I. Preface

I. Preface

　　Hengyang Shantai Chemical Co., Ltd., as a socially responsible enterprise, not only continues to grow and thrive but also remains ever mindful of the social responsibilities that come with its corporate mission. We are committed to achieving a win-win situation for society, employees, customers, and investors, thereby promoting coordinated, harmonious, and sustainable development between the company and the broader community. An outstanding enterprise cannot thrive without the support of exceptional talent. Thus, our company has consistently placed talent development and respect for talent at the forefront of our corporate growth strategy, striving to create a harmonious and dynamic environment conducive to nurturing top-notch professionals. We actively embrace the talent philosophy of "people-oriented and valuing merit above all else," providing a platform where talents of all kinds can fully showcase their abilities and share in the fruits of the company’s growth—thus truly establishing a virtuous cycle of mutual development between talent and the enterprise. At the same time, we enthusiastically promote the philosophy of "working happily and living joyfully." As our company rapidly advances, we vigorously encourage a mindset of happiness and contentment, fostering a positive, healthy, and harmonious work environment that continuously strengthens corporate harmony and contributes meaningfully to societal harmony. Through various charitable activities, we actively engage in public service and assume our social responsibilities, reinforcing our commitment to people, the environment, and the wider community and nation. With a constant heart of gratitude, we continually participate in diverse charitable endeavors, wholeheartedly building a happy enterprise that is deeply rooted in social responsibility.

　　 II. Company Profile

　 　(1) Basic Information

　　Hengyang Shantai Chemical Co., Ltd. is engaged in the research and development, production, and sales of polyester resins specifically designed for powder coatings. The company is a member of the Coating and Painting Professional Committee of the China Chemical Society. The company’s energy-saving, environmentally friendly, low-temperature curing polyester resin for powder coatings is its flagship product, featuring independent intellectual property rights. This product effectively addresses the industry challenge of achieving both excellent low-temperature curing performance and superior protective properties on the surfaces of ultra-large and heavy-duty workpieces at a low curing temperature of 130°C. It fills a critical gap in China’s coating industry—the lack of a viable low-temperature curing process for such large and heavy workpieces—thus enabling China to reach an internationally leading level in surface coating technologies for rail transit facilities and construction machinery. The “Hengtai” brand products have been recognized as famous brands in Hengyang City and have obtained ISO9001 quality system certification. The company holds 8 invention patents and 12 utility model patents. It has established cooperative relationships with institutions such as Nanhua University for industry-academia-research collaboration. The company has received the third prize in the Hengyang City SME Innovation and Entrepreneurship Competition, the first prize in the 5th Hengyang City Innovation and Entrepreneurship Competition in 2022, an Excellence Award in the 2022 Hunan Province Innovation and Entrepreneurship Competition, and the Excellent Enterprise Award in the 11th China Innovation and Entrepreneurship Competition. The company has been designated as the Hengyang City Engineering Technology Research Center and a provincial-level enterprise technology center. It has also been certified as a Hunan Province New Materials Enterprise, a Hunan Province Specialized, Refined, and Novel “Little Giant” Enterprise, a National High-Tech Enterprise, and a National Specialized, Refined, and Novel “Little Giant” Enterprise. In 2021, the company was awarded the Tax Contribution Award. From 2021 to 2024, its annual product sales revenue consistently exceeded 100 million yuan. In 2022, Shantai Chemical successfully listed on the “Specialized, Refined, and Novel” board of the Hunan Equity Exchange, with stock code 000085HN. The company was honored by the Hengyang County People’s Government as a “Enterprise with Outstanding Contributions.” In March 2023, it received the “Innovation Cultivation Award” from the Xidu High-Tech Industrial Park. In March 2024, the company was awarded the “Science and Technology Innovation Award,” the “Enterprise Cultivation Award,” and the “Tax Contribution Award” by the Xidu High-Tech Industrial Park. In May 2024, it was recognized by the Hengyang County Bureau of Science and Technology and Information Industry as the winner of the first prize in the 2024 Science and Technology Activity Week Live Video Contest. In October 2024, the company was awarded the title of “Hunan Province Green Factory” by the Hunan Provincial Department of Industry and Information Technology. In March 2025, it was honored by the Xidu High-Tech Industrial Park with the titles of “Advanced Grassroots Party Organization,” “Enterprise Output Value Doubling Award,” “Per-Acre Tax Contribution Award,” “Patent Authorization Award,” and “Green Manufacturing Award.” The company is a private enterprise, and its core management team comes from state-owned enterprises and educational institutions. Currently, the company has 29 regular employees, including 8 with bachelor’s degrees or higher.

　 　(2) Company Positioning

　　Values: Responsibility, Innovation, Pragmatism, and Getting Things Done.

　　Vision: To become a world-class polyester resin enterprise.

　　Mission: To serve powder coating companies and meet customers’ demand for products of various grades and those offering high cost performance.

　 　(3) Responsibility System

　　Hengyang Shantai Chemical has established a top-down social responsibility management system, adopting a management structure under which the general manager is responsible for operations under the leadership of the company’s board of directors. The company has set up the following departments: Production Department, Procurement Department, Sales Department, Technical Quality Department, Human Resources and Administration Department, and Finance Department. Each department is responsible for the day-to-day implementation of its respective tasks.

III. Uphold safe development

　　Shantai Chemical has always adhered to the principle that “safety comes first and life is paramount.” In terms of safe production, the company has consistently maintained a “zero-tolerance mindset,” continuously improving its safety management system to meet the industry’s highest standards. It has also been steadily enhancing the safety leadership capabilities of its management personnel, strengthening its risk-control framework, and establishing the most stringent and rigorous safety production management and accountability systems, thereby building an inherently safe enterprise. Throughout 2024, no safety incidents occurred.

　　 1. Status of achieving the annual safety objectives

Overall achievement of safety production goals:

Safety Production Goals	An actual accident occurred.	Target achievement status
General accidents ≤ 0 incidents	0	Complete
Zero youth injury incidents.	0	Complete
Minor injury accidents ≤ 2 incidents	0	Complete
Annual number of injured people ≤ 2.	0	Complete

The signing rate of the 2024 annual safety production responsibility agreements reached 100%. There were zero incidents involving leaks of hazardous chemicals. Fire safety performance met the required standards, with zero fires and explosions. There were zero occupational disease incidents. The completion rate for the safety training program reached 100% (including Level 3 safety education and training for new employees). The completion rate for addressing potential hazards was 100%, and the completion rate for emergency drills was also 100%.

　 　2. Management of safety production rules and regulations and operating procedures

　　In 2024, a total of four new management systems were introduced, including the "Management System for Assessment and Reward/Punishment of Work Safety," the "Reward System for Reporting Safety Hazards," the "Safety Management System for Easily Explosive Hazardous Chemicals," and the "Management System for Regular Evaluation of Emergency Response Plans." The company’s “All-Staff Responsibility System for Work Safety” was revised and promulgated, and the “All-Staff Work Safety Target Responsibility Letter” was formulated and implemented. In addition, the company’s overall work safety management system was comprehensively revised, adding up to a total of 50 articles. As of now, the company currently has a total of 60 work safety management systems in effect. In 2024, a total of 13 environmental protection management systems were compiled and organized by the company. All personnel engaged in special operations are duly certified and working in compliance with regulations.

　 　3. Management of Major Hazard Sources

　　(1) Conduct daily safety risk commitment notifications and routine inspections for potential safety hazards;

　　(2) Implement the responsibility system for key hazard sources, and promote the fulfillment of duties by operation supervisors, technical supervisors, and primary responsible persons.

　　(3) Organize two special emergency drills for major hazard sources;

　　(4) Organize and carry out monthly inspections to identify safety hazards associated with major hazard sources, ensure that these hazards are promptly rectified, and, in accordance with notices issued by provincial and ministerial authorities, conduct two nationwide special supervision and inspection campaigns targeting major hazard sources.

　　 III. Uphold green development

　　Hengyang Shantai Chemical actively puts into practice the concept of ecological civilization and adheres to the environmental protection philosophy that "lucid waters and lush mountains are invaluable assets." The company continuously invests in the construction of environmental protection facilities and implements comprehensive environmental management measures, thus forging a path of sustainable development characterized by high technological content, low resource consumption, and environmental friendliness. Without increasing production capacity, the company is accelerating the implementation of technological transformation projects aimed at achieving safe, green, and high-quality development.

　　1. Status of achieving environmental protection goals

Environmental Protection Work Objectives	Actual situation	Target achievement status
The operational integrity rate of environmental protection facilities is 100%.	0	Complete
The operational rate of environmental protection facilities is 100%.	0	Complete
Number of environmental incidents: 0	0	Complete
Environmental complaints ≤ 3 times	0	Complete
Passed environmental testing	Qualified	Complete

2. Operation status of environmental protection equipment and facilities

　　The company’s environmental protection equipment and facilities cover exhaust gas treatment, wastewater treatment, and more. All exhaust gas and wastewater treatment facilities and equipment are operating normally.

　 　3. Systems and Occupational Health Management

　　This year, we completed the annual review of our quality, environmental, and occupational health management systems. In 2023, all newly hired employees underwent standard pre-employment medical examinations, and in-service employees completed their scheduled occupational health checkups as planned. The results of these checkups were normal, with no cases of occupational diseases or any potential signs of such conditions. Additionally, in December, we finished the annual assessment and evaluation of hazardous factors associated with occupational diseases and obtained the corresponding evaluation report.

　　 4. Continue R&D and develop environmentally friendly products.

　　The company has currently developed three major product lines: indoor hybrid polyester, outdoor TGIC-cured polyester, and outdoor HAA-cured polyester. Additionally, tailored to the specific characteristics of various application fields and individual customer requirements, the company has created nearly forty specialized polyester resins for powder coatings, including varieties designed for high weather resistance, low-temperature curing, high-temperature resistance, high decorative appeal, chemical matte finishes, physical single- and two-component matte finishes, thermal transfer, and specialized applications for construction machinery components and high-speed railway vehicle parts. As a green, environmentally friendly industrial coating category, powder coatings contain no organic solvents in their formulation and boast features such as zero pollution, zero VOC emissions, high recyclability, simple coating processes, and a high degree of automation. They are truly eco-friendly, green coatings that align with the principles of sustainable development and low-carbon initiatives. All of the company’s products are environmentally friendly and in line with national industrial development trends. The company continuously develops new products in response to market demands; among them, the polyester resin SA-1505 was awarded the “Hunan Provincial-Level New Industrial Product” for 2022.

Company Products and Images

　　 V. Adhere to a people-centered approach.

　　Shantai Chemical has always adhered to a people-oriented approach, striving to enhance employees’ sense of fulfillment, happiness, and security, and making every effort to promote the development of a warm and caring enterprise that provides a positive working environment for its employees.

　　The company strictly complies with the Labor Law and the Labor Contract Law, implementing labor employment practices in a standardized manner. It signs labor contracts with employees through equal consultation and negotiation, rigorously enforces working hour regulations as well as rest and vacation policies, and adheres to the system of paid statutory holidays and paid annual leave. The company continuously negotiates and adjusts wages, ensuring that employees’ wage levels steadily rise. As the company’s business continues to grow, the number of job positions is steadily increasing. The company offers employees compensation and benefits that exceed industry standards, placing the right people in the right positions to maximize their creative potential. The company has established a satisfaction assessment system, conducting annual monitoring of employee satisfaction. Issues frequently reported by employees are addressed and improved through refined mechanisms. Over the past three years, employee satisfaction has shown an upward trend. The company strictly adheres to the requirements of the Labor Law, achieving a 100% rate of signed labor contracts, and no company-level labor disputes occurred in 2024.

　　The company adheres to the talent-development philosophy of “valuing talent and valuing knowledge,” and strives to build a work, study, and living environment imbued with the distinctive culture of Shantai Chemical. We champion a people-oriented approach and have established a sound compensation system based on job performance. We intensify efforts to attract, reserve, and nurture key core talents, providing employees with ample opportunities and platforms for growth, fostering a competitive yet supportive environment that enables both individual employee development and the company’s overall growth. Guided by the principle of “people first,” the company aims to “cultivate first-class employees through a first-class company, and let first-class employees create a first-class company.” To this end, we continuously enhance employees’ ideological education and professional skills. The company has organized more than twenty internal training sessions, significantly improving employees’ technical abilities and professional qualities.

　　The company cares about the physical and mental well-being of every employee and fosters a relaxed and enjoyable work environment. We create a relaxed and pleasant work environment for our employees.

 

Training photos

 

Festival activities

 

Badminton activity

Six, Uphold Giving Back to Society

　　The company actively participates in social welfare initiatives, using concrete actions to enhance employee capabilities internally and fulfill its social responsibilities externally. For a long time, Shantai Chemical has firmly responded to the nation’s strategic initiatives, supported rural revitalization, and continuously fulfilled its social obligations.

　　On January 8, 2024, Li Lie-dong, Chairman of Hengyang Shantai Chemical Co., Ltd., along with several representatives from his company, visited Zhenxing Village in Xidu Town, Hengyang County. They firmly put into practice the CPC Central Committee’s important decision to “Boost Ten Thousand Villages through Ten Thousand Enterprises,” bringing warmth to local impoverished residents and presenting a stone stele inscribed with “Harmonious and Prosperous Zhenxing” to the village’s cultural square.

Bring warmth to impoverished people.

Group photo of the Revitalizing Village Public Welfare Project