Zhejiang Dayuan Pumps Industry Co.Ltd(603757)
2021 Social Responsibility Report
Zhejiang Dayuan Pumps Industry Co.Ltd(603757) the board of directors and all directors 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 prepared in accordance with the requirements of Shanghai Stock Exchange self regulatory guidelines for listed companies of Shanghai Stock Exchange No. 1 - standardized operation and guidelines for the preparation of reports on the performance of social responsibilities by companies, and in combination with the specific conditions of Zhejiang Dayuan Pumps Industry Co.Ltd(603757) (hereinafter referred to as "the company" and "the company"). The Zhejiang Dayuan Pumps Industry Co.Ltd(603757) 2021 annual social responsibility report introduces the main situation of the company's performance of social responsibilities to shareholders and creditors, employees, suppliers and customers, environment and society and other stakeholders in its operation and management and related activities in 2021. It is hoped that this report can further enhance the understanding of all sectors of society about the company, enable the company to accept the supervision of all sectors of society and better perform its social responsibilities, In order to promote the sustainable development of the company in the future.
Part I overview of the company
1、 Basic information of the company
Zhejiang Dayuan Pumps Industry Co.Ltd(603757) was founded in 1998 and listed on Shanghai Stock Exchange in 2017. The company is mainly engaged in the R & D, production, sales and provision of relevant services of various pumps. It is a global well-known brand civil water pump provider with decades of brand history. It is a high-tech enterprise and leading enterprise in China's shielded pump industry. The company's products are mainly divided into two categories: one is the civil water pump represented by small submersible pump, well submersible pump, land pump and other products, which are widely used in agriculture, forestry and animal husbandry, enterprise production and residents' life, urban and rural construction, environmental protection and water management and other fields; The other is the shielded pump represented by domestic shielded pump, industrial shielded pump and other products. The shielded pump is mainly used for the transmission and circulation of hot water or other special media. It has the characteristics of low noise, no leakage and high reliability. Its application fields mainly include water circulation (including supporting household appliances), chemical industry, refrigeration, new energy (hydrogen energy) automobile, semiconductor and electronic industry, nuclear power, wind power, laser Information infrastructure, aerospace industry, ships, medical equipment manufacturing, etc.
2、 Corporate culture and spirit
Corporate mission: focus on industry development and improve people's quality of life with high-quality water pumps
Strategic vision of the enterprise: stick to the professional development strategy, focus on and deeply cultivate the pump market, and be determined to become a large pump enterprise group with world-class competitiveness
Enterprise core values: integrity, pragmatism, cooperation and innovation
Company tenet: integrity and dedication, pragmatism and enterprising, cooperation and responsibility, and shared development
3、 Main operations in 2021
In 2021, the company realized operating income of 148431540355 yuan and net profit attributable to shareholders of listed companies of 1472163604 yuan. As of December 31, 2021, the total assets of the company reached 165684403586 yuan, and the net assets attributable to the shareholders of the listed company were 127298197419 yuan.
Part II performance of social responsibility in 2021
1、 Protection of shareholders' and creditors' rights and interests
(I) standardized corporate governance structure and effective internal control system
In order to protect the rights and interests of shareholders and creditors, the company has long been committed to improving the corporate governance structure and established an effective internal control system. The company has established a standardized corporate governance structure in strict accordance with the relevant requirements of laws and regulations such as the company law, the securities law and the guidelines for the governance of listed companies. The highest authority of the company is the general meeting of shareholders, the board of directors is the permanent decision-making and management organization, and the board of supervisors is the supervision organization of the company. A strategy and remuneration Advisory Committee is set up under the board of directors to provide suggestions for the board of directors, the nomination and assessment committee.
The company has established and improved the rules of procedure of the general meeting of shareholders, the board of directors and the board of supervisors, established the rules of procedure of the special committees under the board of directors, the working system of the Secretary of the board of directors, as well as the management system of external guarantee, the management system of foreign investment, the management system of preventing major shareholders and related parties from occupying the company's funds, the management system of related party transactions and the management system of raised funds "Internal control system", "internal audit system", "information disclosure management measures" and a series of standardized governance document systems.
The general meeting of shareholders, the board of directors, the board of supervisors and the general manager shall exercise their functions and powers in accordance with the provisions of the articles of association. Independent directors actively performed their duties and played a good role. The board of directors of the company consists of 7 directors, including 3 independent directors. In 2021, the company held 10 meetings of the board of directors, 2 meetings of the strategy committee, 6 meetings of the audit committee, 4 meetings of the remuneration and assessment committee and 3 meetings of the nomination committee, giving full play to the professional ability of all directors and ensuring the rationality, scientificity and correctness of the company's decision-making; The board of supervisors of the company is composed of three supervisors, including one employee supervisor. In 2021, the company held 10 meetings of the board of supervisors. The board of supervisors earnestly and diligently performed its duties, supervised the directors and senior managers of the company, and safeguarded the rights and interests of shareholders and creditors.
The general manager of the company is appointed by the board of directors and is responsible for the daily operation and management of the company. The appointment of other senior managers of the listed company shall be carried out in accordance with the articles of association. In 2021, the company further improved the performance evaluation system for directors and senior managers, and established a mechanism to link the remuneration of the company's personnel with the company's performance and personal performance.
(II) strictly fulfill the obligation of information disclosure
The company strictly abides by the company law, the securities law, the Listing Rules of Shanghai Stock Exchange and other laws, regulations, normative documents, the articles of association and other relevant provisions, earnestly performs the obligation of information disclosure, and ensures the authenticity, accuracy and integrity of the disclosed information. The company made every effort to maintain the fairness of information disclosure, ensure that all shareholders have equal access to information, strictly implement the insider registration management system, and safeguard the legitimate rights and interests of investors. In 2021, the company won the "a" rating for the third consecutive year in the evaluation of information disclosure of Listed Companies in Shanghai Stock Exchange from 2020 to 2021, and the information disclosure was affirmed by the regulatory authorities.
(III) actively manage investor relations
The company pays attention to strengthening the communication with investors, and receives all kinds of institutional or individual investors to visit and communicate with the company in strict accordance with the requirements of relevant rules and regulations. The company also ensures the smooth communication channels between investors and the company, answers investors' questions in a timely and accurate manner, and improves investors' understanding of the company through various forms of interaction through the "SSE E interaction" platform, investors' telephone, public email and other means, So as to further strengthen the understanding and recognition of all kinds of investors to the company.
In 2021, the company held the 2020 annual performance presentation and the 2021 semi annual performance presentation respectively through the "investor relations interactive platform" of Shenzhen panorama Network Co., Ltd. and the Shanghai Securities roadshow center. The main principals of the company attended the above performance presentation and responded to the investors' questions about the company's operation, development strategy, corporate governance and so on, So that the majority of investors can have a more comprehensive and in-depth understanding of the company's operating results, financial situation and development objectives.
(IV) pay attention to return to investors
The company attaches importance to the reasonable investment return demands of investors. In 2021, the company formulated and implemented the profit distribution plan for 2020 in accordance with the articles of association and the shareholder return plan for the next three years (20202022), combined with the actual production and operation situation and subsequent development plan of the company: based on the total share capital of the company as of December 31, 2020, 16758300000 shares, A cash dividend of 10 yuan (including tax) is distributed to all shareholders for every 10 shares. The ratio of the total cash dividend distributed in this profit distribution plan to the net profit attributable to shareholders of the listed company in the current year is 78.53%.
2、 Protection of employees' rights and interests
(I) protect the legitimate rights and interests of employees
The company pays attention to the protection of the legitimate rights and interests of employees, strictly abides by the requirements of laws and regulations such as the labor law and the labor contract law, establishes a series of labor management systems, signs the labor contract with employees according to law, handles social insurance such as medical treatment, pension, unemployment, industrial injury and childbirth for employees in accordance with national and local laws and regulations, and pays housing provident fund for employees; Provide regular occupational health examination for employees to ensure their physical and mental health. Focusing on the establishment, operation and supervision of labor relations, the company has continuously improved the protection mechanism of employees' rights and interests, and established harmonious labor relations with all employees.
(II) pay attention to employees' career growth
The company cares about the career growth of employees, attaches importance to the cultivation of employees' professional ability, and carries out various professional training to help employees improve their professional skills. The company gives full play to the exemplary and driving role of advanced models, guides employees to love their posts and work hard, and realizes career growth. In 2021, led by the labor union and administrative personnel department of the company, the company organized the selection activities of "top ten craftsmen of Dayuan", awarded honorary certificates to front-line employees who are skilled, hardworking and can play an exemplary and leading role in their work, and gave appropriate rewards.
The company pays attention to exploring the "pass on, help and lead" role of senior employees. For each batch of production employees, the company will arrange the hand-in-hand teaching of senior employees according to the post needs, and establish a two-way development mechanism of mutual assistance, mutual promotion and mutual supervision among employees to promote the common growth of employees.
(III) create a safe production and operation environment
The company pays attention to improving employees' awareness of production safety, strictly implements the training system for incoming employees, sets up safety production training courses for new employees, and invites workshop managers with safety management experience to explain, so as to popularize safety production knowledge for employees.
In June 2021, in order to actively respond to the national "safe production month", the company held educational activities with the theme of "safe production", including fire drill, fire knowledge competition, fire fighting skill competition and other activities. With the help of various publicity and competition activities, the company has fully mobilized the enthusiasm of employees to participate in safety management, and realized the transformation from "want me to be safe", "I will be safe" and "I can be safe".
In addition, the company insists on carrying out TPM activities, requiring all employees to integrate equipment maintenance into their daily work while doing a good job in production, hold equipment maintenance competitions from time to time every year, set individual and group competitions, and set corresponding honors and rewards. The implementation of TPM activities of the company has effectively improved the safety productivity and created a safe production and operation environment for employees.
(IV) implement employee welfare policies
The company has formulated a series of employee welfare policies according to the actual situation to ensure that all employees can enjoy comprehensive and diversified welfare benefits. The company provides dormitories for employees, lunch subsidies, birthday benefits, regular physical examination for employees, sets and strictly implements the high-temperature subsidy policy, pays holiday benefits at festivals such as Dragon Boat Festival, Mid Autumn Festival, Spring Festival and March 8th women's day, and pays a certain year-end bonus at the end of the year according to the annual production and operation benefits. In the daily production and operation process, the company will organize various collective activities such as sports competitions and theatrical parties according to the actual situation, so as to enrich the spare time life of employees.
(V) strengthen the incentive of employees
The company attaches importance to the positive effect of incentive on employees, and effectively formulates and implements various long-term and short-term incentive schemes. The company implements performance management on employees' wages and provides different evaluation indicators for different positions to encourage employees to strive to achieve high performance level; Share the operating results at the end of the year, and motivate the employees according to the achievement of the company's performance indicators, Department contribution, employee performance and other indicators.
In 2020, the company implemented the 2020 restricted stock incentive plan to provide long-term incentives to the company's directors, senior executives and core employees. In 2021, the company granted reserved restricted shares to key employees according to the incentive plan. The implementation of equity incentive plan is a deep incentive to the company's core employees and an important part of the company's employee incentive policy.
3、 Protection of rights and interests of suppliers and customers
(I) protection of suppliers' rights and interests
The company has established a strict supplier access system, a fair and impartial evaluation system, regularly evaluates suppliers, determines cooperative suppliers according to the evaluation results, and treats each supplier fairly. The company takes honesty and trustworthiness as the development purpose of the enterprise, scrupulously abides by integrity, follows the principles of mutual respect, honest cooperation and common development, and pays the loan in strict accordance with the contract.
While strengthening business cooperation with suppliers, the company also strengthens cooperation with strategic suppliers to continuously improve the response level to the needs of the market and final customers; In recent years, with the continuous expansion of the company's business scale, it has also driven the rapid development of the company's supplier business and formed a win-win situation of cooperation. In this process, it has cooperated with upstream suppliers to better fulfill corporate social responsibility.
(II) pursuing win-win cooperation with customers
1. Focus on cultivating the industry and producing high-quality products to protect the rights and interests of customers
Since its establishment, the company has been deeply engaged in the water pump industry, committed to improving the production process level and product quality management level, and providing customers with high-quality pump products. In 2021, the company sold 399738 submersible pumps for wells, 603102 onshore pumps, 651210 small submersible pumps, 4634 chemical shielded pumps, 6988 air-conditioning and refrigeration shielded pumps and 3527551 hot water circulation shielded pumps, involving small civil water pump market, household pump market and various industrial markets dominated by industrial enterprise customers, so as to provide innovative products that meet the requirements for different types of customers.
The company's civil water pump and shield pump products have advanced technology, reliable and stable quality, high product qualification rate and low repair rate. In recent three years, the satisfaction of Chinese and overseas customers of the company's subsidiary Hefei Xinhu shield pump Co., Ltd. (hereinafter referred to as "Hefei Xinhu") has exceeded 95%. During the reporting period, the company had no major product quality and safety accidents.
2. Deeply investigate the market and comply with the "double carbon" trend to meet the needs of customers
The company attaches importance to the development goal of "double carbon", actively arranges household high-efficiency and energy-saving pump technology, and helps household end users around the world achieve a low-carbon life. In terms of the use of energy-saving technology, as a general equipment, the pump is the application of energy-saving technology
