About the Report
Introduction to Report
The report is the 2023 Environmental, Social and Governance (ESG) Report released to the public by Hunan Changyuan Lico Co.,
Ltd. (hereinafter referred to as "Changyuan Lico", "the Company" or "we"). the report is open to all stakeholders of Changyuan Lico,
and truthfully discloses the Company's responsibility performance practices towards important stakeholders such as shareholders,
clients, partners, and employees in 2023, and its efforts in the ESG field based on the principles of objectivity, standardization and
transparency, with the aim of responding to the expectations of stakeholders and better fulfilling social responsibilities in the future.
Reporting Period
From January 1, 2023 to December 31, 2023. To enhance the comparability and completeness of the report, some data and content
are appropriately traced back to previous years.
Reporting scope
Unless otherwise specified, the report covers the ESG situation of Hunan Changyuan Lico Co., Ltd. and its wholly-owned and
holding subsidiaries, and the report scope is consistent with the Company's annual report.
Description of usage standard
The report is prepared in accordance with the relevant requirements of the Self-regulatory Guidelines for the Companies Listed
No.1-Standardized Operation of Shanghai Stock Exchange, the Preparation Guidelines for Sustainable Development Report (GRI
Standards) of Global Reporting Init i ative, and the Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises
(CASS-ESG5.0) of Chinese Academy of Social Sciences and other reporting guidelines or rules.
Data source and reliability guarantee
All information data referenced in the report is based on the in-house documentation, statistical report, financial report, etc., of
Changyuan Lico. The report is issued after full review by the Board of Changyuan Lico and no presence of inaccurate records,
misleading statements or major omissions will be found in the report.
Monetary unit
Unless otherwise specified, the monetary amounts included in the report are listed in RMB.
Availability of the Report
The report and its English version are available for download at the website of Shanghai Stock Exchange (www.sse.com.cn) and the
company website.
Feedback
Please feel free to contact us if you have any comments or suggestions regarding the content of the report or the Company's
performance in ESG. Your opinions and suggestions will help us further improve the report and our ESG performance.
E-mail: cylico@minmetals.com
Tel.: 0731-88998117
Address: No. 61 Yan'gao Road, Yuelu District, Changsha City, Hunan Province
CONTENT
Low carbon and Efficient governance Putting people
environmental protection, with stable footsteps and first and creating a
harmonious coexistence forward thinking better future
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Message from the Chairman
reduction and carbon reduction measures in various links such as raw material selection, technology research and
development, equipment upgrading, product manufacturing, process iteration, project construction, resource recycling
and management optimization. Organize theme activities such as "Fire Propaganda Month", "Energy Conservation
Propaganda Week" and "National Low Carbon Day" to gather digital and intelligent empowerment, and promote the
construction of a beautiful China and the achievement of the "carbon peaking and carbon neutrality" goal.
In 2023, we will effectively fulfill our social responsibilities and demonstrate the mission and responsibility of central
enterprises by taking proactive and practical actions. Always keeping in mind the "greatness of the country", actively
serving the national new energy vehicle strategy, strengthening key core technology research and development,
accelerating the cultivation and development of new quality productivity, promoting high-level technological self-
reliance and self-improvement, and ensuring that the company's social and economic benefits grow synchronously,
and the development achievements are shared with society. Organize public welfare actions such as love package
donations, donations for education, school enterprise cooperation, voluntary blood donation, and tree planting, and
continue to participate in the targeted assistance work of Huayuan County, Hunan Province, to help consolidate and
expand the achievements of poverty alleviation and effectively connect with rural revitalization. Adhere to the strategy of
strengthening enterprises with talents, attach importance to the health, safety, and development of employees, advocate
the concept of "efficient work, healthy life", warmly build a "home for employees", carry out diverse cultural and sports
competition activities, focus on improving the work environment and quality of life, and continuously enhance the sense
of gain, happiness, and security of employees.
In 2023, we will benchmark against world-class standards and enhance modern corporate governance capabilities with
reform and innovation courage. Seriously implement the principle of "two consistencies" and promote the integration
of Party leadership into corporate governance from the aspects of institution, system, and organization. In accordance
with the decisions and deployments of the State-owned Assets Supervision and Administration Commission of the State
Council and China Minmetals on the deepening and upgrading actions of the new round of state-owned enterprise
reform and the value creation actions by benchmarking world-class enterprise, we will coordinate the deepening of the
company's reform and the construction of world-class enterprises, focus on the goals of "excellent products, outstanding
brands, leading innovation, and modern governance", continuously improve core competitiveness and enhance core
functions. Strengthening the capacity building of the headquarters to "manage all kinds of affairs and grasp the overall
The year of 2023 is the beginning year of fully implementing the spirit of the 20th National Congress of
situation", and enhancing the functions of internal control, risk prevention, and compliance promotion are becoming
the Communist Party of China. Over the past year, the Company has adhered to the guidance of Xi Jinping
increasingly prominent. Develop and implement a series of policy measures to "manage the present and benefit the
Thought on Socialism with Chinese Characteristics for a New Era, conscientiously implemented the spirit of
long term", and steadily improve the efficiency of modern enterprise governance through the two wheel drive of
the Central Economic Working Conference, actively practiced the new development concept of innovation,
"reform+innovation".
coordination, green, openness, and sharing, adhered to the overall keynote of seeking progress while
maintaining stability, honed the original intention of struggle, adhered to the major responsibilities and Environmental protection, social responsibility, and corporate governance are the necessary paths for sustainable
tasks, focused on value creation, deepened enterprise reform, and worked hand in hand with its partners development of the enterprise. We will always adhere to the guidance of Xi Jinping Thought on Socialism with Chinese
to promote high-quality development, contributing the "Lico power" to the sustainable development of the Characteristics for a New Era, deeply implement the spirit of the 20th National Congress of the Communist Party of China,
industry and society. not disappoint the responsibility of central enterprises, not disappoint the expectations of the times, maintain a spirit of
forging ahead and never slacking off, and an attitude of seizing every minute and pressing forward with indomitable will,
In 2023, we firmly followed the road of green development and confirmedly promoted the environmental
pushing the Company to move forward towards the goal of "being a leader in the global new energy materials industry",
protection. Actively implement the main responsibility of ecological environmental protection, deeply
and strive to write a new chapter of high-quality development of Changyuan Lico on the new journey !
carry out special inspections for safety and environmental protection and special investigations and
rectification for major accident hazards, and continuously fight the battle against pollution prevention
and control. Adhere to the concept of green, low-carbon and environmental protection throughout the
Hu Liuquan, the Secretary of the Party committee and Chairman
whole production and operation management process, complete the carbon footprint certification and
full lifecycle accounting of the featured products, and solidly promote energy conservation, emission of Hunan Changyuan Lico Co., Ltd.
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Organizational structure
About Changyuan Lico Shareholders' meeting
Strategy Committee Board of Supervisors
Company profile
Nomination Committee Board of Directors
Hunan Changyuan Lico Co., Ltd. (hereinafter referred to as Changyuan Lico, stock code: 688779) was founded in 2002. It is a directly
Remuneration
managed enterprise of China Minmetals Corporation, a Fortune Global 500 company. It is a member enterprise of State-owned Enterprise and Appraisal Committee
Electric Vehicle Industry Alliance, the president unit of the Battery Association of Hunan, and the leader unit of Advanced Energy Storage Management
Materials Industry Alliance in Changsha-Zhuzhou-Xiangtan. It was listed on the science and technology innovation board of Shanghai
Stock Exchange in August 2021.
As the core support for China Minmetals to implement the innovation-driven development strategy and build a "new power for the
General management department
committee office)
Party-masses work department and party
(Party committee publicity department,
Party committee organization department
(Human resource department)
Strategic planning department
Financial department
Discipline inspection department
audit department and legal department)
(Inspection office of the party committee,
department
Safety & environment protection
Procurement center
Sales center
R&D center
Production center
Quality assurance department
Logistics department
Information technology center
Project headquarters
future", Changyuan Lico adheres to the action guide, value orientation and enterprise spirit of "world-class mission and responsibility,
leading role of independent innovation, problem-oriented work thinking, quality of excellence, and the striving spirit of daring to win".
With the strategic positioning of "domestic first-class and internationally renowned new energy material supplier", it focuses on major
responsibilities and tasks, adhering to righteousness and innovation, being brave in undertaking and daring to take actions and creating
world-class, and is committed to making the enterprise stronger, better and bigger, sharing development achievements with a wider
range of stakeholders.
In the future, the Company will actively practice the new development concept of innovation, coordination, green, openness and
sharing, hone its original intention, strengthen its advantages, and work hand in hand with its partners to become "a leader in the global
new energy material industry". We will continue to contribute to meeting the growing needs of the people for a better life, serving the
implementation of the national new energy vehicle strategy and taking on the responsibility of promoting high-quality economic and
social development. We will also make new and greater contributions to achieving the goal of the second century!
Corporate culture
The Company has always adhered to the corporate
philosophy of "world-class mission and responsibility,
leading role of independent innovation, problem-
oriented work thinking, quality of excellence, and the
striving spirit of daring to win". Taking the road of
independent innovation, we are committed to building
a characteristic corporate culture, standardizing
organizational governance, earnestly fulfilling social
responsibilities, promoting a continuous and sound
development of the Company, creating a business
environment that pursues client satisfaction and
efficient operation, and playing a decisive role in
the continuous pursuit of excellent performance
management for the enterprise.
Enterprise Core
mission values
Becoming the leader in the global new Faithful, win-win,
energy material industry efficient and innovative
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Business overview Social recognition
The Company is mainly engaged in the R&D, production and sales of cathode materials of high-efficiency battery. The Company's main
products include multi-material precursors, multi-component cathode materials, lithium iron phosphate, lithium cobalt oxide and other
Li-ion cathode materials, as well as Ni-MH battery cathode materials. It has a complete product system of lithium multi-component
material precursors, lithium multi-component cathode materials and lithium iron phosphate cathode materials, and has always
maintained an industry-leading market share in the power ternary materials. The Company is headquartered in Changsha, Hunan
Province, with three production bases: High-tech, Lugu and Tongguan.
Corporate strategy
"Increasing Varieties, Improving Quality and University-enterprise Cooperation China's Top 50 Most
Changyuan Lico takes "adhering to strengthen the main business of Li-ion battery cathode material industry, Creating Brands" Benchmarking Enterprise Innovation and Entrepreneurship Promising Enterprises
adhering to diversified industrial allocation policy and adhering to global development direction" as the basic of Raw Material Industry in Hunan Education Base in Hunan
principle, and takes "becoming domestic first-class and internationally renowned new energy material supplier"
Industry and Information Technology Education Department of China Automotive Battery
as the strategic positioning. The Company is market-oriented, based on the precise analysis of the market,
Department of Hunan Province Hunan Province Innovation Alliance
to reasonably allocate corporate resources, clarify future development paths, and formulate the Company's
development strategy in combination with internal and external environment and its own advantages.
Constructing and improving business portfolio
Aiming at the diversified development of the cathode material industry, based on the existing ternary cathode
material, lithium iron phosphate cathode material, lithium cobalt oxide cathode material and ball nickel business, we
will strengthen the layout of cutting-edge products, construct an industry chain for raw material guarantee, material
production and recycling, improve the industrial layout, and enhance the Company's comprehensive competitiveness
and discourse power in the industry.
Stabilizing the domestic market and entering the international market
The Company adheres to the world-class mission and responsibility, and continues to expand its cooperative ESG Pioneer Practitioner Quality Excellence Award for CATL Best Strategic Partner
relationship with top domestic power battery manufacturers on the basis of stable cooperation with existing clients. Supplier in Q1 of 2023
At the same time, it strengthens the expansion of the international market and actively competes and exchanges with Securities Daily CATL Sunwoda
international counterparts. Based on the cooperation of production and sale, cooperation of technical R&D, it explores
diversified forms to bind strategic partners.
Continuously promoting the integration of industry and finance
The Company has the ability to use multiple equity and debt financing tools, with strong financing capacity, it can
effectively support the Company's technical progress, capacity expansion and rapid growth in business scale.
Implementing the strategy of cost leadership and technology leadership
Technological innovation is also the fundamental guarantee of the Company's competitiveness. The Company continues
to invest funds in technical R&D, continuously optimizes core products, actively researches and develops cutting-edge
products, and actively explores future technical directions.
Cost is the core capability of the Company's competitiveness. The Company continues to promote full cost control, Innovation Board Top 50 Nonferrous Metals Industry
with careful calculation and strict budgeting, allowing every penny to be spent effectively and play a greater role, and
EVE China Reform Holdings Corporation Ltd. China Nonferrous Metals Industry
eliminating cost waste.
China Securities Journal Association and the Nonferrous
Metals Society of China
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
ESG management High
In 2023, the judgment matrix of material issues of Changyuan Lico is as follows:
ESG governance architecture 16
Changyuan Lico establishes an ESG management system with structural integrity, clear hierarchy, clear rights and responsibilities,
and efficient operation. It clarifies the job responsibilities of personnel in each position and provides organizational guarantee for the 17 26
Company's ESG work.
Significance to stakeholders
Board Strategy Committee of ESG working 7
of Directors the Board of Directors group 9 11
Decision-making level Management Execution body
Identify and evaluate ESG risks in Implement various resolutions and Regularly collect, report and review
the Company, formulate ESG related policies of the Board of Directors ESG information to improve statistical
policies, systems and objectives, on ESG work , examine the ESG control efficiency of ESG related
review and make decisions on ESG risks in the Company, execute and information and ESG work efficiency,
related matters in the Company, promote specific ESG matters, and and ensure the efficient development
and supervise and evaluate the regularly communicate and report and implementation of ESG work.
practice of ESG related matters in the the progress on ESG related matters
Low Importance on Changyuan Lico High
Company. to the Board of Directors.
Environment Society Governance
Analysis of material issues
management policy rights and interests 20. Protection of shareholders'
In order to better respond to the expectations and demands of stakeholders, Changyuan Lico regularly conducts the analysis of ESG 3. Waste treatment 11. Employee training 21. Protection of investors’ rights
material issues. Through various ways, identify, evaluate, sort and confirm ESG issues, accurately understand the concern extent of 4. Resource usage 12. Product liability and interests
stakeholders on related issues, and their expectations for the ESG management of Changyuan Lico. In 2023, the process of material issues and recovery 13. Chemical substance 22. Risk management
of the Company is as follows: 5. Ecological environmental management 23. Compliance management
protection 14. Client rights and interests 24. Leadership of party building
Issue Issue Importance Management confirmation climate change technological innovation government
identification evaluation sorting and audit 7. Green products 16. Intellectual property protection 26. Economic performance
Identify major trends related to Through interviews, meetings, Carry out overall analysis of Submit the sorting and matrix
the Company through industry communications, regular visits the research results, combined of material issues generated
re s e a rc h , c o m b i n e d w i t h and other forms, understand with national policies, key to the ESG management of
national policies, key points the importance evaluation points of capital market, etc., the Company for review and
of capital market, industry comments of internal and to determine the internal and confirmation.
development, etc., to identify external stakeholders on the external sorting of material We will strengthen the disclosure of importance issues in the report according to the evaluation results on importance. In the daily
important issues. Company's ESG issues. issues, and ultimately generate business activities, we also take the evaluation results of ESG issues as a guide for future work, constantly improve it to respond to the
an importance matrix of expectations of stakeholders, enhance trust and cooperation, and jointly promote the sustainable development of the Company and the
stakeholders. society.
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Stakeholder communication ESG honors
Changyuan Lico actively fulfills its social responsibility, attaches great importance to the expectations and demands of stakeholders,
carries out in-depth exchanges with the help of different channels, fully understands the opinions and suggestions of stakeholders such
as government and regulatory agencies, shareholders and investors, clients, suppliers and partners, employees, environment, community
and the public, and improves the ESG performance of Changyuan Lico in a targeted manner, to continuously adjust the sustainable
development strategies and actions of the enterprise.
Granted the "ESG Golden Bull Top 50 Central
Enterprises" of the First CRHC Cup hosted
Stakeholders Expectations of stakeholders Communication and response
by China Reform Holdings Corporation Ltd. and
China Securities Journal
Improvement of compliance system construction
Government Compliance operation
Strengthening education and training on combat
and supervisory Integrity construction
corruption and uphold integrity
body Intellectual property protection
Intellectual property protection system
Improvement of corporate governance
Improve the level of operation and management
Protection of shareholders' rights and
Investor research and communication
Shareholders interests
Issuing regular reports, temporary announcements
and investors Investor relations management
and performance briefings
Information disclosure
Comprehensive risk control
Risk management
R&D management system
Scientific and technological innovation
Client satisfaction survey and complaint channel Granted the "ESG Golden Bull Top 100"
Customer Customer's rights and interests
Strict governance and management of the First CRHC Cup hosted by China
Product quality and safety
Maintaining information security Reform Holdings Corporation Ltd. and
China Securities Journal
Supply chain management Improvement of purchasing system
Suppliers and
Fair competition Faithful performance of contracts
partners
Integrity and reciprocity Sign the cooperation agreement.
Establishment of fair promotion channel
Basic protection of rights and interests
Professional training and career development
Personal development
Employees Employee satisfaction survey
Employee welfare
Guarantee work safety
Employee caring
Daily communication
Green and low-carbon development Green transformation development
Environment
Protect the ecological environment Green technological innovation "ESG Pioneer Practitioner" Awards issued
by Securities Daily
Pairing co-building
Community and Participation in rural revitalization
Poverty alleviation in consumption
the public Supporting educational business
Donation for education
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Environment
Low carbon and
environmental protection,
harmonious coexistence
Changyuan Lico deeply implements Xi Jinping's Thought on ecological
civilization, fully implements the major decisions and arrangements of the
Party Central Committee and the State Council on the ecological civilization
construction, adheres to the main responsibility of the enterprise,
establishes and improves the responsibility system for energy conservation
and ecological environmental protection, adheres to green and high-quality
development, actively practices the concept of green and low-carbon
circular development, continuously enhances its strength in the efficient use
of energy and resources as well as its strength in low-carbon development,
and solidly carries out energy conservation and emission reduction to
contribute to responding global climate challenge and realizing the "carbon
peaking and carbon neutrality" goals.
SDGs
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Improvement of Environmental objectives and implementation in 2023
environmental management As of the end of the reporting period, the Company and its subsidiaries have not experienced any general and above environmental
pollution incidents, have not been punished by the competent departments of ecological environment, have not engaged in any
major environmental violations, and have 100% implemented the annual environmental protection objectives.
The Company adheres to the concept of lucid waters and lush mountains are invaluable assets, and firmly follow the road of green and
low-carbon sustainable development. The Company continuously improves its environmental management system, strengthens energy
Environmental objectives and implementation in 2023
conservation and environmental protection, and strives to build the Company into a model enterprise for efficient utilization of resource
and harmonious coexistence of environment.
Violation of laws and regulations on environmental protection : 0
To ensure the comprehensive promotion of energy conservation and environmental protection, the Company continuously improves
the responsibility system for energy conservation and environmental protection, follows the principle of "unified leadership, hierarchical
Administrative penalty of environmental protection related: 0
management and clear responsibilities", and ensures that the main responsibility for energy conservation and environmental protection of
the Company is fully implemented. To this end, the Company establishes a work safety, energy conservation and environmental protection
Up-to-standard waste gas emission 100% 100%
committee as the leading core of environmental management, and the safety and environmental protection department takes on the daily
management. By formulating a detailed responsibility list, we have ensured collaboration, coordination and joint management with various completed
Up-to-standard waste water emission 100%
subordinate units in energy conservation and environmental protection, forming a comprehensive and efficient energy conservation and
environmental protection management system. Up-to-standard noise emission 100%
Safe disposal of hazardous waste 100%
Relevant systems of environmental protection of Changyuan Lico
•Management Measures for Responsibility System for Energy Conservation and Ecological Environmental Protection
•Measures for the Management of Comprehensive Emergency Plan for Sudden Environmental Incidents
•Management Measures for Energy
•Management Practices of Energy Conservation
•Management Measures of Solid Waste
Certification of environmental management system
Changyuan Lico is committed to continuously optimizing its environmental
Emergency plan for sudden environmental incidents As of the end of 2023,
management system and achieving sustainable development goals of environmentally
friendly, low-carbon and efficient. Based on the ISO14001:2015 environmental the Company and 2 subsidiaries
In order to fur ther strengthen the ecological have all passed ISO14001:
management system and related standards, the Company comprehensively identifies
environmental protection of the Company, enhance its 2015 environmental management
internal environmental factors and formulates targeted environmental protection
coping capacity to sudden environmental incidents, The Company organized
control measures and management systems. As of the end of 2023, the Company and system certification.
and enhance its strength to prevent and handle
emergency exercises for waste water 2 subsidiaries have all passed ISO14001:2015 environmental management system
environmental pollution incidents, the Company
certification.
formulates the Emergency Plan for Environmental leakage, solution leakage and hazardous
Emergencies and completes the filing in the competent waste leakage throughout the year.
department of ecological environment. This plan
aims to minimize environmental pollution, ensure the
environmental safety of the Company and the life
and health of employees and surrounding residents,
and provide the Company with a comprehensive
and efficient environmental risk management and
emergency response mechanism.
The Company organized 9 emergency exercises for
waste water leakage, solution leakage and hazardous
waste leakage throughout the year. In November, it
collaborated with the Ecological Environment Bureau of
Hunan Xiangjiang New Area to organize an "emergency
exercise for electrical short circuit induced hazardous
waste fire - fire waste water leakage emergency
environmental incident". Through the exercise, the
emergency response ability of employees was improved.
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Reduction of resource consumption Energy usage management
Changyuan Lico mainly uses electric energy, natural gas and steam as the energy supply during the production. In order to actively
Usage management of water resource
respond to the global call for energy conservation and emission reduction and promote the sustainable development of the Company,
the Company attaches great importance to energy management. Ensure the compliance and efficiency in energy usage by formulating
the Energy Management Measures and Management Practices of Energy Conservation. Changyuan Lico will continue to be committed
In terms of water resource management, Changyuan Lico actively adopts water-saving measures to reduce water resource consumption to optimizing energy structure, improving energy utilization efficiency, and making unremitting efforts to achieve green and low-carbon
from the source, encourages all employees to participate in water resource management, enhances their awareness of water resource production operation.
protection, and jointly promotes the continuous improvement of water resource management, striving to build a water resource-saving
enterprise. Its subsidiary, Jinchi Energy is awarded a water-saving benchmark enterprise by the Industry and Information Technology
Department of Hunan Province.
Total energy consumption Outsourced steam converted standard coal quantity
In 2023 5.59 8.32 7.91 1.03 1.09 0.78
the new water the recovered
consumption was condensate water was
Jinchi Energy Materials Co., Ltd. of standard coal 2021 2022 2023 of standard coal 2021 2022 2023
Water Saving Enterprise of
the circulating water the water resource
Hunan Province
consumption was recycling rate was
Electricity converted standard coal quantity
Total water consumption Fresh water consumption 10,000 tons 10,000 tons
of standard coal 2021 2022 2023 of standard coal 2021 2022 2023
Remarks：
and pressure is 2,768 kJ/kg, heat - 0.0341 tons of standard coal/GJ, namely, steam - 0.0944 tons of standard coal/tons of steam;
natural gas - 13.3 tons of standard coal/10,000 m?, gasoline - 1.4714 tons of standard coal/tons.
Total circulating water Proportion of total circulating water
Participation in green electricity transaction
With environmental issues becoming more and more obvious, people's demand for clean energy is increasing every day. As a
new energy transaction mode, green electricity transaction has gradually attracted people's attention due to its environmentally
friendly and renewable characteristics. The Company actively promotes the clean and low-carbon transformation of its
energy structure, actively participates in green electricity transaction, and its subsidiary, Jinchi Energy signs contracts with the
electricity power company, which stipulates that the proportion of green electricity for the whole year shall not be less than
while promoting the development and utilization of new energy and reducing reliance on traditional energy.
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Cleaner production
Ammonia Sulfuric acid mist
The Company actively promotes the cleaner production and promotes the
During the reporting period,
development of recycling economy. According to the Management Measures for
Energy Conservation and Ecological Environmental Protection of the Company, 0.72 0.73 0.69 0.40 0.59 0.06
of Changyuan Lico have
priority is given to the use of clean energy, and processes and equipment with high
passed the certification
resource utilization and low pollutant emissions are adopted. Comprehensive waste
audit of cleaner
utilization technology and harmless pollutant treatment technology are promoted
production
to reduce the generation of pollutants and effectively strengthen the management
of the Company's cleaner production.
Ton 2021 2022 2023 % 2021 2022 2023
Case of clean technology
The Company continues to promote green manufacturing and circular development. In the field of waste battery recycling, the
Company continuously promotes technological innovation and completes the production application of priority lithium extraction
and extraction lithium new technology demonstration production lines. Increase the lithium recovery rate by more than 10%, to Wastewater discharge management
achieve higher lithium recovery rate and lower carbon emission.
Changyuan Lico actively promotes advanced waste water treatment, strictly abides by the Law of the People's Republic of China on
The subsidiary, Jinchi Energy upgrades the waste water MVR mother liquor evaporation system and conducts grading and
the Prevention and Control of Water Pollution , and formulates the Waste Water Management Measures based on the actual situation
separating treatment of purified water and concentrated water. The condensate water is treated by reverse osmosis and then made
of the Company to ensure that all waste water is effectively treated. In addition, the Company establishes an improved waste water
into purified water for reuse in production. Part of the purified water and concentrated water is used for leaching replenishment in
management ledger to monitor the operation of waste water facilities in real time. The Company's production waste water is treated
the waste battery recovery workshop, while the other part is used for water replenishment in the circulating water cooling tower of
and reused without discharge.
the oxygen production station and cathode workshop. By implementing advanced treatment and comprehensive utilization of waste
water, we can achieve emission reduction at the source of waste water while reducing water resource consumption.
Industrial waste water emission
In 2023
Prevention and
the industrial waste water
treatment capacity was
control of pollution emissions 10,000 t
Waste gas emission management
COD the purified water
Changyuan Lico strictly abides by the national and local laws and regulations on the prevention and control of waste gas pollution,
and concentrated water
implements the main responsibility of ecological environmental protection, continuously optimizes production processes, reduces waste gas 4.79 1.61 0
for cascade utilization was
output, and ensures that waste gas emissions meet standards by introducing advanced waste gas treatment technology and equipment. The
Company establishes a strict monitoring mechanism for waste gas emissions, regularly monitors and evaluates the waste gas emissions to
ensure the accuracy and reliability of waste gas emission data. Changyuan Lico will continue to strengthen waste gas emission management,
continuously improve the level of waste gas control, to achieve the goals of green, low-carbon and circular development. In addition, in 2023,
the subsidiary, Jinchi Energy implemented ammonia absorption tower water scrubbing to acid pickling, and Changyuan Lico New Energy Equivalent value/
total emission of 2021 2022 2023
upgraded and renovated dust control facilities to further reduce the impact on the atmospheric environment. the recovered
pollutant (ton)
condensate water was
During the reporting period, all types of waste gas treatment facilities were operating well, with complete operating records and up-to-
standard waste gas emission.
Ammonia nitrogen
Total exhaust pollutant emissions Particulates
the waste water
emission was
Equivalent value/
total emission of
pollutant (ton)
Ton 2021 2022 2023 Ton 2021 2022 2023
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Solid waste management
Changyuan Lico aims to achieve the reduction, resource and harmless for solid waste by taking relevant measures to reduce the output
Climate risk response
of solid waste, promote the comprehensive utilization of solid waste, and reduce the hazard of solid waste. The Company follows the
Based on Xi Jinping's Thought on Ecological Civilization, Changyuan Lico adheres to the green development direction and strives to
relevant provisions of the Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste
become a "resource-saving and environmental-friendly" enterprise. The Company continues to pay attention to global climate change and
and formulates the Management Measures of Solid Waste. Through technological upgrading and process optimization, the output of solid
actively evaluates the risks and opportunities brought by climate change, as well as its impact on enterprises.
waste is significantly reduced. Meanwhile, the Company establishes an improved solid waste classification, storage and transportation
system to ensure that waste is treated in a standardized manner.
All subsidiaries establish temporary storage warehouses for household waste, general industrial solid waste and hazardous waste. The Risk
temporary storage warehouses for general industrial solid waste and hazardous waste shall be standardized constructed in accordance
with the requirements of the Standard for Pollution on the Storage and Disposal Site for General Industrial Solid Wastes (GB18599-2001)
Extreme weather Policies and law risks Raw material supply Energy consumption
and the Standard for Pollution Control on Hazardous Waste Storage (GB18597-2001), respectively. For household waste, it is collected at
designated locations and entrusted to environmental sanitation for timely removal; for general industrial solid waste, it is classified and
Potent i al impacts on supply The adjustment of climate The key raw materials for The energy demands
collected, temporary stored appropriately, and handed over to professional processing units for recovery processing; for hazardous waste,
chains and production policies may affect the lithium batteries may be during processing and
it is classified and collected, stored in different zones, with hazardous waste signages posted. A registration ledger for entry and exit is
facilities, causing asset loss, production and operation of affected by the resource production may increase
established. Units with corresponding hazardous waste disposal qualifications are entrusted for harmless disposal, and transfer forms are
and even causing potent i al enterprises. shortages or price with the climate change,
handled. In 2023, 383 tons of hazardous waste and 336 tons of general solid waste were safely disposed.
employee safety incidents; fluctuations caused by leading to rising costs.
climate change.
Waste classification and treatment measures
Promote sustainable Strengthen climate risk Diverseness Energy efficiency
Waste type Types of wastes Annual disposal capacity (ton) Disposal method development assessment in supply chain improvement
Take energy conservation and Pay close attention to the changes Ensure the stability of Optimize production
Waste residue containing nickel 29.52 Outsourced disposal
emission reduction measures, in regulations and policies related raw material supply and process, reduce energy
improve resource utilization to carbon peaking and carbon search for substitute consumption and improve
Damaged waste packaging bag and
undamaged inner bag
Hazardous wastes and continuously improve vulnerability to climate change,
emergency response mechanism and formulate corresponding risk
Waste mineral oil 3.0 Outsourced disposal
for natural disasters. management strategies.
Laboratory hazardous waste 2.95 Outsourced disposal
Packaging materials for raw and auxiliary Selling out for
General solid waste 336
materials comprehensive use
Opportunity
The Company optimizes the cleaning equipment of waste Resource utilization
of waste saggar is Growth in demand for Technological Development of electric
General industrial solid Brand image promotion
saggar and adopts automatic sandblasting machines to clean energy innovation drive transportation
waste management
promote the resource utilization of waste saggar. tons
With the increasing demand Climate related Actively responding to climate The popularization of
throughout the year
for clean energy, the technological innovation change can enhance the electric vehicles will
markets for lithium battery may bring new social image of enterprises. promote the demand for
Noise prevention and control enterprises in fields such as
batteries may expand.
development opportunities
for enterprises.
high-performance lithium
battery.
The Company strictly abides by the Law of the People's Republic of Technological research Expansion of
China on Prevention and Control of Pollution from Environmental R&D innovation Active disclosure
investment production scale
Noise , and strictly controls the generation and transmission of
Strengthen the R&D of Invest in R&D strength Regularly release ESG reports Improve production
noise by adopting various noise reduction measures. Meanwhile,
high-performance and to develop more of the Company, disclose the efficiency and ensure
the Company regularly carries out noise monitoring to understand
low-cost lithium battery environmentally friendly completion of the Company's synchronous supply of
the current noise status and actively carries out noise reduction
technology to meet market and efficient products energy conservation and lithium battery with the
and improvement to continuously improve the control efficiency of
demands. and technologies. emission reduction goals, and growth of the electric
noise. In 2023, the subsidiary, Changyuan Lico New Energy High-
enhance the green image of vehicle market.
tech Base further reduced the noise at boundary by adding noise
the Company.
reduction compartments to the noise generating equipment of
the oxygen production station and adding acoustic panels to the
air compressor room to separate the noise.
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Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Responding to the "carbon peaking and carbon neutrality" strategy Case Emission reduction measures and actions for greenhouse gas
Changyuan Lico actively responds to the national carbon peaking and carbon neutrality strategy, The total greenhouse gas In 2023, the subsidiary, Changyuan Lico New Energy promoted technical improvement projects such as kiln single-layer to double-
striving to reduce its own carbon emissions and promote green and sustainable development. emission of the Company layer and sealing renovation, increasing bowl loading capacity, dilute alkali to concentrated alkali of precursor for Jinchi Energy
The Company strives to reduce carbon emissions during the production by optimizing energy in 2023 was and MVR condensate water to purified water and concentrated water reuse; through special research on refrigeration and energy
structure, improving energy utilization efficiency and developing green manufacturing technologies. consumption in High-tech Base of Changyuan Lico New Energy, organized relevant units to analyze and guided them to establish
At the same time, in order to further optimize and improve the energy conservation and emission macro thinking. While focusing on production energy consumption and reducing non-production energy consumption, take the
reduction statistical system of the Company, and improve the control level of energy conservation online energy monitoring as an opportunity to analyze the energy consumption of major energy consuming equipment such as kilns,
by 10,000 tons
and emission reduction, the Company establishes a monthly report system for production energy air compressors, oxygen production, refrigeration and dehumidification, as well as the energy consumption ratio during "peak valley"
consumption and carbon emission. Changyuan Lico continues to increase green investment and period, optimize energy management measures and reduce low efficient energy consumption.
efforts, contributing its own efforts to achieve carbon peaking and carbon neutrality goals, and
Changyuan Lico New Energy transforms some cathode material sintering kilns from single-layer structure to double-layer structure,
promoting the development of global green, low-carbon and recycling economy.
reducing energy consumption of unit product and increasing energy utilization rate by about 30%, achieving energy conservation and
benefit creation.
Total greenhouse 22.98 35.46 33.08 Greenhouse gas 0.20 1.28 1.71
Jinchi Energy adjusts the precursor production line synthesis process from dilute alkali
gas emission emissions (category I)
to concentrated alkali, reducing the dilute alkali preparation process and waste water
(category I + category II)
output, so as to reduce energy consumption and cost of waste water treatment.
The Company actively responds to the national call and closely focuses on the theme
propaganda week. Based on the actual situation of the Company, various publicity
and education activities are carried out, such as posting theme posters, playing
Natural gas 13.88 0.03 66.75 0.14 295.79 0.64 Gasoline 1.38 4.2 0.86 2.62 0.71 2.16 promotional videos with electronic displays and cafeteria televisions, to promote the
concept of energy conservation, low-carbon and related knowledge, advocate green,
low-carbon production and lifestyle, enhance the low-carbon and environmental
protection awareness of all employees, and create a proactive and total involved
atmosphere for energy conservation and carbon reduction.
Energy conservation and carbon reduction monitoring, statistical reporting and evaluation system
In order to further optimize and improve the energy conservation and emission reduction statistical system of the Company, improve
the control level of energy conservation and emission reduction, in accordance with relevant laws and regulations such as the Law
Carbonate 0.29 0.17 1.92 1.13 1.82 1.07 Greenhouse gas 22.77 34.19 31.36 of the People's Republic of China on Energy Conservation , the Supervision and Management Measures for Energy Conservation
emissions (category II) and Ecological Environment Protection of Central Enterprises , as well as the relevant work management requirements of the
group company, the Company formulates the Management Measures for Statistical Report of Energy Conservation and Ecological
Environmental Protection , which clarifies the responsibilities and work requirements for energy conservation and carbon reduction
monitoring, measurement, statistics and reporting of each unit, and establishes a monthly report system for production energy
consumption and carbon emission.
completed and accepted by government regulatory departments, to achieve the Company's level I and level II energy consumption data
automatically uploaded to the provincial development and reform commission platform, the MES energy management construction
Outsourced 3.70 19.45 5.83 30.65 5.49 28.84 Outsourced 30.26 3.33 32.25 3.55 22.92 2.52
was simultaneously promoted, the information input of energy measuring instruments was completed, as well as the level I, level II
electricity heat (steam)
and level III electricity and gas data was automatically
collected, water electricity and gas data was dynamically
displayed, and energy consumption and peak valley
data statistics were conducted to provide effective
support for the rational use of energy by various
departments of the Company. Develop the whole plant
board, early warning and alarm functions, and improve
the automatic collection Function of energy data to
Remarks: 1. Natural gas is mainly used in the stationary combustion devices such as boilers, canteen gas stoves, and workshop drying equipment; achieve the track management of energy system, and
Message from the About ESG Future
长远锂科 2023
Changyuan Lico年环境、社会及治理报告
环境篇 Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Governance
Efficient governance
with stable footsteps
and forward thinking
Changyuan Lico strives to establish a sound management system,
optimize governance structure and business strategies, adhere to
business ethics, improve internal control and risk management,
enhance compliance capabilities and anti-corruption education,
safeguard the rights and interests of shareholders and investors,
ensure the Company's long-term and stable development, and
regard this as an important starting point for actively assuming
environmental and social responsibility.
SDGs
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Adhere to the guidance Optimize governance architecture
of Party building In strict accordance with the requirements of the Company Law, Securities Law, Code of Corporate Governance for Listed Companies,
Rules Governing the Listing of Stocks on the STAR Market of the Shanghai Stock Exchange and other laws and regulations, Changyuan
Lico has established a regulatory system based on the Articles of Association of Hunan Changyuan Lico Co., Ltd. with the Rules of
Under the correct leadership of the China Minmetals Party Group, the Changyuan Lico Party committee has always adhered to the guidance
Procedure for Shareholders' Meeting of Hunan Changyuan Lico Co., Ltd., Rules of Procedure for Meeting of the Board of Directors of
of Xi Jinping's Thought on Socialism with Chinese Characteristics for a New Era, continuously strengthened party building and ideological
Hunan Changyuan Lico Co., Ltd., Rules of Procedure for Meeting of the Board of Supervisors of Hunan Changyuan Lico Co., Ltd., and
and political work, and promoted the deep integration of party building and enterprise development. By organizing diverse party building
Measures for Management of Independent Directors of Hunan Changyuan Lico Co., Ltd. as the main structure; and the Company has
activities, we aim to improve the political quality and ideological consciousness of party members, and stimulate their exemplary role as
formed the Shareholders' Meeting, the Board of Directors, and the Board of Supervisors as the institutions for power, decision-making and
pioneers. The Company continuously strengthens grassroots guidance, strictly and practically regulates the construction of the "three basics",
supervision. The Company pays attention to the clear division of responsibilities of the organizational structure, mutual cooperation and
implements the responsibility of grassroots party building work, revises and builds six new party building work systems, further improves
effective operation of the check and balance mechanism.
and perfects the party building work system, and regularly supervises the implementation of the "three meetings and one lesson" and theme
party days of the party branch; inviting teachers from the Provincial Party School to provide special guidance, organizing members of the The Company fully considers the gender, professional experience, background and other factors of the members of the Board of Directors
Party committee team to go deep into grassroots Party organizations and contact points to promote the spirit of the 20th National Congress to ensure that the Board of Directors is fair and diversified, and the decision-making is scientific and comprehensive, so as to respond
of the Communist Party of China; organize a training demonstration class for the improvement of the quality of the Company's party branch to challenges more efficiently and promote the sustainable development of the Company. Presently, the Company's Board of Directors
secretaries and grassroots party affairs personnel in 2023, using platforms such as "three meetings and one lesson", special lectures, and consists of 9 members, including 3 independent directors. The Board of Supervisors consists of 5 members, including 2 employee
smart party building APP learning to ensure that the education hours for party members meet the standards. representative supervisors, and the proportion of female in the Board of Supervisors is 40%.
Besides, the Company highly emphasizes the strategic leading role of the Board of Directors. The Board of Directors of the Company has
Political construction set up four special committees, namely the Audit Committee, the Nomination Committee, the Strategy Committee and the Remuneration
and Assessment Committee, and has formulated the terms of reference and implementation rules of each committee in detail, which
gives full play to its professional advantages and effectively ensures the legitimacy, scientificity and correctness of the collective decision-
Political construction is the soul and foundation of a company, and the fundamental guarantee for promoting its In 2023,
making of the Board of directors, thus significantly reducing the operational risks of the Company. These special committees not only
healthy, stable, and sustainable development. Therefore, the Company's party committee continuously strengthens the Company held
enhance the transparency and efficiency of corporate governance, but also provide a solid guarantee for the Company's long-term sound
political theory learning, improves political sensitivity and political execution ability, and ensures that the Company
development.
always moves forward in the correct political direction. In order to further strengthen party building, improve the
ideological consciousness and political quality of party members, the Company actively carries out various party party committees
building activities. In 2023, the Company held 24 party committees, and the party committee's theoretical learning
center group conducted 10 activities including concentrated discussions, expert guidance, and reading classes.
Regulatory system of governance of Changyuan Lico
Articles of Association of Hunan Changyuan Lico Co., Ltd.
Organization construction In 2023, Rules of Procedure for Shareholders' Meeting of Hunan Changyuan Lico Co., Ltd.
the Company organized Rules of Procedure for Meeting of the Board of Directors of Hunan Changyuan Lico Co., Ltd.
In 2023, the Company organized 12 meetings of the Party building work leadership group,
Rules of Procedure for Meeting of the Board of Supervisors of Hunan Changyuan Lico Co., Ltd.
and standardized the development of 11 new Party members; normalized the implementation meetings of the Party
of the reminder mechanism for the adjustment of party organization changes, guided 2 Measures for Management of Independent Directors of Hunan Changyuan Lico Co., Ltd.
directly affiliated party branches to complete the election of changes, established 1 new building work leadership group,
party general branch, and established 2 party branches under it; promptly supervised the and standardized the development
transfer of relationships and Party statistical work, established a Party expense management
ledger, and strictly regulated the use and management of Party organization work funds.
of
Changyuan Lico conducts special study and guidance on the spirit of the 20th National Congress of
Case
the Communist Party of China
In order to deepen the study, publicity, and implementation of the spirit of
the 20th National Congress of the Communist Party of China, and further Shareholders' meeting Board of Directors Board of Supervisors Management
strengthen the ideological foundation for holding democratic life meetings for
party members and leading cadres and Party (general) branch organizational It is the highest authority It implements the It supervises the It implements the
life meetings, in February 2023, the Changyuan Lico Party committee invited that decides on the resolutions of the Company's finances resolutions of the
Professor Yang Zhenwen from the Hunan Provincial Party School to provide Company's business policy Shareholders' Meeting and the compliance of Board of Directors and
special study and guidance on the spirit of the 20th National Congress of the and investment plan. in accordance with the directors and senior organizes the Company's
Communist Party of China. Hu Liuquan, Secretary of the Party committee and Articles of Association executives in performing business activities such
Supervise the business of
Chairman, attended the meeting and delivered a speech. Zhang Zhen, general and Rules of Procedure their duties. as production and
the Company, and raise
manager and deputy secretary of the Party committee, as well as members of for Meeting of the Board operation.
proposal or inquiry.
the leadership team at home, attended the meeting. of Directors .
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
In 2023, the Company held 1 meeting of the Strategy Committee of the Board of Directors and 5 meetings of the Audit Committee of
the Board of Directors. The Special Committees of the Board of Directors performed their duties conscientiously in accordance with
the relevant provisions of the Code of Corporate Governance for Listed Companies, the Articles of Association and the Measures for
Strengthen risk management
the Management of the Special Committees, further standardized the governance structure of the Company, actively researched and
discussed professional items, and put forward relevant opinions and recommendations for the Board of Directors' decision-making Changyuan Lico constantly improves its risk management system; continuously improves the organizational structure of risk management;
reference and assisted the Board of Directors in its work. implements the closed-loop management mechanism of comprehensive assessment and timely warning beforehand, dynamic monitoring
and key monitoring during the process, and timely reporting and hierarchical response after the process; makes efforts to promote the
construction of information systems such as Treasury, BI, MES, WMS, etc.; and continuously promotes the internal control system to
gradually change from "human control" to "technological control", so as to enhance the platform's ability of preventing risks.
Based on the system of Measures for Management of the Audit Committee of the Board of Directors of In 2023, the Company continued to operate the five-in-one supervision system. The risk control, audit, and discipline inspection
Audit
Hunan Changyuan Lico Co., Ltd., it is responsible for the communication, supervision and verification of departments collaborated to carry out whole-process risk identification and assessment, internal control self-evaluation and job integrity
Committee
the Company's internal and external audits. In 2023, the Audit Committee was held 5 times. risk identification from the internal control standards, covering 23 functional boards, 31 business processes and 786 control nodes, and
revealing the key risks and weaknesses of the Company through a "comprehensive physical examination and scoring" to provide guidance
on the rational inclination of management resources.
The Company has always adhered to the risk strategy of advance steadily, adhering to the safety bottom line of the new development
Based on the system of Work Rules of the Nomination Committee of the Board of Directors of Hunan
Nomination pattern, focusing on the management of major decisions, major risks, major events and the internal control of important processes, and
Changyuan Lico Co., Ltd., it is responsible for selecting and researching, reviewing and making
Committee implementing sort, layer and centralized management of risks. Focusing on 10 major risks, the Company has established a responsibility
recommendations on the candidates, selection criteria and procedures of the Company's directors and
ledger on major risk prevention and control, clarified the responsible units, prevention and control objectives and responses, implemented
managers.
the risk management responsibilities of all employees, and supervised the implementation of monthly investigation, quarterly tracking, and
annual review, so as to realize strict defense of key risks.
Based on the system of the Work Rules for the Strategy Committee of the Board of Directors of Hunan During the reporting period, the Company does not incur any major losses, no general or above safety accidents, no external litigations or
Changyuan Lico Co., Ltd., it conducts research and makes recommendations on the Company's long- penalties from regulatory authority and risk control was effective.
Strategy
Committee term development strategies and major investment decisions, and promotes the construction of the rule
of law. In 2023, the Company held 1 meeting of the Strategy Committee.
Risk trend Number of risks Risk description
Upward trend 1 Credit risk, raw material and product price risk
Based on the system of Work Rules for the Remuneration and Assessment Committee of the Board of
Remuneration
Directors of Hunan Changyuan Lico Co., Ltd., it studies the evaluation standards, remuneration policies
and Assessment
and programs for directors and senior executives, and evaluates and makes recommendations to the
Committee Remaining stable and Health, safety and environmental protection risk, project investment risk,
directors and executives.
at the same level as the 8 intellectual property risk, capital risk, compliance operation risk, public opinion
previous period risk, etc.
Remuneration and training Downward trend 1 Risk of insufficient supply of human resources
The Company has established a Remuneration and Assessment Committee (including the Chairman and two non-executive directors),
whose main responsibilities include recommending the remuneration policy and its formulation process to the Board of Directors . The
Committee also considers and decides on the salary and incentive programs for senior executives, taking into account a variety of factors
related to remuneration, such as industry salary levels, position responsibilities, length of tenure, company performance and potent i al The Company further optimizes the working mechanism of risk management reporting, highlights the requirements of closed-loop
risks. Besides, the Board of Directors of the Company attaches importance to improving the professional competence of the directors, management, improves the emergency reporting of major risk items, and ensures that the all-employee, whole-process, and all-system
supervisors and senior management by arranging them to participate in professional training on a regular basis, including specific risk prevention and control system functions effectively.
training provided by the SSE as well as diversified training programs provided by other relevant organizations, so as to enhance their
understanding and execution of corporate governance and ESG management through various training methods. In 2023, the training
coverage rate of serving directors, supervisors and senior management personnel had reached 100%.
Number of meetings of Number of meetings of the Number of shareholders'
Board of Supervisors held Board of Directors held meetings held
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Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Compliance culture construction
Adhere to Relying on training and publicity, strengthened protection has enhanced the soft power of compliance
management. The Company studied Xi Jinping Thought on the Rule of Law 14 times throughout
compliance operation the year, and has mastered the thought; it has achieved the Party's leadership throughout the whole
process of law construction and operation and management. The Company organizes 12 compliance
training sessions on national security and confident i ality, labor relations, tendering and bidding law,
All units carry out
data protection, financial management, contract management, intellectual property, work safety, and training activities in the year,
supply chain for workshop managers, business personnel, and project personnel, covering a total
Institutional construction of of 488 people/times. The Company integrates compliance requirements into business and projects, person-times
compliant operation and penetrates into front-line production and operation units. Meanwhile, the content related to
compliance training is embedded in the existing training scheme of the Company. All units carry
involved
out 45 internal compliance training activities in the year, 855 person-times involved, based on the
Changyuan Lico has formulated the Compliance Management Measures and issued the Guidelines for Intellectual concept "standardization and full coverage". The Company carries out compliance publicity actively.
Property Compliance, Guidelines for Personal Information Protection Compliance, Guidelines for Economic Sanctions The staff is trained with compliance culture by the mode of display board, LED screen, "Lico Ideal
and Export Controls Compliance, Guidelines for Anti-Commercial Bribery Compliance, Guidelines for Business School", knowledge competition, singing of letter of commitment, etc., to strengthen the integrity and
Partners Compliance, Guidelines for Anti-Monopoly Compliance, Guidelines for Corporate Governance Compliance, compliance awareness of the staff, establish the value of compliance and integrity, and secure the
Guidelines for Guarantee and Surety Practice Compliance, Guidelines for Contract Compliance Review Key, ideological basis of compliant operations.
Guidelines for Overdue Accounts Receivable Management, and Guidelines for Selection of International Arbitration
Institution and other specialized compliance guidelines.
In 2023, the Company further improved the compliance programmatic system Compliance Management Measures , Compliance review
added (revised) 42 systems, and improved the organizational structure, operation mechanism and others. The
Company has sorted out rules and regulations internally, closely followed the legislative developments externally, The Company takes the compliance review as the important carrier for compliance management, and strengthens the control force
internalized laws and regulations or regulatory requirements in a timely manner, and added (revised) 146 systems of compliance review comprehensively. The Company keeps the 100% legal review rate on rules and regulations, economic contract,
throughout the year. The Company is committed to making the system penetrate the hierarchy and embedding it authorization and entrustment, and important decision in the year. The compliance review is carried out on 1,172 contracts, 125 letters of
into the business processes of the front-line production and operation units, so as to realize the deep integration of authorization, 146 systems and 186 important decisions. More than 3,000 legal compliance opinions are put forward, with the adoption
compliance and business from the system level. rate up to 98%. The Company is committed to building a complete chain of compliance risk prevention mechanism, it embedded the
compliance review nodes in the official document system and decision-making process, and runs through the legal compliance review into
the importance decisions. The compliance personnel deeply participate large investment projects, to review the preliminary consultation,
Construction of arrangement and interim document, and to routinely attend the business negot i ation, project meeting, technical meeting, etc. Under
compliance management system the background of strengthening supervision and focusing on compliance, the Company resolutely implements the decision-making
mechanism of "supervise the legal compliance before decision-making, and do not make decisions in case of violation of the law".
The Company's compliance management is based on the concept of "respecting laws, abiding by rules and creating
value". By linking top-down, connecting left-right, establishing and improving compliance organization, formulating
Times of law-abiding and compliance training Hours of law-abiding and compliance Training
and perfecting compliance system, preventing and controlling compliance risks, cultivating and strengthening
compliance culture, the Company has built an effective compliance management system covering all aspects, levels
and fields of the Company, and gradually integrated compliance development into the Company's strategy, compliance
requirements into the business process, and compliance culture into the corporate values; the Company has kept
the bottom line of no major compliance risks, shaped compliance soft power and compliance competitiveness, and
escorted and created value for the construction of a global leader in the new energy materials industry.
The Party Committee of the Company has played a leading role in controlling the direction, managing the overall
- 2021 2022 2023 Hour 2021 2022 2023
situation and guaranteeing implementation, strengthened the top-level design, fully implemented the work program
for the in-depth implementation of compliance management, promoted the strict implementation of compliance
requirements, and continuously improved the level of operation and management in accordance with the law and
compliance; the Board of Directors has played the roles of determining strategies, making decisions and preventing Number of person-times receiving training on law-abiding and compliance
risks, and fulfilled its duties of considering and approving the basic system of compliance management, compliance
programs and other documents, studying and deciding on major events of compliance management, and listening 188 280 488
to reports on compliance management on a regular basis; the Board of Managers has played the roles of planning
operation, grasping implementation and strengthening management, and has been responsible for formulating the
compliance management system construction plan, the basic system of compliance management and approving the
annual plan, etc., formulating the specific system of compliance management, responding to major compliance risk
events, and guiding and supervising the compliance management work of various departments and subordinate units.
Person 2021 2022 2023
Message from the About ESG Future
Changyuan Lico 2023 Environment Governance Social Appendix
Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Conduct internal audit and management cadres and front-line employees, and resolutely have "zero tolerance" for corruption, and strictly forbidden to resist
any form of commercial bribery. The Company's Discipline Inspection Committee insists on performing responsibilities of supervision on
discipline enforcement and accountability; adheres to comprehensively strengthening party discipline; complies with disciplines, laws
In 2023, the Company had comprehensively implemented all works deployed by the group company, continuously deepened the internal and regulations; learns from past mistakes to avoid future ones, and cure the sickness and save the patient; accurately and effectively
audit works, actively performed the supervisory duty on internal audit, carried out positioning based on economic supervision first, conducts "four forms" of supervision on discipline enforcement; implement ideological and political work throughout the whole process of
focused on major responsibilities and tasks, played the unique role of audit in promoting the self-revolution of the Communist Party of supervision on discipline enforcement; focuses on educational transformation; prevents and corrects violations of discipline by cadres and
China, firmly followed and practiced "integrity, responsibility, sharing and coordination", fully promoted the establishment of "The cultural employees; work hard to a build a clean and upright atmosphere.
tourism industry has developed by raising standards and improving efficiency; agriculture and animal husbandry has developed in an In 2023, the Company made a thorough warning education; persistently developed the strengthening of Party self-discipline in depth and
incremental and qualitative manner; emerging industries have developed intensively; ecological industries have developed along with the breadth; made careful organization and deployment; actively enriched and expanded the forms of honesty education; solidly carried out
trend; traditional industries have developed to strive for innovation and excellence" and "innovative, efficient, digital, safe and branded more than 30 warning education activities with various forms and rich contents, such as
Minmetals", and contributed the internal audit power to establish the Company to the leader in the global new energy material industry the series of monthly warning education activities in 2023, the training of new employees During the reporting period, the coverage
by closely focusing on the overall development plan of the Company. and young cadres on honesty, and the special conference on combat corruption and rate of participants reached
uphold integrity; made great efforts to build the ideological defense line for all Party
%
High-level leading member, cadres and employees of the Company against corruption and degeneration.
In 2023, under the leadership of the audit department and accountability system leading group of the Company, the internal audit Supervision and reporting mechanism
department of the Company had always adhered to the work philosophy of strengthening supervision, promoting management,
preventing risk and creating value; followed the key strategic direction of the Company; carried out the audit works by closely focusing on The Company has established a comprehensive supervision system based on discipline inspection and inspection to ensure the
the strategic goal and overall development plan, to give full play to the audit business capability, audit management capability and audit effective implementation of the anti-corruption system. According to practical guidelines, such as Working Rules for Handling Reports
service capability. One is to organize leading group meetings, to deeply study and implement the spirit of the 20th National Congress of and Accusations by Discipline Inspection and Supervision Organ issued by China Minmetals, the Company has formulated Measures
the Communist Party of China and 1st Meeting of the 20th Central Audit Committee, and the spirit of important speeches and important for Management of Handing Complaints and Reporting , and defined the reception, judgment and specific handling procedures for
instructions of the General Secretary Xi Jinping on audit works, and to study and implement the relevant audit works; another is that Hu complaints and reporting. The Company resolutely implements the principle of hierarchical handling and dedicated management, and set
Liuquan, the Secretary of the Party committee and Chairman of the Company, always adheres to the high-level leading, attaches great up a special telephone, email and reception desk for the public to report. Whether it is anonymous or not, the Company strictly abides by
importance to the audit works, arranges, deploys, tracks and supervises works by himself, actively promotes National Audit Office, State- the discipline of work and confident i ality, protects the identity and information security of whistle-blowers, prevents whistle-blowers from
owned Assets Supervision and Administration Commission of the State Council and the group company to arrange, deploy and implement being retaliated in any form and protects their legitimate rights and interests.
works related to audit.
Anti-monopoly
System optimization The Company strictly abides by Anti-monopoly Law of the People's Republic of China, Provisions of the State Council on the Standard
for Declaration of Concentration of Business Operators, Interim Provisions on Prohibition of Monopoly Agreements, Interim Provisions on
In 2023, the Company has revised and completed 2 internal audit systems. One In 2023,
Prohibition of Abuse of Dominant Position of the Market , and other laws, regulations and relevant provisions; strengthens and improves the
is Measures for Management of Rectification for Audit Problems and Internal the Company has revised
anti-monopoly compliance management based on Anti-monopoly Compliance Guidelines of China Minmetals Corporation to effectively
Control Defects , and another is Implementation Measures for Accountability of and completed
prevent the legal risks of anti-monopoly.
Illegal Operation and Investment of Hunan Changyuan Lico Co., Ltd.
internal audit systems
Times of anti-corruption training Hours of anti-corruption training
Optimization function 18 42 45 36 55 60
In 2023, to highlight the independence principle of audit works, the Company had adjusted and optimized the management responsibility
of the original discipline inspection and audit department, i.e. the functions of discipline inspection, audit, inspection and law are
separated and managed by respective department, to ensure the specialization of audit works and the concentration of audit power; the
Company had merged the cost review responsibility for construction project of strategic planning department into the audit department,
and 2 new engineering auditors are employed, by which the audit power is further optimized and strengthened.
- 2021 2022 2023 Hour 2021 2022 2023
Deepen honesty construction Number of person-times receiving training on
anti-corruption
Number of articles and cases related to
anti-corruption themes pushed
Changyuan Lico strictly adheres to the Party constitution, disciplines and rules, and national laws and regulations; establishes a series
of rules and regulations, including Measures for Management of Handing Complaints and Reporting, Measures for Supervision and
Inspection of "Important Matters, Appointment and Dismissal of Cadres in Important Positions, Arrangement of Important Projects, Use
of Large Amount of Money" Decision-making System, Work Rules for Supervision and Inspection of the Implementation for Spirit of
Eight-point Decision of the CPC Central Committee, Measures for Handling Hand-in and Registration of Gifts, Cash Gifts and Souvenirs;
Person 2021 2022 2023 - 2021 2022 2023
standardizes the honest practices of all cadres and employees of the Company; carries out production and operation activities in the
open and transparent modes. We take a clear-cut stand against corruption, against "micro-corruption" around all production, operation
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Case Series of monthly warning education activities of Changyuan Lico
In October 2023, Changyuan Lico carried out a
series of monthly warning education activities;
organized seminars, topical Party lectures and
theme exhibitions; concentrated on watching
warning education videos; organized Party
members, cadres and employees to carry out study
and discussion, so as to guide Party members and
cadres to firmly establish a correct view of power
and interests; correct their cognitive deviations
and ideological concepts; enhance their ability
against corruption and degeneration, to escort the
Company to become a global leader in new energy
material industry. Protect Shareholders' equity
Changyuan Lico held the 2023 Meetings on Party Conduct and Upholding Integrity Construction and Anti-
corruption Work, and Warning Education Conference Investor relations management
On March 18, Changyuan Lico held the 2023 Meetings on Party Conduct and Upholding Integrity Construction and Anti-corruption To strengthen the management of investor relations, maintain the Company's honest, fair and transparent external image, improve the
Work, and Warning Education Conference; fully implemented the spirit of the 20th National Congress of the Communist Party governance level and realize the fair enterprise value of the Company, Changyuan Lico has formulated Measures for Management of
of China and 2nd Plenary Session of 20th CPC Central Commission for Discipline Inspection; conscientiously implemented the Investor Relations according to Company Law, Securities Law, Guidelines for Relations Between Listed Companies and Investors, Articles
requirements proposed in 2023 Meetings on Party Conduct and Upholding Integrity Construction and Anti-corruption Work, and of Association of Changyuan Lico , and other laws and regulations, and normative documents.
Warning Education Conference of the group company; summed up the works in 2022; carried out warning education; studied and
The Company attaches great importance to information communication with investors and potent i al investors, answers investors'
deployed key tasks in 2023.
questions in time through SSE E-interactive, e-mail and investor hotline, and sets up an investor relation column in official website
(website: www.cylico.com), through which investors can check the Company's stock information, corporate governance, periodic
reports, temporary announcements and investor contact information. The Company organizes various activities, such as performance
briefings, collective reception day for investors, and approach to listed companies, to strive to strengthen the benign interactive
relationship between the Company and investors, enhance investors' understanding of the Company and recognition of the Company's
value, form a good corporate culture that rewards investors and effectively protect investors' interests. In 2023, the Company held four
performance briefings and participated in irregular research and strategy meetings for many times, and communicated with more than
answered calls from investors. Investors communicated on the Company's operating performance, development planning and other
matters fully and timely.
Information disclosure
The Company attaches great importance to the information disclosure, strictly abides by various regulatory requirements of listed
companies, strengthens main responsibilities, continuously strengthens the information disclosure management, and always adheres
to the fair, impart i al and open information disclosure standards, and proactively and timely releases all information that may have
a significant impact on the decisions of shareholders and other stakeholders. The Company was granted an A-level rating in the
evaluation of information disclosure for listed companies in Shanghai Stock Market of Shanghai Stock Exchange from 2022 to 2023. The
Company designates China Securities Journal, Shanghai Securities News, Securities Daily , and the official website of Shanghai Stock
Exchange (http://www.sse.com.cn) as special channels for information disclosure, to ensure that all shareholders can obtain company
information equally and conveniently, and to provide a solid guarantee for the transparency of corporate governance and the balanced
protection of the interests of all parties.
In 2023, the Company issued four regular announcements, more than 50 temporary announcements and a number of public
online disclosure documents, including performance forecast, affiliate transaction, use and management of raised funds and other
announcement categories, effectively fulfilling the information disclosure obligations of listed companies.
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Social
Putting people first
and creating a
better future
The year of 2023 is the beginning year of implementing the
spirit of the 20th National Congress of the Communist Party
of China. The Company fully implements the spirit of the 20th
National Congress of the Communist Party of China, resolutely
implements the decisions and deployments of the Company's
Party committee, focuses on the talent team construction based
on the actual production and operation of the Company, provides
high-quality client services, strengthens data security and
privacy protection, sets up sustainable supply chain, promotes
digital innovation and conveys positive social energy.
SDGs
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Protect employee happiness Talent team training
In 2023, Changyuan Lico vigorously implemented special talent cultivation projects such as the Elite 300 talent project, Lico new star talent
project and skilled talent cultivation project. Through a series of measures such as job rotation exercise, mentorship and skill competitions,
we aim to accelerate employee growth and strive to build a talent team with sufficient quantity, reasonable structure and excellent quality,
Legal employment to reserve and accumulate strength for the high-quality development of Changyuan Lico.
In the employees' career development, based on the growth law of talents, the Company combines with the advanced practice in the
Changyuan Lico attaches great importance to social responsibility in employment and strives to create a fair, just and inclusive working
market, scientifically plans the career development channel and development path of employees, guiding their growth. The Company
environment for employees. The Company adheres to the principles of equality and respect, and does not discriminate against any job
provides employees with a multi-channel career development system, including management sequence, professional sequence,
seeker based on age, gender, race, etc., providing equal development opportunities for all employees. In the process of recruitment, the
specialist sequence and operation sequence. The Company also provides employees with a systematic training system and organizes skill
Company pays attention to the diverseness and inclusiveness of talents, and encourages talents from different backgrounds and majors
competitions to assist in their career development and ability enhancement.
to join the team of Changyuan Lico. As of the end of 2023, the Company has 2,330 employees and 148 employees from minority groups.
Talent concept
Employee structure In the field of new energy material, as a member enterprise of the World's Top 500, we strive to become an industry leader and a promoter.
We hope that outstanding talents will work together with us to strive ahead and create a green new world together with technology,
wisdom and sweat.
Total number of Proportion of Proportion of The Company is committed to building a high-quality employee team with passion, emotion, ambition, competence, success. Scientifically
employees male employees female employees
formulate appraisal and incentive mechanism of the Company, providing opportunities for those who is ambitious, platforms for those is
Age structure
(inclusive) below 30 (inclusive) 50 years old
Development channel
Personnel structure for types of work
The Company pays attention to the common growth of employees and the enterprise. Based on the nature and characteristics of the
post, combined with the career and expertise of employees, we establish multiple career development channels, including management,
technology, production (operation), etc. Through vertical job promotion, horizontal channel transition, and horizontal movement towards
Production and Management
purchasing personnel Technician and administrative core posts, we provide multiple career development channels for various talents, ensuring that the career development of employees
personnel is consistent with the development of the Company to the maximum extent. At the same time, the Company establishes the relatively
and the plan for reserve management cadres, providing a broad platform for employee growth.
Financial personnel Seller
Employee training
Management learning and training
Pre-job training, regular post business guidance, shift training and school-enterprise cooperation training
Educational structure
Skilled talents training
Proportion Proportion Proportion of Mentorship guidance, case analysis, simulation drill and shift training
of doctor of postgraduate undergraduate
and below
and reserved talents) training
Industry training exchange meeting, personnel further study, and academic and degree improvement platform
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Occupational health of employees
Occupational health
Employee training rate Times of
employee training
system certification
Proportion of trained
male employees Both of Changyuan Lico
and Jinchi Energy have
obtained industry related
Annual training
? occupational health and
expenses
safety management activity
Proportion of trained
senior management
% employees
Total annual
training hours Prevention and control of employee safety risk
risk and investigation and control of potent i al hazard, integrating party building and safety production. Taking theme education as an
opportunity, we conduct research on the dual prevention mechanism of classified management and control of safety risk and investigation
Proportion of trained
middle management and control of potent i al hazard, summarize advanced practices, identify problems and propose
Average training
hours of employees
solutions. Take the construction of a dual prevention mechanism as an important starting point
to improve the safety management level of the Company, and organize hazard identification and
hidden dangers were identified
Proportion of trained
in production processes, equipment and facilities, operating environment, personnel behavior
grassroots employees the completion rate
and management system in a comprehensive and full process manner, with a total of 1,088
of hazard rectification reached
identified risks. Divide the identified risk points into levels, formulate control measures, and
incorporate them into normalized supervision. Through the "one meeting, three cards (pre-shift 100 %
meeting, key operation point card, risk warning card and emergency instruction card)", promote
the implementation of the dual prevention mechanism, and enable employees to understand the Number of participants in
emergency exercises
basic situation of their post risk points and preventive and emergency measures. Throughout the
Case 2023 Electrician skills competition
year, a total of 26 special investigations and quarterly, monthly and holiday safety inspections 3,306
on fire-fighting, gas safety, hazardous chemicals, special equipment, special operations, certified
In order to fully implement the decision and deployment of the 20th National Congress of the Communist Party of China to
special operations and flood prevention were carried out. 604 hidden dangers were identified,
strengthen the construction of skilled talent teams, deeply implement the requirements of the 2023 working conference of China
and the completion rate of hazard rectification reached 100%.
Minmetals, effectively promote the action plan of innovative Minmetals construction and strengthening enterprises with talents,
and accelerate the implementation of the "Craftsman Casting Plan of Minmetals", the Company organized the 2023 electrician Each subsidiary formulates and improves the emergency response plan system for sudden risks based on actual production situations,
skills competition. The Company will actively establish a broad platform for skilled talents to show themselves, and actively build a revises and improves emergency rescue plans for work safety accidents, and files them with government regulatory departments.
high-quality skilled talent team to support the Company's high-quality development in the new era. Continuously strengthen risk prediction and warning, issue warning information 24 times, and improve emergency management organization
and emergency duty mechanism. In 2023, the Company carried out 87 emergency exercises in 14 categories, including hazardous chemical
leakage, flood prevention, fire evacuation, confined space, solution leakage and gas leakage, with a total of 3,306 participants. There were no
serious injuries or above work safety accidents throughout the year.
Chemical safety management
The Company focuses on key safety links such as the storage, use and disposal of hazardous chemicals during the production. In accordance
with relevant laws and regulations on work safety, the Company carries out the potent i al risk identification on the full process of hazardous
chemicals such as natural gas, liquid oxygen and hydrogen peroxide, lists problems and formulates rectification measures to ensure that
the rectification is implemented effectively. At the same time, we pay special attention to the recycling of waste batteries and the safety
management of high-risk production areas. Strictly implement the recruitment standards, raise the approval level for fire work in the area,
strengthen the on-site security access control system, and formulate an enhanced version of management regulations for work safety in
special areas.
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Case Series of activities of Changyuan Lico "Work Safety Month"
Employee safety June 2023 is the 22nd National "Work Safety Month". Changyuan Lico continues to
deeply study and implement the important discourse and instructions of General
Work safety accident warning education and training
education and Secretary Xi Jinping on work safety, and closely revolves around the spirit of the China
During the Work Safety Month, the main principals of the subsidiary conducted four "Work Safety Accident Warning Education and
training Minmetals Work Safety Committee meeting and the theme of "everyone talks about
Training" sessions.
safety, everyone knows emergency" to carry out various forms and rich content activities,
The Company has established a Level Ⅲ further solidifying the safety bottom line and red line, consolidating the responsibility
training system for occupational chain from the main principal "the first kilometer" to the on-site management "the last
health and safety. In 2023, a total of kilometer", and consolidating the foundation of the Company's work safety.
safety training before starting work
The main principal's "Five Leading" activity
and passed the exam. In 2023, national
activities such as "Work Safety Month", Hu Liuquan, the Secretary of the Party committee and Chairman of the Company, leads a
"Fire Propaganda Month", "Energy team to conduct on-site inspections of investigation and remediation for accident hazards,
Conservation Propaganda Week", work safety post responsibilities, implementation of hazardous operations, management
"National Low Carbon Day", "Online of outsourced units, and implementation of emergency exercises. Zhang Zhen, the general Emergency exercise skills competition and special exercises
Knowledge Competition", and online manager and deputy secretary of the Party committee of the Company, leads a team to
"Escape Exercise Training Camp" On June 16, the Company organized and
conduct a comprehensive investigation and sorting of major accident hazards, focusing on
were organized. Changsha fire safety participated an emergency exercise skills
special operations such as confined spaces, storage and use of hazardous chemicals, metal
propaganda and education experts competition organized by the government
dissolution, lithium battery storage, extraction production lines, oxygen production stations,
were invited to conduct special training department. The participating team of the
special equipment, and certified personnel, in order to prevent and resolve safety risks.
on Fire Safety Knowledge and other Company won the first prize in the electric
related topics. New media such as "Lico shock accident exercise and the third prize
Ideal School" were used to organize in the mechanical injury accident exercise
online training in rotation of laws and with excellent professional skills and a calm
regulations such as Work Safety Law competition mentality.
of the People's Republic of China,
Amendment to Criminal Law and At the same time, each subsidiary has carried
Judicial Interpretation . Through a series out emergency exercises such as sudden fire
of online and offline education and accidents, heat stroke, confined space rescue,
training, we further guide employees and gas leaks in accordance with the current
to establish a solid concept of work key controlled risks, effectively improving the
safety and enhance their awareness comprehensive response and rapid response
of safety responsibility. A total of 161 capabilities for emergencies.
Lecture on the theme of work safety
trainings are conducted throughout the
year, with a total of 13,930 person-time On June 30, Zhang Zhen, the general manager and deputy secretary of the Party
participants. At the same time, based on committee of the Company, gave a public lecture on the "Important Discourse of General Work safety promotion activities
the accident cases that have occurred Secretary Xi Jinping on Work Safety".
The Company has solidly carried out work safety promotion activities, including the launch ceremony of the Work Safety Month,
in the Company and peers, a warning
themed signatures, and safety publicity consultation days. Through hanging promotional slogans and distributing promotional
education manual is prepared and sent
to each team, and warning education materials, the Company has widely promoted knowledge of safety laws and regulations, fire safety, occupational health, and post
is organized for all employees. Through work safety responsibilities to employees.
reviewing the accidents, efforts are
made to promote improvement and
governance through case studies.
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Employee's rights and interests Case Sending coolness activities
In the scorching summer, the scorching sun is like fire. Labor union of Changyuan Lico deeply studies and implements the spirit
of the 20th National Congress of the Communist Party of China, the important discourse of General Secretary Xi Jinping on
Remuneration and benefits the work of the working class and labor unions, and the important instructions of General Secretary Xi Jinping on the eve of
the International Labor Day. We solidly carry out the "I do practical things for the people" practical activity, and combine with
The Company provides competitive salaries in the industry, allowing employees who strive for their ideals to have no worries. It has
the actual production situation of the Company to organize the "labor union sends coolness, heatstroke prevention and health
established a scientific and reasonable incentive oriented salary distribution model and dynamic adjustment mechanism, respecting the
protection" heatstroke prevention and cooling activity.
value differences of each post, and adopting different salary systems for different post categories. Intend to enhance the Company's
research and development and scientific and technological innovation capabilities, and stimulate the work enthusiasm, positivity, and
creativity of professional and technical personnel. The Company provides relevant rewards for various scientific and technological
innovation awards, inventions and creations that have been granted patent rights, national or industry standards that have been officially
promulgated and implemented, academic monographs that have been officially published, scientific papers published, and approved
technology projects outside the group. At the same time, it provides medium - and long-term incentive plans and education and training
funding plans for core talents.
The Company has a comprehensive welfare system, pays various social insurance and housing provident fund, commercial supplementary
medical insurance, conducts regular health examinations, provides free work meals, holiday life benefits, shuttle buses to and from
work, organizes a variety of activities, and enriches the employees' life outside of work. The Company's work environment is clean and
comfortable, green and environmentally friendly, equipped with fully equipped employee apartments (equipped with internal sanitation, We organize activities such as "single gatherings" and convenient services in the park to continuously enhance the sense of belonging and
air conditioning, water heater, WiFi), and complete cultural and entertainment facilities (football field, basketball court, badminton court, happiness of employees.
table tennis room, dance room, gym, etc.), allowing employees to enjoy and relax their body and mind in their spare time.
Pay attention to the life, health, Highlighting the achievements of women and genuinely caring
and safety of employees for the growth of female employees
Democratic management
We organize over 240 employees to Carry out the 2023 Women Workers Legal Popularization Month activity, earnestly
Changyuan Lico focuses on democratic management, safeguarding the democratic rights and legitimate rights and interests of participate in annual health examinations study and implement Xi Jinping Thought on the Rule of Law, promote and implement
employees. Changyuan Lico strictly regulates the construction of the Staff & Work Conference and improves the democratic management and assisted the Company's safety and Law of the People's Republic of China on the Protection of Rights and Interests of
system and mechanism, organizes three Staff & Work Conferences during the reporting period to hear and review important issues such environmental department in conducting Women , and vigorously create a good atmosphere of respecting the law, learning
as the Company's work report, as well as important matters such as the detailed implementation rules of the enterprise pension plan. occupational health surveys for employees. the law, abiding by the law, and using the law. Carry out a series of activities on
Organize and participate in employee "charming women and happy women", organize female workers health care lectures
Employee care and communication
medical mutual assistance activities to on "caring for the health of female workers, being beautiful and happy women" and
enhance employee medical security. "lotus lecture room" employee health lecture - How to Balance Work and Life.
In 2023, labor union of Changyuan Lico earnestly studied and implemented the spirit of the 20th National Congress of the Communist Party
Case "Charming women and happy women" series activities
of China and the 18th National Congress of the Chinese labor union, deeply implemented Xi Jinping's Thought on Socialism with Chinese
Characteristics for a New Era and General Secretary Xi Jinping's important discourse on the work of the working class and labor unions,
adhered to the work orientation of centering around the center and serving the overall situation, adhered to the work orientation of putting
employees at the center, highlighted main responsibilities and main business, seized key points and difficulties, conscientiously fulfilled their
duties, and promoted the Company's labor union work to achieve higher quality development, adding new momentum to the Company's
high-quality development. This year, the Company was awarded the "May 1st Labor Medal for Hunan Provincial Units in 2022", the civil
engineering team of the Company's 80,000 ton project was awarded the "Advanced Team in Hunan Province Key Project Labor Competition",
and Zhang Jinjin, the assistant to the general manager of the Company and the general manager of its subsidiary Hunan Changyuan Lico
New Energy Co., Ltd., was awarded the "May 1st Labor Medal for Hunan Provincial Units in 2022"; The Company's labor union was awarded
the "Advanced Labor Union Committee of the Ninth Provincial Area in 2023"; Li Gang, the vice chairman of the Company's labor union, has
been awarded the title of "Most Trusted Member from Mother's Family of Workers in Hunan Province" by the provincial labor union. "Caring for the health of female workers, being beautiful and happy women" female worker health lecture activity
The Company's labor union, based on practical work, closely focuses on solving the "urgent and difficult needs" of the workers and
masses, solidly promotes the practical activity of "I do practical things for the people", and achieves practical results, further deepening the
deep integration of labor union work and production and operation.
We organized condolence activities such as "labor unions providing coolness, heatstroke prevention and
health protection" to supervise the distribution of high-temperature allowances and heatstroke prevention
and cooling supplies, and coordinate the logistics support for heatstroke prevention and cooling.
"Lotus lecture room" employee health lecture activity
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Exciting and diverse cultural
Case 2023 Employee recreational and sport activities
and sports activities
Organize participation in superior labor
union activities. Actively participate in
various cultural and sports activities
in the ninth area of the provincial
labor union. Participated in the "ten
thousand steps per day" brisk walking
activity and the "accompanied day and
night, valuable companion" marathon,
with multiple members receiving 2023 Workers tug of war competition
rewards; organize participation in the
provincial station race of 2nd provincial
employee badminton carnival in 2023
and the 10th "Hunan Development
Cup" badminton team competition of
Hunan listed companies; organized
participation in the Xiangjiang new
area basketball league and won the
second prize. At the beginning of
the year, we formulated a activity The 6th "Changyuan Lico Cup" employee basketball game of "Always Follow the Party and Make Merits in a New Era"
schedule for the 2023 "Building a Lico
Dream Together, Every Month is Red
in Cultural and Sports Activities" event
for the Company, and held cultural and
sports activities such as tug of war,
volleyball games, badminton games,
the "Changyuan Lico Cup" basketball
games, chess tournament, football
games, table tennis games, and billiards
games to enrich the sparetime life of
cadres and employees, improve their Holding a Changyuan Lico Football Friendship Tournament
physical fitness, showcase the spiritual
style of employees in the new era,
and create a harmonious and healthy
working atmosphere.
Adhere to inclusive use of
funds for employees
In 2023, 94.29% of the labor union
expenditure is used for the welfare of
the Spring Festival, the Dragon Boat
Festival, the Mid-Autumn Festival,
birthday benefits and other inclusive
benefits for employees, as well as daily
visits and condolences. 2023 Employee Badminton Games 2023 Employee Volleyball Games
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Strictly adhere to product quality Digitalization empowers quality management
Big data platforms help achieve quality visualization
Product quality control system The Company fully recognizes the importance of information empowerment, with the construction of intelligent factories as the core and
the integration of business and finance as the foundation, continuously improving the level of delicacy management, process automation,
Changyuan Lico has introduced ISO9001:2015 and IATF16949:2016 quality management system standards, developed systems such as and business collaboration. At present, OA, SAP, MES, DCS, LIMS, WMS and other systems have been completed or are under construction.
Control Procedure for Product and Service Release, Product Exception Management Measures, and Product Control Line Management In the future, we will continue to promote the construction of PLM, EHS, contract management platform, cost control system and other
System , and established a comprehensive and effective quality control system. The system covers the entire process of product and systems to continuously promote the Company's digital transformation and constantly empower business. All information systems, with
service quality control, from raw material management, process management, finished product quality control, to final product inspection MES as the core and driver, achieve data exchange and linkage through API interfaces, and create the full process information platform for
and release. It scientifically and rigorously manages the quality of products and services. By continuously improving institutional the Company's core business.
mechanisms and establishing an excellent management evaluation system, we promote the enhancement of our quality management
awareness and capabilities, and implement quality assurance from all dimensions including Client requirement identification, product
development, production manufacturing, product delivery, and service. Information system architecture
L6 Enterprise portal
B1 business
intelligence
Command module Digital factory Full budget
Present and decision- network leading screen management
analysis
making level
Finance, fund and Human resource Office automation
Quality management L5 tax management management (HR) (OA)
Data and
comprehensive
system certification Enterprise Environmental and management
management Risk management
health management
Archives and knowledge
and and audit
(EHS)
management
control layer
Master data
management
Supplier relationship Customer relationship Product lifecycle
IT
L4 management (SRM) management (CRM) management (PLM)
Business Enterprise resource planning (ERP)
operation level
Big data
platform
Changyuan Lico ISO9001 Changyuan Lico IATF16949
Digital factory virtual simulation
L3 Manufacture execution Warehouse management Laboratory
Production system (MES) system (WMS) management (LIMS)
operation layer Integrated
Advanced planning and Transportation management Energy management
development,
Product quality management policy scheduling (APS) system (TMS) system (EMS)
operation and
maintenance
Changyuan Lico takes the spirit of craftsmanship to create products and services that exceed Client expectations as its quality
management policy. Adhering to Client needs as the guide, with a professional attitude, standardized management, precise control,
L2 Supervisory control and data acquisition (SCADA)
Automation Programmable logic Automated guided Human-machine
continuous innovation in management mode, and continuous improvement motivation, we strive to create products and services that
control layer controller (PLC) vehicle (AGV) interface (HMI)
exceed Client expectations and achieve common development.
Other
OT
In order to implement the Company's quality management policy, the Company has formulated the Quality Management Manual, Quality
Management Measures of Hunan Changyuan Lico Co., Ltd., as well as various levels of procedural documents, management methods,
and quality objectives; The system clarifies the quality responsibilities at the general manager level, department director level, engineer
L1 Sensor Device Machine
Workshop
level, and team employee level, ensuring standardized quality on duty and implementing a multi-level and multi-dimensional quality
equipment layer
responsibility control system.
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Full chain data collection and analysis Product quality management culture
Changyuan Lico has carefully studied and understood the strategic decision-making and deployment of the Party Central Committee on
the development of the digital economy and the requirements for the construction of the "Digital China Minmetals" of the group company.
Improving the quality atmosphere
Combining with the actual needs of the Company's business, it has vigorously promoted intelligent and digital transformation, and has formed
The Company emphasizes the construction of high-quality corporate culture, establishes a leadership group for corporate culture construction, and
rich practical achievements in data collection, detection and analysis throughout the entire business process and chain on various fronts.
formulates Management Measures for Corporate Culture Construction of Hunan Changyuan Lico Co., Ltd. and Work List for Quantitative Evaluation
The Company's "Test Center LIMS System and Smart Laboratory System" integrates MES, LIMS, and Smart Laboratory systems through System and Standard of China Minmetals' Corporate Culture Construction in 2023 Implemented by the Company. Quality culture is included in
transmission, calculation, storage, display, and analysis. It solves the problems of difficult data collection, manual control methods, and integrate corporate culture construction into various aspects of production and operation management. In order to comprehensively publicize and
lack of traceability in the experimental process, effectively improving the supervision efficiency of quality management personnel on the implement the Company's corporate culture concept, deepen the understanding of the Company's corporate culture concept system among all
laboratory, further consolidating the compliance and traceability of test work, providing necessary data support for efficient supervision of employees, fully integrate corporate culture into the corporate body, enhance the support of corporate culture for the Company's development, and
production quality, and advancing the automation, standardization, and informatization level of laboratory work to a new level. promote the dissemination of quality culture and the creation of a quality atmosphere in multiple places and all aspects.
Zhang Zhen, the general manager and deputy secretary of the Party committee of the Company, personally discussed the six specific requirements
of 2023 for promoting high-quality work in the 2023 annual work conference, which are closely related to high quality. At the opening ceremony of
Digitalization empowers quality management the Quality Month and other opportunities, the executive directors of the two subsidiaries advocated for all employees to value quality and firmly
establish the quality concept of "quality for survival, certification for the market, details for success or failure, and quality for the future".
Under the policy promotion of deep integration of informatization and manufacturing industry, the Company combines the characteristics
of large production scale and high quality requirements in the industry, as well as the needs of its own high-quality development strategy,
vigorously transforms and upgrades towards digitization, networking, and intelligence, creates a new capability system, on the basis of
enhancing traditional value and benefits, promotes the formation of new models and formats, and obtains sustainable competitive and
cooperative advantages.
The Company takes the OA system, SAP system, and MES system as its core, and constructs an automated, digital, and information-
based control system for the entire process of operation - production through methods such as "full access of key equipment", "automatic
capture of production data", and "automatic analysis of key data". This ensures that quality planning has data guidance, quality control
has data reference, quality assurance has data support, and quality improvement has data feedback. By digitalized management of the
production process, further improve the Company's quality management system and enhance its quality management capabilities.
生产数据
自动抓取
关键设备 关键数据 Spread quality culture
全接入 自动分析
The Company has formulated Implementation Plan for Publicizing and Implementation of Corporate Culture of Hunan Changyuan Lico
Co., Ltd. Through systematic and comprehensive publicizing and implementation, the enterprise culture dissemination project, landing
project, and evaluation project are implemented step by step.
Carry out the cultural "three on" work of "putting culture on the wall, culture on the internet, and culture on the speech", compile Company
Corporate Culture Handbook, standardize the precise use of enterprise visual recognition systems such as slogans, markings, and
Company logos in office and production places, and form a standardized material culture; complete the exhibition hall layout, set up
a corporate culture display wall, continuously update promotional PPTs, create brochures and other work, enrich cultural propaganda
carriers, and introduce the Company's corporate culture to partners and other parties and implement corporate culture dissemination
projects through more than 60 Client visits throughout the year, organizing "State-owned Enterprise Open Days" and participating in
various exhibitions, exchanges and other activities. . At the same time, we carry out corporate culture propaganda, essay solicitation and
knowledge contest of required technical knowledge and skills, create "culture on the wall", "cultural corridor" and other atmosphere and
promotional activities, take the OA intranet and official WeChat account as the propaganda position, and all staff participate in, deepen
······ level by level, implement the Company's mission and core values step by step and effectively, implement the corporate culture landing
project, take root in the corporate culture, continue to organize and carry out various employee sports games such as basketball games,
imperceptibly publicize and implement the corporate culture concept, and pool the strength of striving.
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Continuously strengthening quality awareness Carefully organize quality debate competitions
In order to enhance the quality awareness of all employees in the Company and create a good atmosphere where everyone pays In a series of debates with the theme of production quality and delivery efficiency, the contestants exchange with each other and talk
attention to quality, Changyuan Lico attaches great importance to the publicizing and implementation of quality culture. Seizing the confidently, and the audience applauds continuously and gains a lot. "The more the truth is debated, the clearer it becomes", the tense
precious opportunity of the annual "Quality Month", a series of quality culture themed activities are widely carried out. Rolling broadcast and lively debate competition not only left a deep impression on the attending employees, but also sparked active discussion and deep
of the feature documentary Quality in Big Country in the cafeterias of employees at various bases of the Company, using "fragmented" thinking on a series of quality management issues and standards, further pushing the learning atmosphere of quality management for all
time to guide employees to pay attention to and understand the quality story; each department effectively enhances the sensitivity employees in the Company to a climax.
and sense of responsibility of employees towards quality issues by conducting quality awareness training and discussion sessions; we
organize employees to participate in quality essay competitions, "Online Quizzes Activity for Central Enterprise Total Quality Management
Knowledge Competition", and "Quality Month Quizzes Activity of Lico Ideal School", successfully creating a strong learning atmosphere of
"enterprises pursuing quality and everyone paying attention to quality".
In 2023, we continued to promote leaner production
work and organized various depar tments to
conduct in-depth diagnosis and analysis of various
aspects of leaner production. We collected a total
of 31 lean improvement proposals from the entire
Company. Through organizing 4 meetings of the
lean improvement leadership group, we evaluated
the feasibility of the proposals and the effectiveness
of programme implementation. Finally, we selected
participate in the evaluation, we voted and selected
We saved over RMB 20 million in production costs
throughout the year, effectively reducing operating
We saved over RMB 20 million in production costs
throughout the year
costs of enterprise, improving production efficiency
and product quality, and improving the Company's
Conduct skill competitions overall management level.
Carry out activities such as quality data analysis,
test theoretical knowledge and practical operation
PK, battery pack disassembly, hot melt welding,
forklift skill competition, 5S evaluation, etc. Through
Improve the product quality
competitions and evaluations to commend the
Changyuan Lico has established management systems for non-conforming products, such as Control Procedure for Non-conforming
advanced, give full play to the demonstration and
Products, Control Procedures for Corrective and Preventive Measures, Product Exception Management Measures, and Incoming Material
driving effect, inspire employees to practice quality
Exception Management Method . It has established a non-conforming product review system with the quality control department as
commitments with practical actions, deeply embed
the core, realizing the handling and control process for incoming non-conforming products, process non-conforming products, finished
the concept of "all staff quality management" in
product non-conforming products, post-delivery non-conforming products, and other non-conforming products. Clearly identify and
people's hearts, further promote the continuous
effectively dispose of non-conforming products, prevent them from flowing into the next process, ensure the quality of products delivered
strengthening of company team construction, and
to Clients, and prevent the recurrence of non-conforming products.
steadily improve quality and efficiency.
In 2023, the Company continued to strengthen the timeliness and effectiveness of preventing and improving non-conforming products.
Through project maturity management and design risk identification, quality prevention was implemented, problem oriented and
Quality prevention oriented management were implemented to eliminate variation, implemented defect prevention, controlled hierarchical
management of deterioration, and achieved product consistency assurance. Ensure that product indicators meet Client specifications, improve Client
all personnel
satisfaction, and reduce the risk of Client complaints.
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Delivering high-quality services When the Company purchases materials, engineering, and services, in principle, it selects suppliers within the
scope of qualified suppliers through the procurement e-commerce platform of China Minmetals Corporation
(hereinafter referred to as the procurement platform) for procurement;
Responding to client needs
Changyuan Lico always adheres to the service philosophy of "looking at the market with care and treating Clients with sincerity", providing The Company achieves information management and digital monitoring of the entire lifecycle, including
Clients with high-quality products. Regarding Client service, the Company has formulated Implementation Rules for the Client Manager suppliers sourcing, admission, use, evaluation, and exit, through procurement platforms and procurement
Mechanism of Hunan Changyuan Lico Co., Ltd. A high-quality Client service team based on the "Client manager system" provides Clients monitoring platforms, and rigorously manages suppliers offline.
with full process and high-quality services, continuously improving Client satisfaction and loyalty.
The Company has established an efficient Client information processing mechanism, following the process of Control Procedure for Client
Feedbacks , and has formed a full flow system of "information acceptance - classification transmission - feedback processing". Client
feedback content is timely classified by department and responded to. The Client manager team categorizes Client feedback, organizes
Access and review of suppliers
analysis and processing, responds to Client feedback, develops and implements corrective and preventive measures, and distributes Client Supplier admission adopts a review system, which is divided into two stages: preliminary review and detailed review. Preliminary review
Satisfaction Questionnaire . By providing feedback on product quality and performance from Clients, we can understand their true opinions is a qualitative compliance review of the basic conditions and rejection clauses of suppliers; detailed review is a quantitative scoring
or demands on the product, helping the Company better meet Client needs, improve Client satisfaction, and increase Client stickiness. evaluation of review standards. The procurement platform company implements an "admission system" management for suppliers, and
only suppliers who have passed the admission approval can participate in the Company's procurement business.
Quality improvement services The Company implements a "dynamic assessment, selecting the best and eliminating the worst" evaluation management for suppliers,
and adopts a combination of daily management and quantitative assessment for evaluation. The annual evaluation mechanism serves as
Changyuan Lico has established Control Procedure for Continuous Improvement and Management Measures for Lean Improvement in quality an important basis for supplier grading and exit. The procurement department conducts annual evaluations of suppliers who have entered
improvement management, covering all aspects of the product lifecycle, with Client needs as the center and service improvement as the core, or established service relationships.
striving to continuously enhance the Company's core competitiveness. To this end, a lean improvement leadership group is established to be The procurement department reviews and supervises the admission of qualified suppliers and the confirmation of "blacklisted" suppliers.
responsible for the approval and evaluation of improvement projects. At the same time, the quality assurance department is responsible for When reopening, the supplier should provide a corresponding rectification report, open and use can only be carried out after being reviewed.
project management and supervision, while the finance and material control departments calculate the economic benefits of the project to
ensure that all departments actively participate in improvement activities. The continuous improvement project has not only comprehensively
optimized product quality, environment, and occupational health and safety, but also achieved the goals of efficiency improvement, cost
reduction, energy consumption reduction, and service quality improvement through measures such as process and production process
Supply chain risk management
improvement, environmental protection awareness enhancement, and work environment safety improvement. The Company implements full cycle management of suppliers, ensuring their excellent qualifications, legality, and integrity from introduction
to exit. At the same time, the compliance management requirements are extended to the daily operations of suppliers, covering multiple
aspects such as environmental protection, labor law compliance, anti-monopoly, anti-corruption and commercial bribery, intellectual property
Maintaining privacy and information security protection, data security, etc., in order to comprehensively improve the level of supplier management. By strictly monitoring potent i al risks in
the supply chain, the Company has avoided adverse consequences caused by supplier compliance issues.
Changyuan Lico strictly adheres to Data Security Law of the People's Republic of China and Personal Information Protection Law of the
People's Republic of China , and has built and certified an information security management system based on the ISO/IEC 27001:2013
standard, demonstrating a continuous commitment and effective management of information security.
Prevention and emergency plan for interruption of raw
material supply
Building a sunshine chain
The Company has a clear distribution of primary, secondary, and subsequent suppliers in the supply of raw materials. This distribution can
ensure the flexibility and stability of the Company in the supply chain, avoiding the risk of a single supplier. The Company has established
close cooperative relationships with various suppliers to ensure timely and stable supply.
In addition, in order to better respond to market fluctuations and production needs, the Company establishes safety stock in advance
Supplier management principles according to the production plan. This approach can effectively prevent shortages of raw materials and delays in supply, ensuring that
the Company's production demand is not affected. The Company will always maintain control and management of inventory to ensure
In order to optimize supplier resources, ensure procurement quality, reduce procurement costs, control procurement risks, and ensure reasonable allocation and use of inventory, in order to maximize production efficiency and Client satisfaction.
procurement implementation, under the unified management of China Minmetals Corporation, in accordance with Supplier Management
Measures of China Minmetals Corporation and Procurement Management Regulations of Hunan Changyuan Lico Co., Ltd., the Company
has formulated Supplier Management Measures . The Company's supplier management follows the principle of "unified management, Suppliers Unit 2023 2022 2021
dynamic assessment, and selecting the best and eliminating the worst":
Total number of suppliers Nos. 128 108 105
Statistics of supply chain risk events Nos. 0 0 0
The Company's procurement department is the unified and specialized management department for suppliers;
Number of suppliers reviewed Nos. 20 19 11
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Strengthening innovation drive Actively participate in industry standard construction
In terms of standard construction, as a representative of the ternary cathode
material industry, Changyuan Lico has always been committed to the development During the reporting period,
Continuously creating a scientific and technological of the industry, actively participating in industry standard construction, and
assisting in the standardized development of the industry. During the reporting a total of 50 technical standards
innovation platform period, a total of 50 technical standards drafted by it are implemented and 21
drafted by it are implemented
technical standards are drafted by it and implemented. This year, we have won
The "Hunan Province New Energy Battery Positive Electrode Materials and Recycling Engineering Technology Research Center" declared three awards for excellence in technical standards from the National Nonferrous
by the Company was selected as the 2023 Hunan province engineering technology research center. Changyuan Lico has been recognized Metals Standardization Technical Committee. Among them, the national standards
as a benchmark enterprise of "increase variety, improve quality, and create a brand" in the raw material industry of Hunan Province. Electrochemical Performance Test of Lithium-ion Battery Cathode Materials - High 21 technical standards are
Changyuan Lico New Energy has been recognized as the "Hunan Province New Materials Pilot Platform" and "Hunan Province New Temperature Performance Test Method and Powder Compressive Strength Test drafted by it and implemented
Materials Enterprise". Method that we participated in won the "Second Prize", and the national standards
Nickel Manganese Acid Lithium Electrochemical Performance Test - First Specific
Discharge Capacity and First Charge Discharge Efficiency Test Method that we
Promote the transformation of scientific and participated in won the "Third Prize".
technological innovation achievements
In 2023, the Company continued to invest in technological research and development, continuously achieving scientific and technological Promote the green development of
innovation and project results. The development of lithium iron phosphate business has achieved a milestone breakthrough "from 0 to
the new energy industry
materials, and achieve ton level shipments. We have firmly implemented the "going global" strategy, introduced new power type ternary
The development of the lithium-ion battery industry is of great significance for achieving the transformation of the new energy industry
material products into international Clients through mass production, made significant progress in international market development, and
and the "carbon peaking and carbon neutrality" goal. With the advancement of technology and the expansion of the market, lithium-
achieved a historic high in overseas market sales.
ion batteries will play an increasingly important role in the future energy structure. Changyuan Lico is an important part of the lithium-
The Company has completed two project approvals for key manufacturing products including "open competition mechanism to select the ion battery industry chain, its products are mainly used in downstream energy storage systems and new energy vehicles, and is the
best candidates" in Hunan Province. Three scientific and technological achievements have been evaluated, including the "development backbone driving the overall development of the new energy industry. By building "green factories", adopting advanced cleaner
and industrialization of key technologies for the preparation of high specific energy and high nickel ternary single crystal cathode production technologies and equipment, strengthening energy management, carrying out digital production construction, implementing
materials", and the "key technologies and industrialization for the preparation of high voltage and high rate multi-component cathode carbon footprint supply chain traceability, and carrying out battery recycling, the Company can not only provide low-carbon and high-
materials and their precursors for lithium-ion batteries". The Company's project "key technologies and industrialization for the preparation quality products for the new energy industry, help achieve the "carbon peaking and carbon neutrality" goals, but also promote itself to
of high voltage and high rate multi-component cathode materials and their precursors for lithium-ion batteries" won the first prize of the continuously advance towards carbon neutrality goals, demonstrating the Company's green responsibility and sustainable development
Strengthen the protection of intellectual property rights
In terms of intellectual property, Changyuan Lico strengthens its enterprise intellectual property
management and patent infringement warning work, introduces excellent patent engineers and
patent firms, and expands the effectiveness of patent protection. Introduce a professional patent The "carbon peaking
retrieval system, strengthen the internal patent retrieval and analysis work of the Company, and
strengthen the construction of the Company's patent database. During the reporting period, the
and carbon neutrality"
Company had a total of 141 valid patents, including 100 invention patents and 41 utility model goal
patents. 32 new domestic patents have been applied for, including 25 invention patents and
authorizations have been granted, including 11 domestic invention patents, 1 Japanese invention
patent, and 6 utility model patents.
The high-level protection of intellectual property rights is the institutional guarantee for innovative
development, and protecting intellectual property rights is protecting innovation. In 2023,
Implementation Rules for Intellectual Property Management of Hunan Changyuan Lico Co.,
Ltd. and Implementation Rules for Scientific and Technological Achievement Management of
Hunan Changyuan Lico Co., Ltd . were revised, and the intellectual property management system
certification of its subsidiary, Hunan Changyuan Lico New Energy Co., Ltd., was completed,
achieving comprehensive coverage of the intellectual property management system in both the
parent and subsidiary companies.
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Pairing co-building
Take on social responsibility bravely Changyuan Lico deeply understands the important significance of doing a good job in employment assistance for poverty alleviation and
comprehensively promoting rural revitalization. In 2023, the research team of the Company went to Shuzishan preserved meat factory
and morchella base in Huayuan County for on-site investigation, and also went to Changle Township to inspect the construction of
rural resident i al environment improvement projects. During the research process, Lu Yaohui, deputy secretary of the Party committee of
Participate in rural revitalization
the Company, carefully listened to the introductions of relevant enterprise leaders on production capacity scale, employment situation,
and sales channels. He fully recognized the contributions made by various enterprises to help the people overcome difficulties, achieve
common prosperity, and build a harmonious society through the revitalization of rural industries. He also encouraged all enterprises to
strengthen infrastructure construction, cultivate and introduce talents, and expand sales channels, in order to open up the market with
Investigation and survey more cost-effective and high-quality agricultural products.
During the reporting period, the Company actively conducted research on rural revitalization, carefully studied and determined specific
measures to implement the rural revitalization strategy, and carried out targeted assistance and partner assistance work, demonstrating
Poverty alleviation in consumption
the Company's sense of responsibility and mission through practical actions.
In 2023, the headquarters and subsidiaries of Changyuan Lico actively mobilized and guided cadres and employees to actively participate
in consumption assistance and purchase products from poverty-stricken areas. Using the Company's holiday benefits, we purchased
holiday welfare supplies from Huayuan County, a targeted assistance county, and spent more than RMB 300,000 on consumption
Case Changyuan Lico Party committee conducts rural revitalization research in Huayuan County assistance throughout the year. Organize employees to actively participate in the Central Enterprise Consumption Assistance Week and
purchase materials spontaneously.
In 2023, Lu Yaohui, deputy secretary of the Party committee of Changyuan Lico, led a team to carry out rural revitalization
research in Huayuan County, which is targeted for assistance. Ⅰ . The research team went to Lianghe Village and Mala Village
in Minle Town, visiting households to comfort the disadvantaged, understand the sources of economic income and living
conditions of the disadvantaged families, and on behalf of the Company, donated RMB 10,000 and RMB 24,000 in financial aid
Support the education industry
to a college student from a martyr's family in difficulty and three high school students from disadvantaged families in Huayuan
County. Ⅱ . The research team went to Shuzishan preserved meat factory and morchella base in Huayuan County for on-site
investigation, and also went to Changle Township to inspect the construction of rural resident i al environment improvement Donation for education
projects. In the future, Changyuan Lico will continue to deeply implement the important speeches and instructions of General
Secretary Xi Jinping on the rural revitalization strategy, actively demonstrate the responsibility of state-owned enterprises, The Changyuan Lico Party committee continues to pay attention to the education issues of impoverished students in targeted assistance
fulfill social responsibilities, give full play to their own advantages, deepen consumption support, talent education, and provide counties and districts, vigorously supporting impoverished students to complete their studies, visiting Minle Town in Huayuan County,
employment, and solidly promote rural revitalization work to a new level and achieve new results. visiting villages and households to comfort disadvantaged groups, and on behalf of the Company, donating RMB 34,000 in financial aid to
a college student from a martyr's family in difficulty and three high school students from disadvantaged families.
education
Donation for
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Chairman Changyuan Lico management prospects
Environmental, Social and Governance Report
Future prospects
The year of 2024 is the crucial year for fully implementing the
spirit of the 20th National Congress of the Communist Party
of China and is the decisive year for deeply implementing
the 14th Five-Year Plan. The Company will always adhere
to the guidance of Xi Jinping Thought on Socialism with
Chinese Characteristics for a New Era, deeply implement the
spirit of the 20th National Congress of the Communist Party
of China, adhere to the overall keynote of seeking progress
while maintaining stability, fully and accurately implement
the new development concept. Adhere to a high position and
a big pattern, systematically plan for the current and long-
term, and enhance the supporting capacity of core business;
adhere to increasing momentum and activating vitality, build
the advantages in technology research and development,
and accelerate the formation of new quality productivity;
adhere to stable growth and strong profit, play a good
combination of increasing income and reducing expenditure,
and continuously improve the level of high-quality operation;
adhere to promoting integration and gathering public feeling,
promote the down-to-earth attitude, make efforts to create
a high-quality team, gather strength and work practically,
accelerate towards the objective of establishing a leader in
the global new energy material industry, and contribute more
to the comprehensive construction of the modern socialist
country and the comprehensive promotion of the great
rejuvenation of the Chinese nation!
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Appendix
Reference remarks
Abbreviation of company Full name of company Indicator Unit 2023 2022 2021
China Minmetals China Minmetals Corporation
Greenhouse gas emissions Greenhouse gas emissions
HNG Hunan Nonferrous Metals Holding Group Co., Ltd. (category I) - emission sources (category I) - emission 1.71 1.28 0.20
China Minmetals Capital China Minmetals Capital Co., Ltd. owned or controlled sources owned or controlled
CATL Contemporary Amperex Technology Co., Limited (CATL) 10,000 m3 295.79 66.75 13.88
Natural gas
BYD BYD Co., Ltd
EVE EVE Energy Co., Ltd.
Ton 0.71 0.86 1.38
Sunwoda Sunwoda Electronic Co., Ltd. Gasoline
tCO2e 2.16 2.62 4.2
Jinchi Energy Jinchi Energy Materials Co., Ltd.
Changyuan Lico New Energy Hunan Changyuan Lico New Energy Co., Ltd. 10,000 t 1.82 1.92 0.29
Carbonate
Greenhouse gas emissions
(category II) - purchased energy
Outsourced electricity 100 million kWh 5.49 5.83 3.70
Key performance indicators Outsourced heat (steam) 10,000 GJ 22.92 32.25 30.26
Indicator Unit 2023 2022 2021 Resource use
Environmental indicator Total energy consumption 10,000 tons of standard coal 7.91 8.35 5.59
Emission
O u t s o u rc e d s t e a m c o n v e r t e d
Exhaust pollutant emissions 10,000 tons of standard coal 0.78 1.09 1.03
Ton 1.54 1.42 1.30 standard coal quantity
(particulate matters)
Natural gas converted standard coal
Exhaust pollutant emissions 10,000 tons of standard coal 0.39 0.10 0.02
Ton 0.69 0.73 0.72 quantity
(ammonia)
Electricity converted standard coal
Exhaust pollutant emissions 10,000 tons of standard coal 6.74 7.16 4.54
Ton 0.06 0.59 0.40 quantity
(sulfuric acid mist)
Total water consumption 10,000 t 128.78 150.87 121.69
Industrial waste water emission 10,000 t 0 2.53 5.21
Equivalent value/total Fresh water consumption 10,000 t 94.49 101.99 74.47
COD 0 1.61 4.79
emission of pollutant (ton)
Total circulating water 10,000 t 34.29 48.88 47.22
Equivalent value/total
Ammonia nitrogen 0 0.07 0.18
emission of pollutant (ton) Proportion of total circulating water % 26.63 32.39 38.80
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Indicator Unit 2023 2022 2021 Indicator Unit 2023 2022 2021
Social indicators
Educational background of
Employment —— —— —— ——
employees
Total number of employees Person 2,330 2,053 1,503
Proportion of doctoral student % 0.6 0.59 0.53
Number of full-time employees Person 2,330 2,053 1,503
Proportion of postgraduate % 8.88 6.97 7.32
Number of employees in the Chinese
Person 2,330 2,053 1,503 Proportion of undergraduate and
mainland % 90.52 92.44 92.15
below
Percentage of male employees to
% 77.68 76.86 77.45 Social insurance coverage % 100 100 100
total employees
Average days of paid leave per year
Percentage of female employees to Day 5 5 5
% 22.32 23.14 22.55 per employee
total employees
Employee satisfaction % 97.29 93.28 96.22
Proportions of employees
—— —— —— ——
by age group Health and safety
Work safety input RMB 10,000 533.4 411.0 380.7
Proportion of employees
% 34.68 32.49 27.88
under 30 years old (inclusive)
Hours of training on work safety Hour 53,600 43,200 26,400
Proportion of employees aged Times of training on work safety —— 161 104 65
% 63.02 60.45 64.40
Number of person-times receiving
Person 13,930 11,350 7,965
Proportion of employees training on work safety
% 5.32 7.06 7.72
over 50 years
Coverage rate of employees receiving
% 100 100 100
Number of employees training on work safety
Person 148 117 81
from minority groups Development and training
Personnel structure Employee training rate % 100 100 100
Person —— —— ——
for types of work
Proportion of trained male employees % 100 100 100
Production and purchasing personnel Person 1,590 1,454 887
Proportion of trained female
% 100 100 100
employees
Technician Person 558 433 481
Proportion of trained senior
Management and administrative % 100 100 100
Person 139 129 106 management employees
personnel
Proportion of trained middle
Financial personnel Person 23 19 15 % 100 100 100
management
Seller Person 20 18 14 Proportion of trained grassroots
% 100 100 100
employees
Number of new jobs Person —— —— ——
Times of employee training —— 1,320 1,254 1,155
Number of new female employees Person 118 182 96
Annual training expenses RMB 10,000 38.4 60.3 40.2
Number of new male employees Person 498 615 463
Total annual training hours Hour 58,282 223,874 84,339
Number of fresh graduate employees Person 80 57 11
Average training hours of employees Hour 25.01 25.09 56.11
Number of employees
Person 536 740 548
by social recruitment
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Environmental, Social and Governance Report
Index of indicators
Indicator Unit 2023 2022 2021 Reference index system for
ESG special reports of listed
Supplier management Table of Contents GRI
companies controlled by
Number of suppliers central enterprises
Nos. 128 108 105
by geographical region About the report 2-3 G4.1
Message from the Chairman 2-22 G4.1
Statistics of supply chain risk events Nos. 0 0 0
About Changyuan Lico 2-1、2-6 G4.1
Number of suppliers reviewed Nos. 20 19 11
ESG management E5.1、E5.6
Scientific and technological innovation 2-17、2-23、2-24、2-29、3
Environment: Low carbon and environmental
R&D investment RMB 100 million 3.77 6.61 2.87 —— ——
protection, harmonious coexistence
Proportion of R&D investment % 3.51 3.67 4.19 Improvement of environmental management 2-27、3、 E.5
Governance indicator Reduction of resource consumption 3、302、303 E.1
Corporate governance Prevention and control of pollution emissions 3、303、305-7、306-2、306-3、306-5 E.2、E.5
Number of meetings Climate risk response 3、201-2、305-1、305-2、305-5 E.3
—— 7 10 7
of Board of Supervisors held
Governance: Efficient governance with
—— ——
Board of Directors stable footsteps and forward thinking
Number of the Board of Directors Person 9 9 9 Optimize governance structure 2-9、2-10 G1
Adhere to the guidance of Party building 2-12 G1.1.4
Number of meetings
—— 9 10 10 Strengthening of risk management 2-15、2-26、2-27、3-3 G5.2
of the Board of Directors held
Compliance operation Adhere to compliance operation 2-15、2-26、2-27、3-3 G2.1、G5.1
Conduct internal audit 205-1 G2.1.1
Times of law-abiding
—— 12 8 5
and compliance training Deepen honesty construction 3、205、206 G2.2
Hours of law-abiding Protect Shareholders' equity 2-16、2-23 G3.1、G3.2、G4
Hour 20 10 8
and compliance Training Social: Putting people first and creating a
—— ——
better future
Number of person-times 2-7、3、401-1、403、404-1、404-2、
receiving training on law- Person 488 280 188 Protect employee happiness S1
abiding and compliance
Strictly adhere to product quality 302-5、203 S2.1
Times of anti-corruption training —— 45 42 18
Delivering high-quality services 3、204-1、308 S2.2
Hours of anti-corruption training Hour 60 55 36 Building a sunshine chain 3、204-1、308 S3
Number of person-times receiving Strengthening innovation drive 2-6 S2.3
Person 1,593 1,398 700
training on anti-corruption Take on social responsibility bravely 3、413、415 S4
Number of articles and cases Future prospects —— ——
related to anti-corruption —— 17 12 10
themes pushed Key performance indicators
Management of investor relationship and shareholder rights Index of indicators
Feedback
Number of shareholders'
—— 3 5 7
meetings held
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Environmental, Social and Governance Report
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Our contact information：
Hunan Changyuan Lico Co., Ltd. Tel.: 0731-88998117
Website: http://www.cylico.com/ Address: No. 61 Yan'gao Road, Yuelu District,
E-mail: cylico@minmetals.com Changsha City, Hunan Province
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