Shanghai Huayi Group Corporation Limited(600623) : 2021 annual social responsibility report

Shanghai Huayi Group Corporation Limited(600623)

2021 Social Responsibility Report

In accordance with the company law, the securities law and other laws and regulations, as well as the spirit of the notice on disclosure of 2021 annual report of listed companies and other relevant documents of Shanghai Stock Exchange, and in combination with the company’s operation in 2021, objectively reflect the company’s social responsibilities to shareholders, creditors, employees, customers, consumers, communities and poverty alleviation. [company profile]

Shanghai Huayi Group Corporation Limited(600623) (hereinafter referred to as “the company”) is a large state-owned listed company, which is mainly engaged in five core businesses: energy and chemical industry, green tires, advanced materials, fine chemicals and chemical services. It has basically formed a “manufacturing + service” dual core driven business development model and an integrated development system of upstream and downstream industrial chains. Among them, the main products of energy and chemical business include basic chemicals such as methanol, acetic acid, ethyl acetate and syngas and clean energy products, which are widely used in the fields of medicine, agriculture, construction, textile and new energy vehicles. It is a leading clean coal comprehensive utilization company in China; The main products of green tire business include truck tires, passenger tires, engineering tires, etc. the products are widely used in trucks, buses, passenger vehicles, mining and agricultural vehicles, and provide original supporting facilities for many automobile manufacturers; The main products of advanced materials business include acrylic acid and ester, acrylic acid catalyst, super absorbent resin, etc. the products are widely used in coatings, adhesives, synthetic rubber, water treatment, sanitary products and other fields; The main products of fine chemical business include industrial coatings, pigments, inks, daily chemicals, etc. the products are widely used in home appliances, automobiles, high-speed railways, aerospace, marine engineering, construction, medicine, food, cosmetics and other fields; Chemical service business mainly includes chemical trade, chemical investment and information technology, providing corresponding supporting trade, investment and information services for the main chemical industry.

[company brand]

The company has a series of famous trademarks such as Chinese famous brands, Chinese time-honored brands, Shanghai time-honored brands and Shanghai famous brands. Among them, the products of China Time-honored brands and Shanghai time-honored brands include “shuangqian” brand tires, “Feihu” brand paint, “eye” brand paint, “Guangming” brand paint, “Yipin” brand paint, “Peony” brand ink, “white elephant” brand battery, “bee flower” brand soap and “Huili” brand sports shoes.

[corporate culture]

Vision: to build a world-class enterprise with international competitiveness and influence and become a company needed by the society and respected by people;

Development concept: green chemical industry, beautiful life!

Development strategy: green development, innovative development, high-end development, cross city development and integrated development;

Development principles: intelligent manufacturing, value growth, benefit improvement and overseas development;

Values: unity of knowledge and practice, constant morality;

Enterprise spirit: openness, responsibility, integrity, hard work and inclusiveness;

Brand connotation: Sunshine Huayi, people-oriented, teamwork and self-improvement;

Behavior pursuit: create value for customers, bring returns to shareholders, provide a stage for employees and contribute to the society.

[honors]

The company won the title of advanced unit of Party building, ideological and political work and advanced unit of news publicity in the petroleum and chemical industry, and Wang Xia, President of the company, won the title of “excellent entrepreneur in Shanghai”. Its Shanghai Huayi New Material Co., Ltd. was rated as a national “smart manufacturing benchmarking enterprise” in 2021, the acrylic acid catalyst R & D project team of Shanghai Huayi New Material Co., Ltd. was awarded the National worker pioneer in 2021, and the acrylic acid device branch was awarded the advanced grass-roots party organization of Shanghai; The special epoxy adhesive team of Shanghai Huayi resin Co., Ltd. was awarded the pioneer of workers in Shanghai; Shuangqian group (Xinjiang) Kunlun Tire Co., Ltd. won the advanced collective in poverty alleviation of Xinjiang Uygur Autonomous Region, and AI shanbalati and Ma Jianguo won the advanced individual in poverty alleviation of Xinjiang Uygur Autonomous Region. The Party committee of Neng chemical company and the acrylic acid plant branch of Huayi new materials company were awarded the advanced grass-roots party organization of Shanghai SASAC system; Anhui Huayi Chemical Co., Ltd. won the “13th five year plan” national advanced unit of energy conservation in the petroleum and chemical industry, and won the benchmark enterprise (methanol) as the leader in energy efficiency and water efficiency in 2020. Liu Junhua of shuangqian group (Chongqing) Tire Co., Ltd. won the National May Day Labor Medal; Xing Yi of Shanghai Huayi energy and Chemical Co., Ltd. won the Shanghai may day labor medal.

2021 is the first year of the 14th five year plan. Facing the complex, severe and uncertain economic environment, the company takes Xi Jinping new era socialism with Chinese characteristics as the guidance, comprehensively implements the new development concept, coordinates epidemic prevention and control and business development, practices the mission of state-owned enterprises, focuses on building a green ecological modern chemical industry, integrates social responsibility into enterprise management and daily operation, and strives to achieve economic benefits The unification of environmental benefits and social benefits has promoted the joint sustainable development of enterprises and stakeholders. The main economic indicators have reached a new record, reached a new level of development, and achieved a good start in the 14th five year plan.

1、 Focus on the core business and realize the preservation and appreciation of assets

The company adheres to “development is the first priority”, takes creating greater value for shareholders as the fundamental starting point of operation, and perseveres to build a high price value chain, grow the industrial chain and strengthen the supply chain around the main business. In 2021, the main business sectors overcame the impact of the epidemic, seized the market opportunity, continued to reduce costs and increase efficiency, the overall operation of the plant was stable, continued to achieve new achievements and create a new situation, the quality and efficiency of economic operation reached the best level in history, and high-quality development reached a new level. In 2021, the company achieved a main revenue of 39.44 billion yuan and a total profit of 4.45 billion yuan. The company made every effort to promote the construction of Qinzhou chemical new material integration base, accelerated the main construction, basically completed the civil construction of each device, and entered the stage of equipment and pipeline installation, laying the development space of the group in the next decade.

The company continued to reduce costs and increase efficiency, promote lean production, strengthen centralized fund management, promote the appreciation and efficiency of stock assets, achieved remarkable results in all work, and steadily improved the operation efficiency of the company.

The company fully promotes the construction of digital Huayi and starts Huayi brand. Officially implement the “three-year action plan of digital Huayi”, build a group level digital technology empowerment platform, establish a digital assessment and incentive mechanism, and promote the implementation of data strategy and data governance system. Steadily promote the digital Benchmarking Project and form the company’s new core competitive advantage through digital empowerment. Huayi new materials Co., Ltd. was rated as the national “benchmark enterprise of Intelligent Manufacturing” in 2021. We will improve the corporate identity system (CIS), host the “Zhichuang Guochao” Summit Forum and other activities, strengthen brand marketing and promotion, and enhance the influence of time-honored brands such as soap making and Huili.

Since its listing in 1992, the company has paid 17 cash dividends. By 2020, it has distributed 2338257500 yuan of cash dividends, one bonus share and one increase. In 2021, it plans to distribute 4.2 yuan of cash dividends (including tax) for every 10 shares, with a total distribution of 89520883116 yuan.

2、 Build a strong security line and protect the city Shenzhen Ecobeauty Co.Ltd(000010)

The company firmly establishes the concept that safety and environmental protection are the lifeline of chemical enterprises, earnestly implements the spiritual requirements of a series of important instructions and instructions of Xi Jinping general secretary on safety production and the decision-making and deployment of the municipal Party committee and the municipal government, adheres to the development concept of “green chemical industry and better life”, always puts safety and environmental protection work in the first place, and strictly implements the laws and regulations of safety, environment and environmental protection, Solidly promote the implementation of the three-year action plan for special rectification and improvement of work safety, consolidate the “same responsibility of the party and government, double responsibility of one post, joint management and accountability for dereliction of duty” and the safety responsibility of all employees, deeply cultivate the company’s safety culture, deepen the dual mechanism of risk control and hidden danger investigation, ensure the effective operation of the HSE management system, and there are no major safety accidents, major environmental events and major social impact events throughout the year, The company’s safety and environmental protection are generally under control.

Improve the safety management system and consolidate the safety management responsibility. Implement the double director system of the group’s safety committee, organize the study of the spirit of Xi Jinping general secretary’s important discussion and instructions on work safety, learn and implement the newly revised work safety law and solid waste law, implement the dual prevention mechanism of risk hierarchical control and hidden danger investigation and treatment, implement the three-year action plan for improving the group’s special rectification of work safety (20202022), and complete the group’s work safety responsibility system, environmental protection Revision of safety production accident report and other systems. For the responsibility of compaction safety, leaders at all levels went deep into the grass-roots level to carry out “three ones” activities more than 3000 times. Continuously improve intrinsic safety, and improve intrinsic safety through advanced control means such as digitization, process improvement and APC application. Summarize and form the HSE management toolkit, consolidate the group’s safety management experience and effective practices in recent years, and include 18 work standards such as eight bans on safety production, leaders contacting key device teams for safety learning, “three ones” action and “seven thoughts and seven don’t do” into the HSE Management Toolkit. Version 2.0 of “safety learning and examination platform” was launched, the group HSE online knowledge competition was held, and the “micro vision classroom” module was developed and put into use. Carry out the talent inventory of safety and environment system, organize 20 HSE trainings, and the number of trainees is nearly 800. A total of 1072 actual drills and desktop exercises of the emergency plan were completed throughout the year to improve the familiarity of front-line employees with the emergency plan. Improve the construction of information platform. In 2021, the company will build the map system of dangerous chemicals and major hazard sources, and further strengthen the prevention and control of safety risks through information and digital means.

Practice green development and create a green factory. Establish and improve the group’s green environmental protection management system and formulate the three-year (20212023) action plan for the establishment of a green factory. Shanghai Huayi coating Co., Ltd. was rated as the “green factory” in the petroleum and chemical industry in 2021, and many products such as Huayi new materials and shuangqian company were shortlisted as national “green products”. Strengthen the construction and stable and effective operation of pollution prevention and control facilities, establish environmental management accounts, and ensure that the types, concentrations and emissions of pollutants actually discharged meet the licensing requirements. Strengthen the legal and compliant disposal of solid and hazardous wastes, and carry out the second stage treatment of VOCs “one plant, one scheme” 2.0. Implement hierarchical control in autumn and winter, fully escort important activities such as “China Expo” and “Flower Expo”, implement special safeguard action control measures, organize plan drills, and successfully complete the environmental protection work.

Start subject research and standardize various monitoring reports. The “double carbon” goal is the accelerator for the transformation and development of the industry. The company launched the research work of the research project of carbon peak and carbon neutralization strategy, including policy research, carbon emission inventory, carbon peak goal research, carbon emission reduction methods and paths research, etc. Some subsidiaries of the company are included in the Shanghai carbon emission quota management unit, and carry out their own carbon emission monitoring, reporting, performance and payment in accordance with the relevant provisions of the Shanghai carbon emission management trial measures; Anhui Huayi Chemical Co., Ltd., a subsidiary of the company, won the title of “leader” in energy efficiency of methanol industry in 2021 announced by the Ministry of industry and information technology and the State Administration of market supervision and administration.

3、 Promote industrial innovation and promote sustainable and healthy development

The company always adheres to the “innovative development” strategy, adheres to the core position of innovation in business development, adheres to scientific research innovation and management innovation in open cooperation, strengthens internal control and prevents risks, and promotes the company to achieve high-quality, sustainable and healthy development.

Deepen the integration of technological resources and accelerate the industrialization of major scientific and technological achievements. The company established the promotion mechanism of major scientific and technological research projects, launched the management measures for major scientific and technological research projects, accelerated the industrialization of scientific research achievements and the upgrading of existing product technologies, reduced costs and increased efficiency, and implemented a number of independent technical achievements such as Huayi pulverized coal vaporizer, coal to ethylene glycol and acetic acid new catalyst system; Establish and improve the technological innovation system, continue to promote the construction and integrated development of Huayi technology solution platform, strengthen the sharing and integration of internal and external R & D resources, and improve the integrated R & D capability; Actively connect with national strategic emerging industries, integrate into the construction of Shanghai Science and innovation center, and undertake and implement 17 government science and technology projects in the fields of integrated circuits, new chemical materials, aerospace, green environmental protection and so on, including 3 national projects.

We will strengthen intellectual property management and promote the creation of intellectual property rights. The company earnestly implemented the enterprise intellectual property management specification, realized the comprehensive coverage of subsidiaries of intellectual property management system, and completed the mid-term assessment of patent pilot enterprises and the supervision and audit of intellectual property standard implementation certification; Further extend the scope of intellectual property protection, strengthen the pre retrieval, in-process application and post maintenance of patents and trademarks, and improve the control level of the whole process of intellectual property creation, protection, application and management; We will deepen the layout of patent mining, promote the application of high-value patent layout, and strengthen the intellectual property output of scientific research investment. In the whole year, 129 patents were applied for and 89 were authorized.

Strengthen compliance management and improve risk prevention and control ability. The company adheres to the rule of law, deeply studies and understands Xi Jinping rule of law thought, implements leadership responsibilities, actively carries out law popularization publicity, and improves leading cadres’ awareness and thinking of the rule of law. Promote the informatization construction of legal management and realize the whole process management of litigation cases; Formulate compliance management measures and integrity compliance standards, and establish a compliance management system. Further promote the group’s three-year comprehensive reform work plan, implement the “eight special actions” of the municipal SASAC, establish the group’s leading group and working group to prevent and resolve major risks in the economic field, actively promote standardization construction and improve the ability of risk prevention and control. Strengthen the system construction, revise and complete the 2021 group system compilation (V2.0), and study the system volumes of different companies to realize the full coverage of the system. Adhere to carrying out comprehensive audit and internal control evaluation, and carry out special audit around the group’s important business and key areas, so as to eliminate hidden dangers in multiple directions, levels and angles, so as to ensure the prevention and resolution of major risks.

4、 Adhere to people-oriented and stimulate the vitality of employees

The company adheres to the concept of relying wholeheartedly on the masses of employees to run the enterprise, takes improving employees’ sense of happiness and security as the starting point and foothold of work, optimizes the mechanism of caring for employees, provides opportunities for experience and promotion, strengthens training and training, improves employees’ comprehensive ability, ensures the reasonable growth of employees’ income, and allows employees to share the achievements of the company’s reform and development.

Strengthen the construction of talent team and stimulate the entrepreneurial vitality of officers. The company integrated the recruitment needs of subordinate enterprises and released more than 200 jobs in total throughout the year, providing jobs for the society. We will continue to implement the plan for fresh graduates and management trainees to reserve high potential talents for the company. The company insists on doing a good job of talent inventory for key positions, drawing talent map, building succession echelon, and forming the m-sequence and p-sequence roster of outstanding young cadres of the group. The company deepened the mechanism reform, implemented the medium and long-term incentive policies for A-share restricted stocks, continued to promote the innovation and incentive realization of “one company, one policy” mechanism, realized the full coverage of incentive mechanism, established and improved the incentive mechanism library, determined 10 incentive mechanism tool packages, and implemented the mechanism “temsector and operable”. The company strictly abides by and fully implements the labor contract law of the people’s Republic of China and other laws and regulations. The signing rate of labor contracts is 100%, the salary of employees is paid in full and on time, and the social insurance and housing accumulation fund are paid in full and on time for employees according to law. This year, the company also raised the standard of night shift allowance for front-line employees,

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