Huaxing Glass 2022 Annual Social Responsibility Report

Guangdong Huaxing Glass Co.

2022 Annual Social Responsibility Report

1、Company Profile

   Guangdong Huaxing Glass Co., Ltd. was founded in 1987, with a registered capital of over RMB 450 million, covering an area of 279,480 square metres. The company is located in Area B, Luocun Wuzhan Industrial Zone, Nanhai District, Foshan City, Guangdong Province, and is a large-scale private glass container manufacturing high-tech enterprise integrating product design and development, manufacturing, product deep-processing, sales and service.

   The company currently has 9 kilns, 45 automated production lines, 45 annealing furnaces, 45 acceptance lines and other major production equipment, supporting equipment such as automatic dosing system, broken glass cleaning line, sewage treatment station, desulfurisation and denitrification flue gas treatment system, etc. In 2000, we built a new printing workshop for glass bottles and jars, with 4 printing production lines, adopting imported automatic printing machines, with a production capacity of 60 million pieces/year. 2019 In March, we cooperated with Siemens to start the digital era, and we intend to build a lighthouse factory in the glass industry to maximise the production efficiency, in order to achieve the goal of reducing costs by 20%, shrinking wastage by 25%, improving quality by 15%, and increasing data transparency by 80%. The first phase of the digital construction project of Guangdong Huaxing Glass Co., Ltd. was officially launched in October 2021, and the second phase of the project was carried out in 2022 simultaneously.

   In order to perfect the competitiveness of the enterprise, in terms of technology, the company has introduced advanced computer-controlled bottle and jar three-drop material production lines at home and abroad, adopting advanced kiln computerised auto-control system and automatic product inspection system, gas-heated auto-control technology for material channel and spraying technology for hot and cold ends. It can produce all kinds of glass products from 25 to 1,000g in weight without any limitation of shape and quantity. The products have also developed from a single variety to a multi-species series, and now the production varieties include food, beverage, flavouring, health care, alcohol, medicine, cosmetic packaging bottles and so on. The products are exported to Vietnam, Thailand, Malaysia, the United States, Mexico, Canada and other countries and regions. At the same time, the company has the first in-house laboratory in the bottle and jar glass industry accredited by CNAS, and has participated in the discussion and formulation of a number of national standards and group standards. In terms of management change, since 2005, the company has gradually introduced 5S management, TPM management, TQM management, VPO factory optimisation management, and constructed a lean management model as the basis, through the introduction of VPO management, the lean management will be further sublimated, and ultimately through the digital science and precision to improve each process, and to establish a set of optimal production and operation standards, that is, the optimal factory management mode of Huaxing.

   The company's production scale ranks first in the country, the domestic market share ranked first in the past three years, the global market share ranked first three, in 2022 to achieve export sales of 385,103,000 yuan, 2023-2035 the company will continue to improve the quality of the product, enhance brand competitiveness, create a corporate brand image, to develop more overseas markets, and strive to increase sales of 10% each year, and strive for In 2023, the sales volume will reach 1.85 billion.

2、Protection of shareholders' rights and interests

(1) Shareholder rights and interests protection mechanism

   The Company is committed to achieving and maintaining a high standard of corporate governance, continuously improving corporate governance in accordance with laws and regulations, establishing a decision-making and operating system based on the Management Manual, with the shareholders' meeting, board of directors, supervisory board and management as the main structure, and establishing and improving various internal management systems. We have built an internal control and prevention system starting with risk management, with clear responsibilities as the core, with perfect implementation of system construction as the guarantee, and with process sorting and standardisation as the basis. Through the specification and implementation of the internal control system of the enterprise, we can reasonably ensure that the enterprise's operation and management are in compliance with the laws and regulations, that the assets are safe, and that the financial reports and related information are true and complete, that we can improve the efficiency and effectiveness of the enterprise's operation and promote the achievement of the enterprise's development strategy. The legitimate rights and interests of all shareholders are guaranteed from the mechanism.

(2) Serious fulfilment of information disclosure obligations

   The Company strictly follows the requirements of the regulatory bodies and the Stock Exchange to do a good job in information disclosure, and achieves the truthfulness, accuracy, timeliness and completeness of the information disclosure to ensure that the investors accurately and timely access to the relevant information of the Company and make rational investment.

3、Corporate Governance

   The company implements flat management, with the chairman of the board of directors managing each system and each branch, and the vice president of each system and the general manager of each branch implementing vertical management of each centre and each department respectively.

   The company's organisational structure: including enterprise development management system, engineering and technology management system, operation management system, financial management system, production company, production company, and so on.

4、Credit construction

   In the financial interactions and project cooperation, adhere to the principle of integrity-based, the company has won the Foshan City for many years, "outstanding contribution to tax payment of the top 100 enterprises" honorary title.

5、Do not