Social Responsibility

I. Corporate Governance System

Good corporate governance is the intrinsic driving force for a company’s sustainable development. Since its establishment in 2005, Puyang gongzhen Petroleum Machinery Co., Ltd. has integrated corporate governance with production and business operations. In strict accordance with the Company Law and relevant national laws, regulations, and rules, the company has established a modern enterprise system, improved its corporate governance structure, and standardized its operations. It has put in place a systematic and scientific regulatory framework based on the Articles of Association, with the Rules of Procedure for Shareholders’ Meetings, the Rules of Procedure for Board Meetings, and the Detailed Rules for the General Manager’s Work as its main components. This has resulted in a power-balancing mechanism involving decision-making, execution, operational management, and effective supervision, with the shareholders’ meeting, the board of directors, and the management team as the core entities. Such a mechanism ensures the healthy operation of all business activities, including production and operations, thereby achieving the company’s sustainable and healthy development.

II. Company Development

In 2022, the company centered its efforts on innovation, thoroughly implemented the Scientific Outlook on Development, introduced innovative marketing strategies, proactively responded to market changes, pursued independent innovation, placed strong emphasis on financial budgeting and cost performance evaluation, and reinforced its capabilities in risk prevention and control, thereby sustaining robust and steady growth in business performance. In 2022, the company achieved operating revenue of RMB 36.8778 million.

III. Product Management

The company has consistently adhered to the quality policy of “rigor and pragmatism, scientific management, customer first, safety and efficiency, compliance with regulations, pollution prevention, and continuous improvement.” We regard product quality as the lifeblood of the enterprise, rigorously control product quality, and have established a long-term mechanism for product quality management and a comprehensive quality management system. Through strengthened quality control and assurance across all stages—raw material procurement, technical support, production process control, and sales—we deliver products that customers can trust.

IV. Talent Development

The company has formulated a series of preferential policies and implemented measures to attract and recruit top talent, including providing housing assistance to newly hired professionals. These efforts ensure that our recruitment initiatives are genuinely sincere, enabling new employees to feel welcomed and satisfied in their roles. Over the past few years, this approach has enabled us to recruit numerous engineering and technical professionals from across the country, all holding at least an associate degree and holding mid- to senior-level professional titles, thereby providing a solid talent base for the company’s technological innovation and overall development.

The company has organized and implemented more than ten on-the-job training programs. It also encourages employees to pursue self-study and professional development; to date, several employees have obtained secondary vocational school diplomas, and the company is confident in its ability to cultivate and deploy talent. In recent years, a number of employees have been promoted to mid-level management positions. These initiatives have injected new vitality into the company’s development.

Employees are a company’s most valuable asset. Under current social conditions, they often face significant challenges in their daily lives. In response, the company adopts strict management practices while prioritizing the care and protection of employees’ fundamental interests, and places great emphasis on supporting their well-being and addressing their personal and ideological concerns in everyday work. Every Spring Festival, the company’s leadership extends heartfelt greetings and condolences to all employees.

V. Environmental Protection

The company regards environmental protection as a key component of its corporate sustainability strategy, emphasizes fulfilling its environmental stewardship responsibilities, and actively pursues environmentally friendly and resource-efficient development.

Integrate environmental management into the enterprise’s overall management system and embed it throughout every stage of product manufacturing. First, the company will intensify awareness-raising efforts across all departments to enhance environmental consciousness among all employees. Second, environmental management indicators will be systematically applied to every step of the production process, establishing a target-based accountability system that spans from senior and middle management down to team-level operators, thereby creating a comprehensive management network. This network will ensure timely reporting on each department’s pollutant generation and discharge, with clear assignment of responsibilities and well-defined rewards and penalties, so that environmental protection and eco-conscious values are truly ingrained in every employee.

By leveraging modern information technologies to implement paperless office operations and promote the development of a resource-conserving society, the company has actively adopted financial computerization, ERP management, intranets, and other modern IT tools. It continuously learns to use OA office systems to achieve paperless office operations, which not only saves on paper consumption, communication costs, and postage expenses, but also reduces the occupation of social communication lines and postal resources caused by telephone, fax, and mail-based communication methods, thereby actively promoting the construction of a resource-conserving society.

We encourage employees to pursue technological innovation, phase out outdated production processes, and build an environmentally friendly enterprise. In 2022, the production system launched a campaign to solicit rationalization proposals centered on the theme of “energy conservation, cost reduction, increased output, and enhanced efficiency,” which significantly improved the comprehensive utilization rates of energy and consumable materials. By submitting innovative and improvement-oriented suggestions for equipment, piping and pipeline systems, decommissioned equipment and facilities, material types used in machinery and consumables, and waste energy resources, we were able to reduce the consumption of water, electricity, and other energy sources while promoting resource recycling. At the same time, we optimized and refined existing production processes to achieve energy savings, emission reductions, increased output, and improved efficiency.

Puyang gongzhen Petroleum Machinery Co., Ltd.