Preface

As the 40th anniversary of China’s reform and opening-up approaches, the international trend toward corporate social responsibility has become increasingly pronounced. Corporate social responsibility is expanding in scope and becoming more accountable, while stakeholders across society are gaining a deeper understanding of it. Enterprises are steadily enhancing their awareness of social responsibility, and their practices continue to evolve through ongoing innovation.

Corporate social responsibility is receiving increasing attention. So, what exactly is corporate social responsibility? It refers to the obligation of enterprises to assume responsibilities not only toward their shareholders and the pursuit of profit but also toward their employees, consumers, society, and the environment. Corporate social responsibility requires companies to not only grow and generate profits but also to prioritize human values and to contribute positively to consumers, the environment, and society throughout their production and business operations.

Practice has shown that an outstanding enterprise is invariably one that assumes social responsibility; and a company capable of sustainable development is one that not only generates substantial profits but also actively gives back to society. Only by achieving harmony and integration with society and the environment can an enterprise ensure enduring growth and build a lasting legacy.

Over the past decade and more, Baigong Steel has consistently upheld the development philosophy of “when prosperous, benefit all under heaven,” striving to strengthen, expand, and sustain its business. At the same time, it has always regarded proactively fulfilling its social responsibilities as an enduring commitment.

BaiGong Steel’s corporate social responsibility stems from our core values—“bringing together talent who share the same values, creating wealth through wisdom and hard work in compliance with the law, jointly generating enterprise value, and helping employees realize their personal potential”—and has been nurtured by our concrete actions in upholding social responsibility over many years. It encompasses our commitments to all stakeholders, including the nation, consumers, partners, employees, and the environment. Practice has demonstrated that we have achieved a harmonious balance between the company’s own development and the fulfillment of our responsibilities.

Below is an overview of Baigong Steel’s 2020 Corporate Social Responsibility Report:

I. Company Overview

Qinhuangdao Baigong Iron & Steel Co., Ltd. was established in 2006 and is located within the Lulong Industrial Park in the western industrial zone of Qinhuangdao City. With a registered capital of RMB 160 million, the company occupies an area of 1,800 mu, boasts total assets of RMB 4.5 billion, and employs over 2,600 staff members. It is a comprehensive private steel enterprise integrating iron and steel smelting, rolling and processing, power generation, trading, and warehousing and logistics.

BaiGong Iron & Steel, guided by market demand and national industrial policies, aims to become a leading enterprise in the industry. Leveraging the advantages of both national and local industrial policies, the company upholds the corporate ethos of “technology‑driven and exceptional excellence,” continuously optimizing its industrial structure and integrating resources efficiently. At present, it operates a comprehensive array of production lines—including lime, sintering, ironmaking, steelmaking, rolling, oxygen production, and power generation—alongside supporting environmental protection and energy‑saving facilities. All equipment is at an industry‑leading level, with automated process control, robust testing capabilities, and state‑of‑the‑art process equipment. The company has achieved an annual production capacity of 2.08 million tons of pig iron, 2.85 million tons of steel, and 1 million tons of finished steel products.

Baigong Steel is a member of the China Iron and Steel Association, a director unit of the Hebei Provincial Metallurgical Industry Association, and an executive director of the Board of Directors of the China Environmental News. The company has obtained certification under five management systems—quality, environmental protection, occupational health and safety, energy, and metrology—and has been listed in the Ministry of Industry and Information Technology’s announcement on enterprises meeting the industry’s standardization requirements. For many years, the company has adhered to a diversified development strategy emphasizing standardized management, lean processes, and high‑quality products, achieving sustained and stable growth, earning broad social recognition, and receiving numerous qualifications and honors.

In 2010, it was awarded the “Annual Private Enterprise Growth and Progress Award” by Qinhuangdao City;

In 2011, it was recognized by Qinhuangdao City as one of the “Top 20 Private Enterprises of the Year.”

In 2011, 2012, and 2013, it was awarded the “Annual Outstanding Contribution Enterprise Award” by Qinhuangdao City.

In 2013, the company was included in the Hebei Provincial Environmental Protection Department’s “Hebei Province Key List of Clean Production Enterprises” and was also recognized by the Hebei Provincial Development and Reform Commission as a demonstration enterprise for the circular economy.

In 2014, it was ranked among the “Top 500 Chinese Private Manufacturing Enterprises” by the All-China Federation of Industry and Commerce.

In 2015, the company passed the Level-2 safety production standardization assessment conducted by the Hebei Provincial Administration of Work Safety.

In 2015, it passed the assessment and acceptance process for clean production and pollution prevention and control benchmarking organized by the Hebei Provincial Environmental Protection Department.

In 2016, it was recognized by the Qinhuangdao Municipal Federation of Trade Unions as an “Advanced Workers’ Home.”

In 2016, it passed the review and filing process organized by the Hebei Provincial Environmental Protection Department and was publicly announced on the department’s website.

In 2017, it was rated B+ (strong performer) in the steel enterprise competitiveness assessment conducted by the Metallurgical Industry Planning & Research Institute.

In 2018, it was recognized by the China Environmental News as a pioneer enterprise in energy conservation and emissions reduction.

In 2018, it was awarded the 2017 Green Enterprise Management Award by the Council of China Environmental News.

In 2018, it was recognized by the Hebei Provincial Department of Industry and Information Technology as an R&D institution of industrial enterprises in Hebei Province.

BaiGong Steel consistently prioritizes safety and environmental protection, conducting its operations in accordance with the principles of clean production, continuous improvement, cost minimization, and superior quality. The company continually increases investment in safety and environmental management to enhance workplace safety conditions, while steadily strengthening its foundation as a green, eco‑friendly enterprise and actively promoting the sound development of a circular economy.

II. Corporate Culture

1. Values and Philosophy

Qinhuangdao Baigong Iron & Steel Co., Ltd. takes “Uniting outstanding talents who share common values, creating wealth legally through wisdom and hard work, and jointly building corporate value while helping employees realize their personal potential” as its core value, guiding the company toward sustained, healthy growth.

“Virtue is the root, wealth is the branch. The noble person follows a great way: he gains it through loyalty and trustworthiness, taking righteousness as his guiding principle rather than seeking profit for its own sake!” Guided by this business philosophy, we continuously foster a new landscape of win-win cooperation and coordinated development with our customers.

Guided by the employment philosophy that “the company is a stage for entrepreneurs and a club for achievers, where anyone can become a Yao or Shun,” we strive to unleash the enthusiasm and creativity of innovative talent.

Guided by the principle of “a good citizen in society, a good employee in the company, and a good child, parent, sibling, and sister/brother at home,” we inspire our employees to cultivate sound values, a proper worldview, and a meaningful outlook on life.

Guided by the sustainable development philosophy that “competition and innovation are the lifeblood of BaiGong’s survival and growth,” we continuously strengthen the enterprise’s internal momentum, driving rapid and steady development.

2. Party Building Culture

The Party Branch of Baigong Iron and Steel was established on June 29, 2012. Currently, it has 17 official party members, 194 mobile party members, 3 probationary party members, 8 active candidates for party membership, and 76 individuals who have submitted applications to join the Party.

The Party branch has vigorously implemented the work plan of “Party building leading the three‑pronged initiatives,” continuously strengthening Party organization building and effectively leveraging the organizational role as a fighting fortress and the exemplary, pioneering role of Party members. The branch holds monthly Party group meetings, emphasizing integration with the enterprise and service to employees, advancing all tasks through solid, well‑structured activities. Guided by the Scientific Outlook on Development and aiming to build a first‑class, modern steel enterprise in the industry, the branch places production and operations at the core of its work, embracing the principle of “integration and innovation, prioritizing safety, pursuing excellence to drive development.” By fully harnessing the political core role of the Party organization, the fighting‑fortress function of the Party branch, and the exemplary, pioneering role of Party members, it unites and leads the broad workforce to break free from conventional ways of thinking and established habits, daring to push boundaries and embrace change, thus achieving new breakthroughs across all areas of BaiGong Steel’s operations. Committed to upholding the great banner of socialism with Chinese characteristics, BaiGong Steel remains steadfast in its convictions, consistently integrating Party building with corporate development, and striving to be a pioneer in the industry.

III. Organizational Management and Team Building

1. Continuously build an outstanding management team. The company has established a top-level management committee governance mechanism unique to BaiGong, creating a systematic management framework characterized by clearly defined roles and responsibilities, well‑articulated authority and accountability, rigorous policies, streamlined processes, and a robust performance‑evaluation system.

2. Actively promote the optimization of our talent recruitment and development mechanisms. The company has consistently implemented a talent management approach that prioritizes “promoting the capable, giving opportunities to those with equal merit, and making room for the less competent,” fostering a virtuous cycle of internal talent optimization, internal promotion, external talent sourcing, and open competitive recruitment. We also actively participate in campus recruitment and talent fairs, and facilitate employment for college students from low-income families in the surrounding area, thereby continuously attracting highly qualified professionals. Currently, the company employs one doctoral degree holder, more than 70 individuals with a bachelor’s degree or higher, and over 200 employees holding an associate’s degree or above.

3. We adhere to a variety of training approaches to enhance employees’ overall competence. Each year, the company allocates dedicated funds for employee development, with internal training primarily focusing on job-specific skills, policy implementation, and technical proficiency. For external training, we have established long-term cooperative agreements with Qinhuangdao Limin Technical School and Yuxian Technician School, leveraging their expert faculty to provide specialized skill‑building programs. To date, all our position‑specific skilled workers have obtained national skill certification, and we have cultivated more than 20 technicians, 11 assistant engineers, and 13 engineers.

IV. Scientific Development

BaiGong Steel has continuously increased its investment in science and technology, establishing a Technology Center in 2015. This comprehensive research unit integrates production, technical expertise, and product development, comprising two major divisions: the Science and Technology Department and the Inspection and Testing Center. The Science and Technology Department includes the Product Development Section, the Process Technology Section, and the Standards Section, while the Inspection and Testing Center comprises the Metallography Laboratory, the Chemical Analysis Laboratory, and the Mechanical Properties Laboratory. The company holds more than 50 patented technologies. In April 2018, BaiGong Steel entered into a long-term strategic partnership with the Beijing Iron & Steel Research Institute, jointly establishing a collaborative laboratory on the premises of BaiGong Steel’s plant. Leveraging the Institute’s talent and technological strengths, the two parties have engaged in multifaceted, substantive cooperation spanning the R&D and application of new processes and equipment, the development of innovative special steel grades, continuous improvements in product quality, as well as the cultivation of high‑end technical professionals and ongoing technical training. In 2019, the company was awarded the national “High‑Tech Enterprise” designation, and it is currently in the process of applying for approval to establish a postdoctoral workstation.

The company will continue to leverage its Technology Center, guided by technological innovation, to steadily advance technological progress and product development. It will also make every effort to upgrade its process and equipment capabilities, focus on optimizing its product mix, and strive to establish a premier production base for high‑quality and specialty steels, thereby solidifying the BaiGong brand.

V. Safety Responsibilities

At the beginning of each year, the company establishes its annual occupational safety policy and objectives. In 2020, it invested over RMB 4 million in safety initiatives, identified 1,634 potential safety hazards, and rectified 1,616 of them. Additionally, it successfully addressed all 60 corrective measures proposed by administrative departments. The company also signed 88 safety management agreements with contracted construction firms. In accordance with both internal requirements and government regulations, it developed seven specialized safety work plans, including a “Special Rectification Plan for Gas Equipment and Facilities,” revised eight safety management systems—such as the “Detailed Rules for Safety Production Management Assessment” and the “Gas Safety Management System”—and re‑issued seven types of hazardous‑work permits, covering confined-space operations, hot‑work, and others. These measures ensure that all management practices are well‑documented, firmly grounded in evidence, supported by clear criteria for rewards and penalties, and rigorously enforced. Over 400 newly hired employees received safety training, and 180 personnel participated in training and certification programs, guaranteeing that all three categories of designated personnel are qualified and certified before taking up their duties. By using the signing of safety responsibility agreements as a key mechanism, the company has systematically decomposed and cascaded safety responsibilities at every level, embedding them into specific job tasks. By year’s end, no major safety incidents had occurred, thus achieving the annual safety production targets set at the beginning of the year. Furthermore, in September, the company completed the audit for occupational health and safety management system certification, ensuring compliance across all areas of operation.

VI. Energy and Environmental Responsibility

1. Energy Utilization

The company has invested in numerous energy‑saving projects, resulting in a sustained reduction in energy consumption. Throughout the year, it completed seven energy‑efficiency upgrades, including low‑pressure oxygen enrichment for the blast furnace and energy‑saving modifications to the power plant’s circulating water pumps. In 2020, the average recovery of converter gas reached 110 m³ per ton of steel, an 8% increase, thereby achieving the targeted performance.

2. Environmental Management方面

Significant investments have been made in environmental protection facilities, and the company’s environmental emission indicators have all met or fallen below national and local standards, fully complying with relevant environmental policies. Throughout the year, the company activated its environmental early-warning system as required by the government, conducted thorough preparations for environmental inspections, and ensured no major environmental incidents occurred, thereby achieving the targets set at the beginning of the year. In September, the company successfully completed the certification audits for its energy and environmental management systems, with all operations meeting the required standards and regulatory compliance.

VII. Social Responsibility: Employee Benefits

Qinhuangdao Baigong Iron & Steel Co., Ltd. upholds the social aspiration of “when successful, benefit all under heaven,” thereby fulfilling its obligations and responsibilities to society.

In 2010, it was awarded the “First Qinhuangdao Charity Special Award” by the City of Qinhuangdao;

In 2012, it was awarded the “2012 Hebei Province Hope Project Contribution Award” by the Hebei Provincial Youth Development Foundation.

In 2013, 2014, and 2015, it was awarded the “Outstanding Contribution Award” of the Qinhuangdao City Hope Project’s Youth Dream‑Fulfillment Initiative.

Since its inception, the company has been deeply committed to supporting education. Each year, through its “Golden Autumn Assistance” program, it provides financial aid to more than 500 students admitted to universities, with total scholarship funds exceeding RMB 2 million.

The company is deeply committed to social welfare, always stepping forward to offer assistance in times of crisis. As the saying goes, “When one region is in distress, help comes from all directions.” Following the earthquakes in Wenchuan and Yushu, the company took swift action, promptly donating funds and supplies to the affected areas, with total contributions exceeding RMB 5 million.

Amid the raging COVID‑19 pandemic, Baigong Iron & Steel, a pillar enterprise of Lulong County, demonstrated a strong sense of social responsibility and mission by donating RMB 10 million to support epidemic prevention and control efforts. This gesture conveyed the company’s unequivocal stance and unwavering determination in fighting the pandemic to the county Party committee, the county government, and the people of the entire county.

Meanwhile, Baigong Iron & Steel will remain steadfast in its commitment to social responsibility and accountability. Guided by the Party’s policies, it will continue to carry out targeted poverty alleviation efforts as always. Since 2012, the company has provided condolences and living allowances totaling over RMB 2 million to impoverished residents in the surrounding areas. In doing so, it is contributing to the realization of the “Chinese Dream” of regional economic development, improved public well-being, national rejuvenation, and a strong motherland!

“Caring for society and caring for our employees” is a vital cornerstone of Baigong Steel’s efforts to strengthen its foundations and ensure sustainable development. In 2017, the company provided financial support and rallied all cadres and employees to collectively donate over RMB 50,000 to help employee Gong Bojuan, who was suffering from a serious illness, thereby putting into practice the corporate philosophy that “the enterprise shields its employees from life’s hardships, while employees contribute to the enterprise’s growth.”

The company has established a “Caring Volunteer Team” and actively participates in children’s charitable initiatives. Every year, on “Children’s Charity Day,” the team visits the special education school in Lulong County to spend time with children with disabilities, donating toys, books, art albums, as well as rice, flour, cooking oil, and other supplies for their studies and daily life. The Baigong Steel Volunteer Service Team calls on more members of society to show these children greater care and compassion. For love is like a gentle spring rain; it is the smile on someone’s face; it is the warmth of human concern. By spreading kindness and doing good deeds, we ensure that these children are never alone—because they have us by their side.

Every year, as the Mid-Autumn Festival and the Spring Festival approach, the Baigong Steel volunteer team visits the Veterans’ Home in Lulong County to pay their respects to retired military personnel and their families. They engage in warm, heartfelt conversations, inquiring about the elders’ daily lives, health conditions, and their children’s employment and work situations, while also presenting them with mooncakes, grapes, rice, flour, cooking oil, and other essential household items. With genuine enthusiasm, Baigong Steel fulfills its social responsibilities and sets a commendable example for neighboring enterprises.

In 2018, the company made every effort to prepare for the commissioning of the Anju Jiayuan residential complex, providing over 300 housing units to its employees and cadres. In December, Building No. 2 of the Baigong Anju Jiayuan apartment complex was successfully occupied, thereby implementing Baigong Iron & Steel Company’s talent‑attraction strategy and underscoring the significant benefits that the company’s growth has brought to its workforce.

VIII. Looking Ahead

Looking ahead, the company will remain committed to its core philosophy of “building a world-class enterprise,” leveraging technological innovation as its driving force, adopting lean management as its guiding approach, and making adjustments to its product mix while accelerating transformation and upgrading as the central themes of its development. We will conscientiously implement national policies and guidelines, expand into international markets, stay true to our original aspirations, and keep our mission firmly in mind. Our goal is to build a distinctive private enterprise characterized by green, intelligent, and high‑quality growth—safeguarding safety, protecting the environment, and pursuing sustainable development—while delivering premium products to society. Moving forward, the company will continue to uphold its mission of “creating value, benefiting employees, and giving back to society,” maintaining a strong sense of social responsibility, further strengthening all‑staff awareness of accountability, and continuously contributing to socio‑economic development, thereby enhancing our corporate image.