PAPER MAKE IT HAPPEN
仙鹤股份有限公司XIANHE CORPORATION
2024 Sustainability ReportAddress: No. 69, Tian Hu South Road, Qujiang District, Quzhou, Zhejiang provinceTel: 0570-2833055Fax: 0570-2931631Website: www.xianhepaper.comEmail: zqb@xianhepaper.com
Title Description
Reliability Commitment
The 2024 Sustainability Report of Xianhe Corporation is the fourth consecutive sustain-ability report released by Xianhe Corporation, and also the sixth non-?nancial informa-tion report of the company. It aims to systematically describe the principles andconcepts, management methods, and performance achievements of the company insustainable development.
Overview
The scope of this report is consistent with the company's annual report, covering XianheCo., Ltd. and its subsidiaries within the scope of consolidation. This report is an annualreport, covering the period from January 1, 2024 to December 31, 2024. Some of thecontent exceeds the scope mentioned above and will be explained in the relevantsections.
Report Scope
The data, management mechanisms, and cases in the report are sourced from theoriginal records or ?nancial reports of the company's actual operations. The ?nancialdata in the report is in Chinese yuan. If the ?nancial data does not match the company'sannual ?nancial report, the annual report shall prevail.
Data Description
This report is guided by the "Shanghai Stock Exchange Self Regulatory Guidelines forListed Companies No. 14- Sustainable Development Reports (Trial)" and "Shanghai StockExchange Self Regulatory Guidelines for Listed Companies No. 4- Preparation of Sustain-able Development Reports", and refers to the "GRI Sustainability Reporting Standards"issued by the Global Sustainability Standards Board (GSSB) and the Container&Packag-ing Sustainability Accounting Standard of the Sustainable Development AccountingStandards Board (SASB), Pulp&Paper Products Sustainability Accounting Standard andIFRS issued by the International Sustainability Standards Board (ISSB) ? Develop aSustainability Disclosure Standard. At the same time, this report also cites some recom-mendations from the ISO 26000:2010 Guidance on Social Responsibility published by theInternational Organization for Standardization (ISO).
Compilation Basis
REGARDING THIS REPORT
Zhefeng New MaterialsZhefeng Environmental ProtectionHegang Environmental ProtectionHefeng New MaterialsZhejiang TangfengHenan XianheZhefeng EnergyXianhe New EnergyGuangxi Xianhe EnergyHubei Xianhe New MaterialsHubei Xianhe EnergyXianlu New MaterialsKorai New MaterialsKingdecor
Zhejiang Zhefeng New Materials Co., LtdChangshan Zhefeng Environmental Protection Technology Co., Ltd.Quzhou Qujiang District Hegang Environmental Protection Technology Co., Ltd.Zhejiang Hefeng New Materials Co., LtdZhejiang Tangfeng Special Paper Co., LtdHenan Xianhe Special Pulp and Paper Co., LtdZhejiang Zhefeng Energy Development Co., LtdZhejiang Xianhe New Energy Co., LtdGuangxi Xianhe Energy Development Co., LtdHubei Xianhe New Materials Co., Ltd.Hubei Xianhe Thermal Energy Co., LtdZhejiang Xianlu New Materials Co., LtdZhejiang Korai New Materials Co., LtdKingdecor (Zhejiang) Co., Ltd.In the report, "Guangxi Xianhe" refers to the construction entity involved in the company's "Annual Production of
2.5 Million Tons of High Performance Paper based New Materials in Sanjiangkou New Area, Guangxi" project, and
"Hubei Xianhe" refers to the construction entity involved in the "Annual Production of 2.5 Million Tons of HubeiShishou High Performance Paper based Functional New Materials Circular Economy" project.
Xianhe Group promises that there are no false records, misleading statements or signi?cant omissions in thecontent of this report. The board of directors of the company assumes individual and joint responsibility for thetruthfulness, accuracy and completeness of its content.Report AcquisitionThis report is released in both print and electronic formats, with the print version kept in the company's securi-ties department. The electronic version can be found on the company's of?cial website http://www.xianhe-paper.com Shanghai Stock Exchange website http://www.sse.com.cn Search.Contact InformationWe encourage all stakeholders to provide suggestions or opinions on our company's sustainable developmentand social responsibility management work. If there are any related matters, please contact zqb@xianhepa-per.com .
Xianhe, Xianhe Co., Ltd., Xianhe Group,our company, the company, weXianhe Co., Ltd
CATALOGUE
Company IntroductionCorporate CultureMajor Events of 2024Highlights of Sustainable DevelopmentPerformance in 2024
01CHAIRMAN'S SPEECH
KEY PERFORMANCE TABLEINDEX OF INDICATORSFEEDBACK FORM
03ABOUT US
New Model of Circular EconomyNew Strategy for Supply Chain SecurityNew Engine of Regional Economy
TOPIC: "INTEGRATED CONSTRUCTION OF FORESTRY,PULP , PAPER AND USE": LEADING GREEN CIRCULATIONAND EMPOWERING REGIONAL DEVELOPMENT
Environmental ManagementCoping with Climate ChangeWater Resource ManagementPollution Prevention and ControlCircular EconomyEcosystem Protection
GREEN DEVELOPMENT, LOW CARBONTRANSFORMATION
ENVIRONMENT
Sustainable Development StrategySustainable Development ManagementArchitectureStakeholder CommunicationSubstantive Issue Analysis
SUSTAINABLE DEVELOPMENTMANAGEMENT
Employee Rights and Bene?tsEmployee Growth and DevelopmentEmployee Health and SafetyPublic Welfare, Charity and Social Contribution
Corporate GovernanceCompliance operationBusiness EthicsRisk Management
PRAGMATISM AND DILIGENCE,BUILDING A SOLID FOUNDATION
Adhere to innovation driven approachStrictly adhere to quality standardsProvide high-quality servicesChain Drive Green FutureSupporting Industry Development
QUALITY FIRST, WIN-WINCOOPERATION
PRODUCTS
PEOPLE-ORIENTED AND SHAREDPROSPERITY
PARTNERGOVERNANCE
02CHAIRMAN'S SPEECH01XIANHE CO., LTD 2024 Sustainability Report
CHAIRMAN'S SPEECHDear friends, partners, and all colleagues from all walks of life:
2024 is an important year for Xianhe Group to continue deepening green development, optimizing industrial layout, andpromoting high-quality growth. This year, we witnessed the of?cial launch of the "Forest Pulp Paper Integration" project inLaibin, Guangxi and Shishou, Hubei, marking a solid step for the company in independent supply. Standing at a new start-ing point of development, we will embrace challenges with a more open attitude and move towards the future with a moreresolute pace.
Plant a solid green foundation and seek a sustainable future together. Xianhe has always adhered to the developmentconcept of "green mountains and clear waters are as valuable as mountains of gold and silver", faced the challenges andopportunities of climate change, continuously optimized its energy structure, vigorously develop the utilization of solarenergy, biomass energy, and other clean energy sources, focus on constructing and upgrading energy storage projects,and continuously expand the coverage of carbon inventory and carbon management initiatives, actively developedcarbon sink projects, and created a green and low-carbon industrial chain. This year, we promoted the construction of acircular economy system in our production bases in Guangxi and Hubei, achieving pollutant reduction and wasterecycling, and setting a new benchmark for green manufacturing in the industry.Adhere to innovation driven approach and empower industry upgrading. Xianhe is continuously accelerating its strategiclayout of "integration of forestry, pulp, and paper", strengthening its research and development capabilities inpaper-based functional materials, increasing investment in intelligent manufacturing, introducing automated productionlines, intelligent detection systems, and digital supply chain management, and improving production ef?ciency and prod-uct quality stability. The company deepens cooperation with high-end customers both domestically and internationally,and further expands into high value-added product ?elds such as food packaging, medical materials, and publishing andprinting materials. We always adhere to the concept of win-win cooperation and co creation of value, practice the princi-ple of responsible procurement, promote the formation of a more resilient supply chain ecosystem for upstream anddownstream enterprises, and enhance the overall competitiveness of the industrial chain. At the same time, the companyactively expands overseas markets, optimizes its international supply chain layout, and accelerates the entry of domestichigh-end specialty paper into the global market.Gather talent and jointly draw a development blueprint. Xianhe always takes "family culture" as its core, allowing everystruggler to realize their own value on Xianhe's platform. The company continues to improve its talent training system,providing high-quality technical talents to the industry through school enterprise cooperation and industry talent trainingprograms, and continuously optimizing skills training, career development channels, and other aspects to help employeesachieve career growth. Over the years, we have created thousands of job opportunities in multiple bases across the coun-try and established an industry-leading salary and bene?ts system, allowing more employees to share the fruits of thecompany's development. Xianhe bene?ts from the times and feeds back to society. This year, we continue to rootourselves in the team of rural revitalization and volunteer poverty alleviation, contributing to the development of localeconomy and improvement of people's livelihood.Adhere to the bottom line of compliance and build a solid foundation for development. In this year, Xianhe Group contin-ued to adhere to the development direction of "standardization, transparency, and stability", continuously improved thegovernance structure of the board of directors, strengthened the ESG management system, strictly followed national lawsand regulations, industry regulatory requirements, comprehensively implemented compliant operation and fair competi-tion, established a risk control system covering multiple dimensions such as supply chain, ?nance, market, and environ-mental protection, strengthened the transparency of information disclosure, promoted ISO management system certi?-cation, and created a fair and transparent corporate culture through regular compliance training and anti-corruptionmechanisms. With a high standard compliance governance system, the company consolidated its long-term competi-tiveness and achieved high-quality sustainable growth.
Chairman of XianheCorporationWang Minliang
Accumulate steps to reachthousands of miles, and planfor the long run withoutstopping. Looking ahead to thefuture, we will continue to drivegrowth with the construction of"integration of forestry, pulp,paper and other industries",expand the market with aglobal perspective, consolidatethe foundation with ef?cientgovernance, focus on thebullseye, work hard, and keepup with the trend, and embarkon a path of continuousinnovation and progress. Wesincerely thank all customers,partners, employees, and allsectors of society for theirsupport and trust in XianheShares. We look forward toworking together with everyoneto create a green future!
With the integrated strategy of "forestry pulp paper", we aim to providethe best overall solution for the global high-performance paper-basedfunctional materials ?eld and become a leader in the global specialtypaper industry.
Mission
Treat employees as family members, let them share the fruits of enter-prise development, and take care of this' little homeRelying on cadres and employees, advocating loyalty, dedication,standardization, orderliness, teamwork, and independent innovation tobuild the "everyone" of the enterprise wellFul?ll social responsibility, be a respected enterprise by society, andserve the country as a 'nation'
The company adheres to the principle of "creating wealth and servingsociety" and the vision of "a hundred year Xianhe, sustainable develop-ment". Adhering to the craftsmanship spirit of "integrating knowledgeand action, and creating with ingenuity and intelligence", guided by"family culture", we aim to become a leading enterprise in the globalhigh-performance paper-based functional materials industry throughsustainable and high-quality development.
COMPANY PROFILE
Xianhe Co., Ltd. is a large domestic enterprise engaged in the research and production of high-performance paper-basedfunctional materials. Its main business is the research and development, production, and sales of high-performancepaper-based functional materials, as well as their pulp and chemical raw materials. The paper-based functional materialproducts produced by the company are mainly divided into six series with more than 60 varieties, including food andmedical packaging material series, tobacco industry supporting material series, home decoration material series (includ-ing joint venture company Kingdecor products), business communication and publishing printing material series, electri-cal and industrial paper material series, and daily consumer material series. At the same time, the company also focuseson the research and manufacturing of paper-based functional materials, actively expanding its layout in the ?elds ofchemical materials, industrial water treatment, solid waste treatment, clean energy, etc., promoting the development ofnew materials and new energy businesses, and gradually extending its business to the logistics and C-end product ?elds,committed to building an integrated upstream and downstream industrial ecosystem. The company has 5 productionbases nationwide, located in Qujiang, Zhejiang, Changshan, Zhejiang, Neixiang, Henan, Laibin, Guangxi, and Shishou, Hubei.
ABOUT USCompany Name：仙鹤股份有限公司Company foreign name: Xianhe Co.,Ltd.Abbreviation of foreign company name: XianheStock code: 603733Company Headquarters: Quzhou City, Zhejiang Province, China
Centennial Xianhe, sustainabledevelopment
Create wealth and serve societyVisionPurpose
The connotation of Xianhe's "family Culture"
Integrity, ef?ciency, innovation,and striving for strength
Spirit
Putting people ?rst, taking home
as the root
Harmony is precious, morality
comes ?rst
Values
CORPORATE CULTURE
0403XIANHE CO., LTD 2024 Sustainability ReportABOUT US
MAJOR EVENTS OF 2024
Xianhe Group has been awarded the honorarytitle of "Civilized Unit" in Zhejiang Provincejointly issued by the Zhejiang ProvincialCommittee of the Communist Party of Chinaand the Zhejiang Provincial People's Govern-ment.Xianhe Group has won the ?rst prize of the"Comprehensive Contribution Award" for the2023 Qujiang District High Quality Develop-ment Special Contribution Award issued by theQujiang District People's Government ofQuzhou City.Xianhe Group has been awarded the "Top 30Manufacturing Enterprises in Quzhou City in2023" by the Quzhou Entrepreneurs Associa-tion.Xianhe Group has been awarded the title of"Standard Innovative Enterprise - Junior" bythe National Standard Innovative EnterpriseManagement Information Platform.
February 2024
The company organizes a voluntaryblood donation activity.Xianhe, together with Zhefeng NewMaterials, organized managementsystem training sessions.The Committee of the Communist Partyof China at Xianhe Co., Ltd. has beenawarded the honorary title of "AdvancedPrimary-Level Party Organization" inQuzhou Intelligent Manufacturing NewCity for 2023 by the Working Committeeof Quzhou Intelligent Manufacturing NewCity of the Communist Party of China.Hubei Xianhe's PM1 SuccessfullyCommences Operation.
March 2024
The company held the ?fth speech competition withthe theme of "Youth and Going to the Place theCompany Needs the Most".Xianhe, together with Zhefeng New Materials,organized management system training sessions.Guangxi Xianhe Successfully Commissions and StartsUp a 200,000-Ton-Per-Year Chemi-Mechanical Pulpand Wet Pulp Board Production Line, AchievingProduction Capacity.Hubei Xianhe's No.2 Pulping Line SuccessfullyCommissioned and Operating Smoothly.Zhefeng New Materials' 42MW/284.884MWh energystorage project achieved grid connection and wasof?cially commissioned.
April 2024
Xianhe Co., Ltd.'s mechanical and electricalrepair section has been awarded the "2024National Worker Pioneer" by the All ChinaFederation of Trade Unions.The company will organize physical examina-tions for all cadres and employees in batchesfor the year 2024.The Xianhe Party Committee and the QuzhouLibrary Party Branch jointly held a themed partyday event titled "Remembering History,Remembering Mission, and Contributing to theProsperity and Strength of the Country".Xianhe Group has been awarded the "DigitalDemonstration Enterprise and DCMM Certi?edEnterprise" by the China Electronic InformationIndustry Federation.Zhejiang Xianlu New Materials Co., Ltd., asubsidiary of the company, has obtained the"DCMM Certi?ed Enterprise".Zhefeng New Materials Organizes ExcellenceAwards and Bonus Distribution.Zhefeng New Materials Hosts First Batch ofExternal Boiler Certi?cation Training — TheoryExam.Zhefeng New Materials Conducts Phase I,Session VI of Management System Training.
May 2024
The Xianhe Youth League Committee held InternationalChildren's Day activities.The company has launched a public course on penetrat-ing customer service.The company collaborates with Quzhou Sports PromotionHealth Center to conduct health lectures and monitoringservices.The company conducted ?re safety training and emergen-cy drills, and invited instructors from the DonggangDevelopment Zone Fire Brigade of Zhizao New City to givelectures.The company invites experts to provide TPM equipmentmanagement training for all employees of the company'smechanical and electrical equipment personnel.Hefeng New Materials Recognized as a Pilot Unit forVocational Skill Level Certi?cation and Launches AdvancedPapermaking Worker Training Program.Zhefeng New Materials Conducts Phase I, Session VII ofManagement System Training and Shares PracticalApplications of the Management System.Henan Xianhe Organizes Training on the Human ResourceManagement System.Guangxi Xianhe’s PM2 Successfully Commences Operation.Xianhe Quzhou Headquarters' 22.36MW/44.72MWh energystorage project achieved grid connection and wasof?cially commissioned.
June 2024
The company held the 3rd Safety Production Knowledgeand Safety Operation Regulations Competition.July 2024
The Xianhe Labor Union and the Smart Manufacturing NewCity Federation of Trade Unions jointly held a summer careclass in two phases.July and August 2024
The purchasing center and packaging R&D team of MengniuGroup visited Xianhe Co., Ltd. and its subsidiary ZhefengNew Materials for a one-day exchange activity.Xianhe Group Party Committee Holds a Thematic Session on“Studying the Spirit of the 20th CPC Central Committee’sThird Plenary Session | Promoting Corporate Culture toContribute to High-Quality Development”Guangxi Xianhe Successfully Commissions and Starts Up a400,000-Ton-Per-Year Chemical Pulp Production Line,Achieving Production Capacity.
August 2024
The company has specially invited well-known domesticeducation experts to conduct a training session for all employ-ees on the theme of "Learning to Change Mindset and Live aHappy Life through Changing Mindset".Zhefeng New Materials Organizes Theoretical and PracticalExams for Advanced Papermaking Worker Certi?cation Training.Hubei Xianhe’s PM3 successfully commences operation.
August and September 2024
Xianhe Group's key technology and applicationproject for lightweight green manufacturing ofpaper-based new materials has won the "SecondPrize" of the Zhejiang Provincial Science andTechnology Progress Award issued by the ZhejiangProvincial People's Government.Xianhe Group has obtained the "High techEnterprise" certi?cate issued by the ZhejiangProvincial Department of Economy and Informa-tion Technology, the Zhejiang Provincial Depart-ment of Finance, and the Zhejiang ProvincialTaxation Department of the State Administration ofTaxation.Zhefeng New Materials Hosts the 2024 AnnualEmployee Skills Competition.Zhefeng New Materials Recognized in the SecondBatch of 2024 Zhejiang Province “Specialized,Re?ned, Differentiated, and Innovative” SMEs.Zhejiang Tangfeng was awarded the certi?cate ofhigh-tech enterprise.
December 2024
The company holds the 2024 Employee Skills Competition.September and October 2024
The company organizes training on ?rst aid knowledge and
operational skills.
Zhefeng New Materials Hosts Company-Wide Fun Sports Games.
Guangxi Xianhe’s PM4 Successfully Commences Operation.
October 2024
Xianhe Group has beenawarded the "2023 OutstandingGrassroots Trade Union" by theQuzhou Intelligent Manufactur-ing New City Trade Union.Xianhe Group has beenawarded the "Zhejiang ExportFamous Brand" by the ZhejiangProvincial Department ofCommerce.Zhefeng New Materials AwardedHigh-Tech Enterprise R&D CenterRecognition.Zhefeng New MaterialsConducts Phase I, Session III ofManagement System Training.Hubei Xianhe's PM2 SuccessfullyCommences Operation.
January 2024
Zhefeng New Materials organizes con?nedspace operation drill and ?re drill.
November 2024
06ABOUT US05XIANHE CO., LTD 2024 Sustainability Report
2024 SUSTAINABLE DEVELOPMENTHIGHLIGHTS PERFORMANCE
0807XIANHE CO., LTD 2024 Sustainability ReportABOUT US
ESG Awards
Received B- Ratings from CDP for Climate
Change, Forests, and Water Security
Financial Performance
Operating RevenueRMB10,273.5774 million
Total AssetsRMB23,321.9080 million
Net Pro?t Attributable to Shareholdersof the Listed CompanyRMB1,003.8306 million
Green Development andLow-Carbon Transition
Quality First, Win-WinCooperation
People-Orientedand Shared Prosperity
Awarded Grade A in Wind ESG Rating
Environmental Protection InvestmentRMB1,086.6756 million
Public Welfare and CharityContributionsRMB
1.9616
million
R&D InvestmentRMB
134.2332
million
Employee Training Coverage100%
Safety Training Coverage100%
Number of EnvironmentalIncidents
Total Photovoltaic Power Generationl65,089,149kWh
Water Recycling Rate
98.11%
Product Quali?cation Rate
99.18%
Customer Satisfaction Score
91.64
Pulp Suppliers are Certi?ed with FSC,PEFC, or Equivalent Certi?cationsy100%
Corporate Action
Eliminating all forms of poverty worldwide
?Xianhe actively recruits local personnel in Guangxiand Hubei regions, fully utilizes local human resourc-es, drives employment, and injects vitality into localeconomic development. At the same time, povertyalleviation workshops are being carried out in Henanto help disadvantaged groups achieve nearbyemployment, improve their income levels, andpromote poverty reduction work.?Continuously donating every year to support variouspublic welfare undertakings, including helpingstudents from disadvantaged families completetheir studies, caring for elderly people living alone toimprove their quality of life, etc., conveying warmthand care, and contributing to the construction of aharmonious society.
Corporate Action
Ensure inclusive and equitable qualityeducation, providing lifelong learningopportunities for all citizens
?The company focuses on the comprehensivedevelopment of employees, providing them with agood learning platform, developing targeted trainingplans according to the needs of different positions,and actively supporting employees to receive reeducation, continuously improving their professionalskills and comprehensive qualities.
Corporate Action
Realizing gender equality and empoweringall women and girls
?Adhere to the principle of gender equality, respectwomen's rights, and ensure that female employeesenjoy equal treatment with male employees in theeconomic, social, and political ?elds.?Establish a Women Workers' Committee to
safeguard the rights and interests of femaleemployees. The committee was once honored as thesecond batch of "Trade Union Female EmployeeCharacteristic Work Brands" by the Of?ce of theZhejiang Provincial Trade Union Women's Workers'Committee.
Corporate Action
Clean drinking water and sanitationfacilities
?The company always attaches great importance to
the sustainable use of water resources, strictlycontrols water consumption, sets clear water-savinggoals, determines water use control red lines, andensures reasonable water use in all aspects.?The company continuously upgrades its wastewater
treatment equipment, strictly treats pollutants inaccordance with environmental protection require-ments, implements full process monitoring, andconducts regular water quality testing to ensurecompliance with discharge regulations.
United Nations Sustainable
10SUSTAINABILITY MANAGEMENT09
SUSTAINABILITY MANAGEMENT
Xianhe's Six MajorResponsibility Strategic
Measures
Guided by theconstruction of"family culture",promote harmoniousdevelopment
By using digital manage-ment methods such as ERP(Enterprise ResourcePlanning) and MES (Manu-facturing Execution System),precise control is achieved
Taking "three in one"and other multi systemcerti?cations as thestarting point, we willconsolidate thefoundation
Fully introduce theexcellent performanceevaluation mechanismand pursue excellence
Supported bytechnology andtalent, innovate anddevelop
Taking "Made in Zhejiang" asthe standard, we are movingtowards "Made in China2025", continuously improv-ing and innovating, pursuingperfection, and building aleading enterprise inhigh-performancepaper-based functionalmaterials that is "domesti-cally ?rst-class and interna-tionally advanced"
STRATEGY OF SUSTAINABLE DEVELOPMENT
XIANHE CO., LTD 2024 Sustainability Report
Corporate Action
Ensure that everyone has access toaffordable, reliable, and sustainablemodern energy?Actively planning the layout of the new energyindustry, establishing Xianhe New Energy, ZhefengEnergy, Guangxi Xianhe Energy, and Hubei XianheEnergy companies, focusing on distributed photovol-taic power generation, power sales services, andthermal energy supply, and promoting sustainabledevelopment.?Since 2014, solar photovoltaic power generationequipment has been used, and photovoltaic powergeneration has been deployed in various productionparks to effectively supplement production energy.
Corporate Action
Promote sustained, inclusive, and sustain-able economic growth, promote full andproductive employment, and ensure thateveryone has access to decent work?Advocate for "family culture", create employmentopportunities in the community, create a safe andlivable working environment for employees, andcontinuously improve their sense of happiness in life.?Over the years, we have continuously promoted theprosperity of education and provided solid supportfor cultivating young people through establishingeducation funds, awarding Wang Bendao scholar-ships, and participating in charitable donationprojects for impoverished college students.
Corporate Action
Adopting sustainable consumptionand production patterns?Actively seize the development opportunity of"replacing plastic with paper", continuously conductresearch and development of new environmentallyfriendly paper-based products, fully utilize rawmaterials and energy, and adhere to responsibleproduction principles.?Focusing on the research and manufacturing of
environmentally friendly and low-carbon productssuch as "carbon free printing products" and "carbonfree copy paper", promoting sustainable consump-tion with our main business as the guide.
Corporate Action
Take urgent action to address climatechange
?Establish a systematic climate change management
system, implement greenhouse gas emissionmonitoring plans based on internal energyconsumption, gradually conduct carbon inventory,formulate effective emission reduction plans, andpromote Xianhe towards the goal of low-carbontransformation and development.?Focusing on building an integrated industrial chain
for forestry pulp and paper, actively carrying outforestry construction, fully developing "carbon sink"resources, and contributing the positive strength ofenterprises to mitigate the impact of climatechange.
Corporate Action
Protect, restore, and promote sustainableuse of terrestrial ecosystems, sustainablymanage forests, combat deserti?cation,halt and reverse land degradation, andcurb the loss of biodiversity
?The company actively practices the principle of
sustainable procurement, integrates ecologicalprotection into supply chain management, andrequires suppliers to provide FSC or PEFC certi?cationto ensure that raw materials come from sustainablymanaged forests, promoting biodiversity conserva-tion and the rational use of forest resources.
Corporate Action
Advocate for building a peaceful andinclusive society to promote sustainabledevelopment, enabling everyone to accessjustice, and establishing effective, responsi-ble, and inclusive institutions at all levels
?Integrating compliance concepts into the operation-
al process and daily work of employees, creating anhonest, ef?cient, and stable operating environment.?Fully implement the concept of anti-corruption work,
establish a comprehensive anti-corruption man-agement system that covers all employees, andpromote the in-depth development of corporateanti-corruption culture through diversi?ed anti-cor-ruption management measures.
Main Responsibilities of ESG Committee
?Supervise the implementation and achievement of ESG vision,strategy, goals, and architecture;?Guide and supervise the ESG working group to conduct research,
analysis, identi?cation, evaluation, and response to risks related tothe company's environment, society, and corporate governance,and integrate ESG risks into the comprehensive risk managementof the enterprise;?The ESG committee reviews the company's ESG related reports and
important matters, and submits them to the board of directors forreview.
ESG Working Group
?Lead the development of ESG implementation paths and special
plans, and coordinate cross departmental resource allocation;?Promote the decomposition of ESG goals and performance evalua-
tion, and establish a normalized management mechanism for
environmental and social risks.
Each business unit and functional department?Implement ESG action plans, embed requirements such as
low-carbon transformation, compliant operations, and employee
care into business processes, and form a closed-loop manage-
ment through data monitoring, information disclosure, and
continuous improvement to ensure effective implementation of
ESG practices on the operational front line.
1211XIANHE CO., LTD 2024 Sustainability Report
Board of directors ESG Committee
Management
Execution Layer
Decision
layer
SUSTAINABILITY MANAGEMENT
SUSTAINABLE DEVELOPMENTMANAGEMENT ARCHITECTURE
The company has established a three-tier structure with clear rights and responsibilities and mutual support, jointly build-ing a sustainable development governance system covering strategy, operation, and execution, continuously improvingrelevant management systems, and ensuring that sustainable development work has rules to follow. Among them, the ESGcommittee regularly holds annual meetings to evaluate the operation of the company's sustainable development man-agement system, strengthen sustainable development risk control, promote the continuous improvement of sustainabledevelopment governance structure, and lay a solid foundation for high-quality and sustainable development.
1413
Xianhe Group always regards stakeholder participation as the core driving force for promoting sustainable development.The company establishes a multidimensional and normalized communication mechanism to systematically identify thevalue demands and development expectations of core groups such as investors, customers, employees, communities,and partners. By regularly conducting stakeholder surveys, questionnaire discussions, and assessing the importance ofESG topics, we continue to integrate the concerns of all parties into strategic planning and operational practices. We arecommitted to building a transparent and trustworthy dialogue platform, with a focus on dynamically responding to thedemands of stakeholders, and jointly building a sustainable development ecosystem that integrates economic and socialvalues.
STAKEHOLDER COMMUNICATION
Based on the material topics of the previous reporting cycle, combined with the latest industry trends, regulatory require-ments, and corporate development directions, we have comprehensively updated and optimized the material topics ofthis reporting period to further enhance the effectiveness of ESG management work. We have referred to the requirementsfor identifying material topics in the "Shanghai Stock Exchange Self Regulatory Guidelines for Listed Companies No. 14-Sustainable Development Report (Trial)" and "Shanghai Stock Exchange Self Regulatory Guidelines for Listed CompaniesNo. 4- Preparation of Sustainable Development Report", and distributed relevant questionnaires, fully considering theconcerns of stakeholders. We have used systematic methods to analyze the ?nancial importance and impact importanceof the topics, providing strong support for the company's sustainable development.
MATERIAL TOPICS ANALYSIS
Corporate GovernanceAddressingClimate Change
Anti Commercial Briberyand Anti-CorruptionStakeholder CommunicationEmployee Compensationand Bene?ts
Risk ManagementEnvironmentalCompliance ManagementOccupationalHealth and SafetyProduct and ServiceQuality and Safety
Impact Materiality
Employee Trainingand Development
Energy Utilization
Anti Unfair CompetitionPollutionProtection of EmployeeRights and Interests
Water Resources Utilization
Research andInnovationWaste DisposalData Security andCustomer Privacy Protection
Customer ServiceSocial Contribution
Circular EconomyRural Revitalization
Supply Chain Security
Financial MaterialityHigh
Main stakeholdersExpectations and demandsResponse measures
?Operate in accordance with the law?Integrity in Taxation?Creating jobs?Drive regional economic development?Environmental protectionGovernment
?Operating performance?Return on investment?Stable operation?Information Disclosure and Transparency
?Improve corporate governance?Strengthen risk management and control?Develop business strategies?Timely disclosure of information?Conduct investor roadshows and organizeinvestor research
?Persist in independent research and
innovation?product quality management?Improve customer service system?Understand customer satisfaction
?Observe law and discipline?Integrity in Taxation?Assist in improving people's livelihoods?Pay attention to pollution prevention and
control
Shareholder
?Protection of rights and interests?Compensation and bene?ts?Career Development and Promotion?Safe and comfortable working environment?Work-life balance
?Legally sign labor contracts?Provide welfare and care?Sharing the fruits of development?Improve training mechanism?Implement safety production
Staff
?High quality and diversi?ed products?Good service
Customer
?Fair procurement?mutual bene?t and win-win?Promote industrial development
?Persist in Sunshine Procurement?Integrity in performance?Conduct professional exchanges
Suppliers andpartners
?Promote community development?Public welfare and charity activities
?Charitable donation?Participate in volunteer activities
Community
?Public participation?Transparent management
?Accept public and media supervision?External publicity
Social organizationsand the public
XIANHE CO., LTD 2024 Sustainability ReportSUSTAINABILITY MANAGEMENT
High
CONSTRUCTION PROCESS
1615
LEADING GREEN CIRCULATION ANDEMPOWERING REGIONAL DEVELOPMENT
SPECIAL ARTICLE: "INTEGRATED CONSTRUCTIONOF FORESTRY, PULP , PAPER AND USE":
XIANHE CO., LTD 2024 Sustainability ReportSpecial article: "Integrated construction of forestry, pulp, paper and Use": leading green circulation and empowering regional development
Against the macro backdrop of global carbon peak and carbon neutrality, the paper industry is undergoing profoundchanges. As a resource and energy intensive industry, traditional papermaking relies on imported wood pulp and highenergy consumption manufacturing models, which not only exacerbates cost ?uctuations but also poses signi?cantuncertainty to the supply chain. At the same time, some regions in China with abundant resources but relatively laggingeconomic development urgently need industrial upgrading to improve resource utilization ef?ciency and promote localeconomic development.From a forward-looking strategic perspective, Xianhe Group has invested over 10 billion resources since 2020, focusing onthe construction of the "Forest Pulp Paper and Use Integration" project in Laibin, Guangxi and Shishou, Hubei. The projectdeeply integrates forestry resources, pulp technology, high-performance paper-based functional material manufactur-ing, and green energy, reshapes the industrial chain structure, and explores new paths for sustainable development in thepaper industry.
November 2020
Signed a strategic cooperation agreement withthe government of Laibin City, GuangxiMay 2022The construction of the "Annual Production of 2.5Million Tons of High Performance Paper basedNew Materials in Sanjiangkou New Area, Guangxi"project has of?cially started
June 2024
Guangxi Xianhe Phase I Project PM2 successfullyproduces paper and forms production capacity
April 2024The ?rst phase of the Xianhe project in Guangxihas successfully completed the commissioningand start-up of a 200000 ton chemical pulpproduction line and a wet pulp board productionline, forming production capacity
August 2024
The commissioning and operation of the 400000ton chemical pulp production line for the ?rstphase of the Xianhe project in Guangxi havesuccessfully formed production capacity
October 2024
Guangxi Xianhe Phase I Project PM4 successfullyproduced paper and formed production capacity
January 2025
Guangxi Xianhe Phase I Project PM3 successfullyproduced paper and formed production capacity
January 2021
Signed a strategic cooperation agreement withthe government of Shishou City, Hubei Province
February 2022
January 2024
March 2024
The construction of the "2.5 million tons peryear Hubei Shishou high-performancepaper-based new material circular economy"
project has of?cially started
Hubei Xianhe PM2 successfully producedpaper and formed production capacity
Hubei Xianhe PM1 successfully produced paper
and formed production capacity
April 2024Hubei Xianhe 2 # Chemical Machinery SlurryLine has been successfully debugged and
successfully produced slurry
May 2024
Hubei Xianhe 1 # Chemical Slurry Linesuccessfully delivered power and started
single machine debuggingSeptember 2024
Hubei Xianhe PM3 production line has beensuccessfully started and put into production
Usable RawMaterials
1817
NEW MODEL OF CIRCULAR ECONOMY
Forestry residuesOrganic matter returningRaw materials such aseucalyptus and reeds
Water forProduction Use
Pulp andPaper Making
LimeLime Mud
WastewaterSedimentation
Calcination
Black Liquor
Biomass PowerGeneration
Concentrationand Incineration
Digital procurementand warehouse managemen
Building an ef?cienttransportation network
The sustainable development of the paper industry should not be limited to end of pipe treatment, but should run throughthe entire industry chain, forming a closed-loop governance model from raw material acquisition, production andprocessing to energy utilization and waste recycling. Xianhe Group adheres to the circular economy concept of "zerowaste, low energy consumption, and responsibility", and relies on its bases in Guangxi and Hubei to build a green manu-facturing system that integrates "forestry cultivation, pulp and paper production, and waste resource utilization".Xianhe Group, based on a deep awareness of sustainable development, introduced the practical experience accumulatedby the Quzhou headquarters for many years in the early stage of project planning. By optimizing the energy structure andbuilding a waste recycling system, it achieved the ef?cient implementation of circular economy in the new productionbase. The Guangxi base has launched a 20MW rooftop photovoltaic project and plans to explore more possibilities in windpower development to further increase the proportion of clean energy.
NEW STRATEGY FOR SUPPLY CHAIN SECURITYIn recent years, extreme weather and geopolitical con?icts have occurred frequently, leading to intensi?ed price ?uctua-tions in the global wood pulp market and increased uncertainty in the international supply chain. Domestic paper compa-nies are generally facing challenges such as dependence on imported raw materials, cost ?uctuations, and fragile supply.Based on the strategy of "strengthening the chain, supplementing the chain, and stabilizing the chain", Xianhe Group hasbuilt an independent, controllable, ef?cient, and stable raw material supply system through the full industry chain layoutof its bases in Guangxi and Hubei, creating a supply chain security paradigm for the paper industry.
Burning wood chip waste and introducing black liquor incineration power generation technology canachieve partial self-suf?ciency in energy sources such as steam and electricity, effectively reducingcarbon emissions and reducing dependence on fossil fuels.The sludge after sewage sedimentation is used for forest fertilization, and white mud is used ascement raw material to build a zero waste production system and reduce solid waste emissions.
The Xianhe Guangxi Base is located in the largest eucalyptus planting area in China, while the Hubei Base relies on poplarand reed resources in the Yangtze River Basin. Through a diversi?ed supply system of "independent forest land+contract-ed forest land+national storage forest cooperation", it ensures stable supply of raw materials, achieves sustainable woodsupply, effectively avoids the impact of market price ?uctuations, reduces dependence on imported wood pulp, andachieves the strategic goal of localizing the supply chain.
The fast-growing eucalyptus resources in Guangxi are abundant, and the local government hasincluded the Xianhe project as a key project and promised to provide policy support and timbersupply guarantees.The poplar and reed industry chains in Hubei are well-established, and the government activelypromotes the development of renewable ?ber resources. A long-term cooperation mechanism hasbeen established with Xianhe to jointly build an ecological protection and industrial coordinateddevelopment model.
Build an intelligent supply chain managementsystem to achieve re?ned operation of raw materialdemand forecasting, inventory management, andlogistics scheduling, and improve supply chain?exibility.
The Guangxi base plans to construct railway linesand water transport terminal berths, while the Hubeibase utilizes the advantages of Yangtze River watertransport to enhance logistics ef?ciency and achieverapid circulation of pulp and paper raw materialsand products.
XIANHE CO., LTD 2024 Sustainability Report
Localized supply chain layout to reduce costs and increase ef?ciency
Intelligent supply chain management to enhance industry resilience
Special article: "Integrated construction of forestry, pulp, paper and Use": leading green circulation and empowering regional development
2019
NEW ENGINE OF REGIONAL ECONOMY
Practice andeffectiveness
Guangxi Xianhe Project Rendering
Infrastructureconstructionand effectiveness
The central and western regions of China have long been limited by issues suchas a single industrial structure, limited employment opportunities, and weakinfrastructure, making it dif?cult to unleash the potential of local resources. Theconstruction of Xianhe Group's bases in Guangxi and Hubei closely aligns withthe national strategy for high-quality development in the central and westernregions, promotes the optimization of local economic structure and industrialupgrading, and drives the coordinated development of upstream and down-stream industries, promoting the transformation of local resource advantagesinto economic advantages and empowering regional economic takeoff.
The company spontaneously invests in repairing highways to enhance regionaltransportation convenience.With the support of 5,000 acres of land provided by the government in SanjiangkouNew Area, Guangxi, Xianhe is leading the construction of integrated supportingequipment such as power facilities, sewage treatment facilities, talent apartments,and schools in the park, accelerating the construction of industrial clusters.
The successful launch of the "Integration of Forestry, Pulp, Paper and Use" project is an important milestone for the compa-ny's development. We hope to work hard to move forward and create replicable examples of sustainable development forthe industry. In the future, Xianhe Group will continue to deepen the circular economy model, increase investment intechnological innovation, expand the application of clean energy, truly become a green closed-loop enterprise in the pulpand paper industry chain, help the paper industry achieve green transformation, and contribute Xianhe's strength to thenational "dual carbon" strategy.
XIANHE CO., LTD 2024 Sustainability Report
Xianhe Group provides over 2,600 job opportunities in Guangxi and Hubei, withmore than 90% of them being local residents. The company also offers salariesfar exceeding the local average income level, effectively improving the quality oflife for residents and alleviating the phenomenon of labor out?ow.
Promote employment and increase residents' income
Attracting migrantworkers to returnhome for employ-ment and stabilizingthe local labormarket
Plan to establish a'poverty alleviationworkshop', provide?exible employmentopportunities, andsupport rural labor tointegrate into theindustrial chain
Cooperate withvocational collegesto provide skillstraining, enhancelocal talent reserves,and promote theimprovement ofemployment quality
The company has not only established a complete papermaking industry chain, but also has a driving effect on theupstream and downstream industries. The implementation of the project has directly promoted the development ofpapermaking calcium and lime calcium enterprises. The signi?cant increase in demand for ?llers during the pulp makingprocess has provided opportunities for related enterprises to expand their production capacity and market. At the sametime, paper chemical enterprises also bene?t from the large-scale production demand of the base, further promoting thedevelopment of localized supply chains. With the gradual release of production capacity, paper processing enterpriseshave also ushered in new growth space, such as strong demand for paper-based product manufacturing in various ?eldssuch as food packaging and cultural printing, accelerating the upgrading of the paper processing industry in the region.The project of Xianhe Group not only improves the papermaking industry chain, but also provides new opportunities forthe development of multiple industries such as local mineral processing, ?ne chemicals, deep processing of paper prod-ucts, and logistics transportation. It has formed a high value-added, diversi?ed and mutually reinforcing industrial cluster,which helps promote the high-quality development of regional economy.
Promote the development of industrial clusters
Special article: "Integrated construction of forestry, pulp, paper and Use": leading green circulation and empowering regional development
Addressing climate change
Water resource management
Pollution control
Circular economy
Ecosystem protection
GREEN DEVELOPMENT,LOW CARBON TRANSFORMATION
ENVIRONMENT
Xianhe Group adheres to the concept of "Green China, Clean Factory", with a high sense of social responsibility andmission, and through advanced technology and management methods, promotes substantial results in environmentalprotection work. It is committed to building a resource-saving and environmentally friendly enterprise, pursuing theharmonious unity and mutual bene?t of the enterprise, environment, and society.
Environmental compliance management
2423
ENVIRONMENTAL COMPLIANCE MANAGEMENT
Key PerformanceNumber of ?reaccidents:
Number of oil and chemicalleakage accidents:
Collection rate of hazardoussubstance detection reports forraw materials:
100%
Environmental Goals for 2024
Xianhe Group has established and improved institutional documents and governance structure, clari?ed the allocation ofresponsibilities and execution processes for environmental management work, and formed a comprehensive and reliableenvironmental management system with clear responsibilities, ensuring the environmental compliance of all productionactivities of the company and providing strong support for the achievement of the company's environmental protectiongoals.
Xianhe Group strictly abides by laws and regulations such as the Environmental Protection Law of the People's Republic ofChina and the Environmental Impact Assessment Law of the People's Republic of China, and has formulated and imple-mented a series of environmental protection procedures such as the Environmental Management System, EnvironmentalOperation Control Procedure, and Environmental Factor Identi?cation and Evaluation Procedure.The company has established a three-level environmental protection and clean production management networkconsisting of company, department, and branch factories, to carry out comprehensive, all staff, and whole processenvironmental protection and clean production management, as well as environmental protection technology supervisionwork.The Environmental Protection and Clean Production Management Committee is the highest management body forenvironmental protection and clean production in the company, the committee fully implements the environmentalpolicies, guidelines, and regulations of the national and higher-level competent departments, coordinates and managesthe company's environmental protection work, and organizes and carries out related work such as environmental supervi-sion and testing. The committee has established an Environmental Protection and Clean Production Of?ce,equipped with professional technical personnel related to environmental protection and cleanproduction, responsible for daily supervision and inspection of the company's environmentalgovernance situation, as well as undertaking the statistics, archiving, and reporting of environ-mental information. Each factory shall establish an environmental protection and cleanproduction leadership group, with the factory director serving as the group leader,responsible for designing, organizing, and implementingenvironmental protection and clean production plans,and supervising the implementation of environmentalprotection measures on the production site.
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
Environmental Management System
Environmental Protection and Cleaner
Production Management Structure
Environmental Protection and CleanerProduction Management Committee
Environmental Protection and
Cleaner Production Of?ce
Board of Directors
ESG Committee
Sub-plant Environmental Protection and
Cleaner Production Leadership Team
Wastewater Treatment Facility
2625
In 2024
Environmental PollutionEmergency Plan
Emergency drill forsudden environmentalincidents
Environmental riskprevention andcontrol
HazardousChemicalsSpill Drill
Environmentalprotection training
The company adheres to the principle of "prevention ?rst, self rescue ?rst, uni?ed com-mand, and division of labor and responsibility". Based on the characteristics ofsewage treatment and ?ue gas treatment processes and factors that may lead toaccidental emissions, the company has developed emergency plans for accidentaldischarge of sewage and ?ue gas, clari?ed the processing procedures and precau-tions for various discharge accidents, and improved the prevention and disposalcapabilities for sudden environmental pollution incidents.The company regularly organizes employees to conduct emergency drills for suddenenvironmental incidents. In 2024, the company focused on conducting emergencydrills for hazardous chemical spills, providing detailed explanations and practices onspeci?c disposal methods and precautions for spills. The drill simulated real leakagescenarios, enabling participants to have a deep understanding of the emergencyresponse process for hazardous chemical spills, and signi?cantly improving the prac-tical abilities of relevant personnel. It accumulated valuable experience for the com-pany to quickly and effectively handle sudden environmental incidents in the future,further enhancing the overall emergency response level and environmental protec-tion awareness of the company.The Production Technology Department is responsible for identifying and evaluatingenvironmental factors related to the entire lifecycle of the company's activities, prod-ucts, and services, and compiling a 'List of Important Environmental Factors'. This listwill be regularly updated based on annual evaluation results to ensure effectivecontrol and continuous improvement of environmental impacts.The company regularly organizes training and promotional activities related toenvironmental protection, aiming to enhance employees' environmental awareness,strengthen their sense of environmental responsibility, and promote the implementa-tion of green development concepts. The training content covers multiple aspectssuch as environmental regulations, pollution prevention and control, and resourceconservation. At the same time, practical exercises and case analysis are conductedbased on the operation and management of the company's existing facilities andequipment, continuously enhancing employees' attention to environmental protectionwork and promoting the integration of environmental protection concepts into enter-prise operations.
The company comprehensively manages environmental protection equipment and facilities, strictly implements a regularinspection, maintenance, and acceptance system, conducts regular inspections and maintenance of equipment,pipelines, valves, etc., timely repairs or replacements of components with safety hazards, ensures that all environmentalprotection facilities and equipment are in good condition and operate at standard rates, and guarantees that dailyproduction activities comply with environmental compliance requirements.
Xianhe Co., Ltd. is one of the ?rst "ZhejiangGreen Enterprises" and a "National GreenFactory" evaluated by the Ministry ofIndustry and Information Technology inZhejiang Province.Xianhe Shares, Zhefeng New Materials,Xianlu New Materials, Henan Xianhe,Zhejiang Tangfeng, and Korai NewMaterials have passed ISO 14001environmental management systemcerti?cation.
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
Daily monitoring of environmental protection equipment
To ensure that the use and storage of hazardous chemicals in itsbusiness premises comply with national laws, regulations, andrelevant standards, the company entrusts quali?ed externalorganizations to conduct comprehensive and in-depth compli-ance reviews on a regular basis. The scope of review covers allrelevant areas within the business premises, including chemicalstorage warehouses, production workshops, laboratories, as wellas various facilities and equipment related to the use andstorage of hazardous chemicals, such as storage tanks, convey-ing pipelines, ventilation systems, ?re-?ghting equipment, etc.The review covers various operational processes involvinghazardous chemicals, such as loading, unloading, handling, use,and disposal, to ensure standardized operations and controlla-ble risks; And the management system for hazardous chemicals,including institutional construction, personnel training, emergen-cy plans, labeling management, and ledger records, to ensurethat management measures are complete and effectivelyimplemented.
Environmental Compliance Inspection
Key Performance
Hold a special conference on environmentalprotection and energy conservationthroughout the year4 OrderEnvironmental protection investment1,086.6756 million yuan
The company's af?liated enterprises haveformulated and ?led emergency responseplans with the environmental protectiondepartment8 Individual
Emergency drill for sudden environmentalincidents throughout the year2 Order
Environmental penalty incidents and amountsresulting from excessive or illegal dischargeof pollutants0 thousand yuan
Number of sudden environmental incidents0 Piece
Key Performance
Proportion of employees covered by envi-ronmental protection training100%
COPING WITH CLIMATE CHANGE
Climate goals
a. Climate physics risks
Climate related risks and opportunities
Risk type
Acute
risk
Chronic
risk
Medium
Low
Riskdescription
Possible negativeimpacts
Main ?nancialimpact
CountermeasuresProbability
2827
Governance
Strategy
Risk ManagementMetrics & Targets
Climate change has become an important challenge faced by countries around the world today. The paper industry is anenergy intensive industry, and its key production processes such as pulp making, bleaching, and paper drying involvesigni?cant energy consumption and carbon emissions. Xianhe Group actively responds to the national "dual carbon"target, identi?es the risks and opportunities brought by climate change, and incorporates climate management into thedaily key work of relevant departments. In addition, the company has established a comprehensive energy and carbonmanagement system to comprehensively control daily energy consumption and greenhouse gas emissions. At the sametime, by implementing energy-saving and carbon reduction technologies, applying clean energy and other measures, thecompany actively promotes its low-carbon transformation process and helps achieve sustainable development goals.
Incorporate climate change response into thecompany's sustainable development gover-nance system, with the board of directorsresponsible for leading decisions on climaterelated matters, the ESG committee coordinatingand supervising the implementation of climategovernance related work, and subordinatedepartments implementing speci?c measures.
Analyze the actual and potential impacts ofshort-term, medium-term, and long-termclimate risks and opportunities on the company'sbusiness and ?nance, and integrate sustainabledevelopment related content into the overallcompany strategy based on the analysis results.
Based on policies, regulations, industry trends,and expert advice, we will systematically identifyand evaluate climate risks and opportunitiesrelated to our own operational activities andvalue chain, taking into account the currentbusiness situation of the company. We willdevelop and regularly update risk and opportu-nity management measures.
Regularly collect, verify, and disclose greenhousegas emissions and emission densities toevaluate the implementation effectiveness of thecompany's overall climate managementmeasures, and based on the above data,develop scienti?c carbon management goals tocontinuously promote the company's low-car-bon transformation.
Xianhe Group actively responds to the national Carbon Peaking and Carbon Neutrality Goals,striving to achieve carbon peak before 2030 and carbon neutrality before 2060, and workingtogether with all sectors of society to promote the achievement of dual carbon goals andParis Agreement goals.
?The company plans transportation backup
routes in advance, continuously monitors theweather conditions of supplier and customerlocations as well as logistics routes, andtimely initiates emergency logistics plans.?The company will reserve a certain amount of
raw material inventory to avoid interruptionsin raw material supply caused by extremeweather events.
XIANHE CO., LTD 2024 Sustainability ReportENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATION
Based on the recommendations of the Climate Related Financial Disclosure Working Group (TCFD), Xianhe Group hasconstructed a climate change management system for the company from four levels: setting indicators and targets, riskand opportunity management, strategic planning, and corresponding governance measures.Climate Change Management System
Typhoon,rainstorm, hailand otherextremeweather eventsoccur frequently
?Delay in transporta-tion of raw materialsor products?Damage to goods
and transportationvehicles?Increased supplychain instability?Shortage of rawmaterials anddecrease?Production plan
postponed
?Personnel injuries
such as heatstrokeand frostbite?Reduced produc-
tion safety andstability
?Increased transpor-
tation costs?Additional raw
material procure-
ment cost?Delivery delay,
revenue decline
High
?The company strengthens the diversi?cationof its supply chain, actively seeks alternativesuppliers, and ensures their wide geographi-cal distribution, reducing dependence on asingle supplier and mitigating the impact ofweather disasters in concentrated areas.?To ensure the supply of raw materials, the
company has developed its own andcooperative forest land in Hubei and Guangxiregions, and built an integrated project for"forest pulp paper use" to improve the overalloperational ef?ciency of the supply chain.?The company will conduct extreme weather
monitoring and warning in advance, andprovide employees with suf?cient heatstrokeand cold prevention facilities to ensure thatthe workplace temperature is suitable.?During extreme weather conditions, adjust
working hours or implement a shift system toreduce the time employees are exposed toextreme high or low temperatures.?The company will develop a comprehensivedisaster emergency plan and regularlyorganize natural disaster emergency drillsand training to enhance its ability to respondto extreme weather conditions.
There is a highrisk of naturaldisasters, such asearthquakes and?res, in majorwood pulp supplyareas such asSouth America
Persistentextreme heator coldweather
?Increased cost of
raw material
procurement?Production delay,
revenue decline?Delivery delay
resulting in breach
of contract and
compensation costs
?Increased medical
expenses for
personnel?Production delay,
revenue decline
?The company regularly maintains and
inspects production equipment and facilities,and protects and maintains the equipmentbefore extreme weather arrives to preventoverheating or freezing.?The company has developed emergency
plans for equipment failures and coordinatedproduction resources in a timely manner toreduce the impact of extreme weather on thecompany's business.
?The operational
ef?ciency ofequipment andfacilities decreases,even leading tomalfunctions anddamages?Reduced production
safety and stability
?Increased basic
operating costs?Increased asset
maintenance costs?Production delay,
revenue decline
Low
b. Climate transition risksRisk type
PolicyandLegalRisks
Riskdescription
Possible negative
impacts
Main ?nancialimpact
CountermeasuresProbability?The company continues to promote the
"integration of forestry, pulp and paper"strategy, actively develops forestry carbonsinks, and carries out energy-saving andcarbon reduction transformations ofproduction processes and equipment,striving to achieve the company's "carbonneutrality" goal as soon as possible.?The securities legal department of the
company will closely monitor and trackenvironmental issues?The changes in laws and regulations ensurethat the company's operations alwayscomply with environmental compliancerequirements.
Global carbonpricingcoverageexpands andemissionstandardsbecomestricter
?Daily productionand operation areaffected
?Compliance andrising businessoperating costs?Carbon taxincrease orenvironmentalpenalty
Technicalrisk
?The company will carefully evaluate thefeasibility of low-carbon technology andadopt a gradual upgrade strategy in theshort term, investing funds in stages toupdate equipment and production lines.?The company will actively cooperate withuniversities and research institutions tojointly promote the research and develop-ment of low-carbon technologies and thetransformation of achievements.
Applying greentechnology toreduce theconsumptionof water,energy, andmaterials
?The existing
technology isoutdated?Immature new
developmenttechnology or poorimplementationeffect
?Green technology
research anddevelopmentcosts?Costs of upgrad-
ing or replacinghigh emissionequipment andproduction lines
High
High
Medium
Marketrisk
?The company continues to develop and
produce low-carbon and environmentallyfriendly products to meet customerdemands.Industry trendsand changesin customerbehavior
?Changes in
consumerpreferences andreduced demandfor traditional highcarbon products
?Market share
decreases,revenue declines
c. Climate Opportunities
Opportunity
type
Energie-wende
Opportunitydescription
Possible positive
impacts
Main ?nancial
impact
CountermeasuresProbability
?The company actively invests in the
construction of clean energy projects suchas solar energy, wind energy, biomassenergy, and energy storage projects tooptimize its energy structure.Clean energyapplication
?Reduce dependence
on traditional fossilfuels?Reduce carbon
emissions
?Energy cost savings?Additional govern-
ment subsidies ortax incentives
Products
andServices
?The company combines market and
customer demand to accelerate thedevelopment of green and environmentallyfriendly products, such as products that arebiodegradable, recyclable, or containrecycled components, to assist in thelow-carbon transformation of the valuechain.?The company enhances the market
awareness and recognition of low-carbonproducts through brand promotion, greencerti?cation, and other means.
Demand forlow-carbon andenvironmentallyfriendly productsand services
?Green consumer
group expands?Brand image
enhancement
?Income growth
High
High
NewMarket
?The company seizes the market opportunitybrought by the growth of demand, andpromotes the substitution of environmen-tally friendly paper-based materials inindustries such as food, daily chemical, andpackaging by researching and producingpaper straws, paper bags, paper boxes, andother alternatives to plastic products.Popularize theconcept of"replacing plasticwith paper"
?Enhance product
attractiveness?New cooperation
opportunities
?Income growth
High
ReputationRisk
?The company plans to expand the productrange for implementing full lifecycle carbonfootprint tracking and evaluation, andfurther research and analyze methods toreduce product carbon footprint andenvironmental impact.?While taking proactive and effective actions
to address climate change, the companyalso promptly discloses information inresponse to the informed needs of externalstakeholders.
Slow or poorperformance inclimate action
?Brand image
damaged?Negative evalua-
tions from
stakeholders?Social public
opinion pressure
?Customer churn
and revenuedecline
LowHigh
Key Performance
In 2024, the company actively responded to international environmental initiatives, carried out CDP ques-tionnaire ?lling work, and obtained B-level in three themes: climate change, forest protection, and waterresource management.
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
3231ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
To actively respond to carbon management requirements from regulators and downstream customers, Xianhe Co., Ltd.launched internal carbon accounting in 2022. It has now completed a comprehensive carbon emissions inventory for itsQuzhou headquarters and major subsidiaries, providing data support for the formulation of scienti?c and reasonableemission reduction targets and pathways. In 2024, Xianhe Co., Ltd.(Factory at No. 69 Tianhu South Road)and Zhefeng NewMaterials have obtained greenhouse gas inventory reports after rigorous assessments, demonstrating compliance andtransparency in GHG management.
In addition, the company has continued expanding its product carbon footprint coverage. In 2024, it collaborated withprofessional external institutions to complete carbon footprint assessments for products such as Bible paper and glassinepaper, obtaining carbon footprint certi?cation to enable comprehensive lifecycle emission evaluation.
*Due to increased production, total GHG emissions of Zhefeng New Materials rose compared with previous years,while emissions per ton of paper declined.
*The carbon footprint assessment scope covers raw material acquisition, transportation, and manufacturing stages.*With ongoing enhancements in carbon management capabilities, the carbon footprint of glassine paper has signi?cantlydecreased compared to the previous year.
2024Unit
tCO
etCO
etCO
etCO
e
Indicator
Total Greenhouse Gas EmissionsScope 1 GHG EmissionsScope 2 GHG EmissionsScope 3 GHG Emissions
2024Unit
kgCO
e / kg of paperkgCO
e / kg of paper
IndicatorProduct Carbon Footprint – Bible PaperProduct Carbon Footprint – Glassine Pape
Carbon Inventory Results – Zhefeng New Materials
2024Unit
tCO
etCO
etCO
etCO
e
IndicatorTotal Greenhouse Gas EmissionsScope 1 GHG EmissionsScope 2 GHG EmissionsScope 3 GHG Emissions
Carbon Inventory Results – Xianhe Co., Ltd.(Factory at No. 69 Tianhu South Road)Carbon Emission Management
Xianhe Group adheres to the principles of "law-abiding innovation, energy conservation and consumption reduction, greenproduction, and continuous improvement". Based on ISO 50001:2018 "Energy Management System Requirements", RB/T 118-2014"Energy Management System Certi?cation Requirements for Pulp and Paper Enterprises", and national energy related laws andregulations, Xianhe Group has developed the "Energy Management System Management Manual" and a series of proceduraldocuments to continuously improve energy utilization ef?ciency and optimize energy usage, promote the achievement ofenergy conservation and consumption reduction goals, and enhance the company's sustainable development capabilities.The company has established a comprehensive energy management system and continues to promote the systematizationand standardization of energy management work. The Energy Management Leadership Group serves as the leader, with mem-bers including the supervisors of each branch and the company's energy administrator, mainly responsible for the rational useand monitoring control of resources and energy. The Energy Management Leadership Group has established an EnergyConservation Management Group to formulate rules and regulations for speci?c energy consumption behaviors such aselectricity and steam, ensuring the effective implementation of energy-saving, consumption reducing, and ef?ciency increas-ing measures.
Accurate energy consumption control is a key factor in achieving ef?cient resource utilization and improving overall operationalef?ciency. The company installs energy metering equipment such as electric meters and gas meters in energy consumingequipment such as boilers, motors, and drying equipment, and sets energy metering equipment allocation indicators to ensurethat the equipment statistics cover all external settlement equipment, departmental workshop equipment, and key energyconsuming equipment.In addition, the company has established a systematic energy measurement management system and formulated energymeasurement management systems such as the "Energy Measurement Record Control Procedure", "Energy MeasurementInstrument Equipment, Use and Maintenance Management Procedure", and "Energy Measurement Data Collection, Processing,Statistical Analysis and Application Management Procedure" to ensure the accuracy and real-time performance of variousenergy consumption data. The company has set up a standard measurement room on the production site and equipped itwith a dedicated measurement administrator. Under the direct leadership of the production plant manager, it works closelywith the energy administrator to ensure the effective operation of the company's overall energy measurement system. Themetrology room administrator is responsible for the regular inspection, calibration, and maintenance of instruments andmeters; Each branch is responsible for the daily inspection and management of their own energy metering equipment toensure stable operation of the equipment.
Energy Management System
In response to the national energy conservation and emission reduction policies, the company continuously strengthensits sense of responsibility for energy conservation and emission reduction, and clari?es the energy-saving goals andresponsibilities of each department through the establishment of a responsibility system. Through a comprehensiveanalysis of the production process, a detailed analysis of energy consumption in areas such as raw material processing,process adjustment, production scheduling, and equipment utilization is conducted to identify potential energy-savingpoints and develop practical and feasible energy-saving measures.
Energy saving and consumption reducing measures
Xianhe Group adheres to the development concept of "using paper to support forests and forests to promote paper",promotes sustainable utilization of forestry resources through integrated projects of forestry pulp and paper, and activelydevelops forestry carbon sinks. At present, the company is steadily advancing its two major projects in Laibin, Guangxi, withan annual output of 2.5 million tons of high-performance paper-based new materials in Sanjiangkou New Area, Guangxi,and Shishou, Hubei, with good progress.
Forestry carbon sink development
Con?guration and Maintenance of Energy Metering Equipment
The company applies EMS to unify and summarize the energy consumption data collected by measuring equipment, and usesbig data analysis technology to ?nd potential energy-saving opportunities and optimization space. For example, by comparingand analyzing the energy consumption patterns of different time periods, workshops, and equipment, identifying energy wastelinks and optimizing them; Optimize boiler combustion control strategy, automatically adjust fuel supply and air intake accord-ing to steam demand, thereby improving combustion ef?ciency and reducing natural gas consumption.
Energy Management System (EMS) and Big Data Analysis
Energy Management System
3433
Key Performance: 2024 Energy Target
Upgrade the technology of motors for somelarge equipment, replace traditional motorswith more ef?cient servo motors, and activelypromote the application of permanent magnetservo motors.Replace some high energy consumingtransformers with low-energy consumingtransformers, while reducing no-load and loadlosses.More than ten high-ef?ciency energy consum-ing equipment were purchased, andenergy-saving renovations were carried out onenergy consuming equipment such as dryingcylinders, downward paper rewindingmachines, and double disc pulping machines,further improving the energy ef?ciency in theproduction process.
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
In 2024, Xianhe Headquarters signed an energy-saving target responsibility agreement with the Economic DevelopmentDepartment of Quzhou Intelligent Manufacturing New City, setting a goal of "saving550 tons of standard coal" andsuccessfully achieving the standard through technological transformation.
Energy Saving and Carbon Reduction Measures
Device updates
Optimize energy management in the of?ceprocess and promote green of?ce models.Choose energy-saving air conditioning andlighting equipment, set control programs toautomatically adjust the temperature and airvolume of the air conditioning, and reduce thepower consumption of the company's dailyof?ce work.
To effectively reduce employees' carbonfootprint, actively promote green and low-car-bon travel methods, encourage employees topurchase new energy vehicles, and installcharging stations and other supportingfacilities in the factory area to provide conve-nient charging services for employees andexternal personnel.
Green Of?ce
Low carbon travel
3635
Comprehensiveenergy consumption
Unit:Tons of standard coal
Unit:KWhUnit:Ton
Unit:Tons of standardcoal/tonne of paper
In 2024In 2023
In 2022
Comprehensive energyconsumption density
In 2024In 2023
In 2022
Power Consumption
In 2024In 2023
In 2022
Heat consumption
In 2024In 2023
In 2022
Steam usage
In 2024In 2023
In 2022
Renewable energy usage
Unit:KWh
In 2024In 2023
In 2022
Proportion of renewableenergy usage
Unit:%
In 2024In 2023
In 2022
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
Throughout its history, the company has actively practiced the concept of green development and is committed topromoting energy structure transformation and sustainable development. At present, photovoltaic power generationfacilities have been installed in all production parks of the company, with a cumulative installed capacity of 52.24 MW andan annual power generation of 51.7674 million kWh. While reducing electricity consumption, carbon emissions have beensigni?cantly reduced, providing strong support for achieving the "dual carbon" goal.At the same time, the company strongly supports the construction of user side energy storage projects to further improveenergy utilization ef?ciency. In April 2024, the subsidiary Zhefeng New Materials' 42MW/284.884MWh energy storageproject was successfully connected to the grid and of?cially put into operation, with a daily discharge of 250000 kilowatthours; In June of the same year, the 22.36MW/44.72MWh energy storage upgrade project of Quzhou headquarters wassuccessfully put into operation, with a monthly charging capacity of 25,0000 to 26,0000 kWh and a discharging capacityof 22,0000 to 23,0000 kWh, with an energy storage charging and discharging ef?ciency of 87% to 88%. The construction ofthe above-mentioned energy storage projects effectively solves the problems of intermittency, instability, and uncontrol-lability of new energy, greatly enhances the company's ability to consume renewable energy, improves the company'sautonomy and ?exibility in energy management, and further promotes the company's transition to green and low-carbon.The company's Hubei and Guangxi bases fully utilize biomass resources such as sawdust, bark, reeds, sludge, and solidsubstances extracted from black liquor for power generation, prioritizing their own production needs. Excess electricity isintegrated into the power grid to achieve ef?cient resource utilization and energy self-suf?ciency. Additionally, 20MW PVfacilities at Guangxi base and 16MW PV facilities at Hubei base are both under installation.The company will steadilyadvance related construction projects and continuously improve the green level of its energy supply.
Use of Clean Energy
Unit:Ton
*In 2024, the company revised its statistical scope and calculation standards for energy data.The relevant data in this report shall prevail.
Unit:Cubic Meters
In 2024In 2023
In 2022
Natural Gas Consumption
The paper industry is a typical high water consuming industry, which requires a large amount of water resources forprocesses such as washing, ?ushing, and quality adjustment during the production process. Xianhe Group attaches greatimportance to water resource management, strictly abides by laws and regulations such as the Water Law of the People'sRepublic of China and the Water Pollution Prevention and Control Law of the People's Republic of China, and has formulat-ed institutional documents such as the Water Measurement Management System, the Planned Water Use ManagementSystem, and the Water saving Equipment Management System. The company has established a Water ConservationOf?ce, under the leadership of the Clean Production Management Committee, to coordinate water resource managementwork, responsible for setting water use targets, decomposing tasks, and supervising the implementation of water-savingmeasures. The company continues to promote production water conservation measures and incorporates water-savingwork into regular management, comprehensively improving water resource utilization ef?ciency.
The company is committed to creating a water-saving enterprise, formulating the "Ten Year Plan for Water Conservation"from 2020 to 2030, and strictly promoting various water-saving measures in accordance with the planning requirements.At present, the company has successfully achieved various preliminary goals and plans to commission quali?ed units toconduct water balance tests by 2030. The company plans to conduct a water balance test to comprehensively under-stand the status of its own water supply network and the water usage status of each business link, accurately identify highwater consumption factors, and provide scienti?c basis for the formulation of water-saving measures.
WATER RESOURCE MANAGEMENT
3837
Strengthen equipment management
The company attaches great importance to the management of water-saving equipment andhas formulated the "Water saving Equipment Management System" to ensure the reasonablearrangement of the use, management, maintenance, and other work of water-saving appliances,fully realizing the bene?ts of equipment.Promote circular utilization
The company and its controlling subsidiaries have invested in the construction of water treatmentsystems such as intermediate water treatment systems, white water recovery systems (includingwhite water tanks, super ef?cient shallow air ?otation systems, etc.), sand ?ltration devices, steamre?ux water systems, etc., to recover and recycle water resources used in the production process,effectively controlling water resource usage. Currently, the water resource reuse rate can reachover 90%.
Index
Total water consumptionUnit production waterconsumptionTotal amount of watercycle and reuseWater cycle and reuseratio
UnitTonCubic metre/tonne of paperTon%
In 2024In 2023In 2022Upgrade and optimize the cleaningequipment, reduce the number ofnozzles, and shrink the nozzlediameter. After the renovation, theusage of water resources wasreduced by about 25%.
Optimize the process ?ow, replace thewater ring vacuum pump with amagnetic levitation vacuum pump inthe new project, achieve 100% waterfree, oil-free, low-noise, low vibration,and signi?cantly reduce environmen-tal pollution.
The cooling water for eachmachine production equipmentadopts an internal circulationsystem, which effectively reducesthe water temperature by addingcooling towers. The cooled water?ows back to the cooling systemto achieve recycling. At the sametime, a temperature controlsystem is installed at the outlet ofthe external drainage pipeline tofurther enhance the cooling effectand reduce the drainage volume.
Creating a water-saving culture
The company posts water-saving signs in major water use areas and appliances, organizes pre shiftand post shift meetings, creates a good water-saving atmosphere within the company, conductswater-saving publicity every year, and enhances employees' water-saving awareness.Strictly control water consumption
The company will re?ne and decompose the annual overall water-saving target to each branch, andset water consumption indicators, clarify the red line of water use control, in order to strengthen themanagement of water resource development and utilization. If the water usage situation changesdue to production plan adjustments, equipment updates, or process improvements, each branchfactory needs to submit an application to the water management department in advance, explainingthe reasons for the changes and the expected changes in water usage.
20,207,564.96
24.42
653,377,933.71
96.77
18,307,713.20
17.56
591,949,393.47
97.20
21,686,645.58
15.79
709,225,599.28
98.11
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
Water Use Targets and Progress
Water conservation target for 2024Key Performance
The water and electricity consumption per 10000 yuan of output value has decreased by1% compared to the previous year
In terms of production water, the company obtains government approval to draw water from reservoirs to ensure compli-ance with laws, regulations, and water resource planning. It uses water treatment and puri?cation technology to treatreservoir water to meet industrial water standards, ensuring stable supply of production water and avoiding the occupa-tion of drinking water resources. The company is equipped with high-precision water metering equipment in the produc-tion area to collect and transmit water usage data in real-time. The company relies on data to comprehensively analyzethe water usage during the production process, accurately identify high water consumption factors, and develop scienti?cwater-saving measures.
Production Water Conservation Measures
Shorten the interval time of cleaningequipment, reduce water wasteduring the cleaning cycle, anddecrease the annual waterconsumption of a single device.Strengthen the management ofequipment usage duration and takemeasures to stop using high-pres-sure cleaning water for productionunits that are not in use.
Normalized water-saving plan
4039
POLLUTION PREVENTION AND CONTROL
100% compliance rate
for production wastewater
discharge
Noise emission compliancerate of100%
Solid waste classi?cationcollection rate of100%
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
2024 Pollutant Emissions and Waste Management Targets
Key Performance
The company's wastewater is divided into cooking waste liquid (mainly black liquor) generated by chemical pulping,intermediate water generated during pulp washing and bleaching, and white water generated during papermakingaccording to the production process. The company independently builds sewage treatment equipment and continuouslyupdates treatment technology. Steaming and boiling waste liquid is recycled through alkali recovery system and blackliquor comprehensive utilization system. White water is directly reused in production after air ?otation or multi disc vacuum?ltration treatment. The intermediate water is treated through a series of processes such as initial sedimentation, anaero-bic, biochemical, sedimentation, sand ?ltration, etc., to remove suspended solids and impurities before being dischargedto the sewage treatment plant.The company regularly monitors key indicators such as pH value, chromaticity, suspended solids concentration, chemicaloxygen demand, biological oxygen demand, ammonia nitrogen concentration, phosphorus concentration, etc. of waste-water in accordance with the special discharge limit requirements stipulated in the "Discharge Standards for Water Pollut-ants in the Pulp and Paper Industry" (GB 3544-2008). If they exceed the standard, measures will be taken in accordancewith the "Accident, Incident, Non conformance, Correction and Prevention Control Procedure" to ensure the compliance andeffectiveness of wastewater treatment. At the same time, the company strictly follows the "Consultation and InformationExchange Management Procedure", fully listens to and absorbs the opinions, suggestions, and complaints of companyemployees and local residents, and promotes the continuous improvement of water pollution prevention and control work.
Wastewater ManagementXianhe Group strictly abides by laws and regulations such as the Water Pollution Prevention and Control Law of the People'sRepublic of China, the Air Pollution Prevention and Control Law of the People's Republic of China, the Solid Waste PollutionPrevention and Control Law of the People's Republic of China, and the Noise Pollution Prevention and Control Law of the People'sRepublic of China. It has formulated and strictly implemented the "Wastewater, Waste Gas, Solid Waste, and Noise ControlProcedure", continuously strengthened the comprehensive management of wastewater, waste gas, solid waste, boundarynoise, and sound source noise, and tried to recycle and reuse wastewater, waste gas, and solid waste as much as possible. Itimplements source control of noise to minimize its impact on the environment and human health.The company complies with the national environmental protection "three simultaneities" system in its business operations. Thepollution prevention and control facilities in the construction projects are designed, constructed, and put into operation simulta-neously with the main project, and have obtained pollutant discharge permits in accordance with the law. The companyconducts real-time monitoring of each emission outlet and regularly entrusts third-party professional organizations to conductemission testing to ensure that all emission indicators comply with national and local environmental standards. During thereporting period, the company did not experience any excessive emissions and did not receive any signi?cant administrativepenalties or criminal accountability for pollutant emissions issues.
The exhaust gas mainly comes from the unorganized exhaust gas generated by wastewater treatment in sewage stations,the volatilization of liquid raw materials and products, the exhaust fumes from canteens and kitchens, the emissions fromof?ce vehicles, and the emissions from analytical experiments. Among them, the unorganized exhaust gas generated bywastewater treatment in sewage stations accounts for the largest proportion. The company has clari?ed the responsibledepartments and control measures for various emission sources, formulated the "Waste Gas Emission ManagementSystem" for unorganized waste gas, actively adopted waste gas treatment technologies and processes, continuouslyoptimized the puri?cation effect of waste gas, and ensured that the waste gas meets the emission standards.In addition, the company conducts monthly monitoring of exhaust emissions to meet standards. If the results of theexhaust emissions exceed the standard, EHS Department is responsible for supervising the use of various exhaust puri?ca-tion equipment, arranging professional personnel to conduct timely maintenance and adjustment of the equipment, andensuring its continuous and effective operation.
Waste Gas Management
4241ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
Pollutant Discharge Status of the Company and Its Major Subsidiaries
*Flue Gas Emission from Solid Waste Incinerator
IndicatorUnit:g/tonne of paperUnit:g/tonne of paper
Waste Gas Emission
Waste Gas EmissionUnit:Tons
Zhefeng Energy
IndicatorChemicalOxygen DemandTotal NitrogenAmmoniaNitrogen
PermittedDischarge
Hegang Environmental Protection
Wastewater Discharge
Unit:Tons
Wastewater Discharge
Actual Discharge
IndicatorFlue DustNitrogen OxidesSulfur Dioxide
PermittedDischargeActual Emission
CODAmmonia Nitrogen
Compliance
StatusWastewaterDischarge Intensity
ComplianceStatusAir Emission
IntensityIndicator
Particulate Matter
Nitrogen OxidesSulfur Dioxide
IndicatorUnit:g/tonne of paperUnit:g/tonne of paper
Waste Gas EmissionWastewater Discharge
Chemical OxygenDemandAmmonia Nitrogen
ComplianceStatusWastewaterDischarge Intensity
ComplianceStatusAir EmissionIntensityIndicatorNitrogen OxidesSulfur Dioxide
Zhefeng New Materials
Xianhe Co., Ltd. (Qujiang Factory)
Unit:g/tonne of paperUnit:g/tonne of paper
Waste Gas EmissionWastewater Discharge
ComplianceStatusAir EmissionIntensityIndicatorFlue DustNitrogen Oxides
Sulfur Dioxide
Henan Xianhe
IndicatorChemical OxygenDemandAmmonia Nitrogen
Compliance
StatusWastewaterDischarge Intensity
Hubei Xianhe New Materials
IndicatorUnit:g/tonne of paperWastewater Discharge
Chemical Oxygen
DemandAmmonia Nitrogen
Compliance
StatusWastewaterDischarge Intensity
Unit:g/tonne of paperWaste Gas Emission
Compliance
StatusAir EmissionIntensityIndicator
Particulate MatterNitrogen OxidesSulfur Dioxide
*Flue Gas Emission from Alkali Recovery Furnace
Unit:g/tonne of paperWaste Gas Emission
Compliance
StatusAir EmissionIntensityIndicatorParticulate MatterNitrogen OxidesSulfur Dioxide
Wastewater Discharge
Unit:Tons
Zhefeng Environmental Protection
Indicator
PermittedDischargeActual DischargeChemicalOxygen DemandTotal PhosphorusTotal NitrogenAmmoniaNitrogen
4443
Driven by the "dual carbon" goal, China's paper industry is undergoing a profound transformation from traditional manu-facturing to green and intelligent manufacturing. As a leading enterprise in specialty paper, the company has built acircular economy ecosystem of "integrated forestry, pulp and paper use" with two billion dollar projects in Laibin, Guangxiand Shishou, Hubei as strategic pivot points. In addition, the company actively promotes resource recycling in the produc-tion process and industrial model innovation, committed to creating a new paradigm of resource intensive utilization andindustrial coordinated development.
CIRCULAR ECONOMY
The company's business layout does not involve ecologically sensitive areas, and its production and operation activitieshave not had a signi?cant impact on the ecosystem and biodiversity. During the reporting period, the company continu-ously optimized its process ?ow, actively developed environmentally friendly technologies and new paper-basedfunctional materials to minimize the negative impact of the production process on the ecological environment and biodi-versity. Taking the opportunity of building an integrated model of forestry, pulp, paper and other industries, the companyhas invested in the construction of ecological forest industries in Guangxi and Hubei, promoting ecosystem protection.In the Guangxi base, the company continues to promote the expansion of eucalyptus forest land through a combinationof independent forest land construction, contract forest land guarantee, and national reserve forest cooperation. At thesame time, the company adopts a series of forest ?re prevention measures such as all-weather monitoring, satellite mon-itoring, and establishing ?re isolation zones, effectively reducing ?re risks and protecting ecological resources. At the Hubeibase, the company and the government jointly invested in the reed ecological protection project, further improving thelocal ecological quality through vegetation restoration and planting. In addition, as part of implementing the commitmentto green development, the company voluntarily pays the "Forest Vegetation Restoration Fee" to ensure that the occupiedforests and vegetation are effectively protected and promote the sustainable development of the ecosystem.
ECOSYSTEM PROTECTION
CaseZhefeng Energy Industrial Waste Gas ComprehensiveUtilization Carbon Emission Reduction ProjectThe project produces light calcium carbonate by reacting the exhaust gas from the existing boiler tail ofZhefeng Energy with calcium hydroxide, which is used for Zhefeng's new material papermaking production.The production wastewater is puri?ed by the sewage treatment system and reused in the production processof light calcium carbonate. This project can absorb and utilize 54000 tons of carbon dioxide annually, effec-tively realizing the resource utilization of industrial waste gas and wastewater, and contributing to low-car-bon emission reduction and green economic development.
ENVIRONMENT: GREEN DEVELOPMENT, LOW CARBON TRANSFORMATIONXIANHE CO., LTD 2024 Sustainability Report
The company divides the waste generated from its business activities into two categories: general waste and hazardouswaste, in accordance with the National Hazardous Waste List. Among them, general waste mainly includes sludge, house-hold waste, construction waste, recyclable paper, metal waste, and general plastic waste, while hazardous waste mainlyincludes waste engine oil, waste batteries, oily waste, etc. The company has formulated the "Solid Waste ManagementSystem" and "Hazardous Waste Management System" to comprehensively manage the storage and disposal of waste.The company promotes clean production and is committed to reducing the generation of general waste and hazardouswaste. At the same time, following the principle of "saving resources and making full use of things", a comprehensiveutilization strategy is adopted in waste management. For recyclable waste, the company actively seeks ways to recycle orsell it to the outside world to achieve the circular use of resources. For non recyclable waste, such as general waste suchas sludge and hazardous waste such as engine oil, quali?ed third-party organizations are entrusted to handle them toensure that the waste is disposed of in a standardized and safe manner.
Waste Management
The company attaches great importance to the control of workplace noise pollution and has formulated the "Noise EmissionManagement System" to clarify the sources of noise and control measures for various types of noise. The company activelytakes various measures to reduce the impact of noise on the surrounding environment and employees. In terms of equip-ment selection and process optimization, priority should be given to selecting low-noise new processes and equipment withminimal or no harm, in order to reduce the generation of noise from the source. For the high noise equipment that has beenput into use, the company has taken a series of noise reduction measures, such as installing sound insulation facilities andapplying sound-absorbing materials. In terms of employee protection, the company provides protective equipment forrelevant positions affected by noise, arranges regular annual physical examinations, and reduces the degree of harmcaused by noise to employees; Conduct relevant training to enhance employees' awareness of noise protection. In addition,the company manages noise in accordance with the Class III standard of GB 12348-2008 "Emission Standard for IndustrialEnterprise Boundary Noise", and on-site inspectors monitor and record noise every quarter.
Noise Management
Adhere to innovation driven
Strictly adhere to the quality standards
Provide high-quality service
Chain Drive Green Future
Assist in the developmentof the industry
QUALITY FIRST, WIN-WIN COOPERATIONPRODUCT
Xianhe Co., Ltd. is based on its own research advantages, seizing the development opportunity of "replacing plastic withpaper", and meeting the demand for paper-based new materials in industrial manufacturing and daily life with high-qual-ity products and services. At the same time, the company adheres to the principle of responsible procurement, establishesa product lifecycle quality management system, and works together with upstream and downstream partners in theindustry chain to promote the industry towards a low-carbon, ef?cient, and sustainable future.
High performance paper-based materials have the characteristics of high-tech content and high added value, which canmeet the demand for high-performance consumable materials in various ?elds. In the 14th Five Year Plan for the Develop-ment of New Materials Industry in Zhejiang Province, special paper-based materials are listed as one of the key develop-ment areas of "advanced basic materials". They can effectively promote the material upgrading and high-end applicationexpansion of the paper industry, and have important strategic signi?cance for supporting the high-quality developmentof traditional industries.As a high-tech enterprise deeply engaged in the ?eld of high-performance paper-based functional materials, XianheGroup has always regarded innovation as the core driving force for development since its establishment. Adhering to theinnovative concept of "independent design and cooperative development", Xianhe Group has built an innovative ecosys-tem and is committed to providing customers and the market with more high-quality green products.
ADHERE TO INNOVATION DRIVEN APPROACH
48PRODUCT: QUALITY FIRST, WIN-WIN COOPERATION47
Building an innovative ecosystem
The company attaches great importance to the construction of its own R&D capabilities and hasestablished a relatively complete system of scienti?c and technological innovation. It has formu-lated innovative management and incentive systems such as the "R&D Organization Manage-ment Measures", "New Product R&D Management System", "Research Fund Investment Manage-ment System", "Talent Introduction Management Measures", etc., to attract and retain top talentsin the industry, allocate and monitor research funds reasonably, ensure the effective utilization ofresources, and ensure that R&D activities are carried out smoothly in an orderly, ef?cient, andmotivating environment, laying a solid foundation for continuous innovation and progress. At thesame time, the company has established a research and development organizational structurewith the overall management of the R&D manager, led by the R&D institute and technologycenter, and coordinated by multiple departments.
Research andDevelopmentManagementSystem
Xianhe Group attaches great importance to the standardization and re?nement of theresearch and development process. In the rapidly developing market environment, the com-pany continues to optimize its innovation process, adjust and supplement the detailed stepsof the four major product innovation processes, strengthen cross departmental collaboration,allocate resources reasonably, ensure scienti?c, standardized, and ef?cient research anddevelopment work, and maximize the value of innovative achievements.
R&D process
R&D Supervisor
Organize the preparation and supervision of thecompany's annual design and development plan,coordinate and handle any issues that ariseduring the execution of the planOrganize the review and approval of R&D projects
Develop design and implementation plans forR&D projectsAssign tasks to project personnel and participatein project reviewsEstablish a research and development teamresponsible for the speci?c research anddevelopment of new products and projects, aswell as the preparation of patent and standardapplications
Research and Development Institute
Technology Center
Responsible for quality inspection and trackingrecords of R&D, design, and trial production processes,and providing feedback on quality informationResponsible for archiving design and developmenttechnical documentsEstablish a QC team to assist in the development, trialproduction, and testing of new products and projectsProduction Technology Department
Collect and organize information on market demanddesign, and propose design and development projectsuggestionsAdministrative Personnel Department
Responsible for ?ling the con?guration of design anddevelopment personnel
A comprehensive technical and economic feasibility analysis is conductedaround four core dimensions: market demand, market share, technologicaldevelopment status and trends, and resource ef?ciency, to grasp the currentstatus and future direction of industry technology development and provideaccurate decision support for product development.Investigation,research, analysis,and decision-making
Strictly follow the "three-stage design" process, and complete thetechnical design speci?cation, technical design scheme, and workingdrawing design of the new product in sequence.
Product DesignManagement
Before the new product is of?cially put into mass production, sample trialproduction and small-scale trial production will be carried out. Based on theproject characteristics, the trial produced product will be evaluated andidenti?ed from both economic and technical dimensions to determinewhether it meets the conditions for entering the next stage of trial productionor entering formal production.Based on the appraisal level, following the relevant regulations of theState Council and the National Science and Technology Commissionon scienti?c and technological achievements and technologicalprogress awards, as well as the company's management system,conduct professional evaluations of the achievements and implementcorresponding approval procedures.
New ProductAchievement Review
XIANHE CO., LTD 2024 Sustainability Report
Management of trialproduction andappraisal of newproducts
The company regards continuous R&D investment as the key to maintaining competitiveadvantage, with R&D funds mainly invested in key areas such as product development,equipment upgrades, and talent introduction.
R&D investment
The company continues toincrease investment in productresearch and development,seize market opportunities,actively layout new marketsand expand strategic custom-ers, develop multiple terminaloriented products, and continu-ously enrich the product matrix.
Encourage employees to actively participate in innovation activities, set uprewards for scienti?c research and technological innovation, and intellectual prop-erty incentives; Linking research and development achievements with personalpromotion and professional title evaluation; Collect reasonable suggestions andimprovement proposals from employees, reward those adopted suggestions, andstimulate employees' innovation motivation.Build industry university research platforms such as Xianhe Research Institute andPaper based Materials Industry College to accelerate the transformation of scien-ti?c and technological achievements.
5049
Innovative atmosphere
Innovation incentives
Xianhe Group has always been committed to research and develop-ment innovation, continuously increasing R&D investment, promotingthe research and application of high-performance paper-based newmaterials, and assisting the high-quality development of the industry.During the reporting period, the Company and its subsidiaries obtaineda total of 13 new patents, including 10 utility model patents and 3 inven-tion patents. As of the end of the reporting period, the Company and itssubsidiaries had accumulated 113 utility model patents and 51 inventionpatents.
Industry universityresearch platform
In 2024, four new products developed and produced by the company, including low weight thin Bible paper, high-strengthvacuum aluminum plated base paper, glossy aluminum foil lining, and food grade stainless steel plate lining paper, havepassed provincial new product identi?cation.
Newly Acquired Invention Patents
Newly Acquired Utility Model Patents
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Product
By combining independentresearch and development withcooperative introduction, thepaper making process andequipment are iterativelyupgraded to enhance produc-tion automation, therebyimproving production ef?ciencyand product quality.
Equipment
Introduce professional technicaltalents and experts in special-ized ?elds, cultivate ahigh-quality talent team,enhance the team's profession-al capabilities and innovationpotential.
Talent
Key Performance
Key Performance
R&D investment reachedRMB
134.2332 million
representing a year-on-yearincrease of 18.90%R&D personnel accounted for
4.67% of the total workforce
Harvesting innovative achievements
10 new utility model patents
have been added
Key Performance
Add 3 new invention patents
The project "Key Technologies and Applications for Lightweight Green Manufacturing of Paper based NewMaterials" in which the company participated won the second prize of Zhejiang Provincial Science andTechnology Progress Award.
Reduce the use of carbon based materials and consumables, lower pollutionemissions and energy consumption, while facilitating recycling and reuse
New digital paperReduce resource utilizationand lower the usage of otherraw materials in downstreamprocessing stages
Low weight Gracin paper,digital paper
5251
The company not only develops high-performance paper-based new materials to meetmarket demand and promote industry technological progress, but also conforms to theglobal trend of low-carbon economy development. By using advanced production processesand environmentally friendly materials, it develops green and environmentally friendly prod-ucts, strives to reduce the impact of products on the environment, and provides low-carbonproduct solutions for downstream customers, comprehensively assisting in the greenupgrading of the industrial chain.
Green DesignProducts
Sales Department
Production technologyDepartment
Quality InspectionDepartment
High quality products are the key to winning customer trust. Since its establishment, Xianhe Co., Ltd. has taken creatingsafe and reliable products as an important task. The company adheres to the business philosophy of "customer demandis our standard", implements strict quality monitoring in all production processes, and always provides high-quality andreliable products and services.
STRICTLY ADHERE TO QUALITY STANDARDS
Xianhe Group is committed to ensuring excellent and stable product quality by establishing cross departmental collabo-ration mechanisms and strict quality control processes to ensure that every aspect of the product, from research anddevelopment to delivery, meets high standard requirements.
The company has established quality management systems and procedures such as the "Xianhe Co., Ltd. Quality andEnvironmental Safety Manual," "Quality and Safety Control Procedure," and "Product Recall Control Procedure." Compre-hensive quality control is carried out throughout the entire process of raw material control, design and development, prod-uct production, ?nished product inspection, packaging and transportation to ensure the superiority and reliability of prod-uct performance and meet customer expectations. In addition, the company has added a "Non conforming Product Isola-tion System for Finished Product Warehouses", which isolates and transfers a batch of products that have been stored buthave been judged as non-conforming for various reasons, further reducing customer complaints and returns.
Quality Management Organizational Structure
Carbon free copy paper, carbon free printingpaper, carbon free electrolytic capacitor paper
Avoid environmental pollutioncaused by printing and dyeingprocesses
Environmentallyfriendly products
Quality Control
Propose product productionrequirements based oncustomer and marketdemands, and collaboratewith the R&D team during theproduct development phaseto ensure that the productgradually meets the usageneeds of customers and endusers from initial samples tomass production.
Develop production plans, rawmaterial standards, and processstandards for products toensure that the productionprocess complies with nationalstandards, industry standards,and customer standards.During the production process,further steps are decomposedand inspected and adjustedaccording to customer require-ments for processes such aspulp feeding, papermaking, andrewinding.
Perform ?nal inspection accord-ing to the quality standardsestablished by the ProductionTechnology Department andprovide inspection data.Establish a testing center,mainly responsible for thetesting of new raw materials forexternal sample delivery,research and developmenttesting of new products, andquality comparison testing ofsimilar products.Manage CNASlaboratory to ensure theaccuracy and internationalrecognition of testing data.
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
5453PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Develop the "Procurement Plan Table", "Regulations on the Management of Purchase and Use of Rawand Auxiliary Materials", "Raw Material Quality Standards", "Management Speci?cation for Sampling,Testing, and Retention of Raw and Auxiliary Materials in the Quality Inspection Department", "Manage-ment Process and Regulations for Raw Materials and Finished Products in and out of the Warehouse",and "Regulations on the Management of Auxiliary Material Placement" to strictly control the procure-ment, testing, in and out of the warehouse, and use of raw and auxiliary materials. At the same time, inaccordance with national and industry standards, and based on speci?c requirements of the companyand customers, develop quality standards for raw and auxiliary materials and conduct inspections toprevent unquali?ed raw materials from entering the production process. In 2024, the company willimplement the following measures to further strengthen raw material controlImprovement of raw material control points: The company has raised the quality control requirementsfor certain key raw materials, narrowed the error range, and avoided the impact of raw material?uctuations on product quality;New material testing: For newly developed paper types, add a "new material testing" step to ensurethat the new raw materials meet the expected standards;Re?ned procurement: During the small-scale trial production stage, precise control is exercised overthe amount of raw material procurement to avoid excessive purchases and reduce waste of unsuitablematerials.
Quality Management Process
Raw material control
Develop the "Guidelines for Process Operation ofVarious Varieties" and the "Production ManagementRegulations on Changing Varieties of PaperMachines" to effectively control the entire produc-tion process. The production process is strictly setand executed in accordance with the detailedparameters speci?ed in the "Process Notice",clarifying the requirements for process ?ow charts,operation requirements, technical standards,process indicators, etc;Implement a dual inspection mode of self inspec-tion by production employees and inspection byinspectors;Build a '5G smart workshop', relying on 3D modelsand dynamic data visualization systems to ensureproduct quality.
Standardized production
According to the "Product Identi?cation andTraceability Control Procedure", identify theproduced products, store the raw papersafely and orderly in accordance with the"Management Regulations for Raw PaperStacking", and process and reuse theproduction waste paper in accordance withthe "Management Regulations for WastePaper Use" to minimize resource waste.
According to the "Operating Procedures for Physical Index Detection and Tracking", "Operating Proce-dures for Appearance Paper Disease Inspection", "Inspection Operation Guidelines", "Control Proceduresfor Factory Inspection", "Management Regulations on Quality and Quantity Inspection in the rewindingprocess", and "Quality and Safety Production Control Procedures", multidimensional inspections ofproduction processes such as pulp making, papermaking, and rewinding, as well as quality andappearance of products are carried out;Unquali?ed products should be labeled according to the degree of defect, and classi?ed and isolatedto prevent mixing;After the review of non-conforming products, rework, repurposing, pulping, and other operations shallbe carried out.
The packaging and storage of ?nished productsshall be strictly carried out in accordance with therequirements of the "Process Notice" and "ProductProtection Control Procedure" to avoid productcontamination or damage;Before long-distance transportation or the use ofnew packaging materials, transport stability andreliability tests should be conducted as needed;Before leaving the factory, perform spot checkssuch as empty vehicle inspection and postinstallation inspection, and install protectivedevices for some paper roll products, especiallythose with easily damaged edges and corners.
In terms of product development, we followthe principle of "three-stage design" andcarry out sample trial production,small-scale trial production, and massproduction in sequence. In 2024, thecompany will revise its research anddevelopment process to further enhance itslevel of re?ned management.In terms of process design, the productiontechnology department is responsible forsetting process conditions, comprehensivemanagement of process productiontechnology, and review and supervision ofprocess records to ensure ef?cient executionof the process ?ow.
Product quali?cationrate
99.18%
Design and development
Quality inspectionInventory managementPackaging and transportation
5655
All equipment and instruments are calibrated annually by third-party organizations to ensure com-pliance with international standards and industry requirements; The company conducts quarterlyinspections and calibrations to ensure the normal operation of equipment.
The inspection committee is composed of the heads of the Production Technology Department,Quality Inspection Department, and Power Information Department, as well as the factory directorsof each branch. They conduct monthly inspections of the production site and related records toensure the strict implementation of various standards and standardized management of recordsduring the production process. They promptly identify potential quality problems and take correctivemeasures.
Regularly hold internal competitions such as craft competitions and safety competitions to moti-vate employees to improve their work level, promote technical exchanges and experiencesharing.
Diversi?ed quality control measures
Conduct quality training 25 timesThe average training time per personfor quality training is
31.5 hours
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Application of Intelligent SystemsIndustrial Internet of Things (IIoT) and sensor technology: Temperature, pressure, and liquid levelsensors are installed in the pulp making process, and humidity sensors are installed in the paperforming and drying process. The automation and precise adjustment of relevant parameters areachieved through the control system to ensure the stability and consistency of paper quality.Process Control System (PCS) and Manufacturing Execution System (MES): PCS precisely controlskey parameters such as material ?ow rate, speed, and concentration in the papermaking process toensure the uniformity of pulp composition. MES is responsible for the scheduling and managementof the entire production process, adjusting production plans in a timely manner according to orderrequirements, and monitoring quality data in real-time during production. It can achieve root causetracing of quality problems and continuous improvement.Automatic weighing system: Through high-precision weighing and automated operations, it effec-tively reduces human errors, avoids cost losses caused by inaccurate weighing, and provides accu-rate data for inventory management, optimizes inventory levels, and reduces the risk of backlog andstockouts.OA system: automates work?ow, improves business processing speed, and reduces communicationcosts and enhances team collaboration ef?ciency through fast information sharing functions.Equipment calibration
On-site inspection
The company implements a multi-level and comprehensive internal training plan, and veri?es theeffectiveness of the training through on-site inspections, practical exercises, or exam papers afterthe training to ensure that employees can apply theoretical knowledge to practical work.Onboarding training: Arrange professional training for new employees to help them quicklymaster core skills.Regular Training: Each section of the Production Technology Department and the Quality Inspec-tion Department organize regular training every month, covering topics such as raw materialusage, process ?ow, equipment performance and safety operation standards, testing methods,product characteristics, quality management system, etc., to strengthen the quality controlawareness of production technicians. Factory department level training is conducted weekly,including product quality, customer complaint handling, customer research and developmentneeds, etc., to ensure that management can continuously focus on quality improvement.Irregular training: Based on customer complaints or feedback on quality issues, organize relevantemployees for specialized training to address and prevent quality problems.
Internal training
Internal competition
Key Performance
The company has introduced PFMEA (Potential Failure Mode and Effects Analysis) management mode for electrolyticpaper products, identifying and analyzing possible failure modes, causes or mechanisms in various stages of the produc-tion process, identifying potential problems and taking measures for optimization, and continuously improving productquality.
5857
Xianhe Group strictly controls the hazardous substances that may be generated in business processes such as procure-ment, design and research and development, production and manufacturing, packaging, and storage. It reviews materialsand ?nished products in accordance with the RoHS directive and customer requirements, and continuously monitors therisk of hazardous substance leakage. It relies on quali?ed institutions to carry out inspection work to ensure the health andsafety of employees and customers.
Control of Hazardous Substances
PFMEA analysis process
Severity ofconsequences
Frequencyof problemsCauses
The company has established a hazardous substance management team, with the deputygeneral manager of production as the team leader, responsible for leading the managementof hazardous substances and ensuring the effective implementation of relevant measures.ManagementStructure
The company has formulated documents such as the "Hazardous Substance Control Proce-dure", "Hazardous Substance Control Standards", and "Hazardous Substance List" to ensurethat products comply with the regulations of the production and operation location andcustomer requirements.InstitutionalNorms
The company regularly organizes relevant units or personnel to receive training on hazardoussubstance control requirements, enhances their awareness and ability in hazardoussubstance management, and ensures that the hazardous substance content of productsfrom design to sales is within the standard.Training andpromotion
Hazardous MaterialsManagement Group
Quality InspectionDepartment
Production Branch
Existing prevention
and detectionprocedures
Effectiveness ofprevention anddetection methods
Functions, features or
requirements to beachieved
Consequences
Improvementmeasures andtheir effectiveness
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Quality Risk Identi?cation and Response
Supply ChainManagement Department
Possible improvementmeasures?Process changes?Special controls?Changes to standards,procedures or guidelines
Potential problemsthat may arise?No function?Partial functional-ity/overpowered/-Functionality down-graded?Non-predictivefunctionality
Production TechnologyDepartmentSales Department
Warehouse Manager
The company adheres to the direct sales business model of "production+service" and is committed to providing overallsolutions in the ?eld of high-performance paper-based functional materials. At the same time, it attaches great impor-tance to customer experience, safeguards customer rights, and continuously seeks opportunities for product and serviceimprovement.
PROVIDE HIGH-QUALITY SERVICES
6059
The company has established customer service systems such as the "Customer Visit Management Measures," "After salesService Management Measures," "Complaint Compensation Handling Management Measures," and "Product RecallControl Procedures," forming a clear organizational structure with responsibilities for the sales department to gathercustomer feedback and the production technology department to provide technical support.
The company is committed to providing customers with comprehensive "one-stop" services, covering multiple ?elds suchas research and development, production, and technical support, continuously optimizing customer experience.
Deeply understand and accurately capture customer needs, provide customers with highly technicaland targeted product solutions, deepen customer loyalty, and enhance brand stickiness.
Custom development
Flexible production
Product traceability
Equipped with 59 cutting-edge modern paper production lines, the paper machine equipment isdiverse in size and variety. Each production line can adapt to stable production of at least 3 to 4 typesof paper-based functional materials, and can achieve stable switching between different products.We have established a comprehensive production, logistics, and warehousing system, and achievedef?cient integration of information ?ow and full process connectivity, fully ensuring the ef?ciency andsuperiority of the production and manufacturing process.With the above advantages, the company can quickly respond to market dynamics and changes incustomer needs, and ?exibly respond to diverse, small-scale batch, and fast delivery order demands.
Adopting one item one code to ensure the traceability of the entire process from product warehousingto outbound, achieving transparency in the production process and precise monitoring of the productlifecycle, and enhancing customer trust.
Relying on our own logistics team and combining transportation methods such as sea, rail, and truck,we ensure fast and ef?cient product delivery.Rapid delivery
Regularly conduct in-depth evaluations of customer satisfaction, covering dimensions such as phys-ical quality, delivery, after-sales service, ?exibility, transportation, etc., to accurately grasp customers'recognition of products and services, and carry out targeted optimization and improvement.
Satisfaction survey
Committed to providing comprehensive and continuous service support covering order follow-up toafter-sales service, regularly conducting of?ine visits, conference calls, technical exchanges andother communication activities for customers, and providing on-site technical training and guidanceservices when necessary.Deeply understand customer needs and propose personalized solutions based on their preferences,establish and maintain long-term cooperative relationships, regularly engage with customers tounderstand and anticipate their changing needs, and enhance customer satisfaction and loyalty.
Companion service
Customer Visit
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Customer Management System
Customer Service
The average customer satisfactionscore is
91.64 points
Key PerformanceDistribute 70 customersatisfaction survey forms
50 customer satisfactionsurvey forms were effectivelycollected
The company has opened up customer service telephone, fax, website,written survey forms and other feedback channels, requiring communi-cation matters to be responded to within 24 hours. For major and suddenquality issues, they must be analyzed and resolved immediately, andtechnical personnel should be arranged on-site if necessary to ensurethat customer feedback can be paid attention to and responded to in atimely manner.At the same time, the company regularly organizes relevant depart-ments to review customer complaints and continuously improveproduction methods and service strategies. During the reporting period,the company received mainly minor customer feedback on appearancedefects, and there have been no product recalls due to quality or safetyissues in the past three years.
Xianhe Group attaches great importance to customer privacy protection, and the information system is maintained andmanaged by a dedicated technical department. The company has formulated the "Information Management System"and implemented various technical support measures to provide safe and reliable services to its partners. During thereporting period, the company did not experience any incidents of customer privacy breaches.
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Information gathering
Customer information is uploaded to the ERPsystem, and sensitive data is encrypted. All dataaccess, modi?cation, deletion, and other opera-tions are clearly recorded in the system toachieve centralized, standardized, and transpar-ent management of data.
Applying identity authentication and access controlsystem, each business department sets hierarchicalaccess permissions according to their respectiveresponsibilities. Sales personnel can only accesscontent related to their own business scope, and allsystem operations are limited to the company'sinternal network environment, further ensuring thesecurity of customer information.Customer Privacy Protection
Provide diversi?ed online and of?ine communicationchannels, generate a "Quality Feedback Form" forcustomer complaints or feedback issues, anddistribute it to the technical department; Conductregular customer satisfaction surveys every monthto timely understand the needs of different custom-ers and different periods.
Cause analysisThe quality inspection department and variouspaper mills analyze and handle the feedbackcontent, summarize and generalize the reasons.
Recti?cation and correctionComplete the handling and recti?cation work withintwo working days, develop future improvement andprevention plans, generate 'Corrective and Preven-tive Action Handling', and proactively control andavoid similar problems that may arise in subse-quent production.
Follow up visits
Continuously track, con?rm the effectiveness ofrecti?cation with customers, and promptly ?le andarchive records; Develop a month on monthanalysis report based on the issues identi?ed in thesurvey to monitor the effectiveness of improve-ments.
Problem identi?cation and noti?cation
Regularly evaluate product quality or safety risks,and immediately organize relevant departments toconduct hazard investigations and assessmentsupon discovering hidden dangers.
Recall Decision and InitiationDetermine the scope of affected products, developa graded recall plan based on the severity of theproblem, and promptly issue recall notices orannouncements to distributors or customers.Product disposal and recti?cation
Identify and isolate the recycled products, inspect toidentify the root cause of the problem and takecorrective measures, and ultimately return, repair, ordestroy them based on the nature of the quality issue.
Follow-up
After the recall is completed, provide customers withsolutions such as product replacement andcompensation to ensure maximum protection oftheir interests.
The company attaches great importance to the cultivation of compliance awareness and professional competence of themarketing team, promotes responsible marketing concepts, promotes long-term brand development, and contributes tobuilding a positive and healthy business environment.The company has formulated marketing system documents to standardize the review process of information release andmarket promotion activities, ensuring that the information conveyed is true, accurate, and complete, and eliminating anymisleading or false content.At the same time, the company carries out diversi?ed training activities. Arrange systematic onboarding training for newsales personnel, including legal regulations, business overview, product knowledge, market expansion skills, and otherrelated content. According to market and regulatory changes, regularly organize themed training on marketing regula-tions, contract regulations, sales skills, case analysis, etc., to continuously improve the professional competence of themarketing team.
Marketing Training
Customer privacy protection measures
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
After Sales Support
Complete customer complainthandling and recti?cation within
2 working days
Customer complaint handlingrate of100%
Product Recall Control Procedure
Customer Privacy Protection
Responsible Marketing
Key Performance
Key PerformanceNumber of marketing trainingsessions conducted:
Marketing training covers100% of relevant employees
6463
The company has implemented strict admission review and continuous daily management mechanism for suppliers,comprehensively evaluating suppliers from dimensions such as quality level, delivery capability, price level, technicalability, support services, and existing cooperation status. At the same time, it regularly conducts environmental and socialresponsibility audits on suppliers to optimize supply chain ef?ciency and enhance supply chain resilience.
Xianhe Group always adheres to the concept of growing together with suppliers and is committed to improving the overalloperational ef?ciency and sustainability of the supply chain through close cooperation. The company has formulated andimplemented systems such as the Supplier Management System, Supplier Evaluation and Assessment Procedure,Procurement Control Procedure, and Sustainable Procurement Policy to ensure that the admission review and daily main-tenance of suppliers meet the company's sustainable development needs. The company actively advocates suppliers topractice the concept of sustainable development, referring to international conventions and relevant laws and regulationsin China, and formulating and promoting the signing of the "Supplier Code of Conduct". It is committed to building anef?cient, stable, and sustainable supply chain network while achieving common progress and sustainable developmentamong all parties in the supply chain.
CHAIN DRIVE GREEN FUTURE
Supplier Management Process
In 2024
Outreach to suppliers
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Supplier Management Process
AccessExamineExit
Require suppliers to provide RoHSreports, FSC certi?cation, PEFCcerti?cation, food safety, environ-mental protection and otherrelated certi?cation or certi?catereports issued by quali?edthird-party units, and updatemanagement annually.Sign documents such as theSupplier Code of Conduct, NonPractical Hazardous SubstanceGuarantee, Raw Material Composi-tion Declaration Form, and Environ-mental Hazardous SubstanceInvestigation Form with suppliers tominimize environmental impact.Suppliers are required to providesamples, which can only besupplied in small batches afterpassing the inspection. Afterpassing the assessment for smallbatch supply, they will be includedin the "Quali?ed Supplier List".
Regularly conduct performancereviews of key suppliers everyyear, using the 'Supplier Perfor-mance Evaluation Form' tocomprehensively evaluatedimensions such as quality,delivery time, price, andafter-sales service.Daily graded management,suppliers with outdated gradesneed to improve and reducetheir order quantity within threemonths to promote continuousoptimization of suppliers.
In the irregular quality assessmentof production, suppliers who havequality problems with theirproducts and fail to improve theirquality after being noti?ed by thecompany will have their supplyquali?cations immediatelycancelled.In the annual regular evaluation, ifthe comprehensive score orquality score of the supplier islower than the benchmark scoreline, its quali?cation as a quali?edsupplier will be revoked. When it isnecessary to retain suppliers inspecial circumstances, it must beveri?ed and approved by theDeputy General Manager ofProduction, and subjected tostricter standards for acceptanceand review; If the supplier fails twoconsecutive evaluations, theirsupply quali?cation will bepermanently cancelled.
Number of wood pulp suppliers inChinese Mainland
The proportion of wood ?ber raw materialspurchased from third-party certi?edforests (such as FSC, PEFC, etc.) to thetotal procurement volume100%
The number of training sessions onprocurement within the company duringthe reporting period
Number of suppliers with quality managementsystem certi?cation
The cumulative duration of trainingprovided by the company to suppliersduring the reporting period12 Hours
Number of wood pulp suppliers outsideChinese Mainland
Number of suppliers whose cooperation hasbeen suspended due to non-compliance
The number of times the company providedtraining to suppliers during the reportingperiod
Number of suppliers participating in trainingduring the reporting period
Number of suppliers with environmentalmanagement system certi?cation
Number of suppliers with occupationalhealth and safety management systemcerti?cation
Number of suppliers with other sustainablerelated certi?cations
Fair workingenvironment
Require suppliers to ensure a fair working environment, including providing fair welfarebene?ts for employees, prohibiting discrimination, respecting employees' rights toassembly and association, zero tolerance for forced labor, and prohibiting the use ofchild labor.Suppliers need to conduct a comprehensive risk assessment of production andoperation to ensure that their production, manufacturing, transportation, and operationprocesses do not affect the safety of employees, the public, and surrounding commu-nities. Effective measures should be taken to correct and rectify identi?ed risk points.
The products provided by suppliers should comply with FSC or PEFC certi?cationstandards to ensure their safety in terms of human health and environmental protec-tion, while re?ecting their ability for sustainable development and sustainable manage-ment of forest resources. In addition, suppliers must provide suf?cient information toensure the safety of their products. For products containing hazardous substances,special attention and handling should be given, and the safety of the product shouldbe strictly evaluated in the risk assessment procedure.Require all suppliers to adhere to the principle of integrity and strictly comply with allrelevant laws and regulations, including but not limited to provisions to prevent fraud,bribery, and corruption. In addition, suppliers should adhere to the principle of faircompetition, comply with the legal requirements of their country regarding anti-mo-nopoly and fair competition, and ensure the legality and legitimacy of their businessactivities.
We advocate and encourage suppliers to participate in actions to reduce the compa-ny's environmental footprint, setting and pursuing environmental goals similar to thoseof Xianhe.Work closely with suppliers to build a transparent and traceable supply chain system,effectively assess and monitor potential risk factors, and ensure that raw materialprocurement complies with our advocated sustainable procurement policies.
Sustainable Procurement Strategy
The company has conducted a systematic review of supply chain risks, thoroughly identi?ed and analyzed various riskfactors that may affect supply chain stability, and taken multiple targeted measures to ensure the safe and ef?cient oper-ation of the supply chain.
6665
In order to implement the concept of responsible procurement and ensure sustainable management of forest resources,Xianhe Group has comprehensively considered international initiatives, domestic regulations, and its own developmentneeds, formulated and issued the "Sustainable Procurement Policy", which regulates supplier behavior from six dimensions,achieves its own commitment to sustainable development, and drives the coordinated development of the upstream anddownstream of the industrial chain. The company encourages all stakeholders to participate in the supervision ofprocurement behavior. Once any behavior that violates the requirements of this policy is discovered, it can be reported tous through open and transparent reporting methods.Risk typeOverseaspolicy risks
Raw materialprocurement
Finishedproduct delivery
Economiccycle risk
Naturaldisaster risk
Logisticstransportationrisk
Risk descriptionCountermeasuresThe company's wood pulp suppliersmainly operate overseas, andchanges in overseas environmentalprotection policies will have animpact on the company's rawmaterial supply.The downturn in the international realestate market has led to a decreasein demand for wooden boards,indirectly affecting the supply of thecompany's raw material veneer.Environmental events such asearthquakes and ?res damageplanted forests.Collisions during transportation cancause product deformation.
Promote the integrated strategy of"forest pulp paper use" and build rawmaterial bases in Hubei and Guangxi.Sign long-term agreements withsuppliers, establish stable coopera-tive relationships, and agree onpurchase quantities and prices.Actively expand alternative suppliersand avoid dependence on a singlesupplier.Maintain communication withsuppliers, paper associations, andtraders to proactively understand thechanging trends of policies bothdomestically and internationally.Establish long-term co-operationwith logistics companies to ensurethat the transport conditions meetthe company's requirements.
Affected businessprocesses
Factory andprocess safety
Product Safety
Fair competitionand anti-corruption
Supply chaintransparency
Reduced environ-mental impacts
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Supply Chain Risk Management
Sustainable Procurement
For close range suppliers, the company usesenergy-saving and environmentally friendlytransportation vehicles for goods transportation,effectively reducing exhaust emissions and noisepollution during transportation.
The company actively engages in practices such as adopting green packaging and optimizing transportation modes,adhering to the principles of lightweight and recycling, and is committed to reducing environmental burdens and promot-ing the green transformation of the supply chain.
6867
As a professional enterprise engaged in the research and production of paper-based new materials, Xianhe Co., Ltd. hasa wide range of product types and coverage, and holds a leading position in both overall scale and multiple productsegments. Over the years, the company has leveraged its technological advantages, actively assumed industry responsi-bilities, and worked together with industry peers, industry associations, research institutions, and other partners to promotehigh-quality development of the industry.
The company does not impose restrictions on the size of suppliers during the procurementprocess, ensuring equal participation of small and medium-sized enterprises in procurementcompetition. At the end of the reporting period, the balance of accounts payable (includingnotes payable) of the company did not exceed 30 billion yuan and accounted for less than50% of the total assets. The company and its holding subsidiaries did not disclose overduepayments to small and medium-sized enterprises through the national enterprise creditinformation disclosure system.
SUPPORTING INDUSTRY DEVELOPMENT
The national standards for dictionary paper led by the company, as well as the national standards for carbonless copypaper, pulp dichloromethane extract determination, cold-rolled metal plate liner paper, super calendered paper, electro-lytic capacitor paper, and arti?cial board decorative paper that the company participated in the development of, have allbeen released and implemented. In 2024, the national standards for titanium dioxide content testing of paper and paper-board, pharmaceutical packaging paper and paperboard, which the company participated in the development of, will beof?cially implemented. The company participated in the development of industry standards for vacuum aluminum platedbase paper and heat sublimation transfer paper, and participated in the revision of the industry standard for water pinebase paper, which was of?cially implemented in 2024.In addition, six Zhejiang manufacturing standards led by the company, including sublimation transfer paper, single-sidedlight cigarette adhesive paper, baking paper, dictionary paper, negative ion wallpaper, and cigarette adhesive paper, havecompleted the review and certi?cation work and have been of?cially released.
Standard Setting
The company focuses on reducing the use of packaging materials, avoiding unnecessaryexcessive packaging while ensuring product safety, thereby reducing resource waste andenvironmental pollution.
Green packaging materials
Equal treatment of small and medium-sized enterprises
Green transportation vehicles
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Green Logistics
In the selection of packaging materials, priority should be given to using renewable andbiodegradable materials such as wooden boards and kraft paper instead of plastic packag-ing materials to reduce the burden on the environment.
Use environmentallyfriendly packagingmaterial
Reduce excessivepackaging
Reduce the use of disposable packaging materials, encourage multiple reuse of packagingmaterials, and improve the recycling rate of resources.Reuse of packagingmaterials
Reasonably plan routes, optimize logistics networks,improve transportation ef?ciency, and achieve precisedelivery;Partial transportation sections prefer water transporta-tion, using inland barges instead of cars to reducetransportation costs and unit energy consumption.
Optimize transportation routes
Industry Co construction
The company is a pilot unit for implementing the national integration of industrialization and informatization managementsystem standards. In recent years, it has adhered to the deep integration of industrialization and informatization, continu-ously promoted digital transformation work, and is committed to becoming a leading enterprise in the high-performancepaper-based functional materials industry that is "domestically ?rst-class and internationally advanced". In 2024, thecompany will continue to promote the "Digital Xianhe" Industry 4.0 management innovation strategy and enhance its ownintelligent manufacturing level.At present, the company has fully implemented the information management of ERP big data application and the groupOA network collaborative of?ce system. A series of links such as human resource management, procurement manage-ment, process management, ?nancial management, and administrative business approval have all achieved paperlesselectronic system management mode, which can provide data foundation for information-based intelligent manufactur-ing. The construction of the company's smart workshop is becoming more and more perfect. 3D models and dynamicdata visualization systems have been introduced in pilot workshops, which can monitor production data and energyconsumption in real time, and achieve effective tracking of order progress and workshop equipment operation status. Inaddition, the company relies on production data to establish a digital twin system and a dust cap AI visual monitoringsystem, simulate and continuously optimize the entire production process, and standardize production operations. In thefuture, the company will continue to improve the construction of smart workshops by introducing intelligent equipmentand systems, and contribute to the "Made in China 2025" initiative.
7069
Production Line Digital Twin System
The company follows the concept of "going global" and "bringing in", and has been invited to participate in multipledomestic and international industry exhibitions and seminars, actively showcasing the company's innovative technologiesand product highlights, strengthening exchanges and cooperation with domestic and foreign peers, and promotingindustry development.
Exhibition participation
Participation in exhibitions
2024.032024.042024.05
Singapore Hotel Catering ExhibitionTaizhou (Jucheng) Autumn DailyNecessities ExpoThe 37th China International MedicalDevice Design and ManufacturingTechnology (Autumn) Exhibition
2024.10
Dubai International FoodProcessing MachineryExhibition, United ArabEmirates
2024.11
Paper based MaterialsExhibition
2024.11
Seoul International Foodand Hotel SuppliesExhibition, South Korea
2024.06
Tokyo International SummerGrocery Exhibition in Japan
Brazil International Baking
Exhibition
2024.07
Australian Food andBaking and Hotel Supplies
Exhibition
2024.09
PRODUCT: QUALITY FIRST, WIN-WIN COOPERATIONXIANHE CO., LTD 2024 Sustainability Report
Digital Transformation
Moscow International BakingEquipment and Raw MaterialsExhibition, RussiaTaizhou (Jucheng) DailyNecessities Expo
The 36th China Interna-tional Medical DeviceDesign and ManufacturingTechnology (Spring)Exhibition
Chicago InternationalCatering and Hotel SuppliesExhibition
Employee Growth and Development
Employee Health and Safety
Philanthropy and Social Contribution
Xianhe upholds the value concept of "family culture". The company fully respects the rights and interests of employeesinternally, and creates a material and spiritual home for employees through a sound employee welfare system and equalcareer development opportunities, improving employees' sense of gain and satisfaction, allowing each employee to feelthe warmth of "home" in the company, and helping employees grow together with the company. The company spreadsthis care to a wider social group through public welfare, charity, and rural revitalization, and does its best to make morepeople in need feel cared for and warm.
PEOPLE-ORIENTED AND SHAREDPROSPERITY
PARTNER
Employee Rights and Bene?ts
74PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTS73XIANHE CO., LTD 2024 Sustainability Report
The company strictly complies with relevant laws and regulations on labor rights such as the Labor Law of the People'sRepublic of China and the Labor Contract Law of the People's Republic of China. It has formulated the Labor ManagementMeasures, resolutely prohibiting the employment of child labor and forced labor, safeguarding the freedom of associationof employees, and prohibiting discriminatory behavior based on race, social class, nationality, religion, disability, gender,gender orientation, and other factors, creating an equal and diverse company atmosphere.
Rights and Interests Protection
Key Performance
The company has been awarded the titleof:"Quzhou City Labor Harmony
Relationship Enterprise"
Key Performance
The company adheres to the management philosophy of open communication and has formu-lated the "Management Measures for Rationalization Suggestions (Improvement Proposals)".Through various channels such as employee representative meetings, regular meetings, andreport meetings, the company uses OA systems and email to listen to the suggestions of grass-roots employees and make timely improvements. In addition, the company conducts surveys tounderstand employee demands and strives to improve employee satisfaction.
DemocraticManagement
Key Performance
Organize workers' congress orother democratic communi-cation meetings2Times
Employee membershiprate:100%
Coverage rate of collectivecontracts:100%Employee Satisfaction98Points
Number of employee complaints orreports0Times
Reasonablesuggestion
Workers' Congress,Regular Meeting,Report Meeting
The company has formulated the "Management Measures for Rationalization Suggestions(Improvement Proposals)" to encourage all employees to propose improvement plans inareas such as production and operation, safety and environmental protection. Employeescan receive a basic reward of 30 yuan for each valid suggestion submitted; The proposalthat has been adopted and implemented will receive an additional reward of 200 yuan peritem and will be included in the annual evaluation quali?cation. Three award levels will beestablished for the year-end review: 1 ?rst prize , 3 second prizes , and 6 third prizes.
The company conducts a questionnaire survey to comprehensively understand employees'satisfaction with the work itself, work environment, team atmosphere, and internal manage-ment. At the same time, it focuses on collecting the most urgent problems that employeesbelieve the company needs to solve in order to adjust management strategies in a timelymanner and improve overall operational ef?ciency.Employeesatisfactionsurvey
Collect employee suggestions for the company through regular and irregular meetings.
Xianhe pays attention to the rights and welfare of itsemployees, continuously improves the employeerights and welfare system in accordance with relevantlaws and regulations, and implements the systemrequirements through practical actions. Xianhe imple-ments a diversi?ed talent policy, providing competitivesalaries and comprehensive bene?ts, and creating afair and caring working environment.
EMPLOYEE RIGHTS AND BENEFITS
Total number of employees6,674PeopleEmployeeage
EmployeeEducationEmployeeGenderProportion of maleemployees 78.20%Proportion of femaleemployees 21.80%
Junior high school and below1,979People
Master degree or above5People
Undergraduate372PeopleVocational education1,461PeopleVocational and high school2,857People
Under 25 years old25 to 55 years oldOver 55 years old
1,127People5,326People221People
Production personnel5,906PeopleSalesperson101PeopleTechnician312PeopleFinancial staff
26People
Administrative personnel
115People
Procurement personnel48People
Other
166People
7675PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
The company has formulated employee rights protection related systems such as theEmployee Handbook, Salary Management System, Talent Incentive System, etc. based onlaws and regulations and actual situations, covering salary management, job levelclassi?cation, employee bene?ts, labor relations, labor protection, etc. The companyadheres to the principle of "making the best use of talents and sharing bene?ts", attachesgreat importance to the protection of employee rights and interests, and has a salaryadjustment plan and employee incentive measures reviewed by the compensationmanagement organization led by the chairman, providing a sound institutional basisand governance structure for the protection of employee rights and interests.
At the same time, the company sets aside 0.5% of the total sales revenue from its annual pro?ts as a talent incentive bonusfor that year, rewarding employees who have made signi?cant contributions to the company's business development,achieving a win-win situation between talent and the company.Key PerformanceAnnual Talent Incentive Bonus Level
Salarycomposition
SalaryAdjustment
SalaryManagement
Basic salary+allowances and subsidies+bonuses+overtimepay+various subsidies
1. Overall adjustment: Adjust based on macroeconomic level,
industry and regional competition, company strategy, andcompany ef?ciency
2. Individual adjustments: divided into regular adjustments
(salary adjustments based on annual performance evalua-tions) and irregular adjustments (adjustments to employeecompensation based on skill improvement, job changes, jobpromotions, etc.)
Annual Talent Incentive Bonus QuotaGrand prizeThe ?rst prizeSecond prize
4People10People20People
Xianhe not only protects the rights and interests of employees, but alsoprovides a diversi?ed welfare system for them, creating a relaxed and pleas-ant working environment from material rewards and spiritual entertainment,and laying a solid foundation for the atmosphere of "family culture".
Employee Bene?ts
Xianhe conducts cultural and sports activities with different themes every month, providingemployees with a "gas station" to enhance emotional communication and enrich knowledgereserves in their spare time, fully promoting Xianhe's core values of "people-oriented, familyoriented, harmony oriented, and morality oriented".Recreationaland SportsActivities
Including job allowances, technical allowances, and educationalallowances, etcPerformanceallowance
Materialwelfare
Including pension insurance, medical insurance, unemploymentinsurance, work-related injury insurance, maternity insurance, andhousing provident fund, etcFive insurancesand one fund
Including wedding gifts, childbirth gifts, condolence gifts, birthdaygifts, apartment allocation, employee medical examinations, mealallowances, night shift allowances, phone bills, travel expenses orspecial position allowances, etcVarioussubsidies
Employee activityparticipationrate100%Salary Management
The company adheres to the principles of fairness, competi-tion, incentives, economy, and legality in salary management,establishes a salary management organization, and approvessalary adjustments
Management of trialproduction andappraisal of newproducts
Spiritualwelfare
Including employee travel, speech competitions, skills competi-tions, etcTeam buildingactivities
Provide internal and external training for employees to meet theirpersonal career development needsEmployeetraining
Therapeutic and Recuperative Activities for
Advanced Workers
Presenting the First Prize at the Speech Contest
"Shifting Perspectives to Discover Beauty" Themed
Training Program
Employee recognition
Calligraphy Activity
Go Competition
College Student Symposium
Marathon RaceBasketball Game
2024 Safety Knowledge Grand Finals Award Ceremony
Tug-of-War CompetitionMarch Women Employees' Care
Month
7877PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
The construction of Xianhe's "family culture" cannot be separated from the support of women'spower. According to the "Xianhe Stock Labor Management Measures", the company will fullyconsider the legitimate rights and interests of pregnant women and provide a safe and comfort-able working environment for them. In addition, the company responds to the demands of femaleemployees by establishing a female worker committee, providing special holidays, organizingphysical examinations and activities, and caring for the health of female employees.
Women'swelfare
Women's Day "Caring for Women, Nurturing Health" Science Popularization Lecture
Establish a women's working committee responsi-ble for safeguarding women's rights and organiz-ing entertainment activities for female employees
Provide special areas such as maternityand baby rooms, warm mommy cabins,etc. for female employees
Provide special leave such asmarriage leave and maternity leavefor female employeesProvide training on mentalhealth and ?rst aid knowledgefor female employeesCarry out women's health check ups and healthknowledge lectures with the theme of "caring forwomen and nurturing health" on Women's Day
Children's Day Fun Quiz ActivityChildren's Day Fun Quiz Activity
8079PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
Xianhe's "family culture" not only refers to the "everyone" composed of Xianhe Group and itsemployees, but also includes each employee's "little home". The company has built supportingtalent apartments in each base, providing married employees with two bedroom and one livingroom suites for immediate occupancy; At the same time, there are hardware facilities such as the"Xianhe Kindergarten" that meet the provincial second level standards, health cabins, mother andbaby rooms, billiard rooms, and ?tness centers. The company also has staff family positions tosolve the housing and child education problems of employees, take good care of their families,and promote their personal development.
Caring foremployees'families
In order to enrich the spare time life of employees and their children, the company has activities every monthwith no repetition of the theme. The company has successively carried out "New Year's Day Literature and ArtFestival", "Yuanxiao (Filled round balls made of glutinous rice-?our for Lantern Festival) Festival riddle guess-ing activities", "parent-child ?tness run", "parent-child garden activities", and "International Children's Dayactivities". During the summer vacation, the company has carried out a caring custody class for employeesand children, with a total of 100 students participating. Through a series of activities, the cultural life ofemployees has been enriched, their sentiments have been cultivated, their worries have been resolved, theworkforce has been stabilized, and employees have a sense of belonging, home, and achievement, creatinga vibrant and upward corporate culture atmosphere.
Exciting activities never stop, warm care accompanies growth
Case
Key Performance
The company has been awarded the title of "Child Friendly Enterprise"
TableTennisRoom
Parent-ChildGarden Tour
Parent-ChildFitness Run
XianheKinder-gartenBilliardsRoomBasket-ballCourt
Recommended or self recommended by employees of ourcompanyRecommenda-tion method
Make all employees aware of job vacancies throughannouncements and select through competitive biddingAnnouncementLaw
In addition, the company promptly understands and grasps the situation of disadvantagedemployees, helps them apply for government subsidies, and carries out "warmth sending" activi-ties for disadvantaged employees. Union staff insist on visiting frontline workers in the workshop,visiting sick and hospitalized employees, and offering condolences and sympathy to employeesand their families who have passed away.
Assistance forDif?cultEmployees
Recruitment Methods
The company has established a comprehensive talent recruitment process and formulated the "Talent IntroductionManagement System" and "Recruitment and Employment Management System". The company's talent recruitment meth-ods include internal recruitment and external recruitment. Job requirements are ?rst met through internal recruitment. Ifinternal recruitment cannot meet talent needs, the company will introduce talents through various external recruitmentmethods such as campus recruitment, social recruitment, and internal promotion. At the same time, the company activelycooperates with universities to provide ?nancial assistance, professional knowledge teaching, and internship opportunitiesfor students through the construction of "Xianhe Targeted Class", cultivating and attracting outstanding talents to joinXianhe.In response to the demand for senior talents, the company adheres to the principle of openness and fairness, and followsa "?exible introduction mechanism" to ?exibly carry out talent introduction work through intellectual introduction, part-timework, temporary employment, technical cooperation projects, or undertaking research projects.
Talent Recruitment
8281PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
Key Performance
Number of employees in needof assistance:146People
Total investment in assisting disadvantagedemployees:46,000yuan
The company always adheres to the concept of attracting good talents, cultivating strong talents, utilizing talents, andretaining talents. On the basis of protecting the rights and bene?ts of employees, it provides career development channelsfor employees, helps employees improve themselves, and achieves the dual development of the company and individu-als.
EMPLOYEE GROWTH AND DEVELOPMENT
ExternalRecruitment
Recruit talents through provincial, municipal, and district talentrecruitment fairsJob FairRecruitment
Participate in campus job fairs held by various universities,contact the employment of?ce teachers of the universities, bookthe venue for the presentations, or post company recruitmentinformation on the graduate employment website on campusCampusrecruitment
Publish recruitment information through media such as TalentNetwork, 58.com, Quzhou Direct Recruitment, etcOnline recruit-ment
Recruiting through employee recommendation and self recom-mendationEmployeeReferral
InternalRecruitment
Cursus honorum
Promotion route
TechnologyRoadmap
Seniorprofessional
title
Managementroute
Businessroute
8483PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
In order to further improve the ef?ciency of campus recruitment and continuously inject freshblood and vitality into the company, Xianhe has actively established deep cooperativerelationships with multiple universities and technical institutes. Through forms such as visits toenterprises by teachers and students, as well as university lectures by enterprises, we aim tostrengthen two-way communication between schools and enterprises, enhance the collisionand combination of theoretical knowledge and practical knowledge, establish a responsiblecorporate image among teachers and students, and lay a solid foundation for campusrecruitment.In addition, the company has established a "Xianhe Class" in cooperation with Quzhou Techni-cian College, providing practical opportunities for teachers and students to delve into thefront line, and offering priority job opportunities for students to be employed, so that studentsin the "Xianhe Class" can apply what they have learned.
School enterprisecooperation
Faculty and Student Delegation from theCollege of Engineering and TechnologyVisited Xianhe for Study Tour
Xianhe Leaders Delivered a Lecture atthe Technician Colledge
University Leaders Visit Xianhe forResearch and Exchange
The company has formulated the "Employee Promotion and Promotion Management Measures" based on the principlesof fairness, impartiality, and openness, providing clear assessment criteria for the promotion and promotion of employeesat different job levels. The promotion and promotion of all job levels are evaluated solely through more fair and transpar-ent examinations. The company provides clear personal development directions for employees and encourages them tostrive for self-improvement through work and training, achieving mutual progress between employees and the company.
Career Development
Juniorprofessionaltitle
Intermediateprofessional title
Manager,factory,ministerial level
Team leader
Salesperson
BusinessSupervisor
Deputy ChiefEngineer(Assistant)
Manager,
factory,ministerial level
Section chief
Deputy chiefengineer(assistant)
Manager,
factory,ministerial level
InternWorkersMonitorDeputy
sectionChief
DeputysectionChief+
SectionChief
SectionChief+
DeputyDirector-
DeputyDirector
DeputyDirector+
AssistantFactory
Level
Personnel training system
8685PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
The company adheres to the employment philosophy of "recruiting capable people, making full use of their talents, andmaking full use of their abilities". Through internal and external training, it provides pre job training, on-the-job training, andjob transfer training for new and existing employees, as well as leadership training for management. The companyconducts assessments, checks, and competitions on the training content to ensure the quality of the training. At the sametime, the company has established training records to manage the internal and external training situation of eachemployee. The employee's participation in training and exam results will be used as a reference for probation, salaryadjustment, and promotion, and will be linked to the year-end bonus to motivate employees' performance in trainingthrough performance evaluation.
Employee Training
Make full use of talentsFor the cultivation of college students, the method of ?rst rotatingpositions and then determining positions is adopted. Based onpersonal development intentions, job matching degree, and jobvacancies, rotating personnel are classi?ed and graded to achievefull utilization of their talents.Carry out independent evaluation in an orderly manner, based on theactual production of the enterprise, independently evaluate theoccupation (job type) and level range, focusing on assessing theprofessional ability, work performance, professional ethics, andcraftsmanship spirit of talents, excavating the skills and strengths ofemployees, and placing suitable people in appropriate positions.
Give full scope to the talents
Organize a skills competition for employees, select technical expertsand role models, and promote employees to continuously improvethemselves in a healthy competition.According to job requirements, the company organizes professionalskills and theoretical knowledge training to help employees improvetheir employment skills.Adopting a "one-on-one" mentorship format, through the threeaspects of "mentoring, teaching, and assisting", to help improve skillsand professional ethics.The company will actively cultivate and recommend employees withprofessional technical abilities and independent innovation capabili-ties to apply for professional and technical talent titles.Regularly arrange for middle and senior level cadres to visit and learnfrom various regions, in order to master relevant advanced manage-ment concepts and experiences. In 2024, 96 external meetings will bearranged for the company's middle and senior leaders to attend.
Recruit capable individuals
The company recruits outstanding talents through two methods:
internal recruitment and external recruitment.Newly hired employees are required to participate in pre job training,undergo assessment after training, and be eliminated at the bottom.
Key Performance
Employee training coveragerate100%Number of external trainingsessions
Number of leadership trainingsessions
Internal trainingfrequency6,306times
Employee trainingexpenditure
797.5thousand yuan
In order to enhance employees' enthusiasm for learning technology, exploring business, and practicing hardskills, promote their learning of theoretical and professional knowledge, enhance their practical skills, createa team atmosphere of love and dedication, and cultivate a high-quality skilled talent team, the companyheld the 2024 Employee Skills Competition. There are a total of 9 job types in the skills competition, dividedinto individual and team competitions. For this competition, each skill category awarded one ?rst prize, twosecond prizes, and three third prizes. All participants received a commemorative gift.
Promoting Learning and Empowering Skills through Competitions - TheCompany Holds the 2024 Employee Skills Competition
Case
2024 Annual Employee Skills Competition
8887PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
The company strictly adheres to the requirements of national laws and regulations, adheres to the policy of "safety ?rst,prevention oriented, and comprehensive management", establishes a sound occupational health and safety manage-ment system, and has passed the ISO 45001 occupational health and safety management system certi?cation. To ensurethe smooth operation of the occupational health and safety management system, the company has formulated a safetyproduction management system and established a safety production committee led by the general manager tostandardize the operational details of the occupational health and safety management system. In addition, the companycultivates employees' safety awareness and behavior habits through safety inspections, safety propaganda, safety drills,and safety themed meetings, forming a cultural atmosphere of "everyone talks about safety".
EMPLOYEE HEALTH AND SAFETY
The company has developed safety production management systems such as the "Occupation-al Health and Safety Hazard Identi?cation and Risk Assessment Procedure", "Occupational Healthand Safety Operation Control Procedure", and "Labor Protection and Protective Equipment ControlProcedure" based on legal norms, business situations, and employee health demands. Thesesystems cover all aspects related to safety production, including risk control, operation control,labor protection and protective equipment control, hazardous chemical control, emergencypreparedness and response control, ensuring that safety production is regulated and detailed indaily work.
Construction ofsafety system
The company has established a safety risk prevention mechanism that covers safety risk identi?-cation, safety production inspection, safety production operation standards, employee healthexaminations, etc., to ensure effective prevention and control of safety production risks.Security riskcontrolOrganizational Structure of Safety Production Committee
Implement relevant laws and regulations on safety production and the compa-ny's safety production management system, organize safety meetings, promptlyhandle safety risks and accidents, and report to superiors. Each factory has onesafety of?cer, and the factory director of each factory serves as the safetymanager and holds the corresponding certi?cate.
Factory directors and department heads of each branch
Review the company's safety production policies, objectives, management plans,rules and regulations, safety technical measures, safety production plans, etc;Fully lead the company's work on safety production, ?re prevention and disasterreduction, emergency management, etcGeneral manager
Key Performance
The company has obtained the certi?cation of occupationalhealth and safety management system (managementsystem complies with GB/T 45001-2020/ISO 45001:2018standards)
Research and supervise the implementation of laws and regulations related tosafety production and the company's safety production management system,supervise the implementation of safety production throughout the company,organize safety committees, safety production publicity and training, and otherworkVice General Manager, Assistant General Manager
Determine occupational health hazards throughHSE inspections, occupational pathology investi-gations, and pre assessment of occupationalhazards;Using the MES qualitative evaluation method, arisk assessment of various occupational healthhazards is conducted by comprehensivelyconsidering the status of control measures, thefrequency of exposure to hazardous environ-ments, and the possible consequences ofaccidents;Develop targeted control measures for extremelydangerous risk factors and assign speci?cresponsibilities to relevant departments forimplementation.
Identi?cation of occupational health andsafety hazards and risk assessment
The company has set occupational health andsafety management goals: there are no new orsuspected occupational diseases this year, andthe concentration of dust and toxic substances inthe workplace meets national standards;The company has approved the necessary?nancial budget for employee occupationaldisease examinations, occupational healthpromotion and training, and the con?gurationand replacement of occupational diseaseprevention equipment and devices.
Develop the '2024 Occupational DiseasePrevention and Control Work Plan andImplementation Plan'
Designate the 16th of each month as"Safety Inspection Day" and organizeon-site safety inspections;Adhere to the "Five Simultaneous Princi-ples" of safety production;
Regularly organize health check ups for allemployees and invite doctors to conductfree blood pressure and other healthchecks in the accommodation area;
Hire a third-party testing agency to audit thecurrent status of occupational disease hazardprevention and control in the company, andevaluate the effectiveness of occupationaldisease prevention and control from multipleperspectives such as occupational diseasehazard factor detection, occupational diseaseprevention facilities, emergency rescuefacilities, and occupational health training.
Post occupational hazard warning signsrelated to welding fumes, noise, dust, andhigh temperature hazards;
Regularly hold safety production analysismeetings to study and re?ect on safetywork;
Key Performance
Lost working days dueto work-relatedinjuries465DayThe total number ofrecordedaccidents15Order
Number of deaths dueto work-relatedinjuries0People
Death rate due towork-relatedinjuries0%
Number of newly addedemployees with occupationaldiseases0People
Number of safetyemergency drillsconducted
Total number of participantsin safety emergencydrills2,035People
Investment in safetytraining/educa-tion541,900yuanInvestment in occupationalhealth andsafety552,901yuan
Number of full-timesecuritypersonnel46PeopleEmployee physicalexaminationcoverage rate100%
Number of employeesafety production trainingsessions
Coverage rate of safetyproduction training100%
Work injury insuranceinvestment3,830.8thousands yuan
Safety Recti?cation MeetingSafety Recti?cation MeetingSafety Inspection
Wounded personnel rescue drill
Fire emergency drill
9089PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
The company attaches great importance to improving employees' awareness of safety produc-tion, actively carries out safety education and drills, and requires new employees to undergofactory safety education, general safety education, and on-site job education; The companyholds monthly safety meetings and the factory conducts employee safety education; Worksections and teams conduct safety education once a week through class meetings to furtherstrengthen employees' awareness of safety production. The company organizes annual safetyand ?re drills, limited space operation drills, safety knowledge competitions, and other activitiesfor employees to deeply instill the concept of safety production.
safetyeducation
9291PARTNER ARTICLE: PUTTING PEOPLE FIRST, SHARING ACHIEVEMENTSXIANHE CO., LTD 2024 Sustainability Report
In the process of enterprise development, Xianhe always pays attention to community construction, adheres to the valueconcept of "creating wealth and serving society", actively responds to the national rural revitalization strategy, engages inpublic welfare undertakings, and assists in the construction of harmonious countryside and society.
PUBLIC WELFARE, CHARITY AND SOCIALCONTRIBUTION
Xianhe Group always maintains a high sense of social responsibility, is brave in taking on responsibilities, enthusiasticabout public welfare, and shares Xianhe's development achievements with society. In 2024, Xianhe donated 1.9616 millionyuan to various sectors of society for public welfare purposes such as helping students, caring for the elderly, comfortingteachers, and supporting public activities, contributing to the construction of a harmonious society and contributingXianhe's warmth.
Public Welfare Donations
Rural Revitalization
he company invested 11.8 billion yuan in the construction of high-performance paper-based newmaterials project in Sanjiangkou New Area, Laibin City, Guangxi Province. The company has ?lledthe gap in the specialty paper industry in Guangxi, greatly enhancing the economic value of localeucalyptus resources, expanding channels for local residents to increase income, and promotingthe formation of an economic development model centered on the paper industry chain. At thesame time, the company provides well paying job positions for local residents and carries outroad construction, allowing local residents to move from "going out" to "staying behind".
Guangxi Xianhe
The wholly-owned subsidiary of the company, Henan Xianhe, combines the technological char-acteristics of various production processes and arranges some production lines that rely onmanual labor and have low technical barriers in rural areas, providing local residents with ?exibleworking hours and good working conditions. To ensure product quality, the company providesskill training for residents, increases their employment skills, and meets the local employmentneeds of rural residents. Henan Xianhe has established 43 rural production workshops, providingemployment opportunities for 470 local villagers and paying a labor fee of 14.4228 million yuan.
Henan Xianhe
Key Performance
Total investment amount for rural revitalization
14,422.80thousand yuanNumber of bene?ciary groups for rural revitalization470People
Henan Xianhe
Xianhe Co., Ltd
Hubei Xianhe
Donate to elderly people over 60 yearsold in Dongwangying Village, TuandongTown404,600.00yuan
Teacher's Day condolencefund18,000.00yuanSupporting impoverished collegestudents173,000.00yuan
College studentsubsidy6,000.00yuan
Donation to Quzhou CharityFederation1,000,000.00yuan
Sponsorship fee for DongshengSports Games200,000.00yuan
Wang BendaoScholarship80,000.00yuan
99 Public WelfareDonations80,000.00yuan
Xianhe is committed to building a standardized operation, scienti?c management, clean and transparent governancesystem, and creating a benign business environment. By establishing a sound governance structure, establishing a com-pliant business management system, and implementing a clean corporate culture, we can build a solid foundation forgovernance and ensure the long-term healthy development of the enterprise.
PRACTICAL AND DILIGENT ACTIONS,BUILDING A SOLID FOUNDATION
GOVERNANCE
Corporate governance
Compliant operation
Business ethics
Risk management
Party building leads
96GOVERNANCE SECTION: PRACTICAL AND DILIGENT ACTIONS, BUILDING A SOLID FOUNDATION95XIANHE CO., LTD 2024 Sustainability Report
The company insists on building a scienti?c and standardized governance system and strengthening its corporate gover-nance capabilities. The company continues to improve its corporate governance structure, optimize and perfect its gover-nance system, attach importance to the protection of investors' rights and interests, and effectively enhance the compa-ny's standardized operation level.
CORPORATE GOVERNANCE
The company strictly complies with the requirements of the Company Law of the People's Republic of China, the SecuritiesLaw of the People's Republic of China, the Code of Corporate Governance for Listed Companies, the Listing Rules of theShanghai Stock Exchange, and relevant normative documents of the China Securities Regulatory Commission and theShanghai Stock Exchange. It has formulated and timely revised various rules and regulations of the company, improvedthe operation mode of "three meetings and one layer", continuously improved the corporate governance structure,standardized the operation of the company, and enhanced the level of corporate governance.
Governance Architecture
The governance structure of "three meetings and one layer"
Key Performance
Board OfSupervisors
The supervisory board is the supervisory body of the company. The companyconvenes the supervisory board in accordance with relevant regulations such as theArticles of Association and the Rules of Procedure of the Supervisory Board. Allsupervisors strictly ful?ll their supervisory duties, ensure the daily operation of theboard of directors, safeguard the compliance of the behavior of directors and seniormanagement personnel and the company's ?nancial matters, and strive tosafeguard the legitimate rights and interests of the company and shareholders.
Board OfDirectors
The board of directors is the decision-making body of the company. The companystrictly abides by the provisions and requirements of the Articles of Association andthe Rules of Procedure of the Board of Directors to convene the board of directors.Each director conscientiously ful?lls the responsibilities entrusted by the sharehold-ers' meeting, fully plays the guiding and supervisory role of the board of directors inmajor decision-making and business management, and diligently safeguards thelegitimate rights and interests of shareholders and various stakeholders. The boardof directors has ?ve specialized committees, namely the Strategy Committee, AuditCommittee, Nomination Committee, Remuneration and Assessment Committee,and ESG Committee, all of which operate in accordance with the working rules ofeach committee.
SeniorManagement
The senior management is the executive body of the company, appointed by theboard of directors and responsible to the board of directors. According to therelevant systems of corporate governance and the powers granted by the board ofdirectors, it executes board resolutions and organizes business activities such asproduction and operation of the company.
General Manager
Internal AuditDepartment
Board ofSupervisorsSecuritiesDepartment
Audit CommitteeESG CommitteeStrategyCommittee
Compensation andAssessmentCommittee
Board of Directors
NominationCommittee
Number of Shareholders'MeetingsConvened
Number of StrategyCommittee MeetingsConvened
Number of Audit CommitteeMeetings Convened
Number of companydirectors
Among them: Number offemale directors
Number of independentdirectors
Number of ESG Committeemeetings
Number of NominationCommittee MeetingsConvened
Number of Compensationand Assessment CommitteeMeetings Convened
Number of Board ofDirectors MeetingsConvened
Number of Board ofSupervisors MeetingsConvened
The shareholders' meeting is the power structure of the company. The companystrictly convenes the shareholders' meeting in accordance with relevant regulationssuch as the Articles of Association, Rules for Shareholders' Meetings of ListedCompanies, and Rules of Procedure for Shareholders' Meetings to carry out noti?ca-tion, deliberation, voting, and information disclosure work.The GeneralMeeting OfShareholders
The company attaches great importance to the protection of investors' rights and interests, strictly follows the regulationsof regulatory authorities and the requirements of the company's articles of association, and has formulated the "InvestorRelations Management Measures of Xianhe Co., Ltd. The company holds performance brie?ng meetings, releases regularand interim reports, organizes and receives institutional investors for research, and uses multiple channels such as the"Shanghai Stock Exchange e-Interactive" network platform, hotline, and email to truthfully and fully convey the company'soperational information to investors, effectively protecting the legitimate rights and interests of all shareholders.During the reporting period, the company participated in the online collective reception day for investors of listed compa-nies in Zhejiang Province in 2024, held performance brie?ng meetings for the year 2023 and the ?rst quarter of 2024, heldperformance brie?ng meetings for the half year of 2024, and held performance brie?ng meetings for the third quarter of2024, and conducted timely and effective information communication with investors.
Investor Relations Management
Number of PerformanceBrie?ngs Held
Number of Announcementsfor Institutional InvestorResearch Reception
Total number of announcements disclosedthrough designated information disclosurechannels
Interactive platformQ&A responserate100%
Number of Investor InquiriesResponded to on InteractivePlatforms
Key Performance
Number of ComplianceActivities Conducted
Number of internal control trainingsessions conducted
Number of Employees Participatingin Compliance Training3,552Person-time
Number of projects subject tothird-party audit
Number of internal specialaudit projects conducted
Key Performance
The company takes integrity and law-abiding as the basic principles of daily operation, adheres to compliant operation,continuously supervises the compliance of enterprise management work, takes compliant operation as the criterion, andconsolidates the foundation of the company's business.
COMPLIANCE OPERATION
The company strictly follows the requirements of the "Internal Audit Management System", "Internal Accounting ControlRegulations" and other systems and norms, continuously improves compliance and internal control management mech-anisms, and ensures the effectiveness of the internal control management system.Compliance Management
9897GOVERNANCE SECTION: PRACTICAL AND DILIGENT ACTIONS, BUILDING A SOLID FOUNDATIONXIANHE CO., LTD 2024 Sustainability Report
Compliance and Internal Control Management Process
Prevention stage
Develop regulations andnormative documentsContinuously building a compli-ance culture and conductinginternal trainingPromoting Information SystemConstruction with OA (Of?ceAutomation) and ERP SystemsGuide, supervise, and regularlyreview the institutional construc-tion of each branch factorydepartmentPromote compliance operationof subsidiaries through monthlyon-site veri?cation
Conduct annual internal auditand implement cross depart-mental audit modeHire a professional third-partyorganization for external auditingKey Special Activities for AnnualReview
Audit stageRecti?cation stage
The board of directors andsenior management listened tothe audit results report andprovided guidanceCoordinate internal institutionsto rectify in a timely manner andimplement requirements
General managerThe chief person in charge of intellectual property management isresponsible for formulating intellectual property policies, objectives, andrelated policies; Simultaneously responsible for managing and reviewingthe effectiveness of the intellectual property management system.
Intellectual Property Department
Responsible for the main duties ofintellectual property management,organizing the formulation of the compa-ny's intellectual property goals andimplementation work plans, and regularlyinspecting, assessing, and evaluating theimplementation of intellectual propertygoals by various functional departments.
Other functional departmentsThe executing agency of intellectualproperty work collaborates tocomplete tasks related to theacquisition, maintenance, utilization,and protection of intellectualproperty.
Key Performance
100% coverage of employees who sign intellectual property con?dentiality agreements orrelated clauses
Management Structure
The company strictly abides by relevant laws and regulations such as the Intellectual PropertyProtection Law of the People's Republic of China, and has formulated intellectual propertyprotection systems such as the General Principles of Intellectual Property Management, PatentManagement System, Trademark Management System, Software Copyright ManagementSystem, and Intellectual Property Reward and Punishment System to ensure the effectiveprotection of its own innovative achievements. At the same time, it strictly abides by relevantlaws and regulations, respects and safeguards the intellectual property rights and interests ofothers, and achieves compliant operation and ef?cient management of intellectual property.
InstitutionalSystem
Xianhe adheres to the management policy of "innovative development, protection of intellectual property rights, andimprovement of core competitiveness of enterprises", adheres to the basic principles of "complying with relevant nationalintellectual property laws and regulations, respecting the intellectual property rights of others, safeguarding the author-ship rights of inventors, and reasonably maintaining its own intellectual property rights", and constructs a sound intellectu-al property system and management framework to reduce intellectual property risks. To enhance employees' awarenessof intellectual property protection and improve the operational ef?ciency of the intellectual property management frame-work, the company actively participates in external training related to intellectual property, promotes the value realizationof the company's innovative achievements, and promotes the healthy development of the entire industry.
Intellectual Property Management
According to the provisions of the Shanghai Stock Exchange Listing Rules, the company has established a specializeddepartment and allocated professional personnel, designated the Shanghai Securities News as the company's publicinformation disclosure media, and effectively ful?lled its information disclosure obligations. The company strictly followsthe requirements of the "Information Disclosure Work Rules" and discloses relevant information in a truthful, accurate,complete, and timely manner to ensure that all shareholders have equal access to information.
Information Disclosure
Information Security
Xianhe Corporation fully recognizes the importance of information management in enterprise operations and alwaysattaches great importance to information security management. The company strictly abides by the Cybersecurity Lawof the People's Republic of China and the Data Security Law of the People's Republic of China, and has formulated theInformation Management System, which covers data protection, system security, access permission management, andother aspects to ensure the security and con?dentiality of various information assets. During the reporting period, thecompany did not experience any data security incidents.
10099GOVERNANCE SECTION: PRACTICAL AND DILIGENT ACTIONS, BUILDING A SOLID FOUNDATIONXIANHE CO., LTD 2024 Sustainability Report
Information Security Management ArchitectureInformation security technology guarantee
Decision layer
Data Security StrategyGuidance Committee
Management
Data Security Management
Center
Execution LayerBusiness Department DataSecurity Liaison Group
Regularly audit the operation of the data security governance system andinspect the implementation of data security policies, processes, andtechnical measures.Pay attention to changes in domestic and international data securitylaws, regulations, and industry regulatory policies, timely interpret andtranslate relevant requirements into internal data security complianceguidelines for the company.
In order to effectively respond to possible emergencies in the data center, the company hasformulated the "Emergency Plan for Information Systems in Data Centers", which clari?es thescope of responsibilities of the emergency response leadership group for sudden informationsystem incidents, and develops emergency response measures for various types of emergenciessuch as natural disasters, accidents, and man-made destruction. It timely controls and maximiz-es the elimination of the impact of various information security emergencies to ensure enterpriseinformation security.
InformationSecurityEmergencyMechanism
The company actively cooperates with the government's cybersecurity department to conductnetwork security attack and defense exercises, and based on feedback reports, identi?es andimproves potential risk points, continuously strengthens the network security protection system,and ensures the long-term stability and security of the company's information system.
Offensive andDefensiveExercises
102101GOVERNANCE SECTION: PRACTICAL AND DILIGENT ACTIONS, BUILDING A SOLID FOUNDATIONXIANHE CO., LTD 2024 Sustainability Report
We have deployed a multi factor authentication platform that combines various authenti-cation methods such as passwords, dynamic veri?cation codes, and biometric authentica-tion for login veri?cation.Apply role-based access control (RBAC) model to accurately allocate access and opera-tion permissions based on employee positions and responsibilities, and record and monitoruser access behavior in detail and real-time.Internal and external network isolation, internal network users access the external networkthrough NAT, while external network users can only access the internal network throughspeci?c channels.Identity authenti-cation and access
control system
A comprehensive data security monitoring network has been constructed by deployingsecurity monitoring probes at key nodes such as company network boundaries, serverclusters, and application systems.Utilizing big data and arti?cial intelligence technology to conduct real-time analysis ofmonitoring data, quickly identify security threats such as data leaks, malicious attacks, andabnormal traf?c, and send warning information to notify the security operations team foremergency response.Data SecurityMonitoring andWarning Platform
Adopting a hybrid encryption algorithm to encrypt, store, and transmit all sensitive data,ensuring the security of the data at all stages.A centralized key management platform has been established to strictly manage thelifecycle of keys, including generation, storage, distribution, updates, and destruction,ensuring key security and reducing the risk of leakage.Data Encryptionand KeyManagement
The general manager of the company group serves as the chairmanof the committee, and the members include the regional generalmanagers of various subsidiaries, the directors and ministers incharge of regional information technology departments, and theheads of information technology teams. The committee is responsi-ble for formulating the company's long-term strategic policy for datasecurity and reviewing major data security decisions.
The regional information technology leader also serves as the centerdirector, and the team members are members of the information technolo-gy team. Its responsibilities include developing data security managementsystems, coordinating the implementation of data security projects,classifying and grading data assets, and regularly conducting data securityrisk assessments.
Each business department sets up a data security liaison to integratedata security requirements into daily business processes, ensure thatall activities comply with data security standards, and provide timelyfeedback on the department's needs and issues in data security.
Supervisory levelInternal Audit and RiskManagement DepartmentCompliance and LegalDepartment
104103GOVERNANCE SECTION: PRACTICAL AND DILIGENT ACTIONS, BUILDING A SOLID FOUNDATIONXIANHE CO., LTD 2024 Sustainability Report
The company always requires all employees to "build a clean and honest Xianhe with the highest professionalethics", and prohibits any form of corruption and unfair competition among company employees and partnersthrough various means such as systems, publicity, training, and commitment letters, promoting the deepeningdevelopment of corporate integrity culture. At the same time, the company encourages employees andpartners to report violations of business ethics such as corruption, unfair competition, etc., and establishes awhistleblower protection mechanism to prevent all forms of retaliation.
BUSINESS ETHICS
In order to eliminate corrupt practices and unfair competition that violate business ethics, the company hasformulated a series of anti-corruption systems such as the "Code of Business Ethics," "Anti Corruption Manage-ment System," "Anti Corruption Prevention and Control System," "Anti Corruption Supervision System," and "AntiCorruption and Gift Management System." The company has also established an anti-corruption and antiunfair competition governance framework to constrain all employees to abide by business ethics in their dailyproduction and operation activities, and to create a good cultural atmosphere through supervision and train-ing. In addition, the company has signed integrity agreements with upstream and downstream partners topromote a culture of integrity in the upstream and downstream industrial chains.
Xianhe adheres to a zero tolerance policy towards violations of business ethics, accepting reports immediately,investigating upon acceptance, and taking disciplinary action or legal responsibility based on the severity ofthe circumstances. In addition, the company regularly identi?es and evaluates the business ethics risks ofvarious departments or businesses, and adopts graded management measures.
Anti corruption and Anti unfair Competition
Board of directorsResponsible forformulating policies andsupervising theirimplementation, makingdecisions on majorviolations
Risk managementcommitteeResponsible for developingspeci?c anti bribery andanti-corruptionprocedures, implementingdaily monitoring, andmanaging risks within thedepartment to ensure thatemployees comply withrelevant regulations
Internal AuditDepartmentResponsible for regularaudits, evaluating theeffectiveness of antibribery andanti-corruption policies,and proposingimprovement suggestions
Decision
layer
Execution
Layer
Regulatoryauthorities
Strengthen supervisionand inspection
Conduct regular supervision and inspection ofmedium risk departments or businesses, analyzerisk points based on speci?c business processes,and conduct audit work on key high-riskbusiness nodes.
Continuous supervision andcomprehensive auditing
Conduct continuous supervision andcomprehensive audits of high-risk departmentsor businesses to ensure transparency ofbusiness processes, and eliminate unethicalbehavior through traceable business recordsand high-pressure supervision.
Low risk
Medium
risk
High risk
Strengthen the awarenessof subject responsibility
The chairman of the company signed andissued the "Integrity Notice", which was posted atthe company's entrance, workshop, and of?cebuilding to strengthen the awareness of integrity.Highlight the exemplaryrole of management
Introduce a list of 20 positive and negativeaspects of the new type of government businessrelationship that is pro clean, and sign acommitment letter of integrity with key of?cialsat all levels to strengthen their exemplary andleading role.Improve internal constraintmechanisms
Incorporate employees' integrity into the annualassessment criteria, achieving a deepintegration of integrity practice and personalinterests.
Create a clean and honestworking environment
Based on the theme of integrity education, wewill create a "Five Ones" integrity main battle?eldconsisting of a heart clearing bar, a harmoniouspavilion, a clean wall, a clean corridor, and aclean training room, creating a culture ofintegrity.Building a clean upstreamand downstream chain
Sign the "Xianhe Stock Supplier Code of Conduct"with partners during the procurement and salesprocess, guiding upstream and downstreampartners to comply with the company'srequirements for clean and honest practices.
Comprehensively enhancethe awareness of integrity
Incorporate the regulations on integritymanagement into the training courses for newemployees, provide them with integrity giftpackages, and regularly educate all newemployees. The company regularly holdsintegrity education activities covering allemployees, including special events such as "15Minutes of Integrity" and "Integrity XianheEducation Week", to continuously enhanceemployees' legal awareness and complianceconsciousness.
106105GOVERNANCE SECTION: PRACTICAL AND DILIGENT ACTIONS, BUILDING A SOLID FOUNDATIONXIANHE CO., LTD 2024 Sustainability Report
In order to comprehensively enhance the awareness of integrity among company employees, strengthen theconstruction of anti-corruption and integrity culture, and promote a clean and upright culture, the companyheld two consecutive business ethics training sessions in 2024, namely the "Integrity and Enterprise RiskManagement" training for middle and senior management personnel and the "Anti Corruption Laws andRegulations and Professional Ethics" training for all employees. Through training activities, the integrityawareness and risk management ability of middle and senior management personnel have been improved,while consolidating the legal and regulatory awareness and professional ethics level of all employees, layinga solid foundation for the company's future sustainable development in terms of ethics and risk manage-ment.
Clean and Honest Work - The company continuously holds businessethics training
Case
“廉洁从业与企业风险管理”培训“反腐法律法规与职业道德”培训
Key Performance
96.97%
Proportion of senior employees who have receivedanti-corruption/integrity training
96.15%
Proportion of middle-level employees who havereceived anti-corruption/integrity training
96.35%
Proportion of ordinary employees who have receivedanti-corruption/integrity training
57.14%
Proportion of board members who have receivedanti-corruption/integrity training
Number of anti-corruption and integrity training sessions conducted45
Corruption lawsuits againstcompanies or employees0Cases
Total number of complaintsand reports received0Cases
Total number of complaintsand reports processed
0CasesProportion of signing integrityagreements with clients100%
Proportion of signing integrityagreements with suppliers100%
We focus on risk prevention and control management, improve risk management architecture, standardize risk responseand opportunity control procedures, effectively protect the interests of shareholders and other stakeholders, andsafeguard the sustainable development of the company.
RISK MANAGEMENT
The company has established a comprehensive risk management framework consisting of a "board of directors, riskmanagement committee, and audit department" to strengthen the risk governance system through coordinated planningand hierarchical control. The board of directors is responsible for strategic risk supervision and decision-making, the riskmanagement committee undertakes speci?c risk assessment, warning, and response responsibilities, and the auditdepartment serves as a professional support department to ensure the effective implementation and continuous optimi-zation of risk management measures.To systematically manage various risks, the company has developed the "Risk and Opportunity Control Procedure", whichclari?es the full process management requirements for risk identi?cation, assessment, response, and monitoring, andre?nes speci?c operational guidelines including risk avoidance, risk reduction, risk transfer, and risk acceptance. In thefuture, the company will continue to identify and control multidimensional risks such as operations, compliance, ?nance,and law, and incorporate ESG factors into risk management to enhance organizational resilience and sustainable devel-opment capabilities, ensuring that the enterprise effectively seizes development opportunities while operating steadily.
Financial risk
The company has formulated the "Financial Risk Control Management System", which is regularlyevaluated by a specially established risk management department based on principles such ascomprehensiveness, importance, balance, adaptability, and cost-effectiveness. At the same time,the department has established a ?nancial risk management warning system to ensure the stabilityof the company's ?nancial operations by timely preventing and resolving risks.
The company establishes a dedicated ESG committee to systematically identify, assess, andmanage ESG related risks, ensuring the effective implementation of sustainable developmentstrategies. Relying on a sound ESG governance system, the company formulates clear managementpolicies, optimizes processes, strengthens responsibility implementation, and enhances ESG man-agement level through internal reviews;The company regularly organizes ESG themed training to enhance the sustainable developmentawareness of employees and management, and promote the deep integration of corporate cultureand ESG concepts;The company actively communicates with stakeholders, absorbs industry best practices, continu-ously optimizes governance models, and promotes high-quality development of the enterprisethrough responsible management, achieving long-term stable growth.
ESG related
risks
Legal risk
The company's dedicated legal personnel are responsible for controlling legal risks, conductingcompliance checks, issuing risk assessment reports, providing professional reference fordecision-making, and avoiding legal risks;Organize sales personnel to conduct training on legal risk prevention such as contract law and riskcontrol, and strengthen the legal risk awareness of relevant departments.
Risk Management System
Risk identi?cation and response
108107GOVERNANCE SECTION: PRACTICAL AND DILIGENT ACTIONS, BUILDING A SOLID FOUNDATIONXIANHE CO., LTD 2024 Sustainability Report
Xianhe provides an OA reporting system for employees to encourage them to report any violations of businessethics in their daily operations. At the same time, the company encourages upstream and downstreampartners to report and expose in a timely manner, and work together with partners to maintain a fair and justbusiness environment.In order to safeguard the legitimate rights and interests of whistleblowers, the company has formulated the"Xianhe Co., Ltd. Code of Business Ethics", which strictly prohibits any form of retaliation against whistleblowers.If there is a violation, relevant personnel and superiors will be held responsible. For behaviors that seriouslyendanger the rights and interests of whistleblowers, they will be promptly reported to the judicial authorities andcriminal responsibility will be pursued in accordance with the law. At the same time, we require employees tosign an informed consent form to ensure that they fully understand the company's regulations on reportingviolations and prohibiting retaliation, in order to further emphasize their commitment to ensuring that allemployees can exercise their reporting rights smoothly within the company.
Whistleblower Protection
110109KEY PERFORMANCE TABLEXIANHE CO., LTD 2024 Sustainability Report
KEY PERFORMANCE TABLE
Waste Disposal
Addressing Climate Change
Environmental Compliance Management
Water WithdrawalComprehensive Water Consumption per Unit ProductTotal Water Recycled and ReusedPercentage of Water Recycled and ReusedNatural Gas ConsumptionCoal ConsumptionSteam ConsumptionPurchased ElectricityTotal Photovoltaic Power GenerationlElectricity Self-Suf?ciency RateProportion of Renewable Energy UsedTotal Comprehensive Energy ConsumptionComprehensive Energy IntensityGeneral WasteHazardous WasteScope 1 Greenhouse Gas EmissionsScope 1 Greenhouse Gas Emission IntensityScope 2 Greenhouse Gas EmissionsScope 2 Greenhouse Gas Emission IntensityTotal Greenhouse Gas Emissions (Scope 1 + Scope 2)Environmental Protection Investment
tonm?/tonton%m?tontonkW·hkW·h%%tcetce/tonne of papertontontCO
etCO
e/tonne of papertCO
etCO
e/tonne of papertCO
ethousand RMB
21,686,645.58
15.79
709,225,599.28
98.11
31,635,665.18375,351.843,889,151.51917,360,168.8065,089,149.00
29.11
5.03
648,982.66
0.47
140,409.43
7.27
1,014,856.59
0.74
770,984.52
0.56
1,785,841.111,086,675.60
IndicatorUnit2024
Energy Utilization
Water Resource Utilization
Environmental performance
Social performance
Environmental and Energy Conservation Meetings Held Throughout the YearNumber of Emergency Response Plans Filed with Environmental AuthoritiesEnvironmental Training Coverage RateEnvironmental Emergency Drills Conducted AnnuallyNumber and Amount of Environmental Penalties for Excessive or Non-Compliant EmissionsNumber of Environmental Emergencies
timesunits%timesthousand RMBunits
IndicatorUnit2024
Note 1: The data on general and hazardous waste covers all companies included in the list of enterprises required by law todisclose environmental information, including Xianhe Co., Ltd., Hegang Environmental Protection, Zhefeng New Energy, ZhefengEnergy, Zhefeng Environmental Protection, Henan Xianhe, and Hubei Xianhe New Materials.Note 2: In the calculation of greenhouse gas emissions, emission factors for natural gas, coal, and steam are sourced from theGuidelines for Accounting and Reporting of Greenhouse Gas Emissions for Pulp and Paper Enterprises (Trial). The emission factorfor electricity is based on the 2022 Announcement on CO
Emission Factors for Electricity by the Ministry of Ecology and Environ-ment and the National Bureau of Statistics (Announcement No. 33 of 2024).
Employee Composition
By Age Group
By Education Level
Total Number of EmployeesNumber of Male EmployeesNumber of Female Employees25 Years Old and Below25 to 55 Years Old55 Years Old and AboveMaster's Degree and AboveBachelor's DegreeAssociate DegreeTechnical Secondary/High SchoolJunior High School and Below
personspersonspersonspersonspersonspersonspersonspersonspersonspersonspersons
6,6745,219 1,4551,1275,326
1,4612,8571,979
IndicatorUnit2024
112111INDEX OF INDICATORSXIANHE CO., LTD 2024 Sustainability Report
Employee Training and Development
Employee Rights Protection
Employee Welfare and Care
Occupational Health and Safety
Production PersonnelSales PersonnelTechnical and R&D PersonneFinancial PersonnelAdministrative PersonnelProcurement PersonnelOthersEmployee Training Coverage RateNumber of Internal Training SessionsNumber of External Training SessionsNumber of Leadership Training SessionsEmployee Training Expenditure AmountNumber of Employee Congresses or Other Democratic Communication Meetings HeldEmployee Union Membership RateCollective Agreement Coverage RateEmployee Satisfaction ScoreNumber of Employee Complaints or Whistleblower ReportsNumber of Employees Receiving AssistanceTotal Amount of Assistance Provided to Employees in NeedNumber of New Cases of Occupational DiseaseNumber of Emergency Safety Drills ConductedTotal Number of Participants in Emergency Safety DrillsLost Workdays Due to Work-Related Injuries
personspersonspersonspersonspersonspersonspersons%timestimestimesthousand RMBtimes%%pointstimespersonsyuanpersonstimespersonsdays
5,906
6,306
797.50
46,000
2,035
IndicatorUnit2024
By FunctionSocial performance
Innovation-Driven Development
Product and Service Quality and Safety
Customer Service
Total Number of Recordable IncidentsNumber of Work-Related FatalitiesWork-Related Fatality RateInvestment in Safety Training and EducationOccupational Health and Safety InvestmentNumber of Full-Time Safety PersonnelCoverage Rate of Employee Physical ExaminationsNumber of Safety Production Training SessionsCoverage Rate of Safety Production TrainingInvestment in Work Injury InsuranceCorporate R&D InvestmentYear-on-Year Growth Rate of R&D InvestmentNumber of R&D PersonnelProportion of R&D PersonnelNumber of New Utility Model Patents GrantedNumber of New Invention Patents GrantedCumulative Utility Model Patents GrantedCumulative Invention Patents GrantedNumber of Quality Training Sessions ConductedAverage Duration of Quality Training per PersonProduct Quali?cation RateNumber of Customer Satisfaction Questionnaires DistributedNumber of Valid Customer Satisfaction QuestionnairesAverage Customer Satisfaction Score
timespersons%yuanyuanpersons%times%thousand RMBmillion RMB%persons%itemsitemsitemsitemstimeshours%copiescopiespoints
541,900552,901
3,830.80
134.2332
18.90
4.67
31.50
99.18
91.64
Social performance
IndicatorUnit2024
114113INDEX OF INDICATORSXIANHE CO., LTD 2024 Sustainability Report
Strategy Committee MeetingsNomination Committee MeetingsRemuneration and Appraisal Committee MeetingsAudit Committee MeetingsESG Committee MeetingsNumber of DirectorsNumber of Independent DirectorsNumber of Female DirectorsPerformance Brie?ngs HeldQ&A Response Rate on Interactive PlatformNumber of Investor Inquiries Responded on Interactive Platforms
Number of Anti-Corruption and Integrity Training Sessions Conducted
Number of Law and Compliance-Themed Events HeldNumber of Employees Participating in Law and Compliance TrainingNumber of Internal Special Audit Projects ConductedNumber of Internal Control Training Sessions ConductedNumber of Projects Audited by Third PartiesNumber of Corruption Lawsuits Involving the Company or EmployeesTotal Number of Corruption Complaints and Whistleblower Reports ReceivedTotal Number of Corruption Complaints and Whistleblower Reports HandledProportion of Customers with Integrity Agreements SignedProportion of Suppliers with Integrity Agreements Signed
Total Number of Announcements Disclosed via Designated InformationDisclosure Channels
Proportion of Senior Employees Trained on Anti-Corruption, Anti-Bribery, andIntegrity PracticesProportion of Middle Management Employees Trained on Anti-Corruption,Anti-Bribery, and Integrity PracticesProportion of Regular Employees Trained on Anti-Corruption, Anti-Bribery,and Integrity PracticesProportion of Board Members Trained on Anti-Corruption, Anti-Bribery, andIntegrity Practices
timestimestimestimestimespersonspersonspersonstimes%timescopiestimes
timesperson-timestimestimestimesitemsitemsitems%%
3,552
Anti-Bribery and Anti-Corruption
IndicatorUnit2024
Corporate Governance
Board Meetings HeldSupervisory Board Meetings HeldShareholders' General Meetings Held
timestimestimes
IndicatorUnit2024
Corporate Governance
%%%%
96.97
96.15
96.35
57.14
Supplier Management
Social ContributionRural Revitalization
Customer Complaint Resolution RateAverage Time to Handle and Rectify Customer Complaints
%working days
Social performance
Number of Wood Pulp Suppliers in Mainland ChinaNumber of Wood Pulp Suppliers Outside Mainland China
supplierssuppliers
Proportion of Wood-Based Fiber Materials Sourced fromThird-Party Certi?ed Forests (e.g., FSC, PEFC)Number of Suppliers Terminated Due to Non-ComplianceNumber of Internal Procurement Training SessionsNumber of Training Sessions Provided to SuppliersTotal Duration of Supplier Training ProvidedNumber of Suppliers Participating in TrainingNumber of Suppliers Certi?ed with Quality Management SystemsNumber of Suppliers Certi?ed with Environmental Management SystemsNumber of Suppliers Certi?ed with Occupational Health and Safety Management SystemsNumber of Suppliers with Other Sustainability-Related Certi?cationsAmount of External DonationsInvestment in Rural RevitalizationNumber of Bene?ciaries from Rural Revitalization Initiatives
supplierstimestimeshourssupplierssupplierssupplierssupplierssuppliersthousand RMBthousand RMBpersons
1,961.6014,422.80
%100
IndicatorUnit2024
116INDEX OF INDICATORS115XIANHE CO., LTD 2024 Sustainability Report
INDEX OF INDICATORS
ReportingFrameworkRegardingthis reportChairman'sspeech
Special article: "Integrated construction of forestry, pulp, paper and use": leading greencirculation and empowering regional development
GRI Standards
Shanghai Stock Exchange SelfRegulatory Guidelines for ListedCompanies No. 14- SustainableDevelopment Report (Trial)
GRI 2-2: Entities included in the organization’ssustainability reportingGRI 2-3: Reporting period, frequency andcontact point
Article 4
Article 5Article 9Article 12Article 53
Article 34Article 37Article 45
GRI 2-1: Organizational detailsGRI 2-12: Role of the highest governance body inoverseeing the management of impactsGRI 2-13: Delegation of responsibility for managingimpactsGRI 2-14: Role of the highest governance body insustainability reportingGRI 2-22: Statement on sustainable developmentstrategy
GRI 3-1: Process to determine material topicsGRI 2-29: Approach to stakeholder engagement
GRI 3-2: List of material topicsGRI 3-3: Management of material topics
GRI 2-22: Statement on sustainable developmentstrategy
ReportingFramework
GRI Standards
Shanghai Stock Exchange SelfRegulatory Guidelines for ListedCompanies No. 14- SustainableDevelopment Report (Trial)
About Us
Environmentalmanagement
Addressingclimate change
Water ResourceManagement
Pollution Control
SustainabilityManagement
New model ofcirculareconomyNew Strategyfor SupplyChain SecurityNew Engine ofRegionalEconomy
GRI 2-6: Activities, value chain and otherbusiness relationships
Environment: Green Development, Low Carbon Transformation
Article 33
Article 35Article 36
Article 29Article 30Article 31
GRI 302-1: Energy consumption within theorganizationGRI 302-2: Energy consumption outside ofthe organizationGRI 302-4: Reduction of energy consumptionGRI 305-1: Direct (Scope 1) GHG emissionsGRI 305-2: Energy indirect (Scope 2) GHGemissionsGRI 305-3: Other indirect (Scope 3) GHGemissionsGRI 305-4: GHG emissions intensityGRI 305-5: Reduction of GHG emissionsGRI 303-1: Interactions with water as a sharedresourceGRI 303-2: Management of waterdischarge-related impactsGRI 303-3: Water withdrawalGRI 303-4: Water dischargeGRI 305-6: Emissions of ozone-depletingsubstances (ODS)GRI 305-7: Nitrogen oxides (NOx), sulfur oxides(SOx), and other signi?cant air emissions
GRI 302-3: Energy intensity
Article 21Article 22Article 23Article 24Article 25Article 26Article 27Article 28
Article 37
Article 32
Article 42
Article 47
Article 48Article 45
118117INDEX OF INDICATORSXIANHE CO., LTD 2024 Sustainability Report
ReportingFramework
GRI Standards
Shanghai Stock Exchange SelfRegulatory Guidelines for ListedCompanies No. 14- Sustainable
Development Report (Trial)
GRI 306-1: Waste generation and signi?cantwaste-related impactsGRI 306-2: Management of signi?cant waste-relatedimpactsGRI 306-3: Waste generatedGRI 306-4: Waste diverted from disposalGRI 306-5: Waste directed to disposal
ReportingFramework
GRI Standards
Shanghai Stock Exchange SelfRegulatory Guidelines for ListedCompanies No. 14- Sustainable
Development Report (Trial)
Pollution Control
CircularEconomy
BiodiversityConservation
Strictly adhereto the qualitystandard
Chain DriveGreen Future
Chain DriveGreen FutureAssist in the develop-ment of the industry
Employee Rightsand Bene?ts
EmployeeGrowth andDevelopment
Employee Healthand Safety
Adhere toinnovation driven
Provide high-qualityservice
Article 46
Article 50
Article 50
Article 50
GRI 101-2: Management of impacts on biodiversityGRI 101-4: Determine the impact on biodiversityGRI 101-5: Sites with impacts on biodiversityGRI 101-7: Changes in biodiversity statusProduct: Quality ?rst, win-win cooperation
Partner: People-Oriented and shared prosperity
GRI 416-1: Assessment of the health and safetyimpacts of product and service categoriesGRI 416-2: Incidents of non-compliance concerning thehealth and safety impacts of products and servicesGRI 417-1: Requirements for product and serviceinformation and labeling
GRI 204-1: Proportion of spending on local suppliersGRI 308-1: New suppliers that were screened usingenvironmental criteria
GRI 308-2: Negative environmental impacts in thesupply chain and actions takenGRI 414-1: New suppliers that were screened usingsocial criteriaGRI 414-2: Negative social impacts in the supply chainand actions taken
GRI 2-7: EmployeesGRI 2-8: Workers who are not employeesGRI 2-23: Policy commitmentsGRI 2-30: Collective bargaining agreementsGRI 401-1: New employee hires and employeeturnoverGRI 401-2: Bene?ts provided to full-time employees thatare not provided to temporary or part-time employeesGRI 405-1: Diversity of governance bodies andemployeesGRI 405-2: Ratio of basic salary and remuneration ofwomen to menGRI 406-1: Incidents of discrimination and correctiveactions takenGRI 404-1: Average hours of training per year peremployeeGRI 404-2: Programs for upgrading employee skillsand transition assistance programsGRI 404-3: Percentage of employees receiving regularperformance and career development reviewsGRI 403-1: Occupational health and safety managementsystemGRI 403-2: Hazard identi?cation, risk assessment, andincident investigationGRI 403-5: Worker training on occupational health andsafety
ScanFill Out The Reader Feedback Form
ReportingFramework
GRI Standards
Shanghai Stock Exchange SelfRegulatory Guidelines for ListedCompanies No. 14- Sustainable
Development Report (Trial)
Article 39 Article 40
Article 48Article 55Article 56
Article 6
Thank you for reading the 'Xianhe Group 2024Sustainable Development Report'. In order to provideyou and other stakeholders with more valuableinformation, enhance our company's sustainabledevelopment management level and future ESGcommunication quality, we sincerely welcome youropinions and suggestions on the report.
Risk ManagementKey Performance TableIndex Of IndicatorsFeedback Form
Feedback FormEmployee Healthand Safety
Philanthropy andSocial Contribution
CorporateGovernance
CompliantOperationBusinessEthics
GRI 403-6: Promotion of worker healthGRI 403-7: Prevention and mitigation of occupational healthand safety impacts directly linked by business relationshipsGRI 403-8: Workers covered by an occupational healthand safety management systemGRI 403-9: Work-related injuriesGRI 403-10: Work-related ill healthGRI 203-2: Signi?cant indirect economic impactsGovernance: Practical and diligent actions, building a solid foundation
GRI 2-9: Governance structure and compositionGRI 2-11: Chair of the highest governance bodyGRI 2-14: Role of the highest governance body in sustain-ability reportingGRI 2-16: Communication of critical concernsGRI 405-1: Diversity of governance bodies andemployeesGRI 205-1: Operations assessed for risks related tocorruptionGRI 205-2: Communication and training aboutanti-corruption policies and proceduresGRI 205-3: Con?rmed incidents of corruption andactions takenGRI 206-1: Legal actions for anti-competitivebehavior, anti-trust, and monopoly practices
120119INDEX OF INDICATORSXIANHE CO., LTD 2024 Sustainability Report