Sustainability Report
Contents
About this report 02 01
Governance
Environmental
Social
About Hoshine Silicon 04 Part Part Part
Key Performance Table 76 Responsible Hoshine, Future Hoshine, Excellent Hoshine,
Shanghai Stock Exchange (SSE) 83 Refined Governance Green Leadership Scaling New Heights
Guidelines Index
Corporate Governance 12 Low-carbon Operations 26 Quality Management 50
ESG Governance 14 Environmental Management 35 Customer Experience 61
Business Ethics 18 Pollutant Discharge 41 Supply Chain Security 64
Data Security and Customer 21 Resource Usage 46 Caring for Employees 67
Privacy Protection
Community Co-construction 73
About this report
Report Introduction
Hoshine Silicon Industry Co., Ltd. (hereinafter referred to as "Hoshine Silicon", "the Company," or "we") presents the 2024
annual Sustainability Report (hereinafter referred to as "this report" or "ESG report"), which aims to elaborate on the Company's Central Hoshine Refers to Xinjiang Central Hoshine Silicon Industry Co., Ltd.
institutional development and performance in environmental, social, and governance (hereinafter referred to as "ESG"). It
objectively discloses the Company's management and achievements in sustainable development to meet the expectations of Longsheng Carbon Refers to Shanshan Longsheng Carbon Manufacturing Co., Ltd.
stakeholders and the public.
Ningxin Carbon Refers to Shihezi Western Ningxin Carbon Co., Ltd.
Report Scope Jiaxing Hoshine Refers to Hoshine Silicon (Jiaxing) Industry Co. Ltd.
Hoshine New Materials Refers to Ningbo Hoshine New Materials Co., Ltd.
Business scope: this report covers the Company's main businesses. For detailed business information, please refer to the
Company's 2024 annual report. Unless otherwise specified, the content of this report encompasses Hoshine Silicon and its
subsidiaries. Luzhou Hoshine Refers to Hoshine Silicon (Luzhou) Industry Co., Ltd.
Time scope: the content of this report primarily covers the time scope from January 1, 2024, to December 31, 2024 (hereinafter Inner Mongolia Saisheng Refers to Inner Mongolia Saisheng New Materials Co., Ltd.
referred to as the "reporting period" or "this year"). To enhance the completeness of this report, some content extends beyond this
period.
Report release cycle: this is an annual report and represents Hoshine Silicon's first Sustainability Report.
Report Preparation Basis
Other definitions are as follows: This report is prepared in accordance with the Guidelines No. 1 of Shanghai Stock Exchange(hereinafter referred to as "SSE") for
Self-Regulation of Listed Companies - Standardized Operations, Guidelines No. 14 of Shanghai Stock Exchange for Self-Regulation
Shanshan Silicon Refers to Hoshine Silicon (Shanshan) Industry Co., Ltd.
of Listed Companies - Sustainability Report (Trial) , and others, while also referencing the United Nations Sustainable Development
Goals (SDGs). This report includes a detailed index of guidelines in the final section for readers' quick consultation.
Xinjiang Silicon Industry New Materials Refers to Xinjiang Hoshine Silicon Industry New Materials Co., Ltd.
Western Hoshine Refers to Xinjiang Western Hoshine Silicon Industry Co., Ltd.
Report Information Sources
Eastern Hoshine Refers to Xinjiang Eastern Hoshine Silicon Industry Co., Ltd.
The information and data in this report are sourced from the Company's internal official documents, internal statistical materials,
Western Silicon Materials Refers to Xinjiang Western Hoshine Silicon Materials Co., Ltd. and publicly available information. Unless otherwise specified, all monetary amounts in this report are denominated in Renminbi
(RMB).
Shanshan Electric Power Refers to Hoshine Electric Power (Shanshan) Co., Ltd.
Shanshan Energy Management Refers to Hoshine (Shanshan) Energy Management Co., Ltd.
Report Reliability Assurance
Hoshine Thermal Electric Refers to Xinjiang Western Hoshine Thermal Electric Co., Ltd.
All content disclosed in this report has been reviewed and approved by the Board of Directors of Hoshine Silicon. The Company's
Xinjiang Green Energy Refers to Shihezi Hoshine Green Energy Management Co., Ltd. Board of Directors and all directors guarantee that this report contains no false records, misleading statements, or material
omissions, and assume legal responsibility for the authenticity, accuracy, and completeness of its content.
About Hoshine Silicon
Company Profile Corporate Culture
Hoshine Silicon Industry Co., Ltd. was invested and established by Ningbo Hoshine Group in 2005 and successfully listed on the
main board of the Shanghai Stock Exchange in 2017. It is the Company with the most complete silicon-based whole industrial Hoshine Silicon places high importance on the construction and development of corporate culture, committed to building a
chain in the world, the pioneer of the integrated green circular economy model of silicon-based new materials, and the leader of distinctive and highly cohesive corporate culture to drive the Company's sustained and steady development. Through relentless
the overall solution for green energy resources. efforts over the past nearly two decades, Hoshine team members have gradually formed shared career goals and value
orientations, which have coalesced into the unique corporate culture of Hoshine Silicon.
The Company has set up digital intelligent manufacturing bases in Xinjiang, Zhejiang, Inner Mongolia, Sichuan and other places,
and has high-tech research and development centers in Shanghai and Hainan. Its businesses mainly cover multiple fields such as
energy, silicon metal, silicone, carbon, new materials, third-generation semiconductor silicon carbide (SIC), the whole photovoltaic
(PV) industrial chain, and energy storage. Among them, the production capacities of silicon metal and silicone have ranked first
in the world for many consecutive years. The scientific research strength of emerging businesses such as SIC and PV ranks firmly
in the first echelon of the industry. The related products are widely used in various fields such as aerospace and military industry,
electronic communication, medical and health care, and automobile manufacturing, and its partners are all over the world. Management Our Vision
Concept
Committed to be the world-
The Company strives to contribute Hoshine's wisdom and strength to the global silicon-based new materials industry and green Survive by quality, renowned enterprise with
energy sector. On the one hand, we actively promote the large-scale promotion of clean energy and zero-carbon technologies, promote development by most reasonable resource
vigorously advocate green and low-carbon production methods, and take the lead in carrying out product carbon footprint science and technology, allocation, most influential
take customers as the and vitality
certification within the industry to achieve green manufacturing. On the other hand, we actively create sustainable and green foundation
circular economy models for quality improvement and upgrading, enabling mutual empowerment among different industries
within the "Green Circular Economy Industrial Park", and fully constructing a low-carbon and high-efficiency industrial sustainable
development system. Operation Concept
Create a platform for
employees, create
benefits for customers,
create wealth for
Talent Concept shareholders, create
value for society
Let every employee play
unlimited possibilities
Our Spirit Employing
Success comes from Concept
persistence Our Mission People-oriented,
morality first
Concentrate on
the silicon-based
materials to create
a wonderful life
Corporate Values Corporate Honors and Awards
Ranked 153rd in Hurun China 500 Most
Valuable Private Companies 2024 Gold Certification1
Abide by the national laws and company system, never
violate the high-voltage line of the enterprise; be a Hurun Research Institute Ecovadis
person with morality first, honesty and integrity, words
Honesty and
and deeds; requite kindness with kindness, requite
resentment with justice, , to uphold fairness, honesty and
Integrity
trustworthiness. Use positive forces to have a positive 2024 Hangjia Aurora Award - China's
impact on the surroundings. Ranked 141st in the "List of 2024 Top Most Influential SiC Substrate
China Enterprise Evaluation Association "Hangjia Remarks on the 3rd Gen
Semiconductors"
Ranked 94th in 2024 Top 500 National Excellent Green Energy
Leading innovation with green environmental protection, Enterprises from Zhejiang Province Development Case
Green everyone can innovate, everything can be innovative; embrace
Zhejiang Business Magazine 2024 3rd Green Finance Forum
Innovation change, dare to break through, dare to try, not afraid of failure,
good at summing up.
Annual Outstanding Enterprise in The Most Promising Listed Company in
Sustainable Development New Materials
Shanghai United Media Group | Jiemian Global - National Business Daily - 2024 14th China
Professional and persistence, with the spirit of
craftsmanship, constantly improving; diligence and
efficient execution; courage to take responsibility, take Dedication and Annual Steady Progress New Energy Growth Value Listed Company of
Company the Year
the initiative to meet new challenges and tasks; hold Aggressiveness
curiosity, continuously improve learning, keep in mind Think Finance & Investor Network - 2024 21 st Century Business Herald - 2024
the original heart and mission, and pursue excellence. Golden Bridge Awards Capital Market "Golden Sail" Cases
Excellent Corporate Governance 2024 Yinshi · Market Value
Award of the Year Management Award
Shanghai United Media Group | Jiemian Zhejiang Daily Press Group, Yinshi Finance,
Global - 2024 ESG Pioneer 60 RoyalFlush - 2024 Yinshi Awards
With an open and win-win attitude, we share industry growth
Win-win with our partners; we have a big vision and can work together
Cooperation in a team to achieve our goals; we are willing to share our
expertise and work experience and grow with our colleagues. 2024 Annual Best Investor Relations
Management Listed Company Award
Securities Market Weekly - The 18th (2024)
Capital Market Crystal Ball Awards
Obtained by Jiaxing Hoshine
Obtained by Hoshine New Materials
Integrated Green Circular
Economy Model of Silicon-
based New Materials
Relying on the advantages of synergetic development of the
industry chain, Hoshine Silicon leads the development of
the industry through the integrated green circular economy
Create a sustainable "green engine" and improve the consump-
model of silicon-based new materials, achieving an organic GREEN CYCLE SILICON - tion level of renewable energy
combination of energy and silicon-based materials, and
Hoshine Silicon is the pioneer in building the Aligned with China's green development
enabling the implementation of the green circular model BASED WHOLE INDUSTRY CHAIN world's first complete silicon-based industrial
chain and a leader in providing holistic green
strategy, Hoshine Silicon actively promotes the
large-scale adoption of clean energy and
of "resources-products-renewable resources or recycled energy solutions. The vertically integrated zero-carbon technologies. The Company has
products".
industrial chain represents an efficient, secure, emerged as a key enabler and contributor in
and traceable development model. By implement- achieving the "Dual Carbon" goals and
ing end-to-end management and control across addressing climate change challenges.
Currently, with the advantages suchInverter
as upstream-downstream all production stages, it achieves comprehensive
connection, a whole industry chain, a high local conversion
product quality enhancement and precise
rate, and obvious characteristics of a circular economy,
fulfillment of consumer demands.
Hoshine Silicon has established a modern industrial
system of silicon-based new materials with international
competitiveness. The Company pioneered the construction High-purity SiC substrate SiC epitaxial SiC terminal
wafer SiC module
product
of green circular economy parks for silicon-based new
SiC powder wafer
materials in Shihezi and Shanshan, Xinjiang. From the power
supply by the heating and power plant to the production of
Glass
terminal silicon-based products, and from the vertical supply
of energy and raw materials to self-sufficiency and mutual Silicon
empowerment, all by-products in the production process are
solar
cell
Poly-silicon Silicon rod Silicon wafer
recycled.
Frame
The successful implementation of this model not only
demonstrates the leading position of Hoshine Silicon in Silicone rubber Electric power Photo-
technological innovation and sustainable development, but Quartz mine Liquid silicone Automobile, voltaic Photovoltaic
Silicon metal architecture encap- Inverter
rubber power station
also sets a model for the green transformation of the whole
sulant
film
Solar panel
silicon-based new materials industry. In 2024, the Company's Daily chemicals,
silicon metal business segment, through industry chain
Silicone oil PV
textiles ribbon
synergy as well as technological innovation continued to
Silicone
improve the average daily output and effectively reduce the
Thermal
Fumed silica insulation Junction
electricity consumption per ton, some of the average daily
material box
Paint, coating
output of the mineral heat furnace has exceeded 70 tons,
and the electricity consumption of smelting a single ton of
Photov-
Silicone sealant oltaic
silicon metal has even been reduced to less than 10,000 kWh;
adhesive
silicone business segment, some of the plants, through the
technological transformation, the capacity of a single set of
equipment has been increased from 300 tons per day to 330- From supplying electricity via thermal power plants to manufacturing
end-use silicon-based products, and from vertically integrating energy and
raw material supply to achieving self-sufficiency with mutual empower-
equipment fractional distillation technology, as well as ment, this model has established a comprehensive ecosystem spanning
process equipment technology in the chloromethane system,
the entire industrial chain.
and the use of advanced energy-saving equipment in large
units of the public utility system have brought significant
energy-saving benefits to the Company.
Responsible Hoshine, Refined Governance/
Governance Part 01
Responsible Hoshine,
Refined Governance
Hoshine Silicon deeply recognizes the importance of integrity operations for long-term
corporate development. Therefore, the Company is committed to advancing the construction
of its governance system, actively integrating sustainable development concepts into its
operations, and earnestly fulfilling social responsibilities. Simultaneously, the Company
continuously strengthens corporate governance level by incorporating business ethics, risk
management, information security, and other issues into its core development strategy, driving
high-quality and sustainable development while establishing a positive corporate image.
Corporate Governance 12
ESG Governance 14
Business Ethics 18
Data Security and Customer 21
Privacy Protection
UN Sustainable Development Goals Corresponding to This Chapter
Responsible Hoshine, Refined Governance/
Corporate Governance Risk Management
Hoshine Silicon attaches great importance to risk management and internal monitoring, formulating regulations such as the
Hoshine Silicon continually enhances its governance levels through a sound governance framework and effective management Internal Control Evaluation Promotion System and the Internal Audit Management System . The Company strictly supervises
procedures to ensure corporate governance efficacy. We consistently optimize our governance structure, implement risk business processes including finance, engineering, and operations, strengthens risk identification, early warning, and full-process
management, continuously improve governance transparency, and effectively safeguard shareholders' equity. control of contract performance, and integrates enterprise risk management into Hoshine Silicon's strategies and operation
processes at all levels. We have formulated a unified risk investigation checklist, systematically analyzing and comprehensively
managing risks in terms of potential impacts, risk levels, probabilities, control measures, etc., which facilitates the Company to
efficiently manage various potential risks of all functional departments.
Governance Structure The risk management system of Hoshine Silicon is coordinated and controlled by the Board of Directors, and the Audit Committee
under the Board of Directors is responsible for supervising the implementation of risk management to ensure the appropriateness
Hoshine Silicon strictly complies with laws and regulations such as the Company Law of the People's Republic of China , the and effectiveness of the management system and structure. Hoshine Silicon's internal control and audit departments regularly
Securities Law of the People's Republic of China , and the Listing Rules of Shanghai Stock Exchange for Stocks .3 During the report to the Audit Committee, and conduct supervision and inspection on the implementation of risk management measures and
Reporting Period, in accordance with the new regulatory rules of the China Securities Regulatory Commission and the Shanghai related work. Hoshine Silicon has established three lines of defense for risk management, which support and strengthen our risk
Stock Exchange, and in combination with the actual situation of the Company, we revised documents such as the Rules of management system and escort the stable and sustainable development and operation of the Company.
Procedure of the Special Committees of the Board of Directors and the Articles of Association of Hoshine Silicon Industry Co., Ltd. ,
optimized the rules of procedure of the Board of Directors and its subordinate committees, strengthened the management norms
The Second
of independent directors, and improved the decision-making and management level of the Board of Directors. The First Line Line of The Third Line
of Defense Defense of Defense
The corporate governance of Hoshine Silicon includes one meeting and two boards, i.e. the shareholders' meeting, the Board of
Directors, and the Board of Supervisors. The shareholders' meeting, as the supreme authority, formulates the Company's major Various business departments arious functional departments
V Internal control and audit
decisions. The Board of Directors, as the executive body, performs its responsibilities in accordance with the authorization of the at the headquarters departments and external
evelop risk-control measures
D
shareholders' meeting and conducts the governance work of the Company. The Board of Supervisors, as the supervisory body, is supervision and audit
in accordance with risk stablish a sound risk
E
responsible for supervising the actions of the Board of Directors to ensure that it exercises its functions and powers in accordance
management standards, and management system Independent of other business
with the law. The Board of Directors has established the Audit Committee, Strategy and Sustainable Development Committee,
incorporate them into the and standardize the risk departments, carry out
Remuneration and Assessment Committee, and Nomination Committee. All members of these committees are served by directors,
daily risk management and management process risk monitoring and audit,
jointly promoting the efficient operation of the Company. During the Reporting Period, based on the original Board of Directors'
control evaluate the effectiveness of
committees, we adjusted the Strategy Committee to the Strategy and Sustainable Development Committee, and clearly included
risk management and control
sustainable development management work within its scope of responsibilities, so as to improve the Company's sustainable
measures, and optimize the
development governance level.
Company's risk management,
We explicitly consider multiple factors such as gender, age, cultural and educational background, skills, knowledge, and internal control, and governance
professional experience when selecting candidates for the Board of Directors' members, in order to improve the work efficiency of processes
the Board of Directors and ensure the scientific nature of decision-making. In addition, the Nomination Committee of the Board of
Directors reviews and examines the structure, director number, and composition of the Board of Directors every year, and makes
suggestions on any changes made to the Board of Directors to ensure the independence and fairness of its management and
decision-making. During the Reporting Period, the Board of Directors of Hoshine Silicon was composed of a total of 9 directors,
including 4 female directors.
Hoshine Silicon integrates ESG risk management and control into its daily risk management work, enhancing our awareness
of ESG risk management. We have established an internal control effectiveness verification mechanism to ensure the effective
implementation of the risk management mechanism, and continuously strengthened risk management and compliance training
Shareholders' Meeting
to further guarantee the implementation of the risk management system.
Board of Board of Hoshine Silicon Special Compliance Training for Independent Directors
Directors Supervisors
In November 2024, Hoshine Silicon actively participated in the "Special Compliance Training for Independent Directors
of Listed Companies in 2024" organized by the Shanghai Stock Exchange. The training content covered course topics
Strategy and Sustainable Remuneration and Nomination such as the regulatory concepts and latest regulatory practices of information disclosure of listed companies, the legal
Audit Committee responsibilities of independent directors under the registration system, the analysis of recent disciplinary action cases, and
Development Committee Assessment Committee Committee
the causes and prevention of risks of listed companies. Through this training, the independent directors of the Company
timely obtained the latest regulatory policies, providing strong support and guarantee for enhancing their own competence
Hoshine Silicon's Governance Structure
to perform duties, improving the corporate governance structure, and promoting the high-quality development of the
The revision is based on the latest version of the Company Law of the People's Republic of China , the China Securities Regulatory Commission's Measures for
Company.
the Administration of Independent Directors of Listed Companies, Listed Company Supervisory Guideline No. 2 - Regulatory Requirements for the Management
and Use of Raised Funds by Listed Companies, the Listing Rules of Shanghai Stock Exchange for Stocks as well as the Shanghai Stock Exchange Self-Regulatory
Guidelines for Listed Companies No. 1 - Standardized Operations for Mainboard Listed Companies.
Responsible Hoshine, Refined Governance/
ESG Governance Special Training on the Sustainability Report of Listed Companies
Hoshine Silicon attaches great importance to ESG governance, continuously improves the ESG governance structure and In May 2024, the Shanghai Stock Exchange held the "Special
management system, and actively integrates the concept of sustainable development into the Company's daily management Training on the Sustainability Report (ESG) of Listed Companies
and production operations. At the same time, we earnestly listen to and accept the demands of various stakeholders, and (First Session)", which covered the interpretation of Sustainability
jointly explore the path of sustainable development. Report guidelines, ESG evaluation, rating and investment, carbon
emission accounting methods and policies, and sharing of report
compilation experience by listed companies. Hoshine Silicon
actively organized its staff to participate in the training. This
training has provided guidance for the Company in exploring
ESG Governance Structure
high-quality development and enhancing its investment value,
and has further improved the relevant personnel's understanding
of the disclosure guidelines and standardized our information
disclosure behavior related to sustainable development.
The Company has established a three-layer ESG governance structure with the Board of Directors as the supreme decision-making
and management body, the Strategy and Sustainable Development Committee as the core, and the ESG task force responsible for
implementation. The Board of Directors is responsible for supervising and approving ESG matters, and the Strategy and Sustainable
Development Committee is responsible for overseeing the progress of ESG work and regularly reporting to the Board of Directors. The
Communications with Stakeholders
ESG task force is composed of various functional departments to ensure the effective implementation of ESG work.
Based on the characteristics of our company's own business and drawing on the experiences and practices of global peers, we
actively incorporate the feedback from stakeholders into our strategic and management decision-making processes, ensuring that
the requirements and expectations of stakeholders are aligned with the Company's goals and actions.
Hoshine Silicon adheres to the corporate governance concepts of openness and transparency, placing paramount importance
Board of Directors on stakeholders' core concerns. We have systematically established a diversified communication matrix encompassing face-to-
face communications, emails, phone communications, and new media platforms (WeChat Official Account), while implementing
a multi-tiered dialogue mechanism that includes shareholders' meetings, annual/semi-annual reports, special disclosure
documents, dual-track (online/offline) performance briefings, and institutional investor thematic conferences. Through
Strategy and Sustainable institutionalized and regular two-way information exchange, we comprehensively listen to the stakeholders' demands, accurately
Development Committee gauge market expectations, and continuously optimize the inclusiveness and sustainability of strategic decision-making. During
the Reporting Period, we focused on building strategic mutual trust system in capital markets, organizing and participating in over
the year, earning unanimous recognition from investors and shareholders, thereby laying solid foundations for enhancing capital
ESG Task Force market brand credibility.
Key Stakeholders Communication Channels
Government and regulatory authorities Policy directives, work reports, information submissions, on-site inspections
Hoshine Silicon's ESG Governance Structure
Investor exchange conferences, reception of shareholder visits, response to
Shareholders and investors
shareholder hotline consultations
ESG Management Practice Customers Phone communications, periodic follow-ups
Hoshine Silicon is committed to truly applying the ESG concept to the practice of promoting the sustainable development of the Tender meetings, supplier evaluation processes, collaborative exchanges,
Suppliers and partners
enterprise and acting as a promoter of high-quality ESG actions in the industry. While focusing on the high-quality development industry forums
of its main business, we actively assume social responsibilities, pays attention to the demands of stakeholders and responds to
them in a timely manner, so as to enhance its corporate influence and work hand in hand with value chain partners to promote the Internal communication platforms, employee satisfaction surveys,
Employees
prosperity of the industry. employee visits and care
In addition, we attach great importance to the corporate sustainable development strategy and practice, constantly improve Local communities Community activities, volunteer services
the understanding of ESG by the Board of Directors and management, and promptly adjust the Company's ESG development
direction. The members of the Board of Directors of Hoshine Silicon actively participate in ESG knowledge training, keep abreast of Company website, daily communications and responses, public opinion
Media and public
the changes in exchange rules and updates of regulatory policies related to ESG, important industry news on key ESG issues, and monitoring, information disclosures
analysis and sharing of ESG-themed case studies, etc., so as to improve the relevant skills and capabilities of the Board of Directors'
members in sustainable development, and thus enhance the Company's ESG governance level.
Responsible Hoshine, Refined Governance/
Matrix of Material lssues
Hoshine Silicon employs policy benchmarking, industry research, in-depth interviews, and questionnaire surveys to collect During the Reporting Period, we identified 25 ESG issues in combination with corporate development strategy and industry-
and analyze stakeholder inputs, constructing a multi-dimensional issue identification mechanism that accurately pinpoints the specific considerations, comprising 15 highly important issues, 8 moderately important issues, and 2 generally important issues.
dimensions of core concerns and develops the Company's list of major issues. Based on the importance assessment results from
all key stakeholders, we prioritized ESG-related issues to establish the important issue matrix, which was subsequently reviewed
and approved by the Board of Directors in alignment with corporate strategy and operational policies to confirm the priority order
Hoshine Silicon's 2024 Matrix of Material lssues
of major issues.
Moderately Important Issues Highly Important Issues
Preliminary Identification of Major Issues
he Company's potential major issues were preliminarily identified through policy interpretation and analysis,
T Energy Usage
Corporate
reference to industry peers' practice, and organization of our current status. Governance
Employee Remuneration
Occupational
and Benefits
Resource Usage Health and
Safety Compliance Employment
Stakeholder Communication Supply Chain Security Emissions Management
Clean Technology and Opportunities Product Quality
R&D Innovation and Safety
Through interviews and exchanges with key stakeholders (investors, customers, regulatory authorities, etc.), we Environmental
Importance to Stakeholders
Risk Management
prioritized major issues according to stakeholders' focus areas. ESG Governance
Management
Business Ethics
Diversity and Equality
Biodiversity Circular Economy
Employee
Development
Climate Change Tackling
Assessment of Major Issues Privacy and Information Security
Responsible Marketing Customer Service
ligned with global sustainable development goals, our strategic direction, and stakeholder concerns, we
A and Experience
established our major issue matrix and made corresponding adjustments based on the situation of the industry
and the Company. Rural Revitalization
Contributions to the Society
Environmental Issues
Review and Disclosure Social Issues
The Board of Directors reviewed major issues and disclosed them in the 2024 ESG Report. Governance Issues
Generally Important Issues
Employee Issues
Importance to Hoshine Silicon
Hoshine Silicon's Major Issues Identification Process
Responsible Hoshine, Refined Governance/
Business Ethics Proactive review Reactive review
onduct supervision and audits through routine and
C ccept and address internal and external complaints
A
Hoshine Silicon strictly complies with laws and regulations including the Criminal Law of the People's Republic of China ,
specialized monitoring and reports regarding compliance issues
the Anti-Unfair Competition Law of the People's Republic of China , and the Interim Provisions on Banning Commercial
Bribery , having improved and updated management systems such as the Employee Conflict of Interest Management Policy . Incorporate the management modules from the Basic pon receipt of reports, the department conducts a
U
All employees are required to sign the Integrity and Self-disciplinary Commitment Letter and Employee Conflict of Interest Norms for Enterprise Internal Control into daily audits preliminary review immediately to judge the authenticity,
Disclosure Form upon onboarding, respecting market competition principles and supporting and maintaining a fair and and supervisions reasonableness, and urgency of the reported content,
free market competition environment. We oppose all forms of commercial bribery, extortion, fraud, money laundering,
and assigns it to each local internal control department
monopoly, and unfair competition, maintaining zero tolerance towards any unethical business conduct. During the upervise and inspect risk control activities and
S
for investigation based on region
Reporting Period, Hoshine Silicon incurred no fines or settlements related to unfair competition, conflicts of interest, money measures implemented by various departments, guided
laundering, or insider trading. by a risk investigation checklist
Whistleblowing and Investigation Mechanism
We have established an open business ethics reporting platform to encourage stakeholders, including company employees,
We have established a top-down business ethics management
Board of Directors suppliers, and business partners, to report any misconduct against business ethics to us. The Company has implemented internal
system that clearly defines responsibilities for business
systems such as the Whistleblower Reward System , which fully defines specific situations to be reported, assigns departmental
ethics management at all levels to foster a sound business
responsibilities, and outlines post-reporting measures taken.
ethics cultural atmosphere. Hoshine Silicon's Board of Audit Committee
Directors has set up an Audit Committee responsible for
monitoring the effectiveness of compliance management
systems and relevant policies. The Company's Internal Whistleblowing Channels Whistleblower Protection Measures
Internal Control Department
Control Department serves as the primary supervision and Phone and WeChat We clearly stipulate that the information of whistleblowers
management department for business ethics management Email: hs_tousu@hoshinesilicon.com will be strictly kept confidential. Except for the members
related matters, conducting regular and irregular supervisions Functional Departments of the Board of Directors, other personnel have no right to
and inspections of business activities across all functional access the information related to the whistleblowing.
departments, branches and subsidiaries, while investigating Hoshine Silicon's Business Ethics Management System
and addressing any unethical business conduct to ensure
effective maintenance of our business ethics management. Whistleblower Rewards
We provide rewards to employees who actively monitor and report corruption behaviors, promoting the continuous
The Company has joined the China Enterprise Anti-Fraud
monitoring of any potentially unethical, illegal, or dishonest activities.
Alliance, adhering to its covenant by committing to not offer
or accept bribes in business activities, operating with integrity
and fair competition, and continuously implementing or
executing effective anti-bribery policies. Additionally, we also Anti-Fraud Alliance Sunshine Integrity
Alliance
joined the Sunshine Integrity Alliance with the mission of
"integrity operations" to jointly create a trustworthy business
environment for consumer confidence.
Business Ethics Alliance
Business Ethics Regulation
We integrate the audits and supervision of business ethics risks into both routine and specialized management work to further
enhance the effectiveness of our anti-corruption and business ethics management.
At the audit level, Hoshine Silicon examines the execution of business ethics policies during business cycle audits, such as verifying
the inclusion of the Supplier Commitment Letter for Integrity Cooperation in procurement contracts, thereby ensuring business
ethical conducts are effectively implemented at the business level. In 2024, we conducted sales-collection and procurement-
payment business cycle audits at Jiaxing Hoshine, with no instances of unethical business conduct identified temporarily.
At the supervisory level, to ensure effective execution of risk management measures, The Company's Internal Control Department
supervises high-risk business ethics links through proactive and reactive reviews, guaranteeing the effective implementation of risk
management work into daily work and reducing the occurrence of non-compliant incidents.
Responsible Hoshine, Refined Governance/
Construction of Compliance Culture
Data Security and Customer
In order to encourage more employees to participate in the cultural construction of anti-corruption and anti-fraud, we actively
conduct employee professional ethics training, implementing the concepts of openness, transparency, and integrity in public Privacy Protection
service. Our aim is to build a team of compliant talents and strengthen the clean and upright corporate atmosphere. During the
reporting period, Hoshine Silicon organized business ethics and anti-corruption training covering directors, senior management, Hoshine Silicon deeply understands that information security is the key to the cornerstone of the Company's sustainable
and employees, ensuring personnel at all levels realize the importance of business ethics. development and customer trust. The Company strictly complies with laws and regulations such as the Cybersecurity Law
of the People's Republic of China , the Data Security Law of the People's Republic of China , and the Personal Information
Protection Law of the People's Republic of China , and formulates internal systems such as the Information System Security
Management Regulations and the Information Equipment Management System to ensure the continuity of business
Mail Push Induction Training for New Employees operations and the integrity of data, guiding Hoshine Silicon to practice the management of information security and data
security.
Send a mandatory learning document, i.e. A Letter Conduct new employee induction training once
from the Internal Control Department to New a month, which includes content related to anti-
Employees , to each new employee, reminding them of corruption, anti-bribery, and anti-fraud We have established a leading group for network information security to comprehensively implement the main responsibility for
working with integrity and be brave enough to report network information security, improve the protection ability of network information security, and build a solid line of defense for
incidents that violate business ethics information security.
Main Responsibilities of the Leading Group for Network Information Security
Hoshine Silicon Business Ethics Training
I mplement the deployment and requirements of superior network information security work, ensuring that the
network information security is at Level 2 or above
Hoshine Silicon Anti-fraud Training Formulate network information security management systems to ensure the secure operation of network information
Be responsible for carrying out inspections of network information security work, coordinating and planning as the
On April 26, 2024, in order to enable employees to have a clearer understanding of the harm of fraud, Jiaxing Hoshine
whole the emergency response to network information security incidents
shared anti-fraud related knowledge with all employees at the employees' congress. The content included what fraud
is, fraud around us, how to detect fraud, what the precursors of fraud are, and the "people's war" against fraud. This Regularly conduct education and training on network information security
enhanced employees' compliance awareness and laid a solid foundation for the Company's clean culture construction and
sustainable development.
Meanwhile, the Company follows the Emergency Response Plan for Network and Information Security to execute an emergency
handling mechanism for information leakage, aiming to prevent potential information security risks. When an information leakage
incident occurs, the Operations Department of Hoshine Silicon will strictly adhere to the emergency plan response mechanism.
Through the monitoring of security equipment and alarm information, it will quickly identify the cause of the security incident,
promptly address information security threats, and compile a post-incident analysis report after the incident is resolved. Then, it
will report to the Company's management in accordance with the information security incident management process, preventing
and minimizing the network and information security emergencies and the resulting damage. During the Reporting Period, there
were no data or privacy leakage incidents at Hoshine Silicon.
Hoshine Silicon Anti-fraud Training Scene
Responsible Hoshine, Refined Governance/
To strengthen cybersecurity management and the protection capabilities of business systems, Hoshine Silicon has effectively
After receiving reports of potential safety hazards, promptly update system patches to fix the vulnerabilities improved its ability to handle cybersecurity incidents and its security protection capabilities against external risks through tasks
such as data protection encryption upgrades, information security attack and defense drills, and third-party vulnerability analysis.
Delete or restrict access to pages that leak sensitive information without affecting businesses or functions Data Protection Encryption
Strengthen access control to systems and data, and implement strong password policies, multi-factor authentication,
access permission management, etc. to ensure that only authorized personnel can access sensitive information.
Blur relevant sensitive information on the server side Green Shield must be installed on all office computers in the Company, and the decryption requests and permissions
must be strictly managed, with a "whitelist" implemented for mobile storage devices.
Information Security Attack and Defense Drills
Conduct strict inspections on the data returned by the server side to ensure that the queried data is ctively carry out internal attack and defense drills. By simulating real-world attack scenarios, test the defense
A
consistent with the data displayed on the page capabilities and operating environment of internal systems.
uring the reporting period, we repaired system vulnerabilities discovered during the drills, and optimized security
D
Hoshine Silicon's Emergency Response Mechanism for Information Leakage configurations to enhance the overall security of the system.
Third-Party Vulnerability Analysis
Have a third-party conduct a comprehensive review of the enterprise's information security, and promptly repair and
update relevant software, systems, or equipment, including patching applications and upgrading systems. During the
reporting period, we identified a total of 95 high-risk vulnerabilities, 569 medium-risk vulnerabilities, and 635 low-risk
vulnerabilities.
Hoshine Silicon's Information Security Protection Measure
The Company attaches great importance to and is committed to continuously cultivating employees' awareness of information
security. Through regular holding of information security training and information security publicity and education, employees are
encouraged to actively identify and prevent potential information security risks, and continuously strengthen the cultivation of all
employees' awareness and capabilities of information security protection.
Hoshine Silicon Information Security Experience Zone
During the National Cybersecurity Week from September 9 to 15, 2024, Hoshine Silicon actively responded and deeply
participated in the event. We have specially set up an information security experience zone, allowing employees to
experience various security threat scenarios immersively, such as simulated hacker attacks and handling of data leakage
crises. Through these highly interactive and practical drills, employees can intuitively feel the importance of information
security and learn how to effectively identify and respond to potential risks in their daily work, strengthening employees'
awareness of information security.
Hoshine Silicon Cybersecurity Training
In order to enable employees to better use security tools such as firewalls, intrusion detection systems, and anti-virus
software, and to learn to actively use vulnerability scanning tools to promptly detect and fix system vulnerabilities, we
have carried out cybersecurity training for employees. The training content includes the basic concepts of information
security, common threats, and security protection measures. By explaining national and local information security laws and
regulations, as well as the Company's internal information security policies and processes, the training enables employees
to be aware of the correct handling procedures for information security incidents and standardizes the Company's
information security management.
Future Hoshine, Green Leadership/
Environmental Part 02
Future Hoshine,
Green Leadership
Hoshine Silicon regards environmental protection as its own responsibility and
unswervingly implements the green development leadership strategy. The Company is
committed to becoming a global leading supplier of sustainable silicon-based industry
chains. We earnestly carry out energy and greenhouse gas management, environmental
management, pollutant prevention and control, and resource utilization management
in all aspects of production and operation, gradually exploring the action path to
address climate change, so that we strive to achieve green, low-carbon, and long-term
development, and integrate the concept of green production throughout the entire
production process.
Low-carbon Operations 26
Environmental Management 35
Pollutant Discharge 41
Resource Usage 46
UN Sustainable Development Goals Corresponding to This Chapter
Future Hoshine, Green Leadership/
Low-carbon Operations Strategy
Based on industry research reports, relevant policies issued by regulatory authorities, peer benchmarking, and external information
We actively respond to the national "dual carbon" strategic goals, implement the concept of sustainable development, retrieval, Hoshine Silicon understands the list of potential climate risks, and assesses the expected time dimension of the
and are committed to becoming an active participant in and contributor to the low-carbon transformation of the industry. occurrence of risks and the degree of potential impact. According to the results of the climate risk assessment, the Company jointly
The Company incorporates climate change into its sustainable development management, actively explores low-carbon discusses and formulates countermeasures with relevant business departments. In the identification of climate opportunities, we
development models, and implements green operations into practical actions by continuously optimizing production also combine mainstream practical cases to explore our climate opportunities.
processes and improving energy utilization efficiency.
Potential
Risk Category Risk Description Response Measures Time Scope
Impact
Climate Change Tackling
Extreme weather conditions (such as Establish a tracking mechanism for
heavy rain, typhoons, heavy snow, meteorological information, formulate
floods, high temperatures, and severe management processes for extreme
Increased
cold) may lead to traffic disruptions, weather warnings and emergency
operating Short-
Climate change is a major global challenge facing humanity today. With reference to the recommendations and guidance of the Acute damage to factory buildings, disaster response measures, and
costs, asset term
and limited raw material supply, conduct long-term prevention and
Task Force on Climate-related Financial Disclosures (TCFD), Hoshine Silicon incorporates climate change into its overall ESG resulting in production interruptions, effective response to sudden natural
impairment
management process, actively conducts the identification of climate change risks and opportunities, explores effective carbon depreciation of fixed assets, or work- disasters such as extreme cold,
reduction measures, and promptly reviews the effectiveness of its climate strategy and the achievement of carbon reduction related injuries and fatalities. typhoons, heavy rain, and floods.
Physical
measures, comprehensively enhancing the Company's ability to address climate change.
Risk The rise in average temperatures will Continuously identify potential risks of
Governance
lead to increased production costs in climate change and formulate plans to
each factory, greater production risks, enhance the capability to adapt to rising
decreased employee productivity, and temperatures; Increased
Hoshine Silicon has established a climate governance structure covering the "decision-making level - organizational level Chronic increased energy consumption for Set up backup energy supply plans and operating Long-term
- execution level", and clearly defines the management responsibilities at each level, effectively promoting the orderly maintaining normal production (such consider the stability of energy suppliers costs
as temperature and humidity), which to address the stability of energy supply
implementation of management work for addressing climate change, continuously improving the effectiveness of climate change
in turn will affect company's operating during extremely hot periods.
governance, and driving the low-carbon development of the whole industry chain. costs and capital investment.
Strengthen the carbon emission
Be responsible for supervising and reviewing climate change-related strategies management system, continuously
track the established environmental
upervise the performance of annual climate change-related policy management and the progress
S
goals, and establish a management
of goals
Board of mechanism for carbon emission
eview the measures for addressing climate change submitted by the Strategy and Sustainable
R performance assessment indicators;
Directors With the gradual tightening of carbon
Meet the current regulatory compliance
Development Committee emission management, there may be Increased
Policy and requirements through measures Med-and-
requirements for the carbon emissions operating
law such as optimizing the energy long-term
of products, leading to an increase in costs
Identify, determine and assess the risks and importance of climate change issues structure, strengthening scientific
company's operating costs.
and technological innovation, and
Strategy and Supervise, evaluate and review the policies, management, performance and progress of relevant promoting the empowerment of digital
Sustainable goals regarding climate change issues. Examine external trends related to climate change, as well as technologies, and take responses
Development risks and opportunities, and mitigate the adverse impacts of climate change on the Company measures in advance to emerging
Committee
Formulate and review the Company's vision, goals and strategies related to climate change, regulations that may or are about to be
introduced.
and actively communicate with the Board of Directors on the measures and actions required to
improve the Company's performance in addressing climate change Transition Pay attention to the raw material
risks market, ensure timely access to raw Increased
Suppliers are affected by climate
material price information and changes operating
Implement the Company's decisions and deployments for addressing climate change risks, resulting in rising Med-and-
Market in energy policies to make responses; costs,
raw material prices and increased long-term
change, and continuously improve the participation of specialized departments optimize supplier management and decreased
production costs.
ESG Working Group in climate change management regularly analyze the risks of raw revenue
Follow up on the execution of climate change management measures, and follow
material supply.
up on the progress of relevant performance and goal achievements Customers, consumers, and other
relevant parties are increasingly
Responsible for internal communication and external liaison concerned about company's
performance in terms of brand values
Continuously promote R&D innovation Decreased
Hoshine Silicon's Climate Change Governance Structure and climate change response; if
in low-carbon products, and implement revenue,
Reputation company does not actively carry out Long-term
the concept of green and low-carbon in decreased
climate change response actions,
We have provided the members of the Board of Directors with training on the theme of climate change in the form of knowledge the production and operation process. asset value
it may not be able to meet the
sharing by external experts, etc., to support them in acquiring the necessary professional knowledge, so that they are competent in expectations of stakeholders, resulting
the management and supervision of climate change-related issues. In order to ensure the effective execution of various measures, in damage to its own image and
Hoshine Silicon has incorporated climate change-related quantitative indicators into the performance assessment scope of reputation.
relevant management personnel to incentivize and commend their contributions in the field of climate change.
Future Hoshine, Green Leadership/
Opportunity Category Opportunity Description Potential Impact Response Measures Indicators and Goals
Accelerate the development of new Hoshine Silicon formulates energy consumption goals that are in line with the actual situation based on the production status
Against the backdrop of the "dual carbon" goals, energy emerging markets and strengthen
New energy public sectors, customers, and consumers cooperation, provide more products
of each business line, taking the business divisions as units, and links the key performance indicators of climate change and
Increased environmental management with the performance assessment of relevant core management personnel. In the future, we will
and e-mobility prefer climate-friendly products and services, and services that meet market needs
revenue
emerging markets and there is a wide demand for new energy and and expectations, and achieve long- formulate carbon emission goals at the Company level in combination with our own operating situation to effectively promote the
e-mobility transformation. term sustainable growth of business and realization of the Company's environmental and climate change goals and solidly promote the carbon reduction work.
revenue.
Hoshine Silicon is well aware that Scope 3 Emissions is an important part of the greenhouse gas emissions in the enterprise
Increase the proportion of renewable value chain. As of the release date of this report, the subsidiaries Shanshan Electric Power, Hoshine Thermal Electric, and Jiaxing
energy application in the production and
With the R&D and innovation of green
operation links, reduce direct energy costs,
Hoshine have disclosed their carbon emission situations. In the future, we will continuously improve our ability to identify and
technologies and the introduction of supportive Reduced energy measure carbon emissions throughout the whole industry chain, enhance the transparency of climate data in the value chain, and
Renewable energy meet the needs of downstream customers,
policies, the accessibility of renewable energy costs, increased
transformation and at the same time respond to the lay a solid data foundation for formulating scientific and reasonable goals.
will gradually increase, and the price may revenue
regulatory pressure and low-carbon goals
gradually decrease.
faced by the Company in the terminal
market.
Category Unit 2024
Scope 1 tCO2e 9,065,365.27
Impact, Risk and Opportunity Management
Scope 2 tCO2e 8,838,382.528
Total greenhouse gas emissions
In order to enhance the resilience to climate change, effectively grasp and control climate-related risks and opportunities, tCO2e 17,903,747.80
(Scope 1 + Scope 2)
Hoshine Silicon continuously strengthens its risk management capabilities, integrates climate change risks into the existing risk
management framework of the enterprise in stages, and is committed to gradually reducing the impact of climate risks on the
enterprise during the operation process to the minimum. Greenhouse gas emission intensity
tCO2e / RMB one million of revenue 670.75
(Scope 1 + Scope 2)
Analysis and Screening of Climate Change Risks and Opportunities Hoshine Silicon's Scopes 1 and 2 Greenhouse Gas Emission Situations
Analyze climate change risks and opportunities based on the TCFD framework and the practices of peers.
ombined with the internal situation of the Company and the external environment, each functional department
C
jointly screens out the climate change risks related to Hoshine Silicon.
Determination and Assessment of Climate Change Risks and Opportunities
CO2
Based on the analysis of industry characteristics and the opinions of stakeholders and external experts, clarify the
specific climate change risks and opportunities applicable to Hoshine Silicon.
For the confirmed climate change risks, assess their impacts on the Company's business, and assess factors such as
the likelihood, impact, adaptability, and resilience of climate change risks and opportunities, so as to determine the
priority of relevant management strategies.
Formulation of Climate Change Risk Response Plan
Formulate effective response plans for the identified risks and regularly supervise the progress and results of risk
response work for major climate risks.
I n the future, based on the characteristics of its own industry and business operations, analyze the factors for financial
importance assessment to determine the climate-related financial impacts.
Hoshine Silicon's Climate Change Risk Management Process
Future Hoshine, Green Leadership/
Energy Usage and Carbon Emissions Management
Hoshine Silicon continues to promote the certification work of the energy management system and continuously improves its own
Hoshine Silicon strictly complies with the requirements of laws and regulations such as the Law of the People's Republic of China energy management level. As of the end of the Reporting Period, subsidiaries Western Hoshine, Jiaxing Hoshine, Shanshan Silicon
on Energy Conservation and continuously optimizes its energy management system. We have increased the intensity of low- and Luzhou Hoshine have all obtained relevant certifications for the energy management system such as ISO 50001.
carbon scientific and technological innovation for energy conservation, optimized the management of production processes,
and continuously adopted new technologies to reduce energy consumption. While achieving energy conservation and emission
reduction, we have also effectively managed operating costs and strived to achieve the green, low-carbon, and sustainable
development of the enterprise.
Energy Management System
We continuously carry out the work of establishing and improving the energy management system. For each production base,
we formulate a series of management requirements for energy sources such as coal, natural gas, and electricity in terms of usage,
metering, statistical reporting, consumption costs, etc., including the Enterprise Energy Management System and the Energy
Conservation Management System . We are committed to reducing unnecessary energy consumption while meeting production
needs.
Hoshine Silicon's Energy Management System Certification Certificates
Hoshine Silicon continues to strengthen the construction of its own energy management system. A three-tier energy management
structure covering the general manager of the business division, the chief engineer, and the team leader of the production
department has been established at the business division level, and corresponding responsibilities are defined based on the
specific situations of the persons in charge at each rank. During the Reporting Period, Hoshine Silicon linked energy budgets to the
performance of the corresponding departments, aiming to encourage departments to actively take measures to reduce energy consumption, Energy Management Measures
improve energy utilization efficiency, and promote the overall improvement of the enterprise's energy management level.
Combined with the current energy consumption model of Hoshine Silicon's industries, we have carried out measures such as
optimizing production processes, improving equipment energy efficiency, and adjusting the energy consumption structure,
Team exploring the energy conservation and carbon reduction paths of Hoshine Silicon based on multiple effective measures.
leader Bear the overall responsibility for energy management work.
Implement and urge departments to execute laws, regulations, rules, policies, and In order to have an in-depth understanding of the energy consumption status of each product, the Company promotes the
development of product carbon footprint certification work, aiming to accurately grasp the carbon emission situation, clarify the
guidelines related to energy management.
General carbon emission reduction goals and paths, and actively promote the enterprise's transformation towards green and low-carbon,
Incorporate energy management work into the enterprise's economic and social
manager laying a solid foundation for achieving sustainable development goals. As of the end of the Reporting Period, the silicone rubber
development plans and annual plans, and organize the preparation and implementation products of Hoshine Silicon have successfully obtained carbon footprint certification, and the carbon footprint certification work of
of med-and-long-term special energy management plans and annual energy photovoltaic products is also being actively promoted.
management plans.
Encourage and support research on science and technology in energy management. We actively participate in the carbon trading market and efficiently complete the performance tasks through scientific formulation
Deputy of trading strategies. At the same time, we are committed to promoting the discussion of carbon market policies and the
team formulation of standards, demonstrating the responsibility of power generation enterprises in addressing climate change and
leaders Be responsible for the energy management work of the entire enterprise, supervise and
promoting energy transformation. During the Reporting Period, Shanshan Electric Power and Hoshine Thermal Electric, as
guide each department to implement the indicators, and conduct annual assessment.
Chief engineer, deputy general
power generation enterprises, have been respectively incorporated in the list of key greenhouse gas emission units in Xinjiang
manager of production, deputy ake measures to reduce energy consumption, losses, and emissions, and implement
T Autonomous Region and Xinjiang Production and Construction Corps in 2024. Among them, Shanshan Electric Power and Hoshine
general manager of maintenance, the strategy of combining conservation and development. Thermal Electric have full payment of carbon emission rights
assistant to the general
manager Reasonably adjust the structure, promote the reduction of energy consumption, and for the year 2023 in 2024. Currently, they are waiting for the
eliminate backward production capacity, improving energy utilization efficiency. carbon emission verification institution assigned by the
Incorporate energy management into the training system. superior environmental protection competent department to
verify the 2024 emission situation of the factories. After that,
Members
the payment work will be carried out in an orderly manner. This
I mprove the energy statistical indicator system, improve and standardize energy is in line with the relevant national management regulations.
Head of Operation Department, statistical methods, ensuring the authenticity and integrity of energy statistical data.
head of Environmental On the management side, we actively advocate energy
Actively carry out the publicity of energy management knowledge and energy conservation
Protection Department, conservation behaviors such as turning off lights when not
head of Fuel Transportation technology training, and support service work such as energy management and energy
Department, head of in use in each business division, standardize the turning off
Warehousing Department, conservation consultation, design, assessment, testing, auditing, and certification. of lighting equipment as much as possible without affecting
director of Testing Center,
stablish an energy management goal responsibility system and a system for analyzing
E normal production, and regularly conduct general knowledge
head of Production Technology
Department, head of Safety energy consumption statistics and energy utilization status. and compliant operation training related to energy conservation
Supervision Department and carbon reduction and clean production. In the actual
production process, employees strive to reduce waste and losses
caused by "runs, spills, drips, and leaks" and non-standard Carbon Footprint Certification Certificate of Silicone Rubber
Energy Management Structure at the Business Division Level of Hoshine Silicon operations, and improve resource utilization efficiency. Products
Future Hoshine, Green Leadership/
Carbon Emission
Business Carbon Emission
Reduction Project Description Business
Segments Reduction Project Description
Measures Segments
Measures
Silicon Automated power distribution: we implemented optimized electric furnace power management
metal system, reducing energy waste through automated power distribution. Adding a waste heat boiler: by adding a waste heat boiler, the waste heat of the flue gas is effectively
converted into reusable energy, enabling the utilization of a large amount of high-temperature flue gas
generated during the production process and improving the economic benefits of the enterprise.
Optimization of synthesis process: by introducing high-efficiency catalysts and precisely adjusting
the reaction conditions, the conversion rate of a single reaction has been significantly improved;
at the same time, through designing the pipeline layout and selecting high-efficiency mixing
equipment, we ensure the uniform distribution and full mixing of raw materials, effectively curbing Silicon Fan transformation: we carry out an integrated transformation of the dust treatment system,
the local overheating phenomenon and significantly reducing the energy loss. metal focusing on the upgrading of key equipment such as the main environmental protection fan and the
dust collector. We implement a modular compartment addition transformation of the dust collector,
which significantly improves the system's treatment efficiency. Based on the real-time data of the dust
Waste heat utilization: by installing heat exchangers, we collect the waste heat generated in high- concentration, the operation parameters of the equipment can be dynamically optimized. After the
temperature processes such as steam generators, and convert the waste heat into effective thermal transformation, the operation energy consumption of the system is significantly reduced, the dust
energy that can be used in other relatively low-temperature production links, realizing the reuse emission stably meets the standard, and the operation and maintenance cost is reduced simultaneously,
of thermal energy resources, significantly reducing the overall heating demand in the process, and forming a virtuous cycle of coordinated optimization of environmental protection treatment and energy
effectively improving energy use efficiency. efficiency.
Silicone
By-product utilization: we adopt the newly developed technology to convert by-products into high-
value-added products, significantly increasing the production capacity of a single set of silicone Addition of a hydraulic turbine: the hydraulic turbine has been commissioned and put into use.
monomer unit. Its performance during operation meets expectations. It can drive the fan to meet production needs
just under the action of the recycled return water, without the need for an auxiliary motor to operate,
achieving cost reduction.
Recycled use of condensate water: the condensate water generated during the production process
is re-used into the system as a cooling medium or for other purposes after appropriate treatment,
Production process which not only reduces the demand for freshwater resources but also saves the energy required for
optimization heating water resources, effectively improving the utilization efficiency of water resources. Improvement of Equipment technical transformation: through innovative design and optimization of the internal
Strengthen energy equipment energy components of the fluidized bed reactor, the methyl chloride gas distributor, and the gas-solid
recovery, effectively efficiency separation cyclone equipment structure of key devices, and by developing a new catalytic system and
utilize the waste Waste heat utilization in the calcination workshop: we install a waste heat boiler system at Implement energy studying its synergistic effect with the quality of silicon metal, the Silicone R&D Center has successfully
heat, residual the tail of the flue gas, redirect the reused waste heat to the production links that require a conservation Silicone increased the production output of methyl chlorosilane and the operation cycle of the device.
pressure and other specific temperature for operation, effectively reducing the flue gas emission temperature. After transformation
Carbon
energy sources the implementation of the technical transformation, all the steam produced annually by the of equipment to
generated during the newly added waste heat boiler is reused in the production system, significantly reducing coal improve equipment
production process, consumption. energy efficiency Application of innovative technologies: Our innovative applications include advanced distillation
and improve energy and reduce energy equipment, process technology in chloromethane systems, and energy-efficient machinery for large
utilization efficiency Technical transformation of low-temperature denitrification: we remove the high-temperature waste units of utility systems, collectively delivering notable energy-saving benefits.
catalyst and replace it with a medium-temperature catalyst, enabling the denitrification system to
Energy
be put into operation at the initial stage of the unit's startup and accelerating the system's entry
into an efficient state.
Elimination of old equipment: we eliminate old equipment with high energy consumption and
Energy conservation in poly-silicon production process: waste heat energy conservation introduce new efficient and energy-conserving equipment. This measure not only significantly reduces
and adopt the multi-tower coupling technology of the distillation column, which greatly reduces the
steam consumption.
for the production of chlorosilane, which greatly reduces the silicon consumption. in the production process of the carbon segment. To achieve the energy conservation goal, we
Carbon
comprehensively select equipment with an energy efficiency level at Grade 2 or above. This helps the
Energy conservation in monocrystalline silicon and monocrystalline silicon wafer process: business division reduce energy consumption, save costs, and reduce carbon emissions.
energy conservation by changing the thermal field structure and water cycle
crystal pulling process is reduced, thus achieving the goal of reducing power consumption.
Energy conservation optimization of the cold end of the steam turbine: On the basis of the air-
Photovoltaic 2. The pure water used in the slicing process is recycled after passing through a filter press, reducing
cooling system, a peak cooling unit is added to divert steam for cooling during summer. During spring,
water consumption.
autumn, winter, or under low-load conditions, the air-cooling fans operate at variable frequency while
the peak cooling unit is shut down to increase the unit operations
Energy conservation in the solar panel process: thermal energy recovery
The compression heat generated by the air compressor is recovered and reused by being supplied
to the equipment in the workshop that requires heat, thereby saving energy consumption. Energy
Energy conservation transformation of the vacuum pump: we install a pre-condenser on the
vacuum extraction header pipe to pre-cool the moist gas, reduce the volume flow rate of the medium,
Energy conservation in the photovoltaic glass process: optimization of the kiln burner lower the power of a single pump, and recover the condensed water; we develop an intelligent two-
We optimize the distribution mechanism of natural gas among the burners, making the melting stage triple-cone vacuum system that reduces energy consumption through flow path optimization,
temperature curve in the kiln more reasonable, thus significantly improving the glass melting while integrating real-time monitoring and early warning functions to achieve synchronous
quality and reducing the natural gas consumption per unit in the glass production process. improvement in electricity, water, and coal utilization efficiency.
Future Hoshine, Green Leadership/
Environmental Management
Hoshine Silicon incorporates environmental protection and sustainable development into its corporate development
Carbon Emission
Business strategy, continuously enhancing environmental management capabilities. The Company practices green operations,
Reduction Project Description
Segments implements chemicals management, and prioritizes biodiversity conservation work, striving to build an eco-friendly
Measures
enterprise.
Capacity increase transformation of the mill: we replace key worn components and optimize the
structural strength; upgrade the rotary separator system, retain the motor and variable frequency
control module, and replace core solar panels such as the rotor as a whole to improve the
Environmental Compliance Management
separation efficiency of pulverized coal; reconstruct the casing sealing system, transform the tie rod
sealing device and the structure of the manhole door to increase the output.
We strictly comply with national environmental laws and regulations, including the Environmental Protection Law of the People's
Spraying the boiler with new coating: we implement coating reinforcement technical Republic of China , and have established standards and specifications such as the Environmental Protection Management System ,
Improvement of transformation for the problem of the decline in the boiler's thermal efficiency, and use a new the Environmental Protection Facility Operation System , and the Production Base Environmental Pollution Prevention and
type of composite coating to spray the water-cooled wall of the furnace chamber as a whole.
equipment energy Control Responsibility System to ensure environment protection compliance throughout project construction and manufacturing
efficiency By enhancing the radiation heat transfer efficiency in the furnace, the uniformity of the flame
temperature field is improved, and the heat loss of the flue gas is effectively reduced. After the processes.
Implement energy
conservation transformation, the boiler's thermal efficiency is improved, the coking rate of the heating surface is
Environmental Management System
transformation alleviated simultaneously, the maintenance cycle is extended, and both energy conservation and
Energy
of equipment to efficiency improvement as well as the equipment reliability are enhanced.
improve equipment
energy efficiency Boiler front warm air heater: we carry out the transformation of the boiler front warm air heater To ensure the efficient operation of the environmental
and reduce energy system. By constructing a thermal energy closed-loop system of "condenser-circulating water-warm management system, Hoshine Silicon has established a top-
waste air heater", we introduce the low-temperature circulating water that is idle in winter into the inlet Board of Directors
down environmental management structure, decomposing
air duct of the boiler fan. A two-group modular warm air device is innovatively designed to heat the
environmental management tasks item by item, providing
ambient air to an appropriate temperature, providing an efficient solution for the utilization of the
waste heat from the cold source of power plants in severely cold regions. strong support for continuously promoting the Company's
environmental management. We have formulated an
Performance improvement of the steam-driven feed water pump: we optimize the flow channel environmental management structure in which the general General Manager of
Business Division
structure, and improve the flow capacity by widening the flow-through cross-section and enhancing manager of the business division reports directly to the
the surface finish; innovate the design of the impeller assembly, and adopt streamlined blades Company's Board of Directors, clarifying the environmental
and wear-resistant coating technology to improve hydraulic efficiency and cavitation resistance;
management responsibilities and authorities at each level,
reconstruct the sealing system, and select high-temperature and high-pressure sealing materials
and precisely control the clearance between the moving and stationary parts, enabling the two gradually strengthening the implementation and supervision
units after the transformation to completely get rid of the dependence on the electric pump. of environmental management responsibilities, and further
Heads of the Safety and Environment
improving the enterprise's environmental governance level and Departments of Each Subsidiary
environmental performance.
Adjustment Selection of new energy lighting equipment: we successively install solar streetlamps within and Hoshine Silicon's Environmental Management Structure
of the energy around the factory area to save electricity.
consumption
Environmental Risk Management
structure
we continuously
optimize the energy Carbon
structure, increase
the proportion Replacement of furnace gas used for gas generator with natural gas: we have eliminated the In terms of environmental risk management, Hoshine Silicon strictly follows the requirements of the Measures for Emergency
of clean energy double-stage gas generator, and used a new natural gas transportation and decompression system, Management of Environmental Emergencies , the Interim Measures for the Administration of the Filing of Emergency Plans
use, reduce the gradually replacing the original gas combustion system with a natural gas combustion system, and for Environmental Emergencies in Enterprises and Public Institutions (Trial) and other regulations, and regularly conducts
consumption significantly improving energy utilization efficiency.
investigations for hidden dangers of sudden environmental risks. At the same time, we organize each business division to
of traditional
formulate the Emergency Response Plan for Environmental Emergencies and file it, clarifying the emergency response procedures
energy sources,
and effectively and handling measures, which effectively enhances the ability and level of the enterprise's internal response to environmental
reduce the energy risks. During the Reporting Period, Hoshine Silicon did not have any major environmental pollution incidents, environmental
consumption during
Construction of photovoltaic project: photovoltaic power generation project in Shanshan County,
administrative penalties or accidents such as excessive pollutant discharge or illegal discharge.
the production
Turpan City
process. At the same time, through a comprehensive and meticulous environmental risk assessment process, we systematically identify
To ensure the stable supply and efficient utilization of energy, Shanshan Electric Power plans to
Energy
invest in and construct a photovoltaic power generation project in Shanshan County, Turpan City. various potential environmental risk points. Relying on professional environmental audit methods, we conduct in-depth
It is expected to adopt various models of energy storage systems to improve energy utilization verification and confirmation of the actual environmental risk situations of each business division to ensure the accuracy of risk
efficiency and reduce losses.
identification.
Future Hoshine, Green Leadership/
Environmental Compliance Training
Environmental Risk Assessment Project
Hoshine Silicon is committed to integrating the promotion of green environmental protection awareness into different operation
In 2024, Western Silicon Materials carried out a comprehensive environmental risk assessment work through a qualified scenarios such as offices and factory areas. It adopts various methods such as regularly conducting training on environmental
third-party professional institution. This assessment reviewed the environmental risks around the Company, the protection knowledge and typical cases to promote the concept of sustainable development, so as to effectively enhance the
environmental risk substances involved in the operation stage, the existing environmental risk prevention and control environmental risk awareness and response skills of our employees.
system, and the configuration of emergency measures. It carried out scenario analysis focusing on environmental
Special Training
emergencies and their harmful consequences, and conducted a gap analysis of the existing prevention and control system.
The full-cycle management specifications for hazardous waste
The final conclusion of the environmental risk assessment is that the existing environmental protection measures are cover key technical requirements such as storage standards and the
feasible, the potential environmental risks are controllable, and the relevant emergency response work can be effectively setting of identification signs
A deep analysis of the legal system for the prevention and control
carried out in case of environmental emergencies.
of solid waste pollution systematically sorts out the core clauses of
the new solid waste laws, the regulations on the management of
pollutant discharge permits, etc.
Environmental Compliance Audit
In the practice of environmental risk prevention and control, we
strengthen practical combat capabilities through the analysis
Hoshine Silicon regularly conducts internal environmental audits and external reviews to supervise the operation of the of typical cases and simulated emergency handling drills. At the
same time, we publicize the joint law enforcement mechanism
environmental management system and the performance of environmental management work in each business division, and
for environmental violations and crimes related to hazardous
to improve the Company's environmental management level in a targeted manner. In terms of internal audits, we conduct waste, ensuring that managers accurately master the red lines of
environmental impact testing at the already commissioned production bases every year to ensure the compliance of environmental regulations and operation specifications
management. The Company also conducts environmental impact assessments on new construction projects in accordance with
national environmental protection requirements, ensuring the environment protection compliance of new projects. Compliance Training
In addition, the Company regularly accepts daily supervisory comprehensive inspections, environmental management system We strictly implement the requirements of
inspections, special inspections of pollutant discharge permits, special inspections of hazardous waste, etc. by the ecological national environmental protection policies
environment management department at the location of the enterprise, ensuring the effectiveness of the execution of and carr y out training for all employees
environmental management policies and the effectiveness of risk management measures. focusing on the interpretation of regulations
and basic capacity building. By systematically
explaining the latest environmental protection
regulations, standards, and key points of
Environmental Audit Project practical operations, we focus on strengthening
employees' ability to execute daily operation
specifications and emergency handling. We
Environmental audits ensure that the Company can promptly discover and deal with potential environmental problems,
transform environmental protection awareness
effectively guaranteeing the environment protection compliance of the production process. This not only enhances into implementable codes of conduct and
our own ability to respond to environmental risks but also demonstrates the Company's sense of responsibility and continuously consolidate the talent foundation
commitment in environmental protection. for green development
In 2024, both Shanshan Silicon and Xinjiang Silicon Industry New Materials carried out environmental protection audit Green Office
work. Through monthly, quarterly, and annual audits, they continuously tracked and monitored the performance of For office areas that are not involved in production, Hoshine Silicon also formulates relevant environmental management rules
the entire factory in terms of the generation, storage, and disposal of wastewater, exhaust gas, and waste, as well as the and regulations, including but not limited to the Regulations on the Use of Air Conditioners . We continuously conduct inspections
operation of environmental protection facilities, and other dimensions. According to the relevant requirements of the of office areas, and issue management notices on energy conservation and consumption reduction irregularly for the identified
environmental impact approval and pollutant discharge permit report, they formulated an annual self-monitoring plan, phenomena of resource waste, deepening employees' concept of green office practices.
and filled in the monitoring data in real-time on the national platform for archiving, monitoring, and reporting.
Chemicals Management
Environmental System Certification Hoshine Silicon has formulated chemicals management systems such as the List of Chemical Categories and Management System
and the Hazardous Chemicals Management System , establishing a special Safe Production Committee to manage hazardous
chemicals. Employees are strictly required to operate chemicals in a stable, orderly, and accurate manner, ensuring that every step
Hoshine Silicon continuously promotes the certification
of the operation complies with safety specifications.
work of the environmental management system and plans
to continuously extend the ISO 14001 certification to all
production-type affiliated companies of the Company. At
the same time, the Company also continuously conducts the
certification work of clean production and green factories.
As of the end of the Reporting Period, multiple subsidiaries
of Hoshine Silicon had passed the ISO 14001 environmental
management system certification.
Certification Situation of the Environmental Management System of Hoshine Silicon
Future Hoshine, Green Leadership/
Chemicals Supervision
The Company strictly complies with the relevant regulatory requirements of national chemicals management, and comprehensively Chemical Emergency Drills
implements the supervision work of chemicals, including hazardous chemicals. We have established a verification and registration
management system for the entry and exit of hazardous chemicals, and implemented strict supervision and management of the
entire life cycle of chemicals, including procurement, storage, use, and discarding, ensuring the standardization and refinement of The Company attaches great importance to the safety management of hazardous chemicals, and each production base
chemicals management work. actively organizes and conducts multiple emergency drill activities. Through this series of carefully designed practical
drills, we strive to enable every employee to master solid chemical safety knowledge, strengthen their emergency response
ability and practical operation skills in dealing with hazardous chemical leakage accidents, and comprehensively improve
Filing of Hazardous Chemicals our emergency response ability to hazardous chemical leakage accidents.
Drill on the Leakage of the Flange Connection at the Outlet of the Monomer Tank
hen the using department needs to use hazardous chemicals, it must first submit a paper application to the local police station
W
After obtaining approval, the approved application report needs to be uploaded to the precursor chemicals supervision I n June 2024, Shanshan Silicon organized a company-level emergency drill. This drill simulated the leakage accident
system on the chemicals management platform scenario of the flange connection at the outlet of the monomer tank leaking. It was assumed that the shut-off valve
of the storage tank malfunctioned, and a leakage occurred in front of the valve of the outlet pipeline of the storage
tank during the handling by the instrument maintenance workers. Since the workers did not wear protective face
shields, the material splashed onto their faces, causing burns. The drill focused on key links such as personnel rescue,
Procurement and Registration of Hazardous Chemicals
warning and evacuation, fire prevention, plugging and material transfer operations, site cleaning, and environmental
monitoring, comprehensively testing the Company's emergency handling ability for leakage accidents.
he procurement department signs a formal procurement contract with the distributors based on the approval
T
information on the chemicals management platform, followed by procurement of hazardous chemicals
After the goods arrive, the using department needs to promptly enter detailed information such as the usage quantity, Drill on the Leakage Caused by the Falling Off of the Methanol Crane Pipe at the Loading and
specifications, and models of hazardous chemicals on the chemicals management platform, ensuring the accuracy and Unloading Station in the Tank Area
traceability of the data
I n September 2024, Shanshan Silicon
organized a company-level emergency
drill. This drill simulated the accident
Release from Warehouse and Storage of Hazardous Chemicals
scenario of the methanol fluid loading
arm falling off and leaking at the loading
ccording to the actual needs, the using department needs to go through the release procedures from the warehouse in
A
and unloading station in the tank area.
the precursor chemicals supervision system of the chemicals management platform
In the set scenario, the methanol fluid
All hazardous chemicals are strictly stored in special warehouses for hazardous chemicals, and the whole process is
loading arm fell off when the methanol
monitored and managed through the chemicals management platform, ensuring their safe storage and compliant use
tank truck was unloading. The escort of
the methanol tank truck inhaled a large
Hoshine Silicon's Hazardous Chemicals Management Process amount of methanol and fainted after
closing the emergency shut-off valve. At
the same time, due to static electricity,
a fire was ignited. The drill focused on
key links such as personnel rescue,
Emergency Handling Mechanism for Chemicals warning and evacuation, firefighting, site
cleaning, and environmental monitoring,
For the chemicals involved in the workplace, we clearly handles the accident site if appropriate after wearing the further improving the Company's special
inform employees about the chemicals they may come into equipment in accordance with the rules and regulations, emergency handling ability for methanol
contact with and the existing hazards, and post the chemical minimizing the casualties and property losses caused by the leakage accidents.
components and relevant test data at the work site. The accident disaster.
Company has formulated chemicals-related emergency
handling mechanisms such as the Special Emergency Hoshine Silicon adheres to the principle of "prevention
Response Plan for Hazardous Chemicals Leakage Accidents . dominant, drills first" and regularly conducts emergency drills
related to chemical safety, aiming to improve employees'
We follow the principle of "people-oriented, safety first" and emergency handling ability for chemical-related emergencies.
establish a special accident emergency rescue command We attach great importance to cultivating employees'
headquarters, ensuring that in case of emergencies such as emergency response ability. By simulating emergency
chemical leakage, the response and handling work can be situations such as chemical leakage in real scenarios, we train
carried out quickly, orderly, and efficiently. When a hazardous employees to respond quickly and accurately and effectively
chemical leakage accident occurs, the Company immediately control the development of the situation, maximizing the Hoshine Silicon Emergency Drill Site
reports it to the local emergency management bureau, safety of personnel and the environment.
promptly activates the emergency supplies warehouse, and
Future Hoshine, Green Leadership/
Training on Chemical Safety Pollutant Discharge
The Company regularly provides multi-dimensional training, both online and offline, to employees involved in the use of As a leading integrated enterprise in the silicon-based new material industry, the industry chain of Hoshine Silicon runs
chemicals, to enhance their understanding of the properties, characteristics, and potential risks of chemicals. This ensures through multiple business segments such as silicon metal, silicone, carbon, photovoltaic, and energy, covering the entire
that every employee can dispose of chemicals accurately and safely, jointly building a solid defense line for the ecological and process from ore mining, smelting and processing to the manufacturing of high-end materials. Due to significant differences
environmental safety of the enterprise. in the production processes and raw material usage of each business segment, the types of pollutants generated also vary.
In 2024, Hoshine Silicon carried out several systematic chemical knowledge training sessions, covering managers and front-line Combining its own industrial operation situation, Hoshine Silicon customizes and improves the discharge of wastewater,
operating employees. The content included the basic properties and characteristic classifications of chemicals, as well as the exhaust gas, and solid waste in accordance with laws and regulations such as the Water Pollution Prevention and Control
storage management requirements, safety precautions for use, and emergency handling measures in case of emergencies. Law of the People's Republic of China , the Air Pollution Prevention and Control Law of the People's Republic of China , and
the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste , and
norms such as the Law of the People's Republic of China on the Promotion of Clean Production . The Company promotes
Ecosystem and Biodiversity Protection clean production and tries to reduce or eliminate the impact of its own operations on the environment as much as possible.
We deeply understand that biodiversity, as the foundation experiments or uses protected plants and animals as raw
of life on earth, is also an important guarantee for the materials in the production process.
Waste Disposal
sustainable development of enterprises. Hoshine Silicon
strictly complies with relevant laws, regulations, and policies The Company continuously pays attention to the impact
such as the Forest Law of the People's Republic of China , the of its own operations on biodiversity, and focuses on
Regulations for the Implementation of the Forest Law of the the protection and promotion of biodiversity. During the The Company practices the concept of "source reduction and resource recycling", formulates internal systems such as the
People's Republic of China , the Regulations on Conversion project construction and operation process, it makes every Hazardous Waste Management System , the Waste Management System , and the Supervision and Management Measures and
of Farmland to Forests , the Measures for the Administration effort to avoid any damage to the natural ecosystem and System for Hazardous Waste , and implements the compliant collection, classification, storage, transfer, and disposal of different
of Forest Cutting and Regeneration , and the Water Law of the actively carries out biodiversity protection and restoration types of waste.
People's Republic of China to carry out ecological protection work to create a suitable habitat environment for wild
work. animals and plants. In addition, we continuously strengthen
environmental awareness education for employees, Non-hazardous Waste Management
Hoshine Silicon always places ecological protection at the encouraging full participation in ecological protection
highest level of its business operations. All its activities, practices. Upholding the philosophy of respecting nature
products, and services have not had a significant impact on and protecting biodiversity, we have embedded ecological We actively promote the reduction, recycling, and harmless
biodiversity, and all office spaces, business premises, and protection as a core component of our corporate culture. This treatment of waste. General waste with recycling value is
industrial plants are not located within natural protection commitment drives the Company's steady progress along a entrusted to capable units for recycling, and general waste
areas or in areas rich in biodiversity outside the protection green, sustainable, and biodiversity-respecting development without recycling value is uniformly collected and disposed
areas. It neither damages the original vegetation and path. of by local municipal sanitation and other units capable of
ecosystem, nor uses protected animals to conduct animal handling solid waste.
Future Hoshine, Green Leadership/
The non-hazardous waste generated during the production and operation of the silicon metal
Management of Hazardous Waste
mainly includes desulfurized gypsum, silicon slag, microsilica powder, and used refractory bricks
Harmless treatment: the desulfurized gypsum and silicon slag are respectively stored in All business divisions of Hoshine Silicon are equipped with In accordance with the regulations of the operation location
independently divided gypsum warehouses and storage yards. Some silicon slag is screened hazardous waste temporary storage sites that have passed the and the detailed requirements of environmental management
and returned to the furnace for use. The desulfurized gypsum and the remaining silicon slag are acceptance of environmental protection facilities as required. systems such as ISO 14001 for hazardous waste, we formulate an
Silicon Metal entrusted to a qualified third-party unit for unified disposal The hazardous waste is temporarily stored in the hazardous annual hazardous waste generation plan, plan the generation of
Business Segment waste temporary storage room. The Company fills in the waste in each process and procedure of the production link, and
Reduction: after being crushed, the used refractory bricks are mixed with refractory castables and hazardous waste generation and disposal ledger, the hazardous clarify specific supervision measures.
used for repairing the lining of high-temperature industrial furnaces waste management plan, the hazardous waste transfer sheet,
Recycling: as one of the important by-products in the production process, the fine silicon metal etc. according to national regulations, and entrusts professional
powder undergoes strict quality control screening and processing to meet the market sales institutions with collection and disposal qualifications to handle
standards, realizing the effective utilization of resources and value maximization the hazardous waste.
The non-hazardous waste generated during the production and operation of the silicone mainly Compliant Disposal by a Third Party Resource Utilization
includes miscellaneous salts ilicon metal business: the hazardous waste gen-
S ilicone business: the hazardous waste generated
S
Harmless treatment: after various types of non-hazardous waste are classified and collected, erated during the production and operation mainly during the production and operation mainly includes
Silicone Business includes waste mineral oil, waste empty barrels, wa- dry waste catalyst, high-boiling residue slurry, waste-
they are stored in warehouses that comply with safety regulations. Regularly, recyclers with
Segment ter glycol, waste lead-acid batteries, waste chemical water treatment sludge, monomer conversion waste
corresponding disposal qualifications are entrusted to clean up and dispose of general solid
waste reagents, and empty waste reagent bottles. All haz- oil, monomer conversion residual liquid, activated
ardous waste is safely and standardly disposed of by carbon filter residue, waste sulfuric acid, and dilute
hazardous waste disposal units with corresponding hydrochloric acid recovered from the incineration de-
qualifications in strict accordance with the require- vice
ments of relevant laws and regulations
The non-hazardous waste generated during the operation of the energy business mainly includes For the waste sulfuric acid and the dilute hydrochloric
desulfurized ash and fly ash Carbon business: the non-hazardous waste gener- acid recovered from the incineration device, the Com-
Energy Business Harmless storage: conventional hazardous waste is stored in solid waste tanks and kept in warehouses ated during the production and operation mainly pany specially establishes a magnesium sulfate device
Segment with functions of preventing wind dispersion, fire, and spillage. Regularly, recyclers with corresponding includes waste oil barrels, which are temporarily and a hydrochloric acid analysis device to realize the
disposal qualifications are entrusted to clean up and dispose of general solid waste stored and managed relying on the hazardous recycling of these wastes
waste warehouse
For the high-boiling bottom residue generated during
hotovoltaic business: the hazardous waste gen-
P the production process, a technology for extracting
The non-hazardous waste generated during the carbon production and operation mainly erated during the production and operation mainly copper from the bottom residue is developed. Cop-
includes waste tar, coal cinder, and used refractory bricks includes discarded packaging materials and con- per element is extracted from the bottom residue,
Harmless treatment: the coal cinder is transported to the responsible company for treatment tainers, which contain or are contaminated with realizing the recycling of resources, and reducing the
and is not stored in the factory; the used refractory bricks (waste materials removed during toxic and infectious hazardous waste. All hazardous discharge amount of hazardous waste
the repair of the furnace body in the calcination, roasting, and graphitization processes) are waste is classified and collected in strict accordance
promptly cleaned up and recycled by a qualified third party with their physical and chemical properties, packed
Carbon Business in packaging bags with special color markings, and
Segment Reduction: the waste tar from coal tar and asphalt tar is temporarily stored in an underground then sent to the hazardous waste warehouse for
tar tank, and then reused as a raw material in the kneading process of the molding workshop; centralized storage. Finally, they are handed over to
metallurgical coke particles (used as thermal insulation covering materials in the roasting and the recyclers with hazardous waste disposal qualifi-
graphitization workshops) are temporarily stored in a closed storage warehouse for repeated cations for disposal
use; the waste oil is reused as a release agent in the pressing process of the molding workshop; Transformation of Waste Treatment
the dust collected by the bag filter is uniformly stored in the recycled material warehouse and nergy business: the hazardous waste generated
E Equipment
reused as a production raw material in the batching process of the molding workshop during the production and operation mainly in-
cludes waste mineral oil, waste catalysts, and dis- ilicone business: we upgrade the equipment of
S
carded packaging that is contaminated with or con- the residue treatment facility of the incineration de-
The non-hazardous waste generated during the photovoltaic production and operation mainly tains waste mineral oil such as waste lubricating oil. vice and add density enhancement facilities to ef-
includes silica slag, various packaging materials, cartons, and other materials We rely on standard hazardous waste warehouses fectively improve the density of the residue, reduce
Harmless treatment: a General Solid Waste Management Ledger is set up. After various types of for temporary storage and management, and sign the volume, and improve the subsequent treatment
Photovoltaic non-hazardous waste are classified and collected, they are stored in warehouses with functions contracts with qualified hazardous waste disposal efficiency
Business Segment of preventing wind dispersion, fire, and spillage. Regularly, recyclers with corresponding units to dispose of the hazardous waste in accor-
disposal qualifications are entrusted to clean up and dispose of general solid waste dance with the hazardous waste management plan
Measures for Handling Hazardous Waste of Hoshine Silicon in 2024
Measures for Handling Non-hazardous Waste of Hoshine Silicon in 2024
Future Hoshine, Green Leadership/
Hoshine Silicon vigorously promotes the construction of smart factories, and constantly improve the Hazardous Waste
Management System (HWS) of Hoshine Silicon, helping the factory manage hazardous waste in a compliant and efficient manner.
Exhaust Gas Emission Reduction
Our production exhaust gas mainly comes from production, thermal power supply and other links. The main pollutants mainly
Strengthening Compliance Refined Tracking and include sulfur dioxide, nitrogen oxides, inhalable particulate matter, Volatile Organic Compounds (VOCs), malodorous gases,
Management Monitoring and other pollutants. Hoshine Silicon has formulated exhaust gas management systems covering all operation points, including
the Environmental Protection Management System , the Atmospheric Management System , and the Exhaust Gas Emission
Ensure that the whole process of the generation, Assign unique identifiers to hazardous waste to Management System , to ensure that all exhaust gases are fully treated and emitted in compliance with regulations, and the
storage, transfer, and disposal of hazardous waste achieve full-chain tracking from generation to final emission concentration meets national standards.
complies with the requirements of national laws and disposal, monitor the waste status and storage
regulations. Automatically inspect relevant permits environment in real time, and prevent leakage and In order to reduce the emission of toxic exhaust gases during the operation process, according to the properties of different exhaust
and reports through the platform to avoid legal risks illegal disposal incidents. gas pollutants, we select the corresponding best feasible solutions to carry out exhaust gas treatment work, continuously increase
and improve the Company's compliance level. investment in environmental protection, optimize the environmental protection treatment process, and add high-efficiency
terminal treatment devices. On the basis of meeting the standard emission requirements, we further reduce the concentration of
Hoshine Silicon's Hazardous Waste Management System (HWS) Platform
pollutants in the exhaust gas.
Wastewater Discharge Reduction Silicon Metal Business Segment Silicone Business Segment
xhaust gas treatment of submerged arc furnace:
E ascading treatment of exhaust gas: the production
C
Wastewater discharged in our production and operation mainly rate of industrial wastewater, minimizing the external discharge the flue gas produced by the mineral heat furnace, the exhaust gas passes through the circulating water and
includes the wastewater from equipment cleaning, pipeline of wastewater. During the Reporting Period, the Company's flue gas produced by the process of discharging the flue refrigerant condensation recovery system for recovery
cleaning, and domestic sewage within the factory area. The compliance rate of wastewater pollutant discharge reached gas collected by the gas collector, unified after the waste in sequence, and then is sent to the incineration
main pollutants are Chemical Oxygen Demand (COD), ammonia 100%. heat recovery device, into the bag filter processing, device for incineration treatment. The incinerated
nitrogen, and so on. Hoshine Silicon has formulated internal the processed flue gas sent to the denitrification and flue gas needs to go through multiple purification
systems such as the Wastewater Management System and desulfurization device to continue to deal with, to ensure processes such as SNCR denitrification, semi-quench
the Wastewater Discharge Management System , continuously that the waste gas in the standard discharge tower cooling, bag filter dust removal, water washing,
The Company's compliance rate of alkali washing, and activated carbon adsorption
optimizing its own sewage treatment capacity, and strictly
wastewater pollutant discharge reached in sequence to ensure that its emission indicators
controlling the effect of wastewater treatment and the
strictly meet the special emission limit requirements
concentration of pollutant discharge.
Energy Business Segment specified in the Emission Standard of Pollutants for
Petrochemical Industry (GB 31571-2015)
Hoshine Silicon continues to promote the comprehensive
utilization project of wastewater, and improves the recycling
ltra-low emission of dust exhaust gas: by using
U
filter bags with higher toughness, better high-temperature
Zero Wastewater Discharge resistance, and better air permeability, the dust emission of Carbon Business Segment
All production wastewater in the industrial silicon and carbon business has been recycled, mainly including the water for raw silica material the waste gas treatment unit can be extremely low, and the
washing, equipment cooling water, and desulfurization water. After being treated by the wastewater treatment system, the production wastewater concentration of fume and dust emissions can be reduced
aste heat recovery: the calcining furnace uses the
W
is reused in the links such as silica washing, cooling circulating water, and sprinkling for dust suppression within the factory area gas and natural gas from the gas generator as the
In the flue gas desulfurization treatment of the energy business, both wet desulfurization and dry desulfurization processes are adopted. For initial fuel. The flue gas generated in the calcination
wet desulfurization, we select a high-efficiency desulfurizer, and fully use the wastewater to conduct flue gas treatment. After treatment, the process is cooled down by a waste heat boiler and
wastewater is used for humidifying the fly ash in the ash silo and the ash storage yard. In dry desulfurization, the treated industrial wastewater is then sent to the power plant for incineration through
reused for the preparation of hydrated lime in the desulfurization system. Both processes have achieved zero wastewater discharge pipelines
Photovoltaic Business Segment
ouble exhaust gas treatment: the roasting furnace
D
mmonia recovery from tail gas of the dry process:
A uses the water atomization spray treatment method
based on the four-stage spray absorption process for heat and the electrostatic tar precipitators to carry out
exchange and convection, ammonia water is successfully secondary treatment of the asphalt smoke and SO2
produced and reused, reducing the ammonia concentration exhaust gas. Ningxin Carbon's calcination furnaces,
in the tail gas emissions roasting furnaces, and graphitization furnaces
Wastewater Monitoring Wastewater Recycling
channel all processed emissions (after dust removal
I nnovative treatment of acidic exhaust gas: the usual and temperature reduction) to power plants for
The silicone business installs an automatic monitoring system In the photovoltaic business, the reverse osmosis water solution for treating acidic exhaust gas requires the use of incineration via pipeline networks
to monitor various pollutant indicators in the wastewater in generated during the production process is used for flake sodium hydroxide to prepare an alkaline solution. We
real time and accurately, and conducts monthly, quarterly, dilution and spraying in the scrubbing tower, and the steam use the waste alkali solution that was originally scheduled ontinuous exhaust gas monitoring: both the
C
and semi-annual environmental monitoring work to grasp the condensate water from winter heating is reused for pure to be discharged during the PV cell production process for calcining furnace and the roasting furnace are
trend of pollutant discharge water preparation. This effectively reduces wastewater
neutralization to absorb components such as hydrofluoric equipped with continuous online monitoring
discharge and improves the utilization rate of resources equipment to strictly monitor the emissions of
To ensure the accuracy and reliability of the monitoring data, acid and hydrochloric acid in the exhaust gas
the Company regularly conducts manual monitoring work to particulate matters, nitrogen oxides, and sulfur
calibrate and supplement the online monitoring equipment dioxide. We entrust a professional unit to conduct
quarterly testing in accordance with the requirements
of the pollutant discharge permit, and all indicators
are satisfactory
Wastewater Management Measures of Hoshine Silicon in 2024
Exhaust Gas Management Measures of Hoshine Silicon in 2024
Future Hoshine, Green Leadership/
Resource Usage Reduction of Packaging Materials Packaging Material
Central Hoshine actively takes reduction and recyclable Management
Hoshine Silicon actively explores effective ways to reduce resource utilization, scientifically and rationally plans and uses measures during the production and management of
batteries. Optimizing the packaging quantity of PV cell Hoshine Silicon continuously strengthens the sustain-
precious resources such as water resources and packaging materials, and contributes to the construction of a resource-
increases the capacity of a single package, saving packaging able management of packaging materials. We strictly
conserving and environment-friendly society.
materials. abide by relevant laws and regulations in the Compa-
ny's operation places, continuously promote the light-
Shanshan Silicon has improved the graphite electrode packaging
Usage of Water Resources
weighting and recycling of packaging materials, and
by removing the wooden baffles at both ends of the graphite
are committed to reducing the environmental impact
electrode and using reusable nylon cable ties for fixation.
of packaging materials.
Hoshine Silicon strictly adheres to laws and regulations such as the Water Law of the People's Republic of China , the Law of the
People's Republic of China on Water and Soil Conservation , the Water Pollution Prevention and Control Law of the People's Recycling of Packaging Materials The Company continuously optimizes the use of pack-
Republic of China , and the Measures for the Implementation of the Water Drawing Permit System , and formulates targeted water aging materials. On the one hand, we implement ver-
resource management guidelines, including the Enterprise Energy Management System . We attach great importance to and focus tical integration of the industry chain within the park,
Western Hoshine replaces the original single-use cartons
on optimizing water resource management throughout the entire value chain, strengthening control over the water use process, concentrating raw material processing, production
with steel barrels to transport raw rubber, reducing the daily
applying innovative equipment, and promoting awareness of water conservation, etc., to systematically improve the efficiency of and processing, and finished product packaging in one
average carton consumption.
the Company's water resources management. area for centralized management. On the other hand,
Western Hoshine reuses old ton barrels, aiming to reduce we are committed to improving the recycling rate of
Our types of water resources include tap water, river water, and reclaimed water, and the usage scenarios cover aspects such as resource consumption during the operation process. packaging materials, recycling and reusing product
product addition, process application, production assistance, cleaning, reclaimed water utilization in the production process, outer packaging to reduce material waste.
as well as daily life. At the water drawing end, we actively increase the utilization rate of reclaimed water; at the water use end, Packaging Material Management Measures of Hoshine Silicon in 2024
we are committed to reducing the water consumption of existing equipment through a series of technical transformations, and
continuously improving the Company's water-conserving capabilities.
Improvement of
Water Use Efficiency
Hydraulic turbine transformation project: the hydraulic
turbine has been transformed. Compared with the same period
last year, the transformed hydraulic turbine has reduced the
operation time of the cooling tower fan. At the same time, the
planned electric fan has been replaced with a hydraulic turbine,
significantly reducing energy consumption.
Recycling of Water Resources
Circulating water system: the system consists of the water
for the electric furnace body, the copper tiles of the
electric furnace, the taper sleeve, and the short circuit
network, as well as the cooling water for the transformer
oil cooler. During the entire cooling process, an indirect
cooling method is adopted to achieve the recycling of
cooling water.
Plan for improvement of reclaimed water utilization rate:
Central Hoshine has formulated a "one enterprise, one
strategy" sewage treatment and recycling plan, analyzed
the water use scenarios, and formulated a plan to increase
the utilization rate of reclaimed water, ensuring compliant
wastewater discharge.
Water Resource Management Measures of Hoshine Silicon in 2024
Excellent Hoshine, Scaling New Heights/
Social Part 03
Excellent Hoshine,
Scaling New Heights
Hoshine Silicon adheres to the development concept of "seeking for survival with quality,
promoting development through technology, and taking customers as foundation" to
continuously pursues excellent product quality and stable product performance and
accelerates the application and transformation of scientific and technological achievements,
thus continuously improving the customer experience. At the same time, we are well aware
that the innovation ability of employees is the key to promoting the rapid development of
the industry. The Company adheres to the people-oriented strategy and gives back to society
with practical actions.
Quality Management 50
Customer Experience 61
Supply Chain Security 64
Caring for Employees 67
Community Co-construction 73
UN Sustainable Development Goals Corresponding to This Chapter
Excellent Hoshine, Scaling New Heights/
Quality Management Full-process Product Quality Management
Hoshine Silicon continuously improves the construction of the quality management system, conducts full-process quality control
from raw material procurement, production and processing, and finished product acceptance to product sales, etc., thus ensuring
High-quality product quality is the cornerstone of the healthy development of an enterprise. Hoshine Silicon adheres to
the effective implementation of quality management and control.
the guidance of science and technology and innovation-driven development. The Company continuously explores new
technological paths and management models, focuses on innovation, and strives for quality improvement, contributing
great strength to promoting industrial innovation and upgrading and achieving sustainable high-quality development. Silicon Metal Segment 5 Silicone Segment 6 Carbon Segment 7 Photovoltaic Segment 8
Unqualified
Product
Control Procedure
Quality Management and Control
Quality Management and
Regulations
on
Quality Management Control of Incoming Raw
Incoming Inspection
Silicon Metal Product System for Silicone Materials
Management Management
Customer Complaint Sealant Project Control over the Execution
system Management
Management System Accident Management Standards of the Production
As one of the enterprises with the most complete business chain and the largest production scale in China's silicon-based new Specification for
Regulations, etc. Process Technology in the
material industry, we mainly manufacturer two categories of products: silicon metal and silicone, with a wide range of application Abnormal Reliability
Production Workshop, etc.
of Solar panel
fields. We attach great importance to product quality and are committed to implementing strict and comprehensive control over
Products , etc.
the product quality at every link to provide safe and stable products.
After all raw materials
When the materials enter
enter the factory,
Construction of Quality Management System dedicated personnel
the factory, samples will be
taken and tested for each
will take samples and
vehicle to prevent the mixing Unannounced
send them to the quality All raw materials entering of unqualified raw materials
Hoshine Silicon strictly complies with applicable quality and safety laws, Company Quality Targets inspection center for
laboratory testing,
the production line will For the qualified raw inspections of
suppliers will be
regulations, and industry standards such as the Law of the People's be strictly screened and materials, they must be
Management preventing unqualified conducted to
Republic of China on Product Quality . According to the characteristics of Measures raw materials from being
inspected to evaluate fully covered for stacking
physically inspect
different products, the Company formulates management and supervision the quality indicators to prevent impurities from
Qualified rate of products Occurrence of quality for the Raw put into the production their production
(such as purity and entering and affecting the
systems and procedures such as the Product Quality Management System , leaving the factory and safety accidents Material line or operation
The particle size of impurity content) of each usage effect
the Inspection Management System for Raw Materials, Auxiliary Materials Procurement sites to ensure
batch of raw materials Before use, the laboratory
and Products , and the Unqualified Product Control Procedure to meet Link raw materials will be the continuous
to ensure that they personnel should be
analyzed to control the compliance and
various industrial quality standards of the Company. meet the production notified to take samples
particle size distribution quality reliability of
requirements for testing. Only after the
ensure uniform mixing, suppliers
The Company strictly controls product quality, sets quality goals aimed Handling rate of user main physical and chemical
avoiding the influence
at achieving "100% qualified rate of products leaving the factory", "0 complaints indicators are qualified can
of too coarse or too fine
occurrence of quality and safety accidents", and "100% handling rate of the raw materials be put into
raw materials on the
production
user complaints", 4and links these goals with the performance of relevant reaction in the furnace
responsible persons to effectively ensure product quality.
During production, the
implementation of various
We have established a complete quality management system and actively implemented the ISO 9001 quality management system specified process parameters
to reduce the potential risks of product quality problems and effectively safeguard the rights and interests of customers. As of the is tracked, including testing A special product
More advanced the product appearance, quality improvement
end of the Reporting Period, among the Hoshine Silicon's 12 subsidiaries in various business segments, 46% have obtained the ISO
separation and size, and usage indicators in team is established to
process, monitor certain are used to improve them, checking the internal the problems found
Management
process parameters the monomer synthesis structure, taking samples in the production
Quality Information Management System (LIMS) Empowers Quality Management Work Measures for
to ensure appropriate efficiency and product from each part, calculating process, including the
the Production
temperature and stable purity the bulk density, and series connection and
and Processing An automated control
The quality information management system (LIMS) of Hoshine operation of graphite checking the homogeneity rework improvement,
Links
Silicon integrates various quality testing data during the electrodes and other system is introduced of each part of the product, fragmentation
equipment to enhance operation ensuring product quality rate improvement,
production process and realizes full-process quality monitoring accuracy and Irregular process inspections and scrap rate
from raw materials to finished products. It can promptly detect consistency are conducted on the improvement of solar
quality problems through data analysis and assist in root cause charging temperature, panel
analysis to continuously improve the production process. spacing, covering material
thickness, temperature
control, etc.
At the same time, LIMS standardizes the quality management
process of the factory, and establishes a quality traceability 5
Hoshine Silicon utilizes high-quality quartz mine as raw material to produce silicon metal.
system, enabling quick location of the defective batches and
Hoshine Silicon's silicone products mainly include silicone rubber, silicone sealant, silicone oil, fumed silica, and others.
sources. As of the end of the Reporting Period, this system has
Hoshine Silicon's Quality Information Management System
been widely applied in business segments such as silicone, (LIMS) The carbon production process of the Hoshine Silicon mainly includes four production stages: forming, roasting, graphitization, and finished product
silicon metal, and energy. machining. We timely revise the process regulations according to production requirements to ensure the production process is controllable.
Hoshine Silicon, using materials such as monocrystalline silicon wafers produced upstream, engages in the production of mid-stream photovoltaic cell (double-
Quality goals: Product qualification rate and customer complaint rate goals have been established for silicone products, while corresponding product qualification
sided monocrystalline N-type cell) and is involved in the solar panel (high-efficiency N-type solar panel products) industry.
rate goals have been set for carbon products.
Excellent Hoshine, Scaling New Heights/
Silicon Metal Segment Silicone Segment Carbon Segment Photovoltaic Segment Quality Culture Construction
Modern quality In order to improve product Inspectors are required
testing equipment quality, reduce product to regularly study and In order to enhance the quality risk awareness and quality management capabilities of all employees, Hoshine Silicon organizes
and technologies are resistivity, and increase take exams on quality systematic and professional quality training and conducts examinations every year. The training covers content such as the quality
The quality inspection center introduced, including bulk density, the later-stage standards to improve management system, quality control methods and techniques, quality inspection and evaluation, and quality risk management,
inspects the finished silicon Gas Chromatography- quality and usage data of their professional skills; cultivating the quality awareness and skills of employees and partners to ensure the continuous improvement of product quality.
produced every day to ensure Mass Spectrometry (GC- products are compared and The work connection
Management the quality of the finished MS), and Inductively fed back; of each quality module
In addition, the Company also regularly carries out the "Quality Month" activity, and arranges special training for operators to
Measures for products; Coupled Plasma Atomic Defects in products during in the workshop is further enhance their professional skills and practical operation abilities.
the Finished Regular quality analysis Emission Spectrometer processing are investigated, improved. For example,
Product meetings and furnace master (ICP); including those caused by the manufacturing
Acceptance meetings are held to discuss Any unqualified manual operations and process positions and Quality Control Methods and Techniques Training
Training of Quality Management System
Link the influencing factors of products are timely inherent product defects, inspection positions
product quality and the marked, with the for full-process rectification. exchange jobs for
It mainly revolves around the standards and principles of The content focuses on specific quality control means
rectification plan corresponding disposal Irregular coordination tests learning purposes , and
methods proposed are conducted to verify major abnormalities fed the quality management system. The content includes and techniques, such as Statistical Quality Control (SQC)
and timely isolation for whether processing accuracy back are timely dealt the basic knowledge, framework, requirements, and and process quality control. Through such training,
storag meets standards with implementation methods of the quality management participants can master various quality control tools
system, ensuring that the requirements of the quality and techniques to identify problems and take effective
management system are followed during the work measures for improvement in actual operations.
Recall process during process, thus improving the quality of products
transportation: when and services.
unqualified products
A product recall mechanism is are found among the
established. When a product Each finished product must shipped products,
recall event occurs, relevant A strict product track- go through strict testing, and a risk assessment
technical and production ing system is imple- only after all indicators are is conducted and
departments are organized mented. Once a prob- qualified can a certificate of such products will
Management to conduct strict quality lem is found, it can be conformity be affixed; be disposed of in
Measures for inspections on the recalled quickly located and Transportation protection is compliance with the
the Product products and analyze the handled to reduce the provided in a way that buffer risk assessment results Quality Inspection and Evaluation Training Quality Risk Management Training
Sales Link problems throughout the risk of defective prod- devices are added to prevent and actual situations;
production process; ucts flowing into the the products from being Disposal of unqualified
The content covers the standards, methods, and The content includes how to identify quality risks,
Corrective measures are market damaged due to rolling back products after delivery:
evaluation techniques of quality inspection. Through the assess the risk level, and formulate risk control
investigated and formulated9 and forth corresponding
according to 8D procedures measures for training, participants learn to use appropriate inspection measures. Through the training, participants can
rectification are taken tools and equipment for quality inspection, and at the enhance their awareness and response capabilities
when unqualified same time, master the methods and techniques of to quality risks, ensuring the quality and safety of
products are found product quality evaluation to ensure that products meet products and services.
quality requirements and customer expectations.
Quality Training of Hoshine Silicon in 2024
Central Hoshine Establishes a Photovoltaic Laboratory
The photovoltaic laboratory is an independent internal testing institution specializing in the testing of solar photovoltaic
products. It complies with the management requirements of ISO/IEC 17025 and is mainly responsible for material
characterization testing, solar panel reliability testing, standard plate management and transfer, and failure analysis. It has
leading product testing capabilities in the industry.
The laboratory can carry out dozens of tests in materials, performance, safety, physics, optics, environment, and outdoor
testing, and possesses more than one hundred sets of domestic and foreign advanced testing and analysis equipment.
The testing center has full-time laboratory management, inspection, and research analysis personnel who are proficient in
various testing and analysis technologies of photovoltaic materials and panels, providing strong support for the product
quality of photovoltaic cell and solar panel.
8D Process: this includes team formation, problem description, emergency response, root cause analysis, permanent improvement plan, implementation of
improvement measures, preventive measures, team recognition and future planning.
Excellent Hoshine, Scaling New Heights/
R&D Innovation System Silicon Metal Segment
The production technology of silicon metal is relatively mature. In 2024, Hoshine Silicon carried out a series of R&D optimizations
Since its establishment, Hoshine Silicon has grown into a leading enterprise in the fields of silicon-based new materials such
on the production technology and added intelligent and automated systems, greatly improving production efficiency, saving labor
as silicon metal, silicone, and poly-silicon. Focusing on silicon-based new materials and photovoltaic new energy as its main
costs, and effectively increasing the recovery rate of materials.
core businesses, the Company continuously conducts industrial extension and technological development. We adhere to the
innovation-driven development strategy, continuously deepen technological and industrial upgrading, and strive to contribute
more wisdom and strength to the development of the global silicon-based new material industry and the energy field.
DCS (Distributed Control System )
During the Reporting Period, the Company has filed a total of 180 patents, including 41 invention patents. Of these, 113 patents
were granted authorization, with 16 being invention patents. The Company actively contributed to industry standardization by The operation of the traditional silicon metal furnace depends on manual control, which has the problems of low
leading or participating in the formulation or revision of 60 technical standards. Additionally, over 50 scientific and technical efficiency and large errors. We use a DSC integrated control system to automate key operations such as graphite
articles were published, supported by R&D investments totaling RMB 570 million. As of the end of the reporting period, the electrode lifting & lowering and pressing & releasing, transformer gear adjustment, and high-voltage power on
Company maintained a robust patent portfolio with 675 valid patents in force, including 87 invention patents. and off, reducing human intervention. This technology improves operation accuracy and efficiency, reduces the
risk of manual operation, and realizes intelligent control of the production process.
During the Reporting Period As of the end of the Reporting Period
Total patents applied Including invention patents Total patents granted Number of patents granted to the Company Filtering and Processing Data
During the operation of the silicon metal furnace, data such as voltage and current fluctuate frequently, directly
affecting the judgment and control of the furnace condition. We use a five-stage filtering technology to process
real-time data, refreshing it every 0.5s to ensure that the data is stable and can accurately reflect the changes
in the furnace condition. This technology improves the reliability of the data, provides an accurate basis for the
We regard innovation as an inherent requirement for the high- innovation situations to the Board of Directors after collecting monitoring and adjustment of the furnace condition, and ensures the stability of production.
quality development of the industry. We have established a them.
complete R&D innovation system and formulated systems
such as the Enterprise R&D Center Research and Development At the same time, Hoshine Silicon has built a complete
Organization Management System and the Scientific Research innovation platform for employees, continuously increased Optimizing Power Distribution Logic
Project Application Management System to standardize the R&D investment and offered R&D talents. The Company has The traditional power distribution logic relies on fixed parameters and is difficult to adapt to the changes in
Company's R&D innovation processes. The Company has built formulated internal systems such as the Intellectual Property complex working conditions, resulting in high energy consumption and low efficiency. We dynamically calculate
a bottom-up R&D innovation management structure. Each Work Management and Incentive System and the Technical and set parameters based on the proportional relationship between current and voltage, realizing the automatic
business division has set up technical R&D-related departments R&D Reward Management Measures to reward members of adjustment of the graphite electrodes and the linkage of the transformer gear after the power setting, achieving
and put forward further requirements for R&D innovation the project R&D team and stimulate the vitality of the scientific power distribution balance. This technology effectively optimizes the energy consumption distribution, improves
according to the characteristics of its own products. The person research team, driving the development of the enterprise production efficiency, and reduces operating costs.
in charge of each business division reports the relevant R&D through innovation.
Silicon Metal R&D Measures in 2024
Excellent Hoshine, Scaling New Heights/
Silicone Segment Photovoltaic Segment
Based on the mission of "Concentrate on silicon-based materials to create a wonderful life", Hoshine Silicon gives full play to Hoshine Silicon focuses on cultivating "new quality productive force" and actively develops clean energy products with the
the production capacity advantages of the Company's existing silicon-based new material production base, breaks through the advantages of advanced technology, high quality, high efficiency, and sustainability. Currently, Hoshine Silicon has achieved the
technical barriers of key materials and equipment, and realizes the upgrading and improvement of product processes. R&D and production of products across the whole photovoltaic industry chain, including poly-silicon, monocrystalline silicon wafer,
PV cell and solar panel. Among them, part of the products have been applied in the market. The Company will continue to promote
technological innovation and product upgrading in the photovoltaic industry chain, leading the green energy transformation, and
striving to build a clean and beautiful world with the whole society.
PV Cell Industry Solar Panel Industry
Technology Innovation New Product R&D Development of products preventing dust deposition
ilicon oxide/poly-silicon layer deposition
S
Increasing production and reducing consumption technology and snow accumulation
Development of liquid silicone rubber for N-type emitter technology Development of all-black series module products
during the long-cycle operation of silicone monomer
synthesis encapsulation of photovoltaic modules High sheet resistance dense grid technology Development of polyurethane composite frame
Innovative application of the heat pump distillation Development of functional silicone oil series materials
system in the distillation process of silicone monomers products
Development of fumend silica with multiple specific Development of silicone sealants and potting
surface area models sealants for silicone solar panel
Quality improvement of vinyl-terminated silicone fluid Development of high-transparency extrusion
products process silicone rubber
Development of the continuous production process
technology of dimethyl silicone oil
PV Cell Industry Solar Panel Industry
Silicone R&D Achievements in 2024 Photovoltaic R&D Innovation Achievements in 2024
Energy Segment
Silicon Carbide Segment
Guided by the market and relying on technology, Hoshine Silicon improves the scientific and technological performance of the
In the field of third-generation semiconductors, the Company has now fully mastered the core process technologies of the whole Company's main business through the transformation of technological achievements, and has achieved remarkable results.
industry chain of silicon carbide materials, including raw material synthesis, ingot growth, substrate processing, and wafer epitaxy.
The Company has broken through the technical barriers of key materials (porous graphite, coating materials) and equipment. The Company Establishes the "Clean Coal-fired Power Generation Research Center" in
The yield rate of the Company's silicon carbide products is at the leading level among domestic enterprises, and in terms of key Collaboration with Shihezi University
technical indicators, the Company has caught up with the level of international leading enterprises.
Shanshan Electric Power has established its own R&D center and established the "Clean Coal-fired Power Generation
Research Center" with Shihezi University. The Company carries out joint research on key parameter testing technologies
in the coal-fired power industry, and the construction of scientific and technological innovation capabilities in metrology
and testing in the coal-fired power industry, etc., and actively promotes the transformation of scientific and technological
The 6-inch silicon carbide substrates
In terms of the R&D of 8-inch silicon achievements, increasing the intensity of technology research and development as well as application and promotion.
have been fully mass-produced, with
carbide substrates, the Company has
a carbide yield rate of over 95% and a
started small-batch production thanks
stable epitaxial wafer yield rate of over
to its self-developed system and efficient
R&D
the industry
Hoshine's Silicon Carbide R&D Process
Excellent Hoshine, Scaling New Heights/
Digital Construction
Cooperation with Hangzhou Normal University on the project "Research on the Production
As a technology innovation-oriented enterprise, Hoshine Silicon achieves the deep integration of IT (Information Technology), CT Control of 110 Silicone Rubber and the Structured Control of Silicone Rubber"
(Communication Technology), and OT (Operational Technology) through digital strategies, digital thinking, digital technologies,
Through the research on the sources of terminal hydroxyl groups and terminal hydroxyl group removal agents, the hydroxyl group
etc. We clarify the principles and guidelines for promoting intelligent manufacturing, and build nine systems for the intelligent
content can be reasonably controlled to improve the structuration and mechanical properties of the silicone rubber.
manufacturing base to achieve all-weather safe and efficient production. We also provide a comprehensive solution that can be
used for reference and co-creation for the digital transformation of the industry. In response to the situations such as hardening during the storage of silicone rubber compounds, decreased plasticity, gradual loss of
processability, difficulties in mold filling, and the emergence of serious "structuring" issues, we have employed appropriate structure
control agents and formulated suitable recipes. Coupled with corresponding processing techniques, we have ultimately managed to
extend the storage period of the silicone rubber to 12 months.
Laboratory Information Weighing Information Electronic Operation Manufacturing Plant Management
Management System System Ticket Execution System System Collaborative Development Project with Shihezi University: "Research on the Enhancement
(LIMS) (WIS) (EOT) (MES) (PMS) of the Quality of Vinyl Terminated Silicone Fluid and Hydrogen-terminated Silicone Oil"
During the production of vinyl terminated silicone fluid, the silica powder filler can cause the mixture to suddenly thicken, which
in turn impairs the mixing effect of subsequent additives and the quality of the final product. Furthermore, when producing
textile auxiliaries using hydrogen-terminated silicone oil, there are occasional cases of incomplete polymerization. This leads to
poor transparency and a rough hand-feel of the final product, thereby affecting the softness of the textiles.
Warehouse Double Prevention Hazardous Waste Logistics Truck
Management System System System Portal To address silicone oil thickening issues, we utilize novel catalytic technologies and equipment to enhance the molecular
(WMS) (DPS) (HWS) (LTP) weight distribution of our products and reduce residual impurities. In response to incomplete polymerization, we optimize
reaction conditions and implement control over key raw material indicators, as well as develop a stepwise polymerization
process, to ultimately achieve our objectives.
Nine Information Systems of the Intelligent Manufacturing Base
Key Projects and Standard Formulation
In recent years, Hoshine Silicon has established R&D platforms such as the "Hoshine Silicon-Based New Materials Provincial
High-Tech Enterprise Research and Development Center", the "Zhejiang Hoshine Silicon-based New Materials Research Intellectual Property Protection
Institute", the "Zhejiang Provincial Key Enterprise Research Institute of Silicon-Based New Materials, Hoshine Silicon
Industry", the "Zhejiang Provincial Enterprise Technology Center", and the "National Postdoctoral Workstation". Hoshine Silicon places great emphasis on intellectual property protection. It has formulated internal regulations including the
Intellectual Property Management System , Intellectual Property Management Procedure , and Intellectual Property Management
To further improve industry standards and standardize the production process, the Company has led or participated in the
Manual to improve its intellectual property compliance management system and has developed a well-structured intellectual
formulation or revision of more than 50 national, industry, or group standards, including the Norm of Energy Consumption
property management structure.
Per Unit Product of Dimethyl Cyclosiloxane , the Silicon Metal , the Methods for Chemical Analysis of Silicon Metal and the
Cleaner Production Evaluation Indicator System for Dimethylsiloxane Enterprises .
With the support of the continuously improved R&D platforms and industry standards, we have completed the national
torch program industrialization demonstration project of "Annual Production Capacity: 3,000 Tons of Cosmetic Grade
Decamethylcyclopentasiloxane (D5)", major scientific and technological projects in Zhejiang Province such as "Research,
Development, and Industrial Application of Key Technologies for Large-Scale Silicone Monomer Synthesis", and a number Board of Directors The highest organ responsible for intellectual property-related work.
of scientific and technological plan projects in Jiaxing City such as "Research on Catalytic Purification Technology for
Dimethyldichlorosilane and Its Industrial Application". Many projects such as "High-quality Fumed Silica HS-200" and
"Dimethyldichlorosilane" have been listed as new provincial industrial products in Zhejiang Province.
Industry Cooperation
versee the implementation of intellectual property work and the progress
O
of relevant plans.
Legal Affairs
Hoshine Silicon continues to strengthen its close cooperation in production, education, research, and application with well-known Organize and establish intellectual property archives management system.
Department
scientific research institutions in the industry. The Company builds implementation bases for the incubation and industrialization P lan evaluation, licensing, transfer, and other matters of intellectual
of new products and new technologies, converts scientific and technological achievements into productive forces, and turns property, and report to the Board of Directors.
intellectual property rights into economic benefits, achieving sustainable development.
As of the end of the Reporting Period, the Company has established R&D institutions such as the "Zhejiang Provincial Key esignate intellectual property management staff who are under the leadership of the
D
Enterprise Research Institute of Silicon-Based New Materials", the "Zhejiang Provincial Postdoctoral Workstation", and the general manager of the subsidiary.
Each Subsidiary
"Provincial Academician and Expert Workstation", and R&D platforms such as the "Hoshine Silicon-Based New Materials Provincial Implement and enforce the guidelines for intellectual property management, being responsible
High-Tech Enterprise Research and Development Center", the "Zhejiang Hoshine Silicon-based New Materials Research Institute", for matters such as the application, registration, and maintenance of intellectual property.
the "Zhejiang Provincial Key Enterprise Research Institute of Silicon-Based New Materials, Hoshine Silicon Industry", the "Zhejiang
Provincial Enterprise Technology Center", the "Zhejiang Provincial Postdoctoral Workstation", and the "Provincial Academician
and Expert Workstation". It has carried out industry-university-research cooperation with scientific research institutions such
as the Institute of Process Engineering, Chinese Academy of Sciences, Zhejiang University, East China University of Science and Hoshine Silicon's Intellectual Property Management System
Technology, and Hangzhou Normal University.
Excellent Hoshine, Scaling New Heights/
Customer Experience
Hoshine Silicon, adhering to a customer-oriented philosophy, constantly strives for higher-quality services. By perfecting the
The Company safeguards its innovative outcomes and the legitimate rights and interests
customer service system, conducting responsible marketing, and protecting customer privacy and security, it spares no effort
of its intellectual property through a diverse range of measures. Meanwhile, we actively
to offer customers an outstanding product-using experience.
provide intellectual property training to relevant internal staff to enhance their awareness of
intellectual property. This not only prevents others from infringing on our intellectual property
but also ensures that our employees do not infringe on the intellectual property of others.
Customer Service
We have established a complete customer service system and formulated internal regulations such as Management Policy of
Due Diligence Customer Service Department to standardize customer service operations. Through a variety of initiatives, we safeguard the rights
and interests of customers and consumers.
Clearly define the employment conditions for practitioners, and comprehensively consider
the educational attainment, training effectiveness, work experience, etc. of incoming
employees. Coordinate with the
Hold monthly meetings
production factory to
to review customer
ensure rapid problem
service-related matters,
root cause tracing and
Employee Non-Disclosure Agreement and conduct semi-annual
continuous improvement
customer service summary
of customer satisfaction.
Clearly stipulate the signing of confidentiality agreements, with more stringent requirements meetings.
for personnel in special positions (such as those related to technology). Periodically summarize the Provide new employees with a
processes and formulations one - month customer service
of the Company to provide training upon entry, and also
customers with pre-sales offer regular customer service
Patent Search and Analysis selection guidance. knowledge training to veteran
employees.
Before filing a patent application, conduct a patent search, prepare a patent search report,
patent disclosure statements, drawings, etc., and submit them to the patent application Customer Service Safeguard Measures of Hoshine Silicon
agency.
Risk Warning
Customer Complaint Handling
Regularly monitor and pay attention to the intellectual property trends in the same and
relevant industries, keep abreast of the product R&D trends in these industries, and promptly We are committed to continuously improving our products and services by establishing Customer Complaint Handling Policy
file intellectual property applications and carry out risk prevention. and developing diversified customer feedback channels to ensure timely and comprehensive understanding of, and response to,
customer needs and feedback.
Dispute Resolution
Once an infringement incident is detected, our company will get in touch with the other party, Silicone
Cloud Online Email On-site Visit WeCom Tel.
communicate in a friendly manner to handle the situation, and safeguard the Company's
legitimate rights and interests.
Hoshine Silicon's Intellectual Property Management Measures Customer Feedback Channels
Excellent Hoshine, Scaling New Heights/
In handling customer complaints, Hoshine Silicon places emphasis on actively listening to the concerns of customers and
consumers, examining the complained products and recording relevant information. Through efficient complaint resolution
mechanism, we safeguard the legal rights and interests of customers and consumers and conduct follow-up visits to maintain Hoshine Silicon Makes a High-profile Debut at the SNEC 2024 with its New Products
strong customer relationships. When customer complaints occur, externally, we strictly adhere to the customer complaint
management process to address the complaints. We also analyze the reasons for the complaints to continuously enhance
In June 2024, the SNEC 17 th (2024) International Photovoltaic Power
customer satisfaction.
Generation and Smart Energy Conference & Exhibition, one of the most
influential photovoltaic events globally, was grandly held at the National
Exhibition and Convention Center (Shanghai). This exhibition gathered
Develop Preliminary Classify and Transfer Complaints Analyze and Investigate
over 3,500 domestic and foreign enterprises, with over 500,000 visitors
Solutions Causes
and more than 5,000 experts and scholars. It jointly created a vast and
After the process is submitted Complaints are transferred according to different The production department
and reaches the after-sales categories (quality problems, logistics problems, immediately investigates the professional international communication platform for photovoltaic
account manager stage, the management problems, etc.) root cause of the customer's enterprises and industry audiences.
after-sales account manager complaint through means such
proposes a preliminary as monitoring and operation As an integrated leader in the silicon-based new material industry, Hoshine
solution records. After identifying the Silicon, a new entrant in the photovoltaic field, proudly presented the
cause, the team members
Hoshine Good Life Pavilion. It made a high-profile appearance at the SNEC
conduct analysis and discussion
self-cleaning solar panels, demonstrating Hoshine's strong strength and
Summarize Complaint Communicate and innovative achievements in the photovoltaic field and injecting powerful
Information Resolve Problems impetus into the development of green and clean energy.
Once the salesperson receives The factory, business division,
a customer complaint, and sales department work in
Customer Privacy Protection
they collate the complaint coordination to put forward
information (including solutions. The salesperson
product, model, quantity, then communicates with
photos, etc.) and initiate the the customer to resolve the
complaint handling process problems With the continuous progress of digitalization, Hoshine Silicon attaches great significance to the protection of customer privacy
and the security of internal data. It has been continuously ramping up its efforts in safeguarding privacy and data security, thus
providing a strong safeguard for its high-quality development. We have incorporated customer privacy protection into the Trade
Secret Protection Management Policy and implemented a series of measures to safeguard customer privacy and data security.
Hoshine Silicon's Customer Complaint Handling Process
The Company collects necessary customer information and related personal data solely for legitimate
business operations and justifiable purposes. It also takes stringent measures to ensure that user
privacy data is properly protected and managed
Responsible Marketing The Company employs a data leakage prevention system, installs encryption software on all office
computers, manages decryption requirements and permissions in a strict manner, and implements a
"whitelist" policy for mobile storage devices
Hoshine Silicon has always adhered to the concept of responsible marketing and is committed to providing consumers with
authentic and reliable products. In our marketing, advertising, and sales practices, we strictly abide by relevant laws, regulations,
and industry norms in the regions where we operate. In line with compliance requirements, we have established a strict review
When an employee discovers that there is a possibility of the Company's trade secrets being leaked,
process to ensure that all marketing materials can only be released after being approved by authorized management personnel of
they are obliged to report to the department head and take immediate preventive measures. If the
the Company.
Company's trade secrets have already been leaked, both the discoverer and the relevant parties are
We regularly offer training on responsible marketing to all employees involved in marketing activities. Newly hired employees are obligated to report it immediately and take remedial measures
required to participate in training on matters needing attention in product marketing and conduct on-site learning at the factory,
strengthening our stance on responsible marketing. During the Reporting Period, no major marketing-related violations occurred
at Hoshine Silicon.
The Company issues documents containing regulations related to customer privacy protection and
Furthermore, Hoshine Silicon actively participates in a series of important exhibitions such as the Silicone Professional Exhibition, confidentiality. Each department organizes all its staff to study the relevant content and conducts
the Activated Carbon Exhibition, and the International Photovoltaic Power Generation and Smart Energy Exhibition, demonstrating irregular spot checks
the Company's product strength and an open-inclusive attitude.
Customer Privacy Protection Measures of Hoshine Silicon
Excellent Hoshine, Scaling New Heights/
Supply Chain Security Supplier Exit
For suppliers that do not pass the performance assessment, Hoshine Silicon will suspend procurement and immediately demand
Effective supply chain management is a pivotal element for the Company's business continuity and sustainable rectification. Suppliers that meet the rectification requirements can have their qualification reconfirmed. If a supplier fails to carry
development. Hoshine Silicon attaches great significance to the sustainable development of its supply chain. It continuously out rectification in a timely manner or fails to meet the rectification requirements, it will be phased out after approval through
optimizes the supplier management system and integrates the ESG concept into the full lifecycle management of suppliers, the established procedures. In addition, we have implemented a supplier reward and punishment management mechanism,
ensuring the high-quality and stable development of the supply chain. established a violation management and blacklist mechanism to restrain suppliers' illegal and unethical behaviors. Suppliers with
serious violations will be promptly removed from the supply chain, optimizing supplier resources.
Supplier Full-process Management Sustainable Supply Chain
Hoshine Silicon places great emphasis on supplier management. It strictly complies with laws and regulations such as the Bidding Hoshine Silicon strengthens the development of a clean, transparent, green, and healthy supply chain. We continuously
Law of the People's Republic of China , revises and implements the Supplier Management Rules , and exercises full-process control standardize supplier management to ensure the stability of the supply chain, promote clean procurement, and work together with
over various aspects including supplier admission, assessment, and exit. supplier partners to advance the concept of sustainability and achieve collaboration and mutual benefits.
We have refined and updated the Supplier Code of Conduc t, which covers all suppliers, including those providing packaging
materials, auxiliary materials, electrical instruments, equipment, and raw materials. This code standardizes suppliers' behaviors
in the ESG field and incorporates the assessment and evaluation of suppliers' sustainable development into the full-process
management, aiming to build a responsible and sustainable supply chain. Human Rights Risk Control in the Supply Chain
Supplier Admission
To further control human rights risks in the supply chain and ensure the long-term sustainable development of the supply chain,
Hoshine Silicon has established a supplier compliance system against forced labor and formulated the Measures for Supplier
At the sourcing stage, we conduct a preliminary review of At the certification stage, Hoshine Silicon conducts a
Internal Risk Management , comprehensively strengthening the management and prevention of human rights risks in the supply
the documents submitted by suppliers according to the comprehensive, objective, and targeted overall evaluation,
chain.
admission requirements for different categories. Suppliers assessing suppliers' qualifications from dimensions such as
that meet the admission thresholds will go through the product quality, business risks, and risk control capabilities.
approval process within the system, and preference will be In 2024, the Company formulated the Supplier Category
given to those with better ESG performance in aspects such Upgrade and Downgrade Standards , which clearly define
as environmental management, safety management, and the admission standards for different categories of suppliers, In accordance with relevant rules and regulations, we identify potential forced labor risks in the supply chain. When
quality management systems. We adhere to the principle enabling refined and standardized management of supplier such risks occur, we take corrective actions through processes such as assessment, investigation, rectification, and re-
of local and nearby supplier procurement. Through a fair qualification information. examination to address the forced labor risks in the supply chain and implement corresponding corrective measures
and just admission evaluation mechanism, we prevent and
mitigate potential adverse impacts that the supply chain may
have on Hoshine Silicon.
Supplier Assessment
We refer to the 11 forced labor indicators of the International Labour Organization (ILO) and require that suppliers,
At the e valuation stage, we implement hierarchical suppliers, and strategic partners. Under the same application factories, and their partners post workplace regulations that include these indicators
management of suppliers and carry out diversified audit for conditions, we will give priority to suppliers with better
suppliers of different levels in accordance with the Supplier performance grading results, so as to encourage suppliers
Category Admission and Upgrade and Downgrade Standards . to continuously enhance their sustainable development
We require all suppliers to fill out the Supplier Evaluation capabilities.
Form and conduct regular product quality and safety audits
to ensure the quality and safety of the products and services Meanwhile, the Company has established a supplier risk
management mechanism and analyzes and evaluates We further extend the training program on labor rights to its supply chain. The training focuses on providing compliance
provided by them.
the potential risks of suppliers. We have formulated the advice in areas such as labor rights, interpretation of forced labor indicators, and health and safety, while also sharing
At the performance evaluation stage, Hoshine Silicon Standards for Factor y Inspection Forms and Sample experiences in implementing the Supplier Code of Conduct
conducts an annual performance assessment of its Submission by Category . Through regular reviews, follow-up
cooperative suppliers based on their comprehensive on improvements, on-site inspections and visits, and control
performance in dimensions such as business operations, of qualification validity periods, we enhance the effectiveness Human Rights Risk Control Measures in the Supply Chain
technology, product quality, safety, environmental protection, of supplier risk management, ensuring that supplier quality,
and sustainable development management. According to the compliance, and risk prevention and control meet the
assessment scores, suppliers are classified into categories Company's standards.
such as admitted suppliers, qualified suppliers, excellent
Excellent Hoshine, Scaling New Heights/
Ensure Supply Chain Stability
Guided by the principle of "Supply Guarantee First, Economic Priority", Hoshine Silicon continuously carries out supply-chain-
related work in a stable, orderly, and continuous manner, constantly optimizing processes, strengthening risk management, and
Caring for Employees
ensuring the safety, efficiency, and sustainable development of the supply chain.
Hoshine Silicon has always regarded its employees as the Company's precious assets. It continuously improves the human
resources management system, safeguards employees' rights and interests, perfects the remuneration and benefits system,
We implement a material We select three alternative In response to potential By adopting diversified establishes a broad talent development platform, and provides a healthy and comfortable working environment, constantly
reserve strategy for suppliers to ensure the extreme weather conditions transportation modes such enhancing employees' sense of happiness and belonging.
supplies to respond chain and reduce the regions like Xinjiang, we and rail-sea intermodal
to emergencies and risk of relying on a single increase material reserves transportation", we enhance
changes in market supplier in advance to mitigate the the stability and efficiency of
demand impact of climate-related
risks on the supply chain
the supply chain, reducing
logistics delays and costs
Employee Rights Protection
Contract Law of the People's Republic of China , and the Social Insurance Law of the People's Republic of China , and conducts
Clean Procurement employment activities in accordance with the law. We have formulated and promulgated systems such as the Employee Handbook
and the Social Responsibility Management Manual , clearly defining processes related to employee recruitment, remuneration,
H o s h i n e S i l i co n h a s a l wa y s rega rd e d h o n e st y a n d required to comply with anti-corruption regulations and sign benefits, attendance, training and development, performance management, rewards, and punishments, further standardizing the
trustworthiness as the guiding principles for its business the Supplier Anti-corruption Commitment. Once a supplier human resources management system.
operations. It has formulated the Supplier Code of Conduct is found to have integrity issues, it will be blacklisted in
and required all suppliers to fill out the Supplier Code accordance with the regulations, and the cooperation will be
Avoidance of Forced Labour Prohibition of Child Labour
of Conduct Questionnaire . This ensures that suppliers terminated. In addition, Hoshine Silicon encourages suppliers
understand and pledge to abide by our ethical and business to obtain qualification certifications in areas such as quality, Hoshine Silicon attaches great importance to the basic The Company firmly opposes any form of child labour use
norms, jointly maintaining a fair, transparent, and honest human rights and labor, and occupational health and safety. rights and freedoms of workers. By establishing an anti- and adheres to legal employment practices. All employees of
supply chain environment. It advocates that suppliers establish higher ESG principles forced labor compliance system and relevant measures, it the Company meet the minimum working age requirements
and standards beyond the legal minimums to guide and firmly opposes any form of forced labor and eradicates any specified by the relevant laws and regulations of the countries
We firmly adopt a zero-tolerance stance towards fraud and manage their daily operations. act of recruiting, transporting, transferring, sheltering, or or regions where the Company's business is located. We have
malpractice in the procurement process. All suppliers are receiving forced laborers. Based on the anti-forced labour formulated and issued the Regulations on the Management of
indicators of the International Labour Organization (ILO), Child Labour and Underage Workers . Under these regulations,
Supplier Empowerment the Responsible Business Alliance (RBA) guidelines, SA8000, we rigorously verify the actual ages of employees to prevent
and relevant national laws and regulations, the Company
the accidental employment of child labour due to false age
Hoshine Silicon values communication and interaction with its partner suppliers. Through diverse training programs with rich has formulated and implemented the Anti-Forced Labour
information provided by employees. We also commit not to
themes, it helps suppliers enhance their sustainable development capabilities. During the Reporting Period, we used multiple Policy and Management Commitment and the Rules for the
cooperate with any suppliers or contractors that use child
channels such as enterprise WeChat, telephone, email, on-site visits, exhibitions, public platforms, and industry associations Implementation of Anti-forced Labour . These documents
labour. In addition, the Company has established a child
to ensure the sustainable development of both the Company and our supplier partners, and to boost the development of local clearly prohibit all Hoshine Silicon enterprises, suppliers, and
labour relief strategy. In the event that a child is mistakenly
industries. outsourced labour service providers from using any form of
forced labour. hired, the Company will promptly settle all the remuneration
We actively conduct supplier empowerment training. The training content includes supply chain anti-forced labor, health and owed, remove the child from the workplace, and assist the
safety, environmental protection, business ethics, labor standards, and zero-tolerance items, further improving the ESG-related We regularly conduct external audits related to human rights child in receiving school education until the child reaches the
performance of suppliers. to evaluate the implementation of the anti-forced labour age beyond that defined as a child.
policy. For example, Eurofins Consumer Products Assurance
(Eurofins CPA) carried out a two-day on-site corporate Promotion of Reasonable Working Hours
social responsibility audit for Hoshine, and the SGS Group
conducted a one-day Together for Sustainability audit and a
Hoshine Silicon advocates for reasonable working hours
two-day Sedex Members Ethical Trade Audit for Hoshine. The
for its employees, strictly prohibits forced labour, and
audit results did not reveal any involvement of Hoshine in the
clearly defines that employees have legitimate rights such
as holidays. To safeguard employees' legitimate rights
In addition, we regularly organize special training sessions and ensure their reasonable rest time, the Company has
on anti-forced labor for employees, introducing to them implemented a facial recognition attendance system and a
corporate social responsibility and labor rights-related comprehensive working hours system in compliance with
content, such as the identification and prevention of child legal regulations. The Company encourages employees to
labour, as well as legal obligations related to wages, benefits, arrange their working hours rationally to achieve a balance
working hours, non-discrimination, and the prohibition between work and life.
of abuse. Hoshine Silicon also regularly distributes the
New Employee Questionnaire and the Employee Regular
Questionnaire to confirm with employees that the Company
complies with anti-forced labor-related policies.
Excellent Hoshine, Scaling New Heights/
Equal Employment Employee Development
We adhere to the principle of equal employment, strictly prohibiting any form of discrimination. We firmly oppose any unjust We attach great significance to the career development and promotion of employees. In accordance with internal systems
treatment during the recruitment process due to factors such as gender, age, nationality, marital status, and race, ensuring fairness related to employee career development, such as the Management Measures for New Employee Induction Training, Management
and equality in employment. If employees experience discrimination or harassment, they can report it to the relevant department. Measures for Mentor-Apprentice System , and Reward System for Professional Titles and Vocational Qualification Certificates , we
If an investigation confirms the existence of discrimination or harassment, disciplinary measures, including termination of standardize the employee promotion incentive mechanism and the knowledge and skills training management system, providing
employment, will be taken against the individuals involved. institutional support for employees at every stage of their growth.
In 2024, there were no incidents of child labour, forced labour, workplace discrimination, or sexual harassment at Hoshine Silicon. The Company has formulated a clear, transparent, and complete employee promotion system, which encourages employees to
The labour contract signing rate reached 100%. make continuous progress and grow in their careers. It ensures that employees are provided with promotion paths that are in line
with their career plans and personal strengths.
Attraction and Development Hoshine Silicon is committed to constructing a comprehensive and multi-level talent cultivation system. By formulating "Agile
Talent Operation Plans" at each level, it aims to offer customized development support for employees at different levels and in
different positions. In addition, we have set up an online learning platform, which not only expands the learning channels and
We advocate a diverse and inclusive corporate culture, attach great importance to employees' well-being and career development,
scope for employees but also dynamically preserves experiences. It helps employees acquire knowledge in a more flexible and
and actively create a platform for rapid growth and development. We are committed to fostering a culture characterized by
diverse way and, through visual means, enables employees to more quickly understand and master job-related skills. In 2024, the
fairness, transparency, diversity, and inclusiveness. Company launched a number of key training programs for employees at different ranks.
Employee Recruitment
Hoshine Silicon Employee Training System
Talent is a crucial pillar for the development of an enterprise. the other hand, it enters university campuses and holds
In line with its own development needs, Hoshine Silicon has numerous campus recruitment fairs, focusing on expanding
formulated systems such as the Recruitment Management the reserve of high-quality talents. Eagle Training Camp Newcomer Training Camp
System and the Headquarters Interview Process . These systems
standardize all aspects of employee recruitment and selection, To address temporar y employment requirements and
Training Goal: Help vocational college graduates Training Goal: Help undergraduate campus recruits
clarify recruitment and hiring criteria, ensuring that the promote employment, the Company has implemented a
master job-specific knowledge and skills and meet enhance their ability to analyze and solve problems in
personnel recruitment process is legal, compliant, fair, and just. flexible labor employment strategy. By releasing recruitment
job requirements practice and reserve talents for key positions
information through multiple channels, organizing online
Hoshine Silicon actively constructs diversified talent and offline recruitment fairs, providing pre-job training, Training Model: Assigning mentors for job practice Training Model: Rotation learning in the main workshop;
recruitment channels. It attracts diverse talents in an all-round and strengthening dynamic supervision and information to provide one -on-one guidance to enhance assigning mentors for job practice and management
way through multiple channels, including online recruitment feedback, the Company ensures that flexible workers receive professional skills and job adaptability advisors for project research to provide one-on-one
platforms, offline job fairs, and headhunting services. On the equal pay for equal work as employees in similar positions guidance to improve the comprehensive abilities of
one hand, based on the nature of its business, the Company in the employing units, thus safeguarding the rights and
trainees
meets the recruitment needs of front-line employees. On interests of workers.
Hoshine Silicon's "Spring Breeze Project" Talent Recruitment Project
Cornerstone Training Camp Elite Training Camp
To match the Company's strategic
plan and meet the needs of business Training Goal: Develop a group of reserve talents with Training Goal: Develop a group of reserve personnel
expansion, Hoshine Silicon has strong technical capabilities and a good command with excellent professional skills and a good grasp of
launched the "Spring Breeze Project" of advanced management methods and tools advanced management concepts and techniques for
talent recruitment initiative, targeting key positions
young talents in society at large. Training Model: Assigning mentors for one-on-one
In 2024, the Company carried out guidance to enhance professional skills; combining Training Model: Concentrated training in internal and
large-scale recruitment promotion training with practice to improve job adaptability external professional courses; combining training with
in 17 districts and counties in Gansu, practice to improve job suitability
Qinghai, and Ningxia through
synchronous online and offline
publicity. As a result, it effectively
attracted 1,263 young talents from We have established a series of job-skills training programs based on job requirements, which support employees in mastering
schools and society to join Hoshine the knowledge and skills necessary for their work and enable them to achieve substantial development. Hoshine Silicon provides
Silicon. eligible employees with opportunities to pursue excellence and build unique advantages. It encourages them to receive higher-
level professional training and acquire knowledge and skills beyond the scope of their work, such as obtaining certificates in
chemical general control, special operations, special equipment, occupational health, hazardous chemicals, and work safety.
Meanwhile, we actively support employees in obtaining official degrees, academic qualifications, and external certifications issued
by educational institutions. The Company bears the relevant training costs and provides subsidies to employees who obtain
certificates, to encourage them to independently improve their professional skills.
Excellent Hoshine, Scaling New Heights/
Care and Communication Hoshine Silicon Celebrates Festivals Together with Ethnic Minority Partners
Hoshine Silicon is deeply aware of the significance of employees' sense of happiness and belonging to the Company. It spares no The Shihezi and Shanshan parks of Hoshine Silicon celebrate major traditional festivals like the Spring Festival, Mid-
effort in enriching employees' off-work lives, demonstrating its profound care for employees through tangible actions. autumn Festival, Eid al-Adha, and Eid al-Fitr together with ethnic minority partners. The Company organizes festival galas
and Mandarin competitions and distributes festival benefits.
Employee Remuneration and Benefits
Hoshine Silicon is dedicated to offering employees competitive remuneration packages. Guided by a value-oriented principle, the
Company has formulated systems such as the Remuneration Management System and the Performance Management System .
These systems ensure that the remuneration standards are fair within the Company and competitive in the external market, fully
motivating employees and contributing to the Company's sustainable development as well as the realization of employees'
personal value. The Company's Board of Directors has a Remuneration and Assessment Committee, which conducts performance
evaluations in accordance with relevant regulations to guarantee the fairness and impartiality of employee performance appraisals.
On top of legally signing labour contracts and making contributions to the five social insurances and one housing fund, we
actively maintain non-remuneration benefits for employees, including employee dormitories, accommodation allowances, meal
allowances, phone bill subsidies, regular health check-ups, holiday benefits/activities, and team incentive funds. We also ensure
the effective implementation of various welfare measures such as sick leave, maternity leave, paternity leave for caregiving,
breastfeeding support, and special holiday benefits during festivals like the Eid al-Adha and the Eid al-Fitr Festival in Xinjiang.
Employee Communication Employee Care Hoshine Silicon Xinjiang Region Spring Festival Cultural Performance and Mandarin Competition
Hoshine Silicon respects and gives full attention to the Hoshine Silicon shows care for the physical and mental health
opinions and feedback from employees. This not only of its employees. A series of humanistic care activities and
increases employees' participation in the Company's cultural and sports activities have been carried out according The Company attaches great importance to the work experiences and needs of employees with disabilities, female employees, and
development but also effectively enhances team cohesion, to the actual needs of employees, making every employee ethnic minority employees, and is committed to creating an inclusive, equal, and caring working environment.
further promoting our development. We have established feel the warmth of the Company. Over the years, Hoshine
the Employee Complaint Handling Procedure and actively Silicon has closely centered around the main theme of ethnic
set up information feedback channels, including the work in the new era, which is the awareness of the Chinese Inclusion of Employees Care for Female Valuing Ethnic
General Manager's mailbox, complaint hotline, WeChat nation community. It has actively launched various caring with Disabilities Employees Minority Colleagues
for complaints, the Company's DingTalk platform, Human activities and public welfare undertakings for ethnic minority
Resources Communication Station and the Employees' employees, such as "Summer Heat Relief", "Winter Warmth
Congress. These channels ensure that employees have Delivery", "Eid al-Adha Gala", and assistance to employees The Company actively creates We have established private We have set up a halal food window
accessible ways to voice their grievances and their rights and in hardship. These efforts have truly brought warmth to the a friendly work environment rest rooms and nursing rooms in the park cafeteria to better meet
interests are safeguarded. hearts of a large number of ethnic minority employees. for employees with disabilities, for female employees, aimed at the dietary habits of ethnic minority
offering jobs with moderate better protecting their privacy employees.
The Company approaches every employee's complaint and Meanwhile, Hoshine Silicon respects multi-ethnic cultures and intensity and flexible hours. and meeting the daily needs of
report with the utmost seriousness. It conducts in-depth has established an Ethnic Affairs Management Committee. It They can choose suitable work those who are breastfeeding. n the basis of the original training
O
investigations into each case one by one and handles them adopts a governance model where ethnic minority employees hours based on their conditions materials and courses, we have
appropriately, all the while ensuring that feedback is provided help each other, aiming to build a harmonious and inclusive and have the option for remote e provide regular gynecological
W supplemented and developed bilingual
within the stipulated time limit. We have clearly defined a multi-ethnic labor relationship. There are more than 10,000 work, reducing commuting inspect, breast cancer screenings, training materials and courses to help
whistleblower protection mechanism, which guarantees the ethnic minority employees from over 40 ethnic groups within burdens. and comprehensive maternity ethnic minority employees master job
confidentiality of the informer's information. By safeguarding Hoshine Silicon. The Company provides them with excellent insurance for our female skills more quickly.
employees' complaint and reporting data, we ensure that working and living conditions and has become one of the employees, ensuring their health
their privacy and security remain inviolable. exemplary enterprises in the Xinjiang region for "promoting and well-being. In some of our parks, we have
ethnic unity and achieving common prosperity". organized one-on-one pairing
We conduct an annual employee satisfaction survey that between Han Chinese and ethnic
covers multiple dimensions, including the work environment, minority employees. This initiative
remuneration and benefits, career development, and helps ethnic minority employees
corporate culture. Based on the feedback and suggestions enhance their professional skills
obtained, we continuously optimize our workplace and improve their daily Mandarin
environment. communication abilities.
Hoshine Silicon's Employee Care Measures
Excellent Hoshine, Scaling New Heights/
Occupational Health and Safety
Community Co-construction
Hoshine Silicon continuously strengthens its work safety management system. Through measures such as providing health and
safety training, the Company is dedicated to creating a safe and healthy working atmosphere, safeguarding the well-being of its
employees. During the Reporting Period, there were no major or extremely serious safety accidents at Hoshine Silicon.
Safe Production Hoshine Silicon is actively engaged in social welfare undertakings. It takes proactive actions in areas such as educational
support and merit-based rewards, respect for the elderly and care for the young, disaster relief and poverty alleviation, rural
We strictly comply with laws and regulations, including the production site and conducts comprehensive safety hazard revitalization, and low-carbon environmental protection, fulfilling its corporate social responsibility.
Work Safety Law of the People's Republic of China and the inspections. The aim is to promptly detect and eliminate all
Law of the People's Republic of China on the Prevention kinds of safety hazards. Once potential hazards or safety risks
and Control of Occupational Diseases . We have formulated are discovered, the Company immediately makes detailed
systems such as the Work Safety Goal Management System records and continuously follows up until the problems
and the Safe Production Responsibility Management System , are properly resolved, achieving 100% rectification. This
clearly defining the responsibilities and obligations of approach prevents and reduces the occurrence of safety
managers and employees at all levels in work safety. Based accidents at the source.
on a clear work safety management structure, we rigorously
implement a full-staff safety production responsibility system. Our production units formulate emergency response plans
The Safety and Environment Department is required to sign for potential accidents, focusing on major hazards and on-
work safety goal responsibility agreements with the heads of site incident handling. These plans are designed to guide Educational Support
employees in dealing with safety accidents promptly Respect and Care Support for the Rural Revitalization
various industries and workshops every year to ensure the and Merit-based
and effectively, thereby reducing production safety risks. for the Elderly Needy and Disabled
achievement of annual work safety goals and the safety of Rewards
personnel in the production process. Meanwhile, we foster a strong safety culture through regular
safety-related training and practical drills, such as emergency Hoshine Silicon offers care Hoshine Silicon has Hoshine Silicon facilitates Hoshine Silicon responds
Each production unit of Hoshine Silicon has established evacuation exercises and heatstroke response simulations, to ser vices to the elderly, donated scholarships the integration of to the Rural Revitalization
a work safety management organization, which regularly reinforce awareness of work safety in practice. distributes elderly-care and teaching equipment disadvantaged groups Strategy, promoting the
supervises and inspects the safety management of the subsidies, promotes the to schools in regions such into society and improves development of rural
culture of respecting the as Zhejiang, Xinjiang, and their quality of life through areas through industrial
Occupational Disease Prevention elderly, and boosts the Sichuan, contributing aid projects, employment investment, technical
sense of happiness among to the enhancement of support, and the rental of support, and talent
Hoshine Silicon strictly adheres to occupational health-related laws and regulations, including the Law of the People's Republic the elderly. educational quality. assistive devices. cultivation.
of China on the Prevention and Control of Occupational Diseases , the Measures for the Management of Occupational Health
Examinations , and the Regulations on Work-related Injury Insurance . A series of systems, such as the Occupational Health
Management System and the Emergency Rescue and Management System for Occupational Disease Hazards , have been
formulated to ensure the health and safety of all employees. During the Reporting Period, a total of 12 subsidiaries of Hoshine
Silicon have obtained occupational safety management system certifications.
Health Risk Identification Occupational Health Examination
Occupational Factory
We hire a third party every W
e regularly organize comprehensive Disease Hazard Layout and
year to conduct regular occupational health examinations for Warnings and Ventilation
occupational health tests and employees every year and promptly Protection Facilities
tests for occupational hazard arrange pre-employment, in-service,
factors. Simultaneously, we post-resignation, and emergency health
carry out the identification,
assessment, and management
examinations. Occupational
Health
Equipment
and Safety Rural Revitalization
Specialized Training on
of occupational health risks. Management Facilities
Occupational Health
and Health The Company actively answers the call of the national Rural
e assign dedicated personnel
W e regularly conduct specialized training
W Surveillance Revitalization Strategy, driving the economic development
to regularly inspect production sessions for all employees exposed to and social progress in rural areas. We assist local farmers in
equipment and the working occupational hazards every year. These increasing their income and improving their living standards
environment, identify potential sessions cover the popularization of laws by creating employment opportunities and backing the
safety hazards, and establish and regulations knowledge, occupational Noise and Power Heatstroke and development of rural industries. In 2024, Hoshine Silicon
equipment maintenance plans health and hazard protection, occupational Frequency Cold Prevention purchased over 30,000 boxes of Aksu apples from Xinjiang
to reduce the risk of personnel health education, work injury prevention, Electric Field Measures and distributed them as Spring Festival benefits to all its
injury caused by equipment mental health, and stress management, and are Protection employees. This action helps local fruit farmers increase
failures. followed by assessment and evaluation. their income and prosper, contributing to the sustainable
Hoshine Silicon's Occupational Health and Safety Management Measures Hoshine Silicon's Production Process Safety development of rural regions. Hoshine Silicon Purchases Xinjiang Aksu Apples
Measures
Excellent Hoshine, Scaling New Heights/
Contributions to the Society "Together with Me for Barrier-free Love" Donation Campaign
Hoshine Silicon actively participates in community activities, giving full play to its corporate social responsibility. It endeavors In 2024, Hoshine Silicon organized the "Together with Me for Barrier-free Love" donation campaign in multiple regions.
to improve the quality of life and development level of local communities, striving to create a more beautiful and sustainable This effectively contributed to the development of public welfare for people with disabilities and actively fulfilled the
community. Company's social responsibility. As one of the inaugural member organizations of Cixi City's Disability Assistance Alliance,
Hoshine Silicon actively fulfills its organizational mission of "Uniting Philanthropic Strength for a Brighter Future." We
Since 2022, Hoshine Silicon has been continuously promoting the "Together with Me in Charity" series of public welfare projects.
participated in the launch ceremony of Cixi City's 34th National Disability Day and collaborated with multiple local
It focuses on carrying out public welfare activities in five major areas: educational support and merit-based awards, respect for
governments and social organizations to conduct a series of charitable donation initiatives, demonstrating its commitment
the elderly and care for the young, disaster relief and assistance, rural revitalization, and low-carbon environmental protection.
to supporting vulnerable groups.
Through financial and material support as well as the joint participation of employees and caring members of society, it aims to
drive the development of public welfare and promote social harmony and progress. In Cixi, the Hoshine Charity Foundation has taken the lead in establishing assistive device rental stations in Ningfeng Village
(Changhe Town) and Binhe Community (Baisha Road Subdistrict). Through the donation of wheelchairs, walkers, etc., the
Foundation is effectively addressing the practical needs of individuals with disabilities and elderly residents. In Xinjiang,
Hoshine Silicon Holds Tree Planting Day Activities to Fulfil Environmental Responsibilities
the Foundation has partnered with Shanshan County Kindness Social Work Service Center to provide living supplies and
assistive devices to residents with disabilities. Additionally, through a targeted RMB100,000 donation to Shihezi Charity
In 2024, we organized tree-planting initiatives and low-carbon campaigns for employees, fostering their enthusiasm for Federation, the Foundation supported a disabled curling competition, empowering participants to build confidence and
sustainable practices while strengthening team cohesion. These efforts showcased Hoshine Silicon's commitment to social integration through sports.
environmental stewardship and social responsibility.
Hoshine Silicon is dedicated to promoting the humanitarian spirit and charity culture. It actively participates in social welfare
undertakings, with the donation scope covering care for nursing homes, optimization of grassroots convenient services, promotion
of high-quality education development, and assistance in rural revitalization. The aim is to help disadvantaged groups and
promote the development of social welfare. In 2024, the Cixi Hoshine Charity Foundation was rated as an "Advanced Organization
for Charitable Donations" by the Cixi Municipal People's Government and was proposed to be rated as a 3A-level social
organization. It has become a member organization of the Cixi City's Disability Assistance Alliance.
Honorary Awards of Cixi Hoshine Charity Foundation
Key Performance Table Indicator Unit Data of 2024
Sulphur Oxide SOx Emission Ton 1,050.72
Environmental Performance Sulphur Oxide SOx Emission Intensity kg/RMB One Million 39.36
Nitrogen Oxide NOx Emission Ton 5,399.66
Indicator Unit Data of 2024
Nitrogen Oxide NOx Emission Intensity Kg /RMB One Million 202.29
Energy Consumption10
VOC Emissions Ton 6.63
Direct Energy Consumption
VOC Emissions Intensity Kg /RMB One Million 0.25
Diesel Consumption Ton 6,960.48
Particulate Matter (PM) Emissions Ton 868.11
Gasoline Consumption Ton 39.38
Particulate Matter (PM) Emission Intensity Kg /RMB One Million 32.52
Coal Consumption Ton 4,927,538.51
Wastewater
Natural Gas Consumption Normal Cubic Meter 145,423,896.94
Total Wastewater Discharge Ton 2,147,434.59
Indirect Energy Consumption
COD Ton 260.49
Purchased Electric Power Consumption MWh 16,683,618.66
Ammonia Nitrogen Ton 12.73
Purchased Steam Ton 381,397.00
Wastewater Discharge Density Ton/RMB One Million 80.75
Renewable Energy Consumption
Waste
Renewable Energy Use TCE 438,387.30
Hazardous Waste
Total Energy Consumption
Total Energy Consumption (direct) TCE 3,689,907.10 Hazardous Waste Transfer Volume12 Ton 102,512.29
Total Energy Consumption (indirect) TCE 2,099,464.39 Hazardous Waste Recycling and Reuse Volume Ton 39,157.37
Total Energy Consumption (excluding renewable energy) TCE 5,789,371.49 Volume of Hazardous Waste Treated by other Method13 Ton 63,354.92
Integrated Energy Consumption Intensity (excluding Harmful Waste Density Ton/RMB One Million 3.84
TCE/RMB One Million 216.89
renewable energy)
Non-hazardous Waste
Greenhouse Gas Emission11
Non-hazardous Waste Collection Volume (non-recyclable) Ton 43,899.91
Total Greenhouse Gas Emissions (Scope 1 and Scope 2) Carbon Dioxide Equivalent - Ton 17,903,747.80
Non-hazardous Waste Collection Volume (recyclable) Ton 520,731.86
Direct Greenhouse Gas (Scope 1) Carbon Dioxide Equivalent - Ton 9,065,365.27
Non-hazardous Waste Density Ton/RMB One Million 21.15
Indirect Greenhouse Gas (Scope 2) Carbon Dioxide Equivalent - Ton 8,838,382.53
Water Resource Consumption
Greenhouse Gas Emission Density TCO2e /RMB One Million 670.75
Total Water Consumption Ton 20,843,814.80
Exhaust Gas
Tap Water/Municipal Water Drawing Volume Ton 20,843,814.80
Total Exhaust Gas Emission M3 11,078,808.80
Water Use Intensity Ton/RMB One Million 780.89
Exhaust Gas Emission density M?/RMB One Million 415.06
The energy consumption calculation for operations in China is based on the General Principles for Calculation of the Comprehensive Energy Consumption
(GB2589-2020) issued by the State Administration for Market Regulation and the Standardization Administration of China.
he main sources of greenhouse gas emissions of the Company are the use of purchased electric power, the consumption of natural gas, as well as
T
the use of diesel, coal, and gasoline. The calculation scope includes Hoshine Silicon Industry Co., Ltd. and all its stable production subsidiaries. Scope
Transfer Volume = Recycling and Reuse Volume + Volume Treated by Other Methods
Enterprises (Trial) issued by China's National Development and Reform Commission (NDRC) and the 2006 IPCC Guidelines for National Greenhouse Gas 13
Other treatment methods include incineration treatment and landfill treatment.
Inventories published by the Intergovernmental Panel on Climate Change (IPCC).
Indicator Unit Data of 2024 Indicator Unit Data of 2024
Use of Packaging Materials Customer Privacy and Security
Total Amount of Packaging Materials Used Ton 54,505.59 Number of Customer Privacy Breaches Case 0
Plastics Ton 22,398.24 The Amount of Money Involved in the Customer Privacy Breach RMB Ten Thousand 0
Paper Ton 15,405.44 Number of suppliers
Glass Ton 0 Total Number of Suppliers Nr. 6,708
Metal Ton 12,692.08 Number of Suppliers by Region
Other Categories Ton 4,009.83 Number of Mainland China suppliers Nr. 6,697
Packaging Material Usage Density Tons/RMB One Million 2.04 Northeastern China Nr. 219
Northern China Nr. 477
Central China Nr. 400
Social Performance
Northwestern China Nr. 1,594
Southwestern China Nr. 511
Eastern China Nr. 3,197
Indicator Unit Data of 2024
Southern China Nr. 299
Product Quality and Safety
Number of Suppliers from Chinese Hong Kong, Macao and Taiwan Nr. 4
Number of Product Safety and Quality Accidents Case 0
Number of Foreign Suppliers Nr. 7
Amount of Accident Damage RMB Ten Thousand 0
Supplier ESG Management
Number of Product Recall Batches Times 211
Number of Suppliers that have Signed the Supplier Code of Conduct Nr. 5,56214
R&D Innovation and Intellectual Property
Ratio of Suppliers that have Signed the Supplier Code of Conduct % 82.92
RMB One Hundred Number of ESG/CSR-related Training Sessions Conducted for Suppliers Times 1
R&D Expenses 5.7
Million
Total Duration of ESG/CSR-related Training Conducted for Suppliers Hour(s) 884
R&D Investment Ratio % 2.10
Number of Employees
Number of National Science and Technology Award Winners Pcs 0
Total number of Employees Person 21,994
Number of Supplier Collaborations in R&D Pcs 4
Number of Employees by Employment Type
Number of patents granted to the Company Pcs 675
Full-time Person 21,653
Number of invention patents Pcs 87
Part-time Person 341
Number of various standards formulated or revised as a lead or participant Pcs 60 Number of Employees by Gender 15
Number of scientific and technological articles published Article Nearly 50 Male Person 16,755
Customer Service Female Person 4,898
Complaint Handling Rate % 100
Customer Satisfaction (out of 100) / 93.48
Hoshine Silicon has required our suppliers to sign a Supplier Code of Conduct since 2023. The data is based on the upgraded system and is gradually covering
all suppliers.
The total number of people is the total number of full-time employees.
Indicator Unit Data of 2024 Indicator Unit Data of 2024
Number of Employees by Age16 Proportion of Women in Junior Management % 9.26
Under 30 Person 11,735 Employees' Rights and Interests
Over 50 Person 856 Incidents Related to Child or Forced Labour Pcs 0
Number of Employees by Work Area 17
Labour Contract Signing Rate % 100
Mainland China Person 21,653 Health & Safety
Chinese Hong Kong, Macao and Taiwan Person 0 Number of Workdays Lost Due to Work-related Injuries Days 14,630
Overseas Person 0 Employee Coverage of Work-related Injury Insurance % 100
Number of Staff by Rank18 Employee Coverage of Safety Production Liability Insurance % 57.90
Senior Management Person 125 Work Injury Insurance Expenditure RMB Ten Thousand 1,060.39
Middle Management Person 871 Work Safety Liability Insurance Expenditure RMB Ten Thousand 7,712.10
Junior Management Person 3,206 Social Investment
Regular Employee Person 17,451 Total Funds of Social Contribution RMB Ten Thousand 224.3
Employee Training Total Funding for Rural Revitalization RMB Ten Thousand 33.8
Total Number of Full-time Trained Employees Participation(s) 410,46519 Aggregate Participation in Public Charity Commitment Participation(s) Nearly 200
Percentage of Trained Employee % 100 Total Volunteer Service Hours Hour(s) Nearly 800
Total Hours of Employee Training Hour(s) Over 40 million 20
Training and Development Expenses RMB Ten Thousand 416.95
Labour Diversity
Number of Women in Management (both junior, middle and senior) Person 363
Proportion of Women in Management (both junior, middle and senior) % 8.64
Number of Women in Senior Management Person 6
Proportion of Women in Senior Management % 4.80
Number of Women in Middle Management Person 60
Proportion of Women in Middle Management % 6.89
Number of Women in Junior Management Person 297
The total number of people is the total number of full-time employees.
The total number of people is the total number of full-time employees.
The total number of people is the total number of full-time employees.
he plants implement an essential knowledge and compliance training program with weekly sessions, leading to elevated aggregate figures in both participant
T
volume and training duration.
he plants implement an essential knowledge and compliance training program with weekly sessions, leading to elevated aggregate figures in both participant
T
volume and training duration.
Governance Performance Shanghai Stock Exchange (SSE)
Indicator Unit Data of 2024 Guidelines Index
Business Ethics
Dimension Nr. Issues Corresponding chapter
Total Duration of Directors' Participation in Anti-
Hour(s) 8
corruption Training 1 Climate Change Tackling Future Hoshine, Green Leadership: Low-carbon Operations
Total Participation of Directors in Anti-corruption
Participation(s) 3 2 Pollutant Discharge Future Hoshine, Green Leadership: Pollutant Discharge
Training
Total Duration of Management Participation in Anti- 3 Waste Disposal Future Hoshine, Green Leadership: Pollutant Discharge
Hour(s) 1
corruption Training
Future Hoshine, Green Leadership: Environmental
Total Participation of Management in Anti-corruption Environment Management
Participation(s) 102
Training
Environmental Compliance Future Hoshine, Green Leadership: Environmental
Total Duration of Employees' Participation in Anti- Management Management
Hour 16
corruption Training
Total Participation of Employees in Anti-corruption
Participation(s) 835 7 Usage of Water Resources Future Hoshine, Green Leadership: Resource Usage
Training
Number of Corruption and Bribery Cases Item 121
Excellent Hoshine, Scaling New Heights: Community Co-
Information Security 9 Rural Revitalization
construction
Number of information security incidents Item 0 Excellent Hoshine, Scaling New Heights: Community Co-
construction
Amount involved in information security incidents RMB Ten Thousand 0
Excellent Hoshine, Scaling New Heights: Quality
Management
Excellent Hoshine, Scaling New Heights: Supply Chain
Security
Society
Equal Treatment to Small and Excellent Hoshine, Scaling New Heights: Supply Chain
Medium-sized Enterprises Security
Excellent Hoshine, Scaling New Heights: Quality
Safety and Quality of Products and Management
Services Excellent Hoshine, Scaling New Heights: Customer
Experience
Data Security and Customer Privacy Responsible Hoshine, Refined Governance: Data Security
Protection and Customer Privacy Protection
Excellent Hoshine, Scaling New Heights: Caring for
Employees
Sustainability-
related
Governance Anti-commercial Bribery and Anti-
corruption
The Company has issued the Announcement of Hoshine Silicon Industry Co., Ltd. on Receiving the Criminal Judgment and the Litigation Progress on August
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