Jinzhou Industrial 2018 Corporate Social Responsibility Report

Tangshan Yutian Jinzhou Industrial Co., Ltd.

2018 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 30 hectares. With a current workforce of 700 employees, the company is a key enterprise in Yutian County. Situated adjacent to Provincial Highway S264 as well as the Beijing–Harbin and Beijing–Qinhuangdao Expressways, Jinzhou Industrial 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 smelting, 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 returns 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 2018, our company’s steelmaking plant was recognized as a National Advanced Collective in the Iron and Steel Industry, and our company was designated as an “Environmental Protection Leader” by the Hebei Provincial Department of Ecology and Environment.

The Company’s efforts in fulfilling its social responsibilities for the year 2018 are as follows:

Social contribution rate continues to rise

In 2018, amid unprecedented environmental protection 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, focused on prioritizing key areas, addressing weaknesses, and strengthening weak links, overcame numerous challenges, achieved multiple breakthroughs, and continuously enhanced its competitive edge through technological upgrades. 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,” the company made informed decisions and practiced efficient management under the guidance of the employee training framework of “one central focus, two fundamental principles, and ten guiding principles,” thereby fostering the enterprise’s sustainable growth.

In 2018, the company invested nearly RMB 100 million in upgrading and constructing 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 upgrades and modernization, the company achieved an output value of RMB 1.6 billion and paid over RMB 20 million in taxes in 2018, while creating more than 700 local jobs.

People-oriented, harmonious development

The company adheres to a talent-management philosophy that emphasizes moral integrity, practical application of knowledge, and the unity of theory and practice. From start to finish, it places great emphasis on cultivating, attracting, and retaining talent, regarding employees as the enterprise’s most valuable asset. The company is committed to the all-round development of its workforce, addressing safety and health, career advancement, compensation and benefits, professional training, and improvements to work and living environments, thereby continuously enhancing employees’ working and living conditions and ensuring that the fruits of corporate growth are shared as widely as possible among all staff. In 2018, the company constructed a new 2,870-square-meter employee apartment building, equipped with underfloor heating, central air conditioning, and modern bathroom facilities. 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 social 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, pays close attention to employees’ physical health, and actively participates in the national social-security system. In 2018, extensive reforms were introduced in areas such as cadre performance appraisal, salary distribution, and human-resource evaluation, which effectively stimulated intrinsic motivation across all units. The “people-oriented” approach has been integrated throughout corporate management, cultural development, and organizational building, while measures have been put in place to prevent and mitigate talent attrition, attract new recruits, and inject fresh energy—thus laying the foundation for a sustainable, enduring enterprise.

Strengthen safety management and build a safe production 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, as well as other safety education and training activities, to enhance employees’ awareness of safe production and truly put the principle of “prioritizing life and pursuing safe development” into practice.

Since August, in accordance with the Regulations of Hebei Province on Risk Control and Hazard Management for Work Safety—Order No. 2 of the People’s Government of Hebei Province (2018)—the company has implemented risk-based tiered control and hazard identification and remediation. During this period, relevant personnel across the company were organized to undergo training and education on risk identification, tiered control, and hazard identification and remediation. 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 ensuring “full participation, comprehensive coverage, and full-process management” of risk identification, tiered control, and hazard identification and remediation. A risk-control information ledger was established, along with company-, workshop-, and position-level ledgers for hazard identification and remediation. In line with the Accident Hazard Inspection Manual, monthly inspections were carried out at the company level, weekly inspections at the workshop level, and daily inspections at the position level. Corresponding signage and public notice boards were also put in place, including an enterprise-wide risk-control spatial distribution map, workshop-specific risk-control spatial distribution maps, and job-specific risk notification cards.

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 2018, 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.

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 path of green transformation and eco-friendly development. 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.

Completion of 2018 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 primary pollutant discharge levels satisfying government energy-saving and emission-reduction requirements as well as total-quantity control targets; the comprehensive utilization rate of industrial solid wastes such as metallurgical slag and iron-containing sludge reached 100%; hazardous waste disposal complied with national regulatory requirements; and clean-production initiatives successfully passed the second-level re-inspection and acceptance. No environmental violations or penalties were imposed in 2018.

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 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.

Tangshan Yutian Jinzhou Industrial Co., Ltd.

December 31, 2018