preface

The 2024 Social Responsibility Report of Shanxi Dongchang Industrial Co., Ltd. comprehensively elaborates on the company's tax payment, stable employment, social stability, ecological protection, poverty alleviation and assistance, public welfare undertakings, and other aspects. The company is willing to share its social responsibility practices with stakeholders such as investors, employees, and customers, and strive to progress and grow together.

In recent years, Yuanping Coal Machinery Manufacturing Enterprise has become a professional town for coal machinery in Xinzhou since 2022. Each coal machinery enterprise has closely focused on national policies and the spirit of relevant higher-level departments, fully leveraging the role of private enterprises in various aspects. Shanxi Dongchang Industrial Co., Ltd. is at the forefront of the industry, actively fulfilling the role of economic construction and social responsibility. In 2024, the company's fully automatic roller production line will be put into operation, with excellent product quality and some indicator values exceeding industry standards. After the operation of the company's Taiyuan Intelligent R&D Center, relying on the scientific and technological teams of Taiyuan University of Science and Technology and Shanxi Engineering Technology College, it will accelerate the upgrading and high-quality development process of Shanxi Dongchang's intelligence and digitization. In the year of the end of the 14th Five Year Plan, in order to create Provincial characteristic professional towns make new contributions!

1、 Overview

Basic information of the enterprise

Shanxi Dongchang Industrial Co., Ltd. was established in September 2007, covering an area of 120 acres, with a registered capital of 108 million yuan, and currently has 263 employees. Main business: various types of belt conveyors, tubular belt conveyors, rollers, and idlers. The company has always focused on the research and development, design, and manufacturing of continuous handling equipment in the coal mining equipment industry, and is one of the leading enterprises in the continuous handling equipment belt conveyor field in Shanxi Province. The industrial chain is mainly concentrated in energy mining and coal enterprises. The products are mainly sold in Shanxi, Shaanxi, Inner Mongolia, Ningxia, Tianjin and other places. The company has a research and development center, technology department, sales department, production department, quality inspection department, safety and environmental department, finance department, information technology department, and comprehensive department. The production workshops mainly include riveting and welding workshop, metalworking workshop, roller workshop, final assembly workshop, and paint workshop. The company was rated as a demonstration enterprise for the transformation of scientific and technological achievements in Shanxi Province by the Shanxi Provincial Department of Science and Technology in 2019, and was continuously rated as a high-tech enterprise from 2014 to 2023. In 2020, it was awarded the title of Shanxi Province's specialized, refined, special and new "Little Giant" enterprise, and in the same year, it was awarded the national key "Little Giant" enterprise by the Ministry of Industry and Information Technology. The company's "Shanxi Province Green Transportation and Intelligent Information Engineering" technology center was awarded the provincial technology center. In 2022, the company established the "Smart Coal Storage and Transportation Equipment and System Provincial Technology Innovation Center" innovation platform base in cooperation with Taiyuan University of Science and Technology, which was rated as a provincial innovation center. In the same year, the company was also awarded the "Intelligent Manufacturing Demonstration Enterprise" by the Provincial Department of Industry and Information Technology. The company has obtained "ISO90002015 Quality Management System, ISO14000 Environmental Management System, ISO45001 Occupational Health and Safety Management System".

The company has been dedicated to the research and production of belt conveyors in the field of coal mining equipment for over 20 years. In order to promote the intelligent upgrading and transformation of the leading product of the enterprise, belt conveyor, and ensure production quality and work efficiency, Dongchang Company has introduced the German drum intelligent circumferential welding process technology, which ensures that the drum weld does not crack and does not rotate, and improves the service life of the tape. The maximum production capacity of the company's drum is 2 meters in diameter, and the service life can be guaranteed for more than ten years. The company also purchased more than ten intelligent advanced equipment such as Japanese Hanchuan robot welding equipment, CNC boring machines, CNC horizontal lathes, shot blasting machines, laser cutting machines, plasma cutting machines, CNC plate rolling machines, etc. to ensure the welding quality and efficiency of the products. The company has also introduced an intelligent roller production line designed by JRC in Japan. The entire production line includes roller shafts, bearing seat processing equipment, pipe processing, welding, assembly lines, as well as painting and drying lines. It has a high degree of automation, excellent processing accuracy, stable product quality, and can achieve continuous and efficient production. The roller shaft processing production line has introduced Japanese CNC machining centers, greatly improving the accuracy and coaxiality of the products.

Carefully building technology and service brands is the long-term development philosophy of Shanxi Dongchang Company. While creating high-quality, environmentally friendly, and high-performance services for customers, it also makes Shanxi Dongchang Company more mature, stronger, more confident, and makes every enterprise and friend who cooperates with the company more at ease. Exploring and innovating, pursuing excellence "is the continuous pursuit of Shanxi Dongchang. We sincerely look forward to working together with new and old customers to create a better future!

2、 Motivation for fulfilling social responsibility

With the development and progress of society, enterprises have evolved from being registered in 2007 to not only pursuing economic benefits, but also focusing on fulfilling social responsibilities, thanking the Party and the government, and giving back to society. This not only helps to improve the reputation and image of enterprises, but also promotes their sustainable development.

1. Enhance corporate reputation and image

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

2. Promote sustainable development of enterprises

Fulfilling social responsibility by enterprises helps promote their sustainable development. On the one hand, enterprises pay attention to environmental protection, reduce energy consumption and pollution in the production process, which is conducive to the effective utilization of resources and ecological protection, and create a favorable external environment for the long-term development of enterprises. On the other hand, companies that focus on employee welfare and improve employee benefits are conducive to enhancing employee motivation and creativity, thereby improving the company's production efficiency and competitiveness.

3. Meet legal and regulatory requirements

Corporate social responsibility is also to avoid legal risks and meet the requirements of laws and regulations. The Chinese government has clear regulations and requirements for enterprises to fulfill their social responsibilities. If enterprises fail to fulfill their social responsibilities, they may face legal risks such as fines and suspension of business for rectification. Therefore, in order to operate in compliance, enterprises must fulfill their social responsibilities.

4. Fulfill moral obligations

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

5. Realize long-term development of enterprises

Fulfilling social responsibility by enterprises helps to achieve long-term development. A socially responsible enterprise can establish good cooperative relationships with all parties and create favorable conditions for the long-term development of the enterprise. Meanwhile, fulfilling social responsibility by enterprises also helps to cultivate their core competitiveness and provide impetus for their sustainable development.

In summary, the motivations for companies to fulfill their social responsibilities include improving their reputation and image, promoting sustainable development, meeting legal and regulatory requirements, fulfilling ethical obligations, and achieving long-term development of the company. In the context of the new era, enterprises should actively fulfill their social responsibilities and contribute to the harmonious development of the economy and society.

3、 Corporate accountability measures

1. The company complies with national laws and regulations, as well as the code of conduct for the belt conveyor industry. It is a member unit of the Belt Conveyor Branch of the China Heavy Industry Machinery Association, a member unit of the China Coal Machinery Industry Association, and a vice chairman unit of the Shanxi Province Specialized, Refined, Unique and New Enterprise Federation.

The company has established a sound legal management system for enterprises, incorporating the concept of the rule of law into institutional construction. It has formulated enterprise rules and regulations, making them the behavioral norms for employees, and established standardized work processes. The company combines the rule of law with production and operation, and incorporates various behaviors of the enterprise into the standardized and legal track. The company has established the Party Work Department to carry out business and production activities, staff skills improvement, learning and training, and various staff cultural and sports activities under the leadership of the CPC Yuanping Committee and the Municipal Federation of Trade Unions. The company is a model unit for clean and honest enterprises in Yuanping. Party building leads the healthy development of the enterprise, guides decision-making, and various cultural activities unite the hearts of employees. It closely connects with the masses and plays a positive role, further strengthening the confidence of the enterprise to listen to the Party, feel the Party's favor, and follow the Party from top to bottom. Strengthen the dissemination of corporate culture, guide and enhance the awareness, recognition, and acceptance of the corporate spirit, business philosophy, and values among all employees, and cultivate a good sense of self-discipline.

2. In its business activities, the enterprise continuously improves its scientific decision-making level and has established a long-term cooperative relationship with the University of Science and Technology of China. It has set up a provincial-level science and technology research and development center and a Gao Youhong innovation studio, guided by technology, while strengthening risk control and enhancing operational management capabilities, achieving steady development of the enterprise.

The company combines years of management practice. We have established a sound institutional system, implemented a co signing management mechanism, hired legal advisors, standardized the contract signing process, and effectively and maximally avoided various risks.

3. The company always places technological innovation at the core of enterprise development, running through all aspects of business management, continuously promoting innovation in products, services, technology, systems, and other aspects, breaking through bottlenecks in enterprise development, and achieving high-quality development. The company's research and development investment has been increasing year by year, with R&D investment of 6.99 million yuan in 2021, 8.09 million yuan in 2022, 13.91 million yuan in 2023, and 16.15 million yuan in 2024. The company has an enterprise innovation platform led by the Enterprise Technology Center and Gao Youhong Innovation Laboratory. The company has increased its investment in innovation, enhanced its innovation capabilities, and vigorously promoted innovation in products, processes, services, management, and business concepts.

The breakthroughs in upgrading the industrialization of the company's products, updating advanced equipment, and digitizing applications have promoted the development of the enterprise.

4. The process by which a company establishes and implements self-discipline concepts, systems, and behaviors in production, operation, management, and market operations in accordance with national laws, market rules, and ethical norms. Integrity management is based on honesty, and a code of conduct for integrity is established to regulate business activities and employee behavior. Based on integrity, with product quality and culture as the core, firmly establish brand awareness, carry out brand creation, enhance product added value, form brand awareness and reputation, and gain market competitive advantages.

5. The company actively fulfills its tax obligations, consciously and honestly pays taxes, and lawfully, honestly, timely, and fully pays all taxes stipulated by the state. From 2021 to 2023, a total of 26.26 million yuan in various taxes and fees were paid. The company currently has 263 employees, including technical staff who have absorbed employees from bankrupt enterprises in Xinzhou and Yuanping, solving the employment problem of laid-off workers in state-owned enterprises and maintaining social stability. The company attaches great importance to employee income, puts people first, provides holiday benefits, labor protection supplies, summer heatstroke prevention supplies, and timely payment of employee wages without delay. A large part of the employees in ordinary positions come from surrounding rural areas. After pre employment and on-the-job training and learning, the company has created long-term stable employment opportunities for them. The company holds more than 20 training sessions every year and invites professors from science and technology universities and vocational schools to guide and train workers to improve their labor skills. In recent years, the company has paid special attention to vulnerable groups and resettled more than 40 disabled people to work in the company.

6. While carrying out production and business activities, the company does not forget its original intention, cares about society, and actively carries out public welfare and charity activities such as disaster relief, helping orphans and the poor, and assisting the elderly and disabled. Carrying out public welfare and charity donation activities such as disaster relief, helping orphans and the poor, and assisting the elderly and the disabled to spread warmth to many fields. In 2022, a donation of 100000 yuan was made to improve the teacher-student cafeteria at Fanting Middle School. In the same year, 100000 yuan and 60000 yuan worth of disaster relief materials were donated to the Xinzhou epidemic, 80000 yuan was donated to the original Pingping anti epidemic campaign, 300000 yuan was donated to the original Square Cabin Hospital, and in 2023, a corn dryer worth about 600000 yuan was donated to Yangou Township in Yuanping during the "Ten Thousand Enterprises Revitalize Ten Thousand Villages" event. During the Spring Festival of 2023, 12000 yuan worth of white flour, rice, edible oil and other Spring Festival condolences were sent to 40 elderly party members and extremely poor families in rural areas near the enterprise. Optimized and adjusted job positions such as warehouses, gatekeepers, and statistics, solving employment opportunities for more than 30 disabled people in special groups. In the Yuanxiao (Filled round balls made of glutinous rice-flour for Lantern Festival) in 2024, a 20 meter colored lantern group worth more than 70000 yuan was produced in the street square, adding a peaceful and happy atmosphere to the festival of citizens. In April 2024, 50000 yuan was sponsored for the 14th Yuanping Poetry Pear Blossom Art Festival "Pear Blossom as a Medium, Wrestling the World".

4、 Ecological environment construction

The company establishes an environmental management and related institutional system in accordance with international and national environmental laws and standards, using planning, organization, coordination, control, supervision and other means, combined with the actual situation of the enterprise, to ensure the effective and normalized implementation of environmental protection work in the enterprise. The company has passed the national ISO14000 environmental management system, invested in the construction of a spray painting workshop, and a fully automatic roller spray painting production line. All employees continuously improve their environmental awareness, and the safety and environmental department is equipped with specialized staff to focus on safety production and environmental protection work. All production workshops and office buildings of the company use air powered green and environmentally friendly facilities for heating, and solar photovoltaic power generation is installed on the roofs of the workshops for green development. The company plans to gradually invest and make unremitting efforts to create a green factory. From 2021 to 2023, the investment in environmental protection and energy-saving 1000KW photovoltaic power generation was 2.7433 million yuan, the investment in automatic painting line was 1.0179 million yuan, the investment in environmental protection painting system was 523800 yuan, the investment in air source unit system was 1.1576 million yuan, and other daily environmental protection investments totaled more than 8.5 million yuan.

5、 Strive to become an industry benchmark

As a traditional industry, the coal mining machinery manufacturing industry has obtained the "ISO9000 quality management system". In strict accordance with industry standards and specifications, the company actively supports and follows the requirements of the China Heavy Machinery Association, Belt Conveyor Association, Specialized and New Enterprise Federation, and the General Chamber of Commerce of Yuanping Industry and Commerce. It has taken the lead in launching an advanced fully automatic roller intelligent manufacturing production line in the industry, completed the integration of two industries, and the operation of an information system has promoted the digital transformation and development of the enterprise. Participate in a series of activities organized by industry associations and chambers of commerce every year according to the schedule. In the process of Taixin's integrated economic construction and the construction of provincial-level coal machinery professional towns, the company took the lead and invested nearly 40 million yuan in intelligent automated roller production lines and axis CNC machining centers to improve production efficiency and product quality. Under the leadership of the science and technology, industry, and information technology departments in Xinyuan City, the company inherits the spirit of craftsmanship in the coal mining machinery manufacturing industry and strives for excellence in the pursuit of product perfection, forging ahead with determination! While carrying out production and business activities, the company continues to make new contributions to the country and society by paying taxes and fees, stabilizing employment, promoting social stability, ecological protection, poverty alleviation and assistance, and public welfare undertakings!

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