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1、 Environmental, Social and Governance Report 2020 Contents About the Report . 1 Message from the Chairman . 2 About Us . 4 Company Profile . 4 Honors & Awards . 5 Corporate Governance . 6 Governance Structure . 6 Internal Control . 8 Protection of Shareholders and Investors Interests . 8 Business Et

2、hics . 9 IHome Appliances for High-quality Life . 12 1.Product Innovation . 12 2.Quality First . 16 3.Better User Experience . 19 II、Building a Sound Ecosystem with Partners . 24 1.Promoting Supplier Growth . 24 2.Expanding Sales Channels . 26 3.Industry-wide Win-win Strategy . 29 III、Poverty Allevi

3、ation Targets Nutrition and Health . 32 1.Joyoung Hope Kitchen . 32 2.Contribution to Poverty Alleviation . 37 3.Contribution to COVID-19 Battle . 38 IV、Young and Enterprising Joyoung Employees . 41 1.Welcome to Joyoung . 41 2.Employee Training . 43 3.Care for Employees . 49 V、Environmental Protecti

4、on . 55 Environmental, Social and Governance Report 2020 1.Minimizing Environmental Impact . 55 2.Efficient Resource Utilization . 58 Reader Feedback Form . 60 Environmental, Social and Governance Report 2020 1 About the ReportAbout the Report The Report is the first Environmental, Social and Govern

5、ance (ESG) report released by Joyoung Co., Ltd. to address the stakeholders expectations and demonstrate Joyoungs values, management, actions and achievements in terms of ESG and sustainable development. 1. Reporting period The Report is an annual report, covering the period from January 1, 2020 to

6、December 31, 2020. Some content is appropriately retrospective. 2. Report scope Unless otherwise specified, the Report covers Joyoung Co., Ltd., including all its branches and subsidiaries. 3. Data source All the information and data presented in the Report come from Joyoung Co., Ltd.s corporate doc

7、uments, statistical reports and financial statements, as well as information on ESG and sustainable development collected, sorted and reviewed by the company. 4. Basis of preparation The Report is prepared in accordance with the regulations and requirements as specified in the Shenzhen Stock Exchang

8、e Social Responsibility Instructions to Listed Companies. 5. Shorter form of company name For convenience, the terms Joyoung, the company and we all refer to Joyoung Co., Ltd. in the Report. 6. How to get the report The Report is released in electronic form. Please download it from https:/ or Cninfo

9、. Environmental, Social and Governance Report 2020 2 Message from thMessage from the Chairmane Chairman In 2020, amid the severe COVID-19 pandemic, China became the first country to bring COVID-19 under effective control under strong leadership of the Communist Party of China and the Chinese governm

10、ent. All Joyoung employees managed to stay safe and healthy. We quickly adjusted our sales strategy and delivered remarkable performance. In 2020, the company achieved a total revenue of RMB 11.224 billion (up 20.02% YoY) and net profit attributable to shareholders of RMB 940 million (up 14.07% YoY)

11、. We have been focusing on our products and sales channels, which are our two major growth drivers. In terms of products, we have managed to accelerate the progress of our 3-tier R&D system, maintained company competitiveness through continuous product innovation and update, and promoted product qua

12、lity through optimized supply chain management. We have been focusing on popular mainstream products such as self-cleaning blenders and soy milk makers, and uncoated rice cookers, as well as developing product series for these hero products. Our S160 rice cooker, one of the brands latest releases, w

13、as awarded as 2020 China Household Appliances Innovation Achievement for our disruptive steaming technology and unique user experience. We have held the title of Most Influential Small Home Appliance Brand for 12 consecutive years. In terms of sales channels, we have seized valuable opportunities fo

14、r business growth brought by the new economy and live commerce, and integrated online and offline marketing efforts. In the context of globalization, we will seize more opportunities in market upgrade, promote digital marketing, adhere to our user-centered and demand-oriented values, tune to new hab

15、its and needs of younger customers, take the leading role in the industry, and achieve high-quality growth. We encourage our employees to lead a healthy lifestyle and work happily. We plan to build a young talent team full of youthful vitality and offer them a career platform with infinite possibili

16、ties. We respect every employees dream and effort. We Environmental, Social and Governance Report 2020 3 have been committed to public welfare undertakings for more than ten years. We created Joyoung Hope Fund as part of China Youth Development Foundations Project Hope program, and donated over RMB

17、50 million to it. We have built 1,084 Joyoung Hope Kitchens serving over 2.6 million citizens in 222 counties across 27 provinces in China, leaving footprints of love and kindness wherever we went. 2021 is the beginning of our second decade dedicated to philanthropic initiatives. We plan to donate R

18、MB 50 million to public welfare in the next 10 years. I myself will also make a personal donation of RMB 50 million to Joyoung Charity Foundation, which was established not long ago, to facilitate our rural kitchen project and spread our warmth and love to those in need. In the early days of the COV

19、ID-19 pandemic, we worked together with other sectors of society and donated disinfectant supplies, home appliances, and essential supplies to frontline health care workers. We resumed work and production in an orderly manner while ensuring our employees safety and health, so as to help maintain soc

20、ial stability. Our performance in fulfilling responsibilities has been well recognized by the public. In the future, we will continue to focus on product innovation and customer health and stay true to our original aspiration of promoting a healthy lifestyle. We will keep pursuing sustainable busine

21、ss development and working with our partners who share the same purpose of advocating high-quality, healthy diets to build a health-conscious national brand. Chairman of the Board of Directors Wang Xuning Environmental, Social and Governance Report 2020 4 About Us About Us Company ProfileCompany Pro

22、file Joyoung Co., Ltd. is a company engaged in R&D, production and sales of home appliance products. Formerly known as Shandong Jiuyang Home Appliances Co., Ltd. founded in 1994, we were incorporated in July 2002 and went public at the Shenzhen Stock Exchange on May 28, 2008 (002242.SZ). As a leadin

23、g home appliance brand in China, we are devoted to innovation and health advocacy through R&D, production and sales of home appliances. Our products are sold in over 30 provinces, cities, and autonomous regions in China, as well as more than 20 foreign countries and regions, including Japan, the Uni

24、ted States, Singapore, Indonesia, and Thailand. We are mainly engaged in independent R&D, design, sales and proprietary brand operation. We have developed a series of home appliances that facilitate healthy diets, including soy milk makers, juicers, food processors, noodle makers, rice cookers, pres

25、sure cookers, as well as home appliances that support a high-quality lifestyle such as mini vacuums, electric mops, and steam mops. We have established multiple production and R&D bases in Jinan, Hangzhou and other places, forming a cross-regional customized management structure. Vision We aspire to

26、 become a leading brand of high-quality home appliances featuring innovation and a healthy lifestyle. Mission We are committed to offering products that enable global consumers to enjoy a healthy and happy life. Our quality home appliances make home a better place. Values People, teamwork, responsib

27、ility, and health Outlook on life Work with passion and joy, live a happy and healthy life Environmental, Social and Governance Report 2020 5 Honors & AwardsHonors & Awards In March 2020, Joyoung won 11 Red Dot Design Awards and 16 iF Design Awards. Joyoung was named the Most Influential Home Applia

28、nce Producer of the Year at the 16th China Household Appliances Innovation Award Ceremony in 2020, where Joyoungs F30S-S160 rice cooker was awarded as a Product Innovation Achievement. In 2020, Joyoung won the 11th Tianma Award for Investor Relations (IR) of Chinese Listed Companies, the Best Board

29、of Directors in IR Management, and the Best New Media Operations Award issued by Securities Times. Joyoung was listed by Zhaopin as one of Chinas Best Employers 2020. Joyoung was listed by 51job as one of Chinese College Students Favorite Employers 2020. In 2020, Joyoungs Hope Kitchen project was li

30、sted as one of the Top 50 Outstanding Projects selected by the Poverty Alleviation Office of the State Council. In 2020, Joyoung was awarded Remarkable Contributor to Hubei Provinces COVID-19 Prevention and Control and Role Model Company in COVID-19 Prevention. Environmental, Social and Governance R

31、eport 2020 6 Corporate Governance Corporate Governance We adhere to our vision of becoming a respectable national brand representing innovation and a healthy lifestyle. We make constant efforts to improve corporate governance, internal control, and investor relations to lay a solid foundation for su

32、stainable development. Governance StructureGovernance Structure We strictly abide by the Company Law of the Peoples Republic of China, the Securities Law of the Peoples Republic of China, the Guidelines on Governance for Listed Companies and other relevant laws and regulations, and has accordingly s

33、et up our General Meeting of Shareholders, Board of Directors (as well as subordinate committees), Board of Supervisors, and management structure. Based on our conditions and regulatory requirements, we have created a multi-level operation and management system that covers all of our operations base

34、d on the Articles of Association, with the purpose of promoting long-term optimization of the governance structure and protecting the interests of the company and our shareholders. General Meeting of ShareholdersGeneral Meeting of Shareholders We strictly abide by the Articles of Association, the Ru

35、les of Procedures for the General Meeting of Shareholders and the Code of Conduct for Controlling Shareholders and Actual Controllers in terms of the convening of general meetings and relevant voting procedures. We treat all shareholders equally and guarantees that shareholders can fully exercise th

36、eir rights. During the reporting period, we held two general meetings of shareholders. Board of Directors (BOD)Board of Directors (BOD) We convene BOD meetings and perform relevant voting procedures strictly in Environmental, Social and Governance Report 2020 7 line with the Articles of Association,

37、 the Rules of Procedures for the Board of Directors, and the Code of Conduct for Independent Directors, as well as guidance by the General Meeting of Shareholders. All of our directors perform their duty diligently in accordance with relevant regulations, and earnestly attend BOD meetings and the ge

38、neral meeting of shareholders. Our BOD consists of four directors and three independent directors, including three female directors (43%). Our directors have abundant experience in various industries such as law, finance, management, and marketing, which facilitates our all-round development. The Au

39、dit Committee, Remuneration and Appraisal Committee, Strategy Committee and Nomination Committee set up under BOD performed all duties diligently during the reporting period. Board of SupervisorsBoard of Supervisors Our Board of Supervisors is elected in accordance with the Company Law, the Articles

40、 of Association, and the Rules of Procedures for the Board of Supervisors. The Board of Supervisors consists of three supervisors, who supervise the duty-related acts of the directors and senior management in accordance with the Rules of Procedures for the Board of Supervisors. The Board of Supervis

41、ors responsibilities include: proposing to remove from office any directors or senior managers who are in violation of laws, administrative regulations, Articles of Association, or resolutions made at the general meeting of shareholders; conducting a general investigation in the event of any abnorma

42、lity in our operations; when necessary, hiring an accounting firm or a law firm or other professional institutions for assistance. The supervisors diligently perform their duties and honestly and dutifully supervise our financial status and the performance of duty by the BOD and senior management in

43、 terms of legality and compliance, to safeguard the legitimate interests of the company and our shareholders. Environmental, Social and Governance Report 2020 8 Internal CoInternal Controlntrol We introduced our Internal Audit Policy and set up sound internal departments on the basis of our business

44、 characteristics and internal control requirements. Based on various internal policies, we have clearly defined the objectives, responsibilities and authorities of each internal department and position, and established corresponding authorization, inspection and accountability policies, so as to ens

45、ure counterbalance and mutual supervision among departments and positions. We have formulated a complete set of management and operating procedures and system standards and created an IT operating support system covering management and industrialization for key control points in business processes.

46、We are able to perform full control over our operations using multiple systems, including PLM, PTS, ISP, CRM, and Collaborative Product Commerce. We set up the Internal Audit Department under the Audit Committee to review and evaluate the completeness, rationality and effectiveness of the internal c

47、ontrol system in internal departments and holding subsidiaries. In 2020, we evaluated and monitored our internal control effort, monitored, reviewed, analyzed, and evaluated the formulation and implementation of our internal control regulations and procedures, and put forward suggestions for rectifi

48、cation and improvement. We performed regular audits on internal control at each business unit and prepared audit reports, put forward suggestions and advice for improvement, and followed up on the rectification progress. PrProtection of Shareholders and Investors Interestsotection of Shareholders an

49、d Investors Interests We maintain close communication with our shareholders, and keep track of shareholders expectations and requirements on the company, so as to guarantee the legitimacy and effectiveness of corporate decision-making. We value opinions from small and medium investors as well as for

50、eign institutional investors, and actively adopts useful suggestions in day-to-day operations, to better protect small and medium investors interests. We conduct multi-dimensional communication with Environmental, Social and Governance Report 2020 9 investors through the Shenzhen Stock Exchanges IRM

51、 platform, (an investor relations management platform), online and physical analyst workshops, investors field research, reverse roadshows for institutional investors, etc. We disclose information such as company news and announcements in a timely manner through media designated by the China Securit

52、ies Regulatory Commission and major financial media both on a regular and irregular basis, and have set up a multi-level, multi-dimensional investor relations management system to enable smooth and efficient communication between the company and the public (including investors). We get included in i

53、ndexes such as the MSCI (Morgan Stanley Capital International) China A Index and FTSE Global China A Inclusion Index. We actively respond to the capital markets expectations and concerns on our ESG performance. We were rated BBB in the MSCI ESG ratings in November 2020, and was well recognized by ES

54、G investors in the capital market. Business EthicsBusiness Ethics We espouse a culture of sunshine in company operations and management, which upholds honesty and integrity. Our business codes consist of major relation codes, such as operating codes, management and control codes, and dealer and supp

55、lier management codes, employee performance standards, and employee code of conduct. By continuously improving the code of ethics, trust mechanisms, and employee management, we maintain high standards of business ethics, and encourage our partners to join such efforts. We have formulated a series of

56、 documents, including the Accountability Policy, the Anti-fraud Policy, the Audit and Monitoring Policy, the Policy on Management of Emotional Connection with Clients, the Complaint and Feedback Policy, the Reward and Punishment Policy and the Rules on Other Immediate Rewards and Punishment for Viol

57、ations of Regulations and Disciplines, to prevent moral hazards in company operation and management, and enhance the monitoring and management of our business behaviors. In terms of business activities, we sign a Corporate Integrity Agreement with Environmental, Social and Governance Report 2020 10

58、each of our suppliers and distributors, setting out the code of conduct that all parties should abide by in their business activities. We have expressly specified how to file a complaint to the Audit and Monitoring Department, as well as the economic and legal liabilities as a result of violations.

59、Our suppliers shall make commitments to guarantee performance of contract and an open and transparent business environment. In the management of emotional connections with the clients, we have clearly defined the acceptable types of gifts and entertainment offered by the clients, so as to maintain c

60、ompany integrity and decent business relations. As Internet technologies and smart home appliances find wide application, we pay significant attention to information and data security, especially consumer privacy protection. We regularly update our Privacy Policy on our official website. Each users

61、private information will be kept strictly confidential, and will not be shared with any third party without the users consent. In terms of information security, we have created a strict information security policy to control use of computers and networks, document storage and retention, and data inp

62、ut and output. We have also formulated relevant documents, such as the Information System User Rights Policy and Computer Terminal Security Policy, to support the authorization mechanism and handle information security risks while keeping business and systems running smoothly. In order to implement

63、effective monitoring of business activities, we have set up our own complaint and feedback platform and WeChat official account for customers to file complaints and offer suggestions. The Audit and Monitoring Department is in charge of complaint and feedback management and guarantees that customer c

64、omplaints and feedback are properly handled in a confidential, objective, thorough, and timely manner. We regularly carry out training sessions on business ethics. In our Star Plan orientation program for new employees, a special course named Business Ethics and Sunshine-style Management will teach

65、new employees about our culture of sunshine and ethical bottom lines. Through case analysis and scenario-based Q&A sessions, new employees could develop a thorough understanding of business ethics. Every new employee will sign a letter of commitment on integrity and self-discipline. Environmental, S

66、ocial and Governance Report 2020 11 Environmental, Social and Governance Report 2020 12 I IHome Appliances for HighHome Appliances for High- -quality Lifequality Life As an industry leader, we have been focusing on appliances for healthy eating for 27 years since 1994, and enjoy a high brand reputat

67、ion. With an upgrade of our business and branding strategy, we have transformed from a manufacturer of soy milk makers to a provider of a wide range of home appliances promoting a high-quality lifestyle. Through independent R&D and ongoing innovation, we aim to make it easy, convenient, and appealin

68、g to lead a healthy lifestyle for customers. With lightweight, stylish, intelligent and convenient products offering a perfect combination of tools and ingredients, we help customers enjoy healthy diets with optimal nutrition effortlessly. 1.Product Innovation1.Product Innovation Product competitive

69、ness depends on three factors: technology, design, and supply. Entering a new market where customer demand is high is crucial for a companys long-term growth, which requires an effective combination of technology, design and craftsmanship. Innovation is embedded in our DNA. We have attached great im

70、portance to R&D and technological achievements since it was incorporated. We have created a three-tier R&D system to meet customer demand for home appliances facilitating quality lifestyles. We remain responsive to the evolving needs of the market and keeps abreast of industry frontiers. In 2020, we

71、 beefed up investment in R&D of innovative technologies and creating hero products, and improved our R&D system and policies and hired top talents, to drive technological advancement and innovation. In 2020, we invested RMB 345,841,900 in R&D (up 4.68% YoY), accounting for 3.08% of the total revenue

72、. Environmental, Social and Governance Report 2020 13 Joyoungs Three-tier R&D System Focusing on product innovation and customer health, we made multiple breakthroughs in R&D of home appliances promoting healthy and high-quality life while pushing for research in the big health industry in an effort

73、 to explore new healthy lifestyles in 2020. We have been working with the Institute of Materials Science, Chinese Academy of Sciences as well as top companies such as Huawei on healthy materials and smart products. We plan to solve customer pain points in promising fields and bring new growth driver

74、s to us. Joyoungs Product R&D Achievements in 2020 Trailblazing Products High-speed Blender/Food Processor L18-YJ08 The industrys first low-noise, variable-frequency blender Horizontal Noodle Machine N3 The industrys first horizontal noodle machine K1S The industrys first self-cleaning soy milk make

75、r Cordless Juicer Z2-Vmini The industrys first cordless portable juicer Steam Rice Cooker S3 The industrys first steam rice cooker with uncoated inner pot Steam Air Fryer SF5 Steam-frying, a healthier alternative to stir-frying Environmental, Social and Governance Report 2020 14 Disruptive Products

76、Self-cleaning Low-noise Smart Blender Y88 The industrys first self-cleaning, low-noise blender Vertical Noodle Machine L6 The industrys first smart vertical noodle machine K780 Cup-switching-enabled, multifunctional, self-cleaning soy milk maker Cordless Juicer JYL-C902D The industrys first cordless

77、 portable juicer Steam Rice Cooker S160/S360 The industrys first uncoated steam rice cooker with a glass body Sandwich Maker Breakfast solution for certain scenarios Promising Products Low-noise High-speed Blender L18-Y33D Self-cleaning low-noise Smart Blender Y1 Auto-water-adding Noodle Maker L20 T

78、he industrys first smart weighing and water-adding noodle maker D110 A1 solo D561 Mini Soy Milk Maker (for one person) Vertical Juicer JYZ-V5plus Horizontal Juicer JYZ-E22C Frame-shaped Steam Rice Cooker S501 Uncoated and transparent steam rice cooker After the brand “Shark” entered the Chinese mark

79、et, it has quickly become the No. 1 brand (by market share) offering steam mops and electric mops on major e-commerce platforms such as Tmall and JD.com. Currently, Sharks steam mops, which enable thorough steam disinfection and sterilization, are popular among customers who need deep home cleaning.

80、 In addition, we provide cordless and auto-clean electric mops for customers who opt for lightweight and cordless mops to Environmental, Social and Governance Report 2020 15 meet differentiated needs of deep cleaning. We are also working on developing lightweight and cordless vacuum cleaners. We wil

81、l tap into the synergy with Shark in sales channel marketing, R&D, customer insight, etc., to bring more variety into our product portfolio. We have been encouraging technological innovation and doubling down on intellectual property protection, so as to lay a solid foundation for creating more prod

82、ucts with core advantages. We have built a professional, efficient and outstanding intellectual property team, which is dedicated to enhancing our operations security through continuous improvement of patent risk control. The team regularly conducts patent monitoring, so as to facilitate patent map

83、analysis for various product lines. We have been working on systematizing its trademark management and building up an iron-clad trademark protection system. Today, we are doing great in protecting our patents for core products such as soy milk makers, blenders and cookers. We will keep widening and

84、deepening our patent moat. Joyoung Patent Data 2020 New Patent Applications 2,227 Inventions 307 Utility models 1,710 Designs 210 Total Patents Obtained 8,378 Inventions 427 Utility models 6,846 Designs 1,105 Environmental, Social and Governance Report 2020 16 In August 2020, Joyoung Kitchen Applian

85、ces Provincial Key Enterprise Research Institute was listed as one of Zhejiang Provinces Science and Technology Projects. 2.Quality First2.Quality First Product quality is the core part of customers rights and interests and the lifeblood of an enterprise. We pin our faith on a strategic transformati

86、on toward a brand of high-quality home appliances. We have established the Product Tracking System (PTS) which can, by dint of barcodes, track and manage the entire business chain, including supplier portals, process quality control, logistics control, distributor purchase orders, sales and inventor

87、y, and after-sales management. Environmental, Social and Governance Report 2020 17 PTS Functions We have formulated a series of policy documents such as the Defective Product Management Policy, the Routine Product Quality Check and Confirmation Procedure, the Continuous Improvement Procedure, the Su

88、pplier Quality Policy and the Requirements on Outsourcing of Food Contact Materials, so as to guarantee product quality. We have set up the basic framework, procedures and methods for safe designs, and formulated design specifications and design history files, in an effort to guarantee product desig

89、n safety from the very beginning. We have created a quality management system and a food safety management system, and strictly apply them in the production and operations processes. As for after-sales management, we proactively collect market feedback through multiple channels and analyze the feedb

90、ack information, thus keeping improving our products. Our employees have developed a strong awareness of quality. They strictly follow every procedure and standard for production, on-site management, quality check, etc. Thats how we maintain our product quality. In 2020, we recorded no product recal

91、l caused by product safety concerns. Being practical, collaborative, dedicated, and innovative. That is our vision for quality control. We encourage every employee to take part in system management, Environmental, Social and Governance Report 2020 18 process control, and quality improvement. Since 2

92、011, we have held 10 quality control improvement events in a row. Over the past decade, we have improved an average of nearly 100 items every year. We did this only internally at first, but now, our suppliers are also part of the annual event. 2020 Quality Management Performance We are committed to

93、not only product quality, but also life quality of our consumers. We have set up the Nutrition Research Department for product research, recipe development, and nutrition marketing. We have inked long-term partnerships with relevant well-known universities such as Jiangnan University, China Agricult

94、ural University, and Zhejiang Gongshang University to delve into nutrition and health, cooking theories and standard formulation, so as to provide theoretical support for our product R&D and innovation, thus offering consumers a variety of cooking solutions. The Nutrition Research Department has hir

95、ed six certified/senior nutritionists, led over 160 cooking research projects related to kitchen appliances such as soy milk makers, rice cookers and blenders, developed over 2,000 recipes, and obtained over 30 patents. We have been active in attending external academic conferences and provincial an

96、d municipal outstanding QC team selection activities. We have trained a lot of quality control talents for ourselves and our suppliers through learning sessions and competitions. In 2020, our project Reduction of Transistor Defect Rate in Magnetic Furnace LC7 won the second prize of Zhejiang Provinc

97、es QC Achievement Contest, and the second prize of the 6th Quality of China Enterprise Case Contest; three of our QC teams, namely, Special Agent, Trailblazer, and Vanguard each won the title of 2020 Hangzhou Excellent QC Team. Environmental, Social and Governance Report 2020 19 State certified labo

98、ratory We have built a state-level home appliance testing laboratory, which has received a series of certificates, such as CNAS National Accredited Laboratory, Laboratory Registered with China Energy Label Management Center, UL/SGS/TUV/ITS/KTL Laboratory, and Public Testing Resource Development Labo

99、ratory. As an effective guarantee for the quality of our own products, the testing laboratory also provides professional and reliable testing and inspection services on material safety, electromagnetic compatibility, product performance, reliability, chemistry, food safety and nutrition for the home

100、 appliance industry. 3.Better User Experience3.Better User Experience We have been focusing on building an all-channel, user experience-centered, and efficient customer service system, offering flexible customer services, and promoting service digitalization, so as to meet customers diverse needs, b

101、uild a transparent big service system, and improve the brand reputation. We have been improving our communication with consumers. Our customer service call center has more than 60 professional agents, including product experts and agents for VIP customers. We also have AI-powered customer service ro

102、bots. We keep training the robots with regularly updated service knowledge database. So far, our customer service robots have provided over 1.32 million services. Customers may also directly contact our after-sales outlets through our WeChat mini program, which has so far provided about 1.14 million

103、 self-service queries. We have posted over 3.4 million customer engagements through all channels. Among them, 80% are Environmental, Social and Governance Report 2020 20 self-service engagements, which means we have a convenient and efficient inquiry response system. We stick to the principle of Sun

104、shine Service. We never sidestep every negative review. Instead, we thrive on negative feedback and take it as our motivation for developing better products. We have set up multiple online and offline channels for consumers to seek help, make suggestions, and file complaints. We have been streamlini

105、ng our order dispatch management and complaint management as part of our efforts to build a proactive service management system. We have introduced a First Call Accountability complaint handling system. Whenever the Customer Service Department receives a complaint via any channel, it will check the

106、content of the complaint and forward it to the customer service manager and the responsible department within 1 hour (during working hours), which will then handle the compliant within 1 hour and notify the complainant of a handling result within 24 hours. As for any complaint that cannot be handled

107、 in a timely manner, we will promptly inform the complainant and apologize for our delay. We will follow up the compliant until it is resolved. Throughout the process, we pay full attention to how consumers feel and do our best to minimize any negative impacts. Service digitalization is part of our

108、transformation. We have integrated assorted intelligent service features into our customer service platform, which increases our engagements with customers and enables real-time sharing of information such as order dispatch, response, settlement, and follow-up, thus forming a visual management dashb

109、oard that displays service quality, efficiency, early warning, and review. With service digitalization, we have seen a 50% increase in our customer service response and settlement efficiency. As of the end of 2020, we have had over 2,000 after-sales service outlets, over 300 repair centers, and more

110、 than 3,000 star-rated service workers across China, forming a nation-wide and all-round after-sales service system. Our after-sales service system covers basic warranty policies, five exemptions/safety checks, trade-in services, and exclusive SKY services, as we are seeking to meet consumers divers

111、e needs and provide the best after-sales experience in the industry. We also regularly Environmental, Social and Governance Report 2020 21 carry out various offline activities as part of our consistent policy to serve our customers before they ask and reward our loyal customers. Joyoung After-sales

112、Service Policy Shark (China) Service Policy Environmental, Social and Governance Report 2020 22 Exclusive SKY Services Series Basic Benefits Extra Value S-series rice cookers Free shipping for in-warranty repair All models Lifetime free cleaning K-series soy milk makers All models Lifetime free blad

113、e replacement Y-series blenders YJ08/Y88/Y966.Y1/Y1Pro Lifetime free motor replacement Y20/YZ01/Y60/Y920/Y930 10-year free motor replacement Models indicated on VIP card One free motor replacement (no time limit) In 2020, our product sales hit a new high. We also pay heed to how consumers look at ou

114、r brand. We have introduced the Kepler Observatory customer feedback system to collect valid customer feedback on products, purchases, and services. In 2020, our customer experience improved by 26.24% YoY, and our overall positive feedback rate increased to 97.67%. Joyoung Industrial TourismJoyoung

115、Industrial Tourism Relying on a complete set of infrastructure facilities at the Joyoung Creative Industrial Park, we have built a Zhejiang demonstration base for industrial tourism that integrates sightseeing, learning, shopping and other functions. We provide various industrial tourism sessions an

116、d multi-functional tourism products, including sightseeing, interaction, research practice, shopping, and customized team building, for different customer groups. Visitors to the Joyoung Creative Industrial Park may learn about our brand culture, the way soybeans are made into soy milk, kitchen appl

117、iances and knowledge on health and nutrition. In 2020, the Joyoung Creative Industrial Park received a total of 18,000 visits while maintaining effective pandemic control. Our industrial tourism business has won a series of awards such as Hangzhou Environmental, Social and Governance Report 2020 23

118、Youth Science Education Base, Young Pioneers Labor Education Base, Study Camp Base for Hangzhou Primary and Middle Schools, Quality Education Practice Base for Hangzhou Primary and Middle Schools, International Tourism Resort for Social Resources, and Hangzhou Best Metropolitan Attraction of the Yea

119、r. Environmental, Social and Governance Report 2020 24 II II、Building a Sound Ecosystem with PartnersBuilding a Sound Ecosystem with Partners In order to build a sustainable ecosystem of healthy and smart kitchen, we have been seeking partners that share our values. We are working with our partners

120、along the industry value chain (R&D, products, supply and sales) to create a sound business ecosystem, thus achieving mutual growth and win-win outcomes. 1.Promoting Supplier Growth1.Promoting Supplier Growth Supply-chain partners are very important to us. We have a wide range of suppliers, includin

121、g original design manufacturers (ODM), original equipment manufacturers (OEM) and component suppliers, which are mainly located in the Yangtze River Delta region, the Bohai Bay Rim (where Jinan in Shandong is the center) and the Pearl River Delta region. We seize market opportunities and implement t

122、he strategy of Three Stars and Two Capabilities to improve our entire manufacturing process and performance for higher supply capacity and better coordination with suppliers, so as to cater to the ever-changing customer demands. Through cooperation with Tmall in 2018, we digitalized our supply chain

123、. We have introduced the Procurement Management Policy, which requires our new suppliers to pass ISO 9001 or IATF 16949 quality management certification. To guarantee safety and sound environmental management, suppliers are required to comply with laws and regulations on fire safety, environmental i

124、mpact assessment, pollution discharge, employee health and safety, etc. We monitor suppliers product quality, process quality, and system quality. In the event of any defect, we urge relevant supplier to take remedial measures. We conduct quality check and performance testing on suppliers every year

125、. In April 2020, we carried out quality check on 37 suppliers, including 11 component suppliers. Over 89% of them receive a three-star or better rating. Our suppliers performed well in terms of the Three Firewalls, China Compulsory Certification (CCC), and New Product Introduction (NPI). In 2020, we

126、 launched lean production Environmental, Social and Governance Report 2020 25 certification on 27 suppliers and our Jinan Factory in terms of mechanism, quality assurance, on-site improvement, and reform and innovation. More than 70% of the suppliers passed the certification, and our Jinan factory o

127、btained five-star certificate. In addition to helping our suppliers improve their product quality and manufacturing management, we give them a hand when they are in the throes of operations. After the Spring Festival 2020, COVID-19 began to bite, as some suppliers were nagged by shortage of workers,

128、 logistics restriction, and growing labor and raw material costs. In this context, we provided our suppliers with resources and preferential terms, and recommended them our partner bank where they could apply for loans, so as to help them get over the hump. Case: Supply Chain Live Streaming Workshop

129、 The Supply Chain Live Streaming Workshop is a live streaming platform we have developed to empower our suppliers and impart supply chain knowledge to our employees. The workshop aims to promote supply chain integration. On April 29, 2020, we held the first live streaming session to interpret suppli

130、er quality management systems, which involved a total of 206 participants, including our procurement managers and quality engineers and 92 representatives from 57 suppliers. During the session, we offered insights into several key points, including the scope of supplier certification, APQP process,

131、and MAS. We fielded many questions raised by supplier representatives. The session was well received by suppliers. We also held a series of special live streaming events focusing on POP modules, R&D management, general management, cultural modules, and lean production modules in 2020. Environmental,

132、 Social and Governance Report 2020 26 2.Expanding Sales Channels2.Expanding Sales Channels We have introduced a series of distributor rating policies, including the VIP Distributor Rating Policy, the Distributor Rating Policy, and the Color-based (Red, Yellow and Green) Distributor Rating Policy, to

133、 classify our distributors into four levels (Class A, B, C, and D), and VIP distributors into four groups (Diamond, Gem, Jade, and Rising Star). We encourage our distributors to put forward advice on our marketing and management, thus enhancing our brand reputation. To expand our sales channels, we

134、have been improving our existing tens of thousands of physical points of sale across China and exploring new retail models. We have opened specialty stores in hundreds of shopping malls. Our online business continues to grow, which keeps sharpening our e-tail edge. We have also ventured into new ret

135、ail and live streaming fields, in an effort to create a one-stop all-category, visualized, and interactive shopping scenario for consumers. Our new attempts have achieved many intelligent features such as data monitoring and sharing, member management, traffic attraction, QR code payment and shipmen

136、t. We have gained more than 20 million followers from multiple channels, including WeChat, Weibo, Douyin, Kuaishou, points of sale, and after-sales outlets. As we are pooling more resources to target younger customers, we have come up with a brick and click approach: Consumers can watch live streami

137、ng events online and try the product offline. Relying on digital operations, we have seized opportunities brought by the popularity of video sharing and live streaming, and created an interactive scenario-based business model comprised of sales channels, products, brand influence and users, forming

138、a three-dimensional and multi-level sales network for precision marketing. We channel most of our resources to mainstream products to achieve high-quality growth and expand brand influence. During the COVID-19 pandemic, we helped our distributors and product promoters embrace a new sales model: live

139、 commerce. We taught them how to use live streaming devices and how to use the novel means to boost their product sales. In 2020, more than 150,000 product promoters participated in over 10,000 on-site live Environmental, Social and Governance Report 2020 27 streaming events. Smart storesSmart store

140、s There is a natural barrier between traditional e-commerce channels and physical brand stores, resulting in multiple problems, including low inventory turnover and varying customer experience. Smart stores are a right solution to these pain points. In terms of logistics and product distribution, we

141、 ship products from the nearest store to customers, so as to improve inventory efficiency in physical stores, and minimize the physical distance between the place of origin and consumers, thus significantly improving consumer experience. Moreover, such mechanism could mitigate the shipment pressure

142、of e-commerce warehouses in big sales seasons. In this way, online orders are distributed to stores across China for delivery, thus facilitating inventory sharing in all channels. Online store and physical store inventories could be shared to guarantee sufficient supply, and promote inventory struct

143、ure and inventory turnover. Environmental, Social and Governance Report 2020 28 Case: Smart Stores of New Retail Joyoung Tmall Flagship Store integrates the inventory information flow with the product flow, highlighting a core of full channels, good shopping experience, and high efficiency. The stor

144、e allows customers to select a product online and try the product offline, a move that could win customer trust and expand brand influence. We also provide customers with special discounts for purchase at physical stores and the in store self-pickup service. In this way, we can get closer to consume

145、rs and boost footfall. Case: Y3 Blender Becomes Top Seller in Kitchen Appliance Sector upon Debut Y3 Blender was one of Joyoungs key strategic products in 2020. Joyoung tried to convey a brand proposition of cooking at home and kept highlighting a feature of auto clean through scenario-based marketi

146、ng. Y3 Blender rocketed to the list of Tmall Hey Boxs Class-S new products upon its debut, and one of the RMB-1,000-odd top-selling appliances in Douyin marketing. It was also the best-selling kitchen appliance upon debut in recent year. This was another low-budget marketing success, where Joyoung c

147、halked up 340 million impressions, and reported a GMV of RMB 7.46 million and sales of 5,727 units on the first day of release. Environmental, Social and Governance Report 2020 29 3.Industry3.Industry- -wide Winwide Win- -win Strategywin Strategy We take win-win partnership as our business growth st

148、rategy. In the Internet + era, we are seeking business partners with shared values in fields of R&D, products, supply and marketing, etc., so as to achieve a synergistic effect. Case: Cooperation in Product Development: Joyoung X Huawei Smart Kitchen - Auto Clean K2S Soy Milk Maker Unveiled At the H

149、uawei Developer Conference held in May 2020, Joyoung and Huawei jointly launched a smart soy milk maker powered by Huawei Harmony OS. The K2S Soy Milk Maker allows users to enjoy smart features such as quick control, quick services and quick recipe customization. With the Harmony OS, the soy milk ma

150、ker can be connected to all smart kitchen scenarios. It is Joyoungs trailblazing attempt to integrate smart kitchen appliances into smart homes. K2S is a key milestone in Joyoungs technological development, from pulverization, heating, boiling, fine grinding, and extraction to blending, dry soybean

151、grinding, filtering-free, smart control, and auto clean. Totally freeing users hands, K2S ushers in a new fashion for kitchen life. Environmental, Social and Governance Report 2020 30 Case: Cooperation in Business Environment Safeguarding: Joyoung Joins Alibaba Anti-Counterfeiting Alliance Joyoung h

152、as inked a partnership with Alibaba in intellectual property protection. Joyoung serves as the chairman of the furniture and home appliance group, a member of the advisory committee, and the new observation editor at the Alibaba Anti-Counterfeiting Alliance (AACA). Joyoung and Alibaba have jointly l

153、aunched a Queqiao anti-counterfeiting project, in which Joyoung provides Alibaba with new counterfeiting clues it has found on the Internet, and Alibaba regularly informs Joyoung of the suspected infringing products it has removed from its platforms. The project aims to promote information exchange

154、and improve anti-counterfeiting efficiency. Joyoung has also cooperated with Alibaba in product identification, special cases, civil litigation, and other relevant fields. Joyoung also actively participates in AACAs public education, training sessions, anti-counterfeiting projects, theoretical and l

155、egal research events. In the AACA + Dada Planet Golden Week event, Joyoung for the first time empowered nearly 200 AACA brand owners in intellectual property protection, demonstrating its ongoing effort in business education. Case: Cooperation in Supply Chain: Joyoung and Cainiao Supply Chain Upgrad

156、es Strategic Partnership On October 30, 2020, Joyoung and Cainiao Supply Chain announced an upgrade of their strategic partnership. On top of the existing B2C model, they will extend their cooperation to the B2B field. Cainiao will cover the logistics from factories to Cainiao warehouses for Joyoung

157、, solving Joyoungs full-link shipment issues. In addition, Cainiao Supply Chain will also build an integrated and visualized supply chain system that includes online/offline business flow, data flow, logistics and capital flow, a move that could help Joyoung reduce circulation nodes and improve effi

158、ciency in warehouse network layout. Environmental, Social and Governance Report 2020 31 Case: Cooperation in Procurement: Joyoung Teams up with Sunyur to Launch First Digital Platform for Home Appliance Procurement On December 28, 2019, Joyoung and Beijing Sunyur Network Technology Co., Ltd. announc

159、ed the launch of Joyoung Yuegou Mall, a platform that allows Joyoung to achieve an online and visualized procurement management, and promote agreement-based procurement. As Joyoungs first SaaS system, Joyoung Yuegou Mall enables Joyoung to manage purchasers, consumers and suppliers in real time and

160、bring demand, orders and other data online. The digitization of the full procurement chain, which covers purchase requisition, ordering, shipment and settlement, proves to be a boon for Joyoung to create greater value, cut cost and improve efficiency. Connected to 25 systems such as Oracle EBS, self

161、-developed OA system, and WMS system, Joyoung Yuegou Mall has realized the devolution of bargaining power to suppliers and distributors. As a trailblazer in the digital procurement of small home appliances, Joyoung Yuegou Mall is expected to give a strong boost to the industry development. Environme

162、ntal, Social and Governance Report 2020 32 IIIIII、Poverty Alleviation Targets Nutrition and HealthPoverty Alleviation Targets Nutrition and Health Charity has been part of our values from the word go. During our development, we always remain true to our original aspiration to contribute to poverty a

163、lleviation. We have launched several philanthropic projects such as Hope Kitchen and student assistance. 1.Joyoung Hope Kitc1.Joyoung Hope Kitchenhen Over the past decade, we have leveraged our strengths and established 1,084 Joyoung Hope Kitchens in 222 counties in 27 provinces and autonomous regio

164、ns across China. Every day, more than 500,000 students can enjoy the food cooked from Joyoung Hope Kitchens. The Hope Kitchen project has so far benefited more than 2.6 million people. We have introduced the Hope Kitchen + Nutrition Education model to improve students dining environment, enhance stu

165、dents awareness of nutrition and help them develop good eating habits. According to statistical data, most schools that have introduced Joyoung Hope Kitchens have set up a food safety department, and 97% of them have improved meal preparation efficiency. In addition, the average meal preparation tim

166、e has been shortened by nearly 30 minutes, the kitchen utensils have been disinfected by nine times per week, the average number of students eating at school has increased by 34%, the per capita energy cost of student meals has dropped by 18%, and the malnutrition rate in students has fallen by 14.9

167、2%. From a sample of grade-5 students, the average height growth in them reached 1.43 cm, where the figure is 1.25 cm for boys and 1.57 cm for girls. Comparing with the baseline data in 2010, the average height growth in grade-5 students in schools that have introduced Joyoung Hope Kitchens reached

168、4.68 cm, where the figure is 5.56 cm for boys and 3.92 cm for girls. Joyoung Hope Kitchen has created a social value of nearly RMB 227 million, and brought a social return on investment (SROI) of 233%. In 2020, Joyoung Hope Kitchen was listed as one of the Top 50 Outstanding Environmental, Social an

169、d Governance Report 2020 33 Projects and included in the Yearbook 2020: Chinas Poverty Alleviation Efforts by the Poverty Alleviation Office of the State Council. The Joyoung Hope Kitchen project team has been active in pairing poverty alleviation in eastern and western regions, and it has formed a

170、targeted poverty alleviation model in collaboration with the Poverty Alleviation Office. In 2020, we successively launched a special poverty alleviation campaign themed Build, Improve and Standardize1 in Chinas poverty-stricken regions such as Weiyuan in Gansu, Qiandongnan in Guizhou, Pingjiang and

171、Sangzhi in Hunan, and Liangshan in Sichuan. The campaign, focusing on three aspects: equipment, management, and personnel, aimed to ensure local students could eat healthy and nutritious meals at school. Top 50 Outstanding Projects on Targeted Poverty Alleviation by Chinese Companies 1Build refers t

172、o building kitchens in rural schools in poverty-stricken regions; Improve refers to improving the meal preparation capacity and efficiency; Standardize refers to standardizing school kitchen management by organizing relevant training sessions. Environmental, Social and Governance Report 2020 34 Joyo

173、ung Hope Kitchen has become an influential charity brand both internally and externally. We recruit volunteers from our employees and the public who are kind-hearted and care about public welfare. Joyoung Hope Kitchen volunteers are good teachers of nutrition education for needy children. Joyoung Ho

174、pe Kitchen not only brings direct benefits to children, but also gives volunteers and the public an opportunity to learn about the current status of rural education and life and do what they can to help others while drawing life inspiration. Kitchen Invest RMB 30,000-100,000 in building a Hope Kitch

175、en that is equipped with modern utensils and meets the national hygiene standards Form a standardized kitchen and a duplicable show kitchen Nutrition Education Set up a nutrition education class to raise students awareness of nutrition and cooking Organize nutrition education camps to help students

176、develop good eating habits Develop nutrition education textbooks based on the characteristics of students of different ages Joyoung Hope Kitchen proves to an impetus for the Nutrition Improvement Program for Rural Students under Compulsory Education and one of the basic and sustainable ways for pove

177、rty alleviation among students. With the poverty alleviation drive emerging triumphant and the rural revitalization strategy in full swing, we established the Zhejiang Joyoung Charity Foundation at the Zhejiang Provincial Department of Civil Affairs in 2020, in a sign of our ongoing support for rura

178、l education, rural health and other related areas in rural revitalization. In the next decade, we will continue to donate RMB 50 million to the foundation. Plus Joyoung Chairman Wang Xunings personal donation of RMB 50 million, the foundation will have at least RMB 100 million available for our majo

179、r rural kitchen projects. Joyoung Charity Foundation is turning a new page. Environmental, Social and Governance Report 2020 35 Case: Joyoung Hope Kitchen Musters up Multi-party Support for Needy Students in Sangzhi Sangzhi in Hunan Province is a state-level poverty-stricken county. The State Intell

180、ectual Property Office has been working on poverty alleviation in Sangzhi for 22 consecutive years, mainly in terms of education. In 2016, recommended by the State Intellectual Property Office, the Joyoung Hope Kitchen project team threw itself into the nutrition improvement plan for rural students

181、under compulsory education in Sangzhi County. From 2016 to 2020, the team paid several visits to local schools for field research, and mapped out kitchen renovation and construction plans based on the actual conditions of these schools. At last, we managed to build 34 high-quality Joyoung Hope Kitch

182、ens in the county, extending our targeted poverty alleviation efforts from education support to nutrition improvement. With the hardware project bearing fruit, the Sangzhi County Education Bureau struck while the iron was hot and put together an expert team to prepare the Detailed Healthy Recipe for

183、 Sangzhi Primary and Middle School Students. Based on the Dietary Reference Intakes and the Dietary Guidelines for Chinese Residents, as well as local eating habits, market supply, economic conditions, etc., the recipe underscored a reasonable balance of whole grains and fine grains as well as meat

184、and vegetable ingredients. The recipe was then applied to all other schools in the county. The Sangzhi County Education Bureau also formulated corresponding detailed recipe boards and standardized the school canteen cost accounting table based on the Hunan Province Primary and Middle School Canteen

185、Management Regulations, and stipulated that all the state subsidies for the nutrition improvement plan and 75% of the living expenses voluntarily paid by students must be spent on food purchase, and the spending details must be disclosed to students, parents, and the public. The move turned out to b

186、e another guarantee for students healthy growth. Environmental, Social and Governance Report 2020 36 Environmental, Social and Governance Report 2020 37 Case: Nutrition Education Workshop 2.0 In 2020, we launched the 2.0 version of the Nutrition Education Workshop as part of our upgraded support for

187、 the sustainability of nutrition education. We provided the guidance for nutrition education workshop decoration, free hardware facilities, courses, training sessions, etc. Such free resources are updated every two years to help teenagers and children grow up healthily. The Nutrition Education Works

188、hops aim to offer health and nutrition knowledge based on kitchens and cooking, and promote traditional food culture, popularize good eating habits, table manners, teamwork, innovative thinking, aesthetics, etc., so as to help them stay healthy and happy. Changsha Affiliated School of Beijing Normal

189、 University Henan Zhengzhou Yingcai International Primary School Zhejiang Pinghu Chongwen Primary School Yiwu Yiting Primary School 2.Contribution to Poverty Alleviation2.Contribution to Poverty Alleviation ConsumptionConsumption- -based poverty alleviationbased poverty alleviation We have introduce

190、d a poverty alleviation model of purchase as donation. During the Womens Day and the Mid-Autumn Festival, we purchase agricultural Environmental, Social and Governance Report 2020 38 products from poverty-stricken districts and counties, and regions covered by the Mountain-sea Cooperation Project. W

191、e launch agricultural products shopping events, such as Charity Fair and New-year Shopping for Poverty Alleviation, from time to time among our employees and partners, as part of our poverty alleviation efforts. EducationEducation- -based poverty alleviatbased poverty alleviationion In 2008, we set

192、up an RMB 20 million education charity fund under the Charity Federation of Jinan Huaiyin District. The fund has been donating its annual interest on principal to the Charity Federation of Jinan Huaiyin District since then. So far, it has donated nearly RMB 15 million. 3.Contribution to COVID3.Contr

193、ibution to COVID- -19 Battle19 Battle When the COVID-19 pandemic broke out at the beginning of 2020, we immediately swung into action and donated four batches of logistics-related appliances worth about RMB 5 million as our support for the front-line medical personnel. On January 26, 2020, the secon

194、d day of the Lunar New Year, Wuhan imposed a total lockdown, sending local medical and living supplies into short supply. We quickly donated water purifiers, boilers, Shark steam sterilizing mops and other resources to the Wuhan Red Cross. In order to support hardworking medical personnel in Wuhan,

195、on February 7, through Shandong Provincial Red Cross, we donated 600 insulated tumblers and portable boilers to Shandongs first and second batches of medical workers heading for Huanggang, Hubei. We also donated 2,400 bags of instant soy milk powders to several local hospitals, as well as 2,000 bags

196、 of instant oatmeal to local medical staff through Alibaba Foundation, as our gratitude for their kindness and devotion. Environmental, Social and Governance Report 2020 39 In addition to home appliances, we also donated 1,000 ICU respirator hoods worth RMB 120,000 to the Second Affiliated Hospital,

197、 Zhejiang University School of Medicine. These hoods were used for COVID-19 prevention and control in Wuhan, especially for self-protection for medical workers treating critically ill patients. Our anti-pandemic efforts were highly recognized. The anti-pandemic command centers at Hubei Province, Wuh

198、an, Huanggang, Jingzhou sent us their letters of gratitude. We were also honored as a Remarkable Contributor to Hubei Provinces COVID-19 Prevention and a Control and Role Model Company in COVID-19 Prevention. Environmental, Social and Governance Report 2020 40 Environmental, Social and Governance Re

199、port 2020 41 IVIV、Young and Enterprising Joyoung EmployeesYoung and Enterprising Joyoung Employees People, teamwork, responsibility, and health are four keywords in our corporate culture. We have created an open and fair career development platform for our employees, and have constantly been improvi

200、ng our talent training system. We provide employees with opportunities to study outside the workplace every year, and attach importance to internal training and promotion. We have built three career paths, as well as an internal competition-based promotion system. We have created a creative working

201、environment, and provide our employees with competitive compensation and benefits, so as to help them achieve their personal value, work with passion and joy, and live a happy and healthy life. 1.Welcome to Joyoung1.Welcome to Joyoung We abide by the Labor Law of the Peoples Republic of China, the L

202、abor Contract Law of the Peoples Republic of China, the Employment Promotion Law of the Peoples Republic of China, and other relevant laws and regulations. We stick to legal employment and advocate a diversified, standardized and transparent employment system. We prohibit discrimination on the groun

203、ds of gender, ethnicity, religion or political stance. We sign labor contracts with employees on the basis of equality, free will and consensus, and specify the legal rights and obligations of both the employer and employees. We have been expanding our social and campus recruitment channels. In 2020

204、, we organized a series of recruitment events such as the Special Job Fair for Overseas Graduates, to introduce top talents for the fast-growing company. As of December 31, 2020, we have had a total of 2,846 employees, and our employee structure was as follows: Environmental, Social and Governance R

205、eport 2020 42 Gender Count Turnover Female 946 28.92% Male 1,900 24.75% Age Count Turnover 29 and below 1,381 31.99% 30-39 1,225 20.40% 40-49 198 18.18% 50 and above 42 18.75% Native Place Count Mainland China 2,839 Hong Kong, Macao or Taiwan 3 Overseas 4 Environmental, Social and Governance Report

206、2020 43 Job Level Count Turnover Junior 2,424 28.39% Middle management 344 12.74% Senior management 78 11.69% 2.Employee Training2.Employee Training We are on the fast track to growth. We are gathering more human resources, and optimizing the allocation of human resources. We maintain our growth mom

207、entum by improving staff professionalism and allocating posts that stretch every employee. Making best of talentsMaking best of talents We have developed our Talent Supply Chain 2.0. Based on our actual business needs, we have mapped out a talent development blueprint for the next one to three years

208、. We have reserved key talents as candidates to middle and senior management and key positions through internal training and external recruitment. We provide employees with three career paths, namely, technology-oriented, quality-oriented, and patent-oriented paths. We have built a project manager e

209、chelon. We review our talent pool every year, and efficiently apply ability assessment results based on the talent nine-square grid, so as to identify high-potential talents, improve key capabilities, and guarantee the succession of key positions. At the same time, we have been introducing top talen

210、ts for our new business, as well as talents with key capabilities and huge potential, to expand our talent pool for the future. The management team is a vital part of our human resources strategy. We have formulated a bench plan for succession to each core manager position to avoid long-term vacanci

211、es. We have implemented the Running Water Plan for managers, Environmental, Social and Governance Report 2020 44 where they rotate every three to five years to enhance organizational vitality. We are bold in promoting young employees with good performance, in a bid to build a battle-hardened talent

212、team. Training talents in multiple waysTraining talents in multiple ways We have our own online knowledge base, lecturer pool, and resource pool, and regularly introduce knowledge from external parties and develop internal micro-lectures. We review our knowledge base every three months and record ev

213、ery learning process, so that we can have our finger on the pulse of every employees growth progress and accurately evaluate how a project is implemented. We have developed our Xiaoyang Academy training platform that offers blended learning, mobile learning, game-based learning and informal learning

214、 as well as digital marketing. Designed for our strategic projects, Xiaoyang Academy can provide innovative, interactive, flexible online learning programs where employees can find it fun and convenient to learn. We have set up a specific training academy for each of our six fields, namely, Marketin

215、g, R&D, Management, Job, HR and Leadership, which are all carried out at Xiaoyang Academy. During the COVID-19 pandemic in 2020, the login rate of Xiaoyang Academy reached over 95%, and the monthly average learning hours per capita was about 8 hours. Xiaoyang Academy provided more than 50 special bl

216、ended learning projects, online learning tasks, etc. Xiaoyang Academy was awarded the Best Digital Operation by YXT.com in 2019, and was listed as one of the Top Corporate Digital Business Schools 2019-2020 by CEIBS Business Online. Environmental, Social and Governance Report 2020 45 Innovations at

217、Xiaoyang Academy Blended learning With a combination of online and offline courses, our employees can access concise and interesting illustrated micro-lecture resources and acquire new knowledge in their fragmented time. Mobile learning We have built a shared community for mobile terminals, as we en

218、courage employees to create their personalized micro-lectures. We regularly hold micro-lecture competitions to make micro-lecture part of our brand culture. We have adopted a progressive incentive system and a point system for payment to create an exclusive mobile learning platform for our employees

219、. Game-based learning To motivate our employees to study, we have integrated learning and game experience, and turned dreary learning processes into interesting challenges through customized question pools and amusing level-up games. Informal learning We have introduced a tutor-based training model

220、based on the formulation of tutorial regulations and improvement in tutor training, set up online tutor-based training plans, flexibly arranged position experience, practice, scenario simulation and other sessions, and carried out monthly meetings, to promote employee training and give full play to

221、the effects and advantages of informal learning. Digital marketing Digital marketing exists throughout the innovative learning programs. We send event notifications, push learning resources, design amusing articles and posters through our corporate account and learning platform to attract learning.

222、Environmental, Social and Governance Report 2020 46 Training hours per capita Environmental, Social and Governance Report 2020 47 Case: TRIZ Innovation Training Camp In order to solve R&D challenges and train top lecturers, in 2020, we set up the TRIZ Training Camp for researchers and R&D personnel

223、from various business units. Trainees selected burning problems related to their business and they were split into 23 groups. TRIZ innovative tools were then applied in a standardized way to solve those problems under the guidance of external consultants and internal lecturers. During the program, o

224、ur lecturers also acquired a lot of experience. We collected over 130 study cases and over 100 patents through the program. We saw breakthroughs in product upgrades, cost reduction, and so on. The numbers of TRIZ level-1, level-2, and level-3 engineers increased to 183 (by 3 times), 32 (by 4 times),

225、 and 13 (by 13 times), respectively. In addition, the program cultivated 24 internal lecturers, of which more than 90% were R&D personnel. The program was well received among employees, and became the second popular program among employees following the new employee training program. Apart from our

226、employees, we also share our learning resources with our suppliers and distributors. We customized the training programs to help our partners grow together with us, thus promoting collaboration along the industry value chain. Environmental, Social and Governance Report 2020 48 Case: Practice-based N

227、PI Training for Suppliers In order to improve the new product introduction (NPI) capability of product and component suppliers and the engineering department, and establish a scientific and sound connection between products and projects, we arranged a practice-based NPI training session for 21 repre

228、sentatives from product and component suppliers and 25 Joyoung employees. We invited experienced lecturers to describe NPI practices in a systematic way, and help supplier representatives consolidate the knowledge they had learned through after-class assignments, which could help improve the NPI cap

229、ability, thus reducing hazards in mass production and complaints over product quality. Case: Training on New Channel Development and Offline Channel Digitalization In December 2020, we invited an expert in new business marketing to give a lecture on the development of new channels and the digital tr

230、ansformation of physical channels for our distributors. Through various business cases, the expert expounded on the transformation of traditional retail channels, marketing innovation and other related knowledge, keeping distributors up to speed on the latest marketing trends. Environmental, Social

231、and Governance Report 2020 49 3.Care for Employees3.Care for Employees We abide by the national laws and regulations. We uphold a philosophy of work with passion and joy, live a happy and healthy life, and provide employees with competitive compensation and benefits, as well as a safe and comfortabl

232、e working environment. We protect the legitimate rights and interests of our employees and respect different opinions. C Compensation and benefitsompensation and benefits We set store by the basic rights and interests of every employee, and provide them with endowment insurance, medical insurance, u

233、nemployment insurance, work-related injury insurance, maternity insurance and housing provident fund in accordance with the Social Insurance Law of the Peoples Republic of China, as well as commercial insurance, to guarantee that every employee has the benefits they deserve. We have established a co

234、mpetitive compensation and benefit system. We provide our employees with incentives based on company profits and their personal performance. We give special reward to meritorious backbone employees without compromising fairness. We also provide our employees with perks such as high-temperature allow

235、ance, cash benefits, dormitories, shuttle buses, annual physical examination, special holidays and care services. We offer a subsidy to encourage our employees to pursue further study and get professional certificates. Environmental, Social and Governance Report 2020 50 Compensation system Skill-bas

236、ed wage, position allowance, assessment-based wage, BU performance bonus, R&D bonus, outstanding sales bonus, company performance bonus, innovation incentives, equity incentives, etc. Benefits Health: regular free physical examination, high-temperature allowance, etc. Care: team building, free trave

237、l, communication allowance, meal allowance, holiday allowance, Six Visits, etc. Insurance: five social insurances and the housing fund paid in full, additional commercial insurance, accident insurance Vacations: paid annual leave, marriage leave, maternity leave, nursing leave, funeral leave, antena

238、tal care leave, breastfeeding leave, etc. Daily life benefits Housing: 5-year free apartment, housing for backbone employees, themed training apartment Shuttle bus: 10 shuttle routes covering the downtown area of Hangzhou Canteen: affordable healthy food Supporting facilities: free gym and fitness f

239、acilities, dry cleaning shop, barber shop, grocery, Internet cafe, KTV, etc. WorkWork- -life balancelife balance Three Cultural Events, namely, Sports Meeting, Staff Conference, and Gala Evening are our major traditional employee events. We regularly hold these events to enhance employees sense of b

240、elonging and happiness. We also have a WeChat platform for employee interaction, the Joyounger journal, an employee BBS, and anniversary publications. Environmental, Social and Governance Report 2020 51 Three Cultural Events: 1. Sports Meeting On October 17, 2020, Joyoung held the Running, Joyoung f

241、un sports meeting, where employees took part in a series of competitive, amusing and family events, such as the 8 x 50 m relay race, tug-of-war, fun games and parent-child competitions. A total of 16 teams participated in the sports meeting. The sports meeting served as a platform for exchange among

242、 different teams, which enhanced employees awareness of teamwork and sense of honor, and sparked their enthusiasm for work and life. Three Cultural Events: 2. Staff Conference The staff conference is held every two years. On April 23, 2019, the Joyoung Staff Conference titled Exceeding was held at t

243、he Jialiang Auditorium, China Jiliang University. At the awards ceremony during the staff conference, outstanding employees and teams received a series of awards, which played an important role in enhancing employees sense of honor and motivating them. In addition, the chairman and president also ga

244、ve their speeches at the conference, which helped employees better understand Joyoungs new strategies for the next year and future, and motivated them to bring better performance. Environmental, Social and Governance Report 2020 52 Three Cultural Events: 3. Gala Evening On November 19, 2019, Joyoung

245、 held the Joyful Joyoung Gala Evening to celebrate the 25th anniversary. All the gala shows were orchestrated and performed by Joyoung clubs, various departments and employees family members. There were singing and dancing, musicals, sketches, sitcoms, choruses, fashion shows, martial arts, etc. Eve

246、nt photos were updated in real time, attracting nearly 45,000 viewers. The event fully demonstrated who Joyoung employees are and what they can do. It was also a presentation of the Joyoung culture. To advocate work with passion and joy, live a happy and healthy life, since 2008, Joyoung employees h

247、ave successively set up 22 clubs with a wide range of themes, including sports, culture, nutrition, health, skills, and parent-child relations. They spontaneously organize colorful leisure events where they can exchange freely to enrich the spiritual culture. Joyoung has built a stadium, a gym, a da

248、nce studio, an ensemble, and a VLOG live streaming studio, which cover a total area of 10,500 square meters, as part of its full support for club activities and encouragement for work-life balance. Environmental, Social and Governance Report 2020 53 Joyoung club activities The School of Nutrition li

249、ve streamed 47 sessions about nutrition education for terminal supervisors and followers. The Running Club organized a Health Run event, which enrolled 157 employees. A total of 137 employees recorded their participation online. The Baking and Cooking Club carried out six baking and cooking events.

250、Employees occupational healthEmployees occupational health The safety and health of our employees is the prerequisite for all of our production and business activities. We strictly abide by the Production Safety Law of the Peoples Republic of China and other relevant laws and regulations. We have pa

251、ssed the Occupational Health and Safety Assessment Series 18001 (OHSAS18001:2011). We have been improving our rules and regulations on occupational health, and enhancing our routine supervision and inspection, so as to raise employees awareness of health, and encourage them to live healthily and wor

252、k happily. When the COVID-19 broke out, we quickly formulated an emergency plan to provide protective measures for employees Spring Festival trips and work resumption. We also launched an online health reporting system to track employees daily health status, and shared knowledge on immunity enhancem

253、ent and pandemic prevention Environmental, Social and Governance Report 2020 54 and control. While following pandemic control requirements, we resumed operations in an orderly manner, and cleaned and disinfected our workplace thoroughly. Employees were required to wear face masks and encouraged to a

254、ttend online meetings, work from home, and keep distance from others to protect themselves and people around them. Environmental, Social and Governance Report 2020 55 V V、Environmental ProtectionEnvironmental Protection We advocate harmony between humans and nature. We seek to minimize the environme

255、ntal impact of our production and operations, in response to the global call for energy saving and emission reduction and higher energy and resource utilization. We have been paying close attention to the latest requirements on environmental protection, such as waste sorting. We are working hard to

256、be a role model in environmental protection. 1.Minimizing Environmental Impact1.Minimizing Environmental Impact We have passed the ISO14001:2015 (Environmental Management Systems). We conduct an internal environmental impact assessment every year, and hire a third party for external review every thr

257、ee years as required. Our factories in Jinan and Hangzhou generate almost no waste gas and water in their production, so their environmental impact is quite small. Our emissions are also within the permit of relevant national standards. We received no complaints or administrative penalties over poll

258、ution throughout 2020. We pay close attention to the environmental impact of our operations. In 2020, when the Hangzhou Municipal Government issued the updated Hangzhou Household Waste Disposal Act, we quickly set up a special team to promote, implement and manage waste sorting. We applied a waste s

259、orting framework featuring daily review, weekly reporting, and monthly summary, in an effort to keep improving our efforts to tackle environmental impact. Through waste sorting and waste reduction measures, we reported a 13.66% year-on-year drop in waste generated in 2020. Environmental, Social and

260、Governance Report 2020 56 Joyoungs waste disposal efforts Infrastructure In our park, we replaced old dustbins with 100 waste-sorting bins, and replaced old outdoor dustbins with new ones for hazardous waste. We also upgraded its waste recycling zone and built a solid waste recycling section in acco

261、rdance with waste disposal regulations. Propaganda We pasted posters across the park, promoted waste sorting through WeChat and other common channels, and assigned specific personnel to review the effectiveness of waste sorting. We opened a waste sorting course to the Joyoung Industrial Tourism proj

262、ect. Waste recycling We hired a third party to collect recyclable waste sorted at the park. In 2020, 296,170 kg of cardboard, 9,410 kg of oil papers, 12,170 kg of foam board, and 34,472 kg of scrap metals were recycled. We partnered with a non-profit organization to regularly collect recyclable wast

263、e such as clothing and cotton for charity donations. We also cooperated with a professional company to collect kitchen waste from our canteen for special disposal. Hazardous waste disposal Our production and operations usually do not generate hazardous waste. In the event of any hazardous waste, we

264、sign a contract with a professional waste disposal company, which will collect the hazardous waste on a quarterly basis and dispose of them annually in a safe and compliant way. Environmental, Social and Governance Report 2020 57 Case: Waste Sorting Course for Industrial Tourism As a role model comp

265、any in industrial tourism, we not only do great in waste sorting in our park, but also prod our visitors into action. In 2020, we opened a waste sorting course to our industrial tourism project. Designed in a vivid way, the course aimed to raise the awareness of environmental protection in children

266、and parents, promote waste sorting methods, and contribute to social sustainability. Waste home appliances have high recyclable value, but they also contain a variety of heavy metals and pollutants. Improper disposal will cause pollution to the environment. In May 2020, the National Development and

267、Reform Commission and six other authorities jointly issued the Plan on Improving the Recycling and Disposal of Waste Home Appliances to Promote the Home Appliance Repurchase, the latest in the governments timetable for streamlining the home appliance industry chain covering production, purchase, rec

268、ycling and disposal in the next three years. In 2015, the United Nations Development Programme and Baidu jointly initiated the Baidu Recycle Green Service Alliance. We joined the alliance in support of waste electronics recycling in China. We launched a trade-in service to encourage consumers to giv

269、e a small appliance of any brand to Joyoung for a discount of up to RMB 400 in the purchase of a new Joyoung product. In 2020, we recycled more than 100,000 used household appliances through the trade-in service. The recycled waste appliances were shipped from after-sales outlets to a local recyclin

270、g company for Environmental, Social and Governance Report 2020 58 proper disposal. 2.Efficient Resource Utilization2.Efficient Resource Utilization We strictly abide by the national regulations on environmental protection. We are seeking to be an environmentally-friendly company, to make the world a

271、 greener place. In 2020, we took a series of measures for energy saving and emission reduction and developed an eco-friendly corporate culture. - We encouraged employees to turn off lights during lunch break for one hour. - In the whole park, we replaced 28 W non-LED lights with 14 W LEDs, replaced

272、14 W non-LED lights with 8 W LEDs, and added 1,280 LEDs, which helped save 1,942 kWh throughout the year. - We canceled the business vehicle service in the urban area and advocated public transportation. In 2020, our fuel consumption was reduced by 48,000 liters compared with 2019. - We advocated do

273、uble-sided printing, which helped save 487,010 pieces of A4/A3 paper in 2020. - We launched an online Q&A session (with prizes) on energy conservation and emission cut. - Every night, our employees conducted a routine check on energy using, and the check results were disclosed everyday within the co

274、mpany. Renewable energy is an effective way to curb climate change and achieve green and low-carbon development. In production and operations, we have been exploring how we can make the best use of renewable energy based on local conditions. In 2015, Joyoung Creative Industrial Park and Hangzhou Zhe

275、ngtai Photovoltaic Power Co., Ltd. collaborated on a photovoltaic power project. Under the project, 35,000 square meters of photovoltaic devices were installed on the roofs of our factories. In 2020, these devices generated 3.06 million kWh of photovoltaic power, of which 79% was used by the park wh

276、ile the rest was fed into the State Grid. Environmental, Social and Governance Report 2020 59 Joyoungs energy consumption in 2020 Type Consumption Saving Purchased power (kWh) 12,681,336 / Clean power (kWh) 2,404,604 / Gasoline (liter) 60,408 Down 44.51% yoy Natural gas (cubic meter) 54,370 / Water

277、(ton) 180,298 Down 8.86% yoy A3 paper (piece) 5,500 Down 30.17% yoy A4 paper (piece) 1,121,500 Environmental, Social and Governance Report 2020 60 Reader Feedback FormReader Feedback Form Dear reader, Thank you very much for taking your time reading our Environmental, Social and Governance Report 20

278、20. We sincerely look forward to your comments on the report and our work. We will appreciate it if you may fill out this form and send it to us by mail or scan it and send us a copy by email. Thank you! Address: No.760, Yinhai Street, Xiasha Subdistrict, Qiantang New District, Hangzhou, Zhejiang Po

279、st Code: 310018 Email: 1. Whats your employers relationship with Joyoung? Government department or regulator Shareholder or investor Consumer Supplier Distributor Media or the public Local community Other (please specify) 2. Do you find all the information you need in the report? Yes So-so No 3. You

280、r rating of our Environmental, Social and Governance Report 2020: Readability (easy to understand; nice layout; good wording; easy to find the information you need) 3 point (good) 2 point (passable) 1 point (bad) Reliability (true and credible) 3 point (good) 2 point (passable) 1 point (bad) Informa

281、tion integrity (both positive and negative information are considered; containing the information you need) 3 point (good) 2 point (passable) 1 point (bad) 4. Can you easily find the information you need in the report? Yes So-so No 5. In addition to the content already disclosed in the report, what other information do you want to know? (please specify) Environmental, Social and Governance Report 2020 61 June 2021