2024Sustainability Report
Contents
About this reportAbout Hoshine SiliconKey Performance TableShanghai Stock Exchange (SSE)Guidelines Index
Corporate GovernanceESG GovernanceBusiness EthicsData Security and CustomerPrivacy Protection
Low-carbon OperationsEnvironmental ManagementPollutant DischargeResource Usage
Quality ManagementCustomer ExperienceSupply Chain SecurityCaring for EmployeesCommunity Co-construction
Responsible Hoshine,Re?ned Governance
Future Hoshine,Green Leadership
Excellent Hoshine,Scaling New Heights
GovernancePart
EnvironmentalPart
Social
Part010203
2024 ｜Sustainability Report
About this report
Report Introduction
Hoshine Silicon Industry Co., Ltd. (hereinafter referred to as "Hoshine Silicon", "the Company," or "we") presents the 2024annual Sustainability Report (hereinafter referred to as "this report" or "ESG report"), which aims to elaborate on the Company'sinstitutional development and performance in environmental, social, and governance (hereinafter referred to as "ESG"). Itobjectively discloses the Company's management and achievements in sustainable development to meet the expectations ofstakeholders and the public.
Other de?nitions are as follows:
Report Scope
Business scope: this report covers the Company's main businesses. For detailed business information, please refer to theCompany's 2024 annual report. Unless otherwise specified, the content of this report encompasses Hoshine Silicon and itssubsidiaries.Time scope: the content of this report primarily covers the time scope from January 1, 2024, to December 31, 2024 (hereinafterreferred to as the "reporting period" or "this year"). To enhance the completeness of this report, some content extends beyond thisperiod.Report release cycle: this is an annual report and represents Hoshine Silicon's ?rst Sustainability Report.
Report Preparation Basis
This report is prepared in accordance with theGuidelines No. 1 of Shanghai Stock Exchange(hereinafter referred to as "SSE") forSelf-Regulation of Listed Companies - Standardized Operations, Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulationof Listed Companies - Sustainability Report (Trial), and others, while also referencing the United Nations Sustainable DevelopmentGoals (SDGs). This report includes a detailed index of guidelines in the ?nal section for readers' quick consultation.
Report Information SourcesThe information and data in this report are sourced from the Company's internal o?cial documents, internal statistical materials,and publicly available information. Unless otherwise speci?ed, all monetary amounts in this report are denominated in Renminbi(RMB).
Report Reliability AssuranceAll content disclosed in this report has been reviewed and approved by the Board of Directors of Hoshine Silicon. The Company'sBoard of Directors and all directors guarantee that this report contains no false records, misleading statements, or materialomissions, and assume legal responsibility for the authenticity, accuracy, and completeness of its content.
Shanshan Silicon Refers to Hoshine Silicon (Shanshan) Industry Co., Ltd.Xinjiang Silicon Industry New Materials Refers to Xinjiang Hoshine Silicon Industry New Materials Co., Ltd.Western Hoshine Refers to Xinjiang Western Hoshine Silicon Industry Co., Ltd.Eastern Hoshine Refers to Xinjiang Eastern Hoshine Silicon Industry Co., Ltd.Western Silicon MaterialsRefers to Xinjiang Western Hoshine Silicon Materials Co., Ltd.Shanshan Electric PowerRefers to Hoshine Electric Power (Shanshan) Co., Ltd.Shanshan Energy Management Refers to Hoshine (Shanshan) Energy Management Co., Ltd.Hoshine Thermal ElectricRefers to Xinjiang Western Hoshine Thermal Electric Co., Ltd.Xinjiang Green EnergyRefers to Shihezi Hoshine Green Energy Management Co., Ltd.
Central Hoshine Refers to Xinjiang Central Hoshine Silicon Industry Co., Ltd.Longsheng CarbonRefers to Shanshan Longsheng Carbon Manufacturing Co., Ltd.Ningxin CarbonRefers to Shihezi Western Ningxin Carbon Co., Ltd.Jiaxing Hoshine Refers to Hoshine Silicon (Jiaxing) Industry Co. Ltd.Hoshine New MaterialsRefers to Ningbo Hoshine New Materials Co., Ltd.Luzhou HoshineRefers to Hoshine Silicon (Luzhou) Industry Co., Ltd.Inner Mongolia Saisheng Refers to Inner Mongolia Saisheng New Materials Co., Ltd.
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About this report2024 ｜Sustainability Report
2024 ｜Sustainability ReportAbout Hoshine Silicon
About Hoshine SiliconCompany Pro?leHoshine Silicon Industry Co., Ltd. was invested and established by Ningbo Hoshine Group in 2005 and successfully listed on themain board of the Shanghai Stock Exchange in 2017. It is the Company with the most complete silicon-based whole industrialchain in the world, the pioneer of the integrated green circular economy model of silicon-based new materials, and the leader ofthe overall solution for green energy resources.The Company has set up digital intelligent manufacturing bases in Xinjiang, Zhejiang, Inner Mongolia, Sichuan and other places,and has high-tech research and development centers in Shanghai and Hainan. Its businesses mainly cover multiple ?elds such asenergy, silicon metal, silicone, carbon, new materials, third-generation semiconductor silicon carbide (SIC), the whole photovoltaic(PV) industrial chain, and energy storage. Among them, the production capacities of silicon metal and silicone have ranked ?rstin the world for many consecutive years. The scienti?c research strength of emerging businesses such as SIC and PV ranks ?rmlyin the ?rst echelon of the industry. The related products are widely used in various ?elds such as aerospace and military industry,electronic communication, medical and health care, and automobile manufacturing, and its partners are all over the world.The Company strives to contribute Hoshine's wisdom and strength to the global silicon-based new materials industry and greenenergy sector. On the one hand, we actively promote the large-scale promotion of clean energy and zero-carbon technologies,vigorously advocate green and low-carbon production methods, and take the lead in carrying out product carbon footprintcertification within the industry to achieve green manufacturing. On the other hand, we actively create sustainable and greencircular economy models for quality improvement and upgrading, enabling mutual empowerment among different industrieswithin the "Green Circular Economy Industrial Park", and fully constructing a low-carbon and high-e?ciency industrial sustainabledevelopment system.
Corporate CultureHoshine Silicon places high importance on the construction and development of corporate culture, committed to building adistinctive and highly cohesive corporate culture to drive the Company's sustained and steady development. Through relentlessefforts over the past nearly two decades, Hoshine team members have gradually formed shared career goals and valueorientations, which have coalesced into the unique corporate culture of Hoshine Silicon.
Success comes frompersistenceOur Spirit
Committed to be the world-renowned enterprise withmost reasonable resourceallocation, most in?uentialand vitalityOur Vision
People-oriented,morality ?rstEmployingConcept
Let every employee playunlimited possibilitiesTalent Concept
Survive by quality,promote development byscience and technology,take customers as thefoundation
ManagementConcept
Create a platform foremployees, createbene?ts for customers,create wealth forshareholders, createvalue for society
Operation Concept
Concentrate onthe silicon-basedmaterials to createa wonderful lifeOur Mission
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2024 ｜Sustainability Report
Corporate Honors and Awards
China Enterprise Evaluation AssociationRanked 141
st
in the "List of 2024 Top500 New Economy Enterprises"
Zhejiang BusinessMagazineRanked 94
thin 2024 Top 500 NationalEnterprises from Zhejiang Province
2024 3rdGreen Finance ForumExcellent Green Energy
Development Case
Shanghai United Media Group | Jiemian Global -
2024 [Smart Industry Awards]
Annual Outstanding Enterprise in
Sustainable Development
Hurun Research Institute
Ranked 153
rd
inHurun China 500 MostValuable Private Companies 2024
Ecovadis
Gold Certi?cation
"Hangjia Remarks on the 3
rd
GenSemiconductors"
2024 Hangjia Aurora Award - China'sMost In?uential SiC Substrate
Enterprise
Obtained by Jiaxing Hoshine
Obtained by Hoshine New Materials
Corporate Values
Abide by the national laws and company system, neverviolate the high-voltage line of the enterprise; be aperson with morality first, honesty and integrity, wordsand deeds; requite kindness with kindness, requiteresentment with justice, , to uphold fairness, honesty andtrustworthiness. Use positive forces to have a positiveimpact on the surroundings.
Leading innovation with green environmental protection,everyone can innovate, everything can be innovative; embracechange, dare to break through, dare to try, not afraid of failure,good at summing up.
Professional and persistence, with the spirit ofcraftsmanship, constantly improving; diligence andefficient execution; courage to take responsibility, takethe initiative to meet new challenges and tasks; holdcuriosity, continuously improve learning, keep in mindthe original heart and mission, and pursue excellence.
Honesty and
Integrity
With an open and win-win attitude, we share industry growthwith our partners; we have a big vision and can work togetherin a team to achieve our goals; we are willing to share ourexpertise and work experience and grow with our colleagues.Win-winCooperation
GreenInnovation
Dedication andAggressiveness
National Business Daily - 2024 14
thChinaListed Companies Reputation AwardsThe Most Promising Listed Company in
New Materials
Think Finance & Investor Network - 2024
Golden Bridge AwardsAnnual Steady Progress New Energy
Company
Shanghai United Media Group | JiemianGlobal - 2024 [ESG Pioneer 60]
Excellent Corporate Governance
Award of the Year
stCentury Business Herald- 2024Capital Market "Golden Sail" CasesGrowth Value Listed Company of
the Year
Zhejiang Daily Press Group, Yinshi Finance,RoyalFlush - 2024 Yinshi Awards2024 Yinshi · Market Value
Management Award
Securities Market Weekly - The 18
th(2024)Capital Market Crystal Ball Awards2024 Annual Best Investor RelationsManagement Listed Company Award
About Hoshine Silicon
2024 ｜Sustainability ReportAbout Hoshine Silicon
From supplying electricity via thermal power plants to manufacturingend-use silicon-based products, and from vertically integrating energy andraw material supply to achieving self-sufficiency with mutual empower-ment, this model has established a comprehensive ecosystem spanningthe entire industrial chain.
GREEN CYCLE SILICON -BASED WHOLE INDUSTRY CHAIN
Hoshine Silicon is the pioneer in building theworld's first complete silicon-based industrialchain and a leader in providing holistic greenenergy solutions. The vertically integratedindustrial chain represents an efficient, secure,and traceable development model. By implement-ing end-to-end management and control acrossall production stages, it achieves comprehensiveproduct quality enhancement and precisefulfillment of consumer demands.
Create a sustainable "green engine" and improve the consump-tion level of renewable energy
Aligned with China's green developmentstrategy, Hoshine Silicon actively promotes thelarge-scale adoption of clean energy andzero-carbon technologies. The Company hasemerged as a key enabler and contributor inachieving the "Dual Carbon" goals andaddressing climate change challenges.
Inverter
Photovoltaicpower stationSolar panel
Silicon metal
Silicone
Poly-siliconSilicon rodSilicon wafer
High-puritySiC powder
SiC substrate
wafer
SiC epitaxial
wafer
SiC module
SiC terminal
product
Silicone sealantFumed silicaSilicone oilSilicone rubberLiquid silicone rubber
ThermalinsulationmaterialPaint, coatingDaily chemicals,
textilesElectric power
Automobile,architecture
Quartz mine
GlassSiliconsolarcellFramePhoto-voltaicencap-sulantfilmPVribbonJunctionboxPhotov-oltaicadhesive
Inverter
Integrated Green CircularEconomy Model of Silicon-based New Materials
Relying on the advantages of synergetic development of theindustry chain, Hoshine Silicon leads the development ofthe industry through the integrated green circular economymodel of silicon-based new materials, achieving an organiccombination of energy and silicon-based materials, andenabling the implementation of the green circular modelof "resources-products-renewable resources or recycledproducts".Currently, with the advantages such as upstream-downstreamconnection, a whole industry chain, a high local conversionrate, and obvious characteristics of a circular economy,Hoshine Silicon has established a modern industrialsystem of silicon-based new materials with internationalcompetitiveness. The Company pioneered the constructionof green circular economy parks for silicon-based newmaterials in Shihezi and Shanshan, Xinjiang. From the powersupply by the heating and power plant to the production ofterminal silicon-based products, and from the vertical supplyof energy and raw materials to self-sufficiency and mutualempowerment, all by-products in the production process arerecycled.The successful implementation of this model not onlydemonstrates the leading position of Hoshine Silicon intechnological innovation and sustainable development, butalso sets a model for the green transformation of the wholesilicon-based new materials industry. In 2024, the Company'ssilicon metal business segment, through industry chainsynergy as well as technological innovation continued toimprove the average daily output and e?ectively reduce theelectricity consumption per ton, some of the average dailyoutput of the mineral heat furnace has exceeded 70 tons,and the electricity consumption of smelting a single ton ofsilicon metal has even been reduced to less than 10,000 kWh;silicone business segment, some of the plants, through thetechnological transformation, the capacity of a single set ofequipment has been increased from 300 tons per day to 330-350 tons per day and Innovative application of advancedequipment fractional distillation technology, as well asprocess equipment technology in the chloromethane system,and the use of advanced energy-saving equipment in largeunits of the public utility system have brought significantenergy-saving bene?ts to the Company.
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Responsible Hoshine,Refined Governance
Governance Part
UN Sustainable Development Goals Corresponding to This Chapter
Hoshine Silicon deeply recognizes the importance of integrity operations for long-termcorporate development. Therefore, the Company is committed to advancing the constructionof its governance system, actively integrating sustainable development concepts into itsoperations, and earnestly fulfilling social responsibilities. Simultaneously, the Companycontinuously strengthens corporate governance level by incorporating business ethics, riskmanagement, information security, and other issues into its core development strategy, drivinghigh-quality and sustainable development while establishing a positive corporate image.
Corporate GovernanceESG GovernanceBusiness EthicsData Security and CustomerPrivacy Protection
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Governance StructureHoshine Silicon strictly complies with laws and regulations such as theCompany Law of the People's Republic of China, theSecurities Law of the People's Republic of China, and theListing Rules of Shanghai Stock Exchange for Stocks.
During theReporting Period, in accordance with the new regulatory rules of the China Securities Regulatory Commission and the ShanghaiStock Exchange, and in combination with the actual situation of the Company, we revised documents such as theRules ofProcedure of the Special Committees of the Board of Directorsand theArticles of Association of Hoshine Silicon Industry Co., Ltd.,optimized the rules of procedure of the Board of Directors and its subordinate committees, strengthened the management normsof independent directors, and improved the decision-making and management level of the Board of Directors.The corporate governance of Hoshine Silicon includes one meeting and two boards, i.e. the shareholders' meeting, the Board ofDirectors, and the Board of Supervisors. The shareholders' meeting, as the supreme authority, formulates the Company's majordecisions. The Board of Directors, as the executive body, performs its responsibilities in accordance with the authorization of theshareholders' meeting and conducts the governance work of the Company. The Board of Supervisors, as the supervisory body, isresponsible for supervising the actions of the Board of Directors to ensure that it exercises its functions and powers in accordancewith the law. The Board of Directors has established the Audit Committee, Strategy and Sustainable Development Committee,Remuneration and Assessment Committee, and Nomination Committee. All members of these committees are served by directors,jointly promoting the e?cient operation of the Company. During the Reporting Period, based on the original Board of Directors'committees, we adjusted the Strategy Committee to the Strategy and Sustainable Development Committee, and clearly includedsustainable development management work within its scope of responsibilities, so as to improve the Company's sustainabledevelopment governance level.We explicitly consider multiple factors such as gender, age, cultural and educational background, skills, knowledge, andprofessional experience when selecting candidates for the Board of Directors' members, in order to improve the work e?ciency ofthe Board of Directors and ensure the scienti?c nature of decision-making. In addition, the Nomination Committee of the Board ofDirectors reviews and examines the structure, director number, and composition of the Board of Directors every year, and makessuggestions on any changes made to the Board of Directors to ensure the independence and fairness of its management anddecision-making. During the Reporting Period, the Board of Directors of Hoshine Silicon was composed of a total of 9 directors,including 4 female directors.
The revision is based on the latest version of theCompany Law of the People's Republic of China, the China Securities Regulatory Commission'sMeasures forthe Administration of Independent Directors of Listed Companies, Listed Company Supervisory Guideline No. 2 - Regulatory Requirements for the Managementand Use of Raised Funds by Listed Companies, the Listing Rules of Shanghai Stock Exchange for Stocksas well as theShanghai Stock Exchange Self-RegulatoryGuidelines for Listed Companies No. 1 - Standardized Operations for Mainboard Listed Companies.
Risk ManagementHoshine Silicon attaches great importance to risk management and internal monitoring, formulating regulations such as theInternal Control Evaluation Promotion Systemand theInternal Audit Management System. The Company strictly supervisesbusiness processes including ?nance, engineering, and operations, strengthens risk identi?cation, early warning, and full-processcontrol of contract performance, and integrates enterprise risk management into Hoshine Silicon's strategies and operationprocesses at all levels. We have formulated a uni?ed risk investigation checklist, systematically analyzing and comprehensivelymanaging risks in terms of potential impacts, risk levels, probabilities, control measures, etc., which facilitates the Company toe?ciently manage various potential risks of all functional departments.The risk management system of Hoshine Silicon is coordinated and controlled by the Board of Directors, and the Audit Committeeunder the Board of Directors is responsible for supervising the implementation of risk management to ensure the appropriatenessand e?ectiveness of the management system and structure. Hoshine Silicon's internal control and audit departments regularlyreport to the Audit Committee, and conduct supervision and inspection on the implementation of risk management measures andrelated work. Hoshine Silicon has established three lines of defense for risk management, which support and strengthen our riskmanagement system and escort the stable and sustainable development and operation of the Company.
Hoshine Silicon integrates ESG risk management and control into its daily risk management work, enhancing our awarenessof ESG risk management. We have established an internal control e?ectiveness veri?cation mechanism to ensure the e?ectiveimplementation of the risk management mechanism, and continuously strengthened risk management and compliance trainingto further guarantee the implementation of the risk management system.
Corporate GovernanceHoshine Silicon continually enhances its governance levels through a sound governance framework and e?ective managementprocedures to ensure corporate governance efficacy. We consistently optimize our governance structure, implement riskmanagement, continuously improve governance transparency, and e?ectively safeguard shareholders' equity.
Hoshine Silicon Special Compliance Training for Independent DirectorsIn November 2024, Hoshine Silicon actively participated in the "Special Compliance Training for Independent Directorsof Listed Companies in 2024" organized by the Shanghai Stock Exchange. The training content covered course topicssuch as the regulatory concepts and latest regulatory practices of information disclosure of listed companies, the legalresponsibilities of independent directors under the registration system, the analysis of recent disciplinary action cases, andthe causes and prevention of risks of listed companies. Through this training, the independent directors of the Companytimely obtained the latest regulatory policies, providing strong support and guarantee for enhancing their own competenceto perform duties, improving the corporate governance structure, and promoting the high-quality development of theCompany.
The First Lineof Defense
The SecondLine ofDefense
The Third Line
of Defense Various business departmentsDevelop risk-control measures
in accordance with riskmanagement standards, andincorporate them into thedaily risk management andcontrol
Various functional departments
at the headquartersEstablish a sound risk
management system
and standardize the risk
management process
Internal control and audit
departments and externalsupervision and auditIndependent of other business
departments, carry outrisk monitoring and audit,evaluate the e?ectiveness ofrisk management and controlmeasures, and optimize theCompany's risk management,internal control, and governanceprocesses
Hoshine Silicon's Governance Structure
Shareholders' MeetingBoard ofDirectors
Strategy and SustainableDevelopment CommitteeAudit Committee
Remuneration andAssessment Committee
Board ofSupervisors
NominationCommittee
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ESG Governance Structure
The Company has established a three-layer ESG governance structure with the Board of Directors as the supreme decision-makingand management body, the Strategy and Sustainable Development Committee as the core, and the ESG task force responsible forimplementation. The Board of Directors is responsible for supervising and approving ESG matters, and the Strategy and SustainableDevelopment Committee is responsible for overseeing the progress of ESG work and regularly reporting to the Board of Directors. TheESG task force is composed of various functional departments to ensure the e?ective implementation of ESG work.
ESG Management PracticeHoshine Silicon is committed to truly applying the ESG concept to the practice of promoting the sustainable development of theenterprise and acting as a promoter of high-quality ESG actions in the industry. While focusing on the high-quality developmentof its main business, we actively assume social responsibilities, pays attention to the demands of stakeholders and responds tothem in a timely manner, so as to enhance its corporate in?uence and work hand in hand with value chain partners to promote theprosperity of the industry.In addition, we attach great importance to the corporate sustainable development strategy and practice, constantly improvethe understanding of ESG by the Board of Directors and management, and promptly adjust the Company's ESG developmentdirection. The members of the Board of Directors of Hoshine Silicon actively participate in ESG knowledge training, keep abreast ofthe changes in exchange rules and updates of regulatory policies related to ESG, important industry news on key ESG issues, andanalysis and sharing of ESG-themed case studies, etc., so as to improve the relevant skills and capabilities of the Board of Directors'members in sustainable development, and thus enhance the Company's ESG governance level.
Communications with StakeholdersBased on the characteristics of our company's own business and drawing on the experiences and practices of global peers, weactively incorporate the feedback from stakeholders into our strategic and management decision-making processes, ensuring thatthe requirements and expectations of stakeholders are aligned with the Company's goals and actions.Hoshine Silicon adheres to the corporate governance concepts of openness and transparency, placing paramount importanceon stakeholders' core concerns. We have systematically established a diversi?ed communication matrix encompassing face-to-face communications, emails, phone communications, and new media platforms (WeChat O?cial Account), while implementinga multi-tiered dialogue mechanism that includes shareholders' meetings, annual/semi-annual reports, special disclosuredocuments, dual-track (online/offline) performance briefings, and institutional investor thematic conferences. Throughinstitutionalized and regular two-way information exchange, we comprehensively listen to the stakeholders' demands, accuratelygauge market expectations, and continuously optimize the inclusiveness and sustainability of strategic decision-making. Duringthe Reporting Period, we focused on building strategic mutual trust system in capital markets, organizing and participating in over150 diversified exchanges covering more than 500 investors through systematic investor relations management mechanism inthe year, earning unanimous recognition from investors and shareholders, thereby laying solid foundations for enhancing capitalmarket brand credibility.
Key Stakeholders Communication Channels
Government and regulatory authoritiesPolicy directives, work reports, information submissions, on-site inspectionsShareholders and investors
Investor exchange conferences, reception of shareholder visits, response to
shareholder hotline consultationsCustomersPhone communications, periodic follow-upsSuppliers and partners
Tender meetings, supplier evaluation processes, collaborative exchanges,
industry forumsEmployees
Internal communication platforms, employee satisfaction surveys,
employee visits and careLocal communities Community activities, volunteer servicesMedia and public
Company website, daily communications and responses, public opinion
monitoring, information disclosures
ESG GovernanceHoshine Silicon attaches great importance to ESG governance, continuously improves the ESG governance structure andmanagement system, and actively integrates the concept of sustainable development into the Company's daily managementand production operations. At the same time, we earnestly listen to and accept the demands of various stakeholders, andjointly explore the path of sustainable development.
Special Training on the Sustainability Report of Listed CompaniesIn May 2024, the Shanghai Stock Exchange held the "SpecialTraining on the Sustainability Report (ESG) of Listed Companies(First Session)", which covered the interpretation of SustainabilityReport guidelines, ESG evaluation, rating and investment, carbonemission accounting methods and policies, and sharing of reportcompilation experience by listed companies. Hoshine Siliconactively organized its staff to participate in the training. Thistraining has provided guidance for the Company in exploringhigh-quality development and enhancing its investment value,and has further improved the relevant personnel's understandingof the disclosure guidelines and standardized our informationdisclosure behavior related to sustainable development.
Hoshine Silicon's ESG Governance Structure
Board of DirectorsStrategy and SustainableDevelopment CommitteeESG Task Force
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Matrix of Material lssues
Hoshine Silicon employs policy benchmarking, industry research, in-depth interviews, and questionnaire surveys to collectand analyze stakeholder inputs, constructing a multi-dimensional issue identi?cation mechanism that accurately pinpoints thedimensions of core concerns and develops the Company's list of major issues. Based on the importance assessment results fromall key stakeholders, we prioritized ESG-related issues to establish the important issue matrix, which was subsequently reviewedand approved by the Board of Directors in alignment with corporate strategy and operational policies to con?rm the priority orderof major issues.
Hoshine Silicon's Major Issues Identi?cation Process
During the Reporting Period, we identified 25 ESG issues in combination with corporate development strategy and industry-speci?c considerations, comprising 15 highly important issues, 8 moderately important issues, and 2 generally important issues.
Preliminary Identi?cation of Major Issues
The Company's potential major issues were preliminarily identified through policy interpretation and analysis,
reference to industry peers' practice, and organization of our current status.Stakeholder Communication
Through interviews and exchanges with key stakeholders (investors, customers, regulatory authorities, etc.), we
prioritized major issues according to stakeholders' focus areas.
Assessment of Major Issues
Aligned with global sustainable development goals, our strategic direction, and stakeholder concerns, we
established our major issue matrix and made corresponding adjustments based on the situation of the industry
and the Company.
Review and Disclosure
The Board of Directors reviewed major issues and disclosed them in the 2024 ESG Report.
Hoshine Silicon's 2024 Matrix of Material lssuesModerately Important Issues
Generally Important Issues
Highly Important Issues
Environmental IssuesSocial IssuesGovernance IssuesEmployee Issues
Energy UsageEmployee Remunerationand Bene?tsOccupational
Health andSafetyCompliance EmploymentEmissions ManagementProduct Qualityand SafetyEnvironmentalManagementCircular Economy
CorporateGovernanceSupply Chain SecurityClean Technology and Opportunities
R&D InnovationRisk Management
Diversity and EqualityEmployeeDevelopmentClimate Change Tackling
Privacy and Information SecurityResponsible MarketingCustomer Serviceand ExperienceRural Revitalization
Contributions to the Society
Business EthicsESG Governance
Biodiversity
Resource Usage
Importance to Hoshine Silicon
Importance to Stakeholders
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1716
The Company has joined the China Enterprise Anti-FraudAlliance, adhering to its covenant by committing to not o?eror accept bribes in business activities, operating with integrityand fair competition, and continuously implementing orexecuting e?ective anti-bribery policies. Additionally, we alsojoined the Sunshine Integrity Alliance with the mission of"integrity operations" to jointly create a trustworthy businessenvironment for consumer con?dence.
Hoshine Silicon's Business Ethics Management System
Business Ethics RegulationWe integrate the audits and supervision of business ethics risks into both routine and specialized management work to furtherenhance the e?ectiveness of our anti-corruption and business ethics management.At the audit level, Hoshine Silicon examines the execution of business ethics policies during business cycle audits, such as verifyingthe inclusion of theSupplier Commitment Letter for Integrity Cooperationin procurement contracts, thereby ensuring businessethical conducts are effectively implemented at the business level. In 2024, we conducted sales-collection and procurement-payment business cycle audits at Jiaxing Hoshine, with no instances of unethical business conduct identi?ed temporarily.At the supervisory level, to ensure e?ective execution of risk management measures, The Company's Internal Control Departmentsupervises high-risk business ethics links through proactive and reactive reviews, guaranteeing the e?ective implementation of riskmanagement work into daily work and reducing the occurrence of non-compliant incidents.
Whistleblowing and Investigation MechanismWe have established an open business ethics reporting platform to encourage stakeholders, including company employees,suppliers, and business partners, to report any misconduct against business ethics to us. The Company has implemented internalsystems such as theWhistleblower Reward System, which fully de?nes speci?c situations to be reported, assigns departmentalresponsibilities, and outlines post-reporting measures taken.
Business Ethics
Hoshine Silicon strictly complies with laws and regulations including theCriminal Law of the People's Republic of China,theAnti-Unfair Competition Law of the People's Republic of China, and theInterim Provisions on Banning CommercialBribery, having improved and updated management systems such as theEmployee Con?ict of Interest Management Policy.All employees are required to sign theIntegrity and Self-disciplinary Commitment LetterandEmployee Con?ict of InterestDisclosure Formupon onboarding, respecting market competition principles and supporting and maintaining a fair andfree market competition environment. We oppose all forms of commercial bribery, extortion, fraud, money laundering,monopoly, and unfair competition, maintaining zero tolerance towards any unethical business conduct. During theReporting Period, Hoshine Silicon incurred no ?nes or settlements related to unfair competition, con?icts of interest, moneylaundering, or insider trading.
We have established a top-down business ethics managementsystem that clearly defines responsibilities for businessethics management at all levels to foster a sound businessethics cultural atmosphere. Hoshine Silicon's Board ofDirectors has set up an Audit Committee responsible formonitoring the effectiveness of compliance managementsystems and relevant policies. The Company's InternalControl Department serves as the primary supervision andmanagement department for business ethics managementrelated matters, conducting regular and irregular supervisionsand inspections of business activities across all functionaldepartments, branches and subsidiaries, while investigatingand addressing any unethical business conduct to ensuree?ective maintenance of our business ethics management.
Board of Directors
Audit CommitteeInternal Control DepartmentFunctional Departments
Proactive review Reactive reviewConduct supervision and audits through routine andspecialized monitoringIncorporate the management modules from theBasicNorms for Enterprise Internal Controlinto daily auditsand supervisionsSupervise and inspect risk control activities and
measures implemented by various departments, guidedby a risk investigation checklist
Accept and address internal and external complaints
and reports regarding compliance issuesUpon receipt of reports, the department conducts a
preliminary review immediately to judge the authenticity,
reasonableness, and urgency of the reported content,
and assigns it to each local internal control department
for investigation based on region
Whistleblowing Channels
Whistleblower Rewards
Whistleblower Protection MeasuresPhone and WeChatEmail: hs_tousu@hoshinesilicon.com
We provide rewards to employees who actively monitor and report corruption behaviors, promoting the continuousmonitoring of any potentially unethical, illegal, or dishonest activities.
We clearly stipulate that the information of whistleblowers
will be strictly kept confidential. Except for the members
of the Board of Directors, other personnel have no right to
access the information related to the whistleblowing.
Business Ethics Alliance
Anti-Fraud Alliance Sunshine Integrity
Alliance
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Construction of Compliance CultureIn order to encourage more employees to participate in the cultural construction of anti-corruption and anti-fraud, we activelyconduct employee professional ethics training, implementing the concepts of openness, transparency, and integrity in publicservice. Our aim is to build a team of compliant talents and strengthen the clean and upright corporate atmosphere. During thereporting period, Hoshine Silicon organized business ethics and anti-corruption training covering directors, senior management,and employees, ensuring personnel at all levels realize the importance of business ethics.Mail PushSend a mandatory learning document, i.e.A Letterfrom the Internal Control Department to NewEmployees, to each new employee, reminding them ofworking with integrity and be brave enough to reportincidents that violate business ethics
Induction Training for New Employees
Conduct new employee induction training oncea month, which includes content related to anti-corruption, anti-bribery, and anti-fraud
Hoshine Silicon Business Ethics Training
Meanwhile, the Company follows theEmergency Response Plan for Network and Information Securityto execute an emergencyhandling mechanism for information leakage, aiming to prevent potential information security risks. When an information leakageincident occurs, the Operations Department of Hoshine Silicon will strictly adhere to the emergency plan response mechanism.Through the monitoring of security equipment and alarm information, it will quickly identify the cause of the security incident,promptly address information security threats, and compile a post-incident analysis report after the incident is resolved. Then, itwill report to the Company's management in accordance with the information security incident management process, preventingand minimizing the network and information security emergencies and the resulting damage. During the Reporting Period, therewere no data or privacy leakage incidents at Hoshine Silicon.
Hoshine Silicon Anti-fraud TrainingOn April 26, 2024, in order to enable employees to have a clearer understanding of the harm of fraud, Jiaxing Hoshineshared anti-fraud related knowledge with all employees at the employees' congress. The content included what fraudis, fraud around us, how to detect fraud, what the precursors of fraud are, and the "people's war" against fraud. Thisenhanced employees' compliance awareness and laid a solid foundation for the Company's clean culture construction andsustainable development.
Hoshine Silicon Anti-fraud Training Scene
Data Security and CustomerPrivacy Protection
Hoshine Silicon deeply understands that information security is the key to the cornerstone of the Company's sustainabledevelopment and customer trust. The Company strictly complies with laws and regulations such as theCybersecurity Lawof the People's Republic of China, theData Security Law of the People's Republic of China, and thePersonal InformationProtection Law of the People's Republic of China, and formulates internal systems such as theInformation System SecurityManagement Regulationsand theInformation Equipment Management Systemto ensure the continuity of businessoperations and the integrity of data, guiding Hoshine Silicon to practice the management of information security and datasecurity.
Main Responsibilities of the Leading Group for Network Information SecurityImplement the deployment and requirements of superior network information security work, ensuring that the
network information security is at Level 2 or aboveFormulate network information security management systems to ensure the secure operation of network informationBe responsible for carrying out inspections of network information security work, coordinating and planning as the
whole the emergency response to network information security incidents Regularly conduct education and training on network information security
We have established a leading group for network information security to comprehensively implement the main responsibility fornetwork information security, improve the protection ability of network information security, and build a solid line of defense forinformation security.
2024 ｜Sustainability Report
Responsible Hoshine, Re?ned Governance/
Governance Part
To strengthen cybersecurity management and the protection capabilities of business systems, Hoshine Silicon has effectivelyimproved its ability to handle cybersecurity incidents and its security protection capabilities against external risks through taskssuch as data protection encryption upgrades, information security attack and defense drills, and third-party vulnerability analysis.
The Company attaches great importance to and is committed to continuously cultivating employees' awareness of informationsecurity. Through regular holding of information security training and information security publicity and education, employees areencouraged to actively identify and prevent potential information security risks, and continuously strengthen the cultivation of allemployees' awareness and capabilities of information security protection.
Hoshine Silicon's Emergency Response Mechanism for Information Leakage
Hoshine Silicon's Information Security Protection Measure
Hoshine Silicon Information Security Experience Zone
During the National Cybersecurity Week from September 9 to 15, 2024, Hoshine Silicon actively responded and deeplyparticipated in the event. We have specially set up an information security experience zone, allowing employees toexperience various security threat scenarios immersively, such as simulated hacker attacks and handling of data leakagecrises. Through these highly interactive and practical drills, employees can intuitively feel the importance of informationsecurity and learn how to e?ectively identify and respond to potential risks in their daily work, strengthening employees'awareness of information security.
Hoshine Silicon Cybersecurity TrainingIn order to enable employees to better use security tools such as firewalls, intrusion detection systems, and anti-virussoftware, and to learn to actively use vulnerability scanning tools to promptly detect and fix system vulnerabilities, wehave carried out cybersecurity training for employees. The training content includes the basic concepts of informationsecurity, common threats, and security protection measures. By explaining national and local information security laws andregulations, as well as the Company's internal information security policies and processes, the training enables employeesto be aware of the correct handling procedures for information security incidents and standardizes the Company'sinformation security management.
Data Protection Encryption
Strengthen access control to systems and data, and implement strong password policies, multi-factor authentication,
access permission management, etc. to ensure that only authorized personnel can access sensitive information.
Green Shield must be installed on all o?ce computers in the Company, and the decryption requests and permissions
must be strictly managed, with a "whitelist" implemented for mobile storage devices.
Information Security Attack and Defense Drills
Actively carry out internal attack and defense drills. By simulating real-world attack scenarios, test the defense
capabilities and operating environment of internal systems.
During the reporting period, we repaired system vulnerabilities discovered during the drills, and optimized securitycon?gurations to enhance the overall security of the system.
Third-Party Vulnerability Analysis
Have a third-party conduct a comprehensive review of the enterprise's information security, and promptly repair and
update relevant software, systems, or equipment, including patching applications and upgrading systems. During thereporting period, we identi?ed a total of 95 high-risk vulnerabilities, 569 medium-risk vulnerabilities, and 635 low-riskvulnerabilities.
Conduct strict inspections on the data returned by the server side to ensure that the queried data isconsistent with the data displayed on the page
Blur relevant sensitive information on the server side
Delete or restrict access to pages that leak sensitive information without a?ecting businesses or functionsAfter receiving reports of potential safety hazards, promptly update system patches to ?x the vulnerabilities
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Governance Part
2223
Future Hoshine,Green Leadership
Environmental Part
UN Sustainable Development Goals Corresponding to This Chapter
Hoshine Silicon regards environmental protection as its own responsibility andunswervingly implements the green development leadership strategy. The Company iscommitted to becoming a global leading supplier of sustainable silicon-based industrychains. We earnestly carry out energy and greenhouse gas management, environmentalmanagement, pollutant prevention and control, and resource utilization managementin all aspects of production and operation, gradually exploring the action path toaddress climate change, so that we strive to achieve green, low-carbon, and long-termdevelopment, and integrate the concept of green production throughout the entireproduction process.
Low-carbon OperationsEnvironmental ManagementPollutant DischargeResource Usage
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Climate Change Tackling
Hoshine Silicon's Climate Change Governance Structure
Climate change is a major global challenge facing humanity today. With reference to the recommendations and guidance of theTask Force on Climate-related Financial Disclosures (TCFD), Hoshine Silicon incorporates climate change into its overall ESGmanagement process, actively conducts the identi?cation of climate change risks and opportunities, explores e?ective carbonreduction measures, and promptly reviews the effectiveness of its climate strategy and the achievement of carbon reductionmeasures, comprehensively enhancing the Company's ability to address climate change.Hoshine Silicon has established a climate governance structure covering the "decision-making level - organizational level- execution level", and clearly defines the management responsibilities at each level, effectively promoting the orderlyimplementation of management work for addressing climate change, continuously improving the e?ectiveness of climate changegovernance, and driving the low-carbon development of the whole industry chain.
Governance
We have provided the members of the Board of Directors with training on the theme of climate change in the form of knowledgesharing by external experts, etc., to support them in acquiring the necessary professional knowledge, so that they are competent inthe management and supervision of climate change-related issues. In order to ensure the e?ective execution of various measures,Hoshine Silicon has incorporated climate change-related quantitative indicators into the performance assessment scope ofrelevant management personnel to incentivize and commend their contributions in the ?eld of climate change.
Based on industry research reports, relevant policies issued by regulatory authorities, peer benchmarking, and external informationretrieval, Hoshine Silicon understands the list of potential climate risks, and assesses the expected time dimension of theoccurrence of risks and the degree of potential impact. According to the results of the climate risk assessment, the Company jointlydiscusses and formulates countermeasures with relevant business departments. In the identi?cation of climate opportunities, wealso combine mainstream practical cases to explore our climate opportunities.
Strategy
Risk Category Risk Description Response Measures
Potential
Impact
Time Scope
PhysicalRisk
Acute
Extreme weather conditions (such asheavy rain, typhoons, heavy snow,?oods, high temperatures, and severecold) may lead to tra?c disruptions,damage to factory buildings,and limited raw material supply,resulting in production interruptions,depreciation of ?xed assets, or work-related injuries and fatalities.
Establish a tracking mechanism formeteorological information, formulatemanagement processes for extremeweather warnings and emergencydisaster response measures, andconduct long-term prevention ande?ective response to sudden naturaldisasters such as extreme cold,typhoons, heavy rain, and ?oods.
Increasedoperatingcosts, assetimpairment
Short-term
Chronic
The rise in average temperatures willlead to increased production costs ineach factory, greater production risks,decreased employee productivity, andincreased energy consumption formaintaining normal production (suchas temperature and humidity), whichin turn will a?ect company's operatingcosts and capital investment.
Continuously identify potential risks ofclimate change and formulate plans toenhance the capability to adapt to risingtemperatures;Set up backup energy supply plans andconsider the stability of energy suppliersto address the stability of energy supplyduring extremely hot periods.
Increasedoperatingcosts
Long-term
Transitionrisks
Policy andlaw
With the gradual tightening of carbonemission management, there may berequirements for the carbon emissionsof products, leading to an increase incompany's operating costs.
Strengthen the carbon emissionmanagement system, continuouslytrack the established environmentalgoals, and establish a managementmechanism for carbon emissionperformance assessment indicators;Meet the current regulatory compliancerequirements through measuressuch as optimizing the energystructure, strengthening scienti?cand technological innovation, andpromoting the empowerment of digitaltechnologies, and take responsesmeasures in advance to emergingregulations that may or are about to beintroduced.
Increasedoperatingcosts
Med-and-long-term
Market
Suppliers are a?ected by climatechange risks, resulting in risingraw material prices and increasedproduction costs.
Pay attention to the raw materialmarket, ensure timely access to rawmaterial price information and changesin energy policies to make responses;optimize supplier management andregularly analyze the risks of rawmaterial supply.
Increasedoperatingcosts,decreasedrevenue
Med-and-long-term
Reputation
Customers, consumers, and otherrelevant parties are increasinglyconcerned about company'sperformance in terms of brand valuesand climate change response; ifcompany does not actively carry outclimate change response actions,it may not be able to meet theexpectations of stakeholders, resultingin damage to its own image andreputation.
Continuously promote R&D innovationin low-carbon products, and implementthe concept of green and low-carbon inthe production and operation process.
Decreasedrevenue,decreasedasset value
Long-term
Low-carbon OperationsWe actively respond to the national "dual carbon" strategic goals, implement the concept of sustainable development,and are committed to becoming an active participant in and contributor to the low-carbon transformation of the industry.The Company incorporates climate change into its sustainable development management, actively explores low-carbondevelopment models, and implements green operations into practical actions by continuously optimizing productionprocesses and improving energy utilization e?ciency.
Be responsible for supervising and reviewing climate change-related strategies
Supervise the performance of annual climate change-related policy management and the progressof goals
Review the measures for addressing climate change submitted by the Strategy and SustainableDevelopment CommitteeBoard ofDirectors
Strategy andSustainableDevelopmentCommittee
ESG Working Group
Identify, determine and assess the risks and importance of climate change issues
Supervise, evaluate and review the policies, management, performance and progress of relevantgoals regarding climate change issues. Examine external trends related to climate change, as well asrisks and opportunities, and mitigate the adverse impacts of climate change on the Company
Formulate and review the Company's vision, goals and strategies related to climate change,and actively communicate with the Board of Directors on the measures and actions required toimprove the Company's performance in addressing climate change
Follow up on the execution of climate change management measures, and followup on the progress of relevant performance and goal achievements
Implement the Company's decisions and deployments for addressing climatechange, and continuously improve the participation of specialized departmentsin climate change management
Responsible for internal communication and external liaison
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Opportunity Category Opportunity Description Potential Impact Response Measures
New energyand e-mobilityemerging markets
Against the backdrop of the "dual carbon" goals,public sectors, customers, and consumersprefer climate-friendly products and services,and there is a wide demand for new energy ande-mobility transformation.
Increasedrevenue
Accelerate the development of newenergy emerging markets and strengthencooperation, provide more productsand services that meet market needsand expectations, and achieve long-term sustainable growth of business andrevenue.Renewable energytransformation
With the R&D and innovation of greentechnologies and the introduction of supportivepolicies, the accessibility of renewable energywill gradually increase, and the price maygradually decrease.
Reduced energycosts, increasedrevenue
Increase the proportion of renewableenergy application in the production andoperation links, reduce direct energy costs,meet the needs of downstream customers,and at the same time respond to theregulatory pressure and low-carbon goalsfaced by the Company in the terminalmarket.
In order to enhance the resilience to climate change, effectively grasp and control climate-related risks and opportunities,Hoshine Silicon continuously strengthens its risk management capabilities, integrates climate change risks into the existing riskmanagement framework of the enterprise in stages, and is committed to gradually reducing the impact of climate risks on theenterprise during the operation process to the minimum.
Impact, Risk and Opportunity Management
Hoshine Silicon's Climate Change Risk Management Process
Hoshine Silicon formulates energy consumption goals that are in line with the actual situation based on the production statusof each business line, taking the business divisions as units, and links the key performance indicators of climate change andenvironmental management with the performance assessment of relevant core management personnel. In the future, we willformulate carbon emission goals at the Company level in combination with our own operating situation to e?ectively promote therealization of the Company's environmental and climate change goals and solidly promote the carbon reduction work.
Indicators and Goals
Hoshine Silicon is well aware that Scope 3 Emissions is an important part of the greenhouse gas emissions in the enterprisevalue chain. As of the release date of this report, the subsidiaries Shanshan Electric Power, Hoshine Thermal Electric, and JiaxingHoshine have disclosed their carbon emission situations. In the future, we will continuously improve our ability to identify andmeasure carbon emissions throughout the whole industry chain, enhance the transparency of climate data in the value chain, andlay a solid data foundation for formulating scienti?c and reasonable goals.Category Unit 2024
Scope 1 tCO
e 9,065,365.27Scope 2 tCO
e 8,838,382.528Total greenhouse gas emissions(Scope 1 + Scope 2)
tCO
e 17,903,747.80Greenhouse gas emission intensity(Scope 1 + Scope 2)
tCO
e / RMB one million of revenue670.75Hoshine Silicon's Scopes 1 and 2 Greenhouse Gas Emission Situations
Analyze climate change risks and opportunities based on the TCFD framework and the practices of peers.
Based on the analysis of industry characteristics and the opinions of stakeholders and external experts, clarify thespeci?c climate change risks and opportunities applicable to Hoshine Silicon.
Formulate effective response plans for the identified risks and regularly supervise the progress and results of riskresponse work for major climate risks.
Combined with the internal situation of the Company and the external environment, each functional departmentjointly screens out the climate change risks related to Hoshine Silicon.
For the con?rmed climate change risks, assess their impacts on the Company's business, and assess factors such asthe likelihood, impact, adaptability, and resilience of climate change risks and opportunities, so as to determine thepriority of relevant management strategies.
In the future, based on the characteristics of its own industry and business operations, analyze the factors for ?nancialimportance assessment to determine the climate-related ?nancial impacts.
Analysis and Screening of Climate Change Risks and Opportunities
Determination and Assessment of Climate Change Risks and Opportunities
Formulation of Climate Change Risk Response Plan
CO
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Energy Usage and Carbon Emissions Management
Hoshine Silicon strictly complies with the requirements of laws and regulations such as theLaw of the People's Republic of Chinaon Energy Conservationand continuously optimizes its energy management system. We have increased the intensity of low-carbon scientific and technological innovation for energy conservation, optimized the management of production processes,and continuously adopted new technologies to reduce energy consumption. While achieving energy conservation and emissionreduction, we have also effectively managed operating costs and strived to achieve the green, low-carbon, and sustainabledevelopment of the enterprise.We continuously carry out the work of establishing and improving the energy management system. For each production base,we formulate a series of management requirements for energy sources such as coal, natural gas, and electricity in terms of usage,metering, statistical reporting, consumption costs, etc., including theEnterprise Energy Management Systemand theEnergyConservation Management System. We are committed to reducing unnecessary energy consumption while meeting productionneeds.Hoshine Silicon continues to strengthen the construction of its own energy management system. A three-tier energy managementstructure covering the general manager of the business division, the chief engineer, and the team leader of the productiondepartment has been established at the business division level, and corresponding responsibilities are defined based on thespeci?c situations of the persons in charge at each rank. During the Reporting Period, Hoshine Silicon linked energy budgets to theperformance of the corresponding departments, aiming to encourage departments to actively take measures to reduce energy consumption,improve energy utilization e?ciency, and promote the overall improvement of the enterprise's energy management level.
Energy Management System
Energy Management Structure at the Business Division Level of Hoshine Silicon
Hoshine Silicon continues to promote the certi?cation work of the energy management system and continuously improves its ownenergy management level. As of the end of the Reporting Period, subsidiaries Western Hoshine, Jiaxing Hoshine, Shanshan Siliconand Luzhou Hoshine have all obtained relevant certi?cations for the energy management system such as ISO 50001.
Energy Management Measures
We actively participate in the carbon trading market and e?ciently complete the performance tasks through scienti?c formulationof trading strategies. At the same time, we are committed to promoting the discussion of carbon market policies and theformulation of standards, demonstrating the responsibility of power generation enterprises in addressing climate change andpromoting energy transformation. During the Reporting Period, Shanshan Electric Power and Hoshine Thermal Electric, aspower generation enterprises, have been respectively incorporated in the list of key greenhouse gas emission units in XinjiangAutonomous Region and Xinjiang Production and Construction Corps in 2024. Among them, Shanshan Electric Power and Hoshine
Bear the overall responsibility for energy management work.
Be responsible for the energy management work of the entire enterprise, supervise andguide each department to implement the indicators, and conduct annual assessment.
Implement and urge departments to execute laws, regulations, rules, policies, andguidelines related to energy management.
Take measures to reduce energy consumption, losses, and emissions, and implementthe strategy of combining conservation and development.
Incorporate energy management work into the enterprise's economic and socialdevelopment plans and annual plans, and organize the preparation and implementationof med-and-long-term special energy management plans and annual energymanagement plans.
Reasonably adjust the structure, promote the reduction of energy consumption, andeliminate backward production capacity, improving energy utilization e?ciency.
Encourage and support research on science and technology in energy management.
Incorporate energy management into the training system.
Improve the energy statistical indicator system, improve and standardize energystatistical methods, ensuring the authenticity and integrity of energy statistical data.
Actively carry out the publicity of energy management knowledge and energy conservationtechnology training, and support service work such as energy management and energyconservation consultation, design, assessment, testing, auditing, and certi?cation.
Establish an energy management goal responsibility system and a system for analyzingenergy consumption statistics and energy utilization status.
Hoshine Silicon's Energy Management System Certi?cation Certi?cates
Carbon Footprint Certi?cation Certi?cate of Silicone RubberProducts
Combined with the current energy consumption model of Hoshine Silicon's industries, we have carried out measures such asoptimizing production processes, improving equipment energy efficiency, and adjusting the energy consumption structure,exploring the energy conservation and carbon reduction paths of Hoshine Silicon based on multiple e?ective measures.In order to have an in-depth understanding of the energy consumption status of each product, the Company promotes thedevelopment of product carbon footprint certi?cation work, aiming to accurately grasp the carbon emission situation, clarify thecarbon emission reduction goals and paths, and actively promote the enterprise's transformation towards green and low-carbon,laying a solid foundation for achieving sustainable development goals. As of the end of the Reporting Period, the silicone rubberproducts of Hoshine Silicon have successfully obtained carbon footprint certi?cation, and the carbon footprint certi?cation work ofphotovoltaic products is also being actively promoted.
Thermal Electric have full payment of carbon emission rightsfor the year 2023 in 2024. Currently, they are waiting for thecarbon emission verification institution assigned by thesuperior environmental protection competent department toverify the 2024 emission situation of the factories. After that,the payment work will be carried out in an orderly manner. Thisis in line with the relevant national management regulations.On the management side, we actively advocate energyconservation behaviors such as turning off lights when notin use in each business division, standardize the turning offof lighting equipment as much as possible without a?ectingnormal production, and regularly conduct general knowledgeand compliant operation training related to energy conservationand carbon reduction and clean production. In the actualproduction process, employees strive to reduce waste and lossescaused by "runs, spills, drips, and leaks" and non-standardoperations, and improve resource utilization e?ciency.
Teamleader
Deputy
teamleaders
Members
Generalmanager
Chief engineer, deputy generalmanager of production, deputygeneral manager of maintenance,assistant to the generalmanager
Head of Operation Department,head of EnvironmentalProtection Department,head of Fuel TransportationDepartment, head ofWarehousing Department,director of Testing Center,head of Production TechnologyDepartment, head of SafetySupervision Department
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Carbon Emission
ReductionMeasures
BusinessSegments
Project Description
Production processoptimizationStrengthen energyrecovery, e?ectivelyutilize the wasteheat, residualpressure and otherenergy sourcesgenerated during theproduction process,and improve energyutilization e?ciency
Siliconmetal
Automated power distribution: we implemented optimized electric furnace power managementsystem, reducing energy waste through automated power distribution.
Silicone
Optimization of synthesis process: by introducing high-efficiency catalysts and precisely adjustingthe reaction conditions, the conversion rate of a single reaction has been significantly improved;at the same time, through designing the pipeline layout and selecting high-efficiency mixingequipment, we ensure the uniform distribution and full mixing of raw materials, effectively curbingthe local overheating phenomenon and significantly reducing the energy loss.Waste heat utilization: by installing heat exchangers, we collect the waste heat generated in high-temperature processes such as steam generators, and convert the waste heat into effective thermalenergy that can be used in other relatively low-temperature production links, realizing the reuseof thermal energy resources, significantly reducing the overall heating demand in the process, andeffectively improving energy use efficiency.By-product utilization: we adopt the newly developed technology to convert by-products into high-value-added products, significantly increasing the production capacity of a single set of siliconemonomer unit.Recycled use of condensate water: the condensate water generated during the production processis re-used into the system as a cooling medium or for other purposes after appropriate treatment,which not only reduces the demand for freshwater resources but also saves the energy required forheating water resources, effectively improving the utilization efficiency of water resources.
Carbon
Waste heat utilization in the calcination workshop: we install a waste heat boiler system atthe tail of the flue gas, redirect the reused waste heat to the production links that require aspecific temperature for operation, effectively reducing the flue gas emission temperature. Afterthe implementation of the technical transformation, all the steam produced annually by thenewly added waste heat boiler is reused in the production system, significantly reducing coalconsumption.Energy
Technical transformation of low-temperature denitrification: we remove the high-temperaturecatalyst and replace it with a medium-temperature catalyst, enabling the denitrification system tobe put into operation at the initial stage of the unit's startup and accelerating the system's entryinto an efficient state.
Photovoltaic
Energy conservation in poly-silicon production process: waste heat energy conservation
1. Make full use of the waste heat generated during the production process of the reduction furnace,
and adopt the multi-tower coupling technology of the distillation column, which greatly reduces thesteam consumption.
2. Convey the waste powder generated during the production process to the trichlorosilane device
for the production of chlorosilane, which greatly reduces the silicon consumption.Energy conservation in monocrystalline silicon and monocrystalline silicon wafer process:
energy conservation by changing the thermal field structure and water cycle
1. By improving the structure of the thermal field of the monocrystalline furnace, the power in the
crystal pulling process is reduced, thus achieving the goal of reducing power consumption.
2. The pure water used in the slicing process is recycled after passing through a filter press, reducing
water consumption.Energy conservation in the solar panel process: thermal energy recoveryThe compression heat generated by the air compressor is recovered and reused by being suppliedto the equipment in the workshop that requires heat, thereby saving energy consumption.Energy conservation in the photovoltaic glass process: optimization of the kiln burnerWe optimize the distribution mechanism of natural gas among the burners, making the meltingtemperature curve in the kiln more reasonable, thus significantly improving the glass meltingquality and reducing the natural gas consumption per unit in the glass production process.
Carbon Emission
ReductionMeasures
BusinessSegments
Project Description
Improvement ofequipment energye?ciencyImplement energyconservationtransformationof equipment toimprove equipmentenergy e?ciencyand reduce energywaste
Siliconmetal
Adding a waste heat boiler: by adding a waste heat boiler, the waste heat of the ?ue gas is e?ectivelyconverted into reusable energy, enabling the utilization of a large amount of high-temperature ?ue gasgenerated during the production process and improving the economic bene?ts of the enterprise.Fan transformation: we carry out an integrated transformation of the dust treatment system,focusing on the upgrading of key equipment such as the main environmental protection fan and thedust collector. We implement a modular compartment addition transformation of the dust collector,which signi?cantly improves the system's treatment e?ciency. Based on the real-time data of the dustconcentration, the operation parameters of the equipment can be dynamically optimized. After thetransformation, the operation energy consumption of the system is significantly reduced, the dustemission stably meets the standard, and the operation and maintenance cost is reduced simultaneously,forming a virtuous cycle of coordinated optimization of environmental protection treatment and energye?ciency.
Silicone
Addition of a hydraulic turbine: the hydraulic turbine has been commissioned and put into use.Its performance during operation meets expectations. It can drive the fan to meet production needsjust under the action of the recycled return water, without the need for an auxiliary motor to operate,achieving cost reduction.Equipment technical transformation: through innovative design and optimization of the internalcomponents of the fluidized bed reactor, the methyl chloride gas distributor, and the gas-solidseparation cyclone equipment structure of key devices, and by developing a new catalytic system andstudying its synergistic e?ect with the quality of silicon metal, the Silicone R&D Center has successfullyincreased the production output of methyl chlorosilane and the operation cycle of the device.Application of innovative technologies: Our innovative applications include advanced distillationequipment, process technology in chloromethane systems, and energy-efficient machinery for largeunits of utility systems, collectively delivering notable energy-saving bene?ts.Elimination of old equipment: we eliminate old equipment with high energy consumption andintroduce new e?cient and energy-conserving equipment. This measure not only signi?cantly reducesenergy consumption but also improves production e?ciency.Carbon
Selection of energy-efficient equipment: some high-energy-consuming equipment was usedin the production process of the carbon segment. To achieve the energy conservation goal, wecomprehensively select equipment with an energy e?ciency level at Grade 2 or above. This helps thebusiness division reduce energy consumption, save costs, and reduce carbon emissions.
Energy
Energy conservation optimization of the cold end of the steam turbine: On the basis of the air-cooling system, a peak cooling unit is added to divert steam for cooling during summer. During spring,autumn, winter, or under low-load conditions, the air-cooling fans operate at variable frequency whilethe peak cooling unit is shut down to increase the unit operationsEnergy conservation transformation of the vacuum pump: we install a pre-condenser on thevacuum extraction header pipe to pre-cool the moist gas, reduce the volume ?ow rate of the medium,lower the power of a single pump, and recover the condensed water; we develop an intelligent two-stage triple-cone vacuum system that reduces energy consumption through flow path optimization,while integrating real-time monitoring and early warning functions to achieve synchronousimprovement in electricity, water, and coal utilization e?ciency.3233
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Carbon Emission
ReductionMeasures
BusinessSegments
Project Description
Improvement ofequipment energye?ciencyImplement energyconservationtransformationof equipment toimprove equipmentenergy e?ciencyand reduce energywaste
Energy
Capacity increase transformation of the mill: we replace key worn components and optimize thestructural strength; upgrade the rotary separator system, retain the motor and variable frequencycontrol module, and replace core solar panels such as the rotor as a whole to improve theseparation efficiency of pulverized coal; reconstruct the casing sealing system, transform the tie rodsealing device and the structure of the manhole door to increase the output.Spraying the boiler with new coating: we implement coating reinforcement technicaltransformation for the problem of the decline in the boiler's thermal efficiency, and use a newtype of composite coating to spray the water-cooled wall of the furnace chamber as a whole.By enhancing the radiation heat transfer efficiency in the furnace, the uniformity of the flametemperature field is improved, and the heat loss of the flue gas is effectively reduced. After thetransformation, the boiler's thermal efficiency is improved, the coking rate of the heating surface isalleviated simultaneously, the maintenance cycle is extended, and both energy conservation andefficiency improvement as well as the equipment reliability are enhanced.Boiler front warm air heater: we carry out the transformation of the boiler front warm air heatersystem. By constructing a thermal energy closed-loop system of "condenser-circulating water-warmair heater", we introduce the low-temperature circulating water that is idle in winter into the inletair duct of the boiler fan. A two-group modular warm air device is innovatively designed to heat theambient air to an appropriate temperature, providing an efficient solution for the utilization of thewaste heat from the cold source of power plants in severely cold regions.Performance improvement of the steam-driven feed water pump: we optimize the flow channelstructure, and improve the flow capacity by widening the flow-through cross-section and enhancingthe surface finish; innovate the design of the impeller assembly, and adopt streamlined bladesand wear-resistant coating technology to improve hydraulic efficiency and cavitation resistance;reconstruct the sealing system, and select high-temperature and high-pressure sealing materialsand precisely control the clearance between the moving and stationary parts, enabling the twounits after the transformation to completely get rid of the dependence on the electric pump.
Adjustmentof the energyconsumptionstructurewe continuouslyoptimize the energystructure, increasethe proportionof clean energyuse, reduce theconsumptionof traditionalenergy sources,and e?ectivelyreduce the energyconsumption duringthe productionprocess.
Carbon
Selection of new energy lighting equipment: we successively install solar streetlamps within andaround the factory area to save electricity.
Replacement of furnace gas used for gas generator with natural gas: we have eliminated thedouble-stage gas generator, and used a new natural gas transportation and decompression system,gradually replacing the original gas combustion system with a natural gas combustion system, andsignificantly improving energy utilization efficiency.
Energy
Construction of photovoltaic project: photovoltaic power generation project in Shanshan County,Turpan CityTo ensure the stable supply and efficient utilization of energy, Shanshan Electric Power plans toinvest in and construct a photovoltaic power generation project in Shanshan County, Turpan City.It is expected to adopt various models of energy storage systems to improve energy utilizationefficiency and reduce losses.
Environmental Compliance ManagementWe strictly comply with national environmental laws and regulations, including theEnvironmental Protection Law of the People'sRepublic of China, and have established standards and speci?cations such as theEnvironmental Protection Management System,theEnvironmental Protection Facility Operation System, and theProduction Base Environmental Pollution Prevention andControl Responsibility Systemto ensure environment protection compliance throughout project construction and manufacturingprocesses.
To ensure the efficient operation of the environmentalmanagement system, Hoshine Silicon has established a top-down environmental management structure, decomposingenvironmental management tasks item by item, providingstrong support for continuously promoting the Company'senvironmental management. We have formulated anenvironmental management structure in which the generalmanager of the business division reports directly to theCompany's Board of Directors, clarifying the environmentalmanagement responsibilities and authorities at each level,gradually strengthening the implementation and supervisionof environmental management responsibilities, and furtherimproving the enterprise's environmental governance level andenvironmental performance.
Environmental Management System
In terms of environmental risk management, Hoshine Silicon strictly follows the requirements of theMeasures for EmergencyManagement of Environmental Emergencies, theInterim Measures for the Administration of the Filing of Emergency Plansfor Environmental Emergencies in Enterprises and Public Institutions (Trial)and other regulations, and regularly conductsinvestigations for hidden dangers of sudden environmental risks. At the same time, we organize each business division toformulate theEmergency Response Plan for Environmental Emergenciesand ?le it, clarifying the emergency response proceduresand handling measures, which e?ectively enhances the ability and level of the enterprise's internal response to environmentalrisks. During the Reporting Period, Hoshine Silicon did not have any major environmental pollution incidents, environmentaladministrative penalties or accidents such as excessive pollutant discharge or illegal discharge.At the same time, through a comprehensive and meticulous environmental risk assessment process, we systematically identifyvarious potential environmental risk points. Relying on professional environmental audit methods, we conduct in-depthveri?cation and con?rmation of the actual environmental risk situations of each business division to ensure the accuracy of riskidenti?cation.
Environmental Risk Management
Environmental ManagementHoshine Silicon incorporates environmental protection and sustainable development into its corporate developmentstrategy, continuously enhancing environmental management capabilities. The Company practices green operations,implements chemicals management, and prioritizes biodiversity conservation work, striving to build an eco-friendlyenterprise.
Hoshine Silicon's Environmental Management Structure
Board of DirectorsGeneral Manager ofBusiness Division
Heads of the Safety and EnvironmentDepartments of Each Subsidiary
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Hoshine Silicon regularly conducts internal environmental audits and external reviews to supervise the operation of theenvironmental management system and the performance of environmental management work in each business division, andto improve the Company's environmental management level in a targeted manner. In terms of internal audits, we conductenvironmental impact testing at the already commissioned production bases every year to ensure the compliance of environmentalmanagement. The Company also conducts environmental impact assessments on new construction projects in accordance withnational environmental protection requirements, ensuring the environment protection compliance of new projects.In addition, the Company regularly accepts daily supervisory comprehensive inspections, environmental management systeminspections, special inspections of pollutant discharge permits, special inspections of hazardous waste, etc. by the ecologicalenvironment management department at the location of the enterprise, ensuring the effectiveness of the execution ofenvironmental management policies and the e?ectiveness of risk management measures.
Environmental Compliance Audit
Hoshine Silicon continuously promotes the certificationwork of the environmental management system and plansto continuously extend the ISO 14001 certification to allproduction-type affiliated companies of the Company. Atthe same time, the Company also continuously conducts thecertification work of clean production and green factories.As of the end of the Reporting Period, multiple subsidiariesof Hoshine Silicon had passed the ISO 14001 environmentalmanagement system certi?cation.
Environmental System Certi?cation
Certi?cation Situation of the Environmental Management System of Hoshine Silicon
Hoshine Silicon is committed to integrating the promotion of green environmental protection awareness into di?erent operationscenarios such as o?ces and factory areas. It adopts various methods such as regularly conducting training on environmentalprotection knowledge and typical cases to promote the concept of sustainable development, so as to effectively enhance theenvironmental risk awareness and response skills of our employees.
Environmental Compliance Training
For o?ce areas that are not involved in production, Hoshine Silicon also formulates relevant environmental management rulesand regulations, including but not limited to theRegulations on the Use of Air Conditioners. We continuously conduct inspectionsof o?ce areas, and issue management notices on energy conservation and consumption reduction irregularly for the identi?edphenomena of resource waste, deepening employees' concept of green o?ce practices.Green O?ce
Environmental Audit Project
Environmental audits ensure that the Company can promptly discover and deal with potential environmental problems,effectively guaranteeing the environment protection compliance of the production process. This not only enhancesour own ability to respond to environmental risks but also demonstrates the Company's sense of responsibility andcommitment in environmental protection.In 2024, both Shanshan Silicon and Xinjiang Silicon Industry New Materials carried out environmental protection auditwork. Through monthly, quarterly, and annual audits, they continuously tracked and monitored the performance ofthe entire factory in terms of the generation, storage, and disposal of wastewater, exhaust gas, and waste, as well as theoperation of environmental protection facilities, and other dimensions. According to the relevant requirements of theenvironmental impact approval and pollutant discharge permit report, they formulated an annual self-monitoring plan,and ?lled in the monitoring data in real-time on the national platform for archiving, monitoring, and reporting.
Environmental Risk Assessment Project
In 2024, Western Silicon Materials carried out a comprehensive environmental risk assessment work through a quali?edthird-party professional institution. This assessment reviewed the environmental risks around the Company, theenvironmental risk substances involved in the operation stage, the existing environmental risk prevention and controlsystem, and the configuration of emergency measures. It carried out scenario analysis focusing on environmentalemergencies and their harmful consequences, and conducted a gap analysis of the existing prevention and control system.The final conclusion of the environmental risk assessment is that the existing environmental protection measures arefeasible, the potential environmental risks are controllable, and the relevant emergency response work can be e?ectivelycarried out in case of environmental emergencies.
Chemicals ManagementHoshine Silicon has formulated chemicals management systems such as theList of Chemical Categories and Management System
and theHazardous Chemicals Management System, establishing a special Safe Production Committee to manage hazardouschemicals. Employees are strictly required to operate chemicals in a stable, orderly, and accurate manner, ensuring that every stepof the operation complies with safety speci?cations.
Special Training
Compliance Training
The full-cycle management specifications for hazardous wastecover key technical requirements such as storage standards and thesetting of identi?cation signs
A deep analysis of the legal system for the prevention and controlof solid waste pollution systematically sorts out the core clauses ofthe new solid waste laws, the regulations on the management ofpollutant discharge permits, etc.
In the practice of environmental risk prevention and control, westrengthen practical combat capabilities through the analysisof typical cases and simulated emergency handling drills. At thesame time, we publicize the joint law enforcement mechanismfor environmental violations and crimes related to hazardouswaste, ensuring that managers accurately master the red lines ofregulations and operation speci?cations
We strictly implement the requirements ofnational environmental protection policiesand carry out training for all employeesfocusing on the interpretation of regulationsand basic capacity building. By systematicallyexplaining the latest environmental protectionregulations, standards, and key points ofpractical operations, we focus on strengtheningemployees' ability to execute daily operationspecifications and emergency handling. Wetransform environmental protection awarenessinto implementable codes of conduct andcontinuously consolidate the talent foundationfor green development
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The Company strictly complies with the relevant regulatory requirements of national chemicals management, and comprehensivelyimplements the supervision work of chemicals, including hazardous chemicals. We have established a veri?cation and registrationmanagement system for the entry and exit of hazardous chemicals, and implemented strict supervision and management of theentire life cycle of chemicals, including procurement, storage, use, and discarding, ensuring the standardization and re?nement ofchemicals management work.
Chemicals Supervision
Hoshine Silicon's Hazardous Chemicals Management Process
For the chemicals involved in the workplace, we clearlyinform employees about the chemicals they may come intocontact with and the existing hazards, and post the chemicalcomponents and relevant test data at the work site. TheCompany has formulated chemicals-related emergencyhandling mechanisms such as theSpecial EmergencyResponse Plan for Hazardous Chemicals Leakage Accidents.We follow the principle of "people-oriented, safety ?rst" andestablish a special accident emergency rescue commandheadquarters, ensuring that in case of emergencies such aschemical leakage, the response and handling work can becarried out quickly, orderly, and e?ciently. When a hazardouschemical leakage accident occurs, the Company immediatelyreports it to the local emergency management bureau,promptly activates the emergency supplies warehouse, and
handles the accident site if appropriate after wearing theequipment in accordance with the rules and regulations,minimizing the casualties and property losses caused by theaccident disaster.Hoshine Silicon adheres to the principle of "preventiondominant, drills ?rst" and regularly conducts emergency drillsrelated to chemical safety, aiming to improve employees'emergency handling ability for chemical-related emergencies.We attach great importance to cultivating employees'emergency response ability. By simulating emergencysituations such as chemical leakage in real scenarios, we trainemployees to respond quickly and accurately and e?ectivelycontrol the development of the situation, maximizing thesafety of personnel and the environment.
Emergency Handling Mechanism for Chemicals
Filing of Hazardous Chemicals
Procurement and Registration of Hazardous Chemicals
Release from Warehouse and Storage of Hazardous Chemicals
When the using department needs to use hazardous chemicals, it must ?rst submit a paper application to the local police stationAfter obtaining approval, the approved application report needs to be uploaded to the precursor chemicals supervision
system on the chemicals management platform
According to the actual needs, the using department needs to go through the release procedures from the warehouse in
the precursor chemicals supervision system of the chemicals management platformAll hazardous chemicals are strictly stored in special warehouses for hazardous chemicals, and the whole process is
monitored and managed through the chemicals management platform, ensuring their safe storage and compliant use
The procurement department signs a formal procurement contract with the distributors based on the approval
information on the chemicals management platform, followed by procurement of hazardous chemicalsAfter the goods arrive, the using department needs to promptly enter detailed information such as the usage quantity,
speci?cations, and models of hazardous chemicals on the chemicals management platform, ensuring the accuracy and
traceability of the data
Chemical Emergency Drills
The Company attaches great importance to the safety management of hazardous chemicals, and each production baseactively organizes and conducts multiple emergency drill activities. Through this series of carefully designed practicaldrills, we strive to enable every employee to master solid chemical safety knowledge, strengthen their emergency responseability and practical operation skills in dealing with hazardous chemical leakage accidents, and comprehensively improveour emergency response ability to hazardous chemical leakage accidents.Drill on the Leakage of the Flange Connection at the Outlet of the Monomer Tank
Drill on the Leakage Caused by the Falling O? of the Methanol Crane Pipe at the Loading andUnloading Station in the Tank Area
In June 2024, Shanshan Silicon organized a company-level emergency drill. This drill simulated the leakage accidentscenario of the ?ange connection at the outlet of the monomer tank leaking. It was assumed that the shut-o? valveof the storage tank malfunctioned, and a leakage occurred in front of the valve of the outlet pipeline of the storagetank during the handling by the instrument maintenance workers. Since the workers did not wear protective faceshields, the material splashed onto their faces, causing burns. The drill focused on key links such as personnel rescue,warning and evacuation, ?re prevention, plugging and material transfer operations, site cleaning, and environmentalmonitoring, comprehensively testing the Company's emergency handling ability for leakage accidents.
In September 2024, Shanshan Siliconorganized a company-level emergencydrill. This drill simulated the accidentscenario of the methanol fluid loadingarm falling o? and leaking at the loadingand unloading station in the tank area.In the set scenario, the methanol fluidloading arm fell off when the methanoltank truck was unloading. The escort ofthe methanol tank truck inhaled a largeamount of methanol and fainted afterclosing the emergency shut-off valve. Atthe same time, due to static electricity,a fire was ignited. The drill focused onkey links such as personnel rescue,warning and evacuation, ?re?ghting, sitecleaning, and environmental monitoring,further improving the Company's specialemergency handling ability for methanolleakage accidents.
Hoshine Silicon Emergency Drill Site
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As a leading integrated enterprise in the silicon-based new material industry, the industry chain of Hoshine Silicon runsthrough multiple business segments such as silicon metal, silicone, carbon, photovoltaic, and energy, covering the entireprocess from ore mining, smelting and processing to the manufacturing of high-end materials. Due to signi?cant di?erencesin the production processes and raw material usage of each business segment, the types of pollutants generated also vary.Combining its own industrial operation situation, Hoshine Silicon customizes and improves the discharge of wastewater,exhaust gas, and solid waste in accordance with laws and regulations such as theWater Pollution Prevention and ControlLaw of the People's Republic of China, theAir Pollution Prevention and Control Law of the People's Republic of China, andtheLaw of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste, andnorms such as theLaw of the People's Republic of China on the Promotion of Clean Production. The Company promotesclean production and tries to reduce or eliminate the impact of its own operations on the environment as much as possible.
The Company regularly provides multi-dimensional training, both online and offline, to employees involved in the use ofchemicals, to enhance their understanding of the properties, characteristics, and potential risks of chemicals. This ensuresthat every employee can dispose of chemicals accurately and safely, jointly building a solid defense line for the ecological andenvironmental safety of the enterprise.In 2024, Hoshine Silicon carried out several systematic chemical knowledge training sessions, covering managers and front-lineoperating employees. The content included the basic properties and characteristic classifications of chemicals, as well as thestorage management requirements, safety precautions for use, and emergency handling measures in case of emergencies.
Training on Chemical Safety
Ecosystem and Biodiversity Protection
We deeply understand that biodiversity, as the foundationof life on earth, is also an important guarantee for thesustainable development of enterprises. Hoshine Siliconstrictly complies with relevant laws, regulations, and policiessuch as theForest Law of the People's Republic of China, theRegulations for the Implementation of the Forest Law of thePeople's Republic of China, theRegulations on Conversionof Farmland to Forests, theMeasures for the Administrationof Forest Cutting and Regeneration, and theWater Law of thePeople's Republic of Chinato carry out ecological protectionwork.Hoshine Silicon always places ecological protection at thehighest level of its business operations. All its activities,products, and services have not had a signi?cant impact onbiodiversity, and all office spaces, business premises, andindustrial plants are not located within natural protectionareas or in areas rich in biodiversity outside the protectionareas. It neither damages the original vegetation andecosystem, nor uses protected animals to conduct animal
experiments or uses protected plants and animals as rawmaterials in the production process.The Company continuously pays attention to the impactof its own operations on biodiversity, and focuses onthe protection and promotion of biodiversity. During theproject construction and operation process, it makes everyeffort to avoid any damage to the natural ecosystem andactively carries out biodiversity protection and restorationwork to create a suitable habitat environment for wildanimals and plants. In addition, we continuously strengthenenvironmental awareness education for employees,encouraging full participation in ecological protectionpractices. Upholding the philosophy of respecting natureand protecting biodiversity, we have embedded ecologicalprotection as a core component of our corporate culture. Thiscommitment drives the Company's steady progress along agreen, sustainable, and biodiversity-respecting developmentpath.
Pollutant Discharge
Waste DisposalThe Company practices the concept of "source reduction and resource recycling", formulates internal systems such as the
Hazardous Waste Management System, theWaste Management System, and theSupervision and Management Measures andSystem for Hazardous Waste, and implements the compliant collection, classi?cation, storage, transfer, and disposal of di?erenttypes of waste.Non-hazardous Waste ManagementWe actively promote the reduction, recycling, and harmlesstreatment of waste. General waste with recycling value isentrusted to capable units for recycling, and general wastewithout recycling value is uniformly collected and disposedof by local municipal sanitation and other units capable ofhandling solid waste.
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Measures for Handling Non-hazardous Waste of Hoshine Silicon in 2024
Management of Hazardous WasteAll business divisions of Hoshine Silicon are equipped withhazardous waste temporary storage sites that have passed theacceptance of environmental protection facilities as required.The hazardous waste is temporarily stored in the hazardouswaste temporary storage room. The Company fills in thehazardous waste generation and disposal ledger, the hazardouswaste management plan, the hazardous waste transfer sheet,etc. according to national regulations, and entrusts professionalinstitutions with collection and disposal quali?cations to handlethe hazardous waste.
In accordance with the regulations of the operation locationand the detailed requirements of environmental managementsystems such as ISO 14001 for hazardous waste, we formulate anannual hazardous waste generation plan, plan the generation ofwaste in each process and procedure of the production link, andclarify speci?c supervision measures.
Measures for Handling Hazardous Waste of Hoshine Silicon in 2024
Compliant Disposal by a Third Party
Silicon metal business: the hazardous waste gen-
erated during the production and operation mainlyincludes waste mineral oil, waste empty barrels, wa-ter glycol, waste lead-acid batteries, waste chemicalreagents, and empty waste reagent bottles. All haz-ardous waste is safely and standardly disposed of byhazardous waste disposal units with correspondingqualifications in strict accordance with the require-ments of relevant laws and regulations
Carbon business: the non-hazardous waste gener-ated during the production and operation mainlyincludes waste oil barrels, which are temporarilystored and managed relying on the hazardouswaste warehouse
Photovoltaic business: the hazardous waste gen-
erated during the production and operation mainlyincludes discarded packaging materials and con-tainers, which contain or are contaminated withtoxic and infectious hazardous waste. All hazardouswaste is classi?ed and collected in strict accordancewith their physical and chemical properties, packedin packaging bags with special color markings, andthen sent to the hazardous waste warehouse forcentralized storage. Finally, they are handed over tothe recyclers with hazardous waste disposal quali?-cations for disposalEnergy business: the hazardous waste generatedduring the production and operation mainly in-cludes waste mineral oil, waste catalysts, and dis-carded packaging that is contaminated with or con-tains waste mineral oil such as waste lubricating oil.We rely on standard hazardous waste warehousesfor temporary storage and management, and signcontracts with quali?ed hazardous waste disposalunits to dispose of the hazardous waste in accor-dance with the hazardous waste management plan
Resource Utilization
Silicone business: the hazardous waste generated
during the production and operation mainly includesdry waste catalyst, high-boiling residue slurry, waste-water treatment sludge, monomer conversion wasteoil, monomer conversion residual liquid, activatedcarbon filter residue, waste sulfuric acid, and dilutehydrochloric acid recovered from the incineration de-vice
For the waste sulfuric acid and the dilute hydrochloric
acid recovered from the incineration device, the Com-pany specially establishes a magnesium sulfate deviceand a hydrochloric acid analysis device to realize therecycling of these wastesFor the high-boiling bottom residue generated during
the production process, a technology for extractingcopper from the bottom residue is developed. Cop-per element is extracted from the bottom residue,realizing the recycling of resources, and reducing thedischarge amount of hazardous waste
Transformation of Waste TreatmentEquipmentSilicone business: we upgrade the equipment of
the residue treatment facility of the incineration de-vice and add density enhancement facilities to ef-fectively improve the density of the residue, reducethe volume, and improve the subsequent treatmente?ciency
The non-hazardous waste generated during the production and operation of the silicon metalmainly includes desulfurized gypsum, silicon slag, microsilica powder, and used refractory bricksHarmless treatment: the desulfurized gypsum and silicon slag are respectively stored inindependently divided gypsum warehouses and storage yards. Some silicon slag is screenedand returned to the furnace for use. The desulfurized gypsum and the remaining silicon slag areentrusted to a quali?ed third-party unit for uni?ed disposal
Reduction: after being crushed, the used refractory bricks are mixed with refractory castables andused for repairing the lining of high-temperature industrial furnacesRecycling: as one of the important by-products in the production process, the ?ne silicon metal
powder undergoes strict quality control screening and processing to meet the market salesstandards, realizing the e?ective utilization of resources and value maximization
Silicon MetalBusiness Segment
The non-hazardous waste generated during the operation of the energy business mainly includesdesulfurized ash and ?y ashHarmless storage: conventional hazardous waste is stored in solid waste tanks and kept in warehouseswith functions of preventing wind dispersion, ?re, and spillage. Regularly, recyclers with correspondingdisposal quali?cations are entrusted to clean up and dispose of general solid wasteEnergy BusinessSegment
The non-hazardous waste generated during the carbon production and operation mainlyincludes waste tar, coal cinder, and used refractory bricksHarmless treatment: the coal cinder is transported to the responsible company for treatmentand is not stored in the factory; the used refractory bricks (waste materials removed duringthe repair of the furnace body in the calcination, roasting, and graphitization processes) arepromptly cleaned up and recycled by a quali?ed third partyReduction: the waste tar from coal tar and asphalt tar is temporarily stored in an undergroundtar tank, and then reused as a raw material in the kneading process of the molding workshop;metallurgical coke particles (used as thermal insulation covering materials in the roasting andgraphitization workshops) are temporarily stored in a closed storage warehouse for repeateduse; the waste oil is reused as a release agent in the pressing process of the molding workshop;the dust collected by the bag ?lter is uniformly stored in the recycled material warehouse andreused as a production raw material in the batching process of the molding workshop
Carbon BusinessSegment
The non-hazardous waste generated during the photovoltaic production and operation mainlyincludes silica slag, various packaging materials, cartons, and other materialsHarmless treatment: aGeneral Solid Waste Management Ledgeris set up. After various types ofnon-hazardous waste are classi?ed and collected, they are stored in warehouses with functionsof preventing wind dispersion, fire, and spillage. Regularly, recyclers with correspondingdisposal quali?cations are entrusted to clean up and dispose of general solid waste
PhotovoltaicBusiness Segment
The non-hazardous waste generated during the production and operation of the silicone mainlyincludes miscellaneous salts
Harmless treatment: after various types of non-hazardous waste are classi?ed and collected,they are stored in warehouses that comply with safety regulations. Regularly, recyclers withcorresponding disposal qualifications are entrusted to clean up and dispose of general solidwasteSilicone BusinessSegment
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Hoshine Silicon vigorously promotes the construction of smart factories, and constantly improve the Hazardous WasteManagement System (HWS) of Hoshine Silicon, helping the factory manage hazardous waste in a compliant and e?cient manner.Ensure that the whole process of the generation,storage, transfer, and disposal of hazardous wastecomplies with the requirements of national laws andregulations. Automatically inspect relevant permitsand reports through the platform to avoid legal risksand improve the Company's compliance level.
Assign unique identifiers to hazardous waste toachieve full-chain tracking from generation to finaldisposal, monitor the waste status and storageenvironment in real time, and prevent leakage andillegal disposal incidents.
Wastewater Management Measures of Hoshine Silicon in 2024
Hoshine Silicon's Hazardous Waste Management System (HWS) PlatformWastewater Discharge ReductionWastewater discharged in our production and operation mainlyincludes the wastewater from equipment cleaning, pipelinecleaning, and domestic sewage within the factory area. Themain pollutants are Chemical Oxygen Demand (COD), ammonianitrogen, and so on. Hoshine Silicon has formulated internalsystems such as theWastewater Management SystemandtheWastewater Discharge Management System, continuouslyoptimizing its own sewage treatment capacity, and strictlycontrolling the effect of wastewater treatment and theconcentration of pollutant discharge.Hoshine Silicon continues to promote the comprehensiveutilization project of wastewater, and improves the recycling
rate of industrial wastewater, minimizing the external dischargeof wastewater. During the Reporting Period, the Company'scompliance rate of wastewater pollutant discharge reached100%.The Company's compliance rate ofwastewater pollutant discharge reached100%
Exhaust Gas Emission Reduction
Exhaust Gas Management Measures of Hoshine Silicon in 2024
Exhaust gas treatment of submerged arc furnace:
the flue gas produced by the mineral heat furnace, the?ue gas produced by the process of discharging the ?uegas collected by the gas collector, uni?ed after the wasteheat recovery device, into the bag filter processing,the processed flue gas sent to the denitrification anddesulfurization device to continue to deal with, to ensurethat the waste gas in the standard discharge
Silicon Metal Business Segment
Ultra-low emission of dust exhaust gas: by using
?lter bags with higher toughness, better high-temperatureresistance, and better air permeability, the dust emission ofthe waste gas treatment unit can be extremely low, and theconcentration of fume and dust emissions can be reduced
Energy Business Segment
Ammonia recovery from tail gas of the dry process:
based on the four-stage spray absorption process for heatexchange and convection, ammonia water is successfullyproduced and reused, reducing the ammonia concentrationin the tail gas emissionsInnovative treatment of acidic exhaust gas: the usualsolution for treating acidic exhaust gas requires the use of?ake sodium hydroxide to prepare an alkaline solution. Weuse the waste alkali solution that was originally scheduledto be discharged during the PV cell production process forneutralization to absorb components such as hydro?uoricacid and hydrochloric acid in the exhaust gas
Photovoltaic Business Segment
Cascading treatment of exhaust gas: the productionexhaust gas passes through the circulating water andrefrigerant condensation recovery system for recoveryin sequence, and then is sent to the incinerationdevice for incineration treatment. The incineratedflue gas needs to go through multiple purificationprocesses such as SNCR denitri?cation, semi-quenchtower cooling, bag ?lter dust removal, water washing,alkali washing, and activated carbon adsorptionin sequence to ensure that its emission indicatorsstrictly meet the special emission limit requirementsspecified in the Emission Standard of Pollutants forPetrochemical Industry (GB 31571-2015)
Silicone Business Segment
Waste heat recovery: the calcining furnace uses thegas and natural gas from the gas generator as theinitial fuel. The ?ue gas generated in the calcinationprocess is cooled down by a waste heat boiler andthen sent to the power plant for incineration throughpipelinesDouble exhaust gas treatment: the roasting furnace
uses the water atomization spray treatment methodand the electrostatic tar precipitators to carry outsecondary treatment of the asphalt smoke and SO2exhaust gas. Ningxin Carbon's calcination furnaces,roasting furnaces, and graphitization furnaceschannel all processed emissions (after dust removaland temperature reduction) to power plants forincineration via pipeline networksContinuous exhaust gas monitoring: both the
calcining furnace and the roasting furnace areequipped with continuous online monitoringequipment to strictly monitor the emissions ofparticulate matters, nitrogen oxides, and sulfurdioxide. We entrust a professional unit to conductquarterly testing in accordance with the requirementsof the pollutant discharge permit, and all indicatorsare satisfactory
Carbon Business Segment
Strengthening Compliance
Management
Re?ned Tracking andMonitoring
Zero Wastewater Discharge
Wastewater Monitoring Wastewater Recycling
All production wastewater in the industrial silicon and carbon business has been recycled, mainly including the water for raw silica materialwashing, equipment cooling water, and desulfurization water. After being treated by the wastewater treatment system, the production wastewater
is reused in the links such as silica washing, cooling circulating water, and sprinkling for dust suppression within the factory area
In the ?ue gas desulfurization treatment of the energy business, both wet desulfurization and dry desulfurization processes are adopted. For
wet desulfurization, we select a high-e?ciency desulfurizer, and fully use the wastewater to conduct ?ue gas treatment. After treatment, thewastewater is used for humidifying the ?y ash in the ash silo and the ash storage yard. In dry desulfurization, the treated industrial wastewater isreused for the preparation of hydrated lime in the desulfurization system. Both processes have achieved zero wastewater discharge
The silicone business installs an automatic monitoring systemto monitor various pollutant indicators in the wastewater inreal time and accurately, and conducts monthly, quarterly,and semi-annual environmental monitoring work to grasp thetrend of pollutant dischargeTo ensure the accuracy and reliability of the monitoring data,the Company regularly conducts manual monitoring work tocalibrate and supplement the online monitoring equipment
In the photovoltaic business, the reverse osmosis watergenerated during the production process is used fordilution and spraying in the scrubbing tower, and the steam
condensate water from winter heating is reused for purewater preparation. This e?ectively reduces wastewaterdischarge and improves the utilization rate of resources
Our production exhaust gas mainly comes from production, thermal power supply and other links. The main pollutants mainlyinclude sulfur dioxide, nitrogen oxides, inhalable particulate matter, Volatile Organic Compounds (VOCs), malodorous gases,and other pollutants. Hoshine Silicon has formulated exhaust gas management systems covering all operation points, includingtheEnvironmental Protection Management System, theAtmospheric Management System, and theExhaust Gas EmissionManagement System, to ensure that all exhaust gases are fully treated and emitted in compliance with regulations, and theemission concentration meets national standards.In order to reduce the emission of toxic exhaust gases during the operation process, according to the properties of di?erent exhaustgas pollutants, we select the corresponding best feasible solutions to carry out exhaust gas treatment work, continuously increaseinvestment in environmental protection, optimize the environmental protection treatment process, and add high-efficiencyterminal treatment devices. On the basis of meeting the standard emission requirements, we further reduce the concentration ofpollutants in the exhaust gas.
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Resource UsageHoshine Silicon actively explores e?ective ways to reduce resource utilization, scienti?cally and rationally plans and usesprecious resources such as water resources and packaging materials, and contributes to the construction of a resource-conserving and environment-friendly society.Usage of Water Resources
Hoshine Silicon strictly adheres to laws and regulations such as theWater Law of the People's Republic of China, theLaw of thePeople's Republic of China on Water and Soil Conservation, theWater Pollution Prevention and Control Law of the People'sRepublic of China, and theMeasures for the Implementation of the Water Drawing Permit System, and formulates targeted waterresource management guidelines, including theEnterprise Energy Management System. We attach great importance to and focuson optimizing water resource management throughout the entire value chain, strengthening control over the water use process,applying innovative equipment, and promoting awareness of water conservation, etc., to systematically improve the e?ciency ofthe Company's water resources management.Our types of water resources include tap water, river water, and reclaimed water, and the usage scenarios cover aspects such asproduct addition, process application, production assistance, cleaning, reclaimed water utilization in the production process,as well as daily life. At the water drawing end, we actively increase the utilization rate of reclaimed water; at the water use end,we are committed to reducing the water consumption of existing equipment through a series of technical transformations, andcontinuously improving the Company's water-conserving capabilities.
Water Resource Management Measures of Hoshine Silicon in 2024
Hydraulic turbine transformation project: the hydraulicturbine has been transformed. Compared with the same periodlast year, the transformed hydraulic turbine has reduced theoperation time of the cooling tower fan. At the same time, theplanned electric fan has been replaced with a hydraulic turbine,signi?cantly reducing energy consumption.
Circulating water system: the system consists of the waterfor the electric furnace body, the copper tiles of theelectric furnace, the taper sleeve, and the short circuitnetwork, as well as the cooling water for the transformeroil cooler. During the entire cooling process, an indirectcooling method is adopted to achieve the recycling ofcooling water.Plan for improvement of reclaimed water utilization rate:
Central Hoshine has formulated a "one enterprise, onestrategy" sewage treatment and recycling plan, analyzedthe water use scenarios, and formulated a plan to increasethe utilization rate of reclaimed water, ensuring compliantwastewater discharge.
Improvement ofWater Use E?ciency
Recycling of Water Resources
Packaging MaterialManagementHoshine Silicon continuously strengthens the sustain-able management of packaging materials. We strictlyabide by relevant laws and regulations in the Compa-ny's operation places, continuously promote the light-weighting and recycling of packaging materials, andare committed to reducing the environmental impactof packaging materials.The Company continuously optimizes the use of pack-aging materials. On the one hand, we implement ver-tical integration of the industry chain within the park,concentrating raw material processing, productionand processing, and finished product packaging in onearea for centralized management. On the other hand,we are committed to improving the recycling rate ofpackaging materials, recycling and reusing productouter packaging to reduce material waste.
Central Hoshine actively takes reduction and recyclablemeasures during the production and management ofbatteries. Optimizing the packaging quantity of PV cellincreases the capacity of a single package, saving packagingmaterials.Shanshan Silicon has improved the graphite electrode packagingby removing the wooden baffles at both ends of the graphiteelectrode and using reusable nylon cable ties for ?xation.
Western Hoshine replaces the original single-use cartonswith steel barrels to transport raw rubber, reducing the dailyaverage carton consumption.Western Hoshine reuses old ton barrels, aiming to reduceresource consumption during the operation process.Packaging Material Management Measures of Hoshine Silicon in 2024
Reduction of Packaging Materials
Recycling of Packaging Materials
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Excellent Hoshine,Scaling New Heights
Social Part
UN Sustainable Development Goals Corresponding to This Chapter
Hoshine Silicon adheres to the development concept of "seeking for survival with quality,promoting development through technology, and taking customers as foundation" tocontinuously pursues excellent product quality and stable product performance andaccelerates the application and transformation of scienti?c and technological achievements,thus continuously improving the customer experience. At the same time, we are well awarethat the innovation ability of employees is the key to promoting the rapid development ofthe industry. The Company adheres to the people-oriented strategy and gives back to societywith practical actions.
Quality ManagementCustomer ExperienceSupply Chain SecurityCaring for EmployeesCommunity Co-construction
Excellent Hoshine, Scaling New Heights/
Social Part
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As one of the enterprises with the most complete business chain and the largest production scale in China's silicon-based newmaterial industry, we mainly manufacturer two categories of products: silicon metal and silicone, with a wide range of application?elds. We attach great importance to product quality and are committed to implementing strict and comprehensive control overthe product quality at every link to provide safe and stable products.
Quality Management and Control
Construction of Quality Management SystemHoshine Silicon strictly complies with applicable quality and safety laws,regulations, and industry standards such as theLaw of the People'sRepublic of China on Product Quality. According to the characteristics ofdi?erent products, the Company formulates management and supervisionsystems and procedures such as theProduct Quality Management System,theInspection Management System for Raw Materials, Auxiliary Materialsand Products, and theUnqualified Product Control Procedureto meetvarious industrial quality standards of the Company.The Company strictly controls product quality, sets quality goals aimedat achieving "100% qualified rate of products leaving the factory", "0occurrence of quality and safety accidents", and "100% handling rate ofuser complaints",
and links these goals with the performance of relevantresponsible persons to e?ectively ensure product quality.We have established a complete quality management system and actively implemented the ISO 9001 quality management systemto reduce the potential risks of product quality problems and e?ectively safeguard the rights and interests of customers. As of theend of the Reporting Period, among the Hoshine Silicon's 12 subsidiaries in various business segments, 46% have obtained the ISO9001 quality management system certi?cation.
Quality goals: Product quali?cation rate and customer complaint rate goals have been established for silicone products, while corresponding product quali?cationrate goals have been set for carbon products.
Hoshine Silicon utilizes high-quality quartz mine as raw material to produce silicon metal.
Hoshine Silicon's silicone products mainly include silicone rubber, silicone sealant, silicone oil, fumed silica, and others.
The carbon production process of the Hoshine Silicon mainly includes four production stages: forming, roasting, graphitization, and finished productmachining. We timely revise the process regulations according to production requirements to ensure the production process is controllable.
Hoshine Silicon, using materials such as monocrystalline silicon wafers produced upstream, engages in the production of mid-stream photovoltaic cell (double-sided monocrystalline N-type cell) and is involved in the solar panel (high-e?ciency N-type solar panel products) industry.
Full-process Product Quality ManagementHoshine Silicon continuously improves the construction of the quality management system, conducts full-process quality controlfrom raw material procurement, production and processing, and ?nished product acceptance to product sales, etc., thus ensuringthe e?ective implementation of quality management and control.
Silicon Metal Segment
Silicone Segment
Carbon Segment
Photovoltaic Segment
Managementsystem
Silicon Metal ProductCustomer ComplaintManagement System
Quality ManagementSystem for SiliconeSealant Project
Accident ManagementRegulations, etc.
Quality Management andControl of Incoming RawMaterials
Control over the ExecutionStandards of the ProductionProcess Technology in theProduction Workshop,etc.
Unqualified ProductControl Procedure
Regulations onIncoming InspectionManagement
ManagementSpecification forAbnormal Reliabilityof Solar panelProducts, etc.
ManagementMeasuresfor the RawMaterialProcurementLink
After all raw materialsenter the factory,dedicated personnelwill take samples andsend them to the qualityinspection center forlaboratory testing,preventing unquali?edraw materials from beingput into the productionline
The particle size ofraw materials will beanalyzed to control theparticle size distributionensure uniform mixing,avoiding the in?uenceof too coarse or too ?neraw materials on thereaction in the furnace
All raw materials enteringthe production line willbe strictly screened andinspected to evaluatethe quality indicators(such as purity andimpurity content) of eachbatch of raw materialsto ensure that theymeet the productionrequirements
When the materials enterthe factory, samples will betaken and tested for eachvehicle to prevent the mixingof unquali?ed raw materials
For the quali?ed rawmaterials, they must befully covered for stackingto prevent impurities fromentering and a?ecting theusage e?ect
Before use, the laboratorypersonnel should benoti?ed to take samplesfor testing. Only after themain physical and chemicalindicators are quali?ed canthe raw materials be put intoproduction
Unannouncedinspections ofsuppliers will beconducted tophysically inspecttheir productionor operationsites to ensurethe continuouscompliance andquality reliability ofsuppliers
ManagementMeasures forthe Productionand ProcessingLinks
During the smeltingprocess, monitor certainprocess parametersto ensure appropriatetemperature and stableoperation of graphiteelectrodes and otherequipment
More advancedseparation andpuri?cation technologiesare used to improvethe monomer synthesise?ciency and productpurity
An automated controlsystem is introducedto enhance operationaccuracy andconsistency
During production, theimplementation of variousspeci?ed process parametersis tracked, including testingthe product appearance,size, and usage indicators inthe early stage and analyzingthem, checking the internalstructure, taking samplesfrom each part, calculatingthe bulk density, andchecking the homogeneityof each part of the product,ensuring product quality
Irregular process inspectionsare conducted on thecharging temperature,spacing, covering materialthickness, temperaturecontrol, etc.
A special productquality improvementteam is established tosuccessively improvethe problems foundin the productionprocess, including theseries connection andrework improvement,fragmentationrate improvement,and scrap rateimprovement of solarpanel
Quality ManagementHigh-quality product quality is the cornerstone of the healthy development of an enterprise. Hoshine Silicon adheres tothe guidance of science and technology and innovation-driven development. The Company continuously explores newtechnological paths and management models, focuses on innovation, and strives for quality improvement, contributinggreat strength to promoting industrial innovation and upgrading and achieving sustainable high-quality development.
Quality Information Management System (LIMS) Empowers Quality Management WorkThe quality information management system (LIMS) of HoshineSilicon integrates various quality testing data during theproduction process and realizes full-process quality monitoringfrom raw materials to ?nished products. It can promptly detectquality problems through data analysis and assist in root causeanalysis to continuously improve the production process.At the same time, LIMS standardizes the quality managementprocess of the factory, and establishes a quality traceabilitysystem, enabling quick location of the defective batches andsources. As of the end of the Reporting Period, this system hasbeen widely applied in business segments such as silicone,silicon metal, and energy.
Hoshine Silicon's Quality Information Management System(LIMS)
Quali?ed rate of productsleaving the factory
%
Occurrence of qualityand safety accidents
Handling rate of usercomplaints
%
Company Quality Targets
Excellent Hoshine, Scaling New Heights/
Social Part
5051
032024 ｜Sustainability Report
8D Process: this includes team formation, problem description, emergency response, root cause analysis, permanent improvement plan, implementation ofimprovement measures, preventive measures, team recognition and future planning.
Quality Culture ConstructionIn order to enhance the quality risk awareness and quality management capabilities of all employees, Hoshine Silicon organizessystematic and professional quality training and conducts examinations every year. The training covers content such as the qualitymanagement system, quality control methods and techniques, quality inspection and evaluation, and quality risk management,cultivating the quality awareness and skills of employees and partners to ensure the continuous improvement of product quality.In addition, the Company also regularly carries out the "Quality Month" activity, and arranges special training for operators tofurther enhance their professional skills and practical operation abilities.
Quality Training of Hoshine Silicon in 2024Central Hoshine Establishes a Photovoltaic Laboratory
The photovoltaic laboratory is an independent internal testing institution specializing in the testing of solar photovoltaicproducts. It complies with the management requirements of ISO/IEC 17025 and is mainly responsible for materialcharacterization testing, solar panel reliability testing, standard plate management and transfer, and failure analysis. It hasleading product testing capabilities in the industry.The laboratory can carry out dozens of tests in materials, performance, safety, physics, optics, environment, and outdoortesting, and possesses more than one hundred sets of domestic and foreign advanced testing and analysis equipment.The testing center has full-time laboratory management, inspection, and research analysis personnel who are pro?cient invarious testing and analysis technologies of photovoltaic materials and panels, providing strong support for the productquality of photovoltaic cell and solar panel.
Silicon Metal SegmentSilicone SegmentCarbon Segment
Photovoltaic Segment
ManagementMeasures forthe FinishedProductAcceptanceLink
The quality inspection centerinspects the ?nished siliconproduced every day to ensurethe quality of the ?nishedproducts;
Regular quality analysismeetings and furnace mastermeetings are held to discussthe in?uencing factors ofproduct quality and therecti?cation plan
Modern qualitytesting equipmentand technologies areintroduced, includingGas Chromatography-Mass Spectrometry (GC-MS), and InductivelyCoupled Plasma AtomicEmission Spectrometer(ICP);
Any unquali?edproducts are timelymarked, with thecorresponding disposalmethods proposedand timely isolation forstorag
In order to improve productquality, reduce productresistivity, and increasebulk density, the later-stagequality and usage data ofproducts are compared andfed back;
Defects in products duringprocessing are investigated,including those caused bymanual operations andinherent product defects,for full-process recti?cation.Irregular coordination testsare conducted to verifywhether processing accuracymeets standards
Inspectors are requiredto regularly study andtake exams on qualitystandards to improvetheir professional skills;
The work connectionof each quality modulein the workshop isimproved. For example,the manufacturingprocess positions andinspection positionsexchange jobs forlearning purposes , andmajor abnormalities fedback are timely dealtwith
ManagementMeasures forthe ProductSales Link
A product recall mechanism isestablished. When a productrecall event occurs, relevanttechnical and productiondepartments are organizedto conduct strict qualityinspections on the recalledproducts and analyze theproblems throughout theproduction process;
Corrective measures areinvestigated and formulated
according to 8D procedures
A strict product track-ing system is imple-mented. Once a prob-lem is found, it can bequickly located andhandled to reduce therisk of defective prod-ucts flowing into themarket
Each finished product mustgo through strict testing, andonly after all indicators arequalified can a certificate ofconformity be affixed;
Transportation protection isprovided in a way that bufferdevices are added to preventthe products from beingdamaged due to rolling backand forth
Recall process duringtransportation: whenunqualified productsare found among theshipped products,a risk assessmentis conducted andsuch products willbe disposed of incompliance with therisk assessment resultsand actual situations;
Disposal of unqualifiedproducts after delivery:
correspondingmeasures forrectification are takenwhen unqualifiedproducts are found
It mainly revolves around the standards and principles ofthe quality management system. The content includesthe basic knowledge, framework, requirements, andimplementation methods of the quality managementsystem, ensuring that the requirements of the qualitymanagement system are followed during the workprocess, thus improving the quality of productsand services.
The content covers the standards, methods, andevaluation techniques of quality inspection. Through thetraining, participants learn to use appropriate inspectiontools and equipment for quality inspection, and at thesame time, master the methods and techniques ofproduct quality evaluation to ensure that products meetquality requirements and customer expectations.
The content focuses on specific quality control meansand techniques, such as Statistical Quality Control (SQC)and process quality control. Through such training,participants can master various quality control toolsand techniques to identify problems and take e?ectivemeasures for improvement in actual operations.
The content includes how to identify quality risks,assess the risk level, and formulate risk controlmeasures. Through the training, participants canenhance their awareness and response capabilitiesto quality risks, ensuring the quality and safety ofproducts and services.
Training of Quality Management System
Quality Inspection and Evaluation Training
Quality Control Methods and Techniques Training
Quality Risk Management Training
Excellent Hoshine, Scaling New Heights/
Social Part
5253
032024 ｜Sustainability Report
Silicon Metal SegmentThe production technology of silicon metal is relatively mature. In 2024, Hoshine Silicon carried out a series of R&D optimizationson the production technology and added intelligent and automated systems, greatly improving production e?ciency, saving laborcosts, and e?ectively increasing the recovery rate of materials.
Silicon Metal R&D Measures in 2024
The operation of the traditional silicon metal furnace depends on manual control, which has the problems of lowe?ciency and large errors. We use a DSC integrated control system to automate key operations such as graphiteelectrode lifting & lowering and pressing & releasing, transformer gear adjustment, and high-voltage power onand o?, reducing human intervention. This technology improves operation accuracy and e?ciency, reduces therisk of manual operation, and realizes intelligent control of the production process.
DCS (Distributed Control System )
During the operation of the silicon metal furnace, data such as voltage and current ?uctuate frequently, directlya?ecting the judgment and control of the furnace condition. We use a ?ve-stage ?ltering technology to processreal-time data, refreshing it every 0.5s to ensure that the data is stable and can accurately re?ect the changesin the furnace condition. This technology improves the reliability of the data, provides an accurate basis for themonitoring and adjustment of the furnace condition, and ensures the stability of production.
Filtering and Processing Data
The traditional power distribution logic relies on fixed parameters and is difficult to adapt to the changes incomplex working conditions, resulting in high energy consumption and low e?ciency. We dynamically calculateand set parameters based on the proportional relationship between current and voltage, realizing the automaticadjustment of the graphite electrodes and the linkage of the transformer gear after the power setting, achievingpower distribution balance. This technology e?ectively optimizes the energy consumption distribution, improvesproduction e?ciency, and reduces operating costs.
Optimizing Power Distribution LogicWe regard innovation as an inherent requirement for the high-quality development of the industry. We have established acomplete R&D innovation system and formulated systemssuch as theEnterprise R&D Center Research and DevelopmentOrganization Management Systemand theScienti?c ResearchProject Application Management Systemto standardize theCompany's R&D innovation processes. The Company has builta bottom-up R&D innovation management structure. Eachbusiness division has set up technical R&D-related departmentsand put forward further requirements for R&D innovationaccording to the characteristics of its own products. The personin charge of each business division reports the relevant R&D
innovation situations to the Board of Directors after collectingthem.At the same time, Hoshine Silicon has built a completeinnovation platform for employees, continuously increasedR&D investment and offered R&D talents. The Company hasformulated internal systems such as theIntellectual PropertyWork Management and Incentive Systemand theTechnicalR&D Reward Management Measuresto reward members ofthe project R&D team and stimulate the vitality of the scienti?cresearch team, driving the development of the enterprisethrough innovation.
R&D Innovation SystemSince its establishment, Hoshine Silicon has grown into a leading enterprise in the fields of silicon-based new materials suchas silicon metal, silicone, and poly-silicon. Focusing on silicon-based new materials and photovoltaic new energy as its maincore businesses, the Company continuously conducts industrial extension and technological development. We adhere to theinnovation-driven development strategy, continuously deepen technological and industrial upgrading, and strive to contributemore wisdom and strength to the development of the global silicon-based new material industry and the energy ?eld.During the Reporting Period, the Company has ?led a total of 180 patents, including 41 invention patents. Of these, 113 patentswere granted authorization, with 16 being invention patents. The Company actively contributed to industry standardization byleading or participating in the formulation or revision of 60 technical standards. Additionally, over 50 scientific and technicalarticles were published, supported by R&D investments totaling RMB 570 million. As of the end of the reporting period, theCompany maintained a robust patent portfolio with 675 valid patents in force, including 87 invention patents.
Total patents applied
Pcs
Including invention patents
Pcs
Total patents granted
Pcs
Number of patents granted to the Company
Pcs
During the Reporting PeriodAs of the end of the Reporting Period
Excellent Hoshine, Scaling New Heights/
Social Part
5455
032024 ｜Sustainability Report
Photovoltaic SegmentHoshine Silicon focuses on cultivating "new quality productive force" and actively develops clean energy products with theadvantages of advanced technology, high quality, high e?ciency, and sustainability. Currently, Hoshine Silicon has achieved theR&D and production of products across the whole photovoltaic industry chain, including poly-silicon, monocrystalline silicon wafer,PV cell and solar panel. Among them, part of the products have been applied in the market. The Company will continue to promotetechnological innovation and product upgrading in the photovoltaic industry chain, leading the green energy transformation, andstriving to build a clean and beautiful world with the whole society.
Energy SegmentSilicon Carbide Segment
Guided by the market and relying on technology, Hoshine Silicon improves the scienti?c and technological performance of the
Company's main business through the transformation of technological achievements, and has achieved remarkable results.The Company Establishes the "Clean Coal-?red Power Generation Research Center" inCollaboration with Shihezi University
Shanshan Electric Power has established its own R&D center and established the "Clean Coal-fired Power GenerationResearch Center" with Shihezi University. The Company carries out joint research on key parameter testing technologiesin the coal-?red power industry, and the construction of scienti?c and technological innovation capabilities in metrologyand testing in the coal-?red power industry, etc., and actively promotes the transformation of scienti?c and technologicalachievements, increasing the intensity of technology research and development as well as application and promotion.
Photovoltaic R&D Innovation Achievements in 2024
Silicon oxide/poly-silicon layer depositiontechnology
N-type emitter technology
High sheet resistance dense grid technology
PV Cell Industry
PV Cell Industry
Solar Panel Industry
Solar Panel Industry
Development of products preventing dust depositionand snow accumulation
Development of all-black series module products
Development of polyurethane composite framematerials
Hoshine's Silicon Carbide R&D Process
The 6-inch silicon carbide substrateshave been fully mass-produced, witha carbide yield rate of over 95% and astable epitaxial wafer yield rate of over98%, which is at the leading position inthe industry
In terms of the R&D of 8-inch siliconcarbide substrates, the Company hasstarted small-batch production thanksto its self-developed system and e?cientR&D
Silicone SegmentBased on the mission of "Concentrate on silicon-based materials to create a wonderful life", Hoshine Silicon gives full play tothe production capacity advantages of the Company's existing silicon-based new material production base, breaks through thetechnical barriers of key materials and equipment, and realizes the upgrading and improvement of product processes.
Silicone R&D Achievements in 2024
In the ?eld of third-generation semiconductors, the Company has now fully mastered the core process technologies of the wholeindustry chain of silicon carbide materials, including raw material synthesis, ingot growth, substrate processing, and wafer epitaxy.The Company has broken through the technical barriers of key materials (porous graphite, coating materials) and equipment.The yield rate of the Company's silicon carbide products is at the leading level among domestic enterprises, and in terms of keytechnical indicators, the Company has caught up with the level of international leading enterprises.
Increasing production and reducing consumptionduring the long-cycle operation of silicone monomersynthesis
Innovative application of the heat pump distillationsystem in the distillation process of silicone monomers
Development of fumend silica with multiple speci?csurface area models
Quality improvement of vinyl-terminated silicone ?uidproducts
Development of the continuous production processtechnology of dimethyl silicone oil
Development of liquid silicone rubber forencapsulation of photovoltaic modules
Development of functional silicone oil seriesproducts
Development of silicone sealants and pottingsealants for silicone solar panel
Development of high-transparency extrusionprocess silicone rubber
Technology Innovation New Product R&D
Excellent Hoshine, Scaling New Heights/
Social Part
5657
032024 ｜Sustainability Report
Digital ConstructionAs a technology innovation-oriented enterprise, Hoshine Silicon achieves the deep integration of IT (Information Technology), CT(Communication Technology), and OT (Operational Technology) through digital strategies, digital thinking, digital technologies,etc. We clarify the principles and guidelines for promoting intelligent manufacturing, and build nine systems for the intelligentmanufacturing base to achieve all-weather safe and e?cient production. We also provide a comprehensive solution that can beused for reference and co-creation for the digital transformation of the industry.
Nine Information Systems of the Intelligent Manufacturing Base
Hoshine Silicon's Intellectual Property Management System
Key Projects and Standard FormulationIn recent years, Hoshine Silicon has established R&D platforms such as the "Hoshine Silicon-Based New Materials ProvincialHigh-Tech Enterprise Research and Development Center", the "Zhejiang Hoshine Silicon-based New Materials ResearchInstitute", the "Zhejiang Provincial Key Enterprise Research Institute of Silicon-Based New Materials, Hoshine SiliconIndustry", the "Zhejiang Provincial Enterprise Technology Center", and the "National Postdoctoral Workstation".To further improve industry standards and standardize the production process, the Company has led or participated in theformulation or revision of more than 50 national, industry, or group standards, including theNorm of Energy ConsumptionPer Unit Product of Dimethyl Cyclosiloxane, theSilicon Metal, theMethods for Chemical Analysis of Silicon Metaland theCleaner Production Evaluation Indicator System for Dimethylsiloxane Enterprises .With the support of the continuously improved R&D platforms and industry standards, we have completed the nationaltorch program industrialization demonstration project of "Annual Production Capacity: 3,000 Tons of Cosmetic GradeDecamethylcyclopentasiloxane (D5)", major scientific and technological projects in Zhejiang Province such as "Research,Development, and Industrial Application of Key Technologies for Large-Scale Silicone Monomer Synthesis", and a numberof scientific and technological plan projects in Jiaxing City such as "Research on Catalytic Purification Technology forDimethyldichlorosilane and Its Industrial Application". Many projects such as "High-quality Fumed Silica HS-200" and"Dimethyldichlorosilane" have been listed as new provincial industrial products in Zhejiang Province.Industry CooperationHoshine Silicon continues to strengthen its close cooperation in production, education, research, and application with well-knownscienti?c research institutions in the industry. The Company builds implementation bases for the incubation and industrializationof new products and new technologies, converts scientific and technological achievements into productive forces, and turnsintellectual property rights into economic bene?ts, achieving sustainable development.As of the end of the Reporting Period, the Company has established R&D institutions such as the "Zhejiang Provincial KeyEnterprise Research Institute of Silicon-Based New Materials", the "Zhejiang Provincial Postdoctoral Workstation", and the"Provincial Academician and Expert Workstation", and R&D platforms such as the "Hoshine Silicon-Based New Materials ProvincialHigh-Tech Enterprise Research and Development Center", the "Zhejiang Hoshine Silicon-based New Materials Research Institute",the "Zhejiang Provincial Key Enterprise Research Institute of Silicon-Based New Materials, Hoshine Silicon Industry", the "ZhejiangProvincial Enterprise Technology Center", the "Zhejiang Provincial Postdoctoral Workstation", and the "Provincial Academicianand Expert Workstation". It has carried out industry-university-research cooperation with scientific research institutions suchas the Institute of Process Engineering, Chinese Academy of Sciences, Zhejiang University, East China University of Science andTechnology, and Hangzhou Normal University.
Collaborative Development Project with Shihezi University: "Research on the Enhancementof the Quality of Vinyl Terminated Silicone Fluid and Hydrogen-terminated Silicone Oil"
Cooperation with Hangzhou Normal University on the project "Research on the ProductionControl of 110 Silicone Rubber and the Structured Control of Silicone Rubber"
During the production of vinyl terminated silicone ?uid, the silica powder ?ller can cause the mixture to suddenly thicken, whichin turn impairs the mixing e?ect of subsequent additives and the quality of the ?nal product. Furthermore, when producingtextile auxiliaries using hydrogen-terminated silicone oil, there are occasional cases of incomplete polymerization. This leads topoor transparency and a rough hand-feel of the ?nal product, thereby a?ecting the softness of the textiles.To address silicone oil thickening issues, we utilize novel catalytic technologies and equipment to enhance the molecularweight distribution of our products and reduce residual impurities. In response to incomplete polymerization, we optimizereaction conditions and implement control over key raw material indicators, as well as develop a stepwise polymerizationprocess, to ultimately achieve our objectives.
Through the research on the sources of terminal hydroxyl groups and terminal hydroxyl group removal agents, the hydroxyl groupcontent can be reasonably controlled to improve the structuration and mechanical properties of the silicone rubber.In response to the situations such as hardening during the storage of silicone rubber compounds, decreased plasticity, gradual loss ofprocessability, di?culties in mold ?lling, and the emergence of serious "structuring" issues, we have employed appropriate structurecontrol agents and formulated suitable recipes. Coupled with corresponding processing techniques, we have ultimately managed toextend the storage period of the silicone rubber to 12 months.
Plant ManagementSystem(PMS)Electronic OperationTicket(EOT)
Logistics TruckPortal(LTP)WarehouseManagement System(WMS)
Hazardous Waste
System(HWS)
Weighing Information
System(WIS)
ManufacturingExecution System(MES)
Laboratory InformationManagement System(LIMS)
Double Prevention
System(DPS)
Intellectual Property ProtectionHoshine Silicon places great emphasis on intellectual property protection. It has formulated internal regulations including theIntellectual Property Management System,Intellectual Property Management Procedure, andIntellectual Property ManagementManualto improve its intellectual property compliance management system and has developed a well-structured intellectualproperty management structure.
The highest organ responsible for intellectual property-related work.
Oversee the implementation of intellectual property work and the progressof relevant plans.Organize and establish intellectual property archives management system.Plan evaluation, licensing, transfer, and other matters of intellectualproperty, and report to the Board of Directors.Designate intellectual property management staff who are under the leadership of thegeneral manager of the subsidiary.Implement and enforce the guidelines for intellectual property management, being responsiblefor matters such as the application, registration, and maintenance of intellectual property.
Board of Directors
Legal A?airsDepartment
Each Subsidiary
Excellent Hoshine, Scaling New Heights/
Social Part
5859
032024 ｜Sustainability Report
The Company safeguards its innovative outcomes and the legitimate rights and interestsof its intellectual property through a diverse range of measures. Meanwhile, we activelyprovide intellectual property training to relevant internal sta? to enhance their awareness ofintellectual property. This not only prevents others from infringing on our intellectual propertybut also ensures that our employees do not infringe on the intellectual property of others.
Hoshine Silicon's Intellectual Property Management Measures
Customer Service Safeguard Measures of Hoshine Silicon
Customer Feedback Channels
Clearly de?ne the employment conditions for practitioners, and comprehensively considerthe educational attainment, training effectiveness, work experience, etc. of incomingemployees.
Clearly stipulate the signing of con?dentiality agreements, with more stringent requirementsfor personnel in special positions (such as those related to technology).
Before ?ling a patent application, conduct a patent search, prepare a patent search report,patent disclosure statements, drawings, etc., and submit them to the patent applicationagency.
Regularly monitor and pay attention to the intellectual property trends in the same andrelevant industries, keep abreast of the product R&D trends in these industries, and promptly?le intellectual property applications and carry out risk prevention.
Once an infringement incident is detected, our company will get in touch with the other party,communicate in a friendly manner to handle the situation, and safeguard the Company'slegitimate rights and interests.
Due Diligence
Employee Non-Disclosure Agreement
Patent Search and Analysis
Risk Warning
Dispute Resolution
We have established a complete customer service system and formulated internal regulations such asManagement Policy ofCustomer Service Departmentto standardize customer service operations. Through a variety of initiatives, we safeguard the rightsand interests of customers and consumers.
Customer Service
Customer Complaint HandlingWe are committed to continuously improving our products and services by establishingCustomer Complaint Handling Policy
and developing diversi?ed customer feedback channels to ensure timely and comprehensive understanding of, and response to,customer needs and feedback.
Customer ExperienceHoshine Silicon, adhering to a customer-oriented philosophy, constantly strives for higher-quality services. By perfecting thecustomer service system, conducting responsible marketing, and protecting customer privacy and security, it spares no e?ortto o?er customers an outstanding product-using experience.
SiliconeCloud Online
EmailOn-site VisitWeComTel.
Periodically summarize theprocesses and formulationsof the Company to providecustomers with pre-salesselection guidance.
Hold monthly meetingsto review customerservice-related matters,and conduct semi-annualcustomer service summarymeetings.
Provide new employees with aone - month customer servicetraining upon entry, and alsoo?er regular customer serviceknowledge training to veteranemployees.
Coordinate with theproduction factory toensure rapid problemroot cause tracing andcontinuous improvementof customer satisfaction.
Excellent Hoshine, Scaling New Heights/
Social Part
6061
032024 ｜Sustainability Report
In handling customer complaints, Hoshine Silicon places emphasis on actively listening to the concerns of customers andconsumers, examining the complained products and recording relevant information. Through efficient complaint resolutionmechanism, we safeguard the legal rights and interests of customers and consumers and conduct follow-up visits to maintainstrong customer relationships. When customer complaints occur, externally, we strictly adhere to the customer complaintmanagement process to address the complaints. We also analyze the reasons for the complaints to continuously enhancecustomer satisfaction.
Hoshine Silicon's Customer Complaint Handling Process
Customer Privacy ProtectionWith the continuous progress of digitalization, Hoshine Silicon attaches great signi?cance to the protection of customer privacyand the security of internal data. It has been continuously ramping up its e?orts in safeguarding privacy and data security, thusproviding a strong safeguard for its high-quality development. We have incorporated customer privacy protection into theTradeSecret Protection Management Policyand implemented a series of measures to safeguard customer privacy and data security.
Customer Privacy Protection Measures of Hoshine Silicon
Hoshine Silicon has always adhered to the concept of responsible marketing and is committed to providing consumers withauthentic and reliable products. In our marketing, advertising, and sales practices, we strictly abide by relevant laws, regulations,and industry norms in the regions where we operate. In line with compliance requirements, we have established a strict reviewprocess to ensure that all marketing materials can only be released after being approved by authorized management personnel ofthe Company.We regularly o?er training on responsible marketing to all employees involved in marketing activities. Newly hired employees arerequired to participate in training on matters needing attention in product marketing and conduct on-site learning at the factory,strengthening our stance on responsible marketing. During the Reporting Period, no major marketing-related violations occurredat Hoshine Silicon.Furthermore, Hoshine Silicon actively participates in a series of important exhibitions such as the Silicone Professional Exhibition,the Activated Carbon Exhibition, and the International Photovoltaic Power Generation and Smart Energy Exhibition, demonstratingthe Company's product strength and an open-inclusive attitude.
Responsible Marketing
Hoshine Silicon Makes a High-pro?le Debut at the SNEC 2024 with its New ProductsIn June 2024, the SNEC 17
th
(2024) International Photovoltaic PowerGeneration and Smart Energy Conference & Exhibition, one of the mostin?uential photovoltaic events globally, was grandly held at the NationalExhibition and Convention Center (Shanghai). This exhibition gatheredover 3,500 domestic and foreign enterprises, with over 500,000 visitorsand more than 5,000 experts and scholars. It jointly created a vast andprofessional international communication platform for photovoltaicenterprises and industry audiences.As an integrated leader in the silicon-based new material industry, HoshineSilicon, a new entrant in the photovoltaic field, proudly presented theHoshine Good Life Pavilion. It made a high-pro?le appearance at the SNEC2024 with its new products, the 210R rectangular PV cell and anti-dustself-cleaning solar panels, demonstrating Hoshine's strong strength andinnovative achievements in the photovoltaic ?eld and injecting powerfulimpetus into the development of green and clean energy.
Complaints are transferred according to di?erentcategories (quality problems, logistics problems,
management problems, etc.)
Once the salesperson receivesa customer complaint,they collate the complaintinformation (includingproduct, model, quantity,photos, etc.) and initiate thecomplaint handling process
Classify and Transfer Complaints
The production departmentimmediately investigates theroot cause of the customer'scomplaint through means suchas monitoring and operationrecords. After identifying thecause, the team membersconduct analysis and discussion
Analyze and InvestigateCausesDevelop PreliminarySolutions
The factory, business division,and sales department work incoordination to put forwardsolutions. The salespersonthen communicates withthe customer to resolve theproblems
Communicate andResolve ProblemsSummarize ComplaintInformation
The Company collects necessary customer information and related personal data solely for legitimatebusiness operations and justifiable purposes. It also takes stringent measures to ensure that userprivacy data is properly protected and managedThe Company employs a data leakage prevention system, installs encryption software on all officecomputers, manages decryption requirements and permissions in a strict manner, and implements a"whitelist" policy for mobile storage devices
When an employee discovers that there is a possibility of the Company's trade secrets being leaked,they are obliged to report to the department head and take immediate preventive measures. If theCompany's trade secrets have already been leaked, both the discoverer and the relevant parties areobligated to report it immediately and take remedial measuresThe Company issues documents containing regulations related to customer privacy protection andconfidentiality. Each department organizes all its staff to study the relevant content and conductsirregular spot checks
After the process is submittedand reaches the after-salesaccount manager stage, theafter-sales account managerproposes a preliminarysolution
Excellent Hoshine, Scaling New Heights/
Social Part
6263
032024 ｜Sustainability Report
Supplier Full-process ManagementHoshine Silicon places great emphasis on supplier management. It strictly complies with laws and regulations such as theBiddingLaw of the People's Republic of China, revises and implements theSupplier Management Rules, and exercises full-process controlover various aspects including supplier admission, assessment, and exit.We have refined and updated theSupplier Code of Conduct, which covers all suppliers, including those providing packagingmaterials, auxiliary materials, electrical instruments, equipment, and raw materials. This code standardizes suppliers' behaviorsin the ESG field and incorporates the assessment and evaluation of suppliers' sustainable development into the full-processmanagement, aiming to build a responsible and sustainable supply chain.Supplier AdmissionAt the sourcing stage, we conduct a preliminary review ofthe documents submitted by suppliers according to theadmission requirements for different categories. Suppliersthat meet the admission thresholds will go through theapproval process within the system, and preference will begiven to those with better ESG performance in aspects suchas environmental management, safety management, andquality management systems. We adhere to the principleof local and nearby supplier procurement. Through a fairand just admission evaluation mechanism, we prevent andmitigate potential adverse impacts that the supply chain mayhave on Hoshine Silicon.
At the certification stage, Hoshine Silicon conducts acomprehensive, objective, and targeted overall evaluation,assessing suppliers' qualifications from dimensions such asproduct quality, business risks, and risk control capabilities.In 2024, the Company formulated theSupplier CategoryUpgrade and Downgrade Standards, which clearly definethe admission standards for di?erent categories of suppliers,enabling re?ned and standardized management of supplierquali?cation information.
Supplier AssessmentAt the evaluation stage, we implement hierarchicalmanagement of suppliers and carry out diversi?ed audit forsuppliers of di?erent levels in accordance with theSupplierCategory Admission and Upgrade and Downgrade Standards.We require all suppliers to fill out theSupplier EvaluationFormand conduct regular product quality and safety auditsto ensure the quality and safety of the products and servicesprovided by them.At the performance evaluation stage, Hoshine Siliconconducts an annual performance assessment of itscooperative suppliers based on their comprehensiveperformance in dimensions such as business operations,technology, product quality, safety, environmental protection,and sustainable development management. According to theassessment scores, suppliers are classified into categoriessuch as admitted suppliers, qualified suppliers, excellent
suppliers, and strategic partners. Under the same applicationconditions, we will give priority to suppliers with betterperformance grading results, so as to encourage suppliersto continuously enhance their sustainable developmentcapabilities.Meanwhile, the Company has established a supplier riskmanagement mechanism and analyzes and evaluatesthe potential risks of suppliers. We have formulated theStandards for Factory Inspection Forms and SampleSubmission by Category. Through regular reviews, follow-upon improvements, on-site inspections and visits, and controlof quali?cation validity periods, we enhance the e?ectivenessof supplier risk management, ensuring that supplier quality,compliance, and risk prevention and control meet theCompany's standards.
Supplier ExitFor suppliers that do not pass the performance assessment, Hoshine Silicon will suspend procurement and immediately demandrecti?cation. Suppliers that meet the recti?cation requirements can have their quali?cation recon?rmed. If a supplier fails to carryout recti?cation in a timely manner or fails to meet the recti?cation requirements, it will be phased out after approval throughthe established procedures. In addition, we have implemented a supplier reward and punishment management mechanism,established a violation management and blacklist mechanism to restrain suppliers' illegal and unethical behaviors. Suppliers withserious violations will be promptly removed from the supply chain, optimizing supplier resources.Sustainable Supply ChainHoshine Silicon strengthens the development of a clean, transparent, green, and healthy supply chain. We continuouslystandardize supplier management to ensure the stability of the supply chain, promote clean procurement, and work together withsupplier partners to advance the concept of sustainability and achieve collaboration and mutual bene?ts.
Human Rights Risk Control in the Supply Chain
To further control human rights risks in the supply chain and ensure the long-term sustainable development of the supply chain,Hoshine Silicon has established a supplier compliance system against forced labor and formulated theMeasures for SupplierInternal Risk Management, comprehensively strengthening the management and prevention of human rights risks in the supplychain.
Human Rights Risk Control Measures in the Supply Chain
Supply Chain Security
Effective supply chain management is a pivotal element for the Company's business continuity and sustainabledevelopment. Hoshine Silicon attaches great signi?cance to the sustainable development of its supply chain. It continuouslyoptimizes the supplier management system and integrates the ESG concept into the full lifecycle management of suppliers,ensuring the high-quality and stable development of the supply chain.
In accordance with relevant rules and regulations, we identify potential forced labor risks in the supply chain. Whensuch risks occur, we take corrective actions through processes such as assessment, investigation, recti?cation, and re-examination to address the forced labor risks in the supply chain and implement corresponding corrective measures
We refer to the 11 forced labor indicators of the International Labour Organization (ILO) and require that suppliers,factories, and their partners post workplace regulations that include these indicators
We further extend the training program on labor rights to its supply chain. The training focuses on providing complianceadvice in areas such as labor rights, interpretation of forced labor indicators, and health and safety, while also sharingexperiences in implementing the Supplier Code of Conduct
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Clean ProcurementHoshine Silicon has always regarded honesty andtrustworthiness as the guiding principles for its businessoperations. It has formulated theSupplier Code of Conductand required all suppliers to fill out theSupplier Codeof Conduct Questionnaire. This ensures that suppliersunderstand and pledge to abide by our ethical and businessnorms, jointly maintaining a fair, transparent, and honestsupply chain environment.We firmly adopt a zero-tolerance stance towards fraud andmalpractice in the procurement process. All suppliers are
required to comply with anti-corruption regulations and signthe Supplier Anti-corruption Commitment. Once a supplieris found to have integrity issues, it will be blacklisted inaccordance with the regulations, and the cooperation will beterminated. In addition, Hoshine Silicon encourages suppliersto obtain quali?cation certi?cations in areas such as quality,human rights and labor, and occupational health and safety.It advocates that suppliers establish higher ESG principlesand standards beyond the legal minimums to guide andmanage their daily operations.
Supplier EmpowermentHoshine Silicon values communication and interaction with its partner suppliers. Through diverse training programs with richthemes, it helps suppliers enhance their sustainable development capabilities. During the Reporting Period, we used multiplechannels such as enterprise WeChat, telephone, email, on-site visits, exhibitions, public platforms, and industry associationsto ensure the sustainable development of both the Company and our supplier partners, and to boost the development of localindustries.We actively conduct supplier empowerment training. The training content includes supply chain anti-forced labor, health andsafety, environmental protection, business ethics, labor standards, and zero-tolerance items, further improving the ESG-relatedperformance of suppliers.
2024 Supply Chain Stability Guarantee Measures of Hoshine Silicon
We implement a materialreserve strategy for15-day productionsupplies to respondto emergencies andchanges in marketdemand
We select three alternativesuppliers to ensure thediversity of the supplychain and reduce therisk of relying on a singlesupplier
In response to potentialextreme weather conditionssuch as heavy snow inregions like Xinjiang, weincrease material reservesin advance to mitigate theimpact of climate-relatedrisks on the supply chain
By adopting diversi?edtransportation modes suchas "railway transportationand rail-sea intermodaltransportation", we enhancethe stability and e?ciency ofthe supply chain, reducinglogistics delays and costs
Hoshine Silicon attaches great importance to the basicrights and freedoms of workers. By establishing an anti-forced labor compliance system and relevant measures, itfirmly opposes any form of forced labor and eradicates anyact of recruiting, transporting, transferring, sheltering, orreceiving forced laborers. Based on the anti-forced labourindicators of the International Labour Organization (ILO),the Responsible Business Alliance (RBA) guidelines, SA8000,and relevant national laws and regulations, the Companyhas formulated and implemented theAnti-Forced LabourPolicy and Management Commitmentand theRules for theImplementation of Anti-forced Labour. These documentsclearly prohibit all Hoshine Silicon enterprises, suppliers, andoutsourced labour service providers from using any form offorced labour.We regularly conduct external audits related to human rightsto evaluate the implementation of the anti-forced labourpolicy. For example, Euro?ns Consumer Products Assurance(Eurofins CPA) carried out a two-day on-site corporatesocial responsibility audit for Hoshine, and the SGS Groupconducted a one-day Together for Sustainability audit and atwo-day Sedex Members Ethical Trade Audit for Hoshine. Theaudit results did not reveal any involvement of Hoshine in the11 forced labor indicators set by the ILO.In addition, we regularly organize special training sessionson anti-forced labor for employees, introducing to themcorporate social responsibility and labor rights-relatedcontent, such as the identification and prevention of childlabour, as well as legal obligations related to wages, bene?ts,working hours, non-discrimination, and the prohibitionof abuse. Hoshine Silicon also regularly distributes theNew Employee Questionnaireand theEmployee RegularQuestionnaireto con?rm with employees that the Companycomplies with anti-forced labor-related policies.
Avoidance of Forced Labour
Caring for EmployeesHoshine Silicon has always regarded its employees as the Company's precious assets. It continuously improves the humanresources management system, safeguards employees' rights and interests, perfects the remuneration and bene?ts system,establishes a broad talent development platform, and provides a healthy and comfortable working environment, constantlyenhancing employees' sense of happiness and belonging.
Employee Rights Protection
The Company strictly adheres to laws and regulations such as theLabour Law of the People's Republic of China, theLabourContract Law of the People's Republic of China, and theSocial Insurance Law of the People's Republic of China, and conductsemployment activities in accordance with the law. We have formulated and promulgated systems such as theEmployee Handbook
and theSocial Responsibility Management Manual, clearly de?ning processes related to employee recruitment, remuneration,bene?ts, attendance, training and development, performance management, rewards, and punishments, further standardizing thehuman resources management system.
Prohibition of Child Labour
The Company firmly opposes any form of child labour useand adheres to legal employment practices. All employees ofthe Company meet the minimum working age requirementsspeci?ed by the relevant laws and regulations of the countriesor regions where the Company's business is located. We haveformulated and issued theRegulations on the Management ofChild Labour and Underage Workers. Under these regulations,we rigorously verify the actual ages of employees to preventthe accidental employment of child labour due to false ageinformation provided by employees. We also commit not tocooperate with any suppliers or contractors that use childlabour. In addition, the Company has established a childlabour relief strategy. In the event that a child is mistakenlyhired, the Company will promptly settle all the remunerationowed, remove the child from the workplace, and assist thechild in receiving school education until the child reaches theage beyond that de?ned as a child.Promotion of Reasonable Working HoursHoshine Silicon advocates for reasonable working hoursfor its employees, strictly prohibits forced labour, andclearly defines that employees have legitimate rights suchas holidays. To safeguard employees' legitimate rightsand ensure their reasonable rest time, the Company hasimplemented a facial recognition attendance system and acomprehensive working hours system in compliance withlegal regulations. The Company encourages employees toarrange their working hours rationally to achieve a balancebetween work and life.
Ensure Supply Chain StabilityGuided by the principle of "Supply Guarantee First, Economic Priority", Hoshine Silicon continuously carries out supply-chain-related work in a stable, orderly, and continuous manner, constantly optimizing processes, strengthening risk management, andensuring the safety, e?ciency, and sustainable development of the supply chain.
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Equal Employment
Attraction and DevelopmentWe advocate a diverse and inclusive corporate culture, attach great importance to employees' well-being and career development,and actively create a platform for rapid growth and development. We are committed to fostering a culture characterized byfairness, transparency, diversity, and inclusiveness.
We adhere to the principle of equal employment, strictly prohibiting any form of discrimination. We firmly oppose any unjusttreatment during the recruitment process due to factors such as gender, age, nationality, marital status, and race, ensuring fairnessand equality in employment. If employees experience discrimination or harassment, they can report it to the relevant department.If an investigation confirms the existence of discrimination or harassment, disciplinary measures, including termination ofemployment, will be taken against the individuals involved.In 2024, there were no incidents of child labour, forced labour, workplace discrimination, or sexual harassment at Hoshine Silicon.The labour contract signing rate reached 100%.
Hoshine Silicon's "Spring Breeze Project" Talent Recruitment ProjectTo match the Company's strategicplan and meet the needs of businessexpansion, Hoshine Silicon haslaunched the "Spring Breeze Project"talent recruitment initiative, targetingyoung talents in society at large.In 2024, the Company carried outlarge-scale recruitment promotionin 17 districts and counties in Gansu,Qinghai, and Ningxia throughsynchronous online and offlinepublicity. As a result, it effectivelyattracted 1,263 young talents fromschools and society to join HoshineSilicon.
Employee Development
We attach great significance to the career development and promotion of employees. In accordance with internal systemsrelated to employee career development, such as theManagement Measures for New Employee Induction Training,
ManagementMeasures for Mentor-Apprentice System, andReward System for Professional Titles and Vocational Quali?cation Certi?cates, westandardize the employee promotion incentive mechanism and the knowledge and skills training management system, providinginstitutional support for employees at every stage of their growth.The Company has formulated a clear, transparent, and complete employee promotion system, which encourages employees tomake continuous progress and grow in their careers. It ensures that employees are provided with promotion paths that are in linewith their career plans and personal strengths.Hoshine Silicon is committed to constructing a comprehensive and multi-level talent cultivation system. By formulating "AgileTalent Operation Plans" at each level, it aims to o?er customized development support for employees at di?erent levels and indi?erent positions. In addition, we have set up an online learning platform, which not only expands the learning channels andscope for employees but also dynamically preserves experiences. It helps employees acquire knowledge in a more ?exible anddiverse way and, through visual means, enables employees to more quickly understand and master job-related skills. In 2024, theCompany launched a number of key training programs for employees at di?erent ranks.
We have established a series of job-skills training programs based on job requirements, which support employees in masteringthe knowledge and skills necessary for their work and enable them to achieve substantial development. Hoshine Silicon provideseligible employees with opportunities to pursue excellence and build unique advantages. It encourages them to receive higher-level professional training and acquire knowledge and skills beyond the scope of their work, such as obtaining certificates inchemical general control, special operations, special equipment, occupational health, hazardous chemicals, and work safety.Meanwhile, we actively support employees in obtaining o?cial degrees, academic quali?cations, and external certi?cations issuedby educational institutions. The Company bears the relevant training costs and provides subsidies to employees who obtaincerti?cates, to encourage them to independently improve their professional skills.
Newcomer Training Camp Eagle Training Camp
Elite Training Camp Cornerstone Training Camp
Training Goal: Help undergraduate campus recruitsenhance their ability to analyze and solve problems inpractice and reserve talents for key positionsTraining Model: Rotation learning in the main workshop;assigning mentors for job practice and managementadvisors for project research to provide one-on-oneguidance to improve the comprehensive abilities oftrainees
Training Goal: Help vocational college graduatesmaster job-specific knowledge and skills and meetjob requirementsTraining Model: Assigning mentors for job practiceto provide one-on-one guidance to enhanceprofessional skills and job adaptability
Training Goal: Develop a group of reserve personnelwith excellent professional skills and a good grasp ofadvanced management concepts and techniques forkey positionsTraining Model: Concentrated training in internal andexternal professional courses; combining training withpractice to improve job suitability
Training Goal: Develop a group of reserve talents withstrong technical capabilities and a good commandof advanced management methods and toolsTraining Model: Assigning mentors for one-on-oneguidance to enhance professional skills; combiningtraining with practice to improve job adaptability
Hoshine Silicon Employee Training System
Employee Recruitment
Talent is a crucial pillar for the development of an enterprise.In line with its own development needs, Hoshine Silicon hasformulated systems such as theRecruitment ManagementSystemand theHeadquarters Interview Process. These systemsstandardize all aspects of employee recruitment and selection,clarify recruitment and hiring criteria, ensuring that thepersonnel recruitment process is legal, compliant, fair, and just.Hoshine Silicon actively constructs diversified talentrecruitment channels. It attracts diverse talents in an all-roundway through multiple channels, including online recruitmentplatforms, o?ine job fairs, and headhunting services. On theone hand, based on the nature of its business, the Companymeets the recruitment needs of front-line employees. On
the other hand, it enters university campuses and holdsnumerous campus recruitment fairs, focusing on expandingthe reserve of high-quality talents.To address temporary employment requirements andpromote employment, the Company has implemented a?exible labor employment strategy. By releasing recruitmentinformation through multiple channels, organizing onlineand offline recruitment fairs, providing pre-job training,and strengthening dynamic supervision and informationfeedback, the Company ensures that ?exible workers receiveequal pay for equal work as employees in similar positionsin the employing units, thus safeguarding the rights andinterests of workers.
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Care and CommunicationHoshine Silicon is deeply aware of the signi?cance of employees' sense of happiness and belonging to the Company. It spares noe?ort in enriching employees' o?-work lives, demonstrating its profound care for employees through tangible actions.Employee Remuneration and Bene?tsHoshine Silicon is dedicated to o?ering employees competitive remuneration packages. Guided by a value-oriented principle, theCompany has formulated systems such as theRemuneration Management Systemand thePerformance Management System.These systems ensure that the remuneration standards are fair within the Company and competitive in the external market, fullymotivating employees and contributing to the Company's sustainable development as well as the realization of employees'personal value. The Company's Board of Directors has a Remuneration and Assessment Committee, which conducts performanceevaluations in accordance with relevant regulations to guarantee the fairness and impartiality of employee performance appraisals.On top of legally signing labour contracts and making contributions to the five social insurances and one housing fund, weactively maintain non-remuneration bene?ts for employees, including employee dormitories, accommodation allowances, mealallowances, phone bill subsidies, regular health check-ups, holiday bene?ts/activities, and team incentive funds. We also ensurethe effective implementation of various welfare measures such as sick leave, maternity leave, paternity leave for caregiving,breastfeeding support, and special holiday bene?ts during festivals like the Eid al-Adha and the Eid al-Fitr Festival in Xinjiang.Employee CommunicationHoshine Silicon respects and gives full attention to theopinions and feedback from employees. This not onlyincreases employees' participation in the Company'sdevelopment but also effectively enhances team cohesion,further promoting our development. We have establishedtheEmployee Complaint Handling Procedureand activelyset up information feedback channels, including theGeneral Manager's mailbox, complaint hotline, WeChatfor complaints, the Company's DingTalk platform, HumanResources Communication Station and the Employees'Congress. These channels ensure that employees haveaccessible ways to voice their grievances and their rights andinterests are safeguarded.The Company approaches every employee's complaint andreport with the utmost seriousness. It conducts in-depthinvestigations into each case one by one and handles themappropriately, all the while ensuring that feedback is providedwithin the stipulated time limit. We have clearly defined awhistleblower protection mechanism, which guarantees thecon?dentiality of the informer's information. By safeguardingemployees' complaint and reporting data, we ensure thattheir privacy and security remain inviolable.We conduct an annual employee satisfaction survey thatcovers multiple dimensions, including the work environment,remuneration and benefits, career development, andcorporate culture. Based on the feedback and suggestionsobtained, we continuously optimize our workplaceenvironment.
Employee CareHoshine Silicon shows care for the physical and mental healthof its employees. A series of humanistic care activities andcultural and sports activities have been carried out accordingto the actual needs of employees, making every employeefeel the warmth of the Company. Over the years, HoshineSilicon has closely centered around the main theme of ethnicwork in the new era, which is the awareness of the Chinesenation community. It has actively launched various caringactivities and public welfare undertakings for ethnic minorityemployees, such as "Summer Heat Relief", "Winter WarmthDelivery", "Eid al-Adha Gala", and assistance to employeesin hardship. These e?orts have truly brought warmth to thehearts of a large number of ethnic minority employees.Meanwhile, Hoshine Silicon respects multi-ethnic cultures andhas established an Ethnic A?airs Management Committee. Itadopts a governance model where ethnic minority employeeshelp each other, aiming to build a harmonious and inclusivemulti-ethnic labor relationship. There are more than 10,000ethnic minority employees from over 40 ethnic groups withinHoshine Silicon. The Company provides them with excellentworking and living conditions and has become one of theexemplary enterprises in the Xinjiang region for "promotingethnic unity and achieving common prosperity".
The Company attaches great importance to the work experiences and needs of employees with disabilities, female employees, andethnic minority employees, and is committed to creating an inclusive, equal, and caring working environment.
Hoshine Silicon's Employee Care Measures
Hoshine Silicon Celebrates Festivals Together with Ethnic Minority Partners
The Shihezi and Shanshan parks of Hoshine Silicon celebrate major traditional festivals like the Spring Festival, Mid-autumn Festival, Eid al-Adha, and Eid al-Fitr together with ethnic minority partners. The Company organizes festival galasand Mandarin competitions and distributes festival bene?ts.
Hoshine Silicon Xinjiang Region Spring Festival Cultural Performance and Mandarin Competition
The Company actively createsa friendly work environmentfor employees with disabilities,o?ering jobs with moderateintensity and ?exible hours.They can choose suitable workhours based on their conditionsand have the option for remotework, reducing commutingburdens.
Inclusion of Employeeswith Disabilities
We have established private
rest rooms and nursing roomsfor female employees, aimed atbetter protecting their privacyand meeting the daily needs ofthose who are breastfeeding.We provide regular gynecological
inspect, breast cancer screenings,and comprehensive maternityinsurance for our femaleemployees, ensuring their healthand well-being.
Care for FemaleEmployees
Valuing EthnicMinority Colleagues
We have set up a halal food window
in the park cafeteria to better meetthe dietary habits of ethnic minorityemployees.On the basis of the original training
materials and courses, we havesupplemented and developed bilingualtraining materials and courses to helpethnic minority employees master jobskills more quickly.In some of our parks, we have
organized one-on-one pairingbetween Han Chinese and ethnicminority employees. This initiativehelps ethnic minority employeesenhance their professional skillsand improve their daily Mandarincommunication abilities.
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Safe ProductionWe strictly comply with laws and regulations, including theWork Safety Law of the People's Republic of Chinaand theLaw of the People's Republic of China on the Preventionand Control of Occupational Diseases. We have formulatedsystems such as theWork Safety Goal Management Systemand theSafe Production Responsibility Management System,clearly defining the responsibilities and obligations ofmanagers and employees at all levels in work safety. Basedon a clear work safety management structure, we rigorouslyimplement a full-sta? safety production responsibility system.The Safety and Environment Department is required to signwork safety goal responsibility agreements with the heads ofvarious industries and workshops every year to ensure theachievement of annual work safety goals and the safety ofpersonnel in the production process.Each production unit of Hoshine Silicon has establisheda work safety management organization, which regularlysupervises and inspects the safety management of the
production site and conducts comprehensive safety hazardinspections. The aim is to promptly detect and eliminate allkinds of safety hazards. Once potential hazards or safety risksare discovered, the Company immediately makes detailedrecords and continuously follows up until the problemsare properly resolved, achieving 100% rectification. Thisapproach prevents and reduces the occurrence of safetyaccidents at the source.Our production units formulate emergency response plansfor potential accidents, focusing on major hazards and on-site incident handling. These plans are designed to guideemployees in dealing with safety accidents promptlyand effectively, thereby reducing production safety risks.Meanwhile, we foster a strong safety culture through regularsafety-related training and practical drills, such as emergencyevacuation exercises and heatstroke response simulations, toreinforce awareness of work safety in practice.
Occupational Disease PreventionHoshine Silicon strictly adheres to occupational health-related laws and regulations, including theLaw of the People's Republicof China on the Prevention and Control of Occupational Diseases, theMeasures for the Management of Occupational HealthExaminations, and theRegulations on Work-related Injury Insurance. A series of systems, such as theOccupational HealthManagement Systemand theEmergency Rescue and Management System for Occupational Disease Hazards, have beenformulated to ensure the health and safety of all employees. During the Reporting Period, a total of 12 subsidiaries of HoshineSilicon have obtained occupational safety management system certi?cations.
Hoshine Silicon's Occupational Health and Safety Management Measures
Hoshine Silicon's Production Process SafetyMeasures
Occupational Health and SafetyHoshine Silicon continuously strengthens its work safety management system. Through measures such as providing health andsafety training, the Company is dedicated to creating a safe and healthy working atmosphere, safeguarding the well-being of itsemployees. During the Reporting Period, there were no major or extremely serious safety accidents at Hoshine Silicon.
Health Risk Identi?cationOccupational Health Examination
Specialized Training onOccupational Health
We hire a third party every
year to conduct regularoccupational health tests andtests for occupational hazardfactors. Simultaneously, wecarry out the identi?cation,assessment, and managementof occupational health risks.We assign dedicated personnel
to regularly inspect productionequipment and the workingenvironment, identify potentialsafety hazards, and establishequipment maintenance plansto reduce the risk of personnelinjury caused by equipmentfailures.
We regularly organize comprehensive
occupational health examinations foremployees every year and promptlyarrange pre-employment, in-service,post-resignation, and emergency healthexaminations.We regularly conduct specialized training
sessions for all employees exposed tooccupational hazards every year. Thesesessions cover the popularization of lawsand regulations knowledge, occupationalhealth and hazard protection, occupationalhealth education, work injury prevention,mental health, and stress management, and arefollowed by assessment and evaluation.
Equipmentand SafetyFacilities
Noise and PowerFrequencyElectric FieldProtection
Heatstroke andCold PreventionMeasures
FactoryLayout andVentilationFacilitiesOccupationalHealthManagementand HealthSurveillance
OccupationalDisease HazardWarnings andProtection
Community Co-construction
Hoshine Silicon is actively engaged in social welfare undertakings. It takes proactive actions in areas such as educationalsupport and merit-based rewards, respect for the elderly and care for the young, disaster relief and poverty alleviation, ruralrevitalization, and low-carbon environmental protection, ful?lling its corporate social responsibility.
Hoshine Silicon Purchases Xinjiang Aksu Apples
Respect and Care
for the ElderlyHoshine Silicon o?ers careservices to the elderly,distributes elderly-caresubsidies, promotes theculture of respecting theelderly, and boosts thesense of happiness amongthe elderly.
Educational Support
and Merit-basedRewardsHoshine Silicon hasdonated scholarshipsand teaching equipmentto schools in regions suchas Zhejiang, Xinjiang, andSichuan, contributingto the enhancement ofeducational quality.
Support for theNeedy and Disabled
Hoshine Silicon facilitatesthe integration ofdisadvantaged groupsinto society and improvestheir quality of life throughaid projects, employmentsupport, and the rental ofassistive devices.
Rural Revitalization
Hoshine Silicon respondsto the Rural RevitalizationStrategy, promoting thedevelopment of ruralareas through industrialinvestment, technicalsupport, and talentcultivation.
Rural RevitalizationThe Company actively answers the call of the national RuralRevitalization Strategy, driving the economic developmentand social progress in rural areas. We assist local farmers inincreasing their income and improving their living standardsby creating employment opportunities and backing thedevelopment of rural industries. In 2024, Hoshine Siliconpurchased over 30,000 boxes of Aksu apples from Xinjiangand distributed them as Spring Festival benefits to all itsemployees. This action helps local fruit farmers increasetheir income and prosper, contributing to the sustainabledevelopment of rural regions.
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Hoshine Silicon is dedicated to promoting the humanitarian spirit and charity culture. It actively participates in social welfareundertakings, with the donation scope covering care for nursing homes, optimization of grassroots convenient services, promotionof high-quality education development, and assistance in rural revitalization. The aim is to help disadvantaged groups andpromote the development of social welfare. In 2024, the Cixi Hoshine Charity Foundation was rated as an "Advanced Organizationfor Charitable Donations" by the Cixi Municipal People's Government and was proposed to be rated as a 3A-level socialorganization. It has become a member organization of the Cixi City's Disability Assistance Alliance.
Honorary Awards of Cixi Hoshine Charity Foundation
Contributions to the Society
Hoshine Silicon actively participates in community activities, giving full play to its corporate social responsibility. It endeavorsto improve the quality of life and development level of local communities, striving to create a more beautiful and sustainablecommunity.Since 2022, Hoshine Silicon has been continuously promoting the "Together with Me in Charity" series of public welfare projects.It focuses on carrying out public welfare activities in ?ve major areas: educational support and merit-based awards, respect forthe elderly and care for the young, disaster relief and assistance, rural revitalization, and low-carbon environmental protection.Through ?nancial and material support as well as the joint participation of employees and caring members of society, it aims todrive the development of public welfare and promote social harmony and progress.Hoshine Silicon Holds Tree Planting Day Activities to Ful?l Environmental Responsibilities
"Together with Me for Barrier-free Love" Donation Campaign
In 2024, we organized tree-planting initiatives and low-carbon campaigns for employees, fostering their enthusiasm forsustainable practices while strengthening team cohesion. These efforts showcased Hoshine Silicon's commitment toenvironmental stewardship and social responsibility.
In 2024, Hoshine Silicon organized the "Together with Me for Barrier-free Love" donation campaign in multiple regions.This effectively contributed to the development of public welfare for people with disabilities and actively fulfilled theCompany's social responsibility. As one of the inaugural member organizations of Cixi City's Disability Assistance Alliance,Hoshine Silicon actively fulfills its organizational mission of "Uniting Philanthropic Strength for a Brighter Future." Weparticipated in the launch ceremony of Cixi City's 34th National Disability Day and collaborated with multiple localgovernments and social organizations to conduct a series of charitable donation initiatives, demonstrating its commitmentto supporting vulnerable groups.In Cixi, the Hoshine Charity Foundation has taken the lead in establishing assistive device rental stations in Ningfeng Village(Changhe Town) and Binhe Community (Baisha Road Subdistrict). Through the donation of wheelchairs, walkers, etc., theFoundation is e?ectively addressing the practical needs of individuals with disabilities and elderly residents. In Xinjiang,the Foundation has partnered with Shanshan County Kindness Social Work Service Center to provide living supplies andassistive devices to residents with disabilities. Additionally, through a targeted RMB100,000 donation to Shihezi CharityFederation, the Foundation supported a disabled curling competition, empowering participants to build con?dence andsocial integration through sports.
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Key Performance Table
Environmental Performance
Indicator Unit Data of 2024
Energy Consumption
Direct Energy ConsumptionDiesel Consumption Ton 6,960.48Gasoline Consumption Ton 39.38Coal Consumption Ton 4,927,538.51Natural Gas Consumption Normal Cubic Meter 145,423,896.94Indirect Energy ConsumptionPurchased Electric Power Consumption MWh 16,683,618.66Purchased Steam Ton 381,397.00Renewable Energy ConsumptionRenewable Energy Use TCE 438,387.30Total Energy ConsumptionTotal Energy Consumption (direct) TCE 3,689,907.10Total Energy Consumption (indirect) TCE 2,099,464.39Total Energy Consumption (excluding renewable energy) TCE 5,789,371.49Integrated Energy Consumption Intensity (excludingrenewable energy)
TCE/RMB One Million 216.89Greenhouse Gas Emission
Total Greenhouse Gas Emissions (Scope 1 and Scope 2) Carbon Dioxide Equivalent - Ton 17,903,747.80Direct Greenhouse Gas (Scope 1) Carbon Dioxide Equivalent - Ton 9,065,365.27Indirect Greenhouse Gas (Scope 2) Carbon Dioxide Equivalent - Ton 8,838,382.53Greenhouse Gas Emission DensityTCO
e /RMB One Million 670.75Exhaust GasTotal Exhaust Gas Emission M
11,078,808.80Exhaust Gas Emission density M?/RMB One Million 415.06
The energy consumption calculation for operations in China is based on theGeneral Principles for Calculation of the Comprehensive Energy Consumption(GB2589-2020) issued by the State Administration for Market Regulation and the Standardization Administration of China.
The main sources of greenhouse gas emissions of the Company are the use of purchased electric power, the consumption of natural gas, as well asthe use of diesel, coal, and gasoline. The calculation scope includes Hoshine Silicon Industry Co., Ltd. and all its stable production subsidiaries. Scope1: Greenhouse gas emissions are accounted for based on theGuidelines for Accounting and Reporting Greenhouse Gas Emissions of Other IndustrialEnterprises (Trial)issued by China's National Development and Reform Commission (NDRC) and the2006 IPCC Guidelines for National Greenhouse GasInventoriespublished by the Intergovernmental Panel on Climate Change (IPCC).
Transfer Volume = Recycling and Reuse Volume + Volume Treated by Other Methods
Other treatment methods include incineration treatment and land?ll treatment.
Indicator Unit Data of 2024Sulphur Oxide SOx Emission Ton 1,050.72Sulphur Oxide SOx Emission Intensity kg/RMB One Million 39.36Nitrogen Oxide NOx Emission Ton 5,399.66Nitrogen Oxide NOx Emission Intensity Kg /RMB One Million 202.29VOC Emissions Ton 6.63VOC Emissions Intensity Kg /RMB One Million 0.25Particulate Matter (PM) Emissions Ton 868.11Particulate Matter (PM) Emission Intensity Kg /RMB One Million 32.52WastewaterTotal Wastewater Discharge Ton 2,147,434.59COD Ton 260.49Ammonia Nitrogen Ton 12.73Wastewater Discharge Density Ton/RMB One Million 80.75WasteHazardous WasteHazardous Waste Transfer Volume
Ton 102,512.29Hazardous Waste Recycling and Reuse Volume Ton 39,157.37Volume of Hazardous Waste Treated by other Method
Ton 63,354.92Harmful Waste Density Ton/RMB One Million 3.84Non-hazardous WasteNon-hazardous Waste Collection Volume (non-recyclable) Ton 43,899.91Non-hazardous Waste Collection Volume (recyclable) Ton 520,731.86Non-hazardous Waste Density Ton/RMB One Million 21.15Water Resource ConsumptionTotal Water Consumption Ton 20,843,814.80Tap Water/Municipal Water Drawing Volume Ton 20,843,814.80Water Use Intensity Ton/RMB One Million 780.89
Key Performance Table
7677
2024 ｜Sustainability Report
Indicator Unit Data of 2024
Use of Packaging MaterialsTotal Amount of Packaging Materials Used Ton 54,505.59Plastics Ton 22,398.24Paper Ton 15,405.44Glass Ton 0Metal Ton 12,692.08Other Categories Ton 4,009.83Packaging Material Usage Density Tons/RMB One Million 2.04
Social Performance
Indicator Unit Data of 2024
Product Quality and SafetyNumber of Product Safety and Quality Accidents Case 0Amount of Accident Damage RMB Ten Thousand 0Number of Product Recall Batches Times 211R&D Innovation and Intellectual PropertyR&D Expenses
RMB One HundredMillion
5.7
R&D Investment Ratio % 2.10Number of National Science and Technology Award Winners Pcs 0Number of Supplier Collaborations in R&D Pcs 4Number of patents granted to the Company Pcs 675Number of invention patents Pcs 87Number of various standards formulated or revised as a lead or participant Pcs 60Number of scienti?c and technological articles published Article Nearly 50Customer ServiceComplaint Handling Rate % 100Customer Satisfaction (out of 100) / 93.48
Indicator Unit Data of 2024
Customer Privacy and SecurityNumber of Customer Privacy Breaches Case 0The Amount of Money Involved in the Customer Privacy Breach RMB Ten Thousand 0Number of suppliersTotal Number of Suppliers Nr. 6,708Number of Suppliers by RegionNumber of Mainland China suppliers Nr. 6,697Northeastern China Nr. 219Northern China Nr. 477Central China Nr. 400Northwestern China Nr. 1,594Southwestern China Nr. 511Eastern China Nr. 3,197Southern China Nr. 299Number of Suppliers from Chinese Hong Kong, Macao and Taiwan Nr. 4Number of Foreign Suppliers Nr. 7Supplier ESG ManagementNumber of Suppliers that have Signed the Supplier Code of Conduct Nr. 5,562
Ratio of Suppliers that have Signed the Supplier Code of Conduct %82.92Number of ESG/CSR-related Training Sessions Conducted for Suppliers Times 1Total Duration of ESG/CSR-related Training Conducted for Suppliers Hour(s) 884Number of EmployeesTotal number of Employees Person 21,994Number of Employees by Employment TypeFull-time Person 21,653Part-time Person 341Number of Employees by Gender
Male Person 16,755Female Person 4,898
Hoshine Silicon has required our suppliers to sign a Supplier Code of Conduct since 2023. The data is based on the upgraded system and is gradually coveringall suppliers.
The total number of people is the total number of full-time employees.
Key Performance Table
7879
2024 ｜Sustainability Report
Indicator Unit Data of 2024
Number of Employees by Age
Under 30Person 11,73530-50 (including 50)Person 9,062Over 50 Person 856Number of Employees by Work Area
Mainland China Person 21,653Chinese Hong Kong, Macao and Taiwan Person 0Overseas Person 0Number of Sta? by Rank
Senior Management Person 125Middle Management Person 871Junior Management Person 3,206Regular Employee Person 17,451Employee TrainingTotal Number of Full-time Trained Employees Participation(s) 410,465
Percentage of Trained Employee %100Total Hours of Employee Training Hour(s) Over 40 million
Training and Development ExpensesRMB Ten Thousand416.95Labour DiversityNumber of Women in Management (both junior, middle and senior) Person 363Proportion of Women in Management (both junior, middle and senior) %8.64Number of Women in Senior Management Person 6Proportion of Women in Senior Management %4.80Number of Women in Middle Management Person 60Proportion of Women in Middle Management %6.89Number of Women in Junior Management Person 297
The total number of people is the total number of full-time employees.
The total number of people is the total number of full-time employees.
The total number of people is the total number of full-time employees.
The plants implement an essential knowledge and compliance training program with weekly sessions, leading to elevated aggregate ?gures in both participantvolume and training duration.
The plants implement an essential knowledge and compliance training program with weekly sessions, leading to elevated aggregate ?gures in both participantvolume and training duration.
Indicator Unit Data of 2024
Proportion of Women in Junior Management %9.26Employees' Rights and InterestsUnion Membership Rate %100Incidents Related to Child or Forced Labour Pcs 0Labour Contract Signing Rate %100Health & SafetyNumber of Workdays Lost Due to Work-related Injuries Days 14,630Employee Coverage of Work-related Injury Insurance % 100Employee Coverage of Safety Production Liability Insurance%57.90Work Injury Insurance ExpenditureRMB Ten Thousand 1,060.39Work Safety Liability Insurance ExpenditureRMB Ten Thousand 7,712.10Social InvestmentTotal Funds of Social Contribution RMB Ten Thousand 224.3Total Funding for Rural Revitalization RMB Ten Thousand 33.8Aggregate Participation in Public Charity Commitment Participation(s)Nearly 200Total Volunteer Service HoursHour(s)Nearly 800
Key Performance Table
8081
2024 ｜Sustainability Report
The Company has issued the Announcement of Hoshine Silicon Industry Co., Ltd. on Receiving the Criminal Judgment and the Litigation Progress on August16, 2024.
Indicator Unit Data of 2024
Business EthicsTotal Duration of Directors' Participation in Anti-corruption Training
Hour(s) 8Total Participation of Directors in Anti-corruptionTraining
Participation(s) 3Total Duration of Management Participation in Anti-corruption Training
Hour(s) 1Total Participation of Management in Anti-corruptionTraining
Participation(s) 102Total Duration of Employees' Participation in Anti-corruption Training
Hour 16Total Participation of Employees in Anti-corruptionTraining
Participation(s) 835Number of Corruption and Bribery Cases Item 1
Information SecurityNumber of information security incidents Item 0Amount involved in information security incidents RMB Ten Thousand 0
Governance Performance
Shanghai Stock Exchange (SSE)Guidelines IndexDimension Nr. Issues Corresponding chapter
Environment
1Climate Change TacklingFuture Hoshine, Green Leadership: Low-carbon Operations2Pollutant Discharge Future Hoshine, Green Leadership: Pollutant Discharge3Waste Disposal Future Hoshine, Green Leadership: Pollutant Discharge4Ecosystem and Biodiversity Protection
Future Hoshine, Green Leadership: EnvironmentalManagement
Environmental ComplianceManagement
Future Hoshine, Green Leadership: EnvironmentalManagement6Energy Usage Future Hoshine, Green Leadership: Low-carbon Operations7Usage of Water Resources Future Hoshine, Green Leadership: Resource Usage8Circular Economy Future Hoshine, Green Leadership: Resource Usage
Society
9Rural Revitalization
Excellent Hoshine, Scaling New Heights: Community Co-construction10Contributions to the Society
Excellent Hoshine, Scaling New Heights: Community Co-construction11Innovation-driven
Excellent Hoshine, Scaling New Heights: QualityManagement12Ethics of Science and Technology Not Applicable13Supply Chain Security
Excellent Hoshine, Scaling New Heights: Supply ChainSecurity
Equal Treatment to Small andMedium-sized Enterprises
Excellent Hoshine, Scaling New Heights: Supply ChainSecurity
Safety and Quality of Products andServices
Excellent Hoshine, Scaling New Heights: QualityManagementExcellent Hoshine, Scaling New Heights: CustomerExperience
Data Security and Customer PrivacyProtection
Responsible Hoshine, Re?ned Governance: Data Securityand Customer Privacy Protection17Employees
Excellent Hoshine, Scaling New Heights: Caring forEmployeesSustainability-relatedGovernance
18Due Diligence Responsible Hoshine, Re?ned Governance: ESG Governance19Communications with Stakeholders Responsible Hoshine, Re?ned Governance: ESG Governance
Anti-commercial Bribery and Anti-corruption
Responsible Hoshine, Re?ned Governance: Business Ethics21Anti-unfair Competition Responsible Hoshine, Re?ned Governance: Business Ethics8283
2024 ｜Sustainability ReportShanghai Stock Exchange (SSE) Guidelines Index