Starting a New Journey with Zhonghuan
SOCIAL RESPONSIBILITY REPORT
OF ZHONGHUAN SEMICONDUCTOR
Zhonghuan Semiconductor 2020 Social Responsibility Report
Table of Contents About Zhonghuan Semiconductor
Company Profile
01
01
Key Performance Indicator
Honors
41
44
Our Social Responsibility Management 03 Appendices 45
Instructions for Report Preparation 51
G12
Stable Operation to Promote 06 Making Breakthroughs and 14 Putting People First and Ensuring 21 Building a Better Society with 31
High-quality Development Leading Product Innovation Employees’ Dignity Sustainable Development
Good Corporate Governance 06 R&D and Innovation 14 Respect for the Rights and Interests of Employees 21 Building a Green Factory 31
Comprehensive Risk Management 09 Adherence to High Quality 17 Facilitating Staff Development 25 Construction of Responsibility Value Chain 36
Creation and Distribution of Economic Value 13 Guarantee for Network and Information Security 20 Promoting Occupational Health and Safety 27 Contribution to Social Prosperity 38
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Zhonghuan Semiconductor 2020 Social Responsibility Report
About Zhonghuan Semiconductor
Company Profile
Headquartered in Tianjin, Zhonghuan Semiconductor (stock code: SZ.002129) is a company listed on Shenzhen Stock The company always adheres to the corporate vision of "Environmental friendliness, Employee support, Government
Exchange. With 10,258 employees, it is a mixed-ownership and high-tech enterprise integrating scientific research, respect and Customer trust," and implements operation strategy of "Cross-region, Cross-sector, Multi-industry and
production, operation and venture capital. The company targets strategic emerging industry. To achieve intensive and Internationalization". Our operation also follows the idea of "financialization, capitalization and external integration to improve
extensive development, it focuses on four segments, namely new energy, semiconductor, photovoltaic power generation the company's resource efficiency." Our manufacturing business continues to maintain the concept of "lean manufacturing
and finance, through its 68 subsidiaries. The company's products are widely used in smart grid transmission, new energy to increase our basic strength, embracing solid industrial competition, and developing beyond such competition through
vehicles, high-speed trains, wind power inverters, integrated circuits, consumer electronics, aerospace, photovoltaic power concept and technological innovation". In addition, the company actively promotes the reform of Industry 4.0 (Internet+) to
and other fields. further strengthen the enterprise, enhancing the enterprise vitality, development motives, anti-risk capability and market
influence to ensure our sustainable development. In 2020, the total assets of the company reached RMB58.72 billion, and
the aggregate operating revenue exceeded RMB19.06 billion.
New Energy Sector Semiconductor Sector
New Energy Battery Photovoltaic Semiconductor Semiconductor Semiconductor
Materials pieces Imbrication materials devices packaging
Components
Financial New materials
High-efficiency photovoltaic power station venture capital and technologies
Photovoltaic Power Generation Sector Finance and Other Sectors
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Our Social Responsibility Management Stakeholder Communication and Substantive Issues Analysis
Drawing on the industrial experience and practice home and abroad, as well as our operation features, we identify the key
stakeholders as shareholders, customers, employees, government and regulatory authorities, partners, communities and
Social Responsibility Philosophy the public, and actively communicate with them through websites, media, meetings, reports, activities and other channels.
We stick to our corporate vision of "Environmental friendliness, Employee support, Government respect, Customer trust",
assuring all employees and stakeholders more dignified life and work through reforming.
Key Stakeholders of Zhonghuan Semiconductor and Communication Methods
Benchmarking world-class enterprises, we hold advanced social value. We also embrace altruism, are willing to take social
responsibility, and can create value instead of plundering values. We will uphold high standards of international business Key stakeholders Issues of concern Communication and response
and social ethics, create value with and share value for all stakeholders as a basis to bear social responsibility and promote
sustainable development of the enterprise and the society.
Risk management, economic
General meeting of shareholders,
Our company outperforms conventional "Made in China" undertaking in manufacturing and innovation. We belong to Shareholders and performance, industry
financial report, performance report,
companies that promote high-quality development as mentioned by President Xi. Sustainable development is reflected in senior management development, customer
roadshow, etc.
our excellent quality, that is, focusing on our own industry with a long-term goal and the capability to develop through a communication and satisfaction
cycle with industrial fluctuation.
We integrate environmental and social responsibilities into our strategic business activities, carefully manage our
environmental and social risks, improve management system and supply chain performance, reduce resource consumption Product exhibition, customer research,
Customer interest and information
and environmental emissions, innovate to drive development, develop innovative talent, and promote global progress. technical seminar, B2B (such as
protection, product and service
Customers E-tapeout system, WIP report, WAT
quality, customer communication
report), customer service hotline,
and satisfaction
customer satisfaction survey, etc.
Social Responsibility Management System
Effective social responsibility management depends on the top-down attention from executives of the company and the
establishment of the governance system. We establish the company's social responsibility to include the management
Employee activities, employee
participation, horizontally coordinate each functional department, vertically cover the corporate social responsibility
Employee rights and benefits, representatives meeting activities,
organization system of each subsidiary company. Members of the team are personnel in charge of each functional
employee health and safety, enterprise intranet, employee training,
department. Employees
employee development and employee self-service system, employee
training manual, enterprise internal publications,
etc.
Social responsibility management framework of Zhonghuan Semiconductor
Areas of
Ecological environment - E Social development - S Corporate governance - G
concern
Compliant operation, green Organization investigation, official
Government and
products, emission management, correspondence, policy implementation,
Project Management Organization and regulatory authorities
energy use information disclosure, etc.
Department, Security and Development Department,
Responsible Board of directors, senior
Environment Protection Department for Relations
department management
Department, R&D Department, between the Party and the
Production Department General Public
Industry development, compliant
Public bidding meetings, strategic
operation, product and service
Proposing corporate Partners cooperation negotiations, communication
Managing environmental Promoting employee quality, customer satisfaction and
sustainable development and exchange visits, etc.
risks throughout the entire development communication
vision
value chain Innovation and customer
Project in charge Developing corporate social
Production with more satisfaction
responsibility plan
extensive resources and less Supporting community
Publishing objectives and
pollution prosperity Community volunteer activities, public
management progress Green products, emission
Community, public, welfare projects, targeted poverty
management, community
media, etc. alleviation and other social cause support
Goal The coordinated development of economy, environment and society development, public welfare
projects
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Stable Operation to Promote
In 2020, according to the Sustainable Development Report Standard (GRI Standards) and the domestic and international
policies and standards, we comprehensively considered the focus of internal and external stakeholders, peer benchmarking
High-quality Development
analysis, industry features and strategic direction of the company to conduct social responsibility issue inspection.
Following the procedures of identification, assessment and selection, and supported by industrial experts, we have
identified and prioritized 22 material issues for action and reporting.
Good Corporate Governance
Materiality analysis
Corporate Governance Structure
Stakeholders/Priority Low Medium High
The company adheres to the establishment of an open, transparent and efficient corporate governance system, and elects
Investor relations directors in strict accordance with the selection and appointment procedures specified in the Articles of Association . The
Social responsibility Philosophy of social number and composition of the board of directors comply with the requirements of laws and regulations and the Articles of
Anti-corruption
Investors management system responsibility
Economic performance and Association . By the end of 2020, the board of directors consisted of 9 members, including 3 independent directors and 4
Corporate governance Investor interest protection
allocation female directors. The board of directors are responsible to the shareholders, report to the general meeting of shareholders,
implement the resolutions of the general meeting of shareholders, and exercise the decision-making power on all major
matters of the company. The audit committee, remuneration and assessment committee, strategy and investment
Customer service committee and nomination committee under the board of directors all duly performed their duties during the reporting
Customers Network and information Product quality R&D and innovation period. The corporate governance of the company in practice complies with the requirements on normative documents
security
regarding the governance of listed companies issued by China Securities Regulatory Commission and Shenzhen Stock
Exchange, and the company has not received any documents relating to administrative regulation measures adopted
by regulatory authorities against the company. During the reporting period, the company held 22 meetings of the board
Occupational health and Employee training and
Employees Employee rights and care of directors and 23 meetings of the committees under the board of directors (including 8 meetings of the strategy and
safety career development
investment committee, 8 meetings of the audit committee, 5 meetings of the nomination committee and 2 meetings of the
remuneration and assessment committee).
Greenhouse gas emission
and management Resource utilization The board of supervisors consists of 3 members. In accordance with the Procedure Rules of the Board of Supervisors ,
Environment Environmental management
Supplier environmental Discharge and wastes supervisors of the company supervised and expressed independent opinions on major matters, related party transactions,
assessment financial status, performance of directors and managers of the company, to protect the rights and interests of shareholders.
During the reporting period, the company held 12 meetings of the board of supervisors , and the board of supervisors had
no objection to the supervision matters during the reporting period.
Society Public welfare Community development Targeted poverty alleviation
The senior management of the company consists of 10 members (3 of them were directors). The general manager is fully
responsible for the operation of the company, and was appointed by and responsible to the board of directors.
Information Disclosure and Communication with Investors
The company attaches great importance to the information disclosure and communication with shareholders and creditors
to ensure that all investors are kept informed of the major developments affecting the company's business status and gained
access to the information about the company. In accordance with the provisions of the Company Law, the Securities Law,
the Administrative Measures for Information Disclosure of Listed Companies, the Rules on Stock Listing of Shenzhen Stock
Exchange , the Guidelines on the Normative Operation of the SME Board of Shenzhen Stock Exchange and other laws
and regulations, the company formulated the Administrative Measures for Information Disclosure of Tianjin Zhonghuan
Semiconductor Co.,Ltd. (amended for the fourth time at the 36th meeting of the 5th board of directors on March 26, 2020) ,
which stipulates the process of information disclosure of the company as well as the procedures of information collection,
disclosure and confidentiality in details, and standardizes the collection management and information disclosure behaviors of
major information within the company. The company issues information to investors through various meetings, publications
and online platforms, including annual general meetings, extraordinary general meeting, annual reports and interim reports
issued regularly, as well as announcements, update, press releases, etc. Information about the company is accessible in China
Securities Journal, Securities Times , or on CNINFO’s website at http://www.cninfo.com.cn and other platforms. During the
reporting period of 2020, the company disclosed 221 announcements, the contents of which are true, accurate and complete
without any misrepresentation, misleading statement or material omission, and there was no violation of or inconsistency
with relevant regulations in actual operation. In terms of information disclosure in 2019, the company was graded B in annual
appraisal of information disclosure of listed companies by Shenzhen Stock Exchange.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
The board of directors of the company attaches great importance to the management and maintenance of investor relations, Remuneration and Equity Incentive
sets up a favorable IRM operation system, expands the responsibility of investor relations management to the company's
controlling shareholders, the management and sponsor institutions, and deepens the scope of investor relations management The company has established a sound performance assessment system and remuneration policies for senior management,
to institutional investors, strategic investors, small and medium-sized investors and other investors. The company maintains whose income is directly linked with their work performance. The remuneration and assessment committee of the board
continuous communication with the capital market in various forms, such as investor hotline, irm.cninfo.com.cn of Shenzhen of directors is responsible for conducting the year-end appraisal on the working ability, performance and completion
Stock Exchange, online performance briefings and on-site reception of investor research. In 2020, the company held 4 general of responsibility objectives of the senior management, formulating the remuneration scheme and submitting it to the
meetings of shareholders, or extraordinary general meeting. Meanwhile, the company held investor presentation and media company's board of directors for approval.
briefings according to major projects, actively safeguarded investors' rights and interests, effectively communicated about
major matters of the company, conducted on-site communication about major matters of the company, and answer questions The company continues to improve the medium and long-term incentive mechanism, to improve the benefit sharing
from media organizations on site. We received investors to visit and research, and participated in the strategy meetings, mechanism between workers and owners, achieve the consistency of the interests of the company, shareholders and
roadshows and reverse roadshows held by securities companies. We answered 1500 calls via investor hotline, answered 391 employees, facilitate all parties to pay common attention to the long-term development of the company and create value
questions from investors on irm.cninfo.com.cn, and received over 800 investors through performance briefings. In 2020, the for shareholders. It further improves the corporate governance structure, optimizes its long-term, effective incentive
company won the "11th Tianma Award for Investor Relations of China's Listed Companies - Best Investor Relations Award and and restraint mechanism to ensure stable and healthy development in the long run. It improves the incentive system of
Best New Media Operation Award" for its investor relations. the management in both the company's headquarters and its subsidiaries, fully motivates the initiative and creativity in
employees, attracts and retains excellent management talents and core business personnel to enhance the cohesion of
employees and increase the competitiveness of the company. The company formulated the Equity Incentive Fund Plan of
Tianjin Zhonghuan Semiconductor Co.,Ltd. (2018-2022) on September 5, 2018 and made amendment on March 26, 2020.
Equity Incentive Plan
The company formulated the equity incentive plan in accordance with the regulations in the Company Law of
the People's Republic of China , the Securities Law of the People's Republic of China , the Guiding Opinions on
the Pilot Implementation of Employee Stock Ownership Plan by Listed Companies , the Guidelines No. 4 on
Information Disclosure of Listed Companies of Shenzhen Stock Exchange - Employee Stock Ownership Plan
and other relevant laws, administrative regulations, rules, normative documents, and the Articles of Association
of Tianjin Zhonghuan Semiconductor Co., Ltd. (hereinafter referred to as the "Articles of Association ").
In order to deepen the three system reforms of the company and establish a long-term incentive mechanism,
formulation of the Equity Incentive Fund Plan (2018-2022) was considered and adopted at the 15th meeting of
the fifth session of board of directors and the second extraordinary general meeting in 2018.
Performance Briefings 1. According to the Annual Incentive Fund Withdrawal and Allocation Scheme 2018 considered and adopted
at the 24th meeting of the fifth session of board of directors and the annual general meeting of shareholders in
2018, the amount of incentive fund withdrawn by the company in 2018 was RMB12,839,126.54 (before tax),
which was used for the incentive participants to subscribe for the employee stock ownership plan in 2019. 452
people participated in the plan, contributing a total amount of RMB23.8346 million.
2. According to the Announcement on the Annual Equity Incentive Fund Allocation Scheme 2019 considered
and adopted at the sixth meeting of the sixth session of board of directors of the company, as well as the
realization of main business performance in 2019 and the results of the company's individual performance
assessment, the remuneration and assessment committee under the board of directors determined that the
number of participants for the incentive fund in 2019 shall not exceed 464 (excluding the reserved shares of the
employee stock ownership plan). Based on this, the allocation scheme of the incentive fund in 2019 was drawn
up. The allocation of the reserved shares was submitted to the board of directors for deliberation and decision
by the remuneration and assessment committee under the board of directors.
Investor strategy meeting Awards granted
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Comprehensive Risk Management Main Operational Risks and Countermeasures of the Company
Risk Categories Risk Contents
Internal Control and Comprehensive Risk Management
The company formulates strategic objectives from top to bottom, decomposes
The board of directors of the company is the highest decision-making body for internal control evaluation. The board of Strategic planning risk them appropriately, and implementes them into the specific business modules
directors is responsible for establishing, optimizing and effectively implementing internal control, holding regular board of the company to ensure achievement of the strategic objectives
meetings to discuss major issues in the construction of internal control and making decisions. The audit committee
under the board of directors is responsible for leading the internal control work of the company, reviewing the internal Talent reserve, sales and procurement, information security, R&D, intellectual
control design of the enterprise, supervising the effective implementation of internal control, leading the self-evaluation Operative management risk
property and engineering management
of internal control, communicating and coordinating with intermediaries, etc., and authorizing the Audit Department to
be responsible for the specific organization and implementation of internal control evaluation. The board of supervisors
supervises the establishment and implementation of internal control by the board of directors. The management at all levels Financial risk Capital flow, exchange rate fluctuation and foreign investment
and subsidiaries are responsible for implementing internal control evaluation, as well as publicizing and encouraging the
internal functional departments and all their employees to assume corresponding responsibilities and play active roles in the Environment and safety Environmental protection, safety inspection and occupational health
process of establishing and implementing internal control.
The company enhances life-cycle policy management to improve internal control system. All functional departments Internal Audit
constantly update the rules and regulations to improve the internal control system in such ways as new compilation, revision,
merger and repeal, and specified rules and regulations into the process, include them into control measures for compulsory In the internal control management and evaluation, our Audit Department adheres to the principle of "checking errors and
implementation. Under the guidance of the board of directors and the audit committee, the Audit Department carries out correcting frauds" and "preventing errors and frauds" simultaneously, and gives full play to the daily supervision role of
special audit work and followes up on onrectification. In 2020, the company continuously improved the internal control system internal audit in the whole process, namely before, during and after the events.
by drawing up the Authorization Manual, optimizing the business process, improving and updating the company's internal rules
and regulations, and building the risk awareness among all employees. In 2020, the Audit Department made every effort to promote business process optimization and risk identification, and
included business risk control measures into the information system, in combination with the company's current construction
of informatization. We assessed and evaluated the effectiveness of the design and the implementation of internal control for
Informatization of Internal Control Management key business and important matters, and urged establishment of the risk control mechanism. We constantly strengthened
the audit supervision over joint venture companies, and promoted companies to safeguard their legitimate rights and
interests and increased investment returns. We kept audit supervision over the company's major construction projects,
In combination with the company's digital transformation, the Audit Department makes every effort to promote conducted supervision evaluation on the service level and capability of key projects and related parties, and elevated the
business process optimization and risk identification, includes business risk control measures into the project management. We conducted audit evaluation on the authenticity, rationality and appropriateness of management
information system, and effectively improves the company's informatization management level of risk prevention. expenses of each business flow, reducing the fraud risk and expenses, improving the management efficiency and capital
utilization rate, and facilitating the process optimization and system improvement.
At the end of 2019, the Information Center of the company carried out overall planning and collaborative
construction for the company's informatization work based on the company's strategic planning, deployed and
built an information system with MES as the business back structure, ERP as the business middle structure, and Internal Audit Improved Effectiveness of the Internal Control System
EC as the business front structure. By integrating such five modules in ERP as sales, procurement, planning and
production, human resources, and financial management with EC system and MES system, it effectively solved
the problem of "information island" and realized the end-to-end management and control of business. The Audit Department supervises implementation of the internal control system at all levels of the company via
special audit projects of the company and its subsidiaries, and continuously improves and optimizes the internal
In the process of implementation, the Audit Department gives full play to the functions of internal control and control system of the company based on the problems identified in the special audit, so as to realize the closed-
management, cooperates with the project team to adjust and optimize the existing business processes, fully loop management of internal control. The company penetrates the internal control into its various business
identifies the business risks and includes the risk prevention and control measures into the information system, processes and operational links, covering all departments and posts, to achieve three-dimensional, multi-angle
focusing on 7 first-level processes, 50 second-level processes and 172 third-level processes sorted out, and and all-round risk prevention and control.
further improves the standardized, normalized, processed and lean management and business operation of the
company, and practically enhances the company's management and control ability, risk resistance ability and
sustainable development ability. It focuses on the optimization of processes in such five aspects as "finance,
sales, procurement, production planning and management, and human resources”, and enhances the risk
prevention ability and management efficiency of the company. Anti-corruption and Business Ethics
The company adheres to the concept of of "addressing both the symptoms and root causes of corruption with combined
During strategic transformation of the company, the board of directors conducts on-going risk assessment, and improves the measures of punishment and prevention, and giving priority to prevention", and implementes the construction of Party style
internal control system to serve the demand on risk management and strategic development of the enterprise in context of the and clean government and anti-corruption management. The company sets up the Discipline Inspection and Supervision
industry transformation and the company reformation. The company creates an integrated framework of risk management from Department to supervise and manage business ethics, anti-corruption and other aspects of discipline and law-abiding,
the aspects of environment control, goal setting, event identification, risk response, risk assessment, activity control, information and formulated a series of policies, including the Regulations on Integrity and Self-discipline Among Leading Members ,
communication and monitoring, and the internal control system gradually shifted from the financial system to the company's the Several Opinions on Standardizing Operation and Management Acts According to Law, the Opinions on Standardizing
comprehensive risk management to cope with various risk factors such as operation, finance, market and law. the Decision-Making by Leading Groups on "Three Importances and One Greatness" , the Implementation Measures
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Zhonghuan Semiconductor 2020 Social Responsibility Report
for Deepening and Standardizing the Construction of Anti-Corruption in Enterprises , the Implementation Rules for the
Management of Remuneration for Duty Performance and Business Expenditure of Principals in Zhonghuan Semiconductor Strengthen Daily Supervision to Prevent Misuse of Corporate Vehicles
and Its Subsidiaries , and the Internal Supervision and Management System for Discipline Inspection and Supervision
Cadres in Zhonghuan Semiconductor.
In order to strengthen daily supervision on the use of corporate vehicles and prevent misuse, the Discipline
Inspection Commission of the company sorts out the use of corporate vehicles of the company and its wholly-
For internal management cadres, in order to strengthen internal control, guard against operational and ethical risks, and
owned and holding companies. Since 2007, the joint venture company has carried out reform on corporate vehicles,
promote diligence, integrity and self-discipline of personnel in key positions, the company formulates management measures
in combination with the actual development and management of the company. The company has continuously
for personnel in key positions. As for the management, rotation and supervision of key posts, the company focuses on
optimized and improved the management system of corporate vehicles, strengthened the management and control
supervision of leading cadres, cadres and other important personnel in key posts, and strengthens supervision over the
of daily vehicle use, and promoted the institutionalization and standardization of the use of corporate vehicles. First,
performance of duties and arrangements for accountability investigation. 295 leaders and cadres signed the Letter of
we strictly implement the corporate vehicle management policy. In 2016, according to the Guiding Opinions of Tianjin
Responsibility for Integrity Practices by Cadres and 788 persons in key posts signed the Letter of Commitment on Integrity.
Zhonghuan Electronic Information Group Co., Ltd. on the Management Reform of Corporate Vehicles (J.Z.D.B
[2016] No. 74) , the company timely revised and improved the Vehicle Management Regulations in implementation.
For external suppliers, in order to promote integrity with business partners and prevent integrity risks, the company has
In 2017, according to the Notice of Zhonghuan Electronics Group on Further Standardizing the Reform of Corporate
formulated a code of conduct for integrity in accordance with the Contract Law of the People's Republic of China, the Law
Vehicle System (J.Z.D.B [2017] No. 74), we further carried out the reform of official vehicles and strictly implemented
of the People's Republic of China on Anti-Unfair Competition, the Criminal Law of the People's Republic of China and other
the requirements of "vehicle reform". In 2019, for the company's temporary vehicles under special circumstances,
specific requirements of relevant laws and regulations, and in combination with the spirit of the Eight Regulations of the
the company further refined and standardized the management procedures of corporate vehicles, clearly stipulated
Central Committee as well as relevant requirements of integrity practices. In 2020, we signed agreements on the integrity
the approval process of vehicles under emergencies, and established recording book to "plug the loopholes" in the
code with 240 relevant parties.
management of corporate vehicles.
In 2020, the company continuously launched initiatives for and provide education to all employees on integrity practices. It Second, we strengthen and standardize the basic management. The company assignes special personnel
adhered to the publicity of integrity practices, and published articles on clean government through the Intranet; organized to check the number ofcorporate vehicles, to ensure strict control over the number of corporate vehicles
anti-corruption training and conducted regular visits and spot checks. and standardize the management and arrangement of the use of corporate vehicles. We strictly controll the
operating cost of corporate vehicles, arrang a special person to keep the gas cards, and strictly implement the
relevant regulations of vehicle travel approval, registration system, storage in holidays, etc.
Third, we strengthen the supervision and accountability. The company strictly manages the use of corporate
vehicles and resolutely forbid private use of corporate vehicles. The Discipline Inspection Department carries
Normalized Publicity and Training of Anti-corruption out special inspection and supervision on the use of corporate vehicles from time to time, and resolutely
punishes violations of the company's regulations on the management of corporate vehicles in accordance with
the company's management regulations.
1. We strictly implement the spirit of the Eight Regulations of the Central Committee, emphasize "early greeting" and
"early warning" at important time points, and posted articles about integrity on WeChat at each important point.
2. We resolutely implement the policy of travel filing and official vehicle out-of-service for leading cadres on New
In order to standardize management of complaints and reports, the company provides such clear reporting channels
Year's day, Spring Festival, Tomb Sweeping Day, Labor Day, Dragon Boat Festival and other holidays, and completed
as e-mail, telephone and mailbox, and encourages employees and external personnel to report to the Internal Audit
the prevention against and supervision over "formalism, bureaucratism, hedonism, and extravagance" in holidays in
Department or the audit committee on briberies, extortion, frauds, money laundering and other corruption violations in
2019.
corporate operation.
3. We carry out the integrity training activity of "Knowing What to Respect and When to Stop While Being Upright and
Responsible", and further deepen the education on the theme that "remain true to our original aspiration and keep our
mission firmly in mind”. In order to further improve the political standing of the company's leading cadres, strengthen Report Phone and Email of Zhonghuan Semiconductor
the "red line" consciousness and responsibility, Professor Zhang Hongxia from the Party School of Tianjin Municipality
was specially invited to give a lecture, and 270 leading cadres at all levels of the joint-stock company attended the Reporting hotline: 23789766-3228 Reporting email: jiwei@tjsemi.com
lecture.
4. The Secretary of the Party committee of the company talked about integrity with leaders and cadres at all levels
In terms of whistle blower protection, the company is responsible for the fairness and impartiality of the reporting process
for 270 times. In order to strengthen the professional ethics cultivation of leaders and cadres at all levels of the joint
and results and strictly protectes the privacy of and report contents by the whistle blowers.
venture company, the company requires them to keep a clear mind by "always keeping three points", consciously
accept supervision by "treating three points correctly”, always be upright and self-disciplined by "taking initiatives in
three aspects", and "consciously controlling themselves in three aspects". Anti-corruption Supervision and Report Handling Procedures
5. In order to further spread the integrity culture, pass on the integrity family style, create an integrity atmosphere,
build a new platform for the construction of integrity culture, and actively guide Party members and cadres to
"advocate, respect and uphold integrity", the company specially organized the activity of "Qingfeng Readers", which
1 2 3 4 5
attracted a total of 37 people to upload their works. Register the Arrange special Complete Hold a special Give feedbacks to
reported cases personnel or set investigation meeting to the informants.
6. 24 fans with calligraphy, painting and embroidery designs to promote integrity awareness were selected for upon receipt. up a special team and evidence review the report
exhibition through an art contest, an innovative awareness campaign in response to the call to correct the "formalism, to know about the collection within the contents and
bureaucratism, hedonism, and extravagance", further promote the construction of Party style and clean government situation, investigate specified period, the investigation
and anti-corruption work, implement the construction of Party style and clean government, further promote the and collect draw preliminary results, and come
construction of integrity culture in the company. evidence. conclusions, up with a solution.
and report to the
management.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Creation and Distribution of Economic Value Making Breakthroughs and
Continuous Development of Main Business
Leading Product Innovation
R&D and Innovation
As early as in 1958, the company began to manufacture semiconductor materials. Since 1981, as one of the earliest
enterprises engaged in the R&D and production of solar monocrystalline silicon in China, it has formed a unique dual
industry chain of semiconductor materials - energy-saving semiconductor devices and new energy materials - high-
efficiency photovoltaic power station, and actively promoted the diversified and joint development of new materials and The company focuses on R&D and innovation, vigorously invests in product technology R&D, continues to develop product
financial venture capital. Moreover, it successfully completed a number of national-level key projects, won a number of patent network, and actively promotes the construction of intelligent factory. Through technical advantages, it continuously
awards, and was rated as one of the most innovative enterprises in the world by Forbes in 2015. industrializes scientific and technological R&D achievements, and maintains its leading position in the industry.
The company takes silicon materials as its main business, focuses on the R&D and production of monocrystalline
silicon. It has built a crystal R&D and manufacturing center in Inner Mongolia, a semiconductor R&D and power product Innovation Driving Development
manufacturing center in Tianjin, and an integrated circuit product manufacturing center in Wuxi, creating a leading silicon
With the concept of "challenging the existing technology, products and ourselves", the company devotes major efforts to
material R&D and production base in China and even in the world.
product technology R&D, and strives to cultivate a high-quality and high-level R&D team with independent thinking ability,
as well as familiarity with the market, R&D and application. By establishing a mechanism of connecting R&D market and
Taking monocrystalline silicon as the starting point and foundation, the application, it promotes high-quality development of the industry. In 2020, the total R&D expenditure of the company
company has positioned itself as a strategic emerging industry, made exceeded RMB900 million, accounting for 4.77% of the operating revenue.
efforts to achieve intensive and extensive development, and formed such
four business sectors as new energy, semiconductor, photovoltaic power The company has 1 national technology center, 3 provincial and ministerial R&D centers, 2 provincial and ministerial key
generation and finance. Through the nationwide industrial layout and laboratories, 8 high-tech enterprises and 1 national technological innovation demonstration enterprise. The company has a
global commercial layout, the company has ranked the first in the country R&D team with more than 800 members, there are 7 people with senior professional titles and more than 200 people with
and the third in the world in terms of comprehensive strength of the senior and intermediate professional titles, including 4 people who enjoy the special allowance of the State Council; there
semiconductor float zone crystal- silicon wafer, one of its main products; are 1 people with doctor's degree or above, and 45 people which account for 23% of the technical personnel have master's
the first in terms of the market share of solar energy efficient single degree or above; a number of international teams of experts and engineers have been employed.
crystal silicon wafer in the world; and has become the representative of
the differentiated and innovative development of Chinese companies as The company has always attached great importance to industry-university-institute cooperation, actively established various
well as a strong competitor in the future market in the photovoltaic power forms of collaboration with universities and scientific research institutes, strengthened exchanges and cooperation with
station and photovoltaic cell - module industry. By the end of 2020, the peers at home and abroad, effectively organized and utilized social resources to serve enterprise innovation, and promoted
company had realized total assets of RMB58.72 billion, operating revenue the development and innovation of industrial technology.
of RMB19.06 billion and net profit of RMB1.09 billion.
Industry-University-Institute Cooperation Projects
Profit Allocation and Dividend Distribution
The company has always been adhering to the principle of giving priority to efficiency and maximizing the interests of Building of the “Joint Research Center of High-end Semiconductor Integrated
shareholders, and delivering the good return on the investment of shareholders. The total cash dividend of the company has Circuits” with the Institute of Microelectronics of the Chinese Academy of
exceeded RMB609 million since its listing. Sciences
The company has successfully developed silicon-based gallium nitride RF power
devices. The products’ performance is close to related products in flagship companies
2018-2020 Annual cash dividend of the company (RMB'0,000) in this field. The products are currently in the stage of online evaluation process and
engineering batch test.
2018 2019 2020
Cash dividend amount 8,355.47 8,355.47 18,197.56 Research on IGBT Chip Technology Research jointly with the Institute of
Microelectronics of Tianjin University of Technology
Cash dividend policy RMB0.3 per 10 shares RMB0.3 per 10 shares RMB0.6 per 10 shares The company has independently developed chips by adopting domestic materials as
well as self-developed device structures and processes. In 2020, it completed the main
design part of IGBT device, single process test, back thinning process, optimized PI
passivation process, engineering batch sheet, static parameter test and package test.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Intelligent Factory Construction
Industry-University-Institute Cooperation with Shandong University on process Adhering to the development orientation of "centralized integration, improved innovation, shared services and collaborative
optimization of "G12 Big Silicon Wafer” intelligence", the company takes intelligentized application as the main line, actively promotes the construction of intelligent
factory, strives to improve the enterprise's ability of centralized sharing, business collaboration, prediction and early warning,
Both sides cooperate to carry out simulation and establish a laboratory. The company
scientific decision-making, and achieves informatization, automation and standardization of operations, providing effective
verifies the simulation results, optimizes processes according to the results elicited,
support for creating a world-class company of semiconductor materials and new energy materials.
and optimizes the selection of parameters in the simulation based on the field test
results as soon as possible.
Through the integration of ERP system, MES system and WMS system, the company has built
Informatization a platform for informatized, digitized and intelligent manufacturing management, to achieve
automatic data collection, automatic equipment control and big data tracking in the whole process
from order receiving to product delivery, and meet customer requirements.
Cooperation with Hebei University of Technology on R&D of Silicon Crystal
Growth Technology Through material warehouse automation + material distribution automation + logistics transmission
The research focuses on R&D of crystal growth, single crystal defects, wafer polishing, system + intelligent transport vehicle + intelligent visual scanning + automatic packaging of finished
wafer detection technology, etc. Automation products, the company achieves highly integrated and flexible manufacturing, and realized the
production process automation during the whole process of intelligent logistics, automatic process
control, automatic product inspection and automatic information collection.
According to the way of digitized factory, the company reorganizes the workflow, redefines the
process of product realization and support, and implements standardized planning in key areas
The company is committed to promoting sustainable development of the industry, actively participates in or presides over Standardization
such as plant layout, process flow, process equipment, production operation, IT infrastructure and
the preparation of more than 10 relevant national standards and industry standards, serves as vice chairman, executive
safety, production plans in the supply chain, and quality management.
director or director in more than 10 industry organizations such as China Electrical Equipment Industry Association (Power
Electronics Branch), China Power Semiconductor Technology Innovation and Industry Alliance, China Semiconductor
Industry Association, etc., and participates in or leads the relevant industrial development activities of governments at all
levels and all sectors of society. In 2020, the company's phase V and G12 monocrystalline smart factory project in Hohhot, Inner Mongolia, G12 slice smart
factory DW project in Tianjin, G12 imbricated module smart factory project in Yixing, Jiangsu, and semiconductor 12-inch
polished wafer project were all put into operation smoothly.
Driving the Photovoltaic Industry into the Era of 210
Equipment Startup of the Benchmarking DW Project of Smart Factory
In recent years, under the dual pressure of efficiency improvement and cost reduction and entry of PERC
technology to the period of stagnation, the increase of silicon wafer size has become a new value growth point In May 2020, the company's equipment of the benchmarking DW project of smart factory was started up, signifying a
of the industry. In August 2019, the company announced the application of semiconductor's 12-inch crystal key step for Zhonghuan Semiconductor to move towards intelligent manufacturing and reflecting the engineer culture
drawing technology in the solar energy industry, and launched G12, a large-size photovoltaic monocrystalline of Zhonghuan Semiconductor. The whole factory was designed according to the Industry 4.0 system, truly realizing
silicon wafer with a difference of 210mm, which was the limit size of the industry. In 2020, the annual output of the smart plant model and promoting high-quality development of the industry.
G12 silicon wafers exceeded 15GW. Meanwhile, the company cooperates with the industrial chain to innovate Leveraging the world's leading comprehensive strength in the field of
and develop production lines, materials, supports, inverters and design schemes supporting G12, and launched monocrystalline silicon wafers, mature production technology and the
G12 imbricated module with high efficiency, high reliability and high-power generation, winning the world's background that market demand exceeded supply, the project aims at
first new version certificate of G12 imbricated module of TV Rheinland. G12 imbricated module has a power creating the world's most advanced and automated 25GW diamond
capacity of 635W, efficiency of 21.1%, LWH of 2305mm × 1303mm × 35mm, and weight of 32kg. Flexible wire slice manufacturing base in Tianjin by integrating resources.
manufacturing concept was adopted in the production. The imbrication size could be adjusted according to Meanwhile, based on the concept of design as a new generation of
the application scenarios and the downstream supporting facilities of the industry, so as to easily meet the intelligent plant, the factory is built with intelligent equipment, modern
development needs of the industry and contribute the wisdom of Zhonghuan to the achievement of affordable management and computerized information, fully reflecting the concept
access to photovoltaic power generation. of "automation, fewer people and high efficiency" through the building
In July 2020, the company, together with 38 photovoltaic companies, established the "600W + Photovoltaic of a benchmark factory in the solar monocrystalline silicon wafer
Open Innovation Ecological Alliance", forming a more free, open and integrated large-scale ecological alliance manufacturing industry for the strategic upgrading of Industry 4.0. After
with industry partners, and jointly opening a new era of photovoltaic industry. Up to now, the 600W + Alliance completion of the factory, the production and operation efficiency will
has owned more than 60 members. increase by more than 70%, and the labor efficiency will increase by 4-5
Automatic Generation of Process
times, further reducing manufacturing cost. Equipment in the DW Project
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Intellectual Property Protection Quality Management System
The company attaches great importance to the protection of intellectual property rights, strengthens the utilization of Referring to the international leading quality management concept, the company has established a quality management
patent information, improves the level of innovation, and actively implements the patent application strategy; appoints full- system covering the whole process of customer services in each production base, and formulated corresponding control
time personnel to be responsible for the patent work; establishes a patent management system to form effective working procedures according to the five main factors affecting product quality, namely personnel, machinery, raw materials,
procedures; invests more capital and manpower in the protection of intellectual property rights, and strives to improve the methods and environment, so as to implement comprehensive quality control. By the end of 2020, the company had
quantity and quality of the enterprise's independent intellectual property rights, and forms an effective patent layout based obtained the ISO9001 quality management system certification in nine subsidiaries, including Zhonghuan Solar, Zhonghuan
on core technology and basic products, as well as a reasonable patent layout with core invention patents as the leading part Xiexin, Zhonghuan Applied Materials, Zhonghuan Huan'Ou, Zhonghuan Huanzhi, Zhonghuan Advanced Semiconductor
and utility model patents as the foundation. Materials, Huanxin Technology and Huancheng Photovoltaic as well as Huancheng New Energy, etc.
Referring to TS16949:2009, GB/T19001-2008 idt ISO9001:2008, GB/T24001-2004 idt ISO 14001:2004, GB/T28001-
2011/OHSAS18001:2007, UL, CE and other certification systems, and according to the company's product R&D Zhonghuan Advanced Semiconductor Materials Promoted the Construction of
characteristics, the company has formulated a series of standardized, sound and perfect rules and regulations, including the Integrated Quality System in Three Places
the Technology Project Management Policy, the Intellectual Property Management Policy , the Internal Appointment Policy of
Engineering Technology Sequence Posts , the Test Management Regulations of the Physical and Chemical Center and the As the company's semiconductor material production base, Zhonghuan Advanced Semiconductor Materials
Provisions on R&D Funds Management . has a center in Yixing, Jiangsu Province and production bases in Tianjin and Inner Mongolia. In order to unify
the quality management standards in the three places, it promoted integration of the quality system architecture
While developing new products, the company applies for patents on the core technology points to form a patent protection in the three places in 2020, organized cross audit and LPA, and established the LLC platform. The overall
layout. We also employ a patent consulting company to conduct enterprise research and training. Through the analysis customer audit pass rate in the three places reached 96.8%.
of existing and industrial patents, the protection blind spots of core technologies are identified, effectively guiding the
orientations of R&D and operation in the company, timely adjusting the industrial layout, and enabling us to catch up with
international cutting-edge technologies. In order to encourage technical personnel to complete the work of intellectual
property protection with quality and quantity, the company grants cash rewards to authorized patent writers according to
Zhonghuan Xiexin Enhanced Traceability of Product Identification
patent types.
As of December 31, 2020, the company had a total of 732 authorized intellectual property rights, including 127 invention Zhonghuan Xiexin has formulated the Product Identification and Traceability Control Procedures , which applies
patents, 582 utility models, 20 integrated circuit layout designs and 2 software copyrights; there were 518 accepted patents, to stages from product development to non-conforming product management, and key elements such as
including 351 invention patents and 167 utility models. products, status, equipment, tooling and vehicles, covering product flow identification and traceability control
from raw material entry, production process, inspection and testing to finished product delivery and recycled
Meanwhile, as a publicly listed company and an innovative enterprise, the company adheres to the concept of "respecting material circulation, etc., so as to prevent product confusion and misuse, prevent and reduce product loss
knowledge, advocating innovation, and being honest and law-abiding", and always believes that respecting intellectual caused by indirect production links; when abnormalities occur during production or after delivery, the formation
property was to maintain market order. The company has formulated the Regulations on Intellectual Property Management , process of product quality is traceable for identifying the causes of the problem and making improvements.
requiring that before carrying out activities concerning intellectual property such as technological innovation, marketing
and management of new products, and external exhibition, the corresponding departments shall conduct novelty check
to determine whether intellectual property infringement will occur; in the R&D and technological transformation of new
technologies, new processes, new products, etc., patent literature shall be made full use of to formulate the correct research
direction and technical route, improve the starting point of R&D, and avoid repeated development or patent infringement
disputes. We fully communicate with the technology owner before using the internationally leading technology to ensure that Professional Testing Capability
the legitimate intellectual property rights are licensed. Since February 2017, the company has introduced SunPower's global
patented high-efficiency imbricating module technology through the joint venture Huancheng Photovoltaic, becoming the The company strives to improve its testing professionalism, strengthen the standardized management of laboratories in
only domestic manufacturer with legal intellectual property license. In 2020, the company did not infringe the patent rights various places, maintain the accuracy and stability of testing machines through spot inspection, PM, calibration, monitoring,
of others. etc., provide timely and accurate testing support for the production line, implement relevant analysis and verification testing
in coordination with production and quality, and provide reliable testing data.
Adherence to High Quality The technology center of Zhonghuan Semiconductor has a complete set of physical and chemical analysis equipment and
testing analysis system from semiconductor materials to semiconductor devices, and own more than 40 sets of advanced
theoretical analysis equipment; the technology center in Hohhot has a complete set of processing and testing equipment
Adhering to the quality policy of "implementing process control and enhancing customer satisfaction", the company required for the production of new energy solar monocrystalline silicon wafer industry chain, satisfying the needs of R&D
implements Total Quality Management through all business processes including R&D, production, sales and customer test of relevant products as well as online tests in daily production.
services, and improves the competitiveness of products and services from such four aspects as management system,
testing capability, customer services and capacity building. In 2020, one-time pass rate of the overall product is 93%.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
A 3-pronged Team Dedicated to Customer Services Guarantee for Network and Information Security
In order to implement the management concept of "customer-centered”, the company sets up a 3-pronged customer
service team composed of representatives from Customer Relationship, Product and Technology, and Delivery and
Zhonghuan Semiconductor has established a Steering Team for Network and Information Security, composed of the party
Services, to provide customer with end-to-end follow-up services before, during and after sales.
secretary of the company, the deputy general manager in charge of informatization work, the main leaders of each sector,
and the main heads of informatization management departments in each subsidiary. The office under the steering team is
The company has formulated the Complaint Management Regulations to ensure that customers' feedbacks on product responsible for implementing the major strategies, decisions, planning, deployment and requirements of the information
quality and returned order are replied and handled in time. According to the regulations, the customer service team follow security organization of the superior unit; organizing and leading the company's network and information security work;
up on the internal handling process in an escalated approach based on the severity of the quality feedbacks (general, major studying and formulating the network and information security development planning for the company; promoting the
and to be approved), classify and summarize all quality feedbacks at the end of each month by production base, product company's construction of network and information security; coordinating, studying and solving major problems related
category and defect causes, and compile and distribute summary data to production bases as data reference, so as to to network and information security in various fields of Zhonghuan Semiconductor; promoting implementation of major
continuously improve the quality work. In 2020, the company received a total of 1,042 quality feedbacks, including 705 strategies, plans and policies for network and information security in superior units.
general quality feedbacks, 0 major quality feedback, and 807 approval feedbacks.
The company constantly improves the management system files in terms of information security, and has formulated
Through direct communication with customers, the customer service team learn about customer satisfaction and Regulations on Network Information Security Management of Zhonghuan Semiconductor to guide each subsidiary.
feedbacks, measure and analyze order delivery, customer feedbacks and other information, and compile and submit Additional rules including the Regulations on Document Security Management of Zhonghuan Semiconductor - Draft and
analysis reports to the strategic team. Based on the analysis report, the strategic team form annual survey to assess and the Emergency Plan for Network and Information System Security Incidents specify the safety management regulations for
analyze customer satisfaction rate from such aspects as business services, pre-sales and order delivery management, the whole life cycle of all the company's working files, and apply to the processes of file classification, file establishment, file
quality assurance and customer services, customer demand management and technical support. According to the survey circulation, file destruction, etc., as well as the disposal of unexpected information security incidents.
results and customer feedbacks obtained from other channels, the strategic team compile the Customer Satisfaction
Analysis Report , put forward measures for dealing with key problems, and urge all parties concerned to organize relevant In 2020, the company implemented the data security and anti-disclosure project in terms of information security
teams and personnel to take corresponding corrective or improvement measures. In 2020, the company invited 148
and infrastructure, and DLP (document encryption), terminal management (USB management) and online behavior
customers to participate in the satisfaction survey. A total of 365 questionnaires were sent out, with a reply rate of 100%
management system were successfully launched. The access policy security control was achieved in ERP (SAP), EC (Pan
and an overall score of 93.53.
micro) and fund management system. Meanwhile, the vulnerability scanning system was deployed and launched, with which
the vulnerabilities of the hosts/servers within the Intranet of the whole group could be scanned. Through construction of the
core data center and enterprise network, as well as AD activity directory planning, information security risks are eliminated
Staff Ability Enhancement as soon as possible.
The company constantly improves the ability of employees, improves product quality through quality improvement projects,
optimizes process efficiency, strengthen the operation of knowledge management, shapes a learning-oriented organization;
promotes the improvement of quality, efficiency and ability as well as quick service response, and constantly improves
Launch of the Document Encryption Platform to Strengthen Information
customer satisfaction.
Security Management
Implementation of Quality Improvement Projects in 2020
The company has launched the document encryption platform (DLP) to realize the management functions such
as encryption of the working files in the Intranet, watermarking and issuance of approval and decryption, which
Zhonghuan Advanced Semiconductor Materials Carried out Continuous Improvement Projects effectively reduced the risk of file disclosure. After the project system was officially launched, the company
organized an information security publicity and training meeting to enhance users' awareness of confidentiality
The base has formulated rules and regulations of continuous improvement projects, publicized and promoted them and security, and train their use of the encryption system.
throughout the factory, and coached and completed 12 improvement projects.
Huancheng Photovoltaic Launched Special Improvement Project on QCC Repair Rate
The repair rate of modules before EL affects not only the rolled throughput yield, yield rate and fragment rate of
modules, but also the workshop capacity. Huancheng Photovoltaic set up a special improvement group composed
of personnel from departments of quality, process, equipment, production, etc., to analyze the main factors
affecting the repair rate. From the aspects of hidden cracks, fragments and cross defects in the battery chip
manufacturing process, the three main influencing factors of humans, machines and materials were detailed, and
corresponding measures were formulated and implemented one by one. The repair rate gradually decreased from
19.2% to 11.81%.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Putting People First and Ensuring Working hours: The standard maximum working hours are generally 8 hours per day
Employees’ Dignity
and 40 hours per week; as required by the unit's production and operation, the working
hours can be extended, generally no more than 1 hour per day; if extension of working
hours is needed for special reasons, the extended working hours shall be no more than
3 hours per day and no more than 36 hours per month; comprehensive working hours:
The average working hours of comprehensive working hours and average working
hours per week shall be basically consistent with the legal standard working hours.
Respect for the Rights and Interests of Employees Working
hours and Overtime: Employees who work overtime on legal holidays shall be paid 3 times; those
who work overtime on working days shall be paid 1.5 times; those who work overtime
holidays
on rest days and granted no compensatory leave shall be paid 2 times.
Protection for the Rights and Interests of Employees Leave: Paid annual leave, marriage leave, funeral leave, maternity leave, sick leave,
etc. shall be subject to state regulations.
The company adheres to the basic idea of putting people first, strictly abides by the Labor Law, Labor Contract Law and
other laws and regulations of the People's Republic of China, formulates the Recruitment Management Procedure , Employee
Management Provisions and other policies, treating the laborers of different nationalities, genders, religious beliefs and so
on equally, and fully ensuring that the employees enjoy equal rights in recruitment, employment, remuneration and welfare, Remuneration: Salary standard shall be regularly adjusted according to the local
training, promotion and other aspects. minimum wages and wage increase guideline at each operation location.
Incentive: The short-term incentives and the medium and long-term incentives shall
The company makes every effort to protect the safety and health of female workers and minors in the production from being be combined. Short-term incentives: positive incentives such as performance reward,
harmed. Referring to the requirements of the Special Rules on the Labour Protection of Female Employees and the Minors phased reward, technical project award, rationalization proposal award and immediate
Protection Law of China, the company formulates the Administrative Regulations on Special Protection of Female Workers reward, as well as negative incentives such as labor discipline, on-site safety, fire
and Minors to prohibit recruiting minors under the age of 16 by verifying the identity certificate of the employee via multiple protection and environmental protection. The medium and long-term incentives include
ways during recruitment, onboarding review, onboarding check-in and so on, and confirm labor taboos and legal rights of employee equity incentives.
Remuneration
female workers in special physiological stages such as menstrual period, pregnancy and lactation. The company forbids and benefits Health care: critical illness relief, well-being assurance plan for female workers
forced labor to ensure that every employee can enjoy rest days in accordance with national laws, regulations and company
Benefits and allowance: benefits for Spring Festival and Mid-Autumn Day, birthday
policies.
benefits, visit of hospitalized labor union members, condolence, visit of employees
in difficulties, visit of employees newly married or pregnant, and visit of employees
The company signs collective contracts and collective negotiation agreement on wages every year, covering all employees, retired.
and pays full social insurance for employees including endowment insurance, medical insurance, work injury insurance,
unemployment insurance and maternity insurance. The company agreed in the collective negotiation agreement on wages
signed in 2020 that "the remuneration accrued in 2020 is expected to increase by 3.17%, and the average salary of the Employee Communication and Care
employees increased by 7.73%".
The company attaches importance to the voice of employees, and establishes smooth communication and feedback
channels through "micro tree hole", opinion box, two-way communication mechanism, factory director reception day
activities etc. It conducts annual engagement research to anonymously collect employees' real ideas, focusing on key
Overview of Employment and Welfare Policy of Zhonghuan Semiconductor influence factors, understanding internal and external gap and its reasons, and improving employee engagement with a
definite object in view.
In 2020, based on the engagement survey results, the company implemented various improvements:
Recruitment principles: openness, equality, competition, comprehensiveness,
appropriateness, avoidance
Strengthen Communication between the Superior and Subordinates through "Three Cups of Coffee"
Dismissal: The termination of labor contract shall be negotiated according to the
working principle of "laws and regulations compliance, reasonableness and fairness". The "Three Cups of Coffee" cultural pass-on campaign is an improvement
Promotion process: for cadre promotion: information release, proposal, review and project initiated by the company to improve the leadership mentoring
Recruitment,
approval, pre-appointment publicity, and notice issuance. General staff: Promotions support. The middle and senior management distribute three thumb-
dismissal
are based on work performance. up cards to each employee every month who may give a like to positive
and
behaviors consistent with the corporate culture orientation, creating more
promotion Promotion channels: appointment or dismissal determined by discussion of the
connections between the superior and subordinates. This campaign
management committee, and promotion proposed by superior units from time to time.
covers 12 companies in Tianjin, Inner Mongolia and Jiangsu. A total of
1,500 cups of coffee full of thanks, praise, sharing and achievement have
delivered among employees of Zhonghuan Semiconductor.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Work-life Balance
Set up Book Bar to Build a Learning Organization
In order to enrich employees' cultural life in spare time, labor unions at all levels of the company and interest clubs organize
Zhonghuan took the lead in setting up "Book bars" in Yixing, Tianjin and Inner Mongolia to hold employee reading various forms of stylistic activities such as basketball, football, badminton, dragon boat, marathon and fun sports meetings to
activities, and set up "English corner", cultivating learning habit by providing a learning platform to enhance their enhance employees' physical quality, cultivate employees' interests and hobbies through singing red songs and baking club
overall ability, and make efficient use of fragmented time. activities; enhance communication between employees and relatives and friends through friendship activities and family
open days activities, comprehensively reinforcing employees' cohesion and creating a happy environment in Zhonghuan.
Diversified Sports Activities
Optimize Plant Facilities to Improve Employees’ Experience
Ground dragon boat competition at New Energy Material Unit
The Photovoltaic Wafer Unit actively follows up the employees' opinions through smooth and unobstructed
feedback mechanism. Employees' dining needs are met through canteen reconstruction and adjustment of the
meal suppliers. Employees' work experience is improved through workspace renovation.
The New Energy Component Unit integrates such channels as workshop billboard, official WeChat account and
publicity banner to strengthen the construction of corporate culture; cups printed with the logo of the company
are distributed to each employee as part of employee care; basic environmental facilities such as roads and street
lamps are improved to ensure tidy and safe working environment.
Football games organized by football club of Zhonghuan Semiconductor Fun sport game at Zhonghuan Industrial Park
Developing Employees' Interests
New canteen of Zhonghuan Huanzhi New self-service retail store in the factory area
In addition, the company regularly holds staff representative meetings to discuss the development of the company. In
January 2020, Zhonghuan Semiconductor headquarters and its subordinate companies held a staff representative meeting
to discuss and review the Implementation Plan for Mixed Reform of the Group Company and the Draft Plan for Employee
Placement of the Company, and finally voted for adoption.
The company pays attention to the special needs of the employees in difficulties and female employees, identifies
employees in difficulties in response to the arrangement assigned by the general labor union of the community, and set up
the archives of such employees to help them in time; In combination with female high-risk diseases, the company provides
Micro marathon at Zhonghuan Industrial Park Baking club of Zhonghuan Semiconductor
the Well-Being Assurance Plan for Female Workers to strengthen the economic capacity of female employees against major
diseases, and alleviate the economic difficulties of female employees caused by diseases.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
The public course is divided into three modules: general skills, personal empowerment and quality system, covering
Enhancing Communication between Employees and Their Families and Friends 11 topics such as computer office software operation, business English, financial management knowledge and project
management, which lays a solid foundation for the long-term development of employees in the company. In addition, the
company invites well-known scholars and the top management of the enterprise to deliver special lectures for employees
to expand their visions. In 2020, the company invited Shen Jiang, a professor and doctoral tutor in the Department
of Management and Economics of Tianjin University to lecture the employees on the trend of industrial engineering
development.
Each of the four colleges specializes in its own thematic courses. Jingzhi College, in line with the development strategy
of the company "Industry 4.0," sets up a skill training center with VR technology to provide training support for smart
manufacturing and lean manufacturing. Jingneng College focuses on the training of front-line team leader and develops
seven subjects including daily management of team, work instruction of subordinates and front-line leadership skills to help
front-line shift leader strengthen management skills and enhance team cohesion. In 2020, Jingzhi College conducted four
Zhonghuan Semiconductor organized "Family Days"
The company held a group date and matched three pairs. lean subject courses and conducted examinations which were attended by 1,468 employees whose pass rate was 86%;
at three facilities.
Jingneng College conducted two training courses for shift leaders. A total of 61 shift leaders took part in the training and the
exam pass rate was 83.6%.
Facilitating Staff Development In order to build a learning enterprise, the company not only improves the internal training system, but also encourages
employees to improve their education and professional skills through continuing education. According to the Employee On-
the-Job Education Management Regulations , the company supports the employee's academic education, professional
The company adheres to the concept of "Everyone has to start somewhere". Oriented with staff capacity and value creation qualification and professional skill certification through financial reward and tuition reimbursement.
as the guide, the company designs multi-channel development path to form major arrays consisting of management,
profession technology, marketing and operation. Employees matching the management, profession or technology
Support category Specific item Applicable object
competence may develop across arrays. Employees are encouraged to transform to versatile skilled talents.
Junior college, undergraduate All employees
In order to accurately and effectively improve the quality of the company's talent construction, the company has set up
Academic Middle-level and above employees,
a Zhonghuan University with nine directions in four colleges. The university on one hand provides public courses to all
education Master, doctor or employees in key positions designated
employees with the aim of developing universal talents in line with the enterprise culture, and on the other hand formulates
targeted teaching contents and carries out training plans for employees of different job levels and positions, so as to by the company
cultivate more professional talents for the enterprise. Patent agent
Certified Public Accountant
Training
Professional Subject to post requirements without post
Principal: Shen Legal professional qualification
Management Haoping qualification level limitation
Human Resources Registered Safety Engineer
Department/
Talent Secretary Department Executive Principal: An Yanqing
Development
Primary registered construction engineer
Six Sigma - green belt
Assessment
Center Six Sigma - black belt
Jingguan College Jingzhi College Jingcai College Jingneng College (Tianjin,
(Tianjin campus) (Yixing campus) (Tianjin, Yixing) Yixing, Inner Mongolia) Six Sigma - black belt master
Resource
Center
Professional TOPIK Korean language proficiency test Subject to post requirements without post
skills level limitation
Lean manufacturing major
JLPT Japanese language proficiency test
Intelligent manufacturing
New employee induction
Semiconductor material
Financial management
Party building and
Shift leader major
enterprise culture
Cadre training
Device major
IELTS/TOEFL
training
major
major
BEC Business English (Vantage and Higher)
Internal auditor
Eligible employees can apply through OA system. The qualified employees are paid the subsidy or tuition reimbursement
Resource Sharing Course Library Lecturer Library Online Learning Case Library
according to the application record and the subsidy plan which have been announced and approved by the leaders
Center 1. Internal trainers 2. College professors 3. Industry experts 4. Learning platform of Zhonghuan University at various levels. In 2020, the company issued a pay subsidy for on-the-job education to 23 employees ranging from
5. Application of coaching techniques
department directors to general staff.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Cultivate Industry 4.0 Talents
At the workshop with four display screens, two
keyboards and a piece of glass, workers are busy.
Sitting at his station, Yan Xiong is monitoring data
on the display screen in real time, while his hands
wander between two keyboards, methodically
obser ving the operation of 192 single - cr ystal
furnaces. As a centralized control engineer at the
Zhonghuan Semiconductor Phase IV factory, Yan
has already mastered the skill of "multitasking"
and keyboard operation. Originally one person
operated 96 devices; today one person operates 192
devices, which is not only the progress of personal
The director of the Committee leads the team to organize holiday safety inspection to ensure stable production safety during special and
professional ability, but also the embodiment of sensitive period of holiday.
Zhonghuan Semiconductor's adherence to the
concept of Industry 4.0 over the years.
Centralized control technology is an important initiative of Zhonghuan Semiconductor in the process of promoting
Industry 4.0, as well as an important embodiment of the "people first” belief behind Zhonghuan Semiconductor's The company has formulated safety management manual and 27 company management regulations based on various
adherence to industry 4.0. In the concept of Zhonghuan Semiconductor Industry 4.0, returning to human value occupational health and safety production laws, regulations and standards, determined safety production objectives,
is a very important link. It is a theme that Zhonghuan Semiconductor has been exploring that "respect and value adopted process methods, and made the system operate effectively and go through continuous improvement via the
every employee", respect blue collar workers, and enhance the contribution value sense of on-site employees monitoring and measurement of the system. In 2020, the company successfully achieved various safe production goals.
like Germans. And it is also an everlasting topic how to endow every employee with a sense of participation and
achievement in the process of organizational development. During the company's development, the return to
human value is to "help employees master new skills to meet the requirements of future work". It's necessary to
100 % 100 % 100 % 0
better empower employees, provide ability guarantee for employees' career, help employees and enterprises
grow together, and create a "community of destiny" between employees and the enterprise. For Zhonghuan
Semiconductor, the return to human value is to advocate the spirit of craftsman, encourage employees to be
diligent and inquisitive in their work, and believe that every position has the possibility of becoming a craftsman. Rate of employees’ Investigation and Rate of participation in Number of work-related
participation in safety rectification of safety the emergency plans for injuries
trainings hazards production safety accidents
Promoting Occupational Health and Safety
Management of Occupational-disease-inductive Factors
The company adheres to the safety management policy of "abiding by laws and regulations, putting people first, production
safety and reducing occupational risks", implements the national laws and regulations and standards on occupational According to relevant laws and regulations, the company regularly invites third parties to inspect the occupational health
health and production safety such as Safe Production Law and Occupational Disease Prevention Law, and establishes the and safety items to ensure the safety compliance of the Company's operations. Among them, the company carries out
occupational health and safety management system according to the GB/T 45001-2020 edition standard. 7 subsidiaries occupational-disease-inductive factors detection on time every year, identifies the occupational-disease-inductive factors
have obtained the ISO 45001 occupational health and safety management system certification. and concentration generated by each production unit, analyzes the degree of its hazard and its impact on the health of
employees, evaluates the occupational-health management status, and the occupational-disease-inductive protection
measures and their effects, and suggests on the occupational-disease-inductive control measures for the systems or units
Health and Safety Management System that fail to meet the requirements of occupational-disease-inductive protection. According to the evaluation in 2020, the
occupational-disease-inductive factors of the company mainly come from dust, hazardous chemicals, noises and power
The company has a Safety Production Committee (hereinafter referred to as the Committee), which is composed of the frequency electric field in the production and auxiliary production process.
General Manager, the Secretary of the Party Committee, the Deputy General Managers and the main principals of each
subordinate company/functional department. The Committee holds at least one meeting every quarter to study, deploy and The Company has formulated the Occupational Disease Prevention Plan and Implementation Plan which covers the
summarize the safety management work of the company and coordinate and solve major problems in production safety. production unit's occupational disease prevention responsibility system, workplace occupational disease hazard protection
The Committee has set up an office at the Safety and Environmental Protection Department of the company. The Director of work, declaration of occupational disease hazard item, daily detection of occupational-disease-inductive factors,
the Safety and Environmental Protection Department is the head of the office and is responsible for the daily work of safety occupational health monitoring and protection, announcement and notification of occupational disease hazard and
production. workplace hazard warning, and implements various plans and programs to normal production and operation.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
According to the above scheme, the company has formulated Safety Education and Training Regulations which include the Chemicals Management
following contents: occupational health laws, regulations and standards, occupational health management and protection
related knowledge, post occupational health operation regulations, major dangerous accidents and emergency rescue. The The Company has continuously optimized the chemical management system, formulated the Hazardous Chemicals
training objects include management personnel, new employees, on-the-job employees, employees transferred between Management Regulations , identifying three categories of hazardous chemicals involved in the production process, namely,
workshops, and workers in positions with serious occupational-disease-inductive hazards. The safety education and training special-purpose gas, liquid chemicals and solid chemicals, and specifying the safety management during purchase,
activity was carried out 413 times in each plant area of the company in 2020. transportation, storage, use and disposal process of chemicals.
The company sets up separated chemical warehouses for different chemicals to avoid hazards and cross effects. The
chemical supply system adopts automatic and sealed operation and transports chemical reagent through pipelines.
Employees are mainly responsible for patrol inspection and material replacement, resulting in short contact time and low
contact frequency, so as to reduce the exposure hazard rate of workers. Forced ventilation and discharge of toxics are
Corporate-wide Safety Knowledge Contest carried out through mechanical fan. In the production process, it is strictly required that personal protection should be worn
and the operating procedures should be followed to minimize workers’ exposure to harmful substances.
On June 22, 2020, Zhonghuan Semiconductor held a safety knowledge contest. There were six teams In order to prevent serious and extraordinary accidents, the company has formulated Emergency Rescue Plan for
participating in the contest, including sectors of crystals, wafers, modules, semiconductor materials, Production Safety Accidents , which includes special emergency plan for hazardous chemical leakage, special emergency
semiconductor devices and new energy sources. This contest not only enriched the safe production month's plan for acute poisoning, special emergency plan for limited space accidents, site treatment plan for high-temperature
activity form but also enhanced the safety culture atmosphere of the company. scald and low-temperature frostbite, etc., and the plan stipulates the establishment of emergency rescue command center,
leading groups and their responsibilities, as well as treatment measures after the accident and emergency evacuation of
personnel. In 2020, the chemical-related emergency drills were carried out for 17 times in each plant.
Emergency Drills of Subsidiaries Organized by Zhonghuan Semiconductor
In June 2020, Zhonghuan Semiconductor organized the subsidiaries to carry out emergency drills which took
the fire caused by the leakage of hazardous chemicals as the hypothetical accident. The drills included the
emergency treatment of the leakage, personnel evacuation and fire extinguishing, etc., so as to improve the
organization, command, quick response and disposal ability of the subsidiaries in response to the emergency.
Front-line Occupational Health and Safety Training
In 2020, the company successively conducted training on occupational health and safety and protection for
front-line management personnel and assembly line workers in each plant area, and introduced the hazards of
occupational disease and basic concepts of occupational diseases, prevention methods of hazard factors, types "integrated emergency rescue drill for fire accident of
vacuum tail gas equipment in power center" organized at
of labor protection articles and their use. Simulated Escape Drill organized at Yixing Industrial Park Inner Mongolia Photovoltaic Industrial Park
Emergency Plan Drill for Nitric Acid Special-purpose gas leakage emergency
Leakage carried out by Huansheng Solar drill conducted by Zhonghuan Huanxin
29 30
Zhonghuan Semiconductor 2020 Social Responsibility Report
Building a Better Society with
The subsidiaries Huanxin Technology, Tianjin Zhonghuan Advanced Semiconductor Materials, Tianjin Huan'Ou, Zhonghuan
Solar, Zhonghuan Advanced Semiconductor Materials, Huansheng Solar and Zhonghuan Applied Materials are all key
Sustainable Development
pollutant discharge units announced by the local environmental protection department. They strictly comply with relevant
regulations, high standards and strict requirements in terms of construction and operation of pollution prevention facilities,
and thoroughly deploy environmental protection.
Building a Green Factory Identification Table of Main Environmental Factors of Zhonghuan Semiconductor
Whether a provincial key
Value chain link of products Operating subject involved
Environmental Management System pollutant discharge unit
Mining and processing of raw materials — —
With the concept of "keeping water clean and mountains green", the company has formulated the corporate vision of
"environmental friendliness, employee support, government respect and customer trust". It sets up strict objectives for Huanxin Technology (Tianjin City) Yes
ecological and environmental protection, adopts the ISO14001 environmental management system, and has formulated the Tianjin Zhonghuan Advanced
Yes
Regulations on the Management of Environmental Protection to implement the dual assessment mechanism of "objective Semiconductor Materials (Tianjin City)
+ process" for environmental protection work. The company focuses on production management and gradually transitions Tianjin Huan'Ou (Tianjin City) Yes
to product life cycle control and risk control. It is committed to improving the environmental performance of every link in R&D and design, production and
the whole process from the entry of raw materials into the factory, to the production and manufacturing, and to the waste Zhonghuan Solar (Inner Mongolia
Yes
management. In terms of supervision and management, we set up an environmental tracking system to sort out and make manufacturing, warehousing and Autonomous Region)
a list of the matters found in daily management that do not conform to environmental protection regulations, and track and transportation Zhonghuan Advanced Semiconductor
Yes
record the follow-up rectification by means of regular reminders of the system. Materials (Jiangsu Province)
Huansheng Solar (Jiangsu Province) Yes
In 2020, the company adhered to the purpose of innovative development and green development, actively took effective
Zhonghuan Applied Materials (Jiangsu
measures to save energy and reduce consumption, and strove to reduce waste emissions. In 2020, the company spent Yes
Province)
RMB292.2 million on comprehensive energy management, environmental protection, etc, and realized clean production
through various group activities of energy conservation and emission reduction. Use, recovery and recycling of products — —
Management and sales Headquarters No
Through the company's internal self-examination as well as the database of Shanghai Qingyue Environmental Protection
Center, by the end of the reporting period, no environmental pollution incidents, punishments on the relevant environment Note 1: For specific environmental risk factors and the components, please refer to appendix 3. A listed company may fill out this form based on its
or major environmental problems occurred in the company and its combined reporting subsidiaries. own operation situation and this table may also be split into two tables.
Analysis Table of Main Environmental Factors of Zhonghuan Semiconductor
Name of
Main resources Main pollutants
Certification about Environmental Responsibility subsidiary/base
Huanxin Energy: electric Exhaust gas: particulate matter, sulfur dioxide, nitrogen oxides, VOCs, other
Corporate name Certification name Time of recent Certification Technology energy, thermal characteristic pollutants (hydrogen chloride, ammonia, sulfuric acid mist,
adoption authority energy, and natural fluoride, chlorine, Ringelman blackness, nickel and its compounds)
ISO14001:2015 Environmental CESI Certification gas Waste water: COD, ammonia nitrogen, other characteristic pollutants (total
Tianjin Zhonghuan Semiconductor Co., Ltd. June 18, 2018 Water source: nitrogen, total phosphorus, pH value, BOD5, fluoride, petroleum, total nickel,
Management System Co., Ltd.
municipal water total silver, and animal and vegetable oils)
Zhonghuan Advanced Semiconductor ISO14001:2015 Environmental CESI Certification supply Harmless wastes: waste pellets and silicon wafers
July 24, 2020
Materials Co., Ltd. Management System Co., Ltd. Raw materials: silicon Harmful wastes: waste mercury lamp, waste photoresist, waste activated carbon
Tianjin Zhonghuan Advanced Material ISO14001:2015 Environmental August 03, CESI Certification wafers fiber mat, waste alkali bag, waste oil, nickel-containing waste liquid, nickel-
Technology Co., Ltd. Management System Co., Ltd. Packages: foam containing sludge, mixed acid waste liquid, empty glass reagent bottle, lead-acid
2018
boxes battery, organic waste liquid and contaminated waste
Tianjin Huan'Ou Semiconductor Materials ISO14001:2015 Environmental January 24, CESI Certification
Technology Co., Ltd. Management System 2020 Co., Ltd. Tianjin Energy: electricity, Exhaust gas: NOx, VOCs, other characteristic pollutants (hydrogen fluoride,
Zhonghuan heat, natural gas hydrogen chloride, ammonia, toluene, and odor concentration)
Tianjin Huanxin Technology&Development ISO14001:2015 Environmental CESI Certification Advanced Water source: Waste water: COD, ammonia nitrogen, other characteristic pollutants (total
Co.,Ltd. April 16, 2020
Management System Co., Ltd. Semiconductor Municipal water nitrogen, total phosphorus, pH value, suspended solids, BOD5, flow, fluoride,
Inner Mongolia Zhonghuan Solar Material ISO14001:2015 Environmental September CESI Certification Materials supply and petroleum)
Co.,Ltd. Management System 07, 2020 Co., Ltd. Raw material: silicon Harmless waste: sludge
DEKRA Testing material Harmful wastes: mixed acid waste liquid, acid mist washing tower packing,
& Certification Packages: foam boxes waste 200L plastic barrel, 5L and below plastic barrel, waste 20L plastic barrel,
ISO14001:2015 Environmental September and cartons empty glass reagent bottle, waste absorbing cotton, waste absorbing sand,
Huansheng Solar (Jiangsu) Co., Ltd. (Shanghai) Ltd./
Management System 26, 2020 Hangzhou DEKRA waste oil, waste rubber, mixed acid waste liquid (including hydrofluoric acid),
Certification Co., Ltd. waste 200L iron barrel, waste polishing wax waste liquid, waste activated
ISO14001:2015 Environmental CESI Certification carbon, contaminated waste, chromium-containing waste liquid and chromium-
Wuxi Zhonghuan Applied Materials Co., Ltd May 01, 2020
Management System Co., Ltd. containing waste water
31 32
Zhonghuan Semiconductor 2020 Social Responsibility Report
Name of
Main resources Main pollutants Resource Utilization Management
subsidiary/base
Tianjin Huan'Ou Energy: electric Exhaust gas: particulate matter, SO2, NOx, VOCs, and other characteristic The energy consumed by the company mainly includes electric energy, thermal energy, and natural gas (and a small
energy, thermal pollutants (fluoride, hydrogen chloride, Ringelman blackness) amount of gasoline and diesel), and water sources consumed mainly includes municipal water supply, reclaimed water, etc.
energy, and natural Wastewater: COD, ammonia nitrogen, other characteristic pollutants (total
gas nitrogen, total phosphorus, pH value, suspended solids, BOD5, flow, fluoride, The company and its subsidiaries have formulated a full set of policy: the Regulations on Management of Energy
Water source: and petroleum) conservation and Consumption Reduction , the Regulations and Manual of Energy Management , and the Water
municipal water Harmless waste: waste steel wire Conservation Management System , etc., which define the principles of energy and water management in line with the
supply Harmful wastes: waste rubber, waste rubber barrel, contaminated waste, mixed principle of energy conservation and consumption reduction. The company carries out source control and continuous
Raw materials silicon acid, waste chemical packaging barrel, waste carbon fiber, waste washing improvement while meeting and improving the production rate, and reduces production costs and promoted sustainable
rods solution
development in harmony with the environment while reducing the environmental impact.
Packages: foam boxes
and cartons
Zhonghuan Semiconductor has also formulated the Responsibility Statement on Energy Saving and Consumption
Zhonghuan Solar Energy: electricity, Exhaust gas: particulate matter, nitrogen oxides, VOCs, and fluoride Reduction, and issued the energy saving index for 2020: 222 tons of standard coal, equivalent to 1.81 million kilowatt-hours
heat, natural gas Waste water: COD, ammonia nitrogen, other characteristic pollutants (total
of electricity, and increasing by 12 tons over the 210 tons of standard coal in 2019. Around this goal, the subsidiaries and
Water source: phosphorus, pH, suspended solids, BOD5, and fluoride)
municipal water Harmless wastes: waste plastics, waste iron, waste wood, waste paper, and production bases carried out a variety of improvement measures for energy saving and consumption reduction technology.
supply sludge
Raw material: silicon Harmful wastes: waste mineral oil, waste oil sludge
material Zhonghuan Huanzhi Energy Saving Projects
Packages: foam boxes
and cartons
Zhonghuan Energy: electric Exhaust gas: particulate matter, NOx, VOCs, other characteristic pollutants [Use of Renewable Energy and Technology Transformation]
Advanced energy, natural gas, (chlorine, ammonia, hydrogen chloride, silane, alkali mist, fluoride, sulfuric acid Installed photovoltaic power station on the factory roof and parking lot, which generated 120,000 kwh/ month,
Semiconductor and thermal energy mist, and non-methane total hydrocarbon) accounting for 0.7% of the monthly power consumption (18 million kwh).
Materials Water source: Waste water: COD, ammonia nitrogen, other characteristic pollutants (fluoride,
municipal water total nitrogen, total phosphorus, suspended solids, and pH)
supply Harmless wastes: waste crystal silicon fragments, waste battery pieces, [Air Conditioning Improvement at Purification Area]
Raw materials: silicon combustion powder, fluorine-containing sludge, sludge originating from domestic
The purification area needs cooling all year round, but it is very easy to freeze and crack the air conditioning coil
wafers sewage treatment, and evaporative crystalline salt
Packages: foam boxes Harmful wastes: ammonia-containing waste liquid, alkali velvet waste liquid, to pump fresh air in when the external temperature is low in winter. It is also a waste of energy to cool down the
and cartons pickling waste liquid, etching waste liquid, alkali washing waste liquid, HPO3- heated up fresh air.
containing cleaning waste liquid, waste activated carbon fiber and waste Zhonghuan Huanzhi closes the fresh air valve and opens the door to the air conditioning unit, so that the
adsorbent
air conditioner can directly pump the air from the air conditioning room into the workshop, to save the
Huansheng Solar Energy: electric Exhaust gas: particulate matter, NOx, VOCs, other characteristic pollutants heat consumption of the coil in the preheating section. In addition, the factory drains the water from the air
energy, natural gas, (chlorine, ammonia, hydrogen chloride, silane, alkali mist, fluoride, sulfuric acid conditioning coil and directs fresh air into the workshop. The improvement can reduce about 40 MW heat load
and thermal energy mist, and non-methane total hydrocarbon) consumption per day.
Water source: Waste water: COD, ammonia nitrogen, other characteristic pollutants (fluoride,
municipal water total nitrogen, total phosphorus, suspended solids, and pH)
supply Harmless wastes: waste crystal silicon fragments, waste battery pieces,
Raw materials: silicon combustion powder, fluorine-containing sludge, sludge originating from domestic
wafers sewage treatment, and evaporative crystalline salt Water Saving Projects at Subsidiaries
Packages: foam boxes Harmful wastes: ammonia-containing waste liquid, alkali velvet waste liquid,
and cartons pickling waste liquid, etching waste liquid, alkali washing waste liquid, HPO3-
containing cleaning waste liquid, waste activated carbon fiber and waste [Water Saving Project of Inserted Machine at Zhonghuan Applied Materials Huanbo]
adsorbent
Zhonghuan Applied Materials has set a cost reduction target of water resource at RMB0.0021 per slice. On
Zhonghuan Energy: electric Exhaust gas: particulate matter, other characteristic pollutants (non-methane average, Huanbo uses 41 tons of water to clean an inserted machines every day. The overflow of the plug-in
Applied Materials energy, and thermal hydrocarbon, and ethanol)
circulating pump on both sides is directed to the sewage station. The overflow water is transformed to effectively
energy Waste water: COD, ammonia nitrogen, other characteristic pollutants (total
utilize the circulating water resources and reduce the tap water consumption and sewage treatment capacity.
Water source: nitrogen, total phosphorus, suspended solids, and pH)
municipal water Harmless wastes: waste filter element, waste RO membrane, waste catalyst, In December 2020, the subsidiary completed theoretical test, and 15 inserted machines were transformed. The
supply waste crystalline silicon rod, waste battery pieces, waste diamond wire, waste average daily water consumption has been reduced from 2,187 tons to 1,535 tons, saving an average of 648
Raw materials silicon resin board, filter cake and sludge originating from sewage treatment tons per day.
rods Harmful wastes: waste activated carbon, waste dust-free paper, and waste ion
Packages: foam boxes exchange resin Meanwhile, the subsidiary also carries out such projects as the formulation of and supervision on workshop
and cartons water standards, the pure water transformation and recycling, and the replacement of spraying with degumming
overflow, reducing the tap water consumption by 773,189 tons, and the sewage discharge by 532,169 tons.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Pollutant Discharge Management
Water Saving Projects at Subsidiaries
Category Treatment method
After purification and absorption through a washing tower,
[Zhonghuan Huanzhi : Transformation Scheme for Sink 0 Water Inlet of Cleaning Machine] Acid and alkaline exhaust gas discharge up to the standard, generate the waste water and
let it enter the sewage treatment system
The overflow water of Sink 4 was used in the Sink 0 of the cleaning machine, and the water inlet temperature
Alkaline exhaust gas (mainly
was 50℃ . Due to the high water inlet temperature, the motor bearing temperature was high and fault frequency Purification through a washing tower
ammonia)
was high. In order to reduce the equipment failures, the Sink 0 of pure water was opened to fill the overflow flow Exhaust gas
of 5L/min, leading to serious waste of water. After adsorption or concentration by means of activated
Organic exhaust gas carbon, carry out purification through catalytic combustion
Zhonghuan Huanzhi took the water of the inserting machine as the water supply source of Sink 0, led the water treatment
supply pipeline from the inserting machine to the water supply pipeline of the Sink 0, and added a ball valve in Dust and exhaust gas (mainly fine
Removal by dust removal device
the middle. The original pipeline of the equipment was still retained as a standby water supply pipeline. It not particulate matters of silica)
only solved the problem of high temperature in Sink 0, but also saved 12,000 tons of tap water per month and After reaching the standard after being treated with the
reduced the tap water cost by RMB 100,000. PH, COD, ammonia nitrogen,
Waste water sewage treatment system, discharge into the designated
fluorine ion, etc.
urban sewage pipe network
[Inner Mongolia Solar Pan Bin: Transformation Scheme for Water Storage Tank Pipelines in Huanbo] Sludge originating from sewage
Entrust a qualified unit to treat (compost or landfill)
treatment
At present, Huanbo cleaning machines adopted two ways of pure water overflow. One is supplied by hot water
Waste products (silicon mud,
from slow pulling tank for inserting piece, and the other is supplied by overflow from rinsing tank of cleaning General solid waste waste silicon wafer, waste silicon Entrust a qualified unit to treat (recycling)
machine. Under the premise of satisfying the normal operation of the insert machine and the cleaning machine's rod, etc.)
overflow, in order to reduce the energy consumption cost, now the pure water in the storage tank of liquid
Consumables (diamond wire,
tank in Huanbo has been changed to tap water for heating and then used by inserting piece machine, so as to Entrust a qualified unit to treat (recycling)
waste crucible, etc.)
reduce unit price of water consumption. Save a tank of pure water overflow, save 11.52 tons of pure water per
Entrust a qualified unit to treat (neutralization and
day per machine, and reduce the monthly consumption of pure water from 4,838 tons to 2,419 tons per unit (the Acid-containing waste liquid
materialization)
overflow flow of the tank is 480L/h).
Waste packaging materials
Entrust a qualified unit to treat (recycling)
(empty barrels, etc.)
Waste filler (waste activated Entrust a qualified unit to treat (landfill, incineration and
Harmful wastes
carbon, etc.) regeneration)
Rubber-containing wastes (waste
Entrust a qualified unit to treat (incineration)
Emission Reduction rubber, rubber barrel, etc.)
Oily-containing wastes (waste
The company and its subsidiaries have formulated complete systems such as the Measures for Reduction of Exhaust Gas Entrust a qualified unit to treat (incineration and recycling)
engine oil, mineral oil, etc.)
Emission, the Waste water Discharge Standards, the Management Regulations on Maintenance of Waste water Treatment
Equipment, the Management Regulations on Outsourcing of Waste water Station, and the Measures for Reduction and
Treatment of Waste water Discharge , the Types and Disposal of Harmless Wastes , and the Regulations on Types and
Disposal of Harmful Wastes and Management of Harmful Wastes Warehouse , and organized employees to learn solid waste
Construction of Responsibility Value Chain
law.
Development of Energy Saving and Environmental Protection Products
In terms of pollutant prevention and control, we have implemented environmental protection regulations and relevant
requirements. In view of the exhaust gas emissions including sulfuric acid mist, hydrogen chloride (HCl), nitrogen oxides Huansheng Solar is committed to the development and integration of G12 large-size silicon wafer technology and high-
(NOx), ammonia (NH3), volatile organic compounds (VOCs) in the production process, we have established the exhaust efficiency imbricated module technology, to build the world's leading imbricated module products with high power and
gas treatment system, all of which meet the management requirements of standard emission, and the designed removal efficiency. Meanwhile, it is engaged in enhancing more reliable and cost-effective manufacturing capacity, and relying on
efficiency of VOCs reaches more than 90%. In terms of waste water discharge, the company has implemented GBT 31962- excellent product value to bring higher return to customers.
2015 (water quality standard for sewage discharged into urban sewers) class B standard since 2017, and reduced the
discharge through recycling of the cleaning water produced in the factory. On June 18, 2020, Huansheng Solar successfully launched
its first G12 high-efficiency imbricated modules off assembly
In terms of pollutant discharge monitoring and information publicity, the company implement online waste water monitoring, line. The new generation of G12 imbricated modules that
and the relevant data are available on the government's environmental information platform to ensure transparent have been launched off assembly line for this time integrate
environmental information disclosure. with the G12 large-size silicon wafer technology as well as the
high-efficiency imbricated module technology, which realized
stronger product performance after reaching the target
output. The module efficiency was more than 21%, and the
maximum output power was more than 600W, far ahead of
the industry level.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Supplier Management Conflict Minerals Management
The company's suppliers include those providing carborundum, chemicals, special gas and auxiliary materials, etc. The company is a semiconductor manufacturer. The types of raw materials provided by suppliers may involve mineral
The company has formulated the Supplier Management System , the Supplier Audit Management System, etc. to materials contained in conflict minerals. Suppliers are required to fill in the Form of Basic Information of Suppliers . Suppliers
standardize the management and process of supplier introduction, review, quality management and improvement, etc. of minerals that overlap with the type of conflict minerals are required to investigate whether the source of mineral conforms
The company's Strategic Management Department, Procurement Department, and manufacturing company share to the RMI requirements as per the RMI website.
clear roles and responsibilities, and jointly participate in supplier management and review.
The company only works with one tin supplier, which is required to provide the certificate of origin of its tin products. The
In daily operation of the company, all the procurement businesses of the company are subject to compliance investigation shows that the materials are all produced in China from mining to processing, and no non-compliant supplier
monitoring throughout the process through relevant approval procedures, including price approval, contract approval has been found.
and payment approval. Ever y quarter, the company's Strategic Management Department conducts sampling
inspection on the procurement business, and carries out compliance walk-through test of relevant business. The Audit
Department conducts annual review to ensure that all work is in strict compliance with the requirements.
Contribution to Social Prosperity
During supplier review, the company focuses on the suppliers' performance in quality, delivery, cost, as well as
environment, employment safety, etc. For new suppliers, in the supplier admittance review, the company reviews
whether the suppliers are certified by ISO14000, OHSAS18000 and other environmental and employee occupational
safety systems, as well as the management of harmful substances; for existing suppliers, the company carries out
annual supplier review and special quality review, and requires that the A-level material suppliers receive on-site The year 2020 marked the end the fight against poverty. In the fight against poverty, Zhonghuan Semiconductor
reviews at least once every three years. continuously leverages its business advantages. By promoting the construction of photovoltaic power stations, it drives the
development of human and material resources in poverty-stricken areas, and realizes the combination of poverty alleviation
Suppliers that fail to meet the environmental or labor requirements required to rectify. If the supplier fails to meet the and development with new energy utilization, energy conservation and emission reduction.
company's management requirements within the rectification period, the company will terminate cooperation with the
supplier. The company actively implements such policies as the Notice of the State Council on Printing and Distributing the Plan for
Poverty Alleviation During the 13th Five-Year Plan Period , the Opinions of the China Securities Regulatory Commission
In 2020, the company conducted on-site review on 31 qualified suppliers, involving their compliance with relevant on Giving Play to the Role of Capital Market to Serve the National Poverty Alleviation, the Opinions of the National
laws and regulations on environment, labor and ethics, their quality management systems, their management of toxic Development and Reform Commission on the Implementation of Photovoltaic Power Generation Poverty Alleviation , and
and harmful substances, etc., and no serious violation of relevant laws and regulations was found. Among them, 6 the Guiding Opinions on Implementation of the 13th Five-Year Plan for the Development of Renewable Energy, and carries
suppliers had non-compliance items in terms of environmental management system. Upon rectification as required by out photovoltaic poverty alleviation projects in Inner Mongolia, Hebei, Yunnan, Sichuan and other regions. According to the
the company, they all met the relevant system requirements and the company's management requirements. industrial characteristics and resource advantages of different regions, Zhonghuan Semiconductor selects the poverty-
stricken areas with photovoltaic construction conditions to actively carry out photovoltaic poverty alleviation projects,
In addition, the company has set up an R&D mechanism process for the reverse integrated product development (IPD), promoting local development in a scientific and effective manner. On the one hand, it makes comprehensive use of land
and established the relationship of joint R&D and revenue sharing for the core materials of new technologies and resources and light resources for power generation to improve the regional environment and power supply structure. On
standards with strategic suppliers, so as to achieve win-win situation between the company and suppliers. the other hand, it subsidizes the poor with power generation income and helps the regions out of poverty. Meanwhile, in
line with the principle of "employing people nearby", the company introduces local graduates and professionals majoring
in electric power, numerical control, etc. to undertake such technical jobs as power station operation and maintenance;
employs local people with financial difficulties but labor ability to weed and clean photovoltaic panels in power stations, so
as to solve some local employment problems according to local conditions.
Win-win Cooperation with Suppliers
As of the end of the reporting period, the company installed 6 ground centralized power stations as poverty alleviation
projects, with a lumpsum investment of RMB1,055.8124 million. The projects have helped 6,901 households without
1. By cooperating with strategic suppliers, the company developed and produced industry-leading and
working capability, each one gaining a poverty alleviation income of about RMB3,000 per year, ensuring a 20-year
commonly used thin wire products (Wire 45) on a large scale in early 2020, so as to reduce the overall cost of
sustainable income for low income family.
silicon wafers.
2. By cooperating with strategic suppliers, they jointly developed the long-life quartz crucible, which could The photovoltaic poverty alleviation projects carried out by the company have achieved the effect of "killing more birds with
increase the service life of quartz crucible by more than 30% in the process of single crystal production, thus one stone" in the aspects of steadily driving the poor to increase their income and get rid of poverty, effectively protecting
effectively reducing the production cost of single crystal. the ecological environment, and actively promoting the supply-side structural reform in the energy field.
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Completed Photovoltaic Poverty Alleviation Projects Completed Photovoltaic Poverty Alleviation Projects
Qinhuangdao Photovoltaic Station Tianjin Photovoltaic Station Zhangjiakou Photovoltaic Station
Zhangjiakou Photovoltaic Station Zhangjiakou Photovoltaic Station
Lincang Photovoltaic Station Anmeng Photovoltaic Station in Inner Mongolia
“Complementation of Agriculture and Light" Enhanced Economic and Social Benefits
In the photovoltaic poverty alleviation project in Xiangzhulin Village, Mengyong Town, Gengma Dai and
Va Autonomous County, Lincang City, Yunnan Province, the company actively created a new idea of
"complementation of agriculture and light", and utilized the spare land between photovoltaic power station
arrays to plant crops suitable for growing on the project site, such as economic crops, forages and Chinese
herbal medicine. Given the characteristics of solar photovoltaic power generation of having neither pollution nor
emission, and in combination with grass planting, the company set up and installed photovoltaic solar power
generation devices on the ground, and planted grass on the land under the photovoltaic supports, which not
only had power generation capacity, but also could provide suitable growth environment for grass and maximize
Hohhot Photovoltaic Station the use of land value, thus creating better economic and social benefits.
In addition, the company actively contributes to the cause of science education. Zhonghuan Semiconductor donated RMB
100,000 to Jiangsu University of Science and Technology, its cooperative unit, for the scholarships and practice cultivation
of excellent students majoring in new energy science and engineering. Moreover, it donated a small power station to
facilitate scientific research of the University.
39 40
Zhonghuan Semiconductor 2020 Social Responsibility Report
Key Performance Indicator
Topics Quantitative disclosures Unit 2020 Topics Quantitative disclosures Unit 2020
Economy Total assets at the end of the period RMB'00,000,000 587.2 Employment Total number of employees Person(s) 10,258
Operating revenue RMB'00,000,000 190.57 Proportion of male employees % 79.26
Net profit RMB'00,000,000 10.89 Proportion of female employees % 20.74
Earnings per share RMB’/ share 0.3770 Proportion of female executives % 30
Cash dividend amount RMB'0,000 18,197.56 Proportion of employees under 30 years old % 47.81
RMB 0.6 per 10 Proportion of employees of 30-50 years old % 51.04
Cash dividend scheme
shares
Proportion of employees above 50 years old % 1.15
R&D investment RMB'0,000 90,921.98
Proportion of Han ethnic % 93.31
Corporate governance Number of Board members Person(s) 9
Proportion of minority ethnics % 6.69
Number of female directors in the Board Person(s) 4
Average wage growth rate % 9.18
Proportion of female directors in the Board % 44
Number of
Visits to employees in difficulties 33
Number of independent directors in the Board Person(s) 3 persons
Proportion of independent directors in the Board % 33 Employee training Percentage of employees trained in the company's employees % 24.3
Number of general meetings of shareholders Times 4 By gender
Number of Board meetings Times 22 Male employees % 76.3
Number of meetings of the board of supervisors Times 12 Female employees % 23.7
Number of meetings of various special committees of the Board Times 23 By work nature
Anti-corruption Number of finalized corruption cases brought against the Management % 41.6
Piece(s) 0
issuer or its employees
Profession % 2.5
Number of
Number of persons trained on anti-corruption 270 Technology % 24.2
persons
R&D Innovation Proportion of total R&D expenditure to operating revenue % 4.77 Marketing % 1
Proportion of R&D personnel % 8.64 Operation % 30.7
Total number of patents Piece(s) 732 Average training hours per person for all employees Hour(s)/person 26.8
Invention patent Piece(s) 127 By gender
Utility model patent Piece(s) 582 Male employees Hour(s)/person 26.2
Patent under processing Piece(s) 518 Female employees Hour(s)/person 28.9
Product quality First-time pass rate of the overall product % 93 By work nature
Quality feedback Time(s) 1,042 Management Hour(s)/person 33.4
General quality feedback Time(s) 705 Profession Hour(s)/person 22.3
Significant quality feedback Time(s) 0 Technology Hour(s)/person 24.2
Feedback completed for approval Time(s) 807 Marketing Hour(s)/person 28.2
Operation Hour(s)/person 20.3
Total courses on online learning platform Courses 910
Person-times of online learning Person-time(s) 84,968
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Topics
Health and safety
Quantitative disclosures
Coverage rate of physical examination
Unit
%
2020
100
Honors
Work-related deaths Person(s) 0
Work-related injuries Time(s) 27
Excellent Board Award among the 15th "Golden Round Table" Award for the Board of Directors of
Total days lost due to work-related injuries Day(s) 1977 Listed Companies in China
Safety education and training activities Time(s) 413
Emergency drill Time(s) 112
"High-quality Development Pioneer", "Best Board of Directors" and "Best New Media Operation
Resource usage
Total electricity consumption
Megawatt
3,067,424.01 Award” for 10th Tianma Award for Investor Relations of Listed Companies in China
hour(s)
Natural gas consumption Cubic meter(s) 806,550.70
Steam consumption Cubic meter(s) 27,594,561.30 Best New Media Operation Award for Investor Relations of Listed Companies in China
Total water consumption Cubic meter(s) 14,195,157.56
Of which: municipal water supply Cubic meter(s) 7,299,259.31 Best Board of Directors Award for Investor Relations of Listed Companies in China
Recycled/reused water Cubic meter(s) 16,774,292
Total amount of packaging materials used for the shipment
of finished products
Ton(s) 7,670.47 Top 10 Enterprises in Terms of Photovoltaic Product Quality (Photovoltaic Raw Materials and
Accessories)
Amount of recycled packaging materials used for the
Ton(s) 185.4
shipment of finished products
Emissions 0,000 cubic
Total exhaust emission 499,187.54 2019 Asia Photovoltaic Innovation Enterprise Award
meters
Nitrogen oxide (NOx) emission kg 16,464.16
Sulfur dioxide (SO2) emission kg 408.35 Director of Strategic Alliance for Technological Innovation in Integrated Circuit Materials Industry,
Ton(s) of CO2
2019-2022
Greenhouse gas emission 0
equivalent
0,000 cubic
Total wastewater discharge
meters
941.901 Top 10 Semiconductor Material Enterprises in China's Electronic Materials Industry (the Third
Session) (2019)
Total amount of harmless waste 1 Ton(s) 67,020.49
Total amount of harmful waste Ton(s) 2,968.88
Top 50 Enterprises in China's Electronic Materials Industry (the Third Session) (2019)
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Zhonghuan Semiconductor 2020 Social Responsibility Report
Appendices
Index of Social Responsibility Standards
Shenzhen Stock Exchange Social Responsibility Instructions to Listed Companies
Contents of Shenzhen Stock Exchange Social Contents of Shenzhen Stock Exchange Social
Corresponding Chapters Corresponding Chapters
Responsibility Instructions to Listed Companies Responsibility Instructions to Listed Companies
Chapter I General Provisions Chapter IV Protection for the Rights and Interests of Suppliers, Customers and Consumers
Article 2 Our Social Responsibility Management R&D Innovation
Article 20
Adherence to High Quality
Article 3 Our Social Responsibility Management
Article 21 Adherence to High Quality
Article 4 Comprehensive Risk Management
Article 22 Adherence to High Quality
Article 5 Our Social Responsibility Management
Article 23 Construction of Responsibility Value Chain
Chapter II Protection for the Rights and Interests of Shareholders and Creditors
Article 24 Comprehensive Risk Management
Article 7 Good Corporate Governance
Article 25 Guarantee for Network and Information Security
Article 8 Good Corporate Governance
Article 26 Adherence to High Quality
Article 9 Good Corporate Governance
Chapter V Environmental Protection and Sustainable Development
Article 10 Creation and Distribution of Economic Value
Article 27 Green Factory Construction
Article 11 Good Corporate Governance
Article 28 Green Factory Construction
Article 12 Good Corporate Governance
Article 29 Green Factory Construction
Chapter III Protection of Employee Interests
Article 31 Green Factory Construction
Article 13 Respect for the Rights and Interests of Employees
Chapter VI Public Relations and Social Welfare Services
Article 14 Respect for the Rights and Interests of Employees
Article 32 Contribution to Social Prosperity
Article 15 Promotion of Occupational Health and Safety
Article 33 Contribution to Social Prosperity
Article 16 Respect for the Rights and Interests of Employees
Article 34 Contribution to Social Prosperity
Article 17 Respect for the Rights and Interests of Employees
Chapter VII Institutional Building and Information Disclosure
Article 18 Facilitation of Staff Development
Article 36 Instructions for Report Preparation
Article 19 Respect for the Rights and Interests of Employees
45 46
Zhonghuan Semiconductor 2020 Social Responsibility Report
GRI Sustainability Reporting Standards (GRI Standards)
GRI Standard Content Index Reference Sections in the Report GRI Standard Content Index Reference Sections in the Report
General 102-1 Name of organization Company Profile General Our Social Responsibility
102-47 List of material topics
Disclosures 102-2 Activities, brands, products, and services Company Profile Disclosures Management
102-3 Location of headquarters Company Profile 102-48 Restatements of information Instructions for Report Preparation
102-4 Location of operations Company Profile 102-49 Changes in reporting Instructions for Report Preparation
102-5 Ownership and legal form Company Profile 102-50 Reporting period Instructions for Report Preparation
102-6 Markets served Company Profile 102-51 Date of most recent report Instructions for Report Preparation
102-7 Scale of the organization Company Profile 102-52 Reporting cycle Instructions for Report Preparation
102-8 Information on employees and other workers Company Profile 102-53 Contact point for questions regarding the report Instructions for Report Preparation
Our Social Responsibility Claims of reporting in accordance with the GRI
102-12 External initiatives 102-54 Instructions for Report Preparation
Management Standards
Our Social Responsibility Sustainability Reporting Standards
102-13 Membership of associations 102-55 GRI content index
Management (GRI Standards)
Values, principles, standards, and norms of Our Social Responsibility Management Creation and Distribution of
102-16 103-1 Explanation of the material topic and its Boundary
behavior Management Methods Economic Value
102-18 Governance structure Good Corporate Governance Creation and Distribution of
103-2 The management approach and its components
Economic Value
Executive-level responsibility for economic, Our Social Responsibility
102-20 Creation and Distribution of
environmental, and social topics Management 103-3 Evaluation of the management approach
Economic Value
Consulting stakeholders on economic, Our Social Responsibility
102-21 Economic Creation and Distribution of
environmental and social topics Management 201-1 Direct economic value generated and distributed
Performance Economic Value
Composition of the highest governance body and
102-22 Good Corporate Governance Financial implications and other risks and Creation and Distribution of
its committees 201-2
opportunities due to climate change Economic Value
Identifying and managing economic, environmental, Our Social Responsibility
102-29 Creation and Distribution of
and social impacts Management
Defined benefit plan obligations and other Economic Value
102-30 Effectiveness of risk management processes Comprehensive Risk Management 201-3
retirement plans Putting People First and Ensuring
Review of economic, environmental, and social Our Social Responsibility Employees' Dignity
102-31
topics Management
Anti-corruption 205-1 Operations assessed for risks related to corruption Comprehensive Risk Management
Highest governance body's role in sustainability Our Social Responsibility
102-32 Communication and training about anti-corruption
reporting Management 205-2 Comprehensive Risk Management
policies and procedures
Our Social Responsibility
102-33 Communicating critical concerns Confirmed incidents of corruption and actions
Management 205-3 Comprehensive Risk Management
taken
102-35 Remuneration policies Good Corporate Governance
Management 103-1 Explanation of the material topic and its Boundary Green Factory Construction
102-36 Process for determining remuneration Good Corporate Governance Methods 103-2 The management approach and its components Green Factory Construction
102-37 Stakeholders' involvement in remuneration Good Corporate Governance
103-3 Evaluation of the management approach Green Factory Construction
102-38 Annual total compensation ratio Good Corporate Governance
Materials 301-1 Materials used by weight or volume Green Factory Construction
Percentage increase in annual total compensation
102-39 Good Corporate Governance 301-2 Recycled input materials used Green Factory Construction
ratio
301-3 Reclaimed products and their packaging materials Green Factory Construction
Percentage increase in annual total compensation
102-39 Good Corporate Governance Energy 302-1 Energy consumption within the organization Green Factory Construction
ratio
Our Social Responsibility 302-2 Energy consumption outside of the organization Green Factory Construction
102-40 List of stakeholder groups
Management 302-3 Energy intensity Green Factory Construction
Our social responsibility 302-4 Reduction of energy consumption Green Factory Construction
management Reductions in energy requirements of products and
102-41 Collective bargaining agreements 302-5 Green Factory Construction
Putting People First and Ensuring services
Employees' Dignity
Water 303-1 Interactions with water as a shared resource Green Factory Construction
Our Social Responsibility Resources and
102-42 Identifying and selecting stakeholders 303-2 Management of water discharge-related impacts Green Factory Construction
Management Sewage
303-3 Water withdrawal Green Factory Construction
Our Social Responsibility
102-43 Approach to stakeholder engagement 303-4 Water discharge Green Factory Construction
Management
Our Social Responsibility 303-5 Water consumption Green Factory Construction
102-44 Key topics and concerns raised
Management
Entities included in the consolidated financial
102-45 Instructions for Report Preparation
statements
102-46 Defining report content and topic Boundaries Instructions for Report Preparation
47 48
Zhonghuan Semiconductor 2020 Social Responsibility Report
GRI Standard Content Index Reference Sections in the Report GRI Standard Content Index Reference Sections in the Report
Discharge 305-1 Direct (Scope 1) GHG emissions Green Factory Construction Training and Putting People First and Ensuring
404-1 Average hours of training per year per employee
305-2 Energy indirect (Scope 2) GHG emissions Green Factory Construction Education Employees' Dignity
305-3 Other indirect (Scope 3) GHG emissions Green Factory Construction Programs for upgrading employee skills and Putting People First and Ensuring
404-2
transition assistance programs Employees' Dignity
305-4 GHG emissions intensity Green Factory Construction
Diversified
305-5 Reduction of GHG emissions Green Factory Construction Putting People First and Ensuring
and Equal 405-1 Diversity of governance bodies and employees
305-6 Emissions of ozone-depleting substances (ODS) Green Factory Construction Employees' Dignity
Opportunities
Nitrogen oxides (NOX), sulfur oxides (SOX), and Anti- Incidents of discrimination and corrective actions Putting People First and Ensuring
305-7 Green Factory Construction 406-1
other significant air emissions discrimination taken Employees' Dignity
Sewage and 306-1 Water discharge by quality and destination Green Factory Construction Freedom of
Wastes Operations and suppliers in which the right to
306-2 Waste by type and disposal method Green Factory Construction Association Putting People First and Ensuring
407-1 freedom of association and collective bargaining
306-3 Significant spills Green Factory Construction and Collective Employees' Dignity
may be at risk
Bargaining
306-4 Transport of hazardous waste Green Factory Construction
Child Labor Operations and suppliers at significant risk for Putting People First and Ensuring
Water bodies affected by water discharges and/or 408-1
306-5 Green Factory Construction incidents of child labor Employees' Dignity
runoff
Forced or
Environmental Non-compliance with environmental laws and Operations and suppliers at significant risk for Putting People First and Ensuring
307-1 Green Factory Construction Compulsory 409-1
Compliance regulations incidents of forced or compulsory labor Employees' Dignity
Labor
Management Construction of Responsibility Value Local Operations with local community engagement,
103-1 Explanation of the material topic and its boundary 413-1 Contribution to Social Prosperity
Methods Chain Community impact assessments, and development programs
Construction of Responsibility Value Social New suppliers that were screened using social Win-win Cooperation and Growth
103-2 The management approach and its components 414-1
Chain Assessment of criteria with Partners
Construction of Responsibility Value Suppliers Negative social impacts in the supply chain and Win-win Cooperation and Growth
103-3 Evaluation of the management approach
Chain actions taken with Partners
Supplier New suppliers that were screened using Construction of Responsibility Value
308-1
Environmental environmental criteria Chain
Assessment Negative environmental impacts in the supply chain Construction of Responsibility Value
308-2
and actions taken Chain
Management Putting People First and Ensuring
103-1 Explanation of the material topic and its boundary
Methods Employees' Dignity
Putting People First and Ensuring
103-2 The management approach and its components
Employees' Dignity
Putting People First and Ensuring
103-3 Evaluation of the management approach
Employees' Dignity
Employment Benefits provided to full-time employees that are Putting People First and Ensuring
401-2
not provided to temporary or part-time employees Employees' Dignity
Putting People First and Ensuring
401-3 Parental leave
Employees' Dignity
Occupational Occupational health and safety management Putting People First and Ensuring
403-1
Health and system Employees' Dignity
Safety Hazard identification, risk assessment and incident Putting People First and Ensuring
403-2
investigation Employees' Dignity
Putting People First and Ensuring
403-3 Occupational health services
Employees' Dignity
Worker participation, consultation, and Putting People First and Ensuring
403-4
communication on occupational health and safety Employees' Dignity
Putting People First and Ensuring
403-5 Worker training on occupational health and safety
Employees' Dignity
Putting People First and Ensuring
403-6 Promotion of worker health
Employees' Dignity
Prevention and mitigation of occupational health
Putting People First and Ensuring
403-7 and safety impacts directly linked by business
Employees' Dignity
relationships
Workers covered by an occupational health and Putting People First and Ensuring
403-8
safety management system Employees' Dignity
Putting People First and Ensuring
403-9 Work-related injuries
Employees' Dignity
Putting People First and Ensuring
403-10 Work-related ill health
Employees' Dignity
49 50
Zhonghuan Semiconductor 2020 Social Responsibility Report
Instructions for
Report Preparation
Report Basis
The report is prepared based on the Guidelines on Social Responsibility Reporting issued by Shenzhen Stock Exchange,
refers to the main board rules Main Board Information Disclosure Business Memorandum No. 1 - Matters Related to
Periodic Report Disclosure , and quotes some indicators of GRI Standards 2016 (see the Index Table for details).
Scope of the Report
Scope of organization: This report covers Tianjin Zhonghuan Semiconductor Co., Ltd. and its subsidiaries, which is
consistent with the scope of the consolidated financial statements in the annual report of Zhonghuan Semiconductor.
Time: January 1, 2020 - December 31, 2020
Data Description
The data and cases in this report are derived from the original records or financial reports of the company's daily operation.
Reliability Assurance
The board of directors of the company guarantees that there is no misrepresentation, misleading statement or material
omission in the report.
51 52
Address: No.12 East Haitai Road, Huayuan Industrial Park, Hi-tech Industrial Zone, Tianjin
Postal code: 300384
Tel: 022-23789787
Email: investment@tjsemi.com
Website: https://www.tjsemi.com