2024
Environmental Social and Governance Report
Hunan Valin Wire & Cable Co. Ltd.Hunan Valin Wire & Cable Co. Ltd.Email: https://www.nlxl.com
Address: No. 1 Jianshe South Road High-Tech Zone Xiangtan City Hunan Province
Email: zqb@hlxl.com Stock Code: 0012082024 Environmental Social and Governance Report About This Report
About This Report Sustainable Development ContextValin actively responds to sustainability trends identifies stakeholders and material topics and engages in
stakeholder communication based on the characteristics of its industry and business operations. For further
details please refer to the ESG Governance section of this report.This report constitutes the 2024 Environmental Social and Governance (ESG) Report of Hunan Valin Wire & Cable Co. Ltd. hereinafter
referred to as "Valin" or "the Company" "We" or "us" in this report. It outlines the management approaches and accomplishments in Accuracy
the aspects of environmental social and corporate governance in 2024. Valin strives to ensure the accuracy of information. Quantitative data is derived from actual internal production
and operational records free from false records misleading statements or significant omissions.Balance
Report Scope This report objectively reflects the Company’s operations avoiding exaggerated or misleading descriptions. It
Unless otherwise specified the information and data contained herein encompass Valin and its controlled comprehensively discloses both positive and negative aspects of the corporate operations ensuring fairness
subsidiaries aligning with the disclosure scope of the annual financial report. objectivity and balance in content.Reporting Period & Release Cycle Completeness
This report mainly covers the period from January 1 2024 to December 31 2024 (referred to as the "Reporting The information and data in this report cover Valin and its controlled entities consistent with the scope of the
Period"). Select historical data has been included for continuity and comparability purposes. annual report. Additionally the report fully discloses relevant information based on the actual operation.The release cycle for the ESG report is annual aligning with the fiscal year.Verifiability
Compiling Basis of the Report The cases management systems and quantitative data presented in this report are derived from the actual
operations of the Company with all materials being traceable.Self-Regulatory Guidelines No. 17 for Companies Listed on Shenzhen Stock Exchange—Sustainability Report
(For Trial Implementation) Clarity
Global Sustainability Standards Board (GSSB) Sustainability Reporting Standards (GRI Standards 2021 Edition)
United Nations "SDG Compass" Charts data references and technical terms in this report that may be difficult to understand are accompanied
by relevant sources and explained in plain language for clarity.Notes of the Data
The ESG data and information presented in this report are derived from the original records of Valin and its Quantitative Focus
subsidiaries. All monetary amounts mentioned in this report are denominated in Renminbi (RMB). In the This report strives to ensure consistent disclosure of quantitative data while continuously improving data
event of any discrepancies between the financial data in this report and the financial statements the financial reliability to demonstrate the development of Valin’s ESG governance.statements shall prevail.The report is available in both Chinese and English versions. In the event of any minor discrepancies between Report Release and Contact Information
the two the Chinese version shall prevail.The electronic version of this report is available for viewing and downloading on the Company's official website
(www.hlxl.com) the Shenzhen Stock Exchange website (www.szse.cn) and the CNINFO website (www.cninfo.Report Preparation Principles com.cn). If you have any comments or suggestions regarding this report please contact us via the following
Timeliness details. We sincerely appreciate any valuable feedback you may provide.This report is an annual document covering the period from January 1 2024 to December 31 2024. Following
the conclusion of the Company’s 2024 fiscal year a dedicated working group was organized to compile the
report. It was reviewed and approved by the Board of Directors before publication with the disclosure timing no Hunan Valin Wire & Cable Co. Ltd.earlier than the annual report. Address: No. 1 Jianshe South Road High-Tech Zone Xiangtan City Hunan Province
Phone: 0731-58590168
Email: zqb@hlxl.com
IV Vcontents Corporate Governance Chapter
Strengthening Governance: Jinfeng
01 Builds a Solid Foundation Social Chapter
Corporate Governance 23
Investor Relations Management 26 Innovation-Driven: Integrating
Information Disclosure Management 28 06 Intelligence and Green Technology for Environmental Chapter
Message from the Chairman 1 Momentum
Leading with Jinfeng: Exploring Valin 3 Jinfeng Escorting: Compliance as the Innovation Driven 49 Ecological Stewardship: Pioneering
Key Performance of Valin 6 02 Helm to Strengthen Foundations Intellectual Property 54 11 Green and Intelligent ManufacturingHonors of Valin 7
Honors 2024 9 Risk Management 31
Environmental Management 91
Enhancing Quality and Efficiency:
ESG Governance 11 Compliance Management 31 Responding to Emergency Environmental 92
Tax Management 31 07 Crafting Excellence with Precision Risks
Special Focus Equal Treatment for SMEs 32 Quality Management 59
Innovative Cables “Jinfeng” Soars with New 15 Customer Service 62 Deepening Low-Carbon Efforts:
Momentum 12 Preserving Clean Waters and Green
Party Building Leadership Valin Explores New 19 Forging a Spirit of Integrity: Setting
03 Benchmarks for Fair Competition Nurturing Talent: Empowering Growth MountainsApproaches to Governance 08 through Mutual Development Energy Utilization 97Business Ethics 35 Addressing Climate Change 99
Fair Competition 36 Employee Rights Protection 67 Pollutant Emissions 100
Employee Training and Development 71
Water Resource Management 102
Building on Safety: Digital Intelligence Employee Care 73
04 as a Strong BarrierAppendix A Green Future: Valin’s Commitment to
Information Security 39 Safeguarding with Red Lines: Building Key Performance Indicators 106 13 Global Sustainability
Index of Indicators 113 Digital Construction 40 09 Long-Term Well-being Together Green Office 105
Feedback and Suggestions 119 Privacy Security 40 Safety Production 77 Environmental Protection Activity 105
Workforce Well-being 84
Valin Uniting Strengths for Mutual
05 Success Sustainable Actions for Rural
Supplier Management Mechanism 43 10 Revitalization: Remaining Faithful to
Our Mission
Supplier ESG Governance 45
Rural Revitalization 87
Supply Chain Management 45
Social Welfare 87
VII2024 Environmental Social and Governance Report Message from the Chairman
Message from the Chairman
The year 2024 marks a pivotal year for Valin in fully implementing the spirit of the 20th National Congress of the Communist Party of China
and a crucial year for advancing the 14th Five-Year Plan. Centered on the goal of "building a RMB 4.5 billion production-sales balance People Oriented: Forging an Exceptional Team
system" we have steadfastly adhered to the "Three Firsts" principle. In alignment with the "Three-Year Action Plan for Building a Talent is Valin’s most valuable resource. We uphold the principle of "strengthening the enterprise through talent"
World-Class Specialized Sophisticated and Innovative Leading Enterprise" we have explored a dual-drive model of "industry + capital" continuously enhancing the capabilities of our workforce. By benchmarking against best practices we focus on talent
strengthened operational management and accelerated technological transformation and R&D achieving steady progress in production development professional competency building and market-oriented performance systems. We provide opportunities for
and operations. skill enhancement broadening horizons and leadership development fostering a culture of mentorship and creating a
conducive learning environment. Expanding vocational qualification recognition and improving self-assessment standards
Party Leadership Steering Sustainable Growth we have consistently achieved top rankings in Hunan Province’s cable manufacturing skills competitions for three consecutive
years producing three provincial May 1st Labor Medal winners.Valin consistently prioritizes implementing the important directives of President Xi Jinping and the decisions of the CPC Central
Committee to ensure the correct direction of corporate development. Guided by the principle of "Joint Party-Administration Cultivation for
Exceptional Performance" we embrace the core value of "Striving People-oriented". By deeply integrating Party building with production Responsible Valin: Building a Better Society
and operations we translated political advantages into productive forces advancing all aspects of our work and ensuring high-quality We actively fulfill our corporate social responsibilities contributing to society through concrete actions. We advance rural
development. Through disciplinary education we infuse "integrity culture" into every stage of production operations and project revitalization by supporting agricultural product sales in poverty-stricken areas thus contributing to the local economic
construction ensuring all employees uphold ethical standards and integrity thereby fostering a positive development environment. In development. Meanwhile we have actively carried out charity activities to support education showing our care for adolescents
2024 the Party Committee launched the "Uniting Hearts and Spirits to Follow the Party · Forging Ahead in Unity on the New Journey" in difficult situations care for individuals with disabilities and organize employee volunteer teams for flood prevention
education campaign where Party members visited the Jiuxian Lake Revolutionary Heritage Education Base in You County Zhuzhou to efforts building a "united community floodwall" with society. In 2024 we swiftly supported Hainan’s power grid restoration
study the revolutionary history of the "You County Soviet Area" and reflect on the sacrifices of revolutionary pioneers and experiencing demonstrating responsibility and bringing warmth and hope to disaster-affected areas.the inheritance and promotion of revolutionary spirit.Innovation-Driven Green Transformation Moving Forward Together: Creating Brilliance
2025 marks the conclusion of the 14th Five-Year Plan and a critical juncture for Valin’s new journey. In technological innovation
Aligning with national innovation strategies we achieved technological breakthroughs through industry-academia collaboration and we will further increase R&D investment focusing on cutting-edge technologies in specialty cables to overcome key technical
focusing on customer needs to strengthen product R&D. By keeping pace with cutting-edge technologies and increasing R&D investment challenges and advance high-precision high-performance and high-reliability products. In environmental protection we will
through project-based initiatives we have achieved remarkable progress propelling us toward high-quality development. As a long- continue to embrace green development aligning with the national "Dual Carbon" strategy to promote energy conservation
term supplier of cable products for key projects such as the "Shenzhou" spacecraft series "Long March" carrier rockets and space emission reduction and eco-friendly materials. In social responsibility we will deepen rural revitalization educational
station projects construction including astronaut umbilical cables and ultra-high-temperature flexible lightweight cables for aerospace support and community development initiatives and expand targeted assistance and public welfare projects. We will enhance
applications we once again contributed to the successful launch of the Shenzhou-19 manned spacecraft in October 2024. employee care systems providing broader development platforms and better working environments fostering mutual growth
In energy conservation emission reduction and the application of eco-friendly materials we prioritize environmental performance and for the company and its employees.energy efficiency. While improving product quality and capacity we significantly reduce material energy consumption and emissions Looking ahead Valin will maintain an open and collaborative approach driving innovation embracing green practices and
embodying green development principles and injecting strong momentum into sustainable growth. upholding responsibility. Together with all stakeholders we will strive to write a new chapter of high-quality development
contributing to the advancement of China’s cable industry and global sustainable development!
1 22024 Environmental Social and Governance Report Leading with Jinfeng: Exploring Valin
Leading with Jinfeng: Organizational Structure
To expand its international footprint and accelerate the global presence of specialized cables Valin adjusted its organizational structure
Exploring Valin during the reporting period. We established the Strategic Development and Enterprise Management Department to enhance strategic planning and management efficiency. Additionally we formed a Specialized Cable Division to meet the customized needs of specific
industries strengthening its competitive edge in the specialized cable sector. These changes provide robust support for Valin's long-
term development and steady progress.Company Overview
The predecessor of Valin was Xiangtan Cable Factory
established in 1951. In July 2003 five state-owned General Meeting of
Shareholders
enterprises including Xiangtan Iron and Steel Group initiated Strategy Committee
its establishment. Currently it is one of the leading domestic
producers of specialized cables.Nomination
Valin focuses on the R&D and production of wire and Committee Board of Supervisors
cable emphasizing independent innovation. Guided by
the philosophy of "building excellence through high-end Remuneration and Securities Department
products and integrity as a state-owned enterprise" Valin Appraisal Committee Board of Directors Board Secretary (Office of the Board of Directors)
is committed to providing high-performance high-reliability
specialized cable products for aerospace and integrated
the General Risk Control and Legal and Credit
equipment metallurgical mining rail transit power and Audit Department Audit Committee Manager Operations Department Management Office
new energy offshore engineering and petrochemical sectors. Valin is a key member of the National Wire and Cable Standardization
Committee and one of the top ten specialized cable manufacturers in China. It boasts rare national-level enterprise technology centers Strategic Development
including the Hunan Provincial Special Cable Engineering Technology Research Center Hunan Industrial Design Center Hunan Expert Chief Financial Officer Deputy General and Enterprise Management Audit Office
(CFO) Department
Workstation Hunan Key Laboratory for Special Cable Preparation and CNAS-certified laboratories. The products are widely used in Manager
major national projects such as the "Long March" series of carrier rockets "Shenzhou" series of spacecraft space station construction
State Grid Southern Power Grid State Power Investment Corporation Sichuan-Tibet Railway Guangzhou-Shenzhen Railway Beijing
Daxing International Airport construction and CNOOC offshore drilling platforms. Valin has been honored with the National May 1st
Labor Certificate National Innovation Pilot Enterprise Hunan Provincial Governor's Quality Award and National Specialized Refined
Distinctive and Innovative "Little Giant" Enterprise. In February 2023 Valin was selected for the State-owned Assets Supervision and
Administration Commission's list of world-class "Specialized Refined Distinctive and Innovative" demonstration enterprises (200
central and local state-owned enterprises were selected with only 57 local state-owned enterprises).Corporate Culture Operations and Maintenance Office
Wire and Cable Factory
We attach great importance to corporate culture development. Over the years through continuous accumulation we have shaped a International
corporate culture centered on "Responsibility Innovation and Struggle" establishing and improving a complete cultural system Business Office Pre-Research OfficeRubber Cable Factory
encompassing mission vision and core values. Credit Management
Office New Product
Plastic Cable Factory Development Office
Contract and Order
To become a world-leading enterprise Technology
Empower Employees in high-end cable integration and smart
Tracking Office
Management Office
Contribute to Society composite transmission Military Products Factory
Bidding and
Corporate Spirit Core Values Quotation Office
Culture Control Cable Factory
Various Marketing
Divisions
Mission Vision Cross-Linked Cable Factory
Responsibility People-oriented Technology-driven Simplicity in Principles
Innovation Struggle Strive for Excellence Integrity Worldwide
34
Technology Center
Sales Department
Equipment Department
Material Management
Department
Quality Management
Department
Safety and Environmental
Protection Department
Production Department
Procurement Department
HR Department
General Affairs
Department
Confidentiality Office
Finance Department2024 Environmental Social and Governance Report Key Performance of Valin
Business Layout
Valin is primarily engaged in the R&D production and sales of wire and cable. As one of China's leading specialized Key Performance of Valin
cable manufacturers Valin provides professional high-quality specialized cable products for aerospace and integrated
equipment rail transit and high-speed locomotives mining new energy engineering equipment and data communication
sectors. Focusing on three key segments—aerospace and integrated equipment specialized rubber-sheathed cables
and specialized control cables—Valin is accelerating the industrial layout to become a world-class leader in high-end
cable integration and intelligent composite transmission. Guided by the philosophy of "Quality-Driven Excellence High-
End Leadership; Trustworthy SOE Integrity Worldwide" we continue to pioneer the specialized cable niche. Recent key
projects across application fields include:
Application Field Key Project Cases Financial Environmental
Aerospace and Integrated "Long March" series of carrier rockets "Shenzhou" series of spacecraft space station construction
Equipment projects and various strategic model support Revenue: RMB 4157.95 million 19.82% YoY increase Environmental Protection Investment:
RMB 489 million 22.89% YoY increase
National energy projects Zijin Mining projects Shandong Energy Group projects China Coal Total Profit: RMB 122.70 million 21.03% YoY Photovoltaic Power Generation: 1546175.2 kWh
Development Company projects Huaibei Mining projects Guizhou Panjiang Jingmei projects
Metallurgical Mining increase
Yangquan Coal Industry projects Shanxi Lu'an projects Urban Environmental Protection export to Total Greenhouse Gas Emissions: 21783.76 tons of CO2e
Malaysia project Chongqing CISDI Thermal and Environmental Protection project Tax Payment: RMB 60.12 million
Green Electricity Purchased: 2876 MWh
State Grid projects Southern Grid projects China Power Construction projects Hunan Power Net Cash Flow: RMB 261.47 million
Power and New Energy Transmission and Transformation Engineering projects China Energy Construction projects Dongfang
Electric projects Hunan Thermal Power Construction projects Xi'an Longji Clean Energy project
Shenzhen Metro Chengdu Metro China Railway Guangzhou Bureau projects Wuhan Metro projects
Rail Transit
Chongqing Metro projects Guangzhou-Shenzhen Railway projects
China Railway Engineering Equipment Group projects China Water Resources and Hydro-power 14th
Specialized Engineering
Engineering Bureau projects China Railway Third Bureau projects Xi'an Superconducting projects
Machinery
CNOOC Offshore Engineering projects
Social Governance
134.4147 Investor Relations Activities: 30.30% YoY Total R&D Investment: RMB million increase
R&D Achievements: 17.03% items Newly Included in robotics and
Total independent R&D projects have been completed in commercial aerospace Concept
the past three years: 39
Tax Rating: Grade A
Total Welfare Expenditure: RMB 28.1482 million Dividends Since 2021 IPO: 5 distributions
total RMB 156.05 million
Average Salary Increase per Employee: 5.7% YoY
5 62024 Environmental Social and Governance Report Honors of Valin
Honors of Valin
Special Cable Preparation – Hunan Best Organizational Award in the 3rd Hunan Wire Group Excellence Award in the 3rd Hunan Wire
Provincial Key Laboratory and Cable Manufacturing Worker Vocational and Cable Manufacturing Worker Vocational
Skills Competition Skills Competition
Hunan Provincial Department of Science and
Technology Organizing Committee of the 3rd Hunan Wire and Cable Organizing Committee of the 3rd Hunan Wire and Cable
Manufacturing Worker Vocational Skills Competition Manufacturing Worker Vocational Skills Competition
and Hunan Wire and Cable Industry Association and Hunan Wire and Cable Industry Association
National Enterprise with Stable Hunan Provincial Enterprise Hunan Provincial Expert Workstation
and Qualified Product Quality in Standard Leader Hunan Provincial Association for
Supervision and Inspection Hunan Provincial Standardization Science and Technology
China High-Tech Industrialization Association
Association
National Intellectual Property China Industry-University-Research China Industry-University-Research Institute
Advantage Enterprise Collaboration Innovation Award Unit Collaboration Innovation Award
National Intellectual Property Administration China Industry-University-Research China Industry-University-Research Collaboration
Collaboration Promotion Association Promotion Association
China Industry-University- Organizational Award for the 2021 National Industry Group Excellence Award for the 2021 National
Research Collaboration Innovation Vocational Skills Competition – "Guolan Testing Industry Vocational Skills Competition – "Guolan Cup" 4th National Wire and Cable Manufacturing Testing Cup" 4th National Wire and Cable
Demonstration Enterprise Worker (Inspector) Vocational Skills Competition Manufacturing Worker (Inspector) Vocational
China Industry-University-Research China Machinery Industry Federation China Employment Skills Competition
Collaboration Promotion Association Technical Training Guidance Center and China National China Machinery Industry Federation China Committee of the Metallurgical Building Materials and Employment Technical Training Guidance Center and
Chemical Industry Trade Union China National Committee of the Metallurgical Building
Materials and Chemical Industry Trade Union
Named to the National List Hunan Manufacturing Single Champion Product
of World-Class SRCI Model (Flexible Lightweight Ultra-High Temperature
Appreciation Letter Appreciation Letter Enterprises Cable for Aerospace Applications)
State-owned Assets Supervision and Hunan Provincial Department of Industry and
Aerospace Academy First China Academy of Launch Administration Commission of the Information Technology and Hunan Provincial
Institute Material Center Vehicle Technology State Council Enterprise and Industrial Economic Association
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首页>政务公开>文件公示关于2023年度智能制造示范工厂揭榜单位和优秀场景名单的公示
发布时间：2023-10-2615:02来源：装备工业一司
根据《关于开展2023年度智能制造试点示范行动的通知》（工信厅联通装函〔2023〕212号），现将拟入选的2023年度智能序号场景单位优秀场景推荐单位
制造示范工厂揭榜单位和优秀场景名单进行公示，请社会各界监督。如有异议，请在公示期内将意见书面反馈至工业和信息化部湖南省工业和信息化厅，装备工业一司（智能制造处）。317湖南华菱线缆股份有限公司产线柔性配置湖南省发展和改革委员会
公示时间：2023年10月27日至2023年11月2日湖南省工业和信息化厅，318湖南镭目科技有限公司先进过程控制电话：010-68205630湖南省发展和改革委员会
传真：010-66013726湖南省工业和信息化厅，
319湖南申亿精密零部件股份有限公司产线柔性配置
湖南省发展和改革委员会
附件：1.2023年度智能制造示范工厂揭榜单位公示名单.pdf 精益生产管理 湖南省工业和信息化厅，
2.2023年度智能制造优秀场景公示名单.pdf 320 湖南省劲松机械有限公司生产计划优化湖南省发展和改革委员会
湖南省工业和信息化厅，
3工21业和信湖息南化部天装桥备嘉工成业一智司能科技有限公司智能协同作业
湖南省发展和改革委员会
2023年10月26日
智能协同作业扫一扫在手机打开当前页智能仓储
生产计划优化湖南省工业和信息化厅，Hunan Green Design Product – Top 10 Scientific and Technological Innovation Hunan May 1st Labor Medal – 322 三一汽车起重机械有限公司 产品数字化研发与设计 湖南省发展和改革委员会在线运行监测
st 数字基础设施集成
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326长沙中联重科环境产业有限公司产品数字化研发与设计
Department of Equipment Industry I Ministry of In湖南d省u发展s和t改r革y委员 会and Integration Development Demonstration List资源动态配置
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湖南省工业和信息化厅，
329湖南维胜科技有限公司精准配送
湖南省发展和改革委员会智能在线检测
精益生产管理湖南省工业和信息化厅，
330欧智通科技股份有限公司
生产计划优化湖南省发展和改革委员会
质量精准追溯湖南省工业和信息化厅，
331长沙惠科光电有限公司
智能仓储湖南省发展和改革委员会
广东省工业和信息化厅，
332东莞市沃德精密机械有限公司智能协同作业
广东省发展和改革委员会
7广东省工业和信息化厅，333东莞怡合达自动化股份有限公司智能仓储广东省发展和改革委员会8
192024 Environmental Social and Governance Report
Honors 2024CNAS Testing Center Nomination Award for the 1st “Women’s Top 40 Suppliers in the First (2024) Second Prize in the 6th Hunan Hunan Industrial Internet Platform (Cloud- Hunan Intelligent Manufacturing BenchmarkAchievement Award” in the Wire and China Nonferrous Metals (Equipment
CNAS “Intelligence Empowers Ten Thousand Edge-End Flexible Production Manufacturing Workshop – Special Flexible Cable Intelligent Cable Industry (2024) (Zhihua Song) and Materials) Industry Enterprises” + Mobile 5G Industrial Internet Platform) Manufacturing Workshop
Hunan Wire and Cable Association China Nonferrous Metals Magazine Co. Ltd. New Information Consumption Hunan Provincial Department of Industry and Hunan Provincial Department of Industry and
China Cable Network Competition Information Technology Information Technology
Hunan Provincial Department of Industry and
Information Technology
2023 Hunan Famous Brand Group Excellence Award (4th Hunan Outstanding Supporting Partner
Hunan Provincial Administration for Market Electric Cable Manufacturing Skills Enterprise
Regulation Competition) Hunan Machinery Industry Association
Organizing Committee of the 4th Hunan Electric
Cable Manufacturing Skills Competition st
Hunan Electric Cable Industry Association Hunan May 1 Labor Medal 2024 China's Top 10 Special Cable Letter of Appreciation
Hunan Provincial Federation of Trade Unions Brands State Grid Hunan Materials
Brand Research & Publicity Platform Company
for Bidding Projects
9 102024 Environmental Social and Governance Report ESG Governance
ESG Governance Materiality Analysis Process
Valin consistently prioritizes green low-carbon and high-quality development integrating ESG as a critical component to enhance
corporate governance improve development quality and efficiency and strengthen competitiveness. Valin continuously improves its
comprehensive responsibility capabilities and awareness to promote sustainable development. Based on national macro policy directions sustainability reporting standards and
Topics Identification and benchmarking against leading peers Valin identifies material topics that have significant
Screening impacts on both the Company and stakeholders. This process integrates annual hot
topics industry trends rating agency concerns and the Company’s development context.Stakeholder Communication
Valin engages stakeholders including shareholders investors employees suppliers
Stakeholder Engagement
Valin is committed to building strong relationships with stakeholders through regular dialogue and cooperation via multiple channels. customers government and regulators and the community through questionnaires
This ensures effective listening to stakeholder concerns understanding their expectations and providing timely responses.Valin analyzes survey results adjusts material topics with input from internal management
To enhance transparency and foster mutual communication and collaboration with stakeholders Valin regularly updates financial Survey Analysis and
and external experts confirms priority rankings and forms a materiality matrix. The
reports company announcements and other relevant information through the Shenzhen Stock Exchange the official website and other Response
report focuses on responding to key stakeholder concerns.platforms. In 2024 we identified key stakeholders including shareholders investors employees suppliers customers government and
regulatory bodies and the community.In 2024 considering macro policy directions capital market focus sustainability reporting standards and peer benchmarking Valin
Stakeholders Topics of Interest Related to ESG 2024 Engagement and Actions identified eight material ESG issues across environmental social and governance dimensions. These include R&D and innovation quality
* Performance growth * Corporate * Active operations * Enhanced governance and internal controls management supply chain management intellectual property protection addressing climate change minimizing pollutant emissions
Shareholders governance * Information disclosure * Increased voluntary disclosures industry collaboration corporate governance information disclosure management investor relations management environmental
* Sustainable profitability * Protected shareholder rights with consistent cash dividends
management and business ethics.* Employee rights * Occupational health * Improved employee rights protection systems * Strengthened occupational
Employees * Career advancement * Compensation health management * Career advancement mechanisms Materiality Matrix of Valin
and benefits * Democratic management * Introduced corporate annuity * Enhanced employee feedback mechanisms
* Supply chain management * Mutual * Supply chain informatization platform * Adherence to business ethics and
Suppliers C orporate E nvironmental
benefit * Long-term collaboration alliance building * Responsibility cooperation and communication Governance Topics Topics
24
* High-quality products * Customer * Strengthened quality awareness 01 Corporate Governance 14 Environmental Management 21
13
Customers rights protection * Customer * Commitment to integrity and customer-centric practices 02 Investor Relations 15 Energy Utilization 23 22
Management 16
satisfaction * Responsive customer feedback mechanisms 16 Addressing Climate Change
03 Information Disclosure 17 P ollutant Emissions 03
* Legal and compliant operations * Improved compliance systems * Enhanced performance development Management 17 01
Government and Regulators 18 W ater Resource Management
* Tax contributions * Market stability * Leadership in specialized fields 04 Risk Management
19 Green Office 14
05 Compliance Management 02
* Cultural exchange * Strengthened community interaction 20 Environmental Protection 08
Community 06 Tax Management
* Volunteer activities * Launched public welfare projects Activity 09 10
07 Equal Treatment for SMEs 25
12
08 Business Ethics Social Topics 04 15
09 Fair Competition 21 R&D and Innovation 05 11
10 Information Security 22 Intellectual Property Protection 18
Materiality Analysis 11 Digital Construction 23 Industrial Cooperation 3112 Privacy Security 24 Quality Management 06 29
3027
13 Supply Chain Management 25 C ustomer Service 28
Valin fully recognizes the importance of environmental social governance and economic impacts on the Company and its stakeholders. 2626 Employee Care 07
We actively identify material issues relevant to the Company with the Board of Directors reviewing the annual ESG report. Based on 27 Employee Rights Protection 19 20
the Global Sustainability Standards Board’s Sustainability Reporting Standards (GRI Standards) the Shenzhen Stock Exchange’s Self- 28 Employee Training and
Development
Regulatory Guidelines for Listed Companies No. 17 – Sustainability Report (Trial) and other universal standards combined with annual 29 W orkforce Well-being
hot topics national strategies industry trends and the actual development we conduct materiality surveys to gather stakeholder 30 Rural Revitalization
feedback. 31 Social Welfare High Importance to the Company Very High
1112
Very High Importance to Stakeholders2024 Environmental Social and Governance Report Support of the UN Sustainable Development Goals (SDGs)
Support of the UN Sustainable
Development Goals (SDGs)
2024 Actions Chapter Reference SDGs
2024 Actions Chapter Reference SDGs Prohibited all forms of discrimination in recruitment and employment Standardized Employment
upheld gender equality and provided diverse employee communication Workplace Equality and Diversity
Actively fulfilled social responsibilities cared for disadvantaged youth platforms and basic employee benefits. Democratic Management
established special scholarships donated learning essentials and provided Social Welfare
personalized psychological and growth counseling.Conducted a comprehensive and detailed assessment of atmospheric
environmental risk prevention and control based on scientific indicators Pollutant Emissions
Advanced rural revitalization initiated targeted consumption assistance taking into account its actual conditions and industry characteristics.consolidated poverty alleviation achievements and boosted village collective Rural Revitalization
industries to increase villagers' income.Established 7 cooling water recirculation ponds to facilitate the reuse of
cooling water. Over 90% of production water is recycled through closed-loop Water Resource Management
systems ensuring zero liquid discharge across all operations
Optimized employee welfare and established robust occupational health and Safety Production
safety management systems. Workforce Well-being
Implemented energy-saving and emission-reduction projects achieving
carbon neutrality carbon footprint and greenhouse gas inventory Addressing Climate Change
Prioritized talent development implemented comprehensive talent certifications.Employee Training and
development systems and organized employee training and learning
Development
programs.Standardized solid waste control to reduce both generation and Waste Disposal
environmental impact complied with hazardous waste disposal regulations Environmental Protection
and organized annual tree - planting initiatives to offset ecological footprints. Activity
Upheld gender equality in recruitment and employment ensured equal pay
Workplace Equality and Diversity
for equal work and prohibited workplace gender discrimination.Corporate Governance
Established efficient governance structures and rigorous internal control Risk Management
systems integrating integrity into daily management. Compliance Management
Established clear employee responsibilities for water resource management Wastewater Management Tax Management
and implemented a comprehensive wastewater management system. Water Resource Management
Investor Relations Management
Information Disclosure
Environmental Management Protected the legal rights of investors and creditors strengthened supplier Management
Ensured compliance with environmental protection requirements improved
Energy Management management safeguarded the rights of SMEs and optimized the business Supplier Management
energy management implemented energy-saving projects and conducted
Environmental Protection environment. Mechanism
environmental initiatives.Activity Supplier ESG Governance
Supply Chain Management
Established strict performance and compensation management systems
Employee Training and
providing diverse career development opportunities and clear promotion
Development
pathways.Revised the "R&D Management System" optimized R&D processes clarified
departmental responsibilities strengthened R&D team management and Innovation Driven
standardized R&D achievement management.
13 142024 Environmental Social and Governance Report
Innovative Cables Jinfeng Soars with
New Momentum Special
Focus
In 2024 under the guidance of Xi Jinping’s Thought on Socialism with Chinese Characteristics for a New Era Valin
thoroughly implemented the spirit of the 20th National Congress of the Communist Party of China and the Central Industrial Leadership
Economic Work Conference. Adhering to the principle of seeking progress while maintaining stability we anchored the Focusing on technological innovation Valin drives technological progress within the enterprise strategically positioning itself to make
efforts toward the “Three Highs and Four New Initiatives” blueprint. significant breakthroughs in niche markets through industry leadership. Valin prioritizes enhancing the competitiveness of the product
range. In alignment with the call for high-quality development Valin places a strong emphasis on product variety R&D aiming to solidify
Valin seized opportunities in commercial aerospace robotics and polymer materials over the next 3-5 years
the position as an industry leader across three key segments: aerospace and integrated equipment specialty rubber-sheathed cables
enhancing innovation capabilities and new product supply. We integrated the three-year action plan to create a world-
and specialty control cables. This approach propels the development of products in these markets toward systematization and high-
class “specialized and innovative” demonstration enterprise with the “2+2+4” strategy. Through the dual-driven model
end advancement. Valin has successfully developed products such as large-cross-section aluminum conductors for aviation specialty
of “industry + capital” Valin focused on core industrial chains relying on four support systems including intelligent
cables for new-energy vehicles and watertight cables. Notably Valin has achieved import substitution for products like large-cross-
manufacturing big data applications R&D innovation and advanced customer service. This approach aimed to upgrade
section aviation aluminum conductors lightweight aerospace conductors high-temperature conductors and cables for ROV robots.product varieties and enhance competitiveness in core industrial chains.The soft lightweight and ultra-high-temperature aerospace cables have been recognized as “Single Champion Products in Hunan’sValin prioritized technological innovation as the core driver of progress focusing on strategic positioning and industrial Manufacturing Industry”.leadership to break through niche markets and elevate product competitiveness. In 2025 we will continue to benchmark
against world-class standards driving high-quality implementation of the “Four Focuses” initiative. Management Optimization
Valin accelerates the construction of a digital and intelligent enterprise to comprehensively improve operational control efficiency.Actively establishing intelligent workshops relying on the industrial Internet and 5G technology. Valin realizes full interconnection of
Focus on Self-Reliance and Focus on Niche Markets
Technological Innovation and Industry Leadership production equipment and energy management and builds a data and monitoring center. By optimizing internal logistics and achieving
1 2 full AGV material delivery we create a national - level industry - leading intelligent specialty cable workshop.
We strengthen human resources development and performance reform to enhance internal development vitality and motivation. We
accelerate the construction of a trinity organizational system adjust the organizational structure streamline departmental structures
Focus on Management Enhancement Focus on Strategic Positioning
and Vitality Stimulation 4 3 and Resource Integration clarify the responsibilities of each department and position and determine the talent cultivation path providing employees with clearer job responsibilities and promotion prospects. In terms of talent cultivation using cadre development training camps lean production
training courses and vocational skill competitions as the means we form a multi - level multi - dimensional and multi - channel
training and retraining system. We will improve the cultivation system for highly skilled talents and train more knowledgeable skilled
and innovative craftsmen.Technological Leadership
Valin has consistently dedicated to the R&D and innovation of high - quality specialty cable products. Leveraging
platform construction and scientific and technological projects Valin has rapidly enhanced its capabilities in scientific
and technological innovation and development. Seizing the valuable opportunity of developing new - quality productive
forces Valin took the lead basing its efforts on intelligent manufacturing and technological innovation. Through
the "open tender for project leadership" mechanism it overcame "choke - point" technologies. Valin independently
completed the localization of the flexible umbilical cable for ROV robots the "lifeline" for deep - water oil and gas
field development successfully ending the domestic reliance on imported umbilical cables for underwater operation
systems. Subsequently Valin carried out intelligent upgrades on its stereoscopic warehouse control cable factory
and specialty cable factory and rapidly deployed systems such as MES EAM IOT and WMW. From aspects of
"people machines materials methods environment and measurement" Valin comprehensively strengthened the
digital transformation of equipment quality and production achieving information connectivity between upper -
level management and bottom - level manufacturing as well as standardization and unification of production and
manufacturing data.
15 162024 Environmental Social and Governance Report
Special
Focus
Collaborative Innovation
Valin combines its three - year action plan for creating a world - class “Specialized Sophisticated Characteristic and Case The “High - flexibility and High - wear - resistance Cables for Mines” were selectedNovel” demonstration enterprise with the “2 + 2+4” strategy strengthening win - win cooperation in professional fields Study as Single Champions in Hunan’s Manufacturing Industry
and accelerating regional layout expansion. Valin conducts diversified and multi - modal cooperation with Central
South University the Shenzhen Research Institute of Shanghai Jiao Tong University Harbin University of Science
and Technology Southwest Jiaotong University the Shanghai Institute of Applied Physics of the Chinese Academy The towing cables widely used in mining equipment are susceptible to multiple
of Sciences Xiangtan University and the China Industry - University - Research Institute Collaboration Association stresses and wear and conventional products struggle to meet the requirements.to formulate product plans supporting the refinement strengthening and expansion of emerging product varieties. Developing new low - temperature - resistant and wear - resistant towing cables
In accordance with the product plan implementation scheme and combined with the strategic industrial layout has become a research focus to cope with the harsh mining conditions.Valin improves and upgrades traditional products reduces costs consolidates and extends advantageous products
Valin focused on optimizing the structural design of mining cables. By embedding
cultivates and expands emerging products and makes forward - looking arrangements for future products.high - strength fiber filaments in the cable sheath it improved the product's
tensile and torsional resistance and flexibility. At the same time Valin selected
low - temperature - resistant and wear - resistant rubber and plastic materials as
Case The 1350 Aluminum Alloy was Awarded the China Nonferrous the cable sheath and developed anti - flexure and wear - resistant towing cables
Study Metals Industry Science and Technology Prize for FMG mining equipment. The materials used in the cables are all halogen
- free and environmentally friendly so the cables' combustion characteristics
meet environmental protection requirements. The cables have high mechanical
In recent years domestic large aircraft have started to use aluminum properties being wear - resistant twist - resistant low - temperature - resistant
- conductor XETFE insulated wires to replace copper - conductor UV - resistant and acid - and alkali - resistant. They have high insulation resistance
XETFE insulated wires for weight reduction. However currently Laying the Highly Flexible and long service life and strong overload capacity. The cable structure is designed
aluminum - conductor XETFE insulated wires are generally imported. Wear-Resistant Cable for Minesusing computer and real - world simulations. With a 3 + 3 symmetrical structures
Valin signed a cooperation agreement with Central South University the cables have better bending performance and higher roundness.and Southwest Aluminum Industry to jointly develop large - cross - During the reporting period the products of this project were selected as Single
section aluminum conductors for aviation. The innovative formula Champions in Hunan's Manufacturing Industry. They can be used for power
of the aluminum - conductor XETFE insulated wire meets the connection of open - pit mining loaders. The cables have low - halogen low - smoke
requirements for drawing extremely fine aluminum alloy conductors and flame - retardant properties which can improve the safety and reliability of
with single - wire conductors able to be drawn to 0.36mm and the cable operation. After the project's completion many technicians from the rubber
performance indicators meet the ASTM B230 standard. The insulating cable factory received a great deal of training including the study of material
material is entirely domestic meeting the requirements for precise formulas extrusion processes product structure design and material performance
control of insulation thickness and concentricity. Moreover the wire research.is fully domesticated solving the "choke - point" problem of this type
of product.The products of this project applied in the aviation field can drive
the progress of the cable industry in the application of aluminum
alloy conductors improve the industry's understanding of aluminum
alloy conductors provide a good solution for aviation cable weight
China Nonferrous Metals Industry
reduction and offer inspiration for cable selection in future Science and Technology Prize
commercial aerospace.
17 182024 Environmental Social and Governance Report
Party Building Leadership Valin Explores
New Approaches to Governance Special
Focus
Valin deeply implements Party organization development guided by the spirit of the 19th and 20th National Congresses
of the Communist Party of China (CPC). Adhering to the core philosophy "Joint Party-Administration Cultivation
for Exceptional Performance" we integrate Party building with production and operations to ensure high-quality
development.Through regular "Two Studies One Action" education measures such as monthly theme Party Day activities and
thematic education on Party discipline learning Valin gives full play to the leading core role of the Party organization Internally Valin has organized three phases of Party affairs training increased the inspection intensity of basic Party affairs work
and the vanguard and exemplary role of Party members leading and promoting the smooth progress of all work. adhered to monthly inspections and promptly reported the inspection results. Additionally Valin earnestly organizes the study and
Aiming at being the leader in Party building work in the industry Valin focuses on promoting the creation of the Party implementation of the Party's spirit the spirit of the Second Plenary Session of the Central Commission for Discipline Inspection
building brand of "Party Building Leadership Golden Phoenix Greeting the Rising Sun" to further consolidate the conducts in-depth study of the new Party Constitution strictly implements the eight-point decision of the Central Committee and the
achievements of Party building work. nine-point decision of the Hunan Provincial Party Committee etc. and comprehensively urges the improvement of Party members'
awareness of discipline.Party Building Drives Development Case "Uniting Hearts and Spirits to Follow the Party · Forging Ahead in Unity on
To focus on organizational standardization creativity stimulation Study the New Journey" Education Campaign
and organizational capacity enhancement Valin integrates the
work of the Party labor unions and youth leagues with productionand operations carrying out various activities such as labor On July 18 2024 the Party committee of Valin carried out the “Uniting Hearts and Spiritscompetitions entrepreneur events and July 1st revolutionary to Follow the Party · Forging Ahead in Unity on the New Journey” education campaign at
heritage education activities. These initiatives inspire Party the Jiuxianhu Revolutionary Heritage Education Base in You County Zhuzhou.members to take the lead creating a work atmosphere of "striving
for excellence" and "comparing learning catching up helping and Party members visited revolutionary heritage education bases such as the Revolutionary
surpassing". Guided by the philosophy of "youth hearts towards History Exhibition Hall of the Xiang-Gan Soviet Area the You County Red Memorial Hall
the Party making contributions in the new era" young league and the Jiubugang Red Dam deepening their understanding of the “You County Soviet”
members actively participate in various events like basketball revolutionary legacy. They honored the self-sacrificing struggles of early proletarian
games fun sports activities and safety production speech revolutionaries and felt the living inheritance of revolutionary spirit. Party Members' Oath
contests fully unleashing their potential and vitality. Through
these measures Valin endeavors to build a favorable situation Party Building Honors
where the Party labor unions and youth leagues promote and
develop together. In the process of Valin's continuous
development the Party-government work
Under the leadership and guidance of the Party committee the has also continuously improved itself
vanguard and exemplary role of Party members have been fully July 1st Revolutionary Heritage and achieved remarkable achievements.exerted and their mental outlook has been rejuvenated. Driven Education Activities During the reporting period Valin was
by this Valin’s production records and operating indicators have Pioneer Struggle awarded the honor of "Pioneer Struggle
continued to rise and the work of the labor union and youth league has also shown new vitality helping Valin smoothly Party BranchParty Branch".achieve a good start in the first quarter reach the halfway mark in both aspects and achieve the annual goals.Strengthening Party Building Learning
Valin regards thematic education as an important front line of Party building work focusing on strengthening the
theoretical learning of employees to improve their political literacy. Valin especially invites experts and professors
from the Municipal Party School to give Party lectures and solidly carries out activities such as "Party committee
members sending Party lectures" and "Party branch secretaries giving Party lectures". Meanwhile Valin also holds a
series of training sessions on lean production and cadre growth training camps as well as reading clubs effectively
broadening the horizons of employees and continuously enhancing the capabilities and qualities of Party members
and cadres.
19 202024 Environmental Social and Governance Report
apte
r
Corp h
Strengthening orate Governan
ce C
Governance:
01 Jinfeng Builds Corporate Governance
a Solid Foundation Investor Relations Management
Information Disclosure Management
Valin has established a sound and efficient governance structure to ensure long-term stable operations. Each department fulfills its
responsibilities maintains checks and balances and collaborates efficiently providing a solid foundation for the healthy stable and
sustainable development.
21 222024 Environmental Social and Governance Report Strengthening Governance: Jinfeng Builds a Solid Foundation
Corporate Governance Monthly Reporting Mechanism of the Board of Directors Information Reporting Mechanism External Information Disclosure System
In recent years as China's capital market reforms continue to deepen Valin has proactively adapted to strengthened regulations and
new requirements firmly adhering to the principle and policy of compliant operations for listed companies and actively exploring the External directors are invited to The Securities Department has initiated innovative The company adheres to the principles of timeliness participate in key meetings to practices by establishing communication groups fairness rigor and standardization in information
deep integration of new development concepts in the capital market with all aspects of the corporate operations and management. discuss critical issues such as with departments such as finance marketing disclosure striving to maintain a positive image in the
corporate development ensuring sales and quality control to facilitate information capital market.Furthermore Valin has strengthened the standardized functioning of the General Meeting of Shareholders Board of Directors Board of smooth communication at the reporting. Guided by investor needs Valin voluntarily discloses
Supervisors and Management continuously improved internal control mechanisms empowering the high-quality development through senior level and supporting major A detailed information reporting task allocation information in a timely fair rigorous and standardized decision-making. table is prepared in advance specifying the timing manner. In the event of significant developments that may
a compliant and efficient governance structure. The Board Secretary regularly content and metrics for each reporting item. impact investors’ decisions Valin not only discloses the
reports to both internal and A performance evaluation and reward and penalty required information but also provides comprehensive
external directors. system has been established to assess the quality accurate and timely voluntary disclosures highlighting
and timeliness of information reporting ensuring potential impacts and risks. This ensures the continuity and
Governance Structure efficient and accurate information dissemination. consistency of information disclosure enabling investors to Compliance training is also strengthened to make informed value judgments and investment decisions.enhance the company’s brand image.Valin's Board of Directors Operation Mechanism
Valin has implemented a robust corporate governance structure and internal control system adhering strictly to the Company Law and
the Articles of Association. This framework enables the General Meeting of Shareholders Board of Directors Board of Supervisors
and specialized committees to fulfill their roles effectively maintain checks and balances and operate in harmony. Clearly defined Board Diversity
responsibilities authorities and codes of conduct drive continuous improvement in governance standards.Valin upholds diversity and professionalism in Board composition. The Nomination Committee evaluates factors such as gender
professional background industry experience and knowledge structure when selecting candidates. The Board members bring diverse
General Meeting of Shareholders expertise in corporate governance enterprise management industry technology and financial management. This diversity enables
informed and strategic decision-making in complex and dynamic market environments enhancing the Board's effectiveness and
The General Meeting of Shareholders serves as Valin's highest authority. Adhering to the Articles of Association and the Rules of ensuring smooth and efficient operations.Procedure Valin convenes and conducts meetings lawfully and compliantly. Valin diligently implements resolutions upholds equal
treatment of all shareholders and protects their rights to information participation inquiry and voting.Board Committees Members
Mr. Zhigang Zhang (Convener) Mr. Jianbing Liu Mr. Jun Zhang
Strategy Committee
Mr. Shuo Xiong Mr. Dalong Luan
Key Performance
Audit Committee Ms. Pingbo Yang (Convener) Mr. Ximao Liu Mr. Daming You
During the reporting period Valin held 5 General Meetings of Shareholders reviewing and approving a total of 17 proposals.Nomination Committee Mr. Daming You (Convener) Mr. Zhigang Zhang Mr. Dalong Luan
Remuneration and Appraisal Committee Mr. Dalong Luan (Convener) Mr. Shengbin Zheng Ms. Pingbo Yang
Board of Directors
The Board of Directors consists of nine members including three independent directors (one of whom is female) with expertise in
management technology and finance. It operates through four specialized committees: the Strategy Committee Audit Committee
Nomination Committee and Remuneration and Appraisal Committee. These committees oversee strategy finance risk management Key Performance
personnel performance evaluation and related-party transactions ensuring informed and scientific decision-making. Valin has
implemented an independent director system where independent directors provide objective opinions on major company matters 11 Board of Directors meetings with 47 proposals reviewed and approved.in compliance with the Company Law Administrative Measures for Independent Directors of Listed Companies and Regulations on 2 Strategy Committee meetings with 2 proposals reviewed and approved.Strengthening the Protection of Shareholders' Rights and Interests. They also offer recommendations to enhance corporate operations
and protect the rights of shareholders and the Company's overall interests. 6 Audit Committee meetings with 21 proposals reviewed and approved.Additionally Valin has established a unique monthly reporting system information submission mechanism and external disclosure 2 Nomination Committee meetings with 3 proposals reviewed and approved.process for the Board of Directors. These measures enhance risk prevention streamline information flow improve decision-making 2 Remuneration and Appraisal Committee meetings with 2 proposals reviewed and approved.efficiency.
23 242024 Environmental Social and Governance Report Strengthening Governance: Jinfeng Builds a Solid Foundation
Independent Director: Independent Director: Independent Director: Investor Relations Management
Dalong Luan Daming You Pingbo Yang
Valin prioritizes investor relations by maintaining open communication channels. The company engages with investors through various
Dalong Luan is currently an independent director for Daming You is currently a professor at the Pingbo Yang is currently a professor at Hunan
platforms including investor receptions earnings briefings and information disclosure utilizing a dual strategy of "bringing in" and
Beijing Jingcheng Machinery Electric Co. Ltd. and Business School of Central South University and University of Technology and Business and an
Beijing Tianma Intelligent Control Technology Co. Chairman of the Board of Supervisors at Hunan independent director of Zhongfu Shenying Carbon "going out" to deepen interactions with public funds private funds and securities research institutions. Additionally Valin leverages
Ltd. He previously served as a military representative Jinbo Carbon Co. Ltd. His previous roles include Fiber Co. Ltd. and Hunan Mendale Home Textile traditional media securities media professional investor relations firms IR mini-programs and Tonghuashun Enterprise Accounts to
at the Military Representative Office of Factory serving as a lecturer at Wuhan University of Co. Ltd. He previously held positions as a lecturer enhance its presence in the capital market.
331 in Zhuzhou Hunan a naval aviation military Technology a lecturer and associate professor and associate professor at Hunan University of
representative at the Military Representative Office in at Central South University of Technology and an Commerce and served as an independent director
Luoyang and a researcher at the Chinese Academy of associate professor at Central South University. for Snowy Salt Industry Group Co. Ltd. and Jinjian
Military Sciences of the People's Liberation Army. He He also worked as an independent director for Cereals Industry Co. Ltd.also held independent director roles at DHC Software Guangdong Shaoguan Iron & Steel Co. Ltd.Co. Ltd. Suzhou Recodeal Interconnect System Co. Guangzhou Hengyun Group Co. Ltd. and Hunan
Ltd. and Aerospace Hi-Tech Holding Group Co. Ltd. Jin Tian Aluminum High-Tech Co. Ltd.Trainings for Director Supervisor and Senior Management
Valin places significant emphasis on compliance training for directors supervisors and senior management. The Securities Department
regularly conducts internal and external compliance exchange training sessions. These sessions not only enhance collaboration quality
and efficiency across various information nodes within Valin but also strengthen awareness of capital market regulations and compliance
communication among employees. This approach helps establish a positive brand image in the capital market. Furthermore Valin
actively encourages directors supervisors and senior management to participate in external compliance training programs thereby
expanding compliance exchange channels and deepening the foundation of a compliance culture.Investor Research Activities
Board of Supervisors
The Board of Supervisors fulfills its oversight responsibilities in compliance with the Company Law Articles of Association and the Rules Case Annual Earning Release Meeting
of Procedure for the Board of Supervisors. During the reporting period members attended or observed Board of Directors meetings and Study
General Meetings of Shareholders reviewed major decisions key economic activities and financial operations and provided constructive
feedback. They effectively supervised the performance of directors and senior management safeguarding the interests of the Company Using the Jinmen Finance Platform Valin conducted its annual earning release meeting through a hybrid approach combining online
shareholders and employees. sessions and written materials. This strategy significantly expanded the meeting's reach. Senior management directly engaged with
investors providing in-depth analysis of financial data and future strategies. Through the presentation and online interactions investors
gained a clear understanding of Valin's strategy and performance fostering trust and transparency.Key Performance
During the reporting period 8 Board of Supervisors meetings were held with 100% attendance and 19 proposals were reviewed and
approved.As of the end of the reporting period the Board comprised 3 members including 2 employee supervisors and 1 female supervisor
representing 33.33% of the total.Senior Management
Under the leadership of the Board of Directors the senior management strictly adheres to Company Law Securities Law and the
Articles of Association while exercising their authority. They diligently execute their duties to ensure the effective implementation of the
Board’s decisions. In 2024 Valin had 5 senior managers including 1 female.Valin has established performance evaluation standards for senior management based on governance strategies and strategic plans.These standards cover financial performance strategic execution risk management and compliance. Regular performance evaluation
reports and key performance indicators are used to assess management comprehensively. This approach aligns individual interests
with the Company’s long-term growth motivates managers improves operational efficiency and quality and ensures the achievement
of business objectives. Earning Briefings
25 262024 Environmental Social and Governance Report Strengthening Governance: Jinfeng Builds a Solid Foundation
Case
Study Offline Investor Reception Day Information Disclosure Management
During the reporting period Valin participated in the Hunan Regional Offline Investor Reception Day addressing 13 investor questions Valin strictly adheres to the Company Law Securities Law Listing Rules and Administrative Measures for Information Disclosure of
on topics such as financial status capital operations R&D planning strategic layout and overseas market expansion. By actively Listed Companies. The company has formulated the Hunan Valin Wire & Cable Co. Ltd. Information Disclosure Management System
responding to investor concerns Valin enhanced their understanding of the Company's operations and future growth strategies. and the Hunan Valin Wire & Cable Co. Ltd. Insider Information Insider Registration Management System to regulate the disclosure of
significant information periodic reports and interim reports. These systems aim to enhance the efficiency and quality of information
disclosure ensuring authenticity accuracy completeness timeliness and fairness while preventing false records misleading
statements or material omissions. This approach fully protects the legitimate rights and interests of investors. To help investors better
understand the development trends and potential Valin also engages in voluntary information disclosure showcasing positive progress
Key Performance in financing innovation market expansion and technological advancements.Valin places great importance on confidentiality management regarding insider information. We enforce the Insider Information
In 2024 we conducted 8 Investor Open Communication Meetings to foster transparency and hosted 2 on-site investor visits Registration Management System to strengthen confidentiality and maintain the fairness of information disclosure. Information that
may significantly impact investor decisions and stock prices is promptly disclosed through official channels including China Securities
with 31 participants in total. Journal Securities Times Securities Daily Shanghai Securities News the CNINFO website and the Shenzhen Stock Exchange website.This practice ensures full risk disclosure and enhances transparency in the capital market.We achieved 45 interactive engagements on the Interactive platform reflecting a 30.30% YoY growth.We addressed 119 investor questions across all channels.We maintained a 100% response rate to investor inquiries.Key Performance
Return to Shareholders Information Disclosure: We disclosed 4 periodic reports 84 ad hoc reports with zero penalties incurred for non-compliance in information disclosure.Valin remains committed to creating value for shareholders while driving its own growth. The company has established a long-term
stable profit distribution policy as outlined in the Three-Year Shareholder Return Plan (2023-2025) of Hunan Valin Wire & Cable Co. Ltd.According to this plan under the condition of meeting profit distribution requirements the annual cash dividend distribution will not be
less than 20% of the distributable profits for that year.Following the Cash Dividend Guidelines (2023 Revision) issued by the China Securities Regulatory Commission (CSRC) on December
15 2023 which encourages listed companies to distribute dividends Valin has demonstrated consistent performance. Since 2021 the
company has distributed dividends four times achieving an average annual dividend payout ratio exceeding 36%.Key Performance
Total Cash Dividends
RMB26.7212 million in 2023 RMB26.7212 million in 2022 RMB69.4752 million in 2021
Percentage of Net Profit Attributable to Shareholders of the Listed Company in the Consolidated Financial Statements (%)
30.89% in 2023 24.33% in 2022 51.63% in 2021
27 282024 Environmental Social and Governance Report
Jinfeng Escorting:
02 Compliance as the Helm to Strengthen Risk ManagementCompliance Management
Foundations Tax ManagementEqual Treatment for SMEs
Valin has implemented a strict standardized comprehensive and effective internal control and supervision system that is risk
management-oriented and emphasizes compliance management and supervision to ensure operational standardization. Valin strictly
adheres to tax laws and policies fulfilling its obligation to pay taxes in accordance with the law. Valin treats small and medium-sized
enterprises (SMEs) equally supports the achievement of development goals enhances enterprise management and operational
efficiency and establishes a solid foundation for sustainable growth.
29 302024 Environmental Social and Governance Report Jinfeng Escorting: Compliance as the Helm to Strengthen Foundations
Risk Management Case Study "You Complain I Improve" Suggestion Questionnaire
Valin's robust risk management and internal control system serves as a cornerstone for standardized operations. Valin continuously Valin actively fosters a two-way communication channel between the company and the employees proactively collecting and reviewing
enhances its risk assessment process and mechanisms to effectively identify and address potential risks including strategic risks employee' feedback. By leveraging DingTalk real-name questionnaires department heads encourage employees to provide suggestions
financial risks market risks operational risks legal risks and more. Valin promptly identifies and systematically analyzes risks related and constructive management opinions. Employees who offer effective suggestions are rewarded. During the reporting period
to internal control objectives in business activities reasonably determines risk tolerance and develops appropriate response strategies. 44 employees participated with some contributing multiple times. Corresponding rewards were distributed to participants.52 valid
Through regular analysis of internal and external risks and the implementation of response measures we minimize risks strengthen suggestions were collected and 43 processes were optimized based on the feedback.the ability to prevent and resolve major risks and enhances competitiveness innovation and control capabilities.Valin has formulated the Compliance Management Measures integrating risk management and compliance requirements into business
processes through the principle of "strengthening supervision and strict accountability". This approach also enhances information
management. Construction of Compliance Culture
The risk management system employs various functional departments as the first line of defense the risk management functional Valin has established a normalized compliance training mechanism
departments as the second line of defense and the Audit Committee as the third line of defense. Through these three lines of defense and formulated an annual training plan. Compliance management
the Company has established a closed-loop management system and gradually improved a "three-in-one" supervision mechanism is regarded as a compulsory part of the training for managers
encompassing business supervision comprehensive supervision and accountability. key personnel and new recruits. Meanwhile in order to cultivate
a compliance culture with the own characteristics the Company
organized the signing of compliance commitments guiding all Audit Training on Futures Contract Compliance Training
employees to consciously practice compliance principles.Risk Analysis
Risk Identification
Reasonably define measurement units and risk
Gather feedback through interviews Key Performancemeasurement models for each risk
questionnaires and other methods to
accurately identify internal and external risks During the reporting period the number of participants who
received compliance training reached 233.Formulation and Implementation of Risk
Solutions Safety Compliance Training Sales Compliance Training
Establish a process integrated into the
Information Collection entire risk management framework to
ensure timely accurate and complete
Comprehensively systematically and information communication
continuously gather relevant information Risk Management Tax Management
to reasonably ensure the achievement of Process
established control objectives
Valin maintains strict adherence to tax laws and policies earning an A-grade taxpayer rating
from 2021 to 2024. Valin has enhanced its internal financial control system strictly followed
Compliance Management financial discipline rules regulations and standards while rigorously enforcing financial operation and approval processes. In response to the 4th Phase of the Golden Tax Project
Valin ensures more standardized tax management and continuously strengthens its tax risk
Valin has established and improved a strict standardized comprehensive and effective internal control and supervision system which management capabilities.is oriented towards risk management and focused on compliance management and supervision. By "strengthening supervision strict
accountability" and enhancing information management the Company integrates the requirements of risk management and compliance Valin strengthened tax management training and organized training sessions on electronic
management into its business processes. Tax Training invoices and related tax knowledge encouraging employees to participate in seminars such
as "Deepening Tax Reform" to stay updated on policy developments.Case
Study Optimization of the Online Business Process Management System
Valin has set the goal of developing an online business process management system focused on "process reengineering" and
comprehensive upgrading of the company's systems processes and authorization mechanisms. The aim is to achieve standardized Equal Treatment for SMEs Key Performance
digitalized processes clear authorizations and streamlined approvals. In 2024 the Company focused on building a customer-centric Valin strictly complies with laws and regulations such as the Criminal Law of the People's During the reporting period Valin
process system characterized by Layered authorization Three-tier approval system First-tier accountability Control of key points and
Accelerated process speeds. Republic of China the Anti-Unfair Competition Law of the People's Republic of China
maintained a flawless record by ensuring
the Anti-Money Laundering Law of the People's Republic of China the Anti-Monopoly no overdue payments to SMEs.Key Performance Law of the People's Republic of China the Law of the People's Republic of China on
the Promotion of Small and Medium-sized Enterprises the Opinions of the Central
142 65 Committee of the Communist Party of China and the State Council on Promoting the During the reporting period a total of online processes were optimized and systems were revised.
Development and Growth of the Private Economy and the Regulations on the Payment of Amounts to Small and Medium-sized Enterprises
(Draft for Solicitation of Comments) etc. Valin is dedicated to protecting the interests of debt owners maintaining integrity in supplier
relationships and ensuring the prompt payment of accounts payable to SMEs. By safeguarding the legitimate rights and interests of
SMEs and optimizing the business environment Valin fosters a fair and transparent ecosystem that supports sustainable growth.
31 322024 Environmental Social and Governance Report
Forging a Spirit of
03 Integrity: Setting Benchmarks for Fair
Competition Business EthicsFair Competition
Integrity culture as a crucial component of corporate culture is highly valued by Valin and integrated into our daily management.We adhere to participating in fair competition in accordance with market principles externally ensuring that all business activities
are conducted in a transparent and just environment. By strengthening integrity and self-discipline we have not only enhanced the
standardization of internal management but also established a good corporate image laying a solid foundation for Valin's sustainable
development.
33 342024 Environmental Social and Governance Report Forging a Spirit of Integrity: Setting Benchmarks for Fair Competition
Business Ethics Case Study “Anti-Four Undesirable Work Styles Initiative” Learning and Education
Before major holidays like New Year's Day the Dragon Boat Festival the Mid-Autumn Festival and National Day Valin conducted
Valin prioritizes integrity management as a core element of corporate culture. We actively conduct integrity education enforce the
educational sessions on rectifying the "anti-Four Undesirable Work Styles initiative". Managers participated in centralized learning
"one position dual responsibilities" principle for building a clean and honest government and enhance efficiency supervision. Through
to convey the spirit of relevant notices which were then disseminated to branch factories and departments. Integrity reminders and
initiatives like disclosing Party and government affairs and advancing punishment and prevention systems we foster a culture of integrity
promotional activities were organized and pre-holiday deployment meetings were held to implement integrity measures and uphold the
and self-discipline among employees ensuring ethical conduct and adherence to professional standards.spirit of the Central Government's Eight Provisions.Valin strictly complies with national and regional anti-corruption laws and regulations. We bolster institutional supervision and implement
robust anti-corruption measures. Additionally we require sales staff to sign the Anti-Commercial Bribery Agreement and the Integrity
Practice Commitment Letter. This approach effectively eliminates corruption risks during tendering procurement agreement signing
and implementation processes while continuously standardizing sales staff behavior.Strengthen ideals and beliefs education.Organize thematic learning sessions.Focus on Learning: Consolidating the Enhance warning education.Foundational Role of Education
I mplement Party affairs transparency to enhance the transparency of Party organization work. Tips on Supervision and Inspection Warning Education Integrity Warning Education
Promote government affairs transparency to ensure administrative power operates under Work for Rectifying the "Anti-Four Conference
Undesirable Work Styles Initiative"
sunlight.Strengthen institutional construction.Focus on Building: Improving the Punishment
Enhance benchmarking and alignment.and Prevention System
Valin strengthens business ethics supervision through a whistleblowing and investigation accountability mechanism. We actively accept
and address reports from employees and the public implementing a strict whistleblower protection mechanism to prevent information
Formulate new measures to ignite new vitality. leaks and safeguard whistleblowers' personal safety and legitimate rights. A dedicated hotline ensures secure reporting and eligible
Earnestly rectify malpractices harmful to public interests whistleblowers are rewarded accordingly.Focus on Management: Strengthening
Supervision Efficiency
Timely deployment. Fair Competition
Earnest implementation.Focus on Accountability: Implementing the
Responsibility System for Party Conduct and Integrity
Valin strictly complies with relevant laws and regulations such as the Anti-Unfair
Key items of discipline inspection and supervision work Competition Law of the People’s Republic of China and has established regulations
including the Regulations on Standardizing Customer Resource Management and
Case the Internal Sales Management Measures. In the marketing process Valin firmly
Study Integrity Learning opposes any form of fraud and malicious competition striving to create a fair
transparent and orderly market environment.Valin distributed the newly revised Regulations of the Communist Party of China on Disciplinary Sanctions to all grassroots organizations.Through multiple channels interpretation materials and learning resources were made available. Leveraging the "three meetings and
one class" system and the "one class one film and one practice per month" initiative 18 subordinate units and 5 Party branches swiftly
implemented learning and education programs. This approach internalized the "Regulations" in employees' minds and translated them
into actions ensuring discipline and accountability.
35 362024 Environmental Social and Governance Report
Building on Safety:
04 Digital Intelligence as a Strong Barrier Information SecurityDigital Construction
Privacy Security
In the digital era Valin prioritizes information security digital construction and privacy protection as core pillars of its operations.These elements collectively enhance corporate efficiency safeguard personal data and ensure data integrity and system stability.
37 382024 Environmental Social and Governance Report Building on Safety: Digital Intelligence as a Strong Barrier
Information Security Digital Construction
To achieve the goal of becoming a benchmark for digital
In compliance with national laws and regulations including the Cybersecurity Law of the People's Republic of China the Personal intelligence in the industry by 2025 Valin is accelerating its
Information Protection Law and the Data Security Law Valin has established the Information System Security Management Regulations digital transformation and striving to build an integrated digital
tailored to its operational needs. These regulations clearly delineate the data security responsibilities of relevant departments and platform to consolidate information systems continuously
personnel while setting strict requirements to systematically strengthen and enhance the overall defense and management efficiency enhancing decision-making intelligence and operational
of Valin's network and information systems. This ensures the high-standard execution of information security tasks. efficiency.Valin has proposed and actively promoted the "Intelligent
Information System" accelerating the digital application Hunan Provincial Industrial Hunan Provincial Benchmark Internet Platform Enterprises for "Cloud Migration
Routine Security Management across various business systems and enabling inter- and Platform Adoption"organizational business collaboration and automated business
data collection. This initiative supports the Company in reaching new levels of refined and standardized management.During the reporting period Valin optimized supply-production-sales coordination strengthened information interconnectivity and
To enhance and standardize the management of employees and visitors ensure internal security and confidentiality and protect personal shifted the informatization focus on data center construction and operation. The primary focus has now shifted to data security data
and property safety as well as office order Valin has implemented the 3rd Party Personnel Information Security Management system. analysis and data-driven decision-making.Security checks are conducted and security controls are bolstered through measures such as firewalls intrusion detection systems
encryption programs and antivirus software. For visitors accessing highly secure areas the hosting department provides security Main Framework for Digital and Intelligent Construction in 2024
training and mandates signing a security and confidentiality commitment letter to enforce data security management responsibilities.Upgrading Systems “1+4” Structure
Emergency Incident Management Focus on upgrading systems such as OA ERP Build an internal "1+4" structure namely the Decision-Making Center BIP MES MPM and supply chain management to Supply Chain Center Marketing Center Finance and Investment Center
achieve upgrades in organizational flattening refined and Technology Center aiming to create a first-class intelligent special
management agile operations mobile applications cable workshop relying on industrial internet and 5G technology to achieve
intelligent decision-making digital operations and data comprehensive interconnection of production equipment and energy
To enhance its capacity to handle information security emergencies and establish a scientific effective and responsive emergency assetization comprehensively enhancing operational management. Establish a data and monitoring center to realize full AGV
response mechanism Valin has developed the Information Security Emergency Plan Management system. An information security control efficiency material distribution improve production organization efficiency reduce
emergency response leadership team has been formed to coordinate and manage emergency efforts ensuring the physical operational labor costs and achieve lean production
and data security of critical information systems. This approach minimizes the impact of information security incidents on the company's
operations and data security. Privacy Security Key Performance
During the reporting period Privacy protection training
Training and Drills Valin consistently adheres to the legal red lines and value boundaries of information security and privacy protection. In accordance coverage reached 80%.with the Information System Security Management regulations Zero information security breaches and zero customer
Valin effectively integrates privacy protection requirements and privacy leaks were recorded.measures into the entire business process.To equip employees with adequate security awareness and skills Valin regularly
Online Management for Customer Information
conducts internal security training sessions and has developed customized data Privacy Protection
security courses for employees across various departments and roles ensuring Case Hierarchical Setting of Customer (ERP Collaborative Office Systems)they are well-versed in standardized data processing procedures and methods to Study Basic Concept: Hierarchical access control to protect customer privacy
mitigate common data security risks. Information Privacy Permissions
Key Performance To protect customer privacy Valin implemented hierarchical
privacy permissions in the online management systems (ERP
and collaborative office systems). Different levels of access
During the reporting period Valin reported zero data security incidents. allow personnel to view only the information relevant to their job Quotation department Contract planning Sales
Cybersecurity Knowledge Training functions. For instance quotation personnel can access only Personnel in the department representatives
quotation-related data contract planning personnel can view quotation department Personnel in the Their accounts can
contract-related information and sales representatives can access can only view contract planning only view information
information related to department can related to their own
information related to their own business. This functionality was quotations only view contract- business
fully implemented during the reporting period. related information
39 402024 Environmental Social and Governance Report
Valin Uniting
05 Strengths for Mutual Success Supplier Management Mechanism
Supplier ESG Governance
Supply Chain Management
In today’s globalized and digital business environment collaboration between enterprises is more crucial than ever. By strengthening
supplier management promoting ESG practices and optimizing supply chain processes Valin aims to achieve a win-win strategy with
suppliers enhancing supply chain efficiency and sustainability while fostering long-term mutual growth.
41 422024 Environmental Social and Governance Report Valin Uniting Strengths for Mutual Success
Supplier Management Mechanism Case Study Supplier Collaboration Platform System
To reduce procurement costs and improve efficiency Valin has comprehensively optimized its procurement system through the supply
Valin places great emphasis on supply chain management and continuously advances sustainable procurement. Valin has established chain informatization platform. This optimization has enhanced the precision of supplier classification and hierarchical management
internal systems including the Supplier Management Measures Key Supplier Management Measures and Production Material streamlined the procurement strategy formulation process and significantly strengthened procurement collaboration capabilities. In
Procurement Management System. These regulations ensure that supplier selection is based on quality price delivery time and service 2024 centralized procurement generated cost savings of RMB 16.359 million while potential exploration projects for certain special
guaranteeing that selected suppliers meet Valin’s needs and have the potential for long-term cooperation. materials achieved additional savings of RMB 19.743 million. The material supply guarantee rate reached 99.6%.Within the Company Supplier
Supplier Onboarding
ERP Collaboration platform V-Jion
● T he Procurement Department conducts preliminary investigations on suppliers by completing the Supplier
Screening Quality Assurance Capability Survey Form. The survey includes the supplier’s service scope sample
certification status product execution standards corporate qualifications and product quality levels. Supplier admission/
● T he Technical Quality Department inspects samples for appearance performance indicators and other evaluation Online registration/results
quality aspects. If the samples meet the required standards they are put into trial use.Procurement
● T he Procurement Department selects suppliers for further evaluation based on sample testing results. commerce Online registration/results
Review
● P roducts provided by suppliers must be approved by the Production Department Technical Quality
Department production branches and leadership before being included in the List of Qualified Suppliers.Based on the impact of the purchased materials on product quality the materials are classified into two Generate purchase Contract/order ● orders confirmation Receive and confirm order
categories: critical materials and general materials. DEE
Quality inspection/
Evaluation
●Supplier risk levels are evaluated based on five aspects: policy risk market risk natural accident risk warehousing
Arrival notification Shipment with delivery number
quality risk and contract risk. DEE
Purchase invoice/posting Bill allocation Invoicing
Classifying ● S uppliers are categorized into grades A B C D and E corresponding to excellent good qualified guided
and unqualified suppliers. Future cooperation decisions are based on these ratings. Payment Payment plan/request
System architecture of the supplier collaboration platform
Valin leverages the development of a supply chain informatization platform to integrate full-lifecycle supplier management with digital
technologies. This approach enables refined process management for critical links such as supplier admission and grading. Additionally Valin has optimized quality inspection and evaluation of suppliers signed quality agreements with them and promoted material
Valin emphasizes internal synergy closely linking all upstream and downstream segments of the supply chain to ensure that suppliers consistency requirements to ensure the stability of material quality. Additionally Valin conducts rigorous assessments of suppliers’
consistently meet the company's stringent requirements and standards throughout the entire cooperation process. qualifications and creditworthiness to mitigate procurement risks. The pass rate of material batches has reached 99.26%.Key Performance
As of the end of the reporting period the total number of suppliers was 175.
43 442024 Environmental Social and Governance Report Valin Uniting Strengths for Mutual Success
Supplier ESG Governance Key Performance
During the reporting period Valin required the long-term cooperative and qualified suppliers to sign Supplier Integrity
To implement sustainable development principles Valin not only prioritizes the quality and supply capabilities of suppliers but also Commitment Letter achieving a signing rate of 100%.emphasizes their environmental and social responsibilities. Valin issues the Declaration on Non-Use of Environmentally Harmful
Substances to suppliers and signs the Environmental and Safety Agreement with them. Additionally Valin has formulated the Key
Supplier Management Measures emphasizing suppliers' environmental and social qualifications and relevant system certifications
including but not limited to international standards such as Quality Management System (ISO 9001) Environmental Management System
(ISO 14001) and Occupational Health and Safety Management System (ISO 45001) certifications. This ensures that cooperating suppliers Building a Resilient Supply Chain
possess efficient quality management environmental awareness and human rights awareness jointly promoting the greening of the
supply chain. We stipulate in the Production Material Procurement Management System that the materials purchased by the company
must not only meet the technical standards for the corresponding materials but also satisfy the standards and requirements for green Valin actively seeks and evaluates more potential high-quality suppliers collaborating with various departments to broaden supply
manufacturing ensuring they are free of heavy metals non-toxic non-polluting and recyclable. channels and reduce supply risks. Valin has developed detailed supplier evaluation criteria tailored to the actual conditions encompassing
product quality delivery capabilities pricing levels after-sales service and more. Potential suppliers are comprehensively assessed
and high-quality suppliers are selected for cooperation. Through lean inventory management methods the Company monitors and
adjusts inventory in real-time to ensure it remains at an optimal level and improves inventory turnover speed and reduces inventory
Supply Chain Management costs by optimizing procurement plans sales strategies and logistics distribution.Green Supply Chain
Supplier Risk Assessment
Valin established a green supply chain management system and obtained Green
Supply Chain Management System certification.To enhance supply chain stability and reduce risks related to quality cost delivery time technology and service thereby bolstering
industry competitiveness Valin has formulated the Supplier Risk Management System clarifying the responsibilities of the procurement
department including evaluating supplier performance collecting and analyzing risk factors formulating risk avoidance measures and
subsequent tracking. For risk identification factors such as material verification quality assurance capabilities price delivery time Empowering the Supply Chain
service quality investigation results qualifications and credibility are considered. In terms of risk handling Valin takes corresponding
measures based on risk warning signals to minimize potential losses and ensure that business operations are unaffected. Additionally
the Company has established a risk case database to store all relevant risk management information for traceability and analysis. This Valin continuously empowers the supply chain by regularly conducting supplier training
comprehensive risk management mechanism helps identify and mitigate potential supplier risks in advance ensuring supply chain providing ongoing learning and development opportunities to help suppliers enhance their
stability and normal business operations. professional capabilities and business levels. Additionally we organize annual supplier Green Supply Chain
Management System
conferences to share best practices in supply chain management provide industry insights Certification
and strengthen partnerships between the Company and its suppliers.Promoting Transparent Procurement
Case Innovation Leadership Digital Empowerment—Collaboratively Building a Green
Study Safe and Sustainable Supply ChainValin emphasizes integrity in supply chain management requiring suppliers to sign the Supplier Integrity Commitment Letter to ensure Valin held the 2024 Annual Supplier Conference under the theme “Innovation Leadershipthe openness fairness and integrity of procurement activities preventing and curbing illegal and disciplinary violations at the source.Digital Empowerment—Collaboratively Building a Green Safe and Sustainable SupplyChain”. The conference aimed to strengthen communication and collaboration with
suppliers jointly explore industry trends share successful experiences deepen
cooperative relationships address market changes together and drive sustained growth
for both parties.Key Performance
In 2024 Valin conducted 5 ESG training for suppliers with a total duration of 10 hours covering 20 participants.
45 462024 Environmental Social and Governance Report
Social ChapterInnovation-Driven:
Integrating Intelligence
06 and Green Technology for Momentum Innovation Driven
Intellectual Property
Valin has achieved remarkable results in R&D management innovation strategy and achievement transformation. We have optimized
the R&D management system clarified management responsibilities standardized new product development processes and
introduced new regulations for process improvement projects and R&D expense management thereby enhancing R&D efficiency.Simultaneously the Company has implemented an innovation management strategy focusing on intelligent green and integrated
directions to accelerate new product development and achievement transformation fostering new types of productive forces. In terms
of industry-academia-research collaboration the Company has established partnerships with multiple universities and research
institutions to promote the construction of technology platforms.
47 482024 Environmental Social and Governance Report Innovation-Driven: Integrating Intelligence and Green Technology for Momentum
Innovation Driven Innovation Management Strategy
Systems and Frameworks Innovation Planning
Guided by scientific and technological innovation and focusing on high-quality development Valin aligns with major national and provincial
R&D Management strategic needs closely integrates with the strategic industrial layout makes key efforts in critical areas such as military products and
specialized cables and conducts research and innovation in forward-looking fundamental and key common technologies. Supported by
Valin deeply implements the corporate culture of "Responsibility Innovation and Struggle" formulating and refining the R&D an integrated industry-academia-research-application collaborative innovation platform and taking intelligentization greenization and
Management System to comprehensively optimize the R&D management framework. By clarifying the management responsibilities integration as the development directions the Company comprehensively implements the IPD project system focusing on overcoming
of various departments and standardizing the methods and processes for new product development the Company introduced new the bottlenecks obstacles and vulnerabilities of key core technologies accelerating the R&D promotion volume increase and
regulations during the reporting period including process improvement projects R&D expense management and guidelines for efficiency creation of new products and unblocking the channels for the transformation and application of achievements. By continuously
R&D management personnel. Meanwhile the scope of R&D achievements was further detailed and the reward distribution rules improving traditional products consolidating and extending advantageous products cultivating and expanding emerging products and
were optimized to enhance the standardization and efficiency of R&D management incentivizing innovation and ensuring the effective making forward-looking arrangements for future products the Company further focuses on development priorities activates innovation
execution of R&D activities. momentum fosters new forms of productive forces optimizes the industrial ecosystem strengthens basic safeguards coordinates
To strengthen the management and effective operation of the Technology Center Valin places high importance on the organizational development more effectively and strives to build an independent controllable safe reliable and highly competitive product system. It
structure design and leadership team composition of the center. Building on the integration of various professional innovation platforms fully promotes the Company to become a World-Class SRCI Model Enterprise.the Technology Center has established a well-structured hierarchical and responsibility-defined organizational system providing
robust support for technological innovation activities.In terms of functional operations the Technology Center actively promotes the initiation implementation and acceptance of projects Innovation Management Measures
related to new product development process improvement quality enhancement technical management new equipment upgrades
and new material applications. It is responsible for organizing project reviews submitting approvals and issuing rewards and penalties
notifications ensuring the efficient advancement of technological innovation activities throughout the entire process. Optimizing Innovation Processes
To continuously promote the optimization of the R&D and innovation work Valin has formulated the Project Management Measures
Pre-Research Office New Product Development Office to conduct full-life-cycle management of the project initiation implementation and acceptance of R&D projects. Valin clarifies the
Industry-academia-research Project Department Design Department management requirements for each R&D project at different stages lists in detail the required materials for project design and
Collaborative Innovation and R&D Department Development Department development and combines them with the reward and assessment mechanism for R&D achievements to ensure the efficient progress
of R&D projects and motivate the output of innovative achievements.Technology
Center
Process Management Office Technical Management Office
Process Execution Department Demand Planning Department
Process Standardization Department Technical Documentation Department Project
Technology Commercialization Department Initiation Project
Acceptance
Project
Organizational Structure of the R&D Center Project Rewards
Implementation and Evaluation
Process Management of R&D Project
49 502024 Environmental Social and Governance Report Innovation-Driven: Integrating Intelligence and Green Technology for Momentum
Building R&D Platforms For innovation and R&D projects Valin has formulated the
Project Management Measures. To encourage technological
breakthroughs and new product development the Company
With the goal of becoming a leading enterprise "domestically leading and internationally first-class" Valin accelerates the improvement has set graded R&D innovation reward amounts based on the
of the innovative product development platform builds a platform integrating the R&D of core industrial technology as well as scientific technical difficulty innovation level and economic benefits of
and technological transformation. This will rapidly enhances the technological innovation and development capabilities and continuously projects fully motivating the enthusiasm and creativity of the
promotes the construction of a World-Class SRCI Model Enterprise. R&D team and driving technological innovation and product
upgrading.For R&D personnel Valin has established an evaluation
and reward mechanism. The Technology Center regularly
evaluates R&D personnel either periodically or by project
linking evaluation results to compensation rewards and
promotions to stimulate their enthusiasm and innovation
capabilities.Annual Marketing and Technology Summary and Recognition Conference
CNAS Laboratory Key Laboratory of Special Cable National Center for
Accreditation Preparation in Hunan Province Enterprise Technology Transformation of Scientific and
Technological Achievements
Valin actively promotes the transformation of scientific and
technological achievements strengthens the deployment of cutting-
edge technologies and continuously drives industrial upgrading
to achieve steady growth in economic benefits. Valin focuses on
building industrial leadership capabilities in three segmented
markets: aerospace and integrated equipment special rubber-
sheathed cables and special control. The independently developed
high-performance coal mining machine cables flexible umbilical
cables for robots lightweight conductors for aerospace applications
and drag cables for mining equipment have all achieved import
Hunan Provincial Engineering and Hunan Provincial Industrial Hunan Provincial substitution. The soft lightweight ultra-high-temperature cable
Technology Research Center for Design Center Expert Workstation for aerospace was selected for the fourth batch of manufacturing
Special Cables single champion products list by the Hunan Provincial Department Won the Second Prize at the 2024 Hunan Advanced
of Industry and Information Technology. Technology Transformation and Application Competition
Establishing R&D Teams
Valin places high importance on the construction of R&D teams actively recruiting outstanding domestic technical talents continuously Field Key R&D Achievements
expanding the scale of the R&D team and enhancing overall capabilities. With 73 years of experience in wire and cable production
Valin has accumulated extensive R&D and production expertise cultivated a large number of technical backbones in wire and cable Aluminum alloy torsion-resistant wind power cables have been operating well for 1 year at Zhangjiakou Wind Power
technology and formed a professional technical workforce primarily composed of technicians. Additionally the Company has gathered Wind Farm and 24 sets of 35kV torsion-resistant wind power cables have been sold and delivered.a group of domestically leading technical experts.The new energy vehicle wire business has secured orders exceeding RMB ten million from Taiyuan
New Energy
Key Performance Heavy Industry Automobile Wiring.As of the end of the reporting period Valin had 70 R&D personnel accounting for 11.35% of the total workforce. Rail Transit Five samples of 30kV single-phase power cables designed to replace imports have been developed.Thin-layer coal mining machine flat cables have been developed and obtained coal mine safety
R&D Innovation Motivation Energy & Mining certification achieving small-batch supply. 10kV coal mining machine cables and Australian standard
drag cables have been developed.During the reporting period to motivate employees to actively participate in R&D innovation Valin formulated a comprehensive R&D
Reward Measures and a multi-level R&D reward mechanism. This mechanism covers reward management for product development Engineering Machinery The development of all R&D products has been completed and the technology is mature.intellectual property professional papers product certification new product innovation QC activity achievements standard formulation
technology projects and others. Valin fully motivates the employees’ enthusiasm through profit commissions one-time bonuses and Key R&D Achievements by Domain
special commendations.
51 522024 Environmental Social and Governance Report Innovation-Driven: Integrating Intelligence and Green Technology for Momentum
Industry-Academia-Research Cooperation
Valin attaches great importance to the integration of industry academia and research and is committed to building a powerful technical 13441.47
platform to support the implementation of the Company's technology strategy and the improvement of the industrial innovation 11485.03
capabilities. We have established long-term cooperative relationships with many well-known universities and research institutions
such as Xi'an Jiaotong University Shanghai Jiaotong University Harbin University of Science and Technology University of Science and 9799.25
Technology of China Hunan University Shanghai Cable Research Institute China Electric Power Research Institute Wuhan High Voltage
8004.09
Research Institute Shanghai Institute of Nuclear Physics and Application of the Chinese Academy of Sciences etc. and have set up 4
experimental bases and R&D centers. Through these collaborations we can not only obtain cutting-edge research achievements but
also promote the development of technological innovation activities and the cultivation of talents. 5216.77
In addition the Technology Center has strengthened the connection between the Company and scientific research institutions and
organized teams to visit Beijing Chengdu Shanghai Xi'an Wuhan and other places to conduct product promotion and cooperation
exchanges with the First Fifth Eighth and Ninth Academies of the China Aerospace Science and Technology Corporation the Second
Third and Seventh Academies of the China Aerospace Science and Industry Corporation China North Industries Group Corporation
Chengdu Aircraft Corporation of AVIC Xi'an Aircraft Corporation Institute 611 Institute 608 Institute 603 Institute 602 the 701 Institute
of CSSC China Academy of Engineering Physics etc. bringing new cooperation opportunities and innovative ideas to the Company. 2020 2021 2022 2023 2024
R&D Investment (RMB 10000)
Case Jointly Building an Industry-Academia-Research Platform with Harbin University
Study of Science and Technology Intellectual Property
During the reporting period Valin collaborated with the School of Electrical and Electronic Engineering at Harbin University of Science
Valin diligently adheres to relevant national laws regulations and standards including the Patent Law of the People's Republic of China
and Technology to establish an industry-academia-research platform. The signing and plaque-awarding ceremony marked a robust
the Copyright Law of the People's Republic of China and the Enterprise Intellectual Property Management Specification established
partnership between the enterprise and the university paving the way for enhanced cooperation across multiple levels diverse formats
and refined an intellectual property management system to ensure the legality and effectiveness of intellectual property management.and various fields. This initiative aims to achieve the seamless integration and optimal allocation of resources between Valin and the
By standardizing the management of R&D achievements and formulating the Measures for Intellectual Property Management Valin has
university while nurturing talents essential for economic and social development.clarified the principles norms and requirements for intellectual property protection. This comprehensive system spans all stages from
pre-research and R&D to production and sales.In managing intellectual property the New Product Development Center is responsible for developing intellectual property work plans
exploring applying for and monitoring intellectual property rights handling disputes and property rights transactions and assisting
various functional departments in securing patent protection. Additionally the center oversees the initiation mid-term inspection and
conclusion of the company's research projects as well as the registration of scientific research achievements archive management and
feasibility assessments for patent applications ensuring effective management and protection of intellectual property rights.While safeguarding the own intellectual property from infringement Valin proactively prevents violations of others' intellectual property
rights. The regulations mandate that scientific research project undertakers conduct patent document searches before project initiation
and file all technical materials upon project completion.Signing an Agreement on Jointly Building an Industry-Academia-Research Platform with Harbin University of Science and Technology
Key Performance
Strengthening technical confidentiality ef- Strict management of the production Incorporating clauses in labor contracts with
134.41 forts: All personnel involved in R&D pro- transmission use storage and destruction core researchers that specify ownership of During the reporting period the R&D investment was RMB million and the proportion of R&D investment in jects must sign confidentiality agreements of technical secret documents research results conditions for resignation
revenue was 3.23%. handover procedures post-resignation
39 confidentiality obligations non-compete There were self - developed projects in the past three years. periods and liability for breach of contract
Industry-academia-research achievements 2
Key development projects 12
Measures for Safeguarding Intellectual Property Rights
53 542024 Environmental Social and Governance Report Innovation-Driven: Integrating Intelligence and Green Technology for Momentum
Intellectual Property Key Performance
In order to strengthen the management and protection of intellectual property rights Valin has established intellectual property Valin holds 385 patents in total including 52 newly filed applications and 34 granted patents in 2024 with 345 active
management objectives and formulated the Three-Year Work Plan for Intellectual Property Rights (2024-2026). This plan clearly outlines
patents and 1 registered trademark currently in force.the Company's future intellectual property development further enhances the capabilities in the creation utilization protection and
management of intellectual property rights and provides strong support for the Company's sustainable development and competitive
advantages.Valin Leads in Patent Pre-examination Submissions Certifications A Leading Enterprise in Intellectual Property Rights
and Grants at the Xiangtan IP Protection Center Honored as a "Top
10 Innovative Entity"
A Cable Fault Detection Method and A Fault Monitoring Method System and A Cable Fault Monitoring Method System
System Based on Data Analysis Equipment for Flame - Retardant and Heat and Equipment Based on Big Data
- Resistant Cables Based on Big Data
Significant increase in the quantity and Reinforcement of intellectual
quality of intellectual property rights property advantaged enterprise
establishment and management
Industry Award
Accelerating the transfer Improvement of intellectual
and transformation of property creation quality
intellectual property rights Goals Plans Hunan Famous Brand 2024 Top 10 Brands of in 2023 Special Cables in China
Notable enhancement Implementation of stricter Hunan Provincial Market January 2024 Bidding Brand Research and September 2024
intellectual property protection Supervision Administration Publicity Service Platformof intellectual property
management level 2024 Top 100 Most Competitive
January 2024 CNAS Testing Center May 2024 Enterprises in China’s Cable
CNAS Industry
Strengthening the Perfection of intellectual property Wire and Cable Network Cable World
training of intellectual utilization mechanism
property talents
55 56Enhancing Quality and
07 Efficiency: Crafting Excellence with Precision
Quality Management
Customer Service
In today's fiercely competitive market quality management and customer service are key drivers of corporate success. By establishing
and refining a robust quality management system continuously raising quality standards and fostering a culture of excellence the
Company achieves lean production and superior quality. At the same time outstanding customer service allows companies to meet
customer needs boost satisfaction and loyalty and ultimately drive sustainable growth and market competitiveness.
57 582024 Environmental Social and Governance Report Enhancing Quality and Efficiency: Crafting Excellence with Precision
Quality Management
Valin regards product quality management as a core competency and the foundation of its development. With the quality policy of
"Customer Satisfaction Eternal Quality" and the quality objectives of "Zero Major Quality Incidents 100% Inspection Pass Rate" the
Company fully implements excellence in performance management forming a quality management model centered on customers
driven by innovation and focused on quality. Product Infrastructure Employee
Quality Renovation / Training
Expansion and TPM
Management
Cost Reduction Process and Quality
Quality Management System through Potential Improvement and Optimization Product Development
Key Improvement Projects of Annual Quality Management System Improvement Plan
In accordance with the GJB 9001C-2017 and ISO 9001:2015 Quality Management System
Requirements standards the Company has established a quality management system strictly Case Recognition in the Hunan Famous Brand Evaluation Event
regulating various quality management processes. It has formulated measures such as the Study
Technical and Quality Management Measures Non-conforming Product Control Procedures
and Product and Service Control Procedures clearly defining the requirements and standards
During the reporting period Valin successfully passed the Hunan
for technical research and development production quality control and other aspects.Famous Brand Evaluation Event organized by the Hunan Provincial
The Company has established a product life-cycle quality management system to ensure the Market Supervision Administration. With over 70 years of expertise
safety and compliance of products throughout their entire life cycle. This system is integrated in wire and cable manufacturing a solid foundation in quality
into business processes such as product R&D supply chain management production and after- and branding and industry-leading technological innovation the
sales service providing customers with innovative and highly competitive products and solutions. company was honored to be included in the 2023 Hunan Famous
During the reporting period the Company introduced the IATF 16949 Quality Management Brand List.System utilizing five core quality tools to comprehensively enhance quality management.To meet the needs of the market development goals Valin focuses on customer-centric product
categorization deepening the presence in domestic markets for mining cables marine cables
wind and solar power cables power cables and rail transit cables. Valin continuously improves ISO 9001:2015 Quality
Management System
system certifications and quality assurances such as MA KA CCC CCS TUV PCCC CRCC and Certification
production licenses. In response to the expanding overseas markets in 2024 the Company Quality Culture Construction
obtained certifications including Russian GOST CE and CB enhancing its competitiveness in
international markets. Valin actively implements the national strategy of "Building a Quality Nation" driving high-quality development
and promoting a corporate-wide quality culture.
01 Conducting monthly reviews and quality seminars hosting quality lectures delivered by executives
Enhancing Quality Standards
02 Developing a quality reflection training program
To implement the quality policy and objectives Valin has further improved product quality and market service levels ensuring the effective
operation and continuous improvement of the quality management system. The Annual Quality Management System Improvement Plan
has been formulated outlining specific implementation measures across five key areas: product quality cost reduction through potential 03 Providing training for internal quality system auditors
optimization employee training and others. The plan clearly defines the relevant departments responsible personnel and completion
timelines for each improvement project ensuring the sustainable development of the quality system.
04 Updating and optimizing the quality manual and procedural documents
Quality Culture Construction Measures
59 602024 Environmental Social and Governance Report Enhancing Quality and Efficiency: Crafting Excellence with Precision
Key Performance
During the reporting period the product sampling inspection pass rate was 99.82% There were 0 product recall incidents.Quality Month Kick-off Meeting Company-wide Quality Commitment Customer Service
Valin continuously strengthens its customer service capabilities to ensure a swift response and meet diverse customer needs. Backed
by a comprehensive and well-established service system and extensive experience the Company delivers outstanding service. Through
regular and diverse customer engagement activities Valin provides professional guidance on product usage and resolves technical
challenges in cable applications effectively safeguarding customers' legitimate rights and interests.Customer Protect customers' legitimate rights and interests and promptly
Service
Real-life Case Sharing on Quality Speech Competition Philosophy resolve their issues.Case The business departments are responsible for handling product
Study Quality Management Enhancement Project Service System inquiries product promotion customer visits technical support
and other related services.To elevate product quality Valin launched the "Quality
Management Enhancement Project" in collaboration with Customer Protect customers’ legitimate rights and interests and promptly
the Huaxia Management System Research Institute on April Service Handling Principle resolve their issues.
2nd. The project aims to conduct a comprehensive review
and optimization of the existing quality management system
enhance overall management capabilities and ensure that
product and service quality consistently meets international
standards.The project team will conduct visits and on-site investigations
across various departments to collect data on the management
systems technical specifications and operational procedures.This approach will provide a systematic understanding of the
current state of the quality management national military
standards and product certification systems ultimately driving
continuous improvement in quality management.
61 622024 Environmental Social and Governance Report Enhancing Quality and Efficiency: Crafting Excellence with Precision
Customer Satisfaction Surveys After-sales Service Personnel Training
Valin places great emphasis on training its after-sales service personnel. Through a comprehensive training system it enhances pro-
fessional skills and service quality covering product knowledge service techniques process standards and legal regulations. By inte-
Providing Products Determining Monitoring
To continuously optimize customer service Valin has and Services and Measurement
Methods grating theoretical learning with hands-on practice the Company effectively improves after-sales service efficiency and enhances the
established the User Quality Information Management customer experience.System and regularly conducts customer satisfaction
surveys including key clients distributors and other
stakeholders ensuring the comprehensiveness and
representativeness of the data. After the surveys the Implementing
Process Monitoring and
Company analyzes the collected data and proposes Improvement Customer Service Procedure Measurement
improvement recommendations based on the report
findings.Process Statistical
Effectiveness Analysis
Analysis Cable Accessories Sheath Repair and Cable Fault Location Training
Knowledge Training
Case
Study Delving Deep into the Mines to Connect with Customer Needs Key Performance
During the reporting period Valin received 41 complaints regarding products and services. Upon receiving complaints Valin immediately
The sales team goes beyond routine business communication and data analysis. By visiting customer operational sites including
underground environments they gain firsthand insight into actual needs and provide direct solutions to real-world challenges. This contacted the customers and arrived on-site within 24 hours for local cases and 48 hours for outside the province cases.hands-on approach ensures the Company effectively meets customers’ deeper requirements. Such proactive service reflects a profound
understanding of customer expectations and a relentless commitment to service excellence.Consistent Consistent
100%98.5%
The complaint Customer
resolution rate satisfaction
6364
Low
Rela
L to ivw ely
Low
Rela
L to ivw ely
High
vel
y
ati
Rel ighH
High
vel
y
Rel
ati
Hig
hNurturing Talent:
08 Empowering Growth through Mutual Employee Rights Protection
Development Employee Training and DevelopmentEmployee Care
Valin adheres to the "people-oriented" business philosophy committing to enhancing employees' professional capabilities. By organiz-
ing diversified training programs and skill competitions Valin fosters employee growth cares for their physical and mental well-being
and stimulates their vitality and team spirit achieving mutual benefits for both the company and its employees.
65 662024 Environmental Social and Governance Report Nurturing Talent: Empowering Growth through Mutual Development
Employee Rights Protection Workplace Equality and Diversity
Valin is committed to fostering an equal and fair workplace environment by strictly prohibiting any form of discrimination based on age
Standardized Employment gender religion nationality or ethnic identity. While meeting business operation needs the Company actively supports the employment
of special groups promotes social harmony and creates job opportunities for individuals with disabilities. Additionally Valin encourages
the recruitment of veterans and individuals from remote areas. In performance evaluations the Company adheres to a merit-based
Valin strictly complies with relevant laws and regulations such as the assessment system evaluating employees based on professional skills work performance and specific contributions.Key Performance
Labor Contract Law and has established a series of policies including
Valin also places great emphasis on respect for women recognizing their pivotal role in the workplace.Valin is dedicated to protecting
the Human Resource Management System Employee Recruitment and As of the end of the reporting period
the rights and benefits of female employees including marriage leave maternity leave paid breastfeeding leave and special insurance
Hiring Management Measures Labor Dispatch Employment Management The total number of employees: 617 for female staff providing comprehensive care and support for women in the workplace.Measures and Labor Outsourcing Employment Management Measures Labor contract signing rate: 100%
to standardize the employee recruitment process. During recruitment the Social insurance coverage rate was 100%.Company rigorously conducts background checks on candidates' basic
During the reporting period there were no incidents of child labor
information strictly prohibits the employment of child labor and forced or forced labor.labor and safeguards the legitimate rights and interests of minors. By Educational Level (persons) By Professional Composition of
Employees (persons)
Valin adopts a diversified recruitment strategy encompassing internal promotions social recruitment campus recruitment and 271 70
50
entrusted recruitment. By adhering to position-specific competency standards in the selection process it ensures the precise fulfillment 154
of talent requirements across all organizational levels. 1 416
19
Internal Promotions 62External Recruitment
Employee self-applications recommendations from
Campus recruitment social recruitment 30
outstanding performers and departmental referrals 161
PhD Master Bachelor Production personnel Technical personnel Sales personnel
Junior college Junior college and below
Entrusted Recruitment Financial personnel Administrative personnel
Collaborating with talent centers human resources service agencies and other intermediary organizations through formal
recruitment contracts
By Gender (persons) By Age (persons) By Employee Category
(persons)
482391533
57
135144
22
825
New Employee Onboarding Training New University Graduates Learning on the Production Front Line
Male Female 30 to 50 years 30 years and below Total number of junior level employees
Total number of junior management
50 years and above level employees
Key Performance T otal number of middle management
level employees
Valin has received an “A” rating in the Labor Security Compliance and Integrity Evaluation by the Xiangtan Human Resources and Social Total number of senior management
Security Bureau for five consecutive years. level employees
During the reporting period the Company hired 25 new employees including 19 through social recruitment and 6 through campus
recruitment.
67 682024 Environmental Social and Governance Report Nurturing Talent: Empowering Growth through Mutual Development
Case
Passion and Dedication Celebrating Women's Achievements Enhancing the Welfare SystemStudy
Valin prioritizes employee needs and keeps pace with market trends continuously enhancing the content and structure of its welfare
system. By refining this framework the Company strives to foster a more supportive working environment and provide ample development
Valin actively empowers female employees to excel in technological opportunities ensuring that every employee feels valued and cared for. This approach enables employees to contribute to the Company
innovation cost control sales management and other leadership while enjoying the benefits they rightfully deserve. Moreover Valin offers exceptional living and working conditions including single
roles. The Company is dedicated to breaking down gender barriers apartments complimentary meals and settling-in allowances for newly hired PhD master’s and bachelor’s degree holders according
and providing female employees with equal opportunities for to the established standards. Specifically we offer additional housing subsidies to PhD holders.career development and advancement based on their individual
skills and contributions.During the reporting period Valin hosted International Women's Statutory Benefits
Day celebrations and an awards ceremony establishing honorary
Five insurances and two funds
titles such as "March 8th Red Banner Holder" and "Outstanding Paid annual leave
Female Employee" to recognize the exceptional contributions of Other Benefits Statutory holidays
female employees in their respective roles.Meal allowance
This initiative not only fosters an environment where women can Housing subsidiesInternational Women's Day Awards Ceremony Mobile communication expense reimbursement (with limit)
showcase their talents and reach their full potential but also Transportation expense reimbursement (with limit)
Commercial supplementary insurance Special Benefitsreflects the Company's respect and appreciation for their achievements. Through these efforts Valin ensures equal development
Holiday benefits Employee major supplementary medical insurance
opportunities and offers a broad career platform for female employees. Women's Day care Group accident insurance
Newborn gift
Employee health check-up
Hospitalization condolence
Compensation and Benefits Birthday condolence
Compensation and Performance Management
Key Performance
Valin adheres to the principles of "budget management total amount control performance linkage and final settlement realization"
to establish a fair and reasonable compensation and benefits system supported by a scientifically evaluated performance appraisal During the reporting period the total welfare expenditure amounted to RMB 28.1482 million and the average number of
mechanism. Valin has formulated policies such as the Compensation and Benefits Regulations and the Total Wage Management paid annual leave days per employee was 7.1 days.Measures complying with national laws and regulations.To foster a fair and efficient working environment Valin implements a rigorous performance management system leveraging the
Balanced Scorecard (BSC) performance model and establishing a departmental performance evaluation framework. Performance
bonuses are allocated scientifically and flexibly based on employees' performance and value contributions. The evaluation process Democratic Management
comprehensively assesses work performance and outcomes ensuring that income is closely tied to contributions effectively boosting
employee enthusiasm and creativity while supporting the achievement of strategic and operational goals.Valin upholds a "people-oriented" management philosophy continuously enhancing a democratic management system.By establishing a labor union and a workers' congress the Company safeguards employees' rights to information
participation expression and supervision thereby advancing the institutionalization standardization and proceduralizing
During the reporting period the of democratic management while fostering democratic decision-making and a harmonious workforce.average salary increase at Valin was The Company is dedicated to creating effective channels for democratic management supervision and participation
5.7% ensuring that employees' voices are fully heard and respected. To swiftly address employee concerns and resolve labor
Basic Salary
Salary disputes Valin has established a labor dispute mediation committee composed of employee representatives and the
Structure labor union. Additionally the Company has developed normative documents including the Labor Dispute Resolution Process
and Emergency Response Plan and the Labor Dispute Acceptance and Mediation Procedures serving as an important bridge for
communication between both parties.Performance Salary
Key Performance
The Company regularly holds employee (representative) meetings with 100% of active employees being union members.During the reporting period 16 matters were approved achieving a 100% coverage rate of collective bargaining agreements.
69 702024 Environmental Social and Governance Report Nurturing Talent: Empowering Growth through Mutual Development
Management Training Skilled Talent Cultivation
Valin has established diversified employee communication platforms Development Program for New Graduate Employees
New Employee Development
including anonymous feedback software regular employee surveys "Sword Sharpening Camp" Youth Growth Program
employee forums and staff representative meetings to gather
employee suggestions for improvement.To gain deeper insights into employees' genuine thoughts and needs Management Training Position Management Book Project
the Company conducts regular employee satisfaction surveys and
analyzes the results to adjust and optimize employee management
strategies. “Star Rating” Training Mechanism
Skilled Talent Cultivation Conduct Independent Certification of Vocational Skill Levels
Organize Vocational Skill Selection and Competitions
The Year-End Work Conference and the 7th Session of the
Fourth Employees' Representative Conference of Valin
Key Performance
Key Performance During the reporting period the annual training expenditure across all business lines amounted to RMB 2.663 million.
4 A total of 520 training sessions were conducted spanning 976 training hours with 11417 participants and a cumulative total of During the reporting period the Company organized employee forums.
With full participation in the employee satisfaction survey the results showed a 100% satisfaction rate and 100% employee engagement. 27550 training hours. The number of training sessions and participants increased by more than 35% year-on-year.Valin reported zero labor dispute cases.Career Development
Employee Training and Development Valin adheres to the principle of developing talent through practical experience and has established a comprehensive talent development
system. By creating abundant career development opportunities and smooth promotion pathways the Company effectively boosts
employee motivation and fosters collaborative growth. Clear responsibilities and tasks are defined for each position. Based on the nature
Employee Training and characteristics of the roles career development paths are divided into five series with levels assessed according to qualification
requirements and job criteria. Each career development level consists of 2-4 career development tiers.Employee training is vital for the long-term growth of the Company personal development of employees and enhancement of overall Management Series Technical Business Operational Marketing
competitiveness. Valin places a high priority on training and has established a comprehensive employee training and development
management system. This system covers various aspects including the cultivation of new employees development of skilled professionals Company Leadership Senior Principal Expert
and training of management personnel ensuring employees acquire the necessary skills and knowledge at different career stages. (Principal Position)
To systematize internal training the Company has implemented the Training Management Measures which define training content Company Leadership (Deputy
Position) Principal Expert
implementation procedures funding allocation and effect evaluation methods. This approach ensures that training is conducted in a
planned targeted and phased manner meeting the Company’s talent development needs and ensuring workforce stability. Department/Factory Director Senior Principal Engineer Principal Economist Principal Technician Marketing Director
Assistant to Department/ Senior Management
Factory Director Principal Engineer Specialist Expert Technician Regional General Manager
Senior Technician
Supervisor Chief Engineer Director of Management Regional Deputy General Director of Accounting Four-Star Host Machine Operator Manager
Professional Management Technician
Assistant Supervisor Professional Engineer Specialist Three-Star Host Machine District Manager
Accountant Operator
Intermediate Worker
Senior Clerk Engineer Management Specialist One-Star and Two-Star Host Senior Manager
Machine Operator
Clerk Technician Administrator Junior Worker Business Manager
Trainee Trainee Trainee Trainee Trainee
Opening Ceremony of the "Sword Sharpening Camp" Youth Program Special Lecture on "High-Quality
Communication"
71 722024 Environmental Social and Governance Report Nurturing Talent: Empowering Growth through Mutual Development
Case
Study Comprehensive Personnel Evaluation Conference
The Company has implemented a robust personnel evaluation system
that assesses employees across multiple dimensions including work
performance attitude and team collaboration. Management conducts
objective evaluations based on employees' daily performance while
peer evaluations ensure fairness and transparency. The results of theseevaluations serve as a crucial reference for promotions rewards and 2024 New Employees Talent Show Corporate Fitness Center “Health Check-up Campaign inEnterprises” Free Clinic Activity
performance improvements effectively boosting employee enthusiasm
and creativity.Employee Care
Employee Happiness
Extending Greetings to Employees During the Spring Festival
Valin adheres to a people-oriented philosophy and has formulated a comprehensive Employee Care Program which covers multiple
dimensions including career festivals retirement health lifestyle and family comprehensively enhancing employees' sense of
belonging happiness and satisfaction. Key Performance
During the reporting period Valin conducted a total of 37 condolence activities assisting 27 employees in difficulty.Valin organizes welcome ceremonies onboarding training mentorship initiation ceremonies
and talent showcases for new employees to help them quickly integrate into corporate culture
Employee Care and work environment. Cultural Activities
Valin provides employees with holiday benefits birthday gifts free accommodation
and other life benefits. Additionally the Company has established an "Employee Home" To bolster employee' feelings of belonging Valin has
equipped with facilities such as such as a gym chess room billiards room and reading thoughtfully organized a rich array of cultural activities such
Life Care room to enrich employees' leisure time. as the Lantern Festival Celebration Youth Day (May 4th) events
and Employee Fun Sports Meetings which have strengthened
internal cohesion and centripetal force within the enterprise.Valin presents honorary retirement gifts to retiring employees and invites them to attend Additionally the Company has further enriched employees'
major events such as the annual meeting and anniversary celebrations allowing them to feel leisure cultural life by establishing facilities such as employee
Retirement Care the warmth and care of the Company. reading clubs gyms and basketball courts.Quality Development Activity on Youth Day (May 4th)
Valin regularly organizes free health check-ups for employees who have been with the
Company for over a year and provide benefits such as illness condolences heatstroke
Health Care prevention in summer and cold protection in winter.Valin purchases home property insurance for employees organizes corporate family visit
days conducts family situation surveys and provides condolences and financial assistance to
Family Care employees facing family hardships.Reading Club Activity Employee Fun Sports Meeting Lantern Festival Celebration
73 74Safeguarding with
09 Red Lines: Building Long-Term Well-being
Together Safety ProductionWorkforce Well-being
Safety production and employee well-being serve as the foundation of corporate development. Valin upholds workplace safety
and regulatory compliance by reinforcing safety management practices implementing risk identification and control measures
strengthening emergency response systems and fostering a culture of safety. Meanwhile the Company actively promotes employee
health safeguards employee well-being and enhances overall operational efficiency.
75 762024 Environmental Social and Governance Report Safeguarding with Red Lines: Building Long-Term Well-being Together
Safety Production Objectives Indicators 2024 Target Achievement Status
Prevention and Control
of Production Safety Zero fire or explosion incidents zero fatalities zero severe injuries and minor injury rate controlled below 3‰ Achieved
Work Safety and Compliance Accidents
Equipment Accident
Control Zero major equipment injuries leaks or pollution incidents AchievedValin prioritizes fostering a safety-first culture adhering to the principle
of "safety first prevention foremost and comprehensive management."
Guided by the philosophy of "balancing prevention with emergency
response and integrating routine and exceptional conditions" the Company Protecting Employee Zero occupational disease cases timely monitoring of workplace hazard factors
职业健康安全管理体系认证证书 Occupational Health and 100% health check-up rate for employees exposed to occupational hazards
Achieved
enforces an occupational health and safety policy centered on "caring for
证书编号：00124S31659R4M/4300
employees and contributing to society". Valin has established a robust 兹证明湖南华菱线缆股份有限公司
safety management framework led by the Safety Production Leadership 统一信用代码:914303007483865809
中国湖南省湘潭市高新区建设南路 1号 Employee Safety 100% certification rate for special operations personnel and special equipment
Group chaired by the General Manager. The Safety and Environmental Education operators and 100% completion rate of three-level safety education for new Achieved
职业健康安全管理体系符合标准: employees
Protection Department acts as the supervisory body responsible for GB/T 45001-2020 / ISO 45001:2018
通过认证范围如下：
executing and overseeing all aspects of safety management. 资质范围内电线电缆产品的生产及相关管理活动
Valin emphasizes standardization in daily safety operations safe
practices and systematic management. In the reporting year Valin 首次发证日期：2012年6月26日 本次发证日期：2024年5月28日 有效期至：2027年6月18日
achieved ISO 45001:2015 Occupational Health and Safety Management 在一个监督周期后，本证书必须与CQC签发的监督审核合格通知书合并使用方可有效。查询证书有效状态请登陆www.cqc.com.cn。 Key Performance本证书信息可在国家认证认可监督管理委员会公示的网站（www.cnca.gov.cn）上查询System certification and successfully passed the secondary-level safety During the reporting period the signing rate for both the Safety Production Responsibility Agreements and Safety Production
production standardization audit.Commitments reached 100%.During the reporting period Valin invested RMB 6.498 million in safety production.Institutional Safeguards ISO 45001:2015 Certification
Supervision and Assessment
Valin places a strong emphasis on occupational safety and health. To standardize safety management processes clarify the responsibilities
of management at all levels and ensure continuous improvement in safety production and environmental protection during operations Valin integrates occupational health and safety objectives with the
the Company has established the Occupational Safety and Health Management Manual effectively safeguarding employee safety and performance indicators of each unit. By establishing an assessment
well-being. plan through relevant policies the Company developed the Report
During the reporting period the Company actively advanced the development of secondary-level safety production standardization on Setting Annual Work Safety Target Rewards for Each Unit of
strengthened the standardization of safety production systems and revised and improved safety production regulations and documents the Company in 2024 during the year. Additionally the Company
such as the Safety Production Assessment System and Safety Production Prohibitions. Additionally 16 new management systems closely monitors the implementation plans and progress toward
including the Safety Production Objectives System were introduced. The Company also prioritized the standardization of operational these objectives to ensure the fulfillment of safety responsibilities
procedures revising and improving 27 Safety Operation Procedures and compiling Safety Standardization Manuals for seven major across all units.processes including extrusion cabling and braiding.Annual Safety Work Conference
Indicators and Objectives Key Performance
The Company has established key occupational health and safety indicators and objectives. To ensure the achievement of these targets
the General Manager signed Safety Production Responsibility Agreements with the heads of each factory and department. They in turn During the reporting period there were 0 incidents of serious injury or worse 0 minor injury incidents.signed Safety Production Commitments with employees ensuring the effective implementation and continuous improvement of safety
production measures.
77 782024 Environmental Social and Governance Report Safeguarding with Red Lines: Building Long-Term Well-being Together
Safety Risk Identification and Control Key Performance
During the reporting period Valin carried out a total of 32 safety production inspections.Hazard Identification and Inspection
Valin has established a comprehensive hazard identification and management system which included the development of a hazard Emergency Management
identification project list and the clarification of specific requirements for the organization and implementation of hazard identification.During the reporting period the Company conducted regular weekly hazard inspections during which responsible personnel conducted
comprehensive assessments of the hazard location description and severity level. Corresponding corrective measures and deadlines
were formulated based on the identified hazards and follow-up inspections were conducted within the stipulated time frame. Additionally
the Company maintained a detailed hazard identification and resolution ledger documenting each inspection and rectification process Emergency Response Plan
to facilitate future reference and tracking.To strengthen safety production management Valin implemented a grid-based safety management approach during the reporting To ensure a swift and effective response to potential occupational health and safety hazards or emergencies prevent the escalation of
period adhering to the principles of "regional management hierarchical responsibility comprehensive coverage and accountability accidents and minimize casualties and property damage the Company has developed a comprehensive Emergency Response Plan for
to individuals". By integrating the existing organizational structure and job responsibilities the Company assigned different levels of Work-Related Safety Accidents.personnel to oversee the management of each grid. In accordance with the principle of territorial management it defined grids assigned
personnel and allocated responsibilities ensuring that safety responsibilities for each area were clearly assigned to every employee.Emergency Drills
Key Performance Valin is committed to enhancing its emergency management system through well-structured emergency drills. These drills aim to assess
the effectiveness and operability of the emergency response plan while improving employees' emergency awareness and teamwork.During the reporting period Valin identified a total of 4179 potential safety risks achieving a 100% completion rate for the rectification Covering a range of scenarios from natural disasters to production accidents these activities help ensure that the Company can respond
of safety incident hazards.promptly and efficiently to mitigate losses during real crises.Safety Inspections Case
Study Emergency Drills for Various Scenarios
To identify potential safety risks and prevent accidents Valin has developed a comprehensive inspection plan detailing the content
of safety inspections inspection targets and responsible personnel. Each month the Company conducts extensive safety production
inspections aimed at identifying safety risks and uncovering potential hazards. These inspections are led by the primary and deputy To boost workshop employees' safety awareness and risk perception as well as strengthen their command rapid response emergency
responsible persons who oversee the process address hazards on-site conduct behavioral safety observations and lead discussions handling and coordination skills Valin organized emergency drills for various scenarios based on actual production conditions. These
to enhance safety awareness. scenarios include "burn injuries from high-temperature extruder heads" "injuries from being entangled or wrapped" "crush injuries
from falling cones" "mechanical injuries from tractors and wire clamps" "injuries from copper rod payout breaks" "injuries from wire
pressing in wire take-ups" "impact and collision injuries from lower wire spools" "injuries from falling spools during upper spooling
processes" "injuries from flying objects during rotation" "electric shock injuries" and "fires".Conducting Safety Inspections
79 802024 Environmental Social and Governance Report Safeguarding with Red Lines: Building Long-Term Well-being Together
Case Case
Study Fire Emergency Drill at the Canteen Study Enhanced Safety Management in "Safe Production Month"
To enhance employees' awareness of fire safety the Administrative Departments conducted a fire emergency drill at the canteen. During Safe Production Month various departments capitalized on the standardization of safety production processes. By utilizing
Security personnel explained in simple and easy-to-understand terms the prevention of fires methods for extinguishing initial fires operational procedures red line lists safety prohibitions grid management and other regulatory frameworks the Company conducted
escape techniques in fire scenes and the use of fire-fighting equipment. Meanwhile they analyzed the causes and severe consequences comprehensive safety education training and examinations for all employees.of fires based on typical fire cases that have occurred in recent years urging employees to remain vigilant at all times and strengthen
their fire safety awareness.Case
Study “Safe Home Visit” Campaign
To further strengthen safety management Valin launched the "Safe Home Visit" campaign. Through home visits and casual conversations
the Company improved communication gained insights into employees' family situations and conveyed the commitment to employee
safety. This initiative not only addressed employee and family concerns but also reinforced safety awareness among employees.Key Performance
During the reporting period Valin conducted 9 emergency drills with a cumulative participation of 257 person-times.Construction of Safety Culture
Safety Training
Valin formulates an annual plan for safety production education training and emergency drills specifying the training hours requirements
for drills training content as well as the implementation of the training and drill plans.
81 822024 Environmental Social and Governance Report Safeguarding with Red Lines: Building Long-Term Well-being Together
Case
Study Online Safety Knowledge Competition Workforce Well-being
During the reporting period Valin organized various safety knowledge competitions with diverse formats and rich content providing Valin strictly complies with legal requirements such as the Law on the Prevention and Control of Occupational Diseases and the Work
employees with more opportunities and platforms to learn safety knowledge and enhance their safety literacy creating a safe and Safety Law as well as regulations like the Occupational Hazard Warning Signs and Technical Specifications for Occupational Health Sur-
harmonious corporate environment. The competition covered multiple areas including production safety life safety and fire safety veillance and has prepared an Occupational Hazard Status Evaluation Report to conduct occupational hazard factor testing in factories
comprehensively testing participants' safety knowledge reserves and practical application abilities. involving occupational hazard factors. Based on the test results job transfers are made. Starting from the needs of employees the
Company continuously strengthens occupational protection measures by equipping relevant equipment conducting equipment use
training organizing employee physical examinations and detecting occupational hazard factors to safeguard employees' physical and
mental health. The Company views occupational disease prevention as a core responsibility and occupational health examinations as
a vital support mechanism. Regular health checks are conducted for workers exposed to occupational hazards with personal health
records established. The Company actively addresses issues based on examination results and conducts follow-ups to prevent the
occurrence of occupational diseases.Dust and Poison Prevention Shock Absorption and Noise Heatstroke Prevention
Measures: Reduction Measures: Measures:
Conduct timely ventilation and Use noise reduction equipment Use cooling equipment
air exchange in workshops takeshock absorption measures operatorskeepaway from heat
wear noise-canceling earplugs sourcesprovide heatstroke
prevention medications
Case Safety Speech Contest with the Theme of "Everyone Talks About Safety Everyone
Study Knows How to Respond - Keeping the Safe Life Passageway Unblocked"
To enhance employees’ safety awareness and strengthen their ability to handle emergencies Valin held a safety speech contest with the
theme of “Everyone Talks About Safety Everyone Knows How to Respond - Keeping the Safe Life Passageway Unblocked” during the Safe
Production Month. The event attracted over a hundred participants including company executives managers and factory representa-
tives. This initiative fostered a strong safety culture and strengthened emergency response skills across the organization.
100%100%
Pre-employment Annual physical examination
physical examination
100%100%
Gynecological examination Occupational health examination
Key Performance
During the reporting period Valin organized 59 safety training and education sessions with a cumulative participation of over 1300
individuals
The investment in work-related injury insurance for employees reached RMB 6.667 million achieving a 100% coverage rate for
work-related injury insurance among employees
83 84Sustainable Actions for
10 Rural Revitalization: Remaining Faithful to
Our Mission Rural RevitalizationSocial Welfare
Valin upholds a strong sense of responsibility in implementing social welfare projects while fully supporting the national rural
revitalization strategy. By serving as a bridge for public welfare the Company delivers warmth and hope to impoverished areas
contributes to social equity and justice and fosters a more harmonious and stable social development environment.
85 862024 Environmental Social and Governance Report Sustainable Actions for Rural Revitalization: Remaining Faithful to Our Mission
Rural Revitalization Case Study Supporting Individuals with Disabilities – Building an Inclusive and Respectful Society
Valin is committed to offering comprehensive support to individuals with disabilities. Through condolence activities the Company
The Company closely aligns with national policies actively participates in rural development strategically allocates resources and provides material assistance and addresses practical challenges in daily life. These actions not only deliver substantial help but also
supports rural revitalization initiatives. By promoting economic and cultural diversity and fostering social harmony Valin makes foster social equality and respect helping individuals with disabilities build confidence and better integrate into society.significant contributions to the comprehensive revitalization of rural areas.Case Centralized Procurement and Distribution Activities for Agricultural and
Study Sideline Products at Paired Assistance Site
To further advance rural revitalization the labor union of Valin launched a targeted consumption assistance program purchasing aid
supplies for all union members. This initiative not only enhances employee well-being but also strengthens the achievements of poverty
alleviation in the assisted villages. Additionally Valin plays a crucial role in expanding the village's collective industries and increasing
villagers' income levels.Case
Study Volunteer Services for Flood Prevention
In response to the Xiang River flood situation Valin under the guidance of the flood prevention team strategically deployed security team
members and plant employees to patrol and safeguard the embankment. Over six days and 24 hours the team successfully completed
more than 60 shifts ensuring the safety and stability of the embankment through continuous monitoring and dedication.Social Welfare
Case
Study Love-driven Education Assistance Illuminating the Path for Youth in Need
Valin is dedicated to supporting disadvantaged youth by embedding the philosophy of "Caring starts with small actions spreading love
and warming hearts" in every educational assistance activity. Valin actively fulfills its role as a model and leader among state-owned
enterprises. Valin provides support through establishing special scholarships donating essential learning materials and offering
personalized psychological counseling and growth mentoring. These efforts not only illuminate the path to knowledge for underprivileged
youth but also convey deep societal care and warmth.
87 88E rnv eir tonmental Chap
Ecological Stewardship:
11 Pioneering Green and Intelligent Manufacturing
Environmental Management
Responding to Emergency Environmental Risks
In the context of global sustainable development environmental management has emerged as a vital pathway for corporate growth.By establishing and enhancing its environmental management system and developing effective strategies to address unforeseen
environmental risks Valin improves its environmental performance and market competitiveness. This approach not only achieves
a win-win scenario for economic benefits and environmental protection but also contributes to the creation of a greener and more
sustainable future.
89 902024 Environmental Social and Governance Report Ecological Stewardship: Pioneering Green and Intelligent Manufacturing
Environmental Management Recognized as a Green Factory in the Third Batch of Hunan Province
NO. Reporting Unit Third-party Evaluation Agency Name
Valin actively embraces the national "Dual Carbon" strategy adhering to the principle of "promoting energy conservation and consumption
reduction creating a green environment ensuring low-toxicity and harmless products and achieving continuous improvement." The
Company integrates low-carbon concepts and environmental protection awareness into all aspects of production operations and Green Factories (64)
collaboration with stakeholders effectively putting them into practice. Valin strictly complies with environmental protection laws
and regulations such as the Environmental Protection Law of the People's Republic of China and has established systems like the
40 Hunan BoschKang Traditional Chinese Medicine Co. Ltd. Hunan Boyou Energy Technology Co. Ltd.
Environmental and Occupational Safety Management Manual to ensure the operations meet environmental protection standards.
41 Hunan Bangfute New Material Technology Co. Ltd. Hunan Zhongrui Environmental Technology Consulting Services Co. Ltd.
Environmental Governance Structure
42 Hunan Valin Wire & Cable Co. Ltd. Hunan Boyou Energy Technology Co. Ltd.
Valin has implemented an environmental management responsibility mechanism with the General Manager serving as the primary
responsible party and the Production Safety and Environmental Protection Department acting as the main management group. The 43 Jianghua Mingyihu Intelligent Technology Co. Ltd. Hunan Kelinhante Environmental Technology Co. Ltd.Environmental Target Responsibility System clarifies the environmental protection responsibilities of leaders at all levels plant
management personnel and functional departments ensuring that accountability extends to every employee. 44 Hunan Denong Animal Husbandry Group Co. Ltd. Hunan Zhongrui Environmental Technology Consulting Services Co. Ltd.The Production Safety Management Department oversees environmental management while other departments assist in executing
environmental initiatives. Additionally the Company has established Environmental Management Prohibitions which outline forbidden
actions and corresponding penalties. Through regular environmental performance evaluations Valin enforces reward recognition and Valin is recognized as a Green Factory in the third batch of Hunan Province
disciplinary mechanisms to encourage employee participation in environmental protection efforts.Environmental Management System Responding to Emergency
Valin strictly adheres to the ISO 14001 standards and relevant Environmental Risks
national laws and regulations continuously improving the
environmental management system. With the goal of enhancing
environmental risk prevention control and emergency 环境管理体系认证证书
证书编号：00124E32090R6M/4300
management systems the Company actively conducts safety 兹证明
湖南华菱线缆股份有限公司 Environmental Risk Management Mechanism
统一信用代码:914303007483865809
and environmental protection activities fostering a strong 中国湖南省湘潭市高新区建设南路 1 号
环境管理体系符合标准：
culture of safety and environmental awareness and significantly GB/T 24001-2016 / ISO 14001:2015
通过认证范围如下：
advancing the development of safety and environmental 资质范围内电线电缆产品的生产及相关管理活动 Valin continuously improves the environmental risk control mechanism in accordance with national laws and regulations such as the
protection culture. As of the end of the reporting period Valin Environmental Protection Law of the People’s Republic of China the Emergency Management Measures for Sudden Environmental
首次发证日期：2006年11月1日本次发证日期：2024年5月28日有效期至：2027年6月18日
has obtained the ISO 14001:2015 Environmental Management 在一个监督周期后，本证书必须与CQC签发的监督审核合格通知书合并使用方可有效。查询证书有效状态请登陆www.cqc.com.cn。 本证书信息可在国家认证认可监督管理委员会公示的网站（www.cnca.gov.cn）上查询 Events and the Risk Classification Methods for Emergency Environmental Events in Enterprises. By taking full consideration of bothSystem certification. internal and external factors as well as the needs and expectations of identified stakeholders the Company identifies environmental
risks and opportunities. Valin has formulated and implemented the Control Procedures for Identification and Evaluation of Environmental
Valin prioritizes greening and beautification of the factory Factors and the Control Procedures for Hazard Identification and Risk Assessment establishing a comprehensive environmental risk
environment considering the creation of a "Green Factory" as management mechanism. These procedures define the responsibilities authorities and implementation processes for identifying and
one of its core strategies. Since 2019 the Company has been
ISO 14001:2015 Green Factory Evaluation
awarded the title of "Hunan Provincial Green Factory" and has evaluating environmental factors and hazards as well as the criteria methods and records of evaluations ensuring communication of Environmental Management and Certification
continued to upgrade its environmental protection measures System Certification significant environmental factors and major hazards across all levels and functions.and implement green production practices. The Company has
successfully passed the Green Factory Evaluation System
Certification and has been recognized as a Green Factory in the Third Batch of Hunan Province.Key Performance
During the reporting period the total investment in environmental protection amounted to approximately
RMB 4.89 million reflecting a 22.89% increase compared to 2023.Valin maintained a 100% compliance rate with no violations of environmental laws and regulations.There were zero incidents of pollution accidents or sudden environmental impact events.
91 922024 Environmental Social and Governance Report Ecological Stewardship: Pioneering Green and Intelligent Manufacturing
Environmental Risk Management Environmental Awareness Promotion
To ensure more precise and comprehensive risk management of sudden environmental incidents Valin conducts a comprehensive To enhance the emergency response capabilities of all employees Valin regularly organizes training and drills for relevant personnel
assessment and analysis of risks related to sudden atmospheric environmental events and sudden water environmental events with from various departments. These initiatives aim to achieve early risk identification early warning and early intervention effectively
clear classification of risk levels. Moreover the Company formulates the Environmental Emergency Response Plan based on identified preventing environmental incidents and curbing the spread of environmental risks.environmental risks actively ensuring that all emergency measures can be initiated and executed quickly efficiently and orderly in the
event of sudden environmental pollution incidents thereby minimizing the environmental damage caused by pollution accidents.The Emergency Command Center is responsible for the unified command and coordination of actions across all departments and
employees during emergency responses. Under the center emergency working groups are established to promptly activate the Case
Study Emergency Drill for Emulsion Leakage at the Wire Plantemergency response plan clarify corresponding disposal measures and ensure the stability and safety of company operations.To efficiently handle sudden emulsion leakage incidents prevent significant economic and property losses from submerged equipment
due to rising liquid levels and avoid severe water and soil pollution Valin conducted an emergency drill for emulsion leakage at the wire
plant. This drill improved employees' emergency response and protective capabilities in the event of emulsion leakage.Commander
Communication and Security and Emergency Rescue Medical Assistance Logistics Support Accident Handling
Liaison Group Evacuation Group Group Group Group Group
Environmental Emergency Organization System
Case
Study Training on Environmental and Occupational Health Laws and Regulations
To enhance employees' environmental protection awareness
and occupational health literacy Valin organized a training
session on environmental and occupational health laws and
regulations. The training provided an in-depth understanding
of relevant national laws and regulations clarified employees'
rights and obligations in daily work and imparted necessary
protective knowledge and skills. This initiative effectively
prevents occupational disease hazards reduces environmental
pollution risks and fosters a healthy safe and green working
environment.
93 94Deepening Low-Carbon
12 Efforts: Preserving Energy UtilizationClean Waters and Green Addressing Climate ChangePollutant Emissions
Mountains Waste DisposalWater Resource Management
In response to the escalating global environmental challenges energy conservation and emission reduction are pivotal to corporate
social responsibility and sustainable development. By optimizing energy utilization actively combating climate change controlling
pollutant emissions managing waste responsibly and stewarding water resources Valin strives to achieve energy-saving and
emission-reduction targets reduce operational costs enhance competitiveness and contribute to environmental protection and
ecological civilization.
95 962024 Environmental Social and Governance Report Deepening Low-Carbon Efforts: Preserving Clean Waters and Green Mountains
Energy Utilization
Energy ManagementValin consistently adheres to the corporate spirit of “Building Excellence through High-Quality Products Winning with High-End Solutions Upholding Integrity as a State-OwnedEnterprise Demonstrating Character to the World” to construct a resource-efficientand environmentally friendly enterprise. By adopting the energy policy of “StandardizedOperation Optimized Energy Use High Efficiency and Green Environmental Protection”
the Company actively promotes the effective operation of the energy management system.In strict accordance with ISO 50001 national energy management system requirements
and relevant laws and regulations Valin has formulated the Energy Management Manual
which covers a series of energy management systems including energy planning
procurement production process management and performance evaluation significantly Green Electricity Certificate Transaction Vouchers
improving energy management levels. As of the end of the reporting period Valin has
obtained ISO 50001 Energy Management System certification.ISO50001 Energy Management
Energy Monitoring System Certification Case
Study Installation of PV Canopies in Employee Parking Lots
The Company has established and maintained the Energy Statistics Management Procedures and Energy System Process Monitoring
and Evaluation Procedures to monitor measure analyze and assess system operations and key characteristics influencing energy In alignment with the green and low-carbon development
performance. principle Valin has installed PV canopies in employee
parking lots to enhance the parking experience. These
Energy-Saving Measures canopies provide shade and protection from rain effectively lowering vehicle interior temperatures and
extending vehicle lifespan. Moreover the PV power
generation system harnesses solar energy to produce
electricity thereby supplying clean energy reducing
carbon emissions and supporting the energy-saving Installation of PV Canopies in Employee Parking LotsThe heating method of the extruder equipment was upgraded from the original cast aluminum heater to a far-infrared energy-saving
and emission-reduction goals.heater achieving an energy-saving rate of 51%. This results in an annual electricity saving of 304400 kWh reducing
electricity costs by RMB 258700 per year and saving the equivalent of 12.30 tons of standard coal (the). The ambient Case
temperature decreased from 57°C to 43°C. Study Rooftop Distributed PV Power Generation Project
Diesel forklifts were replaced with electric forklifts eliminating exhaust emissions and reducing noise. In collaboration with Hunan Tanzhou Renewable Energy Co. Ltd. Valin
developed a rooftop distributed PV power generation project with a total
installed capacity of 1.96 MW which was successfully grid-connectedby the end of 2023. The project operates under the “self-generation andself-consumption with surplus electricity fed into the grid” model. The PV
The DC motors in the traction equipment were replaced with permanent magnet servo motors achieving an overall energy-saving
power station spans approximately 15700 square meters of rooftop space
rate of 30%. while the PV carport covers around 4240 square meters bringing the total
installed capacity to 2.4935 MW.Looking ahead Valin aims to expand its distributed PV power generation
1276 capacity to 5.5 MW. Upon completion the annual electricity generation In compliance with national policies the Company purchased MWh of green electricity in the first half of the year and Rooftop Distributed PV Power Generation is projected to reach 4200 MWh. Over a 25-year lifespan the cumulative
1600 MWh in the second half. electricity generation is estimated to reach 100000 MWh.
97 982024 Environmental Social and Governance Report Deepening Low-Carbon Efforts: Preserving Clean Waters and Green Mountains
Case
Study Digital Energy-saving Management and Control Pollutant Emissions
Valin has implemented an intelligent operation and maintenance management platform that integrates automated power data analysis
and cloud-based expert diagnostics. This platform significantly enhances electricity cost management precision optimizes power
quality management and strengthens data reporting and analytical capabilities. By identifying the most efficient energy-saving solutions Wastewater Management
tailored to actual conditions Valin supports energy conservation consumption reduction and sustainable development.To uphold the commitment to water resource protection Valin has established a comprehensive wastewater management system and
framework in accordance with relevant laws and regulations including the Environmental Protection Law of the People's Republic of
Key Performance China and the Water Pollution Prevention and Control Law of the People's Republic of China tailored to the actual operational condition
implementing groundwater pollution prevention measures and effectively manages domestic sewage to safeguard the environment and
Valin consumed 117.19 m3 of natural gas 33671.04 MWh of purchased electricity and generating mitigate water pollution risks.To ensure the sustainable use of water resources Valin has identified the primary sources of wastewater as cooling circulation pool water
1546.18 MWh from solar photovoltaic systems. Total energy consumption amounted to 5498.63 tce. domestic sewage from the plant area and rainwater. For the diverse wastewater streams the Company has adopted targeted treatment
measures and implemented continuous monitoring to ensure compliance with environmental standards and minimize ecological impact.Addressing Climate Change Waste Gas Management
Valin actively responds to the national "Dual Carbon" goals with a strong sense of responsibility strives to contribute to green and low-
carbon development ecological environmental protection and the promotion of sustainable development. Through the implementation To achieve sustainable operations and environmental protection Valin conducted a thorough assessment of atmospheric environmental
of a series of energy-saving and emission-reduction technological transformation projects the Company has achieved a relatively low risks based on scientific indicators considering its industry characteristics and operational context. The Company identified primary
product carbon footprint. Furthermore to align with the global trend of climate change and fulfill the commitment to the national pollutants such as extrusion waste gas enameled organic exhaust fluorine plastic wrapping and extrusion waste gas rubber mixing
"Carbon Neutrality and Carbon Peak" targets as well as its corporate environmental responsibilities the Company is pursuing its long- dust vulcanized organic waste gas boiler gas exhaust welding fumes ink waste gas and kitchen oil fume. Six exhaust gas treatment
term strategic goals of "green transformation" and "green development". To this end Valin has obtained triple certification in carbon facilities were installed across the military products factory control cable factory plastic cable factory crosslinking factory and rubber
neutrality carbon footprint and greenhouse gas inventory. cable factory. Real-time monitoring and control of atmospheric quality along with emergency response plans help minimize the impact
of atmospheric environmental risks. The treatment facilities employ UV photocatalytic oxidation devices activated carbon adsorption
catalytic combustion and other methods to treat organic waste gas from the injection molding workshop. As a result exhaust gas
emission indicators significantly surpass national standards.Case
Study Low-Nitrogen Transformation of Gas Boilers
In response to the requirements of the
Ecological Environment Bureau's "Blue Sky
Defense Campaign" Valin completed the
low-nitrogen transformation of a 4-ton/hour
gas boiler during the reporting period. The
equipment recovers a portion of the flue gas
Carbon Neutrality Certification Carbon Footprint Certification Carbon Verification Certification from the middle of the flue mixes the recovered
flue gas with combustion air and then
introduces it into the furnace for combustion.By altering the overall temperature distribution
Key Performance of the flame the equipment reduces the heat radiation and conduction efficiency within the furnace. The low-NOx combustion technology
In 2024 the total greenhouse gas emissions amounted to 21783.76 tCO e including 2581.17 tCO e from addresses the issues associated with traditional burners such as high and concentrated peak flame temperatures uneven temperature 2 2 distribution within the furnace and difficulties in reducing thermal NOx emissions. Through testing the emission indicators demonstrate
Scope 1 greenhouse gas emissions and 19202.59 tCO2e Scope 2 greenhouse gas emissions. that by utilizing Flue Gas Recirculation (FGR) technology nitrogen oxide (NOx) emissions can be consistently controlled below 30 mg/
Nm3 and carbon monoxide (CO) emissions can be reduced to below 10 ppm.
99 1002024 Environmental Social and Governance Report Deepening Low-Carbon Efforts: Preserving Clean Waters and Green Mountains
Noise Management Key Performance
To ensure the quality of the sound environment within the plant area and its surrounding areas Valin has formulated the Noise
Management System in accordance with relevant laws and regulations including the Environmental Protection Law of the People's During the reporting period Valin transferred a total of 53.5 tons of hazardous waste.Republic of China the Occupational Disease Prevention and Control Law of the People's Republic of China and the Emission Standards
for Industrial Enterprises Noise at Boundary ensuring that the noise generated complies with national environmental noise emission
standards.Valin has implemented the following measures to effectively control major noise sources during production and operational activities Hazardous Chemical Management
manage operational noise and boundary noise and further mitigate the impact of noise on employees and residents surrounding the
plant area:
Vehicle horn All windows in the area are The workshop gates Regular inspections are conducted on the Valin attaches great importance to the management of hazardous chemicals actively preventing and mitigating environmental pollution
honking is equipped with double-glazed are treated with integrity of the equipment to ensure that the caused by leaks during the production storage handling and use of hazardous chemicals. In the event of a hazardous chemical leak
prohibited in the soundproof windows to reduce soundproof sealing. equipment noise complies with standards
area. the impact of production noise during operation. the Company is capable of taking swift and effective response measures. Based on the actual situation relevant systems such as the
on the vicinity. Hazardous Chemical Management System and the Regulations on the Safe Management of Hazardous Chemicals have been formulated
to enhance the capability of ensuring safe production.
02040608
Water Resource Management
01030507
Conducting multiple To enhance water resource management Valin adheres to the dual-control targets for total water consumption and intensity outlined
Temporary construction units are Regular inspections are noise level detection and For individual equipment that
th
forbidden to use high-noise equipment conducted on the integrity recordings after 10:00 pm generates significant noise during in the "14 Five-Year Plan" by the National Development and Reform Commission. In strict compliance with the Environmental Protec-
before 20:00 to 07:00. of the equipment to ensure every night to dynamically operation preventive measures tion Law and the Water Law of the People's Republic of China the Company has developed comprehensive internal water management
that the equipment noise monitor the sounds such as installing soundproof
complies with standards produced during production. covers are implemented. regulations within the production facilities as specified in the Energy Management Regulations for the Rubber Cable Factory. These
during operation. regulations define employee responsibilities and enforce a reward-and-penalty system to promote effective water management.Key Performance
Currently Valin operates seven cooling water circulation pools enabling the reuse of cooling water after its initial application. As a result
D uring the reporting period Valin engaged a professional third-party testing agency to conduct noise testing at the plant boundary over 90% of production water is recycled with zero discharge. Additionally the Company has established annual water consumption
confirming that the Company’s plant boundary noise complies with environmental protection requirements. All monitoring targets for key raw materials such as copper per ton successfully meeting its 2024 goal and aiming for a 5% reduction in water
outcomes met the Emission Standards for Industrial Enterprises Noise at Boundary achieving a 100% compliance rate. consumption by 2025 compared to 2024.Waste Disposal Key Performance
In 2024 the volume of tap water consumption was 153527 tons recycled water usage was 839800 tons.Waste Management
Valin adheres to the management principles of
"polluter pays" and "traceability and accountability"
for solid waste and has formulated the Solid Waste
Management System to clarify responsibilities
ensuring classified collection standardized
temporary storage compliant disposal clear
records and well-documented waste destinations. Hazardous Waste Storage Warehouse
Through compliant waste management Valin has
effectively reduced the environmental impact. For hazardous waste the Company follows the basic principles of "unified collection
classified disposal and hazard elimination" aiming to achieve the ultimate goals of "reduction resource recovery and harmlessness". Recirculating Water System
Valin has formulated relevant documents such as the Hazardous Waste Disposal Methods and Procedures and the Hazardous Waste
Management Plan. The Safety and Environmental Protection Department regularly coordinates with licensed hazardous waste treatment
companies for proper disposal. Meanwhile the Company has developed a comprehensive emergency response plan for hazardous waste
and provides regular professional training to hazardous waste management personnel to ensure employees possess the necessary
knowledge and skills.
101 102A Green Future: Valin’s
13 Commitment to Global Sustainability
Green Office
Environmental Protection Activity
In today's world green operations are integral to corporate sustainable development. Valin is dedicated to fostering a green office
environment actively engaging in and organizing various environmental initiatives to raise employee awareness and promote
sustainability within local communities.
103 1042024 Environmental Social and Governance Report A Green Future: Valin’s Commitment to Global Sustainability / Key Performance Indicators
Green Office K ey Performance Indicators
Valin practices the concept of green office initiatives striving to build a resource-efficient and environmentally friendly enterprise. The G
Company has optimized communication methods by encouraging online meetings and reducing the use of paper documents promoting
a paperless office environment. In addition employees are encouraged to practice waste sorting turn off lights when not in use and Indicator Disclosure Item Unit 2024
use air conditioning responsibly integrating green practices into daily routines. Furthermore Valin has improved energy efficiency and Category
reduced equipment energy consumption through energy-saving technological upgrades further driving the integration of green office Number of Shareholders’ Meetings Held Number 5
practices with green production. These efforts have enhanced the green management capabilities and created a low-carbon eco-friendly
office environment for employees demonstrating Valin's commitment and responsibility in green development. Number of Meetings Held Number 11
Board of Directors Meetings
Average Attendance Rate % 100
Environmental Protection Activity Compensation Committee Number 2
Strategy Committee Number 2
In alignment with the national "Dual Carbon" strategy and the principles of green development Valin actively organized environmental Number of Meetings
protection-themed initiatives to enhance corporate environmental management raise employee awareness and promote green Nomination Committee Number 2
production and sustainable development. Through specialized lectures environmental knowledge training sessions and other Audit Committee Number 6
educational formats the Company systematically communicated national environmental policies regulations and its green development
strategies. This approach guided employees to embrace the philosophy that "green production is everyone's responsibility." Moreover Compensation Committee % 100
employees actively participated in front-line activities such as environmental facility inspections energy-saving campaigns and waste
sorting and recycling effectively integrating environmental protection into daily production and management practices. Strategy Committee % 100Average Attendance Rate of Each
Board Committee Meetings
Nomination Committee % 100
Case
Study Planting and Protecting Greenery Fostering a Harmonious and Beautiful Community Audit Committee % 100
Number of Board Members Number 9
Valin consistently upholds the principle of green development by embedding environmental protection into everyday production and Male Directors Number 8
life. During the reporting period Valin organized a Tree Planting Day event where employees came together shovels in hand to plant Corporate
Governance Disclosure by Gender
saplings adding vibrant greenery to the factory and contributing to a more harmonious and beautiful community. Female Directors Number 1
Executive Directors Number 0
Disclosure by Type Non-executive Directors - Non-independent Directors Number 6
Non-executive Directors - Independent Directors Number 3
Number of Meetings Held Number 8
Supervisory Board Meetings
Average Attendance Rate % 100
Number of Supervisory Board Members Number 3
Number of Employee Supervisors Number 2
Number of Senior Management Personnel Number 5
Male Senior Executives Number 4
Disclosure by Gender
Female Senior Executives Number 1
Tree Planting Day Number of ESG Training Sessions Conducted Number 1
Number of Employees Covered by ESG Training Number 18
Compliance
Management Number of Employees Trained in Compliance Number 233
105 1062024 Environmental Social and Governance Report Key Performance Indicators
S Indicator
Category Disclosure Item Unit 2024
Indicator
Category Disclosure Item Unit 2024
Foreign Employees (Excl. HK/Macau/TW) Number 0
Total Number of Employee Number 617 Ethnic Minority Employees Number 11
Male Number 482 Employees with Disabilities Number 10
By gender
Female Number 135 Employment New Hires Number 25
Full-time employee Number 617 Employees with Labor Contracts Number 617
By employee type
Contractor Number 0 Localized Hires Number 617
Over 50 Number 82 Employees Receiving Financial Aid Number 37
By age 30 to 50 Number 391 Employee Turnover Number 8
Under 30 Number 144 Employee Turnover Rate % 1.3
Over 51 % 2 Male Number 7
By gender
By age(management) 36 to 50 % 3 Female Number 1
Under 35 % 0 Full-time employee Number 8
Turnover
Employment Employees in Mainland China Number 617 By employee type Contractor Number 0
By region Employees in Hong Kong Macau Taiwan Number 0 Others Number 0
Employees in Other Countries/Regions Number 0 Over 50 Number 0
PhD Number 1 By age 30 to 50 Number 3
Master Number 30 Under 30 Number 5
By education background Bachelor Number 161 Total Employees Evaluated for Performance/Career Development Number 617
College Number 154 Male Employees Evaluated Number 482
By gender
Below College Level Number 271 Female Employees Evaluated Number 135
Career
Junior level Number 533 Junior Staff Evaluated Number 533Development
Junior Management Number 57 Junior Management Evaluated Number 57
By employee category By Employee Category
Middle management Number 22 Middle Management Evaluated Number 22
Senior management Number 5 Senior Management Evaluated Number 5
107 1082024 Environmental Social and Governance Report Key Performance Indicators
Indicator
Category Disclosure Item Unit 2024
Indicator
Category Disclosure Item Unit 2024
Annual Training Sessions Number 520 Customer Complaints (Products/Services) Number 34
Employee Training Investment RMB '000 2663.00
Customer Service Quality-Related Complaints Number 6
Employee Training Coverage Rate % 100
Male Employees Trained Number 482 Complaints Resolved Number 34
By gender
Employee Female Employees Trained Number 135 R&D Investment RMB '000 134414.70
Training Junior Staff Trained Number 533
Total Patents Number 385
By Employee Category Middle Management Trained Number 22
New Patent Applications Number 52
Senior Management Trained Number 5 Intellectual
Property Rights
Total Employee Training Hours Hour 27550 New Patents Granted Number 34
Average Training Hours per Employee Hour 44.65
Active Patents Number 345
Audit of Human
Resources Third-Party Suppliers Third-Party Suppliers Audited Number 4
Software Copyrights Number 0
Suppliers
Occupational Safety Investment RMB '000 6498 Data Security Incidents Number 0
Occupational Safety
Work Injury Insurance Investment RMB '000 666.7
Investment Specific Amount Involved RMB '000 0
Work Injury Insurance Coverage Rate % 100
Workdays Lost Due to Injuries Day 22 Business Coverage with Data Security Certifications % 99
Employees in Occupational Hazard Roles Number 391 Sensitive Data Encryption Coverage % 90
Employee Health & Safety
Employees Undergoing Occupational Health Checkups Number 229 Data Security
Access Control Mechanism Coverage % 95
Employees Diagnosed with Occupational Diseases Hour 0
Data Security Training Sessions Number 2
Work-Related Injuries Number 0
Work-Related Injury Incidents Number 0 Data Security Training Coverage Rate % 90
Safety Incidents (Applicable to Occupational Disease Cases Number 0 Average Data Security Training Hours per Employee Hour 2
Production Sites)
Occupational Fatal Work Accidents (Incidents) Number 0
Health and Safety Customer Privacy Breach Incidents Number 0Fatal Work Accidents (Fatalities) Number 0
Fatality Rate per Million Work Hours % 0 Specific Amount Involved RMB '000 0
Employees in Occupational Hazard Roles Number 391
Losses Due to Legal Violations (Data/Privacy Breaches) RMB '000 0
Employees Undergoing Occupational Health Checkups Number 229
Privacy Protection Verified Complaints (Privacy/Data Loss) Number 0
Employees Diagnosed with Occupational Diseases Number 0
Workdays Lost Due to Injuries (Absence Days) Day 0 Privacy Protection Training Sessions Number 2
Occupational Diseases Employee Deaths Due to Work (Specify Causes if >0) Number 0 Privacy Protection Training Coverage Rate % 80
Employees Undergoing Health Checkups % 100
Average Privacy Training Hours per Employee Hour 1
Female Employees Undergoing Health Checkups % 100
Work Injury Insurance Investment RMB '000 666.7
Work Injury Insurance Coverage Rate % 100
Community Public
Social Responsibility Investment RMB '000 113.78
Welfare
109 1102024 Environmental Social and Governance Report Key Performance Indicators
Indicator
Category Disclosure Item Unit 2024
E
Customer Complaints (Products/Services) Number 41 Indicator
Category Disclosure Item Unit 2024
Complaint Resolution Rate % 100 Environmental Protection Investment RMB '000 4890
Environmental
Quality Solar/PV Generation Capacity kW 1960.00
Product Sampling Pass Rate % 99.82 Management
Management
Solar/PV Generation Capacity kWh 1546175.20
Product Recall Incidents Number 0 Waste Gas Total Waste Gas Emissions 10000 m3 24244.03
Customer Satisfaction Rate % 98.5 Water Discharge Total Water Discharge Ton 3940.00
Chemical Oxygen Demand (COD) Ton 57.00
Total Suppliers Number 175
Biochemical Oxygen Demand/five-day (BOD5) Ton /
Waste Water
Suppliers in Mainland China Number 175 Water Quality Ammonia Nitrogen Ton 22.40
By Region
Suspended Solids Ton 9.00
Suppliers in HK/Macau/TW & Overseas Number 0
Total Phosphorus Ton /
Suppliers Signed Integrity Clauses Number 100 Total Solid Waste Ton 2803.90
Suppliers with Environmental & Labor Clauses (%) Number 100 Non-Hazardous Solid Total Non-Hazardous Solid Waste Ton 2750.40
Solid Waste Waste Recycling Volume Ton 2750.40
Suppliers with ISO 9001 Certification Number 160
Total Hazardous Solid Waste Ton 53.50
Hazardous Solid Waste
Suppliers with ISO 14001 Certification Number 132 Recycling Volume Ton 53.50
Water Intake Total Water Intake Ton 153527.00
Suppliers with ISO 45001 Certification Number 132
Water
Total Water Usage Ton 290.00
Resources
Suppliers with Significant Social Risks Number 0 Water Usage
Total Recycled/Reused Water Ton 839800.00
Supply Chain
Suppliers with Significant Environmental Risks Number 0 Comprehensive Energy Consumption ton of standard coal 54986.30
Coal Ton 0
New Suppliers Number 15
Gasoline L 0
Local Suppliers (%) % 0.12 Energy Usage Diesel L 17361.50
Natural Gas 10000 m3 1171900.00
Procurement Staff Trained in Sustainable Sourcing (%) % 100
Liquefied Petroleum Gas m3 0
Terminated Suppliers Number 2
Electricity MWh 33671.04
Potential Suppliers Rejected Due to ESG Non-Compliance Number 0 Total Greenhouse Gas Emissions tCO2e 21783.76
Greenhouse Gas
Scope 1 Greenhouse Gas Emissions tCO e 2581.17
Supplier ESG Training Sessions Number 5 Emissions
2
Scope 2 Greenhouse Gas Emissions tCO2e 19202.59
Supplier ESG Training Hours Hour 10
Supplier ESG Training Participants Number 20
111 1122024 Environmental Social and Governance Report Index of Indicators
Index of Indicators GRI Standard Disclosure Item Chapters
2-20 Process to determine remuneration Compensation and Benefits
2-21 Annual total compensation ratio Refer to The Annual Report
GRI Content Index 4. Strategy Policy and Practices
2-22 Statement on sustainable development strategy ESG Governance
GRI 1: Foundation 2021 2-23 Policy commitments Not Involved
2-24 Embedding policy commitments Not Involved
Valin has reported the information cited in this GRI Content Index for the period January 12024 to
Statement of Use
December 31 2024 with reference to the GRI Standards. 2-25 Processes to remediate negative impacts Not Involved
GRI 1 Used GRI 1: Foundation 2021 2-26 Mechanisms for seeking advice and raising concerns ESG Governance
Refer to section of the report for
2-27 Compliance with laws and regulations
details
GRI Standard Disclosure Item Chapters Collaborative Industry 2-28 Membership associations
Development
GRI 2: General Disclosures 5. Stakeholder Engagement
1. Organization and Reporting Practices 2-29 Approach to stakeholder engagement ESG Governance
2-1 Organizational details About This Report 2-30 Collective bargaining agreements Employee Rights Protection
Entities included in the organization's sustainability
2-2 About This Report GRI 3: Material Topics 2021
reporting
2-3 Reporting period frequency and contact point About This Report 3-1 Process to determine material topics ESG Governance
2-4 Restatements of information Not Involved 3-2 List of material topics ESG Governance
2-5 External assurance Not Involved 3-3 Management of material topics ESG Governance
2. Activities and Workforce GRI 200
2-6 Activities value chain and other business relationships ESG Governance 201: Economic Performance 2016
2-7 Employees Employee Rights Protection 201-1 Direct economic value generated and distributed Refer to The Annual Report
Financial implications and other risks and opportunities due
2-8 Workers who are not employees Not Involved 201-2 Addressing Climate Changeto climate change
3. Governance 201-3 Defined benefit plan obligations and other retirement plans Employee Care
2-9 Governance structure and composition Exploring Valin 201-4 Financial assistance received from government Refer to The Annual Report
2-10 Nomination and selection of the highest governance body Corporate Governance 202: Market Presence 2016
2-11 Chair of the highest governance body Corporate Governance Ratios of standard entry level wage by gender compared to
202-1 Employee Rights Protection
Role of the highest governance body in overseeing the local minimum wage
2-12 Corporate Governance
management of impacts Proportion of senior management hired from the local 202-2 Employee Rights Protection
2-13 Delegation of responsibility for managing impacts Corporate Governance community
Role of the highest governance body in sustainability 203: Indirect Economic Impacts 2016
2-14 ESG Governance
reporting Leading with “Jinfeng”: Exploring
2-15 Conflicts of interest ESG Governance Valin
203-1 Infrastructure investments and services supported Deepening Low-Carbon Efforts:
2-16 Communication of critical concerns ESG Governance Preserving Blue Waters and
2-17 Collective knowledge of the highest governance body Corporate Governance Green Mountains
Evaluation of the performance of the highest governance Innovative Cables "Jinfeng"
2-18 Refer to The Annual Report 203-2 Significant indirect economic impacts
body Soars with New Momentum
2-19 Remuneration policies Employee Rights Protection 204: Procurement Practices 2016
204-1 Proportion of spending on local suppliers Supplier ESG Governance
113 1142024 Environmental Social and Governance Report Index of Indicators
GRI Standard Disclosure Item Chapters GRI Standard Disclosure Item Chapters
205: Anti-corruption 2016 IUCN Red List species and national conservation list species 304-4 Not Involved
with habitats in areas affected by operations
205-1 Operations assessed for risks related to corruption Business Ethics
305: Emissions 2016
Communication and training about anti-corruption policies
205-2 Business Ethics
and procedures 305-1 Direct (Scope 1) GHG emissions Addressing Climate Change
205-3 Confirmed incidents of corruption and actions taken Business Ethics 305-2 Energy indirect (Scope 2) GHG emissions Addressing Climate Change
206: Anti-competitive Behavior 2016 305-3 Other indirect (Scope 3) GHG emissions Addressing Climate Change
Legal actions for anti-competitive behavior anti-trust and
206-1 Not Involved 305-4 GHG emissions intensity Addressing Climate Change
monopoly practices
305-5 Reduction of GHG emissions Addressing Climate Change
207: Tax 2019
305-6 Emissions of ozone-depleting substances (ODS) Not Involved
207-1 Approach to tax Tax Management
Nitrogen oxides (NOx) sulfur oxides (SOx) and other
207-2 Tax governance control and risk management Tax Management 305-7 Pollutant Emissionssignificant air emissions
Stakeholder engagement and management of concerns
207-3 Tax Management 306: Waste 2020
related to tax
306-1 Waste generation and significant waste-related impacts Waste Disposal
207-4 Country-by-country reporting Not Involved
306-2 Management of significant waste-related impacts Waste Disposal
GRI 300
306-3 Waste generated Waste Disposal
301: Materials 2016
306-4 Waste diverted from disposal Waste Disposal
301-1 Materials used by weight or volume Waste Disposal
306-5 Waste directed to disposal Waste Disposal
301-2 Recycled input materials used Pollutant Emissions
307: Environmental Compliance
301-3 Reclaimed products and their packaging materials Not Involved
Ecological Stewardship:
302: Energy 2016 307-1 Violations of Environmental Laws and Regulations Pioneering Green and Intelligent
302-1 Energy consumption within the organization Energy Utilization Manufacturing
302-2 Energy consumption outside of the organization Energy Utilization 308: Supplier Environmental Assessment 2016
New suppliers that were screened using environmental
302-3 Energy intensity Energy Utilization 308-1 Supplier ESG Governancecriteria
302-4 Reduction of energy consumption Energy Utilization Negative environmental impacts in the supply chain and
308-2 Supplier ESG Governance
302-5 Reductions in energy requirements of products and services Energy Utilization actions taken
GRI 400
303: Water and Effluents 2018
401: Employment 2016
303-1 Interactions with water as a shared resource Water Resource Management
401-1 New employee hires and employee turnover Employee Rights Protection
303-2 Management of water discharge-related impacts Water Resource Management
Benefits provided to full-time employees that are not
303-3 Water withdrawal Water Resource Management 401-2 Employee Careprovided to temporary or part-time employees
303-4 Water discharge Pollutant Emissions 401-3 Parental leave Employee Care
303-5 Water consumption Water Resource Management 402: Labor/Management Relations 2016
304: Biodiversity 2016 402-1 Minimum notice periods regarding operational changes Not Involved
Operational sites owned leased managed in or adjacent to 403: Occupational Health and Safety 2018
304-1 protected areas and areas of high biodiversity value outside Not Involved
protected areas 403-1 Occupational health and safety management system Workforce Well-being
Significant impacts of activities products and services on Hazard identification risk assessment and incident
304-2 Not Involved 403-2 Workforce Well-being
biodiversity investigation
304-3 Habitats protected or restored Not Involved 403-3 Occupational health services Workforce Well-being
Worker participation consultation and communication on
403-4 Workforce Well-being
occupational health and safety
115 1162024 Environmental Social and Governance Report Index of Indicators
GRI Standard Disclosure Item Chapters GRI Standard Disclosure Item Chapters
403-5 Worker training on occupational health and safety Workforce Well-being Sustainable Actions for Rural Operations with local community engagement impact
413-1 Revitalization: Remaining
403-6 Promotion of worker health Workforce Well-being assessments and development programs Faithful to Our Mission
Prevention and mitigation of occupational health and safety
403-7 Workforce Well-being Operations with significant actual and potential negative
impacts directly linked by business relationships 413-2 Not Involvedimpacts on local communities
Workers covered by an occupational health and safety
403-8 Workforce Well-being 414: Supplier Social Assessment 2016
management system
Supplier Management
403-9 Work-related injuries Workforce Well-being 414-1 New suppliers that were screened using social criteria Mechanism
403-10 Work-related ill health Workforce Well-being Negative social impacts in the supply chain and actions
414-2 Not Involved
404: Training and Education 2016 taken
Employee Training and 415: Public Policy 2016
404-1 Average hours of training per year per employee
Development 415-1 Political contributions Not Involved
Programs for upgrading employee skills and transition Employee Training and
404-2 416: Customer Health and Safety 2016
assistance programs Development
Percentage of employees receiving regular performance Employee Training and Assessment of the health and safety impacts of product and
404-3 416-1 Customer Service
and career development reviews Development service categories
Incidents of non-compliance concerning the health and
405: Diversity and Equal Opportunity 2016 416-2 Not Involvedsafety impacts of products and services
405-1 Diversity of governance bodies and employees Employee Rights Protection 417: Marketing and Labeling 2016
405-2 Ratio of basic salary and remuneration of women to men Employee Rights Protection Requirements for product and service information and
417-1 Customer Service
406: Non-discrimination 2016 labeling
Incidents of non-compliance concerning product and
406-1 Incidents of discrimination and corrective actions taken Employee Rights Protection 417-2 Customer Serviceservice information and labeling
407: Freedom of Association and Collective Bargaining 2016 Incidents of non-compliance concerning marketing
417-3 Customer Service
Operations and suppliers in which the right to freedom of communications
407-1 Not Involved
association and collective bargaining may be at risk 418: Customer Privacy 2016
408: Child Labor 2016 Substantiated complaints concerning breaches of customer
418-1 Customer Service
Operations and suppliers at significant risk for incidents of privacy and losses of customer data
408-1 Not Involved
child labor 419: Socioeconomic Compliance
409: Forced or Compulsory Labor 2016 Violations of laws and regulations in the social and
419-1 Not Involved
Operations and suppliers at significant risk for incidents of economic fields
409-1 Not Involved
forced or compulsory labor
410: Security Practices 2016
Security personnel trained in human rights policies or
410-1 Not Involved
procedures
411: Rights of Indigenous Peoples 2016
411-1 Incidents of violations involving rights of indigenous peoples Not Involved
412: Human Rights Assessment
Operations subject to human rights reviews or impact
412-1 Not Involved
assessments
412-2 Employee training on human rights policies or procedures Not Involved
Significant investment agreements and contracts that
412-3 include human rights clauses or have undergone human Not Involved
rights screening
413: Local Communities 2016
117 1182024 Environmental Social and Governance Report
Feedback and Suggestions
Thank you for reading the 2024 ESG Report of Hunan Valin Wire & Cable Co. Ltd. We highly value and look forward to hearing your feed-
back on the ESG efforts and this report. Your opinions and suggestions are crucial for us to continuously improve the quality of the ESG
disclosures and advance the sustainable development management and practices. Please fill out the form below and provide feedback
to us through the email.Email: zqb@hlxl.com
1. Your relationship with Hunan Valin Wire & Cable Co. Ltd. is:
□ Regulatory agency □ Customer □ Employee □ Public □ Supplier
□ Shareholder and investor □ Industry associations □ Media □ Others
2. What is your overall assessment of the ESG performance
□ Pretty Good □ Good □ General □ Relatively Bad □ Bad
3. What’s your overall comment on this report
□ Pretty Good □ Good □ General □ Relatively Bad □ Bad
4. How do you rate the quality of the ESG information disclosed in this report
□ Pretty Good □ Good □ General □ Relatively Bad □ Bad
5. How do you assess the structure and organization of this report
□ Pretty Good □ Good □ General □ Relatively Bad □ Bad
6. How do you evaluate the designed in form and format of this report
□ Pretty Good □ Good □ General □ Relatively Bad □ Bad
7. Is easy to find the information you are concerned about in the report
□ Yes □ Neutral □ No
8. Do you have any comments or suggestions regarding our social responsibility and sustainable development
initiatives as well as this report
9. Apart from the content already disclosed in this report what additional information would you like to see
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