悦安新材(688786):悦安新材关于2023年度环境、社会及公司治理（ESG）报告英文版
原标题:悦安新材:悦安新材关于2023年度环境、社会及公司治理（ESG）报告英文版 achievements. The world’s economy is gradually recovering from major public health emergencies, construction and organized a number of activities to promote the rural revitalization strategy. To learn with the rapid development of digital technology and artificial intelligence, another industrial and more of our history and stimulate their enthusiasm of pursuing grand dreams, we invited local young scientific revolution is around the corner. In this fast-changing circumstance, our company people to visit Beijing, the historic capital of China. We also organized many large-scale activities such continuously seeks for cutting-edge technology to help with our highly-qualified sustainable as "ten thousand enterprises thriving ten thousand villages", and made proud achievements in the development. And we will always be customer-centric, and continue to provide high-quality products "five small" and other activities of provincial employees. for our customers worldwide. We believe that the success of a company is not just about the capability of the individual 2023 is the first year that YueAn officially implements the ESG strategy In 2023, we further entity, but also the result of the joint efforts with the whole society. Therefore, we will further integrated sustainable development into our company strategy, we improved the organizational structure of YueAn ESG Committee and promote relevant implementation plans. Starting from four cooperate with the society to promote sustainable development in powder metallurgy, environmental strategic pillars: green innovation, digital corporate governance, collaborative Value Chain Synergy, protection and other fields. Adhering to the business philosophy of "innovation, cooperation, win-win", and sustainable human development, we set systematic measurements in environmental, social and we are willing to explore the market and expand new business areas. All of our staff will work together corporate governance aspects, embedding ESG concepts deeply into all fields of the company's to deal with various challenges to ensure the steady development of our company, to continuously Report Standards About the Report ? ISO 26000:2010 Guidance on Social Responsibility ? United Nations - Global Reporting Initiative (Global Reporting Initiative, GRI) Reporting YueAn’s 2023 ESG Report (hereinafter referred to as ”this report”) is the first Standards ? United Nations - Sustainable Development Goals (Sustainable Development Goals , Environmental, social and Governance (ESG) report issued by Jiangxi YueAn SDGs) Corporate Action Guide Advanced Materials Co.,Ltd.. Based on the principles of objectivity, standardization, ? United Nations - Climate-Related Financial Disclosures TCFD (Task Force on Climate-transparency, accuracy and comprehensiveness, this report details the company's Related Financial Disclosures) management strategies, practices and performance in the field of environmental, ? Chinese National Standard GB/T 36001-2015 Guidelines for Writing Social Responsibility Reports social, corporate governance and other sustainable development in 2023.? Economic Department of the Chinese Academy of Social Sciences Corporate Social Responsibility Research Center - Guidelines for Writing Corporate Social Responsibility Abbreviations Reports in China (CASS-ESG 5.0) Abbreviations Reference ? Shanghai Stock Exchange - Guidelines for Environmental Information Disclosure of Our Group, we, Listed Companies on the Shanghai Stock Exchange Jiangxi YueAn Advanced Materials Co.,Ltd. YueAn, the company ? Guidance on the Application of Self-Regulatory Rules for Companies Listed on the STAR Market of the Shanghai Stock Exchange No. 3 - Continuous Disclosure of Sci-Time Range Tech Attributes and Related Matters This report covers the period from January 1st, 2023, to December 31st, 2023, showcasing the company's achievements in sustainable development.Confirmation and Approval This report was approved for release by our company's board of directors on April 20, Report Scope 2024. The board of directors of the group commits to supervising the content of the report, ensuring there are no false records or misleading statements, and is responsible for the Unless otherwise stated, the content disclosed in this report covers the same scope as the annual report. truthfulness, accuracy, and completeness of its content. Data Explanation Report Acquisition The electronic version of this report can be viewed and downloaded from Shanghai Unless otherwise stated, all the information and data disclosed in this report are derived Stock Exchange website (http://www.sse.com.cn) or our company's website (http:// from internal documents of Jiangxi YueAn Advanced Materials Co.,Ltd., its branches, www.yueanmetal.com). The Report is published in Chinese, with an English translation. consolidated subsidiaries, and equity-participated subsidiaries, public data from government Should there be any inconsistency between the Chinese and English versions, the Chinese departments, internal collection and statistics of the company.version shall prevail. Product Category YueAn’s 20 Years Carbonyl Iron Powder Series MIM Feeding Series Company Profile Atomized Alloy Powder Wave Absorbing Material “Guided by needs of the market and been aiming at the world’s leading standards, we broke Series Series through technical barries step by step and comes to be one of the industrial leading companies ever since our establishment.” Soft Magnetic Powder SeriesCompany History 2021 2019 Listed on the Science and 2012 Technology Innovation Board of The company was approved 2009 the SSE (Shanghai Stock as one of the first batch of The company has been Exchange), stock code: 688786 2004 'Specialized, Fined, Peculiar, recognized as a 'National The company's micron-level and New Small Giant High-tech Enterprise' carbonyl iron powder Enterprises' by MIIT (Ministry Jiangxi YueAn Superfine Metal industrialization project was of Industry and Information Co., Ltd. was established. recognized as ’2009 Jiangxi Technology) Province Major High-tech Industry Project‘ 2023 2020 2014 The company's annual production 2010 of 6000 tons of carbon-based iron The company was approved 2008 powder and other series of products as 'Jiangxi Province Overseas The company was approved has reached the predetermined Expertise Workstation' as a 'Jiangxi Province The company became a member usable state. After the project High-pressure cyclic carbonyl Specialized, Fined, Peculiar of the European Powder passes the safety acceptance iron powder production and Innovative SME' Metallurgy Association approval and fully reaches technology was awarded the production, it will enable this series 'Technology Innovation Fund for of products to have an annual Small and Medium-sized production capacity of tens of Enterprises' by the Ministry of thousands of tons. Science and Technology 2004 2008 2012 2016 2020 2024Innovate with Technology Adhering to the People-Oriented PrincipleLead New Material Technology Becoming the Leader for New Materials Pursuing keen innovation and green developmentDrive a Sustainable Future Support sustainable development Achieve common prosperity for both the enterprise and society Stakeholder Communication Assessment of Material Issue We are committed to understanding and valuing the opinions of all stakeholders. We In 2023, we collected feedback and expectations from the company's stakeholders have identified seven key stakeholders and established open channels of communication through surveys, visits, and other forms. Combined with the company's sustainable with them. Through diverse forms of interaction, we continuously listen and respond to their development goals, organization and operation, and economic benefit assessment, we concerns while working together with all parties to deepen the advancement of ESG issues in objectively assessed the 26 issues collected and clarified the strategic significance of the practice. In addition, we actively cooperate with all parties to jointly promote the practical issues for the company's long-term development, and formed the following importance matrix implementation of ESG issues and to ensure the depth and effectiveness of these activities. and ranking. Substantive issues identification methods Key Issues of Concern Communication Channels Stakeholders Employee Satisfaction Surveys, etc. improve risk management and operational capabilities. Corporate Governance, Business Ethics and Compliance, Risk Management and Audit, Energy Management, Water Resource issues under the three categories of "environment", "society" and Planning Conservation, Chemical Safety, Ecological "corporate governance". Harmony Corporate governance, business ethics and questionnaire was designed, relevant parties were invited to participate in intellectual property protection, tax safety Observation and assessing the importance of the issues, and open-ended questions were answered through interviews and other forms to elaborate their views and Clean technology research and Research development, innovative service Product exhibitions, exchange visits, customer expectations on the company's ESG work. A total of 254 valid Customers and management, product quality management, research, technical seminars, customer questionnaires were collected. Consumers product lifecycle management, information satisfaction surveys, etc. security Evaluation assessment results, discuss with management and identify report Exhibitions, Industry Training, etc. disclosure priorities. Ecological Harmony, Environmental Press Releases, Social Media Communication, Media Protection Publicity and Education, Local Industry Exhibitions, Industry Seminars, etc. Community Relations From the two dimensions of "the importance of economic, environmental Local Community Relations, Environmental Safety, Ecological Harmony Issue Importance Assessment (Continued) Green Innovation Material Issue Matrix king term success of the enterprise. The significance of impacts on the economy, environment, and society 6. Business Ethics and Compliance 1. Transparency of Information 4. Corporate Governance 7. Economic Performance “Customer first, collaborative development”. We meet the needs of our customers with Disclosure high-quality products, earn their trust, and effectively control costs through meticulous supply 2. Information Security 5. ESG Management 8. Risk Management and Audit chain management. We establish good cooperative relationships with upstream and downstream industry partners, jointly promoting the efficient operation and sustainable Society 12. Employee Care 16. Product Quality Management development of the entire value chain.11. Industrial Cooperation Development 15. Diversity and Equality“People-oriented, knowledge revitalization”. We firmly believe in the power of knowledge and education as the key driving force for individual growth, national rejuvenation, and the Environment advancement of human society. Providing equal educational opportunities for everyone, 24. Water Resource Management 21. Product Lifecycle Management making knowledge an important tool for promoting social equity, and cultivating talents who 19. Climate Change 22. Energy Management 25. Environmental Managementcan meet future challenges are the cornerstones for promoting our sustainable development 23. Chemical Product Safety 26. Ecological Harmony ESG Strategy As a pioneer in the domestic carbonyl iron powder industry, we are driven by market demand and guided by technological innovation and research and development. With a robust quality inspection system, we strive for comprehensive enhancements across the procurement, production, and sales industry chain to maintain an absolute competitive advantage in specialized applications. In 2023, we continuously updated our existing technology to ensure real-time integration of market demands and customer feedback into our value chain while consistently improving our R&D capabilities and quality systems to achieve a value-added closed loop within the industrial value chain. We actively respond to national policies and establish a dedicated task force to mitigate R&D Market carbon emissions. We adopt a preventive-first and comprehensive prevention and control Market demand Development strategy Sales management and process environmental protection strategy, implementing comprehensive management from industrial Design review , confirmation Sales plan , business development, pricing, sampling wastewater, waste gas to waste residue, with an emphasis on maintaining environmental Funding plan protection facilities. In pursuit of this goal, we have implemented an environmental target Product development Product delivery and customer service follow-up responsibility system, with the environmental protection department taking the lead in overseeing the company's environmental protection efforts. Regular training sessions on Technical inspection , verification , and expansion Customer satisfaction and feedback environmental protection technology are conducted to enhance both production areas and surrounding environments. We strictly adheres to relevant regulations for ensuring the safe management of hazardous materials. We firmly believe that every unit and individual has the Procurement Production Procurement control system right to work and live in a clean environment while also assuming the responsibility of Human protecting it as part of our commitment towards achieving environmental social responsibility. Machine Environment Selection and management of suppliers During the reporting period, our company implemented strategies to reduce Procurement quality inspection , acceptance , payment organizational carbon emissions by focusing on two key areas: upgrading outdated energy Material Measurement equipment and promoting energy-saving practices among employees. Additionally, Service department feedback and returns Method environmental protection personnel were assigned to monitor and record real-time carbon emissions. We also engaged in discussions with the personnel department to incorporate Technological iteration and updatesHuman Resource support ESG Management and Planning “Building a green factory is our unwavering goal. We draw up plans and systematically progress towards waste resource utilization, clean production, low-carbon energy, intensive land use, and non-toxic raw materials.” Carbon Management Rules Carbon Management System E A T Organization and Organization and ? Organizational control, ? Gradually learn and understand ? Gradually establish a carbon Environment Environment management and product design the legality and compliance of Implementation emission performance evaluation Planning processes related to carbon system carbon trading emissions, procurement processes ? Participate in diversified carbon ? Establish , improve carbon asset ? Organizational carbon emission risk control trading discussions and learning Customer data accounting Requirements N S Disposal Inspection Products and Customer Production ? Form carbon neutrality goals, Satisfaction indicators ? Actively research carbon credit ? Based on carbon footprint data, evaluation content dock with international and domestic trade rules Our Goals Greenhouse Gas Emission Reduction Energy Consumption Reduction Water Conservation Targets Waste Management Goals Targets Standards With 2023 as the base With 2023 as the base With 2023 as the base Commitment to "Zero year, to reduce carbon year, to reduce energy year, to reduce water achieve hazardous 30% 30% 40% Landfill" emission intensity in consumption intensity in use intensity in 2030 by waste production in 2030 by 2030 by 2030 by ESG Manager ESG System The ESG Manager is responsible for formulating environmental, social and governance strategic planning and objectives, as well as establishing governance structures and goal setting, coordinating and promoting the implementation of projects. For external publicity content, the ESG Manager not “According to the ESG strategic system, an organizational structure with decision-making, only controls the quality, consistency, and continuity of disclosed information, but also guides and execution, and coordination has been formed to effectively support the implementation of promotes the establishment of the company with ESG external experts and alliances. YueAn ESG strategy.” ESG External Experts and Alliances During the reporting period, we gradually established an ESG strategic system, designed Led by the ESG manager, responsible for developing the management process of ESG the operating model according to the actual situation of the company, including but not limited information disclosure, disseminating ESG-related information on the official website and official to the existing organizational structure, company size, strategic needs, etc., and conducted a WeChat public account, as well as engaging in communication and exchange of ESG information with trial operation of this organizational structure. external stakeholders. The Office of the Board of Directors is specifically accountable for organizing Board of Directors and coordinating communication and engagement with external capital parties, research institutions, rating agencies, and media outlets. Additionally, it facilitates relevant departments and personnel Strategy Committee within the company to establish an ESG alliance with external entities to promote the company's value ESG Strategy Committee system related to environmental, social, and governance aspects. ESG Executive Manager ESG External Experts and ESG System Management ESG Operating System Alliances and Operation Led by the ESG manager, the company's relevant departments and personnel interpret global ESG-related standards and updates, internally promote and train on ESG development content; drive Sustainable Talent Green Scientific Value Chain Collaborative Digital Corporate Development Innovation Development Governance the implementation of the ESG system, identify risks and continuous improvement; organize the output of ESG reports. Board of Directors Industrial Strategic Planning Ningxia YueAn New Material Technology Co., Ltd. “Waste resource utilization is our key strategy. Jiangxi Yueli Technology Co., Ltd. and Ningxia YueAn New Material Technology Co., Ltd. are important milestones for YueAn, and N i n g x i a Y u e A n N e w M a t e r i a l Technology Co., Ltd., a wholly-owned they represent our unwavering path of green development.” subsidiary established this year , mainly uses Jiangxi Yueli Technology Co., Ltd. ilmenite instead of sponge iron as raw materials for the production of carbonyl iron With the first batch of power batteries put into the market ushered in the "tide of powder, while utilizing technology extension retirement", the treatment of lithium batteries has become the focus of attention of the for the refining of valuable metals. industry and environmental protection. Jiangxi Yue Lithium Technology Co., Ltd. is our newly established equity company in 2023. It develops a highly selective one-step extraction of During the reporting period, this company made significant breakthroughs in lithium technology, aiming to solve the core pain points such as low recovery rate, high cost the process of producing carbonyl iron and environmental pressure in the recycling process of lithium batteries, and contribute to the powder by-product high titanium slag with sustainable development of the economy and the harmonious coexistence of the ilmenite as raw materials, completed the industrialization test, the product has been environment.In our operations and management, green practices are integrated throughout. We start Green Innovation with green R&D, striving to reduce resource consumption during the product design phase, and are committed to using environmentally friendly materials. In green quality inspection, we ensure the minimal environmental impact of our products during production through strict ? Green Quality ? Green R&D environmental standards. Green processes guide us on how to efficiently use resources, Inspection reduce waste, and implement clean and sustainable methods during production. Green water and energy strategies aim to minimize the use of water and energy to the greatest extent, and promote the use of renewable energy and recycling systems. We also place equal ? Green Process ? Green Gas Use importance on green gas usage, reducing greenhouse gas emissions through optimizing combustion technology and using low-carbon fuels. Green waste disposal and noise reduction strategies ensure that waste is properly treated, noise pollution is reduced, and the CO 2Our green strategy is not only reflected in production and operations, but is also a comprehensive corporate culture and spirit. We actively build green factories and green ecology, not only limited to our own sustainable development, but also to influence and ? Green Noise ? Green Energy Reduction encourage our partners, customers, and communities to participate, together creating a greener future. Through these comprehensive measures, we believe we can contribute to the sustainable survival of the earth while continuously improving corporate benefits.During the reporting period, the company applied for 5 domestic invention patents, obtained Green R&D authorization for 1 PCT US invention patent, received authorization for 2 domestic invention patents, and accumulated a total of 34 patent authorizations.university-research cooperation. In 2023, the company will enhance the big data application skills of the research and development Case 1 team, as well as refine the management of research and development project execution processes to High Pressure Resistant High Impedance Iron Silicon Chromium Magnetic Powder Core and Its optimize efficiency. Simultaneously, it will further strengthen ESG integration and establish Preparation Method assessment mechanisms centered around energy conservation and emission reduction. Regarding This patent enables the iron silicon chromium magnetic powder to have higher magnetic permeability, DC superposition characteristics, and rust prevention effects, meeting the development requirements of one-piece specific technologies, advanced tools like computer vision will be employed to dynamically align molding inductors for miniaturization, high magnetic permeability, and high power. At the same time, on the product application end, it can reduce the comprehensive energy consumption of the equipment by 2%-15% . research and development directions with customer needs and feedback. Additionally, rigorous monitoring of production processes and product quality shall be maintained. Furthermore, a mechanism for sharing project research and development data with end customers is being gradually Case 2 established to ensure prompt response to customization requirements.A Carbonylation Method for Processing Sand Ilmenite to Produce Carbonyl Iron Powder and Titanium Slag Using sand ilmenite as raw material, carbonyl iron powder and titanium slag are produced simultaneously, and industrial-scale mass production is achieved. This method improves the conditions of the reaction, eliminating the R&D system need for a catalyst to achieve high reaction efficiency, and solves the problem of powder material clogging equipment and pipelines during the carbonylation synthesis process, addressing the bottleneck restricting Production and Research and Customer Government Marketing Education industrial production. Base Agencies Department Base Research and R&D Projects Project Development and R&D Services Delivery Products Conclusions Case 3 R&D personnel Organization R&D Center in various al Structure A method for preparing carbon nanotubes from iron pentacarbonyl fluid as raw material and its departments preparation process The method of preparing CNTs using iron pentacarbonyl fluid as raw material makes our carbon nanotube Independent Collaborative Technical R&D Education R&D R&D Capability preparation process richer, with a larger number of carbon nanotubes, uniformly distributed pores, and consistent tube diameters, thereby achieving the effect of improving the quality of carbon nanotubes. Compared with the conventional carbon nanotube production method, this method directly uses iron pentacarbonyl as the raw material, Technical R&D Capability AI and Big Data Capability Project Management Capability Continuous Delivery Capability Security and Control Capability Energy saving and emission reduction capabilities Green R&D (Continued) Collection and Conception and Execution and Testing and Pilot and Mass Process Goals and Planning Summary Design Implementation Improvement Production ? Collect and summarize ? Conduct market trend ? E x e c u t e t h e p r o j e c t ? Conduct feasibility analysis ? Conduct periodic checks ? Based on the pilot test national ESG guidelines , research on the project, according to the project on selected ESG R&D and improvements on report , feasibility analysis policies, ensuring the determine ESG 's various plan , adjust resources and projects , quantify ESG projects based on ESG ESG standards to conduct company's development is influences; allocation according to the impacts; project indicators ; product pilot , establish pilot in step with the nation; project progress; project quality indicators, ? Determine the overall ? Allocate resources and ? Carry out final acceptance analyze and plan for mass ? Collect and understand the direction and scope of the ? Supervise and adjust the budget for ESG projects, of the project based on production of the product; feedback and expectations R&D project; project according to the real- ensuring the ESG return on project indicators , issue Step o f v a r i o u s b u s i n e s s time feedback from the investment; pilot test reports and ? Plan and implement mass ? Prioritize R&D projects departments , deeply marketing department and implementation suggestions. production according to pilot based on their importance ? Define indicators for ESG understand the green R&D the quality inspection test results.and feasibility. projects. needs of each department. department ; ? Promote project progress according to ESG research and development indicators. We have incorporated the ESG concept into our R&D system and processes, established ESG-related indicators at each stage of the R&D projects, and implemented rigorous screening and approval procedures for 30 projects. Additionally, we have conducted extensive research in various areas such as atomized powder alloy materials, wave absorbing materials, additive manufacturing materials, and low-cost carbonylation technology, resulting in significant research outcomes. In terms of high-value special carbonyl metal powder materials application direction, we are intensifying our efforts to explore the application potential of special metal powders by increasing investments in fundamental studies on carbonyl metals and soft magnetic powders. Furthermore, we are actively serving the supporting supply chain for specialized applications scenarios involving metal powders like 3D printing additive manufacturing, intelligent terminals, electromagnetic shielding systems, magneorheological fluids as well as microwave absorption and food/drug additives to meet emerging demands from high-end markets. x Through strict control over design rules, manufacturing processes, production Green R&D (Continued) flows, and testing inspections, we enhance the quality of our products, improve their interference resistance, and maintain high levels of yield and stability in production. At Quality inspection project the same time, the company's strict quality control system ensures the consistency "We firmly establish the 'zero defect' and reliability of our products, with performance quality reaching the top level Background domestically and internationally, possessing strong market competitiveness. During the reporting period, our products made from recycled steel have been certified by The performance of the hinge directly affects the folding gap, crease, and lifespan of the authoritative international certification bodies with a recycled content >80%. currently popular folding screen mobile phones. To make the phone lighter and thinner, the material used for the hinge must have ultra-high strength while being compatible with good toughness, to ensure that the phone screen does not deform or break during the repeated ? In May 2006, passed “ISO9001:2015 Quality Management System Certification”; folding process. ? In June 2018, passed "IATF16949:2016 Automotive Quality Management System Certification"; Project Initiation After conducting a comprehensive analysis of the customer's requirements, we have ? In September 2023, passed the "ISO14021 Recycling System Certification". clarified the product expectations and specifications. The research and development team promptly determined the initial process route for manufacturing high-strength steel raw materials. By leveraging our technical expertise in metal injection molding, we have defined a quality plan, control objectives, and improvement measures for the research and development Management Management and Planning System Green Quality Control Customer Operations Requirements Project Initiation Customer Feedback Collection “We firmly establish a ’zero defect’ consciousness, adopting a three-step quality Assistance Support System management approach: prevention before the fact, control during the process, and In compliance with the Product Quality Law of the People's Republic of China, we establish well-verification after the fact, playing a role in green inspection and supervision throughout the defined operating standards and procedures aligned with our management objectives to support the entire process, comprehensively ensuring product quality.” functioning of our quality inspection system. A dedicated team of quality inspectors is assigned to oversee the core processes in accordance with these objectives, optimizing production processes to Customers enhance efficiency and product quality, as well as other critical quality capabilities. We develop comprehensive standard operating procedures and meticulous guidelines to ensure consistency and accuracy in all tasks performed. Detailed instructions are provided for specific assignments, enabling every employee to operate uniformly based on standardized protocols and quality guidelines. These standard operating procedures outline specific methods and steps for task Quality Inspection execution, thereby reducing operational discrepancies, improving work efficiency, ensuring process Center standardization and replicability – all crucial factors in maintaining effective quality control measures while adhering to regulatory compliance requirements. Technology Production Following our established quality management system, we exercise control over the entire product lifecycle encompassing design, production, sales, and management activities. We implement Factory Product Inspection product sampling inspections throughout this process while strictly adhering to the findings outlined in the quality inspection reports during storage and shipment operations. Simultaneously, our company Finished Product Warehouse Inspection has established norms for handling customer complaints promptly by receiving feedback from customers in a timely manner. This ensures that any grievances or suggestions raised by customers Process Inspection and Supervision are appropriately addressed – minimizing or eliminating any adverse impact caused by defects or potential hazards on their experience – effectively safeguarding their interests. Raw Material Procurement Inspection Communicate in detail with customers, understand their requirements, Preventive and clarify plans including personnel, equipment, environment, Measures inspection, and raw material supply. We consistently prioritize customer satisfaction, strive for products with impeccable quality, and unfailingly meet all work process requirements. Our primary focus is on Control key points of quality during the production process, set quality Control During the control points at critical parts or weak links, and carry out quality tracking Process prevention rather than post-inspection, as we establish quality control points at key steps in inspections simultaneously. the process and address any potential weaknesses or vulnerabilities. Additionally, we conduct thorough quality follow-up checks to ensure that each step adheres to the highest Post-Event Standardized operating standards, strict quality control to prevent the Verification flow of defective products out of the company, aiming for zero defects.Green Factory “Based in the field of micro-nano metal powder materials, we are focusing on the development direction of the world's cutting-edge new green materials, emphasizing environmental impact and resource efficiency, and building a manufacturing system centered on green.” Raw Material Iron Carbonyl Synthesis Iron Carbonyl Decomposition Selection Sponge Iron, Rare Carbon Monoxide Synthesis Storage Evaporation Decomposition Earth Slag Iron Gas Cycle First ProcessPrimary Iron Carbonyl Powder Post-treatment of Iron Carbonyl Powder Grinding Classification Annealing Coating Second ProcessIron Carbonyl Powder Finished Product By implementing a clean production management system, we aim to enhance resource utilization efficiency and promote clean production to reduce and avoid the generation of pollutants, protect the environment, ensure human health, and promote the sustainable development of the economy and society. We emphasize reducing pollution at the source, using clean energy and materials, improving production technology and management, comprehensively raising employees' awareness of clean production, and encouraging full participation station. The circulating water station's sewage and the steam generator discharges clean saline Green Water Use wastewater, which is directly discharged to the park for treatment and reuse. The emergency water (including fire drainage) in the new installation area is collected in the emergency pool, then connected to the production sewage network, and pre-treated together with the production sewage. "Water is one of the most precious resources for humanity, 'separation of rainwater and sewage, clear and polluted water' is the principle of our designed drainage system, the utilization of water resources During the reporting period, approximately 80% of forms a relatively closed loop from production to production" our water use met recycling requirements. Water supply Rainwater and clean sewage The factory is equipped with a 2000 cubic meter wastewater treatment pond, with one in use and one as a backup during normal production. The wastewater treatment involves the addition of Production wastewater discharge flocculants and ammonia removers. After chemical flocculation reaction and sedimentation treatment, Exhaust gas scrubbing the water meets standards and is recycled with a small amount discharged. Since 2017, the wastewater Wastewater Production Drainage company's wastewater discharge outlet has been connected to the industrial park's sewage treatment treatment Ground cleaning water plant, and an online monitoring station has been established. Online monitoring equipment has been Circulating water station installed and connected to the county, city, provincial, and national environmental protection platforms, sewage allowing real-time data upload. The monitoring equipment includes PH meters, data acquisition Production wastewater discharge instruments, ammonia nitrogen analyzers, and COD analyzers. On-site, there are manual PH meters, manual ammonia nitrogen analyzers, and manual COD analyzers, ensuring strict real-time monitoring Accidental discharge and control of wastewater discharge. Domestic wastewater dischargeGreen Gas Green Energy “We actively adopt green photovoltaic power generation and, through an efficient electricity “We are committed to green and environmentally friendly production through the efficient management system of peak, flat, valley, and sharp usage, gradually achieve comprehensive treatment of molten exhaust gases and atomized dust, ensuring green production is our firm green environmental protection goals in energy use.” commitment to atmospheric protection.“ We are committed to green and environmentally friendly production, and the fine management of During the reporting period, we actively explored and expanded the utilization of molten exhaust gases and atomized dust is particularly important. These gases, mainly composed of renewable energy by successfully implementing two photovoltaic projects in collaboration metal dust, are efficiently captured through advanced hood technology and treated with high- with Beijing ZidongHua Energy Technology Co., LTD. These power generation initiatives performance bag filters, ensuring their safe and harmless discharge into the atmosphere. have been fully operational since 2023. One of the rooftop BIPV photovoltaic power generation projects adopts a "self-use, surplus electricity online" model to ensure efficient Bag dust removal equipment uses its fine woven or felted filter cloth as a filtering medium, cleverly operation of the roof power station. capturing the dust-laden gas flowing through it. In this process, larger and heavier dust particles are Simultaneously, we implemented a comprehensive range of measures for managing drawn by gravity to settle in the dust hopper, while finer dust particles are effectively intercepted during electricity consumption during peak, flat, and valley periods, strictly regulating scheduling and their journey through the filter cloth. This scientific and meticulous processing procedure ensures that control to optimize energy efficiency. In partnership with Beijing ZiDongHua Energy our production process has the minimal impact on the environment, demonstrating our profound Technology Co., LTD., we have developed a scientific and rational power consumption understanding of and firm commitment to environmental protection. strategy that incorporates effective energy-saving measures during peak demand periods while allowing for reasonable increases in power consumption during low-demand periods to achieve maximum cost efficiency.improve economic benefits, and simultaneously promote further growth in industrial value.Green Waste Management Green Office “We pay close attention to details, value and seize every possibility of carbon reduction, “We adopt environmentally friendly methods to reduce, treat, and recycle waste, supporting deepen environmental awareness, and form a consistent carbon reduction consensus the circular economy and alleviating environmental burden.” throughout the company.” By purchasing 4 new energy vehicles, we reduced the use of 16,352 liters of gasoline uring the reporting period, The solid waste produced mainly includes iron carbonyl synthesis reactor-generated iron thus reducing emissions by 39.25 tons of carbon dioxide equivalent. oxide slag and the dewatered cakes and sludge from the production wastewater pretreatment station. We adopt a 3R (Reduce, Reuse, Recycle) strategy to classify waste and recycle Phasing out diesel boilers and replacing them with electric heating boilers resulted in a reduction of 6.712 tons of diesel usage during the reporting period, leading to an overall decrease of 20.14 tons of carbon dioxide equivalent reusable waste, such as waste iron slag, continuously making breakthroughs in processes to emissions. achieve Zero Waste (Zero Waste). The optimization of air conditioner operations and replacement of some first-level low-energy air conditioners The department procured 5 electric forklifts as a gradual replacement for fuel-powered forklifts, along with electric fire trucks to reduce diesel consumption by 1.68 tons, resulting in emission reductions of approximately 5.05 tons Reduce Reuse Recycle of carbon dioxide equivalent during the reporting period. Energy-efficient light bulbs were installed across departments, reducing electricity consumption by 1,550 KWH and emissions by 1.55 tonnes of carbon dioxide equivalent during the reporting period.Green Noise Reduction The temperature settings for air conditioning systems across all departments were adjusted to maintain “We use environmentally friendly technologies and methods to reduce noise pollution and temperatures at 26 degrees celsius in summer and 19 degrees celsius in winter, resulting in a reduction in electricity usage by 1150 degrees and emission reductions totaling 1.15 tons of carbon dioxide equivalent. protect the auditory environment.” We implemented employee transportation buses within relevant areas to reduce gasoline usage by approximately The company's noise sources mainly come from machinery and aerodynamics, etc. The 1045 liters and lower emissions by 2.51 tons of carbon dioxide equivalent during the reporting period. company reduces the impact of noise on the surrounding environment by optimizing layout settings, optimizing process parameters, choosing equipment with lower noise, and Employees are encouraged to switch to new energy vehicles and motorcycles as part of carbon emission reduction efforts. constructing soundproof rooms or soundproof walls. Solar street lights are gradually being installed as replacements for the factory's conventional streetlights. ? Governance Structure ? Digitalization, Informatization, AutomationDuring the reporting period, we successfully implemented phase I of our new Digital Corporate Governance Manufacturing Execution System (MES) in our pelletizing and magnetic materials workshops, ensuring that the system is perfectly integrated into the company's production processes. “We believe that a strategy to enhance governance effectiveness and efficiency through the This strategic investment in technology represents a major transition from traditional digital comprehensive use of modern information technology not only involves technological recording and control to full information management. transformation but also entails a deep shift in corporate culture and business philosophy.” With the support of real-time data from the MES system, we make faster and more Digital corporate governance is one of the important strategies to improve corporate accurate decisions, optimize process flows, improve production efficiency, reduce waste, and governance structure by using modern information technology. Involving the use of ultimately enhance product quality and customer satisfaction. Furthermore, digital technologies such as data analytics, cloud computing, and artificial intelligence to optimize transformation not only strengthens our control over complex manufacturing environments decision-making processes can enhance decision-making transparency and improve risk but also provides our employees with more opportunities for learning and growth, infusing our management capabilities. Through digital transformation, companies will be more flexible in corporate culture with a spirit open to technological innovation. The successful deployment of responding to market changes, more accurately grasp business opportunities and risks, and MES will provide us with a competitive advantage in the constantly evolving market more closely communicate and collaborate with stakeholders. Digital corporate governance is environment, leading us into a new era of efficient, transparent, and intelligent manufacturing. not only the application of technology, but also the renewal of corporate culture and business philosophy, starting with the management, we gradually deepen the understanding of the 「 value and potential of digital, and will gradually promote this concept in the company. ERP : Financial MES : Manufacturing Execution ERP : Procurement Amoeba : Human Management Management Resource Management Production Planning Warehouse Account Processing and Process Supplier Price Management Management OA : Administrative BOM: Material Management Funds Processing Quality Monitoring Management Purchase Quantity and Quality Archive Management , Approval, Logistics Storage Cost Management Material Data ord SystemTax Governance Governance System To improve tax governance, we have established a comprehensive tax governance framework, strengthened tax compliance, implemented effective tax planning, and enhanced transparency and “A complete and effective governance system is indispensable for ensuring responsible communication. At the same time, we have raised the tax awareness of our internal staff and utilized decision-making, compliance with laws, risk control, and sustainable development.”scientific and systematic technology to improve the efficiency of tax management. We ensure compliance with relevant tax laws and regulations, optimize tax burdens, fulfill tax obligations with Shareholders' Meeting Board of Directors Supervisory Board Strategy Committee 1 （未完）  |