Corporate SocialResponsibility Report2020
廣東領益智造股份有限公司
Stock Code: 002600
LINGYI iTECH (GUANGDONG) COMPANY
www.lingyiitech.com
CONTENTS
About the Report 2Message from the Chairman3About usIntroduction 5Location of Operation 5Values, Philosophy, and Vision 5Product Solutions 62020 CSR Performance Highlight 62020 Honors and Accolades 7Responsibility Management
Social Responsibility Management 9Materiality Assessment 9Economic ResponsibilityOrganization and Governance 13Integrity 14Customer Responsibility
Customer Services 17Quality Control 19Research and Development 22
Partners Responsibility
Supply Chain Management 24Responsible Procurement 25Employee ResponsibilityEmployee Distribution 27Talent Management 28Occupational Health and Safety 33Environmental Responsibility
Environmental Management 37Cleaner Production 37Resource Management 41Green Office 43
Community Responsibility
Fight Against COVID-19 45Give Back to Society 48
Performance Data Summary49GRI Content Index51
ABOUT THE REPORTThis report is the first “Corporate Social Responsibility Report” (the “CSR Report”) published by LINGYI iTECH(GUANGDONG) COMPANY (“LY iTECH” or the “Company”, or “we”) to enhance stakeholders’ understanding of theCompany’s sustainability strategy and the related management approach by disclosing the environmental, socialand governance performance of LY iTECH. The board of directors of the Company has reviewed this report toconfirm the accuracy, truthfulness, and completeness of the contents.REPORTING STANDARDThis report is prepared in accordance with the Core approach of the “Global Reporting Initiative SustainabilityReporting Standards (GRI Standards)”, with reference to the “Guidelines on Corporate Social ResponsibilityReporting for Chinese Enterprises (CASS-CSR)” published by the Corporate Social Responsibility ResearchCentre of the Chinese Academy of Social Sciences (CASS) and taking into account the actual situation of theCompany.REPORTING SCOPE
This report focuses on the disclosure of the Company’s environmental and social performance for the periodfrom 1 January 2020 to 31 December 2020. Unless otherwise specified, the total number of employees andits distribution disclosed in this report covers employees located in both Mainland China and overseas, theenvironmental and other social data cover all the Company’s manufacturing sites in Mainland China (excludingthose acquired in 2020), while the narrative information covers the entire Company.PUBLICATION FORMATThis report is published in electronic format and can be downloaded from the official website of LINGYI iTECH(GUANGDONG) COMPANY http://www.lingyiitech.com.FEEDBACKDuring the preparation of this report, the GRI reporting principles were applied as far as possible to discloseinformation related to the concerns of various stakeholders, so as to ensure that this report is balanced, clear andeasy to understand. In the future, we will continue to improve the content and disclosure of the report. If you haveany questions or suggestions on this report, please feel free to contact the Company through the following channels:
LINGYI iTECH (GUANGDONG) COMPANYAddress: No. 8 Long Wan Road, Pengjiang District, Jiangmen City, Guangdong ProvinceTel: 86 0750–3506078Fax: 86 0750–3506111Email: IR@lingyiitech.com
Corporate Social Responsibility Report 2020
MESSAGE FROM THE CHAIRMANThe Company is committed to offering customers “one-stop” smart manufacturing solutions by deliveringprecision, high-quality and cost-competitive end products. As stakeholders, including institutional investors,customers, employees, government, and regulatory authorities, are becoming more concerned aboutsustainability, the Company continues to invest resources in the direction of sustainable developmentcovering environmental, social and governance while strategizing its expansion and developing its business.The Company has already widely implemented a series of sustainability management initiatives, includingthe establishment of a well-defined governance structure, formulating management policies and obtaininginternational certifications. We have decided to keep improving the transparency of the Company’s performancein environmental, social and governance aspects, and issue the first CSR report of the Company to demonstrateour commitment to the path of sustainable development. In the future, we will take this as the cornerstoneto gradually incorporate the environmental and social elements into the corporate decision-making process,and continuously improve the management measures and relevant performance of sustainable development.FIGHT AGAINST COVID-19During the reporting period, despite the outbreak of COVID-19, all the employees adhered to the corporatespirit of “self-improvement and mission-bound”, and timely adopted various pandemic prevention measuresto cope with the COVID-19 pandemic to ensure stable production. Protecting the health of employees is ourtop priority. The Company has established the “Pandemic Prevention Committee” under the direct leadershipof the Chairman of the Board for the first time, and divided all employees into approximately 4,000 teamsfor grid management, each of which is responsible for tracking the physical and mental health of each teammember. Through the two high-level meeting calls in both morning and afternoon, the management can keepabreast with the pandemic prevention and control policies in various regions timely, and shared and analyzedinformation such as staff management and production plans to ensure our work is future-proof, well-planned,and effective. As of the end of 2020, there was no confirmed case of COVID-19 among all employees ofthe Company. In addition to preparing medical supplies such as masks, thermometers, protective clothingand disinfectants through external procurement and self-production, we maintain close communication withcustomers and partners on a regular basis to ensure smooth and effective information transmission, so thatcustomers, suppliers and other partners can keep abreast with the Company’s resumption of production andwork in a timely manner, so as to achieve reasonable resource allocation. During the reporting period, theCompany actively donated to the government departments locally, recording a total donation of RMB1,100,000.INTEGRITY IN OPERATIONSAnti-corruption is a key task of the Company. The Audit Department handles a major part of the work relatedto anti-corruption and anti-fraud, which is directly supervised by the Board, and regulates the code of conductfor employees and suppliers by formulating various rules and regulations, including the “Employee Handbook”,the “Internal Audit System” and the “Sunshine Procurement Notification Letter”. During the reporting period,we have decided that in addition to the full-coverage inspection of all subsidiaries, we shall gradually carryout audit on integrity for all departments. The Company has established the “Grievance and Whistle-blowingManagement Regulations” to encourage employees to report any illegal or non-compliance behaviourswithin the Company through various channels. In order to fully protect the legitimate rights and interests ofthe whistle-blowers and their personal safety, the whistle-blowing policy clearly sets out the confidentialitymeasures for protection, including full compliance with confidentiality rules and prohibition of leaking anyinformation of the whistle-blowers. Furthermore, the Company promotes a culture of integrity among allemployees through induction training for new employees and other channels, strengthens internal anti-fraudawareness and encourages employees to actively use complaint channels. At the same time, we stipulate therelevant requirements in the supply chain and require suppliers to sign the “Supplier Integrity Agreement”and the “Supplier Integrity Statement” to prohibit any inappropriate acts including bribery. At the same time,the “Integrity and Compliance Manual” was jointly issued with the Human Resources Department during thereporting period, and all employees shall be trained.
PROTECTING EMPLOYEES’ RIGHTS AND INTERESTS
Talent development is critical to sustainable development of us and protecting employees’ rights is thecornerstone of our management philosophy. We are committed to creating an equal and harmoniousworking environment for all employees, ensuring that every employee is treated fairly in terms of recruitment,remuneration and benefits, training, promotion, punishment and dismissal, and to give full play to their strengthsin their respective positions. During the reporting period, the Company updated the “Management Rules onProhibition of Discrimination”, which defines fair and reasonable job opportunities determined by an individual’swork ability and need, and applies to all employees within the Company. In addition, the Company has updatedthe “Management Measures on the Labor Protection of Female Employees”, aiming to protect the legitimaterights and interests of female employees at work and respect the physical and mental characteristics of them.The Company adheres to the principle of “openness, fairness and justice” to attract and retain talents. It notonly regulates the recruitment process and improves the talent selection mechanism, but also adheres to theprinciple of “voluntary employment” and prohibiting forced labor. We provide highly competitive remunerationand benefits to attract talents. Company also formulated and promulgated the “Salary Management Standards”to further optimize the remuneration system.PROHIBITION OF CONFLICT MINERALS
We understand that apart from our own environmental impact, our operations also have an impact along theentire production chain. In order to maintain a mutually beneficial and win-win cooperation with suppliers, wenot only guarantee the quality and compliance of raw materials, but also sign a number of agreements withsuppliers, including commitments to business ethics, green products and prohibition of conflict minerals andhazardous materials, which clearly highlight the suppliers’ responsibilities for fulfilling CSR and complyingwith laws and regulations. For conflict minerals, we have formulated relevant systems and strictly comply withinternational organizations and industry regulations, so as to effectively avoid any risk of conflict minerals. TheCompany’s suppliers were all in compliance during the year.PROMOTING LOW-CARBON ENVIRONMENT
The Company supports environmental sustainability with actions, fully implements cleaner production, andregulates the three wastes and noise emissions in production and living by formulating sound managementprocedures and third-party monitoring to reduce the impact of operations on the environment and employees.During the reporting period, we adopted energy-saving renovation plans to promote the reduction of theCompany’s electricity consumption intensity. In the future, we will continue to carry out the clean energydevelopment strategy, promote the application of green technology in production and manufacturing, andcontinue to promote the development of green and low-carbon industries.CREATING A BETTER FUTURE
Looking ahead, we will make full use of the synergistic effect such as technological advantages, reliable qualityand vertical integration of business, plough the customer resources of various business segments, exploreother industries such as new energy vehicles, medical services and aerospace, seize the new developmentengine of downstream markets, and become a large-scale smart manufacturing platform and enterprisewith domestic and international dual-cycle, cross-industries and diversification. At the same time, we alwaysreview the impact of our operations on the environment and society, continuously improve the performanceof sustainable development, and increase our competitive advantages in markets where we operate. I wouldlike to take this opportunity to express my sincere gratitude to all stakeholders for their hard work, includingemployees, customers, partners, shareholders, the government and the general public, and assure that wewill continue to fulfil our commitment to co-operation, support and promotion of the Company. I believe thatthere will be more interesting new opportunities in the future, and I look forward to working together with youfor realizing new hopes.
Zeng Fangqin
ChairmanMarch 2021
Corporate Social Responsibility Report 2020
Economic
Responsibility
CustomerResponsibility
PartnerResponsibility
Employee
Responsibility
EnvironmentalResponsibility
Appendix
ResponsibilityManagement
CommunityResponsibility
About Us
ABOUT US
INTRODUCTIONFounded in Shenzhen in 2006, the Company’s predecessor, Triumph Lead Electronic Technology (Shenzhen)Co., Ltd, successfully listed on the Shenzhen Stock Exchange (stock code: 002600) after acquiring JPMFGUANGDONG CO., LTD. in 2018. With five major platforms, namely materials, precise components, structuralparts, module assembly and FATP, LY iTECH provides customers with “one-stop” intelligent manufacturingsolutions to achieve precision, aesthetic, high-quality and cost-competitive end products. At the same time, wehave involved in industries such as new energy vehicles, medical care, power tools, 5G, IoT
, smart wearableterminal and smart home, to further expand our business layout, seize new development opportunities, andenhance our influence and value.LOCATION OF OPERATIONAfter more than a decade of development, LY iTECH has established research and development, productionbases in Asia including China, India and Vietnam, Europe including France, Turkey, and Brazil in SouthAmerica. We also have R & D centers in other locations such as Shenzhen, Dongguan, Dongtai, Suzhou,Taiwan, Singapore, and USA.
Brazil
USA
VietnamSingapore
SouthKoreaTaiwanTurkeyFrance
Finland
India
ShenzhenDongguanJiangmenZhuhaiHuizhouGuigang
SuzhouWuxiDongtaiChengduMianyangZhengzhouHong Kong
VALUES, PHILOSOPHY AND VISION
The Company adheres to the values of“Integrity and pragmatism, Customer first, respect for yourselfrespect for others, responsibility, long-termism and value symbiosis”, carries forward the “strong culture”,advocates the concept of “technology as core competitiveness”, and leverages the advantages ofadvanced technology, excellent talent echelon, mature international management, sustainable developmentstrategic deployment, etc., to continuously expand the Company’s scale, enhance sustainable profitability and riskresistance capacity, and rapidly develop into a global leading manufacturer in the field of precisionmanufacturing.
IoT refers to Internet of Things
PRODUCT SOLUTIONS
MaterialsMaterials platform has been specialized in the research and development, production and marketingof ferrite magnetic materials and new materials. The products mainly cover permanent magnet ferritecomponents, soft magnetic ferrite components, thermal materials, conductive material, and other functionalmaterials. Our products have been sold to Japan, Europe, America, Hong Kong, Taiwan and other countriesand regions, and supported by world-renowned motor manufacturers and electronic device manufacturers.
Precise ComponentsPrecise components platform includes a wide variety of surface treatment processes from stainlesssteel, aluminum alloy to titanium alloy, from CNC to turning-milling composite processing technology,from sandblasting, polishing to PVD and anodic oxidation and so on. These processes are combinedindependently developed automation and visual inspection technology, aiming to provide precisemetal parts with stringent requirements on size and appearance to consumer electronics industry.Structural PartsWith the intelligent factories as its carrier, structural parts platform makes large-scale investment on the entireprocess including R&D, mould manufacturing, injection moulding, spraying, CNC processing and assembly.Automatic production equipment has been fully applied and new industrial model based on end-to-enddata flow and supported by network interconnection has been fully established. The platform, as the coresupplier of world-famous high-end mobile phone brand customers, centers on the intellectualization of keymanufacturing process and enhance the competitiveness of core products.Module Assembly
Module assembly platform focuses on the integrated solutions of module assembly in consumerelectronics, and have various product lines such as LCD module, capacitive touch screen, wirelesscharging module, thermal module, backlight module, linear motor module, keyboard module and etc.FATPMaking full use of the advantages of our self-made products and taking automation as its technicalbasis, we integrate the manufacturing capability of the above four platforms to provide customerswith FATP of mobile phones, routers, chargers, smart wearable terminal, smart home, IoT andother consumer digital products, helping customers to simplify supply chain, reduce cost andimprove product reliability.
2020 CSR PERFORMANCE HIGHLIGHT
Revenue
28.14 billion
Year-on-year growth
17.67%
Investment in trainingRMB 4.67 million
Total investment in safetymanagementRMB 23.74 millionTotal investment in environmentalprotectionRMB 89.26 million
Solar power generation20,222,359 kWh
Corporate Social Responsibility Report 2020
EconomicResponsibility
Customer
Responsibility
PartnerResponsibility
Employee
Responsibility
EnvironmentalResponsibility
Appendix
ResponsibilityManagement
CommunityResponsibility
About Us
2020 HONORS AND ACCOLADES
CompanyNameAwarded byLINGYI iTECH (GUANGDONG) COMPANY2020 Chinese Brands Top 500 (No. 320)Asia Brand AssociationLINGYI iTECH (GUANGDONG) COMPANY2020 Fortune China 500 (No. 378)Fortune ChinaLINGYI iTECH (GUANGDONG) COMPANY2020 CCID List of Most Valuable
Enterprises in Digital Economy (No. 46)
CCID ConsultingLINGYI iTECH (GUANGDONG) COMPANY2020 Top 500 Chinese Private Enterprises
(No. 400)
All-China Federation of Industry
and CommerceLINGYI iTECH (GUANGDONG) COMPANY2020 China’s Top 500
Private Enterprises inManufacturing Industry (No. 227)
All-China Federation of Industry
and CommerceLINGYI iTECH (GUANGDONG) COMPANY2020 Top 100 Private Enterprises in
Guangdong Province
Guangdong Federation of Industry
and CommerceLINGYI iTECH (GUANGDONG) COMPANY2020 Top 100 Enterprises with
Comprehensive Strength ofGuangdong Electronic InformationManufacturing Industry
Guangdong Electronics and
Information Industry AssociationLINGYI iTECH (GUANGDONG) COMPANYCBG Excellent Cooperation AwardHuawei Technologies Co., Ltd.
Consumer BGSalcomp Co., LtdCBG Quality Protection AwardHuawei Technologies Co., Ltd.
Consumer BGLing Sheng City Technology (Jiangsu)Co., Ltd.
Five-Star Enterprise AwardYancheng Municipal Committee
and Municipal GovernmentLY Technology (Suzhou) Co., Ltd.Safety Enterprise AwardSuzhou Public Security BureauLY Technology (Suzhou) Co., Ltd.Corporate Honours for Advanced
Materials
Suzhou Xiangcheng People’s
GovernmentChengdu Ling Yi Technology Co., Ltd.Top 100 Private EnterprisesChengdu Enterprise
Confederation, Chengdu
Entrepreneur Association,
Chengdu Enterprise Culture
Association
The Company understands that it is the social responsibility of an enterprise to take intoaccount the environmental and social impacts of its daily operations and management, and itis committed to promoting the sustainable development of its business, the environment andthe society.
?Social Responsibility Management?Materiality Assessment
RESPONSIBILITY MANAGEMENT
Corporate Social Responsibility Report 2020
About Us
ResponsibilityManagement
EconomicResponsibility
CustomerResponsibility
PartnerResponsibility
EmployeeResponsibility
EnvironmentalResponsibility
Appendix
Community
Responsibility
SOCIAL RESPONSIBILITY MANAGEMENTAdhering to the values of “Integrity and pragmatism, Customer first, Respect for yourself respect forothers, Responsibility, Long-termism, Value symbiosis”, the Company has gradually integrated theconcept of sustainable development into its daily operations and management, taking into account theenvironmental and social impacts arising from the Company’s operations. While promoting the Company’s ownsustainable development, the Company actively shoulders the CSR and makes contributions to socialdevelopment.The Company’s Human Resources (HR) Department, Quality Department, Procurement Department, AuditDepartment and EHS
, SR
, President’s Office, Administration, Legal and Research and Development Departmentwork together to collect annual CSR data and information. We would constantly review the Company’s CSRperformance and strive to continuously improve the Company’s CSR governance level.MATERIALITY ASSESSMENTDuring the reporting period, the Company conducted the first materiality assessment with reference to the GRIStandards. Through the four steps of identification, prioritization, validation and review, the Company identifiedthe material issues that are highly concerned by stakeholders and are closely related to the Company’soperations and responded to the concerns of stakeholders in this report.
MATERIALITY ASSESSMENT
Identify? By referencing the “CASS-CSR4.0”, other reporting guidelines, peer analysis, we haveidentified 28 potential material topicsPrioritize
? Invited stakeholders including employees, customers, suppliers, as well as the managementof the Company to complete an online survey, learning the level of importance they placedon each potential material topics? Prioritized 28 topics according to “Significant impact to the Company’s business operationand development” and “Substantive Influence on stakeholders”, creating the materiality natruxValidate? The management of the Company reviewed and validated the outcome of the assessmentfor the year? This report focuses on the disclosure of these material topics
Review?Reviewed the assessment process and identified rooms for improvement
EHS refers to Environment, Health and Safety
SR refers to Social Responsibility
Materiality Matrix
Based on the ratings of the Company’s management and stakeholders, we have built a materiality matrix. Thereare 5 issues located in the first-tier region, which are important to the Company and stakeholders, or to one ofthem, and we refer to them as material issues.
HighFirst Layer
High
Second LayerThird Layer
Fourth Layer
Conflict mineralsmanagement
Remunerationand Benefits
EnvironmentalCompliance
Business Ethics andAnti-corruptionTalentManagementTraining andpromotion
Hazardous Wastemanagement andEmission Reduction
Product andService QualityWastewaterDischarge andReduction
EconomicPerformance
EmissionReduction andManagement
Social andEconomicComplianceRaw Material Usingand Saving
Occupationalsafety and health
Customer andConsumer RightsData Safety and CustomersPrivacy ManagementGreen Supply Chain
Energy Managementand ConservationWater Managementand ConservationProduct SalesEmployeeCommunication
General Waste Management andEmission reductionSupplierManagement
IntellectualProperty RightResponse toClimate ChangeDiversity and EqualOpportunitiesCommunityInvestment
Employee IssuesOperational IssuesEnvironmental I
| ssues |
Economic Issues
TechnologicalInnovation
Corporate Social Responsibility Report 2020
About Us
ResponsibilityManagement
EconomicResponsibility
CustomerResponsibility
PartnerResponsibility
EmployeeResponsibility
EnvironmentalResponsibility
Appendix
CommunityResponsibility
Respond to Stakeholders’ Concerns
Highlights in 2020
CorrespondingChapterMaterial IssuesBusiness Ethics andAnti-corruption
?Sort out anti-corruption management process andsystem?Continue to improve audits and gradually conductethical audit for all departments?Strengthen the promotion of integrity culture?Train on the “Integrity Compliance Manual” for allemployees
EconomicResponsibility
EnvironmentalCompliance
?Establish various system documents to regulatethe air emission, wastewater, solidwaste and noise?Carry out environmental protection training topromote green office and enhance employees’awareness of environmental protection?Actively promote the application of green technologyin production
EnvironmentalResponsibility
Remuneration andBenefits
?Revise the “Salary Management Standards” to
further standardize the management of employees’remuneration and benefits?Continue to implement share incentive schemes formid-level management and core technical personnel?Provide multiple remuneration and benefits such assalaries, allowances, subsidies and bonuses
EmployeeResponsibility
Conflict MineralsManagement
?Suppliers are required to provide “Supplier Conflict
Minerals Investigation Form” and “Supplier Non-Conflict Minerals Commitment Letter”?Tracking the source of the metal raw materials?Cooperate with customers to carry out inspection
work when necessary
PartnersResponsibility
TechnologicalInnovation
?R & D investment 1819.91 million?Recruited R & D personnel 6510?New patents 488
CustomerResponsibility
The Company attaches great importance to integrity construction for operations, and strictlycomplies with relevant laws and regulations. While pursuing economic value, we actively fulfilour economic responsibilities to all stakeholders and promote mutual development.
?Organization and Governance?Integrity
(For details of economic performance, please refer to the 2020 Annual Report of LY iTECH)
Revenue
28.14 billion
Net profit
2.27 billion
Total tax paid
0.94 billion
Total assets
29.39 billion
ECONOMIC RESPONSIBILITY
Corporate Social Responsibility Report 2020
ResponsibilityManagement
EconomicResponsibility
About Us
CustomerResponsibility
PartnerResponsibility
Employee
Responsibility
EnvironmentalResponsibility
Appendix
CommunityResponsibility
Strategic DevelopmentCommittee
Audit CommitteeNomination Committee
Annual General Meeting
Board of DirectorsSupervisory Board
Board Secretary
Remuneration andAppraisal Committee
Management LevelORGANIZATION AND GOVERNANCE
In strict compliance with the requirements of the “Company Law of the People’s Republic of China”, the “SecuritiesLaw of the People’s Republic of China” and the “Articles of Association”, LY iTECH continues to improve itscorporate governance structure and strengthen its internal control. The Company has established a number ofspecial committees under the Board and formulated the “Terms of Reference of the Special Committees of theBoard” to ensure the working efficiency and scientific decision-making. The Company’s organizational governancestructure is shown in the chart above.The Board of the Company consists of 7 Directors, 3 of whom are independent directors, carrying out workindependently and fairly, earnestly fulfilling their fiduciary duties to the Company and all Shareholders diligently,and safeguarding the interests of the Company as a whole. When appointing members of the Board, we considerfactors such as work experience and independence. During the reporting period, the Company convened 15 Boardmeetings, at which 68 resolutions were considered and approved. At the same time, the Supervisory Committeeof the Company consists of 3 supervisors, including 1 employee representative supervisor, to supervise thedecision-making process of the Board and protect the legitimate rights and interests of the Company and minorityshareholders.The convening, holding, and voting procedures of the general meetings of the Company were in compliance withthe relevant laws and regulations. During the reporting period, the Company convened 1 AGM and 8 extraordinarygeneral meetings in total, with separate counting of votes for all shareholders. Relevant shareholders abstained fromvoting when considering related projects, so as to protect the legitimate rights and interests of all shareholdersand ensure that all shareholders enjoy equal status. During the reporting period, 28 resolutions were consideredand approved.The Company has complied with the “Rules Governing the Listing of Stocks on the Shenzhen Stock Exchange”,the “Guidelines for the Standardized Operation of Companies Listed on the Small and Medium-sized EnterpriseBoard of the Shenzhen Stock Exchange” and the “Articles of Association” to complete the disclosure of regularreports on time, and formulated the “Management Measures for Information Disclosure” to ensure full discharge ofthe obligated information disclosure. The Company carried out open and transparent communication with investorsthrough investors’ interactive platform, online performance presentation, on-site investigation, email, investortelephone hotline, etc. For more information on corporate governance, please refer to the “Corporate Governance”section in the 2020 Annual Report.
INTEGRITYThe Company strictly abides by national laws and regulations, actively responds to the national call for anti-corruption, and has formulated a number of rules and regulations, including the “Employee Handbook”, the “InternalAudit System”, the “Audit Reward and Punishment System”, and the “Sunshine Procurement Notification Letter”,to regulate the behaviour of employees and suppliers, continuously optimize internal risk control, audit supervisionand other matters, and establish a sound compliance management system to ensure the Company’s legal andcompliant operations.Supervision and InspectionThe Audit Department of the Company is the leading department for anti-corruption and anti-fraud work, directlyguided and supervised by the Board. Integrity construction is a key task of the Company, and anti-corruption andinvestigation cases are also listed as one of the important strategic indicators. During the reporting period, from theperspective of risk control, we sorted out the anti-corruption process and system, identified corruption risk pointsthrough special audit, and cooperated with relevant business departments to implement the system.We conducted full-coverage inspections on all subsidiaries of the Company, mainly for important departmentsdirectly involved in money transactions, such as the Procurement Department, and set up internal audit controlpositions. During the reporting period, we continued to establish comprehensive audit projects and plans. Inthe future, we will systematically conduct investigations on areas with high corruption risks and plan to conductethical audit gradually for all departments based on the actual situation.Complaint and Whistle-blowing MechanismGrievance and whistle-blowing mechanism is an effective way to detect fraud and protect the interests of theCompany and employees. The Company has established the “Complaint and Whistle-blowing ManagementRegulations” to encourage employees to report any illegal or non-compliance act within the Company throughverbal means, complaint hotlines, letters, emails, labor unions, satisfaction surveys and other channels. Anycomplaints related to fraud and corruption are required to be reported to the Audit Department of the Company,and investigation will be initiated upon approval by relevant leaders. If necessary, the public security authoritieswill be approached in the verification of corruption cases. The report shall give feedback to the complainanton the progress or results within one week after receiving the report.
Corporate Social Responsibility Report 2020
ResponsibilityManagement
EconomicResponsibility
About Us
CustomerResponsibility
Partner
Responsibility
Employee
Responsibility
EnvironmentalResponsibility
Appendix
CommunityResponsibility
Whistle-blower ProtectionIn order to fully protect the legitimate rights and interests and personal safety of the complainant, our policy clearlystates the confidentiality and protection measures for the complainant. We require the relevant person-in-charge tocomply with confidentiality rules throughout the process of receiving complaints, investigating reports and rewardingwhistle-blowers, and strictly prohibit leakage of any information of whistle-blowers. If any retaliation against thecomplainant is found, we will impose strict punishment, and those who violate relevant laws and regulations willbe transferred to judicial authorities for handling.
RECEIVEINVESTIGATEREWARD?All forms of reporting arereceived and registered byprofessional personnelsand keep the written reports?Provide whistleblowers with
confidential venue
?Strictly forbidden to disclosethe identity of thewhistle-blower?When interviews and
investigations are required,choose a strictly confidentialplace and convenient time
?After obtaining theconsent of the reportingperson, the award notice willbe announced
Culture of IntegrityThe Company attaches great importance to the working environmentand has established and defined business ethics and professionalethics for employees. During the reporting period, we promoted aculture of integrity to all employees through induction training for newemployees, monthly online promotion, poster stickers, case sharing,etc., to strengthen internal anti-fraud awareness and encourageemployees to actively use complaint channels. At the same time,we cover the requirements of the supply chain, have formulated the“Sunshine Procurement Agreement” and set out the complaint channelsin the contract. At the same time, we require suppliers to sign the“Supplier Integrity Agreement” and the “Supplier Integrity Statement”to prohibit any inappropriate acts including bribery.
Promotion of Integrity Culture
Warm Reminders“Integrity and pragmatism” is the basic value of everyemployee. Comply with the Company’s rules and regulations,have the courage to speak, and jointly maintain a good andfair work condition are employees’ responsibilityGrievance GuidelinesAccording to the requirements of the “Standard for Reportingand Whistle-blowing”, the above management work related topicsfalls within the scope of acceptance of the litigation hotline.In order to deal with the relevant demands more quickly anddirectly, it is recommended to follow the procedure of complaint:
1. Send the questions or demands to the department or superior
to seek help;
2. File a complaint by hotline, or contact the human resources of
the factory;
3. If it is not resolved, please send the feedback to Group’s
hotline;
4. Reporting corruption and fraud, please contact the Group
directly.
The Company adheres to the quality policy of “Customer Satisfaction as the Focus, Qualityas the Centers; Technological Innovation as the Core, and Continuous Improvement asPerseverance”, and fully fulfils the responsibilities to customers.
?Customer Services?Quality Control?Research and Development
R & D investment1819.91 million
Number of patents1,411In-vehicle product-related plant has passedIATF16949
CUSTOMER RESPONSIBILITY
Corporate Social Responsibility Report 2020
EconomicResponsibility
CustomerResponsibility
ResponsibilityManagement
About Us
Partner
Responsibility
EmployeeResponsibility
EnvironmentalResponsibility
Appendix
CommunityResponsibility
CUSTOMER SERVICES
Providing comprehensive services and high-quality products to customers is our goal. We listen to our customersand strive to provide high-quality customer services in every aspect of our operations.Improving Customer SatisfactionCustomer satisfaction provides a basis for measuring the process performance of our business plan andcontinuous improvement of the management system. Improving satisfaction requires the cooperation of variousdepartments, therefore, the Company has formulated the “Customer Satisfaction Monitoring Procedures” alongwith other systems to clarify the roles and responsibilities of various departments.The Sales Department CSM
conducts a customer satisfaction survey every six months to investigate theCompany’s technical capabilities, product quality, delivery timeliness, product pricing, customer satisfaction aftercomplaint handling, transportation methods and sales and customer service, and forms analysis reports such asthe “Customer Satisfaction Survey and Analysis Report”, which are submitted to the CSM manager or above forapproval. If necessary, CSM shall issue a “Report on Corrective and Preventive Measures” in accordance with the“Control Procedures for Corrective and Preventive Measures” to the relevant responsible department. They areresponsible for analyzing the causes of customer dissatisfaction, discussing corrective and preventive measures, andimplementing improvement policies. CSM is responsible for following up with customers’ feedback and improvingresults until reach the conclusion. In order to continuously improve customer satisfaction, we have combinedcustomer suggestions and departmental feedback into the “Customer Suggestion Report”, which serves as thebasis for the Company’s continuous improvement.Grievance Handling ProcessListening to customer complaints is a valuable opportunity for the Company to improve the quality of its productsand services. Customers can express their complaints through telephone, mail, fax, DingTalk, WeChat and otherchannels.The Company has always attached great importance to the establishment and improvement of the customercomplaint handling procedures, and formulated documents such as the “Customer Complaint Handling Procedures”,“Customer Return Handling Management Standards”, “Operation Standards for Rework and Special Requirements”,etc., in an attempt to eliminate unqualified factors and improve customer satisfaction through timely and effectivecomplaint handling plans. Upon receiving customer complaints, we would follow the procedural requirements toanalyse the cause and provide a proper solution.
CSM refers to Customer Service Management
Customer Complaint Handling Procedures
RECEIVE CONFIRMATION OF CUSTOMER COMPLAINT INFORMATION
TAKE EMERGENCY MEASURES
ANALYSIS AND COUNTERMEASURES
RESPOND TO CUSTOMER COMPLAINT REPORTS
IMPACT TRACKING
PERIODIC ANALYSIS
?The Sales Department makes feedback to the Quality Department within 1 hour after receiving customer complaint,the Quality Department informs internal related personnel within 1 hour, and lead relevant department to handlethe case?The Quality Department is responsible for confirming the legitimacy of the information, and determine the rationality
of customer complaints with PD, QE and ME
?The Quality Department leads the relevant departments to analyse the causes and formulate short-term and long-term improvement measures?If the defect is caused by outsourcing or raw materials, the supplier or subcontractor should provide emergencyresponse within 4 hours, and the processing of the report within 2 working days? 1 working day to convene meeting of the relevant departments to determine emergency measures and improvementmeasures?To prepare a handling report within 3 working days, and reply to the customer after review by the department
head or manager?If time is exceeded due to specific reason, the clients shall be informed?The Quality Department is responsible for following up the implementation of the improvement measures?If there are no complaints within 2 months of three batches of delivery, the measures are determined to beeffective?The quality supervisor or manager makes the final confirmation on the closing status of each customer complaint?The quality supervisor or manager regularly collects customer complaints, conducts comprehensive analysis,conducts horizontal analysis of products of the same category, summarizes experience and lessons, and optimisesrelated procedures and documents accordingly?Customer complaint information will be used as one of the input items in the director meeting and managementreview meeting
?The Quality Department should make emergency measures within 4 hours, check materials in different states
(such as raw materials, in-process, inventory, in-transit and client etc.)?According to the preliminary investigation results, convene engineering, production and other departments to
discuss the disposal plan of inventory, such as taking emergency containment measures in the plant, including
the separation of defective products, production adjustment and other measures, as well as notify the relevant
departments?The Sales, Customer Service and Quality Department shall discuss temporary measures with customers when it
affects production
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QUALITY CONTROLThe Company always regards product quality as its top priority. The relevant production factories have passedISO9001, and the production factories related to in-vehicle products have also obtained IATF16949 qualitymanagement system certification, so as to provide excellent quality relying on the construction of quality system.Quality ManagementThe Company is able to guarantee product quality because of the strict control over each production process. Wehave stipulated the inspection of the quality of incoming materials, semi-finished products and finished productsin accordance with the “Inspection and Control Procedures”, and have standardized the procedures of incomingmaterials inspection, product inspection between the production process and finished products inspection. Duringthe reporting period, the Company did not have any product recall due to quality reasons.Receive materials?Check whether the name,
specification quantity, etc. ofthe item are in conformity withthe object?Confirm the packing integrity
Delivery
?OQC (outgoing quality control)
checks and inspects the productappearance structure, size,performance, packing. etc.
Incoming materials
? IQC (incoming quality control) confirms
whether the suppliers are qualified? Check product full-size test report,
reliability test report, RoHS, halogen test
report, etc.? Spot checks on incoming materials
Production process
?Conduct self-inspection,
patrol inspection, inspection
of semi-finished product and
finished product during the
production process
MAIN PROCEDURES
FOR INSPECTION
CONTROL
Product Safety
It is our responsibility to provide green and safe products. We ensure the procurement and production of greenand safe materials through internal systems such as “Chemical Management Procedures” and “Green ProductManagement Procedures” to fully protect the health of customers and reduce the impact on the ecosystem. Everyyear, we provide at least one training for employees at all levels, including green product laws and regulations,relevant internal procedures of the Company and customer requirements, to enhance awareness and ensureoperational compliance. For departments involved in chemicals management, including procurement, production,warehouse, administration, and security, we organize chemical emergency drills twice a year to deepen employees’understanding of chemicals and other restricted substances and improve on-site management capabilities.
Chemicals Restriction and Elimination Plan
In accordance with the requirements of domestic and foreign laws and regulations, including RoHS
and REACH
,as well as the special requirements of customers, the Company has formulated the “Management and ControlStandards for Hazardous Substances in Green Products”, and updated the management and control list on aquarterly basis to provide products and materials to the Company and its suppliers as the basis for the prohibition,restriction and management of environmental management substances.CategoryDescriptionTreatmentClass I prohibited substances? Prohibition by laws and regulations? Immediate prohibition on useClass II restricted substances? An existing statute of limitation on
prohibition of use?Customer requests restriction orprohibition of use?The Company actively promotesthe prohibition
?Restriction on use?Actively promoting the prohibitionof use
Three-tier managed substances? Future legislation may prohibit or
restrict
?Minimizing use
Environmental Management Substance Categories and Handling MethodsAt the same time, we adopt elimination plans in accordance with the requirements of laws and regulations,customers’ needs and occupational hazards to ensure that we are at the forefront of compliance with laws andregulations and are able to avoid compliance risks.
Hazardous substances phase-out planAccording to the EIA, Chemical hazard and environmental benefit assessment, the use ofwater ink with low volatile organic compounds (VOCs) content to replace solvent-based inknot only is more environmentally friendly, meets the requirements of EIA, but also reduces therisk of occupational hazards.
RoHS refers to Restriction of Hazardous Substances Directive. It is mainly used to standardize the material and processstandards of electronic products to make them more conducive to human health and environmental protectionREACH refers to “Regulation concerning the Registration, Evaluation, Authorization and Restriction of Chemicals”. Itis the EU regulation on preventive management of all chemicals entering its market
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Product Lifecycle ManagementIn order to comprehensively identify the chemical content in the products and ensure the overall control ofhazardous substances, each department of the Company perform their respective duties. The management layerof the Company is the ultimate person-in-charge of the hazardous substance process management system, withthe cooperation of Systems, Quality, Procurement, Engineering, Sales and other departments, to conduct full-cyclemanagement from the development stage of new products to the materials procurement, input, manufacturingprocess, finished products and storage. In the early stage, we fully understand our customers’ requirements andincorporate hazardous substance management requirements into our engineering design. During the procurementand supply process, we require random inspection of incoming materials. Suppliers are required to provide third-party RoHS, HF
, and other test reports and MSDS
, clearly listing the content and percentage of each content,and the sum of the percentages must be 100%. Each batch of final products shall be sent for RoHS and HFinspection in accordance with the standard inspection guidelines and shall only be shipped after confirming that itmeets the requirements of customers.Chemical SafetyIn addition, we have formulated the “Administrative Regulations on Chemical Inspection” to regulate the managementof procurement, transportation, storage, use and disposal of chemicals. All personnel involved in chemicals mustundergo external training and recognition or personnel administration training.
CHEMICALS
CONTROL
Inbound and in-stock management?
daily check? Equipped with effective emergency facilities, such as fire
extinguishers, fire hydrants, water sources, eye washers, fire suites,
etc.? Chemical warehouse has “no fireworks” logo, emergency contact
phone and other clear signs?
| Record truthfully the storage quantity and flow of highly toxic or easily |
toxic chemicals and take necessary precautions; if lost or stolen, it
should be reported to local pubic security agency immediately
Procurement, transportation, acceptance
? Each department completes the purchase requisition form,
then submits for purchase after the department’s manager andOperation Department approval? Review the qualifications of the chemicals including RoHS, HF,
REACH, MSDS etc.? Sign environmental protection agreements woth suppliers and
collect chemical information? Chemical manufacturers need to provide correcponding business
or transportation qualifications? IQC must test the compliance of chemical environmental
protection requirements and related materials and whether the
packaging is damaged
Disposal of chemicals and pollutants
? Discarded chemicals and other hazardous wastes are handed over
to the Personnel Administration Department for unified recycling
and processing, as well as a recycling registration is established? Allocate a fixed place for hazardous wastes, should be clearly
marked and managed by a dedicated? All departments should classify waste chemicals and their
pollutants. Disposal at random places is strictly prohibited
Use? Arrange professional personnel to take charge of chemicals and
strictly control the amount taken each time? Flammable and explosive chemicals are stored on site for no more
than 24 hours? Strictly forbid to pile up large quantities of chemicals? MSDS must be equipped on the site where chemicals are used
and implemented in accordance with its requirements? Chemical users must be equipped with labour protection, and the
Human Resource and Administration Department should regularly
check labour protection status during the use of chemicals
HF refers to Halogen Free
MSDS refers to Material Safety Data Sheet
RESEARCH AND DEVELOPMENT
Technological innovation is an inexhaustible driving forcefor the development of the Company. We are committedto reducing costs and enhancing efficiency throughinnovative research and development, so as to maintainour competitiveness in the industry. During thereporting period, our R & D investment amounted to RMB
1819.91 million, accounted for 6.47% of our operatingrevenue, and we employed 6510 employees for R & D.In order to encourage employees to embrace innovationand create a good working atmosphere for research anddevelopment, we have established the “Patent RewardMeasures” to reward inventors based on their contribution and implementation efficiency. At the same time,the quantity and quality of intellectual property rights obtained are important indicators for title evaluation, jobpromotion and performance appraisal.Through our ongoing effort and accumulated know-how, the Company has obtained 488 new patentsduring the reporting period. As of 31 December 2020, the total patents held was 1,411.
Shenzhen LL Machine Co., Ltd., a subsidiary of the Company, achieved outstandingachievements in industrial robots, machine vision and special automation, and obtained 229domestic and overseas patents, including 67 patents and software copyrights in the industrialrobot field. We have mastered the comprehensive core technology of industrial robots andachieved customized and specialized development of automation equipment.
Intellectual Property Protection
Intellectual property is one of the most important assets of the Company. We strictly abide by laws and regulations,respect the intellectual property rights of customers and suppliers, and have formulated the “Intellectual PropertyManagement Regulations” to regulate our own intellectual property management. We have established a soundintellectual property confidentiality system and its file management system to specify the confidentiality, non-competition restrictions, confidentiality rewards and penalties, and filing management of employees. We sign the“Confidentiality Agreement” with employees to prevent leakage and loss of intellectual property information. We alsoprovide employees with education and training on intellectual property rights and promote and exchange experienceto enhance their awareness of intellectual property protection.
During the reporting period, the Company has transferred 100% of the equity interest in Shenzhen DJN OptronicsTechnology Co., Ltd., thus excluding its patents
1,166
1,411
| NUMBER OF PATENTS |
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The Company has established in-depth collaborative relationships with suppliers to jointlypromote the healthy development of the industry and promote the fulfillment of responsibilitiesin the value chain through responsible procurement.?Supply Chain Management?Responsible Procurement
Conflict free minerals100%
PARTNERS RESPONSIBILITY
SUPPLY CHAIN MANAGEMENTSuppliers are our long-term partners and close cooperative relationships with them are mutually beneficial and yieldwin-win results. The Company actively communicates with suppliers through channels such as telephone, mail andsupply chain management platform, and has established internal policy documents such as “Supplier ManagementProcedures” to regulate the daily management of supplier screening, introduction and review for selecting qualitysuppliers.
ApprovalSelectionManagement? Supplier assessmentquestionnaire? Qualification review? On-site review? Second-party review
?Agreement signed? Monthly assessment
?Annual review?Supplier consulting
SUPPLIER MANAGEMENT PROCESS
Selection of SuppliersThe introduction and selection of suppliers is subject to multi-level review; suppliers are selected on the basisof qualifications, compliance, sample quality and other aspects through self-assessment questionnaires andon-site review. Depending upon the characteristics of suppliers, we have different requirements and thresholds.We require all manufacturers to obtain ISO9001 quality system certification issued by a third-party and suppliersof automobile OEM
products also need to pass the second-party IATF16949 review. In addition, for corematerials suppliers of vehicle products, we implement a two-party review process in accordance with theautomotive industry practice, and the suppliers are reviewed by employees with relevant qualifications to forma review report and a list of problems, and require the suppliers to complete improvement within three months.New suppliers are required to sign a number of agreements with us, including commitment to business ethics, greenproducts and non-use of conflict minerals and hazardous substances, with a clear emphasis on CSR performanceand compliance with laws and regulations.Supplier Assessment and EngagementIn order to strictly control the supply and service quality of suppliers, the Procurement Department, QualityDepartment and Engineering Department conduct comprehensive assessment on quality, cost, delivery time, serviceand environmental protection requirements every month. Annual review on suppliers that is provisional, with lowmonthly ratings, or large procurement volume, are also performed. It is conducted through self-evaluation and on-siteaudit to comprehensively evaluate the supplier’s quality management system, training management, developmentand design, hazardous substance management, CSR and process control. Suppliers with unsatisfactory performanceare required to provide improvement measures within a week and complete the improvement within one month.The Company is committed to improving the ability of its suppliers through communication and guidance to achievewin-win cooperation. The Procurement Department conducts face-to-face communication with suppliers havingunsatisfactory performance and we send engineering or quality-related personnel upon management approval tofacilities of such suppliers to help them identify and resolve issues
An original equipment manufacturer (OEM) makes systems or components that are used in another company’s endproduct
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RESPONSIBLE PROCUREMENTThrough the business cooperation with suppliers, the Company generates impact on the environment and thecommunity. Performance of its suppliers in fulfilling their social responsibilities also has a significant impact onthe sustainability performance of the Company. We are committed to promoting sustainability through responsibleprocurement. In addition to formulating the “Supplier Intergrity Agreement” and the “Sunshine ProcurementAgreement”, we have incorporated elements of CSR into the annual review of suppliers, in which environmentalprotection, occupational health and safety, hazardous goods management, business ethics, protection of labor andhuman rights and conflict minerals are also assessed.
ANNUAL SUPPLIER REVIEW ON CSR
? Environmental
ManagementCertification System? Pollutant EmissionCompliance? EnvironmentalCompliance
? Hazard GoodsManagement? Emergency Measuresfor Fire Safety andOther Accidents? Food ServiceSanitation?Occupational Disease
SAFETYSOCIETYENVIRONMENT
? Offering or Accepting
Bribes? Integrity ManagementSystem?Human Rights?Labor Practice?Conflict MineralsConflict MineralsSome of the Company’s products and suppliers may sometimes be at risk of being involved with conflictminerals
. We strictly comply with requirements of international organizations and industries, and effectivelymitigate the risk of conflict minerals by formulating relevant control systems and rigorously requiringsuppliers to prohibit the use of conflict minerals. When selecting and introducing suppliers, we require allsuppliers to provide “Supplier Conflict Minerals Investigation Form” and “Non-Conflict Minerals CommitmentLetter”, which includes research on conflict minerals. We require suppliers of metals to trace the original sourcewhere its metal has been mined. When necessary, we actively cooperate with our customers to conductrelevant inspections. During the reporting period, 100% of suppliers were in compliance.
Conflict minerals are from the Democratic Republic of the Congo and its neighbouring countries, mainly containingcassiterite, wolframite, coltan and gold ore. The profits from the sale of some minerals fund the ongoing armed conflictover local human rights abuses
Our prosperity depends on the hard work of each employee. Therefore, we protect the rightsand benefits of employees and create a safe, healthy, harmonious, warm and developmentenvironment for employees.?Employee Distribution?Talent Management?Occupational Health and Safety
Percentage of employees trained
89.55%
Total training hours
727,285 hours
Work-related fatalities
Safety training200,899 hours
Refers to all employee training other than safety training，employee training hours including safety training cover only data inMainland China
EMPLOYEE RESPONSIBILITY
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EMPLOYEE DISTRIBUTIONThe Company values talents, making sure its talent plan is globalized. We put strong emphasis on laborconditions and cultivating domestic talents. Members of our senior management team have generally studied andlived abroad while our factories in India, Brazil and Vietnam are run mainly by local cadres and employees. Asof the end of the year, the Company had a total of 76,729 employees, with 100% labor contract signing rateof permanent workers. The proportion of male and female employees was approximately 3: 2. The Company hasa total of 1,264 management personnel, of which 24.37% are female. There were 39,383 employees under theage of 30, accounting for 51.33% of the total number of employees of the Company.
TALENT MANAGEMENTTalents are the valuable resource of the Company. We focus on cultivation of talents by safeguarding thelegitimate rights and interests of employees. The Company follows the principle of equality and voluntarinessto sign labor contracts with employees. In addition to providing employees with necessary board and lodgingconditions, we are committed to improving professional skills and personal qualities of employees, by activelyorganizing various training activities, and deeply developing corporate culture and team building. In order tomaintain the stability of our core staffs and encourage employees to make progress collectively, we implementan equity incentive scheme to reward outstanding teams and employees to enhance their enthusiasm andcreativity. Meanwhile, we enrich the spare time of our employees by organizing various recreational activitiesand giveaways.Talent AcquisitionIn order to meet the demand for talents for the rapid development of the Company, we have standardized therecruitment process and improved the talent selection mechanism. We provide competitive remuneration andbenefits and provide a fair and equal competition environment to attract talents in accordance with the “RecruitmentOperation Guide”.The Company adheres to the principle of “openness, fairness and justice” and believes in open recruitment, equalcompetition and merit-based hiring, as well as ensuring the implementation of the principle of “matching people withpositions”, strictly prohibiting forced labor and debt-paying recruitment, etc., so as to ensure the orderly operationof recruitment process. According to development strategy and the department preparation status, each departmentformulates a talent demand plan at the end of each year, and submits the “Application Form for Recruiting” tothe HR Department. Based on the comprehensive business needs, the HR Department formulates the “AnnualRecruitment Plan” after reviewing the forms which provides effective guidance for recruitment. We adopt a multi-channel strategy to recruit and attract talents.? Internal priority principle? Open and fair competition?Multi-channel information release? Comprehensive evaluation? Internal recommendationencouragement policy
? Online recruitment? On-site recruitment? Headhunting recruitment? Talent market recommendation? Campus recruitment
? "Customized" talent training model? Actively explore suitable collegesand universities? In depth understanding of on-sitevisits to institutions? Cooperate with institutions to
develop learning plans
LARGE SCALE EXTERNAL RECRUITMENTINTERNAL RECRUITMENTSCHOOL ENTERPRISE COOPERATION
The Company adheres to a strict recruitment process, the manager and the above personnel using the "PersonnelDecision Matrix" for the interview, and talent database to be updated in real-time. Talent pool reserve personnelis contacted regularly or irregularly to maintain good communication and promote sound development of theCompany’s talent management.In recent years, the Company has been continuously promoting the recruitment and training of high-end talents,as well as focusing on the proportion of highly educated talents in various positions. During the reporting period,the number of fresh graduates of 211 and 985 universities recruited by the Company increased significantly ascompared with the previous year, representing a growth rate of 231%.
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Training and DevelopmentIn September 2020, the Company revised the “Promotion ManagementStandard” to further provide guidance and basis for management ofdepartments and subsidiaries, standardizing the promotion managementprocess and improving management efficiency. The HR managers shallconduct assessment and review on the qualifications of employees.Department managers train and develop the capabilities of their employeesand further provide excellent talents. The HR Department of each factoryhandles promotions based on reporting, qualifications, and process review.After promotion, employees receive new responsibilities and expectations.Supervisors communicate with employees to formulate new work plansand allow employees to participate in relevant training courses in order tobetter adapt to their positions and give full play to their strengths.
Management ChannelTechnology ChannelFunctional Channel
We regard “Nurturing People” as an important goal of talent development and therefore focus on the cultivationof employees and team quality, and formulate training plans according to the Company’s business developmentstrategy and the needs of production and management operation to ensure the sustainable development of boththe Company and employees.We ensure the reasonable implementation of training plans with sufficient operation standards, coveringinduction, onboarding, on duty, external training, trainer management, etc. The Company regularly holdsinduction training, corporate culture training, basic skills training, quality skills training, management training,legal knowledge promotion, etc. for new employees, and regularly inspects the knowledge and skills of thetrained employees to promote the multi-dimensional and all-round development of employees. At the same time,the Company has set up an online learning platform to produce corresponding course videos and documentsaccording to the actual situation and the needs of various departments, so as to provide employees withflexible and diversified learning methods.During the reporting period, a total of 61,378 employees participated in training. The percentage of employees trainedwas 89.55%, with a total of 727,285 training hours and an average of approximately 10 training hours per employee.
In order to enhance capability and professional skills of PDT (Product Development Team) and achievethe goal of smooth development, fast ramp-up and customer satisfaction, the Research Institute, togetherwith the HR and IT team, created the Lingyi PDT Institute and carried out the “PDT Training”.
PDT BUSINESS TRAINING
“Lingyi Library-PDT Academy”
Trainees carried out course learning and experience sharing. At this stage, a total of 277courses were collected. The total number of participants reached 2,565 and 5,815 new reportswere exported.“DingTalk and Cloud Class”
Each BU HR administrator uploads “courseware + questions” to the cloud class regularly, andarranges product, quality, and intelligent engineers to learn. A total of 323 training courses werecarried out at this stage. A total of 2,322 employees were participated, achieving a completionrate of 90%. The pass rate was 94%, and average score after the re-examination was 91 points.In order to better understand the learning situation of the students and increase their enthusiasmfor learning, in May 2020, the Research Institute and the HR Deparment jointly held a PDT trainingphase summary meeting, rewarding the outstanding trainees in the first and second stages oftraining. Third stage of the training was wrapped up in December.
Based on the on-site management team’s capability model, the Company worked with a professional consultingcompany to establish the “Three-Star, Four-Star and Five-Star” training camp growth system for the on-sitemanagement team of LY iTECH to meet the growth needs of different industries, different bases and differentobjects.
ELITE TRAINING
Focusing on the main topic of “enhancing the ability of on-site management team”, this training campadopts methods such as online learning + online training + job practice + knowledge competition+ essay activity + theme discussion. Through the training and learning with competitions, theimplementation of management skills in daily work management, and promote the improvement ofon-site QCD operation performanceThrough online learning of nine courses, live seminars by experts, online knowledge contests, anda series of operational activities, systematic training and competitions were carried out, focusingon the creation of a learning atmosphere, gathering momentum and forge ahead, continuouslystrengthening goal guidance, focusing on the direction of job ability improvement, and creatingwithin the company a good learning atmosphere to “compete, learn, improve and excel”Efficient management system and excellent on-site management team are the solid foundationof enterprise on-site management and the integral cell of the enterprise. Improving the overallquality of the enterprise, maintaining the vigorous vitality of the enterprise, and building a high-quality workforce full of craftsmanship is the only way to ensure the scientific and sustainabledevelopment of the enterprise
Online TrainingRemuneration and BenefitsIn order to further standardize the remuneration payment standards and enhance the institutionalizationand process management of remuneration and benefits, during the reporting period, the Company furtheroptimized the remuneration system. It has revised the “Salary Management Standards”, and supplemented thecorresponding details of the provisions of the “Dining Management Regulations”, the “Dormitory ManagementRegulations” and the “Communication Management Regulations”. The Company has established a diversifiedremuneration and welfare system covering standard wages, work allowances, work subsidies and bonuses,subject to strict compliance with relevant national laws, regulations and local government policies andregulations. The Company is committed to enhancing the sense of belonging and happiness, as well as creatinga good working environment. In order to attract and retain outstanding management talents, the Companyimplemented a share incentive scheme for middle management and core technical backbones to enhance thecohesion and competitiveness of the Company’s management team, so as to ensure sustainable, stable andrapid development of the Company.Standard wagesWork allowancesWork subsidiesBonusesStatutory benefits Basic salary Job allowance
Performance salary Skill allowance
Overtime allowance Night shift allowanceFull-attendancebonus Performance bonus
High-temperaturesubsidy Meal subsidyAccommodationsubsidyTransportationsubsidy Travel subsidy Examination subsidy
Year-end bonus Project bonusRecommendedbonus Retention bonus
Five social insuranceand one housingfund Statutory holidays
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Equality and Harmony
The Company is committed to providing an equal and harmonious working environment for all employees, ensuringthat every employee is treated fairly in terms of recruitment, remuneration and benefits, training and promotion, anddismissal, so that they can give full play to their strengths. In April 2020, the Company revised the “ManagementRules on Prohibition of Discrimination” to further regulate the fairness of providing working opportunities. At the sametime, when deciding on labor related matters such as employment, remuneration, training opportunities, promotion,demotion or retirement, the relevant departments shall make decisions based on the individual’s work ability andneeds, rather than the factors such as race, social class, nationality, religion, disability, sexual orientation, unionmembership and government relations.During the reporting period, the Company also revised the “Management Measures on the Labor Protectionof Female Employees” to continuously protect the legitimate rights and interests of female employees, reduceand assist in solving the special difficulties caused by the physiological characteristics of female employeesprotect their health and improve the Company’s hommization in management decision.Engagement and GrievanceThe Company has set up a “suggestion box”, a complaint hotline and a DingTalk platform, where employeescan submit any incident of discrimination under real name or anonymously. The Human Resources Departmentis responsible for handling the incidents. If the situation is found to be true after in-depth investigation, thediscriminators are punished, and the results are communicated to the involved employee. During the reportingperiod, we further revised the “Complaint and Whistle-blowing Management Regulations”, established and improvedthe complaint and whistle-blowing mechanism and channels, standardized the process of acceptance, investigation,implementation and feedback and clarified the functions and powers of relevant departments. We guided andprotected whistle-blowers, effectively investigated and dealt with the accused with disciplinary actions, preventedrisks, safeguarded the rights and interests of the Company and employees, and promoted the communicationbetween the Company and employees. Any employee or related party may reflect their opinions and suggestionsthrough formal channels when they believe that their reasonable rights and interests are unreasonably violated,and has found any illegal acts such as corruption, theft, bribery, dissemination of rumors, leakage of secrets, andharm to the Company and society.? Publicity and promotion? Reward and punishment? Assist in collecting andinvestigating information? Information feedback
? Actively implement procedures? Departmental supervision? Responsible for non-audit case
HumanResourcesDepartmentOtherDepartments
AuditDepartment
SRDepartment
? Lead the collection, briefhandling of complaints andreports? Irregular inspection? Feedback
? Revise related systems? Collection of complaintchannel information? Initiation of investigation case
Employee satisfaction survey is an effective method for the Company to proactively understand employees’ opinions,which helps to improve the Company’s operation and management level and increase the sense of identity andbelonging. During the reporting period, we actively promoted the employee satisfaction survey, covering aspectssuch as working environment and quality, remuneration and benefits, rules and regulations, personal developmentand logistics support. At the same time, we conduct a thorough analysis of the survey results, improve and upgradethe corresponding premises, facilities, systems and management methods, and continue to enhance and implementthe protection of employees’ rights and interests.
WELFARE IMPROVEMENT
? High temperature subsidies duringsummer? Regular meals adding fruits, chickenlegs, beverages, etc. with free? Quarterly staff birthday parties? Holiday welfares such as DragonBoat Festival, Mid-Autumn Festival,Women’s Day and New Year’s Day? Regular staff seminars to listen to staffsuggestions and improve them
?Birthday party?ForumsCare for EmployeeIn order to improve the quality of life of employees and enrich their spare time, the Company holds fun sportsgames and other various cultural activities. We firmly believe that a rich after-work life can stimulate employees’work enthusiasm, promote communication among employees, and increase the cohesion of the Company. Atthe same time, the Company convenes employees to actively participate in external activities and communicatewith other local companies and factories. In November 2020, a Company of employees participated in the2020 Feng Menglong Village Walking Competition to compete with 91 teams, so as to strengthen their bondsand determination.
?Group Games?Tug-of-War Competition?Walkathon
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In addition to providing employees with remuneration and benefits and organizing various cultural activities, theCompany always pays attention to the physical and mental health of employees and their families and is committedto caring for employees in both work and life. We actively build an employee service platform to provide assistanceto employees in need. In July and September 2020, the Company raised more than RMB80,000 and RMB50,000for an EPM engineer and a production staff respectively, both of whom received timely diagnosis and treatmentand successfully returned to health. The relief activities were highly valued by the leaders of the Company, and theemployees of the Company actively participated in and responded positively to the activities, sending warmth tothe families of employees in need and helping them to overcome difficulties. We are convinced that the employeeassistance activities can connect the colleagues with each other, form a harmonious working atmosphere of mutualassistance, improve their work and life quality, and develop together with the Company.
OCCUPATIONAL HEALTH AND SAFETYHealth and safety of employees is a necessary condition for normal operations of the business and an importantfactor for sustainable development of the Company. We strictly abide by relevant laws and regulations and haveformulated internal management regulations. We are committed to building a sound system to provide employeeswith a safe working environment, which includes not only physiological, but also mental health, as well as improvingcorresponding policies to safeguard employees’ health.Health and Safety ManagementIn order to prevent the occurrence of occupational diseases, keep abreast of the health status of employees,prevent the occurrence of workplace hazards, and effectively establish health management files for employees, theCompany has established the “Health and Safety Management Procedures”, the “Work Guide for Managing Work-related Injuries”, the “Notice of Occupational Hazards”, the “Work Guide for Physical Examination of OccupationalDiseases” and other safety management measures to standardize the management system. Currently, LY iTECHhas passed the certification of ISO45001 occupational health and safety management system.
? Prevention first, combined prevention and treatment, classified management, comprehensive management? Distribute occupational disease protection products and generate occupational disease hazard warnings? Occupational hygiene training, notification of occupational hazards? Labor protection equipment usage management
OCCUPATIONAL HEALTH MANAGEMENT
? One person, one file, establish occupational health surveillance files, keep them properly, and make it easyto extract? New recruits accept general entry physical examination? Employees exposed to occupational hazards undergo pre-job, on-the-job, change-of-job, and resignation
physical examination? Occupational injury return to work assessment, integrating medical treatment, company and employeepersonal wishes
HEALTH RECORD MANAGEMENT
? Qualified occupational health technical service organizations test and use protective facilities that meet
national health standards and requirements? Establish a protective facility management responsibility and administrations, implement management rules
and regulations, and complete regular operations and effective inspection systems, improve technical files,
reduce production, repair, maintain and record equipment? Protection facility operating procedures, performance, use requirements training, guide the correct use
of facilities
FACILITY MAINTENANCE AND REPAIR
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Health and Safety Management PerformanceIn order to enhance the safety awareness of all employees and their ability to cope with accidents, we have provideddiversified safety trainings in an orderly manner. Newly inducted employees are required to receive a three-levelsafety training, and pass the examination before on duty, and continue to receive re-education. Special operators,such as those electrical compliances, cranes and pressure vessels are required to receive regular education.
Training Education? National safety policy? Safety producing planning? Typical accident analysis? Production management system
Workshop Safety Education
?Production process? Safety technical regulations? Occupational hazards andpreventive measures
Team Education?Production process? Hazard factors and preventivemeasures? Equipment performance, safetyregulations? Healthy operation regulationsIn order to ensure the production safety of employees, the Company has formulated the “Guidelines for WorkInjury Management” and other relevant documents to regulate the prevention and handling procedures ofaccidents. We will analyse and handle work-related accidents in a timely manner, and further improve ourexisting measures to enhance our emergency response capabilities.
EmergencyManagement
Accident ReportAccident Preventionand Follow-up
?Immediately report to
the head of the shift anddepartment leader ?If necessary, notify EHSand Security Department toprotect the scene and guidethe rescue process ?If work-related injury happens,
the injured person should besent to hospital immediately
? Industrial Accident Departmentshall submit the Report of AccidentInvestigation to the EHS Departmentwithin two days?Within two days after reportsubmission, hold a safety productionmeeting to report the cause, safetyprecautions etc. Each departmentmay put forward the opinion, anddraws lessons from the experience forself-rectification, to achieve resourcessharing
? Make the factory announcementfor sharing to avoid therecurrence of similar accidents?Based on cause andimprovement measure, form thedaily key point for inspection? Make injury declaration, laborcapacity appraisal and rewardand punishment
Work Injury Management ProceduresDuring the reporting period, the Company’s occupational health trainings attracted a total of 161,527 person-timesparticipating in 200,899 training hours. The Company had no major production safety accidents or more seriousproduction safety accidents, no work-related fatalities, and a total of 13 general safety accidents
with zerocasualty. The main causes of work-related injuries are that employees operate in violation of regulations, frequentabnormal operation of equipment for waste discharge and disposal, as well as insufficient safety supervision andtraining. To this end, we summarized the lessons learned, and the relevant responsible departments updated thesafety operation process, replaced equipment models, strengthened safety training, and strengthened departmentsupervision and inspection to timely rectified the problems, and implemented preventive measures.
General safety accidents refer to caused death less than 3 people, caused serious injury of less than 10 people, or directeconomic loss less than RMB 10 million
The Company actively fulfils its corporate responsibility to protect the environment, and fullyand reasonably allocates resources by controlling internal resources, so as to reduce wasteof resources and improve energy efficiency The Company has also adopted various measuresto reduce pollutant emissions and implemented an energy-saving and low-carbon operationmodel, striving to achieve sustainable development.?Environmental Management?Cleaner Production?Resource Management?Green Office
Solar power generation20,222,359 kWh
General waste recycling rate
76.34 %
Total investment in environmental protection
89.26 million
ENVIRONMENTAL RESPONSIBILITY
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ENVIRONMENTAL MANAGEMENT
The Company strictly abides by the relevant environmental laws and regulations, and actively performs theresponsibility of environmental protection and attaches great importance to environmental and sustainabledevelopment. We have established a sound environmental management system, formulated an EHS environmentalpolicy and set the objectives to minimize the negative impact on the environment. We have set up an EHSmanagement team led by the general manager level personnel, which is responsible for overseeing and managingthe Company’s environmental management, as well as identifying, assessing and controlling EHS risk factors,and regularly reviewing the achievement of EHS objectives to ensure the smooth and effective operation of theCompany’s environmental management work. As of 31 December 2020, the relevant factories have passed theISO14001 environmental management system certification.CLEANER PRODUCTION
The Company actively responds to the national call by fully implementing clean production, reducinggeneration and discharge of pollutants, and striving for sustainable development of the Company. We haveformulated a comprehensive management process to regulate the discharge of wastewater, air emissions andnoise generated in production and living, so as to ensure that they meet the legal requirements and reducethe negative impact of our operations on the environment. The Company engages third-party companies toregularly monitor the air emissions, wastewater and noise, and to ensure complying with the requirements ofthe environmental impact assessment approval standards of each plant according to the local environmentalprotection requirements. In case of non-compliance, the environmental protection engineering unit carries outthe necessary modifications and renovation in plant facilities. In addition, the Company vigorously promotedthe application of green technologies in production and manufacturing, continued to facilitate the developmentof green and low-carbon industries.?We set up solar panels on the idle roof of the plant. In 2020, a total of 20,222,359 kWh of solar power was
used, which can meet approximately 3.2% of the Company’s energy demand and reduce the reliance ontraditional energy?Since April 2019, we have been working together with a large client located in North America, committingto adopt 100% clean energy to manufacture itsproducts?We communicate with suppliers and make cleanenergy strategic contracts to support the sustainabledevelopment of the Company?Plan to purchase 350,000,000 kWh clean energy in2021Waste ManagementThe Company specifies the classification of wastes generated and strictly regulates collection, storage, andtreatment of general wastes and hazardous wastes. The Company’s garbage bins are classified in workshopsand dormitories with graphic signs for identification. Waste is stored separately by category and marked with“general waste” and “hazardous waste” at the storage site for identification and treatment by relevant personnel.During the reporting period, the Company generated a total of 128,088.57 tonnes of general waste, of which
76.34% was recycled and reused; a total of 8,813.09 tonnes of hazardous waste was generated, mainly
including sludge, waste cutting fluid, waste organic solvent and waste mineral oil, etc. which have been handledover to qualified waste handling agencies for disposal.
General wasteHazardous waste
?A storage container or facility for generalwaste should always be kept clean and intact.For wastes contained in storage containers,the name of the wastes shall be clearly notedon the external surface of containers.?Recyclable parts, such as metals, metalscraps, paper, waste rubber, etc are recycledand reused by the suppliers; general garbage(metal slag) is recycled, and mats are laid onthe ground near the warehouse to preventaluminum slag from falling on the road.?Rainwater dredging garbage does not directlycontact with ground, and plastics cushionsmust be laid at the opening of rainwater wellsto collect the waste.?The non-recyclable part will be handed overto local sanitation department for clean-up,transportation and disposal.
?Before hazardous waste is generated,collected, and transported to the hazardouswaste warehouse, each department isresponsible for the classification, collectionand management, and timely reporting to therelevant agencies for registration and filling inthe “Waste Entry and Exit Record”.?Hazardous waste will be transported to thehazardous waste storage place for storage bydesignated personnel upon collection.?Hazardous waste sites have secondaryprotection measures and equipped withfire-fighting equipment; different types ofhazardous wastes should be separated andstored separately to avoid material conflictsand cause environmental or safety incidents?Hazardous wastes are handed over to
qualified manufacturers for recycling, transferand disposalCollection, Storage, and Disposal of WasteWe post hazardous waste labels on bins, which can provide employees with the warning of potential hazards in theprocess of hazardous waste generation, storage and transformation. During the reporting period, the Company alsoadopted series of measures to reduce the generation of hazardous waste and standardized its treatment process.
?Environmentally Friendly and
Efficient Mud Machine
?New Hazardous Waste Warehouse
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Wastewater ManagementThe wastewater generated by the Company is mainly production wastewaterand domestic wastewater. During the reporting period, the Company dischargeda total of 987,130.25 tonnes of production wastewater. Meanwhile, theCompany’s production process involves a large amount of water consumption.On the basis of water resource risks identified in each production process, wetook active measures to reduce water consumption, reuse wastewater, tryingto water recycling.We strictly comply with relevant national laws and regulations and controlwastewater discharge through the following processes.
?Pure water system, producingconcentrated wastewater for flushing
Strict emission standardsReal-time monitoringClassified management? Wastewater from each factoryis treated in accordance withthe requirements of the EIAapproval and discharged inaccordance with the standards.“Zero Wastewater TreatmentAgreement” should be signedwhen necessary? According to the latest EIA,environmental engineers prepareand update the “WastewaterDischarge List” quarterly throughdata review, on-site visits,seminars, etc.? The discharge outlets ofwastewater stations shall be setup with signs of the dischargeoutlets that meet the requirementsof environmental protectionregulations
? The Company performs pollutantmonitoring on a real-time basis.If the wastewater does not meetthe standard of discharge, theCompany timely investigates thecauses, conduct rectification, andmake records? Relevant responsible persons shallanalyse the reasons for non-compliance and further proposeimprovement measures
? Sewage pipes and rainwater
pipes are strictly separated, anddischarge of wastewater fromtoilets into rainwater pipes isprohibited? Waste oil, waste chemicals and
other items that cause great harmto the environment are prohibitedfrom being dumped into thesewage pipes (such as variouswastes, garbage, etc.)? Relevant departments regularly
clean up the sewage pipelines,non-regularly inspect the sewageseptic tank in toilets? Garbage must be poured into
a designated place to preventwastewater from flowing into therainwater pipe
Air Emission ManagementAir emissions generated by the Company mainlycome from the production process, the use of generators andvehicles. During the reporting period, total nitrogen oxides, sulphur oxides and particulate matter generated bythe Company were 25.09 tons, 0.26 tons and 43.65 tons, respectively. The Company has adopted a seriesof measures to reduce exhaust gas emissions and ensure that air emission meets the requirements of laws andregulations.
Develop and update the “Exhaust Air Emission List”, which lists the types of emissions of theCompany and is updated quarterly
All vehicles of the Company are subject to regular annual audit; makes regular maintenanceof air emission treatment facilities, such as regular cleaning, setting up of standby fan andbackup materials, etc.When facing emergency shutdown of the exhaust system, the relevant personnel shall benotified timely to conduct emergency maintenance and use the stand-by instead. Meanwhile,number of on-site operators should be reduced, and the department heads and employeesshould be notified to inform the maintenance progress to prevent affecting the health ofemployees.
Air Emission Management MeasuresNoise Control
The “Noise Emission List” has been formulated and updated regularly. We engage relevant departments to monitorthe noise generated during the production process of the Company. If the noise emission exceeds the standard,we would immediately carry out measures such as noise reduction and separation until the standard is met. Wealso carry out regular maintenance on all machinery and equipment and conduct regular inspection on machineryand equipment daily and take acoustic support measures for noise-generating machinery. In addition, we alsoprovide employees with protective equipment such as earplugs to protect employees’ health from noise hazards.If noise is generated during the production process due to mechanical failure or other reasons, we shut down themachines immediately and invite electricians to inspect and repair to ensure that the noise does not affect thesurrounding community.
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RESOURCE MANAGEMENTEnergy ConsumptionThe Company is committed to continuously optimizing resource management and improving energy efficiency. Theenergy consumption involved in the daily operations of the Company includes petrol, diesel, natural gas, liquefiedpetroleum gas (direct energy) and purchased electricity (indirect energy). During the reporting period, the Company’stotal energy consumption was 2,514,815.53 GJ, among which direct consumption was 205,437.18 GJ and indirectconsumption was 2,309,378.35 GJ. We conducted an energy analysis at the end of the year to review the energyconsumption during the reporting period and adopted energy-saving plans as appropriate. During the reportingperiod, we have adopted multiple measures as follows to reduce energy consumption and raise energy efficiency.
? Some factories implemented a regional electricity accountability system. Theperformance of electricity usage control is linked to the salary of person in charge? Air-conditioning electricity management: professional personnel is responsible
for setting up energy-saving and consumption-reducing management signs andconducting daily inspections? Power consumption of production equipment: power off during non-use time(including measuring instruments), self-checking of compressed air leakage, etcGreenhouse Gas Emissions
Climate change has become a hot issue concerned globally, and China has also brought up the goal of achievingcarbon neutrality by 2060. The Company actively responds to the national call, pays attention to its own carbonfootprint, and reviews the impact of its operations on climate change.The Company’s greenhouse gas emissions mainly consist of direct emissions from natural gas combustion,diesel and petrol during production and work (Scope 1), and indirect emissions from the use of purchasedelectricity (Scope 2). During the reporting period, our total greenhouse gas emissions were 529,140.71 tCO
e,of which Scope 1 was 13,251.25 tCO
e, and Scope 2 was 515,889.46 tCO
e.At the same time, we seized the development opportunities of clean technology and made strategic arrangementsin advance.
EnergyManagement
EnergypartnerInformation
PlanningExtensive participation and implementationby departments including administration,equipment, factory affairs, operation,management, finance, and accountingSet up supervision mechanism forimplementation process and effect, aswell as demonstration factories andprojects to promote clean energy
According to the assessmentreport of the energy managementpartners, formulate the long-termenergy management plan: mainlyincluding distributed solar powerstations, energy storage stationsand central air conditioning units
Pay attention to various ways to collectenergy management information andstrive to be in the leading position
Energy management partner: Theenergy management strategiccooperation agreement was signed,and the energy management ofthe factory was comprehensivelyevaluated by the energy partner, anda valuation report was prepared
Implementationand tracking
Clean Energy Management PlanWater ConsumptionWater shortage has increasingly become a global challenge. We always adhere to the water sources protection,deepen the recycling of water, and improve the utilization efficiency. During the reporting period, the Companyconsumed a total of 9,315,554.40 tonnes of water.Environmental TrainingDuring the reporting period, the Company organized a number of themed activities and special trainingprogrammes to enhance employees’ awareness of environmental protection, strengthen the professionaltalent team and improve the environmental management skills. Through environmental protection training,the awareness of employees, especially production management personnel, has been further enhanced. Theenvironmental protection responsibilities of employees were determined to ensure that the orderly operationsof environmental management was promoted.
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?Hazardous Waste Training?Rainwater Management Training?Wastewater Management Training
?Emissions Treatment Training?Chemical Safety Management Training? Environmental Knowledge TrainingGREEN OFFICEThe Company promotes sustainable development policies, actively nurtures green office culture, and conveys theconcept of “green office, low-carbon life” to every employee. By creating a good atmosphere of energy savingand consumption reduction, the Company has raised employees’ awareness of energy saving and reduced itscarbon footprint.
Provide environmental protection trainingto employees and promote green officeinitiatives
Purchase energy-saving products andequipment
Inspect the status of water and electricityequipment daily, and use energy-savinglamps in the factory; the lights must beturned off during non-office hours
Adopt printing with card and encouragethe use of double-sided printing and thesecondary use of single-side paper
The Company actively participates in various social welfare activities to give back tothe society, demonstrating the development concept of co-creation and sharing with thesociety.?Fight against COVID-19?Give Back to Society
Donation for PandemicRMB 1.1 million
COMMUNITY RESPONSIBILITY
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FIGHT AGAINST COVID-19In the face of the sudden outbreak of COVID-19, during the reporting period, we took various measures to formulateand implemented various pandemic control measures. With a people-oriented approach, we are determined to fightagainst the pandemic, as well as contributing to the whole society within our capacity and fulfilling the Companysocial responsibility.
Establishment of the “Pandemic Prevention Committee”In January 2020, we established the “Pandemic Prevention Committee” led by the Chairman, and divided allemployees into approximately 4,000 teams, in each of which a team leader and a deputy team leader wereappointed to track living, psychological and health status of family members of each group member. SinceJanuary, the Company has held a high-level meeting call every morning and afternoon. One main aspect ofthe meeting is to get employees familiar with the pandemic prevention and control policies in various regions;Another aspect is that information sharing such as analysis of employee management and production plans,work matters and plans are determined in the morning and follow-up work progress is reported in the afternoon,so as to ensure forward-looking, well planned and effective work.
Comprehensive and orderly resumption of work and production
Based on different locations in which employee spent the Spring Festival holidays and the transportationvehicles used for returning to the factory, and with reference to the national and local regulations andrequirements on the management and control of the mobile employees, the Company classified employeesinto three levels, namely high risk, medium risk and low risk. It adopts different entry, dining and dormitorymanagement strategies for employees at different risk levels, taking into account efficiency and risks, so asto ensure the health and safety. No suspected or confirmed cases was found during the reporting period.According to the locations of employees and the information of returning visits, on the premise of employees’ freewill, and to avoid cross-infection that may be caused by public transportation, the Company organized buses inadvance to pick up employees from non-key infected areas around Guangdong to the work sites for free. Accordingto the time spend in quarantine at their hometown, employees had to make supplementary quarantine, so as toensure that such employees could return to work safely and timely.
?Employees from low-risk areas could go to work under the requirements of the factory?Employees from mediun-risk areas should be put into quarantine in factory dormitories or home?Take actions in accordance with the local government polices in high-risk areas
The Company’s factories are spread over in multiple provinces and cities across the country. Facing the differentpandemic situations and policies at different places, the Company successfully carried out production andoperation activities under the guidance of local policies and requirements, and actively worked on resumptionfilling procedures as required by the government. In order to effectively protect the safety of employees, theCompany prepared prevention supplies such as masks, thermometers, protective clothing and disinfectantsthrough external procurement and self-production, providing solid backup support for winning the battle.In addition, we assigned special personnel to maintain close communication with customers and partners on aregular basis to ensure smooth and effective information transmission, so that customers, suppliers and otherpartners can timely understand the progress of resumption in advance to achieve reasonable resource connection.At the same time, the Company has prepared the “Report to Customers and Partners” in both Chinese andEnglish to introduce our efforts in the face of the pandemic to customers and partners, as well as our plans andarrangements for future work, which gained wide recognition from customers and partners, and conveyed ourconfidence and efforts in winning.
FACTORIES PANDEMIC PREVENTION CASE Ⅱ
FACTORIES PANDEMIC PREVENTION CASE Ⅰ
??Part 1: Pandemic prevention implementation and material
storage (2-month dosage of disinfectant)
??Part 3: Large-scale nucleic acid testing
(approximite 1,800 person-time)
??Part 4: COVID-19 Vaccine inoculation
(Batch one: appropriate 3,100 employee)??Part 2: Guide of returning factories on New Year
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Coordinated Operation with Internet Platform during the PandemicUse of platformPurpose of useSpecific operationRemote videointerview tools
RecruitmentIn response to the personnel needs during the pandemic, we
actively replaced traditional face-to-face interview to onlinerecruiting methods. The Company asked the newly recruitedemployees to be quarantined for 14 days before they areeligible to work, and the Company is responsible for thepayment of basic wage during the quarantine.DingTalkHealth InspectionWith the help of the DingTalk platform, we shifted from an
old method where information on the physical condition andreturning of employees is collected by Excel manually to anew method where employees fill in the checking form bythemselves daily and the team leaders are responsible forsupervision and inspection. The change greatly improves thetimeliness and accuracy of information collection. A care teamwill communicate with potential ill individuals by phone andprovide necessary mental health consulting.Cloud ClassNotice on Prevention
and Control
We actively use the internal network platform to carry outpublicity of knowledge related to pandemic prevention andcontrol. Under the guidance of national and local regulations,we quickly clarified the requirements on workers’ returnand resumption as internal documents and publish relevantinstructions to fully cooperate with the national pandemicprevention work.IntranetRemote Office and
Online Learning
In response to the remote working, we provide necessaryemployees with remote access to the intranet and helpedthem to actively adapt to the new way of working. Duringthe break, the Company organized online learning amongEngineering Departments, SR and the entire Company, andencouraged each BG and department to develop course withrespect to their characteristics.
Donation“Disaster is heartless, but people are affectionate; when disasters struck, help came from all sides”, theCompany’s factories in Shenzhen, Dongguan and Jiangmen in Guangdong Province, Dongtai and Suzhou inJiangsu Province, Chengdu in Sichuan Province, and other regions actively cooperated with local governmentdepartments to make donations, and the total donation was RMB1,100,000 to the above regions.
?Factories Donation?Donation?Certificate of Gratitude
GIVE BACK TO SOCIETYIn addition to the internal control and external donations, during the reporting period, the Company also organizedthe “Love Warming the Winter—Winter Clothing Donation”, aiming to send our warmth and care to villagers inunderprivileged areas.A total of 382 pieces ofwinter clothing were collected for the event, including winter outwear, underwear, handwarmers, insulated mugs, etc. Those supplies were all donated to villagers in Niuniuba, Meigu County, DaliangshanYi Autonomous Prefecture, thus that they could stay warm both internally and externally.
?Material Packing?Love Labelling?Donation Status
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PERFORMANCE DATA SUMMARY
Indicators2020
Environmental
Resource ConsumptionElectricity (kWh)641,493,985.75Solar power (kWh)20,222,359.00Natural gas (m
)1,116,614.22Petrol (liters)417,582.73Diesel (liters)1,629,243.03Liquefied petroleum gas (m
)3,333.33Tap water (tonnes)9,315,554.40Greenhouse Gas (tCO
e)Total GHG emissions529,140.71Direct emissions (Scope 1)13,251.25Indirect emissions (Scope 2)515,889.46Air Emissions (tonnes)Nitrogen oxides25.09Sulphur oxides0.26Particulate matter43.65Others
58.90
Wastewater Pollutants (tonnes)COD31.73Ammonia nitrogen4.54Others
8.52
Wastewater Discharge (tonnes)987,130.25Hazardous Waste (tonnes)Sludge4,908.82Waste cutting fluid1,108.75Oil-containing washing wastewater1,491.06Waste organic solvents314.92Waste mineral oil136.98Waste packaging containers/packaging barrels266.09Others
586.47
General Waste (tonnes)Industrial waste
Produced47,363.63Recycled30,102.04Domestic waste
Produced80,724.94Recycled67,677.34
Other emissions include dimethylbenzene, sulfuric acid mist, etc.
Other wastewater includes total phosphorus, oil, suspended solid, etc.
Other hazardous waste includes painting wastewater, waste paint and concentrate, etc.
Social
Total Headcount76,729By GenderMale
46,823Female29,906By FunctionProduction64,866Technical6,510Salesman
Financial and administrative4,619By EducationDoctor
Master
Bachelor4,497Junior college8,437Below junior college
63,437By Age<3039,383
–
36,655>50
Gender Distribution of ManagementMale
Female
Female management ratio
24.37%
Contract SigningLabor Contract Signing Rate100.00%Occupational Safety and HealthProduction safety accidents13Number of work-related fatalities0
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GRI CONTENT INDEXThe content index of this report includes the GRI Sustainability Reporting Standards (GRI Standards) and theChina CSR Reporting Guidelines (CASS-CSR) issued by the Research Centre for CSR of the Chinese Academyof Social Sciences.GRI IndicatorCASS-CSR4.0 Guidelines Section/RemarksGeneral Disclosures 2016Organisational Profiie102-1Name of the organizationP4.1 Organizational
structure and operatinglocation
About us— Introduction102-2Activities, brands, products,
and services
P4.2 Main products,services and brands
About us— Product
Solutions102-3Location of headquartersP4.1 Organizational
structure and operating
location
About us— Location of
Operation102-4Location of operationsP4.1 Organizational
structure and operating
location
About us— Location of
Operation102-5Ownership and legal formP4.1 Organizational
structure and operating
location
About us— Introduction &
Location of Operation102-6Markets servedP4.2 Main products,
services and brands
About us— Product
Solutions102-7Scale of the organizationP4.3 Enterprise size and
influence
About us— Introduction102-8Information on employees
and other workers
S2.1 Employee compositionEmployee Responsibility—
Employee Distribution102-9Supply chainPartners Responsibility—
Supply Chain Management102-10Significant changes to the
organization and its supplychain
P4.4 Major changesin organizational size,structure, ownership orsupply chain during thereporting period
No significant change
102-11Precautionary principle or
approach
Customer Responsibility—
Quality Control102-12External initiatives—102-13Membership of associations—
GRI IndicatorCASS-CSR4.0 Guidelines Section/RemarksGeneral Disclosures 2016Strategy102-14Statement from senior
decision-maker
P2.1 Situation analysisand strategic considerationof corporate socialresponsibility performance
Message from the Chairman
Ethics and Integrity102-16Values, principles,
standards, and norms ofbehavior
G1.1 Corporate mission,vision and values
About us— Values,
Philosophy and VisionGovernance102-18Governance structureP4.1 Organizational
structure and operatinglocation
Economic Responsibility—
Organization and GovernanceStakeholder Engagement102-40List of stakeholder groupsG6.1 Identification of and
responding to pursuits ofstakeholders
Responsibility Management
— Social Responsibility
Management— Respond to
Stakeholders’ Concerns102-41Collective bargaining
agreements
S2.3 Signing rate of laborcontracts
Employee Responsibility—
Employee Distribution102-42Identifying and selecting
stakeholders
G6.1 Identification of andresponding to pursuits ofstakeholders
Responsibility Management
— Social Responsibility
Management102-43Approach to stakeholder
engagement
G6.2 Internal andexternal communicationmechanisms and activitiesof corporate socialresponsibility
Responsibility Management
— Social Responsibility
Management102-44Key topics and concerns
raised
G6.1 Identification of andresponding to pursuits ofstakeholders
Responsibility Management
— Social Responsibility
Management— Materiality
Matrix
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GRI IndicatorCASS-CSR4.0 Guidelines Section/RemarksGeneral Disclosures 2016Reporting Practice102-45Entities included in the
consolidated financialstatements
P1.2 Informationinterpretation
Annual report102-46Defining report content and
topic Boundaries
G2.1 Identification andmanagement of materialissues in corporate socialresponsibility
About the Report
102-47List of material topicsResponsibility Management
— Social Responsibility
Management—Respond to
Stakeholders’Concerns102-48Restatements of informationP1.2 Information
interpretation
No restatement102-49Changes in reportingNo significant change102-50Reporting periodAbout the Report102-51Date of most recent reportFirst report was released
in March 2021102-52Reporting cycleP1.3 Reporting systemAbout the Report102-53Contact point for questions
regarding the report
P1.2 Informationinterpretation
About the Report102-54Claims of reporting in
accordance with the GRIStandards
About the Report102-55GRI content indexA5 Reference indexGRI content index102-56External assuranceP1.1 Quality assurance—
GRI IndicatorCASS-CSR4.0 Guidelines Section/RemarksMaterial Issues205Anti-corruption103Management Approach
–1Explanation of the material
topic and its boundary
Economic Responsibility–
Integrity
–2The management approach
and its components
–3Evaluation of management
approach
–2Communication and training
about anti-corruptionpolicies and procedures
M1.3 Anti-corruptionEconomic Responsibility–
Integrity307Environmental Compliance103Management Approach
–1Explanation of the material
topic and its boundary
Environmental Responsibility
–2The management approach
and its components
–3Evaluation of management
approach
–1Non-compliance with
environmental laws andregulations
Environmentalresponsibility
Environmental Responsibility
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GRI IndicatorCASS-CSR4.0 Guidelines Section/RemarksMaterial Issues401Employment103Management Approach
–1Explanation of the material
topic and its boundary
Employee Responsibility–
Talent Management
–2The management approach
and its components
–3Evaluation of management
approach
–1New employee hires and
employee turnover
S2.20 Employee turnoverrate
Employee Responsibility–
Talent Management–
Talent Acquisition
–2Benefits provided to full-
time employees that are notprovided to temporary orpart-time employees
S2.10 Remuneration andbenefits system
Employee Responsibility–Talent Management–Remuneration and BenefitsS2.11 Occupational healthmanagementS2.13 Employee mentalhealth assistance
–3Parental leaveEmployee Responsibility
–Talent Management–Equality and Harmony414Supplier Social Assessment103Management Approach
–1Explanation of the material
topic and its boundary
Partners Responsibility
–2The management approach
and its components
–3Evaluation of management
approach
–1New suppliers selected
using social standards
M3 Partnership responsibilityPartners Responsibility
–2Negative social impacts
in the supply chain andactions taken
Partners Responsibility–
Supply Chain Management–Supplier Assessment andEngagementInnovation-drivenM2.4 Adhere to innovation-
driven development
Customer Responsibility–
Research and DevelopmentM2.5 R & D investmentM2.6 Number of new patents
GRI IndicatorCASS-CSR4.0 Guidelines Section/RemarksMaterial IssuesOTHER ISSUES
–1Energy consumption within
the organization
E2.5 Total energyconsumption and reductionthroughout the year
Environmental Responsibility–Resources Management–Energy ConsumptionPerformance Data Summary
–4Reduction of energy
consumption
E2.5 Total energyconsumption and reductionthroughout the year
Environmental Responsibility–Resources Management–Energy Consumption
–1Interaction with water as a
shared resource
E2.10 Annual fresh waterconsumption
Environmental Responsibility–Cleaner Production–Wastewater ManagementE2.15 Wastewater dischargeand emission reduction
Performance Data Summary
–2Management of water
discharge related impacts
E2.14 System, measuresor technology to reducewastewater discharge
Environmental Responsibility–Cleaner Production–Wastewater Management
–1Direct (Scope 1) GHG
emissions
Environmental Responsibility–Resource Management–Greenhouse Gas Emissions
–2Energy indirect (scope 2)
GHG emissions
E2.13 Air emissions andemission reduction
Environmental Responsibility–Resource Management–Greenhouse Gas Emissions
–7Nitrogen oxides (NO
x),sulphur oxides (SO
x)and other significant airemissions
Environmental Responsibility–Cleaner Production–Air Emission Management
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Responsibility
CustomerResponsibility
EconomicResponsibility
ResponsibilityManagement
About Us
GRI IndicatorCASS-CSR4.0 Guidelines Section/RemarksMaterial Issues
–2Waste by type and disposal
method
E2.17 Waste discharge andemission reduction
Environmental Responsibility–Cleaner Production–Waste ManagementPerformance Data Summary
–1Occupational health
services
S2.11 Occupational healthmanagement
Employee Responsibility–
Occupational Health andSafety– Health and Safety
Management
–2Hazard identification, risk
assessment and incident
investigation
Employee Responsibility–
Occupational Health andSafety– Health and Safety
Management Performance
–3Hazard identification, risk
assessment and incident
investigation
Employee Responsibility–
Occupational Health andSafety– Health and Safety
Management
–5Workers training on
occupational health and
safety
S3.4 Safety trainingperformance
Employee Responsibility–
Occupational Health andSafety– Health and Safety
Management Performance
–7Prevention and mitigation
of occupational health
and safety impactsdirectly linked by businessrelationships
S2.11 Occupational healthmanagement
Employee Responsibility–
Occupational Health andSafety– Health and Safety
Management
–9Work–related injuriesS3.6 Number of production
safety accidents
Employee Responsibility–
Occupational Health and
Safety– Health and Safety
Management PerformanceS3.7 Number of casualties
–2Incidents of non-compliance
concerning the health and
safety impacts of productsand services
M2.15 Actively responding toconsumer complaints
Customer Responsibility
–Customer Service–
Grievance Handling ProcessM2.16 Complaint resolutionrate
FEEDBACKThank you for reading this 2020 CSR report! We would appreciate your evaluation of this report. Your valuableopinion will be used for our ongoing improvement.1.Which category of stakeholders you belong to?? Staff? Customers? Suppliers and
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__________________2.Do you think this report has fully reflected the social responsibility performance of the Companyin 2020?? Strongly agree? Agree? Disagree? Strongly disagree3.Do you think the information disclosed in this report is accurate?? Extremely accurate? Accurate? Not accurate? Not at all accurate4.What do you think of the framework structure of this report?? Extremely clear? Clear? Unclear? Extremely unclear5.Do you think this report is easy to read?? Extremely easy to
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Corporate SocialResponsibility Report2020
廣東領益智造股份有限公司Stock Code: 002600LINGYI iTECH (GUANGDONG) COMPANY
www.lingyiitech.com