CIMC Vehicles Released 2023 ESG Report Igniting New Quality Productive Forces through Green Development
(26 April 2024, Hong Kong) CIMC Vehicles (Group) Co., Ltd. (“CIMC Vehicles” or the “Group,” Stock code: 1839.HK/301039.SZ) released its 2023 Corporate Social Responsibility and Environmental, Social, and Governance Report (“ESG Report”).
As the world’s leader in sophisticated manufacturing of semi-trailers and specialty vehicles, a pioneer in high-quality development of road transport equipment in China, and an explorer and innovator in new energy specialty vehicles in China, its ESG Report showcased the Group's performance in green production, technological product innovation, investor relations, and social responsibility.
With its outstanding performance in sustainable development, CIMC Vehicles has garnered high recognition from authoritative social institutions. In 2023, the Group was honored with several prestigious awards in the ESG field, including the "Xinhua Credit Jinlan Cup" for ESG Best Practice Pioneer Case, the "Excellent Practice Case in Green and Low-carbon Development for Enterprises," and the "Pioneer 50 of China ESG Listed Companies in Greater Bay Area." In terms of external rating, Wind ESG, Menglang, and QuantData gave a rating of A, AA, and AA on ESG respectively. These honors not only affirm CIMC Vehicles' deep commitment to ESG principles and its dedication to innovative development but also reflect the expectations for its future commitment to sustainable development, the stimulation of new quality productive forces through green development, and the achievement of high-quality development.
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Deepening the construction of the "Light Tower Manufacturing Network" and continuing to practise low-carbon and green manufacturing.
Green water and mountains are as valuable as gold and silver. CIMC Vehicles actively practises low-carbon and green manufacturing and comprehensively upgrades the "Light Tower Manufacturing Network." It implemented the "Star-chained Manufacturing Network" and utilized centralized procurement (LTS) to achieve a transition from production across all categories to specialized "light tower" plant production (LTP), from passive inventory to active inventory management (LTL), from fixed-order production to customer proximity and modular product-driven sales (LoM), and from point sales to hierarchical management for precise sales (sales channels). Meanwhile, it applied automated, intelligent, and digital environmental protection and emission reduction facilities to various production processes, using high-end manufacturing lines and capacity to continuously stimulate new quality productive forces with the new achievements of green development, bringing new impetus to high-quality development.
The Group has made significant achievements in sustainable development. In 2023, Yangzhou Tonghua was upgraded from a provincial-level green factory to a national-level green factory, Shaanxi CIMC obtained provincial-level green factory certification, and Liangshan Dongyue obtained Jining City green factory certification. By the end of 2023, the Group had established 21 "Light Tower" plants domestically and internationally, including 5 national-level green factories, 2 provincial-level green factories, 1 municipal-level green factory, as well as 2 national-level green supply chain management enterprises and 3 national-level specialized and innovative "little giant" enterprises.
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Taking the example of Yangzhou Tonghua, a national-level green factory, in its development of green development and energy conservation and emission reduction, it emphasizes the use of clean energy. In 2023, it completed a 5.88 MWp photovoltaic power station with an annual electricity generation of approximately 6 million kWh. It also plans to construct a new 4.2 MWp photovoltaic power station, which is expected to generate approximately 4 million kWh of electricity annually. It is projected to reduce greenhouse gas emissions by approximately 7,035 tons of carbon dioxide equivalent per year. Additionally, it has implemented various water-saving measures, achieving an annual water-saving rate of 40%, and fully utilizes LED lighting with 100% energy-saving fixtures.
Promoting the research and development of innovative low-carbon products, continuously stimulating new quality productive forces
Green development serves as the foundation for high-quality development, and new quality productive forces itself is green productivity. CIMC Vehicles has always adhered to technological innovation, been actively researching and developing new energy and lightweight innovative low-carbon products. Steadily advancing on the path of sustainable development, it stimulates new quality productive forces through green development and promotes high-quality development in a solid manner.
In 2023, Champion Tanker Business Group initiated the pre-research and product development of integrated new energy tractors and trailers. The project team initially built the EV-RT platform architecture and completed the design, prototyping, and testing calibration of the prototype. It has achieved tractor-trailer communication, trailer auxiliary drive, and energy recovery functions, and has explored and made breakthroughs in the coordination control of tractor-trailer driving and braking forces.
Concurrently, the Group has carried out innovative product research and development in new energy lightweight urban dump trucks, pure electric mining trucks, and charging and battery-swapping concrete mixer trucks. It actively explores innovative models in the new energy and autonomous driving scenarios, seizing the development opportunities in the market for new energy dedicated vehicles. Additionally, the Group has introduced a series of refrigerated van truck bodies using domestically pioneered open foaming and color steel plate materials. It has also developed and launched the "Future Tank" tank semi-trailer product, further enhancing product competitiveness in areas such as environmental protection, energy saving, lightweighting, and cost reduction.
As of the end of 2023, CIMC Vehicles had over 600 R&D personnel globally and registered more than 1,400 patents. The Group actively participated in the formulation and revision of 35 national and industry standards for semi-trailers and specialty vehicles in China, showcasing its significant R&D technological advantages.
Strengthening the professional talent pool and empowering high-quality development have been key focuses of CIMC Vehicles. The Group recognizes that talent resources are crucial for enhancing competitiveness and achieving sustainable development. In 2023, the Group launched specialized development programs for technical and financial professionals. Through unified talent standards and a cultivation process of selection, training, performance, and evaluation, the Group continuously optimized the professional [talent management model] of "talent sharing and knowledge sharing." It established cross-organizational joint training project platforms and talent development platforms within the Group to promote comprehensive capacity enhancement for professionals and provide a sustainable and positive talent development cycle. Initiatives such as deepening and expanding university cooperation, cultivating programs for graduates, and the "MBA Boot Camp" were implemented. Furthermore, the "Advanced Leadership Development Program" has successfully concluded, aiming to cultivate high-level leadership talent to facilitate high-quality development.
CIMC Vehicles adheres to strict self-discipline in safeguarding shareholder interests and regulating corporate governance. It highly values communication with investors and has established a favorable image in the capital market. In 2023, the Investor Relations team of CIMC Vehicles conducted nearly 250 performance roadshows, covering nearly a thousand people. By combining offline visits and online roadshows, the Group maintained high-frequency interactions with the capital market and received multiple awards. For example, CIMC Vehicles was selected as a constituent stock of the SZSE Component Index, won the "Excellent A+H IR Team" award in the "Baron China Best Practices 100" for Investor Relations, and was recognized as the Best Practice Case of Listed Companies' Board Office by the China Association for Public Companies in 2023. Additionally, it received an A-level rating in the 2022-2023 Information Disclosure Evaluation for Shenzhen Stock Exchange's GEM-listed companies.
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As a leading enterprise in the semi-trailer industry, CIMC Vehicles always integrates the ESG concept into its strategic blueprint and daily operations. It actively promotes the transformation of the Group towards green development, accelerates the development of new quality productive forces, and leads the industry in achieving sustainable and high-quality development.