Jinzhou Industrial 2019 Corporate Social Responsibility Report

Tangshan Yutian Jinzhou Industrial Co., Ltd.

2019 Corporate Social Responsibility Report

Tangshan Yutian Jinzhou Industrial Co., Ltd. (hereinafter referred to as “Jinzhou Industrial”) is located in the Industrial Cluster Zone of Guojiatun Town, Yutian County, Hebei Province, covering an area of 500 mu. The company currently employs 725 staff and is a key enterprise in Yutian County. Situated adjacent to Provincial Highway S264 as well as the Beijing–Harbin and Beijing–Qinhuangdao Expressways, it enjoys a distinct locational advantage and convenient transportation access. Established in May 2008 with a registered capital of RMB 75 million and a total investment of RMB 1 billion, the company is a short-process integrated steel enterprise that integrates electric arc furnace operations, refining, continuous casting, and rolling.

Since its establishment, Jinzhou Industrial has consistently adhered to a science-based development philosophy. Through precise strategic positioning, standardized management, and efficient operational mechanisms, the company has steadily expanded in scale and strengthened its overall capabilities, thereby establishing a strong corporate image built on outstanding business performance. The company fosters collaborative relationships with customers and other business partners based on long-term mutual interests. We cultivate trust and support the shared growth of our employees and the enterprise. Upholding the mission of “creating wealth, benefiting employees, and giving back to society,” the company demonstrates a high sense of social responsibility by balancing short-term and long-term interests, aligning its own development with that of society, and pursuing coordinated progress. While enhancing economic efficiency and safeguarding shareholder rights, we remain committed to fulfilling our social responsibilities, strictly complying with laws and regulations, continuously expanding opportunities for employee development, actively engaging in public welfare initiatives, comprehensively improving product quality and service standards, and vigorously promoting energy conservation, emission reduction, and environmental protection. In doing so, we have achieved comprehensive, balanced, and sustainable development among people, enterprises, nature, and society.

In 2019, our company’s steelmaking plant was recognized by the Ministry of Human Resources and Social Security and the China Iron and Steel Association as a “National Advanced Collective in the Iron and Steel Industry,” was named one of the “Top 100 Private Manufacturing Enterprises in Hebei Province” by the Hebei Provincial Federation of Industry and Commerce, and was designated as a “High-Tech Enterprise” by the Hebei Provincial Government.

The company’s efforts in fulfilling its social responsibility for the year 2019 are as follows:

I. The rate of social contribution continues to rise

In 2019, amid unprecedented environmental pressures and a rare market opportunity, Jinzhou Industrial steadfastly adhered to the principle of maximizing shareholder value and employee well-being, leveraged deepened reform as its driving force, and aligned its operations with the overarching strategy of “innovation-driven development, quality leadership, quality improvement and efficiency enhancement, and transformation and upgrading.” The company implemented a management philosophy characterized by precision, meticulousness, rigor, and pragmatism, focusing on key priorities, addressing weaknesses, and strengthening areas of weakness. Through overcoming numerous challenges and achieving multiple breakthroughs, coupled with technological upgrades, the company’s competitive edge continued to grow. Upholding the corporate mission of “drawing from society and giving back to society” and guided by the corporate vision of “building core competitiveness and achieving sustainable development,” Jinzhou Industrial, under the employee training framework of “one central focus, two fundamental principles, and ten guiding principles,” made informed decisions and practiced efficient management, thereby fostering the enterprise’s sustainable growth.

In 2019, the company invested nearly RMB 100 million in the renovation and construction of new environmental protection and safety facilities, enabling our emissions to meet ultra-low emission standards and successfully passing the corresponding acceptance inspection. This contribution aligns with President Xi’s vision that “lucid waters and lush mountains are invaluable assets.” Through technological upgrading and transformation, the company achieved an output value of RMB 4.86 billion in 2019 and paid over RMB 88 million in taxes, while creating more than 700 local jobs.

II. People-Oriented, Harmonious Development

The company adheres to the talent-management principles of “cultivating virtue to carry great responsibilities” and “unity of knowledge and action,” placing unwavering emphasis on nurturing, attracting, and retaining talent, and regarding employees as the enterprise’s most valuable asset. It prioritizes the all-round development of its workforce by addressing safety and health, career advancement, compensation and benefits, professional training, and improvements to work and living environments, continuously enhancing employees’ working and living conditions to ensure that the fruits of corporate growth are shared equitably across the entire workforce. In 2019, a newly constructed 2,870-square-meter employee apartment building was put into use, equipped with underfloor heating, central air conditioning, bathrooms, and other amenities. To safeguard employees’ rights and boost their motivation, the company rigorously implements the Labor Contract Law, achieving a 100% labor-contract-signing rate; it also provides six types of insurance—including pension and medical coverage—for all employees, effectively protecting their legitimate rights and interests. The company strictly complies with labor laws and regulations, places great emphasis on employees’ physical well-being, and actively participates in the social-security system. In 2019, extensive reforms were undertaken in areas such as cadre performance appraisal, salary distribution, and human-resource evaluation, effectively stimulating intrinsic motivation across all units. The company has embedded a people-oriented philosophy throughout its management practices, corporate culture, and organizational development, while simultaneously preventing and mitigating talent attrition, recruiting new talent to inject fresh energy, and thereby building a sustainable, enduring enterprise.

III. Strengthen Safety Management and Build a Safe Production-Oriented Enterprise

June is National Safety Production Month. In accordance with the requirements of company leadership and in compliance with national safety directives and the company’s internal safety guidelines, we conducted safety training for on-site workers and team leaders, covering relevant safety documents and knowledge. We also organized emergency response and accident rescue drills and other safety education and training activities to enhance employees’ awareness of safe production and truly put the principle of “safety first, development with safety” into practice.

The company has implemented risk-based classification and control as well as hazard identification and remediation, and has been designated by the Tangshan Municipal Emergency Management Bureau as a pilot enterprise for the “dual-control” safety management system. It has invested more than RMB 300,000 to enter into an agreement with Beijing Shouxin to establish a “dual-control” platform. During this period, the company organized training and education on risk identification, classification and control, and hazard identification and remediation for all relevant personnel. Following the training, appropriate risk identification and assessment methods were employed to determine risk levels and corresponding control measures; hazard inspections were conducted to classify hazards by severity; remediation plans were developed and implemented in accordance with these plans, thereby achieving comprehensive, all-staff, and full-process risk identification, classification and control, as well as hazard identification and remediation. The company has established risk-control information ledgers and hazard-identification-and-remediation ledgers at the corporate, workshop, and job-levels, and, in accordance with the accident-hazard inspection manual, conducts monthly inspections at the corporate level, weekly inspections at the workshop level, and daily inspections at the job level. In addition, the company has put in place spatial distribution maps for enterprise risk control, workshop-specific risk-control distribution maps, and job-specific risk-warning cards, along with other relevant signage and public notice boards.

To safeguard employees’ rights and interests and boost their motivation, the company strictly adheres to labor laws and regulations, places great emphasis on employees’ physical health, and has entered into an occupational health examination agreement with Tangshan Hongci Hospital. The company implements a comprehensive system of pre-employment, in-job, and post-employment medical examinations on both a regular and ad hoc basis. In 2019, extensive improvements were also made in cadre performance appraisal, compensation distribution, and human resource evaluation, effectively stimulating the intrinsic motivation of all units, while simultaneously preventing and mitigating talent attrition and attracting new recruits to inject fresh vitality into the organization.

IV. Protect the environment and create a harmonious and beautiful ecological park.

Protecting the environment is the responsibility of every individual. By conducting extensive outreach and education on environmental protection among its employees, the company has deepened their awareness of environmental conservation and strengthened their sense of social responsibility. The company strictly complies with national energy and environmental laws, regulations, and industrial policies, actively responds to energy-saving and emission-reduction requirements, accelerates structural adjustments, and pursues a green transformation and eco-friendly development path. It strives to reduce and control pollutant emissions throughout all processes and across all dimensions, resulting in continuous improvements in environmental quality within the plant area and surrounding regions and sustained reductions in pollutant discharge. As a member of the Hebei Provincial Society for Environmental Sciences, the company is able to promptly stay abreast of national environmental policy developments, align its efforts with national policy priorities, and carry out environmental protection work in a timely and appropriate manner. Consequently, its energy-saving and environmental protection initiatives have earned widespread recognition from all sectors of society.

Status of Achievement of 2019 Environmental Protection Goals: Throughout the year, no major environmental pollution incidents occurred; production and operations were in full compliance with national laws and regulations, with zero environmental violations; environmental remediation and upgrading projects were completed and passed acceptance inspection, with pollutant emissions meeting both national and local ultra-low emission standards, and total emissions of key pollutants satisfying government requirements for energy conservation, emission reduction, and overall emission control targets; the comprehensive utilization rate of industrial solid wastes such as metallurgical slag and iron-containing sludge reached 100%; the disposal of hazardous waste complied with national regulatory requirements; and clean production efforts successfully passed the second-level re-inspection and acceptance. No environmental violations or penalties were imposed throughout 2019. Furthermore, this year the company was recognized by the Tangshan Municipal Leading Group for Air Pollution Prevention and Control as an enterprise with “Good” ratings in the environmental performance evaluation.

The robust growth and development of Jinzhou Industrial would not have been possible without the support, assistance, and encouragement from our customers, employees, government authorities, the broader community, and the media. Moving forward, the company will increase its investment in areas such as corporate governance, safety and environmental protection, employee well-being, and social contribution, further integrating corporate social responsibility with business operations. We will also strengthen measures for environmental protection and energy conservation and emissions reduction, uphold a people-oriented approach by prioritizing employees’ health and career development, actively participate in building harmonious communities, and fully fulfill our social responsibilities.

December 31, 2019