Registered Address：Beicun Village Dongwu Town Yinzhou District
Ningbo City Zhejiang Province China Riyue Heavy Industry Co. Ltd.Tel.: 86-574-55007007
Fax: 86-574-55007008 Environmental Social and
Website: www.riyuehi.com
Governance (ESG) ReportRiyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
About this Report
This report issued by Riyue Heavy Industry Co. Ltd. represents our Environmental Social and Governance (ESG) Report to the
society. It encompasses all stakeholders of Riyue and adheres to the principles of objectivity standardization and transparency. The
report truthfully discloses Riyue's responsibility practices towards shareholders customers partners employees and other key
stakeholders in along with the Company's efforts in the ESG domain aiming to meet stakeholders' expectations and better
fulfill our social responsibilities in the future.Reporting Period Data Source
This is an annual report covering the period from January to December unless otherwise specified. To enhance the Unless otherwise indicated all information and data referenced in this report is based on the statistical reports and relevant
comparability and completeness of this report certain data and content have been appropriately extended beyond the reporting documents of the Company as well as the ESG information on the basis of statistics and audit by the Company. Unless otherwise
period. indicated all monetary amounts are listed in RMB for this report.Assurance of Reliability
Reporting Scope
Riyue guarantees that this report is free from false records misleading representations or material omissions and the Company is
Unless otherwise specified the report includes information of Riyue Heavy Industry Co. Ltd. and its wholly-owned and holding responsible for the completeness accuracy clarity balance and comparability of its content.companies in the ESG domain with an information boundary consistent with the Company's annual report.Access to the Report
References
You can download its electronic version and acquire more information on corporate social responsibility from the official website of
This Report is prepared in accordance with the requirements of the Guidelines No. of Shanghai Stock Exchange for Self-regulation Shanghai Stock Exchange (www.sse.com.cn) and the official website of Riyue Heavy Industry Co. Ltd. (www.riyuehi.com). For any
of Listed Companies — Standardized Operation the Guidelines No. of Shanghai Stock Exchange for Self-regulation of Listed further inquiries or suggestions on this report and the Company’s ESG work please contact us via:
Companies — Sustainability Reports (Trial) and the GRI Standards issued by the Global Sustainability Standards Board (GSSB) and Website: www.riyuehi.com
is based on the Company's specific practices in fulfilling social responsibilities. Address: Board Office Riyue Heavy Industry Co. Ltd. th Floor Riyuexingzuo Building No. Tianzhi Lane Shounan Subdistrict
Yinzhou District Ningbo Zhejiang China
Postal Code:
Tel.: -
Email: stock@riyuehi.com
01 02Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
About this Report --------------------------------ation
Message from Chairman ----------------------------on of
Future Together Prosperity
About Riyue ---------------------------------------- 07
ESG Management ------------------------------------- 20
Innovation-Driven Development ---------------------- 61
Valuing Human Resources ---------------------------- 64
Strengthening Quality Management ------------------- 67
Green Quality Enhancement
Low-carbon Innovation Consolidating Supply Chain M-- 68
for Sustainability Spreading Social Warmth---------- 58
Key Performance Indicators------------------- 69
Company Names and Abbreviations---------76
Environmental Impact Management -------------------- 25
Indicators Index-----------------------------------76
Strengthening Resource Management ------------------ 29
Questionnaire------------------------------------- 78
Combating Climate Change ---------------------------3 2
CONTENTSRiyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Message from Chairman
With trust across mountains and seas we walk the great path togeth-
er. As the tide of the times surges toward the deep waters of the "Dual
Carbon" strategy and as global industrial chains redefine value amid
the green transformation we are guided by the ESG philosophy
steadily advancing toward high-quality development.We are keenly aware that the green transition of industrial civilization is not a multiple-choice question but a mandatory one. Modern corporate governance is the ballast stone for enduring success. With Party building as the compass we have
Riyue regards low-carbon transformation as the lifeline of the enterprise leveraging its matrix of National Green Factories to established a governance structure with clear responsibilities and effective checks and balances embedding compliance
drive ecological reform across the entire industrial chain. From optimizing the energy structure to innovating production awareness into every level of decision-making. By leveraging digital tools to build a transparent governance system we have
processes from carbon management to circular economy practices we are sketching a green growth curve on the map of the made information disclosure a bridge of trust with the capital market; through a multi-layered risk prevention and control
traditional foundry industry with the brush of intelligent manufacturing. In the face of the century-long challenge of climate matrix we have forged a solid defense for stable operations. This governance wisdom is not only a solemn commitment to
change we are not only committed practitioners of carbon reduction but also pathfinders in industry transformation embed- shareholder interests but also a profound interpretation of the role of a modern corporate citizen.ding green genes into the very fabric of our development.With the tide rising in the East China Sea a thousand sails compete; with favorable winds our industry is poised for renewal. At
Talent is the spark of innovation and society is the root system of enterprises. We regard employees as the most valuable asset the historic intersection of the global energy revolution and industrial transformation Riyue continues to navigate with ESG as
of the Company and we are building a growth ecosystem that covers the entire career life cycle enabling every dedicated its compass forging ahead on the high-quality development course of green intelligent manufacturing. We firmly believe that
individual to realize a leap in value amidst the wave of intelligent manufacturing. Up and down the industrial chain we promote only by integrating corporate destiny into the grand journey of human sustainable development can we write an enduring
sustainable development by fostering responsible procurement joining forces with over 2000 partners to build a shared chapter for "Made in China" in the torrents of our time.ecosystem. Meanwhile in broader communities the sparks of joint community building and public science education are
converging into a torch lighting the way to the future. This sense of responsibility is both a firm commitment to our original Chairman of Riyue Heavy Industry Co. Ltd. Fu Mingkang
aspiration of serving the nation through industry and a practical embodiment of our mission to promote common prosperity.
05 06Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
About Riyue Energy Industry Solutions
Company Profile
Riyue Heavy Industry Co. Ltd. was established in December 2007 originally founded as Ningbo Yinzhou District Tinplate Factory in
1984. Since its inception the Company has been dedicated to the research development production and sales of large heavy
industry equipment castings with its main products being large wind turbine castings and core castings for injection molding
machines. In December 2016 the Company went successfully listed on the Shanghai Stock Exchange.The Company's products include wind turbine castings plastic machinery castings diesel engine castings and machining center
castings which are used in various fields such as energy equipment general machinery and marine engineering. While focusing on Housing (Free) Casing (Free) Main Casing Driving Casing Housing (Middle) Housing (Lower)
expanding and strengthening its two main product lines of wind turbine castings and plastic machinery castings the Company has
also made breakthroughs in nuclear power equipment applications and alloy steel research through its technology in ductile iron
with thick cross-sections. It has been actively promoting a multi-field layout and formed a unique competitive advantage in the
heavy industry equipment sector. Riyue Holdings is committed to becoming a leading supplier of basic materials for the global
high-end equipment industry and high-end equipment components. Its production operations are characterized by "small batches
multiple varieties and high flexibility" offering tailor-made solutions that provide high-end high-quality castings for industries such Housing (Upper) Housing (Free) Mainshaftsleeve 6X Planetcarrier 6X End Cover 6X Housing (Rear)
as energy marine engineering general machinery and high-speed rail vehicles.The Company strives to build a "low-carbon environmentally friendly and harmonious" high-tech heavy industry enterprise aiming
to be a leader in promoting the widespread use of clean and renewable energy and making a crucial contribution to the green and
sustainable development of humanity.Marine Heavy Industry Solutions 6X Torque Arm 6X Planetcarrier Housing (Middle) Model-x Main QB Hub 20 Hub
Structure
MK3E Base 12MW Base V20 Baes Frame 9MW Main Shaft YC85 Main Shaft YC85 Main Bearing
Housing
Diesel engine Block Gas outlet casing Bearing Casing Air inlet Casing
V20 Main Bearing 6050 Main frame 6X Hub V12 Baes Frame
Cylinder (Free) Crankshaft Housing
Casing (Upper) for Casing (Lower) for
Ultra supercritical Ultra supercritical
working condition working condition
Strut Planetary Carrier Rotor locking flange Main frame
07 08Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
General Machinery Industry Solutions
Casting Nose Drive Spindle TOOL EYE (Casting) First Cass Carrier Drive housing Impeller
(Casting)
Working Bench Lathe Bed Horizontal Lathe Bed Column Cross Beam Convertor
Box body Support Turntable
Ram
Housing Body Steellngot Back room Working plate for
Air Plane
Housing Grinding Table Mill Head Roller Wheel Flange Locking ring
(Feed & Discharge)
Slideblock MotorShell
High-speed Rail and Rolling Stock Industry Solutions
Fix Platen Moving Platen Oil Cylinder Platens Tationary
Injection
PDM385 Housing PDM385 Housing PDM490 Housing PDM490 Housing
Platen Stationary Long Cylinder Stamping Cylinder (Upper) (Lower) (Upper) (Lower)
Injectiorn
09 10Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Strategy and Culture Organizational Structure
Institute of Technology Research
Company Build the globally famous heavy industry enterprise of high technology low carbon Institute of Process Research
Vision environmental protection and harmony.Quality & Safety Center
Lead the widespread use of clean and renewable energy to Excellence Operation Center
Company make a crucial contribution to the green and sustainable
Mission Sales Companydevelopment of humanity.Planning & Coordination Center
Digitalization Center
Core Value Health Loyalty Creativity and Quality.Procurement Center
Financial Management Center
Safety Innovation Efficiency Cooperation Human Resources Center
Company Spirit Striving for Excellence. Office
Strategy and Riyue Heavy
Culture Collaboratively build a community of shared Industry
Ningbo Rixing Foundry Co. Ltd.Employee
careers enabling employees to spread the seeds Co. Ltd Ningbo Essence Metal Machinery Co. Ltd.Philosophy
of love and reap happiness. Ningbo Yuexing Metal Machinery Co. Ltd.Ningbo Riyue Nuclear Equipment Manufacturing Co. Ltd.Business All for customers all from innovation. Ningbo Mingling Technology Co. Ltd.Philosophy
Ningbo Riyue Essence Precision Manufacturing Co. Ltd.Ningbo Riyi Intelligent Equipment Co. Ltd.Safety Safety first prevention foremost comprehensively governed. Riyue Heavy Industry (Gansu) Co. Ltd.Philosophy
Xiangshan Riyue Zhixin Testing Technology Co. Ltd.Ningbo Riyue Rixing New Energy Technology Co. Ltd.Benxi Liaocai Metal Material Co. Ltd.Subei Zhexinneng Wind Power Co. Ltd.
11 12Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
History
The Company relies on its advantages in technology products scale quality and brand to establish a Annual output reached 100000 metric tons; honored as Safety Production Standardization
long-term stable customer base and has secured a solid market position in the industry of castings for Enterprise in Zhejiang Province; and passed ISO14001 Environmental Management System Certifi-
large heavy industry equipment. cation.Ningbo Rixing Foundry Co. Ltd. a sub-
Ningbo Yin County Tinplate Factory
sidiary invested and established by the was founded (The former name of Company was formally put into pro-
Riyue Heavy Industry Co. Ltd.). duction.Expanded the clay sand casting work- The National Machinery Industry Advanced Collective; the Safety Quality Standardization (Coun-
shop to achieve an annual production try) Level 2 Enterprise; and established the physical and chemical testing center at the provincial
capacity of over 10000 metric tons. level.Built a new resin sand casting workshop
with an annual production capacity of Listed as a post-doctoral research workstation (pilot) and elected as a
over 50000 metric tons. Vice President member of China Foundry Association.Constructed the first phase of the tooling and mold workshop covering over 8600 m2. Certified by BV.The Safety Production Standardization (Country) Level 1 Enter-
Honored as Ningbo High-tech Enterprise and established the Provincial Enterprise Technol- prise; China Green Foundry Demonstration Enterprise; The Green ogy Center. and Low-Carbon Economic Model Enterprise in the 3rd competi-
tion of Zhejiang Province; and passed OHSMS18001.Honored as a Provincial High-tech Enterprise; "Heavy section ductile iron castings" included Passed GL ABS LR and other China Classification Society (CCS) certifications and in the National Torch Plan Project; and identified as a National-level High-tech Enterprise. certified as the national testing center.
13 14Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Recognized as a Key High-tech Enterprise of National Torch Plan.Successfully listed in A shares of Shanghai Stock Exchange (Stock Code: 603218).Approved as the "National Enterprise Technology
Center" and won the honor of "Green Enterprise" of the Ministry of Industry and Information Technology
(MIIT).Successfully issued convertible corporate bonds raising RMB 1.2 billion and invested to establish a subsidiary Riyue Nuclear Equipment.Invested to establish a subsidiary Precision Manufacturing.The hundred-metric ton ductile iron spent fuel transport
container was successfully developed which is unprecedented
in China and passed the "Domestic First Set" approval. Subsid-
iaries were established by the Company including Gansu
Riyue Riyi Intelligent and Zhixin Testing.The world's largest on-shore wind turbine gearbox 11 MW casting was successfully developed and
mass-produced. The Company invested to establish a subsidiary Jiuquan Zhexinneng. The project of key components for wind turbine machine in Gansu Riyue was officially put into operation with
an annual output of 200000 metric tons (100000 metric tons for Phase 1).Invested in the establishment of Benxi Liaocai Metal Materials
Co. Ltd. marking the Company's expansion into new fields cultivation of new profit growth drivers and further improve-
ment of the industrial chain.
15 16R日iy月ue重 He工av股y In份du有str限y C公o.司 Ltd. Environmen年tal度 So环cia境l a、nd社 Go会ver和na公nce司 (E治SG理) Re报po告rt
Honors in 2024
Riyue Riyue Riyue Riyue
2024 Top 100 Comprehensive
Corporate Governance (G) Pioneer Award The Second CRHC Cup · ESG Golden Bull Award Best Strategic Supplier Enterprises in Ningbo
Cailian Press China Securities Journal FCS Group Ningbo Enterprises Federation Ningbo
Entrepreneurs Association
Ningbo Federation of Industrial Economics
Riyue Riyue Riyue Riyue
Best Innovation Practice Great Contribution Award 2024 Top 100 Competitive Enterprises 2024 Top 100 Manufacturing Enterprises in Ningbo
in Ningbo
2024 Annual Listed Company Investor Yinzhou District Economic Influencer List Ningbo Enterprises Federation Ningbo
Relations Ranking Ningbo Enterprises Federation Ningbo Entrepreneurs Association
Entrepreneurs Association Ningbo Federation of Industrial Economics
Ningbo Federation of Industrial Economics
Riyue
Riyue Riyue Riyue
Outstanding Member Enterprise Golden Phoenix Award Enterprise on the Positive Lists for Environmental Model Collective of the Year 2024
Supervision and Law Enforcement in Ningbo
Ningbo Yinzhou High-tech and Intellectual Dongwu Town Committee of the CPC Dongwu Town People’s Government
Property Association Dongwu Town People’s Government Ningbo Municipal Bureau of Ecology
and Environment
17 18Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
ESG Management
Rixing Foundry Rixing Foundry
The Company actively responds to the call of the times for sustainable development deeply implements
the ESG philosophy integrates ESG into all processes and aspects of operations and promotes
high-quality development across the board.ESG Management
The Company actively supports the national "Dual Carbon" goals has clearly defined its sustainable development strategy
Third-Level Enterprise of Workplace established a sustainability framework and is advancing ESG management system construction at all levels. The Company Low-Carbon Product Supplier Certificate
Safety Standardization (Machinery) actively builds a sustainable corporate culture shapes a responsible image that meets social expectations and integrates ESG
China Electronics Energy Saving
Technology Association Ministry of Emergency Management of the governance throughout the corporate strategy decision-making and operational processes creating a top-down ESG
People’s Republic of China
governance framework. By setting ESG strategic goals identifying ESG-related risks disclosing information and managing and
assessing ESG performance the Company continuously enhances its environmental social and governance capabilities
Rixing Foundry
optimizes its ESG governance structure and vigorously promotes the efficient implementation of ESG initiatives.Rixing Foundry
Analysis on Material Issues
To better respond to the expectations and demands from stakeholders the Company regularly employs methods such as
benchmarking against other companies and internal interviews to identify assess prioritize and confirm ESG issues which
help us find out how much of a concern the issue is to stakeholders and understand their expectations of the Company’s ESG
Top 10 Innovation Capabilities performance. In 2024 the Company's material issue determination process is as follows.Strategic Alliance Supplier
Xiangshan County Committee of the CPC Strategic Supplier
Xiangshan County People’s Government Circle of SANY Renewable Energy
Rixing Foundry Identify major trends pertinent to the Company through policy analysis industry research peer Issue
Identification comparison stakeholder communication and survey then identify the material issues based on the
Rixing Foundry national polices and key points of high concern in the capital market.Perform rational analysis of the results obtained from the questionnaires and give a final ranking for
Analysis of
materiality the material issues of stakeholders by fully considering the relevant national policies key points of
high concern in the capital market and peer performance.Gold Award for Comprehensive AA-Rated Zhejiang Province "Contract-Honoring
Industrial Contribution and Credit-Worthy" Enterprise
Xiangshan County Committee of the CPC Ningbo Administration for Market Regulation
Confirmation The management of the Company performs careful perusal and review of the results from the Xiangshan County People’s Government
by the analysis of material issues to finally establish key information to be disclosed in this report
Management objectives of future ESG management and specific implementation plans.
19 20Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
High Communication with Stakeholders
The Company actively performs social responsibilities pays great attention to the expectations and demands of stakeholders
Anti-commercial Bribery and Anti-corruption
Anti-unfair Competition engages in in-depth communication through various channels fully understands opinions and suggestions of governments
Water Utilization Energy Utilization and regulatory authorities shareholders partners communities and employees and specifically enhances the Company's ESG
Prevention and Control of Pollution Innovation-driven Development performance continually adjusting its sustainable development strategy and actions.Social Welfare Product Quality
Data Security Environment Management
ESG Management Supply Chain Security Stakeholders Expectations and Demands Communication and Feedback
Regulatory Compliance in Business Practices
Risk Prevention and Control
Customer Service ·Response to national strategies ·Implementing national policies
Government ·Serving regional economy ·Cooperating with locals
Impact and Regulatory ·Compliance operation ·Establishing and improving anti-corruption
Materiality Agencies governance system
Digital Transformation ·Observing business ethics
Three Meetings
·Improving corporate governance ·Enhancing operation management level
Information Disclosure
·Protecting Shareholders’ ·Promoting digital transformation
Employee Development
Combating Climate Change Shareholders Rights and Interests ·Investor research and exchangeEmployee Care
·Investor relations management ·Publishing periodic report
Investor Relations Management Employee Health and Safety and Investors
·Information disclosure interim announcement
Intellectual Property Protection
·Holding investor exchanges
Internal Control Management
·Dividends to shareholders
Circular Economy
Communication with Stakeholders
Relatively ·Guarantee of basic rights and ·Establishing fair promotion paths
High benefits ·Professional training and career development
Relatively High EmployeesFinancial Materiality High ·Individual development ·Employee satisfaction survey
·Employee benefits ·Implementing workplace safety
·Employee care ·Routine communication
Note: "Ecosystem and Biodiversity Protection" "Sci-Tech Ethics" "Fair Treatment of SMEs" and "Due Diligence" are disclosure issues
for specific entities and are not identified as material issues for the Company at this time; therefore relevant information has not yet
been disclosed. ·Product quality and safety ·Optimizing industrial chain layout
·Honesty and regulatory ·Improving product quality
Customers compliance in business ·Communication and Q&A dedicated to
practices certain project
·After-sales service ·Routine communication
·Customer service hotline
·Fair competition ·Fulfilling contract with integrity
·Integrity and mutual benefit ·Signing collaborative agreement
Partners ·Transparent procurement ·Improving supply chain management
·Observing business ethics
·Green and low-carbon ·Green transformation development
development ·Green technology innovation
Environment ·Protecting the ecological
environment
·Promoting community ·Community construction
Communities development ·Charity work
and Public ·Participating in public ·Volunteer service
welfare activities
21 22Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Green Quality Enhancement
Low-carbon Innovation for
Sustainability
The Company insists on balancing economic and social benefits adheres to a sustainable
development strategy drives green transformation through both operations and produc-
tion responds to the "Dual Carbon" policy goals proactively prevents and controls indus-
trial pollution through green technological upgrades advocates clean production and
promotes steady and sustainable development.
23 24Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Environmental Impact Management
Strategy
The Company continuously improves its environmental management system strengthens the founda- The Company fully implements the new development philosophy of innovation coordination green development openness
tion for environmental protection and empowers high-quality environmental protection efforts. and sharing continuously improves its environmental management mechanism enhances environmental risk prevention
capabilities and empowers pollution prevention and control resource conservation and greenhouse gas emission reduction
through system management striving for high-quality development.Environmental Management System Influence Risk and Opportunity Management
Governance The Company and its subsidiaries conduct annual environmental risk assessments and compile environmental factor identifi-
The Company attaches great importance to the environmental impact of its operations strictly complies with the Environ- cation lists. After approval processes environmental risk factors are confirmed to ensure comprehensive identification and
mental Protection Law of the People's Republic of China and the Law of the People's Republic of China on Environmental prevention. The Company has formulated the Emergency Plans for Environmental Incidents clarifying the responsibilities
Impact Assessment continuously improves the environmental management system defines its management structure and content and emergency response plan procedures for each functional department to effectively respond to environmental
systematically manages environmental impacts. incidents and ensure employee safety. The Company conducts annual emergency response drills to enhance employee emer-
gency response capabilities and strengthen inter-departmental coordination.Designated Management Department Responsibilities
Case
The Headquarters Quality & Safety Center with a Quality and EHS
The Company actively builds internal E HS systems at both Gansu Riyue A Subsidiary of the Company Conducted A Special Emergency
Management Section
the Company and subsidiary levels oversees EHS manage-
ment and the operation of special hazard controls ensuring Response Drill for Hazardous Chemical Leakage
that the environmental management system complies with
Subsidiary Plants Safety and Environmental Section the ISO 14001 series standards and that the production
environment meets stakeholder requirements . In October 2024 Gansu Riyue a subsidiary of the Company
carried out a liquid hazardous chemical leakage drill according
to its emergency response plan ensuring that the emergency
team correctly used protective equipment and improved the
timeliness and effectiveness of emergency rescue efforts.As of the end of 2024 the Company and three subsid-
iaries have obtained GB/T 24001 / ISO 14001 Environ-
ment Management Systems certification.The Company is attentive to the environmental impact on nearby residents. Upon receiving environmental complaints it
promptly undertakes acceptance investigation rectification and review to continuously improve environmental manage-
Riyue Environmental M anagement Gansu Riyue Environ mental ment effectiveness.System Certificate Management System Certifica te
Indicators and Targets
In 2024 the Company and its subsidiaries did not experience any illegal or
irregular environmental violations. The Company was honored as an enter-
prise on the Positive Lists for Environmental Supervision and Law Enforce-
ment in Ningbo.Rixing Foundry Environmental Mingling Technology Environment al Enterprise on the Positive Lists for Environmental
Management System Certificate Management System Certificate Supervision and Law Enforcement in Ningbo
25 26Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Pollutant Emission Management Hazardous waste includes chemical waste liquids packaging of chemical reagents waste paint and related packaging. In
accordance with national laws and regulations the Company has established Hazardous Waste Storage Management Regula-
The Company complies with relevant laws and regulations and has formulated the Exhaust Gas Wastewater and Noise Con- tions clearly specifying storage requirements and maintaining a hazardous waste log to ensure unified hazardous waste man-
trol Procedures Waste Pollution Control Procedures and Environmental Protection Management System to ensure that agement. All hazardous waste is handled by certified institutions recognized by government environmental protection author-
pollutant emissions meet standards and reduce environmental and health impacts. ities.The Company is committed to pollutant reduction sets emission targets actively contributes to the development of a green
ecological environment and regularly conducts environmental monitoring to ensure compliant emissions. In 2024 100% of
the Company's pollutant emissions met standards.Wastewater
The Company has established an industrial wastewater treatment the Company generated metric tons of hazardous waste
station and a general treatment station. Wastewater is first treated Indicator Unit 2024
with a "physicochemical + biochemical" process at the industrial
Discharge of wastewater metric ton 83877.5
wastewater station then further treated at the general sewage Indicator Unit 2024
treatment station to achieve discharge compliance. To reduce Discharge of industrialwastewater metric ton 980.0
wastewater at the source the Company selects production pro- Hazardous waste generated metric ton 42527.2 Discharge of domestic
cesses and technologies with low water consumption and minimal wastewater metric ton 82897.5 Hazardous waste generation intensity (based on revenue) metric ton / RMB 1000000 0.4
or relatively mild environmental impacts.General waste generated metric ton 327.9
Exhaust Gas
The Company has formulated the Exhaust Gas Emission Control Procedures and supports it with exhaust gas pollution preven- General industrial solid waste generation intensity (based on revenue) metric ton / RMB 1000000 45.9
tion and control facilities to legally manage various exhaust gases generated during production including mixing molding
core-making melting casting shakeout sand reclamation and kitchen fumes. The Company ensures effective daily operation
and maintenance of pollution prevention and control facilities and commissions third-party testing annually to ensure exhaust Noise
gas emissions meet standards. In 2024 the Company generated 329703.3 kg of exhaust gas pollutants all of which were The Company strictly complies with the Emission Standard for Industrial Enterprises Noise at Boundary (GB12348-2008) Class
discharged in compliance. III standards actively implements noise control measures to ensure that day and night noise levels at the plant boundary do
not exceed limits thereby avoiding disruption to nearby residents.· Volatile gas collection and treatment devices are installed to reduce fugitive exhaust
gas emissions. Green Office
· The Company enhances the maintenance of organic exhaust gas treatment facilities
Exhaust Gas replaces activated carbon as required ensures normal operation of exhaust gas equip-
Pollution The Company actively promotes green office practices encourages employees to adopt environmentally friendly behaviors at
Treatment ment and minimizes exhaust gas emissions. work and in life and joins hands with employees to move toward a greener and more efficient future.· The Company adopts the "catalytic combustion + activated carbon treatment" process
to effectively treat paint booth and touch-up exhaust gases ensuring compliant emis-
sions from the painting process.Conserve paper The Company advocates for online office practices double-sided printing and copying of daily
documents and reusing discarded paper.Solid Waste
Conserve electricity The Company encourages employees to turn off electricity when leaving a room to reduce elec-
The Company has formulated the Solid Waste Pollution Control Procedures clarifying waste types disposal methods and trical hazards.management processes. Waste is classified labeled and tracked in accordance with national and local regulations to ensure The Company promotes rational and recycled water use encourages employees to turn off taps
full compliance throughout generation storage transport and disposal. Conserve water well after use and to report any issues such as burst pipes to relevant departments for prompt
General solid waste includes domestic waste dust melting slag used molding sand and iron filings. Domestic waste is collect- repair to prevent leaks.ed classified and stored by the Company at designated locations with unified labeling and is processed by certified recycling The Company actively advocates the resource-saving principle of "no discard nor abandon
stations authorized by government environmental protection authorities. The Company advocates recycling and reuse of gen- Conserve resources usable things" encourages employees to use "ink-saving printing" mode replace pen refills with
eral solid waste generated during production. water-based options reuse binder clips and paper clips and recycle used folders among others.
27 28Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Strengthening Resource Management Energy Management System
· Establish implement maintain and continuously improve the energy management system in accordance wit h
standards.The Company places great importance on energy and resource conservation. It has formulated the Energy · Assign relevant personnel under the authority of the management to jointly carry out energy management activities.Management
and Resource Management Procedures improved resource management strengthened the resource Representative · Report on energy performance and the performance of the energy management system; plan effective energy man-
management system and promoted the efficient use of water resources energy and material recycling agement activities.· Enhance employees' awareness of the energy policy and energy objectives.across the board injecting strong momentum into the Company's sustainable development. · Clearly define and communicate responsibilities and authorities related to energy management to effectively
promote energy management.· Establish criteria and methods to ensure effective control and operation of the energy management system.Water Utilization
· The primary responsible department is responsible for organizing all employees to implement and maintain the
· Promote the use of purified drinking water according to actual needs. Subsidiaries energy management system and urging all units to carry out work related to the energy management system accord-
The Company focuses on the · Cleansing operations are conducted with water-saving awareness while ing to specific requirements.conservation and efficient use of ensuring effectiveness.water resources. In 2024 the million · Regular inspections are conducted on the water supply system to ensure
Company's total water consump-
tion was metric that equipment is free of leaks and overflows.tons. · When abnormal water usage occurs the cause is investigated and correc-
tive measures are implemented within a specified time.Indicator Unit 2024
Total water consumption 10000 metric tons 135.26
Fresh water consumption 10000 metric tons 113.60
Recycled water consumption 10000 metric tons 21.66
Riyue Energy Management Rixing Foundry Energy Management
Proportion of recycled water consumption % 16.01 System Certificate System Certificate
Water consumption intensity (based on revenue) metric ton / RMB 1000000 806.89
Strategy
Upholding the energy policy of "low carbon and environmental protection clean circulation efficiency through conservation
Energy Utilization
and green casting" the Company promotes high-efficiency energy management practices to minimize energy consumption
Governance improve energy utilization and support sustainable enterprise development.The Company has formulated a series of energy management systems such as the Regulations on Resource and Energy Man-
Influence Risk and Opportunity Management
agement Energy Metering Management System and Regulations on Disciplinary Actions and Waste Penalties for Energy Use
clearly defining the requirements of the energy management system. As of the end of 2024 two of the Company’s subsidiaries The Company's main energy sources include outsourced diesel gasoline electricity and coke/coal. While ensuring normal
had obtained certification for the energy management system. production operations the Company conserves electricity ensures the safety and efficiency of power equipment investigates
and analyzes abnormal electricity usage and implements timely corrective measures. The Company follows established pro-
cedures for energy transportation use and installation maintenance and servicing of energy-related equipment. In the event
Energy Management System
of energy supply shortages relevant departments are notified in advance.· Formulate an energy policy.· Appoint a management representative and approve the establishment of the Energy Management Leading Group.· Provide the resources needed for the operation and improvement of the energy management system define the Indicators and Targets
scope and boundaries of the system and communicate the importance of energy-saving.Top Management · Incorporate energy performance considerations into long-term planning ensuring the establishment of energy
objectives targets and appropriate performance indicators.· Report energy management status to higher authorities and government departments in accordance with regulato- the Company continued its
ry requirements. energy conservation efforts metric tons of standard
· Conduct annual management reviews. consuming a total of coal equivalent.
29 30Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Indicator Unit 2024 Combating Climate Change
Total energy consumption TCE 375098.66
Fossil energy consumption (direct) TCE 292624.53
Non-fossil energy consumption (direct) TCE 1607.38 The Company is attentive to global climate change has established a system for identifying and assess-
ing climate risks strictly manages greenhouse gas emissions actively participates in the carbon trading
Outsourced electric power 10000 kWh 64980.51 market and formulates and implements effective climate change response strategies to ensure the
Company's steady development.Outsourced heating power GJ 29475.62
Materials and Circular Economy Governance
The Company strictly complies with laws and regulations such as the Energy Conservation Law of the People's Republic of
In material management the Company has established relevant procedures that clearly require paper and other materials to China and the Environmental Protection Law of the People's Republic of China promotes ecological civilization and sustain-
be transported and stored with quality assurance measures including moisture-proofing waterproofing and sun protection. able economic development actively builds a green manufacturing system and is committed to mitigating and combating
In terms of circular economy the Company actively promotes resource recovery reduction and reuse facilitating resource climate change. As of the end of 2024 the Company held four National Green Factory certifications.recycling throughout the production process. Meanwhile the Company actively uses waste steel and return materials in pro-
duction to improve the utilization rate of recycled resources. In 2024 approximately 180000 metric tons of scrap steel were
procured.Resource Reuse Measures Riyue Rixing Mingling Gansu Riyue
Foundry Technology
Smelting Slag Used as brick blanks or cement raw materials.Used Molding Waste Sand and Iron Filings Recycled and reused as raw materials.Strategy
The Company recognizes the potential impacts of climate change on business operations and prepares contingency plans for
possible climate-related risks. Meanwhile it actively implements national policies on "Dual Carbon" goals enhancing techno-
logical innovation and the implementation of energy-saving and emission reduction technologies.Climate-related Risks Countermeasures
1. Regularly identify environmental factors that m ay
1. Factory workshops office buildings impact the climate and strengthen control over these and equipment might be damaged to identified environmental factors.
Contingency cause asset loss and even employee 2. Focus on extreme weather alerts develop targeted
Risks: safety accidents. emergency plans conduct regular emergency drills and
Extreme 2. Facility damage service interruption or emphasize the routine storage of disaster prevention
major equipment damage may directly or
Physical Risks weather materials.indirectly sabotage the continuity of 3. Regularly inspect production equipment and facilities
business operations and economic for potential hazards upgrading and retrofitting as
interests. needed to enhance disaster protection levels.Chronic Risks: 1. Improving the R&D and application of carbon emis-Higher temperatures may result in the
Lasting sion reduction technologies and being equipped with need for additional cooling equipment heatwave more energy-efficient cooling technology and system.and maintenance costs increasing
drought etc. 2. Promoting green development to mitigate associated operational costs. climate change risks.
31 32Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
New policies and regulations on
Policies and greenhouse gas (GHG) emissions may
Staying on top of the changes in the regulations and Indicators and Targets
laws risks increase the Company's compliance
policies related to the climate and“ dual carbon” estab-
costs and related litigation or claims lishing a list of laws and regulations and adjusting inter-
may also increase in numbers. nal management measures in a timely manner to actively
The Company continues to advance toward achieving the "Dual Carbon" goals and contributes to mitigating climate change.In 2024 the Company's greenhouse gas emissions were as follows.Increasing environmental perfor- Continuously conducting energy-saving and carbon-re-
mance and production process ducing technology transformation and optimizing
Technology requirements and the acceleration of production processes and equipment in consideration of Indicator Unit 2024
Risks low-carbon transition necessitate the current level of technology. Installing fault prevention
costly technological innovations. facilities and carrying out regular maintenance of equip-
Transition Risks ment so as to facilitate the use of clean technologies. Total GHG emissions tCO
2e 1429335.93
Shifts in upstream and downstream Scientifically assess market conditions continuously
supply chains and customer prefer- monitor the price trends and supply and demand cha ng- Scope 1 emissions tCO2e 1077408.22Market risk s ences may intensify the focus on es in the product and raw material markets and conduct
green and low-carbon products. preliminary research. Scope 2 emissions tCO2e 351927.72
1. Being devoted to sustainable development actively
taking up social responsibilities reinforcing green
Poor performance in combating production maintaining green ecology and burnishing In 2024 Rixing Foundry obtained the Three-Star Product Carbon Label Evaluation Certificate and Authorization for Use of
Reputation risks climate change and sustainability the green image of the Company.giving rise to negative feedback from Carbon Label.2. Regularly publishing ESG reports of the Company and
associated stakeholders. disclosing information on the status of the Company's
energy saving and emission reduction objectives.Influence Risk and Opportunity Management
In response to chronic physical risks the Company has steadily conducted greenhouse gas accounting and actively participat-
ed in carbon trading striving to achieve the "Dual Carbon" goals. Benxi Liaocai a subsidiary of the Company calculated its
annual greenhouse gas emissions in accordance with the Guidelines for Enterprise Greenhouse Gas Emissions Accounting
and Reporting for Iron and Steel Production issued by the Ministry of Ecology and Environment. During the carbon trading
process Benxi Liaocai actively utilized CCER offsets according to its actual conditions. In 2024 it completed carbon compli-
ance for 1 million metric tons and used 50000 metric tons of CCER offsets effectively reducing carbon compliance costs. Rixing Foundry Three-Star Product Carbon Rixing Foundry Authorization for
In response to acute physical risks the Company actively addresses typhoons and other extreme weather events to ensure Label Evaluation Certificate Use of Carbon Label
asset and workplace safety and avoid disruptions to business continuity and economic interests.Case
Ensuring Workplace Safety
In July 2024 the Company actively participated in efforts to resist Typhoon Gaemi by conducting factory inspec-
tions and reinforcements to safeguard workplace safety.
33 34Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Driven by Innovation
Weaving the Future
Together
The Company upholds innovation-driven development strives to break through
technological barriers and enhance core competitiveness values human resources to
foster a harmonious workplace focuses on quality improvement to strengthen product
and service capabilities enhances supply chain management to drive high-quality
development across the industry chain and participates in community public welfare
activities to give back to society and create a blueprint for harmonious development.
35 36Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Strategy
Innovation-Driven Development The Company adheres to its mission of "becoming a leader in promoting the widespread use of clean and renewable energy and making key contributions to the green and sustainable development of humanity". Focusing on large ductile iron wind power
castings and leveraging its nuclear storage container technology the Company conducts in-depth research on the perfor-
mance of low-temperature ductile iron deepens the reform of its science and technology system increases investment in
With technological innovation as the engine the Company tackles cutting-edge technical challenges science and technology stimulates innovation vitality and contributes to the modernization digitalization and intelligent
builds an intellectual property protection system vigorously protects innovation achievements development of the industry.advances digital transformation reshapes operational processes improves efficiency and
decision-making and embarks on a new journey of high-quality development. Influence Risk and Opportunity Management
The Company strengthens its equipment foundation to provide solid hardware support for R&D and innovation. The Company
owns more than 140 sets of large and medium-sized production equipment including advanced resin sand casting production
R&D and Innovation Management lines cupola furnaces induction electric furnace melting equipment and large shot blasting machines heat treatment furnac-
es and other casting post-processing equipment. It also has over 70 sets of testing instruments and equipment except for the
Governance
advanced German-imported direct-reading spectrometers infrared carbon-sulfur analyzers mechanical property testing
The Company has established a set of systems including the Project Full-Process Management System Resource and Fund
machines a large horizontal microscope and an ultrasonic flaw detector providing a solid equipment foundation for research
Management System Innovation Incentive Mechanism 1+4 New Product Development Management System Project Initiation
and production.and Incentive System Single Innovation Project Reward Management System and 1+3+10 New Product Development Manage-
ment System which define management structures and responsibilities refine innovation management and incentive mecha- The Company continues to improve its innovation mechanisms clarifies the
nisms and continuously advance the Company's R&D and innovation initiatives. evaluation process and incentive system for innovation projects standardizes
the entire R&D and innovation process and fosters an innovative atmosphere.Innovation project incentives include team and individual rewards with bonus
R&D and Innovation Management Structure
distribution plans implemented upon approval.Institute of
Leads the direction of industry technological development and determines the Company's The Company deepens industry-academia-research cooperation and continu-Technology
long-term R&D strategy and key projects.Research ously transforms innovation achievements into social and economic benefits. As
R&D Center of the end of 2024 the Company has established three national-level R&D Riyue Testing Center Rixing Foundry Testing
Institute of Leads the design and development of new products and the upgrading of existing ones based CNAS Laboratory Center CNAS Laboratory
Process Research on market demand and customer feedback. platforms: the National Enterprise Technology Center the National Intelligent
Accreditation Certificate Accreditation Certificate
Casting Industry Innovation Center and the National Postdoctoral Research
Innovation Formulates the Company's innovation strategy and policies and approves the initiation and budgeting of major Workstation; two provincial-level R&D platforms: the Zhejiang Provincial
Management innovation projects. Supervises the execution progress and achievement transformation of innovation projects and
Committee coordinates cross-departmental innovation resource allocation. Enterprise Technology Center and the Zhejiang High-Tech Enterprise R&D
Center; and two municipal-level R&D platforms: the Ningbo Riyue Heavy Industry
Casting Engineering Technology Center and the Riyue Heavy Industry Castings
As of the end of 2024 the Company and four of its subsidiaries had obtained High-tech Enterprise certification. Research Institute. The Experimental Center of Riyue Heavy Industry Co. Ltd. and
the Testing Center of Ningbo Rixing Foundry Co. Ltd. are laboratories and testing Riyue Postdoctoral Research Workstation
institutions accredited by national (international) organizations.Case
National CNAS Laboratory Accreditation Review Successfully Completed
Riyue High-tech Rixing Foundry Mingling Technology In July 2024 the testing center of Ningbo Rixing Foundry Co. Ltd. a subsidiary of the Company successfully
Enterprise Certificate High-tech Enterprise Certificate High-tech Enterprise Certificate passed the CNAS re-accreditation review.Precision Manufacturing Gansu Riyue
High-tech Enterprise Certificate High-tech Enterprise Certificate
37 38Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
The Company cultivates and introduces high-level technical and skilled talents through a "going out and bringing in" approach · The Company developed a 100-metric tons spent fuel transport/storage container reaching internationally advanced technical
via multiple channels establishing an efficient R&D talent team to enhance overall scientific and technological innovation standards breaking long-standing foreign monopolies and helping elevate China's position in the global nuclear energy sector.capabilities. At the same time the Company significantly improved the overall level of its R&D projects strengthened the · It carried out research and testing on composite chill blocks extending service life and optimizing cooling performance
innovation awareness of technical and skilled talents and fostered a sound research atmosphere. greatly reducing chill block costs.The Company applied cold dry air technology promoting the development of new-quality productive forces through R&D and
Indicators and Targets innovation.In 2024 the Company continued to advance its R&D and innovation initiatives.Reducing energy costs to By using relatively dry room-temperature high-pressure gas energy loss is significantly reduced
Indicator Unit 2024 achieve green manufacturing lowering overall energy consumption.R&D investment RMB 100 million 2.27 Saving human resources and Highly automated and easy to operate reducing training time and costs and minimizing the risk of
improving workplace safety human error.Proportion of R&D investment % 4.84
Releases crane resources previously occupied by hot air blower hoisting improving the flexibility
Proportion of R&D personnel % 6.48 Freeing up crane resources and efficiency of the entire production line.Targets Progress Intellectual Property Protection
·Technological Breakthroughs: Complete no fewer than three major The Company adheres to the principle of "generating patents through projects and applying patents in practice" and has
technical research projects. formulated a series of systems including the Incentive Measures for Intellectual Property Rights the Trade Secret Protection
· New Product Launches: Successfully develop and launch two to three
new products targeting emerging markets or high-end application scenarios Policy the Patent Management System the Copyright Management System the Measures for the Administration of Intellectual
with new product sales accounting for 10%15% of total revenue.Continue advancing toward the Property the Intellectual Property Risk Reserve Fund Management System the Intellectual Property Special Fund Management Phased Goals · Patent Growth: Apply for no fewer than 150 patents within five years with
(3-5 years) the number of invention patent applications increasing annually and achievement of phased goals System the Control Procedures for Intellectual Property Implementation Licensing and Transfer the Intellectual Property Risk
accounting for more than 20%; enhance patent commercialization and Management Procedures the Contract Management Procedures and the Intellectual Property Management Procedures for
achieve a patent implementation rate of over 60%. Sales and After-Sales continuously improving its management structure. As of the end of 2024 the Company and one of its
· R&D Team Development: Expand the R&D team to more than 100 people
with senior technical personnel accounting for 15% and cultivate or subsidiaries had obtained certification for the intellectual property management system.introduce no fewer than three industry-leading talents.Intellectual Property Management Structure
· Technology Leadership: Become a global technological leader in wind
power eq uipment and other high-end equipment manufacturing fields Responsible for organizing and guiding the operation of the Company's intellectual property management
mastering core cutting-edge industry technologies. R&D Center system.· Product Diversification: Develop at least five globally competitive new
product lines with independent intellectual property rights.Continue advancing toward the Office System As the designated department for the task it is responsible for the completion of the intellectual property Long-term Goals · Patent Portfolio: Accumulate over 350 patent applications with invention
(5-10 years) patents accounting for no less than 30%. achievement of long-term goals Department
protection framework and the management system archiving documents and reporting infringement risk
incidents etc.· R&D Investment and Collaboration: Maintain R&D investment at 3%4%
of revenue and establish long-term strategic partnerships with no fewer than Legal Affairs It is responsible for organizing and directing the Company's response to IP infringement risk and litigation.ten leading global research institutions and universities.R&D and Innovation Achievements
The Company actively promoted industry innovation and development and achieved remarkable results. In 2024 the
Company led or participated in the development of 24 national group and industry standards. It received 14 provincial and
municipal science and technology progress awards and 2 industry association awards.· The Company developed a ductile iron material with ultra-low-temperature performance for ultra-high-power offshore
wind turbine hubs significantly improving the safety factor of hubs used in China's Three-North region. The structural design Riyue Intellectual Property Rixing Foundry Intellectual Property
was optimized to reduce weight and the project's overall technology reached an internationally advanced level enhancing Management System Certificate Compliance Management System Certificate
the Company's core competitiveness.
39 40Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
SRM Procurement System Construction
· Management and Maintenance: Establish an intellectual property log to centrally manage the By building the SRM platform the Company has achieved the matching and information sharing of logistics information flow
Company's patents trademarks copyrights etc. Pay related fees regularly to maintain the validity and capital flow in supplier management sourcing order execution and financial reconciliation processes comprehensively
Intellectual of intellectual property rights. improving supply chain management and monitoring capabilities enhancing supply chain control and improving overall
Property · Protection and Utilization: Strengthen IP protection monitor market infringement activities and supply chain operation efficiency.Protection take timely legal action to safeguard the Company's rights. Promote the transformation and
utilization of intellectual property to maximize its value.Case
As of the end of 2024 the1 74 valid In 2024 the 21new SRM Project Acceptance and Commendation Conference Held by the CompanyCompany owned a total of patents Company was granted patents
In September 2024 the Company held the SRM Project
Acceptance and Commendation Conference to promote
Digital Transformation the digital upgrade of procurement management.Based on its development strategy and business needs the Company driven by technological
innovation and focused on optimizing business processes has carried out digital construction
across all business areas under the overall coordination of its Digitalization Center empowering the
development of an efficient management system and promoting high-quality growth. As of the end
of 2024 the Company obtained the integration of informatization and industrialization manage-
ment system certification by China Classification Society.The Company has consistently adhered to a digital transformation path of "planning first manage-
ment reform platform-based foundation and empowerment for efficiency improvement". Through EHR Project Construction
the dual drivers of optimizing the business management system and building information systems Rixing Foundry Integration of To enhance management efficiency realize human resource management goals and optimize employee full life cycle
it promotes the comprehensive implementation of its strategic goals through digital transforma- Informatization and Industrial- management the Company launched the EHR project to effectively support digital development in the HR field.ization Management System
tion. In 2024 the Company steadily advanced digital transformation in management and produc- Certification by China Classifi-
tion achieving significant results. cation Society
Case
SAP Integrated Project Construction
The Company built a management platform integrating operations and finance promoted standardized construction of EHR Project Officially Launched
processes and internal controls accelerated full deployment of the ERP system sped up the cultivation of interdisciplinary
digital talents and achieved data valorization process capability system clustering lean operations and integrated operations In September 2024 Riyue launched the EHR (Human
and finance thereby improving the quality and efficiency of its management system. Resource Digitalization) project to advance the upgrade
of its HR system and strengthen digital talent manage-
ment capabilities.RPA Digital Workforce
The Company continues to enhance the digital and intelligent transformation of production management by developing and
deploying robots across operations production sales finance and procurement significantly saving manpower.
41 42Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Case Valuing Human Resources
Company Optimizes RPA Digital Workforce Project
In 2024 the Company applied RPA (Robotic Process Automation) in SAP data maintenance. Through digital tools The Company adheres to a people-oriented approach focusing on creating a harmonious and pleasant
data entry and analysis were automated replacing manual operations improving work efficiency and ensuring workplace actively implementing fairness and justice in employee recruitment and management paying
100% accuracy in data screening pushing and reminders. close attention to employees' well-being enforcing labor protection and safeguarding employees in all
aspects to jointly create a better future.Employee Recruitment
Obtain recruitment requirements
The Company complies with the Labor Law of the Peo-
ple's Republic of China and has formulated a Recruit-
Job research
ment Management System which clearly defines
recruitment procedures and standards to ensure Determine
recruitment method
fairness and transparency. Upholding the principles of
equal competition and merit-based selection the Com-
pany determines final hiring decisions through compre- Recruitment External recruitment Internal
hensive evaluation of candidates' skills experience and platform
competition
Determine Publish
potential. The Company firmly opposes all forms of Internal referral recruitment channels announcement
discrimination including but not limited to gender
Headhunting Post job opening Receive resumes
ethnicity and age ensuring every candidate has a fair
opportunity. Resume sourcing Internal
competition
candidate
Talent interview interview
FOM Intelligent Manufacturing
The Company continues to advance intelligent manufacturing promoting the rollout of the FOM system in all production
facilities to improve the quality and efficiency of production management. First-round Second-round
interview interview Final interview
Case Salary
negotiation
Company Launches FOM System
Salary Transfer
In July and September 2024 the Company successively approval approval
launched the FOM system at Plant 4 and Plant 3 integrating
Transfer
production data optimizing process management enhanc- Offer issuance notification
ing production efficiency and resource allocation and
Background
strengthening the quality control system. check
Pre-onboarding
follow-up
Onboarding Job transfer
43 44Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
The Recruitment Management System explicitly requires avoiding any discriminatory terms. Job advertisements are published Employee Rights and Interests
through labor markets and other channels. Valid ID verification is mandatory to confirm actual age ensuring that new hires are
at least 18 years old and preventing the employment of underage workers through falsified age documents. Candidates unable The Company has formulated a Compensation Management System to ensure the compensation structure is compliant fair
to provide valid identification are not eligible for hiring. No discriminatory behavior is allowed during recruitment based on and reasonable. Employee compensation includes fixed pay monthly performance-based pay and annual performance
race social class nationality religion disability gender sexual orientation union membership or political affiliation. Any form bonuses. For critical positions that are scarce in the market or senior personnel the Company seeks to attract or retain a con-
of discrimination against female workers particularly pregnant women is prohibited. tractual pay system is applied. The Company also pays social insurance housing provident fund and enterprise annuity for
The Company actively expands its talent pool and continuously improves talent structure through campus recruitment social employees in accordance with the law and has established a relatively comprehensive employee benefits and security system.recruitment and internal recruitment. The Company provides various benefits including meal allowances housing subsidies holiday gifts birthday benefits
· Campus Recruitment: Establishes long-term stable partnerships with numerous universities and attracts top talent summer heat subsidies communication and fuel card support and free shuttle buses enhancing employees' sense of satisfaction.through a variety of campus events. Employees enjoy various paid leave including statutory holidays marriage leave home leave bereavement leave maternity
· Social Recruitment: Widely sources talent from various fields through online platforms job fairs and cooperation with leave sick leave and injury leave that law stipulates. In addition to statutory annual leave and regular personal/sick leave the
headhunting agencies. Company has added paternity leave home visit leave and other types of time off.· Internal Recruitment: Enhances internal recruitment mechanisms allowing employees to browse and apply for open inter-
nal positions via the internal recruitment platform. The Human Resources Center recruitment officer conducts initial commu- Employee development
nication and arranges follow-up interviews.Promotion and Development
The Company offers personalized career path planning for employees clearly defining the development stages and required
Case skills for different paths. The Company has formulated a Job Grade Management System and Management System for Cadres
Campus Recruitment at Jiamusi University clarifying development pathways and management systems for employees and managers. Based on business needs job
responsibilities and employees' capabilities and experience the Company classifies staff into different sequences grades and
The Company established in-depth cooperation with the job levels and uses various methods to promote and select employees ensuring smooth transitions between development
School of Materials Science and Engineering at Jiamusi paths.University. Through campus job fairs and presentation events The Company follows the principle of "distribution according to work efficiency first fairness considered". Based on employee
the Company shortened the recruitment cycle and attracted a performance growth and market pa指y le标vels the Company regularly adjusts job grades p单os位itions and compen2sa0t2io4n 年to ensure
large number of fresh graduates with matching specialties. alignment with employee con在trib职u员tio工ns数 an量d performance and implements diverse incent人ive schemes to stimul4at7e4 m7otivation
and creativity.按性别结构划分
Employee training 男性员工人数 人 3729
The Company pays attention t o女 th性e 员de工ve人lop数ment of its employees providing a diversified人 career development p1la0t1fo8rm for all
Indicator Unit 2024 types of employees to continuously discover their potential. The C按om年p龄an划y 分has developed a Training Management System
Total number of employees person 4747 established training mechanisms and a mentorship system and promotes job rotation and temporary assignments to broaden 30岁（含）以下员工人数 人 1233
employee perspectives and experience enhancing overall quality and adaptability.By gender 30岁-50岁（含）员工人数 人 2756
Male person 3729 50岁以上员工人数 人 758
Female person 1018 按教育程度划分
By age ·New employee training 博士研究生员工人数 人 3
30 and below person 1233 ·Pre-job training for various positions. 硕士研究生员工人数 人 19
·On-the-job work skills and related safety training.
31-50 person 2756 ·Job skills training: To learn a b 本ou科t s员ta工nd人ar数d operation procedure performance of the eq人uipment used operatin3g8 i5nstruction
Over 50 person 758 environmental protection kno w专le科dg员e工 sa人fe数ty issues and emergency response measures 人with written and opera7ti2o8nal assess-
me员nt工s re结q构uired before being a l l专ow科ed以 to下 s员tar工t w人or数k. 人 3612
The Company emphasizes identifying HR management risks thoroughly analyzes the reasons behind employee turnover and ·Special job roles must undergo training provided by qualified institutions and individuals may only assume duties inde-
formulates targeted measures to mitigate retention risks. Each year in June and December the Company conducts employee 按专业构成划分pendently after obtaining a valid "work permit".satisfaction and happiness surveys and formulates improvement plans to boost employee satisfaction levels. Survey results ·Internal auditor training for q u生al产ity人 h员ea人lth数 environment occupational health and safet人y intellectual propert3y 5e2n2ergy man-
show that both employee satisfaction and happiness levels are relatively high. agement and the integration o销f i售nf人orm员a人tiz数ation and industrialization management sys人tem must be conducted5 4by certified
For labor disputes the Company handles labor conflicts in accordance with relevant laws regulations and internal rules institutions. 技术人员人数 人 699
adhering to principles of fairness and justice. ·Each work unit may contact a n财d 务reg人is员ter人 fo数r job-related training according to their actual 人needs and make relevan2t2 reports.行政人员人数人450
4546
残疾员工人数人18少数民族员工人数人603
新入职员工人数 人 2673Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Case Case
"Skill Upgrade" Training Activities Launched Company Organizes Long-distance Trekking Activity
In July 2024 the Company launched its "Skill Upgrade" In June 2024 the Company organized a 19 km long-distance
training initiative. Through theory-based learning and prac- trekking activity focusing on strengthening employee cohe-
tical courses it improved instructional design and presenta- sion and willpower. Through team collaboration and interac-
tion skills to promote internal knowledge inheritance and tion with nature the event demonstrated the spirit of perse-
standardization. verance: "Keep pushing forward and you will succeed".Case
Case
Company Launches the "Spark Plan"
Company Organizes Rainbow Run Event
In July 2024 the Company launched the "Spark Plan" talent cultivation program to comprehensively advance
In November 2024 on the occasion of the Company's 40th
talent development in all-media communication and content innovation further enhancing its talent development
anniversary it held the "40 Years of Vibrant Footsteps: Rain-
system and talent pipeline.bow Run Celebration". Through the rainbow run interactive
activities and celebratory events the Company enhanced
team cohesion and the spirit of perseverance.Indicator Unit 2024
Coverage of employee training % 100
Number of employee training time 1604 Employee Health and Safety
Total training expenditure in the year RMB 10000 51.59 Governance
Total length of training in the year The Company attaches great importance to employee health and safety. It has formulated a series of workplace safety and occupa-hour 16918.49
tional health management systems including the Workplace Safety Department Management Manual Safety Inspection and
Hazard Identification and Rectification System Hazard Identification Risk Assessment and Risk Control Procedures Work Injury
Employee Care Accident Reporting Handling and Management System and the Quality Environment and Occupational Health and Safety
Management Manual. These systems clearly define the responsibilities of top management and each functional department
The Company is attentive to employee assistance needs actively organizes cultural and sports activities and strives to enhance providing solid protection for employee health and safety.employees' sense of belonging and happiness further improving corporate cohesion. In 2024 the Company allocated RMB 110000 By the end of 2024 the Company and three of its subsidiaries had obtained certification for the occupational health and safety
to support employees in need helping them address work and life difficulties while strengthening their sense of belonging. management system.
47 48Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
At the time Labor protection supplies such as safety shoes hard hats and uniforms are issued to employees.of onboarding: Employee health checkups are uniformly arranged.Annual occupational health checkups are arranged for employees. Frontline workers and those in high-risk positions
During (including outsourced personnel) are examined once a year.employment: Employees in second-line positions have health checkups every two years.Employees' health records are maintained and follow-up examinations and diagnoses are promptly provided for
those with abnormal results.At the time
of offboarding: Offboarding employees are informed to undergo an exit health checkup.Riyue Occupational Health Gansu Riyue Occupational Health Mingling Technology Rixing Foundry
and Safety Management and Safety Management Occupational Health and Safety Occupational Health and Safety Regarding safety culture cultivation the Company takes advantage of the national "Workplace Safety Month" to promote safety
System Certificate System Certificate Management System Certificate Management System Certificate
culture and provide training to raise employee awareness of occupational safety.Strategy Case
The Company adheres to the workplace safety policy of "safety first prevention foremost and comprehensive management". It
carries out safety hazard inspections and occupational disease prevention in accordance with its systems striving to establish a Safety Management Capacity Enhancement Training
standardized and long-term mechanism for workplace safety. Centered on a people-oriented approach it continuously improves In December 2024 the Company held a training program to enhance
safety management in all aspects to safeguard employee health. safety management capabilities. The program not only improved safety
management knowledge and skills but also helped refine company safety
Influence Risk and Opportunity Management management systems and processes advancing the Company's overall
In terms of workplace safety management the Company enforces a strict workplace safety responsibility system requiring all safety governance.employees to sign environmental protection and safety responsibility agreements at every level. Following the principle of
"shared responsibilities between the Party and government dual responsibilities for one post joint management and account-
ability for dereliction" it ensures responsibilities are effectively implemented. The Company actively fulfills its supervisory
responsibilities by promoting the "7S" visual management model on-site and implementing team-based safety management.Monthly safety and environmental protection meetings and daily team briefings are held to promptly monitor workplace safety Indicators and Targets
conditions and embed the concept that everyone is responsible for workplace safety. A reward and penalty system is in place In 2024 the Company actively advanced its workplace safety and occupational health
reinforcing education for personnel involved in "three violations" and strictly controlling such behaviors. management. Its subsidiary Rixing Foundry obtained the "Level III Enterprise in Workplace
Regarding safety hazard investigations the Company conducts annual hazard identification and risk assessment of operational Safety Standardization (Machinery)" certificate.sites as required by regulations. It also performs comprehensive safety hazard identification and rectification including special
inspections on equipment electrical facilities hazardous chemicals and flammable and explosive areas. Identified hazards are Indicator Unit 2024
addressed with risk classification and control measures with deadlines for rectification and ongoing follow-ups to ensure imple-
Number of major safety incidents
mentation. Employees' abilities to identify hazards and self-protect are enhanced and accident risks are promptly eliminated. — 0
For handling safety incidents and work injuries the Company upholds the "Four No-Pass" principle and has implemented a Workplace safety investment RMB 10000 1927.43
quantifiable assessment mechanism to strengthen the responsibilities and evaluation of safety managers. Emergency response Total duration of safety training hour 1542.45 Third-Level Enterprise of Workplace
plans and specialized contingency plans have been developed. The Company pays work injury insurance premiums for employ- Safety Standardization (Machinery)
ees and has formulated the Guidelines for Emergency Handling of Safety Accidents which clearly define the procedures and Attendance of safety training attendance 18082
departmental responsibilities for dealing with work injuries enabling orderly rescue operations incident investigation and Safety training coverage rate % 100
responsibility identification. Investment in occupational injury
RMB 10000 5.12
In terms of occupational health management the Company places great emphasis on employee well-being and has established insurance for employees
employee health records and full-process risk prevention and control measures from onboarding to offboarding. Coverage of occupational injury insurance % 100
49 50Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Strengthening Quality Management
The Company regards product quality and customer service as the core drivers of corporate develop-
ment. It has established and continuously improved a sound quality management system and customer
feedback mechanism constantly enhancing customer satisfaction and loyalty while solidifying its
leading position in the industry.Quality management
Governance
The Company has formulated and strictly implemented various management regulations including the Review and Control Rixing Foundry Riyi Intelligent Riyue Manufacturer
Procedures for Product-related Requirements the Control Procedures for Production and Service Provision Processes the Quality Management System Certificate Quality Management System Certificate Certificate - BV MODE II SCHEME
Acceptance Procedures for Incoming Raw and Auxiliary Materials the Nonconforming Product Control Procedures the Monitor-
ing and Measurement Control Procedures for Raw and Auxiliary Materials and Cast Products the Management Procedures for
Casting Quality Inspection the Control Procedures for New Product Development the Control Procedures for Non-conformities
the Corrective and Preventive Measures and the Continuous Improvement Control Procedures. These systems clearly define the
quality management structure and responsibilities enabling quality improvements across processes products and manage-
ment systems. As of the end of 2024 the Company and five of its subsidiaries have obtained ISO 9001 Quality Management
System certification. The Company has also received factory certifications from Bureau Veritas (France) under MODE II DNV
(Norway) ClassNK (Japan) CCS (China Classification Society China) ABS (USA) and the National Military Standard (GJB) Quality
Management System certification.Quality and Safety Accountability System
Top Management For mulate the Company's quality strategic direction
Director of Quality &
Safety Center Formulate quality policies and quality objectives
Riyue National Military Riyue Riyue
Quality Management Personnel Strengthen the process quality system and quality process control organize quality analysis corrective actions Standard (GJB) Quality Management System Manufacturer Certificate - DNV Manufacturer Certificate - ClassNK
and improvements and implement the quality and safety accountability system
Personnel of Quality and Take the lead in organizing the development of quality and EHS management system documents product
EHS Systems quality inspection systems and quality inspection standards; regularly carry out system promotion activities
Product Inspection Personnel Operate in accordance with quality inspection standards and fulfill the quality and safety accountability system
Production personnel Operate according to the work instruction manual and fulfill the workplace safety accountability system
Riyue Manufacturer Riyue Manufacturer Riyue Manufacturer
Riyue Quality Management Gansu Riyue Quality Management Precision Manufacturing Quality Mingling Technology Quality Certificate - Lloyd’s Register Certificate - China Classification Society Certificate - ABS
System Certificate System Certificate Management System Certificate Management System Certificate
51 52Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Strategy To address quality incident events the Company has established a sound product recall system and process clarifying the
The Company consistently adheres to the quality policy of "meticulous management continuous innovation commitment to responsibilities of each department.promises continuous improvement enhancing the "Riyue" brand and improving customer satisfaction". It builds a rigorous
quality control system scientifically responds to quality risks in accordance with procedures continuously promotes quality
informatization fosters a company-wide quality awareness and cultivates a quality culture while properly handling product After-sales Service ·Communicates with customers and relays the information to the Product Assurance Section.Department ·Coordinates personnel to confirm product quality status.issues to safeguard the Company's reputation and customer interests. The Company has established the Procedures for Risk and
Opportunity Control which clearly defines quality information quality risk assessment (including risk identification analysis ·Upon confirmation of a return arranges a logistics company to transport the goods back.Warehousing
and evaluation) quality risk response quality supervision and inspection quality communication and record management. Section ·After the product is returned confirms the return status product and quantity based on the customer's return information. Once verified the returned goods are relocated labeled and isolated in a designated area.Influence Risk and Opportunity Management
Product ·Re-inspects and analyzes the returned product issues records the problem details organizes relevant departments
In terms of quality supervision and control the Company conducts full life cycle inspections of its products covering all Assurance Office for review and determines the handling method.stages from raw and auxiliary materials semi-finished products and finished products to the production process and shipment
of finished products. It analyzes and investigates the root causes of non-conforming products implements effective corrective
Indicators and Targets
measures and continuously strengthens quality control. The Company enhances quality control at each stage of new product
In 2024 the Company did not experience any major liability incidents related to product or service safety and quality nor were
casting and old product redesign organizes process reviews and trial production and strengthens the quality control of new
there any product recalls due to quality issues. Its subsidiary Rixing Foundry received a Best Quality Award and a "5A"-level
products. Monthly quality review meetings are held to enhance quality supervision. The Company also deepens supplier quality
rating in quality credit evaluation.management by conducting audits of supplier quality management systems and processes according to plan and regularly
evaluates their performance.In terms of quality information management the Company has established the Quality Information Control Procedures to Customer Service
ensure improvements in managing internal and external quality information collection transmission processing quality correc-
The Company attaches great importance to customer experience. It has developed the Measures for the Administration of New
tion and prevention and continuous improvement.Product Quotation Sales Business Management Procedures Measures for the Administration of After-sales Services Measures
In terms of quality culture construction the Company organizes an annual Quality Culture Month. It enhances compa-
for the Administration of Customer Services NC Handling Control Process Customer Satisfaction Evaluation Procedures and
ny-wide quality awareness through pre-shift meetings and internal network sharing of quality information.Customer-related Process Control Procedures to standardize customer service content and enhance the customer service
experience.Case Case
Company Organizes Quality
Company Conducts On-the-job Training Promotion Video Viewing
·Carries out product promotion through advertisements and face-to-face introductions presenting the Company's
Pre-sales Service backgro und product features performance advantages and suitable application areas. In May 2024 the Company held a job training and In November 2024 the Company organized a ·Conducts visits to understand customer needs and provides targeted services accordingly.technical skills competition. Through skill contests screening of the short video "Forging Excellence ·Organizes mutual visits between relevant departments to conduct technical and quality exchanges.and recognition events employees' driving opera- with Quality: The Era's Top Craftsmanship Choice"
tion skills and safety awareness were improved to deepen the cultivation of quality culture. ·Before signing the contract explains the commercial terms to the customer clarifying the rights and responsibili-
ties of both parties.and professional skills such as protective measures ·Provides qualified products and required accessories and reports to the customer in accordance with the custom-
and hoisting were tested. In-sales Service ized contract and technical agreement.·If the contract stipulates that transportation shall be handled by the sales company it arranges the transportation
during product shipment and delivery ensures the quality of packaging and transportation and helps customers
save on shipping costs.·Conducts customer follow-ups to understand product quality and usage as well as customer business conditions
After-sales service to facilitate timely countermeasures. If a quality issue arises during the process sales personnel should promptly
coordinate and arrange services.Customers can directly communicate their complaints or feedback to the respective after-sales personnel via telephone email
or other communication channels. After receiving a complaint the relevant after-sales personnel adjust the solution based on
the specific situation and actual needs of the customer. The Company categorizes complaint events based on urgency to ensure
that each complaint is addressed in a timely and effective manner maximizing customer satisfaction with reasonable demands.
53 54Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
The Company values customer feedback and conducts customer satisfaction surveys collecting and analyzing satisfaction data
across six areas: product quality delivery coordination pricing service and loyalty to help the Company accurately identify and Consolidating Supply Chain Management
focus on customer needs and expectations.The Company continuously strengthens supply chain management by optimizing supplier cooperation
enhancing risk control improving supply efficiency and building a stable efficient and sustainable
the customer
satisfaction score was91. 27 100% supply chain system to lay a solid foundation for steady business development.the complaintpoints resolution rate was
Governance
The Company has formulated the Supplier Lifecycle Classification Management Specification the New Supplier Admission
Indicator Unit 2024
Management Procedures the Supplier Performance Management Procedures the Supplier Status Classification Management
Complaint resolution rate % 100 Procedures the Supplier CSR Management Procedures the Procurement Bidding Management Procedures the Raw and
Auxiliary Materials Procurement Management Procedures and the Outsourced Processing Procurement Management Proce-
Customer Satisfaction % 91.27 dures among other systems. These clearly define supplier management practices improve supplier management frameworks
clarify functional responsibilities at each level and ensure more efficient and professional division of labor and collaboration
promoting refined operations.Protection of Customers’ Information and Privacy
Strategy
The Company places great emphasis on information security and customer privacy protection. It guided
Rixing Foundry in formulating the Backup and Recovery Management System Computer and Network Use The Company always adheres to closed-loop supplier management and a robust supply chain layout. It establishes sound
Regulations and Computer Room Management System among others to ensure the secure operation of institutional systems and management frameworks and is committed to promoting the sustainable development of the entire
computer systems email systems file systems and networks and to protect the rights and interests of the supply chain strengthening dynamic evaluation of suppliers' environmental and social performance to build supply chain
Company and its users preventing the leakage of company documents. The Company strengthens the resilience.operation maintenance and management of computer systems and networks to ensure their secure Throughout the full life cycle the Company identifies potential risks of suppliers in legal operational financial technical
reliable and stable operation and comprehensively enhances customer information and privacy protection quality and delivery aspects clarifies the identified risks and evaluates each risk in terms of severity frequency and detectabil-
efforts effectively safeguarding the Company's reputation and customer interests. ity then formulates corresponding solutions (preventive measures).Influence Risk and Opportunity Management
In terms of supplier management the Company has clearly defined supplier management mechanisms actively promotes
supplier digitalization and facilitates the development of an interactive platform to enhance the effectiveness of supplier
management.Supplier Sourcing ·It conducts sourcing evaluations for potential suppliers assessing their business qualifications and environmen-tal impa ct of production activities.Access of Suppliers ·It sets supplier admission criteria and carries out qualification reviews and on-site evaluations based on capabili-
ty levels in qualification development technical expertise and quality management.·Annually披 it 露eva项luates supplier performance through on-site audits a单nd 位document reviews in2 te0rm24s 年of supply
Evaluation of quality delivery cost service and technical capability. 135.26
Suppliers ·Suppliers failing the annual review are classified as high-risk suppliers and subject to management controls. After
a three-month rectification period re-evaluation is conducted. Suppliers who fail the re-evaluati1o1n3 .a6r0e directly
downgraded to eliminated suppliers.水资源21.66
·Based on evaluation results suppliers are classified into four levels: A B C and D. D-level suppliers are required
Supplier Tiered to rectify within a deadline; if unable to meet company requirements they are listed as eliminated s1u6p.0p1liers and
Classification cannot be re-engaged within one year.Management ·Suppliers are categorized annually into strategic cooperative contractual and general transactio
8n0 t6y.p8e9s based
on the importance of strategic materials and supplier dependency. Supplier development s4tr2a.2te4gies are
formulated based on comprehensive supplier performance.
325370.08
57125.85
198529.81
5556
29.00
994.86
9844.37
163.68
1607.38
56069.42
1005.71
266687.57
1607.38
57075.13
11451.75
1607.38
0.49
3.52
0.49
83877.5
980.0
82897.5
15.5
7.8
4.0
3.7
4.0
1.5
165.05
329703.3
3219.2
375.8
28252.8
294373.1
3482.0
104
793.96Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Case The Company actively promotes collaboration with suppliers to build a more resilient supply chain. As a leading enterprise in the
casting industry chain the Company collaborates with domestic riser R&D and manufacturing enterprises to conduct key
Mold Supplier Interaction Platform Launched research and joint problem-solving on core wind power casting product processes promoting breakthroughs in domestic
substitution for certain imported risers thereby enhancing the core competitiveness of the industry chain and supply chain
In November 2024 the Company launched a mold supplier interaction platform to improve compliance in mold security level.manufacturing and process control and promote digital development in supplier management.·Process Quotation Document Inquiry: Enables all demand departments to query process documents used for Indicators and Targets
quotations facilitating unified documentation and restricting suppliers' access to ensure customer data security.·Mold Manufacturing Progress Inquiry: Allows for checking the progress of all molds under development to In 2024 the Company made every effort to build a supply chain ecosystem actively leveraging its platform advantages and
facilitate progress control and document collection during new product development. encouraging suppliers with positive values and strong innovation and development ambitions to grow together with the
·Online Communication and Interaction: The platform provides real-time information transfer task publication Company. In 2024 the Company conducted 28 on-site supplier audits and found no zero-tolerance issues such as child labor or
and auto-notifications via Lark/email allowing both parties to communicate at any time solve mold development forced labor. The signing coverage rate of the Supplier Integrity Commitment Letter reached 100%. In the future the Company
issues promptly improve communication efficiency and reduce errors. All communication records are traceable. will continue to introduce and cultivate high-quality supplier partners to gradually realize healthy competition and a virtuous
·Supplier Bulletin Board: Open to all mold suppliers it is used to publish notifications standard updates and cycle within the supply chain ecosystem.changes to management systems.·Mold Suggestion Collection Form: Collects feedback and suggestions regarding mold manufacturing and use
from across the Company. Any issues or concerns encountered during mold manufacturing and production can be Spreading Social Warmth
submitted via the platform by both internal staff and suppliers.The Company places great emphasis on fulfilling its social responsibilities. It has formulated the External
Indicator Unit 2024 Donation Management System and the Volunteer and Public Welfare Activity Management System to
strengthen donation management and encourage employees to actively engage in public welfare activities
Number of suppliers by geographical region — 874 thereby fulfilling the Company's social responsibilities. In 2024 the Company actively participated in public
Number of suppliers from the Chinese mainland — 868 welfare activities and organized donations totaling RMB 1.09 million.Meanwhile the Company vigorously promoted public science education to bring technology into schools
Number of suppliers from Hong Kong Macao and Taiwan China — 1 injecting fresh vitality into campus innovation and sowing the seeds of science for future talent development.Number of suppliers from foreign countries — 5
In terms of responsible supply chains the Company integrates supplier sustainability into procurement processes and manage-
ment focusing on supplier social responsibility energy conservation emissions reduction and anti-corruption. The Company
enhances supplier awareness of social responsibility and carbon reduction through training and requires suppliers to sign the Case
Supplier Integrity Agreement to promote sustainable development across the supply chain. Company Conducts Public Science Education
In supply chain risk response the Company has established a comprehensive risk response mechanism to minimize the negative
impact of risks on the Company. In June 2024 under the them指e "标Igniting Dreams 单位 2024年with Technology Build在ing职 t员he工 Fu数tu量re Together" 人 4747
Supply Chain Risk Response Mechanisms and Measures the Company held science education activities to按性别结构划分
enhance students' scientific literacy and promote
Risk Avoidance ·For high ly probable and significantly impactful risks (e.g. geopolitical risks affecting supply) the Company m ay 男性员工人数 人 3729switch suppliers to avoid sourcing from certain regions. their overall development.女性员工人数人1018
·For risks that cannot be fully avoided measures are taken to mitigate their impact.Risk Reduction ·Sign long-term contracts with suppliers to lock in raw material prices and reduce price fluctuation risks. 按年龄划分
·Establish safety stock to cope with short-term supply interruptions. 30岁（含）以下员工人数 人 1233
·Transfer part of the risk to insurance companies by purchasing insurance such as transport insurance to cover
Risk Transfer The Company is committed to l3e0v岁era-5gi0n岁g i（ts s含tr）en员gth工s 人to 数support local community develop人ment and promote reg2io7n5a6l econom-losses during shipment; or clarify risk responsibilities in contracts to transfer risk to partners.ic growth. In 2024 the Compa n5y0 m岁a以de上 lo员ca工liz人ed数 purchases of over RMB 350 million for m人old and product proces7s5in8g services
·For risks with low probability and minor impact (e.g. occasional small-scale logistics delays) continuous
Risk Acceptance helping more than eight local enterprises expand production capacity and creating over 120 new jobs. The Company actively monitoring is conducted. 按教育程度划分
responded to the call for rural r博ev士ita研liz究ati生on员 in工ve人st数ing RMB 10.2 million throughout the yea人r to support rural assista3nce efforts.硕士研究生员工人数人19
57本科员工人数人38558
专科员工人数人728员工结构专科以下员工人数人3612按专业构成划分应届毕业生人数人85社会招聘员工人数人2588
员工社会保险缴纳覆盖率%100安全培训总次数次480安全生产投入万元
安全培训总时长小时1542.45安全培训参与人次人次18082
安全培训覆盖率%100
工伤保险覆盖率%100
从业人员职业伤害保险投入金额万元5.12从业人员职业伤害保险覆盖人数人100
指标单位2024年安全生产责任险投入金额万元31.3
Riyue Heavy Industry Co. Ltd. 在职员工数量 人 4747 安全生产责任险人员覆盖率 En%vironmental Social and Govern5a9nc.e3 (1ESG) Report按性别结构划分职业健康重大安全事故量起0安全管理
男性员工人数人3729因工伤损失工作日数日3315.5女性员工人数人1018职业病发生数量件2
按年龄划分职业病发生率%0.04
30岁（含）以下员工人数人1233职业病发生率%0.04
30岁-50岁（含）员工人数人2756关爱与帮扶员工帮扶投入万元11
50岁以上员工人数人758体检及健康档案覆盖率%100
按教育程度划分员工培训场次次1604
博士研究生员工人数人3员工培训支出万元51.59
硕士研究生员工人数人19员工培训总时长小时16918.49
本科员工人数人385员工平均培训时长小时3.56
L 专科员工人数 人 728 员工培训参与总人次 人次 130019员工结e构an Fo u 专科n以下d员工a人数tion 人 3612 员工培训覆盖率 % 100
Joint Promotion 按o专业f构成划分 按性别结构划分 生产人员人数 人 3522 男性员工受训人数 人 3729
Prosper 销售人员人数 人 54 男性员工受训比例 % 100 技i术t人员y人数 人 699 男性员工人均培训时长 小时 3.83财务人员人数人22女性员工受训人数人1018
行政人员人数人450发展与培训女性员工受训比例%100
残疾员工人数人18女性员工人均培训时长小时2.59少数民族员工人数人603按雇员类型划分
The Company fully adv新an入ce职d员 th工e 人op数timization and upgrading of its corpora人te 2673 高级管理层员工受训人数 人 6
governance system upheld the leadership of the Party as按 t招he聘 co渠re道 d划ee分pened the 高级管理层员工受训比例 % 100
development of the "Three Boards and One Management" governance structure
应届毕业生人数人85高级管理层员工人均培训时长小时3.77
improved decision-making and supervisory mechanisms enhanced governance
efficiency strengthene d 社 b会u招sin聘es员s 工et人hi数cs management proactively disclose人d 2588 中级管理层员工受训人数 人 26
薪酬in与fo福rm利ation to stakehold员e工rs社 co会ns保ci险ou缴sl纳y a覆cc盖ep率ted social supervision and ensure%d 100 中级管理层受训比例 % 100
the Company's stable an安d 全lo培ng训-te总rm次 d数evelopment. 次 480 中级管理层员工人均培训时长 小时 25.13安全生产投入万元基层员工受训人数人4715
安全培训总时长小时1542.45基层员工受训比例%100
安全培训参与人次人次18082基层员工人均培训时长小时3.44
安全培训覆盖率%100参与员工满意度调查的员工数量人743
工伤保险覆盖率%100员工满意度参与员工满意度调查员工数量占比%15.57
从业人员职业伤害保险投入金额万元5.12员工满意度得分分/%86.00从业人员职业伤害保险覆盖人数人100发生的产品和服务相关的安全与质量产品安全万元0
安全生产责任险投入金额万元31.3重大责任事故损害涉及的金额与质量
安全生产责任险人员覆盖率%59.31因健康与安全原因须撤回和召回的产品数量件0职业健康重大安全事故量起041安全管理
因工伤损失工作日数日3315.5100
职业病发生数量件2客户服务91.27
职业病发生率%0.04与权益1353
职业病发生率%0.04100关爱与帮扶员工帮扶投入万元110
体检及健康档案覆盖率%1000
59员工培训场次次160460
员工培训支出万元51.59创新发展
员工培训总时长小时16918.49308
员工平均培训时长小时3.566.48员工培训参与总人次人次13001918
员工培训覆盖率%1006
12
0
21
5
16
0
174
9
7
874
868
5
28
0
1
129
100
100
868
0
4756
3736
1020Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Optimizing the Governance System The General Meeting the Board of Directorsthe Board of Supervisors and the Management
The Company has established and keeps improving the corporate governance structure where the General Meetings of Share-
holders act as the governing body the Board of Directors serves as the decision-making body special committees of the Board
Guided by the Party's advanced ideology the Company thoroughly implemented the requirements of
of Directors provide decision-making support the management executes decisions and the Board of Supervisors oversees
Party building refined governance structures and provided a solid guarantee for high-quality develop-
operations. With all rights and obligations clearly delineated the General Meetings of Shareholders Board of Directors Board
ment and greater social value creation.of Supervisors and the management perform their respective duties and responsibilities coordinate with each other and
maintain checks and balances.Shareholders'
General Meeting
Leading Role of Party Building Strategy Committee
Board of Supervisors
The Company has consistently adhered to Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era and
Audit Committee
deeply implemented the principle of "maintaining the two consistencies". Emphasizing theoretical learning political and
Board of Directors Board Operations
ideological development and the fulfillment of political responsibilities the Company continuously enhanced the political Department
Nomination Committee
judgment comprehension and execution capabilities of the central Party organization and its members. It strengthened the
Party organization's functions of "setting direction managing the overall situation and ensuring implementation". Party Remuneration and
building efforts steadily advanced ensuring the Company maintains the right development path and scientific democratic Appraisal Committee The Management
decision-making.The Company steadily promoted the development of Party branches through activities such as "Three Meetings and One Corporate Governance Structure
Lecture" themed Party Days and Party-building brand enhancements. As of the end of 2024 the Company had 81 Party Board of Directors
members across subsidiaries conducted 28 Party Day events and established over 10 exemplary Party posts assault teams The Board of Directors is the Company's permanent decision-making body and is accountable to the General Meeting of Share-
and Party member task forces in major projects and tasks. holders. The Board of Directors consists of nine members including six non-independent directors and three independent
directors with one chairman.Case The Company has established four specialized committees under the Board of Directors: the Strategy Committee the Audit
Committee the Nomination Committee and the Remuneration and Appraisal Committee. These committees research profes-
"Retracing the Long March Honoring Our Original Aspiration" Party Building Event sional matters and provide expert recommendations to support the Board of Directors decisions. All committee members are
In June 2024 the Company organized a Party Building Event directors. In 2024 the Company held seven meetings of the Board of Directors and reviewed and approved 38 proposals; it also
themed "Retracing the Long March Honoring Our Original held one meeting of the Strategy Committee six meetings of the Audit Committee one meeting of the Nomination Committee
Aspiration". By revisiting Red history and reaffirming the and three meetings of the Remuneration and Assessment Committee.oath of Party membership participants deeply learned from
the great spirit and enhanced their sense of mission. Indicator Unit 2024
Number of Directors in the Board of Directors person 9
Male person 7
Female person 2
Number of Independent Directors person 3
Directors are elected or replaced by the General Meeting of Shareholders. The term of office for directors is three years and
The Company firmly upholds the leadership of Party building in driving enterprise development and integrates Party-building upon expiration they may be re-elected for consecutive terms. A director may concurrently serve as the General Manager or
work into production and business activities. Through strengthening the Party member team and advancing corporate culture other senior management personnel but the number of directors concurrently serving as General Manager or other senior
it continuously enhances the Company's core competitiveness and market influence. executives together with those serving as employee representatives shall not exceed half of the total number of directors of the
Company. The General Meeting of Shareholders may adopt a cumulative voting system for the election of directors.
61 62Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Board of Supervisors
The number and composition of the Company's Board of Supervisors comply with relevant laws regulations and the Articles Investor Relations Management
of Association. The convening and procedures of the Board of Supervisors strictly comply with the Company Law the Articles
of Association and the Company's Rules of Procedure for the Board of Supervisors. Supervisors diligently fulfill their duties
acting in the spirit of responsibility to the Company and all shareholders. They lawfully and independently supervise the
The Company is committed to building close harmonious and mutually beneficial relationships
Company's finances and the legality and compliance of the performance of directors and senior management.with investors to support its long-term development.The Board of Supervisors comprises three members with one serving as the Chairman. The Company's supervisors include
both shareholder representatives and employee representatives with one employee representative. The Company held 7
meetings of the Board of Supervisors in 2024.Each term of office for supervisors is three years. Supervisors representing shareholder representatives shall be elected or High-Quality Information Disclosure
replaced by the General Meeting of Shareholders while those representing employee representatives shall be democratically
elected or replaced by the employees of the Company. Supervisors may be re-elected upon expiration of their term. The Company has established systems such as the Information Disclosure Management System and Internal Reporting System
for Significant Information to fulfill all information disclosure obligations in accordance with laws and regulations ensure that
all disclosures are truthful accurate complete and timely and guarantee that investors have equal access to company informa-
The Management tion. In 2024 the Company continued to strengthen the management of information disclosure affairs timely and lawfully
The Company has one general manager appointed or dismissed by the Board of Directors. The Company's senior manage- fulfilled its disclosure obligations ensuring full and proper disclosure.ment strictly implements resolutions of the Board of Directors in accordance with national laws regulations and corporate In 2024 the Company proactively released 135 public disclosure documents including four periodic reports 80 interim
governance systems and performs their duties with loyalty and diligence. announcements and 51 other online documents enabling investors to fully and accurately understand the Company’s opera-
tions and make well-informed investment decisions.Compensation of Directors Supervisors and Management
Directors' compensation proposals are made by the Board of Directors and supervisors' compensation proposals are made by
the Board of Supervisors. These are implemented upon review and approval by the General Meeting of Shareholders. The
Company formulates compensation plans based on the specific responsibilities roles and performance of directors supervi-
sors and executives. Actual payment is linked to organizational and individual performance. Independent directors receive an
allowance and no other remuneration; external supervisors not affiliated with the actual controller's enterprise system receive
a supervisor allowance.Investor Relations Management
The Company has formulated an Investor Relations Management System improved investor protection mechanisms and
strengthened communication with current and potential investors to establish long-term stable and positive relationships.The Board Office is responsible for investor relations management with designated personnel handling daily tasks. The Compa-
ny has established a sound internal information management mechanism and a unified information platform. Departments
work collaboratively to support investor relations.The Company actively updates its website and WeChat account and strengthens investor communication through platforms
like Shanghai Stock Exchange E-interaction investor hotlines emails on-site research visits and performance briefings
attentively listening to investor feedback.In 2024 the Company held 3 performance briefings 19 investor meetings responded 27 times on online platforms and partici-
pated in investor interactions with a cumulative total of 275 institutions and 439 individual investors.
63 64Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Indicator Unit 2024 Case
Performance presentation time 3 National Investor Protection Publicity Day Event
Number of investor exchanges time 19 The Company organized activities for the May 15 National
Number of investors received attendance 439 Investor Protection Publicity Day demonstrating its com-
mitment to high-quality capital market development and
Number of platform responses time 27 implementation of investor protection with actual actions
Number of investor calls answered time 399 and enhancing investor satisfaction sense of gain and
security.Protecting Shareholders Rights and Interests
The Company strictly complies with national laws and the Rules of Procedure for the General Meeting of Shareholders when
convening General Meetings of Shareholders ensuring shareholders can exercise their voting rights according to law.·General Meetings of Shareholders are held on-site with online voting or other options available to facilitate participation.·Shareholders attending meetings have the right to speak on each agenda item. Except for matters involving commercial
secrets directors supervisors and senior management provide explanations in response to shareholder inquiries at the Gener-
al Meeting of Shareholders. Case
·For significant matters affecting minority shareholders separate vote counting is conducted and results disclosed promptly. Company Conducts "World Investor Week 2024" Series Events - "Technology
·For related-party transactions related shareholders are required to recuse themselves. and Digital Finance" and "Sustainable Finance"
·For elections involving two or more directors or supervisors at the General Meeting of Shareholders a cumulative voting
system is used. In October 2024 the Company launched a series of "World Investor
·All agenda proposals are voted on individually; for multiple proposals on the same matter voting follows the order in which Week 2024" events under the themes of "Technology and Digital
they were submitted. Finance" and "Sustainable Finance". These efforts supported the
implementation of the Third Plenary Session of the 20th CPC Cen-
In 2024 the Company convened one annual general meeting and two extraordinary general meetings at which 13 proposals
tral Committee the Central Financial Work Conference the new
were reviewed and approved with a 100% attendance rate by the directors."Nine National Articles" and the China Securities Regulatory Com-
The Company actively monitors capital market developments persists in creating value for shareholders and continues to
mission's responsibilities.improve the shareholder return mechanism. We tried all efforts to reward investors actively through transparent stable and
sustainable dividend distributions and performance growth with the long-term interests of the Company the overall interests
of all shareholders and sustainable development taken into consideration.
657 66Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Strengthening Internal Risk Control Case
Launch of Contract Template Knowledge Base
The Company places great emphasis on risk internal controls continuously optimizes the internal In October 2024 the Company established and launched a contract template library including standard procure-
control system ensures standardized and orderly business processes builds risk management mecha- ment contract templates bidding-related contract templates other contract templates and human resources
nisms and accurately identifies assesses and responds to risks. It strictly complies with regulations and agreement templates to standardize contract drafting and reduce legal risks caused by negligence or errors.promotes lawful operations establishing a solid foundation for sustainable development.Internal Control
The Company strictly abides by regulatory requirements the Company Law the Articles of Association and other applicable
laws and regulations and continuously improves its internal control management system which centers on internal environ- Observing Business Ethics
ment risk assessment control activities information and communication and internal supervision to achieve comprehensive
coverage focused priorities and effective control. It has clearly defined the roles and responsibilities of the Board of Directors
the Audit Committee the Board of Supervisors and the management in the internal control mechanism and has established
and continuously improved its internal control system. The Company has formulated the Internal Audit System Internal Audit The Company actively builds a rigorous prevention and control system integrating anti-corruption and
Workflow Annual Audit Plan and Internal Audit Manual and conducts special audits ad hoc audits and exit audits for the anti-bribery efforts into all aspects of its operations demonstrating its sense of responsibility through
Company and its subsidiaries in an orderly manner. It also continuously provides professional training and vocational education concrete actions.to develop a tiered internal audit talent pool to meet the Company's development needs.Risk Management
Anti-commercial Bribery and Anti-corruption
The Company places high importance on risk management and consistently prioritizes the prevention of major risks. The Audit
Committee of the Company’s Board of Directors assesses operational risks supports and urges the management team to The Company continuously revises and improves documents such as the Implementation and Management System for Integrity
improve its risk management. At the same time the Company has clarified the roles and responsibilities of the Board of Supervision the Whistleblower Management System and the Code of Integrity for Procurement Personnel standardizing
Directors the Audit Committee the Board of Supervisors and the management in risk management work established and anti-commercial bribery and anti-corruption efforts. It strengthens the supervision and management of positions and areas
continuously improved its risk management system actively carried out risk control training and strengthened risk manage- prone to corruption to ensure the effective implementation of anti-bribery commitments and consciously resists unethical
ment through multiple measures. behavior such as seeking personal gain at public expense breach of trust and fraud thereby establishing a good corporate
Each year based on risks and opportunities in finance operations and compliance the Company organizes departments and image.subsidiaries to identify and assess risks and opportunities in accordance with the Procedures for Risk and Opportunity Control
and compiles a Risk and Opportunity Evaluation Form.The Company has established an Anti-Corruption and Anti-Bribery Control Procedure clearly stipulating:
The Company has not had any major risk incidents in 2024.·Personnel in key sections and positions are covered by a commitment system of commercial bribery prevention with person-
Regulatory Compliance in Business Practice nel at key positions signing an Integrity Commitment Letter for Procurement Personnel with the Company;
The Company attaches great importance to legal and compliant operations formulates compliance inspection plans conducts ·All customers suppliers service providers and contractors doing business with the Company must sign an Anti-Bribery
Commitment Letter for Suppliers;
monthly compliance inspections compiles a Compliance Inspection Nonconformity Follow-up Form regularly follows up on
·The Company has established a Sunshine Feedback Platform internally;
rectifications and conducts spot checks on key areas of compliance. Meanwhile the Company conducts compliance training ·Training and promotion of policies related to integrity are carried out.from time to time to cultivate a culture of compliance and enhance compliance management capabilities.Case Anti-unfair Competition
Company Conducts Compliance Training The Company places great importance on business ethics and is committed to establishing an honest and fair business environ-
ment. It strictly adheres to fair competition rules and has formulated an Integrity Management System to guide employees and
From November to December 2024 the Company held a management training program titled "Application of Compli- related stakeholders (such as customers and suppliers) to act in accordance with the law and uphold honesty and integrity. The
ance in Management Systems" to empower the management team in strengthening their compliance capabilities. Company guided its subsidiary Rixing Foundry to formulate the Business Ethics Code Control Procedures which specifies
requirements concerning conflict of interest acceptance of gifts protection and utilization of company assets and intellectual
property and protection of whistleblowers.
6768135.26
113.60
21.66
16.01
806.89
42.24
325370.08
57125.85
198529.81
29.00
994.86
9844.37
163.68
1607.38
56069.42
1005.71
266687.57
1607.38
57075.13
11451.75
1607.38
0.49
3.52
0.49
83877.5
Riyue Heavy Industry Co. Ltd. Environmental Social and Govern9an8c0e. 0(ESG) Report
82897.5
15.5
废水7.8
Key Performance Indicators 4.0
3.7
4.0
Environmental
1.5 (continued)
Indicator Unit 2024 Total exhaust gas emissions 100 million m3 165.05
Total water consumption 10000 metric tons 135.26 Exhaust pollutant emissions kg 329703.3
Fresh water consumption 10000 metric tons 113.60 NOX kg 3219.2
Water Recycled water consumption 10000 metric tons 21.66 SO2 kg 375.8
Proportion of recycled water consumption % 16.01 Exhaust Gas Volatile organic compounds (VOCs) kg 28252.8
Water consumption intensity (based on revenue) kg 294373.1metric ton / RMB 1000000 806.89 PM
Energy consumption intensity (based on revenue) 48.49 Other exhaust pollutants kg 3482.0metric ton / RMB 1000000
Set
Total energy consumption TCE 375098.66 Number of waste gas treatment facilities 104
Bituminous coal consumption metric ton 21329.61 Processing capacity of waste gas treatment facilities
100 million m3/year 793.96
Anthracite coal consumption metric ton 60945.30 Total solid waste generated
metric ton 43305.9
Coke consumption metric ton 236133.03 General industrial solid waste (non-hazardous waste) generated
metric ton 327.9
metric ton
Gasoline consumption metric ton 10.59 Hazardous waste generated 42527.2
Solid Waste Total solid waste disposed metric ton Diesel oil consumption metric ton 686.62 43447.5
Natural gas consumption 10000 m3 271.29 General industrial solid waste (non-hazardous waste) dispose
metric ton 308.2
Liquefied petroleum gas consumption metric ton 95.48 Hazardous waste disposed
metric ton 43305.9
Energy Photovoltaic power consumption TCE 1607.38 General industrial solid waste generation intensity (based on revenue)
metric ton / RMB 1000000 45.9
Hazardous waste generation intensity (based on revenue) metric ton / RMB 1000000 Outsourced electric power 10000 kWh 64980.51 0.4
Total GHG emissions tCO e
Outsourced heating power GJ 29475.62 2 1429335.93
By scope
Fossil energy consumption (direct) TCE 292624.53
Scope 1 emissions tCO
Non-fossil energy consumption (direct) TCE 1607.38 2
e 1077408.22
GHG Emissions Scope 2 emissions tCO2e 351927.72Purchased energy consumption TCE 80866.75
GHG emissions intensity (Scope 1)(based on revenue) tCO e / RMB 1000000
Clean energy consumption TCE 4903.58 2 139.88
GHG emissions intensity (Scope 2)(based on revenue) tCO2e / RMB 1000000Renewable energy consumption TCE 1607.38 45.69
Proportion of non-fossil energy consumption % 0.43 Amount of significant administrative penalties
imposed by environmental authorities due to environ- RMB 10000
Proportion of clean energy consumption % 1.31 0Investment in mental incidents
Proportion of renewable energy consumption % 0.43 Environmental
Protection Total investment in environmental protection RMB 10000 1927.43
Discharge of wastewater metric ton 83877.5 Environmental protection tax paid RMB 10000 22.41
Discharge of industrial wastewater metric ton 980.0
Discharge of domestic wastewater metric ton 82897.5
Emissions of Category II pollutants metric ton 15.5
Wastewater COD metric ton 7.8
Suspended solids metric ton 4.0
Other Category II pollutants in wastewater metric ton 3.7
Number of wastewater treatment facilities metric ton 4.0
Processing capacity of wastewater treatment facilities 10000 m3/year 1.5
165.05
69329703.370
3219.2
废气375.8
28252.8
294373.1
3482.0
104
793.96薪酬与福利
Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Social
(continued)
Indicator Unit 2024
Investment in occupational injury insurance for employees
Number of in-service employees 1 person 4747 RMB 10000 5.12
By gender Coverage of occupational injury insurance % 100
Male person 3729 Amount invested in workplace safety liability insurance RMB 10000Occupational 31.3
Female person 1018 Health and Safety Coverage of workplace safety liability insurance % 59.31
Management
By age Number of major safety incidents — 0
30 and below person 1233 Number of occupational disease cases — 2
31-50 person 2756 Occupational illness incidence rate % 0.04
Over 50 person 758 Care and Support investment in employee assistance RMB 10000 11
By degree of education Coverage of physical examinations and medical records % 100
PhD person 3 Number of employee training sessions time 1604
Master's degree person 19 Employee training expenditure RMB 10000 51.59
Bachelor's degree person 385 Total length of employee training hour 16918.49
Associate degree person 728 Average length of training per employee hour 3.56
Employee Below associate degree person 3612 Total number of employee training participants attendance 130019
Composition
By profession Coverage of employee training % 100
Production personnel person 3522 By gender
Sales person 54 Number of male employees trained person 3729
Technical personnel person 699 Training coverage of male employees % 100
Financial personnel person 22 Average training duration for male employees hour 3.83
Administrative personnel person 450 Number of female employees trained person 1018
Development
People with disabilities person 18 Training coverage of female employees % 100and Training
Ethnic minorities person 603 Average training duration for female employees hour 2.59
Newly recruited employees person 2673 Employee category
By recruitment channel Senior management employees trained person 6
Recent graduates person 85 Training coverage of senior management employees trained % 100
Social recruitment person 2588 Average training duration for senior management employees hour 3.77
Remuneration and Benefits Employee coverage rate for social insurance % 100 Middle management employees trained person 26
Total number of safety training sessions time 480 Training coverage of middle management employees % 100
Workplace safety investment RMB 10000 1927.43 Average training duration for middle management employees hour 25.13
Occupational Total duration of safety training hour 1542.45 Number of primary employees trained person 4715
Health and Safety
Attendance of safety training attendance 18082 Training coverage of primary employees % 100Management
Safety training coverage rate % 100 Average training duration for primary employees hour 3.44
Coverage of occupational injury insurance % 100 743
5.12员工满意度15.57
1 All full-time employees are in Chinese Mainland.
10086.00
31.3发生的产品和服务相关的安全与质量产品安全重大责任事故损害涉及的金额万元0
59.31与质量
710因健康与安全原因须撤回和召回的产品数量件072
3315.5客户满意度调查数量家41
2客户满意度调查覆盖率%100
0.04客户服务客户满意度得分分/%91.27
与权益
0.04客户投诉数量件1353
客户投诉解决完成率%100数据安全事件涉及的金额万元0泄露客户隐私事件数量件0研发投入金额万元
研发投入占营业收入比例%研发人员数量人308
研发人员占比%6.48申请专利数量件18发明专利申请数量件6实用新型专利申请数量件12外观设计专利申请数量件0授权专利数量件21发明专利授权数量件5实用新型专利授权数量件16外观设计专利授权数量件0有效专利数量件174商标权数量件9软件著作权数量件7供应商数量家874中国大陆供应商数量家868港澳台地区供应商数量家1海外供应商数量家5审查的供应商数量家28因不合规被中止合作的供应商数量家0因不合规被否决的潜在供应商数量家1
获得ISO 9000认证的供应商数量 家 129
获得ISO 14000认证的供应商数量 家 100
获得ISO 45001认证的供应商数量 家 100
签订《廉洁从业责任书》的供应商数量家868供应链重大风险与影响事件数量件0
应付账款（含应付票据）余额万元
应付账款（含应付票据）余额占总资产的比重%逾期未支付中小企业款项的金额万元逾期未支付款项金额万元缴纳税费金额万元公益活动志愿者参与人数人4756社区投资范畴所投入时间小时3736乡村振兴投入金额万元102041
100
91.27
1353
100
0
0
308
6.48
18
6
12
男性员工受训人数人37290
男性员工受训比例%10021
男性员工人均培训时长小时3.835女性员工受训人数人101816
女性员工受训比例%1000
女性员工人均培训时长小时2.59174按雇员类型划分9
67
100874
3.77868
Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report26 1
1005
25.1328
47150
1001
3.44 (continued) 129 (continued)
Number of employees participating in the employee
Employee satisfaction survey person 743 Number of ISO 14000 certified suppliers — 100
satisfaction Percentage of employees participating in the employeesatisfaction survey % 15.57 Supplier Number of ISO 45001 certified suppliers — 100rate Employee satisfaction score point 86.00 Management Number of suppliers that have signed the Integrity — 868
Commitment Letter
Amount involved in major liability incidents related
Product Safety to product and service safety and quality RMB 10000 0 Management of
and Quality Number of major risks and impact events in the — 0
Number of products withdrawn and recalled due to health —
and safety reasons 0
Supply Chain Links supply chain
Number of customer satisfaction surveys conducted — 41 Number of volunteers participating in public-interest activities person 4756
Social Welfare
Coverage of customer satisfaction survey % 100 Time invested in community investment activities hour 3736
Customer satisfaction score point 91.27 Rural Revitalization Amount invested in rural revitalization RMB 10000 1020
Customer Service
and Rights Number of customer complaints — 1353
Customer complaint resolution rate % 100
Amount involved in data security incidents RMB 10000 0
Number of customer privacy breach incidents — 0
R&D investment RMB 100 million 2.27
Innovation and Proportion of R&D investment to operating revenue % 4.84
Development Number of R&D personnel person 308
Proportion of R&D personnel % 6.48 Governance
Number of patent applications — 18
Number of invention patent applications — 6 Indicator Unit 2024
Number of utility model patent applications — 12 Number of members of Board of Directors person 9
Number of authorized patents — 21 Number of Independent Directors person 3Intellectual Property
Protection Number of invention patents authorized — 5 Non-independent directors person 6
Number of utility model patents authorized — 16 By educational background
Number of patents in force — 174 PhD person 1
Number of trademark rights — 9 Master's degree person 1
Number of software copyrights — 7 Organization Bachelor's degree or below person 7
Number of suppliers — 874 Structure and By gender
Functions
Number of suppliers in China (the Chinese mainland) — 868 Male person 7
Number of suppliers in China (Hong Kong Macao and Taiwan) — 1 Female person 2
Supplier Number of overseas suppliers — 5 By age
Management Number of suppliers reviewed — 28 3150 person 3
Number of suppliers suspended for non-compliance — 0 Over 50 person 6
Number of potential suppliers rejected for non-compliance — 1 Number of meetings of the Board of Directors time 7
Number of ISO 9000 certified suppliers — 129 Number of meetings of the Audit Committee time 6
3
1
1
3
73174
按学历划分平等对待监事会硕士人数人1中小企业监事会本科及以下人数人2董事会博士人数人1董事会硕士人数人1董事会本科及以下人数人7按性别划分董事会男性人数人7董事会女性人数人2按年龄划分
Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
6
7
6 (continued) Company Names and Abbreviations
Number of meetings of the Remuneration and Assessment Committee time 3
Number of meetings of the Nomination Committee time 1
Number of meetings of the Strategy Committee time 1 Abbreviation Full Name
Number of members of Board of Supervisors person 3 Riyue Riyue Heavy Industry Co. Ltd.Employee-elected Supervisors person 1 Rixing Foundry Ningbo Rixing Foundry Co. Ltd.External Supervisors person 2 Essence Metal Ningbo Essence Metal Machinery Co. Ltd.By educational background Yuexing Metal Ningbo Yuexing Metal Machinery Co. Ltd.Master's degree person 1 Riyue Nuclear Equipment Ningbo Riyue Nuclear Equipment Manufacturing Co. Ltd.Bachelor's degree or below person 2 Precision Manufacturing Ningbo Riyue Essence Precision Manufacturing Co. Ltd.Organization By gender Mingling Technology Ningbo Mingling Technology Co. Ltd.Structure and Male person 2 Riyi Intelligent Ningbo Riyi Intelligent Equipment Co. Ltd.Functions
Female person 1 Gansu Riyue Riyue Heavy Industry (Gansu) Co. Ltd.By age Jiuquan Zhexinneng Jiuquan Zhexinneng Wind Power Co. Ltd.
31-50 person 2 Zhixin Testing Xiangshan Riyue Zhixin Testing Technology Co. Ltd.
Over 50 person 1 Riyue New Energy Ningbo Riyue Rixing New Energy Technology Co. Ltd.Number of meetings of the Board of Supervisors time 7 Benxi Liaocai Benxi Liaocai Metal Material Co. Ltd.Number of senior management employees person 6
By educational background
Senior management with Master's degree person 1 Indicators Index
Senior management with Bachelor's degree or below person 5
By age Shanghai Stock Exchange
SZSE Self-Regulatory Guidelines No. 14 for Compa-
30-50 person 3
Chapter nies Listed on Shenzhen Stock Exchange—Sustain-
Over 50 person 3 ability Report (For Trial Implementation)
Anti-commercial Proportion of BoD members receiving anti-bribery andanti-corruption training % 100 ESG Management Communication with StakeholdersBribery and Anti-
corruption Percentage of management participating in anti-commercialbribery and anti-corruption training % 100 Environmental Impact Management Environmental Compliance Management PollutantGreen Quality Enhancement Emissions and Waste Treatment
Performance presentation time 3 Low-carbon Innovation Strengthening Resource Management Energy utilization water utilization circular economy
Number of investor exchanges time 19 For Sustainability Combating Climate Change Combating Climate Change
Investor Relations
Management Number of investors received attendance 439 Innovation-Driven Development Innovation-driven Development
Number of platform responses time 27 Valuing Human Resources Employees
Number of investor calls answered time 399 Driven by Innovation Strengthening Quality Management Product and service safety and quality data securityand customer privacy protection
Shareholders' Number of General Meetings of Shareholders held time 3
Weaving the Future Together
Consolidating Supply Chain Management Supply Chain Security
Rights and Interests Attendance rate of BoD members at the General Meetings of Shareholders % 100 Spreading Social Warmth Social Contribution Rural Revitalization
Number of periodic reports disclosed — 4 Optimizing the Governance System /
Information
Disclosure Number of interim announcements released — 80 Lean Foundation Investor Relations Management Communication with Stakeholders
Joint Promotion of
Number of other documents disclosed — 51 Prosperity Strengthening Internal Risk Control /
Risk Management Amount involved in lawsuits or significant administrative Anti-commercial Bribery Anti-corruption andpenalties due to the Company's unfair competition RMB 10000 0 Observing Business Ethics Anti-unfair Competition
75 76Riyue Heavy Industry Co. Ltd. Environmental Social and Governance (ESG) Report
Questionnaire
Dear reader
Thank you very much for reading this ESG Report. To better provide effective information to you and other
stakeholders continuously improve the quality of this report and enhance our sustainable development capabili-
ties we sincerely invite you to evaluate this report and provide valuable comments and suggestions.You may choose the following methods to provide your feedback or suggestions:
Address: Board Office Riyue Heavy Industry Co. Ltd. 20th Floor Riyuexingzuo Building No. 7 Tianzhi Lane
Shounan Subdistrict Yinzhou District Ningbo Zhejiang China
Postal Code: 315100
Tel.: 0574-55007043
Email: stock@riyuehi.com
Feedback Questionnaire
1. What is your identity in relation to Riyue
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4. To what extent is the information you are concerned about disclosed in this report
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5. What other information that you are concerned about is not reflected in this report
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7778
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