ProtectionGRI 409:
Forced orCompulsoryLabor 2016
409-1 Operations and suppliers at signi?cant
risk for incidents of forced or compulsory
labor
Human Rights ProtectionSecurity practicesGRI 3: Mate-rial Topics2021
3-3 Management of material topicsHuman Rights Protection
GRI 410:
SecurityPractices2016
410-1 Security personnel trained in humanrights policies or procedures
Data OverviewRight of indigenous peoplesGRI 3: Mate-rial Topics2021
3-3 Management of material topicsRural Revitalization and Social ContributionGRI 411:
Rights ofIndigenousPeoples2016
411-1 Incidents of violations involving rights
of indigenous peoples
Not covered in this report
The company is notinvolved in relevantmattersLocal communitiesGRI 3: Mate-rial Topics2021
3-3 Management of material topicsRural Revitalization and Social ContributionGRI 413: Lo-cal Commu-nities 2016
413-1 Operations with local community
engagement, impact assessments, and devel-
opment programs
Rural Revitalization and Social Contribution
413-2 Operations with signi?cant actual and
potential negative impacts on local commu-
nities
Rural Revitalization and Social ContributionSupplier social assessment
GRI 3: Mate-rial Topics2021
3-3 Management of material topicsResponsible Supply ChainGRI 414:
Supplier So-cial Assess-ment 2016
414-1 New suppliers that were screened
using social criteria
Data Overview
414-2 Negative social impacts in the supply
chain and actions taken
Responsible Supply ChainPublic policyGRI 3: Mate-rial Topics2021
3-3 Management of material topicsNot covered in this report
The company is notinvolved in relevantmattersGRI 415:
Public Poli-cy 2016
415-1 Political contributionsNot covered in this report
The company is notinvolved in relevantmatters
GRI Stan-
dards
DisclosuresLocationOmissionGRI Stan-
dards
DisclosuresLocationOmission
134133
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Customer health and safety
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
Responsible ProductsExcellent Customer ServiceGRI 416:
CustomerHealth andSafety 2016
416-1 Assessment of the health and safetyimpacts of product and service categories
Responsible Products416-2 Incidents of non-compliance concern-ing the health and safety impacts of productsand services
Responsible ProductsMarketing and labelingGRI 3: Mate-rial Topics2021
3-3 Management of material topicsResponsible Marketing Activities
GRI 417:
Marketingand Label-ing 2016
417-1 Requirements for product and serviceinformation and labeling
Responsible Marketing Activities417-2 Incidents of non-compliance concern-ing product and service information andlabeling
Responsible Marketing Activities417-3 Incidents of non-compliance concern-ing marketing communications
Responsible Marketing Activities
Customer privacy
GRI 3: Mate-rial Topics2021
3-3 Management of material topics
Excellent Customer Service
Information Security and Privacy ProtectionGRI 418:
CustomerPrivacy2016
418-1 Substantiated complaints concerningbreaches of customer privacy and losses ofcustomer data
Information Security and Privacy Protection
Data Overview
GRI Stan-
dards
DisclosuresLocationOmission
ISDS IndexIFRS S1CoreContent
Disclosure RequirementsLocation
Governance
a)The governance body(s) (which can include aboard, committee orequivalent body charged with governance) or individual(s) responsible foroversight of sustainability-related risks and opportunities.
Governance StructureRisk Management, InternalControl, and Complianceb)Management's role in the governance processes, controls and proceduresused to monitor, manage and oversee sustainability-related risks andopportunities.
Governance StructureRisk Management, InternalControl, and Compliance
Strategy
a)The sustainability-related risks and opportunities that could reasonably beexpected to a?ect the entity's prospects within the time horizons—short,medium or long term.
Sustainable Development RiskManagementb)The current and anticipated e?ects of sustainability-related risks andopportunities on the entity's business model and value chain, and where inthe entity's business model and value chain sustainability-related risks andopportunities are concentrated
Sustainable Development RiskManagementc)How the entity has responded to, and plans to respond to, sustainability-related risks and opportunities in its strategy and decision-making, andthe progress against plans the entity has disclosed in previous reportingperiods, including quantitative and qualitative information, and trade-o?s between sustainability-related risks and opportunities that the entityconsidered.
Sustainable Development RiskManagementd)The quantitative and qualitative e?ects of sustainability-related risks andopportunities on the entity's ?nancial position, ?nancial performance andcash ?ows for the reporting period, and the sustainability-related risks andopportunities identi?ed for which there is a signi?cant risk of a materialadjustment within the next annual reporting period to the carrying amountsof assets and liabilities reported in the related ?nancial statements, andhow the entity expects its ?nancial position, ?nancial performance and cash?ows to change over the short, medium and long term, given its strategy tomanage sustainability-related risks and opportunities.
Data not collected in thisreport
e)The resilience of the entity's strategy and its business model to thosesustainability-related risks
Sustainable Development RiskManagement
RiskManagement
a)The processes and related policies the entity uses to identify, assess,prioritize and monitor sustainability-related risks, including informationabout: the inputs and parameters the entity uses，whether and how theentity uses scenario analysis to inform its identi?cation of sustainability-related risks, whether and how the entity prioritizes sustainability-relatedrisks, how the entity assesses the nature, likelihood and magnitude of thee?ects of those risks.
Sustainable Development RiskManagementRisk Management, InternalControl, and Complianceb)The processes the entity uses to identify, assess, prioritize and monitorsustainability-related opportunities, including: whether and how the entityuses scenario analysis to inform its identi?cation of sustainability-relatedopportunities.
Data not collected in thisreportc)The extent to which, and how, the processes the entity uses to identify,assess, prioritize and monitor sustainability-related risks and opportunitiesare integrated into and inform the entity's overall risk management process.
Sustainable Development RiskManagementRisk Management, InternalControl, and Compliance
136135
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Metrics andtargets
a)Metrics required by an applicable IFRS Sustainability Disclosure Standard.
EnvironmentalSocialGovernance
b)Metrics the entity uses to measure and monitor sustainability-related risksor opportunities and its performance in relation to that sustainability-related risk or opportunity.
EnvironmentalSocialGovernancec)Any targets the entity has set it is required to meet by law or regulation.
EnvironmentalSocialGovernance
CoreContent
Disclosure RequirementsLocation
IFRS S2
CoreContent
Disclosure RequirementsLocation
Governance
a)The governance body(s) (which can include a board, committee orequivalent body charged with governance) or individual(s) responsible foroversight of climate-related risks and opportunities.
Governance StructureRisk Management, InternalControl, and Complianceb)Management's role in the governance processes, controls and proceduresused to monitor, manage and oversee climate-related risks andopportunities
Governance StructureRisk Management, InternalControl, and Compliance
Strategy
a)The climate-related risks and opportunities that could reasonably beexpected to a?ect the entity's prospects within time horizons—short,medium or long term, whether the entity considers the risk to be a climate-related physical risk or climate-related transition risk
Sustainable Development RiskManagementb)The current and anticipated e?ects of climate-related risks and opportunitieson the entity's business model and value chain, and where in the entity'sbusiness model and value chain climate-related risks and opportunities areconcentrated
Sustainable Development RiskManagementc)Information about how the entity has responded to, and plans to respondto, climate-related risks and opportunities in its strategy and decision-making, including how the entity sets targets, how the entity is resourcingand quantitative and qualitative information about the disclosed progress ofplans.
Sustainable Development RiskManagementd)The quantitative and qualitative e?ects of those climate-related risks andopportunities on the entity's ?nancial position, ?nancial performanceand cash ?ows for the reporting period, the climate-related risks andopportunities identi?ed in paragraph 16(a) for which there is a signi?cantrisk of a material adjustment within the next annual reporting period to thecarrying amounts of assets and liabilities reported in the related ?nancialstatements, and how the entity expects its ?nancial position, ?nancialperformance and cash ?ows to change over the short, medium and longterm, given its strategy to manage climate-related risks and opportunities.
Data not collected in thisreporte)The entity's assessment of its climate resilience, including theentity'sassessment for its strategy and business model, the signi?cant areasof uncertainty considered in the entity's assessment of its climate resilienceand the entity's capacity to adjust or adapt its strategy and business modelto climate change over the short, medium and long term. The entity shall useclimate-related scenario analysis to assess its climate resilience and disclosehow and when the climate-related scenario analysis was carried out,including information about the inputs the entity used, the key assumptionsthe entity made in the analysis and the reporting period in which theclimate-related scenario analysis was carried out.
Sustainable Development RiskManagement
RiskManagement
a)The processes and related policies the entity uses to identify, assess,prioritize and monitor climate-related risks, including information about:
the inputs and parameters the entity uses, whether and how the entity usesclimate-related scenario analysis to inform its identi?cation of climate-related risks, whether and how the entity prioritizes climate-related risks,how the entity assesses the nature, likelihood and magnitude of the e?ectsof those risks
Sustainable Development RiskManagementRisk Management, InternalControl, and Complianceb)The processes the entity uses to identify, assess, prioritize and monitorclimate-related opportunities, including information about whetherand how the entity uses climate-related scenario analysis to inform itsidenti?cation of climate-related opportunities.
Data not collected in thisreport
c)The extent to which, and how, the processes for identifying, assessing,prioritizing and monitoring climate-related risks and opportunities areintegrated into and inform the entity's overall risk management process.
Sustainable Development RiskManagementRisk Management, InternalControl, and Compliance
Metrics andtargets
a)The cross-industry metric categories of greenhouse gas emissions, internalcarbon prices, the percentage of executive management remunerationrecognized in the current period that is linked to climate-relatedconsiderations, capital deployment towards climate-related risks andopportunities, the amount and percentage of assets or business activitiesvulnerable to climate-related risks and opportunities.
Sustainable Development RiskManagementGHG Emissions ManagementGovernance StructureData Overviewb)Industry-based metrics that are associated with one or more particularbusiness models, activities or other common features that characterizeparticipation in an industry
Energy ConservationManagementc)The quantitative and qualitative climate-related targets the entity has setor it is required to meet by law or regulation, progress towards reachingthe target, information about its performance, and each greenhouse gasemissions target.
Climate Response
核心要素披露建议披露位置
2023 Sustainability Report
SASB Index
SASB TopicsAccounting MetricsLocation
Energy Management
RT-IG-130a.1:
(1) Total energy consumed,
(2) percentage grid electricity and
(3) percentage renewable
Energy ConservationManagementData Overview
Employee Health & Safety
RT-IG-320a.1:
(1) Total recordable incident rate (TRIR),
(2) fatality rate, and
(3) near miss frequency rate (NMFR)
Occupational Health and SafetyData Overview
Fuel Economy &Emissions in Use-phase
RT-IG-410a.1:
Sales-weighted ?eet fuel e?ciency for medium- and heavy-dutyvehicles
Data not collected during thereporting periodRT-IG-410a.2:
Sales-weighted fuel e?ciency for non-road equipment
Data not collected during thereporting periodRT-IG-410a.3:
Sales-weighted fuel e?ciency for stationary generators
Data not collected during thereporting period
RT-IG-410a.4:
Sales-weighted emissions of
(1)nitrogen oxides (NOx) and
(2)particulate matter (PM) for:
(a)marine diesel engines,(b)locomotive diesel engines,(c)on-road medium- and heavy-duty engines and(d) other non-road diesel engines
Data not collected during thereporting period
Materials Sourcing
RT-IG-440a.1:
Description of the management of risks associated with the use ofcritical materials
Responsible Supply ChainResponsible ProductsResponsible MarketingActivitiesRemanufacturing Design
&Services
RT-IG-440b.1：
Revenue from remanufactured products and remanufacturing ser-vices
Data not collected during thereporting period
Fujian South Highway Machinery Co., Ltd.
Headquarters Address: No.700 Sports Street, High-tech Industrial Park, Fengze District, Quanzhou CityWeb Address: https://www.n?g.com/