Meihua Holdings Group Co.Ltd(600873)
2021 Social Responsibility Report
The board of directors and all directors of the company guarantee that there are no false records, misleading statements or major omissions in the contents of this report, and bear individual and joint liabilities for the authenticity, accuracy and completeness of its contents.
This report is the company's efforts in fulfilling its social responsibilities and striving to be an excellent corporate citizen. It does not constitute an offer or suggestion for the company's stock trading. The forward-looking descriptions of future plans and development strategies involved in it do not constitute the company's substantive commitment to investors. Investors are reminded to pay attention to investment risks.
March 11, 2002
(I) introduction to the report: This report is the tenth corporate social responsibility report issued by Meihua Holdings Group Co.Ltd(600873) (hereinafter referred to as Meihua Holdings Group Co.Ltd(600873) , Meihua or company, listed company and meihua group). Based on the principles of truthfulness and objectivity, the report comprehensively reviews the practical contents of Meihua Holdings Group Co.Ltd(600873) in striving for outstanding corporate citizens and fulfilling social responsibilities in 2021.
(II) time scope and organizational scope: the year 2021 (reporting period) in the report refers to the period from January 1, 2021 to December 31, 2021, and some data and contents exceed the above scope. This report covers the company, wholly-owned subsidiaries and their subsidiaries.
(III) release cycle: This report is an annual report, which is released simultaneously with Meihua Holdings Group Co.Ltd(600873) annual report. This report was deliberated and adopted at the 28th meeting of the ninth board of directors and released to the public.
(IV) data source: in case of any discrepancy between the data in this report and the 2021 annual report, the 2021 annual report shall prevail.
(V) access to the report: the report is published in both printed and electronic forms, and the contents of the two reports are the same. For the paper version, please contact the Securities Department of the company, and for the electronic version, please log in to the website of Shanghai Stock Exchange http://www.sse.com.cn. Or log in to the company website（ http://www.meihuagrp.com. ）Query.
(VI) contact number
Tel: 03162359652
Fax: 03162359670
Email: [email protected].
Contact address: No. 66 Huaxiang Road, Langfang Economic and Technological Development Zone, Hebei Province (065001) II. Basic information of the company
The company is a large group company focusing on synthetic biotechnology and mainly engaged in the R & D, production and sales of amino acid series products. It has three production bases in Tongliao, Inner Mongolia, Wujiaqu, Xinjiang and Baicheng, Jilin. It has two R & D centers in Langfang and Shanghai. The main products include:
Animal nutritional amino acid products: lysine, threonine, tryptophan, feed grade valine, monosodium glutamate residue, starch accessory products, feed fiber, corn germ, bacterial protein, etc
Food taste character optimization products: glutamate, sodium glutamate, disodium nucleotide, disodium inosine, food grade xanthan gum, trehalose, natamycin, etc
Human medical amino acids: glutamine, proline, leucine, isoleucine, pharmaceutical grade valine, inosine, guanosine, adenosine, pullulan polysaccharide, etc
Other products: Petroleum grade xanthan gum, medicinal capsule, bio organic fertilizer, etc
In 2021, although the prices of main raw materials increased in varying degrees, the company continued to improve its operation and management level, make scientific decisions, seize the favorable opportunity of the market, and rely on the advantages of scale, multiple products and cost. The price increase of main products monosodium glutamate, threonine, lysine, xanthan gum and other feed amino acid products was greater than that of raw materials, The overall profitability of the company's main products was further improved. During the reporting period, the company overcame the impact of covid-19 epidemic and achieved an operating revenue of 22.837 billion yuan, a year-on-year increase of 33.94%, and the net profit attributable to the owner of the parent company was 2.351 billion yuan, a year-on-year increase of 139.40%.
The company has been implementing an active profit distribution policy to build a value investment enterprise. While ensuring the continuous development of the business and continuously improving the return to shareholders, the company has issued a total cash dividend of 4.7 billion yuan since 2016, accounting for 90.64% of the total net profit attributable to the parent company during the period. While the company's scale continues to expand and the dividend is high, the cash flow remains stable and abundant. The net cash flow from operating activities in 2021 was 3.67 billion yuan.
After deliberation and approval at the 28th meeting of the 9th board of directors, the profit plan (plan) for 2021 is: Based on the total share capital registered on the date of equity distribution (deducting the number of shares in the special account for share repurchase) as the base, distribute cash dividends of 4.0 yuan (including tax) to all shareholders for every 10 shares, and it is expected to distribute cash dividends of about 1.239 billion yuan (including tax). The plan needs to be submitted to the general meeting of shareholders for deliberation, and the actual amount of distribution shall be subject to the announcement on the implementation of equity distribution issued by the company. 3、 Corporate governance
In accordance with relevant laws, regulations and the articles of association, We have formulated the rules of procedure of the general meeting of shareholders, the rules of procedure of the board of directors, the rules of procedure of the board of supervisors, the decision-making system of connected transactions, the working system of independent directors, the rules of procedure of the strategy committee of the board of directors, the rules of procedure of the audit committee of the board of directors, the rules of procedure of the remuneration and assessment committee of the board of directors and the rules of procedure of the nomination committee of the board of directors The foreign investment management system and other relevant systems clarify the scope of rights and responsibilities and working procedures among the general meeting of shareholders, the board of directors, the board of supervisors and the management, and provide an effective institutional guarantee for the standardized operation of corporate governance. The board of directors of the company consists of four special committees: Strategy Committee, audit committee, remuneration and assessment committee and Nomination Committee, which are respectively responsible for the company's development strategy, audit, assessment, nomination, selection and management of directors and senior managers. The general meeting of shareholders, the board of directors and the board of supervisors of the company can operate in a standardized and effective manner in accordance with relevant laws, regulations, normative documents and the articles of association.
In accordance with the provisions of the basic norms of enterprise internal control and its supporting guidelines and other internal control supervision requirements, the Audit Department of the company actively and effectively performed the responsibilities of supervision, inspection and risk control according to the actual development needs of the company's business and the company's internal control system and evaluation methods. During the reporting period, the Audit Department of the company actively and effectively performed the responsibilities of supervision, inspection and risk control according to the annual work plan and combined with the actual operation and management of the company, On the one hand, it carried out basic compliance inspection and consolidated the basic management of internal control. On the other hand, it carried out special inspection for key business areas to identify and prevent enterprise operation and management risks, which played a positive role in enterprise development.
During the reporting period, the audit department completed the improvement and publicity and implementation training of the sales internal control risk manual, and continued to optimize and improve the internal control management system through inspection. By employing Deloitte's professional internal control team, the sales internal control management process is comprehensively sorted out and improved. We sorted out 17 core control processes in key business areas such as customer management, contract management, credit management, order management and freight management, issued risk control manuals, clarified risk control standards, and effectively standardized and guided the daily work of the business.
For the implementation of the manual, the audit department carries out training for the salesmen, internal affairs and Financial Accountants of the sales company and the business division, and explains the key business risk points and control requirements to ensure the effective implementation of the manual. In the first half of the year, the special rectification notice was issued for the problems in the implementation of the insurance contract, such as the non implementation of the insurance business in the first half of the year, and the rectification notice was issued for the problems in the implementation of the insurance business in the first half of the year.
In 2021, the company continued to deepen the organization and carry out the special inspection on the procurement of the three bases, improve and optimize the procurement internal control risk matrix through risk identification, and focus on the inspection, inventory and daily tracking and control of the procurement and storage of corn in the three places. Through inspection, the implementation of procurement is still not in place in terms of contract approval, contract execution, order management, price inquiry and comparison management, advance payment verification and so on. It is necessary to continuously consolidate the basic management of procurement, reduce operational errors, and seriously enforce the execution of procurement contracts and orders. With the continuous expansion of the company's business scale, the audit department has strengthened the management and control of corn storage. On the one hand, it identifies problems and risks through inspection and inventory, on the other hand, it does daily tracking and control to prevent and reduce the quantity and quality risks of storage.
In terms of basic compliance inspection and supervision, we carry out daily compliance inspection on funds, inventories, assets and expenses, and gradually reduce or eliminate basic problems such as inadequate implementation and wrong operation through training and inspection. For the problems existing in the inventory, such as the absence of material cards or the untimely updating of material cards, the non strict implementation of the system for asset allocation, handover and scrapping, and the untimely reimbursement of travel expenses, the finance and business department shall actively implement rectification, establish a continuous training and inspection mechanism, reduce the frequency of problems and gradually eliminate them, and improve the management requirements and control process for new problems, Gradually consolidate the foundation of enterprise control and management.
In order to effectively prevent and control the compliance risk of internal control, the corporate governance and operation management attach great importance to it, increase the basic management, clarify the responsible department, person in charge and deadline for rectification, and include the completion of rectification in the performance assessment of the leaders of the responsible department, so as to promote the responsible department to earnestly implement, actively and effectively The rectification of internal control defects was completed as planned, so that the rectification rate reached 100%. As of December 31, 2021, there were no major and important internal control defects, which effectively promoted the achievement of the company's business development objectives. 4、 Environmental protection and energy conservation and emission reduction
As a leading enterprise in the industry, the company always attaches importance to the management and investment in environmental protection. In terms of energy consumption control, energy conservation and emission reduction, green manufacturing and so on, with the purpose of synchronous development and common improvement of economy and environmental protection, the company focuses on building an environment-friendly and resource-saving enterprise. In the context of promoting carbon neutralization during the 14th Five Year Plan period, in response to the national call to reduce energy consumption and carbon emissions, the company established an energy conservation and Emission Reduction Committee, which is composed of chief engineers of products, equipment, processes and environmental protection. Through the research on the dual control policy of energy consumption, the company further improved the process roadmap of each production line within the company, Seize the strategic opportunity of national industrial structure adjustment and make further progress towards green manufacturing and intelligent manufacturing.
Measures for energy conservation and emission reduction in 2021 include:
First: consolidate the foundation, performance traction, and strengthen the management of energy conservation and emission reduction
In order to fight the "hard battle" of achieving carbon peak and carbon neutralization and do a good job in energy conservation and emission reduction, Meihua Group continued to carry out energy consumption cost assessment in 2021, organized the promotion of energy-saving projects, actively formulated key work plans for each stage, set positive and negative assessment incentives, and continuously reduced the company's unit energy consumption. In the production and operation, Meihua focuses on the management of high energy consuming facilities and production links, and adopts energy-saving methods such as heat recovery to further reduce the energy consumption in the production process. The company regularly organizes the inspection and maintenance of various facilities to improve the production efficiency and reduce the phenomenon of energy running, emitting, dripping and leakage. Cultivate the energy-saving awareness of all staff in daily life, such as inter departmental energy conservation and emission reduction team, summarize, exchange and promote energy-saving experience, and promote various energy-saving measures in the office of each base.
Second: optimize the production process and process, and speed up the transformation of energy-saving technology
In 2021, Meihua carried out a number of technical transformation and energy recovery projects, such as the replacement and upgrading of steam turbines in self owned power plants, reducing the feed water of starch by-product tube bundles in the production process, residual heat recovery, etc., effectively saving the use of steam and primary energy.
Meihua group has deeply implemented the concept of green development, vigorously developed circular economy, ensured the discharge of pollutants up to the standard, strictly controlled the total discharge of pollutants, and made positive contributions to improving regional environmental quality. And it has played a leading role in promoting the green development of the industry. In the past two years, Inner Mongolia Tongliao company and Xinjiang Wujiaqu company have successively won the title of national "green factory", Xinjiang Wujiaqu company has won the first batch of national green ecological design demonstration enterprises of the Ministry of industry and information technology, Inner Mongolia Tongliao company and Jilin Baicheng company have won the titles of energy-saving and environmental protection leading enterprises issued by the industry association. 5、 Safety production and quality control
In terms of safety production, the goal is to stick to the safety red line and build a solid safety bottom line. During the reporting period, based on the original safety work, the company proposed that all employees actively participate in small improvements and strive to create a safe and healthy working environment, so as to achieve the effect of "small improvements and great effects". In 2021, various production bases have completed many small improvements, which not only provided guarantee for the safety of employees, It also saves a certain production cost.
During the "safe production month" in 2021, the HSE management department took "implementing safety responsibility and promoting safety development" as the guiding ideology, organized and carried out safety board newspaper, full staff training, fire drill and other activities, and launched an original small video collection activity with safety as the theme, which not only improved the sense of participation of cadres and employees in the safe month, but also effectively publicized the safety culture Sounded the safety alarm.
During the reporting period, the HSE management system project was officially launched. The project aims to solve the pain points existing in the company's HSE operation and establish an integrated HSE management system based on the management methods and achievements implemented since 2018 and in accordance with the standard requirements of is014 Dongrui Food Group Co.Ltd(001201) 5 environmental management system and is045 Dongrui Food Group Co.Ltd(001201) 8 occupational health and safety management system, Realize the essential safety management and improvement. After the system is completed, it will also apply for foreign system certification, and finally have the "vitality" of independent operation. External certification bodies are specially invited to guide the establishment of the system, which mainly adopts the mode of establishing a system benchmarking workshop in the early stage and promoting replication in the later stage. The main processes include: 1) consolidating the management foundation, identifying, evaluating and controlling hazard sources and environmental factors from bottom to top, combing control methods and laying a good management foundation. 2) HSE standardized management, dredge the management process from top to bottom, dredge the HSE work logic and process, integrate the HSE management system into the management process of each department, and form the two-level HSE management system management process of the group headquarters and the base. 3) To cultivate the future team, excellent personnel are preferred to enter the project team as the seed of future HSE system management and training guidance, so as to leave system personnel who understand the system for production and build a follow-up talent echelon for the HSE system. 4) Create HSE culture, and strive to build the concept of "no safety environment, no work" into a corporate culture recognized by all employees.
In order to further improve the quality awareness of all cadres and workers and continuously promote the goal of "0" nonconforming products through process control, the quality department carefully planned, organized and led various production bases to carry out rich theme activities of "quality month" during the reporting period.
During the reporting period, the company carried out the quality awareness training of "abandoning the theory of only output, and red line control is higher than economic interests" in all bases, emphasizing that any activity must be safe and guaranteed, environmental protection can meet the standards, employees' occupational health can be fully respected, and the quality must be 100% qualified; It cannot be produced at the expense of employees' health, environmental pollution and unqualified quality. 6、 Employee care
The company adheres to the management concept of creation and sharing, and encourages employees to create more benefits
