Suofeiya Home Collection Co., Ltd.
Environmental,
Social and Governance
Report (2022)
S O G A L
Table of Contents
21 25
Table of Contents
Instructions on Report Preparation
Memorabilia of 2022
Making Remarkable Achievements
Ⅱ.Protection of Rights and Ⅲ.Protection of Rights and
after Years of Development
Interests of Shareholders and Interests of Employees
Creditors
About Us Compliant Employment
Protection of Rights and Interests of Harmonious Employment Relations
Adherence to Party Building for a Stable Occupational Safety Environment
Shareholders and Creditors
Solid Foundation and Keep Forging Competitive Incentive System
Information Disclosure
Ahead Platform to grow with the company
Investor Relations Management
Shareholder Returns Care for Employees
33
Ⅳ.Rights and Interests of
53
Ⅵ.Public Relations and Social
Suppliers, Customers and Welfare
Consumers
Medical institutions and public health
Protection of Rights and Interests of Customers
undertakings
and Consumers
Support Public Benefit Activities and Develop
Win-win Cooperation and Mutual Development
Social Welfare
Focus on Product Innovation
Provide Assistance in Basic Education
Development
13 47
Promote Academic Research and Cultivate the
Talents
Care for Groups in Difficulties and Sincere
Contribution to the Society
57
Ⅴ.Environmental Protection and
Ⅰ.Prudent Corporate Governance Sustainable Development
Social Responsibility Adhere to the quality of environmental protection
Governance Structure and advocate common progress of the industry
Internal Control Build Green Plant System
Topics of Concern Improve Green Management Future Outlook
Compliant Operations Promote Eco-friendly Operation
Promote Green Office
Environmental, Social and Governance Report l Instructions on Report Preparation
Instructions on Report
Preparation
Report overview
The Report is the Environment, Social Responsibility and Corporate Governance Report of 2022 of
Suofeiya Home Collection Co., Ltd. (hereinafter referred to as “the Company” and “Suofeiya”),
which is the sixth report released by the Company and aims to enhance the communication and
contact with various stakeholders.
The Report objectively and truly reflects the corporate governance, employees’ rights and
interests, operation and development, stakeholder communication, environmental protection, charity
and other activities carried out by the Company in 2022 and discloses the ideas, actions and
achievements in fulfilling economic, environmental, safety and social responsibilities.
Preparation basis
Chinese standard Guidance on Social Responsibility (GB/T36000-2015)
Chinese Academy of Social Sciences (CASS)’s Guidelines for Corporate Social Responsibility
Report (CASS-ESG 5.0)
Global Sustainability Standards Board’s GRI Sustainable Development Report Standard (GRI
Standards)
No. 1 Guidelines on Self-Regulation of Listed Companies of Shenzhen Stock Exchange-Standard-
ized Operation of Listed Companies on the Main Board
No. 1 Guidelines on Self-Regulation of Listed Companies of Shenzhen Stock Exchange-Business
Handling
以上
Time scope
The Report is an annual report, with the reporting period from Jan. 1st, 2022 to Dec. 31th, 2022. Some
contents can be properly tracked from previous years.
Data source
The financial data in the Report come from the audited annual report of the Company in 2022, and
other data come from the internal statistics of the Company. Unless otherwise specified, the curren- 以下
cy types and amounts involved in the Report are measured in RMB. The Company guarantees that
there are no false records, misleading statements or major omissions in the Report.
Report acquisition
The Chinese version of the Report is available for the readers’ reference. Welcome to visit official
website of Suofeiya Home Collection Co., Ltd. (www.sfygroup.com) and www.cninfo.com.cn to
download the electronic version of the Report.
Report feedback and Contact
Contact address: No. 2, Xianning Road, Guocun, Yongning Street, Zengcheng District,
Guangzhou, Guangdong
Contact number: (+86)20-87533019
Email: ningji@suofeiya.com.cn
Official website: www.sfygroup.com
01 02
Environmental, Social and Governance Report l Memorabilia of 2022
Memorabilia
of 2022
Further Improvement of Multi-brand, Full-category and
E
E
Omni-channel Home Furnishing Strategy
G
Held the national first strategic
summit in door and window G
industry;
“Suofeiya” entered the field of
Officially launched “Suofeiya
“whole home customization”
Doors and Windows” brand
and realized full-category cover-
B
B
age of “closets, cabinets, doors,
wall-board, floor and electric
“Schmidt” completed 100% appliance”;
shareholding and fully improved
A the autonomy and flexibility of
A
brand operation; D
D
Suofeiya cabinet created “city
H
partner” model in thousands of
cities and stores
“Milanla” developed quickly,
focused on the mass consumers
H
Set off a new revolution wave in and consolidated the positioning Occupied the market of “wall-
the cabinet industry of “Internet light fashion” brand; wall-board and floor integra-
tion”;
C
C
F
F Expanded the flow contact in
segmented market
Completed construction of Zheji- “Huahe” upgraded its “door
ang Jinhua Production Bases and and wallboard and closet” whole
put it into production; home wooden system into whole
Eight major production bases laid house customized decoration
out the industry-leading produc- system, showing “new story of
tion capacity network an old soldier”;
03 04
Environmental, Social and Governance Report l Making Remarkable Achievements after Years of Development
Great reputation and unique brand influ-
ence in the market
Making Remarkable National consumption influence brand of 2022 recognized
by people.cn
Achievements after Years
List of Key Trademark Protection in Guangdong Province
Top 100 Brand Enterprises of the Year in the customized
furniture industry in China
of Development
Furniture Brand of the Year Trusted by People
Leading brand in China’s home collection champion list of
2022
Being highly recognized by the capital
market under stable development
Being recognized by authorities Ministry of
Industry and Information Technology and Tianma Award for Investor Relation of Listed Companies in
the municipal government China-Best Investor Relation Award
Top 100 ESG Listed Companies in China
Pilot Demonstration Project of Big Data Industry Develop- Best Practice Award of Board Office of Listed Companies in
ment of Ministry of Industry and Information Technology 2022
New Information Consumption Demonstration Project of Ranking 24th in the sincere return list of A-share listed
Ministry of Industry and Information Technology of 2022 companies of China Association of Listed Companies
Title of “National Green Plant” granted by Ministry of Most socially responsible listed companies of 2022 in the
Industry and Information Technology reputation list of listed companies in China
Gold Award for Investor Relation-Outstanding IR Enterprise
Leading industrial development via 4.0
Intelligent Manufacturing
Internationally acclaimed and charming
Pioneer of digital intelligent manufacturing home collection design in the world
Digital transformation and innovation practice of enterprises
Germany iF INDUSTRIE FORUM DESIGN
Top 100 light industry science and technology enterprises in
China TOP 5 among global ten major home collection design
Excellent cases of digital transformation of listed companies companies granted by iF INDUSTRIE FORUM DESIGN
Excellent application product cases on the digital intelligence iF INDUSTRIE FORUM DESIGN (Bella New Product Series,
transformation of listed companies Slow Time Concept Series and Xixi’s Apartment)
First prize of Guangdong Mechanical Engineering Industry
Science and Technology Award France NOVUM DESIGN AWARD
DA Product Designer of the Year
Gold Medal of E Series Miller
High-quality product creates good brand Gold Medal of Platinum Series
Gold Medal of Suofeiya Kang-Chun-Ban BB Bed
Children safety product certification
Gold Medal of Xixi’s Apartment-Touching Home
Leading high-quality brand in whole home customized
Gold Medal of Star Partition
furniture industry
Silver Award of Boundless Series
National qualified products with stable quality
National leading enterprise with high-quality product in
whole house customized furniture industry
05 06
Environmental, Social and Governance Report l About Us
Corporate culture
Providing customers with a good
experience through personalized
design and efficient operation,
and becoming a trustworthy
world-leading home furnishing
Corporate mission company Core value
Decorating homes easily with customer foremost,
technology and creativity, innovation and sharing,
integrating beauty of the world Corporate vision professional and efficient,
into new life honest and progressive
Business philosophy
Customer experience
Iron triangle of
customization
Personalized Professional &
customization efficient
Brand matrix
Since the establishment, the Company has been actively creating and introducing excellent products and
brands, to bring better home decoration experience to consumers and customize a better life together.
Currently, the Company has established a brand matrix covering the entire market, including “Suofeiya”
targeting the mid- and high-end market, “Schmidt” and “Huahe” targeting the niche market, and
“Milanla” targeting the mass market. The four major brands complement each other, forming a comple-
About Us
mental product R&D and supply system, covering the complete range of closets, cabinet and doors,
matching various styles such as wall boards, sanitary ware, floor, household supplies and appliances.
They can serve customers in all fields including online and offline retail, retail to skeleton house decoration
companies and B2B business (B2B business refer to whole sales to the clients such as real-estate devel-
opers, hotel and etc.), thus achieving all-round development of the channels.
Company Profile
Over the past 21 years deeply rooted in the Chinese market, especially since becoming the first A-share
Suofeiya Home Collection Co., Ltd is a company mainly engaged in the R&D, production and sales of customized closets, cabinets, wooden listed company in the industry in 2011, Suofeiya has grown by leaps and bounds in its national layout of
doors, wall boards-floor integrated, supporting hardware, furniture, home supplies and customized whole-sale business. Since the informatization and industrialization layout with the support of sufficient capital. In terms of innovation and
commencement of production and sales of customized closets under the brand of Suofeiya in 2003, the Company, relying on the brand-new improvement of intelligent manufacturing technology of customized furniture, the Company has
product concept of integrating tailor-made customized closets with closet doors, has successfully introduced customized closets to the independently developed a great number of core technology patents in the fields of IT, electronics,
market and acquired the recognition of Chinese consumers. Suofeiya was listed on Shenzhen Stock Exchange in 2011, becoming the first machinery, etc., promoting the intelligent manufacturing level of Suofeiya being way ahead in the global
IPO company in the customized furniture industry (Stock Code: 002572). custom furniture industry.
07 08
Environmental, Social and Governance Report l About Us
Production base layout
The Company owns eight production bases in China and takes the head in completing the national industrial layout.
The perfect production base layout greatly improves efficiency and production capacity, shortens delivery cycle, saves
logistics cost, breaks the industry bottleneck, i.e. production capacity bottleneck, which is commonly faced by custom-
ization industry and provides a stable supply chain guarantee for customer service.
Zengcheng, Guangdong
South China Production Center
customized closets and supporting customized furniture
products, customized cabinets, wooden floors，supporting
hardware，bulk Businesses 黑龙江齐齐哈尔
Huanggang, Hubei
Central China Production Center
customized closets and supporting customized furniture
products, customized cabinets
Jiashan, Zhejiang
East China Production Center
customized closets and supporting customized furniture
河北廊坊
products
Chengdu, Sichuan
West China Production Center
customized closets and supporting customized furniture 河南兰考
products
Langfang, Hebei
浙江嘉善
North China Production Center 四川成都
湖北黄冈
customized closets and supporting customized furniture
浙江金华
product
Lankao, Henan
Henan Suofeiya Home Collection Co., Ltd.
customized closets and supporting customized furniture
products，bulk Businesses
广东增城
Qiqihar, Heilongjiang
Suofeiya Huahe Door Co., Ltd
customized wood doors
Jinhua, Zhejiang
审图号：GS（2019）1823号
Zhejiang Jinhua Production Base
09 10
Environmental, Social and Governance Report l Adherence to Party Building for a Solid Foundation and Keep Forging Ahead
Adherence to Party Building
Suofeiya’s Party Organization (the organization of Communist Party of China, hereinafter referred to as the “Party”) was officially
established in 2014, and with the rapid development of the Company, the number of Party members has been growing. The Company
has gradually established Party Organizations in the branches. At present, seven branches have established Party branches, among
for a Solid Foundation and
which Zengcheng Head Office and Huanggang Branch are upgraded into Party Committee, with a total number of 242 Party members.
Since its establishment, the Party Committee of Suofeiya has been adhering to the objective of “Powerful Party Building, Prosperous
Enterprise Development” and striving for the objective of “Bidirectional Integration” of Party building and enterprise development, so
Keeping Forging Ahead as to transform the political advantages of the Party into the development advantages of the enterprise. Furthermore, Suofeiya has
further expanded the influence and popularity of the brand of Party Building and realized the healthy, orderly and stable development of
the enterprise under the exemplary leadership of the Party Committee.
A Strengthen Organizational Mechanism and Solidify
the Core Leadership of Party Building C Promote Joint Corporate Development and Resource
Sharing with Party Building
By establishing the Joint Red Union Working Mechanism with party committees in public
The Company’s Party Committee has comprehensively implemented the
responsibility system of Party building efforts, intensified the efforts of Party institutions, state-owned enterprises, schools and non-public enterprises, the Party
building, secured the “Admission Check”, attached importance to the cultiva- Committee of the Company has fully realized the “Red Leadership, Joint Construction”
tion of Party members and Party workers, and performed precise and custom- to solve practical difficulties by mutual cooperation and turn organizational advantages into
ized trainings for Party members, Party workers and Party organization leaders development advantages. By means of pairing and joint construction, the Company has
in a hierarchical and classified manner. A total of six rounds of trainings are realized the complementary sharing of resources, mutual assistance and common
organized for cadres and Party Members to fully improve the quality of the new improvement among the Party branches in different industries.
Party Members.
D Comprehensively Initiate Study Enthusiasm and Con-
dense the Ideological Consensus of Party Members
B Establish New Fronts for Party Building and Pool New
Organizational Vitality
In 2022, the Party Organization of the Company carried out a series of study and publicity
activities of “thoroughly implementing and studying the spirit of the 20th National
Congress and forging ahead based on the goal of the second century”. Themed by the
The Company has fully integrated the existing resources to improve the
spirit of the 20th National Congress, a special organization life meeting was held, and
integrated Party building fronts and the Party Organization establishes the
lecturers were invited to give lectures on patriotism base study, flag-raising ceremony,
Service Center for the Party and the Masses to provide comprehensive service
online and offline party history QA activities. A total of 17 study and training activities were
for the Party Members and masses; the Company has established a 60-me-
organized to view the meeting held by the 20th National Congress.
ter-long thematic education Party Building Cultural Corridor. Furthermore, the
Company has led a fair, just and honest working environment within the enter-
E
prise, and strengthened the senses of gain and happiness among employees, Exert the Role of Bastion of Basic Level Party Organi-
thereby further realizing the “Triple Win” objective for employees, enterpris-
zations
es and communities. The Company has joined hands with the Labor Union in
Suofeiya has established Pioneer Service Points of Party Members and Innovative
organizing activities such as sports and culture festivals as well as labor knowl-
R&D Teams of Party Members to fully play the pioneering and exemplary role of Party
edge competitions, which have enhanced the sense of belonging and sense of
Members, so as to organize the production under the leadership of Party Building, play
identification with the Party of employees, and strengthened the cohesion of
an important demonstration role in key projects R&D and highlight the style and
the employees to the Party Organization. In 2022, the Company’s Party
appearance of incorruptibility and self-discipline of Party Members, and to assist
Organization established a Party Member Volunteer Team to participate in
Suofeiya in satisfactory production and operation, thereby realizing further upgrading in
nucleic acid testing and other volunteer services of the Company and
mutual promotions and mutual benefits for the development of Suofeiya and the Party
surrounding communities, fully demonstrating the strong sense of social
Organization, and assisting Suofeiya in achieving “Solid Growth” with the “Soft
responsibility of the Company and its Party Members.
Strength” of Party Building.
11 12
Ⅰ
Prudent Corporate
Governance
13 14
Environmental, Social and Governance Report l Prudent Corporate Governance
1 Social Responsibilities A Shareholders and General Manager of Stockholders
Effective corporate governance system is an important foundation to guarantee the The General Meeting of Stockholders is composed of all shareholders and is the highest authority of
2
healthy, stable and sustainable development of enterprises. Since its listing in 2011, the the Company, which makes decisions on the major issues of the Company according to laws.
Company has continuously improved its governance system and standardized its The Company has strictly followed the requirements of the Securities Law, the Company Law, the
operation. In combination with the actual development situation of the Company and Articles of Association, the Rules of Procedure for General Meetings and other related laws, regula-
the requirements of the regulatory authorities, the Company has established a tions and rules to convene and hold General Meetings, combines on-site voting and online voting to
comprehensive and multi-level management system to promote the continuous provide convenience for shareholders, especially small and medium shareholders, to attend the
optimization of the corporate governance structure and effectively protect the rights meeting of shareholders, treats all investors equally and effectively protects the rights and interests
and interests of the Company and all shareholders. of small and medium-sized shareholders.
B Directors and Board of Directors
The Board of Directors serves as the decision-making body of the Company. At present, the Board
2 Governance Structure
of Directors of Suofeiya consists of five directors, including three independent directors. The struc-
9
ture of the Board of Directors of Suofeiya is reasonable, with qualifications, selection procedures and
composition of directors as required by related laws and regulations. All directors are able to perform
The Company has established a standardized governance structure in accordance with the requirements of the related laws, regulations their duties in accordance with the rules such as Rules of Procedure of the Board of Directors and the
and normative documents such as the Company Law and the Securities Law, formulated and implemented rules and systems suitable for System of Independent Directors, attend the meetings of the Board of Directors on time, and actively
the development of the Company, and established a corporate governance system featuring clear division of responsibilities, mutual controls participate in the decision-making of major matters and the review of important information disclo-
and balances as well as efficient operations. sure of Suofeiya; in 2022, the directors of Suofeiya have actively participated in related training activi-
ties organized by the regulatory authorities, and effectively improved their abilities to perform their
Shareholders’ Meeting duties as directors through further study and familiarization with related laws and regulations. In
addition, none of the directors of Suofeiya have been subject to audit, punishment, notification and
Board of Supervisors
criticism, public condemnation, etc. by the regulatory authorities.
Supervision Department
Board of Directors Audit Committee Audit Department
Board of Directors Office
General Manager
C Supervisors and Board of Supervisors
General Manager’s Office
The Board of Supervisors of the Company consists of three members, including two representative
8
shareholder supervisors and one representative employee supervisor, and the latter is democratically
elected by the employees of the Company. The structure of the members of Supervisor shall Board of
Suofeiya Retail Business Division
Schmidt Retail Business Division
Milanla Retail Business Division
Huahe Retail Business Division
B2B Whole Seal Business Division
HouseDecoration Company Business Division
Direct-Sales to Skeleton
Furniture and Home Collection Business Division
Quality Center
Manufacturing Center
Design Center
Information and Digital Center
Smart Home Technical R&D Center
Customer Service Center
Supply Chain Center
Financial Management Center
Supply Chain Center
New Retail Center
Media Department
Brand Management Department
Civil Construction Office
Research Institute
Organization Department
Human Resources Center
Administration Center
Guangzhou Ningji Intelligent System Co., Ltd.
Guangzhou Suofeiya Investment Management Co., Ltd.
Supervisors of Suofeiya is reasonable, with the qualifications, selection procedures and composition of
the supervisors as required by related laws and regulations. The Board of Supervisors has been working
diligently and conscientiously, with procedures such as convening and voting in compliance with the
Rules of Procedure of the Board of Supervisors and other related regulations, and has inspected and
supervised the business activities of Suofeiya and the performance of duties of the senior management,
so as to promote the standardized operations of Suofeiya.
D Management
The daily operation activities of Suofeiya are performed by the senior management. As of the end of
2022, Suofeiya has employed five senior management personnel. Management teams of of Suofei-
ya cover fields of marketing, finance, intelligent manufacturing, etc. and have extensive industry
background and professional management experience. These teams have helped Suofeiya to seize
market opportunities in practical operations, and secured the long-term development of Suofeiya.
15 16
Environmental, Social and Governance Report l Prudent Corporate Governance
3 Internal Control
Based on the requirements of laws, regulations and regulatory documents such as the Company Law, the
Securities Law and the Code of Governance for Listed Companies, the Company has established a number
of internal management systems such as the Articles of Association, the Rules of Procedure for the General
Shareholders’ Meeting, the Rules of Procedure for the Board of Directors, the Rules of Procedure for the
Supervisory Board, the Information Disclosure Management System and the Internal Audit System.
Within the reporting period, the Company has continued to strengthen the daily management, regular
assessment and continuous supervision and improvement of risks, and the Audit Department has continu-
ously supervised the internal control system of each entity, timely identified the deficiencies of internal
control and made improvements accordingly, thereby ensuring the effectiveness of internal control and
enabling the Company to improve its operation and management level and risk prevention capabilities.
A Improve efficient internal control system
In 2022, the Audit Department of the Company carried out 14 special audit projects, covering all subsidiaries
of the Group. During audit, main problems were discovered on the aspects of sales management, procure- Special Aduit
ment management, asset management and contract execution. In addition to finding problems, the Item
Company has strengthened the rectification of audit problems, required business departments to submit
rectification plans within the specified period, paid attention to the rectification effect, and promoted the 14 C Attach importance to the construction of sustainable partners
compliance business operation of the Group.
Internal Control
The Audit Department actively promotes the efficiency of office automation system (OA) approval, summa- In order to standardize the business activities of enterprises, establish a normal and sustainable business partnership, and build
Information
22
rizes time consumption of each OA process through system reports, regularly focuses on the node time an open and transparent business atmosphere and business competition environment with beneficial cycle, the Company and
consumption changes, and promotes process approval efficiency by modifying approval authority table, suppliers signed the Business Partner Integrity Commitment Agreement, which served as the code of conduct for business trans-
optimizing process nodes, and strictly controlling process establishment and access. actions to be followed by both parties and clarified the withdrawal and punishment mechanism for violating the Integrity Commit-
ment Agreement.
In 2022, the Company released 22 issues of internal control news, organized publicity activities from the
aspects of explanation of regulatory documents, analysis of problems found in audit and process applica- The Supervision Department opened communication channels to dealers, listened to their voices, understood their demands, and
tion in collaborative office system, so as to enhance employees’ awareness of compliance and internal severely cracked down on all illegal acts of internal employees infringing on the legitimate interests of dealers. Meanwhile, in order
control and help the Group develop steadily. Meanwhile, the Audit Department has launched the training to maintain the brand image of the Company and protect the rights and interests of consumers, the Company imposed punish-
program of “Audit Empowerment-Industry Audit Integration” according to the needs of the manufactur- ments on the dealers who were dishonest and did harm to the interests of the Company in strict accordance with regulations, so
ing center, to share audit methods, system points and historical audit findings with financial colleagues at as to maintain the normal and sustainable business partnership between both parties.
the manufacturing end, and promote business development based on audit knowledge.
D Enhance protection of intellectual property rights
B Build a corporate culture of integrity
The Company attaches great importance to the protection of intellectual property rights and shoulders the long-term and crucial The registered trademark
In 2022, the Supervision Department of the Company continued to focus on the central guiding ideology of
responsibility to protect its own intellectual property rights against infringements. To strengthen brand building and maintenance, approved in China
1,155
the Company strictly standardizes the management of intellectual property rights, such as patents and trademarks, and has
“building a clean Suofeiya to help enterprises achieve high-quality development” and raised integrity and
developed an internal review system accordingly. The Company has continuously consolidated the legal use of patents and trade-
compliance to the strategic level on the premise of promoting the sound operation of enterprises, and
marks, effectively avoided risks, maintained the brand image, and created a positive atmosphere of honest management and
comprehensively established and continuously optimized the integrity and compliance mechanism. Adher-
protection of intellectual property rights. In addition, the Company organizes corresponding special training to improve employ- Well-known trademark
ing to the guiding principle of “publicity-oriented culture, supplemented by fight against corruption”, the
ees’ awareness of intellectual property protection, and also manage and protects intellectual property rights through platform protection records
97
Company organized large-scale integrity publicity activities with the theme of “honesty and integrity”
management. The Company has also set up special engineers for the management and maintenance of intellectual property
through various forms to create a clean and honest atmosphere. Meanwhile, the Company followed up the
rights.
implementation of major issues, supervised the implementation process, intensified the investigation and
punishment of key cases, solved management loopholes, and jointly guaranteed the healthy and sustain- As of the end of 2022, the Company had 1,155 domestically approved registered trademarks; the brand “Suofeiya” had been
able development. protected as a well-known trademark for 97 times.
17 18
Environmental, Social and Governance Report l Prudent Corporate Governance
4 Topics of Concern 5 Compliant Operations
The healthy development and achievements of the Company are dependent on the supports from stakeholders such as government and During the reporting period, the Company has continued its compliance management, established a comprehensive risk management
regulatory bodies, shareholders and investors, employees, customers, suppliers and communities. The Company upholds the principle of system, enforced various business activities and processes to address the risks and challenges encountered in the operations and business
transparency and equality and attaches importance to communication and cooperation with stakeholders. During the reporting period, the development of the Company. It has strictly controlled various potential risks in operations, enhanced the risk management ability, immunity
Company has continuously improved the stakeholder communication mechanism, organized diversified communication activities and timely and resilience of the Company, formulated and implemented response plans to support the strategies of the Company, and implemented
understood and responded to the expectations and demands of stakeholders. scientific decisions to realize high-quality sustainable development.
Stakeholders Topics of Concern Communication Channels
Daily Reporting, Information
Compliant Operations Submission
Governments and
Tax Payment According to Law Acceptance of Supervision and
Regulatory Authorities
Employment Generation Assessment
Visit and Inspection
Shareholders’ Meeting
Sustainable Operation Information Disclosure
Compliance Governance Investor Hotline
Shareholders and Investors
Risk Prevention Online and Offline Communication
Investor Interactive Platform
Compliant Employment Congress of Workers and Staff
Compensation and Benefits Labor Union for Employees
Employees Safety Production Employee Training
Career Development Corporate Culture Activities
Protection of Customer Rights After-sales Service System
and Interests Customer Service Index, Dealer
Customers High-quality Products Service Index(CSI/DSI)
Professional Services Quality and Technology Innovation
Protection of Rights and Interests
Sunshine Procurement Supplier Conference
Supplier Honest Trading Supply Chain Management System
Win-Win Cooperation Integrity Culture
Participation in Community Fulfillment of Social Responsibility
Building and Development Participation in Public Welfare
Communities and NGO
Active Commitment to Public Activities
Welfare
19 20
Ⅱ
Protection Of Rights And
Interests Of Shareholders
And Creditors
21 22
Environmental, Social and Governance Report l Protection of Rights and Interests of Shareholders and Creditors
Protection of Rights and Interests of Shareholders and Creditors Investor Relations Management
The Company attaches great importance to the protection of the legitimate rights and interests of shareholders, especially the small and The Company has always adhered to the priority of investor relations management, and is committed to maintain a true, transparent and
medium-sized shareholders, and has established comprehensive rules and regulations on corporate governance in accordance with related compliant listed company for investors. It has actively established an excellent communication mechanism with investors to fully safeguard
laws and regulations such as the Company Law, the Code of Governance on Listed Companies and the Guidelines for the Articles of Associ- their right to information, understand the pace of the market and perceive the demands of investors.
ation of Listed Companies, and continued to promote and strengthen the construction of the internal control management system of the
The Company offers extensive and convenient communication channels for investors, and actively communicates with investors by means
Company for standardizing the operations and management of the Company. Furthermore, the Company has established a relatively
of investor hotline, e-mail, investor relations interactive platform, the “Investor Zone” on the official website, media interviews, performance
complete system of internal control management system featuring mutual checks, balanced controls and effective operations. From a
presentations, offline research, etc. for positive interactions with investors. Meanwhile, the Company expands the publicity of investor
mechanism perspective, such efforts have ensured that shareholders and creditors are treated fairly, openly and equitably and can fully
protection efforts by means of emerging network tools such as official WeChat account and WeChat Video Channel, thereby creating
enjoy all the legal rights and interests stipulated in laws, regulations and rules.
relatively efficient and effective investor communication channels and realizing an investor relationship featuring mutual trust and harmony.
The Company has continuously improved the standardized operation of the “Three Powers and One Management”, including the Share-
holders’ Meeting, the Board of Directors, the Board of Supervisors and the Management, attached full importance to and carefully prepared Daily communication Regular communication
for the three powers with standardized procedures, respected and exercised the functions of independent directors and professional
Organize and participate in more than 300 sessions Actively hold annual performance briefing, organize
committees of the Board of Directors, and improved the effectiveness and independence of the operations of the Board of Directors; fully
such as regular exchange, special reception of inves- investors to make special communication about the
utilized the corporate governance structure of the “Three Powers and One Management” featuring mutual separations and mutual checks
tors, online exchange meetings and offline strategy regular performance reports in time, and actively
and balances, so that each level can perform its own duties and functions within the scope of its respective responsibilities and authorities meetings of institutional shareholders. participate in the annual online collective reception day
and the standardized operations of the Company can be guaranteed. The Company has continuously improved the capabilities and self-dis- for investors within the jurisdiction.
cipline of directors, supervisors and executives by various learning and training activities, and enhanced the scientific decision-making level
of the “Three Powers and One Management”. Interaction and reply Investor relation new media
update the register of shareholders in time, track and update the Company’s business situation in time
Information Disclosure analyze the changes of shareholder structure; timely through new media platforms such as WeChat official
reply to 98 questions from investors on the interactive account and Wechat Channel, share the business
platform of Shenzhen Stock Exchange , actively changes in the industry, and provide assistance in
In 2022, the Company has disclosed 99 announcement documents. The Company attaches great importance to information disclosure and
answer the hotline of investors and maintain smooth preparing industry research reports at home and
fulfills its responsibilities of information disclosure in strict accordance with the regulations such as Guidelines of the Shenzhen Stock
communication with investors. abroad.
Exchange on Information Disclosure, so as to ensure true, accurate and complete information disclosure without any false records and
misleading statements. The designated information disclosure media of the Company include Securities Times, China Securities Journal,
Securities Daily, Shanghai Securities News and CNINFO (www.cninfo.com.cn). The scope of information disclosure includes regular reports
and other temporary announcements, basically covering all the significant matters of the Company, so that investors can quickly understand
Shareholder Returns
the development status of the Company and the right to information of the general investors is protected.
To enable shareholders to share the achievements of the development of the Company, in
During the 12 years of listing, the Company has closely followed the pace of the regulatory conjunction with the actual demands of business as well as the premise of ensuring stable
authorities in information disclosure and has maintained a high level of quality disclosure for performance and continuous improvement in profitability, the Company has formulated the
a long period of time, and has been awarded Grade A in the information disclosure assess- Long-term Shareholder Return Plan and implemented a scientific, sustainable and sound
ment for 9 consecutive years. According to statistics, only 53 domestic listed companies profit distribution policy, so as to provide stable and lasting returns to shareholders.
have been rated A in the information disclosure assessment of Shenzhen Stock Exchange
The Company applies two types of dividend distribution in forms of cash or stock. The
for 9 consecutive years, accounting for only 1.26%.
Company endeavors to implement an active profit distribution policy, especially the policy of
cash dividends, so as to ensure the continuity and stability of the profit distribution policy.
A
When Company determines to distribute profits by way of cash dividends, which is no less
rated for 9 consecutive years than 20% of the distributable profits realized that year.
Cash Dividends
1.26 34.47
Since the listing of the Company in April 2011, Suofeiya has been practicing a stable cash
listed companies have been rated A for 9 dividend policy and actively rewarding investors. From FY2011 to FY2021, the Company
consecutive years accounting for % paid a total of RMB 3.447 billion cash dividends (including share repurchases) to billion yuan
all shareholders.
23 24
Ⅲ
Protection Of
Rights Andinterests
Of Employees
25 26
Environmental, Social and Governance Report l Protection of Rights and Interests of Employees
1 Compliant Employment 2 Harmonious Employment Relations
Suofeiya strictly abides by the Labor Law of the People's Republic of China, the Labor Contract Law of the People’s Republic of China, the Suofeiya has established a standardized and flexible organizational structure as well as a diversified talent structure, with employees
Implementation Regulations of the Labor Contract Law of the People's Republic of China, the Social Security Law of the People's Republic including comprehensive management talents growing up from the production lines, as well as professional talents with cutting-edge
of China as well as related laws and regulations, so as to protect the legal rights and interests of employees in accordance with the law. management concepts. The Company is committed to building a healthy, harmonious and equal employee employment system based on
the demands of satisfying the continuous and rapid development of the Company. The Company resolutely opposes discrimination on the
Suofeiya standardizes the labor contract system, and signs labor contracts with employees according to the law, with a labor contract signing
basis of gender, region and religious beliefs, strictly inhibits the employment of child labor and forced labor, promotes equal pay for equal
rate of 100%; establishes standards and specifications for labor contract conclusion and renewal process. The Company strictly follows the
work between men and women as well as humane employment policies, creates a working environment of mutual respect, tolerance and
requirements of the labor security department, so as to regulate the order of labor employment and safeguard the legitimate rights and
close friendship, and continuously promotes the happiness and satisfaction of employees.
interests of employees and the Company.
During the reporting period, the total number of employees was 14,906;
The Company strictly implements the national regulations on social insurance and pays monthly social insurance in full amount and housing
provident fund, so as to ensure that employees can enjoy the related benefits in a timely manner.
30 years old and under 31-45 years old
Work injury
leave
Maternity
leave
39%
Marriage Breastfeeding
54%
7%
leave leave
46 years old and above
Annual Leaves Paternity Age composition
leave leave
27%
Work injury
73%
insurance
Unemployment Maternity
insurance insurance
Gender structure
Medical Accident
insurance insurance Master’s degree or above
Benefits 1% Bachelor’s degree
Pension
insurance
Housing
provident
17%
34 %
fund Under high school
Physical
23 % College
examination Staff canteen
25%
for and meal
employees allowance
High school
Annual Staff
travel dormitory Educational structure
27 28
Environmental, Social and Governance Report l Protection of Rights and Interests of Employees
3 Stable Occupational Safety Environment D Safety culture building
The Company has fully utilized the official WeChat account, display windows, bulletin boards,
The Company has always targeted to be leading in the industry for safety management, strengthened the understanding of the extreme trainings, themed competitions, etc. to promote the construction of safety culture of the
importance of safety production, and implemented it into management decisions and production and operation activities, insisted on the goal Company, and created a strong atmosphere of safety production by a series of safety culture
of pursuing “Zero Accident”, reinforced investigation and treatment on hidden dangers at all levels by standardization and upgrading of activities such as the Safety Production Month, “Mid-Autumn and National Day” Safety
safety production and construction of Double Prevention System, strictly focused on safety management of related parties, strengthened the Activities, “119 Fire Safety Month” Activities, Occupational Disease Prevention and Control
construction of emergency response capabilities, implemented safety training for personnel at all levels, innovated the construction of safety Law Awareness Week, Traffic Day, etc., so as to continuously raise the safety awareness
culture, and made every effort to ensure a stable and favorable Employee Health and Safety environment within Suofeiya. and legal consciousness of employees.
A Strengthen the implementation of the production safety responsibility system E Occupational health management
The Company adheres to the principles of “Those Who Are in Charge Shall Be Account- The Company has entrusted qualified occupational health technical service institutions to
able” and “Balanced and Simultaneous Management of Business and Safety, Production perform workplace occupational disease hazard factor testing in accordance with the Law of
and Safety as well as Operation and Safety”, so as to implement the responsibility system of the People's Republic of China on Prevention and Control of Occupational Diseases, the
production safety at all levels. The Company has gradually improved the performance Regulations on Supervision and Administration of Occupational Health in the Workplace, the
assessment on safety production, thereby effectively promoting the practices of safety Measures for Supervision and Administration of Occupational Health Monitoring by Employ-
production by means of the performance assessment with both rewards and penalties. ers, the Code of Practice for Periodic Testing of Occupational Disease Hazards in Employers,
as well as other legal and regulatory requirements, and publishes them at prominent locations
in the workshop and disclose related information at striking positions of the workshop.
Furthermore, the Company has carried out pre-employment, on-the-job, off-the-job and
B Perform all-round inspection and management of hidden hazards emergency occupational health examinations; evaluated the suitability, comfort and reason-
ableness of individual protective equipment for employees, updated the individual protective
The Company has mobilized the enthusiasm of employees, promoted full participation and equipment configuration standards for the employees in a timely manner, and established
all-round inspection and management mechanism of hidden dangers, performed a individual occupational health monitoring files for employees.
three-level (workshop level, team level and position level) inspection and management of
hidden dangers, improved the level of inspection and management of hidden dangers, and
conducted no less than four special safety inspections on a monthly basis according to the
F Emergency management
characteristics of seasons and production, as well as safety inspections prior to holidays, etc.
to investigate and manage hidden dangers. Furthermore, the Company has implemented a During the reporting period, Suofeiya has upheld the emergency response concept of “pre-
dual mechanism for establishing and improving risk grading and control as well as hidden vention-oriented and constant preparedness” and issued timely emergency response
danger inspection and management, and fully utilized scientific safety risk assessment, risk measures for extreme weather such as typhoons, heavy rainfall and fog. All branches and
grading, risk prevention tools and methods for the purpose of risk control. subsidiaries are required to perform two emergency drills every six months to test the effec-
tiveness of the emergency plan, improve the emergency linkage and disposal capabilities,
C Reinforce safety awareness and skills of employees optimize and revise the emergency plan and on-site emergency disposal plan according to
the drill performance, and equip corresponding emergency resources. The Company has
The Company has formulated a perfect safety training plan at the beginning of the year and formed a regular non-scheduled fire drill routine to ensure that employees master the ability
organized the implementations thereof. It has launched trainings for new employees at to escape in case of emergency and that emergency rescue is quickly responded to and
“three levels”, before resumption of work after the holidays, in case of “Four News”, properly handled, so as to ensure the safety of lives of employees and the security of proper-
transfer of positions, reassignment, and for special operators, occupational health, fire control ties of the Company.
(duty) room personnel, volunteer firefighters, on environmental protection knowledge, chemi-
cal safety management, safety for high-risk operations, traffic safety knowledge, etc. The During the reporting period, the Company has successfully achieved all the production safety
rate of employees receiving the trainings and passing the exams has reached 100%. The targets without any major production safety accidents, and the production safety operation
Company strictly adheres to the trainings and examinations of special equipment operators has been safe, stable and healthy.
and special operators, with 100% of the employees qualified for taking up the work.
29 30
Environmental, Social and Governance Report l Protection of Rights and Interests of Employees
4 Competitive Incentive System B Trainings Applicable to Employees at All Levels
The Company has set up corresponding training courses for team leaders for first-line
Suofeiya has formulated the Administrative Measures for Remuneration for employees, established B Responsibility management, mid-level managers and senior managers, so as to match the competency
a competitive remuneration standard and a reasonable remuneration incentive mechanism, and fully demands of the stages they are at in their careers.
mobilized the enthusiasm of employees while protecting their rights and interests.
The remuneration system has been established to achieve the talent strategy objectives of the C Building Mobile Learning Platform
Group, to inspire the potential of the employees, to maintain the inherent motivation for the sustain-
A Delivery In 2021, the Company has introduced a new system provider to expedite mobile teaching and
able development of the organization, to clarify the value distribution orientation of the Company, to
learning. In 2022, the Company has constantly enriched the learning platform courses.
effectively combine personal development and corporate development, to establish a competitive C Benefit
Through online learning platforms, the efficiency of learning and the tracking of training data
remuneration system, and to attract, motivate and retain talents.
in the background of the trainees have been improved. The mobile learning platforms have
The Company has established and further improved a comprehensive assessment and incentive
enabled employees to fully leverage their fragmented time to enrich themselves at any time.
mechanism based on the changes in the wage level of the enterprise location as well as the salary
standards in the industry. Each department of the Company has set the salary standards according
to the job responsibilities based on the value principle, market principle, performance principle and
D Creation of the Goldsmith Hall
diversity principle, as well as the nature of the job and in conjunction with the three factors of delivery,
The Goldsmith Hall is the training camp for the internal trainers and mentors of Suofeiya, with
responsibility and benefit.
the aim of quickly communicating the corporate culture, work processes, work language and
The Company has established quantitative and qualitative indicators that are quantifiable and work norms of the Company to the employees and to reach a consensus within the Company.
assessable in terms of quantity, quality, efficiency and economic value of the work, reflecting the During the reporting period, the Company has accomplished three phases of the program,
principle of “distribution according to work and more pay for more work” and motivating employees trained a total of 130 internal trainers and completed 24 courses.
to improve their performance and attain a win-win situation for both the Company and the employees.
6 Care for Employees
5 Platform to grow with the company The Company adheres to the people-oriented principle and constantly combines the cultural
and sports activities with spiritual and cultural needs of the employees and improves the
quality of employees’ leisure cultural life.
A Multi-level Talent Management System
The Company has been adhering to the basic principle to train its employees by integrating the strategic objectives of the Company and the
A The Company cares for female employees
growth of the employees, so as to realize the joint improvement of the abilities of both the organization and the employees, as well as the
Protects the rights and interests of female employees such as maternity leave and breast-
mutual achievement and growth of the employees and the Company.
feeding leave, and arranges baby care rooms within the office areas. In addition, it organizes
Suofeiya has established a sound training management system and formulated the Administrative Measures for Employee Trainings and the various recreational and sports activities for female employees to enrich their spare time. The
Administrative Measures for Internal Trainers, so as to ensure the effective implementation and operation of the four aspects of training local branches and subsidiaries of the Company have also organized “Women’s Day”
demands, formulation of training plans, implementation of training and assessment of training effects. activities and lectures on health care for female employees.
B The Company pays attention to the health of employees
The employees’ sense of security is continuously increased through regular physical exam-
ination, occupational health examination, health lectures and other activities, so as to build
health protection walls for employees.
In addition to regular trainings, the Company strongly
supports the examination and evaluation of profession-
C The Company enriches the cultural and sports activities
al qualifications of employees, and organizes job title
Organizes sports culture festivals, Chinese Valentine’s Day activities, reading activities and
assessment and evaluation at various levels among
other activities to activate the cultural life of employees and meet the growing spiritual and
employees on an annual basis.
cultural needs of employees.
31 32
Ⅳ
Rights and Interests
of Suppliers,
Customers and Consumers
33 34
Environmental, Social and Governance Report l Rights and Interests of Suppliers, Customers and Consumers
1 Protection of Rights and Interests of
/Quality Traceability and Process Control/
Customers and Consumers
01
The Company has independently developed a set of
A Comprehensive Quality Management Raw Material Traceability Management System to
realize the overall quality traceability so that each
/Quality Assurance System/ material has its own “ID card” and automatically
To ensure the effective control of product quality, the Company has established and passed ISO9001 Quality Management System,
02 Intelligent production equipment is introduced,
match it with customer orders through the informa-
upgrade automatic flexible production lines and
ISO10012 Measurement Management System, China Environmental Labeling Product Certification System, Certification of Aldehyde-Free tion system of the Company. Tracking is available
special line production and reduce production
Man-Made Board and Related Products, Child Safety Grade Products, National Green Plant as well as other certifications, and has been on the supply batch, production process and
errors;
engaged in product quality control strictly based on the system requirements. The Company has issued Group Quality Management Manual production time of the board through the QR codes.
and Quality Management Measures to carry out resource management, responsibility management, measurement analysis and improve-
ment and product realization for the development, procurement, manufacturing and sales processes, so as to ensure that the final output
products can meet customer satisfaction.
Responsibility Customer
management Board Fitting QR Code Board Fitting QR Code
Customer Reading Device
Resource Quality analysis Flexible Production Lines
management and improvement
Satisfaction
Input Product Output
Requirement Product
realization 03
CCD (charge-coupled device image sensor)
technologies are applied for real-time online
Development Procurement Manufacturing Sales inspection of product dimensions and robotic arm
testing of product/hardware durability to enhance Through logistics integration, the Company has
04
Continuous improvement of quality management system product testing accuracy; successively introduced intelligent three-dimen-
sional warehouses featuring automatic entry and
/Quality Product Standards/ exit of goods, WMS warehouse management
In terms of product quality requirements, the Company has produced products in strict accordance with national standards. In terms of system and TMS transportation management
product safety and environmental protection, the Company has upgraded the product’s environmental protection grade; in 2014, the system of intelligent logistics chain and realized
Company fully improved E1 grade to E0 grade of corporate standard; in 2016, the Company launched Kang-Chun grade (ENF) board with order in-transit tracking, vehicle dispatching and
aldehyde-free substrate; and deeply participated in the drafting, implementation and declaration of GB/T 39600-2021 Classification of signing and payment, improving the accuracy of
Formaldehyde Emission from Manufactured Boards and Related Products and GB/T 39598-2021 Guidelines for Indoor Loading Limits of product shipment and solving the problems of
Manufactured Boards Based on Limit Formaldehyde Amount, thus promoting the environmental protection level of China’s artificial board falsification and missing shipment in the logistics
industry and promoting the high-quality development of the industry. chain.
/Quality Inspection Methods/
To guarantee that the materials used and products produced satisfy the high standard
requirements, the Central Laboratory of Suofeiya has passed the CNAS accreditation in
2012, and the Laboratory is equipped with testing equipment such as Gas Chromatography
Mass Spectrometer (GC-MS), Atomic Absorption Spectrophotometer, Ultraviolet Spectro-
photometer, Formaldehyde Climate Chamber and VOC Climate Chamber for strict control of
the performance of materials and products. Meanwhile, the Central Laboratory has also been
Intelligent 3D Warehouse
awarded the title of Customized Wardrobe Professional Laboratory by the National Wood and
Laboratory CNAS GC-MS
Bamboo Industry Alliance. certificate
35 36
Environmental, Social and Governance Report l Rights and Interests of Suppliers, Customers and Consumers
B
2022
Professional Six-Virtue Services
Adhering to the core values of “Customer First, Innovative Sharing, Professional and Efficient, Honest and Enterprising”, Suofeiya has continuously
In 2022, the Company provided 22 operation trainings, 149 design trainings and 68 installation trainings, with
launched products with high reliability, excellent performance and strong competitiveness, continuously improved the customer service system, and
more than 80,000 trainees, covering over 1,000 + areas and fully empowering dealers. Meanwhile, the
has constantly regarded hearing the voices of customers and consumers as an important measure to promote the development of the Company,
Company has held installation skills competitions for 8 consecutive years to improve service levels; in 2022,
safeguarded the rights and interests of customers and consumers, continuously improved the quality of service, enhanced customer satisfaction, and
the Company held four installation skills competitions, with 166 participating areas and 390 participants. The
finally realized mutual benefits and win-win situations with customers.
Company also organized trainings and competitions in the form of “1+1” to build a national service bench-
mark and better provide installation and delivery services.
2019 The Company has been extending its online services, focusing on customer experience and feedback, and
2009
giving top priority to customer after-sales services. The Company aims to improve customer experience by
In 2019, the service was upgraded to “Suofeiya Super 6+1 Service” to strengthen the upgrading on a repeated and comprehensive basis, operating a 400 national service hotline, a dedicated
bidirectional communication and interaction with customers. “Super 6+1” Service is based complaint mailbox, building an Internet service platform, developing a service platform applet as well as other
In 2009, as the leading company in the industry, the Compa-
on the guidelines of “Six-Virtue Services”, so as to ensure great customer satisfaction network channels to respond to customer demands in a timely manner and effectively improve the timeliness
ny launched Six Virtue Services to focus on six links of the
through the ultimate services of each process and acquire active recommendation from and convenience of the service of the Company. Meanwhile, the Company has promoted the improvement of
services.
customers. stratified and personalized services, continuously expanded the exclusive rights and benefits of customers,
formulated standardized processes and strict service indicators, offered customers more practical, efficient,
01 02 high-quality and all-round convenient services, and boosted customer satisfaction and trust.
Sincerity in Sales Concentration in
Measurement Design
Consideration in
Production
Sincerity in
Sales
Concentration in
Measurement
and Design
Consideration in
Production +1
06 06 Customer
Meticulousness Craftsmanship Empathy in Meticulousness Craftsmanship Empathy in Referrals
in Delivery in Installation After-sales in Delivery in Installation After-sales
2018 2020
In 2018, in order to better serve customers and coordinate the resources of the Company and dealers, the In 2020, the Company launched a brand-new service IP “French Cabinet Butler”, which covers
Company set up a service center, and proposed to make service become the core competitiveness from a the pre-sales, sale and after-sales aspects to provide more intimate and more focused services for
strategic perspective. The Company took the lead in building a complete service system in the whole customized the personalized demands of consumers.
home collection industry and used two major indicators, customer service index (CSI) and dealer service index
The Company has also started the Suofeiya Academy with five campuses: South China Campus,
(DSI), to drive the whole chain of the Group to provide good service.
North China Campus, Central China Campus, Southwest China Campus and East China Campus,
CSI is composed of customer satisfaction, one-time complaint rate, repeated complaint rate, counter housekeeper score mainly focusing on the three major sections of operation, design and installation to launch system-
rate and special deduction items.
DSI is composed of on-time delivery rate, product error rate, complaint rate and service satisfaction. Two indexes are atic course trainings and assist the regions to improve their service levels and efficiency.
promoted continuously through dealer grouping and PK form of each branch factory.
Service
Cabinet butler satisfaction
service
20% Complaint 10% On-time and complete
400 repeated
rate
30% reception rate
complaints
10% CSI 30% DSI
400 one-time
20%
complaint
30%
Product error rate
Customer
satisfaction
Customer service index CSI Dealer service index DSI
37 38
Environmental, Social and Governance Report l Rights and Interests of Suppliers, Customers and Consumers
2 Win-win Cooperation and Mutual D Supplier Selection and Management
Development To guarantee the quality of raw materials and service efficiency of high-quality products of the enterprise, Suofeiya has strictly formulated
the supplier access and assessment system, performed comprehensive assessment from various aspects such as product, quality control,
With the intensified competition in the home furnishing industry and demands of consumers for a better life, drastic changes have taken in
service and management system, followed the rules of fair competition, optimized entry rules for alternative suppliers, established supplier
home furnishing enterprises. Suofeiya upholds the concept of “Win-win Cooperation and Mutual Development” in the supply chain, and
assessment and management system, continuously reinforced the awareness of the suppliers on social responsibilities, and improved the
continues to develop and iterate with its upstream and downstream partners in terms of “Product Innovation, Efficient Operation and
self-management ability and industrial chain iteration level of the supply chain.
On-time Delivery” to ensure the delivery of high-quality products while safeguarding and protecting the rights and interests of its suppliers
and partners, so as to create a supply chain system featuring efficient upstream and downstream collaboration and win-win cooperation in
response to the new challenges brought about by market changes.
The Company’s supply chain operation and management goal is to build an efficient and cost-effective supply chain and provide custom- Supplier admission and assessment system
ers with high-value products and services. After years of development and iteration, the Company’s supply chain has achieved remarkable
results in the timely delivery of customer orders, raw material supply guarantee, joint development of new products, efficient operation of the
supply chain, thus laying a solid foundation for the Company’s sustained growth and high-quality development.
A Advantages of National Industrial Layout and Supply Chain Layout Information collection of Supplier survey/site Transfer to “
potential suppliers (admission) assessment Alternative Suppliers”
Quality supplier resources are On-site audit of products, quality control, Audited “potential suppliers” up to
In order to ensure the efficient delivery of customer orders, the Company has established a perfect national industrial layout and owns eight
included in the “potential supplier production capacity, management standard are transferred to “Alterna-
manufacturing bases now, including Guangzhou, Langfang, Jiashan, Chengdu, Huanggang, Lankao, Qiqihar and Jinhua manufacturing pool” of Suofeiya’s ERP system system, etc. of suppliers and formation tive Suppliers” in ERP system
of Supplier Site Review Report
bases. The Company actively takes the advantages of national industrial layout, and coordinates the production capacity of the manufactur-
ing bases to meet national customer orders. Raw material suppliers of various manufacturing bases have worked together with the Compa-
ny to pursue mutual development and close cooperation, which can effectively guarantee the timely delivery of customer orders and service
quality.
B Joint Product Innovation
Product Accreditation Transfer to
Based on “efficient delivery”, the Company gives full play to the role of value chain introduction, actively investigates and reserves new Report “Qualified Suppliers”
materials, new processes and new products on the supply side, forms a “knowledge base/report of industry research on the supply side”, All-round inspection and testing of physical Suppliers with qualified products will be transferred to
and chemical properties, functions, product “Qualified Suppliers” and sign contracts to confirm
shares industry information with business departments in time, and jointly develops new products according to market customer needs and surfaces, etc. of supplier samples according product standards, prices, cooperation models,
to the process and product standards payment cycles, etc. so as to protect the rights and
technology on the supply side. “Kang-Chun-Ban”, developed by Suofeiya and upstream board enterprises, is the artificial veneer with the interests of both parties
highest environmental protection level at present and is at the leading level in the world. A series of innovative products, such as aluminum
frame cabinet doors for customized wardrobe, UVcabinet doors and cabinet intelligent lighting systems, have been launched in the market,
which have been recognized and favored by consumers, thus injecting new elements and great experiences into customers’ home life.
Product innovation has become an important driving force for the performance growth of the Company.
C Efficient Operation and Cost Optimization
Supplier performance
Order placement and assessment Sunshine
Efficient operation can not only reflect the competitiveness of the Company but also guarantee that customers are provided with cost-effec- procurement (quality control) Procurement
tive products and services. When ensuring efficient delivery of customers, the Company attaches importance to improving the efficiency of Preparation of stock by the supplier, delivery, Assessment of suppliers in terms of on-time delivery, The Integrity Agreement is incorporated into the
payment and online safety stock monitoring product quality, service, price, etc., with high-quality contract signed with suppliers, and the Audit
supply chain operations. With the help of IT systems such as ERP, BI and MES and big data management tools, the operational indicators according to the planned orders suppliers to be granted to further cooperation and Department and the Supervision Department
insufficient collaboration to be rectified/eliminated collaborate and supervise with the supply chain
such as raw material delivery rate and inventory turnover rate have improved significantly. The operation efficiency in target setting and
to maintain an excellent business environment
project promotion optimization has been greatly improved, thus promoting the efficient and continuous iteration of operation indicators. The and the mutual legal rights and interests of both
sides
Company’s supply chain and lean manufacturing department have actively explored the improvement of plate utilization rate. In combina-
tion with the big data on cabinet product size customization, the Company jointly developed the most suitable veneer size for customized
home collection industry with upstream suppliers, so as to improve the veneer utilization rate of the Company, reduce the loss of unneces-
sary raw materials through technology, scientifically promote the optimization of manufacturing costs and better provide customers with
cost-effective products.
39 40
Environmental, Social and Governance Report l Rights and Interests of Suppliers, Customers and Consumers
3 Focus on Product Innovation
Output R&D Achievements
As the first listed company and leading enterprise in the industry, Suofeiya has always
attached great importance to scientific and technological innovation and technology leader-
47 234
47 invention 234 utility model
ship. The Company has one national accredited laboratory; three provincial R&D platforms
patents patents
support product R&D and innovation; 616 authorized patents (including 47 invention patents,
A Insist on product research and development
234 utility model patents and 335 appearance patents); has registered 169 software
copyrights, published 65 papers, participated in the formulation of 13 national standards, 10 335 169
335 appearance registered 169
2001
industry standards and 43 group standards and won 300 + honors from all walks of life.
Suofeiya invented the sliding door wardrobe in 2001; patents software copyrights
2003 launched the classic louver door in 2003;
2011 took the lead in launching the Haina Baichuan storage system in 2011;
2012 In 2012, “Future Wardrobe” witnessed the intelligentization of China’s customized furniture industry;
13 项 10 项 43 项
2019 In 2019, Suofeiya put forward the idea of “entry luxury design”, and led the design fashion and devel-
formulate 13
national standards
10 industry
standards
43 group
standards
opment trend of the industry from the perspectives of customized furniture style, material, craft and
fashion elements.
2022 In 2022, new products such as Kale Series, Boundless Series, Lace Series and Bella Series will be
launched, with the number of newly developed products being 2,345.
List of Some Patent Certificates
Over years of development and guidance, Suofeiya constantly sets a weather vane for the industry from product stylization to style diversifi-
cation, from independent display of terminal products to scenario-based experience & display!
1 11 2
As the first listed company in the customized home furnishing industry, Suofeiya has created a new pattern of large-scale personalized In recent years, the Company has witnessed rapid progress in the application of information
customization of wooden household products in China. In 2011, the Company took the lead in carrying out intelligent manufacturing research, technology and industrialization layout, and has independently developed a number of core
technologies. With the innovation and improvement in the level of intelligent manufacturing International International Domestic
and built the first intelligent manufacturing factory in industry in 2018, which expanded the market size of China’s customized home industry
leading advanced leading
from 87.8 billion yuan in 2012 to more than 400 billion yuan in 2021, making the home furnishing process of consumers more convenient and technology for custom home furnishings, Suofeiya takes the leading position in the global
customized home furnishing industry. In June 2022, experts organized by China Forest Summary of Suofeiya Scientific and
meeting the people’s demand on beautiful home products. Technological Achievement
Products Industry Association in Beijing used online and offline meetings to appraise the new
product of Ultra-matte Skin Ultraviolet Curing Wood Coatings. The appraisal committee
11 1
Construct R&D System agreed that the product was highly innovative and had reached the international advanced
level.
As time goes by, on the way towards the future, with innovation as the engine, Suofeiya has been standing based on the overall layout of the
Scientific and Innovation and
industry, constantly acting as the industry leader, being the “reference benchmark” of the customized home furnishing industry, and being
The Company has been continuously making efforts in the field of environmental protection technological entrepreneurship
the model of Chinese manufacturing enterprises. advancement award
and quality, with 15 scientific research achievements winning provincial and municipal
award
1 2
Presently, the Company has established a comprehensive R&D management system, and is promoting greater standardization and science and technology awards. In 2022, the Company won two science and tech-
process of innovation and development by formulating and implementing a series of systems and measures, such as measures for product nology awards: the Second Prize of Science and Technology Award of China
design and development management, product quality evaluation norms for furniture household products, measures for laboratory testing Association for the Promotion of Science and Technology Industrialization and Innovation Scientific and
the First Prize of South Guangdong Forestry Science and Technology Award. achievement technological
management, management measures for rewarding scientific and technological achievements, as well as rules for operating innovation and
award innovation award
improvement proposals.
Summary of Suofeiya Scientific and
Technological Achievement Awards
Pre-listing Product
Product Research Product design Product R&D preparation launch
Flowchart of Product Design and Development
41 42
Environmental, Social and Governance Report l Rights and Interests of Suppliers, Customers and Consumers
Build innovation team
Established in June 2011, Suofeiya Research Institute is the first specialized scientific research
institute in the closet industry, it is also an innovation center of Suofeiya responsible for product
research and development, process research and development, quality control, participation in
industry standardization, product inspection and material performance testing, as well as external
technical cooperation and exchange, technical personnel training, etc. The Center serves as an
integral part of the strategic planning of the Company’s development, as well as an important
Latest CNAS Accreditation Certificate of
guarantee for the Company to continue to lead the industry.
South China Laboratory of Suofeiya
The Institute has established six laboratories across the country and completed a testing matrix
featuring “strong technical strength, comprehensive testing services” with a large number of
modern testing instruments, equipment and professional staff. The South China Laboratory of
Suofeiya in Guangzhou has been accredited by CNAS, marking it the first national accredited
testing institute in the industry. The Institute has empowered Suofeiya to innovate at all levels of
new product development and design, raw material quality and production process control, and to
The headquarters won the certificate
perform independent product quality testing at an international level in accordance with CNAS of high-tech enterprise certification
for the first time
requirements, so as to ensure that the products purchased by consumers satisfy the latest safety
and performance quality standards.
Moreover, Guangzhou headquarters of the Company was recognized as a high-tech enterprise
for the first time in 2009 and such title is still maintained so far. The Company was awarded the
municipal enterprise technology center in 2011 and passed the certification of provincial enterprise
technology center in 2014. the headquarters passed the
B Improve Innovation Ability certification of provincial enterprise
technology center
National Green Plant
Create an innovation platform
Municipal Industrial
The Company attaches great importance to the development of talent construction and training, builds an external innovation resource Demonstration Enterprise
platform with universities and scientific research units. For instance, the Company has built a “teaching practice base” with South China
Agricultural University, opened a “Suofeiya Class” and jointly established “Customized Home R&D Center” with the Institute of Wood National Service-based Manufacturing
Demonstration Enterprise Guangdong Industrial
Industry, Chinese Academy of Forestry, so as to build a collaborative education mechanism between production and education, and effec-
Honorary Design Center
tively realize the precise linkage between discipline chain, innovation chain and industrial chain. See the following figure for details.
titles
Innovation Resource Platform
Innovation exchange Famous Trademark Provincial Engineering Center
12 universities and 6 national innovation 10 trade associations 5 standardization 6 academic 2 specialized
scientific research units alliances /societies committees journals databases Provincial Intelligent Manufacturing
Industry-University- Industry Standard Paper Information Demonstration Enterprise
Research Cooperation exchange formulation publication retrieval
Suofeiya Innovation Resource Platform Establishment
As of the end of December 2022, the total number of R&D personnel in the Company reached
In terms of cooperation and innovation, Suofeiya has cooperated with five institutions, including the Wood Industry Research Institute of
1,369, and the annual R&D investment accounted for more than 3% of the total investment, which
Chinese Academy of Forestry Sciences and Northeast Forestry University, to undertake the “Energy Saving and Consumption Reduction
laid a good foundation for new product development, quality optimization and cutting-edge
and Safe Production Control Technology in Wood Industry”, a key topic research under the 13th National Five-Year Plan. The Company
technology research.
has cooperated with South China Agricultural University and Nanjing Forestry University to undertake research on furniture odor detection
and control technology; cooperated with members of the Technology Innovation Alliance of Wood/Bamboo Industry of China, National
Innovation Alliance of Customized Home Furnishing, National Innovation Alliance of Veneer Industry and other alliances to undertake
research on new materials and processes; cooperated with scientific research institutes and industry organizations to develop a number of
national industry group standards.
43 44
Environmental, Social and Governance Report l Rights and Interests of Suppliers, Customers and Consumers
C Information Security
Along with continuous development, Suofeiya has also expanded its network. To satisfy the internal business demands, Suofeiya has established subsidiaries or The information security management of the Company has
branches in different regions, and extensive local networks have been interconnected with remote networks across the country into an even larger network which can been strengthened and improved over the years, and the
increase efficiency and competitiveness for the Company. Meanwhile, the Company shall ensure the network security and make balanced consideration on the secu- efforts and indicators have been incorporated into the right
rity of transfer of confidential information between headquarters and branches and among branches, data reliability assurance, the capture, analysis and disposal of track of management, so as to safeguard the information
abnormal traffic, management of equipment of the Group, etc. operation of all aspects of the operations and management of
the Company, and effectively ensure the high-speed develop-
Information security is a system project and the Company’s Information and Digital Center (IDC) has tailored a set of secure and efficient network security solutions
ment and safe operation of the Company with due values.
for Suofeiya based on a series of network security products. The solutions include but not limited to network access mechanism, antivirus software, firewall, virtual
private network (VPN), Internet behavior management equipment, file scanning and monitoring, bastion host, system backup, etc. The Company has established
information systems such as information system management and network security mechanism and authority control to strengthen the security management of data
and information from individual to overall.
01/ 04/ 05/ 07/
The Company has established and continu-
In 2022, the Company has continued to plan and In 2022, the Company has strengthened its The Company has strengthened the core code
ously improved the network redundancy
invest huge funds and manpower to build and external security defense capability and and data security management and introduced
mechanism. With the continuous deepening of
optimize the maintenance of information security upgraded the firewall systems of some a quarantine model under original authentica-
intelligent production, the new and old produc-
application systems, facilities and equipment, branches, strengthened the security defense tion management mode, where developers
tion workshop is increasingly relying on the
providing necessary technical conditions, capability of the Internet borders of the are required to develop software in a
network, and the availability of the workshop
equipment and facilities for information security; Company, so as to better identify malicious supervised and restricted environment to
03/
network can be better guaranteed by
06/
programs/malicious behaviors/unknown prevent data leakage from instant messaging,
establishing dual-line redundancy for
02/
threats and better avoid damages to the web forums, USB peripherals, etc. that could
workshop network equipment and backbone
systems. Meanwhile, the Company has also transfer data outside the network boundaries
lines;
The Company has established a regular data upgraded data backup measures, so as to of the Company; The Company has established and continu-
The Company has continuously established and
improved information security management
norms and responsibility systems, established
backup and security management mecha-
nism, strengthened the security control of
data flow by systematic regular inspections
provide offline backup for high-level data
based on the level of data importance,
effectively avoid viruses or other malicious
ously improved the network access mecha-
nism, strictly controlled the devices that
access the network of the Company, and the
08/
The Company has gradually improved data
emergency plans, enforced security inspections and automated monitoring methods and damages due to online activities, and further areas accessible to visitors are strictly security management and system process,
and documentation, strengthened security means, as well as encrypted storage of enhance the security and reliability of data; controlled to eliminate the possibility of their and to perform regular audits on all users of
training, identified security risks, and increased sensitive information to avoid data security access to the internal systems of the Compa- the Company so as to strictly control the
security investment, etc.; incidents; ny; loopholes;
09/ 12/ 13/
The Company has implemented classification The Company has constructed a vulnerabili- The Company has continuously performed the
and grading management and risk-avoid- ty management platform to implement the assessment of data management capabilities
ance measures for business information and discovery of vulnerabilities, disposal recom- and achievements based on the data
data, customer information data, etc., so as to mendations, and repair methods to individu- management capability maturity assessment
effectively safeguard customer information als, so as to establish a closed-loop model DCMM, which covers all stages of data
and data assets; the Company has also management of vulnerabilities and enhanc- lifecycle management. Furthermore, the
ing the robustness of business systems. The Company has established a special data
10/ 11/
established the Code of Conduct for Data
Security in accordance with this system and information security management of the management organizational structure called
pursued related economic and legal respon- Company will be continuously strengthened Data Governance Committee to comprehen-
sibilities for violators; and improved on a continuous and sively plan and guide the development of data
The Company has researched and applied The Company has developed and applied step-by-step basis, so as to safeguard the management, created a data strategy
dynamic data desensitization techniques enterprise WeChat tools at the market information operation of all aspects of the formulation process, established data model
and tools to desensitize customer-related terminal, and all customer information will operations and management of the Compa- specifications, realized data integration and
information, effectively preventing the be retained within the scope of prevention ny, effectively ensure the high-speed sharing with various application systems of the
leakage of customer information and and control of the Company; development and safe operation of the Company, promoted the formation and
avoiding possible losses arising therefrom; Company and exerted the due values. consistency of data standards, and formulated
management methods to control data security.
45 46
Ⅴ
Environmental
Protection and Sustainable
Development
47 48
Environmental, Social and Governance Report l Environmental Protection and Sustainable Development
1 Adhere to the quality of environmental 2 Build Green Plant System
protection and advocate common Suofeiya has been adhering to the production concept of “Manufacturing Green and Eco-friendly Home Products using Green and
progress of the industry Eco-friendly Production Methods”, and is committed to addressing the green and environmental issues of general concerns in society. By
the end of 2020, Suofeiya East China Production Base and Suofeiya Home Collection (Zhejiang) Co., Ltd. were recognized the National
2021 Green Plants, making the Company the only one selected in the customized cabinet industry; in 2021, the Guangzhou Headquarters –South
2015 The Company deeply participated in drafting two new
national standards for artificial boards-GB/T 39600-2021
China Production Base was also selected for the list of 2021 Green Manufacturing issued by the Ministry of Industry and Information Tech-
Successfully developed
Kang-Chun-Ban with
2019 Formaldehyde Emission Grading for Wood-based Panel
nology; in 2022, South China Production Base of Suofeiya and Suofeiya Home Collection (Chengdu) Co., Ltd. were recognized the National
Suofeiya’s Kang-Chun-Ban with No and Finishing Products and GB/T 39598-2021 A Guide to Green Plants, with the level of green manufacturing and the concept of sustainable development being recognized by the national authority,
2007
No Formaldehyde the Limited Quantity in Indoor Loading for Wood-based
Formaldehyde Addition took the lead in which has realized a plant featuring intensive land use, harmless raw materials, clean production, resourceful waste and low-carbon energy.
Addition and with stable Panel Based on its Ultimate Formaldehyde Emission, which
obtaining NAF Formaldehyde Exemption
E1 grade board, the first awarded quality substrate and The assessment was a certification granted by the national Ministry of Industry and Information Technology for enterprises complying with
Certification issued by EPA of the US were officially implemented on October 1; Suofeiya’s
China Environmental Labelling formulated product
Environmental Protection Agency in the Kang-Chun-Ban was recommended by the National the “Green Development” initiative upon recommendation by the local industry and information department, on-site evaluation by
(Ten Rings Certification) in the standards;
industry, and passed a number of SGS Maternal and Infant Network, and received six authoritative third-party evaluation agencies, assessment and confirmation by provincial industry and information technology authorities, as well as
industry;
determinations in Switzerland; certifications at home and abroad;
validation by experts and public announcement. The election reflects the full affirmation of the national regulatory authorities on the green
manufacturing of Suofeiya.
2020
2016 2022
3
Suofeiya’s Kang-Chun-Ban with
2013 Formally launched No Formaldehyde Addition added Obtained the certification of children’s
safety products and became an enterprise Improve Green Management
Kang-Chun-Ban with No three international environmental
Enterprise E0 grade board, the first
protection certifications, making recognized by seven domestic and foreign
to be used in the industry, far above Formaldehyde Addition;
Suofeiya become the first enterprise authorities in the industry;
the national enterprise standards;
in the industry to obtain the top five EHS Vision EHS Objective
international environmental Creating an excellent EHS operation system, zero major safety accidents; zero regulatory
protection certifications; creating a safe, healthy, green and sustainable non-compliance
working environment and corporate culture
Suofeiya has been recognized by seven domestic
and foreign authorities: A Continuous Optimization of Environmental Safety Management System
EPA NAF Formaldehyde -free Exemption Certification in the United States
CARB NAF Formaldehyde -free Exemption Certification in the United States With the continuous development and growth of the Company, the Company has established an effective,
F★★★★ Certification in Japan rigorous and scientific environmental management system and passed the certification of the three major
SGS Determination in Switzerland systems. Since 2020, the Company and its Environmental Safety Department have been optimizing a
FSC Forest Certification series of environmental management systems such as Administrative Measures for Environmental
Recommended Products by the Green Channel for the Maternal and Infant Products
Protection and Administrative Measures for Environmental Protection Information Reporting and strictly
in National Maternal and Infant Network
implemented these systems. Each plant has firmly complied with all environmental management systems
Child Safety Product Certification.
and strictly implemented environmental management system; meanwhile, each plant has performed
With the popularity of Kang-Chun-Ban, as of September 2021, the number of clients and
orders of Kang-Chun-Ban accounted for nearly 90% of the total number in the market. regular environmental monitoring of waste water, exhaust gas, noise and solid waste, as well as self-mon-
itoring of soil and groundwater, and taken the initiative to disclose the monitoring data. Since the listing, the
Company has been awarded a number of certificates and titles related to environmental protection and
The Company attaches great importance to the environmental protection quality of products and strives to provide healthy and environmen-
energy saving and consumption reduction, such as Model Enterprise of Guangzhou City of Customization,
tal protection home living environment and high-quality products for every consumer. Since the Company obtained the EPA NAF formalde-
China Environmental Labelling Certificate and National Green Plant.
hyde-free exemption certification for the first time in the United States in 2019, Suofeiya has been continuously recognized by many authori-
ties in the world. The Company won the “Children’s Safety Product Certification” in 2022 and has received seven authoritative environ- Suofeiya has been upholding an EHS vision of “Creating an excellent EHS operation system, creating a
mental protection certifications up to now. safe, healthy, green and sustainable working environment and corporate culture”, with an emphasis that
everyone should establish safety awareness, master safety skills and prevent problems prior to occur-
During daily procurement and manufacturing process, the Company also adheres to strict standards, and carries out inspections on plates,
rence. In 2022, the Company has optimized a series of safety and occupational health management
namely initial inspection, bulk sampling inspection and routine sampling inspection, in laboratories recognized by CNAS, with 12 inspection
systems such as Group EHS Responsibility System, Administrative Measures for Safety Accidents and
processes implemented and takes rigorous attitude to guarantee the environmental protection quality.
Administrative Measures for Regular EHS Meetings, and improved the environmental safety management
In addition, the Company insists on sending samples to third-party authoritative testing institutions for inspection every month and system of the Group, so that the systems of environmental protection, safety and occupational health are
publicizing the inspection results, so that the customers can rest assured, which plays a positive demonstration role in the industry. more consistent with the current EHS management practices.
49 50
Environmental, Social and Governance Report l Environmental Protection and Sustainable Development
90%
Since 2017, the Company has been vigorously promoting solar photovoltaic power generation improve the treatment
B Safety Management System and Environmental Emergency Management
projects on roofs of plant buildings, fully utilizing local solar resources and building grid-connect- efficiency of organic
ed distributed photovoltaic power generation systems to save limited coal and oil resources, with exhaust gas up to 90%
or above
All Suofeiya’s plants have adopted interlocking and interlinking fire safety control systems for safety management, which have fully a certain degree of thermal insulation simultaneously. During the reporting period, the solar
1202 38154.24
improved the monitoring network system and further secured the manufacturing processes. All companies in the Group have strictly photovoltaic power generation project has supplied about 12.02 million kWh of green electricity
complied with a series of emergency management systems, clarified emergency management principles, emergency management institu- to the Company and State Grid, convertible to a reduction of 38,154.24 tons of carbon dioxide
12.02 million kWh reduction of carbon
tions, operation mechanisms, emergency security, emergency plan management, etc., and organized at least two comprehensive emer- and 4,555.58 tons of sulfur dioxide, equivalent to saving 3,803.79 tons of standard coal. From of green electricity dioxide
gency plan drills and special emergency plan drills on an annual basis, so as to enhance the emergency response capabilities of employees
4555.58 3803.79
2017 to 2022, the Company has provided about 56.51 million kWh of green electricity for the
in handling emergencies and to ensure that emergencies are within control. Company and the State Grid. In the future, the Company will continue to promote solar photo-
reduction of sulfur save standard coal
To prevent emergencies from affecting the surrounding environment, the Company and its subsidiaries have formulated Emergency voltaic power generation projects. dioxide
Response Plan for Environmental Emergencies and Environmental Risk Assessment Report to predict possible environmental protection
problems, developed emergency preparedness and response control procedures for environmental emergencies, determined the formation
B Water resources and wastewater management
of personnel responsible for commanding and organizing emergency response, and configured rescue equipment for emergencies.
The Company has also prepared special emergency plans such as Emergency Plan for Environmental Emergencies - Air Pollution and Water resource management is also an important part of the social responsibility practiced by Suofeiya. All the plants of Suofeiya have insist-
Emergency Plan for Environmental Emergencies - Fire Accident for failures of waste gas treatment facilities; and Emergency Plan for ed on process control and adjustment from the source and taken a series of water-saving measures. The Company has invested in the
Hazardous Waste Leakage in the process of hazardous waste transportation; and regularly rehearses, summarizes and reviews these construction of a production wastewater reuse system, which reprocesses the wastewater from the terminal sewage treatment station to the
special emergency plans. standard of reuse water, and then finally reuses it for plant equipment cleaning, toilet flushing and other purposes, thereby reducing waste-
water discharge.
4
To effectively achieve the objective of emission reduction, the newly built plants are designed with more energy-saving and consump-
Promote Eco-friendly Operation tion-reducing equipment and facilities in the pre-design stage, that is, design and construction of the overall process for energy saving and
emission reduction. The existing plants have been upgraded with wastewater treatment systems to improve the treatment capacity of
Suofeiya has attached great importance to the construction and operation of energy Exhaust Emission Compliance Rate wastewater, constantly monitor the discharge of wastewater, and reduce the production of solid waste and sludge. In the future, Suofeiya will
management system, adopted diversified energy saving and emission reduction measures,
introduced green environmental protection technologies of water resource and waste water
100 % focus more on the stable operation of wastewater treatment facilities, project technology improvement, water recycling, etc., so as to
highlight the corporate social responsibility of Suofeiya.
treatment, waste recycling, etc., and comprehensively strengthened energy management, Wastewater
water resource and waste water management and waste management, so as to promote the Zero discharge C Waste Management
green and healthy development of the supply chains.
100
Solid Waste Compliance Disposal Rate
In the overall process of waste generation, Suofeiya supervises and controls the overall process
% to reduce the generation or discharge of solid waste from source control and finally dispose in a
A Energy Efficiency Management
compliant manner. In addition, it has established a standardized waste standard management
The Company actively responds to the proposals of energy conservation and emission reduction in the country, spares no efforts to build an system to ensure legal compliance in the process of generation, storage, transfer and disposal,
energy-saving and environment-friendly enterprise, strengthens education and training for all employees on energy conservation and and standardize the classification of source control of each process, make comprehensive use
consumption reduction, actively launches the research and use of new technologies and new techniques to save electricity, adjusts and of the waste with potential use value, and realize the recycling and harmless disposal of the
optimizes the production processes, and focuses on the technical improvement of high energy-consuming sections. The plants have waste.
adopted CNC digital control systems, which can process production process data more quickly and make production forecasts, improve the Through process optimization and continuous exploration, the Company has comprehensively
utilization rate of boards and effectively reduce the waste of wood resources.
utilized some of the raw materials, and reduced the solid waste generation by improving the
Based on advanced industrial technology and intelligent equipment, the Company is dedicated to researching packaging method of raw materials. In the future, Suofeiya will focus more on the management
and developing new production processes, eliminating outdated processes, technologies and equipment with of solid waste, as well as the saving and resource utilization of solid waste throughout the life
high energy consumption, promoting green procurement and the design of reduced packaging materials, and
cycle, from raw materials to products.
improving the efficiency of resource recycling. Furthermore, the Company is actively promoting clean
production, energy conservation and emission reduction, continuously promotes the comprehensive use of
clean energy such as photovoltaic power generation and natural gas, and eliminates the use of fossil energy
so as to contribute to the reduction of global greenhouse gas emissions. 5 Promote Green Office
To better reduce factory emissions, the plants of the Group have responded to the national control of heavy
Based on the concept of green development, the Company actively practices the culture of green office, encourages employees to strength-
pollution weather and ozone in summers by upgrading the exhaust gas treatment facilities of the plants of the
en their sense of responsibility and environmental protection, adopts LED energy-saving lamps and lanterns in the office area, highlights
Group, or technically modifying the exhaust gas collection system, controlling the unorganized emissions of
exhaust gas to organized emissions, upgrading the exhaust gas treatment process and upgrading the level energy-saving lighting, electricity and water conservation, garbage classification, promotes paperless office, cultivates low-carbon behav-
of exhaust gas treatment. For example, the new exhaust gas units are processed by dust removal + RTO ioral habits, strengthens internal energy conservation and environmental protection publicity, creates a good atmosphere of green office, and
exhaust gas treatment system, which adopts the method of combustion to improve the treatment efficiency educates employees on green office and life styles.
of organic exhaust gas up to 90% or above.
51 52
Ⅵ
Public Relations and
Social Welfare
53 54
Environmental, Social and Governance Report l Public Relations and Social Welfare
1
In the first year after project startup, the Company has worked together with charitable
Support medical institutions and partners to construct six “Children’s Bookstores” in Chongzuo City of Guangxi, Liuzhou
public health undertakings City of Guangxi, Shangluo City of Shaanxi, Wuhan City of Hubei, Haikou City of Hainan and
Liangshan Prefecture of Sichuan. In the future, the project will be steadily promoted and
In 2022, the Company “tailored” a series of high-quality environmentally-friendly products for the gradually developed, in order to create better reading conditions for more schools and
nursing room, children’s book library and medical care space in the outpatient and emergency area of students in need.
Shanghai Children’s Medical Center, creating a good medical atmosphere for children and their
families, promoting the development of medical care projects such as “tear-free hospital” and
“moving medical care”, and supporting the construction of projects that aim to improve the medical
conditions in the country.
4 Promote Academic Research
As of the end of 2022, the Company worked together with dealers in various regions and provided and cultivates the talents
medical environment construction support for many medical institutions and elderly service institutions
such as Jiangsu Women and Children Health Hospital, Shenzhen Maternity &Child Healthcare Hospi- In August 2022, the awarding ceremony of the doctoral innovation and entrepreneurship
tal, Hubei Xiangyang Central Hospital, Wuhan Union Hospital Pediatric Hematology Department, practice base of China Information Economics Association was held in Suofeiya, which attract-
Nanjing Children’s Hospital, Shandong Pingyi County People’s Hospital and Hubei Guangshui ed twelve doctors to enter the enterprise to carry out research. As the leading customized
Women and Children Health Hospital. In the future, the Company will continue to promote and support enterprise in China, the pioneer of customized wardrobe in China and the pioneer of digital
the public health undertakings. intelligence & upgrading in the industry under the context of global digitalization and intelli-
gence, the Company took the equality and open communication attitude towards the 12
doctors who joined in the research, provided research support, and promoted the training of
2 Support Public Benefit Activities senior academic talents.
and Develop Social Welfare
5 Care for Groups in Difficulties and Sincere
The Company actively advocates voluntary blood donation public welfare activities, takes practical
actions and provides solid backing for saving lives, and transmits love and positive energy to the
society. In 2022, Suofeiya in Hubei Province held a voluntary blood donation activity for the third Contribution to the Society
consecutive year. With the concept of charity and love, employees actively signed up and participated
in the activity, during which the total blood donation exceeded 20,000 ml. In 2022, the Company made donations to the charity fund of Guangzhou Chamber of Commerce for charitable projects in the Guangdong
Poverty Alleviation Day and a series of charitable activities carried out by Guangzhou Federation of Industry and Commerce. In addition, the
The Company cooperates with the public welfare and environmental protection team of Loving Trees,
Company have cared for poor families and people in surrounding areas for many years, and expressed sympathy to low-income house-
and regularly holds the activities themed by “Tree Planting and Loving Trees” every year, and
holds, extremely poor households and children in difficulties in surrounding villages and delivered food, daily necessities and holiday bless-
organizes employees and their families to carry out a series of activities such as tree planting and
ings to them during traditional festivals such as Mid-Autumn Festival and Spring Festival.
afforestation, tree planting knowledge contest and treasure hunt.
The Company has established eight production bases in China. The Company always adheres to the concept of “developing with enter-
3 Provide Assistance in Basic
prise and achieving win-win development with society” during base site selection and construction and always cares for the surrounding
residents. In the future, the Company will continue to deeply develop social welfare undertakings and create more value and returns for the
Education Development society.
It takes ten years to grow a tree and a hundred years to bring up a generation of good men. Over years
of development, the Company has continuously provided support for kindergarten, primary school,
6 Tax Payment According In FY 2022, the tax paid by the Company
8.56
junior high school and senior high school education. The Company has supported the construction of
to Law
in accordance with the law amounted to RMB
dozens of schools, including famous schools such as Pazhou Experimental School of Guangzhou
Zhixin Middle School, Licheng No.2 Middle School of Jinan City as well as the schools in remote areas
Since its establishment, the Company has always adhered to compliant opera-
in Guangxi and Yunnan through charitable donations or tax reduction, thus providing a good learning
tion, strictly implemented related national laws, regulations and rules on finance
environment for a large number of students. million
and taxation, practically fulfilled its tax obligations, and made its due contributions
In 2022, the Company launched the “Children’s Bookstore” public welfare project, and worked to the national and regional economic development.
together with China Charity Federation and five regional dealers of Suofeiya to create a good reading
environment for children in underdeveloped areas, help children improve their learning and thinking
abilities and broaden their horizons. According to students’ age groups and usage habits, the
Company designed a final beautiful, childlike and easy-to-use scheme.
55 56
Environmental, Social and Governance Report l Future Outlook
Future Outlook
In the future, the Company will adhere to the core values of “Customer Foremost, Innovation and Sharing, Professional and Efficient, Honest and Progres-
sive” and make continuous contributions on environmental protection, employee safety protection, consumer protection, corporate governance and social
welfare undertakings, give full play to corporate social responsibility and contribute to the society with practical actions.
57 58