九阳股份：2020年环境、社会及管治报告（英文版）

Contents
About the Report ............................................................................................................ 1
Message from the Chairman .......................................................................................... 2
About Us ........................................................................................................................ 4
Company Profile ..................................................................................................... 4
Honors & Awards .................................................................................................... 5
Corporate Governance ................................................................................................... 6
Governance Structure .............................................................................................. 6
Internal Control ....................................................................................................... 8
Protection of Shareholders' and Investors' Interests ............................................... 8
Business Ethics ....................................................................................................... 9
I．Home Appliances for High-quality Life ................................................................. 12
1.Product Innovation ............................................................................................. 12
2.Quality First ....................................................................................................... 16
3.Better User Experience ...................................................................................... 19
II、Building a Sound Ecosystem with Partners .......................................................... 241.Promoting Supplier Growth ............................................................................... 24
2.Expanding Sales Channels ................................................................................. 26
3.Industry-wide Win-win Strategy ........................................................................ 29
III、Poverty Alleviation Targets Nutrition and Health ................................................ 321.Joyoung Hope Kitchen ....................................................................................... 32
2.Contribution to Poverty Alleviation ................................................................... 37
3.Contribution to COVID-19 Battle ..................................................................... 38
IV、Young and Enterprising Joyoung Employees ...................................................... 411.Welcome to Joyoung .......................................................................................... 41
2.Employee Training ............................................................................................. 43
3.Care for Employees ............................................................................................ 49
V、Environmental Protection ..................................................................................... 551.Minimizing Environmental Impact .................................................................... 55
2.Efficient Resource Utilization ............................................................................ 58
Reader Feedback Form ................................................................................................ 60
About the Report
The Report is the first Environmental Social and Governance (ESG) report
released by Joyoung Co. Ltd. to address the stakeholders' expectations and
demonstrate Joyoung's values management actions and achievements in terms of
ESG and sustainable development.1. Reporting period
The Report is an annual report covering the period from January 1 2020 to
December 31 2020. Some content is appropriately retrospective.2. Report scope
Unless otherwise specified the Report covers Joyoung Co. Ltd. including all its
branches and subsidiaries.3. Data source
All the information and data presented in the Report come from Joyoung Co.Ltd.'s corporate documents statistical reports and financial statements as well as
information on ESG and sustainable development collected sorted and reviewed by
the company.4. Basis of preparation
The Report is prepared in accordance with the regulations and requirements as
specified in the Shenzhen Stock Exchange Social Responsibility Instructions to Listed
Companies.5. Shorter form of company name
For convenience the terms "Joyoung" "the company" and "we" all refer to
Joyoung Co. Ltd. in the Report.6. How to get the report
The Report is released in electronic form. Please download it from
https://www.joyoung.com/ or Cninfo.Message from the Chairman
In 2020 amid the severe COVID-19 pandemic China became the first country to
bring COVID-19 under effective control under strong leadership of the Communist
Party of China and the Chinese government. All Joyoung employees managed to stay
safe and healthy. We quickly adjusted our sales strategy and delivered remarkable
performance. In 2020 the company achieved a total revenue of RMB 11.224 billion
(up 20.02% YoY) and net profit attributable to shareholders of RMB 940 million (up
14.07% YoY).We have been focusing on our products and sales channels which are our two
major growth drivers. In terms of products we have managed to accelerate the
progress of our 3-tier R&D system maintained company competitiveness through
continuous product innovation and update and promoted product quality through
optimized supply chain management. We have been focusing on popular mainstream
products such as self-cleaning blenders and soy milk makers and uncoated rice
cookers as well as developing product series for these hero products. Our S160 rice
cooker one of the brand's latest releases was awarded as "2020 China Household
Appliances Innovation Achievement" for our disruptive steaming technology and
unique user experience. We have held the title of "Most Influential Small Home
Appliance Brand" for 12 consecutive years. In terms of sales channels we have seized
valuable opportunities for business growth brought by the new economy and live
commerce and integrated online and offline marketing efforts.In the context of globalization we will seize more opportunities in market
upgrade promote digital marketing adhere to our user-centered and demand-oriented
values tune to new habits and needs of younger customers take the leading role in the
industry and achieve high-quality growth.We encourage our employees to lead a healthy lifestyle and work happily. We
plan to build a young talent team full of youthful vitality and offer them a career
platform with infinite possibilities. We respect every employee's dream and effort. We
have been committed to public welfare undertakings for more than ten years. We
created Joyoung Hope Fund as part of China Youth Development Foundation's Project
Hope program and donated over RMB 50 million to it. We have built 1084 Joyoung
Hope Kitchens serving over 2.6 million citizens in 222 counties across 27 provinces
in China leaving footprints of love and kindness wherever we went. 2021 is the
beginning of our second decade dedicated to philanthropic initiatives. We plan to
donate RMB 50 million to public welfare in the next 10 years. I myself will also make
a personal donation of RMB 50 million to Joyoung Charity Foundation which was
established not long ago to facilitate our rural kitchen project and spread our warmth
and love to those in need.In the early days of the COVID-19 pandemic we worked together with other
sectors of society and donated disinfectant supplies home appliances and essential
supplies to frontline health care workers. We resumed work and production in an
orderly manner while ensuring our employees' safety and health so as to help
maintain social stability. Our performance in fulfilling responsibilities has been well
recognized by the public.In the future we will continue to focus on product innovation and customer
health and stay true to our original aspiration of promoting a healthy lifestyle. We will
keep pursuing sustainable business development and working with our partners who
share the same purpose of advocating high-quality healthy diets to build a
health-conscious national brand.Chairman of the Board of Directors
Wang Xuning
About Us
Company Profile
Joyoung Co. Ltd. is a company engaged in R&D production and sales of home
appliance products. Formerly known as Shandong Jiuyang Home Appliances Co. Ltd.founded in 1994 we were incorporated in July 2002 and went public at the Shenzhen
Stock Exchange on May 28 2008 (002242.SZ).As a leading home appliance brand in China we are devoted to innovation and
health advocacy through R&D production and sales of home appliances. Our
products are sold in over 30 provinces cities and autonomous regions in China as
well as more than 20 foreign countries and regions including Japan the United States
Singapore Indonesia and Thailand.We are mainly engaged in independent R&D design sales and proprietary brand
operation. We have developed a series of home appliances that facilitate healthy diets
including soy milk makers juicers food processors noodle makers rice cookers
pressure cookers as well as home appliances that support a high-quality lifestyle such
as mini vacuums electric mops and steam mops. We have established multiple
production and R&D bases in Jinan Hangzhou and other places forming a
cross-regional customized management structure.? Vision
We aspire to become a leading brand of high-quality home appliances featuring
innovation and a healthy lifestyle.? Mission
We are committed to offering products that enable global consumers to enjoy a
healthy and happy life. Our quality home appliances make home a better place.? Values
People teamwork responsibility and health
? Outlook on life
Work with passion and joy live a happy and healthy life
Honors & Awards
? In March 2020 Joyoung won 11 Red Dot Design Awards and 16 iF Design
Awards.? Joyoung was named the Most Influential Home Appliance Producer of the
Year at the 16th China Household Appliances Innovation Award Ceremony in 2020
where Joyoung's F30S-S160 rice cooker was awarded as a Product Innovation
Achievement.? In 2020 Joyoung won the 11th Tianma Award for Investor Relations (IR) of
Chinese Listed Companies the Best Board of Directors in IR Management and the
Best New Media Operations Award issued by Securities Times.? Joyoung was listed by Zhaopin as one of China's Best Employers 2020.? Joyoung was listed by 51job as one of Chinese College Students' Favorite
Employers 2020.? In 2020 Joyoung's Hope Kitchen project was listed as one of the Top 50
Outstanding Projects selected by the Poverty Alleviation Office of the State Council.? In 2020 Joyoung was awarded Remarkable Contributor to Hubei Province's
COVID-19 Prevention and Control and Role Model Company in COVID-19
Prevention.Corporate Governance
We adhere to our vision of "becoming a respectable national brand representing
innovation and a healthy lifestyle". We make constant efforts to improve corporate
governance internal control and investor relations to lay a solid foundation for
sustainable development.Governance Structure
We strictly abide by the Company Law of the People's Republic of China the
Securities Law of the People's Republic of China the Guidelines on Governance for
Listed Companies and other relevant laws and regulations and has accordingly set up
our General Meeting of Shareholders Board of Directors (as well as subordinate
committees) Board of Supervisors and management structure. Based on our
conditions and regulatory requirements we have created a multi-level operation and
management system that covers all of our operations based on the Articles of
Association with the purpose of promoting long-term optimization of the governance
structure and protecting the interests of the company and our shareholders.General Meeting of Shareholders
We strictly abide by the Articles of Association the Rules of Procedures for the
General Meeting of Shareholders and the Code of Conduct for Controlling
Shareholders and Actual Controllers in terms of the convening of general meetings
and relevant voting procedures. We treat all shareholders equally and guarantees that
shareholders can fully exercise their rights. During the reporting period we held two
general meetings of shareholders.Board of Directors (BOD)
We convene BOD meetings and perform relevant voting procedures strictly in
line with the Articles of Association the Rules of Procedures for the Board of
Directors and the Code of Conduct for Independent Directors as well as guidance by
the General Meeting of Shareholders. All of our directors perform their duty diligently
in accordance with relevant regulations and earnestly attend BOD meetings and the
general meeting of shareholders.Our BOD consists of four directors and three independent directors including
three female directors (43%). Our directors have abundant experience in various
industries such as law finance management and marketing which facilitates our
all-round development. The Audit Committee Remuneration and Appraisal
Committee Strategy Committee and Nomination Committee set up under BOD
performed all duties diligently during the reporting period.Board of Supervisors
Our Board of Supervisors is elected in accordance with the Company Law the
Articles of Association and the Rules of Procedures for the Board of Supervisors. The
Board of Supervisors consists of three supervisors who supervise the duty-related
acts of the directors and senior management in accordance with the Rules of
Procedures for the Board of Supervisors.The Board of Supervisors' responsibilities include: proposing to remove from
office any directors or senior managers who are in violation of laws administrative
regulations Articles of Association or resolutions made at the general meeting of
shareholders; conducting a general investigation in the event of any abnormality in
our operations; when necessary hiring an accounting firm or a law firm or other
professional institutions for assistance. The supervisors diligently perform their duties
and honestly and dutifully supervise our financial status and the performance of duty
by the BOD and senior management in terms of legality and compliance to safeguard
the legitimate interests of the company and our shareholders.Internal Control
We introduced our Internal Audit Policy and set up sound internal departments
on the basis of our business characteristics and internal control requirements. Based
on various internal policies we have clearly defined the objectives responsibilities
and authorities of each internal department and position and established
corresponding authorization inspection and accountability policies so as to ensure
counterbalance and mutual supervision among departments and positions. We have
formulated a complete set of management and operating procedures and system
standards and created an IT operating support system covering management and
industrialization for key control points in business processes. We are able to perform
full control over our operations using multiple systems including PLM PTS ISP
CRM and Collaborative Product Commerce.We set up the Internal Audit Department under the Audit Committee to review
and evaluate the completeness rationality and effectiveness of the internal control
system in internal departments and holding subsidiaries. In 2020 we evaluated and
monitored our internal control effort monitored reviewed analyzed and evaluated
the formulation and implementation of our internal control regulations and procedures
and put forward suggestions for rectification and improvement. We performed regular
audits on internal control at each business unit and prepared audit reports put forward
suggestions and advice for improvement and followed up on the rectification
progress.Protection of Shareholders' and Investors' Interests
We maintain close communication with our shareholders and keep track of
shareholders' expectations and requirements on the company so as to guarantee the
legitimacy and effectiveness of corporate decision-making. We value opinions from
small and medium investors as well as foreign institutional investors and actively
adopts useful suggestions in day-to-day operations to better protect small and
medium investors' interests. We conduct multi-dimensional communication with
investors through the Shenzhen Stock Exchange's IRM platform p5w.net (an investor
relations management platform) online and physical analyst workshops investors'
field research reverse roadshows for institutional investors etc. We disclose
information such as company news and announcements in a timely manner through
media designated by the China Securities Regulatory Commission and major financial
media both on a regular and irregular basis and have set up a multi-level
multi-dimensional investor relations management system to enable smooth and
efficient communication between the company and the public (including investors).We get included in indexes such as the MSCI (Morgan Stanley Capital
International) China A Index and FTSE Global China A Inclusion Index. We actively
respond to the capital market's expectations and concerns on our ESG performance.We were rated BBB in the MSCI ESG ratings in November 2020 and was well
recognized by ESG investors in the capital market.Business Ethics
We espouse a "culture of sunshine" in company operations and management
which upholds honesty and integrity. Our business codes consist of major relation
codes such as operating codes management and control codes and dealer and
supplier management codes employee performance standards and employee code of
conduct. By continuously improving the code of ethics trust mechanisms and
employee management we maintain high standards of business ethics and encourage
our partners to join such efforts. We have formulated a series of documents including
the Accountability Policy the Anti-fraud Policy the Audit and Monitoring Policy the
Policy on Management of Emotional Connection with Clients the Complaint and
Feedback Policy the Reward and Punishment Policy and the Rules on Other
Immediate Rewards and Punishment for Violations of Regulations and Disciplines to
prevent moral hazards in company operation and management and enhance the
monitoring and management of our business behaviors.In terms of business activities we sign a Corporate Integrity Agreement with
each of our suppliers and distributors setting out the code of conduct that all parties
should abide by in their business activities. We have expressly specified how to file a
complaint to the Audit and Monitoring Department as well as the economic and legal
liabilities as a result of violations. Our suppliers shall make commitments to guarantee
performance of contract and an open and transparent business environment. In the
management of emotional connections with the clients we have clearly defined the
acceptable types of gifts and entertainment offered by the clients so as to maintain
company integrity and decent business relations.As Internet technologies and smart home appliances find wide application we
pay significant attention to information and data security especially consumer privacy
protection. We regularly update our Privacy Policy on our official website. Each user's
private information will be kept strictly confidential and will not be shared with any
third party without the user's consent. In terms of information security we have
created a strict information security policy to control use of computers and networks
document storage and retention and data input and output. We have also formulated
relevant documents such as the Information System User Rights Policy and
Computer Terminal Security Policy to support the authorization mechanism and
handle information security risks while keeping business and systems running
smoothly.In order to implement effective monitoring of business activities we have set up
our own complaint and feedback platform and WeChat official account for customers
to file complaints and offer suggestions. The Audit and Monitoring Department is in
charge of complaint and feedback management and guarantees that customer
complaints and feedback are properly handled in a confidential objective thorough
and timely manner. We regularly carry out training sessions on business ethics. In our
"Star Plan" orientation program for new employees a special course named "Business
Ethics and Sunshine-style Management" will teach new employees about our "culture
of sunshine" and ethical bottom lines. Through case analysis and scenario-based Q&A
sessions new employees could develop a thorough understanding of business ethics.Every new employee will sign a letter of commitment on integrity and self-discipline.I．Home Appliances for High-quality Life
As an industry leader we have been focusing on appliances for healthy eating for
27 years since 1994 and enjoy a high brand reputation. With an upgrade of our
business and branding strategy we have transformed from a manufacturer of soy milk
makers to a provider of a wide range of home appliances promoting a high-quality
lifestyle. Through independent R&D and ongoing innovation we aim to make it easy
convenient and appealing to lead a healthy lifestyle for customers. With lightweight
stylish intelligent and convenient products offering a perfect combination of tools and
ingredients we help customers enjoy healthy diets with optimal nutrition effortlessly.1.Product Innovation
Product competitiveness depends on three factors: technology design and supply.Entering a new market where customer demand is high is crucial for a company's
long-term growth which requires an effective combination of technology design and
craftsmanship. Innovation is embedded in our DNA. We have attached great
importance to R&D and technological achievements since it was incorporated. We
have created a three-tier R&D system to meet customer demand for home appliances
facilitating quality lifestyles. We remain responsive to the evolving needs of the
market and keeps abreast of industry frontiers. In 2020 we beefed up investment in
R&D of innovative technologies and creating hero products and improved our R&D
system and policies and hired top talents to drive technological advancement and
innovation. In 2020 we invested RMB 345841900 in R&D (up 4.68% YoY)
accounting for 3.08% of the total revenue.Joyoung's Three-tier R&D System
Focusing on product innovation and customer health we made multiple
breakthroughs in R&D of home appliances promoting healthy and high-quality life
while pushing for research in the "big health industry" in an effort to explore new
healthy lifestyles in 2020. We have been working with the Institute of Materials
Science Chinese Academy of Sciences as well as top companies such as Huawei on
healthy materials and smart products. We plan to solve customer pain points in
promising fields and bring new growth drivers to us.Joyoung's Product R&D Achievements in 2020
Trailblazing Products
High-speed Blender/Food
Processor L18-YJ08 Horizontal Noodle Machine N3 K1S
The industry's first low-noise The industry's first horizontal The industry's first self-cleaning
variable-frequency blender noodle machine soy milk maker
Steam Rice Cooker S3 Steam Air Fryer SF5
Cordless Juicer Z2-Vmini The industry's first steam rice Steam-frying a healthier
The industry's first cordless cooker alternative
portable juicer with uncoated inner pot to stir-frying
Disruptive Products
Self-cleaning Low-noise Smart K780
Blender Y88 Vertical Noodle Machine L6 Cup-switching-enabled
The industry's first self-cleaning T h e i n d u st r y's first smart vertical m u lt if u n ctional self-cleaning soy
low-noise blender noodle machine milk maker
Steam Rice Cooker S160/S360
Cordless Juicer JYL-C902D The industry's first uncoated Sandwich Maker
The industry's first cordless st e a m rice cooker with a glass Breakfast solution for
portable juicer body certain scenarios
Promising Products
Auto-water-adding Noodle
Low-noise High-speed Blender Maker L20
L18-Y33D The industry's first smart D110 A1 solo D561
Self-cleaning low-noise w e ighing and water-adding Mini Soy Milk Maker
Smart Blender Y1 noodle maker (for one person)
Frame-shaped Steam Rice
Vertical Juicer JYZ-V5plus Cooker S501
Horizontal Juicer U n co a t e d and transparent steam
JYZ-E22C rice cooker
After the brand “Shark” entered the Chinese market it has quickly become the
No. 1 brand (by market share) offering steam mops and electric mops on major
e-commerce platforms such as Tmall and JD.com. Currently Shark's steam mops
which enable thorough steam disinfection and sterilization are popular among
customers who need deep home cleaning. In addition we provide cordless and
auto-clean electric mops for customers who opt for lightweight and cordless mops to
meet differentiated needs of deep cleaning. We are also working on developing
lightweight and cordless vacuum cleaners. We will tap into the synergy with Shark in
sales channel marketing R&D customer insight etc. to bring more variety into our
product portfolio.We have been encouraging technological innovation and doubling down on
intellectual property protection so as to lay a solid foundation for creating more
products with core advantages. We have built a professional efficient and outstanding
intellectual property team which is dedicated to enhancing our operations security
through continuous improvement of patent risk control. The team regularly conducts
patent monitoring so as to facilitate patent map analysis for various product lines. We
have been working on systematizing its trademark management and building up an
iron-clad trademark protection system. Today we are doing great in protecting our
patents for core products such as soy milk makers blenders and cookers. We will keep
widening and deepening our "patent moat".Joyoung Patent Data 2020
New Patent Applications 2227
——Inventions 307
——Utility models 1710
——Designs 210
Total Patents Obtained 8378
——Inventions 427
——Utility models 6846
——Designs 1105
In August 2020 Joyoung Kitchen Appliances Provincial Key Enterprise
Research Institute was listed as one of Zhejiang Province's Science and Technology
Projects.2.Quality First
Product quality is the core part of customers' rights and interests and the
lifeblood of an enterprise. We pin our faith on a strategic transformation toward a
brand of high-quality home appliances. We have established the Product Tracking
System (PTS) which can by dint of barcodes track and manage the entire business
chain including supplier portals process quality control logistics control distributor
purchase orders sales and inventory and after-sales management.PTS Functions
We have formulated a series of policy documents such as the Defective Product
Management Policy the Routine Product Quality Check and Confirmation Procedure
the Continuous Improvement Procedure the Supplier Quality Policy and the
Requirements on Outsourcing of Food Contact Materials so as to guarantee product
quality. We have set up the basic framework procedures and methods for safe designs
and formulated design specifications and design history files in an effort to guarantee
product design safety from the very beginning. We have created a quality
management system and a food safety management system and strictly apply them in
the production and operations processes. As for after-sales management we
proactively collect market feedback through multiple channels and analyze the
feedback information thus keeping improving our products. Our employees have
developed a strong awareness of quality. They strictly follow every procedure and
standard for production on-site management quality check etc. That's how we
maintain our product quality. In 2020 we recorded no product recall caused by
product safety concerns."Being practical collaborative dedicated and innovative." That is our vision for
quality control. We encourage every employee to take part in system management
process control and quality improvement. Since 2011 we have held 10 quality
control improvement events in a row. Over the past decade we have improved an
average of nearly 100 items every year. We did this only internally at first but now
our suppliers are also part of the annual event.2020 Quality Management Performance
We are committed to not only product quality but also life quality of our
consumers. We have set up the Nutrition Research Department for product research
recipe development and nutrition marketing. We have inked long-term partnerships
with relevant well-known universities such as Jiangnan University China Agricultural
University and Zhejiang Gongshang University to delve into nutrition and health
cooking theories and standard formulation so as to provide theoretical support for our
product R&D and innovation thus offering consumers a variety of cooking solutions.The Nutrition Research Department has hired six certified/senior nutritionists led
over 160 cooking research projects related to kitchen appliances such as soy milk
makers rice cookers and blenders developed over 2000 recipes and obtained over
30 patents.We have been active in attending external academic conferences and provincial
and municipal outstanding QC team selection activities. We have trained a lot of
quality control talents for ourselves and our suppliers through learning sessions and
competitions. In 2020 our project "Reduction of Transistor Defect Rate in Magnetic
Furnace LC7" won the second prize of Zhejiang Province's QC Achievement Contest
and the second prize of the 6th "Quality of China" Enterprise Case Contest; three of
our QC teams namely Special Agent Trailblazer and Vanguard each won the title of
2020 Hangzhou Excellent QC Team.State certified laboratory
We have built a state-level home appliance testing laboratory which has received a series
of certificates such as CNAS National Accredited Laboratory Laboratory Registered with
China Energy Label Management Center UL/SGS/TUV/ITS/KTL Laboratory and Public
Testing Resource Development Laboratory. As an effective guarantee for the quality of our own
products the testing laboratory also provides professional and reliable testing and inspection
services on material safety electromagnetic compatibility product performance reliability
chemistry food safety and nutrition for the home appliance industry.3.Better User Experience
We have been focusing on building an all-channel user experience-centered and
efficient customer service system offering flexible customer services and promoting
service digitalization so as to meet customers' diverse needs build a transparent "big
service" system and improve the brand reputation.We have been improving our communication with consumers. Our customer
service call center has more than 60 professional agents including product experts
and agents for VIP customers. We also have AI-powered customer service robots. We
keep training the robots with regularly updated service knowledge database. So far
our customer service robots have provided over 1.32 million services. Customers may
also directly contact our after-sales outlets through our WeChat mini program which
has so far provided about 1.14 million self-service queries. We have posted over 3.4
million customer engagements through all channels. Among them 80% are
self-service engagements which means we have a convenient and efficient inquiry
response system.We stick to the principle of "Sunshine Service". We never sidestep every
negative review. Instead we thrive on negative feedback and take it as our motivation
for developing better products. We have set up multiple online and offline channels
for consumers to seek help make suggestions and file complaints. We have been
streamlining our order dispatch management and complaint management as part of
our efforts to build a proactive service management system. We have introduced a
"First Call Accountability" complaint handling system. Whenever the Customer
Service Department receives a complaint via any channel it will check the content of
the complaint and forward it to the customer service manager and the responsible
department within 1 hour (during working hours) which will then handle the
compliant within 1 hour and notify the complainant of a handling result within 24
hours. As for any complaint that cannot be handled in a timely manner we will
promptly inform the complainant and apologize for our delay. We will follow up the
compliant until it is resolved. Throughout the process we pay full attention to how
consumers feel and do our best to minimize any negative impacts.Service digitalization is part of our transformation. We have integrated assorted
intelligent service features into our customer service platform which increases our
engagements with customers and enables real-time sharing of information such as
order dispatch response settlement and follow-up thus forming a visual
management dashboard that displays service quality efficiency early warning and
review. With service digitalization we have seen a 50% increase in our customer
service response and settlement efficiency.As of the end of 2020 we have had over 2000 after-sales service outlets over
300 repair centers and more than 3000 star-rated service workers across China
forming a nation-wide and all-round after-sales service system. Our after-sales service
system covers basic warranty policies five exemptions/safety checks trade-in
services and exclusive SKY services as we are seeking to meet consumers' diverse
needs and provide the best after-sales experience in the industry. We also regularly
carry out various offline activities as part of our consistent policy to serve our
customers before they ask and reward our loyal customers.Joyoung After-sales Service Policy
Shark (China) Service Policy
Exclusive SKY Services
Series Basic Benefits Extra Value
S-series rice
All models Lifetime free cleaning
cookers
K-series soy Lifetime free blade
All models
milk makers replacement
Lifetime free motor
Free shipping for YJ08/Y88/Y966.Y1/Y1Pro
replacement
in-warranty repair
10-year free motor
Y-series Y20/YZ01/Y60/Y920/Y930
replacement
blenders
One free motor
Models indicated on VIP card replacement (no time
limit)
In 2020 our product sales hit a new high. We also pay heed to how consumers
look at our brand. We have introduced the Kepler Observatory customer feedback
system to collect valid customer feedback on products purchases and services. In
2020 our customer experience improved by 26.24% YoY and our overall positive
feedback rate increased to 97.67%.Joyoung Industrial Tourism
Relying on a complete set of infrastructure facilities at the Joyoung Creative
Industrial Park we have built a Zhejiang demonstration base for industrial tourism
that integrates sightseeing learning shopping and other functions. We provide various
industrial tourism sessions and multi-functional tourism products including
sightseeing interaction research practice shopping and customized team building
for different customer groups. Visitors to the Joyoung Creative Industrial Park may
learn about our brand culture the way soybeans are made into soy milk kitchen
appliances and knowledge on health and nutrition. In 2020 the Joyoung Creative
Industrial Park received a total of 18000 visits while maintaining effective pandemic
control.Our industrial tourism business has won a series of awards such as Hangzhou
Youth Science Education Base Young Pioneers' Labor Education Base Study Camp
Base for Hangzhou Primary and Middle Schools Quality Education Practice Base for
Hangzhou Primary and Middle Schools International Tourism Resort for Social
Resources and Hangzhou Best Metropolitan Attraction of the Year.II、Building a Sound Ecosystem with PartnersIn order to build a sustainable ecosystem of "healthy and smart kitchen" we have
been seeking partners that share our values. We are working with our partners along
the industry value chain (R&D products supply and sales) to create a sound business
ecosystem thus achieving mutual growth and win-win outcomes.1.Promoting Supplier Growth
Supply-chain partners are very important to us. We have a wide range of
suppliers including original design manufacturers (ODM) original equipment
manufacturers (OEM) and component suppliers which are mainly located in the
Yangtze River Delta region the Bohai Bay Rim (where Jinan in Shandong is the
center) and the Pearl River Delta region. We seize market opportunities and
implement the strategy of "Three Stars and Two Capabilities" to improve our entire
manufacturing process and performance for higher supply capacity and better
coordination with suppliers so as to cater to the ever-changing customer demands.Through cooperation with Tmall in 2018 we digitalized our supply chain.We have introduced the Procurement Management Policy which requires our
new suppliers to pass ISO 9001 or IATF 16949 quality management certification. To
guarantee safety and sound environmental management suppliers are required to
comply with laws and regulations on fire safety environmental impact assessment
pollution discharge employee health and safety etc. We monitor suppliers' product
quality process quality and system quality. In the event of any defect we urge
relevant supplier to take remedial measures.We conduct quality check and performance testing on suppliers every year. In
April 2020 we carried out quality check on 37 suppliers including 11 component
suppliers. Over 89% of them receive a three-star or better rating. Our suppliers
performed well in terms of the Three Firewalls China Compulsory Certification
(CCC) and New Product Introduction (NPI). In 2020 we launched lean production
certification on 27 suppliers and our Jinan Factory in terms of mechanism quality
assurance on-site improvement and reform and innovation. More than 70% of the
suppliers passed the certification and our Jinan factory obtained five-star certificate.In addition to helping our suppliers improve their product quality and
manufacturing management we give them a hand when they are in the throes of
operations. After the Spring Festival 2020 COVID-19 began to bite as some
suppliers were nagged by shortage of workers logistics restriction and growing labor
and raw material costs. In this context we provided our suppliers with resources and
preferential terms and recommended them our partner bank where they could apply
for loans so as to help them get over the hump.Case: Supply Chain Live Streaming Workshop
The Supply Chain Live Streaming Workshop is a live streaming platform we have
developed to empower our suppliers and impart supply chain knowledge to our employees. The
workshop aims to promote supply chain integration.On April 29 2020 we held the first live streaming session to interpret supplier quality
management systems which involved a total of 206 participants including our procurement
managers and quality engineers and 92 representatives from 57 suppliers. During the session
we offered insights into several key points including the scope of supplier certification APQP
process and MAS. We fielded many questions raised by supplier representatives. The session
was well received by suppliers. We also held a series of special live streaming events focusing
on POP modules R&D management general management cultural modules and lean
production modules in 2020.2.Expanding Sales Channels
We have introduced a series of distributor rating policies including the VIP
Distributor Rating Policy the Distributor Rating Policy and the Color-based (Red
Yellow and Green) Distributor Rating Policy to classify our distributors into four
levels (Class A B C and D) and VIP distributors into four groups (Diamond Gem
Jade and Rising Star). We encourage our distributors to put forward advice on our
marketing and management thus enhancing our brand reputation.To expand our sales channels we have been improving our existing tens of
thousands of physical points of sale across China and exploring new retail models. We
have opened specialty stores in hundreds of shopping malls. Our online business
continues to grow which keeps sharpening our e-tail edge. We have also ventured into
new retail and live streaming fields in an effort to create a one-stop all-category
visualized and interactive shopping scenario for consumers. Our new attempts have
achieved many intelligent features such as data monitoring and sharing member
management traffic attraction QR code payment and shipment. We have gained more
than 20 million followers from multiple channels including WeChat Weibo Douyin
Kuaishou points of sale and after-sales outlets.As we are pooling more resources to target younger customers we have come up
with a "brick and click" approach: Consumers can watch live streaming events online
and try the product offline. Relying on digital operations we have seized
opportunities brought by the popularity of video sharing and live streaming and
created an interactive scenario-based business model comprised of sales channels
products brand influence and users forming a three-dimensional and multi-level sales
network for precision marketing. We channel most of our resources to mainstream
products to achieve high-quality growth and expand brand influence.During the COVID-19 pandemic we helped our distributors and product
promoters embrace a new sales model: live commerce. We taught them how to use
live streaming devices and how to use the novel means to boost their product sales. In
2020 more than 150000 product promoters participated in over 10000 on-site live
streaming events.Smart stores
There is a natural barrier between traditional e-commerce channels and physical
brand stores resulting in multiple problems including low inventory turnover and
varying customer experience. Smart stores are a right solution to these pain points. In
terms of logistics and product distribution we ship products from the nearest store to
customers so as to improve inventory efficiency in physical stores and minimize the
physical distance between the place of origin and consumers thus significantly
improving consumer experience. Moreover such mechanism could mitigate the
shipment pressure of e-commerce warehouses in big sales seasons. In this way online
orders are distributed to stores across China for delivery thus facilitating inventory
sharing in all channels. Online store and physical store inventories could be shared to
guarantee sufficient supply and promote inventory structure and inventory turnover.Case: Smart Stores of New Retail
Joyoung Tmall Flagship Store integrates the inventory information flow with the product
flow highlighting a core of "full channels good shopping experience and high efficiency." The
store allows customers to select a product online and try the product offline a move that could
win customer trust and expand brand influence. We also provide customers with special
discounts for purchase at physical stores and the in? store self-pickup service. In this way we
can get closer to consumers and boost footfall.Case: Y3 Blender Becomes Top Seller in Kitchen Appliance Sector upon Debut
Y3 Blender was one of Joyoung's key strategic products in 2020. Joyoung tried to convey
a brand proposition of "cooking at home" and kept highlighting a feature of "auto clean"
through scenario-based marketing. Y3 Blender rocketed to the list of Tmall Hey Box's Class-S
new products upon its debut and one of the RMB-1000-odd top-selling appliances in Douyin
marketing. It was also the best-selling kitchen appliance upon debut in recent year. This was
another low-budget marketing success where Joyoung chalked up 340 million impressions and
reported a GMV of RMB 7.46 million and sales of 5727 units on the first day of release.3.Industry-wide Win-win Strategy
We take win-win partnership as our business growth strategy. In the "Internet +"
era we are seeking business partners with shared values in fields of R&D products
supply and marketing etc. so as to achieve a synergistic effect.Case: Cooperation in Product Development: Joyoung X Huawei Smart Kitchen - Auto
Clean K2S Soy Milk Maker Unveiled
At the Huawei Developer Conference held in May 2020 Joyoung and Huawei jointly
launched a smart soy milk maker powered by Huawei Harmony OS. The K2S Soy Milk Maker
allows users to enjoy smart features such as quick control quick services and quick recipe
customization.With the Harmony OS the soy milk maker can be connected to all smart kitchen
scenarios. It is Joyoung's trailblazing attempt to integrate "smart kitchen appliances" into "smart
homes". K2S is a key milestone in Joyoung's technological development from pulverization
heating boiling fine grinding and extraction to blending dry soybean grinding filtering-free
smart control and auto clean. Totally freeing users' hands K2S ushers in a new fashion for
kitchen life.Case: Cooperation in Business Environment Safeguarding: Joyoung Joins Alibaba
Anti-Counterfeiting Alliance
Joyoung has inked a partnership with Alibaba in intellectual property protection. Joyoung
serves as the chairman of the furniture and home appliance group a member of the advisory
committee and the new observation editor at the Alibaba Anti-Counterfeiting Alliance
(AACA).
Joyoung and Alibaba have jointly launched a Queqiao anti-counterfeiting project in which
Joyoung provides Alibaba with new counterfeiting clues it has found on the Internet and
Alibaba regularly informs Joyoung of the suspected infringing products it has removed from its
platforms. The project aims to promote information exchange and improve anti-counterfeiting
efficiency. Joyoung has also cooperated with Alibaba in product identification special cases
civil litigation and other relevant fields. Joyoung also actively participates in AACA's public
education training sessions anti-counterfeiting projects theoretical and legal research events.In the AACA + Dada Planet Golden Week event Joyoung for the first time empowered nearly
200 AACA brand owners in intellectual property protection demonstrating its ongoing effort in
business education.Case: Cooperation in Supply Chain: Joyoung and Cainiao Supply Chain Upgrades
Strategic Partnership
On October 30 2020 Joyoung and Cainiao Supply Chain announced an upgrade of their
strategic partnership. On top of the existing B2C model they will extend their cooperation to
the B2B field. Cainiao will cover the logistics from factories to Cainiao warehouses for
Joyoung solving Joyoung's full-link shipment issues. In addition Cainiao Supply Chain will
also build an integrated and visualized supply chain system that includes online/offline business
flow data flow logistics and capital flow a move that could help Joyoung reduce circulation
nodes and improve efficiency in warehouse network layout.Case: Cooperation in Procurement: Joyoung Teams up with Sunyur to Launch First
Digital Platform for Home Appliance Procurement
On December 28 2019 Joyoung and Beijing Sunyur Network Technology Co. Ltd.announced the launch of Joyoung Yuegou Mall a platform that allows Joyoung to achieve an
online and visualized procurement management and promote agreement-based procurement.As Joyoung's first SaaS system Joyoung Yuegou Mall enables Joyoung to manage
purchasers consumers and suppliers in real time and bring demand orders and other data
online. The digitization of the full procurement chain which covers purchase requisition
ordering shipment and settlement proves to be a boon for Joyoung to create greater value cut
cost and improve efficiency. Connected to 25 systems such as Oracle EBS self-developed OA
system and WMS system Joyoung Yuegou Mall has realized the devolution of bargaining
power to suppliers and distributors. As a trailblazer in the digital procurement of small home
appliances Joyoung Yuegou Mall is expected to give a strong boost to the industry
development.III、Poverty Alleviation Targets Nutrition and HealthCharity has been part of our values from the word go. During our development
we always remain true to our original aspiration to contribute to poverty alleviation.We have launched several philanthropic projects such as Hope Kitchen and student
assistance.1.Joyoung Hope Kitchen
Over the past decade we have leveraged our strengths and established 1084
Joyoung Hope Kitchens in 222 counties in 27 provinces and autonomous regions
across China. Every day more than 500000 students can enjoy the food cooked from
Joyoung Hope Kitchens. The Hope Kitchen project has so far benefited more than 2.6
million people.We have introduced the "Hope Kitchen + Nutrition Education" model to improve
students' dining environment enhance students' awareness of nutrition and help them
develop good eating habits. According to statistical data most schools that have
introduced Joyoung Hope Kitchens have set up a food safety department and 97% of
them have improved meal preparation efficiency. In addition the average meal
preparation time has been shortened by nearly 30 minutes the kitchen utensils have
been disinfected by nine times per week the average number of students eating at
school has increased by 34% the per capita energy cost of student meals has dropped
by 18% and the malnutrition rate in students has fallen by 14.92%. From a sample of
grade-5 students the average height growth in them reached 1.43 cm where the
figure is 1.25 cm for boys and 1.57 cm for girls. Comparing with the baseline data in
2010 the average height growth in grade-5 students in schools that have introduced
Joyoung Hope Kitchens reached 4.68 cm where the figure is 5.56 cm for boys and
3.92 cm for girls. Joyoung Hope Kitchen has created a social value of nearly RMB
227 million and brought a social return on investment (SROI) of 233%.In 2020 Joyoung Hope Kitchen was listed as one of the Top 50 Outstanding
Projects and included in the Yearbook 2020: China's Poverty Alleviation Efforts by
the Poverty Alleviation Office of the State Council. The Joyoung Hope Kitchen
project team has been active in pairing poverty alleviation in eastern and western
regions and it has formed a targeted poverty alleviation model in collaboration with
the Poverty Alleviation Office. In 2020 we successively launched a special poverty1
alleviation campaign themed "Build Improve and Standardize" in China's
poverty-stricken regions such as Weiyuan in Gansu Qiandongnan in Guizhou
Pingjiang and Sangzhi in Hunan and Liangshan in Sichuan. The campaign focusing
on three aspects: equipment management and personnel aimed to ensure local
students could eat healthy and nutritious meals at school.Top 50 Outstanding Projects on Targeted
Poverty Alleviation by Chinese Companies1
"Build" refers to building kitchens in rural schools in poverty-stricken regions; "Improve" refers to
improving the meal preparation capacity and efficiency; "Standardize" refers to standardizing school
kitchen management by organizing relevant training sessions.Joyoung Hope Kitchen has become an influential charity brand both internally
and externally. We recruit volunteers from our employees and the public who are
kind-hearted and care about public welfare. Joyoung Hope Kitchen volunteers are
good teachers of nutrition education for needy children. Joyoung Hope Kitchen not
only brings direct benefits to children but also gives volunteers and the public an
opportunity to learn about the current status of rural education and life and do what
they can to help others while drawing life inspiration.Invest RMB 30000-100000 in building a Hope Kitchen that is
equipped with modern utensils and meets the national hygiene
Kitchen
standards
Form a standardized kitchen and a duplicable show kitchen
Set up a nutrition education class to raise students' awareness of
nutrition and cooking
Organize nutrition education camps to help students develop
Nutrition Education
good eating habits
Develop nutrition education textbooks based on the
characteristics of students of different ages
Joyoung Hope Kitchen proves to an impetus for the Nutrition Improvement
Program for Rural Students under Compulsory Education and one of the basic and
sustainable ways for poverty alleviation among students. With the poverty alleviation
drive emerging triumphant and the rural revitalization strategy in full swing we
established the Zhejiang Joyoung Charity Foundation at the Zhejiang Provincial
Department of Civil Affairs in 2020 in a sign of our ongoing support for rural
education rural health and other related areas in rural revitalization. In the next
decade we will continue to donate RMB 50 million to the foundation. Plus Joyoung
Chairman Wang Xuning's personal donation of RMB 50 million the foundation will
have at least RMB 100 million available for our major rural kitchen projects. Joyoung
Charity Foundation is turning a new page.Case: Joyoung Hope Kitchen Musters up Multi-party Support for Needy Students in
Sangzhi
Sangzhi in Hunan Province is a state-level poverty-stricken county. The State Intellectual
Property Office has been working on poverty alleviation in Sangzhi for 22 consecutive years
mainly in terms of education. In 2016 recommended by the State Intellectual Property Office
the Joyoung Hope Kitchen project team threw itself into the nutrition improvement plan for
rural students under compulsory education in Sangzhi County. From 2016 to 2020 the team
paid several visits to local schools for field research and mapped out kitchen renovation and
construction plans based on the actual conditions of these schools. At last we managed to build
34 high-quality Joyoung Hope Kitchens in the county extending our targeted poverty
alleviation efforts from education support to nutrition improvement.With the hardware project bearing fruit the Sangzhi County Education Bureau struck
while the iron was hot and put together an expert team to prepare the Detailed Healthy Recipe
for Sangzhi Primary and Middle School Students. Based on the Dietary Reference Intakes and
the Dietary Guidelines for Chinese Residents as well as local eating habits market supply
economic conditions etc. the recipe underscored a reasonable balance of whole grains and fine
grains as well as meat and vegetable ingredients. The recipe was then applied to all other
schools in the county.The Sangzhi County Education Bureau also formulated corresponding detailed recipe
boards and standardized the school canteen cost accounting table based on the Hunan Province
Primary and Middle School Canteen Management Regulations and stipulated that all the state
subsidies for the nutrition improvement plan and 75% of the living expenses voluntarily paid by
students must be spent on food purchase and the spending details must be disclosed to students
parents and the public. The move turned out to
be another guarantee for students' healthy
growth.\
Case: Nutrition Education Workshop 2.0
In 2020 we launched the 2.0 version of the Nutrition Education Workshop as part of our
upgraded support for the sustainability of nutrition education. We provided the guidance for
nutrition education workshop decoration free hardware facilities courses training sessions
etc. Such free resources are updated every two years to help teenagers and children grow up
healthily. The Nutrition Education Workshops aim to offer health and nutrition knowledge
based on kitchens and cooking and promote traditional food culture popularize good eating
habits table manners teamwork innovative thinking aesthetics etc. so as to help them stay
healthy and happy.Changsha Affiliated School of Henan Zhengzhou Yingcai
Beijing Normal University International Primary School
Zhejiang Pinghu Chongwen Primary School Yiwu Yiting Primary School
2.Contribution to Poverty Alleviation
Consumption-based poverty alleviation
We have introduced a poverty alleviation model of "purchase as donation".During the Women's Day and the Mid-Autumn Festival we purchase agricultural
products from poverty-stricken districts and counties and regions covered by the
Mountain-sea Cooperation Project.We launch agricultural products shopping events such as Charity Fair and
New-year Shopping for Poverty Alleviation from time to time among our employees
and partners as part of our poverty alleviation efforts.Education-based poverty alleviation
In 2008 we set up an RMB 20 million education charity fund under the Charity
Federation of Jinan Huaiyin District. The fund has been donating its annual interest on
principal to the Charity Federation of Jinan Huaiyin District since then. So far it has
donated nearly RMB 15 million.3.Contribution to COVID-19 Battle
When the COVID-19 pandemic broke out at the beginning of 2020 we
immediately swung into action and donated four batches of logistics-related
appliances worth about RMB 5 million as our support for the front-line medical
personnel.On January 26 2020 the second day of the Lunar New Year Wuhan imposed a
total lockdown sending local medical and living supplies into short supply. We
quickly donated water purifiers boilers Shark steam sterilizing mops and other
resources to the Wuhan Red Cross.In order to support hardworking medical personnel in Wuhan on February 7
through Shandong Provincial Red Cross we donated 600 insulated tumblers and
portable boilers to Shandong's first and second batches of medical workers heading
for Huanggang Hubei. We also donated 2400 bags of instant soy milk powders to
several local hospitals as well as 2000 bags of instant oatmeal to local medical staff
through Alibaba Foundation as our gratitude for their kindness and devotion.In addition to home appliances we also donated 1000 ICU respirator hoods
worth RMB 120000 to the Second Affiliated Hospital Zhejiang University School of
Medicine. These hoods were used for COVID-19 prevention and control in Wuhan
especially for self-protection for medical workers treating critically ill patients.Our anti-pandemic efforts were highly recognized. The anti-pandemic command
centers at Hubei Province Wuhan Huanggang Jingzhou sent us their letters of
gratitude. We were also honored as a Remarkable Contributor to Hubei Province's
COVID-19 Prevention and a Control and Role Model Company in COVID-19
Prevention.IV、Young and Enterprising Joyoung Employees"People teamwork responsibility and health" are four keywords in our
corporate culture. We have created an open and fair career development platform for
our employees and have constantly been improving our talent training system. We
provide employees with opportunities to study outside the workplace every year and
attach importance to internal training and promotion. We have built three career paths
as well as an internal competition-based promotion system. We have created a
creative working environment and provide our employees with competitive
compensation and benefits so as to help them achieve their personal value work with
passion and joy and live a happy and healthy life.1.Welcome to Joyoung
We abide by the Labor Law of the People's Republic of China the Labor
Contract Law of the People's Republic of China the Employment Promotion Law of
the People's Republic of China and other relevant laws and regulations. We stick to
legal employment and advocate a diversified standardized and transparent
employment system. We prohibit discrimination on the grounds of gender ethnicity
religion or political stance. We sign labor contracts with employees on the basis of
equality free will and consensus and specify the legal rights and obligations of both
the employer and employees. We have been expanding our social and campus
recruitment channels. In 2020 we organized a series of recruitment events such as the
Special Job Fair for Overseas Graduates to introduce top talents for the fast-growing
company. As of December 31 2020 we have had a total of 2846 employees and our
employee structure was as follows:
Gender Count Turnover
Female 946 28.92%
Male 1900 24.75%
Age Count Turnover
29 and
1381 31.99%
below
30-39 1225 20.40%
40-49 198 18.18%
50 and
42 18.75%
above
Native Place Count
Mainland China 2839
Hong Kong Macao or3
Taiwan
Overseas 4
Job Level Count Turnover
Junior 2424 28.39%
Middle
344 12.74%
management
Senior
78 11.69%
management
2.Employee Training
We are on the fast track to growth. We are gathering more human resources and
optimizing the allocation of human resources. We maintain our growth momentum by
improving staff professionalism and allocating posts that stretch every employee.Making best of talents
We have developed our Talent Supply Chain 2.0. Based on our actual business
needs we have mapped out a talent development blueprint for the next one to three
years. We have reserved key talents as candidates to middle and senior management
and key positions through internal training and external recruitment. We provide
employees with three career paths namely technology-oriented quality-oriented and
patent-oriented paths. We have built a project manager echelon. We review our talent
pool every year and efficiently apply ability assessment results based on the talent
nine-square grid so as to identify high-potential talents improve key capabilities and
guarantee the succession of key positions. At the same time we have been introducing
top talents for our new business as well as talents with key capabilities and huge
potential to expand our talent pool for the future.The management team is a vital part of our human resources strategy. We have
formulated a bench plan for succession to each core manager position to avoid
long-term vacancies. We have implemented the "Running Water Plan" for managers
where they rotate every three to five years to enhance organizational vitality. We are
bold in promoting young employees with good performance in a bid to build a
battle-hardened talent team.Training talents in multiple ways
We have our own online knowledge base lecturer pool and resource pool and
regularly introduce knowledge from external parties and develop internal
micro-lectures. We review our knowledge base every three months and record every
learning process so that we can have our finger on the pulse of every employee's
growth progress and accurately evaluate how a project is implemented.We have developed our Xiaoyang Academy training platform that offers blended
learning mobile learning game-based learning and informal learning as well as
digital marketing. Designed for our strategic projects Xiaoyang Academy can provide
innovative interactive flexible online learning programs where employees can find it
fun and convenient to learn. We have set up a specific training academy for each of
our six fields namely Marketing R&D Management Job HR and Leadership
which are all carried out at Xiaoyang Academy.During the COVID-19 pandemic in 2020 the login rate of Xiaoyang Academy
reached over 95% and the monthly average learning hours per capita was about 8
hours. Xiaoyang Academy provided more than 50 special blended learning projects
online learning tasks etc. Xiaoyang Academy was awarded the Best Digital Operation
by YXT.com in 2019 and was listed as one of the Top Corporate Digital Business
Schools 2019-2020 by CEIBS Business Online.Innovations at Xiaoyang Academy
With a combination of online and offline courses our employees can
Blended
access concise and interesting illustrated micro-lecture resources and
learning
acquire new knowledge in their fragmented time.We have built a shared community for mobile terminals as we
encourage employees to create their personalized micro-lectures. We
regularly hold micro-lecture competitions to make micro-lecture part of our
Mobile learning
brand culture. We have adopted a progressive incentive system and a point
system for payment to create an exclusive mobile learning platform for our
employees.To motivate our employees to study we have integrated learning and
Game-based
game experience and turned dreary learning processes into interesting
learning
challenges through customized question pools and amusing level-up games.We have introduced a tutor-based training model based on the
formulation of tutorial regulations and improvement in tutor training set up
Informal online tutor-based training plans flexibly arranged position experience
learning practice scenario simulation and other sessions and carried out monthly
meetings to promote employee training and give full play to the effects and
advantages of informal learning.Digital marketing exists throughout the innovative learning programs.Digital We send event notifications push learning resources design amusing
marketing articles and posters through our corporate account and learning platform to
attract learning.Training hours per capita
Case: TRIZ Innovation Training Camp
In order to solve R&D challenges and train top lecturers in 2020 we set up the TRIZ
Training Camp for researchers and R&D personnel from various business units. Trainees
selected burning problems related to their business and they were split into 23 groups. TRIZ
innovative tools were then applied in a standardized way to solve those problems under the
guidance of external consultants and internal lecturers. During the program our lecturers also
acquired a lot of experience.We collected over 130 study cases and over 100 patents through the program. We saw
breakthroughs in product upgrades cost reduction and so on. The numbers of TRIZ level-1
level-2 and level-3 engineers increased to 183 (by 3 times) 32 (by 4 times) and 13 (by 13
times) respectively. In addition the program cultivated 24 internal lecturers of which more
than 90% were R&D personnel. The program was well received among employees and became
the second popular program among employees following the new employee training program.Apart from our employees we also share our learning resources with our
suppliers and distributors. We customized the training programs to help our partners
grow together with us thus promoting collaboration along the industry value chain.Case: Practice-based NPI Training for Suppliers
In order to improve the new product introduction (NPI) capability of product and
component suppliers and the engineering department and establish a scientific and sound
connection between products and projects we arranged a practice-based NPI training session
for 21 representatives from product and component suppliers and 25 Joyoung employees. We
invited experienced lecturers to describe NPI practices in a systematic way and help supplier
representatives consolidate the knowledge they had learned through after-class assignments
which could help improve the NPI capability thus reducing hazards in mass production and
complaints over product quality.Case: Training on New Channel Development and Offline Channel Digitalization
In December 2020 we invited an expert in new business marketing to give a lecture on the
development of new channels and the digital transformation of physical channels for our
distributors. Through various business cases the expert expounded on the transformation of
traditional retail channels marketing innovation and other related knowledge keeping
distributors up to speed on the latest marketing trends.3.Care for Employees
We abide by the national laws and regulations. We uphold a philosophy of "work
with passion and joy live a happy and healthy life" and provide employees with
competitive compensation and benefits as well as a safe and comfortable working
environment. We protect the legitimate rights and interests of our employees and
respect different opinions.Compensation and benefits
We set store by the basic rights and interests of every employee and provide
them with endowment insurance medical insurance unemployment insurance
work-related injury insurance maternity insurance and housing provident fund in
accordance with the Social Insurance Law of the People's Republic of China as well
as commercial insurance to guarantee that every employee has the benefits they
deserve. We have established a competitive compensation and benefit system. We
provide our employees with incentives based on company profits and their personal
performance. We give special reward to meritorious backbone employees without
compromising fairness. We also provide our employees with perks such as
high-temperature allowance cash benefits dormitories shuttle buses annual physical
examination special holidays and care services. We offer a subsidy to encourage our
employees to pursue further study and get professional certificates.Skill-based wage position allowance assessment-based wage BU
Compensation
performance bonus R&D bonus outstanding sales bonus company
system
performance bonus innovation incentives equity incentives etc.Health: regular free physical examination high-temperature allowance
etc.Care: team building free travel communication allowance meal
allowance holiday allowance Six Visits etc.Benefits
Insurance: five social insurances and the housing fund paid in full
additional commercial insurance accident insurance
Vacations: paid annual leave marriage leave maternity leave nursing
leave funeral leave antenatal care leave breastfeeding leave etc.Housing: 5-year free apartment housing for backbone employees
themed training apartment
Daily life Shuttle bus: 10 shuttle routes covering the downtown area of Hangzhou
benefits Canteen: affordable healthy food
Supporting facilities: free gym and fitness facilities dry cleaning shop
barber shop grocery Internet cafe KTV etc.Work-life balance
Three Cultural Events namely Sports Meeting Staff Conference and Gala
Evening are our major traditional employee events. We regularly hold these events to
enhance employees' sense of belonging and happiness. We also have a WeChat
platform for employee interaction the Joyounger journal an employee BBS and
anniversary publications.Three Cultural Events: 1. Sports Meeting
On October 17 2020 Joyoung held the "Running Joyoung" fun sports meeting where
employees took part in a series of competitive amusing and family events such as the 8 x 50 m
relay race tug-of-war fun games and parent-child competitions. A total of 16 teams
participated in the sports meeting. The sports meeting served as a platform for exchange among
different teams which enhanced employees' awareness of teamwork and sense of honor and
sparked their enthusiasm for work and life.Three Cultural Events: 2. Staff Conference
The staff conference is held every two years. On April 23 2019 the Joyoung Staff
Conference titled "Exceeding" was held at the Jialiang Auditorium China Jiliang University. At
the awards ceremony during the staff conference outstanding employees and teams received a
series of awards which played an important role in enhancing employees' sense of honor and
motivating them. In addition the chairman and president also gave their speeches at the
conference which helped employees better understand Joyoung's new strategies for the next
year and future and motivated them to bring better performance.Three Cultural Events: 3. Gala Evening
On November 19 2019 Joyoung held the "Joyful Joyoung" Gala Evening to celebrate the
25th anniversary. All the gala shows were orchestrated and performed by Joyoung clubs
various departments and employees' family members. There were singing and dancing
musicals sketches sitcoms choruses fashion shows martial arts etc. Event photos were
updated in real time attracting nearly 45000 viewers. The event fully demonstrated who
Joyoung employees are and what they can do. It was also a presentation of the Joyoung culture.To advocate "work with passion and joy live a happy and healthy life" since
2008 Joyoung employees have successively set up 22 clubs with a wide range of
themes including sports culture nutrition health skills and parent-child relations.They spontaneously organize colorful leisure events where they can exchange freely
to enrich the spiritual culture. Joyoung has built a stadium a gym a dance studio an
ensemble and a VLOG live streaming studio which cover a total area of 10500
square meters as part of its full support for club activities and encouragement for
work-life balance.Joyoung club activities
The School of Nutrition live streamed 47
sessions about nutrition education for terminal
supervisors and followers.The Running Club organized a Health
Run event which enrolled 157
The Baking and Cooking Club carried out six employees. A total of 137 employees
baking and cooking events. recorded their participation online.Employees' occupational health
The safety and health of our employees is the prerequisite for all of our
production and business activities. We strictly abide by the Production Safety Law of
the People's Republic of China and other relevant laws and regulations. We have
passed the Occupational Health and Safety Assessment Series 18001
(OHSAS18001:2011). We have been improving our rules and regulations on
occupational health and enhancing our routine supervision and inspection so as to
raise employees' awareness of health and encourage them to live healthily and work
happily.When the COVID-19 broke out we quickly formulated an emergency plan to
provide protective measures for employees' Spring Festival trips and work resumption.We also launched an online health reporting system to track employees' daily health
status and shared knowledge on immunity enhancement and pandemic prevention
and control. While following pandemic control requirements we resumed operations
in an orderly manner and cleaned and disinfected our workplace thoroughly.Employees were required to wear face masks and encouraged to attend online
meetings work from home and keep distance from others to protect themselves and
people around them.V、Environmental ProtectionWe advocate harmony between humans and nature. We seek to minimize the
environmental impact of our production and operations in response to the global call
for energy saving and emission reduction and higher energy and resource utilization.We have been paying close attention to the latest requirements on environmental
protection such as waste sorting. We are working hard to be a role model in
environmental protection.1.Minimizing Environmental Impact
We have passed the ISO14001:2015 (Environmental Management Systems). We
conduct an internal environmental impact assessment every year and hire a third
party for external review every three years as required. Our factories in Jinan and
Hangzhou generate almost no waste gas and water in their production so their
environmental impact is quite small. Our emissions are also within the permit of
relevant national standards. We received no complaints or administrative penalties
over pollution throughout 2020.We pay close attention to the environmental impact of our operations. In 2020
when the Hangzhou Municipal Government issued the updated Hangzhou Household
Waste Disposal Act we quickly set up a special team to promote implement and
manage waste sorting. We applied a waste sorting framework featuring daily review
weekly reporting and monthly summary in an effort to keep improving our efforts to
tackle environmental impact. Through waste sorting and waste reduction measures
we reported a 13.66% year-on-year drop in waste generated in 2020.Joyoung's waste disposal efforts
In our park we replaced old dustbins with 100 waste-sorting bins and
replaced old outdoor dustbins with new ones for hazardous waste.Infrastructure
We also upgraded its waste recycling zone and built a solid waste
recycling section in accordance with waste disposal regulations.We pasted posters across the park promoted waste sorting through
WeChat and other common channels and assigned specific personnel to
Propaganda review the effectiveness of waste sorting.We opened a waste sorting course to the Joyoung Industrial Tourism
project.We hired a third party to collect recyclable waste sorted at the park. In
2020 296170 kg of cardboard 9410 kg of oil papers 12170 kg of foam
board and 34472 kg of scrap metals were recycled.Waste recycling We partnered with a non-profit organization to regularly collect
recyclable waste such as clothing and cotton for charity donations.We also cooperated with a professional company to collect kitchen
waste from our canteen for special disposal.Our production and operations usually do not generate hazardous
waste. In the event of any hazardous waste we sign a contract with a
Hazardous
professional waste disposal company which will collect the hazardous
waste disposal
waste on a quarterly basis and dispose of them annually in a safe and
compliant way.Case: Waste Sorting Course for Industrial Tourism
As a role model company in industrial tourism we not only do great in waste sorting in
our park but also prod our visitors into action.In 2020 we opened a waste sorting course to our industrial tourism project. Designed in a
vivid way the course aimed to raise the awareness of environmental protection in children and
parents promote waste sorting methods and contribute to social sustainability.Waste home appliances have high recyclable value but they also contain a
variety of heavy metals and pollutants. Improper disposal will cause pollution to the
environment. In May 2020 the National Development and Reform Commission and
six other authorities jointly issued the Plan on Improving the Recycling and Disposal
of Waste Home Appliances to Promote the Home Appliance Repurchase the latest in
the government's timetable for streamlining the home appliance industry chain
covering production purchase recycling and disposal in the next three years.In 2015 the United Nations Development Programme and Baidu jointly initiated
the Baidu Recycle Green Service Alliance. We joined the alliance in support of waste
electronics recycling in China. We launched a trade-in service to encourage
consumers to give a small appliance of any brand to Joyoung for a discount of up to
RMB 400 in the purchase of a new Joyoung product. In 2020 we recycled more than
100000 used household appliances through the trade-in service. The recycled waste
appliances were shipped from after-sales outlets to a local recycling company for
proper disposal.2.Efficient Resource Utilization
We strictly abide by the national regulations on environmental protection. We are
seeking to be an environmentally-friendly company to make the world a greener
place. In 2020 we took a series of measures for energy saving and emission reduction
and developed an eco-friendly corporate culture.- We encouraged employees to turn off lights during lunch break for one
hour.- In the whole park we replaced 28 W non-LED lights with 14 W LEDs
replaced 14 W non-LED lights with 8 W LEDs and added 1280 LEDs which
helped save 1942 kWh throughout the year.- We canceled the business vehicle service in the urban area and advocated
public transportation. In 2020 our fuel consumption was reduced by 48000 liters
compared with 2019.- We advocated double-sided printing which helped save 487010 pieces
of A4/A3 paper in 2020.- We launched an online Q&A session (with prizes) on energy
conservation and emission cut.- Every night our employees conducted a routine check on energy using
and the check results were disclosed everyday within the company.Renewable energy is an effective way to curb climate change and achieve green
and low-carbon development. In production and operations we have been exploring
how we can make the best use of renewable energy based on local conditions. In 2015
Joyoung Creative Industrial Park and Hangzhou Zhengtai Photovoltaic Power Co.Ltd. collaborated on a photovoltaic power project. Under the project 35000 square
meters of photovoltaic devices were installed on the roofs of our factories. In 2020
these devices generated 3.06 million kWh of photovoltaic power of which 79% was
used by the park while the rest was fed into the State Grid.Joyoung's energy consumption in 2020
Type Consumption Saving
Purchased power (kWh) 12681336 /
Clean power (kWh) 2404604 /
Gasoline (liter) 60408 Down 44.51% yoy
Natural gas (cubic meter) 54370 /
Water (ton) 180298 Down 8.86% yoy
A3 paper (piece) 5500
Down 30.17% yoy
A4 paper (piece) 1121500
Reader Feedback Form
Dear reader
Thank you very much for taking your time reading our Environmental Social
and Governance Report 2020. We sincerely look forward to your comments on the
report and our work. We will appreciate it if you may fill out this form and send it to
us by mail or scan it and send us a copy by email. Thank you!
Address: No.760 Yinhai Street Xiasha Subdistrict Qiantang New District
Hangzhou Zhejiang
Post Code: 310018
Email: 002242@joyoung.com
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June 2021