2024Environmental, Socialand Governance Report
Hangzhou GreatStar Industrial Co., Ltd.
CONTENTS
About This ReportMessage from the ChairmanAbout UsESG Management
I.Compliant Governance:
Corporate GovernanceInvestor Relations ManagementCompliance Risk Control and Responsible Business
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Taking the Lead in Promoting Corporate GovernanceBased on Refined Compliance Management
II. Environmental Management:
Environmental Compliance ManagementEnergy UtilizationWater Resources UtilizationPollutants and Waste TreatmentAddressing Climate ChangeGreen Operation
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Jointly Creating an Ecological Future by TakingInitiative in Implementing Green Actions
III. Common Progress:
Innovation-Driven GrowthIndustry CooperationProduct QualitySupply Chain SecurityData Security
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Jointly Promoting the Industry Development Basedon Continuous Improvement
IV. Social Development:
Employee Rights and InterestsTraining and Personal DevelopmentHealth and SafetyContributing to Social Benefits
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Putting People First and Contributing to SocialBenefits
Conclusion:
Key PerformanceBenchmarking indicatorsReader’s feedback
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This Report is the second ESG report issued by Hangzhou GreatStar Industrial Co., Ltd. (hereinafter referred to as “GreatStar”,the “Company” or “we”). This reporting systematically presents the Company’s performance and achievements in fulfilling itseconomic, environmental and social responsibilities, as well as promoting and implementing the corporate governance in 2024.We expect to improve communication and build consensus with our stakeholders, and promote the sustainable development ofthe Company through releasing sustainability reports.
Guidelines No. 17 for Self-regulation of Listed Companies — Sustainability Report (Trial) released by Shenzhen Stock Exchange(hereinafter referred to as the “SZSE Guidelines”)Guidelines No. 3 for Self-regulation of Listed Companies — Preparation of Sustainability Report released by Shenzhen StockExchangeUN Sustainable Development Goals (SDGs)GRI Sustainability Reporting Standards (GRI Standards) released by the Global Reporting Initiative (GRI)Guidelines on Sustainability Reporting for Chinese Enterprises (CASS-ESG 6.0)GB/T 36001-2015 Guidance on Social Responsibility Reporting released by the Standardization Administration of the P.R.C.ISO 26000: Guidance on Social Responsibility released by the International Organization for Standardization (ISO)This Report covers the period from January 1, 2024, to December 31, 2024, which is moderately extended backwards or forwards,as the case may be, to enhance the comparability and foreseeability of disclosures.Reporting period
This Report discloses the information of Hangzhou GreatStar Industrial Co., Ltd. and its subsidiaries in fulfilling their economic,environmental and social responsibilities, as well as promoting and implementing the corporate governance. All typical casespresented herein are from the Company and its subsidiaries.
Reporting boundaries
The information disclosed herein is sourced from the official internal documents, statistical reports and annual reports ofGreatStar. The data disclosed herein are extracted or derived from the raw data of the Company’s business operation, the datadisclosed by government agencies, annual financial data, internal statistical reports, third-party questionnaire surveys, third-partyevaluation interviews, etc. The financial data in this Report are presented in Chinese Yuan (CNY). In case of any inconsistencieswith the financial reports, the financial reports shall prevail.
Sources of data and information
Basis of preparation
Designations
About This Report
For shortLianhe ElectricalGreatStar Tools
Full nameHangzhou Lianhe Electrical Equipment Manufacturing Co., Ltd.Hangzhou GreatStar Tools Co., Ltd.
The Company guarantees that the data and information disclosed in this Report are true, accurate and complete, without any falserecords, misleading statements or significant omissions, and is responsible for the authenticity, completeness and accuracy ofsuch data and information.
Assurance of report reliability
Public availability
You may access or download this Report available in electronic format at the official website of Shenzhen Stock Exchange(www.szse.cn) or the Company’s official website (www.greatstartools.com).
Special Notice
This report is available in both Chinese and English. In case of any discrepancy between the two versions, the Chinese versionshall prevail.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Message from the ChairmanGreatStar forged ahead and harvested a lot throughout the year 2024. This year, we firmly pursued the full implementation of ESGconcepts, and demonstrated our sense of responsibility and mission through practical actions. Looking back on the past,GreatStar, with its persistent pursuit of quality and unremitting exploration of innovation, overcame difficulties all the way tobecome a world-leading tool manufacturer and supplier. The success of GreatStar was inseparable from the hard work of everyemployee, the trust and support of every customer, the close cooperation of every supplier, and even more from the stabledevelopment of society and the generous gifts from the natural environment. Therefore, we insisted on integrating ESG conceptsinto corporate development and committed ourselves to achieving harmonious coexistence with the economy, environment andsociety.In terms of corporate governance, we always regarded compliance management as the cornerstone of sustainable developmentfor enterprises, kept on improving the corporate governance structure, and formed a scientific and effective division ofresponsibilities based on a reasonable checks and balances mechanism. We attached great importance to the investor relationsmanagement, offered diverse communication channels for investors, and effectively protected their interests. At the same time,we continued to optimize our internal control system, strengthen risk management mechanisms, and prevent commercial bribery,to ensure the full compliance of our business operation.
With regard to environmental protection, we actively put the concept of green development into practice, and built acomprehensive ecological management system from energy utilization, water resource management to sewage treatment. Wevigorously promoted energy conservation and emission reduction, optimized energy structure and improved energy utilizationefficiency; strengthened the recycling of water resources and reduced wastewater discharge; and strictly regulated the sewagetreatment process to ensure the compliance of discharge with all applicable standards. At the same time, we actively respondedto the "dual-carbon strategy" of China, set scientific carbon targets, made greenhouse gas inventory, and strived to reduce theimpact of corporate operations on the environment. We believe that living in harmony with nature is the only way for an enterpriseto achieve long-term development.
As for the economic development, we continued to focus on our main business of tools, and constantly expanded our businessboundaries based on endogenous growth and external acquisitions to enhance our competitiveness. We increased our R&Dinvestment and promoted product innovation and upgrading to meet the increasingly diverse needs of global customers; optimizedsupply chain management to ensure stable and efficient product supply; and actively expanded market channels while enhancingbrand influence, so as to lay a solid foundation for the long-term development of the Company. In 2024, we have won multiplehonors, including the "Zhejiang-based Flagship Private Multinational Enterprise of the Year 2024" and "2024 Top 500 High-techEnterprises in Innovation Capabilities in Zhejiang Province". These remarkable achievements are inseparable from the supportand assistance of every stakeholder.
On the subject of social responsibility, we always adhered to the principle of putting people first, caring for employees and givingback to society. We offered our employees with fair employment opportunities, a complete compensation and benefits system, andbroad career development opportunities, striving to create a safe, inclusive and dynamic workplace; actively organized trainingactivities for employees, to enhance their professional skills and comprehensive qualities in favor of their personal growth andsuccess; and paid attention to employee health and safety, and established a sound occupational health and safety managementsystem, to ensure the work and property safety of employees. At the same time, we actively participated in social benefitundertakings to make contribution to the harmony and progress of our society.
Looking ahead, we will uphold all ESG principles as always, continuously optimize the organizational structure for corporategovernance, and enhance the efficiency of business operation and management; pay attention to natural environment protectionand adhere to green operation and development; increase investment in technological research and development to promoteinnovation of products in the industry; and strengthen the fulfillment of social responsibility, care for employees and give back tosociety. We believe that GreatStar will make a greater leap on the journey of ESG, create greater value for stakeholders and makegreater contributions to the sustainable development of our society.
The Chairman of Hangzhou GreatStar Industrial Co., Ltd.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Accelerate the development and upgrading ofexisting products to offer our customers withmore convenience in their work and life, whiledevelop new products that adapt to the supplychain and sales channels, and rely on the globalsupply chain network and engineeringadvantages, to take the lead in promoting thedivision of labor in the industry, consolidate ourleading position, and take over the industriesrelocated from European and American duringthis era of innovation economy.
Founded in 1993, Hangzhou GreatStar Industrial Co., Ltd. (“GreatStar”) has evolved into a world-leading tool manufacturer. TheCompany was listed on the Shenzhen Stock Exchange in July 2010 (SZSE: 002444). GreatStar owns a number ofglobally-recognized long-established tool brands, including ARROW, PONY JORGENSEN, Goldblatt, BeA, Shop-Vac and SK, coveringvarious hand tools, electric tools, pneumatic fastening tools, laser measuring tools, laser radar, tool cabinets, industrial storagecabinets, industrial vacuum cleaners, etc. The Company has great R&D and design capabilities based on 5 major R&D centersaround the globe and has been recognized as a National-Level Intellectual Property Demonstration Enterprise and aNational-Level Industrial Design Center in China. At the same time, we have set up marketing and distribution channels aroundthe world, directly serving large-scale chain supermarkets of building materials, hardware, general goods and auto parts, as wellas various industrial consumers. The Company has established partnership with many professional tool brands and relies ondomestic and foreign e-commerce platforms to directly offer high-quality full-range products to end users worldwide.
Company Profile
Corporate Culture
Development Strategy
About Us
Corporate Culture of GreatStar
Development Strategy of GreatStar
Main products of GreatStar
Our Philosophy:
Put Customer First, Keep Improving,Rely on Team Collaboration, Focuson Innovation and Pursue MutualBenefit
To lead the technological progressof tools and become a modelinnovator in the industryOur Mission:
God is in the detailOur Values:
To build a long-standing enterprisewith time-honored brands
Our Vision:
Promote innovation of products
Inherit and upgrade existing internationallyrenowned tool brands, cultivate emerginge-commerce tool brands, and improve theself-owned service system in European andAmerican, while leverage our advantages indurable consumer goods to formulate along-term brand development plan and steadilyenhance brand value.
Carry on with brand building
Overcome the challenges from reverseglobalization, increase the investment inbusiness internationalization, select high-qualityoverseas targets for industrial mergers andacquisitions, strengthen international resourceacquisition and market development, andaccelerate the transition towards the worldwidebusiness operation.
Grow business worldwide
Rely on large supermarkets and self-operatedchannels in Europe and America, concentrate onthe core tools business, continuously dispose ofnon-core assets to recover funds, and strengtheninvestment in our main business lines, whileexpand our business of non-hand tools, includingpower tools and outdoor products, throughoutward mergers and acquisitions.
Focus on main business
Professional vacuumcleaning devices
Power toolsLaser measuring toolsStorage cabinetsHand tools
Personal protectiveequipment
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
International Marketing CenterR&D Center
ChairmanPresident
President Office
Securities andInvestment
CenterSecuritiesDepartment
InvestmentDepartmentLegal Affairsand Internal
ControlDepartment
MarketSupportDepartmentArtworkDesignDepartment
FinancialAccountingDepartment
TaxComplianceManagementDepartmentInternational
FinanceDepartment
FundManagementDepartmentForeign Trade
FinanceDepartment
OperationDepartment
MarketDevelopmentDepartmentProductDevelopmentDepartmentSupply ChainDepartment
OperationDepartment
VisualDepartment
ProductDevelopmentDepartment
Customer
ServiceDepartment
SoftwareApplicationDepartment ISoftwareApplicationDepartment IISoftwareDevelopmentDepartmentHardwareOperation &MaintenanceDepartment
Hand Tool QA
InspectionDepartmentElectric Tool
QA QualityInspectionDepartmentQCInspectionDepartment
CentralLaboratory
International
MarketingDepartmentVInternational
MarketingDepartmentVIInternational
MarketingDepartment
XIIInternational
MarketingDepartment
XIII
Business
activities
engaged byall marketingdepartmentswithsupermarkets
in NorthAmerica
International
MarketingDepartment IInternational
MarketingDepartment
IIIInternational
MarketingDepartment
IVInternational
MarketingDepartment
VIIInternational
MarketingDepartment
IXInternational
MarketingDepartment
XI
Mechanical
ToolsDepartmentGarden Knifeand ScissorsDepartmentMasonry &CarpentryTool andMeasuringToolDepartment
Integrated
DesignDepartmentIndustrial
DesignDepartmentDepartment ofComprehensiveManagement of
ProjectMaterials and
Technology
ResearchInstitute
RapidPrototypingDepartment
ComprehensiveToolProcurementDepartment IComprehensiveToolProcurementDepartment IIMechanical
ToolProcurementDepartmentWorkshopToolDepartment I
ElectricalApplianceProcurementDepartment
Decoration
ToolProcurementDepartment
Cabinet and
StorageDepartmentWork Clothesand Personal
ProtectiveEquipmentDepartmentProcurementandDevelopmentDepartment IProcurementandDevelopmentDepartment IIProcurementandDevelopmentDepartmentIIIPackagingProcurementDepartment
BrandManagementDepartment IInternational
MarketingDepartmentII and BrandManagementDepartmentII
BrandManagementDepartmentIIIBrandManagementDepartment
IVTire BusinessDepartment
Alibaba.com
Team
LogisticsDepartment
Human
ResourcesDepartmentEngineeringDepartment
OnlineBusinessOperationDepartmentoftoolmall.com
OfflineBusinessOperationDepartmentoftoolmall.com
Supply
ChainDepartment
Supply
ChainDepartment
Storage,Barbecueand Similar
ProductsDepartmentHouseholdSupplies,OutdoorLeisureSuppliesand SimilarProductsDepartmentNon-HandTool DesignDepartment
Electric
ToolDepartmentLightingFixture and
ElectricalApplianceDepartment
VacuumCleaner and
Cleaning
ToolDepartment
Nail Gun
andFastening
ToolDepartment
International
MarketingDepartment
VIII
WORKPROInternational
MarketingDepartment
Financial
Center
AdministrativeManagementCenter
ProcurementManagementCenter
Domestic e-CommerceDepartment ofSelf-owned Brandstoolmall.comR&DCenter I
R&DCenter
II
R&DCenterIII
R&DCenter
IV
QualityControlCenter
Information
CenterInternational
Marketing
Center I
International
MarketingCenter II
NorthAmericanKA Center
BrandManagementCenter
Internationale-CommerceCenter
Marketing
Division
Organizational Structure of HangzhouGreatStar Industrial Co., Ltd.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Exemplary Standardization Enterprise inHardware Industry of China in 2024
Zhejiang-based Flagship Private Multinational
Enterprise of the Year 2024
2024 Headquarters EconomyModel Enterprise in Hangzhou2023 High-quality Development Award, forZhejiang GreatStar Tools Co., Ltd.
GreatStar won the title of “Zhejiang 2024 Leading
Enterprise in Service Industry”
Listed in 2024 Top 500 High-tech Enterprises inInnovation Capabilities in Zhejiang Province, ranked 77th
Key Enterprise of Digital Service Trade in
Hangzhou in 2024Hangzhou GreatStarTools Co., Ltd. wasofficially incorporated.????
Established theheadquarters, aswell as the packagingand logistics centerin Hangzhou.
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Received the title of"National-level IntellectualProperty DemonstrationEnterprise".Established across-borderstore, WorkPro, onAmazon for the first time.
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GreatStar IndustrialDesign Center wasapproved as a nationalindustrial design center.Acquired ARROW in theUnited States to embark ona journey of global businessexpansion.
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Acquired Suzhou HuadaKejie, a renowned lasermeasurement productcompany.The Company officiallyentered the field of lasermeasurement tools.
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The Company wassuccessfully listed onthe Shenzhen StockExchange.
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Established the firstDIY home decorationhand tool brand
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Obtained the"LaboratoryAccreditationCertificate" issuedby CNAS.
GreatStar was awardedthree major honors,including the "MostInfluential Enterprise inHardware andElectrical Industry ofChina".
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GreatStar acquired thenail gun business ofBeA, the top fasteningtool brand in Europe,and expanded itsbusiness layout ofelectric tools.
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The Company was recognizedas a national-level high-techenterprise.GreatStar acquired thefamous brand “Shop-Vac” ofvacuum cleaners in NorthAmerica, and started to marchinto the electric tool market.
????The Company acquiredLISTA, a well-knownstorage cabinetmanufacturer inEurope, and since thenentered the toolcabinet field.
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History
Honors and Awards Earned in 2024
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
As one of the leading enterprises in the tool industry, GreatStar adhered as always to its original intention, devoted great effortsin expanding its core business of tools, and constantly improved its professional and technological capabilities to contribute tothe progress of the industry. In promoting the high-quality development of business operation, the Company actively fulfilled itssocial responsibilities and demonstrated its accountability in creating social value. As for the implementation of corporate gover-nance, we actively built a reasonable governance framework for fully integrating the corporate governance into our strategicplanning, risk management and daily operation activities. In the field of environment protection, we actively carried out researchand development of various industry-leading energy conservation and environment protection technologies, and effectivelyfulfilled our corporate responsibilities under the “carbon peaking and carbon neutrality goals”. In terms of social responsibility,the Company actively responded to national policies and calls, leveraged its professional advantages to support cultural inheri-tance, deeply integrated serving society with business development, and collaborated with all stakeholders to promote sustain-able development, to continuously drive the progress of the society and industry.
In order to gain a deeper and more accurate understanding of the expectations and demands of all stakeholders and enhance theprofessional level, pertinence and materiality of the Report, the Company carried out benchmarking with peers and invited itsstakeholders to participate in expert group discussions to select issues with “impact materiality” and “financial materiality” to theCompany’s environmental, social and governance activities, and to disclose them in the Report as material information, settingthe direction and laying a foundation for building the Company’s sustainable development system.
GreatStar attached great importance to the communication and exchange with all internal and external stakeholders of theCompany, deeply understood the demands and expectations of various stakeholders by actively establishing a regularcommunication mechanism, and made timely adjustments according to the results of communication, so as to gain the trust andsupport of all stakeholders and promote the continuous improvement of ESG management work.
Communication with stakeholders
Analysis of issues with double materialityESG Management
Learn about theCompany’s activities andbusiness relationshipsLearn about the externalobjective environmentLearn about the mainaffected stakeholders
Based on the issueslisted in the SZSEGuidelines, refer to thepractice of peers andrating standards toidentify other potentialmaterial issuesIdentify the impacts,risks and opportunitiesrelated to the issues andcreate the issues libraryof the Company
Assess the impactmateriality and financialmateriality of issuesthrough questionnaires,interviews, etc.Integrate assessmentresults to produce thematrix of issues withdouble materiality
Based on the opinions ofthe management,confirm or adjust theassessment results ofmaterial issuesDisclose in the annualESG reports as keyinformation according tothe SZSE Guidelines
EmployeesGreen operation
Safety and quality of products and servicesInnovation driven development
Risk management and compliant operationSupply chain securityData security and privacy protectionAddressing climate changeEnvironmental compliancemanagementWastes and pollutantstreatmentEnergy utilizationWater resources utilization
Communication with stakeholdersInvestor relation managementAnti-bribery and anti-corruptionCorporate governanceESG management
Equal treatment of small andmedium-sized enterprisesSocial contributionRural revitalization
Financial materiality
Matrix of issues with double materiality
High
HighLow
Addressing climate changeWastes and pollutantstreatmentEnvironmental compliancemanagementEnergy utilizationWater resources utilizationGreen operation
Environmental
Rural revitalizationSocial contributionInnovation driven developmentSupply chain securityEqual treatment of small andmedium-sized enterprisesSafety and quality of products andservicesData security and privacy protectionEmployees
Social
Anti-bribery and anti-corruptionCorporate governanceCommunication with stakeholdersInvestor relation managementRisk management and compliantoperationESG management
Governance
Learn about the backgroundsof the Company’s activitiesand business relationships
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Communication andResponses
General meetings of shareholdersPerformance briefingsFinancial reportsAnnouncements
Strict Quality ManagementProduct Safety InspectionIncrease R&D InvestmentEnhance Customer Service SystemCustomer Satisfaction SurveyRegular information disclosureCommunity service voluntary activities
Social benefit programsPromoting green production and green office
Establishing the GreatStar Foundation
Compliance with Contractual Obligations
Industry ConferenceStrategic CooperationSupplier trainingAdvocating for a green supply chainStrengthening democratic management
Employee activitiesEmployee trainingOptimizing compensation and benefits plans
Regular communication and reportingInvestigations and surveys by professional
institutions
Implementation of government policies
Fulfilling social responsibilities
Expectations andDemands
Economic performanceCorporate governanceCompliance risk controlProtecting shareholder rights and interests
Employment promotionResponses to national policies
Environmental managementCompliance with laws and regulations
Innovation and R&DMutual Benefit and Win-Win Cooperation
Responsible supply chain management
Fair and impartial procurement
Business ethics
Environmental protectionCommunity benefit activitiesInvestor relation managementTransparent operation and information disclosure
Strengthening communication and exchange
Employee rights and benefitsEmployee development and training
Occupational health and safety
Innovation and R&DProduct and Service Quality AssuranceCustomer Privacy and Data Security
StakeholdersShareholders and senior
managementGovernment and regulatory
agencies
Community, thepublic, media, etc.
Partners and suppliers
Employees
Customers
Identify ESG issues
Assessment and rankingof issues by materiality
Confirm and report the
materiality of issues
Flow chart of issue materiality analysis
Impact materiality
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Taking the Lead in PromotingCorporate Governance Based onRefined Compliance Management
Compliant Governance
GreatStar regarded compliant governance as a cornerstone of enterprise forachieving sustainable development at all times. We kept on improving the corporategovernance structure to ensure the transparency and efficiency of decision making,while improving the management of investor relations and actively responding toinvestor concerns to build long-term trust and relationships. In terms of compliancerisk control and anti-corruption, we established a systematic risk managementmechanism to ensure the full compliance of business operation with all applicablelaws, regulations and ethical standards.
Our Principles
Our Actions
SDGs Addressed
·Corporate Governance·Investor Relations Management·Compliance Risk Control and Responsible Business
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
General Meeting of ShareholdersThe General Meeting of Shareholders is the highest decision-making organ of GreatStar, exercising the decision-making power onsignificant matters according to the applicable laws and regulations. The Company held the General Meetings of Shareholders infull accordance with the provisions of the Company Law of the People’s Republic of China, as well as the Articles of Associationand the Rules of Procedure for the General Meeting of Shareholders of the Company. We also applied equal treatment of allshareholders, especially minority shareholders, protected their rights to know, participate and vote on significant matters, andprovided sufficient supports for them to exercise their legitimate rights.
Board of SupervisorsAs the core supervisory body in the corporate governance system,the Board of Supervisors fulfilled its duties in full accordance withthe Rules of Procedure for the Board of Supervisors and otherapplicable rules and regulations. By holding regular meetings ofthe Board of Supervisors, sitting in on meetings of the Board ofDirectors, attending the General Meetings of Shareholders andother ways, the Board of Supervisors comprehensively supervisedthe significant matters, related party transactions, financialconditions, and the performance of directors and senior managers,and put forward professional opinions and suggestions on relatedmatters. The members of the Board of Supervisors were elected infull accordance with all applicable laws and regulations, includingthe Company’s Articles of Association, and effectively fulfilled theirsupervisory duties to safeguard the interests of the Company, aswell as the legitimate rights and interests of all shareholders.
Investor Relations ManagementGreatStar always attached great importance to investor relations management and formulated the InvestorRelations Management Rules to promote the standardized development of investor relations. We provided diversecommunication channels for investors and maintained communication with them by answering their phone calls,answering their questions on the investor interaction platform of Shenzhen Stock Exchange (irm.cninfo.com.cn),conducting online performance briefings, and other means. The Company strengthened the communication,improved the quality of information disclosure, and took other measures to enable the investors to betterunderstand and recognize the Company’s values and strategies, and continuously improve the Company’scredibility, core competitiveness and sustainable development capabilities.
Board of Directors
GreatStar carried out its management work in accordance with the Company Law of the People’s Republic of China, and theShenzhen Stock Exchange Guidelines on the Standardized Operation of Listed Companies, as well as the Articles of Association,the Working Rules for Independent Directors, the Rules of Procedure for the Board of Directors, and strictly implemented theresolutions of the General Meetings of Shareholders. The Board of Directors had its Audit Committee, Nomination Committee,Remuneration and Assessment Committee, and Strategy and Development Committee to provide important advice for thecorporate actions and ensure the efficient operation of the governance structure. All directors carried out their work in accordancewith all applicable laws and regulations, attended the meetings of the Board of Directors and the General Meetings ofShareholders, performed their duties and obligations diligently and responsibly, and actively participated in relevant training andlearning activities, familiarized themselves with relevant laws and regulations, and improved their own capabilities to performtheir respective duties.
GreatStar insisted on the standardization of corporate governance, and abided by the Company Law of the People’s Republic ofChina, the Securities Law of the People’s Republic of China, and the Guidelines on Corporate Governance of Listed Companiesreleased by the China Securities Regulatory Commission and other applicable rules and regulations, to continuously improve itsinstitutional framework of corporate governance. The Company established an organization structure for corporate governancecomposed of the General Meeting of Shareholders, the Board of Directors, the Board of Supervisors and the Management, anddefined a corresponding tiered decision-making mechanism, under which each tier performs its own duties within the scope of itsresponsibilities and authorities, forming a scientific and efficient division of duties upon effective checks and balances.
Prudence
Fairness, openness and impartiality
ComplianceInteraction
Disclosing information objectively,truthfully, accurately and completely
Corporate Governance
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Key Performance
In 2024, the Company held 5 General Meetings of Shareholders, at which a total of 24 proposals werediscussed and approved.
Key Performance
In 2024,the Company’s Board of Directorshad a total of9 members,
including6 female directors,accounting for
66.67%;
and3 independent directors,
accounting for
33.33%.
The Company held 7 meetings ofthe Board of Directors, with anaverage attendance rate of100%;
and convened4 meetings of Audit Committee, 2
meetings of Nomination Committee, and1 meeting
of Remuneration and Assessment Committee.
Key PerformanceIn 2024,the Company held
4 meetings of the
Board ofSupervisors.
Basic principles for investor relations management
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Information disclosure
GreatStar established and kept on improving its information disclosuremanagement framework in strict accordance with all applicable regulatoryrequirements, such as the Rules Governing the Listing of Shares onShenzhen Stock Exchange. The Company formulated and strictlyimplemented its Information Disclosure Management Rules andcontinuously optimized the information disclosure mechanism. Wecontinuously improved the quality of information disclosure, to ensure thatthe disclosed information was true, accurate, complete, concise, clear, andeasy to understand, without any false records, misleading statements orsignificant omissions, and to enable investors and other stakeholders totimely access important information of the Company. At the same time, theCompany also formulated the Insiders Registration Management Rules,strengthened the registration management of the persons knowing theCompany’s inside information, standardized the confidentiality process,maintained market fairness, and effectively protected the legitimate rightsand interests of the Company and investors.
Compliance Risk Control and Responsible BusinessIn 2024, GreatStar carried on optimizing its internal control system and strengthened its risk managementmechanism. The Audit Committee of the Board of Directors performed its duties according to applicable laws andregulations, guided the Audit Department to focus on reviewing the Company’s internal control, financialconditions and use of raised funds, and implemented effective supervision. The Company established ananti-corruption committee led by the Chairman to further strengthen the anti-corruption work; established aspecial department responsible for audit and supervision, which regularly organized comprehensive audits andself-inspections of internal control systems for various business departments and subsidiaries in accordance withthe Internal Audit Rules and the Departure Audit Rules, with the purposes of improving management,standardizing operations, and enhancing quality and efficiency. In addition, the Company conducted specializedtraining on legal risks in various business areas, covering the Anti-Unfair Competition Law of the People’sRepublic of China and other important relevant knowledge, effectively enhancing the compliance awareness ofemployees and providing strong supports for preventing operational risks.
The Company signed the Code of Conduct on Anti-Corruption and Integrity with employees contactingwith suppliers during procurement, administration and other activities, to enhance their awareness ofintegrity and self-discipline.
Case
The 2023 Annual Online Performance Briefing was held to enhance the trust of the capitalmarket in the CompanyIn April 2024, GreatStar introduced its operationresults in 2023 to investors in detail through theOnline Performance Briefing, and made responses tothe main concerns, such as product innovation andmeasures to address fluctuations in raw materialprices. This activity further enhanced thetransparency of communication between the Companyand investors, effectively boosting the confidence ofinvestors in the Company’s development potential.
GreatStar 2023 Annual Online Performance Briefing
The Company signed a Letter of Commitment on Jointly Combating Corruption and UpholdingIntegrity with all suppliers.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Key PerformanceIn 2024,the Company organized and held1 Online Performance Briefing;and answered39 investor questions at irm.cninfo.com.cnand329 investor phone calls;
The Company hadNOT been penalized for violating information disclosure regulations throughout the year.
Key PerformanceIn 2024,the Company preparedand released4 regularreports and made
interim announcements.
Organizational structure of the Anti-Corruption Committee
Chair
The Chairman of the Board of Directors
MembersSecretary of the Board of Directors, legalpersonnel and HR director
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Building a corruption-free business environment with suppliers
Tax managementGreatStar attached great importance to tax compliance management, set up a special Tax Compliance ManagementDepartment, cultivated professional tax management talents, and cooperated with financial and business personnel, to ensurethe effective execution of the Company’s tax compliance management work. The Company established special managementrules for tax compliance management, tax risk management and control, and others and kept on improving the tax managementsystem to improve the Company’s tax compliance and ensure the legal, compliant, sustainable and healthy operation. At thesame time, the Company continued to optimize the communication with tax authorities, dynamically tracked changes in taxpolicies, and systematically collected, analyzed and applied tax exemption policies. GreatStar also conducted in-depth researchon the tax regulations and bilateral tax agreements of the invested countries/regions for cross-border investment business.Furthermore, the Company carried out regular identification and mitigation of tax risks, to effectively reduce tax risks, ensure amore accurate understanding and application of tax policies, and reduce tax examinations and overdue tax payments.
Key PerformanceIn 2024, no corruption incident occurredin the Company.The Company organized4 anti-bribery andanti-corruption training sessions, coveringall directors, managers and employees.All employees had signed the letter ofcommitment on integrity.All suppliers had signed the letter of
commitment on anti-bribery.No unfair competition lawsuit was filedagainst the Company.
Key Performance
The Company had maintained the Grade A Tax Credit Qualification for several consecutive years,reflecting its high capability in tax compliance management.
Key training programs
The Company keeps 100% information reported confidential, only allows the recipient to know suchinformation, and never discloses the informer or whistleblower’s information to any third party.
Training on anti-unfair competition in Chinaand foreign countries
Training on legal and criminal risks of crimescommitted by executives in violation of theirduties
Prevention against legal and criminal risks inprocurement and sales activities
Vietnamese Criminal Law on crimes committedby executives of non-SOE business entities inviolation of their duties
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
GreatStar built an end-to-end ecological management system with greentransformation as the core driving force under the strategic framework ofsustainable development. In terms of energy and resources management, theCompany continued to optimize energy utilization efficiency and implementwater-saving rules to improve the water resource recycling efficiency. The Companyimplemented pollutant and waste classification control to achieve 100%professional treatment and control in full compliance with the industry standards.In response to climate change, the Company set scientific carbon reduction targetsand completed greenhouse gas inventory, promoted green operation models fromall aspects, adopted circular economy solutions to reduce resources consumption,and fulfilled emission reduction commitments through low-carbon transformationof the supply chain and the low-carbon actions of employees. Based onmulti-dimensional green practice, GreatStar continued to improve itsenvironmental governance capabilities and to play a leading role in creating asustainable future for the industry.
Jointly Creating an Ecological Futureby Taking Initiative in ImplementingGreen Actions
Environmental Management
Our Principles
Our Actions
SDGs Addressed
·Environmental Compliance Management·Energy Utilization·Water Resources Utilization·Pollutants and Waste Treatment·Addressing Climate Change·Green Operation
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Environmental Compliance ManagementIn 2024, GreatStar carried out regular internal quality management system and environmental management system auditsaccording to the annual environmental objectives, indicators and management schemes, and kept on optimizing managementefficiency. To enhance the environmental awareness and strengthen the fulfillment of environmental responsibilities, theCompany established an emergency management system against sudden environmental incidents, signed the Letter ofCommitment on Environmental Protection, and required suppliers to sign the Environmental Safety and Protection Agreement forSuppliers, to implement various environmental protection measures and promote the green development. At the same time,GreatStar Tools, a subsidiary of GreatStar, passed the cleaner production certification and issued an audit report, fullydemonstrating the Company’s active practice and significant achievements in the field of cleaner production.
GreatStar and Zhejiang GreatStar Tools passed the Certification
of Environmental Management System
GreatStar passed the FSC ForestManagement Certification
Environmentalmanagement approach
Create a world-class enterprise based on optimizedenvironmental protection and green development
Calculate the ratio of the quantity of substance involvingair (or water) environmental risk to its critical valueQ<?
Q≥?Production process andair (or water) environmentalrisk control level (M)
The ratio of the quantity of substanceinvolving air (or water) environmentalrisk to its critical value (Q)The risk level of air (or water) environmental emergencyRisk level of environmental emergency in the Company
Moderate environmental riskHigh environmental riskVery high environmental risk
The sensitivity ofair (or water) environmentalrisk receptor (E)
Emergency Rescue Command
and Leading Group
Emergency Rescue CommandCommander in ChiefDeputy Commander in Chief
Chemistry professors, and environmental
protection expert panel
Organizational structure of GreatStar Tools for environmental emergency rescue
Supplies andSupport Team
EmergencyFire Brigade
Medical Aid Team
Security andGuard TeamRescue andEvacuation TeamCommunicationand Publicity Team
DisinfectionMonitoring TeamDisaster Reliefand Emergency Repair Team
Command Center
Environmental emergency risk assessment process of GreatStar Tools
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Training on hazardous waste management
In December 2024, GreatStar Tools organized a training session on hazardouswaste management, covering a total of 17 employees. The training focusedon the accountability for hazardous waste management in the workshop andthe requirements for collection and storage in the workshop. After training,the trainees further mastered the hazardous waste disposal process.The training session not only enhanced the professional knowledge andskills of employees in hazardous waste management, but also helped thecompany standardize hazardous waste treatment in daily production andreduce environmental pollution risks. It also enhanced the environmentalawareness of employees, and helped the company in improving its complianceand efficiency in environmental protection, achieving the sustainable development,and establishing a good environmental image.
Environmental Pollution Emergency Response Plan of GreatStar Tools
2022
479.74
478.59
664.65
20232024
Energy Utilization
GreatStar actively responded to the national energy development strategy and regarded energy conservation and efficient use asan important obligation at all times. The Company took standardized energy management as the starting point and establishedan energy management system integrating the clean production, energy conservation, emission reduction, and pollutionprevention. The Company vigorously promoted the development and application of new energy by applying strict control on thesources, paid attention to energy-saving technology innovation, gradually built an ecological circular economy system, and madeevery effort to build a green and efficient enterprise.
Compliance with laws and regulations, energy conservation & consumption reduction, total employee involvement, and green production
Energy management approach
The investment of the Company in environmental protection during the past three years (Unit: CNY 10,000)
Including air pollution caused by failure of waste gas treatment facility,chemical leakage, ?re or explosion, which is dealt with by taking respectivecountermeasures, such as emergency repair, leaking stoppage, evacuationand ?re?ghting.Air pollution
Including chemical leaks, abnormalities in sewage treatment plants, andburst of sewage collection pipelines, which are dealt with by taking respectivecountermeasures, such as noti?cation, shutdown and emergency repair.Water pollution
Take response actions divided into three levels based on the degree of danger,for dealing with ?re, leakage, nonconforming storage and other pollutions.Hazardouswaste pollution
Deal with by taking preventive measures (providing facilities and improvinginternal rules) and emergency response actions (controlling leaks and treatingpolluted soil).Soil pollution
Case
Organized training on hazardous waste management to consolidate the foundation ofenvironmental protection
Key PerformanceIn 2024, the Company ranked the1st in the cityand the1st in the equipment manufacturing
industry in the 12th round of comprehensiveevaluation of industrial enterprises and rated asGradeA in the comprehensive evaluation.
In 2024, the Company’s investment in environmentalprotection was CNY
6.65 million.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
2627
To further enhance its capability of energy management, the Company worked hard to build an energy management system,formulated energy policies and objectives, integrated existing standard operating procedure (SOP) documents of energymanagement system, and developed a series of new SOP documents based on the characteristics of energy management. Atpresent, the Company’s energy management SOPs have been fully implemented in compliance with the requirements ofGB/T23331-2020/ISO50001:2018 Energy Management Systems, providing solid process management supports for theCompany’s sustainable development.
In 2024, the electricity consumption is to be decreased by 5% compared to 2023.
Develop the Risks and Opportunities Control Procedure to identify, analyze and evaluateinternal and external energy risks and opportunities, develop corresponding measures, andintegrate them into the management system.Establish the Operation Control Procedure and other rules to implement and evaluate theeffectiveness of measures, and ensure the stable operation of the energy management system.Establish energy goals and indicators that cover all areas and levels in accordance with theEnergy Goals, Indicators and Plans Management Procedure.Develop an energy management implementation plan, clarify duties, responsibilities,methods, timeline, and verification methods, implement it after review and approval, andregularly evaluate and update it.Identify, monitor and measure energy performance parameters through the EnergyBenchmarks and Energy Performance Parameters Management Procedure. The parameterscover enterprises, major energy consuming steps, etc., and can be directly measured orcalculated. Establish energy benchmarks based on specific principles, to reflect energyutilization conditions, and use for comparative analysis after review and approval.
Risks andopportunitiesmanagement
Develop and implement an energy data collection plan according to the Energy Monitoringand Measurement Control Procedure, to identify, monitor, measure, and analyze keycharacteristics that affect energy performance. The collected data includes major energyusage variables, consumption data, etc. The annual review plan is updated as needed toensure the accuracy and reproducibility of the data.Conduct energy reviews at the beginning of each year or when significant changes occur infacilities according to the Energy Review Control Procedure.Utilize various data tools to analyze energy use and consumption, identify major energyconsuming areas, identify improvement opportunities, and rank them. Record the reviewresults to provide a reference for energy management decisions.
Energy management system
Goals andindicators planning
Energy performance
parameters and
benchmarks
Energy data
collection
Energy review
Energy conservation and consumption reduction
Energy-saving replacement of equipment
The Company introduced the high-efficiency energy-saving motors, variable frequency speed regulation technology, and otheradvanced products and technologies, to replace the motors used in the workshop for reducing the energy consumption of thesemotors during operation. The Company also carried out regular maintenance and service to ensure that the motors were always intheir best working conditions, further improving energy utilization efficiency.
Replacement of grinding wheel dressing processThe Company made major upgrades to the grinding wheel dressing process, successfully introduced anadvanced electrical discharge dressing technology, and abandoned the previously inefficient green carbongrinding wheel dressing method.This measure not only effectively reduces the waste of green carbongrinding wheels, but also achieves more rational utilization of resources.Saving about 724MWh of electricity annually, equivalent to reducing 510 tons of CO
emissions.
The Company replaced the motor of the high-pressure water burring machine and upgraded it to anenergy-saving motor to reduce power consumption.
It is expected to save approximately 40.8MWh of electricity annually, equivalent to reducing approximately287 tons of CO
emissions.
Thereby, approximately 59MWh of electricity is saved and approximately 59 tons of CO
emissions arereduced annually, achieving energy conservation and emission reduction.
Energy-saving renovation of high-pressure water burring machine
Energy-saving renovation of insulation bucket for Shiwanke injection molding machine
2024 energy management goal
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Indirect energy consumptionIncluding: electricityIncluding: steamIncluding: heatTotal amount of purchased electricity
TCE
TCETCE
MWh
MWhMWhMWhMWh
762,668.946,200,211.40
353.96
6,196,485.30
Total self-generatedelectricity consumption
3,726.10
Clean energy consumption5,024.08
Including: solar energy5,024.08
Proportion of cleanenergy consumption
%
0.08
Comprehensive energy consumption
2024IndicatorsUnits
Energy consumption intensityDirect energy consumptionIncluding: gasoline
Including: diesel
Tons of coal equivalent (TCE)TCE/CNY 10,000 ofoperating revenueTCELL
765,980.20
0.52
3,311.2637,009.82261,301.44
Including: natural gas10,000 cubic meters
221.03
Renewable energy utilization
The Company upgraded the lighting system of the factory buildings by introducing high-efficiency and energy-saving lighting fixtures,such as LED lights and energy-saving fluorescent lamps, to replace the existing high-energy consumption lighting fixtures. Thebrightness is automatically adjusted according to the actual lighting conditions, reducing lighting energy consumption. At the same time,the Company adopted a graded design for the lighting system based on the lighting needs of different workshop areas, using differentlight sources and control systems to achieve intelligent management of lighting system by areas and grades for saving more energy. Forexample, the brightness of lighting fixtures is automatically adjusted according to the workshop light intensity.
Lighting system upgrade
The Company strengthened electricity consumption management through a series of measures to ensure that power is cut off promptlywhen people leave the equipment without affecting normal production. Specific measures include: formulating detailed electricity usemanagement rules and clarifying the electricity use responsibilities of each position; strengthening energy conservation training foremployees; enhancing employees’ awareness of energy conservation and emission reduction; regularly conducting electricity useinspections of the office spaces; and identifying and correcting improper behaviors at any time.
Strengthening the management of electricity usage
In 2023, the Company successfully built a distributed photovoltaic power station on the roof of the factory building, whichgenerates up to 3,390MWh of power annually, accounting for more than 30% of the Company’s total electricity consumption. Thisproject significantly reduces the dependence on non-renewable energy and effectively reduces the Company’s production costs.At the same time, the Company actively promoted the application of new energy forklifts and vehicles in its logistics handling andtransportation processes, in order to comprehensively reduce the Company’s overall carbon emissions during the transportationand make contributions to achieving more environment-friendly and sustainable development goals. In the future, the Companywill increase the proportion of independently developed photovoltaic projects or further increase the use of renewable energy, asthe case may be, so as to continuously improve its green energy strategy.
Solar photovoltaic arrays deployed in the factory areaNew energy forklift
Energy consumption in 2024
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Water Resources Utilization
GreatStar formulated the Water Conservation Management Rules, set up a leading group for water conservation work, and built acomplete set of water conservation management system covering goal setting, process control and effect evaluation. Throughregular self-evaluation of water conservation, the Company conducted in-depth analysis of water use efficiency, the application ofwater-saving technologies, and the effectiveness of management measures, to continuously optimize water resource utilizationefficiency. In 2024, GreatStar vigorously promoted water-saving technology transformation and management innovation, activelyimplemented equipment upgrades, process optimization and other measures, and strived to create a green development modelfor efficient utilization of water resources.
In 2024, the annual water consumption is to be reduced by 5% compared to 2023.
2024 water resources management goal
2024IndicatorsUnitsTotal water consumption
Water resourcesutilization intensity
TonsTons/CNY 10,000of operating revenue
???,???.??
?.??Water resources utilization in 2024
Waster saving inmain water useprocess steps/equipment
Waster saving inauxiliary processsteps
Strengtheningwater usemanagement andpropagation
Key water-saving measures of the Company in 2024
Water-saving technological processes, equipment and appliances wereadopted for new, renovated and expanded projects. Water-saving facilitieswere set up in strict accordance with the “three simultaneities” principle,which means that they were designed, constructed and put into operationsimultaneously with the main projects, and could only be used after passingthe acceptance inspection after completion.Water saving inproject construction
Inspection and
assessment
Water savingin daily operation
Water conservation management system
The main production departments implemented water management accordingto established plans, and the enterprise management department was responsiblefor formulating the assessment indicators, such as the water consumptionper ton of products;Each water consuming department was required to strengthen the management ofwater circulation facilities, actively carry out water-saving renovations, implementgraded and cascading water use, and strengthen daily water use managementto prevent “leak, drip, overflow and seepage”, and promote and correctlyuse water-saving appliances.
The Public Works Department of the Company was responsible for themanagement and inspection of water-related facilities and water-savingconditions, as well as summarizing and reporting the results to the EnterpriseManagement Office for assessment.
Water-cooling grinding process: Introduced a grinding process circulating water supply system,regularly filtered and cleaned impurities in the water used for grinding, reduced the use of freshmunicipal water, and estimated to reduce the use of 228 tons of fresh municipal water per yearunder the same production capacity; and established a regular inspection mechanism for pipelinesand equipment, including valve sealing checks and evaluation of water pump operating efficiency, toensure that the system was free of leakage, and to promptly detect and repair potential leak points.Dust removal system: Fully utilized the waste water treatment system in the production process,used appropriately treated waste water for replenishing the dust removal system, and therebyreduced dependence on fresh water.Workshop flushing and equipment cleaning: In the process of workshop flushing and equipmentcleaning, promoted the use of manual cleaning methods, such as using mops and cloths toreduce the amount of water used for direct flushing. For the necessary flushing steps, adoptedlow-pressure flushing or intermittent flushing methods to decrease the flushing intensity.Institutional construction: Developed and improved water use management systems, clarifiedthe water saving responsibilities of each department and position, established water-savingassessment and reward mechanisms, and stimulated the water-saving enthusiasm of employees.Water-saving training: Regularly organized water-saving knowledge lectures and skill training toenhance the water saving awareness and operational skills of employees, encouraged them topropose water saving suggestions, and created a good water-saving atmosphere.Water saving propagation: Utilized bulletin boards, internal newsletters, social media and otherchannels to widely propagate the importance and measures of water saving, and enhance thewater saving awareness of all employees.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Pollutants and Waste Treatment
With regard to waste treatment, GreatStar actively fulfilled its social responsibility and attached great importance to the impactof production process on the environment. The Company formulated the “Three Waste” Management Rules in accordance with theEnvironmental Protection Law of the People’s Republic of China, the Law of the People’s Republic of China on the Prevention andControl of Solid Waste-related Pollution, the Law of the People’s Republic of China on the Prevention and Control of WaterPollution and other applicable laws and regulations, for clarifying the end-to-end norms from the sources of pollution to the finaltreatment, so as to strengthen effective management of waste water, waste gas and solid waste (the “three waste”), ensure propertreatment of various pollutants, and comprehensively safeguard environmental safety and employee health.
The waste water generated during the production processes of the Company mainly came from cleaning, grinding machine toolwater cooling, polishing spray and domestic sewage. The clean water was separated from the sewage in the Company’s factoryarea, and the rainwater was also separated from the sewage. The waste water from grinding machine tool water cooling wasrecycled and not discharged outside the factory area. The waste water from cleaning was discharged into the Company’scomprehensive sewage station for treatment, after pre-treatment in the sedimentation tank in the workshop. Domestic sewagewas pre-treated in oil separators and septic tanks, then discharged into the municipal sewage network, and finally treated byHaining Yancang Sewage Treatment Plant to meet the applicable standards before being discharged to the natural waters.
Pollutant Discharge PermitWaste water
2024IndicatorsUnitsTotal waste water dischargeIncluding: total amountof industrial waste waterIncluding: total amountof domestic wastewaterChemical oxygen demand (COD)
Ammonia nitrogen (NH3-N)Total nitrogen (TN)Total phosphorus (TP)
Biochemical oxygen demand (BOD)
Suspended solids in waste water
10,000 cubic meters10,000 cubic meters10,000 cubic meters
Tons
TonsTonsTons
Tons
kg
23.17
14.99
8.18
7.90
1.23
0.98
1.11
0.08
4,976.00
Water pollutant emissions in 2024
ApproachesGoals andindicatorsItems
Water pollution
control
Goal: To meet the sewagedischarge standardsIndicator: GB8978-1996
Integrated Wastewater
Discharge Standard
The water pollution management goals, indicators and approaches of the Company in 2024
Collect grinding and cleaning waste water uniformly,discharge it into the sewage station for unified treatment tomeet the applicable standards, and then discharge it intothe municipal sewage network;Recycle the grinding machine tool cooling water; and for thewaste water generated accidentally, pipe it to the wastewatertreatment system for treatment to meet the applicable standards,and then discharge it to the municipal sewage network;Use environment-friendly floor cleaning solution to ensure thatthe water quality meets the discharge standards after floor cleaning;Engage qualified environmental monitoring departments toconduct water quality monitoring each year.
1.2.3.4.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Scraps and solid waste generated during the Company’s production process were collected and disposed of by qualified agenciesfor recycling and reuse. Scrapped products were uniformly sold to local collectors for reclamation, with a recycling rate of up to 100%.To dispose of hazardous solid waste and chemicals, the Company formulated a series of internal rules, such as the Hazardous SolidWaste Management Rules and the Hazardous Chemicals Management Rules, to impose strict requirements on hazardous solidwaste and chemicals from storage to accident handling, and establish a rigorous management system. At the same time, theCompany arranged independent storage areas to eliminate the risks caused by the hazardous waste and chemicals to theworkshops, and engaged qualified third-party agencies to dispose of them, to ensure the proper disposal of solid waste andpractice the concept of green development.
Solid waste
Waste gas treatment facility
The waste gas generated during the Company’s production process mainly came from welding, polishing, shot blasting, oiling, inkprinting, quenching, and cold heading. In 2024, the Company adopted the method of source replacement in accordance with localenvironmental protection policies, to replace oil-based paints for coating and oiling lines with water-based paints, reducing the useof toxic and harmful substances and significantly reducing the emission of air pollutants.
Waste gas
Air pollutioncontrol
Collect the waste gas from the ink printing by using a gas collection hood,and then discharge it at a high altitude, followed by regular testing;Absorb the waste gas, which is in a small amount, from the painting andoiling lines with activated carbon, and then treat it properly, followed byregular testing;Collect the waste gas from the polishing line by using a gas collectionhood, treat it by a cyclone and water spray dust removal system, andthen discharge it at a high altitude, followed by regular testing;Collect the waste gas from the shot blasting line by using the sealedequipment enclosure, remove the dust in it by using bag filters, and thendischarge it at high altitude, followed by regular testing;Dispose canteen oil fume regularly, and strengthen management toensure reasonable discharge;Directly burn the waste gas from the mesh belt furnace quenching,collect and discharge it at high altitude; collect the waste gas fromtempering by using a gas hood, treat it with a high-voltage electrostaticoil removal device, and then discharge it at high altitude, followed byregular testing.
ApproachesGoals andindicatorsItems
To meet 100%applicable waste
gas emission
standards
2024IndicatorsUnitsTotal waste gas emissionsVolatile organic compounds(VOCs) emissionsParticulate matter (PM) emissions
10,000 cubic meters
kgkg
4,023.04
128.02
1,275.21
Air pollutant emissions in 2024
1.2.3.4.5.6.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Goal: To dispose in compliance with environmentalprotection requirements, and reduce environmental risks.Indicators: 100% of hazardous solid waste is stored byright classification and sent to qualified agencies forbeing disposed of properly.
ApproachesGoals and indicatorsItemsDisposal ofhazardoussolid waste
Chemicalspillage/leakage
The solid waste management goals, indicators and approaches of the Company in 2024
2024IndicatorsUnitsTotal amount of waste generatedIncluding: total amountof hazardous wasteIncluding: Total amount
of harmless wasteDensity of hazardous wasteDensity of harmless waste
Total amount of recycled
/reclaimed wasteWaste recycling rate
TonsTonsTonsTons/CNY 1 millionof operating revenueTons/CNY 1 millionof operating revenue
Tons
%
2,729.332,675.68
53.65
0.1808
0.0036
818.00
29.97
The Company’s injection molding workshop actively implemented theconcept of green production and achieved significant results in wastereduction. The workshop collected the rejected materials, scrappedmaterials and defective products of injection molding machine in acentralized manner, and crushed and reclaimed them to achieveresources recycling. Thereby, the Company reduced its annual plasticwaste emissions by approximately 120 tons, which not only improvedthe utilization rate of plastic materials and decreased productioncosts, but also reduced the environmental pollution caused by waste,effectively promoting the Company’s sustainable development. Thisachievement reflects the Company’s accountability in environmentalprotection and provides a reference for waste reduction in theindustry to promote the entire industry evolving towards green andsustainable development.
The noise pollution generated during the production processes of the Company mainly came from the mechanical noise generated bythe operation of various mechanical equipment during the production processes. The Company selected low-noise equipment to reducenoise from the source, arranged equipment reasonably, and did a good job in workshop sound insulation. For high noise equipment,soundproof covers, noise reduction and shock absorption accessories were installed to control the noise level from all aspects andcreate a good working environment.
Noise pollution
Noisepollutioncontrol
ApproachesGoals and indicatorsItems
Hazardous solid waste warehouse
Waste discharge in 2024
2024 noise pollution management goals, indicators and approaches of the Company
Eliminate and replace damaged containers and labels;Engage qualified waste disposal agencies to dispose, withproper record;Maintain and repair the hazardous waste storage room asrequired to prevent leak or pollution.1.2.3.Organize propaganda and education to enhance thesafety awareness of employees;Assign responsible persons to inspect and isolateordinary materials daily, and strengthen theft andspillage prevention measures;Check that fire extinguishers and fire sand are ingood conditions and ready for use at any time;Update the list of chemicals and post MSDSs on thecorresponding work sites;Organize emergency drills for chemical spillage/leakage.
1.2.3.4.5.
Goal: To strengthen the management of chemicalspillages, and minimize the occurrence of spillageaccidents.Indicator: Ensure zero chemical spillage accident.
Goal: To meet noise emission standards;Indicator: The Class II standards of GB12348-90Standards of Noise at Boundary of IndustrialEnterprises.
Case
Recycling of waste materials in injection moldingworkshop to promote waste reduction
1.2.Engage qualified testing agencies every year toconduct noise testing at the factory boundary.Attach warning signs in high noise areas near thegrinding machines and lathes, and require on-siteoperators to wear earplugs while working.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
The GHG emissions of Scope 1 and Scope 2 per unit of output value in 2024 are reduced by 1% compared to 2023.
GreatStar Tools GHG emissions reduction goal
Addressing Climate ChangeGreatStar set its green and low-carbon development path from a strategic perspective and built a full-chain carbon managementsystem. The Company established a leading group responsible for the management of green and low-carbon factory, formulatedthe Carbon Emission Management Rules, and set implementation goals for building the green and low-carbon factory in the periodfrom 2023 to 2028. At the same time, the subsidiary GreatStar Tools made an inventory of greenhouse gases (GHG) in accordancewith the standard ISO14064-1, for systematically counting the greenhouse gas emissions in Scopes 1, 2 and 3, and producing theGHG Inventory Report to provide data support for scientifically formulating emission reduction strategies. In addition, theCompany continued to enhance the transparency of carbon management through Carbon Disclosure Project (CDP) disclosure,Science Based Targets Initiative (SBTi) target setting and other measures, and implemented the “dual-carbon commitments” withpractical actions, adding impetus to the sustainable development of the industry.
GreatStar met the general and basic requirements stipulated in the Notification on Issuing the Evaluation Guidelines for theBuilding of Green & Low-Carbon Industrial Parks and Green & Low-Carbon Factories (2024 Edition) issued by the ZhejiangProvincial Economy and Information Technology Department, and gained a comprehensive evaluation score of 95+8.4 points. Tosome extent, the Company led the green development of its industry in Zhejiang Province and even the whole country, andachieved the corporate green development well.
Building of green factory
Unit202320252028IndicatorTotal energy consumption perunit of product (equivalent)
TCE/10,000
products
0.06610.0630.059
GHG emission sources and types within the boundary of GreatStar Tools
Activities of GreatStar Tools within the scopes and identification of GHG emission sources
CategoriesFacilities/Activities
Scope 1Direct GHG emissions
Scope 2Indirect GHG emissions
from imported energy
Scope 3Indirect GHG emissionsfrom other sources
Energy (E)
Energy (E)
Heat treatment
Canteen
Vehicles for commuting
of employees
Gasoline combustion
Methanol combustionNatural gas combustionTransport (T)
Transport (T)
Fugitive (F)
Production andoffice activities
Electricity
Business purpose vehicle
Forklift truck
Gasoline combustion
Diesel combustionFugitive emission
of methaneFugitive emission
of methaneDomestic sewageIndustrial sewage
GreatStar's green and low-carbon factory construction goals from 2023 to 2028
Facilities/ActivitiesHeat treatment, canteenBusiness purpose vehiclesMotor vehiclesDomestic sewageIndustrial sewageProduction and office activities
Purchase of raw materials
Natural gascombustion
Gasoline combustionDiesel combustion
Combustion ofgasoline and dieselCombustion ofgasoline and dieselGasoline combustion
√ √ √
√ √ √
√ √ √
√ √
√ √ √
√ √ √
√ √ √
√ √ √
Emissionsources
Possible types of GHG emissionsCO
CH
N
OHFCsPFCsSF
Purchase of raw materials
Combustion ofgasoline and dieselGasoline and dieselcombustion/electricityShipment of finished
products
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Shipment of finished products
Vehicles for commuting
of employees
Fugitive emissionof
methaneFugitive emissionof
methane
Electricity
Green Operation
GreatStar adapted to the trend of green development, and implemented all-round green operation and resources recyclingmeasures from multiple key areas, such as office work, packages and production. The Company called for paperless office,expanded the use of energy-saving equipment, and reduced energy consumption; adopted environment-friendly andbiodegradable materials in the packaging process to reduce packaging waste; and introduced advanced technologies to optimizethe process flows and improve resources utilization. By virtue of these measures, the Company effectively reduced the resourcesconsumption and environmental impact, facilitating the sustainable development of the industry.
Green operation measures
Key Performance
The Carbon Footprint Report publishedby the Company on its website
In 2024, the Company carried out product carbon footprintaccounting and verification, and published the correspondingreport on its official website. According to the accounting results,the product carbon footprint of GreatStar Tools in 2023 was1,945.52 tCO2e.
The Company extended the carbon reduction to the entire life cycle of the supply chain, prioritized low-carbon raw materials basedon supplier evaluation, collaborated with key suppliers to optimize the procurement processes, and completed the carbonemission investigation of high carbon emission supplier groups in 2024. At the same time, the Company enhanced the low-carbonawareness of employees through thematic training, online courses and other means, and advocated green mobility, to reduce theCompany’s overall carbon emissions in the transportation aspect.
Supply chain carbon reduction
Material replacement and plastic reduction:
The product blister packs were changedfrom PVC to PET, which is easier to recycleand reuse, reducing the pollution of plasticwaste to the environment and improving theenvironmental performance of packagingmaterials.Reuse of packaging materials: By reusingpackaging materials, such as paper tubes,cardboard boxes and plastic bags, duringthe production process, the usage of plasticblister packs is reduced by 15% compared to2023. This not only saved costs, but alsoreduced resources consumption and thegeneration of packaging waste.Adopting a new type of turnover boxes: Calciumplastic turnover boxes were adopted to replacesome traditional corrugated paper turnoverboxes to improve the reuse rate of packagingmaterials. It is expected to reduce the wasteof corrugated cardboard boxes by about 1ton per year, reducing dependence on paperresources and the amount of packagingwaste generated.
Upgrading and recycling
of packaging materials
Wooden pallet repair and reuse: The repair andreuse of discarded wooden pallets in the factoryarea is expected to save about 10 tons of newwooden pallets per year, reducing the logging ofwood, and decreasing the energy consumptionand environmental pollution caused by theproduction of new wooden pallets.Waste material disposal in injection moldingworkshop: The injection molding workshop crushedand reused the rejected materials, scrappedmaterials, and defective products of theinjection molding machine, reducing the annualdischarge of waste plastics by about 120 tons,improving the efficiency of plastic material use,and reducing the impact of plastic waste on theenvironment.
Reuse of discarded resources
As for the office work, the Company activelypromoted double-sided printing and paperlessoffice, as well as digitalization of some officework. Benefiting from these measures, theCompany reduced the use of paper, decreasedthe consumption of forest resources, andaccordingly reduced the energy consumptionand environmental pollution caused by paperproduction, to improve office efficiency, andachieve efficient utilization and greening ofoffice resources.
Optimization of office resources
Green operationpromoting sustainabledevelopment
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
GreatStar understands that innovation is the core engine for the prosperity of theindustry, industry-wide cooperation is a key strategy to expand boundaries andachieve win-win results, product quality is crucial for an enterprise to keep afoothold on the market, supply chain security is critical to ensure stable operation,and data security is essential for an enterprise to adapt to the disruptive digitaltransformation. Therefore, to keep pace of the development of industry, theCompany deeply integrated these five understandings to build a sustainable,efficient and high-quality industry ecosystem, in order to achieve the permanentdevelopment of the enterprise and jointly drive the progress of the industry.
Jointly Promoting the IndustryDevelopment Based on ContinuousImprovement
Common Progress
Our Principles
SDGs Addressed
Our Actions·Innovation-Driven Growth·Industry Cooperation·Product Quality·Supply Chain Security·Data Security
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Main Honors
Innovation-Driven GrowthGreatStar developed the R&D Innovation Incentive Plan, to fully stimulate the innovation potential of the R&D team, provide astrong incentive support for making achievements in innovation, and ensure that each innovator could realize the organicintegration of his own value and the corporate value on the platform provided by the Company. At the same time, in order to ensurethe efficient advancement and high-quality delivery of new product development projects, the Company established a set of NewProduct Development Project Management and Assessment Rules, to apply strict control on the entire process from projectplanning and execution to implementation and ensure the achievement of project goals with a scientific assessment mechanism,laying a solid foundation for the continuous optimization and upgrading of the Company’s product matrix. In the aspect ofintellectual property management, the Company established a complete set of intellectual property management system to ensureall-round and multi-level protection of its innovative achievements, laying a solid foundation for its long-term development.
Actively respond to environmental trends, promote the phase-out of plasticsand fluorine, reduce the impact on the environment, and put the concept ofgreen development into practice.
Focus on the research and development of materials and technologicalprocesses, and settle down to improving the durability and service life ofproducts to meet the market’s demands for high-quality products.
Key Performance
In 2024, the Company was granted with 306 newpatents and possessed a total of4,066 patents,
including859 patents for invention.
RolesDesignations of StandardsTitles of Standards
QB/T 2208-2024QB/T 2443-2024
Electrician’s knivesSteel measuring tapes
Chief drafterParticipating in drafting
In August 2024, GreatStar hosted the kick-offmeeting of Zhejiang Province’s High-Value PatentsIncubation Program for “Micro-Damping Large-TorquePrecision Intelligent Screwdrivers”. The Companyintroduced the program implementation plan frommultiple dimensions, such as program significance,innovation direction, implementation approachesand expected results, and comprehensivelydemonstrated the strategic layout of GreatStar inhigh-value patents incubation programs. This eventlaid a solid foundation for the technological upgradeand market expansion of intelligent screwdrivers,and also set a benchmark for the incubation ofhigh-value patents in the industry, promoting theinnovative development of related industries andenhancing the intellectual property protectionawareness.
The research and development directionsof the Company in recent years
Participation of the Company in the preparation of standards in 2024
The Company’s Certification for Intellectual Property Management System
GreatStar hosted the kick-off meeting ofhigh-value patents incubation programThe Company was listed in the 2024 Top500 High-tech Enterprises in Innovation
Capabilities in Zhejiang Province
The Company was listed in the 2024 Top 500 PrivateEnterprises in R&D Investment in China and the Top 500
Private Enterprises in Patents for Invention in China
Case
Hosted the kick-off meeting of a high-value patents incubation program of ZhejiangProvince, to promote the innovation and development of industrial technologies
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
In 2024, GreatStar made remarkable achievements in industry exchanges and cooperation, and demonstrated its strong strengthand innovative capabilities in the tool industry by participating in international well-known exhibitions, such as the NationalHardware Show in the USA, the Expo Nacional Ferretera (National Hardware Expo in Mexico), the Eisenwarenmesse (InternationalHardware Fair Cologne in Germany) and the China Import and Export Fair (“Canton Fair”). At these exhibitions, the Companyattracted the attention of numerous international buyers and big customers, had in-depth exchanges and cooperation negotiationswith them, and reached multiple cooperation consensuses. The Company’s senior management personally participated in theseevents, further consolidating the cooperative relationships. The Company won wide praise and trust from customers with itsexcellent product quality and technological innovation capabilities. The Company actively participated in industry exchanges andcooperation to enhance its international influence, while making effective contributions to promoting the sustainabledevelopment of the global tool industry.
Industry Cooperation
In December 2024, GreatStar organized training sessions with the theme of “Judgment of Appearance Design PatentInfringement”. By explaining the definition, protection scope and infringement determination of appearance design patentsin China, the infringement determination of appearance design patents in the USA, and design around, the Company helpedemployees gain a deeper understanding of the legal framework for appearance design patent infringements, improve theirability to analyze and solve actual patent infringement problems, and strengthen patent infringement judgments incommercial and GUI appearance design.
GreatStar and the universities in Zhejiang Provinceworked together to carry out in-depth cooperationon the development of innovative products, andplanned to establish a joint research anddevelopment center. Through university-enterprisecooperation, the Company can fully utilize thescientific research resources and cutting-edgetechnologies of universities to accelerate theincubation and implementation of innovativeprojects. At the same time, such cooperation alsohelps to form an innovation ecosystem thatintegrates industry, universities and researchinstitutions, providing the stable driving force forthe Company’s continuous innovation.
In March 2024, the Eisenwarenmesse (InternationalHardware Fair Cologne) was opened in Germany, andGreatStar made a wonderful appearance as the world’sleading hand tool manufacturer and vendor. TheCompany showcased a strong lineup of its own brands,such as Shop-Vac, SK, SwissTech, and WorkPro. Thenewly released ratchet wrench, DuraTech forgedscissors series and other new products attracted a lotof attention. During the three-day exhibition, thenumber of visitors to the booth exceeded a thousand,and the intended order turnover exceeded tens ofmillions of dollars. The Company relies on its globallydeployed manufacturing capabilities and strongself-owned brands to provide high-quality products andservices to customers in over 180 countries andregions. In the future, GreatStar will continuouslyexpand its global business footprint, enhance theinfluence of its brands, and promote high-qualitygrowth of the Company.
In September 2024, the Expo Nacional Ferretera(Mexico National Hardware Expo), the largestprofessional hardware exhibition in Latin America, wasgrandly opened. GreatStar showed up at the exhibitionwith many of its world-famous self-owned brands. Theproducts showcased by the Company fully respondedto the needs of different customers in Latin America,integrated the latest technological research anddevelopment achievements, had novel and beautifulappearance based on rich technological contents, andwon unanimous praise. The Company will take thisexhibition as an opportunity to devote more efforts insizing the Latin American market, and continue touphold its philosophy of “Customer First, ContinuousImprovement, Team Collaboration, Innovation andMutual Benefit” to pursue independent innovation.Through this exhibition, the Company not onlydemonstrated its diverse and high-quality products,but also established connections with numerouspotential customers, and expanded its influence in theLatin American market.
GreatStar appearedat the 2024 EISENWARENMESSE
GreatStar cooperated with the universities in Zhejiang Province in developing projects
GreatStar showed upat the 2024 Expo Nacional Ferretera
Case
Organized training sessions on patent protection to enhance the ability of employees tojudge patent infringements
Case
Made a brilliant appearance at the 2024 International Hardware Fair Cologne to expandinternational influence
Case
Actively carried out university-enterprise cooperation to accelerate the incubation ofinnovative projects
Case Showed up at the Mexico National Hardware Expo to expand the Latin American market
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Quality is the lifeline of an enterprise, and quality management is an everlasting task. GreatStar adhered to the goal of passingthe certification of the authoritative quality management system, constantly optimized the internal procedures, strengthenedquality control abilities, and consolidated the foundation for continuously improving product quality. The Company also adheredto the customer-centric strategy, to win wide recognition and long-term trust from customers by continuously improving productperformance and service experience. At the same time, GreatStar published 40 issues of the Internal Journal of Quality for 10consecutive years, enabling employees to get full insight into quality risks through theoretical learning and case analysis,ensure the safety and quality of products and services, and fulfill their responsibilities to customers through practical actions.
In October 2024, the 136th Canton Fair (“ChinaImport and Export Fair”) was held in Guangzhou.GreatStar adopted a fully open booth designfocusing on brand display, and invited key customersin advance to show the international brand imageand competitiveness from all aspects. The productsunder the brands of WORKPRO, SK, SwissTech,Scruffs, etc. attracted the attention of numerousinternational buyers. The booth also attracted manyFortune 500 clients, such as Kingfisher andWal-Mart, to visit and discuss future cooperation.Through this event, GreatStar showcased diverseand high-quality products, and accelerated theimplementation of its strategic business layout inoverseas markets, to offer excellent services toglobal customers, and continuously promote theinternational business development of the Company.
CaseAppeared at the National Hardware Show in the USAIn March 2024, GreatStar made a brilliantappearance at the National Hardware Show in theUSA, and created a stir with many of its self-ownedbrands. The Company launched multiple advancedhand tool products with innovative design andcutting-edge technologies, winning extensiveattention and high praise from global buyers. Manyinternational customers came to the boothespecially to have in-depth discussions with theCompany on product optimization and serviceupgrades, and reached a broad consensus. Bytaking part in this Show, the Company demonstratedits strong influence and competitiveness in theglobal tool industry, laying a solid foundation forexpanding its international market share andconsolidating its position in the industry.
Planning of managementfunctions and dutiesResources coordinationand managementControl of productrealizationMeasurement, analysis
and improvement
GreatStar participated in the 136th Canton Fair
GreatStar’s quality management approach and product development strategy
GreatStar’s Certification of Quality Management SystemGreatStar’s quality management process
GreatStar appeared at the 2024 National Hardware Show in the USA
Focus on hand tools, continuously develop power tools and lasermeasuring tools, strengthen self-owned brands, expand productcategories, and lead the development of the global tool industry
Continuous improvement in quality based on innovation
Qualitymanagement
approach
Productdevelopment
strategy
CaseParticipated in the 136th Canton Fair to showcase industry-leading strength
Product Quality
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
In 2024, GreatStar conducted an internal audit on the quality management system to verify the effectiveness,adequacy, suitability and operability of the Company’s quality management system. Through such internal audits,the Company can accurately identify potential defects and vulnerabilities in the implementation of managementsystem, adjust and optimize them in a timely manner, ensure smoothness and efficiency of managementprocesses, improve the abilities for compliance and standardization management of quality control, reduce riskscaused by management vulnerabilities, and lay a solid foundation for delivering high-quality products andservices.
In 2024, GreatStar organized a Quality InspectionSkills Competition, participated in by 23 employees.A quiz was set to examine their theoreticalknowledge on quality management systems, industrystandards and specifications, as well as varioustesting technology principles; and a hands-onoperation contest was set to test their practicalabilities in sampling, testing and recording dataduring product inspection. By combining theorieswith practice, the Company promoted the effectiveexecution of quality control, so as to maintain thehigh quality of products and enable the Company tomove forward steadily in fierce market competition.
Key Performance
Honors and awards
Supply ChainInnovation Award
Vendor Partner of the Year
Partner of the Year 2024
Innovative Vendor Brandof the Year 2024
Kingfisher
Lowe’s
The Home Depot
Canada
Amazon
Given by Customers
May 2024
November 2024
November 2024
December 2024
DatesImages of honors and awards
Honors and awards given by customers to GreatStar in 2024
The Quality Inspection Skills Competition
the Company made responses to 100%feedback from customers;Received zero complaint from customer;Successfully offered more than 10,000 timesof after-sales services.CaseOrganized a Quality Inspection Skills Competition to enhance the capabilities of quality control
Case
Laid a solid foundation for delivering high-quality products and services depending on internalaudits under the quality management system
In 2024, the Company organized17 training
sessions on quality;
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Supply Chain Security
To ensure the resilience and reliability of the supply chain, GreatStar committed itself to building a scientific, efficient andsustainable supplier management system. The Company established a supplier development procedure for controlling the qualityof the supply chain from the source, to ensure that all partners align with the Company’s philosophy and standards in terms ofsustainable development. The Company conducted supplier eligibility examinations on their product quality, engagement inenvironmental protection and fulfillment of corporate social responsibilities, and signed letters of commitment on integrity withsuppliers against their non-compliant actions. At the same time, the Company established a supplier relationship managementand procurement collaboration platform, and operated it for all subsidiaries, to achieve the full-process management of supplierdevelopment and reduce supply chain risks.
CaseOffered online training for suppliers to improve the stability of their products
In 2024, GreatStar offered an online training course for suppliers on rust (corrosion) and protection of metalmaterials, standard operation procedures (SOPs), QC case studies, etc. This training course enhanced theprofessional capabilities of suppliers in material protection, production processes and quality control, helping toreduce losses, optimize production, and improve first pass yields, thereby ensuring that they provide high-qualityand stable products to the Company. At the same time, the training course also consolidated the partnershipbetween the Company and suppliers, laying a solid foundation for long-term stable development of both parties.
In 2024, the Company signed the letters of commitment onintegrity with 100% new suppliers.
Supplier datacollectionSupplier development
requirements
Supplier data
evaluation
Supplier productsample collection
Product sample
validationOn-siteassessmentSupplierquotationQuotationconfirmationUpdate of eligiblesuppliers list
Production
capacity
Qualifications, permits and licenses required for production
Production scale, experience
and stability of productionpersonnel
Availability of necessary
production equipment
Qualityassurancecapabilities
Availability of necessarytesting equipment
Proportion of full-timequality control personnel
Quality system management
Technicalcapabilities
Design capabilities
Technological processdevelopment capabilities
Proportion of full-time
technical personnel
Supplier development procedure
GreatStar’s supplier rating dimensions
Key Performance
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Security strategyformulation andimplementation
Data Security
GreatStar built a solid defense line for data security through all-round and multi-level strategic deployment, strictly implementeda series of internal rules for network information security management, actively implemented data security measures, activelyidentified vulnerabilities, responded to risks in a timely manner, and protected data security with practical actions. The Companyregularly organized information security training for enhancing the security awareness of employees, in order to encourage thetotal involvement and total accountability, jointly build a data security defense line, and ensure the integrity, confidentiality andavailability of data.
Data classification,grading andgovernance
Risk monitoringand emergencyresponse
Information securitycompliance managementand audit
Technical support
and innovation
Main duties of GreatStar’s data security team
GreatStar’s network information security management system
GreatStar’s data security risk management actions
Participate in the development and optimization of data protectionstrategies, including access control and encryption measures;Promote training and awareness raising activities related to datasecurity.Monitor data access behaviors and network traffic, and promptlyhandle any abnormalities found;Participate in emergency response to data breaches and securityincidents, and thereafter review the incidents to make improvements.Ensure the Company’s compliance with all applicable laws andregulations of data security;Participate in internal and external audits to evaluate the effectivenessof data security work.
Classify and grade data according to the Company’s data securityregulations;Regularly review the compliance of data processing and storage in allbusiness lines.
Introduce advanced data protection technologies and tools.Assist the development team in conducting data security testingbefore the launch of new products or systems;
Organize 3-5 large-scale special actions on information security every year, covering all employeesof the Company
Organize more than 2 monthly small-scale security actions or special inspectionsConduct a data breach prevention and inspection every quarter, focusing on checking the outgoingtransmission and sharing of sensitive data
Conduct an authority checking activity every six months to disable or cancel
redundant or abnormal data access authoritiesOrganize 2 simulated attack drills each year to simulate scenarios of data leakage or network attacks
Conduct two cross-departmental joint reviews each year to examine the
data protection measures of core business lines
Computerhardwaremanagement
Computersoftwaremanagement
Corporate LANmanagement
Internet access
managementInformationsecuritymanagementData resources
securitymanagement
Softwareresources
securitymanagement
Password
securitymanagement
Dataconfidentiality
and backupmanagement
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
In 2024, the Company organized onedata security training session;
90% employees received the education on datasecurity knowledge;The number of safety vulnerabilities actively reportedby employees was increased by30% year-on-year.
In June 2024, GreatStar organized a training session on network information security control, with a total of 15participants. The topics of this training session include the information security regulations, how to achieveinformation security, how to control peripheral devices of network, and data security maintenance. Through thistraining session, the Company further improved the understanding of employees in information securityregulations and their abilities in implementing such regulations, enhanced the professional competence of themanagement team in data protection, equipment management and other aspects, and reduced the corporateinformation security risks, to maintain the security of the Company’s core data assets.
Strengthening network protection
Attack incident recognition rate was increasedby 40%Network downtime was decreasedby 60% year-on-year
External threat penetration rate wasreduced by 60%
Data penetration incidents was reduced by 35%The coverage of classification and gradingreached 100%Data encryption execution rate exceeded 80%
Enhancing border security
Data classification, grading and encryption
Process approval and access management
Information security testing and pre-deployment security review of new systems
Data security protection measures taken by GreatStar in 2024
Established a multi-level networkprotection systemRegularly updated and repairedthe systemImplemented network monitoringand threat response
···
Implemented isolation and granularauthority managementDeveloped equipment security strategyPerformed data flow monitoring
···
Implemented data classificationand gradingAdopted end-to-end encryptionDeveloped backup and recovery strategies···
Key Performance
Case
Organized network information security training to reduce the Company’s informationsecurity risks
Introduced the secure developmentlifecycleAdhered to the principles ofcompartmentalized authorities andleast authorities
··
Access authority review cycle wasshortened by 70%Approval process automation ratereached 90%
Conducted multiple rounds of securitytestingConducted third-party auditsConducted stress testingPerformed vulnerability repair andretesting
····
Average vulnerability repair timewas reduced by 50%Security issues of the systemsdeployed in the previous yearwere reduced by 30%
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
GreatStar always adheres to the concept of “people first”. We created a safe,inclusive and inspiring workplace for our employees based on our employmentequity policies, diverse career development channels and complete health andsafety management system. At the same time, GreatStar actively fulfilled itscorporate social responsibilities, deeply participated in the rural revitalization, andcontinued to invest in the field of social benefits, demonstrating its care andaccountability to the society. These efforts not only enhanced the senses ofbelonging and happiness of all employees, but also contributed to the sustainabledevelopment of society.
Putting People First andContributing to Social Benefits
Social Development
Our Principles
Our Actions
SDGs Addressed
·Employee Rights and Interests·Training and Personal Development·Health and Safety·Contributing to Social Benefits
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusionHangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Lactation room, employeebookstore, coffee bar,multi-functional audiovisual area,fitness and leisure area, tea breaklounge, employee dormitory, outdoorteam building, cultural festival, etc.
Employee care
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
GreatStar regarded talents as the most valuable asset of the Company and the core driving force of its sustainable developmentall times. The Company abided by labor laws and regulations, and built a fair and just employment environment. We establisheda complete salary and benefits system, implemented a set of scientific performance management rules, and stimulated thepotentials of employees through diversified incentive mechanisms. The Company safeguarded the rights and interests ofemployees from all aspects and strived for growing together with employees.
Employee Rights and Interests
Employee recruitmentGreatStar strictly observed the Labor Law of the People’s Republic of China, the Labor Contract Law of the People’s Republic ofChina and other applicable laws, regulations and policies, adhered to the principle of market-oriented selection andemployment, and standardized human resources management. The Company firmly prohibited the employment of child laborand forced labor, opposed any form of discrimination, and committed itself to maintaining fair, just and legal employmentrelationships. The Company continued to optimize its employee recruitment and management processes, developed theRecruitment Management Measures for this purpose, and stipulated clear and standardized procedures for employeerecruitment and related work processes in the Employee Handbook. The employee recruitment and selection work of theCompany was coordinated by the Human Resources Department with the heads of various departments.
Salary and benefitsGreatStar established a complete set ofsalary and benefits system to fullyprotect the legitimate rights and interestsof employees and play an incentive role.The Company established a set ofovertime approval rules, fully payingovertime wages to ensure that theemployees were reasonably rewarded fortheir hard work. At the same time, theCompany attached great importance tothe employee benefits, continuouslyimproved benefits policies, created adiversified benefits system, and cared forthe lives of employees in all aspects.
Key PerformanceIn 2024,the total number of employees in theCompany was13,244,
The employee turnover rate was
11.55%.
The Company hadnot experienced any
confirmed incidents of discrimination,forced labor, or child labor.
Basic salaryOvertime pay
Performancebonus
Components of employee salary
Employee benefits
Social insurance, public holidays,sick leave, marriage leave, maternityleave, annual leave, etc.Statutory benefits
?,???
GreatStar’s workforcecomposition by sex
GreatStar’s workforcecomposition, by age
GreatStar’s workforce compositionby education background
<30 years old30-50 years old
> 50 years oldBelow senior middleschool degreeMaster degree or higherBachelor degree (includingassociate degree)
Senior middle schooldegree (includingvocational or technicalschool degree)
?,???
???
?,????,???
?,????,????,????,???
MaleFemale
In September 2024, GreatStar launched the 2025 Global Rising Sun Fresh Graduate Recruitment Program, aimingat recruiting from well-known universities across China. The newly recruited fresh graduates were expected tolearn based on job rotation in various main business departments and core technology centers, receiveone-on-one guidance from director-level mentors, and receive systematic training under the “553 Talent Plan”and “Stars & Moon Plan” of GreatStar. This Program not only pooled elite versatile talents with high professionalskills for the Company, but also offered employees with a broad career development platform and structuredgrowth path, helping them achieve personal value and career dreams.
CaseLaunched the campus recruitment program to assist new employees in their career development
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Applying performance assessment results to performance bonuses, salary increases,
outstanding employee selection, training, cultivation, promotion, etc.Settinggoals
Performancecoaching
Assessment
andevaluation
Performancecommunication
Performanceassessmentresults
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Performance incentives
GreatStar strictly followed the Performance Assessment Management Rules to carry out performance assessments for allemployees, ensuring the fairness, justice and transparency of assessment process. The Company carried out comprehensiveassessments on employee performance based on management needs, business development strategies, job duties and workabilities. The evaluation results were used as an important input for the performance-based salary assessment, jobadjustments, and bestowal of honors/awards. At the same time, the Company established an employee incentive mechanism,giving corresponding praises, recognitions, commendations, honors, rewards, etc. to the outstanding teams or individuals, asthe case may be.
In 2024, GreatStar organized employees from all departments to participate in outdoor team building activity inTonglu, Qiandao Lake and other places. During the activity, employees participated in various games, such ashiking, flying disc and fishing, enjoying the local natural scenery and delicacies, relaxing their body and mind whileenhancing the friendship between colleagues. This activity not only enriched the leisure life of employees andalleviated their work pressure, but also enhanced team cohesion and sense of belonging.
CaseOrganized outdoor team building activity to soothe employees’ body and mind and enhance friendship
Key PerformanceIn 2024, the social insurance was purchased for 100% employees of the Company.
GreatStar’s outdoor team building activity
In December 2024, the Company held the GreatStar Culture Day event, including tug of war, fun games, tabletennis contest and other activities. This event not only enriched the leisure life of employees, but also enhancedthe cohesion in the Company and the sense of belonging of employees, showcasing their spirituality characterizedin unity, hard work and positivity.
CaseHeld a Culture Day event to improve the team cohesion and showcase the energy of employees
The Culture Day event held by GreatStar
Performance assessment process
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Star ProgramThis is a reserve cadrestraining program offeredby GreatStar for those whoaspire to grow intoprofessional managersand above. Polaris, Siriusand Venus Subprogramsare respectively set up forthe president, director andmanager levels.
Moon ProgramThis is a training programset up by GreatStarexclusively for theenhancement of theleadership of in-servicemanagement cadres. Itincludes the full moon,crescent moon and newmoon subprograms for thecontinuous empowermentof management cadres instrategic planning andleadership.Eagle ProgramThis is a training programspecially established byGreatStar to improve theprofessional ability ofbusiness backbonetalents. It involvestraining in professionalknowledge, professionalskills, professionalismand other aspects, andincludes the young eagle,elite eagle and goldeneagle subprograms.
Integration
Program
This consists of a seriesof training sessionsspecially offered byGreatStar for newemployees to integrateinto the team, includingthe integration projectsand fusing subprograms.
Rising Sun
Program
This is a trainingprogram set up byGreatStar for high-leveltalents and excellentmanagement traineesat home and abroad.
The internal rules and regulations related to thebasic rights and interests of employees formulatedor modified by the Company in accordance with theapplicable laws and regulations must be approvedby the labor union, two-thirds of the employeerepresentatives, or two-thirds of the employeescovered by the rules and regulations, and must bepublicly announced or notified of before they comeinto effect.
Democraticmanagement
If the internal rules and regulations formulated ormodified by the Company in accordance with theapplicable laws and regulations are implementedwithout the approval of the labor union oremployees through public announcement ornotification, any employees may raise writtenobjections to the General Office within threeworkdays after the implementation. If more thanone-fifth of the employees raise written objections,the rules and regulations must be discussed andagreed upon by the labor union or employees beforethey come into effect.
To enhance the businessmanagement abilities of
frontline employees
Elite Eagle Training Camp
To enhance the professionalskills of the HR teamCommon Growth Training Camp
To empower middle and
senior managersFull Moon Training Camp
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Training and PersonalDevelopment
GreatStar established a talents training andpooling mechanism based on its sustainabledevelopment strategy. In terms of talentcultivation, we adhere to the principle of “relyingon internal training with introduction as asupplement”. The Company formulated theTraining Management Measures and establishedthe GreatStar Academy in 2019, creating aprofessional team of internal trainers to provideequal learning and development opportunities forevery employee. At the same time, GreatStarestablished a talent development model thatcombines “361 Comprehensive PerformanceManagement” with P (Professional) and M(Management) career development channels. TheCompany implemented the talent trainingprograms centered on the “Star Program, MoonProgram, Eagle Program, Integration Program andRising Sun Program”, focusing on promotingreserve cadres training, leadership enhancement,business skills improvement, team building, andfresh graduate cultivation, in order to build abackbone talent pool methodically.
In October 2024, GreatStar spent CNY 3 million to reward several departments with outstanding internationalsales performance to travel to Switzerland, France and Kenya. The Company also offered special benefits for twodepartments to take their families on overseas trips based on their performance contribution. By continuouslyoptimizing the incentive mechanism, the Company has enabled hardworking individuals to achieve their goals andfurther stimulated their enthusiasm for work.
Case
Arranged the teams having made breakthroughs in performance to travel overseas as a reward,motivating employees to continuously improve
GreatStar rewarded outstanding employees with overseas trips
GreatStar’s key programs for cultivating talentsKey training programs in 2024Employee suggestion box
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
In April 2024, the Company launched the “GreatStar HRGrowth and Co-Creation Training Camp” program. The traineessystematically studied many professional courses, such as theThree Pillars for Human Resources Management and NewThinking in Talent Management, covering the core conceptsand cutting-edge methods of human resources management.This special training camp provides HR personnel withsystematic educations and practical opportunities, effectivelyenhancing their professional and managerial abilities, helpingemployees achieve advancement on their career developmentpath, and adding new impetus to the Company’s talent team.
CaseGreatStar organized centralized HR training to help employees enhance their professional abilities
GreatStar organized centralized HR training
In May 2024, the Company organized the “Full Moon TrainingCamp” for empowering middle and senior managers. The corecourse of this training is the IBPS Training Workshop, whichadopts diversified methods, such as interactive teaching, caseanalysis, and situational simulation, allowing participants tomaster advanced management concepts and practical tools in arelaxing atmosphere. Through this training, the leadership,business thinking and systematic thinking abilities of middleand senior managers were significantly improved, providing abetter platform for the career development of employees andbringing new vitality to the Company’s sustainable and healthydevelopment.
CaseGreatStar offered group training for middle and senior managers to enhance their leadership
GreatStar organized group training formiddle and senior managers
Fulfilling progress of work safety
targets for 2024
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Health and SafetyGreatStar adhered to the principle of “putting prevention firstand adopting integrated measures to ensure work safety”, andimproved the occupational health and safety managementsystem in accordance with overall requirements of “deepening,implementation, standardization and long-term effect”. TheCompany successfully passed the ISO 45001 certification, andestablished a work safety committee to coordinate the overallwork safety management. At the same time, the Companyformulated the Work Safety Inspection Rules, the OccupationalDisease Prevention Management Rules, the Women Workersand Minors Protection Management Rules, the EmergencyRescue Management Rules, the Work Safety AccidentEmergency Response Plan and other internal rules andregulations to strengthen the organization and leadership,clarify the division of responsibilities, and ensure theadequate breakdown and implementation of related tasks.Furthermore, the Company continuously optimized themanagement system and strictly implemented the applicablestandards, to provide strong support for maintaining the safetyof all employees and properties.
Key Performance
In 2024, the Company organized a total of 205 employee training sessions, and invested CNY 885.12for this purpose throughout the year.The training of the Company covered5,418 employees.
The total training duration of employees was12,246hours.Specifically, the total training duration of female employees was4,898hours,the total training duration of male employees was7,348 hours,and the total training duration of senior managers was1,320 hours.
Certification of ISO45001 "Occupational healthand safety management systems"
GreatStar formulated and broke down its work safety targets to each responsible department at the beginning of2024, established a regular tracking mechanism, and incorporated the fulfillment of such targets into theperformance assessment of each department. All work safety targets set for the year had been achieved.Zero major fire liabilityaccidentZero major traffic liability
accidentZero major equipmentliability accidentZero major fire liabilityaccidentZero major injury accidentZero major environmentalpollution accidentZero incidence rate ofoccupational diseases
Zero acute poisoning accidentAnnual injury rate is lower than 3%100% operators engaging in special workpossess the required qualification certificates100% employees are covered by the
three-level safety education100% participants of safety education and training
pass the corresponding assessments/exams
The Company’s standardization ofthree-level work safety pass the reviewMore than 98% hidden dangers are eliminated
√√√√√√√
√√√√√√√
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Person in chargeAs the first responsible person ofpotential hazard identificationand management, mainly liablefor the investigation andelimination of potential hazardsin the department (workshop).Team LeaderResponsible for the identificationand elimination of potentialhazards within his/her scope ofduties.WorkersResponsible for the identificationand elimination of potentialhazards in his/her position.
Inspect and monitor the potentialhazards within their respectivescope of duties according to thefunctional division of labor.The financial departments areresponsible for managing andproviding the rewards for potentialhazard reports and the funds forpotential hazard elimination.The technical departments areresponsible for verifying thefeasibility and rationality of thepotential hazard eliminationmeasures.
Responsible for registering theidentified potential hazards,classifying them according totheir levels, establishing potentialhazard information files, andsupervising, inspecting andassessing the identification andmanagement of various potentialhazards; and responsible forimplementing rewards andpunishments based on theidentification and management ofpotential hazards.
01020304
Department
Quality ControlCenter
Hazards
Improper operationof tools and knives
Control measures
Operate according to theLaboratory Safety and InternalManagement Procedure by theworker/operator possessingthe required qualificationcertificate, and inspect theequipment before use. Actaccording to the emergencyresponse plan in the event ofan accident.
Work site/processstep/location
QC supplier inspection
The General Manager is responsible for the overall worksafety arrangement of the Company, and signs the lettersof accountability on work safety objectives with thedepartment heads and responsible persons at all levels.It is required to establish a complete responsibilitydivision mechanism to achieve full coverage of teams andshifts by breaking down the responsibilities to eachresponsible person at each level.
Organize quarterly conversations to solicit relevant opinions, improve employeesatisfaction, and communicate with employees living in the dormitory to promptlyaddress or implement various issues, opinions or suggestions raised by them.
Pay attention to the working status of employees, understand their working situationand feelings through multiple channels, and assist functional departments inestablishing new employee coaching plans and communication systems, so that newemployees can assimilate into the new work environment as soon as possible.
Irregularly organize various cultural activities to enrich the daily and leisurelife of employees.
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Risk identification
Accurately identifying major hazards and their potential risks is a key prerequisite for preventing accidents and ensuring thesafety and health of employees. GreatStar regularly carried out identification of hazards in the Company as a whole and eachdepartment, and made a list of identified hazards to set out the hazards existing in various places and activities and theirimpact on occupational health and safety. The Company assessed the risks based on the likelihood of accidents, the frequencyof worker/operator exposure to hazards, and the potential consequences of accidents. Finally, the Company developedcorresponding control measures to prevent hazards from causing harm to employees.
GreatStar attached great importance to the work safety emergency management, and formulated the Work Safety EmergencyResponse Plan according to the requirements stipulated in the Work Safety Emergency Response Regulations, the Rules forManaging Work Safety Emergency Response Plans, GB/T29639-2020 Guidelines for enterprises to develop emergencyresponse plan for work place accidents and other applicable standards, established a complete organizational structure foremergency response, and organized regular drills to continuously improve the ability of accident prevention and emergencyrescue.
Example of hazard identification
Main occupational health and work safety management measures
Management measures for mental health of employees
Do a good job as the “first responsible person” to ensurethe total involvement accountability for work safety
Enhance the safety related integrity and self-disciplinemechanism, improve the work safety management system,strictly implement standards, specifications, SOPs andpreventive measures, harmonize the safety of “people,machines, materials and the environment”, andcomprehensively promote the safety management level ofthe Company.Strictly implement all applicable laws and regulations onwork safety, investigate illegal acts, misconducts andbreaches of duty, and punish the responsible personsaccording to the applicable laws and regulations. Adhere tothe principle of “never conclude an accident beforemeeting the requirements for cause investigation,punishment on responsible persons, implementation ofelimination measures, and warning education”, strictlyinvestigate the responsibilities of responsible units andpersons, and strengthen the accountability mechanism.
Strengthen the fulfillment of responsibilities, andapply strict liability investigation and punishment
Strengthen frontline safety education and training,with a focus on enhancing the safety knowledge,skills, and prevention awareness of frontlinemanagers and operators.Incorporate work safety publicity and educationinto basic work, and carry out “Work Safety Month”and “Bring Safety Knowledge into Workshops,Teams & Shifts” activities in an in-depth manner.
Strengthen education and training to enhance safetyawareness and ability
Establish and improve the work safety investmentguarantee mechanism, optimize the structure of funduse, and focus on the upgrading of technicalequipment, the education and training on safety, andthe building of emergency response systems.Simultaneously promote the commercial insuranceagainst work safety accidents and raise the level ofprotection for employees.
Increase financial investment in work safety
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Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
In January 2024, GreatStar donated CNY 200,000 to theJiuzhi Community Development Foundation inShangcheng District of Hangzhou City for supporting thedevelopment of Jiubao Education Institution. Thisdonation reflected the Company’s determination toactively fulfill its social responsibility and support thedevelopment of community education. The Companyinsists on giving back to the society, closely combiningenterprise development with social progress, andpromoting education equity and quality improvement.
CaseDonated CNY 200,000 for supporting the development of Jiubao Education Institution
Educational Donation Certificateof GreatStar (CNY 200,000)
In October 2024, Wuling Middle School held the 7th “Qiu Quanlin Scholarship” Awarding Ceremony. During this year,a total of 56 outstanding students received the Scholarship, and the cumulative amount awarded had exceededCNY 3.2 million. The Scholarship was set up by Mr. Qiu Jianping, Chairman of GreatStar, to award outstandingstudents of Wuling Middle School. Chairman Qiu Jianping has always been enthusiastic about social benefitundertakings, and donated over CNY 16 million for the development of public education, including the QiuQuanlin Science & Technology Building at Wuling Middle School, the Qiu Quanlin Scholarship, and the HangzhouJianlan Middle School Education Development Fund. The awarding ceremony not only commended outstandingstudents, but also reflected the constant support of GreatStar for promoting education undertakings, with apurpose of cultivating more outstanding talents for the society.
CaseWuling Middle School held the 7th “Qiu Quanlin Scholarship” Awarding Ceremony
Environmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
In May 2024, Hangzhou Lianhe Electrical Equipment Manufacturing Co., Ltd., a subsidiary of GreatStar, organizeda fire drill covering the canteen, dormitory, factory premises and other key areas, and over 600 employeesparticipated in the hands-on firefighting operation. This drill strengthened employees’ awareness of fire safety andself-rescue ability, laying a solid foundation for the Company to build a strong fire safety defense line
CaseOrganized a fire drill to enhance fire emergency response capabilities
The fire drill organized by Lianhe Electrical
Contributing to Social BenefitsIn 2024, GreatStar actively participated in public benefits activities, and made contributions to the development of publiceducation undertakings by offering scholarships and free donations. The Company made an educational donation to the JiuzhiCommunity Development Foundation in Shangcheng District of Hangzhou City. The accumulated amount of the “Qiu QuanlinScholarship” offered by the Company has exceeded CNY 3.2 million, which is used to reward outstanding students at WulingMiddle School. In addition, the Company established the “GreatStar Foundation” to provide financial assistance to employees inneed. These measures reflected the Company’s care about the society and intention to promote the development of educationand community.
Key PerformanceIn 2024,the Company invested a total of CNY
8.8675 million in work safety, organized 17 safety drills, and
offered training on occupational health and work safety up to1,835 hours in total, with each employeereceiving1 hour of training on average.
No work-related death occurred. Thework-related injury insurance premium paidof employees was CNY
3.4091million.
The incidence rate of occupational diseasesof employees was0%.
Hangzhou GreatStar Industrial Co., Ltd.2024 Environmental, Social and Governance Report
Key PerformanceEconomic
Environmental
Economic
Operating revenueTotal assetsBasic earnings per share
CNY 10,000CNY 10,000CNY/share
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IndicatorsUnits????
10,000 cubic meters10,000 cubic meters
TonsTonsTonsTons
%Tons of coal equivalent (TCE)TCE/CNY 10,000 of operating revenue
TCETCEMWhMWhMWhTonsTons/CNY 10,000 of operating revenue
CNY 10,000
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IndicatorsUnits????
Social
R&D input
Employees
SupplierData security
R&D personnelR&D investmentNumber of patents newly grantedTotal number of employeesTotal hours of employee trainingInvestment in employee trainingTotal hours of training on occupational health and work safetyTotal investment in work safetyIncidence rate of occupational diseasesSinging rate of integrity commitment letterNumber of data security training sessions
PersonsCNY 10,000///CNY 10,000
/CNY 10,000
%
%
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IndicatorsUnits????
Hangzhou GreatStar Industrial Co., Ltd.2024 Sustainability ReportEnvironmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Waste water
Environmental
investment
Waste gas
Solid waste
Energy
Waterresources
Total amount of waste water dischargedTotal waste gas emittedTotal amount of waste generatedTotal amount of hazardous wasteTotal amount of harmless wasteTotal amount of recycled/reclaimed wasteWaste recycling rateComprehensive energy consumptionEnergy consumption intensityDirect energy consumptionIndirect energy consumptionTotal amount of purchased electricityTotal self-generated electricity consumptionClean energy consumptionTotal water consumptionWater resources utilization intensityInvestment in environment protection
Benchmarking Indicators
About This ReportMessage from the ChairmanAbout UsESG ManagementCompliant Governance — Taking the Lead in Promoting Corporate Governance Based on Refined Compliance ManagementCorporate GovernanceInvestor Relations Management
Environmental Management — Jointly Creating an Ecological Future by Taking Initiative in Implementing Green ActionsEnvironmental Compliance ManagementEnergy UtilizationWater Resources UtilizationPollutants and Waste TreatmentAddressing Climate ChangeGreen Operation
Article 53
Article 55, and Article 56
Article 33Article 35Article 36Article 30, and Article 31Article 24, Article 26, and Article 27Article 37
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Common Progress — Jointly Promoting the Industry Development Based on Continuous ImprovementInnovation-Driven GrowthIndustry CooperationProduct QualitySupply Chain SecurityData SecuritySocial Development — Putting People First and Contributing to Social BenefitsEmployee Rights and InterestsTraining and Personal DevelopmentHealth and SafetyContributing to Social BenefitsConclusionKey PerformanceBenchmarking IndicatorsReader's Feedback
Article 42
Article 47Article 45Article 48
Article 50Article 50Article 50Article 40
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Hangzhou GreatStar Industrial Co., Ltd.2024 Sustainability ReportEnvironmental ManagementCompliant GovernanceCommon ProgressSocial DevelopmentConclusion
Sectionsin this Report
Guidelines No. 17 for Self-regulation of ListedCompanies — Sustainability Report (Trial) released by
Shenzhen Stock Exchange
GRI SustainabilityReporting Standards
(GRI Standards)Sectionsin this Report
Guidelines No. 17 for Self-regulation of ListedCompanies — Sustainability Report (Trial) released by
Shenzhen Stock Exchange
GRI SustainabilityReporting Standards
(GRI Standards)
Compliance Risk Control andResponsible Business
Reader’s feedbackDear readers,
Thank you for taking the time to read this 2024 Environmental, Social and Governance Report of Hangzhou GreatStar IndustrialCo., Ltd. We sincerely look forward to your opinions and suggestions, with the purpose to provide you and other stakeholderswith more valuable information and effectively promote the Company's abilities and capabilities in ESG management.
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Open Questions
Hangzhou GreatStar Industrial Co., Ltd.WWW.GREATSTARTOOLS.COMAddress: No. 35, Jiuhuan Road, Shangcheng District, Hangzhou City, Zhejiang Province, ChinaTelephone: 0571-81601190
Hangzhou GreatStar Industrial Co., Ltd.2024 Sustainability Report