清水源:2022年度环境、社会与公司治理（ESG）报告[英文版]

Stock Code：300437
Henan Qingshuiyuan Technology Co. Ltd. 2022 EnvironmentalSocial andGovernance (ESG) Report
WeChat ID:
Tel: 0391-6089342
Address: 100m West of the Intersection of Kegong Road and Wenbo Road
Huling High-tech Zone Jiyuan City Henan Province
Email: bgs@qywt.com.cn
Henan Qingshuiyuan Technology Co. Ltd.Website: http://www.qywt.com.cn01 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT CONTENTS TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 02
About the Report 03 07 About Qing Shui Yuan 53 Sustainable Employment
President Remarks 05 Company Profile 09 Employee Structure 55
Corporate Events 09 Employee Recruitment 56
Business Layout 11 Employee Development 56
Appendices 84 Products & Services 13 Employee Welfare 57
Index of Indicators 84 Honors & Awards 15 Employee Care 58
Employee Occupational Health &
Key Emission Institution 89 29 Governance for Sustainable Safety 59Development Employee Rights 60
Feedback Table 93 Employee Democracy 60
The Concept of Sustainable Development 31
Stakeholder Communication 33
ESG Performance 34
61 Care for Society
Topic 1
Assistance in Education 63
Digital Development—Intelligent Shuiyunzong 35 Following the Party's Lead “Anti-Illegal Fundraising” 63for Steady Development Public Welfare ActivitiesSystem Architecture 6417
Charitable Donations
Key Applied Technologies 6518 Building a Strong Defense Against
Fighting the Epidemic
Project Promotion on Shuiyunzong Platform 19 Corruption
66
37
Prospect of Public Welfare
Relevant Academic Achievements 19 Party Building Leads our Way
68
37
Business Development 20
Industry-University-Research Cooperation 20
Topic 2 39 Corporate Governance for Safety in Production—Qing Shui Yuan in Peace Qing Shui Yuan 69 Quality Management
Supply Chain 71
Occupational Health Management 21 Three-Board Governance 41 Product Quality Control 72
Safety Guarantee 21 Organizational Structure 42 Customer Orientation 73
Safety Training and Drills 22 Returns to Shareholders 42
Investor Relations Management 43
Topic 3 Information Disclosure 43
Green business—Supporting the Dual Carbon Supervision Audit and Anti-Fraud 43
National Policy Compliance Management 44
Environmental Water Engineering 25
Environmental Protection Service 28 45 Homeland Protection 75 Innovative Development
Environmental Management 47 R&D System 77
Energy and Resource Management 49 R&D Achievements 79
“Three Wastes” Emission Management 50
Green Office 52
CONTENTS Environmental Protection Training 5203 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT THE REPORT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 04
About the Report
Report Description Appellation ExplanationHenan Qingshuiyuan Technology Co. Ltd.’s 2022 Environmental Social and Governance (ESG) Report is the first ESG For the convenience of expression and reading Henan Qingshuiyuan Technology Co. Ltd. is called “Qing Shuireport released by Qing Shui Yuan since its IPO in 2015. In the spirit of being objective standardized transparent Yuan” “the Company” “the Group” or “We” for short in the Report. In addition the words “Country” and
and comprehensive the Report details Qing Shui Yuan’s practice and performance in ESG in 2022. “Government” mentioned in the Report refer to the People’s Republic of China and its administrative agencies.Time Span
Phrase Explanation
The reporting period is from January 1st 2022 to December 31st 2022. Previous years’ data may be presented in
this Report adequately in order to enhance the comparability and completeness of the Report. Phrases refers to Explanation
Issue Cycle Henan Tongsheng Environmental Engineering Co. Ltd. a wholly-Tongsheng Environmental refers to owned subsidiary of Qing Shui Yuan
The Report is an annual report. Shaanxi Ande Technological Industry Co.Ltda wholly-owned Ande Technological ，Shaanxi Ande refers to subsidiary of Qing Shui YuanReport Scope Jiyuan Qingyuan Water Treatment Co. Ltd. a wholly-owned Qingyuan Water Treatment refers to subsidiary of Qing Shui Yuan
The Report covers Henan Qingshuiyuan Technology Co. Ltd. as well as its branches subsidiaries and subordinate H2Q INC refers to H2Q INC Ltd. a wholly-owned subsidiary of Qing Shui Yuan
agencies. The scope of the Report is the same as that of the annual report unless otherwise stated.Jiyuan Siweida Environmental Technology Co. Ltd. a holding
Siweida refers to subsidiary of Qing Shui Yuan
Basis of Preparation Shuiyunzong refers to Henan Shuiyunzong Intelligent Control Technology Co. Ltd.The Report is prepared under the following standards: Qingshuiyuan Shanghai refers to Qingshuiyuan (Shanghai) Environmental Technology Co. Ltd.· United Nations Sustainable Development Goals (SDGs)
· Global Reporting Initiative the Sustainable Reporting Guidelines (GRI Standards)
· Chinese Academy of Social Sciences Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises
(CASS-ESG5.0) Report Language
· Social Responsibility and National Standards Social Responsibility Reporting Guidelines (GB/T36001-2015)
· Shenzhen Stock Exchange Guidelines 2 for Self-regulation of Companies Listed on Shenzhen Stock Exchange: Standard- This report includes both Chinese and English versions in case of any discrepancies between Chinese and English
ized Operation of Companies Listed on GEM the Chinese version shall prevail.· Shenzhen Stock Exchange Guidelines 1 for Self-regulation of Companies Listed on Shenzhen Stock Exchange: Business
Processing Chapter I “Information Disclosure”: Section 2 “Periodic Reporting on Related IssuesHow to get the Report
Data source and Reliability Assurance
Please flip through or download the electronic edition of the Report from Henan Qingshuiyuan Technology Co.The data used in the Report come from the information released by government departments concerned relevant Ltd.’s official website (http://www.qywt.com.cn) for more information.internal statistical reports of Qing Shui Yuan third-party questionnaires administrative documents and reports
third-party comments etc. Qing Shui Yuan hereby promises that the content of the Report is true accurate If you have any questions or advice on the Report please feel free to email us at dongshihui@qywt.com.cn or call
complete and free of any false record misleading statement or major omission. us at 0391-6089342.05 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT PRESIDENT REMARKS TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 06
President Remarks
2023 is the first year in which the spirit of the 20th National Congress of the Communist Party of China will be thoroughly imple-
mented and it is also a crucial year for confronting new challenges and opportunities. Qing Shui Yuan will continue to adhere
to our fundamental philosophy of "being a century-old enterprise that benefits society and serves the world" and our
"water-centered development strategy" will remain unwavering. We will continue to promote the enterprise's growth through
science and technology strong talent management and legal compliance while upholding the Company's "diligence perse-
verance learning and innovation" ethos. Keeping a close eye on the national industrial policy and the development trend of
upstream and downstream industry Qing Shui Yuan will focus on meeting customer demand through a variety of activities
including "Year of Quality and Efficiency" "Industry-University-Research-Application Cooperation" "Job Rotation" "Talent
Echelon Construction" "Mentoring" "Cost Reduction and Efficiency Improvement" etc.Qing Shui Yuan has always held the view that technological innovation fuels high-quality business development and that core
technology is the sole determinant of long-term growth. Qing Shui Yuan must view R&D and innovation as its lifeline embrace
R&D and innovation as the endogenous driving forces for business development and keep a close eye on the frontiers of science
and technology in order to establish multiple business lines. Qing Shui Yuan will also continue to recruit outstanding R&D
personnel increase R&D investment and efficiency strive to create a collaborative innovation platform and master more core
technologies in order to strengthen the Company's core competitiveness. In the field of water treatment chemicals the Company
Wang Zhiqing the Actual Controller Chairman and President of Henan Qingshuiyuan Technology Co. Ltd. will actively explore and expand the category and application scope of water treatment chemicals focus on developing new
types of green environment-friendly water treatment water treatment chemicals continuously optimize the product structure
improve the product performance raise the technical content of products dig deep into high-profit chemical products in high
demand and find new profit growth points; in the field of engineering the Company will take advantage of its qualifications
technology and human resources concerning municipal works industrial wastewater treatment and environmental protection
to undertake high-quality projects prevent operational risks improve the efficiency of capital utilization spread corporate
values by implementing high-quality projects and resume corporate social responsibility (CSR) through high-quality projects; in
Dare to forge ahead at the forefront of the times the field of industrial Internet we will continue to increase Shuiyunzong Company’s investment in the R&D of a water quality
monitoring sensor water quality measuring and controlling device water quality analyzer and online dosing system so as to
With the change of seasons we’re ushering in an extraordinary historical period. constantly enhance product quality and performance. In order to provide our consumers with intelligent goods and services we
will also intensify our efforts to exploit the market and enhance the dynamic monitoring and intelligent management of the
The year of 2022 was a truly eventful year in the history of our business development. Consistently exerting tremendous effort we were industrial water treatment system on the Shuiyunzong Industrial Internet Platform.able to withstand the test of complex economic and social environments and make substantial progress. In 2022 we pushed ahead
with production and operation technological innovation and project construction in a planned manner. The construction of the Qing Shui Yuan is an enterprise with a strong sense of social responsibility. Adhering to the principle of people orientation we
Qingshui Fine Chemical Industrial Park the relocation of our water treatment line and the construction of the phosphorus pentachlo- care for the physical and mental health and career development of our staff respect every hard worker continuously cultivate a
corporate culture of helping and supporting one another and protect the rights and interests of every staff member while pursu-
ride project were completed in a timely manner and we received AEO certification. Shuiyunzong was successfully identified as a
ing innovative development. The Company will commit to reforming and optimizing our digital process in order to achieve a
high-tech enterprise and a provincially specialized and sophisticated enterprise specializing in producing new and unique products. An win-win situation in terms of performance and benefits. We endeavor to implement ecological and sustainable operations.e-procurement platform was successfully launched. The Henan Provincial Postdoctoral Innovation Practice Base (Qing Shui Yuan) was While innovating to reduce energy consumption per unit we provide our customers with high-quality products and intelligent
officially inaugurated. A new breakthrough was made in product R&D. Full-time courses began to be offered in the Qing Shui Yuan total solutions and contribute more to their intelligent operation quality improvement efficiency increase energy conservation
Chemical Engineering Class. Progressive in our social responsibility we established the Jiyuan Charity Federation—Qing Shui Yuan and pollution reduction goals.Fund provided financial assistance to freshmen donated CNY 2 million for rural educational resource allocation and contributeddisinfectants for the prevention of epidemics. Qing Shui Yuan won the title of “Henan Province’s Top Ten Technological Innovation-Ori- We’d better not slow down while chasing the wind and the moon because there is spring scenery at the end of the open grass-land. In 2023 Qing Shui Yuan will continue to uphold the core idea of “being a century-old enterprise that benefits the societyented Environmental Protection Enterprises” and carried out a series of rewarding activities in a deep-going way to “carry forwardand serves the world” to create greater value for the customers staff members shareholders and society. On the road toexcellence set a good example and gather strength”. In 2022 we felt the concern and support that people from all walks of life had high-quality development we are ready to work hard with our partners from the global upstream and downstream industries to
for Qing Shui Yuan in a complex internal and external economic environment. This bolstered our confidence and determination to actively promote energy conservation and emission reduction to achieve sustainable development goals in a low-carbon
develop core technology expand the environmental protection industry and assume greater social responsibilities. manner!About Qing
Shui Yuan
Qing Shui Yuan is one of the leading Chinese enterprises that
specializes in developing and producing water treatment chemi-
cals and providing related services. The Company will continue to
promote our own development concept and strategic objectives to
the industry and its consumers in order to increase their identifica-
tion with us and thereby increase our influence within the industry
and market.Company Profile 09
Corporate Events 09
Business Layout 11
Products & Services 13
Honors & Awards 1509 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 10
Company Profile 1995 Qing Shui Yuan Group’s predecessor Jiyuan Qingyuan Water Treatment Co. Ltd. was established.Henan Qingshuiyuan Technology Co. Ltd. (hereinafter referred to as “Qing Shui Yuan”) founded in 1995 headquartered in
Jiyuan High-Tech Industrial Development Zone Henan Province. On April 23rd 2015 Qing Shui Yuan was listed on the Shenzhen
Stock Exchange GEM (stock code: 300437). As a standing council member of the Specialized Committee on Industrial Water
Treatment of the Chemical Industry and Engineering Society of China and a member of the Society for Water Treatment Chemi- Henan Qingshuiyuan Technology Co. Ltd. was established through the share
cals National Standardization Technical Committee of Chemical Qing Shui Yuan has contributed to the formulation and revision 2008 reform.of 25 national standards and 45 industry standards. The Company holds over more than 100 patents and exports its products to
over 50 countries and regions worldwide.Core Idea
Qing Shui Yuan was identified as both a provincial water treatment chemical
Being a century-old enterprise that benefits the 2010 engineering technology center and a provincial enterprise technology center.society and serves the world
Corporate Vision
To be a first-class environmental protection enter-
prise in China and the globe. 2015 Qing Shui Yuan was listed on the Shenzhen Stock Exchange GEM.Corporate Spirit
Diligence Perseverance Learning Innovation.
2018 Qing Shui Yuan initiated a period of collectivization development; a water
Governance Philosophy treatment chemical extension project with an annual output of 180000 tons was
launched..My efforts contribute to the growth of the Company the
happiness of my family and the cohesion of society.
2019 The scientific and technological achievements of the intelligent water treatment service system passed the expert review.
Corporate In April 2022 Lou Yangsheng the Secretary of the Henan Provincial Party Committee
Events inspected the Qing Shui Yuan R&D Center.In May 2022 Qing Shui Yuan donated disinfectants to the front line for epidemic prevention 2020
and control.A signing and inauguration ceremony was held for the Qing Shui Yuan - Zhengzhou University
Ecological Environment Research Institute and Henan International Joint Laboratory of Intelligent
The 2022 Central Plains Private Entrepreneur Training Program and Famous Enterprise Visits Water Treatment System; Qing Shui Yuan hosted the China Conference on Industrial Water and 40thmade their ninth stop in Qing Shui Yuan in July 2022. It was hosted by GEJUPINGTIANXIA Henan Annual Meeting. Qing Shui Yuan and some staff members won the “Technological InnovationHeadquarters and put on by Jiyuan Entrepreneurs' College with help from the Henan Federa- Award” “Development Leader Award” “Distinguished Member Award” “Young Elitetion of Industry and Commerce. Award” and “Outstanding Contribution Award”. The "Technological Innovation Award"
"Development Leader Award" "Distinguished Member Award" "Young Elite Award" and "Outstand-
Events in ing Contribution Award" were won by Qing Shui Yuan and our staff members.In July 2022 Qing Shui Yuan held a learning activity to mark the first anniversary of “Qing
2022 Shui Yuan - Tai Chi - Health” Tai Chi Fitness Program. 2021
Qing Shui Yuan hosted a seminar on “Carbon Peaking and Carbon Neutrality” Goals and
Intelligent Water Treatment Technology. The seminar was attended by more than 300 experts
In August 2022 the Qing Shui Yuan - Zhengzhou University Ecological Environment Research scholars and entrepreneurs from over 150 organizations including universities research
Institute held an academic symposium in the R&D Building of Qing Shui Yuan. institutes and enterprises based in 26 provinces. Moreover an inauguration ceremony was held
for the Henan Provincial Postdoctoral Innovation Practice Base (Qing Shui Yuan).In September 2022 Qing Shui Yuan held a ceremony for launching the “Jiyuan CharityFederation - Qing Shui Yuan Fund” and granting subsidies to freshmen. 2022
Lou Yangsheng the Secretary of the Henan Provincial Party Committee inspected the Qing Shui
Yuan R&D Center. He pointed out that Qing Shui Yuan should concentrate on key areas such as
In November 2022 Qing Shui Yuan donated approximately 15 tons of disinfectants for the high-end instrument manufacturing optimize resource allocation amass the strength to make
control of epidemics. new technological breakthroughs and strive to get ahead of the curve on new tracks in order to
provide robust support for high-level technological innovation.11 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 12
Business Layout
The Company is mainly engaged in the production and sales of water treatment chemicals the treatment of municipal and
industrial water the comprehensive treatment of water environments etc. and specializes in promoting the innovative develop-
ment of the water-centered industry chain. We strive to drive the coordinated development of various business lines such as
water treatment chemical development and production intelligent services for industrial water treatment complex industrial
wastewater treatment and resource utilization municipal and rural wastewater treatment etc.The Company has nine subsidiaries which are as follows: Jiyuan Qingyuan Water Treatment Co. Ltd. Qingshuiyuan (Shanghai)
Environmental Technology Co. Ltd. Henan Tongsheng Environmental Engineering Co. LTD Shaanxi Ande Technological Industry
Co.Ltd Hainan Free Trade Zone Qingshuiyuan Environmental Technology Co. Ltd. Qingshuiyuan (Beijing) Investment Co. Ltd. Shaanxi Ande Technological Industry Co.Ltd Qingshuiyuan (Beijing) Investment Co. Ltd.H2Q INC Jiyuan Siweida Environmental Technology Co. Ltd. and Henan Shuiyunzong Intelligent Control Technology Co. Ltd. Industrial Water Treatment Terminal Service Center Investment and Financing Management Center
Additionally the Company has formed R&D partnerships with the Chinese Academy of Sciences (CAS) Tsinghua University Tongji
University Zhengzhou University etc. Through brainstorming achievement transformation complementary advantages and
resource sharing the Company has assembled a team of renowned Chinese experts including famous academics and estab-
lished the “Henan Provincial Water Treatment Chemical Engineering Technology Research Center” “Qing Shui Yuan - CASEcological Environment Research Center for Soil Pollution Control and Ecological Rehabilitation” “Henan International JointLaboratory of Intelligent Water Treatment System” “Qing Shui Yuan - Zhengzhou University Ecological Environment ResearchInstitute” and “Henan Provincial Postdoctoral Innovation Practice Base (Qing Shui Yuan)”.Ecological and
dustrial water environmental
treatment protection
Qingshuiyuan (Shanghai) Environmental Technology Jiyuan Siweida Environmental Technology Co. Ltd.Co. Ltd. Sanitation facilities and technology development municipal
Talent and Technology Center solid waste treatment
Shuiyunzong intelligent service Ecological rehabilitation and river regulation
Pharmaceutical R&D production and sales Municipal and rural sewage treatment
Complex industrial wastewater treatment
H2Q INC(USA) Hainan Free Trade Zone Qingshuiyuan Environmental
Jiyuan Qingyuan Water Treatment Co. Ltd. Henan Tongsheng Environmental Engineering Co. LTD
Introduction of overseas marketing technology Technology Co. Ltd.Water Treatment Chemical Production Base Environmental Protection Project Operation Center Import and export trade13 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 14
Products & Services
The Company is one of the leading Chinese manufacturers of water treatment chemicals with a large production capacity and a variety
of products such as organic phosphines and polymers. Organic phosphines are broadly classified as HEDP ATMP DTPMP PBTCA etc.;polymers are primarily classified as HPMA Polyacrylic acid Polyacrylic acid copolymer etc.; water treatment chemicals can be HEDP（(hydroxyethylidene-1 ATMP (amino trimethylene DTPMP (diethylenetriamineclassified according to their application as flocculants corrosion inhibitors antiscalant dispersant bactericidal algicides coagulants 1-diphosphonic acid) phosphonic acid) pentamethylene phosphonic acid)
disinfectants pH regulators etc. Water treatment chemicals are primarily employed to remove suspended solids and toxic substances
from water inhibit the formation of water scale and sludge reduce corrosion on water-contact materials enhance the effects of
deodorization sterilization decoloration softening etc. and to maintain water quality. The majority of the Company's water treatment
chemicals are used for industrial water treatment including the purification of water used in industrial production such as process
water cooling water industrial raw water and polluted industrial wastewater in a variety of industrial sectors including chemical
engineering steel power sewage treatment and tap water supply. AA/AMPS(2-acrylamido-2- HPMA (hydrolyzed BHMTPMPA (Bis (hexamethylene triamine
methylpropanesulfonic acid-acrylic acid polymaleic anhydride) penta (methylene phosphonic acid))
Our water treatment products have been granted U.S. NSF certification and EU REACH registration. copolymer)
Water treatment chemicals and features
Organic phosphonic acid/Organic Bactericidal algicide/slime stripper
phosphonates H?PO? (phosphorous acid) HPAA(2-hydroxyphosphonoacetic PBTC(2-phosphonobutane-12Used extensively for industrial circulating cooling water acid) 4-tricarboxylic acid)
Used for scale control in cooling water systems oil pipelines treatment pollution-free pesticides swimming pool water
and boilers; used as a antiscalant in oil pipelines filled with treatment drinking water treatment industrial bleaching The Company provides water treatment services including system design device integration construction installation and
high-hardness and hypersaline liquid. and household and public disinfection. commissioning operation and maintenance for industrial water treatment and reclaimed water recycling; municipal sewage
engineering design investment construction and operation; wastewater treatment plant upgrading; sales of environmental
equipment and water treatment chemicals etc.杀菌灭藻剂/粘泥剥离剂
Phosphorous acid Organic high polymer
Phosphorous acid is used as a reducing agent and pesticide Used primarily as an antiscalant dispersant in open circulat-
Intermediate for the production of brightener for nylon ing cooling water systems in industrial sectors such as
plastic stabilizer synthetic fiber dibasic lead phosphite petrochemistry power fertilizer steel etc. as well asin
glyphosate etc. boilers.杀菌灭藻剂/粘泥剥离剂
Compound scale and corrosion inhibitor BTA
Applicable to the chemical treatment of circulating cooling Used to enhance the corrosion inhibition effect of water A domestic sewage wastewater treatment project of 300 tons/day in Luolong District Luoyang City
water in the reclaimed water recycling system and signifi- stabilizer formulations; BTA can be combined with multiple
cantly effective at preventing corrosion scaling and adhesion antiscalant dispersant to achieve a good corrosion inhibition
on the surface of heat-exchange equipment under highly effect particularly in a closed circulating cooling water
concentrated and high pH value conditions. system.杀菌灭藻剂/粘泥剥离剂
Compound cleaning additive
Has interfacial effects on corrosion products and dirt includ-
ing a penetrating effect an extrusion effect and a stripping
effect so that dirt and corrosion products are progressively
removed from the metal surface with the solid particles
suspended in water.QSY integrated device Alar project Xinjiang15 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT ABOUT QING SHUI YUAN TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 16
Honors and Awards Chairman’s Personal Honor
Collective Honor
Advanced Enterprise of Contribution to Economic
Development of 2021
Issuing Authority：Zhicheng Town Party Committee of the Communist
Party of China and Zhicheng Town People’s Government
Excellent Party ranch of 2021
Issuing Authority：Zhicheng Town Party Committee
of the Communist Party of China
An Expert at the Specialized Committee on Industrial Water Treatment Chemical Industry and Engineering Society of China
Issuing Authority：Specialized Committee on Industrial Water Treatment Chemical Industry and Engineering Society of China
Jiyuan Charity Federation - Qing Shui Yuan Fund
Certificate
Issuing Authority：Jiyuan Charity Federation
Vice President of Henan Environment Federation Ambassadors of Love Enthusiastic in Public Matter First Prize for Technical Invention
Issuing Authority：Jiyuan City-Industry Integration
Issuing Authority：Henan Environment Federation Demonstration Zone Women Entrepreneurs Association Issuing Authority：Henan Chemical Society17 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT DIGITAL DEVELOPMENT—INTELLIGENT SHUIYUNZONG TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 18
Topic 1 Key Applied Technologies
Digital Development—Intelligent Shuiyunzong Technology Scope of Application Technical Content Self-developed Products Highlights Name
By seizing the opportunity presented by the current scientific and technological revolution Qing Shui Yuan has developed the An online Terminal Automatic detection There are 15 types of online Our core manufacturing
Shuiyunzong Industrial Internet Platform—an intelligent water treatment service system based on the Company’s over twenty years water quality equipment of water quality water quality monitoring technology involves online
of experience in serving the water treatment industry—in order to solve various problems arising from the production and service monitoring indicators with the sensors available. Based on monitoring sensors for
process such as extensive management unscientific chemical application delayed data feedback etc. The Company has also sensor development process these sensors we have industrial water circulation
thoroughly integrated AI technology and Internet technology for industrial water treatment achieving intelligent transformation involving different developed more than 10 systems. There are currently 15
and upgrading of industrial water treatment. technical fields and types of intelligent water types of water quality monitor-
subjects such as treatment equipment/inte- ing sensors being used in
sensitive materials grated systems including various industrial water
System Architecture technology semicon- the three-parameter water circulation systems including
ductor technology quality analyzer and the ST-580 ST-500 and SP-910A service pattern featuring “background chemistry optics etc. intelligent dynamic which have reached indus-system + field hardware equipment + operation simulation experimental try-leading levels.and maintenance team in charge” is applied device
to the Shuiyunzong Industrial Internet Platform
to innovate the traditional water treatment Application Fieldsservice model so as to “replace personnelwith robots” and build an “intelligent hospi- An Backend The platform The platform offers a range Our platform offers a hightal”. The platform is utilized extensively in the Traditional production industries including algorithm service integrates 124 of functions including degree of automation precise
cooling circulating water systems of various power chemical engineering metallurgy platform conventional enterprise management integration of algorithm
manufacturing industries. It has wide-ranging Data center and central air conditioning algorithms and systems equipment training and effective conver-
usesand a high promotional value in other sectors utilizes big data to management systems sion of abstract data into
fields including data centers and central air achieve data cleans- intelligent reporting concrete information thereby
conditioning. Micro-retailers reliant on the cold supply chain ing calculation water systems operation centers reducing the complexity of
quality trend predic- data dashboards mecha- data usage and helping users
tion and equipment nism modeling platforms efficiently utilize data.health status algorithm platforms digital
prediction. twins and more.Qing Shui Yuan has independently developed the
Shuiyunzong Industrial Internet Platform a comprehen-
sive system architecture involving approximately four
years of continuous development.An open Backnd Visual platform 155 industrial microservices "Facilitate third-party compa-
community service service development are developed; microser- nies to conduct in-depth
and deployment tools vices undergo container custom development.are available on the orchestration based on
platform. technologies such as K8S
and Docker with 50
mechanism models
established.19 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT DIGITAL DEVELOPMENT—INTELLIGENT SHUIYUNZONG TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 20
Project Promotion on Shuiyunzong Platform Business Development
The Company is constructing a nationwide sales and support network. We have established sales teams in Jiyuan Zhengzhou
Xi'an Wuhan and Shenyang developing channel partners vigorously and accelerating product application and promotion.The online linear three-parameter water quality analyzer in China has The software on the Shuiyunzong platform is mature the hardware is dependable and the service staff is competent. Nearly four
achieved automatic monitoring of three water quality indicators of chloride years have passed since the first batch of "Shuiyunzong" systems were introduced to the market enabling customers to
ions hardness and alkalinity in circulating cooling water systems. The device effectively experience the value of "platform + service."
uses online titration technology and automatic cleaning technology to
achieve high reproducibility flexible testing cycles and long-term stable
operation. In 2022 the device was technically improved to reduce data fluctu-
ations and testing deviations laying a solid foundation for the large-scale
promotion and commercial application of the device. Currently the device has
been applied in dozens of fields such as power chemical and metallurgy and
is operating well.The online three-parameter water quality analyzer
Relevant Academic Achievements Business development on Shuiyunzong Industrial Internet Platform
In 2019 the Henan Chemical Industry Association conducted a scientific and technological achievement evaluation of the
platform and concluded that the platform has made significant innovations in the research and development of sensors for
water treatment agents and has reached the international advanced level in the construction and application of the water
treatment industry Internet platform. Industry-University-Research Cooperation
Integrating industry resources and collaborating closely with domestic and international universities and research institu-
The platform has been successively identified as: tions the Company takes a market-driven approach and actively conducts research on related product development
practical supporting technologies and equipment improvement. By perpetually providing the Company's production with
A pilot project for the “entrepreneurship and innovation” A pilot project for manufacturing-Internet integrated cutting-edge technology processes and equipment it ensures the Company's industry leadership.platform for manufacturing by the Ministry of Industry and development by Henan Province in 2019
In August of 2020 the Company and Zhengzhou University signed a cooperation agreement for the establishment of the
Information Technology in 2019 "Qing Shui Yuan-Zhengzhou University Institute of Ecological Environment." The institute seeks to integrate the research
theories academic resources and faculty strengths of Zhengzhou University with Qing Shui Yuan's years of practical
experience in the environmental protection field in order to jointly address industry-specific key technical issues such as
water treatment agent research and development and the intelligent development of the water treatment industry. In
2021 the "Qing Shui Yuan-Zhengzhou University Institute of Ecological Environment" will collaborate with the School of
Electrical Engineering at Zhengzhou University to advance technological advancements in industrial water system water
quality monitoring sensor technology.An industrial Internet platform by Henan Province in 2022 A big data solution provider by Henan Province in 2022
In 2022 Qing Shui Yuan reached cooperation with the Jiyuan Vocational and Technical College to implement a project
entitled “Nano Yunzong”. The objective of the project is to create a decentralized small-field management system for
circulating cooling water in non-large-scale heavy industrial production facilities. It is a simplified solution for the
Shuiyunzong device.Since June 2022 through exchanges discussions and joint development between the university and the Company the
In relation to the platform the Company has obtained 10 utility model patents 2 invention patents and 19 main outline of the equipment development theme has been completed. The next step is for the Company to integrate
software copyrights. and absorb the outcomes and the equipment will enter the testing phase.21 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT SAFETY IN PRODUCTION—QING SHUI YUAN IN PEACE TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 22
Topic 2 Case 1: On-site Safety Inspection
Safety Production—Qing Shui Yuan in Peace
The Company revised and improved its safety management system in 2022 including the "Safety Production Responsibility"
"Compilation of Safety Management System" and "Assessment Rules for Safety Management". The organization actively practic-
es the concept of green and safe development enhances the employee safety management system and implements a dual
mechanism for safety production risk control and hidden peril investigation and treatment. It enhances the propagation of
safety management reinforces safety education and ensures the implementation of safety management tasks in an orderly
manner. Throughout the year there were no safety production responsibility accidents or fire accidents.production safety fire accident rectified hidden rectification annual
Key Performance accident hazards rate of comprehensive
Indicators hidden hazards inspections
for 2022 for Safety 0 0 321 100% 8
Safety Training and Drills
Occupational Health Management The Company continuously strengthens the management of occupational safety and working environment and provides
specialized training for fire emergency and safety production measures. We strictly follows the "Safety Production Investment
and Cost Management System" to extract and use safety costs provides necessary emergency rescue equipment devices and
While assuring a sustainable and stable development Qing Shui Yuan actively fulfills its
social responsibilities and pays close attention to its employees' health and safety. The safety protection items for on-site workers to ensure the smooth production of the Company's safety and safeguard the occupa-
Company complies with laws and regulations such as the "People's Republic of China tional health of our employees.Production Safety Law" the "Management Measures for Production Safety Accident Emer-
gency Plans" the "Occupational Disease Prevention and Control Law of the People's Fire Safety
Republic of China" and the "Management Measures for Occupational Health Examina-
tions" and continuously improves its occupational health and safety management In December 2021 the Company organized an on-site training activity themed “Fire Safety in Qing Shui Yuan”. The training
system. The Company actively organizes self-inspections and self-examinations of the stressed the significance of recognizing and preventing safety hazards responding to fires in their early phases reporting fires
safety production process perpetually improves its environmental health and safety and evacuating safely through case studies from the chemical industry and fire safety warning videos. The training also included
management level and protects its employees' occupational health and the safety of its demonstrations of how to use fire extinguishers and fire hydrants in various fire scenarios thereby enhancing the fire safety
production. Currently Qing Shui Yuan has achieved ISO 45001 certification for its Occupa- Occupational Health and Safety awareness and practical abilities of all employees.tional Health and Safety Management System. Management System Certificate
occurrence of major safety accident days lost due to occupational injury work-related fatalities The Company carefully adheres to the primary responsibility for safety defines the responsibilities of each position with regard
to fire safety organizes safety training on a regular basis to detect and remove hidden hazards and maximizes the impact of
0 15 0 publicity education and warning.
Case: Fire Safety Knowledge Training
Safety Guarantee
Safety production is the foundation of enterprise growth. Qing Shui Yuan adheres to the principle of placing people and life first
firmly establishes the safety bottom line and implements the "life first" concept throughout the entire production operation and
management process. The Company is committed to establishing a firm foundation for production safety closely monitoring key
production processes and ensuring that everything is in perfect order. Qing Shui Yuan is dedicated to upholding the safety
bottom line through action. In 2022 the Company organized eight comprehensive inspections in accordance with its annual
plan conducted monthly on-site safety checks and conducted weekly inspections of main company-level hazards. As of the
30th of December all 321 identified company-level concealed dangers had been remedied for a 100% rectification rate.
In recent years Qing Shui Yuan has increased the frequency of hidden danger inspections improved emergency management
system construction effectively combined civil defense and technological defense and endeavored to detect inspect and
rectify potential risks as early as possible preventing them from developing into major issues.23 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT SAFETY IN PRODUCTION—QING SHUI YUAN IN PEACE TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 24
Safety in Production Safety Drills
Safety is the guarantee of development and a perpetual issue for enterprises. Production safety is related to the stability of the The Company gives emergency management a high priority and requires all departments and workshops to coordinate employ-
enterprise and the safety of every employee's life. In 2022 the Company organized a special safety education training and hung ees in key positions to study thoroughly and conduct drills. By participating in emergency drills we can enhance the team's
up propaganda slogans with the theme of "Comply with the Production Safety Law and Be a the First Responder" throughout the emergency response coordination and consistently improve our accident rescue capabilities.workplace. Safety slogans and information were disseminated through various channels including bulletin boards propagan- Case: On June 24 2022 the security department of the Company organized a special emergency exercise titled
da columns and electronic displays to raise awareness and promote safety. "Chloromethane Tank Leak Emergency Response." The exercise was directed on-site by the assistant general
Case 1: The workshop was organized to conduct training on the use of emergency equipment manager of production and managers and employees from various workshops participated. The drill's planning
staff carefully tracked each step and recorded each data point. The entire exercise including alert rescue repair
cleaning disposal alert and evacuation was completed in approximately 20 minutes.Immediately report the leakage The raw material loading and unloading One person became unconscious due to
upon detection worker were engaged in pretreatment. poisoning during the evacuation procedure
Case 2: Training was conducted on “15 Case 3: “Safety Production” slogans were putMeasures for Safety Production” up within the Company
The spraying system in the
chloromethane tank yard was opened for The emergency response team was outfitted with positive pressure air breathing
decontamination and cooling equipment and chemical protective garments.The fire hydrants deployed in the
surrounding areas were used for Rescued the person who is poisoned and
Case 4: Staff members were arranged to view videos and typical cases of safety accidents as well as decontamination unconscious Used the plugging tool for urgent repairs.participate in safety knowledge guessing activities in order to increase their safety and legal awareness.Samples were taken from the wastewater
The Deputy General Manager of Production summarizied the drill in the cofferdam for laboratory testing25 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT GREEN BUSINESS—SUPPORTING THE DUAL CARBON NATIONAL POLICY TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 26
Topic 3
Green Business: Supporting the Dual
Carbon National Policy Wastewater treatment plant Municipal wastewater Fully buried municipal Municipal wastewater Wastewater treatment plant at at industry cluste treatment plant wastewater treatment plant treatment plant industry cluster
Jinkai Wastewater Treatment Plant for megaton-scale Wastewater Treatment Plant at Luohe Songjiang
Environmental Water Engineering ammonia production Industrial Cluster
The Company is committed to the "Beautiful China" initiative by pursuing the "Carbon Peaking and Carbon Neutrality" Goals and
the "14th Five-Year" Plan. Over the years the Company has accumulated rich experience in environmental water engineering
through its extensive involvement in the water industry. The Company specializes in undertaking large-scale industrial and
municipal wastewater treatment plants industrial water purification and reclaimed water recycling systems complex industrial
wastewater treatment decentralized modular and integrated small and medium-sized wastewater treatment systems etc.Wastewater Treatment Plants
The Company keeps solidifying our technical foundation for wastewater treatment promoting the standardization of wastewa-
ter treatment services and enhancing the scientific nature and professionalism of wastewater treatment solutions.Yichuan County Second Wastewater Treatment Plant Project Capacity of treatment: 20000 tons/day Capacity of treatment: 30000 tons/day
Key performance Capacity of wastewater
indicators in 7 wastewater Covering 5 cities treatment:
wastewater treatment treatment plants in operation in 2 provinces about 140000 tons/day
Industrial Water Treatment
Yichuan County Second Wastewater Treatment Plant Henan Province’s first fully-buried underground wastewater
Luoyang City treatment plant
Project Name：Water treatment project for Yuguang lead recycling and utilization technological transformation project
Capacity of treatment: 30000 tons/day Won the National Quality Engineering Award in 2020
Pretreatment of raw water and production of water supply: 700m3/h
Four Preparation of desalinated water: 320m3/h
Functional
Modules
Pretreatment of wastewater and acidified wastewater: 177m3/h
Recycling system: 320m3/h27 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT GREEN BUSINESS—SUPPORTING THE DUAL CARBON NATIONAL POLICY TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 28
Pretreatment of raw water and preparation of desalinated water Final Results
The Company adopts the membrane ultra-concentration +
evaporation crystallization technology combined with partial
softening pretreatment technology to produce only low moisture
salt solid and package it for external delivery achieving true 'zero
discharge' of wastewater.Surface water purificatio Reaction air flotation tank Self-cleaning filter Ecological Environmental Protection Service
Qing Shui Yuan adheres to the development philosophy of protecting the ecological water environment leveraging its enter-
prise advantages to implement a variety of ecological environmental protection projects such as river and black and odorous
water body treatment water source protection and comprehensive watershed water environment management.Cases of water environment treatment
Heihe River Treatment EPC Project in Luohe City
Desalination with multimedia filter Desalination with ultrafiltration Desalination with reverse osmosisr To restore the gorgeous scene of clear water and green trees in Heihe River this project employs comprehensive measures such as river
dredging substrate activation submerged plant community construction large benthic animal community construction and system
optimization and adjustment. It effectively improves the water quality and aquatic ecology of the Heihe River basin as well as the living
environment of the people residing near the water and has numerous social and environmental benefits.Case of Zero-discharge Industrial Wastewater Treatment
Project Name Coal Chemical Enterprise Sodium Sulfate Wastewater Project
Effluent type Coal chemical effluent rich in salt oil and phenol
Effluent discharge amount 50 tons/day
Project target Economically feasible environmentally friendly and harmless disposal
Before treatment After treatment
Our Technological Advantages Comprehensive Environment Treatment Project at Wujiang River Source in Baofeng County
Nf or partial softening technology is applied to pretreatment to remove COD and multivalent salt This project is a comprehensive municipal governance project contracted via the EPC approach which includes river management
projects rural environmental development projects and reclaimed water treatment projects with a high level of filtration. After exten-
sive enhancements the character of the river's surrounding area is enhanced the living environment and natural ecology are
High TDS and high concentration ratio high-pressure operation direct multistage pressurization enhanced and the green landscape is revitalized. The project won the Qing Shui Yuan Best Project Award of 2020..with short membrane shell
Low chemical consumption and low operating cost
Low investment in the system
Salt separation and evaporation is beneficial for the disposal and utilization of crystalline solids.Governance
for Sustainable
Development
Adhering to the guiding principle of "being a century-old enter-
prise that benefits the society and serves the world" Qing Shui
Yuan has established a solid social responsibility management
system to promote its sustainable development on an ongoing
basis.The Concept of Sustainable Development 33
Stakeholder Communication 33
ESG Performance 36
SDGs31 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT GOVERNANCE FOR SUSTAINABLE DEVELOPMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 32
The Concept of Sustainable Development ESG Issue Identification
The Company has identified key ESG issues to disclose by analyzing the significance of each issue to stakeholders and the
The Company adheres to the fundamental values of "becoming a century-old enterprise that benefits society and serves global health" and
Company's growth. This approach enhances the relevance and responsiveness of information disclosure.the philosophy of sustainable development with the goal of being a first-class environmental protection enterprise in China and the globe. Thebusiness has established a system of sustainable development and a system of social responsibility through “diligence perseverancelearning and innovation.” The Company actively undertakes social responsibility for environmental protection and uses environmentally
friendly and pollution-free raw materials to prevent environmental damage. Based on the distinctive nature of its business the Company offers Environmental Staff Rights and Responsibility & Corporate Social
water treatment and environmental protection products and services to other businesses thereby fostering environmental protection Issues Interests Operation Governance Contribution
initiatives.Discharge Equal opportunity Supply chain Stockholder’s Technology
management and management equity innovation and ESG Issue Analysis anti-discrimination digital construction
To ensure the accuracy and completeness of information disclosure the Company actively communicates with stakeholders and Staff rights and Risk management
solicits their feedback on corporate social responsibility issues via questionnaires. The Company employs a matrix analysis Energy Product quality and
management interests and Industry progresscustomer service
method to evaluate the significance of ESG issues and determine the year's most pressing concerns. This functions as a roadmap and staff care internal control
for the Company's future emphasis on ESG construction and development.Analysis of Substantive Issues Material Occupational safety Customer privacy Business ethics National policy
management and health protection and anti-corruption response
Very Environmental Investment in Staff training and Emergency Compliance
Important Emergency treatment protection and community development treatment management
Discharge management climate change construction
National policy response
ESG governance
Discharge management Technology innovation and digitalization Business ethics and anti-corruption
Investment in community construction
Product quality and customer service
Customer privacy protection Compliance management
Environmental protection and climate change Occupational safety and healthStockholders’ equity
Supply chain management
Material management ESG governance Risk management & internal control
Industry progress
Staff rights and interests
Equal opportunity & anti-discrimination
Staff training & development
Important
Important Importance to Enterprise Very Important
Based on the outcomes of the questionnaire evaluation the following issues are of particular concern to stakeholders:
1 Emergency treatment 5 Technology innovation and digitalization 9 Investment in community construction
2 Discharge management 6 Product quality and customer service 10 Customer privacy protection
3 National policy response 7 Energy management 11 Compliance management
4 Business ethics and anti-corruption 8 Occupational safety and health 12 Environmental protection and climate
change
Importance to Stakeholders33 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT GOVERNANCE FOR SUSTAINABLE DEVELOPMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 34
Stakeholder Communication ESG Performance
Stakeholder Demand and Response
Qing Shui Yuan values communication with stakeholders and actively responds to their demands while ensuring the timely and
truthful accurate and complete disclosure of relevant company information so that stakeholders can access it in a timely Total assets Operating income
manner.Stakeholders Expectation & Demand
Communication Mechanism Responsibility Response CNY 3130513886.70 CNY 1804723664.35
and Method
Enhance profitability Total number of
Stable performance growth Shareholders’ Meeting
Investors and strengthen corporate Economic
Total tax amount R&D input patents
Asset appreciation Information Disclosureshareholders performancegovernance and enhance
Higher investment returns Service Hotline for Investors
investor relations management
CNY 105200119.88 CNY 22245941.70 107
Daily communication
Good partnership Procurement policies and Strengthen communication
tendering procedures
Suppliers Integrity and mutual benefit Establishing a communication and for mutual benefit and win-win
Better industry development collaboration platform situation
Holding supplier meetings
Quality products and services
Professional service team Provide high-quality products
Customer information and and services prioritize quality
Customers privacy protection
Group website and email
management system development
Quick response Communication on Daily operations and conduct regular customer
Honest trading After-sales service follow-up
Total investment in Power consumption Water consumption
Maintain transparent environmental protection
Media and information disclosure Accept media interviews
Maintain friendly communication
Brand value and market influence Releasing information to the public with the media and the public the public
and media and actively disclose information Environmental
Targeted interviews and exchanges 1683538.50 48568932 KWh 510536.35 m3performance CNY
Environment protection
energy conservation and pollution
Social reduction
Information disclosure Engage in charitable activities
organizations Sustainable development
Volunteer service and make an effort to contribute
Social welfare Charity activities back to society
Support community
Improve the salary and welfare system Feedback Actively respond to employee
Rationalize and systematize the demands establish a transparent
promotion mechanism Talks with leadershipStaff mechanism for promotion
Performance appraisal and a solid compensation and Enrich education and training resources benefits system
Enterprise trade union and enhance employee well-being Labor contract signing Total length of staff Number of majorSafeguard legal rights and interests Total number of staff
rate training safety accidents
Implement national macro policies
Implement national policies Information disclosure implement regulatory policies
The government
and regulator Pay taxes according to law
Off-site supervision thoroughly conduct business with 911 100% 9100 hours 0
Protect the environment On-site inspection honesty and actively engage in
technological innovation Social Working days lost due Working days lost due
Strengthening scientific research Total volunteer hours Total donations
Universities and Conducting technical
cooperation Enhancing cooperation performance to occupational injury to occupational injury
communication Organizing campus job fairs between universities
research
Providing employment Organizing corporate seminars and enterprises to realize mutually
institutes opportunities Hosting visits and tours for beneficial and win-win outcomes. 15 0 146 hours CNY 2777690
institutionsFollowing the
Party's Lead for
Steady
Development
Qing Shui Yuan follows closely the guidance of Xi Jinping’s Thought
on Socialism with Chinese Characteristics for a New Era imple-
ments the spirit of the 20th Party Congress of the CPC firmly
supports the “Two Establishes” and the “Two Upholds”
strengthens the Party construction and Party member team build-
ing and takes the path of Party-enterprise integration and devel-
opment.Building a Strong Defense Against Corruption 39
Party Building Leads our Way 3937 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT FOLLOWING THE PARTY'S LEAD FOR STEADY DEVELOPMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 38
Building a Strong Defense Against Corruption In 2022 Qing Shui Yuan organized the Party members to study Adhering to the Comprehensive Leadership of the Party is History and People’s Choice Xi Jinping’s speech at the Boao Forum for Asia (BFA) and Li Keqiang’s speech at the National Teleconference on
Stabilizing the Economy in order to strengthen political construction and stand firm in support of its ideals and principles.The report of the 20th Party Congress deeply analyzes the reasons of corruption clarifies the Party’s clear stance against corrup- Case 1: On the afternoon of February 26th under the Case 2: On the afternoon of October 28th the Party
tion emphasizes the importance of fighting corruption at any time and insists on the important deployment of a protracted war leadership of the General Party Branch of the Group General Branch of the Group organized all Party
against corruption. Under the leadership of the Party Committee Qing Shui Yuan has strengthened our "zero tolerance" policy all the Party members and activists from different members probationary Party members and active
towards corruption and bribery. The Company has fully utilized various communication platforms such as WeChat public accounts Party branches watched the patriotic educational film applicants for Party membership to study the spirit of
The Battle At Lake Changjin II so as to remember the
and official websites to disseminate the highlights of the 20th National Congress Report firmly following the footsteps of the Party the 20th Party Congress. Alongside their actual work
history learn the lessons of history and forge ahead they have discussed and exchanged implementation
to combat corruption and punish wrongdoing with a zero-tolerance attitude and insisting on investigating and punishing all with great determination. strategies and learning experiences.violations regardless of their size or difficulty. The Company persists in strictly governing itself continuously improving its aware-
ness of risk prevention and control for job integrity and effectively integrating the concept of integrity into daily work.Case: Our staff members watched the report of the 20th National Congress and resolutely
implemented the spirit of the Party
Case 3: On July 1st the General Party Branch of Qing Shui Yuan held a series of activities to celebrate
the 101st anniversary of the founding of the Communist Party of China. We held a solemn flag-raising
ceremony to relive our allegiance to the Party. Participating in the activities were the group's middle
and senior managers all staff members registered Party members and Group activists.Party Building Leads our Way
We are forging ahead on a new journey and rendering meritorious service in a new era. In 2022 under the correct leadership and
strong support of the Zhicheng Town Party Committee the General Party Branch of the Company diligently studied Xi Jinping’s
Thought on Socialism with Chinese Characteristics for a New Era and implemented the spirit of the 20th Party Congress further
strengthened ideological construction among the cadres gave full play to the role of the General Party Branch as a battlewagon in
working hard and uniting all the staff members for collaboration played a pioneering role in gathering collective strength and
promoted healthy development of the enterprise through high-quality party building.In 2023 the General Party Branch of the Group focuses on studying and implementing the spirit of the 20th Party Congress. Under
On June 23rd 2021 Qing Shui Yuan held a Party Committee meeting to conduct elections and applied to the Zhicheng Town Party the leadership of the Zhicheng Town Party Committee we faithfully carry out our duties and responsibilities firmly grasp the two
Committee for the establishment of three Party branches. On July 19th 2021 the Zhicheng Town Party Committee approved the core tasks of serving development through Party building and setting up a first-rate organizational team and focus on
election results and the application to establish Party branches. There are a total of 48 registered Party members in the Party Branch “improving quality” “enhancing reputation” and “enhancing ability”.of Qing Shui Yuan including 16 probationary members.
01 Take the standardized construction of the general Party branch as a means to continuously
Party branch of the Group Improving improve “the Three Meetings and One Lecture system” offer living services and strive to
Secretary of the General Party Branch： Quality upgrade the standardized construction of the general Party branch.Han Guangwu
Deputy Secretary: Qi Wenhai Zheng Juan Party Building 02 Focus on solving the problem of “separation” between Party building and business and General Party Branch
Party branch of Qing Yuan Outlook for Enhancing put the actual development of the Company at the core to actively explore a path for mutual of Qing Shui Yuan Party committee members： Reputation integration and promotion of Party building and business under the new situation.Han Guangwu Qi Wenhai Zheng Juan 2023
Du Xiaobing Zhang Gaofeng Li Zhijiang 03 Focusing on addressing the problem of party cadres' lack of professional skills we have
Ren Haiyang Enhancing improved the overall quality of Party members through activities such as job rotation
Party branch of Tongsheng exchange programs reserve cadre training plans mentorship in addition to traditional Ability training and apprenticeship programs.Corporate
Governance
for Qing Shui Yuan
Qing Shui Yuan has established a compliant and scientific business
system adhering to legal operations and standardized proce-
dures. We have also established a sensible and high-quality
governance structure and internal management system commu-
nicating actively with stakeholders and ensuring the quality of
information dissemination. We continually enhance our corporate
governance practices.Three-Board Governance 43
Organizational Structure 44
Returns to Shareholders 44
Investor Relations Management 45
Information Disclosure 45
Supervision Audit and Anti-Fraud 45
Compliance Management 46
SDGs41 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT CORPORATE GOVERNANCE FOR QING SHUI YUAN TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 42
Three-Board Governance Organizational Structure
The Company has established a shareholders' meeting a board of directors a supervisory board and an executive team each Board of Shareholders
responsible for their respective roles in enterprise decision-making coordinating operations and effective checks and balances.As of the end of the reporting period the actual status of the company's governance meets the requirements of laws and regulations Board of Direc tors Board of Sup ervisors
such as the Company Law Securities Law Listed Company Governance Guidelines Shenzhen Stock Exchange GEM Listing Rules and
Normative Operations and the Company continually improves its governance structure and establishes a sound internal control
Remumeratonand Appraisal
system. The Company does not have issues of industry competition or related party transactions caused by partial restructuring Committee Strategr Committee NominationCommittee Audit Committee
industry characteristics national policies or mergers and acquisitions.Boani Setreta riat Prerent
Key Performance The board of directors The supervisory board held The company held 2
Indicators of Corporate
Governance of 2022 held 7 meetings. 7 meetings. shareholders' meeting.Shareholders and Board of Shareholders
During the reporting period the Company convened and held shareholders meetings in strict accordance with the requirements
of the Rules for the General Meetings of Shareholders of Listed Companies and Rule of Procedure of Shareholders Meeting. The
Company also provided online voting to facilitate shareholders' participation in the meetings treated all shareholders equally and
ensured that all shareholders especially minority shareholders have the right to be informed and participate in major company
matters.Directors and Board of Directors
The Board of Directors of the Company consists of 9 directors including 3 independent directors accounting for 33.33% of the
total number; and 3 female directors accounting for 33.33% of the total number. The number of directors and the composition
of the board are in compliance with the relevant laws and regulations the Articles of Association and the requirements of the
Shenzhen Stock Exchange for GEM-listed companies. The directors of the Company are familiarize with the relevant laws regula-
tions and departmental rules understand the operation status of the Company actively participate in relevant trainings attend
Board of Directors meetings and general meetings of shareholders and express opinions deliberately in accordance with the Returns to Shareholders
Rules and Procedures for Meetings of the Board of Directors Independent Director System and Standard Operation.To improve the Company’s scientific sustainable and stable dividend decision-making and supervision mechanism pay back to
The Company’s Board of Directors has four committees: the Strategic Committee the Nomination Committee the Audit Commit- the investors and guide the investors in establishing a concept of rational long-term investment the Board of Directors formu-
tee and the Remuneration and Appraisal Committee. lated the Henan Qingshuiyuan Technology Co. Ltd. Shareholder Return Plan for the Next Three Years (2022-2024) in accordance with
the Notice of Further Implementing Affairs Related to Cash Dividends in Listed Companies Regulatory Guidelines No. 3 for Listed
In 2022 the Strategic Committee held 1 meeting the Nomination Committee did not hold any meeting the Remuneration and
Companies: Cash Dividends in Listed Companies (Revised in 2022) and China Securities Regulatory Commission No. 3 Announcement
Appraisal Committee held 1 meeting and the Audit Committee held 6 meetings.
(2022) issued by the China Securities Regulatory Commission as well as the Articles of Association.
Supervisors and Board of Supervisors Future profit distribution plan:On the premise of ensuring corporate profitability if the Company does not make major investment or significant expenditure
The supervisory board consists of 5 supervisors including 2 staff representatives and 1 female supervisor. The number of super- (the amount accounts for more than 10% of the Company’s most recent audited net assets and the absolute amount exceeds
visors and the structure of the board are in compliance with the requirements of the relevant laws and regulations and the CNY 5 million) profits should be distributed in cash and the annual profit distributed in cash shall not be less than 20% of the
Articles of Association. The Company elects supervisors and staff representatives in strict accordance with the Company Law attributable profit realized in the same year.Articles of Association etc. The Board of Supervisors conscientiously performs its duties and in addition to deliberating on daily
affairs it plays a good role in supervising the Company’s connected transactions and financial status as well as directors and
senior managers’ performance of duties so as to effectively safeguard the legitimate rights and interests of the Company and Dividend distribution in the past three years:
its shareholders. From 2019 to 2021 the Company's cumulative dividends for three years totaled CNY 49922056.73.Supervision and
Audit Department
Engineering
Department
Information Center
Tendering and
Procurement Center
Technology and Quality
R&D Center Department
Planning and
Finance Department
Marketing and
Business Department
HR Department Safety and Environmental
Protection Department
President Office Corporate Culture Department
Legal Affairs Department
Board Office Strategic Resources Department43 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT CORPORATE GOVERNANCE FOR QING SHUI YUAN TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 44
Investor Relations Management In order to prevent and control fraud strengthen corporate governance and internal control reduce company risks standardize business behavior ensure the achievement of company business objectives and sustainable stable and healthy development
and protect the legitimate rights and interests of the Company and shareholders Qing Shui Yuan has established the Supervi-
sion and Audit Department as a permanent institution responsible for organizing and implementing the Company's anti-fraud
The Corporate Secretary is responsible for investor relations management and daily information disclosure work receiving visits work. Its specific responsibilities include:
and inquiries from shareholders. The Company strengthens the management over information disclosure and carries out its
obligation of information disclosure in strict accordance with the relevant laws and regulations and the Information Disclosure 01 Conducting independent evaluations of the Company's anti-fraud work;
Management System. Also it has chosen the China Securities Journal Securities Times Shanghai Securities News and Securities
Daily as the newspapers for information disclosure and designated cninfo (http://www.cninfo.com.cn) as the website for 02 Assisting in conducting anti-fraud publicity activities;
information disclosure to ensure that all the shareholders of the Company have equal access to information. According to the
03 Reviewing and evaluating the establishment and implementation of the Company's anti-fraud control mechanisms;requirements of the Investor Relations Management System the Company strengthens communication with the investors to
enhance their understanding and recognition of the Company. Responsible for accepting and registering fraud reports organizing the investigation of frauds issuing opinions on treatment and reporting
04 to the management and the board of directors working under the guidance of the board of directors etc.
The Company interacted with investors
The Company held one 102 times on the interactive platform
online briefing on the annual The Company answered 97
report in 2022 calls from investors in 2022
and answered 115 questions raised by
investors achieving a 100% response rate.The audit team audited Tongsheng Environmental The audit team audited Ande Technology
Compliance Management
Information Disclosure The Company adheres to legal corporate governance and construction. With a focus on strengthening compliance manage-
ment the Company intends to provide more education on compliance management consolidate the concept of compliance
The Company discloses information faithfully accurately completely and in a timely manner in strict accordance with the Adminis- operation construct a comprehensive compliance management system increase the level of compliance management consoli-
trative Measures for the Disclosure of Information of Limited Companies and date the daily management work and conduct compliance training at various levels to guarantee lawful business operation.Shenzhen Stock Exchange Guidelines 2 for Self-regulation of
Companies Listed on Shenzhen Stock Exchange: Standardized Operation of Companies Listed on GEM. In 2022 the Company issued a
total of 103 announcements and disclosed 75 relevant documents. In 2022 the Company was not punished for illegally disclosing
information.Supervision Audit and Anti-Fraud
The Supervision and Audit Department is responsible for the management of internal audit systems financial audit management
Specialized training for controlling shareholders and actual Training on corporate governance
regulations construction project audit management regulations off-office audit management regulations internal control evalu- controllers of listed companies
ation systems anti-fraud and reporting mechanisms complaint management regulations and internal accountability systems.Qing Shui Yuan has set up the Supervision and Audit Department in order to strengthen its internal audit supervision carry out
economic activities in a healthy and orderly manner safeguard the national financial regulations and corporate rules and regula-
tions and improve management and economic benefits. The Supervision and Audit Department carries out the audit work
independently under the leadership of the Audit Committee. In 2022 the Supervision and Audit Department set up an audit team
for field auditing on Shuiyunzong Shaanxi Ande Qingshuiyuan Shanghai Syngenetic Environmental Siweida and the Group. A
total of six internal audits were conducted on the relevant subsidiaries.Training on the standardized operation of GEM-listed companies Training on investor relations management
Audit policy: “Provide services prevent and control risks and improve efficiency” and training on code of conduct for directors and supervisorsHomeland
Protection
Qing Shui Yuan has always been committed to the concept of green
development keeps making efforts to conduct low-carbon man-
agement actively promotes green office and environmental aware-
ness in response to the “Carbon Peaking and Carbon Neutrality”
Goals.Environmental Management 47
Energy and Resource Management 49
“Three Wastes” Emission Management 50
Green Office 52
Environmental Protection Training 52
SDGs47 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT HOMELAND PROTECTION TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 48
Environmental Management Emergency Response Plan for Sudden Environmental Incidents
Qing Shui Yuan strictly complies with the relevant national and local environmental laws and regulations such as the According to the Interim Measures on Environmental Emergency Response Plan Interim Measures for the Filing Management of
Environmental Protection Law of the People’s Republic of China Law of the People’s Republic of China on Prevention Emergency Response Plan for Environmental Incidents in Enterprises and Public Institutions Interim Measures for the Filing Management
and Control of Water Pollution Law of the People’s Republic of China on Prevention and Control of Environmental
Pollution by Solid Waste Pollution etc. We have established the Department of Environmental Protection as a full-time of Emergency Response Plan for Environmental Incidents in Enterprises and Public Institutions in Henan Province etc. In order to
management department to regulate the Company's environmental management work and improve control over protect the surrounding environment and the human health standardize the response work after the incident improve the
environmental protection. In 2022 Qing Shui Yuan has invested RMB 1683538.50 in environmental protection. ability to respond to the incident avoid or reduce the impact of the incident and strengthen the connection between the Compa-
ny and the government's related work Jiyuan Qingyuan Water Treatment Co. Ltd. Huling Branch has compiled Measures on
Environmental Management System Environmental Emergency Response Plan of Jiyuan Qingyuan Water Treatment Co. Ltd. Huling Branch.The Company's environmental management system has passed ISO 13001 certification which covers the research and development sales and
technical services of water treatment chemicals and water treatment dosing systems; the sales of chloromethane and phosphite within the scope The Company's emergency plan for environmental emergencies consists of comprehensive emergency plan special emergency
of qualification; and the related environmental management activities involved in the research and development production (outsourcing) and plan and emergency disposal card in which the comprehensive plan is strategic the special emergency plan is tactical and the
sales of environmental protection equipment using intelligent water treatment. emergency disposal card is operational.The Company has established 37 systems related to environmental protection and management some of which are shown below: The major environmental risks of the Company are the leakage of Chloromethane hydrochloric acid methanol liquid chlorine
formaldehyde phosphorus trichloride hydrogen chloride methyl acrylate acetic acid yellow phosphorus and ethylenedi-
Environmental protection Environmental risk Environmental protection Clean production amine as well as the hazards to the surrounding environment and people's health from the toxic and harmful substances
facilities management system management system responsibility system management system secondary/associated with the fire and explosion accidents of the above substances. For this reason the Company reinforces
Environmental protection Environmental hazard Environmental hazard Factory environmental health the connection with the surrounding environment and protection targets to prevent risks in daily life.facilities operation investigation record reporting identification and management system
and management system management system control responsibility system Various substances involved in the Company such as yellow phosphorus methanol chloromethane etc. in addition to having
Environmental protection Major environmental risk Hazardous waste control Rainwater and sewage
facilities alter management diversion a certain degree of toxicity most of them are also flammable and explosive. Therefore in the process of environmental emer-supervision system responsibility system
system management system gency rescue it is necessary to combine with the production safety accident emergency rescue work to avoid fire and explosion
accidents with special attention.Environmental Protection Tenet
Environmental emergency response plan
The environmental protection work needs to be done on the principle of three simultaneities and five incorporations.Three simultaneities the environmental protection work is arranged inspected and reviewed as the work is done.the environmental protection work is incorporated into the action of increasing production and Comprehensive environmental Specific environmental On-site disposal plan for
Five incorporations saving into the economic responsibility system into enterprise management into production
scheduling management and into the work plans of various departments. emergency response plan emergency response plan environmental emergency
Environmental Protection Goals Specific emergency response
plan for atmospheric The following major emergency response cards are prepared
environmental risks
(1) Liquid chlorine leakage emergency response card
1、Avoid all kinds of major environmental pollution accidents. Specific emergency response plan (2) Phosphorus trichloride leakage emergency response card
2、 Avoid purchasing labor protection supplies facilities and equipment that do not meet national standards or industry standards. Obtain for water environmental risks
relevant certificates and instructions when purchasing labor protection supplies facilities and equipment. Use or install adjust and operate in (3) Formaldehyde leakage emergency response card
strict accordance with the instructions. Specific emergency response plan
3、 For new renovation or expansion projects environmental protection facilities should be designed constructed and put into production and (4) Methanol leakage emergency response cardfor soil environmental risks
use at the same time as the main project.
(5) Methyl chloride leakage emergency response card
4、For new renovation or expansion projects environmental impact assessment should be conducted first. If the environmental conditions do
not meet stop the construction. Specific emergency response (6) Acetic acid leakage emergency response card
plan for solid waste risks
5、For new renovation expansion projects environmental impact assessment is needed within three months of production operation trial. An application for
acceptance to the relevant department is also needed at the same time the production would be prohibited if the acceptance is failed. (7) Hazardous waste management emergency response card
6、The indicators of "three waste" emissions are in full compliance with the relevant national standards. (8) Wastewater treatment emergency response card
7、Carry out clean production as required.49 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT HOMELAND PROTECTION TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 50
Energy and Resource Management “Three Wastes” Emission Management
The Company strictly follows the "Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution"
"Law of the People's Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste" "Law of the
Energy Management People's Republic of China on the Prevention and Control of Water Pollution" and other pollution prevention laws and regula-
tions various industrial pollution sources have been regulated and the emission of "three wastes" is in line with the national
Qing Shui Yuan has been reinforcing scientific management of energy for many years and striving to build a resource-saving enterprise emission system. Pollution source management facilities supporting rate greater than 95% the annual operating rate of
according to its own production and operation. The energy used by Qing Shui Yuan includes electricity natural gas diesel and gasoline environmental protection facilities greater than 95%.etc. The breakdown of Clearwater's electricity consumption in 2022 is shown in the following table:
Specific regulations:
Energy Type Unit 2022 data 2021 data The Company must implement "new insteaf of old" principle when building the expansion and technical reform
projects of the old products and solve the "three wastes" of the old and the new together so as to increase
Electric power KWh 48568932.00 37010402.51 01
production without increasing pollution and not to produce new sources of pollution.Note: The statistical caliber of electric power is Qing Shui Yuan Tongsheng Environmental Qingyuan Water Treatment Ande Technology and
Shuiyunzong The solid waste generated during production should be comprehensively utilized as much as possible and the
The forklifts material handing equipment used in the filling workshop have been upgraded to electric forklifts which reduce the fuel 02 rest would be emitted after haarmless treatment. For temporary storage the space must be closed up to prevent
consumption caused by traditional forklifts and effectively minimize greenhouse gas emissions. leakage.The recyclable “three-waste” resources and excess heat should be utilized as long as it is technically feasible
Water Resource Management 03 and economically reasonable. The utilization rate should be higher than 80%. Available tail gas generated during
production should be recycled or disposed and shall not be directly discharged;
Type of water use Unit 2022 data
We hire a third-party organization to regularly monitor the Company's "three wastes" emissions and the indica-
Water consumption in office m3 50432.30 04 tors of sewage and clear water at each stage of the sewage treatment station occasionally to grasp the concen-
tration of pollutant emissions and total emissions of the enterprise and fill in the environmental protection statis-
Water for production m3 460104.05 tics on time and accurately.Making progress in technological innovation and comprehensive utilization and improve management to
Note: The statistical caliber of water consumption in office is Qing Shui Yuan Tongsheng Environmental Qingyuan Water Treatment Ande Technol-
ogy and Shuiyunzong 05 completely eradicate any form of leakage so as to eliminate or reduce “three wastes” in the production
process.The statistical caliber of water for production is Qing Shui Yuan Qingyuan Water Treatment Ande Technology and Shuiyunzong
Qing Shui Yuan vigorously promotes water conservation improves the efficiency of water resources utilization actively implements Hazardous Waste Management
water conservation procedures in all aspects of production and operation reinforces water conservation propaganda work and forms
a good atmosphere for water conservation throughout the Company. Qing Shui Yuan strictly complies with the Law of the People’s Republic of China on the Prevention and Control of Solid Waste Pollution
based on which the Company has established the Hazardous Waste Management System. We start from the source of the manu-
facturing process manage the whole process and carry out emission reduction and recycling measures.Measures to reduce the amount and toxicity of hazardous waste : (1) Hazardous waste control responsibility system
(2) Hazardous waste identification management system
(1) Enhancing the management of hazardous waste; (3) Hazardous waste management plan system
(2) Strengthening the operation management of production equipment to ensure (4) Hazardous waste declaration and registration system
stable production and reduce the generation of hazardous waste; (5) Hazardous waste transfer management system
(3) Hazardous waste generated by the classification of storage timely delivery to (6) Hazardous waste classification storage and transportation
qualified institution for treatment; management system
(4) Enhancing hazardous waste storage sites impermeable leak-proof fire proof and (7) Hazardous waste inventory documentation system
anti-theft work; (8) Hazardous waste treatment personnel training system
(5) Continuously improve the process and reduce the amount of activated carbon; (9) Hazardous waste treatment personnel protection system51 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT HOMELAND PROTECTION TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 52
2022 Annual Hazardous Waste Plan Schedule EIA and emissions permit management
In 2018 the Company completed the Qingyuan Water Treatment annual capacity of 180000 tons of water treatment agent
expansion project environmental impact report" and obtained the environmental assessment approval from Jiyuan Ecological
Planned Actual Environment Bureau in September. According to the requirements of the EIA the Company strictly implements the environmen-
Harmful Physical Hazardous Source and Plan to reduce
Waste T Production Production tal protection measures of the project and treats the external pollutants such as exhaust gas waste water noise and solid waste Waste
Substance Characteri Characteri Production the anount of to meet the specified emission requirements.Name ype for in
Name -stics -stic Process Hazardous Waste
2022 (ton) 2021 (ton) At the end of 2021 the trial production of the annual production capacity of 180000 tons of water treatment agent expansion
project was completed and obtained the safety production license issued by the Henan Provincial Department of Emergency
Management. [No.: (Henan U) WH [2021]0004].Enhance According to the requirements of the emission permit of Jiyuan City Ecological Environment Bureau Qingyuan Water Treatment
Waste process control has prepared an environmental self-monitoring program at the Hu Ling branch.Spent
organic Organic
Decoloriza
and reduce the
activated Solid Toxic 141.50 93.12 -tion Green Office
phosphine phosphine use of
carbon process
/HW37 decolorizing The Company has always practiced diligence and frugality opposed extravagance and waste advocated low-carbon life and
agents eliminated corruption in official activities and transportation travel.·Paperless office:
Equipment
The Company promotes short meetings and video meetings to
inspection reduce the printing of paper documents
and Improve
Used
HW08 Mineral oil Liquid Flammable 6 0.36 maintenance equipment ·Water and electricity conservation:
engine oil
inventory maintenance The Company prohibits long-term standby operation of office
clearance equipment “daytime light” “long-time light” and
“long-time running water”.process
·Reduce elevator usage:
Enhance process The Company encourages to take the stairs rather than take
Waste the elevator below 3rd floor.Decoloriza control
Used filter organic Organic
Solid Toxic 0.50 0 -tion and reduce use of
gauze phosphine phosphine ·Garbage classification:
process decolorizing Dry batteries are recycled separately and recyclable waste
/HW37
agents such as waste cartons and cans are categorized for recycling.Enhance the
control over the Environmental Training
wastewater According to the "Environmental Protection Training and Education System" developed by the Company new employees must be
Organic Waste water treatment process trained in safety and environmental protection knowledge before they start working in the factory all the employees are trained in
Sludge HW37 Solid Toxic 8 4.48
phosphine treatment appropriate environmental protection at least once a year. In 2022 the Company organized six training programs in environmental protection. The
reduction in the training covered "Environmental Protection Law of the People's Republic of China" "Air Pollution Prevention and Control Law of the
use of phosphorus People's Republic of China" "Water Pollution Prevention and Control Law of the People's Republic of China Law on Prevention and
removal agents Control of Environmental Pollution by Solid Waste" and "Measures for the Management of Hazardous Waste Transfer". By learning
environmental protection laws and regulations employees understand and consciously comply with the relevant provisions of the
state the environmental protection behavior in daily production activities and improve the awareness of environmental protection.Phosphatic
Waste slag Improve the qua * National laws and regulations as well as the rules and regulations of higher authorities
Phosphorous organic Organic generation lity of outsourced * Knowledge of safety and environmental protection
Solid Toxic 2 0
slag phosphine phosphine in yellow Training * Knowledge about the hazardous characteristics of the materials
/HW37 chlorination phosphorus content: * Basic knowledge about the Company’s emergency response plan and accident prevention
container * Operation procedures for facilities and equipment
* Typical cases of safety and environmental protection accidentsSustainable
employment
Qing Shui Yuan strictly abides by the national laws and regulations
on employment and labor rights protection firmly opposes the use
of child labor employment and forced labor keeps optimizing the
employee structure and increase staff motivation while
safeguarding their legal rights and interests effectively enhancing
the cohesion and sense of belonging of employees.Employee Structure 55
Employee Recruitment 56
Employee Development 56
Employee Welfare 57
Employee Care 58
Employee Occupational Health & Safety 59
Employee Rights 60
Employee Democracy 60
SDGs55 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT SUSTAINABLE EMPLOYMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 56
Employee Structure Employee Recruitment
The Company continuously optimizes the structure of its employees to achieve a reasonable distribution of employees in terms Employees are the cornerstone of the Company and the most valuable asset. It is important for the Company to give full respect
of gender age and education and to effectively build a diversified workplace system. As of the end of the reporting period the to the employees and establish a comfortable environment for them. Therefore Qing Shui Yuan builds a community of corporate
employees' destiny and insists on the concept of relying on employees for development developing for employees and sharing
total number of employees in the Company's workforce was 911 and the ratio of male to female employees was 6:3. the achievements with employees. We effectively protect the rights and interests of employees through the signing of collective
Professional composition Education Level and individual labor contracts the establishment of a comprehensive human resources management system to ensure that employees have equal opportunities for job promotion and equal pay for equal work for male and female workers.The Company strictly abides by the relevant laws and regulations including the Labor Law of the People’s Republic of China and Special
Provisions on Labor Protection of Female Staff and Workers. We firmly protect the legal rights and interests of our employees provide
37，4.06% 24，2.63% maternity allowance for female employees strictly prohibit the employment and use of child labor resist all forms of forced labor provide equal employment opportunities and labor security for employees of different nationalities ethnicities races genders ages
100，10.98% religious beliefs and cultural backgrounds and avoid discrimination in employment. In 2022 0.2% of our employees is ethnic minori-
251，27.55%
30，3.29% ties.
The Company implements a salary policy that closely links labor compensation with economic efficiency labor efficiency and
personal performance. The total amount of employee remuneration is closely related to the operating efficiency of the Company.An internal communication platform has been set up to actively listen to the opinions and suggestions of employees and create
151，16.58% a good working environment for them.
76，8.34% 517，56.75% 636，69.81% Employment Development
Qing Shui Yuan is committed to building talent teams at different levels and continues to promote the standardization and
normalization of staff learning and growth. We provide internal teaching continuing education school-enterprise cooperation
Production staff Sales staff Technical staff College degree or below and other diversified ways to fully mobilize the enthusiasm of staff learning and constantly optimize the staff knowledge
structure steadily improve the level of staff skills and vigorously consolidate the construction of the talent team. Ultimately the
enterprise and the staff should grow together.Financial staff Administrative staff Other Bachelor’s degree Master’s degree and above
The Company focuses on management and development strategy scientific planning and allocation of human resources. We
will always adhere to the talent strategy improve the talent management system "select train employ and retain" people more
scientifically and enhance the comprehensive competitiveness with talent as the core. In 2022 there were 161 training sessions
100.00% with a total of 9100 hours of training.
4.64%
Case 1: In 2022 we had five training sessions for middle and senior managers and reserve cadres with a total of
33.15% 1160 hours of training. The Company expects that the training will further enhance the self-discipline and manage-
80.00% 33.81% ment awareness of the personnel who perform their duties and improve their ability.
Training Duration Number of Total Training Duration
Training Topics /Hour Trainees /Hour
60.00%
Training on organizational capacity building 16 39 624
95.36%
40.00% The Road to Sustainable Growth of “Midea” 8 24 192
66.19%66.85%
New measures for accelerating the 4 34 136
construction of a unified national market
20.00% Grasping the new development stage implementing
the new development concept building a new
development pattern and promoting high-quality 4 28 112
0.00% development
Total staff Executives Mid-level and junior staff Build a team of profitable expert managers and 6 16 96
business leaders
Male Female Total 38 141 116057 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT SUSTAINABLE EMPLOYMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 58
Case 2: The sales team is an important part of the Company and serves as a "bridge" between the Company and its
Supplementary Case: Employee canteen
customers.Training for sales staff is essential for the Company. In 2022 the Company conducted training for the sales commercial insurance Provide personal accident insurance for employees
staff 3 times with a total duration of 1422 hours.Supplementary pension
Number of T Total Training insurance rovide corporate pensions for employeesTraining Topics Training Duration
/Hour rainees Duration/Hour
Specific training on improving the Provide Spring Festival and Mid-Autumn Festival Holiday benefits
skills for the sales of industrial 6 79 474 benefits for employees
products
Provide a half-day holiday and a holiday allowance of
Training on key clients relationship Women’s Day
management and maintenance 6 79 474 RMB 150 for every female employees
Every employee receives a birthday cake card from the trade union in the month of their
Training on the sales account Birthday gifts
collection techniques 6 79 474 birthday
Total 18 237 1422 Meal allowance Provide meal allowance for employeesMarketing training
Activity room The table tennis room yoga room and golf room are open to all the staff for free
Employee Welfare Employee Care
Employee Stock The Company insists on the core value of people-oriented cares about the work life health and safety of employees devotes
The development of employee welfare programs helps to bring Ownership Plan (ESOP) to building harmonious labor relations actively helps employees in difficulties and makes employees feel the warming care of
employees closer together and strengthen their sense of belonging. the Company.In 2021 Qing Shui Yuan established the
The Company has established a perfect salary management system implementation of the first phase of the Employee Mental Health
based on the relevant national laws and regulations combined with ESOP with a total of 5002067 shares We highly concerned about the mental health of the staff Case 1: At “Tai Chi Time” employees did exercisethe Company's corporate culture external environment and other accounting for 2.01% of the total share Qing Shui Yuan established “Tai Chi Center Qing Shui Yuan together.actual conditions. We use different salary strategies for different capital of the Company at that time. Branch” in July 2021 starting to carry out a full-staff Tai Chi
departments different positions and different personnel to seek stable Through the implementation of the fitness activity. This activity aims to enrich the spare time of
labor relations. At the same time the Company strictly implements the ESOP employees became shareholders employees through Tai Chi exercise to strengthen the body
national regulations on social insurance pays housing fund handles of the Company enhancing the connec- healthy life and happy work. Wang Zhiqing Chairman andsocial insurance such as pension insurance medical insurance unem- tion between the core team and the President of the Company said to the staff “Youth isployment insurance work injury insurance maternity insurance etc. Company and stimulating the enthusi- limitedso does life. Keep up the effort.” I hope that all theand pays all insurance fees in full and on time every month. According asm and creativity of employees. On the staff members will lead a healthy life after work.”
to the national maternity and insurance policy we strictly guarantee other hand it improved the corporate
female employees to enjoy maternity insurance and all the legal rights governance structure and contributed
protect the basic life of female employees during maternity leave. Qing to the benefit sharing mechanism Since the activity was launched the Company has issued a series of documents such as the Notice on Offering Tai Chi Boxing Class Notice
Shui Yuan has set up the staff canteen sterilize the tableware on the between employees and shareholders.on the opening Tai Chi Fitness Activities class Notice on Further Standardizing Tai Chi Fitness Activities and Notice on Conducting Grouped
daily basis strictly focus on food safety and pay attention to the needs
Management over Tai Chi Fitness Activities. Comfortable and light Tai Chi clothing has been provided for the trainees. The Company's
of employees. We insist on the concept of "eat healthy eat at ease eat
senior and middle leaders set an good example by their actions driving hundreds of employees in Jiyuan area to practice Taiji every
comfortably" and provide a variety of pasta options for employee.morning and regularly carry out exchange meetings and issue honorary certificates to outstanding Taiji students.More and more people benefit from persistent Tai Chi training. Being more energetic and sturdier the employee can do their work
better. They seek joys in sports keep fit in happiness and work in good health.Employee Welfare List59 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT SUSTAINABLE EMPLOYMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 60
Case 2: A learning and exchange activity was held to mark the first anniversary of “Qing Shui Yuan - Tai Chi - Health” Tai
Chi Fitness Program. The Tai Chi trainees of Qing Shui Yuan shared their experience of the practice accumulated over the Employee Rights
past year and expressed their gratitude to the warm family of Qing Shui Yuan for providing a platform for employees to
show their talents. We cares about the physical and mental health of the employees. One hour of exercise every day allows Employees are an important part of the Company and Clearwater fully respects and protects all the legal rights and interests of
them to maintain 50 years of health and lead a happy life for a lifetime. employees. We cherish the life health and safety of employees respect labor respect knowledge respect value creation and
strictly abide by the Labor Law of the People's Republic of China Labor Contract Law of the People's Republic of China Regula-
tions on the Implementation of the Labor Contract Law of the People's Republic of China Social Insurance Law of the People's
Republic of China and other relevant laws and regulations to protect the legitimate rights and interests of employees.The Company constantly improves the management system related to employment and welfare implements the labor contract
system establishes a standardized labor relationship with employees specifies the rights and interests that employees enjoy
and the obligations they should fulfill; strictly implements the national regulations on social insurance including the five basic
insurance and housing fund.Labor contract signing rate：100% Employment of child labor and forced labor：0
Employee Assistance Employee Democracy
The Company always upholds the purpose of "caring for employees with heart and warming them with love". In 2022 we held the
"Sending Warmth" staff care activities and visited more than 20 employees in need. The Company has a well-established system of staff representative assembly standardized democratic management and
supervision mechanism which protects the right to information and participation of the staff according to the law. Over the
Case: The Company leaders visited workers in difficulty years the Company has taken the protection of employees' rights and interests as the cpre of its work strengthened the mainte-
nance function innovated the means of maintenance listened extensively to the opinions and suggestions of employees paid
attention to the ideological dynamics sent warmth to employees to solve their problems and deepened democratic manage-
ment. In 2022 the first four staff representative conference were held to collect the opinions of employees care and pay atten-
tion to the reasonable needs of employees.In addition to the staff representative conference the Company has also established a perfect factory affairs disclosure system
and set up a factory affairs disclosure working group and a supervision group. The working group is responsible for undertaking
the specific issues of factory affairs disclosure and making explanations or solutions to the employees; the supervisory group is
responsible for supervising the timing authenticity and legality of the procedures to ensure whether the feedback from the
public is resolved.The leadership actively listens to the staff’s voice implements their wishes and protects their rights and interests making
progress to achieve democratic management of the Company.Case: The staff attended the first four staff representrative conference
Employee Occupational Health & Safety
The Company has ISO45001 occupational health and safety management certification and strictly abides by occupational
health laws and regulations and continuously improves the occupational health management system. From leadership and
responsibility laws regulations and standards occupational health "three simultaneous" occupational health training and
education we carry out comprehensive health management to achieve long-term occupational health goal.The Company regularly provides physical examinations for the employee and gives various lectures on health knowledge to
effectively protect their physical and mental health. We formulate and constantly improve relevant emergency plans strengthen
safety education and disease control for all employees and improve the working environment and living conditions of employ-
ees. By doing regular inspection physical examination and education and training we can minimize the hidden health and
safety hazards in the working environment and protect the health and safety of the employees.Caring for
Society
Qing Shui Yuan has always been committed to a sustainable corporate
development path. While creating economic value we actively contribute
to society and participate in various social welfare charity projects. Over the
years Qing Shui Yuan has actively participated in poverty alleviation
disaster relief helping the elderly and disabled epidemic prevention and
control new rural construction and other public welfare projects.Assistance in Education 63
“Anti-Illegal Fundraising” 63
Public Welfare Activities 64
Charitable Donations 65
Fighting the Epidemic 66
Prospect of Public Welfare 68
SDGs63 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT CARE FOR SOCIETY TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 64
Assistance in Education Actively deployed to carry out the “anti-illegal fundraising and securities operation” publicity:
Qing Shui Yuan insists on helping the national education cause and contributing to China's education. The Company set up a special We arranged the publicity in both offline and online mode. People can learn different cases online through our official
fund of CNY 500000. On September 9the thirty-eighth Teachers' Day the “Jiyuan Charity Federation - Qing Shui Yuan Fund” was
launched and the freshmen scholarship donation ceremony was held in the lecture hall of Qing Shui Yuan. This activity issued scholar- website and official wechat account. On the other hand we take various ways to conduct publicity in person while
ships for 28 freshmen with the amount of CNY 140000. improving the internal training for employees.Wang Zhiqing chairman of the board and president of the Company pointed out that donating to schools and developing education
is a great contribution in the present time and a great benefit in a lifetime. To fulfill its social responsibility Qing Shui Yuan is duty-bound
to support it. The Company will regulate the management of the fund and improve the transparency of the use of the fund. Under the
supervision of the General Association of Charity the charity fund is well managed and well used to ensure that the funds are used for
the most critical educational purposes and giving full play to the effectiveness of the use of funds.Safety Manual for “Anti-Illegal publicity by volunteers Publicity slogans appeared on tFundraising” Publicity he screen
Public Welfare Activities
Qing Shui Yuan takes the responsibility of protecting the environment and building a beautiful China. As a listed Company we
actively participates in social public welfare while striving to achieve its own green development good corporate citizenship
Assistance in Education carry out green public welfare activities with corporate characteristics adhere to development of human and nature and build
a long-term relationship with society. In 2022 Qing Shui Yuan held public welfare activities with a total duration of 146 hours.“Anti-Illegal Fundraising”
Case 1: On the morning of March 6th 2022 Han Guangwu Secretary of the Party General Branch of the Company led
Public Welfare Activities “Anti-Illegal Fundraising” Publicity a team of Party members to carry out a voluntary tree-planting activity at the “Internet+ Voluntary Tree-PlantingBase” Sanhe Village Sili Town. The Company takes practical action to implement the concept of green development
Charitable Donations In response to the Henan Provincial Securities Regulatory Bureau's document "Notice on the Publicity Month of Preventing Illegal of the enterprise and firmly take the road of ecological and green development.Securities and Futures in 2022" the Company held a seminar on financial fundamentals from May 1 to May 31 called "Publicity
Fighting the Epidemic Month of Preventing Illegal Securities and Futures". The seminar enabled investors to fully understand the characteristics and types
of illegal securities activities and the channels to protect their rights and promote the correct investment concept. For illegal
Prospect of Public Welfare fund-raising and illegal securities business activities we carried out "prevention of illegal and non-permanent" publicity and
investor risk education.We also intruduce some cases to further enhance investors' ability to identify and prevent illegal securities
activities.Pay high attention to and actively learn “anti-il-legal fundraising and securities operation”:
The Company arranged and studied the documents
for the employees to fully understood the severity
and danger of illegal securities and futures activitie.The staff was learning relevant documents65 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT CARE FOR SOCIETY TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 66
Case 2: Blood donation—On June 17th 2022 the Company arranged more than 50 staff members to participate in a Case: On September 1 the Company encouraged employees to participate in various charitable activities to deliver
blood donation activity. love and warmth to the poor and disadvantaged groups. We donated more than CNY 80000 to the "99 Public Welfare
Day".Fighting the Epidemic
During the reporting period Qing Shui Yuan took social responsibility and responded to the work of the government gathering
Charitable Donations all parties to fight the epidemic donating medical supply and providing assistance to the medical workers on the front line of
fighting the epidemic.The development of the enterprise cannot be separated from the support of the society. The Company is keen to participate in
social welfare activities and always believes that the development of public welfare activities is not only the embodiment of Case 1:Since late April 2022 the Company quickly arranged to voluntary supply sanitizer to some government
corporate social responsibility but also an important move to build a good Company image and enhance the pride of employ- departments in Jiyuan city. Since April 27 we divided into several groups to deliver disinfection supplies to medical
ees. With the continuous development and growth of the Company we have become more and more determined to fulfill our institutions such as Jiyuan Epidemic Prevention and Control Command Jiyuan Covid Treatment Center Jiyuan Chinese
responsibilities for social welfare. Qing Shui Yuan actively takes social responsibility through charitable donations public Hospital. In addition we also donated 84 disinfectant solution to 38 different institutions such as Jiyuan No. 1 Middle
welfare activities and other forms of participation in public welfare. In 2022 the Company's charitable donations statistics are as School large and medium-sized enterpriseseconomic and technological development zones etc.follows:
SN Program Content Payee Amount (CNY)
1 Jianbei Village Jiyuan Charity Federation 50000
Jiyuan Charity Federation - Qing Shui
2 Yuan Fund Jiyuan Charity Federation 500000
Jiyuan Association for Justice and
3 Henan Fund for Justice and Courage Courage 30000
4 Charity Day of China Jiyuan Charity Federation 40000
5 Charity Day of China Zhicheng Town Charity Workstation 17690
Assistantship to College Freshmen CNY 5000 was offered in cash to
6140000
in 2022 each of 28 students
Financial Aid to the Construction of
Henan Youth Development
7 Zhicheng No.3 Middle School 2000000
Foundation
(Zhicheng Town Liuyang School)
Total 277769067 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT CARE FOR SOCIETY TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 68
Case 2: From November 16 to 18 2022 the Company arranged vehicles and personnel to load about 15 tons of
disinfectant solution in 32 batches and delivered them to towns street offices economic development zones Prospect of Public Welfare
schools and medical institutions etc.The charity work of Qing Shui Yuan is guided by the spirit of the Fifth Plenary Session of the 19th CPC Central Committee practic-
ing Xi Jinping's new development concept highlighting the theme of high-quality development doing the best we can and
seeking victory in stability. We will enhance our responsibility of poverty eradication promoting the rural revitaliztion strategy
and charity development.Embracing The Company should implement the spirit of the Fifth Plenary Session of the 19th CPC Central
the new stage Committee combined with charity grasp the implementation of the new ideas.For the culture assistance solicitude entity and platform-related charity projects the Company is
Improve
project quality committed to further improving and standardizing the implementation procedures implementing
the management system strengthening the supervision system，so as to enhance charity quality.Strengthening For the fundraising work the Company combines “offline” with “online” and combines
the
fundraising charitable fund raising with charity regulation publicity raise funds by law and implement a
mechanism quarterly fundraising system.Promoting Offering voluntary service for charity: the Company offers voluntary service for charity according
Organizational to the requirements for stability pragmatism and development and actively provides assistance
Development for poverty regions.Deepening Summarize the experience of running newspapers and stations strive for innovation and devel-
charity opment in text improvement editing and quality improvement set up advanced models and
publicity promote the spread of charity culture.We worked closely with the Shaanxi Representative Office of World Vision to implement the "Child-based
Regional Development" program in Yang County for the next four years. We are learning from the experience of
Jointly driving
the "Happy Home" project in Yang County and expanding the scope of the "Preschool Education for Children"
charity
project. We also strengthen friendly relations with charitable associations in sister cities and cooperate with the
development
Civil Affairs Bureau Poverty Alleviation Office and Veterans Affairs Bureau of the municipal government to
improve the relevant work.Quality
Management
Qing Shui Yuan picks suppliers in a high standard creates a solid
and high-quality supply chain ensures product quality and main-
tains good relationships with customers to provide excellent prod-
ucts and services.Supply Chain 71
Product Quality Control 72
Customer Orientation 73
SDGs71 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT QUALITY MANAGEMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 72
Supply Chain Supplier Evaluation System
Qing Shui Yuan has established a supplier evaluation
The Company adheres to the business philosophy of value sharing and collaborative development and follows the principles of equality Engineering Excellentsystem which is used to annually evaluate all suppliers .and mutual benefit complementary advantages honesty and credit mutual promotion and common development. We establish stable The evaluation includes but is not limited to the qualifica- Qualified
mutually beneficial and win-win relationships with excellent suppliers to create high-quality development of the supply chain. tion certificate the price of the products supplied the Materials TBD
Supplier Management System settlement method (advance capacity) the timeliness of Supplier Supplierdelivery product quality service situation etc. We also do classification Services level Unqualified
In order to ensure the quality of raw materials and quality of the our products we strictly formulates the supplier management system the classification and grading management for suppliers.standardizes the supplier access mechanism strengthens the supplier inspection process control and enhances the supplier database
management and online platform optimization. To meet the Company's production and operation needs we fully integrate the concept For supplier evaluation Qing Shui Yuan also includes the supplier social responsibility in the assessment as an important part of
of social responsibility into the supply chain management. supplier sustainability assessment. We mainly focus on the supplier's integrity and employee human rights protection. The supplier
evaluation system has achieved the goal of procurement cost reduction while monitoring suppliers to improve service quality.In terms of channels the Company collects supplier information through the network peer or supplier recommendation public inquiry
supplier initiative contact search on digital platforms etc.We selects suppliers under the supplier selection standards. During the reporting period the Company evaluated 488 suppliers including 184 excellent suppliers 292 qualified suppliers 11
Procurement Management System quality-pending suppliers and 1 unqualified supplier.For the sustainability and the standardization of the procurement process the Company has formulated a procurement management
system and established a digital procurement platform in order to clarify procurement responsibilities. We enhance the supervision and Product Quality Control
management of the procurement process of materials engineering projects and services etc. while controlling the production and
operation costs. Qing Shui Yuan always insists on providing customers with environment-friendly and resource-saving high-quality products. The
Company continuously optimizes its quality management model actively obtains safety certificates for water treatment chemical
Procurement Management System products and provides a guarantee for the safe operation of the product chain from the perspective of R&D procurement quality
Procurement inspection and after-sales.Material Code Procurement Item Procurement Plan Implementation Procurement
Procurement Procurement
Management Tracking Settlement Process Standards Classification Management Management Supervision Product Quality Control System
Standardization Procurement Daily demand Procurement Procurement All procure- Inspection and The Company has established a complete quality management system. It applied to the whole
of material codes items classifica- temporary activities not managers ment opera- Audit Depart-
included in the follow up on tions should ment needs to process of product development raw material procurement and product production. The Company and names tion: raw and demand
auxiliary engineering scope of bid suppliers' obtain legal monitor and has passed ISO9001 quality management system certification and the main water treatment agent
materials demand labor and special delivery and valid check the products have obtained NSF certification and EU REACH certification registration.In the research and
production service demand procurement progress in special procurement development process the Company strictly regulates the establishment implementation verifica-
equipment office demand are unified in accordance invoices and process tion review and confirmation of product development. In the procurement process the Company
packaging etc the digital with the promptly insists on using high-quality raw materials and strictly controls the quality of raw materials. In the
materials procurement procurement handle the production process the Company has been improving the quality and stability of its products by
purchased platform for contract or accounting improving the level of automated production of water treatment agents.products spare sourcing and agreement and procedures
parts office price compari- demand time
equipment and son Product Recall System
office supplies The Company is always concerned about the health and safety of customers and has established a product recall procedure. When
engineering customers give feedback about product problems which endanger health and safety the products will be recalled in time and
products inspected according to the problems proposed by customers. The Company will organize technical personnel to improve the
services labor process where the problem occurred and develop a prevention plan. At the same time the entire production process will be
and welfare etc checked purposefully to prevent the recurrence of similar problems.Record the Send the The sales staff fills contact the the responsible Inform client of
Avoid misde- Easy to catego- Scientific The digital Avoid supply Easy to register Enhance the contenof the information to the in an accident responsible department the cause of the
scription of rize the nature of demand procurement delays affecting in the accounts standardized claim relevant sales staff form department investigates the accident
material procurement planning enables platform normal management and department according to the cause of the
specifications items better procure- facilitates operations of procurement leader type of accident accident
models and ment negotia- information procedures
other informa- tions and allows sharing between
tion which may suppliers to the purchaser The accident form should include an accident summary and the responsible department
To negotiate
solutions and
lead to purchas- supply in an and the supplier If involve quality problems: compensation
ing errors orderly manner The laboratory checks the retained samples for workshop self-inspection plans with
customers.and retraces the production records73 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT QUALITY MANAGEMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 74
Customer Orientation Customer Satisfaction
Qing Shui Yuan takes customer demands as the guide and insists on providing comprehensive services to customers while In 2022 Qing Shui Yuan distributed a total of 130 customer satisfaction questionnaires and collected 101 of them with a
attaching great importance to customer satisfaction with the services. We are committed to bringing superior quality products comprehensive recovery rate of 77.69% and an average customer satisfaction rate of 98.70%.and services to our customers. Number of Questionnaires Distributed Collection Rate Customer Satisfaction
Customer Service System
Class-A customers 9 77.80% 100%
Qing Shui Yuan focuses on brand building and continuously improving product quality taking reputation of brand and product Class-B customers 16 81.30% 98.30%
quality as an important way to develop market and promote enterprise development. The timeliness and stability of the Compa-
ny's supply to downstream customers has earned the Company the trust of domestic and foreign customers. We have estab- Class-C customers 48 81.30% 98.20%
lished long-term and stable customer relationships with a number of internationally well-known companies which also lay the
customer foundation for the Company's future sustainable development. Class-D customers 57 98.30% 98.30%
Qing Shui Yuan has systematized and standardized the management of customer service by formulating the "Customer Service
System" to regulate the service of each post in the sales process and strictly control the pre-sale and post-sale gates of the Through customer satisfaction survey the Company analyzed various customer dissatisfaction items roll by roll and proposed
Company's products. solutions to put the purpose of improving customer service experience into practice.Case: Promoting reform for gradual optimization
The Company has a perfect customer communication mechanism through telephone e-mail and other communication
channels and methods to ensure the timeliness and effectiveness of communication and feedback. We solve customer problems
and meet customer needs in a timely manner. Comments and feedback from the satisfaction survey
Customer Complaint Mechanism Customer Opinion Company Feedback
The Company has established a customer complaint management process to achieve full tracking and timely feedback to ensure The design of the packaging appearance should be The Company immediately gave feedback to the
the customer experience enhanced and there is damage to the chemical packaging transporter while strengthening the protection of
drums during long-distance transportation. the product appearance.customer complaint flow chart
Customers are dissatisfied with the Company's image The Company will improve customer communication
Sales evaluation due to less communication with other parties and invite customers to make site visits so that they
Department Regional
Customer Fill in an customer complaint can have a comprehensive understanding of the Company.Manager Complaint handling form
The Company will change the scale of periodic stocking
Feedback Supply is not delivered on time. reasonably increase inventory and maximize
Problem transportation efficiency to ensure timely meet
finding Production Department Warehouse Technology Department customer demand.Yes Yes Yes
Customer Information Security
Feedback Handling method Approved Deputy General Manager Regional Manager in charge Qing Shui Yuan enhances the management of each information system to ensure the security of the information system. We has
established the information security system according to the Law of the People’s Republic of China on Keeping Confidentiality of
State Secrets Interim Provisions on Computer Information System Management Regulations on Confidentiality Management of
Approved Computer Information Systems for International Networking and other relevant regulations from the information management
Archiving department. The system is divided into eight levels: computer equipment security electronic data file security software security Archiving Customer Office work management information system data security password security management network security management mechanism
information system security and confidentiality mechanism and information security response mechanism. The system protects
the information security of customers and guarantees the privacy of customer information in many different ways.Innovative
Development
The Company insists on independent innovation as the first driving force of
the enterprise. We raise investment in innovation build technology platform
introduce outstanding talents stimulate research vitality and pay attention
to intellectual property protection. The Company follows the inevitable trend
of digital development runs through the path of product informatization
and creates an intelligent cloud management platform.R&D System 77
R&D Achievements 79
SDGs77 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT INNOVATIVE DEVELOPMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 78
R&D System In 2019 Qing Shui Yuan planned to build a postdoctoral innovation base
Qing Shui Yuan focuses on the construction of an innovative R&D system and has standardized the management of innovative project
research. We strive to form an excellent R&D team and create products that lead the industry. In 2020 Qing Shui Yuan filed a project applicationHenan Postdoctoral Innovation
Base
In October 2021 Qing Shui Yuan established a postdoctoral innovation base
with the approval of the Department Human Resources and Social Security
of Henan Province according to No. [2021] 92 document
R&D Project Management
System
R&D Personnel Performance Industry-University-Research
R&D System Cooperation Management Appraisal System System
Intellectual Property Implementation of scientific
Management System and technological achievements
and incentive reward measure
R&D Team
The Company pays attention to the recruitment and training of R&D team with 112 R&D staff. By cooperating with the Ecological
Environment Research Center of the Chinese Academy of Sciences the Chinese Academy of Environmental Sciences and other domestic
first-class research institutes and universities such as Dalian University of Technology and Tongji University a R&D team with rich experi-
ence and creativity has been formed. Qing Shui Yuan has established a scientific R & D management system motivated R & D staff Qing Shui Yuan and the Chinese Academy of Henan International Joint Laboratory of
through performance assessment and focused on the conversion of scientific and technological achievements to encourage innova- Sciences Ecological Environment Reasearch Center Intelligent Water Treatment System
tion and creativity. cooperate to develop
Below 30 30 ~40 Above 40 Total number of team members
Case: R&D training
2022246622112
In September 2022 Qing Shui Yuan Chemical Class was officially launched and a total of 57 employees were trained and
R&D Team studied by the Company. Classes are held on Mondays Wednesdays and Saturdays with courses including Fundamentals
2021 17 71 29 117 of Industrial Chemistry Chemical Safety Technolog Chemical Unit Operation Technology New Yugong Core Literacy Chemical
Drawing and CAD Introduction to Mao Zedong Thought and Socialist System with Chinese Characteristics etc. The purpose of
this program is to create a high quality multi-level talent team establish a sustainable talent team system and provide
solid talent support for the Company's technology development.79 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT INNOVATIVE DEVELOPMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 80
Intellectual Property Management Intelligent transformation is the future market trend. As of December 31 2022 the Company has applied for 16 software copyrights.Among them the intelligent solution of industrial water system of Water Cloud Trace which is the key development of the Company has
The Company takes the protection of intellectual property rights seriously and has formulated the relevant policies and work plans for 8 software copyrights.the management of intellectual property rights of the Company. We have formulated the "Intellectual Property Management System"
set up a special intellectual property management department and formed an effective working procedure. The Company enhances
the popularization of laws and regulations related to intellectual property protection. For the personnel of the research project team
they are required to sign contracts with clear provisions on intellectual property rights to avoid the information recipient from disclosing
the information within the scope of intellectual property protection and they need to bear the relevant responsibilities in case of breach
of contract.R&D Achievements
By increasing R&D efforts expanding the types and applications of water treatment agent products strengthening the innovation
capacity of wastewater treatment projects and focusing on the development of new green and environmentally friendly water
treatment agent products and wastewater treatment projects the Company is efficiently promoting the construction of new projects.Qing Shui Yuan will invest CNY 23627600 in research and development in 2022.Patent Technology
As of December 31 2022 the Company had applied for 20 invention patents 84 utility model patents and 3 design patents. Among
them 3 invention patents and 3 utility model patents have been issued with authorization letters and most of them have been put into
industrialized production.Invention Patents Utility Model Patents
A kind of preparation method of green chelating A pump suction device with air vortex and filter
agent methyl glycine diacetic acid sodium salt function
Water-soluble quaternary fluorescent monomers A single component membrane water treatment
fluorescent polymers and procedures for their preparation system
A kind of preparation method of green chelating agent
glutamic acid diacetic acid sodium salt An intelligent control coagulant dosing device81 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT INNOVATIVE DEVELOPMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 82
Projects under research
The Company insists on researching more environmentally friendly and efficient water treatment chemicals. We are committed to the development of the environmental protection industry chain. In 2022 the Company's ongoing research projects continue to advance
as follows:
Major R&D Project Expected Influence on the FutureProject Objective Project ProgressName Expected Goal Development of the Company
Research on intelli- This project utilizes ultrasonic anaerobic biological We have completed the construction of the experimental platform 1.Effectively solving the key problems of high concentration phenol/am- This project is of great significance to the develop-
gent coking wastewa- treatment technology and multi-stage non-homo- for low-intensity ultrasonic bio-concentration low-intensity monia coupling with strong biological inhibition and low microbial ment of new economical and efficient coking
ter treatment process geneous catalytic ozone oxidation technology to ultrasonic anaerobic co-metabolism and non-homogeneous metabolic rate and long hydraulic retention time. 2.Establishing intelli- wastewater treatment process and the realization of
development system carry out research on coking wastewater treatment catalytic oxidation. We derived the optimal conditions for the gent development system of coking wastewater treatment process independent design of coking wastewater
process system and big data intelligent system. application of low-intensity ultrasound in activated sludge completing independent design of coking wastewater process signifi- treatment process.treatment and summarized a large amount of theoretical data. cantly shortening the development time of wastewater treatment
process and widening the scope of use of existing process
Research on a This project develops a new polymerization Some of the products have completed R&D and industrialized trial By the innovative research on polymerization initiation system the The project has greatly improved the quality of the
polyacrylic acid dirt initiation system to replace the existing polymer production for marketing stage. effective content of polyacrylic acid scale inhibitor dispersant is higher polymer products and increased the market share of
dispersion agent reaction system using milder polymerization the molecular weight distribution is controlled and the product stability the products.polymerization conditions to prepare a high effective content good is better.method stability and excellent performance of polyacrylic
acid scale inhibitor dispersant.High-salt organic This project aims to develop technology and The project has been completed with good results Complete equipment fabrication and practice to verify the feasibility of Our core technology is gradually formed in the field
wastewater evapora- equipment for complex wastewater rich in salt and the technology of industrial complex wastewater treatment. This
tion technology and organic matter so as to boost the Company’s core concept has core competitiveness in the market
device R&D project technology to enhance its core competitiveness competition
Reverse osmosis scale The project develops phosphorus-free reverse The project has been basically completed and is currently being The reverse osmosis membrane operates continuously for more than 3 Increasing product sales and enhancing market
inhibitor for paper osmosis scale inhibitor products suitable for RO for promoted at several customer sites. months under normal conditions. No significant decrease in water competitivenesss
mill effluent paper mill wastewater. production rate and desalination rate of the equipment and less than
10% increase in feed water pressure.
Research on using an This project proposes to use "integrated water The team studied the internal structure of integrated water 1、Integrated water purifier has achieved good operation effect: the The improved combination process can be used for
integrated water purifier + fiber filter" as a combined process purifiers and fiber filters currently on the market analyzed their water quality of the effluent meets the standard the device sludge modular production according to the amount of
purifier + fiber filter equipment to study its application effect in the advantages and disadvantages for pretreatment of water reuse in discharge is smooth and not easy to block the equipment backwashing water and the process package can be replicated
for the pretreatment pretreatment of chemical plant water reuse system. chemical plants as well as the improvement scheme and effect is good the automation operation is stable and the fault mainte- i.e. it can help to shorten the project duration and
of reclaimed water in To find out the pretreatment process and equipment conducted pilot tests in the operation plant. The steel pilot plant nance is convenient; reduce the labor cost thus cutting down the
chemical plants with good treatment effect high pollution resistant has been pilot tested and the effect has reached the purpose of the 2、Fiber filter has achieved good operation effect: the water quality is at investment cost.load low self-water consumption low backwash- pilot test. standard the filter backwashing effect is good the automatic operation
ing water consumption stable operation and easy is stable and the fault maintenance is convenient;
maintenance. 3、Integrated water purifier and fiber filter are used for treating water in
chemical plants and they have achieved good operation effect: the
water quality of the output is up to standard the system runs stably and
according to the water quality the best working condition is debugged
and the key operation parameters data is recorded.83 2022 ENVIRONMENTAL SOCIAL AND GOVERNANCE (ESG) REPORT INNOVATIVE DEVELOPMENT TO BE A CENTURY-OLD ENTERPRISE THAT BENEFITS THE SOCIETY AND SERVES THE WORLD 84
Major R&D Project Expected Influence on the FutureProject Progress
Name Project Objective Expected Goal Development of the Company
Shuiyunzong Industri- Used for online monitoring of the industrial water 1. At the platform level the Shuiyunzong Industrial Internet Platform which Improving the existing water quality monitoring sensors and Helps to transform the Company from a traditional
al Internet Platform treatment system intelligent dosing network meets the industrial Internet construction standards has been initially intelligent terminal equipment. Strengthening the construction of water treatment service provider to a digital
improved and put into application in terms of the layer Iaas layer industrial
transmission abnormity warning and remote Paas and SaaS layer. the Shuiyunzong Industrial Internet Platform and improving the intelligent service provider so as to develop a large
control. It can monitor the operation status of the 2. At the intelligent terminal equipment level the Company has developed platform’s autonomy and intelligence. Performing intelligent customer base and bring about considerable
water treatment system and implement intelligent more than 10 types of intelligent terminal water treatment equipment for operation and maintenance and raising the efficiency of operation business prospects. Helps to establish the Compa-
management at any time and innovate the different customer needs and water quality index testing requirements. The and maintenance. Realizing intelligent management over the ny’s leading position in the field of intelligent water
Company has the core manufacturing technology of online monitoring sensors
traditional water treatment service mode too. for the industrial circulating water system and more than 10 types of water entire industrial water system promoting the change of the entire treatment. Assists the Company in grasping the
quality monitoring sensors applied in the industrial circulating water system. industrial water treatment industry model and also promoting the right speak for the formulation of intelligent water
3. It has passed the acceptance inspection by the Provincial Department of digital transformation of more industries and driving the intellectu- treatment standards and promoting the intelligent
Industry and Information Technology. In 2022 it was identified as an industrial alization of more industries. transformation of the entire industry.Internet platform of Henan Province.Mini Cloud Tracer We have designed and developed a small circulat- The current equipment has started to produce products and has been We have developed and produced a small intelligent water Small circulating water systems are widespread
Device Development ing water online monitoring equipment with online successfully pilot tested at the site. It has been applied in Jiaozuo treatment online testing equipment with low production cost and and these current circulating water systems have
monitoring of water quality indicators and Luoyang Zhengzhou and other sites with good results. easy on-site installation for online monitoring automatic dosing major problems or do not have water treatment.automatic dosing of water treatment chemicals abnormal alarm and remote transmission. The equipment is small easy to installed and other
and the data can be transmitted remotely. advantages it can be widely used in these systems
to achieve a large market demand.Three-parameter The project is mainly to improve the accuracy of the We have established equipment production standards to ensure qualified After technological improvement equipment monitoring data The three-parameter equipment detects the
device performance three-parameter equipment testing data. product production background processing of testing data and repeat abnormal fluctuation value is less than 20%. Relative deviation: important indexes in circulating water treatment
improvement testing in case of abnormal testing to avoid the probability of abnormal chloride ion