DR Corporation Limited 2023 Environmental, Social and Governance Report About this Report 01
About this Report
This report is the Annual Environmental, Social, and Governance Report released by DR Corporation Limited. Adhering to principles of materiality, quantifiability, balance, and consistency, it focuses on disclosing DR
Corporation Limited's philosophy, significant progress, achievements, and future plans in environmental, social, and governance aspects, covering the period from January 1, 2023, to December 31, 2023. Any inconsistencies
with the coverage period will be explained in specific sections of the content. Performance indicators in this report cover the Company's core and important business units, including operating offices and 528 retail stores
within mainland China, Hong Kong, and France.
Basis of Preparation Scope and Boundary of the Report Title Clarification
This report is primarily based on the Global Reporting Initiative Unless otherwise specified, the policies, statements, and data in this For ease of expression and reading, "DR Corporation," "DR Group,"
(GRI) Standards, the United Nations Sustainable Development report cover the actual business scope of DR Corporation Limited, "the Company," "we" in this report refer to Corporation Limited.
Goals (SDGs) Business Action Guidelines, and the Corporate ESG consistent with the Company's annual report. Unless otherwise "DR","DR Diamond Ring" in this report refer to a jewelry brand owned
Disclosure Guidelines published by the China Enterprise Reform and stated, the currency mentioned in this report is denominated in RMB. by DR Corporation Limited
Development Society. It aims to disclose meaningful environmental,
social, and governance performance information and report on the Unless otherwise indicated, the terms used in this report have the
transparency of disclosures, responding to the information needs of same meanings as defined in the Company's 2023 Annual Report.
stakeholders.
Source of Information and Reliability Confirmation & Approval Accessing and Responding to this Report
Statement
The information used in this report is from DR Corporation Limited, This report has been confirmed and approved by the Board of The electronic version of this report can be viewed and downloaded
and the Board of Directors is responsible for the truthfulness, Directors for release. from the information disclosure website designated by Shenzhen
accuracy, and completeness of the report content. Stock Exchange, i.e., Juchao Information Website (www.cninfo.
com.cn), and from the official website of the Company (www.
darryringgroup.com). If you have any questions or suggestions about
the report, you can send an email to ir@darryring.com or call 0755-
86664586.
DR Corporation Limited 2023 Environmental, Social and Governance Report Message from the Management 02
Message from the
The Company values sustainable development. Adhering to an attitude of fairness, openness, co-creation, and dedication, we have established good interactive relationships
with numerous consumers, suppliers, shareholders, and other stakeholders. By continuously improving in various aspects such as products, services, responsibilities, supply
Management
chain, organizational development, and employee development, we solidify the foundation for the Company's sustainable development to earnestly practice and vigorously
move forward. We are committed to building the Company into an outstanding entity that embodies "compliant governance, cherishing resources, focusing on business ethics,
emphasizing information security, and caring for employees." In 2023, the Company perfected its sustainable development governance structure. At the board level, a Strategic
and Sustainable Development Committee was established, leading the work of Sustainable Development Guidance Workgroups and Sustainable Development Offices. The
Strategic and Sustainable Development Committee is responsible for the review and supervision of the Company's long-term development strategy and ESG matters, while the
Sustainable Development Guidance Workgroups conduct research and analysis on the Company's ESG status and risk mitigation, and the Sustainable Development Offices
are responsible for the daily execution of ESG-related work and collection of relevant information and data. This three-tier structure collectively promotes the implementation
and continuous improvement of the Company's ESG management.
“ The Company has made comprehensive plans and
implementations in governance structure, investor
introducing unique products and experiences through
the construction of an intellectual property system
various benefits, the Company focuses on the devel-
opment and work-life balance of employees, enabling
communication, compliance operations, business in- and a culture of innovation among all employees. them to achieve self-improvement with the support
tegrity, and anti-corruption to ensure the Company's of the Company, and continuously contributing to the
operations are healthy, standardized, and sustain- The Company ensures the high quality of its products development and improvement of the community, pro-
able. The Company operates the General Meeting through strict quality selection restrictions, review moting the realization of the true love mission.
of Shareholders, Board of Directors, and Board of processes, and regular supplier assessments. The
Supervisors legally, strengthens communication Company has also established a rigorous supply The Company strictly adheres to environmental
with investors, and improves the investor relations chain management system, in order to promote protection regulations, integrating green operation
management system. From multiple dimensions, the sustainable development, and ensure continuous concepts and environmental protection into its op-
Company combs through operational compliance to progress and growth of suppliers through responsible eration management. Through measures such as
avoid risks, continues to implement anti-corruption procurement, thereby guaranteeing users' true love improving energy efficiency, reducing carbon footprint,
policies, and improves a series of detailed integrity experience. and optimizing resource utilization, we respond to cli-
system processes. mate change and achieve sustainable development.
The Company is committed to providing employees Meanwhile, in various aspects such as store design,
Through product innovation, service enhancement, with a comfortable and fair employment environment, construction, and operation, the Company adopts
and manufacturing process innovation, the Company providing opportunities for growth and development, energy-saving, water-saving, material-saving, and
provides a unique true love experience for every cus- and ensuring that every employee enjoys the rights emission-reducing measures, reduces environmental
tomer. We are committed to creating high-quality in- granted by local laws and regulations. Through impact, improves resource utilization efficiency, and
novative products and ultimate services, continuously setting up communication channels and providing conveys green and low-carbon concepts to customers.
”
With the vision of becoming a "global leader in true love culture " and bearing the brand mission of "helping more people express love, and letting love be happy and lasting,"
the Company strives to spread and witness true love and romance in the world, and continues to provide high-quality jewelry products and unique true love culture experiences
and services for global consumers. To achieve this, we will continue to enhance our management capabilities, focus on sustainable development issues facing humanity,
图片待替换 balance various interests of all parties concerned, and strive to create more value for society, shareholders, consumers, and employees.
DR Corporation Limited 2023 Environmental, Social and Governance Report Our 2023 03
Our 2023
Cumulative number of
Key ESG Performance for 2023 customers served
1.75 Total number of
Profit Million Person
brand followers
68.96 30+
Total number of Total electricity consumption
retail stores
528 Million RMB Million Person 83,423.05
GJ
Stores
Total number of
Revenue full-time employees
2,180.28 3,197
Million RMB Person
DR Corporation Limited 2023 Environmental, Social and Governance Report Our 2023 04
Awards and Honors
Panoramic Network of Board Magazine Frost & Sullivan Shenzhen Standard National Business Daily
Shenzhen Certification
Panoramic Investor Relations Gold The 18th China Listed Company Certification of Market Position Certified Enterprise of "Deep The 13th China Listed Company
Award [2022] — Group Award: Best Board of Directors Gold Roundtable as "World No.1 Engagement Standard, High Quality" Shenzhen Reputation List Award for "Most
Institutional Communication Award Award — Board Value Creation Ring Brand" and "World No.1 Standard Certification Growing Listed Company in Big
Award Diamond Ring Brand" Consumption"
May 2023 May 2023 August 2023 September 2023 November 2023
February 2024 January 2024 January 2024 January 2024 December 2023
"Ju Dong Mi" Roadshow China and COMEIN FINANCE China Light Industry Investment & CCTV
excellence IR Development Association
"Ju Dong Mi" 2023 Best Investor The 7th China IR Annual Awards Best Interactive Communication IR China Product Quality Assurance "Big Country Brand" 2023 Annual
Relations Company Award ("Retail "Best Annual Newcomer Company" Team of 2023 Award for Excellent Reputation and Image Brand Award
and Social Services Industry") Quality Assurance
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Strategy and Management 05
ESG Strategy and Management
Vision：To be a global leader in true love culture
ESG Strategy and Model
Core value
Company Value Creation Model The one & Only
Performing Acting Technology
Responsible Innovation and
Sourcing and Brand Mission: To help more people Inheritance
promoting express their love and make it last longer
Advocating
Delivering Caring Development with
about Employee Leading True Low Carbon and
and Community Love Witness and Environmental
Transmission Protection
Strategies
Responsible business
Driven by true love, long-term development High-quality raw materials,
Governance Product
conducts technology innovation and inheritance
Equal and friendly career Witnessing and serving the true
Employee Customer
environment and family happiness love of costomer’s entire life.
ESG Achievement & Assessment
Partners' common Green development and
Society Environment
development climate change response
Sustainable Development Action
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Strategy and Management 06
ESG Framework and Contribution to SDGs
Solidify corporate governance structure, strengthen Establish and implement leading international supplier
s Pr o d u c t
investor communication es s et hic in n o
v a ti responsibility standards
u sin on
db an
Operate with responsible business conduct and e an ds Ensure long-term stable cooperation and key suppliers'
nc er v
compliance na ic e compliance with supplier responsibility standards
er
g ov en
ha
e
at
nc
or
em
rp
Regulation Adherence
Co
en
t
Em
Enhance the strength and breadth of witnessing true Safeguard employee rights and enhance employee
ov e
pl o y
love and conveying it value
g a n d s p re a d in g tr u e l
e e g ro
Increase fan attraction; continuously serve over one Support social development and promote social
million couples harmony
w th a n d c o m m u n i
Leadership Contribution
e s si n
ty w
W itn
elfa
re
Promote industry craftsmanship and product Reduce energy consumption and lower carbon
innovation emissions
Driving
Provide comprehensive true love services to Response Reduce unit energy consumption and unit greenhouse
Pr
force
od
n
customers gas emissions
bo
uc
nn
-c
ar
ti
ov
at
ion low
&
an en
ds gre
erv nd
ice ea
enh ang
ancem e ch
ent Climat
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Strategy and Management 07
ESG Management System Coordinated by the Company's chairman, and its responsibilities include:
Researching and proposing suggestions for the Company's long-term development
strategy and special plans;
ESG Governance Structure and Functional Responsibilities Studying and proposing suggestions for major investment and financing schemes
requiring the Board approval according to the Company's Articles of Association;
Researching and proposing suggestions for major capital operations and asset
To meet the strategic and sustainable development needs of the Company, to develop and implement
management projects requiring the Board approval according to the Company's
environmental, social, and governance (ESG) work, and to enhance the Company's core competitiveness Articles of Association;
Strategic and
and sustainable development capabilities, the Company established a special Strategic and Sustainable Studying and proposing suggestions for other significant matters affecting the
Sustainable
Development Committee of the Board of Directors, and gradually improved the Company's ESG system Company's development;
Development
construction in 2023, integrating ESG management into the Company's daily operations. Reviewing and supervising ESG matters of the Company, including strategic
Committee
planning, goal setting, policy formulation, execution management, risk assessment,
Additionally, the Board of Directors and senior management participated in ESG training and capacity- performance evaluation, information disclosure, etc., and reporting to the Board;
building activities organized by the Company, including the ESG report kickoff meeting and advanced ESG Inspecting the implementation of the above matters;
management training courses. Legal regulations, rules, regulations, regulatory requirements, and other matters
authorized by the Board.
DR Corporation ESG Governance Structure
Board of Directors Strategic and Sustainable Composed of executives and department managers of the Company, and its
Decision-making
Development Committee responsibilities include:
Conducting research and analysis on the Company's ESG status, providing a
Sustainable Development decision-making basis for integrating ESG into the Company's overall strategic
Management Executives Sustainable planning;
Advisory Working Group
Development
Properly mitigating ESG risks and promoting continuous improvement of significant
Advisory ESG issues;
Sustainable Working Group Establishing inter-departmental linkage mechanisms for ESG work;
Implementation
Development Office Formulating implementation measures for ESG strategies and goals, making
requests to the executive level;
Regularly reporting the implementation results of various work to the Committee.
Various
Departments
Composed of ESG coordinators from various departments, and its responsibilities
Sustainable include:
ESG Implementation
Development
Practices Daily execution of ESG-related work and tracking of related effectiveness;
Office
Collecting ESG-related information and data.
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Strategy and Management 08
ESG Materiality Analysis DR Corporation's 2023 material issues distribution matrix
Materiality Analysis Process Product quality and safety management
Management of public welfare Business ethics
and employee volunteers
In 2023, the Company conducted a comprehensive analysis and assessment Supplier code of conduct
Product innovation and
Materiality to external stakeholders
development
of the materiality of ESG management issues for stakeholders. Combining its Risk management system
ESG governance structure
own business development and external research, the Company conducted
Protection of customer rights and customer service
questionnaire surveys among stakeholders, including employees, customers, Transparency and traceability of raw materials Product lifecycle management
government and regulatory agencies, suppliers, investors, media, etc., to identify Employee diversity and inclusivity
Zero carbon targets and Supplier ESG management
the most important ESG issues for the Company and form a materiality analysis climate change adaptation Society care and social assistance
Employee health and safety Employee empowerment and incentives
matrix. The progress made on material issues in 2023 will be explained in Protection of shareholders' rights Supplier training and capacity building
subsequent sections. Energy and waste management Anti-Corruption and Protection of employees’ legal rights
Anti-Bribery and interests
Employee communication and benefits Information security and privacy protection
Workplace environmental protection awareness and behavior advocacy
Through benchmarking with peers, preliminary Internal and external reporting and whistle-blower protection
research such as regulatory and rating agency
Identification requirements and industry trend assessments, and
of material communication with stakeholders, material issues that
issues
are significant to DR Corporation and stakeholders
are identified.
Materiality to DR Corporation
Through anonymous questionnaire surveys, the
Prioritization issues are re-identified based on their impact on Governance Environmental Social
of material internal stakeholders and the materiality of decision-
issues 01 ESG governance structure 07 Zero carbon targets and climate 11 Protection of employees’ legal rights 19 Information security and privacy
making for external stakeholders, and then prioritized change adaptation and interests protection
02 Business ethics
in conjunction with external research. 08 Product lifecycle management 12 Employee diversity and inclusivity 20 Supplier code of conduct
03 Risk management system
04 Anti-Corruption and Anti-Bribery 09 Energy and waste management 13 Employee health and safety 21 Supplier ESG management
10 Workplace environmental protection 14 Employee communication and benefits 22 Supplier training and capacity building
05 Internal and external reporting
awareness and behavior advocacy
The Company's senior management reviews and and whistle-blower protection 15 Employee empowerment and 23 Transparency and traceability of raw
Review and 06 Protection of shareholders' incentives materials
confirmation approves the process and results of the material issue rights 16 Product quality and safety management 24 Management of public welfare and
by the assessment, ensuring compliance with Company 17 Product innovation and development employee volunteers
Company policies, ESG strategies, and disclosure requirements. 18 Protection of customer rights and 25 Society care and social assistance
customer service
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Strategy and Management 09
Stakeholder Communication and Engagement
Stakeholder
Composition Shareholders Regulatory Social
Customers Employees Suppliers Communities
and Investors institutions organizations
Investors Government authorities Domestic and All employees Engineering suppliers Key special groups Media
at all levels international consumers Administrative suppliers NGOs
Shenzhen Stock Raw material or Industry associations,
Exchange processing suppliers etc.
Representatives
China Securities Wedding planning or
of Stakeholders
Regulatory Commission KOL suppliers
Company business Corporate governance Product innovation and Salary and benefits Stable financial Contribution to the Good cooperative
performance and compliance design Capacity building and performance and sustainable development relationships
Financial performance operations Product quality training payment policies of communities Transparent information
Stakeholder and ESG planning Environmental protection assurance Open and transparent Fair and transparent Conveying and communication and
Focus Areas Corporate governance and climate change Customer service development pathways selection procedures safeguarding true love sharing
and risk management Protection of the guarantee Work-life balance Fair, just, and Industry common
Investor communication rights and interests of Overall social Employee health and transparent procurement development
and interaction customers, employees, responsibility safety environment
and other stakeholders performance
Regular disclosure of Participation in relevant Pre-sales Union and employee Supplier training Welfare activities Media activities and
information meetings communication representatives Supplier audits and Complaint hotline communication
Communication Online/offline investor Institutional After-sales service Online communication communication Project cooperation
Participation communication communication Routine communication platforms Company official
Methods Phone and email Regular report (such as customer visits, Employee complaint website, public accounts,
communication submission etc.) hotline and other public
Marketing and branding Face-to-face meetings channels
activities with executives and
other internal events
Corporate Governance and
Business Ethics
The Company continues to strengthen its governance structure, ensuring
fairness, integrity, responsibility, and efficiency in business activities through
responsible business conduct, promoting social well-being and harmony.
Our Goals
Establish a sound corporate governance model to effectively protect investor rights
and ensure comprehensive compliance in operations.
Our Progress
The Company's General Meeting of Shareholders, Board of Directors, and Board of
Supervisors have been orderly convened, and resolutions have been effectively passed.
Diversified and timely communication channels with investors have been established.
Comprehensive compliance in human resources, fund management, tax governance,
privacy protection, and other areas has been steadily progressing.
Supporting to SDGs
DR Corporation Limited 2023 Environmental, Social and Governance Report Corporate Governance and Business Ethics 11
Establishing Sound Corporate Governance Structure and Operations
Corporate Governance
The Company operates General Meeting of Shareholders, The General Meeting of Shareholders is the Company's highest governing body. In 2023, the Company held two shareholders' meetings, including one extraordinary
Board of Directors, and Board of Supervisors according to shareholders' meeting and the 2022 annual shareholders' meeting. The convening and holding procedures of the two shareholders' meetings comply with laws,
relevant laws and regulations such as the Company Law, the regulations, rules, and the Company's Articles of Association. The qualifications of attendees and conveners are legitimate and effective, and the voting procedures and
Securities Law, the Code of Corporate Governance for Listed results of the meetings are legal and effective. Shareholders or their proxies voted on various meeting resolutions through on-site and online voting, and all resolutions
Companies, the Rules Governing the Listing of Shares on the were unanimously passed by vote.
ChiNext Market of Shenzhen Stock Exchange, and Shenzhen
Stock Exchange Guideline No. 2 on Self-Regulation of Listed The Board of Directors is the corporate governance body designated by the General Meeting of Shareholders to exercise governance functions on behalf of the
Companies - Standardized Operation of Listed Companies on Company. In 2023, the Company's Board of Directors and its various specialized committees orderly convened to discuss and make resolutions on key reports, financial
the ChiNext Market, establishing a sustainable development decisions, internal control and internal audit systems, appointment of new directors, director and senior executive compensation plans, engagement of external audit
management system, timely disclosing relevant information to firms, regulations on executive shareholdings, and management of related-party transactions. All resolutions of the Board of Directors were passed unanimously.
ensure compliance, continuously enhancing communication
The compensation of executives (executive directors) is determined based on their positions, the Company's compensation system, and industry salary levels. It
with investors, and improving the investor relations
comprises fixed compensation and performance-based compensation, with the latter depending on both Company performance and individual achievements. Key
management system and communication channels.
performance indicators include but are not limited to company performance metrics.
General
Audit Committee
4 Person
Meeting of
Shareholders
7 Person 3 Person
Strategic and Sustainable
Development Committee Number of directors
Board of
9 2
Directors Person Number of
Person independent directors
Nomination Committee
Number of male directors Number of directors with a background
in risk management (including
accounting and legal backgrounds)
3 Person
Executives
Remuneration Committee Number of female directors
Number of directors with an accounting
background
DR Corporation Limited 2023 Environmental, Social and Governance Report Corporate Governance and Business Ethics 12
Investor Communication and Protection
The Company has always attached great importance to investor relations, continuously building and
Case Company's External Communication Situation in 2023
exploring models for investor relations management, promoting two-way communication with investors,
and striving to safeguard their interests. The Company strictly complies with relevant laws and regulations
such as the Company Law of the People's Republic of China, the Securities Law of the People's Republic
of China, the Guidelines on Investor Relations Management of Listed Companies, and internal regulations The Company issued a total of 4 regular reports (excluding summary reports) and 111 interim reports
such as the Company's Articles of Association, adhering to the basic principles of "full compliance, equal (excluding investor relations activity record form).
treatment of investors, proactive communication, honesty, and integrity," ensuring that information disclosure
is truthful, accurate, complete, and timely, and ensuring that all investors have fair access to information. The Company conducted investor research communication activities 36 times online and on-site, with
nearly 700 investors received (including nearly 500 institutional investors).
The Company has established a comprehensive investor relations management system and set up a
dedicated investor relations position to strengthen communication with investors and sell-side analysts, The Company replied to 110 interactions on the irm.cninfo.com.cn platform.
enhance the capital market's understanding and recognition of the Company. In August 2022, the Company
formulated the Investor Relations Management Policy in accordance with relevant regulations and the The Company held 2 general meetings of stockholders with an average attendance rate of 88.19%.
Guidelines on Investor Relations Management of Listed Companies. In 2023, based on the revised
Shenzhen Stock Exchange Guideline No. 2 on Self-Regulation of Listed Companies - Standardized The Company's Investor Relations Department has established a regular information collection and
Operation of Listed Companies on the ChiNext Market and other relevant regulations issued by the feedback mechanism to ensure that investors and shareholders are promptly informed of the latest
Shenzhen Stock Exchange, the Company revised the Investor Relations Management Policy based on developments in the business departments. Additionally, the department promptly provides feedback to
its operating environment, clarifying the content, methods, organization, and implementation of investor the management on investor concerns and suggestions collected from the “irm.cninfo.com.cn” platform,
relations management. IR mailbox, and daily research, for management decision-making reference. In 2023, the Company further
deepened communication with sell-side analysts, with securities firms publishing approximately 40 research
The Company continues to standardize the process of investor relations management to improve efficiency,
reports on the Company throughout the year (not a complete count). Among these, six reports achieved
maintain consistency, and ensure smooth communication with investors to the greatest extent possible
initial coverage, contributing to the Company's presence in the capital market.
through telephone, new media platforms, the official "DR Corporation Limited" WeChat public account, fax,
email, the "Investor Relations" section of the Company's official website, and on-site reception. In 2023, the
6
Company continued to strengthen comprehensive and effective communication with investors, ensuring that with securities firms publishing approximately
small and medium-sized shareholders have the right to fair and impartial access to Company information. 40 research reports on the Company
It held regular online performance explanation meetings for all shareholders and disclosed daily research throughout the year (not a complete count)
contents of investment institutions through the Investor Relations Activity Record Form. The Company also reports achieved initial coverage
40
actively disclosed bilingual versions of its annual report and sustainability report, publishing financial and year (not a complete count)
non-financial information to global investors. year (not a complete count)
DR Corporation Limited 2023 Environmental, Social and Governance Report Corporate Governance and Business Ethics 13
Standardizing Responsible
Business Conduct
The Company continuously standardizes responsible business
operations to ensure corporate compliance and governance.
Ensuring Compliance in Business Operations
The Company conducts compliance risk assessment and control diligence, mid-investment monitoring, and post-investment review of consulting agencies to leverage overall advantages and ensure
in various dimensions, including labor compliance, contract invested assets. The investment decision-making process is stratified compliance with domestic and international tax environments.
management, fund usage, and data privacy in 2023. based on asset risk categories and investment amounts, with any
member of the decision-making group having veto power to minimize Regarding data privacy compliance, the Company refers to the EU’s
In 2023, the Legal Affairs Department and Human Resources investment risks. Simultaneously, the Audit Department focused on GDPR to conduct comprehensive inspections of internal and external
Department organized labor compliance training, addressing labor auditing raised fund storage and usage, including account deposit data to determine data categories, storage locations, and sensitivity.
consultation issues, the latest labor case precedents, providing status, balance changes, specialized use, non-raised investment The Company provides employees with GDPR training to ensure
relevant legal interpretations, guiding case studies, and answering project usage, appropriate approval, compliance with regulatory they understand how to handle data compliantly. The Company
frequent labor relations risk questions to prevent labor employment requirements, usage progress, project income, and financial product regularly reviews and updates its privacy policies, clarifying the
risks. To further enhance contract document management and purchases. lawful processing of data, and establishes a periodic risk assessment
standardize the transfer and custody of contract documents, the mechanism to monitor and respond promptly to potential threats that
Legal Affairs Department designated contract administrators in The Finance Department established a flexible and adaptable global may affect GDPR compliance.
each department, and established departmental contract document tax management framework to ensure tax compliance and efficiency
management ledgers, gradually achieving the standardization and in various countries. Since 2023, the Company has established To achieve visualized business processes, evidence-based
institutionalization of the Company's contract document management. subsidiaries in Singapore, the United States, and Malaysia and execution, and streamline business execution processes, the
implemented localized operation strategies. To ensure tax compliance Operations Management Department established smooth and
The Asset Management Department enhanced the compliance of globally, the Company not only hires professional agencies for its efficient business standard operating procedures and authorization
the Company's asset management process, implementing full-cycle overseas subsidiaries but also continues to cooperate with domestic systems in 2023.
management and specialized management for pre-investment due
DR Corporation Limited 2023 Environmental, Social and Governance Report Corporate Governance and Business Ethics 14
Business Integrity and Anti-Corruption
The Company considers corruption as a red line in its operations. The Company has published the Anti-
Corruption Policy on its official website, clearly defining various corrupt behaviors that the Company has First Line of Defense
zero tolerance for, standardizing guidelines and reporting processes for accepting gifts, conflicts of interest,
and more. Simultaneously, the Company has internally developed a series of detailed integrity system
processes, detailing supervision and reporting, declaration of conflicts of interest, acceptance of gifts,
integrity construction, and reward and punishment systems, which have strongly constrained the Company's All the business departments
employees.
By signing standard contracts and integrity agreements with suppliers, the Company ensures that suppliers
fully understand and adhere to principles of fair trade, business ethics, and confidentiality standards. The
agreements stipulate equal integrity obligations for both parties and the accountability mechanism for Second Line of Defense
corruption cases, and the Company discloses the contact information of its Audit Department to partners. In
2023, the coverage rate of integrity agreements signed with perennially stable and key suppliers reached
100%.
Finance Management Department + Risk
The Audit Department independently conducts audits and reports to the Board's Audit Committee and Control Department + Legal Department +
Offline Sales Operations Department + Heads
audit supervisors. In 2023, the Audit Department completed a total of 9 planned special audit projects,
of Each Business Department (Management)
with 63 audit recommendations proposed and a corrective completion rate of 98%. Additionally, the Audit
Department completed 14 ad-hoc audit projects in 2023, with 18 audit recommendations proposed and a
corrective completion rate of 90%. The Audit Department also conducts engineering audits to ensure the
authenticity and accuracy of the capacities of store decoration projects, as well as the construction quality in
Third Line of Defense
line with the Company’s requirements.
The Company has established a three-line defense mechanism, clarifying the responsibilities of employees
in various business departments, the Finance Management Department, Risk Control Department, Legal Audit Department + External Audit +
Department, heads of business departments, and internal and external audits. Continuous Supervision by Brokerages
The Audit Department publishes integrity promotional articles monthly, summarizing real or online cases
and reporting channels to enhance the integrity awareness of employees in all defense lines.
DR Corporation Limited 2023 Environmental, Social and Governance Report Corporate Governance and Business Ethics 15
Improving Business Ethics Mechanisms
The Company has published the "Code of Business Conduct" on its official website, clearly defining its
user-centered and user-demand-oriented approach, as well as red lines regarding corruption, commercial
bribery, prevention of insider trading and misuse of internal information, safeguarding information and data
security, responsible business conduct with partners, and employee behavior norms such as honoring
commitments, preserving business confidentiality, integrity, anti-discrimination, and anti-harassment. The
Company's Rewards and Punishments Policy provides clear definitions of positive and negative business
ethics behaviors for each department, allocates detailed responsibilities, outlines fair and effective reward
and punishment systems, and sets criteria for reward and punishment judgments, effectively motivating and
encouraging employees.
Whistleblowing and Whistleblower Protection
To ensure the effective operation of the Company's business ethics and anti-corruption mechanisms,
the Company has clarified the reporting channels for corrupt practices and publicly released the
Whistleblowing and Whistleblower Protection Policy on its official website. This policy delineates the
content of reports, reporting methods, measures to protect whistleblowers, and the process for receiving
and investigating reports to ensure the confidentiality of whistleblowers' identities and protect them from
retaliation. For reporting violations of the Company’s regulations or harm to the Company’s interests,
upon verification, the perpetrators are punished according to the provisions of the Company's Rewards
and Punishments Policy.In cases of serious offenses or violations of the law, they are handed over to the
Legal Department for further actions, and whistleblowers are rewarded according to the provisions of the
Company's Rewards and Punishments Policy.
In 2023, the Company did not experience any major embezzlement lawsuits, violations of business ethics,
or corruption incidents.
Witnessing and Spreading
True Love
As the "global leader in true love culture," the Company aims to "help
more people express love and let love be happy and lasting," creating
a once-in-a-lifetime love experience for customers and allowing more
people to feel the power and beauty of true love.
Our Goals
Enhance the strength and breadth of witnessing and spreading true love
Our Progress
Increase the loyalty of DR brand followers
Continue to establish connections with customers who believe in true love
Supporting to SDGs
DR Corporation Limited 2023 Environmental, Social and Governance Report Witnessing and Spreading True Love 17
Discovering True Love
Guided by the brand, the Company continuously conveys the beauty and power of love, explores the profundity and values of true love, and inspires the public's longing for and trust in true love.
Case Searching for 100 Diamond Wedding Couples Worldwide
How to turn love into a lifetime of true love? In fact, love is a series of positive resonances in small moments. It is because of these significant moments that love transcends fleetingness and becomes eternal, extending
continuously throughout life. In 2023, DR launched the "Search for 100 Diamond Wedding Couples Worldwide" charity campaign, allowing diamond wedding couples to provide their answers. With over 60 years of
marriage, they tell us: as long as true love is firm and faithful, love will compose the most touching chapters for each other’s life, turning all joys and sorrows into strength.
Love is practical actions of silent dedication Love is every meal shared together
Grandpa Wu Wenzhang would go far and spend From the first ice cream date to the meticulously
extra time to save a few cents buying salt; but for prepared meals on birthdays, Grandma sings and
the clothes Grandma likes, he wouldn't hesitate to laughs while Grandpa hands her fruits when she's
spend thousands. He said, "Even if I starve, I must tired from singing. Grandpa, who rarely expresses
ensure she lives well." Grandma has been in two car love, always fulfills his promise from youth: "Never
accidents, and though Grandpa was scared in the make her sad in this life." Tears flowed when he put
hospital, he left a strong impression on the children. on the DR ring for Grandma, expressing gratitude.
He said, "If I panic, the kids will too."
It seems that the love stories of people from Guangdong are always accompanied by the aroma of
Love is every footprint walked together food, but what truly saturates the heart is the process of the loved one infusing the food with aroma,
the courage behind each expression of love and fulfillment of promises.
Brought together by literature, they were moved by
the phrase "love can conquer the world" from a book, Through the footprints of their lives, they interpret the romance of France: not as grand as many
so they traveled through many countries hand in imagine, but like what countless people anticipate, spending a lifetime seeing different scenery with
hand, conquering the world with parallel steps. During the same person, considering trivialities and bickering as sweet.
their diamond wedding anniversary, residing in a
corner of France, they affectionately put on DR rings As of 2023, DR has visited and presented the stories of 100 diamond wedding couples in 26 cities,
for each other, saying, "The ring represents a lifetime sparking nearly 200 million global touched responses. The map of true love has illuminated many
of marriage." In their hearts, they saw each other cities, but DR's true love campaign with diamond rings will continue. Because "Empower more people
through all the scenery, shining brighter than any to express their love, and let the happiness of love endure forever" is not only DR's mission but will
landscape. also become a shared vision of the entire world.
DR Corporation Limited 2023 Environmental, Social and Governance Report Witnessing and Spreading True Love 18
Spreading True Love Culture
Every product of the Company embodies a unique emotional concept. Through different products, the Company aims to assist users not only in purchasing products but also in choosing a beautiful belief in true love.
DR HEART Heart Shaped Halo Pave TRUE LOVE Simple Luxury Model Engagement JUST YOU Starry Side-stone Engagement Ring LOVE MARK Logo Weddings Rings
Engagement Ring Diamond Ring
Legend has it that lovers who are favored by the Wishing all lovers in the world to fulfill each Taking down the guardian hexagram from the sky, This is the most dazzling declaration: our love,
god of love will have a heart-shaped mark for life other: from the beginning to the end, a lifetime of guarding only you for a lifetime. fervent and radiant, stunning through time.
and will never be separated. companionship.
YOU & ME Love Without End Wedding Rings D Lifetime Contract Simple Luxury Model Bicolor DR HEART Affectionate Heart Pendant Set First Snow Lifetime Devotion Pendant Set
Rings & Bracelets
My love for you, changing day and night, is never- I entrust my entire life to you, promising a lifetime You are the note of my heartbeats, never ceasing. Legend has it that the gods will listen to the
ending. commitment, never to change. My love for you, fervent and eternal. sincerest wishes when the first snow falls.
I make a wish to the gods: first, to watch
the first snow with you year after year,
second, to share a lifetime with you.
For the engagement diamond ring series, the Company has established the rule of "The only & One" for purchases. When customizing the engagement diamond ring, customers are required to present valid identification for
verification and sign the True Love Agreement to leave a mark of true love.
DR Corporation Limited 2023 Environmental, Social and Governance Report Witnessing and Spreading True Love 19
To enhance customer service quality and promote the culture of
true love, the Company has set up an internal sharing section,
the "Museum of True Love". Starting in 2023, the Company Based on the traditional Chinese On the Chinese Valentine's Day, DR DR collaborated with the well-known
encourages employees to share touching stories discovered Valentine's Day, DR Diamond Ring launched the DR Emergency Rose book brand Fan Shu (formerly Fan
during receptions in the Museum of True Love, and selects inherits and promotes Chinese culture Global True Love Charity Campaign in Deng Reading) to hold offline intimate
outstanding service cases for commendation, allowing more with the theme of "Red Line," creating Paris, France, and landmark business relationship sharing sessions. DR also
employees to truly experience the charm of the brand's true love the DR Cliff Hall in Dali to spread the districts in China. Through emergency invited Fudan University professor
culture. brand's true love concept. gift boxes filled with love, traditional Liang Yong'an and Christopher Meng,
Chinese Valentine's Day cultural author of Intimate Relations, to interact
DR Diamond Ring is dedicated to letting love be better and has
brochures, and emergency boxes of live on the scene, providing guidance
been taking action to promote this through various forms and
roses, DR reminds and encourages the and answers to questions about love
activities.
public to express love to their significant for young people.
others on this Day.
DR Corporation Limited 2023 Environmental, Social and Governance Report Witnessing and Spreading True Love 20
Witnessing True Love
As people's living standards improve and their views on marriage and love evolve, proposal is no longer
a simple expression of love; more people aspire to have an unforgettable and romantic engagement
experience. In July 2023, DR Diamond Ring initiated the "DR Wedding Ecology" project to create a platform
for couples that integrates proposal, wedding preparation, and wedding ceremony services, establishing a
high-end wedding ecosystem covering the entire process. "DR Proposal," an engagement planning brand
under DR Corporation Limited, is committed to the core concept of "creating every proposal with care."
Starting from an engagement diamond ring, it crafts enduring symbols of true love and romantic services for
consumers, witnessing every joyful moment in their lives.
DR Proposal Planning Scenes
Case 520 Proposal Season
Through special events, the Company aims to
help more people express love and let their love
be happy and lasting. In May 2023, the Company
launched the 520 proposal season campaign,
encouraging more people to bravely declare their
love with DR.
DR's "Big Red Heart" checkpoint provides a personalized DR certification photo for every visitor
DR Corporation Limited 2023 Environmental, Social and Governance Report Witnessing and Spreading True Love 21
Guarding True Love
True love is not just about moments of excitement and passion, but a commitment to "one lifetime, one couple" and unwavering companionship. DR not only allows users to enjoy and experience true love but also assists
them in nurturing it with comprehensive services.
Case
DR Corporation mission is to "help more people express love and let love be happy and lasting." As DR Love Ambassadors, witnessing every moment of true love of our customers, we assist them in taking action for
true love. Being able to make DR a very significant gift in their lives is the responsibility of every member of the DR team. We also hope to spread the concept of "The One & Only" to more users in the future and help
more people witness true love.
time when we were
Dreaming back to the
I used to walk on the moon young and innocent
Just because you're in the mountains A smile in the face and a whisper in the ear
The girl and her boyfriend have been together Mr. Liao and Ms. Pu have been neighbors since childhood, like an
for eight years. After graduating from college, elder brother and a younger sister, have chosen to express their
they are separated by work, the boy made a very lifelong commitment through the purchase of a DR ring. After several
brave decision to come to the girl's city and her fittings, they selected the Snow Heart Mark minimalist style. The
development, breaking through the difficulties snowflake ring symbolizes, "There are no two identical snowflakes in
finally came to the girl. The girl was very touched, the world, just as you are a unique existence," complemented by the
but also more determined to be together. "Heart of a Maiden," leaving both extremely satisfied.
Later they stepped into the marriage hall, from the The girl shared their love story with a face full of happiness, "When
campus period of love has been through a lot of we were little, he would always sneak into my house, take my bowl,
dribs and drabs, are contained in the boy gave the and eat together at his place," she said. "He always took me to the
girl DR diamond ring. mountain to play, pick flowers, and dig for fruits..." Their childhood
friendship is the envy of many.
Probably the best thing about love is that your
significant other has chosen a DR diamond ring The couple was photographed at the Proposal Pavilion, and the
for you. DR wedding ring, and DR HEART series True Love Agreement Wall. When the boy put the veil on the girl, his
can be more intuitive expression of Mr. love for hands shook with nervousness. As they left, he held her hand tightly,
women, a true heart only for the only you. as if he was holding onto the whole world.
Product Innovation and
Service Enhancement
The Company is committed to creating high-quality innovative
products and providing ultimate services to give each customer a
unique true love experience.
Our Goal
Drive industry craftsmanship and product innovation to create the
ultimate user experience
Our Progress
Developed the DR HEART "Italian Masterpiece Edition" engagement
diamond ring "Ti Amo".
Invented the double-plated electroplating process for 18K white gold.
In 2023, customer satisfaction reached 99%
Supporting to SDGs
DR Corporation Limited 2023 Environmental, Social and Governance Report Product Innovation and Service Enhancement 23
Leading Development Intellectual Property Layout and Management
with Innovation
Innovation is the cornerstone of the Company's With a unique aesthetic attitude and strict craftsmanship standards, the Company meticulously crafts each
development and the driving force behind jewelry piece representing " The One & Only," making it extremely important to protect the Company's
safeguarding true love for each customer product designs from infringement by others.
throughout their lives. The Company continuously
motivates employees to provide unique products The Company's intellectual property protection has transitioned from a single protection dimension to a
and experiences for every customer through the parallel protection mode using multiple methods, ensuring both protection strength and cost-effectiveness.
construction of an intellectual property system and In 2023, the Legal Department organized training on the timestamp platform electronic evidence, introducing
a culture of innovation among all staff. protection methods and the timestamp electronic evidence platform to the Company's relevant design
personnel based on the current status of core product protection, enabling participants to independently
certify original product design content with legal validity. The Legal Department and the Product Department
regularly hold monthly meetings to align work progress, clarify monthly intellectual property application plans
of the Product Department, align corresponding product certificate data, and standardize the effectiveness
of the Company's independent intellectual property protection. The Company has also established an
intellectual property file management system and intellectual property ledger, completing past intellectual
property inventory, archiving all certificates, maintaining real-time effectiveness updates, and synchronizing
data with required departments, providing a strong basis for effectively addressing risks and protecting
rights.
The Company adheres to independent innovation, preventing supplier intellectual property risks through
contractual constraints. The Company requires suppliers to explicitly guarantee in the contract that the
products provided do not infringe on others' intellectual property rights. In case of infringement, the supplier
should bear corresponding infringement liability. When entrusting suppliers to manufacture products, the
contract stipulates that the Company keeps confidential any intellectual property that is not applied for
protection by the other party. For cooperative development technologies, the cooperation contract specifies
the ownership, usage rights, and profit rights of both parties regarding research and development results.
DR Corporation Limited 2023 Environmental, Social and Governance Report Product Innovation and Service Enhancement 24
Product and Experience Innovation
The Company incorporates innovative spirit into product design and supporting services to ensure the uniqueness The Company also innovated systematically in terms of its operational capabilities. Offline experience stores are
of each customer's custom diamond ring, dedicated to creating a completely customized product and service an important part of the Company's operations. The Company’s Smart Technology Department provides digital
experience for every customer. support for the guidance service process in experience stores. Through the simulation exercises of the digital
platform's practical module, different customers' needs in different operational stages can be simulated, enabling
In 2023, the Company's Product Department completed the design and craftsmanship upgrade of the DR HEART store employees to communicate with the models through multiple rounds to improve their service capabilities.
3.0, continuously upgrading and iterating while maintaining the original appearance. It added five unique design During the dialogue simulation, if there is uncertainty in how to respond to questions related to professional
and craftsmanship highlights, with its concentric cutting technique obtaining relevant national patents. The unique knowledge, sales can strengthen memory and communication skills according to the guidance.
heart-shaped cutting technique presents a visual effect of "hearts intertwined," conveying exclusive love that lasts
forever. The entire series was quickly embraced by customers upon its launch. The Company expanded the "Wedding+" new business platform to support the diversification of the main
business in 2023. It introduced cooperation with wedding planning businesses, empowering them with digital
In 2023, the uniquely styled D series, bearing the distinctive DR brand characteristics, was developed and management, and jointly promoting the development of the "Wedding+" business. The "Wedding+" platform covers
launched. Inspired by the brand's initials, with "I" for men and "U" for women, they closely combine to form a "D," proposal/wedding planning, wedding photography, wedding portraits, and other sectors, finely managing various
symbolizing the timeless confession of "I LOVE YOU." This style became a favorite among many fashion icons, aspects such as merchant entry, solution shelving, sales, delivery, and merchant settlement, complementing the
crafted from high-quality diamonds and winning numerous prestigious awards domestically and internationally, Company's main business.
including the French Design Award, MUSE Award, and the Bronze Award at the American IDA International Design
Awards.
In 2023, the Company collaborated for the first time with the MEINI workshop in Florence, Italy, to develop the DR
HEART "Italian Masterpiece Edition" engagement ring "Ti Amo." The master craftsmen of the Italian workshop,
inheriting 60 years of jewelry essence, used filigree carving techniques. After over a hundred days of manual
carving, they presented the ancient gold jewelry art and carving craftsmanship in an artistic manner, polishing out
engagement rings with a style reminiscent of the Renaissance period, evoking a profound historical atmosphere
and stunning beauty.
MEINI Florence Workshop, Italy Engagement Ring "Ti Amo"
DR Corporation Limited 2023 Environmental, Social and Governance Report Product Innovation and Service Enhancement 25
Manufacturing Process Innovation
Annual number of intellectual Annual number of intellectual
The Company always focuses on solutions that combine aesthetics with comfortable wear, continually property applications property rights obtained
exploring overlooked areas of comfortable wear. Through millions of sample data, the research and
development team spent three years calculating the ergonomic comfort angles. Through tens of thousands
of parameterized experiments, they developed the piano master ring wall craftsmanship, which combines
design aesthetics and ergonomics. The curvature of the ring shank fits the skin lines of the ring finger like
381 Items 262 Pieces
silk, achieving a "no sensation" wearing experience akin to the second layer of skin.
The Company has also invented an 18K white gold dual-plating electroplating process for material
innovation, firmly fixing the plating on the 18K base material. This reduces the wear of the 18K white gold Categorized by type of intellectual property（Pieces） Categorized by type of intellectual property（Pieces）
plating, ensuring the product's durability and colorfastness. The Company's dual-plating electroplating
process has been certified by national authoritative testing agencies and has undergone three rigorous
198
tests. Its authenticity, wear resistance, and resistance to acid and alkali corrosion have all received
international recognition. In 2023, all of the Company's products underwent an upgrade to the dual-plating
216
process.
108
57 57
7
Patents Copyrights Trademarks Patents Copyrights Trademarks
Total number of intellectual property
rights held cumulatively
899 Pieces
DR Corporation Limited 2023 Environmental, Social and Governance Report Product Innovation and Service Enhancement 26
Advocating Ultimate Service Creating Customer Experience
The Company reciprocates ultimate love with ultimate service, ensuring superior customer experiences Offline experience stores are the preferred venues for customers to customize engagement rings and
from multiple dimensions and responding to customers' dedication to true love with our dedication to service experience the Company’s ultimate service. The Company provides comprehensive training for store staff
quality. to ensure they meet customers’ inquiries and needs with the best attitude and professional knowledge when
receiving them.
Ensuring Sales Compliance
To safeguard customers' legal rights and prevent negative impacts due to improper sales practices, the
Company issued the Store Operation Execution Manual in 2023. All store staff members adhere to its New employees at the For all staff of experience
experience stores undergo store, the Offline Sales
guidelines. The "DR Diamond Ring Customization Notice" emphasizes customer education before placing The staff of experience
a 35-day on-site training, Operation Department
orders, ensuring customers understand purchasing rules and have control over their purchased product store undergo regular
consisting of a 7-day basic regularly conducts service
information. service training each year,
learning period, a 7-day course training to enhance
focusing on overcoming
skills training period, employees' service
To ensure customers accurately understand product cost information, the Company prints separate difficulties encountered in
and a 21-day practical capabilities in three major
sales and customization expense breakdowns on orders. Customers receive both a sales order and a customer communication
application period, which modules: brand strength,
customized service order, clearly outlining the breakdown of each expense, thus ensuring their awareness to enhance employees'
was rigorously designed service standards and
of customization costs. The Company also offers a 15-day cooling-off period for every customer, allowing to empathy, communication
to quickly enhance new satisfaction improvement,
return or exchange within 15 days after receiving our products, safeguarding customers' reasonable rights. fluency, language
employees’ service quality. and service awareness
accuracy, and
and skills.
In consideration of customer privacy protection and to prevent information leaks due to operational or multidimensional
account security issues, the Company conducted comprehensive training on information security for all communication skills.
employees, reducing the risk of employee disclosure of customer information. Simultaneously, the Company
optimized the customer information query process and added permission requirements to ensure the
confidentiality of customer information.
DR Corporation Limited 2023 Environmental, Social and Governance Report Product Innovation and Service Enhancement 27
The Risk Control Department is the main management department for customer experience and satisfaction, evaluating and managing the service level of offline experience stores through four major modules, including service evaluation
questionnaires, customer complaints, internal store inspections, and online quality inspections.
The Company's internal middleware system The Company records, summarizes, classi-
automatically pushes service evaluation fies, and analyzes customer complaints and
questionnaires to visitors and customers for outputs monthly reports according to the DR Service evaluation Customer complaint
real-time feedback on customer satisfaction. Customer Complaint Handling and Respon- questionnaires handling
sibility Management System to standardize
the risk level of complaints and crisis events, Self-check
handle complaint events, and determine re- modules for
sponsibility. service levels
Internal store inspections Online service quality
and scoring inspections
The Risk Control Department scores store The Risk Control Department conducts
locations, staff services, store operations, monthly random checks on online customer
and decoration quality based on four di- service conversation recordings according
mensions, issuing monthly Risk Control to the Risk Control Quality Inspection Stan-
Inspection Reports to showcase the monthly dards, providing at least one quality inspec-
inspection data and urge relevant responsi- tion report per week. It holds responsible Indicators Units 2023
ble persons to rectify stores with deductions. parties who are accountable for red flag
issues discovered and orders online man-
Number of serviced customers (customers placing orders) Ten thousand people 175
agement to promptly address deficiencies.
Total number of brand followers on the Company's internet
Ten thousand people 3,000
platforms
The Offline Sales Operation Department has also es- The Company's series of service
tablished a comprehensive store service assessment quality assurance measures have Customer satisfaction % 99%
mechanism, setting offline service quality goals based continued to yield results, with
on three major service quality data points: customer customer satisfaction reaching
complaint volume, actual customer satisfaction, and Number of privacy breach incidents Pieces 0
the Risk Control Department's undercover inspection
scores. To effectively ensure service quality, the com-
pensation of offline experience store employees is di-
99% in 2023
rectly linked to the quality of service in the store.
DR Corporation Limited 2023 Environmental, Social and Governance Report Product Innovation and Service Enhancement 28
Creating High-Quality Improving Quality Procedures
Products
The Company firmly believes that high- The Company has strict quality admission standards for processing suppliers, including the Company’s size, research and development capabilities, full-
quality products represent high-quality love. process production capacity, industry recognition, and more. There is a rigorous process for assessing new suppliers, including qualification review, simulated
The Rough Stone Procurement Department, quotation, on-site audit, and blind sample testing, with detailed evaluations for each indicator in each module. In the qualification review module, the Company
Supplier Development Department, and requires all processing suppliers to have ISO 9001 quality management system certification.
Supply Chain Department work together to
ensure that suppliers meet the Company's The Supply Chain Department regularly evaluates existing processing suppliers, with the highest weight given to product quality and quality system scores.
high-quality requirements for materials and Major quality anomalies are considered as deduction items, which greatly drive suppliers to improve product quality. The Company also grants suppliers access
finished products. to the supplier management system, allowing them to timely access quality and delivery data. The Company can receive monthly supplier evaluation feedback
and make production optimization plans and adjustments promptly. The Supply Chain Department conducts monthly color monitoring to randomly inspect the
materials produced by suppliers, ensuring compliance with the Company's specified requirements for content and harmful substances to ensure quality.
DR Corporation Limited 2023 Environmental, Social and Governance Report Product Innovation and Service Enhancement 29
Strengthening Quality Management
To ensure the quality of finished products, the Supply Chain In the process of introducing new materials and new processes, the they meet the set expectations. After conducting multiple rounds of
Department conducts spot checks on semi-finished products at Company organizes personnel and external association experts to trial production, the Company confirms various parameters of new
factories, only issuing orders after passing inspections to ensure discuss the feasibility of production of new materials and processes, materials and processes. In the early stages of mass production,
stable product quality. The Company employs multiple production collectively solving problems and difficulties. After the solution is the Quality Department focuses on potential quality issues with new
process monitoring personnel who conduct spot checks on the quality formed, the Company conducts trial production of new materials and products to ensure the reliability of new materials and processes.
of semi-finished products when inspecting factories. Production processes, instructs suppliers to produce samples according to the
monitoring personnel from the Supply Chain Department directly visit style, compares differences between samples and actual goods, and
supplier production lines to inspect workers' mastery of production sends products to third-party institutions for testing to evaluate the
standards and product quality during the production process, feasibility of implementing new materials and processes and whether
ensuring timely delivery of high-quality products. The Company also
conducts spot checks on factory quality management system records
to ensure that all production indicators are within the specified range.
For finished products in factories, the Company’s quality
inspectors are stationed at factories to conduct full inspections of Indicators Units 2023
all products. Each product is inspected by quality inspectors to
meet the Company’s quality requirements and customer demands, Number of litigation cases faced by the Company due to product quality safety
Pieces 0
which ensures the delivery of qualified products. Additionally, the violations
National Gemstone and Jewelry Testing Center (NGTC) tests each
finished product and issues NGTC certificates to ensure high- Penalties imposed due to product quality safety violations resulting in litigation RMB 10,000 0
quality standards. The Company conducts a final inspection before
shipment, where the Logistics Department rechecks the appearance Incidents requiring recall from the total sold or shipped products due to safety
of the goods to avoid shipping defective products to customers. Cases 0
and/or health reasons
For non-conforming products, the Company initiates investigations Quantity of products requiring recall from the total sold or shipped products due
into the causes from the perspectives of people, machines, materials, Pieces 0
to safety and/or health reasons
methods, environment, and measurement. The Company formulates
corrective measures based on the analysis results, and supervises
factories to implement corrections. The Company continuously tracks
and verifies the effectiveness of corrective measures, and formulates
preventive measures based on similar non-conforming events.
Responsible Procurement
and Sustainable Development
The Company has established a rigorous supply chain management system
and is committed to promoting the continuous progress and growth of suppliers,
inspiring them with a sense of responsibility for true love, and ensuring the
true love experience for users.
Our Goals
Establish and implement internationally leading supplier responsibility standards
Our Progress
Developed the Supplier Code of Conduct, covering three categories: legal and
compliance, social performance, and environmental performance
Ensured that long-term stable cooperation and key suppliers adhere to supplier
responsibility standards
Supporting to SDGs
DR Corporation Limited 2023 Environmental, Social and Governance Report Responsible Procurement and Sustainable Development 31
Supplier Responsibility Management
Standards and Management Specifications for Suppliers
Supplier responsibility management is the foundation for establishing long-term, successful business partnerships and achieving business
success between the Company and its suppliers. The Company not only requires suppliers to strictly comply with all applicable laws, regulations,
and rules, but also hopes that suppliers can strive to meet internationally recognized standards for human rights, business ethics, and social and
environmental responsibility.
The Company integrates corporate social responsibility and sustainable development principles into the daily management and business
cooperation with suppliers. To this end, the Company has formulated the Supplier Code of Conduct, which sets requirements and regulations for
all supplier facilities, activities, and employees contributing to contract fulfillment.
The main contents of the Supplier Code of Conduct include three
parts: legal and compliance, social performance, and environmental
performance:
Ethical integrity, anti-bribery and corruption,
Legal and labor rights and legal compliance, intellectual
Compliance property rights, anti-money laundering, product
safety, etc.
Legal and Social
Compliance Performance Human rights and employee rights, fair wages
Social
and equal treatment, occupational safety and
Performance
health, etc.
Environmental
Performance Environmental management systems, resource
Environmental use and recycling, waste management,
Performance greenhouse gas management, biodiversity
conservation, etc.
DR Corporation Limited 2023 Environmental, Social and Governance Report Responsible Procurement and Sustainable Development 32
To ensure the quality and safety of the supply chain, the Company regularly assesses and inspects
Supplier Audit and Compliance Management
suppliers based on actual conditions. If any violations of the Supplier Code of Conduct are found, the
Company will require the supplier to make corrections or impose penalties. Suppliers are obliged to take
appropriate corrective or remedial measures and complete rectification within the specified time frame. If the
During the supplier admission phase, the Company conducts a comprehensive review of the supplier's
Company finds that the supplier has not corrected the violations during follow-up, the Company reserves
basic qualifications. For production suppliers, the Company checks their scale, tax qualifications, business
the right to take further measures.
licenses, social security contributions, registered capital, paid-in capital, fire acceptance documents, etc.
The Company also examines whether suppliers have international certifications such as ISO 9001, ISO
Case Supplier Anti-Corruption Advocacy and Investigation Visits Project 14001, OHSAS 18001/ISO 45001, and encourages suppliers to continuously optimize their operational
management. Additionally, the Company assesses supplier risks and arranges on-site factory inspections.
Finally, the Company integrates scoring evaluations from multiple departments (order delivery, quality,
In 2023, the Company maintained a clean and self-disciplined work style, protecting the legitimate finance, merchandise, etc.) to determine whether to introduce suppliers.
rights and interests of both suppliers and the Company, and conducted self-inspections and surveys
During the supplier management phase, the Company conducts a percentage-based assessment of
on integrity and confidentiality during cooperation.
suppliers in six fields, with different departments assessing different areas.
DR Corporation Limited 2023 Environmental, Social and Governance Report Responsible Procurement and Sustainable Development 33
Special Topic: Diamond Traceability and Precious Metal Procurement Supplier Capacity
Building
The Company purchases rough diamonds from suppliers in mainland China and Hong Kong. All rough diamond suppliers in mainland China To enhance supplier capabilities and assist them
are members of the Shanghai Diamond Exchange, while those in Hong Kong are top suppliers in the industry. The Company's Rough Diamond in mutual growth, the Company conducts periodic
Procurement Department has established an optimized quality inspection process for rough diamond channels and cross-border customs clearance. empowerment activities for suppliers, including
All rough diamonds undergo at least two quality inspections, with complete examinations of the five major quality indicators: weight, color, clarity, cut, training on the introduction process for new
and fluorescence. Only qualified products are allowed to enter the Company's rough diamond warehouse. The Company uses DV5000 instruments to suppliers, monthly quality communication and
professionally test diamond fluorescence, ensuring the superior quality of the Company's rough diamond raw materials. training, quarterly themed training, etc.
The Company manages suppliers online through
the SRM Supplier Management System, where
Total number of suppliers 2,573 relevant processes and instructional documents
2,662 are set up to help suppliers proficiently use the
supplier operation system. This enables quick
uploading and approval of expenses, saving
communication costs and time. Additionally,
suppliers can promptly track their own quality and
Suppliers within China delivery status through the system. Based on the
Company's monthly evaluation feedback, they
Suppliers in Hong Kong, Macao,
and Taiwan
58 31 100% can devise and implement production optimization
plans and adjustments to enhance product quality
and performance.
Suppliers in other regions
According to regional statistics Percentage of products with
traceable raw materials
Employee Growth and
Community Welfare
The Company focuses on employee development and well-
being, enabling them to achieve self-improvement while
continuously contributing to community development and
enhancement, thereby promoting the realization of the True
Love mission.
Our Goal
To promote employee development and enhance the
happiness of employees' families and careers
Our Progress
Established a comprehensive employee training system and
improved performance evaluation and incentive mechanisms
Fostered a favorable workplace environment, safeguarding
women's long-term career development rights
Supporting to SDGs
DR Corporation Limited 2023 Environmental, Social and Governance Report Employee Growth and Community Welfare 35
Supporting Employee Growth
Protection of Employee Rights
Labor Rights Maintenance
The Company is committed to establishing a comfortable and fair employment environment for employees,
providing opportunities for growth and development, and ensuring that each employee enjoys the rights
conferred by local laws and regulations. The Company adheres to the Labor Law of the People's Republic of
China, supports the UN’s Universal Declaration of Human Rights, and the International Labor Organization’s
Declaration on Fundamental Principles and Rights at Work of the International Labor Organization. It has
established an Employee Handbook opposing any form of child labor and forced labor, prohibiting all forms
of discrimination, harassment, or bullying, and safeguarding the legitimate rights and interests of employees.
In 2023, to effectively safeguard and maintain labor-related rights, the Company improved and standardized
management systems such as the Rewards and Punishments Policy, Attendance and Leave Management
System (Headquarters), and Employee Performance Improvement System, ensuring employees' rights and
interests in various aspects including recruitment and compensation.
Furthermore, the Company has established a Women Employees Committee to create a fair and conducive
workplace environment, ensuring equal protection of all employees' rights and providing a solid foundation
for the long-term development of employees in the workplace. The Committee is currently composed of
employees from three departments, effectively listening to and addressing female career predicament,
empowering employees.
DR Corporation Limited 2023 Environmental, Social and Governance Report Employee Growth and Community Welfare 36
Equal Recruitment
The Company strictly adheres to recruitment and hiring processes that
Case TRUE LOVE Program
comply with labor laws and regulations, verifying the identity information of
applicants during recruitment and onboarding to prevent the employment
of minors. It upholds fair and compliant employment principles, signing
In the direction of campus recruitment, the Company values the cultivation of new employees and campus recruits, establishing
labor contracts with employees according to the law, without discrimination
the "TRUE LOVE Program" and developing a brand-new track specifically designed for new employees and campus recruits. Rich
based on nationality, race, religion, age, gender, marital or family status, or
learning content and engaging formats help newcomers integrate quickly, providing different dimensions and levels of empowerment
sexual orientation, providing inclusive and fair development and promotion
for employees in professional and management systems, helping them hone their skills, enhance their thinking, continually tap into and
opportunities, ensuring a mutual choice between the Company and talent.
expand their talents, and providing ample energy for their career development paths.
Regarding recruitment channels, talent recruitment for fundamental
positions to meet daily departmental needs mainly utilizes "recruitment
websites" as the primary channels, considering multidimensional
competency models for optimal selection. Besides recruitment websites,
critical core talent recruitment also involves "talent referrals" and
"headhunter cooperation" to meet the Company's strategic development
needs by filling the gap of high-quality talent. Additionally, the Company
internally promotes "internal recommendation” and "job competitions"
to elevate outstanding employees, offering extensive development
opportunities, addressing departmental talent needs, and providing broad
development prospects for employees.
In 2023, through social recruitment channels, the Company recruited
over 300 outstanding talents, not only meeting the Company's business
development needs but also contributing to the realization of the mission
of "helping more people express love and let love be happy and lasting."
Company recruited over
300 outstanding talents
DR Corporation Limited 2023 Environmental, Social and Governance Report Employee Growth and Community Welfare 37
Employee Health and Safety
The Company places a high priority on the health and safety of its employees, strictly adhering to
relevant laws and regulations such as the Fire Prevention Law of the People's Republic of China
and the Law of the People's Republic of China on the Prevention and Control of Occupational
Diseases, comprehensively ensuring the physical and mental well-being of employees.
An emergency response management system has been established by the Company, with fire
extinguishers and fire masks provided in various areas of the office, and regular inspections
conducted to ensure the proper functioning of protective equipment. The Company provides
employees with hardware and facilities conducive to their physical and mental health, as well as
a variety of social activities, to help them maintain health and vitality.
Safety drill activities Employee safety training coverage
2 Times 100 %
DR Corporation Limited 2023 Environmental, Social and Governance Report Employee Growth and Community Welfare 38
Employee Training and Development Employee Incentives and Promotion
Regarding promotions, the Company has established different promotion paths for employees in
management and professional channels. Each employee has the option to choose between vertical and
Employee Training horizontal development paths, enabling them to progress vertically within one path or transition horizontally
between the two paths.
The Company places great emphasis on training employees and planning for their lifelong career In terms of employee incentives, the Company's headquarters links performance with incentives.
development, providing targeted training courses for different types of employees. Performance management is carried out according to the Headquarters Performance Management System,
which underwent two iterations in 2023. Additionally, to ensure smooth collaboration across departments,
the Company regularly organizes cross-departmental cooperation satisfaction surveys, the results of which
are incorporated into the assessment of relevant executive members. For employees at different levels, the
Company conducts assessments based on both quantitative and qualitative evaluations on a semi-annual
New Employee Professional
Skills and annual basis.
Onboarding
Training Training
To ensure fairness and impartiality in performance assessment and promotion, the Company requires
every team manager to conduct performance interviews with their team members. The purpose of these
interviews is to provide formal feedback on performance results and set work plans/performance goals for
The Company organizes online learning and The Company provides professional
the next cycle, aiming to eliminate biases, achieve consensus, and promote performance improvement and
offline training every quarter, covering topics guidance and training for employees at
enhancement.
such as corporate culture, brand introduction, different functions and levels to empower
departmental operations, various rules their growth. The Company pays performance assessment bonuses based on the final performance results. Additionally,
and regulations, daily office systems, and the Company has instituted "timely incentive bonuses" to reward outstanding individuals and teams.
software. The aim is to help new employees
integrate quickly into the Company and carry
out their work more smoothly. At the end of each
For employees at cycle, employees
different levels, Based on job nature, engage in effective
both quantitative exclusive KPIs performance interviews
In 2023, the company held a variety of trainings such as "How to Read People Accurately—Scientific
and qualitative are established with the management,
Selection and Employment for Cadres", "Practical Sharing of Labor Disputes and Risk Prevention", for performance
assessments are preparing for the next
"Strategy Decoding Session", "Strategy Training and Warfare Session" and other trainings for employees of evaluations on top of
used, but with different cycle's performance
different departments and levels to empower their professionalism in various fields such as business, risk job levels
assessment cycles planning and
management, and strategy execution. assessment
DR Corporation Limited 2023 Environmental, Social and Governance Report Employee Growth and Community Welfare 39
Employee Communication and Care
Employee Communication Employee Care Activities
To facilitate better communication with company em-
ployees, various communication channels have been To enhance employee happiness, the Company has established the Headquarters and Store Employee Welfare
established. The Company has a public email address Management System and the Hong Kong Employee Welfare System in its regulations. Benefits include monthly employee
(bmd@darryring.com) to collect feedback, complaints, birthday parties, gift boxes for traditional festivals such as Spring Festival, Dragon Boat Festival, and Mid-Autumn Festival,
and suggestions from employees regarding work-relat- Regular early dismissal one hour before love-related festivals such as February 14th, May 20th, and Chinese Valentine's Day,
ed issues. Additionally, the Company hosts a "Ask the Benefits department team building funds, marriage/birth/hospitalization condolence red envelopes, anniversary souvenirs for joining
CEO" section, where employees can submit questions the Company, employee medical checkups, etc.
for the CEO to address topics of employees’ concern
directly. Furthermore, the Company has established a
labor union to gather and address employee demands
through employee representative conferences, effective-
ly safeguarding employee rights. The Company headquarters has set up a "loving mother-and-baby rooms" equipped with a refrigerator and comfortable
Caring Maternity desks and chairs to provide pregnant employees with a safe, clean, and private space.
In June 2023, the Company conducted an "Organiza- Room
tional Atmosphere Survey," covering all headquarters
employees. After completing the survey, the Human
Resources Department categorized and analyzed the
data collected to identify the Company's organizational
The Company also has a "Warm Heart Fund" to provide strong support to employees and their families facing major
atmosphere strengths and pain points from various per-
Heartwarming illnesses. In 2023, it assisted 26 employees, distributing heartwarming funds exceeding RMB 200,000.
spectives, providing targeted improvement suggestions.
Fund
In 2023, the Company's labor union promoted various welfare activities through email, Enterprise WeChat, and other
forms, such as the Staff Badminton and Table Tennis Competition organized by the Shenzhen Federation of Trade Unions
Union Welfare and the Luohu District Trade Union, staff mental health surveys, distribution of consumer coupons, etc.
Activities
DR Corporation Limited 2023 Environmental, Social and Governance Report Employee Growth and Community Welfare 40
Contributing to Community Welfare
In 2023, while focusing on established development goals and fulfilling
social responsibilities, the Company achieved significant achievements
and breakthroughs in external cooperation.
All departments of the Company participated in the charity event "Walk
Together: Walking for Charity" organized by the Nanshan Charity
Federation. By recording steps through WeChat movement and donating,
the Company demonstrated its concern for social responsibility, promoted
team cohesion among employees, and enhanced corporate culture.
In September 2023, the Natural Diamond Council and DR Diamond Ring
reached an annual strategic cooperation to carry out the "Thank You for
Being There, Guarding Public Welfare" campaign. Through cooperation
with the Natural Diamond Council on public welfare projects, including
online channels and offline store promotions, advocating for the purchase
of sustainably produced natural diamond products, the Company
contributed to the sustainable development of society.
Number of
philanthropic projects
3 Pieces
Climate Change and Green
&Low-carbon
The Company strictly adheres to the Environmental Protection Law of the
People's Republic of China and the applicable laws and regulations in
various operating regions, integrating the concept of green operation and
environmental protection into its own operational management, continuously
enhancing its ability to address climate change.
Our Goal
Reduce energy consumption, lower greenhouse gas emissions, and identify and
prevent climate risks
Our Progress
Reduced energy consumption and greenhouse gas emissions per unit of revenue
Identified climate-related physical and transition risks and developed
corresponding risk control measures
Supporting to SDGs
DR Corporation Limited 2023 Environmental, Social and Governance Report Climate Change and Green &Low-carbon 42
Addressing Climate Change To understand the impact of climate change on our business, the Company conducted an assessment of climate-related risks throughout
its operations and value chain in 2023. We are taking action to address future physical risks (risks associated with the physical impacts of
climate change that may affect the Company's assets, operations, or supply chain) and transition risks (risks associated with transitioning to a
lower-carbon economy, which may involve regulatory, technological, or market changes).
Climate Risk Management
Risk Types Risk Description Potential Impact on the Company Actions Taken by the Company
In 2023, the Company established the Strategic and
Sustainable Development Committee to strengthen Fully consider the potential impact of natural
governance in sustainable development, including weather changes and disasters, and prioritize
Natural disasters such
climate change management. It continuously enhances Increased operational and maintenance shopping malls and office buildings with
as floods, typhoons,
costs due to natural disasters comprehensive natural disaster records when
environmental awareness among employees and and strong winds
selecting store locations and implementing
strengthens the Company's ability to address climate
outdoor brand activities
change.
Physical Prioritize the use of environmentally friendly
We employ various measures to improve energy Risks Increased operating costs such as equipment in factory operations to improve
efficiency, reduce carbon footprint, and mitigate the impact energy costs
Extreme weather like energy efficiency
of climate change through financial initiatives. Currently, cold and heat waves Factory production and supply chain
the Company is exploring ESG asset allocation. In 2023, Strengthen ESG management for suppliers and
instability caused by extreme weather
the Company participated in the Green Deposits Program ensure their ability to address climate change
to support eligible environmental projects and businesses, by assessing their environmental performance
promote green and low-carbon development, and build a
sustainable business future. Promote ESG management, continuously
Inability of existing products or
Growing demand in strengthen green operations, and contribute
company operations to meet market
the market for low- to climate change mitigation through the
and consumer demand for sustainable
carbon products and construction of green stores, enhancing the
consumption, leading to reduced
operations Company's brand image in the minds of
competitiveness
consumers
Transition
Risks
Increasingly stringent Regularly comb and analyze the development
Possible penalties for non-compliance
regulations on climate trends of laws and regulations to ensure the
with relevant policies
change compliance of Company operations
DR Corporation Limited 2023 Environmental, Social and Governance Report Climate Change and Green &Low-carbon 43
Construction of Green Stores
Throughout the design, construction, and operation of its stores, the Company implements measures such as energy conservation, water Additionally, the Company follows green and environmen-
conservation, material conservation, and emission reduction to reduce the environmental impact of its stores. This enhances resource tal principles in material selection for store construction,
utilization efficiency and environmental friendliness, supporting the consumer goods industry in addressing the challenges of climate change continuously optimizing:
and conveying green and low-carbon concepts to customers.
The Company has implemented a series of energy-saving and environmentally friendly measures in store design and asset management, For basic decorative materials, the Company requires
improving material efficiency and reducing unnecessary waste. Specific measures include: the use of materials that meet national environmental
standards, such as selecting E0 grade wood to reduce
the emission of volatile pollutants. It also increases the
use of renewable materials such as metal keels, with a
usage proportion exceeding 50%.
In store The Company In store For store
design primarily construction demolition For surface decorative materials, the Company uses
finished wall panels to avoid the emission of volatile
gases from on-site paint construction, ensuring that
stores can pass volatile gas tests upon completion and
be put into use immediately. In processes where paint
coatings are necessary, the Company requires the
The Company uses a large Uses metal and glass ma- The Company has developed a The Company has estab-
100% use of water-based paints and natural adhesives
amount of recyclable or re- terials in display cabinet modular construction and installa- lished nationwide resource for construction.
newable materials, such as production. In 2023, the tion system, standardizing display recovery units to standard-
recycled paper and wood Company adopted newly cabinets and interior decoration ized recycling of scrapped
products. In 2023, the pro- developed lightweight met- styles. This enables module turn- assets, achieving resource
portion of such materials al display cabinets, with a over utilization in processes such recycling.
used in props and display recycling rate of up to 90% as opening new stores and refur-
fixtures in nationwide for recycled materials. bishing closed ones. In 2023, the
stores reached 75%. module turnover rate accounted for
540% of the total project cost and
is expected to continue to increase.
with a recycling rate of up to the module turnover rate accounted for
90 % 540 %
DR Corporation Limited 2023 Environmental, Social and Governance Report Climate Change and Green &Low-carbon 44
Managing Environmental Impact
Enhancing Greenhouse Gas Management Advancing Waste Management
As a non-production enterprise, the Company's most significant source In the Company's operations, minimizing waste generation is prioritized. For different types of waste, the Company implements various
of greenhouse gas emissions in daily operations is the purchase of methods for recycling, reuse, and resource conservation to minimize environmental impact.
electricity.
The Company has implemented a fully automatic lighting-off system,
which can automatically turn off lights at set times or remotely via General Waste Hazardous Waste
mobile phones. This significantly reduces electricity consumption due
to lights being left on in offices. For exhaust gases generated during the In daily office activities, the Company sorts general The Company sets up designated areas in offices to
production process, the Company utilizes activated carbon and filter waste such as kitchen waste, discarded office collect and recycle used batteries, electronics, etc.,
cotton treatment. After passing environmental equipment inspection, the supplies, and waste paper for recycling. The company which are then properly handled by recycling companies.
gases are discharged in compliance with regulations. also recycles recyclable resources from departing
employees, such as office stationery and badges.
In the production process, the Company registers
waste residue, activated carbon, and filter cotton
Water Resource Management replacements, which are then processed by hazardous
waste companies, with records kept.
The Company's water resource usage mainly involves domestic water
and small-scale production wastewater, primarily from municipal water
sources, with minimal production water consumption. Therefore, the
Company faces a low water risk.
Additionally, the Company promotes "paperless office" practices, utilizes electronic channels instead of paper, employs double-
For daily operations, water-saving signs are posted in office restrooms, sided printing, avoids unnecessary color printing, and encourages internal document sharing using reusable paper. To cultivate
and property management of office buildings is responsible for the energy-saving and emission-reducing awareness and habits among employees in scenarios like reimbursement and filing, the
recycling and treatment of daily operation water in accordance with Company uses a paperless expense reimbursement system, reducing traditional paper-based transaction emissions by 1,487.41
legal requirements. Regarding production wastewater, it undergoes kilograms of CO2 in 2023. Through electronic reimbursement and archiving, the Company has indirectly saved the felling of
sedimentation in water tanks, chemical decomposition and filtration in eight trees.
sewage treatment equipment, and centralized storage of waste residue
for unified hazardous waste treatment.
DR Corporation Limited 2023 Environmental, Social and Governance Report Climate Change and Green &Low-carbon 45
Enhancing Environmental Awareness
Posting Notices and Energy Conservation Promotion in Daily Office Activities: The Company increases the posting of notices and promotion of
energy conservation to as many areas within the office as possible. Relevant slogans are posted in areas where they are prominently visible to Indicators Units 2023
employees, reinforcing the impression and encouraging them to participate in energy-saving actions. Additionally, the Company selects indoor
plants more suitable for office placement based on office layout, lighting, and ventilation conditions. This reduces the probability of frequent plant
Weight of harmless waste generated
withering due to environmental discomfort, maintaining the vitality of office plants and creating a better office environment. Tons 300
from store decoration
Improving the Company's Vehicle Management System: In 2023, the Company revised the Company Vehicle Management System, refining
vehicle regulations and penalties for violations. The Company incorporates these penalties into its reward and punishment system to constrain Annual paper usage Tons 323.00
and reduce the misuse of company vehicles, thereby decreasing gasoline or diesel consumption.
Flexible Use of Meeting Rooms and Site Inspections: To fully utilize meeting space and efficiently advance work, the Administrative Services
Total electricity consumption GJ 83,423.05
Department regularly sends administrative information updates and promotes discussions within office groups. Meeting agreements are
displayed inside meeting rooms to remind employees to book meeting rooms as needed and use them reasonably. The department also
coordinates meeting room usage for employees. Through periodic and frequent promotion, employees' awareness has been significantly
Annual municipal water usage Tons 531.00
enhanced, leading to a substantial improvement in the effective utilization of meeting rooms and a reduction in instances of rooms being
reserved but not used. Daily site inspections involve promptly shutting down unnecessary equipment to reduce energy consumption and
identifying any faults for timely repairs, minimizing unnecessary losses.
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Key Performance Indicator 46
ESG Key Performance Indicator
ESG metrics unit 2023 ESG metrics unit 2023
Environmental indicators Annual paper usage Tons 323.00
Greenhouse gases and energy emissions Paper consumption per capita Tons/person 0.10
Scope 1: Direct greenhouse gas emissions1 Ton CO2e 0 castoff
Scope 2: Indirect greenhouse gas emissions2 Weight of harmless waste generated from store
Tons 300
Calculation formula: emission coefficient * Ton CO2e 12,902.78 decoration3
purchased electricity
Total annual hazardous waste Tons 0.002
Total GHG emissions Ton CO2e 12,902.78
Number of discarded toner cartridges in stores Pieces 90
Ton CO2e/Million RMB
Greenhouse gas emission intensity 5.92 Weight of discarded toner cartridges in stores Kilograms 50.40
Revenue
CO2 emissions from business activities per capita Ton CO2e /person 4.02 Number of discarded ink cartridges in stores Pieces 7,991
Total energy consumption GJ 83,423.05 Weight of discarded ink cartridges in stores Kilograms 693.06
Energy consumption intensity GJ/million revenue 38.26 Weight of discarded paint buckets generated from
Kilograms 180.00
store decoration
Total electricity consumption GJ 83,423.05
Consumption of purchased packaging materials
Purchased electricity from the grid GJ 82,658.82
Foam cotton Rolls 400
Electricity consumption per capita kWh/person 25.97
Cardboard boxes Pieces 133,418
Annual municipal water withdrawals Tons 531.00
Express boxes Pieces 100,297
Water consumption per capita Tons 0.17
Handbags Pieces 345,820
1
Scope 1: Since the company's office is located in a commercial building, the energy consumption generated by daily operations is included in the overall energy consumption of the commercial building, so it is not covered in the company's operation in Scope 1.
2
Scope 2: Indirect CO2 emissions are derived from the carbon dioxide embodied in the electricity used in workplace offices and external computer rooms. The calculation is based on the national power grid emission factor 0.5568 tCO2/MWh proposed by the Ministry of Ecology and
Environment and the National Bureau of Statistics in the Announcement on the Release of Power Carbon Dioxide Emission Factors in 2021.
3
The statistical caliber is the waste generated by store decoration
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Key Performance Indicator 47
ESG metrics unit 2023 ESG metrics unit 2023
Document materials Pieces 340,887 Bachelor's degree Person 661
Jewelry boxes Pieces 443,103 Other degree Person 2,493
Diamond cleaning cloths Pieces 93,014 Position-based statistics (specific criteria may be adjusted
according to Company practices)
Social indicators
Number of managerial staff Person 87
employee
Number of non-managerial staff Person 3,125
Total number of worldwide employees (Includes part-time Regional statistics (specific criteria may be adjusted
Person 3,212
employees and interns) according to Company practices)
Gender-based statistics Mainland China Person 3,199
Male employees Person 371 Hong Kong, Macau, Taiwan, and overseas Person 13
Female employees Person 2,841 Statistics by position Person
Percentage of male employees % 12 Number of female employees in senior management Person 11
Percentage of female employees % 88 Number of male employees in senior management Person 14
Age-based statistics Number of female employees in executive management Person 44
Employees aged <=29 Person 1,640 Number of male employees in executive management Person 18
Employees aged 30-49 Person 1,568 Statistics by job type (specific criteria may be adjusted
Person
according to Company practices)
Employees aged >=50 Person 4 Part-time employees Person 1
Educational background statistics Interns Person 14
Doctorate degree Person 1 Full-time employees Person 3,197
Master's degree Person 42 Total number of newly hired employees Person 1,958
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Key Performance Indicator 48
ESG metrics unit 2023 ESG metrics unit 2023
Regional statistics Male employees % 0.51
Mainland China Person 1,954 Female employees % 0.50
Hong Kong, Macau, Taiwan, and overseas Person 4 Average years of service for employees Year 2.24
Age-based statistics Average years of service for female employees Year 2.14
Employees aged <=29 Person 1,359 Average years of service for male employees Year 2.34
Employees aged 30-49 Person 599 Employee training and development
Gender-based statistics Total Number of Trainees Person-times 52,824
Number of male employees Person 232 By gender
Number of female employees Person 1726 Number of male employees trained Person-times 4,371
Annual employee turnover rate % 0.50 Number of female employees trained Person-times 48,453
Regional statistics (specific criteria may be adjusted Percentage of male employees trained % 8.00
according to Company practices)
Percentage of female employees trained % 92.00
Mainland China % 0.50
Total training duration for all employees Hours 599,597.00
Hong Kong, Macau, Taiwan, and overseas % 0.24
By gender
Age-based statistics %
Total training duration for male employees Hours 51,533.00
Employees aged <=29 % 0.52
Total training duration for female employees Hours 548,064.00
Employees aged 30-49 % 0.47
By job category (specific criteria may be adjusted according
Employees aged >=50 % 0.00 to the Company’s practices)
Gender-based statistics % Number of management personnel hour 560
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Key Performance Indicator 49
ESG metrics unit 2023 ESG metrics unit 2023
Number of non-management personnel hour 1,344 Suppliers in Hong Kong, Macao, and Taiwan / 58
Average training duration per employee person-times 186 Suppliers in other regions / 31
Number of new employee training sessions Periods 5 Number of core suppliers / 108
Number of teaching hours for new employees Hours 42.00 Annual supplier access and number of audits / 822
Total training expenditure for employees RMB 10,000 58.24 Among them, statistics are based on categories
Employee health and safety Production suppliers Times 2
Annual employee occupational injury frequency (worldwide) Times 6 Diamond rough and processing suppliers Times 11
Recordable occupational injuries Person 6 Diamond inlay, gold, and silver jewelry material and
Times 8
processing suppliers
Percentage of recordable occupational injuries % 0.18%
Annual stable cooperation and key supplier integrity
Safety drill activities Times 2 % 100.00%
agreement signing rate
Number of safety training sessions Times 2 Number of new supplier CSR audits / 11
Employee safety training coverage % 100.00 Number of existing supplier CSR audits / 11
Supplier management Percentage of products with traceable raw materials % 100.00%
Number of suppliers participating in safety training Person 3,340 intellectual property
Supplier safety training coverage % 41.00% Categorized by type of intellectual property
Total number of suppliers / 2,662 Patents Pieces 216
according to regional statistics (specific criteria may be Copyrights Pieces 57
adjusted according to the actual situation of the Company)
Trademarks Pieces 108
Suppliers within China / 2,573
Annual number of intellectual property rights obtained Pieces 232
DR Corporation Limited 2023 Environmental, Social and Governance Report ESG Key Performance Indicator 50
ESG metrics unit 2023 ESG metrics unit 2023
Categorized by type of intellectual property Percentage of customer complaints handled promptly and
% 100%
closed on time
Patents Pieces 198
Customer satisfaction % 99%
Copyrights Pieces 57
quality control
Trademarks Pieces 7
Annual frequency of external quality system audits received Times 2
Total number of intellectual property rights held cumulatively Pieces 899
Number of litigation cases faced by the Company due to
Customer management Pieces 0
product quality safety violations
Cumulative number of serviced customers (customers Penalties imposed due to product quality safety violations
Ten thousand people 175 RMB 10,000 0
placing orders) resulting in litigation
Total number of brand followers on the Company's internet
Ten thousand people 3,000
platforms Incidents requiring recall from the total sold or shipped
Cases 0
products due to safety and/or health reasons
Annual cumulative volume of consumer complaints about
item 103
products and services
Classified by category (specific criteria can be adjusted Quantity of products requiring recall from the total sold or
Pieces 0
according to the Company's actual situation) shipped products due to safety and/or health reasons
Product quality complaints item 7
Public charity
Service complaints item 96
Number of philanthropic projects Pieces 3
Product quality complaint rate % 0.002%
DR Corporation Limited 2023 Environmental, Social and Governance Report GRI Standards Index 51
GRI Standards Index
Statement of use：DR has reported the information cited in this GRI content index for the period January 1, 2023 through December 31, 2023 with reference to the GRI Standards.
GRI used：GRI 1：Foundation 2021
GRI Standard Indicator Contents Sustainable Development Goals Where to find
2-1 Organizational details Our 2023
2-2 Entities included in the organization’s sustainability reporting Our 2023
2-3 Reporting period, frequency and contact point Our 2023
2-4 Restatements of information Our 2023
2-5 External assurance -
2-6 Activities, value chain and other business relationships Our 2023
2-7 Employees SDG-8, SDG-10 Supporting Employee Growth
GRI 2: General
Disclosures 2021 2-8 Workers who are not employees SDG-8 ESG Key Performance Data
2-9 Governance structure and composition SDG-5, SDG-16 Establishing Sound Corporate Governance
2-10 Nomination and selection of the highest governance body SDG-5, SDG-16 Establishing Sound Corporate Governance
2-11 Chair of the highest governance body SDG-16 Establishing Sound Corporate Governance
Role of the highest governance body in overseeing the management of
2-12 SDG-16 Establishing Sound Corporate Governance
impacts
2-13 Delegation of responsibility for managing impacts Message from the Management
2-14 Role of the highest governance body in sustainability reporting Message from the Management
DR Corporation Limited 2023 Environmental, Social and Governance Report GRI Standards Index 52
GRI Standard Indicator Contents Sustainable Development Goals Where to find
2-15 Conflicts of interest SDG-16 Communication with stakeholders
2-16 Communication of critical concerns SDG-16 Communication with stakeholders
2-17 Collective knowledge of the highest governance body Communication with stakeholders
2-18 Evaluation of the performance of the highest governance body ESG Strategy and Management
2-19 Remuneration policies Establishing Sound Corporate Governance
2-20 Process to determine remuneration -
2-21 Annual total compensation ratio -
2-22 Statement on sustainable development strategy ESG Strategy and Management
GRI 2: General
Disclosures 2021
2-23 Policy commitments -
2-24 Embedding policy commitments -
2-25 Processes to remediate negative impacts -
2-26 Mechanisms for seeking advice and raising concerns SDG-16 Communication with stakeholders
2-27 Compliance with laws and regulations -
2-28 Membership associations -
2-29 Approach to stakeholder engagement Communication with stakeholders
2-30 Collective bargaining agreements SDG-8 -
3-1 Process to determine material topics Materiality Analysis Process
GRI 3: Material Topics
3-2 List of material topics Materiality Matrix
2021
3-3 Management of material topics Materiality Analysis Process
DR Corporation Limited 2023 Environmental, Social and Governance Report GRI Standards Index 53
GRI Standard Indicator Contents Sustainable Development Goals Where to find
201-1 Direct economic value generated and distributed SDG-8, SDG-9 Our 2023
Financial implications and other risks and opportunities due to climate
201-2 SDG-13 Addressing Climate Change
GRI 201: Economic change
Performance 2016
201-3 Defined benefit plan obligations and other retirement plans Protection of Employee Rights
201-4 Financial assistance received from government -
Ratios of standard entry level wage by gender compared to local minimum
202-1 SDG-1, SDG-5, SDG-8 -
GRI 202: Market wage
Presence 2016
202-2 Proportion of senior management hired from the local community SDG-8 -
203-1 Infrastructure investments and services supported SDG-5, SDG-9, SDG-11 -
GRI 203: Indirect
Economic Impacts 2016
203-2 Significant indirect economic impacts SDG-1, SDG-3, SDG-8 -
GRI 204: Procurement
204-1 Proportion of spending on local suppliers SDG-8 -
Practices 2016
205-1 Operations assessed for risks related to corruption SDG-16 Business Integrity and Anti-Corruption
GRI 205: Anti-corruption
205-2 Communication and training about anti-corruption policies and procedures SDG-16 Business Integrity and Anti-Corruption
2016
205-3 Confirmed incidents of corruption and actions taken SDG-16 Business Integrity and Anti-Corruption
GRI 206: Anti-
Legal actions for anti-competitive behavior, anti-trust, and monopoly
competitive Behavior 206-1 SDG-16 Improving Business Ethics Mechanisms
practices
2016
DR Corporation Limited 2023 Environmental, Social and Governance Report GRI Standards Index 54
GRI Standard Indicator Contents Sustainable Development Goals Where to find
207-1 Approach to tax SDG-1, SDG-10, SDG-17 Ensuring Compliance in Business Operations
207-2 Tax governance, control, and risk management SDG-1, SDG-10, SDG-17 Ensuring Compliance in Business Operations
GRI 207: Tax 2019
207-3 Stakeholder engagement and management of concerns related to tax SDG-1, SDG-10, SDG-17 Ensuring Compliance in Business Operations
207-4 Country-by-country reporting SDG-1, SDG-10, SDG-17 -
301-1 Materials used by weight or volume SDG-8, SDG-12 -
GRI 301: Materials 2016 301-2 Recycled input materials used SDG-8, SDG-12 Construction of Green Stores
301-3 Reclaimed products and their packaging materials SDG-8, SDG-12 -
302-1 Energy consumption within the organization SDG-7, SDG-8, SDG-12, SDG-13 ESG Key Performance Data
302-2 Energy consumption outside of the organization SDG-7, SDG-8, SDG-12, SDG-13 ESG Key Performance Data
GRI 302: Energy 2016 302-3 Energy intensity SDG-7, SDG-8, SDG-12, SDG-13 ESG Key Performance Data
302-4 Reduction of energy consumption SDG-7, SDG-8, SDG-12, SDG-13 ESG Key Performance Data
302-5 Reductions in energy requirements of products and services SDG-7, SDG-8, SDG-12, SDG-13 -
303-1 Interactions with water as a shared resource SDG-6, SDG-12 Water Resource Management
303-2 Management of water discharge-related impacts SDG-6 Water Resource Management
GRI 303: Water and
303-3 Water withdrawal SDG-6 Water Resource Management
Effluents 2018
303-4 Water discharge SDG-6 -
303-5 Water consumption SDG-6 Water Resource Management
DR Corporation Limited 2023 Environmental, Social and Governance Report GRI Standards Index 55
GRI Standard Indicator Contents Sustainable Development Goals Where to find
GRI 304: Biodiversity Operational sites owned, leased, managed in, or adjacent to, protected
304-1 SDG-6, SDG-14, SDG-15 -
2016 areas and areas of high biodiversity value outside protected areas
304-2 Significant impacts of activities, products and services on biodiversity SDG-6, SDG-14, SDG-15 -
304-3 Habitats protected or restored SDG-6, SDG-14, SDG-15 -
IUCN Red List species and national conservation list species with habitats
304-4 SDG-6, SDG-14, SDG-15 -
in areas affected by operations
305-1 Direct (Scope 1) GHG emissions SDG-3, SDG-12, SDG-13, SDG-14, SDG-15 Water Resource Management
305-2 305-2 Energy indirect (Scope 2) GHG emissions SDG-3, SDG-12, SDG-13, SDG-14, SDG-15 Water Resource Management
305-3 305-3 Other indirect (Scope 3) GHG emissions SDG-3, SDG-12, SDG-13, SDG-14, SDG-15 Water Resource Management
305-4 GHG emissions intensity SDG-13, SDG-14, SDG-15 Water Resource Management
GRI 305: Emissions
2016 305-5 Reduction of GHG emissions SDG-13, SDG-14, SDG-15 -
305-6 Emissions of ozone-depleting substances (ODS) SDG-3, SDG-12 -
Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air
305-7 SDG-3, SDG-12, SDG-14, SDG-15 -
emissions
306-1 Waste generation and significant waste-related impacts SDG-3, SDG-6, SDG-11, SDG-12 -
306-2 Management of significant waste-related impacts SDG-3, SDG-6, SDG-8, SDG-11, SDG-12 Advancing Waste Management
GRI 306: Waste 2020 306-3 Waste generated SDG-3, SDG-6, SDG-11, SDG-12, SDG-15 ESG Key Performance Data
306-4 Waste diverted from disposal SDG-3, SDG-11, SDG-12 -
306-5 Waste directed to disposal SDG-3, SDG-6, SDG-11, SDG-12, SDG-15 -
GRI 308: Supplier 308-1 New suppliers that were screened using environmental criteria -
Environmental
Assessment 2016 308-2 Negative environmental impacts in the supply chain and actions taken -
DR Corporation Limited 2023 Environmental, Social and Governance Report GRI Standards Index 56
GRI Standard Indicator Contents Sustainable Development Goals Where to find
401-1 New employee hires and employee turnover SDG-5, SDG-8, SDG-10 ESG Key Performance Data
GRI 401: Employment Benefits provided to full-time employees that are not provided to temporary
401-2 SDG-3, SDG-5, SDG-8 Protection of Employee Rights
2016 or part-time employees
401-3 Parental leave SDG-5, SDG-8 Protection of Employee Rights
GRI 402: Labor/
Management Relations 402-1 Minimum notice periods regarding operational changes SDG-8 -
2016
403-1 Occupational health and safety management system SDG-8 Protection of Employee Rights
403-2 Hazard identification, risk assessment, and incident investigation SDG-8 Protection of Employee Rights
403-3 Occupational health services SDG-8 Protection of Employee Rights
Worker participation, consultation, and communication on occupational
403-4 SDG-8, SDG-16 Protection of Employee Rights
health and safety
403-5 Worker training on occupational health and safety SDG-8 Protection of Employee Rights
GRI 403: Occupational
Health and Safety 2018 403-6 Promotion of worker health SDG-3 Protection of Employee Rights
Prevention and mitigation of occupational health and safety impacts
403-7 SDG-8 Protection of Employee Rights
directly linked by business relationships
Workers covered by an occupational health and safety management
403-8 SDG-8 Protection of Employee Rights
system
403-9 Work-related injuries SDG-3, SDG-8, SDG-16 Protection of Employee Rights
403-10 Work-related ill health SDG-3, SDG-8, SDG-16 Protection of Employee Rights
404-1 Average hours of training per year per employee SDG-4, SDG-5, SDG-8, SDG-10 ESG Key Performance Data
Programs for upgrading employee skills and transition assistance
GRI 404: Training and 404-2 SDG-8 Employee Training and Development
programs
Education 2016
Percentage of employees receiving regular performance and career
404-3 SDG-5, SDG-8, SDG-10 Employee Training and Development
development reviews
GRI 405: Diversity and 405-1 Diversity of governance bodies and employees SDG-5, SDG-8 Protection of Employee Rights
Equal Opportunity 2016 405-2 Ratio of basic salary and remuneration of women to men SDG-5, SDG-8, SDG-10 -
GRI 406: Non-
406-1 Incidents of discrimination and corrective actions taken SDG-5, SDG-8 Protection of Employee Rights
discrimination 2016
DR Corporation Limited 2023 Environmental, Social and Governance Report GRI Standards Index 57
GRI Standard Indicator Contents Sustainable Development Goals Where to find
GRI 407: Freedom
of Association and Operations and suppliers in which the right to freedom of association and
407-1 SDG-8 -
Collective Bargaining collective bargaining may be at risk
2016
GRI 408: Child Labor
408-1 Operations and suppliers at significant risk for incidents of child labor SDG-5, SDG-8, SDG-16 Protection of Employee Rights
2016
GRI 409: Forced or Operations and suppliers at significant risk for incidents of forced or
409-1 SDG-5, SDG-8 Protection of Employee Rights
Compulsory Labor 2016 compulsory labor
GRI 410: Security
410-1 Security personnel trained in human rights policies or procedures SDG-16 -
Practices 2016
GRI 411: Rights of
Indigenous Peoples 411-1 Incidents of violations involving rights of indigenous peoples SDG-2 -
2016
Operations with local community engagement, impact assessments, and
413-1 -
GRI 413: Local development programs
Communities 2016 Operations with significant actual and potential negative impacts on local
413-2 SDG-2 -
communities
GRI 414: Supplier Social 414-1 New suppliers that were screened using social criteria SDG-5, SDG-8, SDG-16 -
Assessment 2016 414-2 Negative social impacts in the supply chain and actions taken SDG-5, SDG-8, SDG-16 -
415-1 Political contributions SDG-16 -
Assessment of the health and safety impacts of product and service
416-1 -
GRI 416: Customer categories
Health and Safety 2016 Incidents of non-compliance concerning the health and safety impacts of
416-2 SDG-16 -
products and services
417-1 Requirements for product and service information and labeling SDG-12 Intellectual Property Layout and Management
GRI 417: Marketing and Incidents of non-compliance concerning product and service information
417-2 SDG-16 Intellectual Property Layout and Management
Labeling 2016 and labeling
417-3 Incidents of non-compliance concerning marketing communications SDG-16 -
GRI 418: Customer Substantiated complaints concerning breaches of customer privacy and
418-1 SDG-16 Ensuring Sales Compliance
Privacy 2016 losses of customer data
DR Corporation Limited 2023 Environmental, Social and Governance Report Reader Feedback 58
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