Content
Chairman's Message 1-2 About the Report 3-4 YueAn's 20 Years 5-7
?Company Profile?Product Category?Product Main Applications?Company History Assessment of Material Issues 8-11
?Identifying Material Issues?Stakeholder Inclusiveness?Material Issue Matrix ESG Management System 12-18
?ESG Strategy
?Investor Relations?Compliance Operations?Community Party Construction?Intelligent Factory?Information Security03 Value Chain Synergy 43-47
?Supply Chain Synergy?Marketing Synergy?Anti-corruption, Anti-bribery,
Anti-fraud04 Sustainable Human Development 48-63
?Employee Rights?Employee Diversity?Employee Communication?Safety and Health
?
?ESG Management and Planning?ESG System?Industrial Strategic Planning01 Green Scientific Innovation 19-34
?Green R&D?Green Quality Control?Green Process?Green Water Use?Green Gas?Green Energy?Green Waste Management?Green Noise Reduction?Green Office02 Digital Corporate Governance 35-42
?Governance Structure
?Employee Compensation and Incentives?Employee Promotion?Employee Training andDevelopment?Employee Care and Community Vitality?Poverty Alleviation?Rural Revitalization
?
Appendix 1: GRI report disclosureIndex 64-70Appendix 2: Summary of KeyPerformance Indicators 71-72Reader Feedback Form 73-74
?
2023 ESG ReportTo keep up with the pace of the industrial development, YueAn uses new digital,informationize and automated technology. As a high-tech company, we introduced digital,
informationize and automated technology to upgrade production lines, and to improve QC process.Our MES (Phase I) has been successfully launched and put into use in 2023, and we plan to graduallyupgrade our ERP, OA and CRM. In 2023, the company won the dual honorary title of "JiangxiProvince informatization and Industrialization Integration Demonstration Enterprise" and"Informatization Management demonstration enterprise". In the future, we will gradually implement thedata integration between various online systems to provide a good hardware and software foundationfor the company to achieve digital and fine management, and further improve the overall operatingefficiency of the company.YueAn always takes social responsibility into consideration, we actively helps to promotetechnological innovation and carbon reduction. For carbonyl iron powder, YueAn sets the industry
benchmark in the subdivision field globally and obtaines a number of powder metallurgy relatedpatents. In 2023, the company comprehensively deepened energy conservation projects, graduallyincreased the proportion of clean energy use, and successfully monitored and effectively reducedcarbon emissions. In future, we will continue to respond to the “dual carbon” strategy in China, becommitted to the development of more efficient and environmentally friendly production processes aswell as the recycling and reuse of raw materials.
Caring for society and giving back to the community has been one of YueAn's core valuessince its establishment. In cooperation with the society, YueAn actively participated in the cultural
construction and organized a number of activities to promote the rural revitalization strategy. To learnmore of our history and stimulate their enthusiasm of pursuing grand dreams, we invited local youngpeople to visit Beijing, the historic capital of China. We also organized many large-scale activities suchas "ten thousand enterprises thriving ten thousand villages", and made proud achievements in the"five small" and other activities of provincial employees.
We believe that the success of a company is not just about the capability of the individualentity, but also the result of the joint efforts with the whole society. Therefore, we will furthercooperate with the society to promote sustainable development in powder metallurgy, environmentalprotection and other fields. Adhering to the business philosophy of "innovation, cooperation, win-win",we are willing to explore the market and expand new business areas. All of our staff will work togetherto deal with various challenges to ensure the steady development of our company, to continuouslycreate value for customers, shareholders and the society!
Year 2024 is a milestone of YueAn’s 20th anniversary, we forge ahead to get moreachievements. The world’s economy is gradually recovering from major public health emergencies,
with the rapid development of digital technology and artificial intelligence, another industrial andscientific revolution is around the corner. In this fast-changing circumstance, our companycontinuously seeks for cutting-edge technology to help with our highly-qualified sustainabledevelopment. And we will always be customer-centric, and continue to provide high-quality productsfor our customers worldwide.
2023 is the first year that YueAn officially implements the ESG strategy In 2023, we further
integrated sustainable development into our company strategy, we improved the organizationalstructure of YueAn ESG Committee and promote relevant implementation plans. Starting from fourstrategic pillars: green innovation, digital corporate governance, collaborative Value Chain Synergy,and sustainable human development, we set systematic measurements in environmental, social andcorporate governance aspects, embedding ESG concepts deeply into all fields of the company'sdevelopment, forming a measurable, achievable, monitorable, and digitalized management system.
Chairman's Statement
JIANGXI YUEAN ADVANCEDMATERIALS CO.,LTD.Chairman Shangkui Li
YueAn’s 2023 ESG Report (hereinafter referred to as ”this report”) is the firstEnvironmental, social and Governance (ESG) report issued by Jiangxi YueAnAdvanced Materials Co.,Ltd.. Based on the principles of objectivity, standardization,transparency, accuracy and comprehensiveness, this report details the company'smanagement strategies, practices and performance in the field of environmental,social, corporate governance and other sustainable development in 2023.
Abbreviations
Time Range
This report covers the period from January 1st, 2023, to December 31st, 2023,showcasing the company's achievements in sustainable development.Report Scope
Unless otherwise stated, the content disclosed in this report covers the same scope asthe annual report.
Data Explanation
Unless otherwise stated, all the information and data disclosed in this report are derivedfrom internal documents of Jiangxi YueAn Advanced Materials Co.,Ltd., its branches,consolidated subsidiaries, and equity-participated subsidiaries, public data from governmentdepartments, internal collection and statistics of the company.
Report Standards
?ISO 26000:2010 Guidance on Social Responsibility?United Nations - Global Reporting Initiative (Global Reporting Initiative, GRI) Reporting
Standards?United Nations - Sustainable Development Goals (Sustainable Development Goals ,
SDGs) Corporate Action Guide?United Nations - Climate-Related Financial Disclosures TCFD (Task Force on Climate-
Related Financial Disclosures)?Chinese National Standard GB/T 36001-2015 Guidelines for Writing Social
Responsibility Reports?Economic Department of the Chinese Academy of Social Sciences Corporate Social
Responsibility Research Center - Guidelines for Writing Corporate Social Responsibility
Reports in China (CASS-ESG 5.0)?Shanghai Stock Exchange - Guidelines for Environmental Information Disclosure of
Listed Companies on the Shanghai Stock Exchange?Guidance on the Application of Self-Regulatory Rules for Companies Listed on the
STAR Market of the Shanghai Stock Exchange No. 3 - Continuous Disclosure of Sci-
Tech Attributes and Related MattersConfirmation and Approval
This report was approved for release by our company's board of directors on April 20,2024. The board of directors of the group commits to supervising the content of the report,ensuring there are no false records or misleading statements, and is responsible for thetruthfulness, accuracy, and completeness of its content.Report Acquisition
The electronic version of this report can be viewed and downloaded from ShanghaiStock Exchange website (http://www.sse.com.cn) or our company's website (http://www.yueanmetal.com). The Report is published in Chinese, with an English translation.Should there be any inconsistency between the Chinese and English versions, the Chineseversion shall prevail.
About the Report
Abbreviations
Reference
Our Group, we,YueAn, the company
Jiangxi YueAn Advanced Materials Co.,Ltd.
YueAn’s 20 Years
Company Profile
“Guided by needs of the market and been aiming at the world’s leading standards, we brokethrough technical barries step by step and comes to be one of the industrial leadingcompanies ever since our establishment.”
YueAn was established in 2004 in Dayu County, Ganzhou City, Jiangxi Province, and iscommitted to the research and development of micro-nano metal powder. Our company hasa wealth of patented technologies and owes the names of The Provincial EnterpriseTechnology Center, The Provincial Carbonyl Iron Powder Engineering Research Center. Wealso participated in the formulation of some national standards and industry standards, andobtains multiple quality certifications. Bringing together expert professors and seniorengineers, including 2 State Council grant recipients, we attache great importance topersonnel training and have firm cooperations with some top scientific research institutionsand universities in China. We have applied our micro and nano powders into industrial and3C market, and made some breakthroughs in the field of 3D printing. Thus, We are hoping toopen a new chapter of the production-learning-research model.
Product Category
Carbonyl Iron Powder Series
Atomized Alloy PowderSeries
Soft Magnetic Powder Series
MIM Feeding Series
Wave Absorbing MaterialSeries
Product Main Applications
?Powder Metallurgy / Metal Injection
Molding (MIM)
?Electronic Components
?Microwave Absorption / StealthMaterials
?Diamond Tools / Hard Alloys
?Chemical Catalytic Synthesis
?3D Printing (Additive Manufacturing)
Company History
Lead New Material Technology
Drive a Sustainable Future
ESG Vision
Innovate with TechnologyBecoming the Leader for New Materials
Support sustainable development
ESG Mission
Adhering to the People-Oriented PrinciplePursuing keen innovation and green developmentAchieve common prosperity for both the enterprise
and society
ESG Core Values
20042012201620202024
2004
2008
2009
2010
2012
2014
2019
2020
2021
2023
Jiangxi YueAn Superfine MetalCo., Ltd. was established.
High-pressure cyclic carbonyliron powder productiontechnology was awarded the'Technology Innovation Fund forSmall and Medium-sizedEnterprises' by the Ministry ofScience and Technology
The company's micron-levelcarbonyl iron powderindustrialization project wasrecognized as ’2009 JiangxiProvince Major High-techIndustry Project‘
The company became a memberof the European PowderMetallurgy Association
The company was approvedas one of the first batch of'Specialized, Fined, Peculiar,and New Small GiantEnterprises' by MIIT (Ministryof Industry and InformationTechnology)
The company was approvedas 'Jiangxi Province OverseasExpertise Workstation'
Listed on the Science andTechnology Innovation Board ofthe SSE (Shanghai StockExchange), stock code: 688786
The company's annual productionof 6000 tons of carbon-based ironpowder and other series of productshas reached the predeterminedusable state. After the projectpasses the safety acceptanceapproval and fully reachesproduction, it will enable this seriesof products to have an annualproduction capacity of tens ofthousands of tons.
The company has beenrecognized as a 'NationalHigh-tech Enterprise'
The company was approvedas a 'Jiangxi ProvinceSpecialized, Fined, Peculiarand Innovative SME'
2008
In 2023, we collected feedback and expectations from the company's stakeholdersthrough surveys, visits, and other forms. Combined with the company's sustainabledevelopment goals, organization and operation, and economic benefit assessment, weobjectively assessed the 26 issues collected and clarified the strategic significance of theissues for the company's long-term development, and formed the following importance matrixand ranking.
Substantive issues identification methods
Assessment of Material Issue
Goals andDirections
Set overall communication goals and directions to better communicate withstakeholders through the disclosure of information in the ESG report, anddeliver the company's ESG results, obtain stakeholder feedback, andimprove risk management and operational capabilities.
Identification and
Planning
Identify and determine the list of substantive issues for the year based onthe results of the analysis of business and social trends. The list covers 26issues under the three categories of "environment", "society" and"corporate governance".
Observation andResearch
With the list of issues as the core content of the survey, an online surveyquestionnaire was designed, relevant parties were invited to participate inassessing the importance of the issues, and open-ended questions wereanswered through interviews and other forms to elaborate their views andexpectations on the company's ESG work. A total of 254 validquestionnaires were collected.
Analysis andEvaluation
Through the analysis of the questionnaire results, the importance of 26topics was assessed, and the evaluation matrix of this year's substantiveissues was prepared. Review stakeholder input and materialityassessment results, discuss with management and identify reportdisclosure priorities.
Drawing andConclusion
From the two dimensions of "the importance of economic, environmentaland social impact" and "the impact on stakeholder evaluation anddecision-making", a matrix graph is drawn combining the importance ratingand the weight of each stakeholder to the issue, so as to determine thepriority of the issue and make a reasonable allocation of ESG resources.
Stakeholder Communication
KeyStakeholders
Issues of Concern
Communication Channels
Employees
Occupational Health and Safety, EmployeeRights Protection, Employee Care, Diversityand Equality, Human Capital Development
Employee Activities, Workers' Congress, UnionActivities, Corporate Intranet, EmployeeTraining, Employee Feedback Platform,Employee Satisfaction Surveys, etc.
Government and
Regulation Body
Corporate Governance, Business Ethics andCompliance, Risk Management and Audit,Transparency in Information Disclosure,Intellectual Property Protection, Tax Safety,Climate Change and Carbon Emissions,Energy Management, Water ResourceConservation, Chemical Safety, EcologicalHarmony
Institutional inspection, policy implementation,information disclosure, etc.
Shareholders
and
Investors
Corporate governance, business ethics andcompliance, risk management and audit,information disclosure transparency, cleantechnology research and development,intellectual property protection, tax safety
Shareholders' meeting, financial reports, ESGreports, performance reports, roadshows,research, conference calls, etc.
Customers and
Consumers
Clean technology research anddevelopment, innovative servicemanagement, product quality management,product lifecycle management, informationsecurity
Product exhibitions, exchange visits, customerresearch, technical seminars, customersatisfaction surveys, etc.
Suppliers and
Partners
Sustainable Supply Chain, IndustrialCooperation Development, Business Ethicsand Compliance
Supplier Management Platform, SupplierTraining, Supplier Review, StrategicCooperation Negotiations, TelephoneCommunication, Irregular Visits, IndustryExhibitions, Industry Training, etc.
Media
Ecological Harmony, EnvironmentalProtection Publicity and Education, LocalCommunity Relations
Press Releases, Social Media Communication,Industry Exhibitions, Industry Seminars, etc.
Community
and Public
Local Community Relations, EnvironmentalManagement System, Climate Change andCarbon Emissions, Energy Management,Water Resource Conservation, ChemicalSafety, Ecological Harmony
Participation in activities, surveys, communityvolunteer activities, public welfare projects, etc.
We are committed to understanding and valuing the opinions of all stakeholders. Wehave identified seven key stakeholders and established open channels of communicationwith them. Through diverse forms of interaction, we continuously listen and respond to theirconcerns while working together with all parties to deepen the advancement of ESG issues inpractice. In addition, we actively cooperate with all parties to jointly promote the practicalimplementation of ESG issues and to ensure the depth and effectiveness of these activities.
Digital Corporate Governance
Collaborative Value Chain Synergy
Sustainable Talent Development
“Customer first, collaborative development”. We meet the needs of our customers withhigh-quality products, earn their trust, and effectively control costs through meticulous supplychain management. We establish good cooperative relationships with upstream anddownstream industry partners, jointly promoting the efficient operation and sustainabledevelopment of the entire value chain.
“Data-driven, scientific governance”. We believe that a clear digital strategy leads to anefficient management system, enhances the quality of decision-making and risk managementcapabilities, thereby optimizing resource allocation, and accelerating our response to marketchanges and stakeholder interests. This lays the foundation for the steady progress and long-term success of the enterprise.
“People-oriented, knowledge revitalization”. We firmly believe in the power of knowledgeand education as the key driving force for individual growth, national rejuvenation, and theadvancement of human society. Providing equal educational opportunities for everyone,making knowledge an important tool for promoting social equity, and cultivating talents whocan meet future challenges are the cornerstones for promoting our sustainable developmentand the harmonious progress of society.
Green Innovation
“Technological innovation, green development”, we deeply believe that science nurturesgreen productivity. By engaging in scientific research and development, promotingtechnological innovation and industrial progress, pursuing sustainable profit growth, weensure the harmonious coexistence of corporate development and environmental protection.
Governance
1. Transparency of InformationDisclosure
3. Intellectual Property Protection
4. Corporate Governance
5. ESG Management2. Information Security
6. Business Ethics and Compliance
7. Economic Performance
8. Risk Management and AuditSociety
10. Customer Service Management
13. Employee Rights Protection
14. Occupational Health and Safety
15. Diversity and Equality
11. Industrial Cooperation Development
17. Clean Technology R&D
18. Sustainable Supply Chain
9. Local Community Relations
12. Employee Care16. Product Quality Management
Environment
22. Energy Management
23. Chemical Product Safety
19. Climate Change25. Environmental Management
26. Ecological Harmony
20. Carbon Emissions
21. Product Lifecycle Management
24. Water Resource Management
The significance of impacts on the economy, environment, and societyThe impact on stakeholder assessment and decision-making
Material Issue Matrix
Issue Importance Assessment(Continued)
Very High
High
Medium
①
②③
④⑤
⑦⑥⑧
⑨
⑩
??
?
?
??
?
??
??
????
?
1011
We actively respond to national policies and establish a dedicated task force to mitigatecarbon emissions. We adopt a preventive-first and comprehensive prevention and controlenvironmental protection strategy, implementing comprehensive management from industrialwastewater, waste gas to waste residue, with an emphasis on maintaining environmentalprotection facilities. In pursuit of this goal, we have implemented an environmental targetresponsibility system, with the environmental protection department taking the lead inoverseeing the company's environmental protection efforts. Regular training sessions onenvironmental protection technology are conducted to enhance both production areas andsurrounding environments. We strictly adheres to relevant regulations for ensuring the safemanagement of hazardous materials. We firmly believe that every unit and individual has theright to work and live in a clean environment while also assuming the responsibility ofprotecting it as part of our commitment towards achieving environmental social responsibility.
During the reporting period, our company implemented strategies to reduceorganizational carbon emissions by focusing on two key areas: upgrading outdated energyequipment and promoting energy-saving practices among employees. Additionally,environmental protection personnel were assigned to monitor and record real-time carbonemissions. We also engaged in discussions with the personnel department to incorporatestrict control of organizational carbon into performance assessments. As a result of theseefforts, a significant reduction of 297.65 tons of carbon dioxide emissions was successfullyachieved.
ESG Strategy
As a pioneer in the domestic carbonyl iron powder industry, we are driven by marketdemand and guided by technological innovation and research and development. With arobust quality inspection system, we strive for comprehensive enhancements across theprocurement, production, and sales industry chain to maintain an absolute competitiveadvantage in specialized applications. In 2023, we continuously updated our existingtechnology to ensure real-time integration of market demands and customer feedback intoour value chain while consistently improving our R&D capabilities and quality systems toachieve a value-added closed loop within the industrial value chain.
Technological iteration and updatesSystem construction and improvement
Development strategyMarket demand
Product development
Technical inspection , verification , and expansion
Design review , confirmation
Funding plan
HumanMachineMaterial
Method
EnvironmentMeasurement
Procurement control systemSelection and management of suppliersProcurement quality inspection , acceptance , paymentService department feedback and returns
Sales plan , business development, pricing, samplingProduct delivery and customer service follow-upCustomer satisfaction and feedback
Sales management and processR&DMarket
ProductionProcurement
Human Resource support
1213
“Building a green factory is our unwavering goal. We draw up plans and systematically progress towards waste resource utilization, clean production, low-carbon energy, intensive landuse, and non-toxic raw materials.”
ESG Management and Planning
Our Goals
30%
"ZeroLandfill"
Carbon Management System
?Gradually learn and understandthe legality and compliance ofcarbon trading?Participate in diversified carbon
trading discussions and learning?Organizational control,
management and product designprocesses related to carbonemissions, procurement processes?Organizational carbon emission
data accounting
?Gradually establish a carbon
emission performance evaluationsystem?Establish , improve carbon asset
risk control
?Form carbon neutrality goals,
indicators?Based on carbon footprint data,
dock with international and
domestic trade rules
?Actively research carbon credit
evaluation content
NS
EAT
Greenhouse Gas Emission ReductionTargets
30%40%
Energy Consumption ReductionStandards
Water Conservation TargetsWaste Management Goals
Organization andEnvironmentCustomerRequirementsProduction
Organization andEnvironment
Products andCustomerSatisfaction
PlanningImplementation
DisposalInspection
Carbon Management Rules
With 2023 as the baseyear, to reduce carbonemission intensity in2030 by
With 2023 as the baseyear, to reduce energyconsumption intensity in2030 by
With 2023 as the baseyear, to reduce wateruse intensity in 2030 by
Commitment toachieve hazardouswaste production in2030 by
“According to the ESG strategic system, an organizational structure with decision-making,execution, and coordination has been formed to effectively support the implementation ofYueAn ESG strategy.”During the reporting period, we gradually established an ESG strategic system, designedthe operating model according to the actual situation of the company, including but not limitedto the existing organizational structure, company size, strategic needs, etc., and conducted atrial operation of this organizational structure.
Board of Directors
The Board of Directors is the decision-making body, they are responsible for makingdecisions on relevant major environmental, social and governance issues and topics, as wellas reviewing the company's annual Environmental, social and Governance (ESG) report.
ESG Strategy Committee
The company's ESG Strategy Committee is responsible for researching and formulatingthe company's Environmental, social and Governance strategies. The ESG StrategyCommittee reports to the Board of Directors and is accountable to the Board of Directors.
ESG System
Board of Directors
Strategy CommitteeESG Strategy CommitteeESG Executive ManagerESG External Experts and
Alliances
ESG System Management
and OperationGreen Scientific
Innovation
Value Chain Collaborative
Development
Digital Corporate
Governance
Sustainable TalentDevelopment
ESG ManagerThe ESG Manager is responsible for formulating environmental, social and governance strategicplanning and objectives, as well as establishing governance structures and goal setting, coordinatingand promoting the implementation of projects. For external publicity content, the ESG Manager notonly controls the quality, consistency, and continuity of disclosed information, but also guides andpromotes the establishment of the company with ESG external experts and alliances.
ESG External Experts and Alliances
Led by the ESG manager, responsible for developing the management process of ESGinformation disclosure, disseminating ESG-related information on the official website and officialWeChat public account, as well as engaging in communication and exchange of ESG information withexternal stakeholders. The Office of the Board of Directors is specifically accountable for organizingand coordinating communication and engagement with external capital parties, research institutions,rating agencies, and media outlets. Additionally, it facilitates relevant departments and personnelwithin the company to establish an ESG alliance with external entities to promote the company's valuesystem related to environmental, social, and governance aspects.
ESG Operating System
Led by the ESG manager, the company's relevant departments and personnel interpret globalESG-related standards and updates, internally promote and train on ESG development content; drivethe implementation of the ESG system, identify risks and continuous improvement; organize the outputof ESG reports.
1516
Ningxia YueAn New Material Technology Co., Ltd.“Waste resource utilization is our key strategy. Jiangxi Yueli Technology Co., Ltd. andNingxia YueAn New Material Technology Co., Ltd. are important milestones for YueAn, andthey represent our unwavering path of green development.”Jiangxi Yueli Technology Co., Ltd.With the first batch of power batteries put into the market ushered in the "tide ofretirement", the treatment of lithium batteries has become the focus of attention of theindustry and environmental protection. Jiangxi Yue Lithium Technology Co., Ltd. is our newlyestablished equity company in 2023. It develops a highly selective one-step extraction oflithium technology, aiming to solve the core pain points such as low recovery rate, high costand environmental pressure in the recycling process of lithium batteries, and contribute to thesustainable development of the economy and the harmonious coexistence of theenvironment.
Industrial Strategic Planning
The new process uses ilmenite as raw material, and the company is studying toincrease the content of titanium dioxide ( ) in the remaining titanium slag afteriron extraction, and has explored a new route of ilmenite enrichment.
?The core team of this company comes fromwell-known research universities such asTsinghua University and Beijing University ofChemical Technology, and is one of the mostexperienced research teams in batteryrecycling in China. The team has decades ofexperience in the fields of lithium extractionfrom salt lakes and lithium battery recycling.?The main core technology of this companyhas applied for patent protection, and the teamof Beijing University of Chemical Technologyand other universities continue to carry outresearch and development work, the firstproduction line is currently in thecommissioning stage;?In the next three years, the company will goall out to root in the industry and plans to putinto large-scale production in 2025.
Ningxia YueAn New MaterialTechnology Co., Ltd., a wholly-ownedsubsidiary established this year , mainly usesilmenite instead of sponge iron as rawmaterials for the production of carbonyl ironpowder, while utilizing technology extensionfor the refining of valuable metals.
During the reporting period, thiscompany made significant breakthroughs inthe process of producing carbonyl ironpowder by-product high titanium slag withilmenite as raw materials, completed theindustrialization test, the product has beensent to the downstream manufacturers fortesting, and the construction of thedemonstration line project is in full gearplanning.
In the future, our company will anchor the innovation of waste resources and new materialtechnology, strive to achieve breakthroughs in the field of environmental protection materials andsustainable science and technology, and provide continuous power and support for related industries.We are committed to promoting the green transformation of the industry under the background ofcarbon peak and carbon neutrality, constantly explore the frontier of science and technology, andachieve a triple win-win situation of social, environmental and economic benefits.
?Green R&D?Green Quality Control?Green Process
?Green Energy?Green Water Use
?Green Gas Use
?Green Waste Management
?Green Office?Green Noise Reduction
01 Green Innovation
Technological Innovation, Green Development
“We deeply believe that science nurtures green productivity. By engaging in scientificresearch and development, promoting technological innovation and industrial progress,pursuing sustainable profit growth, we ensure the harmonious coexistence of corporatedevelopment and environmental protection.”
Green Innovation
?Green R&D
?Green Quality
Inspection
?Green Process
?Green Water
Use
?Green Energy
?Green Gas Use
?Green WasteManagement
?Green Noise
Reduction
?Green Office
In our operations and management, green practices are integrated throughout. We startwith green R&D, striving to reduce resource consumption during the product design phase,and are committed to using environmentally friendly materials. In green quality inspection, weensure the minimal environmental impact of our products during production through strictenvironmental standards. Green processes guide us on how to efficiently use resources,reduce waste, and implement clean and sustainable methods during production. Green waterand energy strategies aim to minimize the use of water and energy to the greatest extent, andpromote the use of renewable energy and recycling systems. We also place equalimportance on green gas usage, reducing greenhouse gas emissions through optimizingcombustion technology and using low-carbon fuels. Green waste disposal and noisereduction strategies ensure that waste is properly treated, noise pollution is reduced, and thequality of life is improved. Finally, green office practices emphasize the importance of ourdaily work environment, encouraging employees to take energy-saving measures, reducepaper use, and promote electronic documents, etc.
Our green strategy is not only reflected in production and operations, but is also acomprehensive corporate culture and spirit. We actively build green factories and greenecology, not only limited to our own sustainable development, but also to influence andencourage our partners, customers, and communities to participate, together creating agreener future. Through these comprehensive measures, we believe we can contribute to thesustainable survival of the earth while continuously improving corporate benefits.
Our goal is to pursue sustained, healthy profitability, without sacrificing the environment.In our business model, environmental protection is no longer an additional obligation, but isintegrated into every step of decision-making. The company understands that long-termcorporate prosperity and environmental sustainability are interdependent..
We have established a multi-dimensional green strategy, starting from nine majordirections: green R&D, green quality inspection, green processes, green water use, greenenergy, green gas use, green waste removal, green noise reduction, and green office,actively creating a green factory and green ecology.
1920
「Environmental ManagementSystem Certificate, ISO14001:2015」
Green R&D
“We adhere to a problem and demand-oriented approach, striving for the organic integration ofproduction, learning, and research. Our focus is on transforming scientific and technologicalachievements, consolidating innovation in this field, and laying the cornerstone for low-carbondevelopment.”Since our establishment, we have placed great emphasis on the construction of our research anddevelopment system, continuously enhancing and refining our research and development capabilities.Our dedicated teams not only serve production but also consistently deliver cutting-edge research anddevelopment products, projects, and services to major research institutions and government agencies.We strategically invest in new product lines, innovative processes, and novel applications whileprogressively achieving a harmonious integration of independent innovation with extensive industry-university-research cooperation.In 2023, the company will enhance the big data application skills of the research and developmentteam, as well as refine the management of research and development project execution processes tooptimize efficiency. Simultaneously, it will further strengthen ESG integration and establishassessment mechanisms centered around energy conservation and emission reduction. Regardingspecific technologies, advanced tools like computer vision will be employed to dynamically alignresearch and development directions with customer needs and feedback. Additionally, rigorousmonitoring of production processes and product quality shall be maintained. Furthermore, amechanism for sharing project research and development data with end customers is being graduallyestablished to ensure prompt response to customization requirements.
During the reporting period, the company applied for 5 domestic invention patents, obtainedauthorization for 1 PCT US invention patent, received authorization for 2 domestic invention patents,and accumulated a total of 34 patent authorizations.
CustomerBaseProjectDeliveryOrganizational Structure
TechnicalCapabilityStandard
System
ISO 9001:2015 , IATF 16949:2016, ISO 14021 Recycling System Certification
Production andMarketingDepartment
Research and
Education
Base
Government
AgenciesResearch andDevelopment
Products
R&D Projects
andConclusions
R&D ServicesR&D CenterIndependent
R&D
Collaborative
R&D
R&D Education
Technical R&D Capability
Project Management CapabilityContinuous Delivery CapabilitySecurity and Control CapabilityAI and Big Data Capability
R&D personnel
in various
departments
R&D system
Energy saving and emission reduction
capabilities
Case 1
Case 2
Case 3
High Pressure Resistant High Impedance Iron Silicon Chromium Magnetic Powder Core and ItsPreparation MethodThis patent enables the iron silicon chromium magnetic powder to have higher magnetic permeability, DCsuperposition characteristics, and rust prevention effects, meeting the development requirements of one-piecemolding inductors for miniaturization, high magnetic permeability, and high power. At the same time, on theproduct application end, it can reduce the comprehensive energy consumption of the equipment by 2%-15% .
A Carbonylation Method for Processing Sand Ilmenite to Produce Carbonyl Iron Powder and Titanium Slag
Using sand ilmenite as raw material, carbonyl iron powder and titanium slag are produced simultaneously, andindustrial-scale mass production is achieved. This method improves the conditions of the reaction, eliminating theneed for a catalyst to achieve high reaction efficiency, and solves the problem of powder material cloggingequipment and pipelines during the carbonylation synthesis process, addressing the bottleneck restrictingindustrial production.
A method for preparing carbon nanotubes from iron pentacarbonyl fluid as raw material and itspreparation process
The method of preparing CNTs using iron pentacarbonyl fluid as raw material makes our carbon nanotubepreparation process richer, with a larger number of carbon nanotubes, uniformly distributed pores, and consistenttube diameters, thereby achieving the effect of improving the quality of carbon nanotubes. Compared with theconventional carbon nanotube production method, this method directly uses iron pentacarbonyl as the raw material,fits the company's advantages, and reduces raw material consumption by 20%.2122
Green R&D (Continued)
We have incorporated the ESG concept into our R&D system and processes, established ESG-related indicators at each stage of the R&D projects, and implemented rigorousscreening and approval procedures for 30 projects. Additionally, we have conducted extensive research in various areas such as atomized powder alloy materials, wave absorbingmaterials, additive manufacturing materials, and low-cost carbonylation technology, resulting in significant research outcomes. In terms of high-value special carbonyl metal powdermaterials application direction, we are intensifying our efforts to explore the application potential of special metal powders by increasing investments in fundamental studies on carbonylmetals and soft magnetic powders. Furthermore, we are actively serving the supporting supply chain for specialized applications scenarios involving metal powders like 3D printingadditive manufacturing, intelligent terminals, electromagnetic shielding systems, magneorheological fluids as well as microwave absorption and food/drug additives to meet emergingdemands from high-end markets.
?Execute the projectaccording to the projectplan , adjust resources andallocation according to theproject progress;?Supervise and adjust theproject according to the real-time feedback from themarketing department andthe quality inspectiondepartment ;?Promote project progress
according to ESG researchand development indicators.
Goals and Planning
Execution andImplementation
Testing andImprovement
Pilot and Mass
ProductionCollection and
Summary
Conception and
Design
?Collect and summarize
national ESG guidelines ,policies, ensuring thecompany's development isin step with the nation;?Collect and understand thefeedback and expectationsof various businessdepartments , deeplyunderstand the green R&Dneeds of each department.
?Conduct market trendresearch on the project,determine ESG 's variousinfluences;?Determine the overalldirection and scope of theR&D project;?Prioritize R&D projectsbased on their importanceand feasibility.
?Conduct feasibility analysison selected ESG R&Dprojects , quantify ESGimpacts;?Allocate resources andbudget for ESG projects,ensuring the ESG return oninvestment;?Define indicators for ESGprojects.
?Conduct periodic checksand improvements onprojects based on ESGproject indicators ;?Carry out final acceptance
of the project based onproject indicators , issuepilot test reports andimplementation suggestions.
?Based on the pilot test
report , feasibility analysisESG standards to conductproduct pilot , establish pilotproject quality indicators,analyze and plan for massproduction of the product;?Plan and implement mass
production according to pilottest results.
x
Process
Step
Green R&D (Continued)
Through strict control over design rules, manufacturing processes, productionflows, and testing inspections, we enhance the quality of our products, improve theirinterference resistance, and maintain high levels of yield and stability in production. Atthe same time, the company's strict quality control system ensures the consistencyand reliability of our products, with performance quality reaching the top leveldomestically and internationally, possessing strong market competitiveness. Duringthe reporting period, our products made from recycled steel have been certified byauthoritative international certification bodies with a recycled content >80%.?In May 2006, passed “ISO9001:2015 Quality Management System Certification”;?In June 2018, passed "IATF16949:2016 Automotive Quality Management System
Certification";?In September 2023, passed the "ISO14021 Recycling System Certification".
"We firmly establish the 'zero defect'
Quality inspection project
The performance of the hinge directly affects the folding gap, crease, and lifespan of thecurrently popular folding screen mobile phones. To make the phone lighter and thinner, thematerial used for the hinge must have ultra-high strength while being compatible with goodtoughness, to ensure that the phone screen does not deform or break during the repeatedfolding process.
Background
After conducting a comprehensive analysis of the customer's requirements, we haveclarified the product expectations and specifications. The research and development teampromptly determined the initial process route for manufacturing high-strength steel rawmaterials. By leveraging our technical expertise in metal injection molding, we have defined aquality plan, control objectives, and improvement measures for the research and developmentprocess through continuous optimization of composition as well as exploration and testing ofheat treatment processes.
Project Initiation
The metal injection-molded high strength steel material, which has successfully brokenthrough the yield strength and elongation, has been applied in the folding screen mobile phonehinge.
Achievements
2627
The company's products 316L,high-strength steel, 17-4PH andother 5 products have passedthe authoritative internationalcertification body identified theregeneration content of >80%
“We firmly establish a ’zero defect’ consciousness, adopting a three-step qualitymanagement approach: prevention before the fact, control during the process, andverification after the fact, playing a role in green inspection and supervision throughout theentire process, comprehensively ensuring product quality.”
In compliance with the Product Quality Law of the People's Republic of China, we establish well-defined operating standards and procedures aligned with our management objectives to support thefunctioning of our quality inspection system. A dedicated team of quality inspectors is assigned tooversee the core processes in accordance with these objectives, optimizing production processes toenhance efficiency and product quality, as well as other critical quality capabilities.
We develop comprehensive standard operating procedures and meticulous guidelines to ensureconsistency and accuracy in all tasks performed. Detailed instructions are provided for specificassignments, enabling every employee to operate uniformly based on standardized protocols andquality guidelines. These standard operating procedures outline specific methods and steps for taskexecution, thereby reducing operational discrepancies, improving work efficiency, ensuring processstandardization and replicability – all crucial factors in maintaining effective quality control measureswhile adhering to regulatory compliance requirements.
Following our established quality management system, we exercise control over the entireproduct lifecycle encompassing design, production, sales, and management activities. We implementproduct sampling inspections throughout this process while strictly adhering to the findings outlined inthe quality inspection reports during storage and shipment operations. Simultaneously, our companyhas established norms for handling customer complaints promptly by receiving feedback fromcustomers in a timely manner. This ensures that any grievances or suggestions raised by customersare appropriately addressed – minimizing or eliminating any adverse impact caused by defects orpotential hazards on their experience – effectively safeguarding their interests.
Green Quality Control
PreventiveMeasures
Communicate in detail with customers, understand their requirements,and clarify plans including personnel, equipment, environment,inspection, and raw material supply.Control During the
Process
Control key points of quality during the production process, set qualitycontrol points at critical parts or weak links, and carry out quality trackinginspections simultaneously.Post-EventVerification
Standardized operating standards, strict quality control to prevent theflow of defective products out of the company, aiming for zero defects.
QualityInspection
Center
Customers
ProductionTechnology
Raw MaterialProcurement Inspection
Process Inspectionand Supervision
Finished ProductWarehouse Inspection
Factory ProductInspection
CustomerRequirementsCollection
Project InitiationCustomer FeedbackOperationsManagement
Management and Planning System
Support SystemAssistance
We consistently prioritize customer satisfaction, strive for products with impeccablequality, and unfailingly meet all work process requirements. Our primary focus is onprevention rather than post-inspection, as we establish quality control points at key steps inthe process and address any potential weaknesses or vulnerabilities. Additionally, weconduct thorough quality follow-up checks to ensure that each step adheres to the higheststandards.
2425
Primary Iron Carbonyl Powder
Iron Carbonyl Powder Finished Product
Carbon Monoxide
Gas Cycle
SynthesisStorageEvaporationDecomposition
Iron Carbonyl SynthesisIron Carbonyl DecompositionRaw MaterialSelection
Sponge Iron, RareEarth Slag Iron
Post-treatment of Iron Carbonyl Powder
AnnealingCoatingClassificationGrindingSecond Process
First Process
“Based in the field of micro-nano metal powder materials, we are focusing on the development direction of the world's cutting-edge new green materials, emphasizing environmentalimpact and resource efficiency, and building a manufacturing system centered on green.”
Green Factory
By implementing a clean production management system, we aim to enhance resource utilization efficiency and promote clean production to reduce and avoid the generation ofpollutants, protect the environment, ensure human health, and promote the sustainable development of the economy and society. We emphasize reducing pollution at the source, usingclean energy and materials, improving production technology and management, comprehensively raising employees' awareness of clean production, and encouraging full participationto ensure the effective implementation of clean production measures and projects. At the same time, units and individuals who have made significant achievements in clean productionare rewarded, jointly promoting the sustainable progress of the company and society .
2023 ESG Reportstation. The circulating water station's sewage and the steam generator discharges clean salinewastewater, which is directly discharged to the park for treatment and reuse. The emergency water(including fire drainage) in the new installation area is collected in the emergency pool, then connectedto the production sewage network, and pre-treated together with the production sewage.
The factory is equipped with a 2000 cubic meter wastewater treatment pond, with one in use andone as a backup during normal production. The wastewater treatment involves the addition offlocculants and ammonia removers. After chemical flocculation reaction and sedimentation treatment,the water meets standards and is recycled with a small amount discharged. Since 2017, thecompany's wastewater discharge outlet has been connected to the industrial park's sewage treatmentplant, and an online monitoring station has been established. Online monitoring equipment has beeninstalled and connected to the county, city, provincial, and national environmental protection platforms,allowing real-time data upload. The monitoring equipment includes PH meters, data acquisitioninstruments, ammonia nitrogen analyzers, and COD analyzers. On-site, there are manual PH meters,manual ammonia nitrogen analyzers, and manual COD analyzers, ensuring strict real-time monitoringand control of wastewater discharge.
"Water is one of the most precious resources for humanity, 'separation of rainwater and sewage, clearand polluted water' is the principle of our designed drainage system, the utilization of water resourcesforms a relatively closed loop from production to production"
Our factory's water system design covers three major aspects: water supply, drainage, andwastewater treatment. We design and construct a segregated water system based on the principle of'separation of rainwater and sewage, clear and polluted water', comprehensively recycling and reusingproduction water from factory to factory, maximizing our utilization of water resources.
The production and domestic water supply pipelines within the factory area are arranged in abranching pattern, buried underground, with the production and domestic water pipelines of eachbuilding structure drawn from the branching network. The drainage system is divided into four parts:
production wastewater drainage system, domestic wastewater drainage system, rainwater and cleandrainage system, and emergency drainage system. Wastewater including tail gas scrubbingwastewater and ground cleaning water is treated at the factory's production wastewater pretreatment
Green Water Use
During the reporting period, approximately 80% ofour water use met recycling requirements.
Water supply
ProductionDrainage
Rainwater and clean sewage
Production wastewater discharge
Accidental dischargeDomestic wastewater discharge
WastewatertreatmentExhaust gas scrubbing
wastewaterGround cleaning waterCirculating water station
sewageProduction wastewater
discharge
2930
“We are committed to green and environmentally friendly production through the efficienttreatment of molten exhaust gases and atomized dust, ensuring green production is our firmcommitment to atmospheric protection.“
We are committed to green and environmentally friendly production, and the fine management ofmolten exhaust gases and atomized dust is particularly important. These gases, mainly composed ofmetal dust, are efficiently captured through advanced hood technology and treated with high-performance bag filters, ensuring their safe and harmless discharge into the atmosphere.
Bag dust removal equipment uses its fine woven or felted filter cloth as a filtering medium, cleverlycapturing the dust-laden gas flowing through it. In this process, larger and heavier dust particles aredrawn by gravity to settle in the dust hopper, while finer dust particles are effectively intercepted duringtheir journey through the filter cloth. This scientific and meticulous processing procedure ensures thatour production process has the minimal impact on the environment, demonstrating our profoundunderstanding of and firm commitment to environmental protection.
During the reporting period, we utilized our influence to lead the joint progress of partners up anddown the industrial chain. In collaboration with Ganzhou Yuelong New Materials Co., Ltd., we co-invested in Jiangxi Yuegan Gas Co., Ltd., providing comprehensive green gas solutions for severalleading enterprises in various industries. This effectively helped our clients reduce operational costs,improve economic benefits, and simultaneously promote further growth in industrial value.
Green Energy
“We actively adopt green photovoltaic power generation and, through an efficient electricitymanagement system of peak, flat, valley, and sharp usage, gradually achieve comprehensivegreen environmental protection goals in energy use.”
During the reporting period, we actively explored and expanded the utilization ofrenewable energy by successfully implementing two photovoltaic projects in collaborationwith Beijing ZidongHua Energy Technology Co., LTD. These power generation initiativeshave been fully operational since 2023. One of the rooftop BIPV photovoltaic powergeneration projects adopts a "self-use, surplus electricity online" model to ensure efficientoperation of the roof power station.
Simultaneously, we implemented a comprehensive range of measures for managingelectricity consumption during peak, flat, and valley periods, strictly regulating scheduling andcontrol to optimize energy efficiency. In partnership with Beijing ZiDongHua EnergyTechnology Co., LTD., we have developed a scientific and rational power consumptionstrategy that incorporates effective energy-saving measures during peak demand periodswhile allowing for reasonable increases in power consumption during low-demand periods toachieve maximum cost efficiency.
Green Gas
3132
“We adopt environmentally friendly methods to reduce, treat, and recycle waste, supportingthe circular economy and alleviating environmental burden.”
The solid waste produced mainly includes iron carbonyl synthesis reactor-generated ironoxide slag and the dewatered cakes and sludge from the production wastewater pretreatmentstation. We adopt a 3R (Reduce, Reuse, Recycle) strategy to classify waste and recyclereusable waste, such as waste iron slag, continuously making breakthroughs in processes toachieve Zero Waste (Zero Waste).
“We use environmentally friendly technologies and methods to reduce noise pollution andprotect the auditory environment.”
The company's noise sources mainly come from machinery and aerodynamics, etc. Thecompany reduces the impact of noise on the surrounding environment by optimizing layoutsettings, optimizing process parameters, choosing equipment with lower noise, andconstructing soundproof rooms or soundproof walls.
Green Waste Management
Reuse Recycle Reduce
Green Noise Reduction
Green Office
Phasing out diesel boilers and replacing them with electric heating boilers resulted in a reduction of 6.712 tons ofdiesel usage during the reporting period, leading to an overall decrease of 20.14 tons of carbon dioxide equivalentemissions.The optimization of air conditioner operations and replacement of some first-level low-energy air conditionersresulted in a decrease in electricity consumption by 16,500 KWH and emissions by 16.45 tons of carbon dioxideequivalent during the reporting period.
Energy-efficient light bulbs were installed across departments, reducing electricity consumption by 1,550 KWHand emissions by 1.55 tonnes of carbon dioxide equivalent during the reporting period.The temperature settings for air conditioning systems across all departments were adjusted to maintaintemperatures at 26 degrees celsius in summer and 19 degrees celsius in winter, resulting in a reduction inelectricity usage by 1150 degrees and emission reductions totaling 1.15 tons of carbon dioxide equivalent.We implemented employee transportation buses within relevant areas to reduce gasoline usage by approximately1045 liters and lower emissions by 2.51 tons of carbon dioxide equivalent during the reporting period.Employees are encouraged to switch to new energy vehicles and motorcycles as part of carbon emissionreduction efforts.
The department procured 5 electric forklifts as a gradual replacement for fuel-powered forklifts, along with electricfire trucks to reduce diesel consumption by 1.68 tons, resulting in emission reductions of approximately 5.05 tonsof carbon dioxide equivalent during the reporting period.
By purchasing 4 new energy vehicles, we reduced the use of 16,352 liters of gasoline uring the reporting period,thus reducing emissions by 39.25 tons of carbon dioxide equivalent.
“We pay close attention to details, value and seize every possibility of carbon reduction,deepen environmental awareness, and form a consistent carbon reduction consensusthroughout the company.”
3334
Solar street lights are gradually being installed as replacements for the factory's conventional streetlights.
?Governance Structure?Investor Relations?Cybersecurity
?Digitalization, Informatization, Automation
?Compliance and Internal Control
02 Digital Corporate Governance
Data-Driven, Scientific Governance“We believe that a clear digital strategy leads to an efficient management system, enhances the quality of decision-making andrisk management capabilities, thereby optimizing resource allocation, and accelerating our response to market changes andstakeholder interests. This lays the foundation for the steady progress and long-term success of the enterprise.”
2023 ESG ReportDuring the reporting period, we successfully implemented phase I of our newManufacturing Execution System (MES) in our pelletizing and magnetic materials workshops,ensuring that the system is perfectly integrated into the company's production processes.This strategic investment in technology represents a major transition from traditional digitalrecording and control to full information management.
With the support of real-time data from the MES system, we make faster and moreaccurate decisions, optimize process flows, improve production efficiency, reduce waste, andultimately enhance product quality and customer satisfaction. Furthermore, digitaltransformation not only strengthens our control over complex manufacturing environmentsbut also provides our employees with more opportunities for learning and growth, infusing ourcorporate culture with a spirit open to technological innovation. The successful deployment ofMES will provide us with a competitive advantage in the constantly evolving marketenvironment, leading us into a new era of efficient, transparent, and intelligent manufacturing.
“We believe that a strategy to enhance governance effectiveness and efficiency through thecomprehensive use of modern information technology not only involves technologicaltransformation but also entails a deep shift in corporate culture and business philosophy.”
Digital corporate governance is one of the important strategies to improve corporategovernance structure by using modern information technology. Involving the use oftechnologies such as data analytics, cloud computing, and artificial intelligence to optimizedecision-making processes can enhance decision-making transparency and improve riskmanagement capabilities. Through digital transformation, companies will be more flexible inresponding to market changes, more accurately grasp business opportunities and risks, andmore closely communicate and collaborate with stakeholders. Digital corporate governance isnot only the application of technology, but also the renewal of corporate culture and businessphilosophy, starting with the management, we gradually deepen the understanding of thevalue and potential of digital, and will gradually promote this concept in the company.
Digital Corporate Governance
OA : AdministrativeManagement
MES : Manufacturing Execution
Finance
Equipment Management
System
Production
Data Record System
Production Planning
and Process
ERP : Financial
Management
MySQL : Data , Information System
Quality Monitoring
Material Data
PersonnelManagement
WarehouseManagementBOM: MaterialManagement
LogisticsManagement
Human Resources and
Administration
Archive Management , Approval,
Storage
Amoeba : HumanResource Management
Supply Chain
Report CenterBusiness Integration
Knowledge CommunityIntelligent Factory: Environment, Safety
Account ProcessingFunds Processing
Robot GasMonitoringReal-timeMonitoring ofEmergencies
Real-timeMonitoring ofWorker Safety
Fire Safety
Monitoring
DroneEnvironmental
MonitoringEquipment
SafetyMonitoring
Cost Management
Accounts Receivable, Accounts
Payable Management
Fixed Assets Management
CRM : CustomerRelationship Management
Customer ManagementPotential Customer Data
CollectionCustomer Evaluation and Sales
ForecastingCustomer Relations
ERP : Procurement
Management
Supplier Price ManagementPurchase Quantity and Quality
Acceptance and Payment
Financial and TaxManagement
「
「
3536
“A complete and effective governance system is indispensable for ensuring responsibledecision-making, compliance with laws, risk control, and sustainable development.”
Tax GovernanceTo improve tax governance, we have established a comprehensive tax governance framework,strengthened tax compliance, implemented effective tax planning, and enhanced transparency andcommunication. At the same time, we have raised the tax awareness of our internal staff and utilizedscientific and systematic technology to improve the efficiency of tax management. We ensurecompliance with relevant tax laws and regulations, optimize tax burdens, fulfill tax obligations withintegrity, and promote socio-economic growth.
Information Disclosure
To regulate the company's information disclosure practices, we have developed the InformationDisclosure Management System. We always adhere to the principles of fairness, justice, andopenness, and continuously improve the information disclosure system. Timely, accurate, andcomplete disclosure of company information and strict adherence to listing rules and standarddecision-making procedures is our commitment to protecting investor rights.Investor Relations Management
To strengthen the communication of information between the company and investors, andeffectively protect the legitimate rights and interests of investors, especially small and mediuminvestors, the company has formulated a comprehensive and complete Investor RelationsManagement System. The company carries out investor relations management by setting up aninvestor relations management service team, clarifying the operation norms of the team, andestablishing effective communication with investors. The company has established a good interactiverelationship with investors through a variety of channels, including the release of regular reports,organizing on-site research and road show exchanges, as well as the establishment of hotline, email,fax and investor relations interactive platform. It aims to promote investors' in-depth understanding ofthe company and strengthen the trust and cooperation between the two sides.
Governance System
Shareholders' Meeting
Board of Directors
Supervisory Board
Audit Committee
TechnicalCommittee
Compensation andEvaluationNomination Committee
Strategy Committee
3738
We strictly follow the Company Law of the People's Republic of China, the Securities Law of thePeople's Republic of China, the Governance Guidelines for Listed Companies, and the Articles ofAssociation of Jiangxi YueAn Advanced Materials Co.,Ltd. as well as other applicable laws,regulations, and normative documents, we have established a standardized corporate governancestructure. This includes the establishment of a general meeting of shareholders, a board of directors,and a board of supervisors. The Board consists of four specialized committees: Strategy Committee,Audit Committee, Technical Committee, and Remuneration and Assessment Committee. Eachcommittee operates with clear divisional responsibilities in accordance with standardized procedures.They are independent from other departments or individuals within the company and provideprofessional opinions and suggestions to facilitate scientific decision-making processes and ensurestandardized operations by the Board. By standardizing our company's operations in this manner, weaim to guarantee healthy and orderly conduct across all production and business activities while layingan essential foundation for achieving sustainable development.
Audit Committee
4 times
Compensation and Evaluation
2 times
Technical Committee
1 time
Strategy Committee 1
time
Supervisory Board
7 times
Board of Directors
9 times
Shareholders' Meeting
2 times
The company has carried out 72 surveys, and has accumulated 232 organizations and 532 people.Analysts from 9 securities research firms wrote 18research reports for the company.The company replied to investors' questionsthrough the SSE platform for 53 times, with a replyrate of 100%.
The company has held 3 performance briefingsin total.
149 investor calls were answered throughout
the year.
“A sound internal control system is key for a company to reduce risks, shape its reputation, and winthe trust of customers and investors.”
We adhere to the Basic Norms for Internal Control and the laws and regulations of the countriesand regions where we operate, as well as all other relevant guidelines, and are committed tocontinuous resource investment to build a compliance management system that aligns with industrybest practices. We consistently implement compliance management in every aspect of our businessactivities and processes. We value and continuously cultivate a culture of integrity, insisting that everyemployee follows the code of business conduct.We have established an audit department in the field of internal control. Under the directleadership of the Audit Committee of the Board of Directors, this department independently overseesthe development and effective implementation of the company's internal control system. As a dailyoperational entity, the Audit Department adopts a risk-based approach to assess compliance withregulatory requirements for listed companies, thereby providing a reasonable assurance for achievingthe company's internal control objectives.
In 2023, the Audit Department collaborated with a third-party entity to deliver over 84 compliancetraining courses for employees. A total of 308 individuals participated in the training, includingcompany directors and supervisors, more than 5% of shareholders, directors' office staff, financialpersonnel, and auditors.
“We always follow the party unwaveringly, strictly adhere to the guidance and requirements of partybuilding, and carry out party affairs work in a systematic, standardized, and normative manner, withthe spirit of the party leading us forward.”
We deeply study and implement Xi Jinping's Thought on Socialism with Chinese Characteristicsfor a New Era, earnestly implement the spirit of General Secretary Xi Jinping's important speechesand instructions during his inspection of Jiangxi Province, focusing on new requirements such as high-quality development, green development, and low-carbon development. We liberate our minds, forgeahead, leverage our strengths, and shore up our weaknesses to rejuvenate the foundation and fosterinnovation. We fully support the national science and technology strategy, break through a batch ofkey core technologies, create a batch of high-tech industries, and contribute to forming an influentialindustrial cluster nationwide.
Jiangxi is a place with a rich revolutionary history, and the company encourages all employees tolearn from and carry forward the spirit of Jinggangshan, the Soviet Area, and the Long March. We aimto guide party members and cadres to firmly believe in their mission, forge ahead with determination,and have the courage to take responsibility. At the same time, we strive to use knowledge and scienceas tools for changing destiny by conducting thorough theoretical studies and investigations while alsoengaging in practical work that benefits our people. Through these efforts, we hope to promotesustainable development through diligent work.
Internal Control ComplianceCommunity Party Construction
Board of Directors
Audit CommitteeAudit Department
Over 84compliancecourses
Over 308attendance
3940
Information security management is the process of conducting a comprehensive riskassessment, strategy formulation, implementation of protective measures, and supervisionand management of information systems. It includes not only technical aspects such asnetwork defense, data encryption, and access control, but also involves the formulation ofstrict policy standards, employee training, legal compliance, and contingency plans foremergencies. Its purpose is to ensure the security of information resources, preventunauthorized access, use, disclosure, destruction, modification, or damage to data, andensure the normal operation of information systems, supporting the organization's businesscontinuity and the confidentiality of information.
The company places great emphasis on information security management by strictlyadhering to the Data Security Law and Personal Information Protection Act in accordancewith the laws of the People's Republic of China.
Data Privacy
We place great emphasis on the privacy and security of customer data and are fullycommitted to safeguarding customer information and preventing any unauthorized datatransfer. The Marketing and Information managers bear the responsibility for maintainingconfidentiality within their department. To prevent internal information leakage duringcirculation, our company has implemented a "Customer-related Process Control System" thatenables hierarchical management of customer-related information. All departments mustsubmit an application before accessing or borrowing confidential documents, undergosupervised inspections, and copying is strictly prohibited. Furthermore, we regularly organizeeducation and training sessions on protecting trade secrets.
Intelligent FactoryInformation Security
During the reporting period, we actively utilizedmodern information technologies such as the Internet ofThings, big data analysis, and cloud computing to createan efficient, intelligent, and environmentally friendlyworking and living environment. The Intelligent Factoryproject aims to standardize production processes,monitor factory safety in real-time and with precision,provide comprehensive safety guarantees for workers,improve overall work quality and efficiency, whileensuring sustainable development.
"We use advanced information technology and system integration technology to realizeintelligent factory management, efficient service, and create an ecological modern factory."
YueAn Smart Control Center
4142
During the reporting period, we did not encounter any instances of customer datainformation being compromised.
?Supplier Development?Market Marketing Collaborative Development
?Anti-corruption, anti-bribery, anti-fraud
03 Value Chain Collaborative
Development
Customer First, Collaborative Development
“We meet the needs of our customers with high-quality products, earntheir trust, and effectively control costs through meticulous supply chainmanagement. We establish good cooperative relationships withupstream and downstream industry partners, jointly promoting theefficient operation and sustainable development of the entire valuechain.”
2023 ESG ReportManagement of Qualified Suppliers
The quality inspection department shall conduct inspections on incoming materials inaccordance with the Incoming Materials Inspection Standard, document the inspectionresults in the Incoming Goods Inspection Notice, and submit them to the warehouse forfurther processing. If the materials pass the inspection, they will proceed with thewarehousing process. In case of any non-conformities, a notification will be sent to the supplydepartment, which will promptly contact the supplier. Additionally, if any quality issues areidentified by the first-line production department during material or equipment usage, they willpromptly report it to the supply department. The procurement logistics and equipmentperformance will serve as important criteria for evaluating supplier performance.
If a supplier consistently fails to meet delivery deadlines or exhibits discrepancies orquality problems three times consecutively, or if there is a recurring issue with material quality,improvement requirements will be communicated to suppliers by the purchase department.Failure to make effective improvements within specified time limits may result indisqualification of their status as an approved supplier.
Supplier Assessment and Exit Mechanism
The quality inspection department shall conduct a comprehensive evaluation of qualifiedsuppliers by the end of each year, in accordance with contents in the following table. Theassessment process primarily encompasses product quality, pricing, delivery timeliness, andafter-sales service provided by the supplier. The departments involved in this evaluationinclude supply, usage, quality inspection, and production guarantee. The results of thisevaluation will be documented in the Qualified Supplier Annual Evaluation Form which willserve as part of our quality records.
“Effective supplier management is the key to ensuring product quality and supply chainstability.”
To ensure the scientific nature of procurement management, we evaluate and selectsuppliers based on the principles of fairness and justice. To continuously improve internaldecision-making management, we have established a cross-functional management teamencompassing R&D, planning, procurement, marketing, finance, and supervision functions torigorously determine supplier access, selection, evaluation, and elimination.
Supplier Due Diligence
We conduct annual due diligence on our suppliers and issue supplier questionnaires.The investigation covers the supplier's background, technology research and development,quality system, production capacity equipment, logistics, and emergency response.Additionally, we develop a comprehensive supplier audit plan at the beginning of each year,implement monthly evaluations with scoring criteria, and conduct an annual assessment forpromotion or demotion management.
Key Supplier Admission and Audit
The company continues to improve the Supplier Code of Conduct, to include dirty carbonemissions in the supplier code and encourages all suppliers to comply with the code.
We strictly adhere to technical standards when purchasing materials, enforces strictrequirements and controls over the quality of purchased products, and prioritizes supplierswho have obtained quality system certification by evaluating supplier qualifications, pricing,delivery time, after-sales service, technology and management capabilities as well as qualityassurance abilities. Purchasers issue a Supplier Questionnaire to potential suppliers forpreliminary evaluation of their production processes, equipment and testing facilities.
Supply Chain Synergy
Violation of National Laws and
Regulations
Breach of ContractQuality Non-Conformance
When suppliers violate lawsand regulations, conduct athorough assessment of therisks associated with thesesuppliers, and terminate thecooperation process based onthe outcome of the riskassessment.
Communicate the supplier's breachof contract through writtendocumentation in order to conveythe performance status;alternatively, investigate thecontractual liability for suchbreaches based on the bindingterms.
The Quality Inspection Departmentshall notify the Supply Departmentto suspend the supply of anysupplier who fails the annualassessment or fails to delivergoods for three consecutive times.
PreliminaryEvaluation
On-site Evaluation
Assessment,Inspection, and Trial
Use
General Manager
Approval
MaterialClassification
MaterialProcurement
MaterialInspection
MaterialWarehousing
MaterialManagement
4344
“We engage in collaborative efforts with our esteemed customers and partners to drivemarketing initiatives that enhance market share and augment brand equity.”
Marketing and technical
outlets
Overseas Sales Outlets
Marketing Synergy
YueAn is a highly automated micro-nano metalpowder production enterprise, equipped with acomprehensive quality control system, advancedprocess technology, and extensive productmanufacturing and sales capabilities. Whileachieving import substitution of key materialspreviously sourced from European and Americansuppliers, we actively engage in internationalcompetition. Our products have successfully enteredover 20 countries across Europe and Asia, resultingin accumulated foreign exchange earningsexceeding $50 million. The establishment of YueAnmarks the end of China's history of low technicalcontent and backward quality levels in micro-nanometal powder production. It also paves the way forthe development of new materials throughindependent research and development as well ascontinuous collaborative innovation among industry,academia, and research institutions.
Being in Market
20 years
「
」
Currently, the companyoperates several sales andtechnical service stations in keyregions such as the Pearl RiverDelta, Yangtze River Delta,Gansu, as well as internationallywith 10 global marketing andtechnical outlets located inGermany, the United States,South Korea, Japan, India,among others.
「
」
“We collaborate with our customers and partners to jointly promote marketing, in order toexpand market share and achieve brand value enhancement.”We proactively cultivate synergistic working relationships among diverse marketingchannels and strategies to enhance marketing performance. This synergy permeates keymarketing links, including product development, branding, sales channel optimization, andcustomer service, ensuring brand message consistency and delivering a consistent customerexperience. As a result, we strengthen the brand's influence, achieve efficient resourceallocation, and enhance our ability to respond swiftly to market dynamics. A robust marketingstrategy is pivotal to our competitive positioning in the market.
The achievement of synergies necessitates effective integration not only within theMarketing Department, but also through close collaboration with product development, supplychain management, and external partners. This cross-functional and cross-boundarycollaboration is imperative for driving the company's ongoing growth and maximizing profits.
Our company is a champion demonstration enterprise in the manufacturing industry,selected by the Ministry of Industry and Information Technology and the China Federation ofIndustrial Economics. It has also been recognized as a Jiangxi Export Famous Brandenterprise for 2023 by the Provincial Department of Commerce.
“The foundation of our long-term stability lies in our resolute rejection of crime and immorality.”
"Anti-corruption, Anti-bribery, Anti-fraud” measures serve as the fundamental pillars ofcorporate governance and ethics. In accordance with the Basic Standards and SupportingGuidelines for Enterprise Internal Control, the Articles of Association of YueAn, relevant lawsand regulations, as well as other pertinent documents, we have developed a robust InternalControl System against Corruption, Counterfeiting, and Fraud along with standardizedoperating procedures that align seamlessly with our business operations. Thiscomprehensive approach has significantly bolstered our company's supervisory frameworkwhile ensuring adherence from all employees. Notably, directors, supervisors, middle andsenior management personnel, as well as key position holders are expected to uphold anexemplary work ethic characterized by integrity, diligence, dedication in compliance withapplicable laws and regulations alongside professional ethics and internal managementsystems. Our aim is to prevent any actions that may compromise the interests of thecompany or its shareholders.
We actively encourage employees to proactively report any perceived misconduct whileproviding necessary protection measures for those who dare challenge such behavior withinour organization. To facilitate effective communication on these matters, we have establishedvarious feedback channels including physical suggestion boxes, complaint boxes,andelectronic feedback mailboxes. We recognize that ethical conduct coupled with legalcompliance forms an indispensable foundation for companies striving towards long-termsustainable development.
Marketing Synergy (Continued)Anti-corruption, Anti-bribery,Anti-fraud
「
「
4647
?Health and Safety
?Democratic Management andCommunication
?Employee Compensation andIncentives
?Employee Rights
?Employee Promotion?Employee Diversity
?Employee Training andDevelopment?Employee Care and CommunityVitality?Poverty Alleviation and Rural
Revitalization
04 Sustainable Human Development
People-oriented, Knowledge Revitalization“We firmly believe in the power of knowledge and education as the key driving forcefor individual growth, national rejuvenation, and the advancement of human society.Providing equal educational opportunities for everyone, making knowledge animportant tool for promoting social equity, and cultivating talents who can meet futurechallenges are the cornerstones for promoting our sustainable development and theharmonious progress of society.”
We are striving to establish a talent ecosystem that is capable of self-renewal andcontinuous progress. Through fostering a positive working environment and atmosphere, weaim to inspire our employees to consistently innovate, ensuring the company'scompetitiveness and creativity in an ever-changing market landscape. Our aspiration is forour employees and their teams to continuously grow and advance, becoming catalysts for thelong-term development of the enterprise while making valuable contributions towards societalharmony and progress.
We believe that fostering a workplace culture that is innovative, inclusive, andcollaborative is critical to unlocking the potential of our employees and retaining great talent.We expect every employee to be recognized and respected for their creativity and hard work,and to create an excellent, stable and safe working environment for all employees byproviding continuous training opportunities and supporting personal development.
Innovation is our key engine for sustainable development. We encourage everyemployee to boldly practice new ideas and methods, trust and support the team to learnlessons from failures, grow in attempts, and constantly stimulate the individual potential ofeach employee, so as to help the company as a whole to move forward.
We promote interdepartmental collaboration to dismantle information silos and facilitatethe seamless exchange of knowledge and expertise throughout the organization. We highlyvalue teamwork, as cross-functional cooperation not only enables us to solve complexproblems more effectively but also fosters a dynamic and adaptable work environment.
The HR department advocates for a culture of open communication between thecompany and its employees, regularly conducting employee satisfaction surveys to gaincomprehensive insights into their suggestions and opinions. We have implemented arigorous and scientific staff satisfaction assessment scheme to continuously enhance ourpersonnel management system, methods, efficiency, and fairness in order to increaseemployee satisfaction and loyalty. During the reporting period, the HR Department introducedan Amoeba management system that focuses on three key areas: strategy and organization,talent acquisition and motivation, goal setting and performance evaluation. This initiative aimsto instill a strong sense of responsibility among employees while aligning them with thecompany's development goals, ultimately boosting overall morale within the organization.
With our ongoing growth trajectory coupled with our commitment towards attracting toptalent, we plan to comprehensively advance our talent strategy in 2024 across five majoraspects: recruitment & selection processes, training & development programs, performancemanagement systems, compensation & benefits structures, and employee relations practices.
Sustainable Human Development
EmployeeRelations
Recruitment and
Selection
Training andDevelopment
PerformanceManagement
Compensation andBenefits
Environment ,
Atmosphere
InnovationCooperation
4849
“We strictly formulate management regulations and methods to ensure that protectingemployees' rights is our basic commitment to them.”
The legitimate rights and interests of employees are respected and protected inaccordance with the Civil Code of the People's Republic of China, the Labor Law of thePeople's Republic of China, and other relevant laws and regulations. Clear regulations onvarious employee rights and interests have been established to foster harmonious laborrelations.
Employee Rights
Freedom of Career Management
We abide by the labor laws and regulations of China and applicable countries andregions, and prohibit any form of forced labor, including involuntary labor with punishmentas a means of intimidation.
Wages, Compensation, and Benefits
We adhere to legal regulations, implement the principle of distribution according towork, and legally pay social insurance and housing provident funds. In addition, thecompany provides annual physical examinations, employee outings, cultural andentertainment activities, and holiday benefits. Wages are paid monthly, and there havebeen no instances of unjustified wage arrears.
Paid Leave Wages
Employees are entitled to take leave in accordance with the Labor Law and the LaborContract Law, and their salary during welfare leave shall be paid in compliance with bothlegal requirements and company regulations. National holidays such as marriage andfuneral leave, maternity leave, childcare leave, statutory holidays, and rest days enjoyedby employees are not considered part of annual leave.
Human Rights ProtectionWe have established policies and procedures to protect the personal rights ofemployees, prohibiting any form of sexual harassment, corporal punishment, mental andphysical oppression, verbal abuse, and threats.
Child Labor and Minor Management
We commit to not using or supporting the use of child labor, and not cooperating withany suppliers who intentionally use child labor.
Prohibition of Discrimination Management
We offer equitable and reasonable employment opportunities, and base decisions onhiring, compensation, incentives, training prospects, promotion, termination or retirementsolely on individual competence and job requirements. We uphold non-discriminationprinciples regarding age, disability, gender, ethnicity etc., and refrain from subjectingemployees to discriminatory medical examinations.
Law
5051
“Employee diversity is a crucial strategy for maintaining innovative capabilities, and it is alsoan important pillar of our fair, just, and transparent talent strategy.”
In 2023, we reinforced our efforts to attract experts in the field of research anddevelopment as well as outstanding graduates from top universities. We conducted thoroughexploration, active development, and systematic training to establish a reserve talent team.This strategy invigorates our talent pool and ensures that our talent resources aresustainable for future growth. As of the end of the reporting period, we had 510 employees,representing a year-on-year increase of 3.87%.
Employee Diversity
Year
2021
2022
2023
Number of People
Labor Contract/Proportion ofLabor Contract Signed %
100%
100%
100%
The enhancement of our commitment lies in the maintenance of a diverse workforce, aswell as the establishment of a sophisticated talent system encompassing R&D, procurement,production, and sales.
5253
| 14%14%5%64%3%Job CategoryManagementTechinalMarketingProductionFinance | 87%13%Employee GenderMaleFemale | ||||
| 8%28%35%29%Employee AgeLess than 3030 to 3940 to 49Over 49 | |||||
Led by HR , serving the union
Features OA , employee feedback email,
etc.
Established a workers' congress
Democratic Management andCommunication
“As part of our corporate social responsibility, we are fully committed to safeguarding thehealth and well-being of our employees. Through continuous optimization of the workenvironment and fostering a strong safety culture, we strive to establish a secure workingenvironment for our workforce.”
Safety and Health
Workers' Congress
System
Electronics
Channel
Union
We firmly adhere to upholding the core principles of democratic governance andfostering open communication. We highly value the input of every employee, recognizingtheir indispensable role in driving continuous progress and innovation within our company.To achieve this, we actively encourage our employees to proactively express their opinionsand suggestions, ensuring that these valuable insights are received and carefully evaluatedby our senior management team.
Employee feedback is diligently recorded and analyzed through various channels suchas formal meetings, anonymous suggestion boxes, or daily informal communication. Ourleadership not only regularly reviews the relevant feedback but also promptly implementsnecessary adjustments or improvements based on it. Additionally, regular staff meetings areheld to transparently disclose the results of feedback collection efforts and actions taken toensure accountability.
Through ongoing dialogue and unwavering dedication, we not only resolve challengesbut also foster a culture of innovation. We firmly believe that this corporate culture built uponrespect and trust empowers us to swiftly adapt to market changes while maintaining teamcohesion and motivation.
We fully acknowledge the significance of employee health and safety. During thereporting period, we organized a "Quality Safety Month" to proactively promote quality safety.We consider our employees' well-being as an integral component of our corporate socialresponsibility. Therefore, we are dedicated to continuously enhancing the workingenvironment and fostering employees' safety awareness, with the ultimate goal ofestablishing a secure work setting. Our aim is to safeguard our employees' welfare whilesimultaneously driving the company's healthy growth and fulfilling our corporate socialresponsibilities.
“Upholding the tenets of democratic management and communication, we firmly uphold that eachemployee's voice is an indispensable catalyst for the company's development. Through continuousdialogue and effective communication, we collaboratively drive progress and foster innovationwithin the organization.”
5455
「
「
2023 "Qianneng Cup" employee labor skills competition
“The growth of the company is a result of the individual development of its employees. Thetransparent and efficient promotion mechanism enables us to identify emerging talents andprovide momentum for the long-term progress of the company.”
Employee Compensation andIncentives
“We adhere to the people-oriented concept, committed to building a fair and motivatingcompensation system, aimed at attracting, cultivating, and retaining industry elites. Bysharing the results of growth with employees, we inspire the team's potential and creativity.”With the collaborative efforts of the Compensation and Assessment Committee of theBoard of Directors and the Human Resources Department, the company has progressivelyestablished and enhanced a salary and compensation system that encompasses internalequity and market competitiveness. The company is dedicated to constructing an efficientincentive mechanism, making more precise investments in human resources, fosteringemployee cohesion, and accomplishing corporate objectives. The meticulously designedcompensation and incentive system ensures fair performance rewards while stimulatingemployees' potentiality and innovation. By aligning our salary structure with industrystandards alongside transparent performance incentives, we ensure that our employees areduly rewarded for their contributions while being motivated to strive for excellence. Ourcomprehensive range of incentives includes performance bonuses, promotion prospects,avenues for professional development, as well as a plethora of employee benefits - all aimedat demonstrating appreciation towards our workforce's valuable contributions towards thesuccess of our organization. We wholeheartedly support our employees' career growth as itdirectly contributes to long-term prosperity.
Employee Promotion
Earned IncomeHealth SupportHappy Life
?Fixed Salary?Annual Service Award?Performance Bonus?Special Bonus?Long-term Incentive?Annual Salary
Adjustment?Employee Dormitory
?Annual Physical
Examination?Occupational Health
Examination?Health Lecture?Health Day Activities
?Employee Club?Department Team
Building?Festival Gifts?Get Well Wishes?Company Gym
5657
TechnologyTechnician
SeniorTechnician
R&D Head
ChiefEngineerR&DManager
ProductionStaff
SquadLeader
Section
Head
DirectorWorkshop
Manager
Management
Clerk
Supervisor
Manager
Section
Head
Director
We firmly believe that the personnel promotion mechanism is the fundamental drivingforce for promoting the implementation of corporate strategy. It serves as a crucial pillar incultivating corporate culture and achieving long-term objectives, while also acting as a keystrategy for attracting and retaining talent. By adhering to the "Promotion MechanismManagement Measures" and "Reward and Punishment System," we establish an equitableperformance evaluation system, offer a clear career development path, and providenecessary training and developmental opportunities. Through these measures, enterprisescan effectively motivate employees to enhance their capabilities, thereby fostering innovationand growth within the organization. Such a mechanism ensures fairness and transparency intalent management, facilitates the attraction and retention of exceptional individuals,strengthens core competitiveness of the enterprise further, ultimately guaranteeing seamlessexecution and long-term success of our strategic initiatives.
“Employees are dedicated to the company, and we strive for their contribution while ensuringa nurturing atmosphere. Our unwavering belief is to foster an inclusive work environment thatembraces personal well-being. The company serves not only as a workplace but also as aplatform for collective growth of our workforce.”
Employee Training and Development
In terms of human development, we are dedicated to preserving the essence of Chineseculture. We organize regular activities to promote the spirit of the Constitution, foster asocialist culture based on the rule of law, and encourage employees to contribute towards theprogress of both Party and country with a sense of patriotism and loyalty. The companyplaces great emphasis on professional ethics, upholding the principle of "character first,performance second," and considers professional ethics as fundamental in talent selection.We value the spiritual and cultural well-being of our employees and actively promotetraditional Chinese culture along with socialist core values. Through organizing a series ofcultural events and learning sessions, we inspire employees to deeply comprehend andpractice constitutional principles while cultivating patriotism and loyalty towards the Party.This enhances team cohesion as well as corporate cultural identity, thereby fostering apositive working atmosphere for our company.
HumanDevelopmentCorporate
Training
OccupationMorality
Physical andMental Health
PatriotismLove forthe PartyOnboardingTraining
ManagementCourses
Basic Training
ProfessionalTraining
5859
By enhancing the comprehensive strategy for employee training, development, and care,we are dedicated to fostering the overall advancement of our employees. This will beachieved by integrating it with an incentivized promotion mechanism, thereby collectivelyestablishing the talent development concept framework of "YueAn University". In accordancewith the "Staff Training Management System", we offer holistic developmental opportunitiesto colleagues with diverse years of experience, backgrounds, skills, and career aspirationsfrom both corporate training and human development perspectives.
In terms of enterprise training, we offer employees a well-defined career developmentpathway encompassing foundational training, professional skills enhancement, andmanagement proficiency cultivation. Our induction program facilitates swift assimilation intothe corporate culture while our foundational training ensures acquisition of essentialvocational competencies. Subsequently, our specialized training and management coursesare designed to enhance employees' adaptability to evolving work demands and challenges,thereby fostering personal career growth, unleashing potential, promoting continuousprogress, and upholding the ethos of lifelong learning.
2023 ESG ReportEmployee Care and Community Vitality
In terms of the 2023 results, we have implemented the enterprise mentor program with acore strategy of "experimentation, adjustment, and breakthrough". The objective is to developa talent training model that aligns with the characteristics of YueAn, enabling cultivatedtalents to contribute effectively to the enterprise's goals and provide long-term strategicsupport for YueAn. The plan consists of three components: departmental initiation, fosteringcross-departmental collaboration, and integration within the entire organization. To enhanceour talent knowledge reservoir, we have established a company library aimed at enrichingstaff knowledge reserves while supporting upward mobility and encouraging talentedindividuals to lead organizational progress.
In 2024, we have planned to further expand the coverage of our training anddevelopment programs while introducing more innovative training methods and learningresources to cater to the diverse developmental needs of our employees. Simultaneously, wewill continue optimizing the corporate mentorship program for enhanced efficiency andpersonalization. Through continuous innovation and improvement, we eagerly anticipateproviding employees with abundant and efficient development opportunities in the future,thereby jointly embracing a brighter future. This strategic approach also serves as aneffective means for attracting and retaining talents.
「
「
A sound physique is the cornerstone of efficient work and a contented life. We activelyencourage our employees to participate in various recreational activities, which not onlyfosters communication and collaboration between teams, but also enhances work efficiencyand innovation while providing a relaxed atmosphere for employees to alleviate work-relatedstress, explore personal interests, and improve their physical and mental well-being.
A total of 54physical fitnessactivities
Over 200
participants
「
「
6061
“The social mission of "Poverty Alleviation, Education Empowerment" aims toaddress the basic educational needs of impoverished individuals through targetedassistance, thereby promoting stable poverty reduction and fostering sharedprosperity among this population.”We implement personalized assistance programs encompassing education,healthcare, employment, and other domains to effectively support impoverishedfamilies through comprehensive policies. Throughout the reporting period, thecompany collaborated with Beijing ZiDongHua Energy Technology Co., LTD., infacilitating cultural and historical learning experiences for underprivileged studentsfrom Dongmen Primary School in Beijing. Simultaneously, we extended our concerntowards the physical and mental well-being of party members residing in He DongTownship's Changling village who face various difficulties. We firmly believe thatprioritizing both physical and mental health while providing diverse educationalopportunities can empower individuals to unlock their full potential and contributesignificantly to societal prosperity and progress.
Poverty Alleviation
“We proactively share our knowledge assets with our community, always mindful of thegenerosity it has shown us, and actively engage in its development as a way to reciprocateits kindness.”
We consider rural revitalization as a pivotal component of the company's ESG strategy,and through extensive collaboration between enterprises and rural areas, we contribute toresolving practical issues in rural regions, broadening corporate perspectives, and achievingmutually beneficial outcomes. By providing financial support, technical training, or productdevelopment assistance to impoverished villages, we aid the government in expanding theinfluence of "10,000 Enterprises Revitalizing 10,000 Villages" initiative while fosteringincreased participation from more enterprises in rural revitalization efforts. Together, westrive towards promoting rural rejuvenation and attaining shared prosperity.
Rural Revitalization
「
「
6263
During the reporting period, we made a total donation about RMB 213,400 to varioussectors of society. Mr. Wang Bing, the General Manager, expressed during a donation eventthat YueAn as an assisting enterprise in Dongshan Village, has been actively exploringinnovative approaches for achieving mutual benefits between the village and the enterprise.The company aims to apply the knowledge and concepts acquired by enterprises tocontribute towards rural revitalization efforts. Moving forward, we will continue supporting thedevelopment of Dongshan Village and hope that more enterprises and entrepreneurs candemonstrate concern for their hometowns and contribute to their respective communities'progress. Following the donation ceremony, a "10,000 Enterprises Revitalizing 10,000Villages" symposium was held to envision a new future for Dongshan Village's developmentin 2024.
GRI Standard
Governance
Location of the report
102-18
Governance structure
Governance Structure
102-19
Delegating authority
Governance Structure
102-20
Executive-level responsibility for economic, environmental,and social topics
Governance Structure
102-22
Composition of the highest governance body and itscommittees
Governance Structure
102-23
Chair of the highest governance body
Governance Structure
102-24
Nominating and selecting the highest governance body
Governance Structure
102-25
Conflicts of interest
Governance Structure
102-26
Role of highest governance body in setting purpose,values, and strategy
Governance Structure
102-30
Effectiveness of risk management processes
Governance Structure
102-32
Highest governance body’s role in sustainability reporting
Governance Structure
102-35
Remuneration policies
Employee Compensationand Incentives
102-36
Process for determining remuneration
Employee Compensationand Incentives
102-37
Stakeholders’ involvement in remuneration
Governance Structure
102-40
List of stakeholder groups
Governance Structure
102-41
Collective bargaining agreements
Governance Structure
102-42
Identifying and selecting stakeholders
Governance Structure
102-43
Approach to stakeholder engagement
Governance Structure
102-44
Key topics and concerns raised
Governance Structure
GRI Standard
Organizational profile
Location of the report
102-1
Name of the organization
Report cover
102-2
Activities, brands, products, and services
YueAn's 20 Years
102-3
Location of headquarters
YueAn's 20 Years
102-4
Location of operations
Industrial Strategic Planning,Green R&D, Green Process,Green Energy, Green Water Use,Green Office
102-5
Ownership and legal form
YueAn's 20 Years
102-6
Markets served
YueAn's 20 Years
102-7
Scale of the organization
YueAn's 20 Years
102-8
Information on employees and other workers
Employee Diversity
102-9
Supply chain
Supply Chain Synergy
102-10
Significant changes to the organization and its supplychain
Supply Chain Synergy
102-11
Precautionary Principle or approach
ESG Strategy
102-12
External initiatives
Marketing Synergy
102-13
Membership of associations
YueAn's 20 Years
GRI Standard
Strategy
Location of the report
102-14
Statement from senior decision-maker
Chairman's Message
GRI Standard
Ethics and Integrit
Location of the report
102-16
Values, principles, standards, and norms of behavior
YueAn's 20 Years
102-17
Mechanisms for advice and concerns about ethics
YueAn's 20 Years, Assessmentof Material Issues, ESG Strategy,ESG Management and Planning
6465
Appendix 1: GRI report disclosure Index
2023 ESG ReportAppendix 1: GRI report disclosure Index (Continued)
GRI Standard
Reporting Practice
Location of the report
102-45
Entities included in the consolidated financialstatements
About the Report, PerformanceIndicators
102-46
Entities included in the consolidated financialstatements
About the Report
102-47
List of material topics
About the Report
102-48
Restatements of information
About the Report
102-49
Changes in reporting
About the Report
102-50
Reporting period
About the Report
102-51
Date of most recent report
About the Report
102-52
Reporting cycle
About the Report
102-53
Contact point for questions regarding the report
About the Report
102-54
Claims of reporting in accordance with the GRIStandards
About the Report
102-55
GRI content index
About the Report
102-56
External assurance
About the Report
GRI Standard
GRI201：Economic Performance 2016
Location of the report
201-1
Direct economic value generated and distributed
Appendix 2: Summary of KeyPerformance Indicators
GRI Standard
GRI205：Anti-corruption 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Anti-corruption, Anti-bribery, Anti-fraud
103-2
The management approach and its components
Anti-corruption, Anti-bribery, Anti-fraud
103-3
Evaluation of the management approach
Anti-corruption, Anti-bribery, Anti-fraud
205-2
Communication and training about anti-corruption policies and procedures
Anti-corruption, Anti-bribery, Anti-fraud
GRI Standard
GRI301：Materials 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Green Process
103-2
The management approach and its components
Green Process
103-3
Evaluation of the management approach
Green Process
GRI Standard
GRI302：Energy 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Green Energy
103-2
The management approach and its components
Green Energy
103-3
Evaluation of the management approach
Green Energy
302-4
Reduction of energy consumption
Green Energy
GRI Standard
GRI303：Water and Effluents 2018
Location of the report
103-1
Explanation of the material topic and itsBoundary
Green Water Use
103-2
The management approach and its components
Green Water Use
103-3
Evaluation of the management approach
Green Water Use
303-1
Interactions with water as a shared resource
Green Water Use
303-2
Management of water discharge-related impacts
Green Water Use
303-3
Water withdrawal
Green Water Use
303-4
Water discharge
Green Water Use
6667
GRI Standard
GRI305：Emissions 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Green Water Use
103-2
The management approach and its components
Green Water Use
103-3
Evaluation of the management approach
Green Water Use
305-1
Direct (Scope 1) GHG emissions
Green Gas
305-2
Energy indirect (Scope 2) GHG emissions
Green Gas
GRI Standard
GRI306：Waste 2020
Location of the report
306-1
Waste generation and significant waste-related impacts
Green Waste Management
306-2
Management of significant waste-related impacts
Green Waste Management
306-3
Waste generated
Green Waste Management
306-4
Waste diverted from disposal
Green Waste Management
306-5
Waste directed to disposal
Green Waste Management
GRI Standard
GRI307：Environmental Compliance 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Green Scientific Innovation
103-2
The management approach and its components
Green Scientific Innovation
103-3
Evaluation of the management approach
Green Scientific Innovation
307-1
Non-compliance with environmental laws and regulations
Green Scientific Innovation
GRI Standard
GRI308：Supplier environmental
assessment 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Supply Chain Synergy
103-2
The management approach and its components
Supply Chain Synergy
103-3
Evaluation of the management approach
Supply Chain Synergy
308-1
New suppliers that were screened using environmental criteria
Supply Chain Synergy
GRI Standard
GRI401：Employment 2016
Location of the report
103-1
Explanation of the material topic and its Boundary
Employee Rights
103-2
The management approach and its components
Employee Rights
103-3
Evaluation of the management approach
Employee Rights
401-1
New employees hires and employee turnover
Employee Rights
401-3
Parental leave
Employee Rights
GRI Standard
GRI403：Occupational Health and Safety 2016
Location of the report
103-1
Explanation of the material topic and its Boundary
Safety and Health
103-2
The management approach and its components
Safety and Health
103-3
Evaluation of the management approach
Safety and Health
403-1
Occupational health and safety management system
Safety and Health
403-2
Hazard identification, risk assessment, and incidentinvestigation
Safety and Health
403-3
Occupational health services
Safety and Health
403-4
Worker participation, consultation, and communication onoccupational health and safety
Safety and Health
403-5
Worker training on occupational health and safety
Safety and Health
403-6
Promotion of worker health
Safety and Health
403-7
Prevention and mitigation of occupational health andsafety impacts directly linked by business relationships
Safety and Health
403-8
Workers covered by an occupational health and safetymanagement system
Safety and Health
403-9
Work-related injuries
Safety and Health
403-10
Work-related ill health
Safety and Health
GRI Standard
GRI404：Training and Education 2016
Location of the report
103-1
Explanation of the material topic and its Boundary
Employee Training andDevelopment
103-2
The management approach and its components
Employee Training andDevelopment
6869
Appendix 1: GRI report disclosure Index (Continued)
GRI Standard
GRI404：Training and Education 2016
Location of the report
103-3
Evaluation of the management approach
Employee Training andDevelopment
404-1
Average hours of training per year per employee
Employee Training andDevelopment
404-2
Programs for upgrading employee skills and transition assistance programs
Employee Training andDevelopment
GRI Standard
GRI405：Diversity and equal opportunity 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Employee Care and CommunityVitality, Poverty Alleviation, RuralRevitalization
103-2
The management approach and its components
Employee Care and CommunityVitality, Poverty Alleviation, RuralRevitalization
103-3
Evaluation of the management approach
Employee Care and CommunityVitality, Poverty Alleviation, RuralRevitalization
405-1
Diversity of governance bodies and employees
Employee Care and CommunityVitality, Poverty Alleviation, RuralRevitalization
GRI Standard
GRI413：Local Community 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Supply Chain Synergy
103-2
The management approach and its components
Supply Chain Synergy
103-3
Evaluation of the management approach
Supply Chain Synergy
413-1
Operations with loacal community engagement,impact assessments, and development programs
Supply Chain Synergy
GRI Standard
GRI308：Supplier environmental assessment
2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Supply Chain Synergy
103-2
The management approach and its components
Supply Chain Synergy
103-3
Evaluation of the management approach
Supply Chain Synergy
308-1
New suppliers that were screened usingenvironmental criteria
Supply Chain Synergy
GRI Standard
GRI416：Customer health and safety 2016
Location of the report
103-1
Explanation of the material topic and itsBoundary
Marketing Synergy
103-2
The management approach and its components
Marketing Synergy
Appendix 1: GRI report disclosure Index (Continued)
EnvironmentalPerformance Index
Unit
Data
Total ammonia nitrogen
ton
0.32
Total hazardous waste
ton
62.39
Total general waste
ton
Total amount of recycled water
Cubic meter
313,073
Social Performance
Index
Unit
Data
Number of occupational cases
Person
Number of work-relateddeaths
Person
Number of Suppliers
Case
Number of Domestic Suppliers
Case
Number of OverseasSuppliers
Case
Total number of supplierssigning environmental andlabour requirements
Case
EnvironmentalPerformance Index
Unit
Data
Environmental protectioninput
RMB
4,138,200
Natural gas
Cubic meter
Gasoline
liters
Diesel
liters
19,888
Photovoltaic powergeneration
kWh
149,268
Volatile OrganicCompounds(VOCs)
ton
Sulfide emission
ton
NOx emission amount
ton
PM emissions
ton
Wastewater
ton
95,155
Total chemical aerobicquantity(COD)
ton
0.8508
7172
Appendix 2: Summary of Key Performance Indicators
Dear reader,
Thank you for taking the time out of your busy schedule to review the YueAn’s2023 ESG Report. We eagerly anticipate your valuable feedback andrecommendations regarding both the report and our endeavors. Your input serves asa crucial foundation for us to further advance sustainable development managementand implementation.Multiple Choice:
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3.3 Information Integrity (Considering both positive and negative aspects ofinformation and meeting your information needs)Yes Somewhat No
YueAn’s 2023 ESG Report
Jiangxi YueAn Advanced Materials Co.,Ltd.Phone: +86(0)797-8705008Fax: +86(0)797-8772868Email: stock@yueanmetal.comAddress: Xinshiji Gongyecheng, Dayu County,Jiangxi Province, (ZIP: 341500)Website: www.yueanmetal.com
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