Foreword

Shanxi Dongchang Industrial Co., Ltd.'s 2024 Social Responsibility Report provides a comprehensive account of the company's performance in areas such as tax payment, stable employment, social stability, environmental protection, poverty alleviation, and public welfare. The company is eager to share its social responsibility practices with investors, employees, customers, and other stakeholders, and aims to progress and grow together.

In recent years, since Yuanping Coal Machinery Manufacturing Enterprises became a specialized town for coal machinery in Xinzhou in 2022, various coal machinery enterprises have fully leveraged the role of private enterprises in various aspects, closely adhering to national policies and the spirit of relevant higher-level departments. Shanxi Dongchang Industrial Co., Ltd. has taken the lead in the industry, actively acting as a vanguard of economic construction and a responsible member of society. In 2024, the company's fully automatic roller production line went into operation, producing high-quality products with some indicators exceeding industry standards. Following the operation of the company's Taiyuan Digital R&D Center, relying on the scientific and technological teams from Taiyuan University of Technology and Shanxi University of Engineering and Technology, it will undoubtedly accelerate Shanxi Dongchang's intelligent and digital upgrade and high-quality development process. In the final year of the 14th Five-Year Plan, we will make new contributions to building a provincial-level characteristic specialized town!

I. Overview

Company Profile

Shanxi Dongchang Industrial Co., Ltd. was established in September 2007. It covers an area of 120 mu (approximately 8 hectares), with a registered capital of 108 million yuan and currently employs 263 people. Its main business involves various types of belt conveyors, tubular belt conveyors, rollers, and idlers. The company has always focused on the R&D, design, and manufacturing of continuous conveying equipment in the coal machinery equipment industry and is one of the leading enterprises in the continuous conveying equipment belt conveyor field in Shanxi Province. The industrial chain mainly focuses on energy-related mining and coal enterprises. Products are mainly sold in Shanxi, Shaanxi, Inner Mongolia, Ningxia, and Tianjin. The company has an R&D center, technology department, sales department, production department, quality inspection department, safety and environmental protection department, finance department, information department, and general affairs department. The production workshops mainly include the riveting and welding workshop, metalworking workshop, idler workshop, final assembly workshop, and painting workshop. In 2019, the company was recognized by the Shanxi Provincial Department of Science and Technology as a demonstration enterprise for the transformation of scientific and technological achievements. From 2014 to 2023, it was continuously rated as a high-tech enterprise. In 2020, it was awarded the title of "Small Giant" Enterprise in Shanxi Province specializing in special and new products. In the same year, it was awarded the title of National Key "Small Giant" Enterprise by the Ministry of Industry and Information Technology. The company's "Shanxi Provincial Green Conveying and Intelligent Information Engineering" technology center has been awarded the provincial-level technology center. In 2022, the company cooperated with Taiyuan University of Technology to establish the "Provincial Technological Innovation Center for Intelligent Coal Storage and Transportation Equipment and Systems", which was rated as a provincial-level innovation center. In the same year, the company was also awarded the title of "Intelligent Manufacturing Demonstration Enterprise" by the Provincial Department of Industry and Information Technology. The company has obtained the ISO90002015 Quality Management System, ISO14000 Environmental Management System, and ISO45001 Occupational Health and Safety Management System certifications.

The company has been dedicated to the R&D and production of belt conveyors in the coal machinery equipment field for over 20 years. To promote the intelligent upgrading and transformation of its main belt conveyor products and ensure production quality and efficiency, Dongchang Company introduced German intelligent ring seam welding technology for rollers, ensuring that the roller welds do not crack or break the shaft, thereby increasing the service life of the conveyor belt. The company's maximum roller production capacity reaches a diameter of 2 meters, with a service life of over ten years. The company has also purchased more than ten sets of intelligent and advanced equipment, including Japanese Hanchuan robot welding equipment, CNC boring machines, CNC horizontal lathes, shot blasting machines, laser cutting machines, plasma cutting machines, and CNC roll bending machines, to ensure product welding quality and efficiency. The company has also introduced a Japanese JRC professionally designed intelligent idler production line. The entire production line includes idler shaft and bearing housing processing equipment, pipe body processing, welding, assembly lines, as well as painting and drying lines. It features a high degree of automation, superior processing precision, stable product quality, and enables continuous and efficient production. This idler shaft processing production line incorporates a Japanese CNC machining center, greatly improving product precision and coaxiality.

Meticulous creation of technology and service brands is the long-term development philosophy of Shanxi Dongchang Company. While providing customers with high-quality, environmentally friendly, and high-performance services, it also makes Shanxi Dongchang Company more mature, stronger, and more confident, giving every company and friend who cooperates with the company more peace of mind. "Pioneering innovation, pursuing excellence" is the constant pursuit of Shanxi Dongchang. We sincerely look forward to cooperating with new and old customers to create a better future!

II. Driving Factors for Social Responsibility

With the development and progress of society, since its registration in 2007, the company no longer solely pursues economic benefits but focuses on fulfilling its social responsibilities, showing gratitude to the Party and the government, and giving back to society. This not only helps to improve the company's reputation and image but also promotes the company's sustainable development.

1. Enhancing Corporate Reputation and Image

Fulfilling corporate social responsibility can enhance a company's reputation and image, attracting more consumers and investors. When a company actively participates in social welfare activities, cares about employee welfare, and pays attention to environmental protection, it will establish a positive image in the public's mind. A good corporate image helps to increase consumers' willingness to buy and investors' confidence in investment, thereby improving the company's market competitiveness.

2. Promoting Sustainable Development

Fulfilling corporate social responsibility helps promote sustainable development. On the one hand, a company's focus on environmental protection and reduction of energy consumption and pollution during production is conducive to the effective use of resources and ecological protection, creating a good external environment for the company's long-term development. On the other hand, focusing on employee welfare and improving employee benefits helps enhance employee morale and creativity, thus improving the company's production efficiency and competitiveness.

3. Meeting Legal and Regulatory Requirements

Fulfilling corporate social responsibility is also about avoiding legal risks and meeting legal and regulatory requirements. The Chinese government has clear regulations and requirements for companies' fulfillment of social responsibilities. If companies fail to fulfill their social responsibilities, they may face legal risks such as fines and suspension of business. Therefore, for compliant operation, companies must fulfill their social responsibilities.

4. Fulfilling Moral Obligations

As a member of society, enterprises have an obligation to care about social issues, care for vulnerable groups, and actively participate in social welfare activities. This is not only a reflection of corporate moral responsibility but also a specific action for enterprises to practice the core socialist values. Fulfilling moral obligations helps to establish a good corporate image and win social respect and recognition.

5. Achieving Long-Term Corporate Development

Fulfilling corporate social responsibility helps achieve long-term development. A socially responsible company can establish good cooperative relationships with all parties, creating favorable conditions for its long-term development. At the same time, fulfilling corporate social responsibility also helps cultivate the company's core competitiveness and provide impetus for its sustained development.

In summary, the driving factors for corporate social responsibility include enhancing corporate reputation and image, promoting sustainable development, meeting legal and regulatory requirements, fulfilling moral obligations, and achieving long-term development. In the context of the new era, companies should actively fulfill their social responsibilities and contribute to the harmonious development of the economy and society.

III. Corporate Responsibility Measures

1. The company abides by national laws, regulations, and industry codes of conduct for belt conveyors. It is a member unit of the Belt Conveyor Branch of the China Heavy Industry Machinery Association, a member unit of the China Coal Machinery Industry Association, and the vice chairman unit of the Shanxi Province Specialized and New Enterprise Federation.

The company has a sound system of legalized enterprise management, integrating the concept of the rule of law into institutional development. It has formulated company regulations and rules, making them the code of conduct for employees, and established standardized workflows. The company combines the rule of law in enterprise management with production and operation, bringing all aspects of the enterprise's behavior under standardized and legalized management. The company has established a party and labor department, and under the leadership of the Yúanpíng Municipal Committee of the Communist Party of China and the municipal federation of trade unions, it carries out business and production activities, as well as employee skill improvement, training, and various employee cultural and sports activities. The company is a model unit for clean governance in Yúanpíng. Party building guides the healthy development of the enterprise, guides decision-making, and rich cultural activities unite employees and strengthen ties with the masses, playing a positive role and further strengthening the company's confidence in listening to and following the party from top to bottom. The company strengthens the dissemination of corporate culture, guiding and improving the understanding, recognition, and acceptance of the corporate spirit, business philosophy, and values among all employees, and fostering a good sense of self-discipline.

2. In its business operations, the enterprise continuously improves its scientific decision-making level. It has established a long-term cooperative relationship with Taiyuan University of Science and Technology, established a provincial-level scientific and technological research and development center and the Gāo Yǒuhóng Innovation Studio. Guided by science and technology, it also strengthens risk control and improves its management capabilities, achieving stable development.

Based on years of management experience, the company has improved its system of rules and regulations, implemented a co-signing management mechanism, and hired legal counsel to standardize the contract signing process, effectively and maximally avoiding various risks.

3. The company always places technological innovation at the core of its development, integrating it into all aspects of its business management. It continuously promotes innovation in products, services, technology, and systems, breaking through development bottlenecks and achieving high-quality development. The company's investment in research and development has increased year by year: 6.99 million yuan in 2021, 8.09 million yuan in 2022, 13.91 million yuan in 2023, and 16.15 million yuan in 2024. The company has an enterprise technology center and the Gāo Yǒuhóng Innovation Laboratory as its main innovation platforms. Increased innovation investment has enhanced innovation capabilities, powerfully promoting innovation in products, processes, services, management, and business philosophy.

The upgrading and breakthroughs in key areas such as product industrialization upgrading, advanced equipment updates, and digital applications have promoted the company's development.

4. The company establishes and implements self-regulatory principles, systems, and behaviors in its production, operation, management, and market operations in accordance with national laws, market rules, and business ethics. Operating with integrity, the company has established a code of conduct for integrity, regulating business activities and employee conduct. Based on integrity, with product quality and culture as its core, the company firmly establishes brand awareness, develops brands, increases product value-added, builds brand recognition and reputation, and gains a competitive advantage in the market.

5. The company actively fulfills its tax obligations, consciously and honestly paying taxes, and legally, honestly, promptly, and fully paying all taxes as stipulated by the state. From 2021 to 2023, a total of 26.26 million yuan in various taxes and fees was paid. The company currently has 263 employees, including technical personnel absorbed from bankrupt enterprises in Xínzhōu and Yúanpíng, solving the employment problems of laid-off state-owned enterprise workers and maintaining social stability. The company values employee income, placing people first, providing holiday benefits, labor protection supplies, and summer heatstroke prevention supplies. Employee wages are paid on time without arrears. A large proportion of employees in ordinary positions come from the surrounding rural areas. Through pre-job and on-the-job training, the company provides them with opportunities for long-term, stable employment. The company holds more than 20 training sessions each year, inviting professors from universities and vocational schools to provide guidance and training, improving workers' labor skills. In recent years, the company has paid special attention to vulnerable groups, providing employment to over 40 people with disabilities.

6. While carrying out its production and operation activities, the company remains true to its original aspiration, cares about society, and actively participates in public welfare and charitable activities such as disaster relief, orphan care, and assistance to the elderly and disabled. Disaster relief, orphan care, assistance to the elderly and disabled, and other public welfare and charitable donations have spread warmth to numerous areas. In 2022, it donated 100,000 yuan to Fàn tíng Middle School to improve the teachers' and students' canteen; it also donated 100,000 yuan and 60,000 yuan worth of disaster relief materials to Xínzhōu during the epidemic, 80,000 yuan to Yúanpíng for epidemic prevention, and 300,000 yuan to the Yúanpíng Fangcang Hospital. In 2023, in the "Ten Thousand Enterprises Helping Ten Thousand Villages" activity, it donated a corn dryer worth about 600,000 yuan to Yángōu Township in Yúanpíng. During the Spring Festival of 2023, it provided 12,000 yuan worth of flour, rice, and cooking oil to 40 elderly party members and families in need near the company. The company optimized and adjusted positions in the warehouse, gatehouse, and statistics departments, providing employment for over 30 people with disabilities. During the Lantern Festival of 2024, it created a 20-meter-long lantern display worth more than 70,000 yuan in the town square, adding a festive atmosphere for citizens. In April 2024, it sponsored 50,000 yuan for the 14th Yúanpíng City Poetry and Pear Blossom Art Festival, "Pear Blossom as a Matchmaker, Wrestlers Unite the World" event.

IV. Ecological Environmental Construction

The company, in accordance with international and national environmental laws and standards, uses planning, organization, coordination, control, and supervision methods, combined with the company's actual situation, to establish an environmental management system and related systems to ensure the effective and normalized implementation of the company's environmental protection work. The company has passed the national ISO14000 environmental management system certification and invested in the construction of a painting workshop and a fully automatic roller painting production line. All employees continuously improve their environmental awareness. A safety and environmental protection department has been established with dedicated personnel responsible for safety production and environmental protection. The company's production workshops and office buildings all use air-source heat pumps for green and environmentally friendly heating, and solar photovoltaic power generation has been installed on the roofs of the workshops. The company plans to gradually invest in building a green factory. From 2021 to 2023, investments in environmental protection and energy saving totaled over 8.5 million yuan, including 2.7433 million yuan for 1000KW photovoltaic power generation, 1.0179 million yuan for an automatic painting line, 0.5238 million yuan for an environmentally friendly painting system, 1.1576 million yuan for air source units, and other daily environmental protection.

V. Striving to Be an Industry Leader

As a traditional industry, the coal machinery manufacturing industry has achieved ISO9000 quality management system certification. The company strictly follows industry standards and regulations, actively supporting and following the requirements of the China Heavy Machinery Association, the Belt Conveyor Association, the Specialized and New Enterprise Federation, and the Yúanpíng Federation of Industry and Commerce. It was among the first in the industry to launch an advanced fully automatic intelligent manufacturing production line for rollers, completing the two-integration process. The operational information system has promoted the company's digital transformation. Every year, the company participates in a series of activities organized by industry associations and chambers of commerce. In the process of Tai-Xīn integrated economic construction and the construction of a provincial-level coal machinery professional town, the company took the lead, investing nearly 40 million yuan in an intelligent automated roller production line and a shaft CNC machining center to improve production efficiency and product quality. Under the leadership of the science and technology and industry and information technology departments of Xínzhōu City, the company carries forward the spirit of craftsmanship in the coal machinery manufacturing industry, pursuing product excellence. While carrying out production and operation activities, the company continues to pay taxes, maintain employment, maintain social stability, protect the ecological environment, provide poverty alleviation and relief, and participate in public welfare undertakings, making new contributions to the country and society!

In this new era and with new opportunities, Shanxi Dōngchāng Industrial Co., Ltd. will continue to increase investment in technological innovation, introduce more advanced intelligent equipment, pursue green, low-carbon, high-quality development, serve customers with high-quality products, further expand market share, contribute to the economic development of Yúanpíng, and strive to build a provincial-level coal machinery professional town!