China National Machinery Industry Corporation
Social Responsibility Report
Work Together Win Together
Time Scope of the Report
This Report is the second Social Responsibility Report released by China National Machinery Industry Corporation (“SINOMACH”) and covers the period from January 1, 2010 to December 31, 2011, while some of its contents may be traced back to 2006 where appropriate.
Organizational Scope of the Report
This Report covers the headquarters and subordinate enterprises of SINOMACH (see “About Us” for organization structure).
Explanation of the Report Data
All the data in the Report come from SINOMACH’s official documents and internal statistics and have been audited by relevant departments.
Basis of the Report Preparation
This report has been prepared according to the Guiding Opinions on Performance of Social Responsibilities by State-Owned Enterprises under the Central Government released by the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, the Sustainability Reporting Guidelines (Version 3.0) of the Global Reporting Initiatives (GRI) and ISO26000 Guidance on Social Responsibility 2010.
Derivative Reading
For SINOMACH’s Social Responsibility Report 2011 (network edition), please visit its website: http://www.sinomach.com.cn
Orientation of Future Improvement
To improve SINOMACH’s social responsibility management system and upgrade SINOMACH’s social responsibil ity management performance.
Chairman’s Message
Key figures
Care and Support by Central Leadership
About Us
Corporate Values
Corporate Strategy
3
4
6
10
20
22
118
120
123
124
125
Responsibility Management - Continuously Enhance Soft Power
Economic Development - Successfully Re-build a New SINOMACH
Independent Innovation - Build a Technology-Oriented Enterprise
Employee Development – Work, Share and Grow Together
Work Safety - Stay Vigilant in Peace Time in Consolidating the Foundation
Environmental Protection and Conservation - Environment-Friendly and Low Carbon Practices to Create Our Future
Corporate Citizenship - Work Together to Promote Harmony
24
34
54
64
76
86
100
Prospects for the Future
Index of GRI Indicators
The UN Global Compact's ten principles
Rating Report
Feedback Form
2 China National Machinery Industry Corporation
董董董
任任任
32011 Social Responsibility Report
The year 2011 is the opening year of the “12th Five-Year Plan” and also a year for SINOMACH to dedicatedly seek development
and overcome difficulties to compile splendid chapters in our history. According to the requirements of the CPC Central Committee
and the SASAC of the State Council for the development of central enterprises, SINOMACH has adhered to the conception of
inaugurating corporate development, accelerated the transformation of its economic development mode and committed itself to
active promotion of organic growth.
We have always committed ourselves to following scientific development and to forging a valuable SINOMACH. Creating greater business value and social value, which is considered as its key pursuit, SINOMACH has focused on the quality and
efficiency of growth, constantly pushed forward changes in the modes of management, stood on the two industries of equipment
manufacturing and modern manufacturing services and become strong and achieved excellence in the three principal operations
of R&D and manufacturing of machinery equipment, project contracting, and trade and services. In 2011, SINOMACH recorded
RMB1910 billion of Operating revenue, RMB78billion of total profits and a total foreign trade volume of RMB110billion, ranking
No.435 among Fortune Global 500. For many successive years, SINOMACH has been ranking in first place on the list of Top 100
Enterprises in the Chinese machinery industry and assessed by the SASAC as Grade A in performance among central enterprises.
We have always committed ourselves to innovation-oriented growth and building the brand of innovative SINOMACH. SINOMACH has firmly established the concept of innovation, accelerated the perfection of the system of scientific and technological
innovation, laid emphasis on fostering a team of science and technology talents and actively promoted the formulation of the
industrial standards. SINOMACH has constantly increased its capability of innovation through science and technology, enhanced
management innovation, continued to identify and solve new problems arising during its development based on the perspective and
act of innovative ideas, innovative learning and innovative working to fully promote its management level and build an “innovation-
oriented” enterprise. .
We have always committed ourselves to practicing environmental protection and conservation to strive to create an environment-friendly SINOMACH. In strict accordance with the national requirements for energy efficiency and emissions
reduction, SINOMACH has insisted on the sustainable development of environmental protection, energy-saving and high
efficiency, stressed the awareness of green concept, strived to develop cyclic economy, perfected an Environmental Protection
and Conservation management system, pushed ahead energy efficiency and emissions reduction and actively carried out clean
production, and enhanced comprehensive utilization of resources to build a “resource-saving and environment-friendly” enterprise.
We have always committed ourselves to the accomplishment of working together to create a responsible SINOMACH. Following the core values of “working together and winning together”, SINOMACH has been actively involved in community
building, devoted to social welfare undertakings and strengthening communications with stakeholders to achieve the sustainable
development of enterprises, stakeholders and society and environment.
We have always committed ourselves to following the concept of putting people first to foster a happy SINOMACH. SINOMACH has conscientiously practiced the concept of “business development not only by the employees, but also for the
employees”, followed the correct value orientation, insisted on its development by its people and for its people, taken effective
measures to secure employees’ rights and interests and promote employees’ development, laid emphasis on care for employees
and fulfilled the coordinated growth of enterprise and employees.
Passing through spring blooms and autumn harvests, we have made our achievements through concerted efforts. In 2010,
SINOMACH released its first Social Responsibility Report in which it fully disclosed to the stakeholders its actions and achievements
in performing responsibility since its incorporation. On that basis, SINOMACH prepared the Strategic Plan for Social Responsibility
of China National Machinery Industry Corporation, which pointed the way to push ahead the future endeavors for social
responsibility and manifested the determination of SINOMACH to strengthen social responsibility management and actively bear
social responsibility. In the future, SINOMACH will, according to the requirements of the SASAC of the State Council, fully perform
social responsibility, continue to strengthen the communications and exchanges with stakeholders and make great efforts to attain
the goal of “becoming the world’s top enterprise with international competitiveness”.
Message from Chairman
4 China National Machinery Industry Corporation
Key Figures
Operating revenue
Unit: RMB100 million
Unit: RMB100 million
Pre-tax ProfitsEquities Attributable to Equity Holders of the Parent Company
Total Profits
Total Assets Unit: RMB100 million
Ratio of Retained and Increased Value of State-owned Assets
EVA
Unit: Ton of Standard Coal/RMB10,000
Comprehensive Energy Consumption for RMB10,000 Operating Revenue
Unit: Ton of Standard Coal/RMB10,000
Comprehensive Energy Consumption for RMB10,000 Output Value
Unit: Ton
SO2 Emissions Unit: Ton
COD Emissions
Unit: %
610.6
805.1980.2
2007 2008 2009 2010 2011
683.0
974.21035.0
1522.2
1910
1313.6
1665
22.2
2009 2010 2011
38.5
43.7124.9
125.9
116.3
120.2
2006 2007 2008 2009 2010
120.0
20112006 2007 2008 2009 2010
14.332.8
38.7 48.4 66.778
164.1
218.4235.0
295.7
52.2
93.6
129.8
183.6
53.3 56.974.8
97.5
2008 2009 2010 2011
0.0074
0.0100
0.0080
0.0077
2008 2009 2010 2011
0.1133
0.1009 0.0829
0.0901
2011 2009 2010 2011
1344.2 1257.91368.9
2009
554.9 459.8429.7
2010
52011 Social Responsibility Report
A Total of In-Service Employees in 2011
Total Safety Accidents Accident Death Rate Per Thousand EmployeesUnit: Occurrence
83940
Unit: ‰
Investment in training
Labor Contracts Singed with Employees for Six Successive Years
100%
Unit: RMB100 million79109
83940
40785
70776 7173975703
2006 2007 2009 2010 20112008
50 4779
86
74
48
2006 2007 2009 2010 20112008
0.0236
0.01180.0175
0
0.0114
2007 2008 2010 20112009
Total Donations
Unit: RMB10,000Unit: RMB10,000
Investment in Work safety20892.2
15223.01922.114820.0
2565.0
2788.0
340.6312.6
10849.5
5982.35208.1
2006 2007 2009 201020082006 2007 2009 2010 20112008
5876
1658
2400
32783407
5044
2006 2007 2009 2010 20112008
6 China National Machinery Industry Corporation
Care and Support by Central Leadership
General Secretary Hu Jintao Inspected China YTO Group Corporation
On July 10, 2010, Hu J ingtao, General
Secretary of the CPC Central Committee and
Chinese President, inspected China YTO Group
Corporation subordinate to SINOMACH.
“I hope all of you will vigorously carry
forward glorious traditions, continue to
deepen enterprise reform, vigorously
enhance the capability of Independent
innovation, constantly adapt to new
market changes and strive to create the
new splendor of YTO.” - Hu Jintao
General Secretary Hu Jintao Attended the Signing Ceremony for the Three-Party Cooperation Agreement on the Construction of the Gas-Fired Power Plant Project in Scholkino of Crimea, Ukraine
On September 2, 2010, witnessed by Hu
Jingtao, General Secretary of the CPC Central
Committee and Chinese President, and by
President Yanukovich of Ukraine, Chairman
Ren Hongbin on behalf of SINOMACH signed
the Three-Party Cooperation Agreement on
the Construction of the Gas-Fired Power Plant
Project in Scholkino of Crimea, Ukraine with
the Ministry of Fuel and Energy of Ukraine and
the Export-Import Bank of China.
72011 Social Responsibility Report
Premier Wen Jiabao Drove a “Dong Fang Hong” to Harvest and Plant during his inspection of the Summer Agricultural Work in Henan Province
On June 10, 2010, during his inspection of the
summer agricultural production and agricultural
and rural work in Henan Province, Premier Wen
Jiabao went to the harvesting site in a high-yield
wheat demonstration area and personally drove
a “Dong Fang Hong” tractor for harvesting and
sowing.
Chairman Wu Bangguo Witnessed the Cooperation Framework Agreement on Privatization of Byelorussian Enterprises
On September 19, 2011, witnessed by Wu
Bangguo, Chairman of the National People’s
Congress Standing Committee, General Manager
Xu Jian of SINOMACH signed the cooperation
framework agreement on privatization of
Byelorussian enterprises with the Byelorussian
Ministry of Economy.
8 China National Machinery Industry Corporation
Jia Qinglin and Zeng Peiyan Personally Made a Special Trip to SINOMACH to Visit Veteran Leaders of Machinery Industry
On February 3, 2010, Jia Qinglin, Member of the
Standing Committee of the Political Bureau of the
CPC Central Committee and Chairman of the Chinese
People’s Political Consultative Conference, and Zeng
Peiyan, former Vice Premier of the State Council,
personally made a special trip to SINOMACH to visit
the veteran leaders of machinery industry who were
attending the New Year’s party and expressed great
expectations for the development of SINOMACH.
V i c e P r e s i d e n t X i J i n p i n g Talked With Representatives of SINOMACH and other Chinese-Funded Enterprises in Angola
On November 20, 2010, Vice President Xi Jinping
had discussions in Luanda with the representatives
of Angola-based Chinese-funded enterprises during
his visit to the African country. Board Chairman Ren
Hongbin attended and spoke at the discussions.
Premier Wen Jiabao and Prime Minister Hun Sen Witnessed the Signing Ceremony for CHMC Cambodian Rural Power Grid Stage I Project
On December 13, 2010, wi tnessed by
Chinese Premier Wen Jiabao and Prime
Min i s te r Hun Sen o f the K ingdom o f
C a m b o d i a , C h i n a H e a v y M a c h i n e r y
Corporation subordinate to SINOMACH
entered into the “EPC Contract on Rural
Power Grid Stage I Project” with Cambodia
National Electric Power Corporation.
92011 Social Responsibility Report
Russian Vice President Xi Jinping Attended the Signing Ceremony of CNEEC for the EPC Contract on Russian KSG Iron Mine
On March 23, 2010, China National Electric Engineering Co., Ltd.
subordinate to SINOMACH entered into the financing and EPC
cooperation agreement for the construction and development of
the Kimkan, Sutara and Garinskoye (KSG) Iron Ore Mining Project
in the Far East of Russia with the Industrial and Commercial Bank
of China and ARICOM of Russia.
Vice President Xi Jinping Attended the Signing Ceremony for a Project in Laos
On June 16, 2010, jointly witnessed by Vice President Xi Jinping
and Laos Vice President Bounnhang Vorachith, China CAMC
Engineering Co., Ltd. subordinate to SINOMACH signed the
Business Contract for the Laos Bailey Bridge Project.
Vice Premier Zhang Dejiang Made a Visit to SINOMACH for Inspection and Direction
On June 30, 2010, accompanied by Xiao Yaqing, Deputy Secretary-
General of the State Council, and Li Wei, Deputy Director of the
SASAC of the State Council, Zhang Dejiang, Vice Premier of the
State Council, arrived at SINOMACH for inspection. He affirmed
the outstanding achievements made by SINOMACH in its rapid
development in recent years and hoped that SINOMACH could
seize opportunities in the global financial crisis and quicken the
pace of “going global” to accomplish more on the international
market.
10 China National Machinery Industry Corporation
112011 Social Responsibility Report
About Us
Profile
Established in January 1997, China National Machinery Industry Corporation (SINOMACH) is a
large State-owned enterprise approved by the State Council and directly administered by the
State-owned Assets Supervision and Administration Commission (SASAC). As a large state-
owned central enterprise group with a broad business scope, outstanding predominance in
industrial chains and strong R&D capabilities in the Chinese machinery industry, SINOMACH has
shaped the three business sectors of R&D and manufacturing of machinery equipment, project
contracting, and trade and services. Its services cover the majority of key national economic
sectors and it has expanded its business operations to over 170 countries and regions in five
continents of the world.By the end of 2011, SINOMACH owned 43 wholly-owned and holding
subsidiaries including 7 listed companies and more than 130 overseas service branches, with
total assets amounting to RMB166.5 billion. In 2011, SINOMACH was first placed among the
“Global 500”, ranking No. 435. It has remained No.1 among Top 100 Enterprises in the Chinese
machinery industry and has been rated as Grade A in the performance assessment of central
enterprises by the SASAC for many successive years.
For years, SINOMACH has been following the core value of “Working Together, Winning
Together”, taking it as its responsibility to guide the orientation of the machinery industry and
establish the development path for the machinery industry, actively conducting the construction
of a “harmony” culture and committing itself to fusing the philosophy of social responsibility in
the corporate management and operation to enhance the capability of sustainable development
and promote the harmonious development of enterprises and society.
SINOMACH will focus on its two core businesses of equipment manufacturing and modern
manufacturing services to foster an integrated world-class equipment industrial group with
international competitiveness and become the leader in the Chinese machinery industry and a
creator of social value.
About Us
12 China National Machinery Industry Corporation
I n J a n u a r y 1 9 9 7 , u p o n
the consent o f the State
Council and the approval of
the former State Economic
a n d Tr a d e C o m m i s s i o n ,
SINOMACH was established
with 29 subsidiaries and was
subordinate to the former
Ministry of Machinery Industry.
Course of Development
1997
1998 1999
2000 2003
2004
I n M a r c h 1 9 9 8 , a f t e r t h e
restructuring of governmental
organizat ions of the State
C o u n c i l , S I N O M A C H w a s
subordinate to the former State
Bureau of Machinery Industry.
In May 1999, a management system reform was
carried out for 242 scientific research institutions
subordinate to 10 state bureaus and institutes
administered by the former State Economic and Trade
Commission, and 25 scientific research institutes
subordinate to the former State Bureau of Machinery
Industry joined SINOMACH.
In June 1999, upon the approval of the former
State Economic and Trade Commission, Xinlian
Group joined SINOMACH and consolidated China
Agricultural and Husbandry Machinery Corporation
subordinate to SINOMACH into the China Harvester
Machinery Corporation.
In September 1999, Ch ina Geo-Equipment
Corporation, subordinate to the former Ministry of
Land Resources, joined SINOMACH.
In October 1999, SINOMACH was listed among the
enterprises administered by the Central Government
and became one of the 520 key State-owned
enterprises.
In October 2000, according
to the national requirements
for the system reform of the
central entities of engineering
reconnaissance and des ign,
8 reconnaissance and design
institutes subordinate to the
former State Bureau of Machinery
Industry joined SINOMACH.
In November 2003, upon the
a p p r o v a l o f t h e S A S A C , 6
en te rp r i s e s i n c lud ing Ch ina
Automobile Industry Import &
Export Corporation and CAIC
Foreign Economic and Technical
Cooperation Company subordinate
to the former China Automobile
Industry Corporation (CAIC) were
transferred to SINOMACH.
In April and July 2004, upon the approval
of the SASAC, China Automobile Trading
Center and China Machinery International
Engineering Design & Research Institute
successively entered SINOMACH.
In 2004, Tianj in Research Inst i tute of
Construction Machinery acquired “China
Development”, which became the first publicly
listed company of SINOMACH.
132011 Social Responsibility Report
2005
2006 2007
2008
2009
2011
In May 2005, Luoyang Bear ing Sc ience &
Technology Co., Ltd. was successfully listed on the
Shenzhen Stock Exchange.
In September 8, 2005, as approved by the SASAC
of the State Council and ratified by the State
Administration for Industry and Commerce, the full
name of SINOMACH was officially changed from
“China National Machinery Equipment (Group)
Company” to “China National Machinery Industry
Group Company”.
In November and December
2007, upon the approval of
the State Council, China Foma
(Group) Co., Ltd. and China
Ocean Aviation Group Inc.
successively joined SINOMACH.
In June 2006, China CAMC
Engineering Co., Ltd. was
successfully listed on the
Shenzhen Stock Exchange.
In February 2008, YTO Group Corporation
entered the Group upon the approval of
the SASAC and, in July, Changsha Qidian
Automotive Products Co., Ltd. entered
SINOMACH.
On June 1, 2009, approved by the State-owned Assets
Supervision and Administration Commission of the
State Council and ratified by the State Administration
for Industry and Commerce, China Nat ional
Machinery Industry Group Company was renamed
China National Machinery Industry Corporation.
In July 2009, upon the approval of the State Council,
Chinese Academy of Agricultural Mechanization
Sciences entered SINOMACH.
In June 2011, Lanpec
Technologies Limited was
successfully listed on the
Shanghai Stock Exchange.
About Us
14 China National Machinery Industry Corporation
Ren Hongbin Chairman and Deputy Secretary
of “CPC”
Xu Niansha Secretary of CPC and Vice Chairman
Xu Jian Director and President
Chen Zhi Vice Chairman
Li Zhanyong Deputy Secretary of “CPC” and Secretary
of the Discipline Inspection Committee
Luo Jiamang Chief Financial Officer
Xie Biao Vice president
Liu Dagong Vice president
Ding Hongxiang Deputy General Manager
Liu Bing Secretary of the Board of Directors
Wang Shuqing President Assistant
Zhao Bing President Assistant
Wang Qiang Chief Legal Adviser
Su Weike President Assistant
Liu Jingzhen President Assistant
Liu Zuqing President Assistant
Wei Feng Employee Director and Chairman
of the Trade Union
Ren Hongbin Chairman and Deputy Secretary
of “CPC”
Xu Niansha Secretary of CPC and Vice Chairman
Xu Jian Director and President
Chen Zhi Vice Chairman
Han Xizheng Outside Director
Corporate Governance
Management Team
Board of Directors
As a solely State-owned company registered according the Company Law, SINOMACH has no shareholders’ meeting and the State-owned Assets
Supervision and Administration Commission of the State Council performs the contributor’s functions according to law upon the authorization of the
State Council.
SINOMACH has a board of directors, which is the company’s decision-making body and decides on all the major matters of the company within the
scope of its functions and powers as stipulated in the Articles of Association. The board of directors is responsible to the company and the contributor.
The board of directors shall exercise its decision-making power by holding the board of directors meetings and adopting resolutions thereof.
The board of directors of SINOMACH has set up a prudent and scientific authorization mechanism that takes into consideration both balance and
efficiency. On the precondition of ensuring compliance with laws and regulations, it has granted appropriate authorization to its standing committee,
chairman and general manager. The Articles of Association of SINOMACH and the governance documents of the board of directors including the
Working Rules of the Board of Directors have specifically stipulated the division of functions and powers of the board of directors and the managers
and specified their rights and obligations.
Taking advantage of the opportunity for experimentation with the board of directors, SINOMACH will constantly optimize the setup of the board,
actively perfect its institutional construction, strengthen its day-to-day operation and management, reinforce risk management, make the decisions of
the board more scientifically rational and continuously upgrade the governance effect of the board.
Liu Gaozhuo Outside Director
An Dewu Outside Director
Lian Weizeng Outside Director
Zhang Lailiang Outside Director
Wei Feng Employee Director and Chairman
of the Trade Union
Liu Bing Secretary of the Board of Directors
152011 Social Responsibility Report
Wholly-owned and Holding Enterprises
Board of Directors
General Manager
Deputy General Manager
Secretary of the Board of Directors
Office of the Board of Directors
Comprehensive M
anagement Departm
ent
Strategic Planning Department (Corporate
Culture Department)
Hum
an Resources Departm
ent (Organization
Department of the Party Com
mittee)
Assets and Financial Department
Reform and Developm
ent Department
Investment M
anagement Departm
ent
Auditing Department
Legal Affairs Department
Party Comm
ittee’s Working Departm
ent (Trade U
nion Office)
Discipline Inspection Office (Supervision O
ffice)
Business Development Departm
ent (Production Safety Departm
ent)
Sci-Tech Development Departm
ent (M
ilitary Industry Managem
ent Office)
Central Research Institute
Chief Accountant
DeputySecretary
Deputy Secretary and Discipline Inspection Secretary
Secretary of Party Committee
Special Committee of the Board of Directors
Wholly-Owned and Holding Enterprises
State-owned Assets Supervision and Administration Commission of the State Council (SASAC)
About Us
16 China National Machinery Industry Corporation
No. Name of Entity Chinese Abbreviation
English Abbreviation
1 China National Machinery & Equipment I/E Corporation ZSJT CMEC
2 China CAMC Engineering Co., Ltd ZGGJ CAMCE
3 China Foma Machinery (Group) Co., Ltd. ZGFM CFMC
4 China Ocean Aviation Group Inc. ZHH COAGI
5 China Geo-Equipment Corporation ZZZGS CGE
6 China Machinery Industry Construction Group Inc. ZJJS SINOCONST
7 China National Machine Tool Corporation JCZGS CNMTC
8 China National Heavy Machinery Co., Ltd ZGZJ CHMC
9 China National Electric Engineering Co., Ltd ZGDG CNEEC
10 China National General Machinery Engineering Corporation ZTGS GME
11 China National Automation Control System Corp. ZGZK CACS
12 China National Complete Engineering Co., Ltd ZGCT CMCEC
13 SINOMACH Finance Co., Ltd GJCW SINOMF
14 SINOMACH Automobile Corp., Ltd GJQC Sinomach Auto
15 China National Automotive Industry Import & Export Corp. ZQJCK CAIEC
16 China National Automotive Industry International Corp. ZQGJ CNAICO
17 SINOMACH Capital Management Corporation GJZC Sino-Capital
18 Chinese Academy of Agricultural Mechanization Sciences ZGNJY CAAMS
19 China IPPR International Engineering Corporation ZGZY IPPR
20 Beijing Materials Handling Research Institute BQY BMHRI
21 YTO Group Corporation ZGYT YTO
22 SUMEC Group Corporation SMDJT SUMEC
By the end of 2011, SINOMACH owned 43 wholly-owned and holding subsidiaries.Wholly-owned and
Holding Enterprises
172011 Social Responsibility Report
No. Name of Entity Chinese Abbreviation
English Abbreviation
23 China Perfect Machinery Industry Corp., Ltd. ZGPF CPMIC
24 China SINOMACH Heavy Industry Corporation GJZG SINOMACH-HI
25 China Abrasives Import & Export Corporation ZMGS CAEC
26 China United Engineering Corporation ZGLH CUC
27 China Automotive Industry Engineering Corporation ZQGC AE
28 No.6 Institute of Project Planning & Research of Machinery Industry Co., Ltd ZJLY SIPPR
29 Changchun Research Institute for Mechanical Sciences Co., Ltd CCJXY CRITM
30 Shenyang Academy of Instrumentation Science SYYBY SAIS
31 Hefei General Machinery Research Institute HFTYY HGMRI
32 Lanpec Technologies Limited LKGX LANPEC
33 Luoyang Bearing Science & Technology Co., Ltd ZYKJ ZYS
34 Zhengzhou Research Institute for Abrasives & Grinding SMS ZRIAG
35 Tianjin Design & Research Institute of Electric Drive TCS TRIED
36 China National Electric Apparatus Research Institute Co., Ltd ZGDQY CEI
37 Guangzhou Mechanical Engineering Research Institute Co., Ltd. GZJXY GMERI
38 Jinan Foundry & Metalforming Machinery Research Institute Co., Ltd JNZDS JFMI
39 Chongqing Materials Research Institute CCY CIMRI
40 Chengdu Tool Research Institute Co., Ltd GJS CTRI
41 China National Heavy Machinery Research Institute Co., Ltd ZGZXY CNHMRI
42 Suzhou Electromachining Machine Tool Research Institute Co., Ltd. SZDJG SEMTI
43 Guilin Electrical Equipment Scientific Research Institute GLDKY GLESI
About Us
18 China National Machinery Industry Corporation
The Group currently has 7 listed companies.
Stock Name
Stock Name
Stock Name
Stock Name
Stock Name
Stock Name
Stock Name
YTO Group (HK00038)
LINHAI POWER (SH600099)
LAMCE (SZ002051)
CHANGLIN (SH600710)
ZYS (SZ002046)
DINGSHENG TIANGONG (SH600335)
LANPEC (SH601798)
192011 Social Responsibility Report
Ranking Among Chinese Top 500
Enterprises
Ranking Among Global Top 225
International Project Contractors
Ranking Among Central Enterprises in
Integrated Performance Assessment
In 2011, SINOMACH enjoyed wide recognition from all walks of life and its social influence was further expanded.
2006
2007
2007
2008
2008
2009
2008
2009
2010
2009
2010 2011
2011
2010 2011
No.
No.
435
1
SINOMACH ranked No.435
among Fortune Global 500
companies in 2011
SINOMACH won the National “May 1st” Labor Medal
FORTUNE
SINOMACH has continued to
rank No. 1 among the Chinese
Top 100 machinery enterprises
for many successive years.
Social
Acknowledgement
2006 2007
About Us
20 China National Machinery Industry Corporation
Corporate Values
Core ValuesCorporate Culture
Work Together Win Together
任任
任任
任任
任任
Pool Centripetal Force
Enhance Executive Force
Increase Competitiveness
Rely on Key Points of
Development
Expand Development
Orientation
Lead the Development
Take Responsibility
Build Up Trust
Common Development
Pursue Complementation and
Win-Win Results
Accomplish Benefit Sharing
Maintain Sound Development
Harmony
“Harmony” is Fusion and Merger
-SINOMACH is closely united for mutual cooperation; remains
consistent in goal, thought and action; and pools efforts to work
harmoniously as one.
“Harmony” is Responsibility
-SINOMACH guides the development orientation of the machinery
industry, safeguards the interests of the country and enterprises, makes
progress together with the industry, grows together with employees
and interconnects with the society.
“Harmony” is Putting People First
-SINOMACH adheres to the concept of people being the first
resource, respects every employee, mobilizes enthusiasm, displays
initiative, improves creativity and fosters humanistic harmony.
“Harmony” is Innovation
-SINOMACH establishes the development path for the machinery
industry and engages in emancipation of thought, transformation of
ideas, Independent Innovation and pursuit of excellence to enhance its
vigor and vitality.
“Harmony” is Harmony
-SINOMACH displays the resultant force of its subordinate
enterprises and achieves win-win results internally and externally;
and SINOMACH people, enthusiastic and enterprising, strive to seek
common development with one heart and one mind.
Cooperation
Innovation
Partnership
Win-Win
Results
212011 Social Responsibility Report
Corporate VisionCorporate Mission
The Leader of the Machinery Industry and the Creator of the Social Values
Guiding the Development Orientation of the Machinery Industry and Establishing the Development Path for the Machinery Industry
As the largest enterprise group in the Chinese
machinery industry, SINOMACH should take on the
important task of revitalizing the Chinese machinery
industry and become the leader in this industry.
Meanwhile, as a large central enterprise, SINOMACH
should create huge economic value for the country
and more importantly, realize due social value
to constantly contribute to social prosperity and
progress.
“Guiding the development orientation of the machinery industry and
establishing the development path for the machinery industry” is the
personal motto of SINOMACH people in innovation, rapid development
and pursuit of excellence; and the requirement for SINOMACH to display
integrated strengths, create a first-class platform, foster first-class people
and attain the goal of becoming a first-class international enterprise.
“Guiding the development orientation of the machinery industry and
establishing the development path for the machinery industry” means that
SINOMACH must take both political responsibility and social responsibility
in its efforts to explore the path of development of China’s machinery
industry, meet the needs of customers, employees, shareholders and the
society, and put into practice the historical responsibility SINOMACH is
taking.
“Guiding the development orientation of the machinery industry and
establishing the development path for the machinery industry” requires
SINOMACH to actively integrate its resources, perfect its internal business
relations, enhance core competitiveness, retain and increase the value of
State-owned assets and fulfill the heavy responsibilities endowed by the
country and history on SINOMACH.
“Guiding the development orientation of the machinery industry and
establishing the development path for the machinery industry” requires
SINOMACH to stand at the strategic height of international competition,
target the most excellent international enterprises and constantly make
improvements to continuously win trust and recognition from customers
in its fields of activity.
“Guiding the development orientation of the machinery industry and
establishing the development path for the machinery industry” is the long-
term pursuit of SINOMACH. Currently, SINOMACH needs to be careful
of the stages of historical development and should neither run ahead of
history nor lag behind the responsibilities and tasks endowed by history.
It should base itself on reality and work in a down-to-earth way to press
forward the specific work and tasks in the two major fields: the equipment
manufacturing industry in which it has comparative advantages and the
modern manufacturing service industry in which it has certain strengths.
22 China National Machinery Industry Corporation
Corporate Strategies
Strategy for Capital Operation
For the purpose of retaining and
increasing the value of capital, by
means of the operation of industrial
capital, financial capital, property
right capital and intangible capital, in
the form of merger and acquisition,
asset injection, public l isting of
enterprises, increasing capital to
enlarge capitalization, equity swap,
joint-venture operation and strategic
alliance and on the basis of intensive
development, we will vigorously
expand the extensive development
path.
In pursuit of the central goals of
enhancing equipment manufacturing
capabilities and upgrading modern
manufacturing service capabilities,
we will improve industrial structural
efficiency, innovate in thinking and
methods; and foster and integrate
business opportunit ies through
sca le expans ion, technologica l
breakthrough, industrial upgrade and
capability enhancement to seek new
points of profit growth. Through the
benign interaction between industry
and capital, we will walk down a new
road for leap-forward development.
Strategy for Continuous Innovation
We will persist in taking the innovation-
dr iven development path, br ing along
scientific and technological progress and
strengthen management innovation to build
an innovation-oriented SINOMACH and
accomplish sustainable development.
We will strengthen scientific and technological
innovations to improve the added value and
technical content of products and services.
We will highly value original innovation,
vigorously push ahead integrated innovation,
strive to strengthen the digestion, absorption
and re-innovation of the acquired technologies
and push for advanced technologies to be
industrialized and project-oriented; reinforce
the building of the system of scientific and
technological innovations, develop the
mechanisms for promoting and ensuring
technological innovation and effectively display
the role of the Central Research Institute
and the R&D organizations of subsidiaries.
Focusing on the major business sectors, we
will push forward the effective integration
of scientific and technological resources
and make greater investment in research
and development; through cooperation
with domestic and foreign institutions in
technology, project and scientific research
funding, as well as upgrading our products,
techniques and technological development,
and enhancing the awareness of intellectual
property rights and reinforce the creation,
application, management and protection of
such rights.
We w i l l c o n t i n u o u s l y p u s h f o r wa r d
m a n a g e m e n t i n n o v a t i o n , e n h a n c e
m a n a g e m e n t q u a l i t y a n d i m p r o v e
management eff ic iency. We wi l l apply
advanced conceptions, thinking and methods
in management, reinforce IT application
construction, innovate on business modes,
promote the scientif ic management of
strategies, human resources, investment,
finance, science and technology, quality and
risks, as well as upgrading corporate culture
and reforming management systems and
mechanisms to allow the Group’s corporate
management to become scientific, intensive
and lean.
Strategy for Strengthening Enterprise Through People
With the aim of fostering and bringing up numerous talent
contingents with optimized structure, rational layout and
excellent qualities, we will establish the comparative
advantages in talent competition and lay the talent
foundation for the Group’s long-term stable development.
Constantly improve the HR management system. Following
the principle of putting people first and basing enterprises
on people, we will perfect the HR management system for
talent absorption, selection, appointment and assessment;
set up a market-based talent remuneration system, further
improve the existing assessment system and explore and
adopt advanced assessment methods to develop effective
incentive and constraint mechanism; adhere to the concept
that “development relies on employees, development is
for employees and development achievements are shared
by all employees” and shape the growth mechanism under
which enterprises and employees share interests; and set
up the channels for career development of employees, pay
attention to the vertical development of human resources
and reinforce the horizontal exercise of human resources.
Speed up the selection and introduction of high-level
talents. On the basis of following the successful practices
of the past, we will improve the measures for high-level
talent selection and management and make greater
efforts for the selection and cultivation of talent; better
the system for engagement of operation management
personnel and improve employment mechanisms under
which people can be promoted or demoted and can be
recruited or dismissed; and perfect an internal cadre
exchange system and reinforce such internal exchanges
to promote the fully effective utilization of internal human
resources.
Strengthen HR training and development. We will integrate
the Group’s various training resources, fully develop and
utilize the existing production facilities, scientific research
conditions and other resources, make more investment
in training and set up the Group’s talent training
organizations to turn them into the HR development base,
cultural communication base and leadership enhancement
base for the Group to carry forward culture, publicize and
implement strategies, update knowledge and improve
qualities and skills; provide in-advance training to the
human resources required for enterprise development,
strictly stipulate the contents, majors and orientations of
training studies and establish and improve the system
for examination and evaluation of the training results;
and introduce the international standards for corporate
training and standardize the management of the training
process to improve training quality.
232011 Social Responsibility Report
Prospects for Development
by 2020
Business Positioning
According to the Group’s principles for
strategic positioning and industrial selection
and its standards for industrial development
or ientat ion, in the next ten years, we
will take the equipment manufacturing
i ndus t r y and mode rn manu fac tu r i ng
service industry as the core of the Group’s
business development, persist in combining
extensive growth and intensive development,
constantly strengthen the mutual support
and collaborative development between
the equipment manufacturing industry and
the modern manufacturing service industry,
shape international competitive advantages in
manufacturing and services in some key fields
of the machinery industry and stand at the
forefront of these industries.
Specifically, the Group’s future business
development patterns include the two fields
of “equipment manufacturing industry and
modern manufacturing service industry”
and three main businesses of “machinery
equipment R&D and manufacturing, project
contracting, and trade and services”. In these
three main businesses, we will consolidate
and strengthen the existing predominant
operations, foster and develop the emerging
operations that have the potential of huge
growth and play a supportive role for other
operations. In the future, we will mainly
consolidate and strengthen such operations
as electric power equipment, agricultural and
forestry machinery, engineering machinery,
e lec t romechan ica l p roduct t rade and
services, automobiles, general contracting
and regional development and operation of
projects, and design consulting, and we will
foster and develop such operations as smart
manufacturing equipment, equipment for
green and emerging industries, and financial
and investment services.
Business Goals by 2020
By 2020, the Group will strive to realize
RMB25-30 billion of total profits and RMB500-
600 billion of business revenue, continuously
hold the first place among Chinese Top 100
enterprises in the machinery industry, rise
to a middle ranking among the world’s top
500 companies and stand higher than the
industrial average in return on assets.
Strategy for Transformation and Upgrade
We will push forward the transformation of
growth modes from a primary dependence
on element input and scale expansion
to a primary dependence on technical
progress, improvement of workers’ abilities
and innovation in operation modes
and management. We will upgrade the
operating capabilities of enterprises, extend
from product and business operation to
capital operation, transform from being
absorbed in operating efficiency to laying
equal emphasis on operating efficiency
and structural efficiency, move from scale
development to coordinated development,
advance the combination of production
and finance and reinforce advantages in
collaborative competition. We will optimize
market structure and move from focusing
on international market to laying equal
emphasis on domestic and foreign markets
to enhance the Group’s ability to withstand
risks, optimize industrial structure and
promote the even development of the
equipment manufacturing industry and
modern manufacturing service industry.
The Group will enhance the capabilities
of Independent Innovation and industrial
d e v e l o p m e n t , e x t e n d e q u i p m e n t
manufacturing products from low and
middle end to middle and high end,
extend modern manufacturing services
from common services to comprehensive
services, constantly perfect the industrial
c h a i n a n d c o n t i n u o u s l y e n h a n c e
competitive advantages.
Strategy for Brand Upgrade
We will scientifically perfect the organization
of brand management, improve brand
management rules and build up the brand
management platform to shape the Group’s
scientific and systematic brand management
system.
We will tap into and enhance the core
value of our branding, further clarify
the positioning, image and spirit of the
brands as well as the goals and tasks of
brand enhancement, promote corporate
development through branding, develop a
good interactive relationship between brand
operation and enhancement of the Group’s
core competitiveness and create more added
value.
Based on the strategic positioning and
business characteristics of the Group’s
development, we will straighten out the
brand system level by level and gradually
shape the brand framework featuring
the “Group’s brand - business brands -
subsidiaries’ brands - product brands” to
rationalize the allocation of brand resources
and maximize the accumulative brand
assets.
We will integrate and coordinate the use of
various communication means to improve
the pertinence of communication and
popularization and, through the effective
integration and application of various
communication resources, we will enhance
the reputation and prestige of the Group’s
brand, reinforce the status of the SINOMACH
brand in the machinery industry, build up
a powerful brand image, fully elevate the
Group’s brand influence and gradually
realize leap-forward development from local
brand to international brand so that the
Group’s brand matches its status as a world-
class enterprise.
Through brand upgrade, we will display the
role of brands as intangible assets, increase
the cohesion and control of resources,
expand market influence and enhance the
competitiveness of the Group.
Continuously Enhance Soft Power
Responsibility Management
To strengthen social responsibility
m a n a g e m e n t i s t h e i n t e r n a l
requirement for enterprises to
undertake s t rategic mis s ions
and put into practice core values
and it is the inevitable course
f o r e n t e r p r i s e s t o e n h a n c e
comprehensive competitiveness
and realize prospects and goals.
S INOMACH highly va lues the
work of soc ia l respons ib i l i ty
management, constantly perfects
social responsibility governance,
c o n t i n u o u s l y s t r e n g t h e n s
communication with stakeholders
and a lways commits i t se l f to
achieving its long-term sustainable
development.
26 China National Machinery Industry Corporation
Social Responsibility Model of SINOMACH
SINOMACH’s development mission of “guiding the development orientation of the machinery industry and establishing the development path for the machinery
industry” requires us to fully implement the outlook on scientific development, actively undertake responsibilities, reward the society and, through ceaseless
pursuit, strive to promote the long-term and maximized interests of employees, enterprises, the country and society.
Through good-faith, steady and scientific operation, advance corporate development, continuously create stable and excellent economic
value, ensure the retention and increase of the value of State-owned assets and provide the society with ideal returns.
Put people first, protect their rights and interests, build up growth channels and let them produce and live in a harmonious and safe
environment and share the achievements of corporate development.
Rely on profound scientific research strengths, constantly innovate, respond to major industrial demands through high-quality products and
services, and help customers create value.
Follow the strong awareness of environmental protection, fuse responsibility for environment in the Group’s own operation, bring into play
our scientific and technological advantages and, through green technologies, green products and green projects, contribute our strength to
the sustainable development of nature and human society.
With a kind heart, warmly offer a helping hand and commit to charity and public welfare, and serve the building of a harmonious society.
Concept of Social Responsibility I.
Corporate Citizen
Responsibility Management
Economic Development
Scientific and Technological
Innovation
Environmental Protection and Conservation
Work safetyEmployee Growth
Widely Respected Leader for
Sustainable Machinery Industry
27
Responsibility Management 2011 Social Responsibility Report
Strengthen Social Responsibility Management
The Strategic Plan for Social Responsibility of China National
Machinery Industry Corporation clearly states that in the
next five years, SINOMACH will take it as its basic starting
point to fulfill the social responsibility performance at
the international advanced level, carry on the work of
social responsibility in an orderly and effective manner,
further establish and improve the management organ for
social responsibility organizations, perfect the operation
mechanisms for such organizations and shape a social
responsibility management system featuring complete
structure, clearly defined levels, clear-cut rights and
responsibilities, smooth flows and highly efficient operation
to provide powerful organizational guarantee for the
performance of social responsibility by SINOMACH.
(I) Make Strategic Plan for Social Responsibility
II.
Follow One
Core Concept
Implement Five
Major Projects
Fulfill Six
Main Tasks
Build Two
Main Mechanisms
Carry on Three
Responsibility Practices
Adhere to Four
Cardinal Principles
1 2
3
45
6
SINOMACH’s Basic
Thinking for Future
Development of Social
Responsibility
28 China National Machinery Industry Corporation
Director (Board Chairman)
Deputy Director (Corporate management)
Working Office for Social Responsibility
Secretary-GeneralMembers
(chief of each department)
Organizational Setup of the Working Committee of SINOMACH for
Social Responsibility
Director: Ren Hongbin
Deputy Directors: Xu Niansha, Xu Jian, Chen Zhi, Li Zhanyong,Luo
Jiamang, Xie Biao, Liu Dagong, Ding Hongxiang
Members: Liu Bing, Wang Shuqing, Zhao Bing, Wang Qiang, Su Weike,
Liu Jingzhen, Liu Zuqing, Wei Feng, Yu Xiaoyuan, Shi Hui, Wang Xiyan,
Han Xiaojun, Yang Hongyan, Wang Bo, Quan Huaqiang, Sun Miao, Pi
Anrong, Wang Yuqi
Secretary-General: Wang Xiyan (concurrent)
Working Office for Social Responsibility: A Working Office for
Social Responsibility is to be established
(II) Working Committee of SINOMACH for Social Responsibility
(III) Chart of Certification Course of SINOMACH Social Responsibility System
SINOMACH Headquarters established
Complying with SR management
standards
(SA8000)
Management system documents
released and put into operation
Accepting General Standards
Headquarters SR Management
System certified and audited by
SGS
SINOMACH obtained SR
Management System
(SA8000: 2001) Certificate
SINOMACH obtained renewed SR
Management System (SA8000:
2008) Certif icate after being
reevaluated
On August 1, 2007
On November 14-16, 2007
December 14, 2007
December 14, 2010
SINOMACH SR System (SA8000: 2008) Certificate
29
Responsibility Management 2011 Social Responsibility Report
IV. Table of Functions Distribution Subordinate to SINOMACH SA8000 SR Management
System
Note: “▲”stands for leader or department in charge and “△”for related department
1.Child labor △ △ △ ▲ △ △ △ △ △ △ △ △ △
2.Forced labor △ △ △ ▲ △ △ △ △ △ △ △ △ △
3.Health and safety ▲ △ ▲ △ △ △ △ △ △ △ △ △ ▲ △
4.Freedom of organizing trade unions and collective negotiation rights
▲ △ △ △ △ △ △ △ △ △ ▲ △ △ △
5.Discrimination △ △ △ ▲ △ △ △ △ △ △ △ △ △
6.Punitive measures ▲ △ △ △ ▲ △ △ △ △ △ △ △ △ △
7.Working hours ▲ △ △ △ ▲ △ △ △ △ △ △ △ △ △
8.Remuneration ▲ △ ▲ △ △ △ △ △ △ △ △ △
9.1 Management system ▲ △ △ △ △ △ △ △ △ △ △ △ △ ▲
9.2 Management review ▲ ▲ △ △ △ △ △ △ △ △ △ △ △ △ ▲
9.3 Corporation representative ▲ △ △ △ △ △ △ △ △ △ △ △ △ △
9.4 Worker representative △ △ △ △ △ △ △ △ △ ▲ △ △ △
9.5 Plan & implementation △ △ △ △ △ △ △ △ △ △ △ △ ▲
9.6 Management of suppliers and subcontractors
▲ △ ▲ △ △ △ △ △ △ △ △ △ △ △
9.7 Promises of suppliers and subcontractors
▲ △ ▲ △ △ △ △ △ △ △ △ △ △ △
9.8 Evidence of suppliers and subcontractors
▲ △ ▲ △ △ △ △ △ △ △ △ △ △ △
9.9 Control over family workers
9.10 Handling misgivings ▲ △ △ △ ▲ △ △ △ △ △ ▲ △ △ △
9.11 Corrective actions ▲ △ △ △ ▲ △ △ △ △ △ ▲ △ △ △
9.12 External communication ▲ △ ▲ △ △ △ △ △ △ △ △ △ △ △
9.13 Verifying channels ▲ △ △ △ △ △ △ △ △ △ △ △ ▲ ▲
9.14 Records △ ▲ △ ▲ △ △ △ △ △ ▲ △ ▲ ▲
General M
anagerSystem
Representative of Regulator
Assets &
Financial Departm
ent
Reform &
Developm
ent Departm
ent
Deputy G
eneral Manager
Investment M
anagement D
epartment
Discipline Inspection O
ffice (Supervision O
ffice)
Com
prehensive Managem
entD
epartment
Office of the Board of D
irectors
社会责任管理体系要求
Auditing D
epartment
Strategic Planning Departm
ent (C
orporate Culture D
epartment)
Legal Affairs D
epartment
Bu
siness D
evelop
men
t Dep
artmen
t (W
ork Safety Departm
ent)
Hum
an Resources Departm
ent (Party C
omm
ittee’s O
rganization Departm
ent)
Party Com
mittee ’
s Working D
epartment
(Trade Union O
ffice)
Sci-Tech Developm
ent Departm
ent (M
ilitary Industry Managem
ent Office)
DepartmentsSR Elements
30 China National Machinery Industry Corporation
1. Publishing Social Responsibility Report
On April 8, 2010, SINOMACH released its first social responsibility
report - 2009 Social Responsibility Report of China National Machinery
Industry Corporation. With 134 pages and over 100,000 words, in the
form of texts, case studies, charts, tables and pictures, the Report fully
disclosed the practices and achievements of SINOMACH in economic,
environmental and social responsibilities in the past decade since its
establishment and systematically expounded the corporate culture
SINOMACH had accumulated and the social responsibility outlook it
had developed in the course of more than ten years of development.
Meanwhile, it also made solemn promises for future performance of
social responsibility.
2. Improving Social Responsibility System
While perfecting the mechanism for social responsibility reporting
and disclosure, SINOMACH has committed itself to innovation in
its management system. At the headquarters, it has implemented a
management system integrating four standards; and at subsidiaries,
it has gradually promoted the establishment of the SA8000 social
responsibility management system. By closely combining social
responsibility elements with department functions and subsidiary
operation, it has built up a two-tiered solid management system for
social responsibility improvement. The establishment of the system
and its operational improvements have played a positive role in
scientific organization and standardized management and SINOMACH
has gradually built up the image of a responsible, advanced enterprise.
(V) Carrying on Social Responsibility Practices
Release Conference for SINOMACH 2009 Social Responsibility Report
31
Responsibility Management 2011 Social Responsibility Report
SINOMACH actively carries out social responsibility training. In 2011, the main leaders of the Group and its subsidiaries participated in the relevant
training in social responsibility, perfected a social responsibility network knowledge platform and further enhanced employees’ level of understanding
and ability to participate.
3. Participating in Subject Studies
In 2011, SINOMACH actively participated in the study of social responsibility subjects, became a member of the Subject Group for Studies on
Guidance for Social Responsibility of Central Enterprises organized by the SASAC of the State Council and took part in the Subject Group for Outline
of Harmonious Development Strategies for Central Enterprises During the “12th Five-Year Plan” Period. SINOMACH was successfully selected as one
of the first practice enterprises in the Guidance for Social Responsibility in the Chinese Industry of International Contract Projects. The Group attended
the application symposium on the Guidelines to Compilation of Chinese CSR Report (the “Guidelines”), at which it reported its achievements and
experience in carrying on social responsibility work, offered opinions on the revision of the Guidelines and actively made the Group’s voice heard,
thus enhancing the Group’s strong reputation and influence in social responsibility.
SINOMACH was appraised as 2010 “Golden Bee - Social Responsibility Leader Enterprise”
(VI) Strengthening Social Responsibility Training
SINOMACH Working Meeting on Corporate Culture, Brand and Social Responsibility Training
32 China National Machinery Industry Corporation
Stakeholders Expectations on the CorporationMethods of Communication & Response
Chinese Government
Actively implement macro regulation policies of the state, carry on industrial integration according to the overall state plan for the machinery industry, strengthen work safety management, promote employment and bring forward industrial development of the value chain
Participate in the formulation of laws, regulations and policy documents, attend meetings, report on special subjects, submit statistical statements and visits
SASAC
Realize the retention and increase of the value of State-owned assets, particularly the overseas assets, perfect corporate governance structure, strengthen and optimize principal operations, fully reinforce risk management and enhance corporate comprehensive competitiveness
Work out rules and regulations, propose work goals, reinforce EVA assessment, report on work and report statistical statements
InvestorContinuously increase corporate value, strengthen management and control to reduce operation risks, repay principal and interest and pay dividend on schedule
Accurate and timely disclosure of information, regular visits, annual report and shareholders’ meeting
Employees
Safeguard employees’ lawful rights and interests, provide stable employment opportunities, work out a reasonable remuneration guarantee mechanism, and expand employees’ career development channels, provide safe and healthy working environment, actively implement the policy for localizing overseas employees
Set up trade unions at all levels, regularly hold employees’ representative meetings, and build up smooth channels for internal communication
Enterprises in the Same
Industry
Bear industrial and trade responsibilities, set industrial and trade paradigm, and make more contributions to the industry and trade
Actively join industrial and trade associations, take the initiative to build up industrial and trade exchange platform, organize and convene industrial and trade activities
CustomersOperate in good faith, provide premium and cheap products, upgrade customer service quality and build up the good reputation of enterprises in the machinery industry
Closely communicate with customers, strictly perform contracts and provide extensive information on products and services
Environment
Actively implement the state policies on energy efficiency and emissions reduction, realize green operation, manufacture green machinery products, protect the ecological environment, and carry on green office work
Work out a relevant environmental protection system, accelerate green scientific innovation and actively participate in environmental protection activities
Cooperative Partners
Abide by business ethics and relevant laws and regulations, establish long-term cooperation relationships, safeguard the interests of upstream and downstream enterprises, and accomplish mutual benefits and win-win development
Strategic cooperation negotiations, meeting of high-level leaders, invitation to bid and bidding, day-to-day business exchanges, and regular visits
Community and Public
Promote sustainable development of community economy, actively support social welfare undertakings, and forge public welfare projects with SINOMACH characteristics
Enter into joint construction agreements, participate in construction of community projects, regularly communicate and carry out friendship-building events
Non-government
Organizations
Support the development of social groups and organizations, implement organizational charters, strengthen the disclosure of operation information, and participate in public welfare undertakings
Actively attend relevant meetings and willingly offer suggestions
Stakeholders EngagementIII.
33
Responsibility Management 2011 Social Responsibility Report
Major Social Organizations/Groups SINOMACH Has Joined
No.Name of Association or Society
Position No.Name of Association or Society
Position
1China Machinery Industry Federation (CMIF)
Vice Chairman 15China Association of Machinery Industry Culture (CAMIC)
Vice Chairman
2China Enterprise Confederation (CEC)China Enterprise Directors Association (CEDA)
Vice Chairman 16China Machinery Enterprise Management Association (CMMA)
Deputy Director-General
3China Internat ional Contractors Association (CICA)
Vice Chairman 17China-Europe Association for Economic & Technical Cooperation (CEATEC)
Deputy Director-General
4China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME)
Vice Chairman 18 China Machinery Industry Education Society Deputy Director-
General
5China Mechanical Engineering Society (CMES)
Deputy Director-General 19
China Machinery Industry Auditing Society (CASMI)
Vice Chairman
6China Association of Agricultural Machinery Manufacturers (CAAMM)
Chairman 20 China Auto Talents Society (CATS)Deputy Director-
General
7China Chamber of Internat ional Commerce (CCOIC)
Vice Chairman 21 China Supervision Society Machinery Branch Vice Chairman
8China Association of International Engineering Consultants (CAIEC)
Vice Chairman 22Accounting Society of China (ASC) Machinery Industry Branch
Chairman
9C h i n a N a t i o n a l A s s o c i a t i o n o f Engineering Consultants (CNAEC)
Vice Chairman 23China Chamber of Commerce for Import and Export of Machinery and Electronic Products Electric Power Equipment Branch
Vice Chairman
10China Exploration & Design Association (CEDA)
Deputy Director-General 24 China Electrotechnical Society (CES)
Executive Director
11China Association for Engineering Construction Standardization (CECS)
Deputy Director-General 25 China Association of Work Safety (CAWS)
Executive Director
12Society of Automotive Engineers of China (SAE-China)
Deputy Director-General 26 China Labor Society
Executive Director
13China Association of Automotive Manufacturers (CAAM)
Vice Chairman 27Shanghai Cooperation Organization (SCO) China Business Council
Executive Director
14China Association of Plant Engineering Consultants (CAPEC)
Deputy Director-General 28
Accounting Society for Foreign Economic Relations & Trade of China (AsFETC)
Executive Director
34 China National Machinery Industry Corporation
352011 Social Responsibility Report
Successfully Re-forging a New SINOMACH
Economic Development
As a large State-owned central
enterprise group with a broad
bus ine s s s cope , out s tand ing
predominance in industrial chains
and strong R&D capabilities in
the Chinese machinery industry,
S I N O M A C H h a s v i g o r o u s l y
strengthened the integration
of its subordinate enterprises,
o p t i m i z e d t h e d e v e l o p m e n t
of the whole industrial chain,
actively promoted management
change, constantly expanded the
space for market development,
accelerated transformation and
upgrade, created good operating
performance and accomplished
inclusive growth.
36 China National Machinery Industry Corporation
SINOMACH has adhered to the outlook on scientific development, constantly optimized and readjusted industrial structure, fostered the core
competitiveness of the three main businesses, promoted Independent Innovation, successfully withstood the impact of the global financial crisis and
accomplished leap-forward development.
By the end of 2011, SINOMACH recorded business revenue of RMB191.0 billion, total profits of RMB7.8 billion and a total import and export volume
of RMB11.0billion, representing a growth of 25.6%, 16.8% and 28.8%respectively, thus realizing the retention and increase of the value of State-
owned assets.
SINOMACH 2007-2011
Operating revenue
Unit: RMB 100 million
Total Assets
Unit: RMB 100 million
RMB 100 million
Total Pro�ts Total Imports & Exports VolumeUnit: US$ 100 million
Inscription by Jia Qinglin, Member of the Standing Committee of the Political Bureau of the CPC Central Committee and CPPCC Chairman
Good PerformanceI.
683.0
974.2
980.2
1522.2
1910.0
610.6
805.1
1035.0
1314.6
1665.0
2007 2008 2009 2010 2011
32.8 38.748.4
66.7
78.086
110
57 63 62
2007
2007
2008
2008
2009
2009
2010
2010
2011
20112007 2008 2009 2010 2011
37
Economic Development 2011 Social Responsibility Report
China foreign trade Top 500
SINOMACH recorded a sales income of US$22.487 billion in 2010, which saw
it appear on the list of Fortune Global 500 for the first time, where it ranked
No. 435. Except those in the automobile industry, SINOMACH is the first
Chinese machinery enterprise appearing in the Global 500.
Ranking Among Chinese Top 500 Enterprises
On January 14, 2011, S A S A C D i r e c t o r W a n g Yo n g s e n t a congratu latory le t ter to SINOMACH on the splendid achievements it made in 2010 and to extend Spring Festival g r e e t i n g s t o a l l t h e employees. No.
No.
No.55 No.9No.1326
77
Ranking Among Global Top 225 International Project ContractorsContractors
Ranking Among ENR Global 200 Engineering Consulting & Design Enterprises
Ranking Among Central Enterprises in Integrated Performance Assessment
Inscription by Zhang Dejiang, Vi ce P remie r o f t h e S t a t e Council
cases
38 China National Machinery Industry Corporation
The overall competitiveness of the whole industrial chain is
the concentrated manifestation of the core competitiveness of
SINOMACH. Through integration of resources, SINOMACH has
optimized the allocation of its internal and external resources, fully
displayed the synergistic effect of the industrial chain and developed
the synergistic ability of a complete industrial chain covering design,
R&D, manufacturing, system integration, project contracting, and trade
and services. It has also strengthened capital operation, optimized the
industrial layout of the Group’s whole industrial chain by means of
integrating financial capital and industrial capital, shaped industrial
sectors with a leading position by improving organizational structure
in a market-based manner, effectively increased economic benefits
and efficiency, controlled unique advantages in industrial value and
market competition and committed itself to advancing the Chinese
equipment manufacturing industry to make the transition from “Made
in China” to “Created in China”.
Through years of development, SINOMACH has gradually shaped the
three major business sectors of R&D and manufacturing of machinery
equipment, project contracting, and trade and services; and its
services have covered the majority of key national economic sectors.
On May 24, 2010, CCTV Xinwen Lianbo (Network News
Broadcast) made a special report on SINOMACH.
Inscription by Lu Yongxiang, Vice Chairman of the NPC Standing Committee
Synergistic Integration for Whole Industrial Chain Development
II.
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Economic Development 2011 Social Responsibility Report
The development of the machinery industry represents the impulse for
realizing modernization. Keeping pace with the development trends
of international advanced manufacturing technologies, SINOMACH
focuses on the development of equipment manufacturing industry and
has become the largest agricultural, forestry and geological equipment
manufacturer and one of the important engineering machinery
manufacturers in China. Meanwhile, it has also brought along the
development of a great number of small and medium enterprises,
promoted the progress of the machinery industry as a whole, taken
on the important task of revitalizing the Chinese machinery industry,
provided more and better technical equipment support for all industries
of the national economy, accelerated technical progress, facilitated
the industrial upgrade, absorbed labor to increase employment and
enhanced the strengths of “Made in China”.
"In the future development of the equipment manufacturing industry, SINOMACH will focus on five industries: 1. Electric power equipment: including equipment for power stations and for power transmission and transformation; 2. Engineering and agricultural machinery equipment: including agricultural, forestry and engineering machinery; 3. Smart manufacturing equipment: including key basic parts, high-end monitoring and control systems, smart mainframes, and logistical equipment for sorting, storage and transportation; 4. Automobile industry: including auto parts, refitting vehicles and special vehicles; and 5. Equipment for green and emerging industries: mainly supported by the state, this has enormous space of growth. "
-----Development Strategy of China National Machinery Industry Corporation (2011-2020)
(I) Committed to Forging an “Aircraft
Carrier” in Equipment Manufacturing
As the largest agricultural, forestry and geological equipment manufacturer and an important engineering machinery manufacturer in China, SINOMACH has ranked No. 1 among the Chinese Top 100 machinery enterprises for many successive years. Vice Chairman Chen Zhi attends the press conference announcing the list of Top 100 Enterprises in the Chinese machinery industry.
“Smile-shaped Layout of the Industrial Chain
- Just like the upturned corners of one’s
smiling mouth, market and R&D are the two
highest ends of the Group’s benefits while
manufacturing is the low end of the benefits.
But the industrialization of SINOMACH’s
s c i e n t i f i c r e s e a r c h i n s t i t u t e s n e e d s
manufacturing enterprises to supplement
the layout of production capacity it hopes to
accomplish.”
--Ren HongbinBoard Chairman of China National Machinery
Industry Corporation
40 China National Machinery Industry Corporation
On-Site Operation of Agricultural Machinery in Northeastern China
Assembly Line of Tong Fang Hong Diesel Engines Glycol Pilot Test Devices
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Economic Development 2011 Social Responsibility Report
As a technology-based central enterprise, SINOMACH brings into full play its advantages in technology, talent and scientific research
achievements to help small and medium enterprises (SMEs) to increase added value of products and solve their difficult problems of
technical bottlenecks and weak capability of Independent Innovation. Through the development of its core operations of equipment
manufacturing, SINOMACH has brought along a great number of SMEs. China YTO Group Corporation alone, one of the subordinate
enterprises of SINOMACH, can bring along over 800 enterprises producing auxiliary devices and can annually provide job opportunities for
nearly 400,000 persons in product marketing, services at repair stations, community services and so on.
Asia’ largest Garbage Grab Crane with a hoisting capacity of 25 tons and a closed grab bucket volume of 15m3
165MN Forging Machine
“Dong Fang Hong” Heavy -Duty Tractor with Power Gear Shift filled the domestic gap
Big Bearing, a key supporting device for Wind Turbine Generator System
Advancing the Development of SMEs
The development and enlargement of State-owned enterprises creates greater
space for collaborative development of private enterprises. In the industrial
chain and layout of State-owned enterprises are concentrated an enormous
group of enterprises of different ownerships. They support each other and jointly
promote social and economic development.
--Ren HongbinBoard Chairman of China National Machinery Industry Corporation
42 China National Machinery Industry Corporation
Malaysia Kuching Power Station (Stage II)
Three Generators Under Construction Congo (Brazzaville) Imboulou Hydropower Station
The Morupule B 4×150MW Coal-fired Power Plant Project in Botswana was an EPC project undertaken by China National Electric
Engineering Co. Ltd. under SINOMACH, with a contract value of US$970 million. It marked China’s first entry into the country’s power
market, and was also the largest power plant project in the country. The project was a key project under the 421 National Program, and
achieved success in financing through a new model of multinational cooperation, awarded as the “deal of the year” by several publications,
including African Investors, Project Finance and International Project Finance.
100% localization was achieved
in the construction of this project,
i.e. the construction was fully
undertaken by local contractors
and all building materials were
procured locally.
Botswana Morupule B 4×150MW Coal-fired Power Plant Project
Indonesia INDRAMAYU Coal-Fired Power
Station Stage II Project
SINOMACH has prepared the Development Plan of SINOMACH for Project Contracting Operation to actively perfect the business chain of project
contracting, increase the technical content of such business and enhance system integration ability to provide customers with all-directional and
multi-level package of solutions. SINOMACH actively responded to the national strategy of “going global”, vigorously carried out EPC business and
completed a great number of EPC projects in numerous countries and regions in Asia, Africa, South America and Oceania, which had provided a
great many job opportunities for local people and promoted local economic development. SINOMACH has become a leading international project
contractor.
(II) Vigorously Expanding Project Contracting
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Economic Development 2011 Social Responsibility Report
In 2010, SINOMACH firmly seized the market opportunities during the post financial crisis period, created its market development thinking and mode
and made outstanding achievements. The value of newly-signed contracts reached US$35.3 billion, an increase of 68% on a yearly basis and the
best figure in the Group’s history. Among these, the contractual price of the Argentina Railway Reconstruction Project undertaken by China National
Machinery & Equipment I/E Corporation (CMEC) subordinate to SINOMACH was US$2.5 billion, the largest international engineering contracting
project undertaken by a Chinese enterprise in South America, and the Australian 600,000 Kilowatt Integrated Drying & Gasification Combined Cycle
(IDGCC) Power Station Project undertaken by China National Electric Engineering Co., Ltd. (CNEEC) is the world’s largest clean energy power project
using lignite gasification technology.
China National Automation Control System Corporation subordinate to SINOMACH Won and Signed the First Refinery Project in Cambodia
On November 29, 2011, President Xu Jian attended
the signing ceremony for the EPC Contract Framework
Agreement on 5 Million Tons/Year Refinery Project between
China National Automation Control System Corporation
(CACS) subordinate to S INOMACH and Cambodia
Petrochemical Co., Ltd. in Phnom Penh, capital of Cambodia,
and jointly witnessed the signing with Cambodian Deputy
Prime Minister Sok An.
Located at Kampong Saon, Cambodia and covering an
area of 600,000 square meters, this oil refinery has a
designed annual handling capacity of 5 million tons; the
static investment in it is about US$1.6 billion and its
construction period is 36 months. This is the first refinery in
Cambodia and also the most technically advanced refinery
in Southeast Asia. The Cambodian government attaches
great importance to the construction of this refinery. After
the project is completed and goes into production, it will
enable Cambodia to achieve self-sufficiency of fuel oil and
overcome its predicament of complete dependence on oil
importation. The project will play an important role and be of
great significance for promoting the economic development
and industrialization of Cambodia. Meanwhile, this project
will also create about 2000 employment positions for local
people.
SINOMACH has achieved good market expansion effect
through its engineering contracting projects, particularly
electric engineering projects in Cambodia, and made
important cont r ibut ions to Cambodian economic
development and improvement of local people’s livelihood.
SINOMACH has won local owners’ trust through its excellent
project quality and built a profound friendship with the local
people.
44 China National Machinery Industry Corporation
In project exploration and design, SINOMACH owns 18 exploration and design institutes with more than 6000 exploration and design professionals.
For many years, it has ranked among the first 100 on the list of ENR “Global Top 200 Engineering Consulting & Design Enterprises”. During the “11th
Five-Year Plan” period, it has won over 1200 awards such as Scientific Achievement Awards at provincial and ministerial levels or above, the Excellent
Exploration and Design Award, Lu Ban Award and Zhan Tianyou Award.
Brazil-China Friendship Center Unveiled
Yemen National Grand Library
45
Economic Development 2011 Social Responsibility Report
Supervision Project of Zimbabwe Hospital with China’s Assistance
“Sail of White Cloud” at the Asian Games
World Expo Performance Center
World Expo CenterSupervision Project of China International Trade Center Stage III
In project construction and supervision, relying on its professional technical power, SINOMACH has ensured that projects are completed smoothly. Numerous
famous projects and buildings represent the painstaking efforts of SINOMACH people, such as the “One Axis and Two Halls” for Shanghai World Expo, the steel
structure project in Shanghai Hongqiao traffic hub, and the “Sail of White Cloud”, the main landscape for the Opening Ceremony of the Asian Games.
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46 China National Machinery Industry Corporation
Jiangsu SUMEC Group Corporation subordinate to SINOMACH participating in Europe Solar Energy Show
In automotive service trade, the Group follows the operation concept
of “serving both auto-makers and auto-users” and persists in seeking
the way forward through transformation, promoting development
through upgrade and pursuing benefits through management.
Currently it operates with automobile import and export trade,
marketing and integrated after-sales services as core supporting
operations, with automotive engineering consultation, design and
construction, automobile inspection and automobile exhibition as
main operations and with second-hand auto transaction, automobile
financial services, automobile leasing and automobile information
services as standby operations.
As an important window for introducing foreign advanced
technologies and equipment to the Chinese machinery industry
and for launching China’s high-quality electromechanical products
to the international market, SINOMACH has constantly extended
service chains, innovated on trade modes and enhanced market
competitiveness. Currently it possesses a perfect marketing system,
broad market shares and smooth trade channels and it has basically
formed a pattern featuring diversified trade products, various trade
modes and globalized trade, and which focuses on electromechanical
product trade and automotive service trade to optimize worldwide
allocation of resources, accomplish exchanges of products and
promote mutual benefits and win-win results.
In electromechanical product trade, by reinforcing the development
of new products, the Group has increased the technical content and
added value of products. Meanwhile, it selectively entered the new
energy field and promoted the optimization and upgrade of product
structure.
(III) Actively Expanding Trade and Services
47
Economic Development 2011 Social Responsibility Report
With the goal of perfecting the industrial chain and according to the strategy of “laying equal emphasis on internal integration and external
absorption and carrying on internal integration first and then external reorganization”, SINOMACH has adhered to the three principles of “making up
shortages, becoming stronger and larger and achieving mutual benefits and win-win results” in external reorganization and has mainly completed the
internal resources integration with the listed companies as the platform or with going public as the aim in internal reorganization, making resources
flow and concentrate toward high-benefit fields - predominant operations, predominant enterprises and excellent operators.
New progress has been made in reorganization. Aiming to enrich and perfect its industrial chain and upgrade its comprehensive strengths in
equipment manufacturing and following the guidance of the Guiding Opinions on Promoting Reorganization of External Resources, SINOMACH has
“laid equal emphasis on external absorption and internal integration” to steadily push ahead the reorganization of corporate resources and enhance
corporate competitiveness.
Corporate system transformation has been continuously promoted. SINOMACH worked out the Guiding Opinions of SINOMACH on Standardizing
the Work of Corporate System Transformation. Based on the “three main businesses”, it has promoted the enterprises of the same sectors to be
integrated and to go public. Since 2010, it has carried out the pilot work of transforming the system of its subordinate enterprises including China
National Electric Engineering Co., Ltd., China Machinery Industry Construction Group Inc., No. 6 Institute of Project Planning & Research of Machinery
Industry Co., Ltd., Guangzhou Mechanical Engineering Research Institute Co., Ltd., China National Electric Apparatus Research Institute Co., Ltd.,
China National Machinery & Equipment I/E Corporation and China SINOMACH Heavy Industry Corporation.
(IV) Continuously Strengthening Capital Operation
Renaming and unveiling ceremony for China National Electric Engineering Co., Ltd. subordinate to SINOMACH
Chairman Ren Hongbin struck the gong for the opening of Lanpec Technologies Limited (LANPEC SH601798) subordinate to SINOMACH on Shanghai Stock Exchange
China Machinery Industry Construction Group Inc. subordinate to SINOMACH convenes the meeting on launching the work of system transformation
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48 China National Machinery Industry Corporation
(I) Reinforcing Strategic Management
Management innovation constitutes the impetus for corporate development and the key to transformation of development mode. SINOMACH continuously
pushes ahead management innovation, applies advanced management concepts, thinking and methods, strengthens strategic management, pushes forward
EVA assessment, reinforces brand construction, carries out overall risk management, perfects IT application construction and ensures corporate management
change is intensive and lean so as to lay a solid foundation for the Group’s long-term development.
Since 2002, SINOMACH headquarters have gradually set up the management system integrating the four standards of Quality (ISO9001: 2008), Environment
(ISO14001: 2004), Occupational Health and Safety (OHSAS18001: 2001) and Social Responsibility (SA8000: 2008), successfully passed relevant certification
and obtained the certificates for quality, environment, occupational health and safety, and social responsibility systems.
Management Change Tamping Development Foundation
SINOMACH highly values the work of strategic management and
has revised and perfected the Measures of SINOMACH for Strategic
Management and other strategic management systems. In 2010,
the Group held a series of special and strategic symposiums entitled
“Readjusting and Optimizing Structure, Transforming Development
Mode and Enhancing New Advantages in Competition”, worked out
its development plan during the “12th Five-Year Plan” period and
the ten-year development strategy and launched the formulation of
the branch plans and sub-plans for sci-tech development, branding,
social responsibility, IT application, project contracting, automobile
and agricultural machinery to ensure the effective linking and
SINOMACH Strategic Symposium
mutual support among master plan, branch plans and sub-plans. The
Group reinforced the implementation, evaluation and assessment
of the strategic plans and actively pushed forward the fulfillment
of such plans. Jiangsu SUMEC Group Corporation, China Machinery
Industry Construction Group Inc., China Automobile Trading Co., Ltd.,
China National Automotive Industry International Corp. and China
National Electric Engineering Co., Ltd. subordinate to SINOMACH
valued the strategic guiding role, continuously perfected the strategic
management system, reinforced strategic implementation and saw
that their operating performance continuously improved.
III.
49
Economic Development 2011 Social Responsibility Report
According to the requirements of SASAC, SINOMACH firmly builds
up the concept of value management and the awareness of capital
cost to make decisions more scientifically rational. In 2010, the Group
officially incorporated EVA into the indicator system for operation
performance assessment to strengthen the assessment management
of its subordinate enterprises. In 2011, SINOMACH achieved
RMB4.374 billion in EVA, an increase of 13.6%.
011 Symposium of Central Enterprise Groups on Financial Monitoring and Control
In 2011, SINOMACH won the honorable title “National
Excellent Unit of Corporate Culture Building 2011”
appraised by China Corporate Culture Research
Institute”.
With “Work Together, Win Together” as its core corporate value,
SINOMACH vigorously strengthens the building of corporate culture
and brand.
In the past two years, the Group has further perfected the brand
management system, pushed forward the integration of brand
systems, carried on the unified management of brand communication
and brought into full play the resultant force of the “brand family”,
promoted corporate development through branding, fully displayed
the role of brands as intangible assets and developed the sound
interaction between brand operation and enhancement of the Group’s
core competitiveness. It has actively pushed ahead the building of
the strategic brand of “China’s Industrial Pillar” and successfully
built up the brand image of “A Force of China to Support the World”.
Meanwhile, it has strengthened the master plan for the building of
corporate culture, included and absorbed the excellent cultural factors
of its subordinate enterprises, promoted the Group’s cultural fusion,
forged the cultural carrier of SINOMACH Culture and Brand (magazine)
and reinforced the publicity and training in corporate culture and
branding.
SINOMACH Culture and Brand (magazine)
(II) Carrying on EVA Management
(III) Building Culture and Brand of SINOMACH
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50 China National Machinery Industry Corporation
On August 24, 2010, the SASAC Symposium on the Work of Corporate Cultural Fusion was held at SINOMACH. SASAC Deputy Director Huang Danhua attended the meeting and affirmed SINOMACH’s work in promoting cultural fusion.
Exchange Meeting on Cultural Fusion of Central Enterprises
SINOMACH actively strengthens risk control and prevention. Through segmented management rules and methods, it effectively prevents operation
management risks, rigorously controls investment risks and brings into full play the risk prevention role of legal and auditing work. It actively pushes
forward the building of an all-round risk management system and has made great progress and effectively upgraded risk management and control
ability to provide guarantee for the sustainable development of the Group.
(IV) Carrying Out All-Round Risk Management
The Latest Risk Management Developments of SINOMACH in 2010
Supervision and management of major
projects became more standardized
Make prudent and scientific decisions on major projects, strengthen supervision and
management of major projects, hear and deliberate on the special report on the
implementation of major projects twice a year, require managers to set up supervision systems
for implementation of major projects, and select key projects to undergo follow-up evaluation.
Financial risk management was further
reinforced
Reinforce the supervision of accounts receivable and inventory, strengthen budgetary
management and strictly control the scale of guarantee to reduce corporate financial risks.
The legal system for risk prevention and
control was generally improved
The full-process and all-round control system for contracts having generally been set up, and
the building of the legal mechanisms for corporate risk prevention constantly improved.
51
Economic Development 2011 Social Responsibility Report
1. Operating According to the Laws
SINOMACH rigorously abides by the requirements of relevant laws
and regulations in the places where it operates and persists in carrying
on operation according to law. With the corporate system of general
counselor at the core, it constantly promotes the construction of legal
organizations and the corporate counselor system. By the end of 2010,
24 subordinate enterprises had set up special legal organizations with
full-time legal professionals; and 100% of its important affiliates had
set up the legal affairs organizations with over 200 full-time and part-
time legal personnel. There were 137 full-time counselors with these
affiliates, accounting for 69% of all counselors.
Strengthen legal risk prevention. In 2010, the SINOMACH actively
upgraded the level of legal work and realized legal checks on 100%
of corporate rules and regulations, economic contracts and important
decision-making matters. It printed and distributed the Measures
for Management of Major Legal Dispute Cases in Subordinate
Enterprises of China National Machinery Industry Corporation to push
forward and strengthen the building of the counselor system and
“Final of Debate Competition for Strengthening Corporate Legal Publicity to Promote Legal Risk Construction” of China YTO Group Corporation subordinate to SINOMACH
(V) Persisting in Operating According to Law and Regulation
SINOMACH rigorously requires its subordinate enterprises to operate according to laws and regulations, actively pushes forward the building of
an anti-corruption and integrity system, reinforces auditing and supervision and improves internal control systems to ensure that the corporation
operates according to laws and regulations.
organizations in the subordinate enterprises, fully enhance their level
of operating according to law and ensure that the management of
legal affairs supports corporate strategic decisions and operation. In
2010, no significant legal dispute cases occurred in the whole Group.
Carry on publicity and training in law popularization. SINOMACH
substantially materializes the “Five-Five” law-popularizing work
of the SASAC. Every year, it regularly engages relevant experts and
professors to conduct training in such laws as the Company Law
and the Property Right Law for all the employees of the Group
and through debate meetings and other diverse platforms, leaves
employees’ legal awareness remarkably improved and their legal
knowledge greatly enriched, thus putting in place law-popularizing
publicity.
52 China National Machinery Industry Corporation
Indicator Unit 2008 2009 2010 2011
Number of audited items of economic responsibility Item 14 9 15 24
Number of audited investment projects Project 10 6 1 6
Number of audited engineering contracting projects Project 1 1 1 2
Number of audited special items Item 13 14 15 19
Number of proposed auditing suggestions Item 135 92 76 168
Number of disclosed important matters and issues Item 232 155 107 348
Summary of Auditing of SINOMACH Headquarters in 2008-2011
Summary of Auditing of Subordinate Enterprises in 2008-2011
Indicator Unit 2008 2009 2010 2011
Number of audited items of economic responsibility Item 99 110 94 152
Number of audited engineering projects Project 735 683 489 674
Number of proposed auditing suggestions Item 947 919 1004 1232
management. In the past two years, the Group has organized
and conducted the tracking inspection on the implementation of
auditing opinions on economic responsibilities. In 2010, it inspected
41 auditing opinions in 8 entities; 76% of such opinions had been
materialized and 24% were being materialized.
SINOMACH has also actively pushed ahead the building of auditing
systems and teams, reinforced work-related communication and
exchange among auditing departments and personnel at all levels,
and promoted the publicity of internal control and auditing rules.
2. Auditing
According to the requirements of the goal of putting “the Group’s
internal auditing work system under centralized and unified operation”
proposed by the Meeting of Central Enterprises on Internal Auditing
Work, SINOMACH has well handled the transformation of the mechanism
for internal auditing organizations from dispersed management to
centralized management, set up the auditing work center and formulated
the Temporary Measures of China National Machinery Industry
Corporation for the Management of the Auditing Work Center, thus
providing the organizational and HR guarantee for reinforcing auditing,
expanding the scope of auditing and improving auditing quality. To
realize the auditing work, the Group conducts annual on-site tracking
inspections on the implementation of the auditing opinions on economic
responsibilities for the previous year and verifies the corrective measures
and their results item by item.
In 2010, focusing on risk control and relying on the building of the
auditing system, SINOMACH displayed the functions of auditing in
preventing, revealing and withstanding risks and fully revised the
original Regulations on Auditing of Economic Responsibilities During
Term of Office and the Operation Guide in the procedures, contents
and report of auditing. Its subordinate enterprises newly established,
revised and improved 51 auditing rules during the year to promote the
standardization of internal auditing and strengthen corporate operation 2010 SINOMACH Auditing Work Meeting
53
Economic Development 2011 Social Responsibility Report
SINOMACH’s New Developments in IT Application Construction Work in 2011
SINOMACH was classified by the State-owned Assets
Supervision and Administration Commission of the
State Council (SASAC) as Level B during the IT process
of SASAC SOEs, which has increasingly enhanced
the support of IT to SINOMACH’s administration and
business operations任
At the corporate level, SINOMACH
announced its information development
plan for the 12th Five Year Plan Period,
which defines the goal, direction and key
areas of work for the next stage任
SINOMACH has achieved submission of
project management and operational
statistics level by level, and increased
the t ime l i nes s and accu racy o f
information.
3. Combating Corruption and Upholding Integrity
Firmly focusing on the center of production, scientific research and operation and on the overall
situation of reform, development and stability and giving priority to promoting the building
of the punishment and prevention system, SINOMACH has promoted the implementation of
the responsibility system of combating corruption and upholding integrity, deepened efficiency
supervision, conducted special supervision and inspection, reinforced publicity and education in
combating corruption and upholding integrity and played an active role in accomplishing the
corporation’s leap-forward development.
In 2010, SINOMACH revised the Tour Inspection Work Measures (for Trial Implementation) of the
CPC Committee of China National Machinery Industry Corporation and the Efficiency Supervision
Work Measures of China National Machinery Industry Corporation, laid emphasis on institutional
construction and constantly improved the building of the punishment and prevention system.
To deepen efficiency supervision. At key places, key links and important posts, the Group
strengthens efficiency supervision. It has carried on the work of identifying the remarkable
problems in the field of project construction, improved the reporting and complaint system,
made public the reporting telephone hotline for the special campaign to correct the remarkable
problems in the field of project construction and set up a reporting mailbox.
To carry on special supervision and inspection. The Group thoroughly carried out the special
work of correcting the remarkable problems in the field of project construction, formulated and
circulated the Implementation Plan of SINOMACH for Carrying out the Special Work of Correcting
the Remarkable Problems in the Field of Project Construction and other related documents, and
reinforced the awareness of and institutional guarantee for standardizing project management.
To strengthen publicity and education in combating corruption and upholding integrity. The Group
carried on the publicity and education mainly in the Rules for Clean Administration and Some
Regulations. During the year, it carried on the clean practitioner education at the two sessions of
training classes for newly appointed leading cadres and the headquarters’ employees and 102
persons received the training. The subordinate enterprises organized the learning in various ways,
including the organization of 260 lectures attended by 7626 leaders and central figures at all
levels. The Group conducted 284 lectures of caution and case-based education and 12,920 leaders
at all levels and employees at key posts participated in the activities.
2010 Discussion and Commendation Meeting on
Discipline Inspection Work
IT application represents the important means of improving the efficiency of modern corporate
management. SINOMACH has quickened the pace of its IT application construction and, focusing
on improving the Group’s management and control ability, management level and efficiency,
steadily pushed forward the IT construction work.
(VI) Promoting IT Application Construction
54 China National Machinery Industry Corporation
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Independent Innovation 2011 Social Responsibility Report
Forging a Technology-Based Enterprise
Independent Innovation
Technical innovation constitutes
t h e i m p o r t a n t s u p p o r t f o r
t r a n s f o r m i n g t h e m o d e o f
corporate development and also
the inevitable choice for becoming
stronger and better. SINOMACH
persists in taking the road of
innovation-driven development to
optimize the allocation of science
and technology resources, make
more investment in sc ientif ic
r e s e a r c h a n d d e v e l o p m e n t ,
deepen the reform in scientific
and technological management
mechanisms, perfect the scientific
and technological innovation
system, accelerate the course of
industrialization of science and
technology, foster the contingent
of science and technology talents,
p romote the fo rmula t ion o f
industrial standards, strengthen
the protection of intel lectual
property rights, constantly increase
the contributions of technical
progress to the Group’s growth of
benefits, and become the leader of
Chinese machinery and equipment
manufacturing technologies.
56 China National Machinery Industry Corporation
SINOMACH gradually perfects the scientific and technological innovation system that adapts to the new situation. According to the actual conditions,
it has perfected the scientific and technological innovation system guided by the strategy, centering on subordinate enterprises and oriented to the
market, shaped the system of tracking the international technology frontier in the field of machinery and equipment, and striven to get national
support in policy and capital.
SINOMACH has established the technological innovation system oriented to the market and fused with “production, learning, research, trade
and finance”. Its internal system consists of three levels, namely, the strategy decision-making level, strategy implementation level and product &
technology development level, and its extensive system is mainly composed of industrial technology innovation alliances, strategic cooperation for
joint tackling of key problems and so on.
Reinforce the construction of scientific research and service platform. The Group owns the leading R&D and system integration capabilities in
the fields of heavy-duty machinery, power station equipment, general petrochemical equipment, machine tools, automotive engineering and
environmental protection equipment. In 2010, it set up the Central Research Institute to adapt to the development needs in the new period and
realize its involvement in global competition in sustainable development and at higher levels.
SINOMACH Symposium on Technological Innovation and Sustainable Development
Improving the Scientific and Technological Innovation System
I.
Build Up Three Platforms Ful�ll Four Tasks
1.Platform for dovetailing national science and technology
programs.
2.Platform for absorption, cultivation, exchange and
training of high-end talents.
3.Platform for making full use of the Group’s various
internal and external resources of science and technology.
1.Carry on strategic research of domestic and foreign technical
development within the Group’s line of main businesses.
2.Carry on the research of forward-looking and frontier technologies,
key bottleneck technologies and common technologies that support
industrial development.
3.Carry on the research of the technologies for emerging industries of
strategic importance to lay the technical foundation for the incubation of
new industries.
4.Carry on the work of customizing R&D technical services for the
Group’s subordinate manufacturing enterprises.
Main Functions of the Central Research Institute - Building Up Three Platforms and Fulfilling Four Tasks
57
Independent Innovation 2011 Social Responsibility Report
8 National-level
engineering (technology)
research centers
5 National
corporate technology
centers
4 Corporate
national key
laboratories
8 National innovation-oriented
enterprises
6 National
productivity promotion
centers
40 National
standardization technology
committee
14 Postdoctoral
workstations
Scienti�c Research Institutes Subordinate to SINOMACH
Picture of the Industrial Base (completed project) of Jinan Foundry & Metalforming Machinery Research Institute Co., Ltd. subordinate to SINOMACH
58 China National Machinery Industry Corporation
Actively undertaking national scientific research projects. The year
2010 was a crucial year for jointly tackling a series of national
projects including a Key National Science and Technology Project
and a National Science and Technology Support Program. In 2010,
SINOMACH won 222 scientific research achievements at provincial
and ministerial levels or above, including 1 Award for National
Scientific and Technological Progress, 90 Awards for Scientific and
Technological Progress and 94 awards for exploration and design.
In 2011, SINOMACH newly added 72 national scientific research
projects with funds of RMB 0.22 billion; and a great number of
new technologies and products were successfully developed and
popularized in application.
By 2020, the Group will remarkably enhance its independent innovative capabilities, own a group of major high-end technical products with independent intellectual property rights and foster a group of technology-oriented enterprises with international competitiveness. The rate between the Group’s technical investment and income will be up to 2.5%, of which the rate of technical investment against income will be up to 8-10% for R&D enterprises and up to 3-5% for manufacturing enterprises, and project contracting enterprises and trade and service enterprises will gradually increase their investment in science and technology so as to gradually increase the said rate. The Group will remain at an advanced level among central enterprises in the scientific and technological progress indicators such as annual average applications for patents, annual average excellent achievements of various kinds at provincial and ministerial levels or above, and the commercialization rate of scientific achievements, and constantly enhance the guiding role in the development of the Chinese machinery industry.--Development Strategy of China National Machinery Industry Corporation
(2011-2020)
Increase investment in science and technology. Centering on the main business sectors, SINOMACH pushes ahead the effective integration of
scientific and technological resources, supports investment in scientific research projects with earmarked science and technology development fund
and provides sufficient fund guarantee for common, proprietary and unique technologies. In 2011, the Group invested RMB 3.5 billion in science and
technology, an increase of 17% on a yearly basis.
SINOMACH’s Investment in Science and Technology in 2007-2011
Income from Principal Operations of SINOMACH’s Institutes in 2007-2011
Profits of SINOMACH’s Institutes in 2007-2011
Unit: RMB100 million Unit: RMB100 million Unit: RMB100 million
13.9
20.421.7
3035
2007 2008 2009 2010 2011
7.54 7.18
9.8
13.5
16.8
2007 2008 2009
93.7105.9
131.6
176.3
225.1
2007 2008 2009 2010 2011 2010 2011
59
Independent Innovation 2011 Social Responsibility Report
Scientific research strength constitutes the foundation and guarantee for
attaining the Group’s goal of “being domestically the strongest in overall
capabilities”. To solve the problem that technology is out of joint with
industry, SINOMACH has provided major support for the high-tech products
featuring advanced technical content, promising development prospects,
large market capacity, strong promoting effect and leading technical
strengths, rapidly industrialized scientific achievements and compensate
technological innovation, forming the benign interaction between scientific
innovation and industrialization.
The significant project of “Multi-Purpose Agricultural Equipment &
Facility Development” under the National Science and Technology
Support Program organized and implemented by the Chinese Academy
of Agricultural Mechanization Sciences (CAAMS) subordinate to
SINOMACH during the “11th Five-Year Plan” period realized the
integration of technology, achievement, industry and popularization
and their rapid zero-distance dovetailing and was successfully checked
and accepted.
“Multi-Purpose Agricultural Equipment & Facility Development” Project
High-end Numerically Controlled Complete Metalforming Equipment Industrial Base of Jinan Foundry & Metalforming
Machinery Research Institute Co., Ltd. subordinate to SINOMACH
General Assembly Workshop for Numerically Controlled Turret Punch Press
Promoting the Development of Independent Innovation
Currently, SINOMACH owns 28 national Class-A institutes and their
industrialization development represents the key path for promoting the
Group’s expansion toward the high end of the value chain in the equipment
manufacturing industry and realizing the dovetailing between technology
and capital. While promoting the technical upgrade of industrial structure
and bringing along the common development of related industries and
SMEs, SINOMACH has enhanced the product research and production level
of such institutes and fulfilled their transformation from single institutes
to modern new enterprises oriented toward high-technology products.
By constantly innovating, facing high-end markets and making the core
business of equipment manufacturing bigger and stronger, it has taken on
the responsibility for revitalizing the Chinese machinery industry.
In 2010, CAAMS and Hefei General Machinery Research Institute
subordinate to SINOMACH won the Excellent Team Award for
implementation of the National Science and Technology Program during
“11th Five-Year Plan” period; and CAAMS, as the Director-General
member of the Technical Innovation Strategy Alliance of Agricultural
Equipment Industry, won the Excellent Organization Award for
organization and management of the National Science and Technology
Program during the “11th Five-Year Plan” period.
II.
cases
60 China National Machinery Industry Corporation
Some Important Products or Projects Great Significance
Key Technologies for Control and Evaluation of Long-Period Operation Risks in Large Petrochemical Device System and Their Application in Projects
Second Prize for National Science and Technology Progress Award
Key Technical Equipment for Harvesting Corn Seeds and Straw Second Prize for National Science and Technology Progress Award
Studies on Key Technologies for Time-Dependent Analysis and Control of the Process of Complex Steel Structure Construction and Their Application in Projects
Second Prize for National Science and Technology Progress Award
Agricultural Equipment Technical Innovation Project Second Prize for National Science and Technology Progress Award
Project of “Research on Technologies and Devices for Joint Harvesting of Sweet Sorghum Stalks and Spikes
Key project subject for research on modern agricultural smart equipment and technology under National High-Technology Research and Development Program (863 Program)
High-Performance NC Discharge Milling Technology and Equipment with Special Materials
A project under National High-Technology Research and Development Program (863 Program)
Power Thick-Plate NC Laser Cutter and 3D NC Laser Cutter Major National Science and Technology Project “High-Grade NC Machine Tool and Basic Manufacturing Equipment”
Set Equipment for Near Net Shaping of Sand Casting Major National Science and Technology Project “High-Grade NC Machine Tool and Basic Manufacturing Equipment”
Large-Scale NC Radial-Axial Annular Rolling Machine Major National Science and Technology Project “High-Grade NC Machine Tool and Basic Manufacturing Equipment”
High-Performance Cutting Tools for Key Parts of High-Speed Trains
A key project under National Science and Technology Support Program during the “11th Five-Year Plan” period
R&D and Application of Key Technologies for Roller Bend Forming
First Prize for Science and Technology Award of the Chinese Machinery Industry
4NC Diesel Engine Second Prize for Science and Technology Award of the Chinese Machinery Industry
“Shenzhou 8” space craft realized the rigid connection with the target craft of “Tiangong 1” and they combined into a complex, which indicated the
first successful docking in China’s manned space flight. This marked that China had made a milestone step forward in its expedition of exploring outer
space. SINOMACH’s three affiliates, Luoyang Bearing Science and Technology Co., Ltd., Lanpec Technologies Limited and Guilin Electrical Equipment
Scientific Research Institute assisted the “kiss” between “Tiangong” and “Shenzhou 8” in outer space, which again displayed their own technological
strengths and their supporting role in significant national science and technology projects.
SINOMACH Assisted “Tiangong” and “Shenzhou 8” to Kiss in Outer Space
“Fixed Table Five-Axis Linkage Precision NC EDM Machine Tool” developed in a major science and technology project.
SINOMACH Assisted “Tiangong” and “Shenzhou 8” to Kiss in Outer Space
cases
61
Independent Innovation 2011 Social Responsibility Report
A first-class enterprise should have first-class employees. SINOMACH
exerts its efforts to build a high-quality sci-tech talent contingent that
is suitable for the Group’s development and is structurally reasonable.
According to the Plan of China National Machinery Industry
Corporation for Building a High-Level Talent Contingent (2005-2010),
the Group worked out the Temporary Measures of China National
Machinery Industry Corporation for Management of High-Level
Science and Technology Talents to provide institutional guarantee for
the building of the sci-tech talent contingent in selection, incentive,
management and other aspects.
By the end of 2011, the Group had 31144 professional technicians
including 7498 intermediary and senior professional technicians and
11298 intermediary ones. Currently the Group has 2 academicians of
the Chinese Academy of Engineering, 962 persons enjoying special
government allowances, 17 national candidates for the “Hundred
Million Project” and 24 young and middle-aged experts with
outstanding contributions.
In 2010, Yang Ladao, Deputy Chief Engineer of China National
Heavy Machinery Research Institute Co., Ltd. (CNHMRI)
subordinate to SINOMACH, won the honorable title of “National
Science and Technology Worker”. Yang is one of the subject
leaders in continuous casting of CNHMRI, an expert enjoying
special government allowances of the State Council, a Level I-II
candidate for the National Hundred Million Talent Project and an
expert with outstanding contributions in Shaanxi Province.
Yang Ladao Won the Title of “National Excellent Science and
Technology Worker”
Fostering Science and Technology Talent Contingent
By the end of 2011, the SINOMACH had hosted or participated in
the formulation and reformulation of more than 1709 industrial
standards including more than 1018 national standards, which dealt
with machinery, electronics and many other fields. This has improved
product quality and technical services, effectively standardized
industrial development, provided technical support for industrial
product quality control and offered strong guarantee for further
accelerating the localization of China’s major equipment.
By the end of 2011, SINOMACH had part ic ipated in formulating and reformulating more than 0000 industrial standards
By the end of 2011, SINOMACH had participated in formulating and reformulating more than 0000 national standards
1709 1018Item Item
III.
62 China National Machinery Industry Corporation
As a scientific research unit falling within the
technology, standard and quality industry, this
institute has ten national standard committees and
has played an important role in deeply progressing
China’s standardization. In 2010, it won the title of
“Key High-Technology Enterprise for National Torch
Program”.
Hefei General Machinery Research Institute subordinate to SINOMACH Made
Notable Achievements in Standardization Work
SINOMACH vigorously supports its subordinate enterprises to participate in the work of formulating national and industrial standards. It has
deliberated and worked out the Implementation Measures (for Trial Implementation) of SINOMACH for Subsidizing the Work of Formulating and
Revising Standards, according to which it subsidized 21 subordinate enterprises to prepare 477 standards with a total subsidy of RMB1.643 million
in 2011. Meanwhile, by actively participating in symposiums on industrial standards, the Group promptly provided enterprises with information on
industrial standards and made positive contributions to the industrial and national standardization work. In 2010, the Group and its subordinate
China IPPR International Engineering Corporation and China United Engineering Corporation were appraised as Advanced Collectives in National
Engineering Construction Standardization and five comrades including President Xu Jian were appraised as Advanced Individuals in National
Engineering Construction Standardization.
Promoting the Formulation of Industrial Standards
The standard project of “General Specifications for JB/
T10784-2007 Mechanical Dry Power Compacting Presses” of
Jinan Foundry & Metalforming Machinery Research Institute
Co., Ltd. subordinate to SINOMACH won the 2010 China
Contribution Award for Innovation on Standards.
IV.
cases
63
Independent Innovation 2011 Social Responsibility Report
Corporate competition is increasingly changing from products and services to technologies
and it becomes more and more important to protect intellectual property rights (IPR).
SINOMACH vigorously promotes the IPR strategy focusing on patents. It enhances the
awareness of patent and IPR protection, reinforces the patent application and utilization,
and implements the rewarding policies for authorized patents. Taking the chance of
launching the third group of IPR pilot units and focusing on patents, the Group constructed
the IPR management and protection system, established the incentive mechanism for
effectively using IPR system to promote scientific and technological innovation and brought
into play the guiding role of IPR in science and technology management.
In 2011, the Group obtained 658 authorized patents, including 133 invention patents.
SINOMACH 2007-2011
Authorized Patents
That it is hard to obtain evidence for infringement upon IPR
and it is expensive to safeguard IPR is the common view of
many enterprises on IPR protection. In 2010, SUMEC Group
Corporation subordinate to SINOMACH made concerted
efforts with the customs and judicial departments and
successfully captured at Customs a batch of oil generators
that counterfeited the trademark of “SUMEC” and were to
be exported to Nigeria. This safeguarded the image of “Made
in China” and promoted the development of the market
economy.
Safeguarding Trademark Rights, SUMEC Captured “Counterfeiter”
Strengthening the Protection of Intellectual Property Rights
Unit: Item
Invention Patents
“Agr i cu l tu ra l Equ ipment Techno logy Innovation Project” won the National Science and Technology Progress Award in 2011
V.
cases
625
658
104133
432
9135
336
20
205
2007 20072008 20082009 20092010 20102011 2011
64 China National Machinery Industry Corporation
65
Employee Development 2011 Social Responsibility Report
Build, Share and Grow Together
Employee Development
SINOMACH adheres to the concept
that “development by employees,
development for employees and
development achievements are
shared by all employees” and
materially achieved the goal of
putting people first and undergoing
harmonious development. The
Group sticks to the strategy of
strengthening enterprises through
employees , g i ve s p r io r i t y to
development of human resources,
improves employees’ qualities and
capabilities, ensures employees’
rights and interests and cares for
the wellness of the employees;
improves a series of rules and
systems focusing on distribution
systems and shapes the mechanism
for enterprises and employees to
share interests. It uphold fairness
and justness to make all employees
equally and widely engaged in the
Group’s reform and development.
We pool ta lents through the
concept of common development,
guide them through correct values
and foster them through the
growing business development.
66 China National Machinery Industry Corporation
SINOMACH strictly observes the Labor Law of the People’s Republic of China, the Labor Contract Law, the Regulations on Collective Contract and
other relevant laws and regulations. In 2011, 100% of regular employees signed the labor contract. We insist that all employees be equal, ensure that
no employees are discriminated against due to their difference in race, gender, age and other factors, prohibit the use of child labor and oppose forced
labor in all its forms.
Focusing on promoting the building of the system of employees’ representative meetings and making public the corporate affairs, SINOMACH actively
provides for all the employees’ rights including democratic participation, democratic management, democratic supervision and democratic decision
making, constantly perfects the system of equal consultations and collective contracts and establishes and improves the interests coordination
mechanism. The Group strengthens the supervision and inspection of the performance of collective contracts to enhance enterprises’ consciousness of
and initiative in performing such contracts. The Group has had 100% of its subordinate units at all levels set up trade union organizations to reinforce
consultations and communications between enterprises and employees. It constantly pushes forward the corporate democratic management work
with the employees’ representative meeting at the core to guarantee employees’ right to participate in making major corporate decision. The Group
persists in making corporate affairs known to the public and promotes democratic management and democratic supervision.
Protecting Employees’ Rights and Interests
SUMEC Group Corporation
subordinate to SINOMACH
W o n t h e H o n o r a b l e
Title of “National Model
Enterprise for Harmonious
Labor Relations”
2nd Representatives Congress of SINOMACH Trade Union
I.
cases
67
Employee Development 2011 Social Responsibility Report
CPMIC Pushed Forward the Work of Corporate
Democratic Management
Chinese Academy of Agricultural Mechanization Sciences subordinate to SINOMACH Holding the Second Session of the Eighth Employees’ Representative Meeting in 2011
China Perfect Machinery Industry Co., Ltd. subordinate to SINOMACH
has strongly advanced the work of democratic management, democratic
decision making and democratic supervision and, in 2010, was appraised
as an Advanced Unit of Shanghai (2009-2010) in Making Corporate Affairs
Pubic and in Democratic Management by the Leading Group of Shanghai.
SINOMACH adheres to the principle of combining security and incentive,
gradually improves the corporate system of remuneration and benefits
and fully carries on the work concerning corporate annuity. 50% of its
enterprises have set an annuity plan and participants in such plans have
accounted for 34.4% of all employees. The benefits of “five types of
insurance and one reserve” have covered 100% of employees.
68 China National Machinery Industry Corporation
Adhering to the guideline of combining internal and external training and long
and short training periods, as well as to the principle of combining pertinence
and levels, SINOMACH works to improve the educational training system, sets
up the cultivation and education platform and optimizes and integrates all kinds
of educational training resources. Through systematic and diversified forms
of training such as university-enterprise cooperation, joint running of schools,
international training, post rotation and advanced studies on special subjects,
SINOMACH synchronously carries out its all-directional, three-dimensional and
multi-level mode of training and education.
By maintaining smooth channels for continuing technical training and academic
education, SINOMACH creates the opportunities and atmosphere for continuous
learning to fully promote employee development. It sets up the training system
for all employees including leaders, managers, professional technicians and
highly-skilled personnel to increase employees’ participation rate and training
quality and enhance employees’ business skills, knowledge structure, executive
ability and innovative awareness.
In 2011, the Group hosted about 700 person-time training at executive level,
organized 2 sessions of foreign training projects with 23 trainees and successively
participated in the subjects of corporate IT and law in the project “SINOMACH
Senior Operation Managers Going to EU to Learn Courses of Modern Corporate
Operation Management” held at EU Headquarters in Brussels, Belgium and in
the project “SINOMACH Senior Operation Managers Going to the US to Learn
Courses of Modern Corporate Operation Management” at US Stanford University.
Reinforcing Employee Training
Organizing a Trip to Beijing Hyundai Automobile Corporation for Learning and Visit
II.
SINOMACH Holding the Second Session of the Training Class for New Employees in 2010
69
Employee Development 2011 Social Responsibility Report
China CAMC Engineering Co., Ltd. subordinate to
SINOMACH Actively Organizing Employee Training
China Perfect Machinery Industry Co., Ltd. under
SINOMAC arranged training for employees according
to the Employee Training Plan. Its subordinate China
Sinogy Electric Engineering Co., Ltd. invited a professor-
level senior engineer to teach the FIDIC clause applied in
international engineering.
cases
70 China National Machinery Industry Corporation
China Perfect Machinery Industry Co., Ltd. subordinate to SINOMACH invited foreign lecturers to teach knowledge of
international business etiquettes.
Of the three participants selected by SINOMACH for “NC
Lather Worker Competition of Central Enterprises”, one
employee won a Bronze Medal, one ranked among the
Top 50 and the other received an Honorable Certificate
for Excellence.
China Automotive Industry Engineering Corporation
subordinate to SINOMACH carried out various forms of
educational training for new employees.
cases
71
Employee Development 2011 Social Responsibility Report
SINOMACH innovates on the talent recruitment mechanism, actively
develops and utilizes domestic and international talent resources and
attracts a great number of high-level interdisciplinary talents.
SINOMACH maintains a smooth path for employee career development,
advocates equal job opportunity and uses competition for placement in
100% of positions. Its headquarters carries out public position competitions
every three years to realize fair competition and scientific selection
processes.
SINOMACH adheres to the philosophy that “development decides
employment and employment submits to development”. Through
theoretical training and other measures, it has fostered a sufficient number
of young cadres well-structured and with excellent qualities. It strengthens
the building of entrepreneur contingents and operation management
teams to build an international, professional and learning-oriented team of
entrepreneurs; and optimizes the knowledge structure, age structure and
specialty structure of operation management to foster management teams
composed of the “old, middle-aged and young” people.
SINOMACH emphasizes the building of a professional talent contingent.
Currently the Group has 845 technical professionals at the national level,
and the total number of profession technicians increased by 69.5% during
the “11th Five-Year Plan” period.
SINOMACH pushes forward the building of a highly-skilled talent
contingent, strengthens the training of highly-skilled professional employees,
continuously carries out various kinds of employee skills competitions and
technical contests and actively selects employees to participate in various
national-level employee skills competitions to develop a potent atmosphere
of learning and practicing skills and to improve employees’ business skills in
an all-round manner.
Promoting Employee Development
With the aim of building an assessment system combining strategic
orientation and performance orientation, SINOMACH establishes a
salary distribution system that keeps consistent in responsibilities, rights
and benefits and combines incentives and restrictions. It carries out the
annual remuneration assessment system to closely peg employees’ salary
to corporation economic benefits; and through the guidance of income
distribution policy, realizes the benign interaction between performance
assessment and resources allocation.
In 2010, SINOMACH signed the Yearly Operation Goal Responsibility
Document with the operators of its 47 subordinate enterprises and revised
the Measures for the Management of Enterprise Operator’s Operating
Performance Assessment to promote the common and sustainable
development of enterprises and entrepreneur teams through rules.
SINOMACH values the development and inspiration of high-technology
talents. In 2009, it appraised and selected the first 65 high-technology
talents in the whole Group and built the high-technology talent contingent
with academicians, experts and masters at the core to inspire talents’ vigor
and impetus for innovations.
SINOMACH encourages its subordinate enterprises to set up leading
organizations for performance assessment to provide organizational
guarantee for performance. 84% of the subordinate enterprises have set
up such leading organizations and some of the subordinate enterprises
utilized the strategy-oriented performance assessment management
tools and methods such as balanced scoring cards and key performance
indicators. The Group’s headquarters sets up the linkage mechanism under
which the remuneration of employees at the headquarters is pegged to
the remuneration of subsidiaries’ employees and with the minimum salary
of the enterprises of SINOMACH in most financial difficulty to constantly
improve work efficiency and the level of management.
Senior Technical Professionals Intermediary Technical Professionals
Primary Technical Professionals
Unit: Person
SINOMACH 2007-2011
III.
5315 5857 61006808
9508 9188
7146
749810916
1234810299
11298
6246
87098929
2007 2007 20072008 2008 20082009 2009 20092010 2010 20102011 2011 2011
72 China National Machinery Industry Corporation
SINOMACH employee won first place in manual argon arc welding at the 2010 International Welding Competition.
In 2010, the “Pressure Vessel and Pipeline Safety Engineering Technology” team of Hefei General Machinery Research Institute
subordinate to SINOMACH won the title “National Advanced Collective of Technological Professionals” and was cordially received by
Party and state leaders at the Great Hall of the People. This was the first time that SINOMACH was included in the national core appraisal
list and won the award.
On September 16-18, 50 delegations from 49 subordinate
enterprises gathered in Beijing to participate in the “Fourth
Accounting Knowledge Competition of SINOMACH” sponsored by
SINOMACH and Chinese Accounting Society Machinery Branch.
This accounting knowledge competition aimed to promote
SINOMACH’s financial and accounting personnel to strengthen
professional qualities and promote its subordinate enterprises to
set up advanced and scientific financial management systems so
as to raise the financial management of SINOMACH to a higher
level.
In 2010, SINOMACH held its first Welding Competition and over
60 entrants with 16 delegations from 10 subordinate enterprise
participated in it, which inspired the employees’ enthusiasm for
learning technologies and skills.
Awards Won By SINOMACH in Various Skills Competitions
SINOMACH Successfully Held the Fourth Accounting Knowledge Competition
cases
73
Employee Development 2011 Social Responsibility Report
SINOMACH always values care and concern for each employee, seeks to establish a multi-
level and multi-subject employee support system and manifests its individualized concern for
employees. In terms of in-service employees, retired employees and employees in financial
difficulty, it has carried out diversified support endeavors based on employees’ needs to enhance
corporate cohesion and construct a harmonious enterprise.
With the development of enterprise and the pace of work quickening, employees’ work pressure
is gradually increasing. SINOMACH fully realizes the mental and physical stress caused by work
pressure to employees and encourages them to participate in various sports activities to take
exercise and build up a strong constitution; and actively pushes ahead the building of clubs and
associations based on interest groups to display employees’ hobbies and specialties, enrich their
leisure time and help them achieve a balance between work and life. The Group actively sets up
various culture, sports and entertainment associations and organizes various sports competitions
to unite, inspire and bring together employees and foster a harmonious and progressive
corporate culture atmosphere.
SINOMACH fully develops a support fund, works out the fund management measures, uses
the funds allocated by the Group and the donations from subordinate enterprises, employees
and people from all walks of life to subsidize social welfare undertakings and carries on public
welfare events that closely center on the three core areas of employees in financial difficulty
seeing the doctor, their children’s education and life assistance. By reinforcing the management
and operation functions of the Support Fund Management Committee, the Group has made the
work of assisting employees in financial difficulty regular, rule-based and standardized.
SINOMACH highly values the help and support for employees in financial difficulty, further
improves the effective mechanisms for assisting and giving relief to those in distress, sets up
the records of internal employees in difficulty, enriches the scope and content of assistance
and does its best to help the families of employees in difficulty to get through their difficulties,
supports employees in difficulty to get rid of their burdens in seeing the doctor and ensuring
their children’s education and development. It persists in going deep into the grassroots units
and making more communications to remain in touch with the actual conditions of employees
in difficulty; and enthusiastically carries out enlivening events and sends its warmth and support
directly to employees in difficulty.
Emphasizing Employee CareIV.
Board Chairman Ren Hongbin Visits Enterprises in Xinjiang Uygur Autonomous Region
74 China National Machinery Industry Corporation
SINOMACH, which values and carries
forward the fine tradition of respecting
and cherishing the elderly, held the “Old
Comrades’ Symposium on the Seniors
Day 2010” to understand needs and
hear constructive opinions.
In 2010, China Foma Machinery (Group) Co., Ltd. subordinate to SINOMACH set up the “Foma Loving Care Fund”, worked out the
Measures for Management of the Loving Care Fund of China Foma Machinery (Group) Co., Ltd, raised a total of RMB125,410 improved its
mechanisms for assisting those in financial distress and subsidized 33 employees in financial difficulty to promote corporate harmony.
On June 1, Children’s Day, 2010, China
CAMC Engineering Co., Ltd. organized
the world parent-child event to help
employees balance work and family
commitments and build harmonious
and warm families.
Foma Loving Care Fund
Cantata of China IPPR International Engineering Corporation subordinate to SINOMACH
The Basketball Team of China IPPR International Engineering Corporation subordinate to SINOMACH won the basketball championship among (Beijing) exploration and design units.
75
Employee Development 2011 Social Responsibility Report
In 2011, when major changes occurred in the security situation of Libya,
the residential and infrastructure construction project of SINOMACH for
the city of Zawiya was under way and the lives of 298 on-site personnel
were seriously threatened. Under the unified leadership of the SASAC of
the State Council, SINOMACH gave first priority to the personal security
of overseas personnel, actively went into deployment and response and
swiftly launched the emergency response plan. Through the Ministry
of Foreign Affairs, the Ministry of Commerce and other government
departments and with the aid of cooperative partners, contractors
and international professional rescue organizations, it participated in
the action to permit the orderly withdrawal of personnel from Libya.
Meanwhile, through personal visits and phone calls, the Group actively
eased the concerns of the families of the trapped personnel. Mother-Daughter Reunion
SINOMACH Welcomes Families Home
cases
76 China National Machinery Industry Corporation
77
Work Safety 2011 Social Responsibility Report
Stay Vigilant in Peace Time in Consolidating the Foundation
Work Safety
Work Sa fe ty cons t i tu te s the
important guarantee for achieving
s u s t a i n a b l e d e v e l o p m e n t .
SINOMACH earnestly implements
the requirements of the national
laws, regulations and policies on
work safety, always adheres to the
philosophy of putting people first
and prioritizing safe development,
improves safety management
systems, reinforces work safety
management, perfects emergency
response systems, strives to foster
the atmosphere of safety culture
and commits itself to forging a
substantially safe enterprise.
78 China National Machinery Industry Corporation
Safety in the Workplace at SINOMACH during 2006 to 2011
In 2011, SINOMACH and its subordinate enterprises set up the leading
organizations for work safety, the supervision and management
organizations for work safety and the response coordinating
organizations for work safety and enlisted full-time (and part-
time) work safety management personnel. In light of their business
characteristics and personnel changes, the companies readjusted
and enriched the personnel of all management organizations, further
specified their management functions and reinforced work safety
management capabilities to provide organizational guarantee for the
Group’s safety production management work.
Improve the Work Safety System
SINOMACH Work Safety Organizations
Accident Type UnitYear
2006 2007 2008 2009 2010 2011
Serious Accident Accidents
Incidents 0 0 0 0 0 0
Accident Fatality Rate Per 1000 Employees
‰ 0.0457 0.0175 0 0.0114 0.0236 0.118
Death Toll Individuals 2 1 0 1 2 1
Number of Seriously Injured Persons
Individuals 2 4 2 2 0 2
Number of Persons Suffering Minor Injury
Individuals 75 81 72 45 48 45
Unit: Incidents Unit: ‰
Total Number of Workplace Accidents Accident Serious Injury Rate Per Thousand Employees
Leading Organization for
Work Safety
Supervision and Management
Organization for Work Safety
Response Coordinating
Organization for Work Safety
I.
(I) Setting Up Work Safety Organizations
0.0457
0.0701
0.0230 0.02280
0.0237
2006 2007 2008 2009 2010 2011
7974
86
48 50 47
2006 2007 2008 2009 2010 2011
79
Work Safety 2011 Social Responsibility Report
In 2010, SINOMACH’s work safety work was fully affirmed by the
SASAC and the State Safety Supervision Administration. The State
Safety Supervision Administration specially sent a “thank you letter”
to positively highlight the active efforts and important contributions
that SINOMACH had long made for work safety.
SINOMACH Was Fully Affirmed in Work Safety Work
SINOMACH highly values the building of a work safety system and has successively released the Work Safety Management Measures of
China National Machinery Industry Corporation, the Overall Response Plan of China National Machinery Industry Corporation for Work Safety
Accidents and Overseas Sudden Events and other rules, regulations and measures to standardize, supervise and instruct the work safety work
of its subordinate enterprises.
In light of their specific conditions, the Group’s subordinate enterprises vigorously carried out the activities of formulating rules and
regulations. Proceeding from overall safety management, personnel safety management, equipment and facility management and
environmental and occupational health management, they gradually improved various rules and regulations for work safety and operating
procedures for job positions to standardize and institutionalize work safety management.
Summary of Work Safety Accidents and Sudden Events
Chart of Hidden Safety Dangers at Construction Site
(II) Working Out a Work Safety Management System
cases
80 China National Machinery Industry Corporation
SINOMACH adheres to the guideline of “Safety First, Prevention Foremost and Overall Control”, persists in production operation according to laws
and regulations and reinforces responsibility implementation and investigation. It constantly expands investment in work safety and improves its
capabilities of work safety guarantee, continuously strengthens basic management and team building, emphasizes and reinforces safety supervision
and inspection to promptly discover and control hidden dangers, and uses all kinds of measures to fully strengthen corporate work safety work.
In 2011, SINOMACH again revised the Work Safety Responsibility Document and the main principals of the Group, and its subordinate enterprises
signed the Work Safety Responsibility Document. All subordinate enterprises broke down and segmented level by level the work safety responsibility
goals and contents, signed the work safety responsibility documents at all levels, resolutely carried out the principle that “whoever is in charge
is responsible”, put in place the work safety responsibilities in all posts and links at all levels and constructed a comprehensive work safety
responsibility system.
According to the requirements of the newly revised Work Safety Management Measures and the Tentative Measures for Assessment of Work
Safety Responsibility Goals, SINOMACH carried out strict assessment of its subordinate enterprises’ work safety work, fed back the main problems
discovered in the assessment and then worked out rectification plans to implement one by one. By taking this chance, it pushed forward all safety
work to fully enhance the Group’s work safety management level.
In the past two years,, SINOMACH has basically remained stable in its overall work safety situation, driven down the total number of accidents,
fatalities, serious and extraordinarily serious accidents as well as the main relative indicators of work safety, achieved zero-occurrence of work safety
accidents at the rather serious level or above and provided guarantee for the accomplishment of all the Group’s operation goals.
Strengthening Work Safety ManagementII.
(I) Realizing Work Safety Responsibility
On November 3-6, 2011, Xu Jian, President of SINOMACH, led a delegation to Indonesia to investigate the projects of INDRAMAYU 3×330MW Power
Plant and AWAR-AWAR 2×350MW Power Plant being constructed by the Group there and made survey and inspection of their progress and work
safety work. During the period, Mr. Xu and his delegation also had a talk with Mr. Iskan, President of Indonesia National Electric Power Corporation, on
relevant cooperation matters. Xie Biao, Vice President of SINOMACH, also attended the investigation and survey.
President Xu Jian Led a Delegation to Indonesia to Investigate \Projects Under Construction
cases
81
Work Safety 2011 Social Responsibility Report
SINOMACH always values the expansion of investment in work safety
to ensure the smooth progress of work safety. To further improve work
safety conditions and create a safe working environment, the Group
and its subordinate enterprises have, according to actual conditions,
constantly expanded investment in work safety, updated or renovated
the existing outdated and backward facilities and equipment with
hidden safety risks step by step and according to plans to ensure their
safe operation and further enhance the substantial safety level.
SINOMACH highly values the work of checking and controlling hidden
dangers, further reinforces supervision and inspection and strictly
supervises all units to realize safety responsibility performance. It
strengthens on-site supervision and inspection, strictly checks and
punishes any acts under the “three violations”, that is, “violating
rules in directing employees, violating regulations in operation
and violating labor disciplines” and substantially puts in place the
personnel’s responsibilities, rectification measures, rectification funds,
rectification time limits and emergency response plans. In 2011,
SINOMACH successively carried out self-inspection, mutual inspection
and supervision and inspection of work safety 14 times.
On September 19-21, 2010, SINOMACH organized relevant personnel as a Joint
Inspection Group to carry on a great work safety inspection of its subordinate
Foundry & Metalforming Machinery Research Institute Co., Ltd. and had exchanges
of experience in work safety management of production and manufacturing
enterprises. The Inspection Group inspected the work safety management files
and production and manufacturing workshops one by one and put forward 6
rectification requirements. JFMMRI carried out the rectification according to the
Inspection Group’s requirements and reported the rectification results to the Work
Safety Department of SINOMACH.
SINOMACH Carried on Work Safety Inspection of Its Subordinate Jinan Foundry & Metalforming Machinery Research Institute Co., Ltd
SINOMACH”s Investment in Work Safety During the
“11th Five-Year Plan” Period
20892.2
Unit: RMB 10,000
Amount of Investment:
5208.1 5982.3
10849.5
14820.0
2006 2007 2008 2009 2010
(II) Expanding Investment in Work Safety (III) Reinforcing Safety Supervision
Management
82 China National Machinery Industry Corporation
According to the actual conditions of work safety emergency response management, SINOMACH has established and improved the relevant
emergency response system that complies with its actual development conditions and features unified leadership, overall coordination, categorized
management, classified responsibility, integration of departments at all levels, and focus on each department’s jurisdiction, to ensure that, after the
occurrence of work safety accidents and overseas sudden events, it can carry out emergency assistance in a swift, effective and orderly way, control
and handle the accidents and events and ensure the safety of personnel and property.
Improving Emergency Response Management Mechanism
Chart of Emergency Response Organization Structure
Communication Liaison Group
Emergency Assistance Group
News Release Group
Logistical Guarantee Group
Plan Management Group
Emergency Response Command Center
III.
(I) Setting Up Work Safety Organizations
Xu Jian, President of SINOMACH, gave instructions for the follow-up work of handling the sudden event in Libya.
83
Work Safety 2011 Social Responsibility Report
According to the corporation’s requirements for work
safety, SINOMACH and its subordinate enterprises have
incorporated the work of emergency response exercises
in the annual work safety work plan, laid down the
exercise plans and work schemes and vigorously carried
out response exercise activities to upgrade the safety
awareness and mutual-rescue abil ity of emergency
response managers and operators and enhance the ability
to respond appropriately to work safety accidents and
sudden events.
This expounds in general the
response guidelines and policies
for accidents and events, the
structure of emergency response
organizations and their response
functions, actions, measures
and guarantee and other basic
requirements and procedures and
it is an integrated document for
responding to various accidents and
events.
Overall Emergency Response Plan Special Emergency Response Plan
SINOMACH Contingency Plan
On-Site Disposition Plan
This is a plan or scheme made for
specific kinds of accidents and
events, danger sources and response
guarantee and has clear rescue
procedures and specific emergency
rescue measures.
This is the emergency disposition
measures made for specific devices,
sites or facilities, and posts.
The Purchase Center Oil Depot of China YTO Group Corporation subordinate to SINOMACH Carrying Out the Exercises of the Emergency Rescue Plan for Major Accidents
To standardize the work of emergency response management and effectively respond to sudden events, SINOMACH has worked out very
effective plans for emergency response management.
(II) Making Plan for Work Safety Emergency Response Management
(III) Actively Carrying on Emergency
Response Exercises
84 China National Machinery Industry Corporation
SINOMACH and its subordinate enterprises regularly conduct work
safety education and training, reinforce the certificate-obtaining
training for work safety management personnel and special operation
personnel and also strengthens the three-level safety education
and training of new employees as well as the safety training of
the personnel who have changed posts or returned to work, so as
to ensure all practitioners have the work safety knowledge and
management ability suitable for their enterprise’s production and
operation activities.
During the event of work safety month, China National Heavy Machinery Corporation
subordinate to SINOMACH made the exhibition board with the theme of “Safe Development,
Prevention Foremost, Check and Control Hidden Dangers and Perfect Management”. In the
form of texts and pictures, it publicized and popularized the common knowledge of work
safety management such as emergency response management, identification of risk sources,
checking and controlling of hidden dangers and common hidden dangers on construction
sites, to enhance employees’ awareness of safety management.
On August 24-27, 2010, SINOMACH held a session of training for work safety management personnel in Beijing jointly with China Work Safety
Science Research Institute which holds Grade-A qualifications for national safety training. This training laid emphasis on such contents as “work
safety technology for architecture construction and supervision and inspection of on-site work safety, cases of typical accidents and emergency
rescue, creation of work safety standards for machinery enterprises, and establishment of occupational health and safety management system
and identification and evaluation of risk sources”. This training improved vocational qualities and operation abilities of work safety management
personnel within the sector of SINOMACH and upgraded the level of work safety management.
China National Heavy Machinery Corporation subordinate to SINOMACH
Carried Out “Work Safety Month” Event
SINOMACH Held a Training for Work Safety Management Personnel
SINOMACH values the building of work safety culture, gradually reinforces the educational training in work safety, strengthens the vocational and
professional development of safety management personnel, constantly pushes ahead the popularization of safety concepts, laws and knowledge and
strives to foster a work safety culture atmosphere among all employees.
Closely centering on the theme of “Safe Development and Prevention
Foremost”, SINOMACH carried out the “Work Safety Month” event
and continued to further check and control hidden dangers for work
safety within the whole Group. This event enhanced work safety
awareness, promoted the building of safety culture, popularized the
laws, regulations and knowledge regarding work safety, reinforced
all employee’s involvement in the full-process and all-directional
checking and control of hidden dangers for work safety, enabled all
enterprises to carry out the work of work safety and achieved rather
positive results.
Fostering Work Safety CultureIV.
(I) Carrying Out the
“Work Safety Month” Event
(II) Strengthening Education and Training
in Work Safety
cases
85
Work Safety 2011 Social Responsibility Report
SINOMACH and its subordinate enterprises value and strengthen the building of professional talent contingents for work safety and incorporate the
training of certified safety engineers for obtaining certificates in the corporate emphases of work safety training, which has effectively improved the
Group’s professional capabilities in work safety management. This endeavor was praised by the State Administration for Work Safety Supervision.
At the national work symposium of certified safety engineers, SINOMACH shared the experience as one of the central enterprises that delivered
speeches. By the end of 2010, the number of certified safety engineers registered in SINOMACH had reached 247, an increase of 49 persons on a
yearly basis.
Project contracting is one of the Group’s three main businesses, and
particularly the foreign project contracting has a bearing on the long-
term development of the Group. The work safety management in project
contracting and construction constitutes the important guarantee for the
smooth progress of a project.
SIINOMACH reinforces and standardizes the work safety management
EPC projects, strengthens the supervision of contractors and has drafted
Safety Management of Construction Projects
the Guiding Opinions on Work Safety Management of EPC Projects of the
Group, which has been officially released and implemented. The guiding
opinions provide definite requirements for the safety matters at every link
in the process of the EPC projects and clearly define the functions of related
personnel. All relevant enterprises have worked out the measures or rules
for work safety management of EPC projects to further put in place the
work safety responsibilities of subcontractors and effectively control the
occurrence of work safety accidents at the subcontractor units.
V.
(III) Improving Practitioners’ Safety Qualities
Xie Biao, Vice President of SINOMACH, Arrived in Indonesia for On-Site Investigation of the Awar-Awar 2×350MW Project
86 China National Machinery Industry Corporation
872011 Social Responsibility Report
Environment-Friendly and Low Carbon to Create Our Future
Environmental Protection and Conservation
Ecological environment is the
foundation for human subsistence
and development. S INOMACH
commits itself to fusing corporate
s t r a t e g i c d e v e l o p m e n t w i t h
environmental protection and
actively gets involved in responding
to g lobal c l imate change. In
light of the characteristics of the
machinery industry, relying on the
Group’s scientific and technological
advantages in environmental
protection and making it as its
mission to upgrade the industrial
level of environmental protection,
S I N O M A C H r e i n f o r c e s g r e e n
management system, vigorously
promotes energy efficiency and
emiss ions reduct ion, act ive ly
carries out green production,
implements and accomplishes green
development, persists in green and
low-carbon operation, brings along
more counterparts and public to
jointly promote the environmental
protection undertaking, make
contributions to the building of a
“resource-saving and environment-
friendly” society and substantially
perform corporate environmental
responsibility.
88 China National Machinery Industry Corporation
Environmental protection needs the guarantee of perfect systems and mechanisms. SINOMACH has made efforts to build up the “three systems” for
energy efficiency and emissions reduction (EEER) to reinforce its green management. The first was to establish and improve the classified instruction
and management system. In 2008, the Group laid down the Opinions of China National Machinery Industry Corporation on Implementation of Energy
Efficiency and Emissions Reduction to carry out classified instruction and management of its subordinate enterprise. The second was to establish and
improve the organizational leading management system. The Group established the Leading Group for Energy Efficiency and Emission Reduction
with the main leader as its head, set up the Working Office for Energy Efficiency and Emissions Reduction and arranged special departments to be
responsible for the day-to-day work concerning energy efficiency and emissions reduction. The Group’s secondary enterprises have all established the
leading groups for EEER led by their main principals. The third was to establish and improve the EEER assessment, reward and punishment system. The
Group has signed the 2010 Goal Responsibility Document for Energy Efficiency and Emissions Reduction with its key internal enterprises and specified
relevant requirements for assessment, reward and punishment. In light of their actual conditions, the Group’s key internal enterprises have also
broken down the goals and assigned them to units at lower levels and some enterprises have already set the measures for assessment management
to perfect the assessment system.
During the "11th Five-Year Plan", SINOMACH formulated the
Tentative Measures of China National Machinery Industry Corporation
for the Management of Energy Efficiency and Emissions Reduction,
strengthened the building of the EEER systems and according to the
requirements of SASAC, reported over 30 key EEER projects with total
investment of RMB460 million. By the end of 2010, SINOMACH had
fully fulfilled the EEER goals and tasks assigned by the state during
the “11th Five-Year Plan” period. According to the statistics, in the
past two years, the Group’s subordinate enterprises have invested an
accumulative amount of nearly RMB200 million in EEER and carried
out more than 500 measures for technical renovation, technical
process upgrade and energy efficiency.
In 2010 at the end of the “11th Five-Year Plan” period, SINOMACH’s
comprehensive energy consumption per RMB10,000 output value
decreased by 62.99% from the base 2005 level, comprehensive energy
consumption per RMB10,000 of added value decreased by 67.24%
from the base 2005 level, comprehensive energy consumption per
RMB10,000 of business revenue decreased by 37.06% from the base
2005 level, emissions of SO2 decreased by 62.92% the 2005 level and
emissions of COD decreased by 1276.06% from the 2005 level.
Perfecting System to Reinforce Green Management
Carrying Out Green Production Through EEER
I.
II.
89
Environmental Protection and Conservation 2011 Social Responsibility Report
Pollutant Emissions After EEER During the “11th Five-
Year Plan” Period
“Display the Group’s advantages in
scientific research and design strengths,
emphasize the improvement of EEER
performance at the links of technical R&D
and product design, and make active
contributions to EEER from the Group’s
internal and external enterprises in the
areas of products and services.”
--Development Plan of China National
Machinery Industry Corporation
EEER Poster released June 19, 2010
The completion of this technical renovation project will
break through the status quo of China’s dependence
on imported high-end polyimide film and create
the conditions for building the base for research,
development and production of Chinese mid-and high-
end polyimide film, so as to maintain the Group’s guiding
position in R&D and production of polyimide film in
China.
Technical Renovation Project for Production
of Polyimide Film
The Group’s Energy Consumption After EEER During
the “11th Five-Year Plan” Period
Unit: Ton Standard Coal/RMB10,000
Unit: Ton
Emissions of SO2
Emissions of COD
0.2664
0.4997
3624.75
957.951368.87 1344.17
0.0143
0.1133
140.54 228.57 211.46
0.0074
0.3356
0.1009
0.0100
0.2517
0.0986
-1652.84
0.0090
0.1637
2005
2005
2008
2008
2010
2010
2009
2009
Comprehensive Energy Consumption per RMB10,000 Output Value
Comprehensive Energy Consumption per RMB10,000 Business revenue
Comprehensive Energy Consumption per RMB10,000 Added Value
cases
90 China National Machinery Industry Corporation
Through the research on key technologies such as metal structure optimization technology and highly energy-efficient electrical dragging
and automation control technology of cranes as well as light-weight optimization technology, Beijing Materials Handling Research
Institute subordinate to SINOMACH saw the new-type overhead crane products decrease by 20-25% in average weight, decrease by 15-
20% in height, increase by 5-10% in effective work scope, decrease by 10-15% at most in tire pressure and save energy by 10-15%.
China United Northwest Institute for Design and
Research subordinate to SINOMACH undertook
the project of the Shaanxi Science and Technology
Resources Center. After its completion, the Center will
fill Shaaxi’s gap in the comprehensive utilization of
architectural EEER technologies and become a symbolic
building integrating energy efficiency, environmental
protection and science and technology.
The project of comprehensive resource utilization
and upgrade of Guangzhou Petrochemical Thermal
Power Plant of China United Engineering Corporation
subordinate to SINOMACH was awarded the First Prize
for National Excellent EEER Design Project of Thermal
Energy Engineering in 2010.
SINOMACH fully fuses the concept and requirements of environmental protection into the choice of product design, production process flows and
materials to make the products more eco-friendly and to reduce the consumption of resources and the emission of greenhouse gases.
(I) Green Design
cases
91
Environmental Protection and Conservation 2011 Social Responsibility Report
SINOMACH fuses advanced environmental protection technologies and techniques in the production process. Aiming at saving energy and reducing
consumption and by means of management and technology, the Group accomplishes pollution and waste control in the entire process of production
and reduces pollutant emissions and material consumption.
Name of Subsidiary Green Techniques
China Foma (Group) Co., Ltd. subordinate
to SINOMACH
In the construction of its new factory area, it adopted electrodeless lamps to replace the original metal halide lamps and reduce electric energy consumption; and some domestic water such as bath water was heated with solar thermal collectors to replace original electric heaters and reduce electric energy consumption.
China Ocean Aviation Group Inc. subordinate
to SINOMACH
Realized the alteration of chemical materials production line and the full recovery and treatment of waste gas and water.
Guangzhou Mechanical Engineering Research
Institute Co., Ltd. subordinate to SINOMACH
Conducted in-depth survey on its utilization of energy and discharge of industrial waste and entrusted environmental testing institutions to regularly test discharged sewage and atmosphere at production area to ensure professional and accurate data. It recti�ed phenomena such empty running and rotation in equipment, loss and leakage of oil and discharge of industrial waste liquids. In the purchase of �xed assets particularly production equipment, it added the energy e�ciency indicator.
No. 6 Institute of Project Planning & Research
of Machinery Industry Co., Ltd. subordinate to
SINOMACH
Many advanced technologies of the large-scale overall mobile combined spraying-baking water rotating purifying paint line adopted in Qizhong Machine Tool Paint Production Line can reduce about 8064 kilograms of toluene xylene emissions, 8960 kilograms of dust emissions, 34380 kilograms of water and 597,000 cubic meters of natural gas consumption. They have notable e�ect on water and energy e�ciency and emissions reduction and can produce remarkable economic and environmental bene�ts.
China YTO Group Corporation Launching Sewage Treatment
and Reclaimed Water Reuse Project
The project uses “IBR biological/biochemical low energy
consumption sewage treatment” technology (the core of
which belongs to the sci-tech demonstration project under
National 863 Program). After the sewage treatment and
reclaimed water reuse project is put into operation, the
enterprise can annually reduce about 348 tons of COD
emissions on average and also increase the efficiency of
water utilization.
Sewage Treatment, Reclaimed Water Reuse and
Deep Treatment Project
(II) Green Techniques
cases
92 China National Machinery Industry Corporation
The new energy industry has become the strategic pillar industry for
the new round of global economic development. With its available
strengths in the field of new energy, SINOMACH actively pushes
forward the transformation of business mode of the new energy
industry, reinforced R&D and investment in green design and green
projects as well as in new energy and energy-efficient eco-friendly
products and technologies to foster the growth point of a green
economy and the new advantages in market competition, integrate
internal and external resources and fully promote the corporation’s
sustainable development.
Supply of PhonoSolar Photovoltaic Parts to Weipureke Power Plant in the Czech Republic – the largest single solar power plant in East Central Europe and the fifth largest in the world
In light of the characteristics of the machinery industry, SINOMACH
displays its advantages in technical research and development and
through the development of series of green products and services,
jointly forging resource-saving enterprises with customers. Meanwhile,
it actively fosters emerging industries and puts further investment in
technical R&D of solar power generation, power generation through
garbage combustion and remanufacturing technology.
Innovation on Environmental Protection to Realize Green Development
The “Research of Energy-Saving Technologies for Large-Scale Engineering Machinery” carried out by Tianjin Engineering Machinery
Research Institute subordinate to SINOMACH is to develop energy-saving loading machines and leveling machines that are extremely
competitive on the market through the development of energy-saving technologies for large-scale engineering machines. Compared
with a common 6-ton loading machine of the typical model, the trial-manufactured energy-saving loading machine can save energy
by 9-20% and compared with a common leveling machine of the typical model, the energy-saving leveling machine can save energy
by 5-10%.
Carrying on “Research of Energy-Saving Technologies for Large-Scale Engineering Machinery
III.
(I) Reinforcing Innovation on EP Science
and Technology
cases
93
Environmental Protection and Conservation 2011 Social Responsibility Report
Key Green Technological Achievements of SINOMACH During the “11th Five-Year Plan” Period
Technological Achievements Environmental Benefits
LRS525 Road Recycler Energy-saving EP Equipment Provide solutions to “green” construction technologies
Research and Development of Technical Equipment for Biomass Collection, Storage, Processing and Utilization
A project of Chinese Academy of Agricultural Mechanization Sciences subordinate to SINOMACH, i.e. the development of advanced technologies for using biomass resources to replace traditional energy resources. According to preliminary estimation, China currently has 1.5 billion tons of agricultural and forestry waste biomass, equivalent to about 740 million tons of standard coal, and the amount with potential for development is equivalent to about 460 million tons of standard coal.
360-degree rotation small four-stroke gasoline engine
Developed by SUMEC Group Corporation subordinate to SINOMACH, this new product features internationally leading technologies to reduce consumption. Compared with the existing two-stroke gasoline engines, it can reduce pollutant emissions by 86% and oil consumption by 28%.
YTR4108 Fuel Engine Developed by China YTO Group Corporation subordinate to SINOMACH, this type of diesel engine adopts the technologies such as internal EGR, necking-down ω-shaped firebox, platform reticulate pattern cylinder cover, metal ceramet piston ring, high-pressure fuel injection pump and multi-hole small-aperture nozzle, and reduces exhaust emissions.
Method of Reducing the Power of Hydraulic System of Multi-layer Hot Press and Its Practical Application in a Device
Developed by China Foma Machinery (Group) Co., Ltd. subordinate to SINOMACH, this device can introduce the hydraulic oil supply of the board loader and unloader in the artificial board multi-layer press into the closure and pressure-increasing process to diminish the total capacity of hydraulic system and reduce consumption of raw materials, sanding power consumption and consumption of sand belts.
Converter Flue Gas Dry Cleaning and Recovery System
Researched and designed by China National Heavy Machinery Research Institute Co., Ltd. subordinate to SINOMACH, this system’s flue gas recovery technology fully considers explosion prevention, dust removal efficiency, flue gas and dust recovery and utilization and energy consumption, and has good economic and social benefits.
Key Auxiliary Bearings for Large and Medium Wind Power Generators
Developed and manufactured by Luoyang Bearing Science and Technology Co., Ltd. subordinate to SINOMACH, it has obtained stage-by-stage research achievements in bearing selection analysis and performance analysis and laid a good foundation for the development of bearings for 1MW, 1.5MW and 2MW wind power generators.
Project of EEER System Engineering for Comprehensive Utilization of Residual Heat from Group Control Furnace
Designed by No. 6 Institute of Project Planning & Research of Machinery Industry subordinate to SINOMACH for Suzhou Far-East Grinding Wheel Co., Ltd, it realized the reuse of energy resources and waste resources.
Energy-Saving Systems for Recovery of Residual Heat of Flue Gas
Jointly developed by China National Electric Engineering Co., Ltd. subordinate to SINOMACH and Guangzhou Kedi Thermal Power Equipment Co., Ltd, the large-scale integrated heat recovery system increased the applications of recovered residual heat; and the phenol-water, soot-blowing and tar-removal circulating water system both saved water and realized zero emission of waste water.
Research on Fuel Consumption Rate of LR Series of Diesel Engines
Using virtual computer technology, supercharged and supercharged medium-cooled technology, high-pressure injection technology for fuel system, optimized combustion system, system, electric-control system and other measures, China YTO Group Corporation makes reduced the fuel consumption of the diesel engine by 15 grams for per kWh, and based on a 100 kW engine, it has been determined that about 1500 grams of diesel is saved each hour.
94 China National Machinery Industry Corporation
SINOMACH is committed to industrializing EP science and technology, actively expands green emerging markets, constantly develops and produces
EP products applicable in many fields, and creates value for the society in water resource utilization, energy resources, EP and so on.
Large-Scale Complete Set Equipment of Sand Preparation and Clean Forging
Teda Base of Otis Elevator is the first manufacturing and R&D base
of Otis Global and even in the elevator industry that integrates
numerous green and energy-efficient technologies including heat-
preserving walls, outside sun-protection windows, roof greening
and rainwater recovery. Meanwhile, it is also one of China’s first
industrial plant projects that applied for LEED Gold Certification
set by USGBC. It plays a wide-reaching demonstration role in
promoting the smart, eco-friendly and highly energy-efficient
concept of industrial buildings in China and promotes the high-
technology and sustainable corporate image of “Made in China”.
A Bird’s-Eye View of Teda Base of Otis Elevator
Teda Base of Otis Elevator
Electric Power Saver
(II) To develop Green and EP Products
cases
95
Environmental Protection and Conservation 2011 Social Responsibility Report
Applying scientific technical means, SINOMACH actively forges eco-friendly engineering projects in engineering of the electric power industry,
construction of the EP industry and engineering construction to accomplish green development of the machinery industry and promote environmental
and ecological protection.
1. Engineering of Electric Power Industry
The electric power industry undertakes the mission of providing basic energy guarantee for national economic and social sustainable development.
In the field of engineering construction of the electric power industry, SINOMACH sticks to independent technological innovation and emphasizes
the development and application of energy-efficient and eco-friendly technologies for electric engineering construction to provide support for better
economic and social development.
This power plant project is by far the largest project in economic
and trade cooperation between China and Sri Lanka and also the
first coal-fired power plant in Sri Lanka. After its completion, the
project will be helpful for alleviating the electric power shortage in
Sri Lanka, reducing people’s living costs and improving livelihoods. It
is of great significance for promoting Sri Lanka’s economic and social
development.
On January 12, 2011, a grand ceremony for the main dam closure was held on the site of Tatay Hydropower Plant in Koh Kong, Cambodia, a
BOT project undertaken by China National Heavy Machinery Corporation subordinate to SINOMACH. After its completion, the project will play
a very active role in the development of Cambodian electric sector, the local economic development of Koh Kong and the economic and social
development of Cambodia and will make important contributions to the promotion of economic and trade cooperation and the traditional
friendship between China and Cambodia.
Sri Lanka Puttalam Coal-Fired Power Plant Project
Cambodia Tatay Hydropower Plant BOT Project
Signing Ceremony for Strategic Cooperation Agreement on Puttalam Coal-burning Power Plant in Sri Lanka
The Closure Ceremony for the BOT Project of Cambodia Tatay Hydropower Plant
(III) Forging Eco-Friendly Engineering Projects
cases
96 China National Machinery Industry Corporation
In 2011, China National Machinery & Equipment I/E Corporation subordinate to SINOMACH signed the EPC Contract for the Tanzania
Northwest Power Grid Project with Tanzania National Electric Power Corporation. This project is of great significance for strengthening the
construction of Tanzanian State Grid and promoting local economic development, particularly economic development in the Northwest of
Tanzania.
On September 4, 2010, China CAMC Engineering Co., Ltd.
subordinate to SINOMACH and Venezuela Electric Power
Company signed a commercial contract for the Venezuela
Bithia Thermal Power Plant Project. With a contract value
of US$956 million, the project not only filled a CAMCE
gap in the power generation field, but also effectively
alleviated the local shortage of electric power; and it has
made contributions to China-Venezuela economic and trade
development and the friendship between the two peoples.
Tanzania Northwest Power Grid Project
Project of Venezuela Bithia Thermal Power Plant
2. Development of the EP Industry
SINOMACH actively develops the EP industry, strengthens the development of new technologies for energy efficiency and EP, promotes ecological
environment improvement and resources protection and enhances green development capabilities.
Shaoxing 300,000 Tons/Day Urban Sewage Treatment Project
Signing Ceremony for Venezuela Bithia Thermal Power Plant Project
Lanxi 40000m3/Day Sewage Treatment Project Shanghai Bailong Port Sewage Treatment Plant
cases
97
Environmental Protection and Conservation 2011 Social Responsibility Report
China National Automation Control System Corporation
subordinate to SINOMACH and Beijing Recycle Environmental
Protection Technology Development Co., Ltd. signed the
Carbon Assets Cooperation and Management Contract. Both
parties will cooperate in the carbon assets management of the
Sanitary Landfill Gas Power Generation Engineering Project at
Gaoantun in Chaoyang District, Beijing and CACS will use the
“clean development mechanism (CDM)” in this project for the
first time. It is estimated that, after the project is completed,
the emissions of carbon dioxide will be reduced by 140,000
tons annually and the owner will thereby receive an income of
about 800,000 euros from emissions reduction.
As the general contractor and operator of Guangzhou
Donghaoyong Water Purifying Project, China National General
Machinery Engineering Corporation subordinate to SINOMACH
adopted the advanced engineering technology and constructed
the water purifying plant with a daily treatment capacity of
100,000 tons and covering an area of 50 mu (about 33350 m2)
in an underground building of more than 1900 m2. It is by far the
largest underground solid comprehensive water purifying plant
in China. This project fundamentally improved the water quality
and environment of Donghaoyong in Guangzhou, turned the
4.5-km stinking ditch in the urban center into a green ecological
corridor, giving the old city area a new charming look and
providing new experience for urban environmental alteration.
On August 13, 2011, General Secretary of the CPC Central
Committee Hu Jintao inspected Donghaoyong in Guangzhou and
gave important instructions: “Building a fine urban ecological
environment is the earnest expectation of the broad mass of
the people and also an important task of urban construction. It
is hoped that Guangzhou continues to effectively handle urban
ecological regulation such as river and stream control, do these
positive things well and give residents a graceful and habitable
living environment”.
CACS Developing a Low-Carbon Economy Guangzhou Donghaoyong Water Purifying Project
General Secretary Hu J intao Inspect ing Donghaoyong in Guangzhou
cases
98 China National Machinery Industry Corporation
3. Green Project Construction and Design
Applying new concepts, technologies and materials and adopting many advanced technologies such as an energy-saving illumination distribution
system, compressing system for classified garbage collection and new-type energy recovery technology for plate exchangers, SINOMACH
accomplished transformation and integration of high-tech achievements in engineering construction design and fostered the amicable public space
based on a good humanistic environment and predominant natural environment.
Buildings B1 and B2 in Shanghai Garden Mill Energy-Saving and Eco-Friendly Industrial Park Winning American LEED Gold Award
Shanghai Garden Mill Energy-Saving and Eco-Friendly Industrial Park Designed by China IPPR International Engineering Corporation subordinate to SINOMACH
In 2010, Changlin Industrial Park began
construction. The Environmental Impact
Report was prepared and the energy-
efficiency evaluation report was made for
the project. The project construction was
carried out in strict accordance with the
requirements of the evaluation report, the
rain and sewage pipelines and sewage
treatment station were newly built and
purification, combustion or dust-removal
devices were equipped for waste gas in
production.
Energy-Efficient Construction of Changlin Industrial Park
Energy efficiency is mainly manifested as follows:
1) In the main substation, in the construction of 110KV main substation, load
management energy-saving technology was adopted, the maximum load of the
grid was reduced, and the benefits of saving electric power and reducing the
installed capacity of the power system were obtained;
2) In illumination, electrodeless lamps were adopted to replace hydrargyrum lamps,
highly-efficient electric induction ballasts were used to replace the common
ones, and sound-control, light-control, time-control, sense-control and other
smart switches and key switch controls were adopted to ensure energy-saving
illumination;
3) In power transformation and distribution, the highly efficient transformers with
low copper and iron losses were adopted, power-saving operation of transformers
and rational layout of distribution circuits were carried out, and local reactive
power compensation was adopted to reduce losses in power distribution; and
4) In electromotor, full use was made of frequency control technology to realize
power-saving operation of the electromotor.
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Environmental Protection and Conservation 2011 Social Responsibility Report
SINOMACH actively advocates green office work, carries on green and eco-friendly practices in day-to-day work and strives to reduce the impacts of
corporate operation on ecological environment.
According to the requirements of building a resource-efficient and
environment-friendly enterprise and substantially performing social
responsibility, SINOMACH closely centers on the theme of “Action of
All Citizens for Energy Efficiency” and actively devotes itself through
various means to green low-carbon office activities. The Group fuses
the philosophy of green development into its specific activities,
advocates an economical life style and moderate consumption,
safeguards environmental protection facilities and encourages every
person around to actively get involved in the building of a resource-
saving-oriented society so as to jointly create a good atmosphere in
which everyone cares for saving on resources and everyone personally
practices saving on resources.
In 2010, SINOMACH established the Leading Group for Energy
Efficiency and Emissions Reduction (EEER). By reinforcing publicity and
education and implementing a series of EEER measures, it allowed
all the employees to become unified in their thinking and consciously
develop the habit of energy efficiency. From 2010 until now, taking the
favorable opportunity of organizing the event of “Energy Efficiency
Publicity Week” and focusing on saving on electricity, water and
oil, the Group makes full use of internal journals, e-mails and other
channels to actively publicize the significance of saving resources,
decreasing energy consumption and reducing pollutant emissions
and makes due contributions to the building of a resource-saving and
environment-friendly enterprise.
SINOMACH Publicity Pictures for Environmental Protection in 2010
Energy Saving and Environmental Protection for Green Office Work
IV.
On June 15, 2010, Beijing SINOMACH Longsheng Automotive Trading Co., Ltd. held
the Dongfeng Honda Oil Saving Challenge Competition Final in Beijing. Through
the event, many drivers not only understood the advantages of Honda CIVIC in oil
saving, but also learned some oil-saving techniques such as applying the accelerator
lightly and using the brake less. This helped the drivers to form correct driving habits,
effectively improve oil-saving skills and actively get involved in EEER activities
through practical actions.
Actively Carrying on “EEER” Events
Publicity Pictures for Dongfeng Honda Oil Saving Challenge Competition Final
(I) Sticking to Green Low-Carbon Office Work (II) Reinforcing EP Publicity and Training
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100 China National Machinery Industry Corporation
1012011 Social Responsibility Report
Work Together to Promote Harmony
Corporate Citizenship
SINOMACH follows the core value
of “Work Together, Win Together”,
commits i tself to carry ing on
responsible operation around
the world, adheres to the basic
requirements of performing social
responsibility and accomplishing
mutual benef its and win-win
development with stakeholders,
earnestly observes local laws and
regulations, promotes harmonious
development of communities,
devotes itself to social public
welfare, fosters a positive image
as a corporate citizen and pursues
sustainable social development.
102 China National Machinery Industry Corporation
SINOMACH has emphasized the establishment of cooperative relationship with other players in the same industry and carried out various forms of
cooperation in relevant fields to accomplish resource sharing and win-win development. SINOMACH has strived to establish long-term cooperative
relationships with suppliers based on equality and mutual benefits, provided suppliers with broad platforms for business development and value
enhancement and supported a great number of suppliers to grow together with the Group.
SINOMACH actively has pursued cooperation with stakeholders, perfected the mechanism for government-enterprise communication and
collaboration, strengthened strategic cooperation with other players in the industry, and reinforced cooperation among production, education and
research.
The Group has actively established the mechanism for cooperation with local governments, accelerated the development of the equipment
manufacturing industry and took this as the key to industrial restructuring. It has actively carried out mutual visits and meetings with the governments
of different countries to enhance understanding and maintain long-term stable cooperative relationships with local governments.
Signing Framework Agreement on Strategic Cooperation with the Zhejiang Provincial People’s Government
Chairman Ren Hongbin met with GE Chairman and CEO Jeffrey Immelt Chairman Ren Hongbin met with Governor of Illinois, US
Promoting Mutual Benefits and Win-Win Development Through Cooperation
Signing Framework Agreement on Strategic Cooperation with the Zhejiang Provincial People’s Government
I.
SINOMACH and Zhejiang Provincial People’s Government signed
the framework agreement on strategic cooperation. The Group fully
displayed its integrated advantages in the machinery industry and
helped in the joint building of the industrialization base for high-tech
electromechanical products to support Zhejiang in the development
of agricultural machinery and its related basic parts as well as the
R&D and manufacturing of agricultural engineering equipment and
grain storage and processing equipment.
(I) Jointly Creating Strategic Cooperative Relationships
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Corporate Citizenship 2011 Social Responsibility Report
To express thanks to China National Machinery & Equipment I/E Corporation subordinate to SINOMAC for the Putalam Coal-Fired Power
Plant it undertook as a general contractor and for the friendship of the Chinese people, the Sri Lanka Government printed Putalam Coal-
Fired Power Plant on its currency issued in 2010 for commemoration.
Sri Lanka Printed Putalam Coal-Fired Power Plant on Its Currency
China YTO Signed Strategic Cooperation Agreement with Caterpillar
Jiangsu Linhai and JCB Company Signed Long-Term Supply Agreement
China YTO Signed Strategic Cooperation Agreement with Caterpillar
Jiangsu Linhai Dynamic Machinery Group Corporation subordinate
to SINOMACH and British JCB Company, one of the world’s five
largest engineering machinery and agricultural manufacturing
companies, signed a long-term supply agreement and established
an all-round cooperation relationship.
The year 2011 was the tenth year since China YTO Forging
Branch subordinate to SINOMACH and Caterpillar, the world’s
largest manufacturer of earthwork engineering and building
and mining machinery, first carried out cooperation in product
supply, product R&D and corporate management. This year,
the parties entered into a long-term strategic cooperation
agreement on forging business operations.
Sri Lankan Currency Printed with Putalam Coal-Fired Power Plant
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104 China National Machinery Industry Corporation
In 2011, SINOMACH and Tsinghua University held
10 education projects for Master’s Degree Students
in Engineering. The production-education unity and
university-enterprise cooperation platform built up by
Tsinghua University for SINOMACH involved 2 schools, 1
research institute, 5 departments, 7 key national labs, 10
research centers and 15 research institutes of Tsinghua
University, and pioneered the aforementioned unity and
cooperation.
Based on their long-term cooperation in the past, SINOMACH and
China Export & Credit Insurance Corporation have deepened and
expanded fields and points of cooperation and signed the strategic
cooperation agreement. In the form of annual communication
meetings, they jointly looked back at their work, reported achievements
and discussed specific cooperation projects to deepen their common
understanding of cooperation.
Consolidating Export and Credit Insurance SupportBank-Enterprise Cooperation Assisted China YTO with Strategic Development
China YTO Group Corporation subordinate to SINOMACH and the
Import and Export Bank of China carried out strategic cooperation
in the three fields of “going global”, construction of an export base,
and trade financing business. In May 2011, both parties entered into
a strategic cooperation agreement, according to which, in the next
five years, the Import and Export Bank of China will provide China
YTO with export supplier credit, import credit, trade financing and
other credit support and other financial services.
SINOMACH Carrying on University-Enterprise Cooperation with Tsinghua University
SINOMACH values and maintains financing advantages and it is a strategic cooperative partner with many financial institutions including the Import
and Export Bank of China, Bank of China, China Construction Bank, Industrial and Commercial Bank of China, Bank of Communications and China
Export & Credit Insurance Corporation. In 2011, SINOMACH obtained bank credit lines of over RMB200 billion and had a AAA-rating in long-term
credit.
SINOMACH actively explored modes of cooperation among Production, Education and Research, made full use of its comprehensive advantages in
R&D and manufacturing of machinery equipment and in industrial chain and promoted the establishment of the Strategic Alliance for Innovation in
Industrial Technologies, which focused on enterprises and integrated production, education and research, to constantly enhance industrial innovation
capability and overall competitiveness. By 2011, the Group set up 14 corporate postdoctoral workstations.
(II) Sharing Advantages Through Cooperation Among Enterprises, Campuses and
Research Institutes
(III) Bank-Enterprise Cooperation to Achieve Mutual Benefits and Win-Win Development
SINOMACH and Chinese Academy of Sciences Signed Strategic Cooperation Agreement
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Corporate Citizenship 2011 Social Responsibility Report
The China-Guinea-Bissau Friendship Hospital designed
by China IPPR International Engineering Corporation
subordinate to SINOMACH is one of the 30 hospitals
announced by President Hu Jintao at Chinese-African
Cooperation Forum to be constructed for Africa under
China’s assistance.
China-Guinea-Bissau Friendship Hospital
Assisting in Construction of African Hospitals
SINOMACH has strictly observed the laws and regulations of
host countries, paid taxes in good faith and actively practiced the
responsibility as an international corporate citizen. By the end
of 2011, SINOMACH had carried out operations in more than 20
African countries including Angola, Sudan and Equatorial Guinea.
SINOMACH and its subordinate enterprises actively got involved in
the local construction of hydropower infrastructure, public service
infrastructure and related auxiliary engineering facilities, made
positive contributions to the improvement of local African livelihoods,
economic development and social development through their
outstanding project quality and fostered a profound friendship with
the African people.
In multinational operations, SINOMACH has always pursued equal
and unbiased employment policies, worked out labor protection
regulations and measures, directly and indirectly provided 13,000
job opportunities for Africa, carried out localized procurement and
community investment, got involved in local community welfare
activities, advocated on topics of safety, health and education for
African children and persisted in serving local communities and
residents by various means and in various forms. In 2010, China
National Machinery & Equipment I/E Corporation subordinate to
SINOMACH stood out among 400 enterprises and won the Chinese-
African Friendly Contribution Award as the fifth-placed on the Internet
vote ranking on the appraisal and selection of “Chinese Top 10 Africa-
Moving Enterprises”.
Promoting Harmonious Development of Communities
In the African communities where projects were conducted, the
overseas personnel of SINOMACH actively launched, mobilized,
organized and participated in various kinds of community welfare
activities, held literary and entertainment events to promote
friendship and cultural exchanges, provided relevant resources for
project operation to aid the construction and development of local
communities and improve the community residents’ access to a
healthy life and employment, and actively got involved in the common
construction of international communities.
Operations Covering
More Than
Providing
Job
Opportunities
for Africa
African Countries
13,00020
II.
106 China National Machinery Industry Corporation
Special Topic ──
Moving Africa
Since 1970, China National Machinery & Equipment I/E Corporation (CMEC) subordinate to SINOMACH has
assisted African countries with construction and carried out large-scale livelihood project contracting in Sudan,
Congo and other countries. A great many projects in important industrial fields have greatly improved Africa’s
local infrastructure and people’s living standard and laid a sound foundation for African economic development.
The “Chinese-African Friendly Contribution Award” signifies the extremely positive affirmation of China National
Machinery & Equipment I/E Corporation for actively participating in the development and construction of African
countries, making outstanding contributions to local economic and social development and earnestly performing
corporate social responsibility and actively repaying local people. In 2010, CMEC actively responded to the initiative
of Chinese-African Friendly Association and contributed RMB500,000 to the “Special Fund for Chinese-African
Friendly Contribution Award” to continue benefiting the African people.
Award Ceremony for “Chinese-African Friendly Contribution Award - Top Ten Africa-Moving Chinese Enterprises”
The cause we have worked for is to the benefit of Africa’s development, to help promote
the benign cycle of economic development on the continent, and raise their living standard
higher and higher, and this is our principle.
-Jin Chunsheng, Vice President of China National Machinery & Equipment I/E
Corporation subordinate to SINOMACH
During more than four years, through our implementation of some significant electric power
projects, I feel that Sudan has made great progress in electric power supply. At first, there
were 3 or 4 power failures each week. Now there is about 1 power failure each week or even
no failures.
- Li Chen, Business Manager of Sudan Fula Project
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Corporate Citizenship 2011 Social Responsibility Report
In Garri, Sudan, a student
of Khartoum University
p r e s e n t e d a p o e m i n
Chinese to the construction
workers of China National
Machinery & Equipment I/E
Corporation subordinate to
SINOMACH
Continuous rainfall caused a serious flood disaster,
which affected more than 6000 victims and 35
villages had to be moved. China National Machinery
& Equipment I/E Corporation subordinate to
SINOMACH donated 300 bags of rice and malaria-
resistance medicine with a total value of about
RMB200,000.
Donating to Nigerian Flood-Stricken Masses Public-Service Ad Launched in Africa to Advocate Loving Care for Children’s Health
Donated Materials Arrived at Disaster-Stricken Area
Yellow sands cover your eyes.
Sweat soaks your clothes.
You make nothing of hardships, traveling afar.
You’ve left your hometowns and families.
I don’t know what you’re called, but I know what you’re for
For the development of Africa, for the rise of Sudan.
For the electric cause of Sudan, for the people of Sudan.
Black skin and yellow skin, let’s go hand in hand.
Chinese and Sudanese, let’s stand shoulder to shoulder.
Let’s work together to greet a happy tomorrow,
Let’s join hands in creating greater miracles.
Let’s cheer for splendid victory,
Let’s toast the Chinese-Sudanese friendship.
The public infrastructure in African cities is simple and
crude and improperly discarded glass often brings
accidental harm to children. To promote loving care for
children’s safety and health in Angola in the west coast
of Africa, China National Machinery & Equipment I/
E Corporation subordinate to SINOMACH launched a
public-service advertisement in local public broadcasting
media to advocate the public’s care for children’s health
and reduce the improper actions that may potentially
harm children.
“Are you willing to see this pair of feet bloodied all over due to
stepping on broken wine bottles? If you’re a child’s father or elder
brother, from this very moment, stop leaving empty bottles lying
about. Give them a stretch of pure land and let them run freely and
grow happily.”
--Content of Public-Service Ad
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108 China National Machinery Industry Corporation
Vice Chairman Xu Niansha Inspecting the Construction Project of Viana School of Technology in Angola
China CAMC Engineer ing Co. , L td. subordinate to SINOMACH Donated Sports Equipment to the State of Sennar, Sudan
In the process of constructing Malabo City Grid
Project in Equatorial Guinea, we helped the
country build a high-level professional team
in electric technology and cultivate talents for
follow-up electric power projects and helped
them become the backbone force of the
management of electric power projects. Positions, Safety and Technical Training Offered for Operation and Maintenance Personnel of the State Grid of Equatorial Guinea
Employees for New Project of Congo Water Plant Stage II Planting Trees Locally
People from Surrounding Villages Came to Offer Congratulations at the Completion Ceremony for Nigeria Thermal Power Plant
Building Local Electric Professional Team for Malabo City Grid Project in Equatorial Guinea
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Corporate Citizenship 2011 Social Responsibility Report
Vice Chairman Xu Niansha communicated with the local medical personnel of Angola
Medical personnel of the group for Gabon Belinga Iron Ore Project provided medical aid, distributed medicines and explained medical knowledge for Gabonese patients
In the electric power project in Equatorial Guinea, SINOMACH offered more than 20 specialty courses including Electrical Engineering Basic and Electronic Technology for the personnel of Equatorial Guinea.
The Kenyan City Grid Reconstruction Project group gave donations for the construction of a primary school.
China CAMC Engineering Co., Ltd. donated stationary to Mozambican students.
110 China National Machinery Industry Corporation
In light of its advantages in agricultural equipment products and services, SINOMACH actively invested relevant resources and relied on technical services
to convey its care for agriculture, rural peoples and countryside and reinforce communications with peasant users. It rationally and effectively promoted
harvesting and sowing with agricultural machinery to fully guarantee labor results and economic benefits and jointly build harmonious towns.
As China’s largest professional harvesting machinery manufacturer, Luoyang Zhongshou Machinery Equipment Co., Ltd. subordinate
to SINOMACH has highly valued and ensured harvesting and takes it as its own mission to serve agriculture, rural peoples and the
countryside (APC). During the peak period of the summer harvest in 2010, Luoyang Zhongshou dispatched about 230 technicians
and 125 service vehicles and relied on more than 240 dealers and over 70 service stations to serve wheat production areas in over
10 provinces and guarantee summer harvest results through machinery equipment services. Meanwhile, it emphasized the building
of service capabilities and carried on a series of technological actions such as “2011 Nationwide Introduction of Able Rural Peoples’
Enrichment Through Science and Technology” and “Sci-Tech Caravan Action by Agricultural Experts on Farmland” to provide all-
round technical instruction and on-site training for agricultural machinery operators.
SINOMACH Agricultural Machinery Promoted Summer Agricultural Work and Luoyang Zhongshou Helped APC
Science and Technology Assists Agriculture, Rural Peoples and the Countryside to Promote Ecological and Sustainable Development
Agricultural Minister Han Changbin Expressing Sincere Care
Trans-Regional Operation Service Team of Dealers of Luoyang Zhongshou Machinery Equipment Co., Ltd. subordinate to SINOMACH
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Corporate Citizenship 2011 Social Responsibility Report
SINOMACH is enthusiastic in supporting social public welfare programs, actively performs its responsibility as a corporate citizen, strives to
repay the society, always emphasizes the in-depth integration of public welfare programs and the advantages of machinery technology and
makes efforts to build up a strategic welfare platform. The Group values the social effect of donations, earnestly gets involved in social public
welfare activities such as relieving disasters, helping those in poverty, comforting the elderly and orphans and supporting education and
students, and provides all the possible intellectual, material and financial support for medical care, education, cultural activities and other
public service fields.
SINOMACH follows the concept that “education is fundamental for a
hundred-year plan” and has made long-term commitments in the field
of assisting students in financial difficulty. Through ceaseless efforts, it
has constantly provided funds and resources for poor areas and poor
people’s groups to support their education and contributed funds in
the building of Liaoyuan Primary School in Qinglong County, Hebei
Province Changfu.
Taking the “Loving Care Fund” it launched in 2006 as the platform
and with the Loving Care Fund Management Committee and Office
as the organizational guarantee, SINOMACH set up a separate bank
account and personnel to manage and standardize the use of the
loving care fund, explored the mode of providing public welfare as
strategic cooperative partner of charities and gradually developed
toward the mode of strategic public welfare.By the end of 2011,
SINOMACH had indirectly helped more than 1880 staffs and 680
students in supporting education through the Loving Care Fund.
Making Earnest Efforts for Social Public Welfare Programs
“Five Olympic Rings” Formed by Olympic Volunteers
III.
(I) Show Loving Care to Assist Students in Financial Difficulty
China Automobile Trading Co., Ltd. (CATC) participated in the “Warming the West” Public Welfare Program
CATC joined hands with chinahope.org.cn and Lan Hua Cao Art
Foundation in sponsoring the 2011 “Warming the West” Public
Welfare Program, which was officially launched on September 16.
By early December, over 500 packs of clothes, stationary, first-aid
kits and other materials prepared for winter were donated all over
Beijing and were delivered to Qinghai Province. Another batch of
donations from Beijing will be delivered to the schools in poverty-
stricken areas in Gansu Province before the end of December.
Those donations would help the kids in a number of schools in the
provinces get through the winter safely.
China Automobile Trading Co., Ltd. (CATC) participated in the “Warming the West” Public Welfare Program
案例
112 China National Machinery Industry Corporation
For years, SINOMACH has taken it as its own mission to help and support seven counties of four provinces and spared no efforts to succeed in the
support work. The Group highly valued the work of alleviating poverty for development. The Group’s leader directly served as the head of the working
group for alleviating poverty and specified special efforts to support special areas. SINOMACH was actively engaged in assistance through cadres to
help local economic development. It helped Wusu of Xinjiang Autonomous Region to prepare the development plan for the equipment manufacturing
industry and donated RMB 1 million to Tacheng.
After the earthquake in Yushu, Qinghai Province, SINOMACH
made donations for the construction of “SINOMACH Dong
Fang Hong Library” for Yushu Lodging National School.
Employees of all the Group’s subordinate enterprises
donated more than RMB 3.13 million, of which RMB3 million
was used for the construction of the library and RMB130,000
for purchasing books and so on.
Signing Ceremony for Assistance in the Construction of the Library
Reconstruction After Disaster in Yushu, Qinghai
(II) Helping the Poor to Assist Development
cases
President Xu Jian joined the delegation organized by
the State-owned Assets Supervision and Administration
Commission of the State Council (SASAC) and SASAC SOEs in
an inspection of Xinjiang Uygur Autonomous Region during
July 12-17, 2010. The trip aimed to inspect the investment
projects and the social and economic development in
Xinjiang, and investigate how to further promote the aid to
Xinjiang through partnership. In addition, President Xu Jian
presented to Standing Vice Commissioner Zhang Wenqiang
of Tacheng Prefecture the development plan for equipment
manufacturing in Wusu City. President Xu Jian presents to Standing Vice Commissioner Zhang Wenqiang of Tacheng Prefecture the development plan for equipment manufacturing in Wusu City
President Xu Jian presents development plan to Standing Vice Commissioner Zhang Wenqiang of Tacheng Prefecture
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Corporate Citizenship 2011 Social Responsibility Report
SINOMACH Capital Management Corporation established
a strategic charity partnership with the China Taiping Life
Insurance “Loving Care Library”. In 2011, through the
“Loving Care Library”, the Group donated books, textbooks
and office articles to poverty-stricken primary schools and
relied on its experience accumulated in educational fields
over the years to actively explore the cooperation mode of
donating books.
Establishing Strategic Cooperative Partnership with “Loving Care Library”
“Loving Care Fund” Actively Helping People in Financial Difficulty
In 2010, the charity funds of the Group’s “Loving Care Fund” benefited 296 employees and 145 students in financial difficulty.
In response to serious natural disasters, SINOMACH actively donated
money and articles for the earthquake in Yushu, the mudslide in
Danqu, the drought in southwest China, the typhoon in Hainan and
other disaster-stricken areas. In 2010, at the scene of the “Sympathy
for Yushu and Boundless Love - Large-Scale Donation Event”,
SINOMACH donated RMB5 million to assist the disaster-stricken
people with disaster relief.
SINOMACH highly valued and displayed the advantages of its strong
leadership and technology in the machinery industry and made great
efforts to support disaster relief and rescue. In the disaster-stricken
areas of Wenchuan and Qinghai Yushu, the Group successively put in
all kinds of machinery equipment and human services and persistently
made commitments to all kinds of disaster relief around China.
The Group has shaped its unique relief guarantee mechanisms and
measures and taken on important tasks for the country and society in
disaster relief and rescue.
(III) Taking on Important Tasks in Disaster Relief
114 China National Machinery Industry Corporation
董董董董董董董董董董董董董董董董董董董董董董董董董董董董Results Chart of Yushu Prefecture Tibetan Hospital completed by China IPPR International Engineering Corporation subordinate to SINOMACH
Hyundai (Jiangsu) Engineering Machinery Co., Ltd, a joint venture of China Foma Machinery (Group) Co., Ltd. subordinate
to SINOMACH, immediately donated 19 excavators worth over RMB13 million to the earthquake-stricken area of Wenchuan
and used technical means to participate in relief and rescue.
Assisting Earthquake Relief and Rescue by Means of Modern Machinery
During the relief and rescue in the Wenchuan
earthquake, SINOMACH leased large-scale Russian
sling-loading helicopter to dispatch crawler dozers to
the disaster area.
The small electric tools donated by SINOMACH cut
off reinforced steel bars in excavation for Wenchuan
earthquake rescue to improve assistance efficiency
and strive for success during the crucial first 72 hours
in earthquake rescue.
Lanzhou Power Station & Vehicle Institute Co., Ltd.
subordinate to SIINOMACH donated its superior
product - 30kW trailer manned by technical personnel
and the disaster relief army of the PLA Lanzhou
Military Area Command fought shoulder to shoulder
at the earthquake-stricken Yushu in Qinghai.
Special Topic ──
Earthquake Relief
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Corporate Citizenship 2011 Social Responsibility Report
Vehicles of SUMEC Group Corporation subordinate to SINOMACH for Transporting Earthquake Relief Materials
董董董董董董董董董董董董董董董董董董董董Changlin Co., Ltd. subordinate to SINOMACH Supported Earthquake Relief
In October 2010, Hainan Province was assaulted by “Typhoon Dawei” and suffered
economic losses of nearly RMB10 billion. A great number of tractors were overrun,
which impacted the autumn plowing. The users’ service stations of China YTO
Group Corporation subordinate to SINOMACH took an active role to repair a total
of 84 tractors and 56 diesel engines and donate 60 barrels of lubricating oil. Four
engineers of China IPPR International Engineering Corporation arrived at the severely-
stricken Wenchang to assist with the planning for post-disaster reconstruction. In the
devastated and collapsing rural houses and at their personal risk, they checked and
registered hidden dangers in the buildings household by household and village by
village. The agricultural machinery operators in the disaster-stricken areas of Wenchang
of Sichuan and Qionghai of Hainan wrote a thank you letter to China YTO: “Looking
at the tractors and agricultural machines overrun in the flood, we were stricken with
anxiety. Just at this time, YTO’s service personnel arrived to swiftly repair agricultural
machines and replace machine oil for us free of charge. It’s you who have roused our
confidence in overcoming the disaster to rebuild our homestead; and your action makes
us agricultural machine users feel YTO’s warmth and social responsibility as a large
enterprise.”
In 2010, the minority area of Kuerle in Xinjiang Autonomous Region suffered severe
drought, which brought great difficulty to the production at graperies and vegetable
farms. The Second Assembly Factory of China YTO Group Corporation subordinate to
SINOMACH specially designed the Tong Fang Hong 240PD-1 “Canopy King” tractors
suitable for local drought-resistance work and production in Kuerle, Xinjiang to support
the local minority people’s drought resistance and production through mechanical
science and technology.
SINOMACH Used Modern Machinery to Relieve Drought and
Flood Disasters
China YTO Group Corporation subordinate to
SINOMACH provided Dong Fang Hong loading
machines to assist armies of armed traffic
police, who opened up National Highway
214, the trunk line from Xining to Yushu, to
guarantee the “lifeline” for transporting the
earthquake relief materials to Yushu, Qinghai.
Employees of China United Northwest
Institute for Design and Research subordinate
to SINOMACH rushed to earthquake-stricken
Yushu in Qinghai and carried out professional
assessment of the dangerous houses among
temples and other religious sites there to
support post-disaster reconstruction in Yushu
through their professional strengths.
Assisting Disaster-Stricken Areas in Southwest China
The southwestern areas of China suffered extraordinarily serious drought rarely seen in
history and the Hefei General Machinery Research Institute subordinate to SINOMACH
carried out the event of “Showing Loving Care to Support Disaster-Stricken Areas”. All
of its 863 employees donated money and a total of RMB86,555 was raised.
SINOMACH Employees Donating Money
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116 China National Machinery Industry Corporation
Employees of SINOMACH and its subordinate enterprises were enthusiastic in public-service activities, actively repaid the society, actively donated
money in such public-service activities as assisting poverty-stricken students and got involved in all kinds of volunteer activities. The Group and its
subordinate enterprises encouraged and organized employees to participate in the public-service events with the theme of respecting the elderly,
assisting those without family and helping the handicapped, and set up volunteer teams to support and get involved in important national and
regional activities. They have obtained admirable achievements and been affirmed by people in all walks of life.
China National Electric Apparatus
Research Institute Co., Ltd. and
Guangzhou Mechanical Engineering
R e s e a r c h I n s t i t u t e C o . , L t d .
subordinate to SINOMACH responded
to the municipal government’s call,
actively publicized, supported and
participated in the Asian Games and
organized the volunteer teams to
serve the Asian Games and make
contributions to a “Peaceful Asian
Games”, “Civilized Asian Games” and
“Harmonious Asian Games”.
China National Automotive Industry Import & Export Corporation subordinate to SINOMACH Engaged in
Learning and Practice Activities for Striving to Be Advanced and Excellent
Asian Games Volunteers
(IV) Employees’ Public-Service and Volunteer Teams
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Corporate Citizenship 2011 Social Responsibility Report
Caring for Mentally Handicapped Children
China CAMC Engineering Co., Ltd. subordinate to SINOMACH was concerned about the topic of mentally handicapped
children’s development and organized employee volunteers to get involved in caring for mentally handicapped children.
They went to Beijing Zhiguang Special Educational Training School to carry on colorful and varied exchange and get-
together activities, explore the mode of donating for the operation of the loving care base and strive to provide support for
the life, education and employment of the mentally handicapped children.
Volunteers of China United Northwest Institute for Design and Research subordinate to SINOMACH Respecting the Aged on the Seniors Day
Scene of Exchange and Get-together Activities
118 China National Machinery Industry Corporation
The year 2012 is the crucial year for SINOMACH to carry out its “12th Five-Year Plan” and ten-year development strategy. According to the relevant requirements of the SASAC of the State Council and SINOMACH, and based on its development practice, SINOMACH will continue to be guided by its successful experience, further enhance the awareness of hardships and risks, seize opportunities, respond to challenges, deepen reform and make continuous innovations to promote the Group’s sustainable development.
We shall continue to transform the modes of economic development, deepen the changes in management modes, quicken the pace of independent innovation and base ourselves on “two fields and three main businesses” to seek a higher level in operating performance.
We shall adhere to the concept of work safety, continuously reinforce the awareness of work safety, constantly strengthen work safety management and actively foster the atmosphere of safety culture to ensure the Group’s stable situation of work safety.
Prospects for the Future
1192011 Social Responsibility Report
Appendix
We shall continuously enhance the awareness of environmental protection and energy saving, improve the environmental management system, expand investment in the R&D of environmental protection technology and deeply carry out the practice of green operation to make greater contributions to the accomplishment of China’s goal of energy efficiency and emissions reduction.
We shall adhere to the concept of putting people first, always follow the core value of “Work Together, Win Together” and constantly strengthen communication and exchange with employees and other stakeholders to attain the common development of enterprises and stakeholders.
We shall continue to strengthen social responsibility management, constantly perfect the mechanisms for disclosing information about social responsibility, actively work out the measures for implementing the Group’s social responsibility plan and key social responsibility projects, and continuously promote the effective combination of the social responsibility concept with the Group’s day-to-day operation.
With their sails flying in the wind, hundreds of ships compete in the river. SINOMACH will closely center on strategic positioning in social responsibility as a widely respected and sustainable pacemaker in the machinery industry and join hands with stakeholders in re-forging the new brilliance of SINOMACH!
120 China National Machinery Industry Corporation
1. Strategy and Analysis
1.1 Statement from the most senior decision-maker of the organization about the relevance of sustainability to the organization and its strategy.
P3
1.2 Description of key impacts, risks, and opportunities. P50
2. Organizational Profile
2.1 Name of the organization. P11
2.2 Primary brands, products, and/or services. P11
2.3 Operational structure of the organization. P11
2.4 Location of organization’s headquarters. Title page
2.5 Number of countries where the organization operates, and names of countries with either major operations or that are specifically relevant to the sustainability issues covered in the report.
P11
2.6 Nature of ownership and legal form. P11
2.7 Markets served. P38
2.8 Scale of reporting organization. P4-5
2.9 Significant changes during the reporting period regarding size, s tructure, or ownership. Inapplicable
2.10 Awards received in the reporting period. P19
3. Report Parameters 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. Title page
3.2 Date of most recent previous report. Title page
3.3 Reporting cycle. Title page
3.4 Contact person for questions regarding the report or its contents. Title page
3.5 Process for defining report content. Title page
3.6 Boundary of the report. Title page
3.7 State any specific limitations on the scope or boundary of the report. Title page
3.8 Basis for disclosing information on partners, subsidiaries, leased facilities, outsourced operations, and other entities with remarkable influence.
Inapplicable
3.9 Data measurement techniques and the bases of calculations. Title page
3.10 Explanation of the effect of any re-statements of infor mation provided in earlier reports, and the reasons for such re-statement.
Title page
3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report.
Title page
3.12 Table identifying the location of the Standard Disclosures in the report. P120-122
3.13 Policy and current practice with regard to seeking external assurance for the report. P123
4. Governance, Commitments, and Engagement
4.1 Governance structure of the organization. P15
4.2 Indicate whether the Chair of the highest governance body is also an executive officer. P14
4.3 For organizations that have a unitary board structure, state the number of members of the highest governance body that are independent and/or non-executive members.
P14
4.4 Mechanisms for shareholders and employees to provi de recommendations or direction to the highest governance body.
P66
4.5 Linkage between compensation for members of the highest governance body, senior managers, and executives. P71
4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. P71
4.7 Process for determining the qualifications and expertise of the members of the highest governance body. P71
4.8 Internally developed statements of mission or values, codes of conduct, and principles. P20-21
4.9 Procedures of the highest governance body for overseeing the organization’s identification and management of economic, environmental, and social performance.
P28
4.10 Processes for evaluating the highest governance body’s own performance. Inapplicable
4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organization. P3
4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives which the organization subscribes to or endorses.
P105
4.13 Memberships in associations and/or national/international advocacy organizations which the organization holds. P33
4.14 List of stakeholder groups engaged by the organization. P32
4.15 Basis for identific ation and selection of stakeholders with whom to engage. P3
4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. P32
4.17 Key topics and concerns that have been raised through stakeholder engagement, and how the organization has responded to those key topics and concerns.
P32
GRI G3 Standards Index
Index of GRI (Global Reporting Initiative) Indicators
1212011 Social Responsibility Report
Appendix
5. Economic Performance Indicators
EC1 Direct economic value generated and distributed. P4-5
EC2 Financial implications and other risks and opportunities for the organization’s activities due to changes in the macroeconomic environment.
P36
EC3 Coverage of the organization’s defined benefit plan obligations. P71
EC4 Significant financial assistance received from government. P56
EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation.
Inapplicable
EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. P103
EC7 Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation.
P71
EC8 Development and impact of infrastructure investme nts and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement.
P105
EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts (e.g. driving local economic development).
P39/P41/P59
6. Environmental Performance Indicators
EN1 Materials used by weight or volume. P89
EN2 Percentage of materials used that are recycled input materials. Inapplicable
EN3 Direct energy consumption by primary energy source. P89
EN4 Indirect energy consumption by primary source. P89
EN5 Energy saved due to conservation and efficiency improvements. P93
EN6 Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives.
P93
EN7 Initiatives to reduce indirect en ergy consumption and reductions achieved. P88-89
EN8 Total water drawn by source. Inapplicable
EN9 Water sources significantly affected by draw of water. Inapplicable
EN10 Percentage and total volume of water recycled and reused. Inapplicable
EN11 Location and size of land owned, leased, or managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas.
Inapplicable
EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas.
Inapplicable
EN13 Habitats protected or restored. Inapplicable
EN14 Strategies, current actions, and future plans for managing impacts on biodiversity. Inapplicable
EN15 Number of International Union for Conservation of Nature (IUCN) Red Li st species and national conservation list species with habitats in areas affected by operations, by level of extinction risk.
Inapplicable
EN16 Total direct and indirect greenhouse gas emissions by weight. P88-89
EN17 Other relevant indirect greenhouse gas emissions by weight. P88-89
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. P88-89
EN19 Emissions of ozone-depleting substanc es by weight. Inapplicable
EN20 Nitric oxide (NO), sulfur oxide (SO), and other significant air emissions by type and weight. P88-89
EN21 Total water discharge by quality and destination. Inapplicable
EN22 Total weight of waste by type and disposal method. Inapplicable
EN23 Total number and volume of significant spills. Inapplicable
EN24 Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annexes I, II, III, and VIII, and percentage of transported waste shipped internationally.
Inapplicable
EN25 Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff.
Inapplicable
EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation. P93
EN27 Percentage of products sold and their packaging materials that are reclaimed by category. Inapplicable
EN28 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with environmental laws and regulations.
Inapplicable
EN29 Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations, and transporting members of the workforce.
Inapplicable
EN30 Total environmental protection expenditures and investments by type. P88
GRI G3 Standards Index
122 China National Machinery Industry Corporation
7. Labor Practices and Decent Work Performance Indicators
LA1 Total workforce by employment type, employment contract, and region. P5
LA2 Total number and rate of employee turnover by age group, gender, and region. Inapplicable
LA3 Benefits provided to full-time employees P66-75
LA4 Percentage of employees covered by collective bargaining agreements. P66
LA5 Minimum notice period(s) regarding operational changes. P66
LA6 Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs.
Inapplicable
LA7 Rates of injury, occupational diseases, lost days, and absenteeism, and number of work related fatalities by region. P78
LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases.
P68-70
LA9 Health and safety topics covered in formal agreements with trade unions. P66
LA10 Average hours of training per year per employee by employee category. P68-70
LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing car eer outcomes.
P71-72
LA12 Percentage of employees receiving regular performance and career development reviews. Inapplicable
LA13 Composition of governance bodies and breakdown of employees by category according to gender, age group and other indicators of diversity.
P71
LA14 Ratio of basic salary of men to women by job category. Inapplicable
8. Human Rights Performance Indicators
HR1 Percentage and total number of significant investment agreements that include human rights clauses or that have undergone human rights screening.
Inapplicable
HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken. Inapplicable
HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained.
Inapplicable
HR4 Total number of incidents of discrimination and actions taken. Inapplicable
HR5 Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights.
P66
HR6 Operations identified as having significant risk for incidents of child labor, and (core) measur es taken to contribute to the elimination of child labor.
P66
HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and (core) measures to contribute to the elimination of forced or compulsory labor.
P66
HR8 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations.
Inapplicable
HR9 Total number of incidents of violations involving rights of indigenous people and actions taken. Inapplicable
9. Society Performance Indicators
SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including their entry, operation and exit.
P105-110
SO2 Percentage and total number of business units analyzed for risks related to corruption. P53
SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures. P53
SO4 Actions taken in response to incidents of corruption. P53
SO5 Public policy positions and participation in public policy development and lobbying. Inapplicable
SO6 Total value of financial and in-kind contributions to political parties, politicians, and related institutions by country. Inapplicable
SO7 Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes. Inapplicable
SO8 Monetary value of significant fines and total number of non-monetary sanctions for noncompliance with laws and regulations.
Inapplicable
10. Product /Service Responsibility Performance Indicators
PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures.
Inapplicable
PR2 Total number of incidents of non-compliance with regulations and voluntary codes concerning health and safety impacts of products and services during their life cycle, by type of outcomes.
Inapplicable
PR3 Type of product and service information re quired by procedures, and percentage of significant products and services subject to such information requirements.
Inapplicable
PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes.
Inapplicable
PR5 Practices related to customer satisfaction, including results of surveys measuring customer satisf action. Inapplicable
PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship.
Inapplicable
PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes.
Inapplicable
PR8 Total numb er of substantiated complaints regarding breaches of customer privacy and losses of customer data. Inapplicable
PR9 Monetary value of significant fines for noncompliance with laws and regulations concerning the provision and use of products and services.
Inapplicable
GRI G3 Standards Index
1232011 Social Responsibility Report
AppendixThe UN Global Compact's ten principles
The UN Global Compact's ten principles 2011 Performance
Human Rights
Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and
Put people first, protect their rights and interests, build up growth channels and let them produce and live in a harmonious and safe environment and share the achievements of corporate development.
Principle 2: make sure that they are not complicit in human rights abuses.
Safeguard employees’ lawful rights and interests, provide stable employment opportunities, work out a reasonable remuneration guarantee mechanism, and expand employees’ career development channels, provide safe and healthy working environment, actively implement the policy for localizing overseas employees.
Labor Standard
Principle3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;
Set up trade unions at all levels, regularly hold employees’ representative meetings, and build up smooth channels for internal communication.
Principle4: the elimination of all forms of forced and compulsory labor;
SINOMACH strictly observes the Labor Law of the People’s Republic of China, the Labor Contract Law, the Regulations on Collective Contract and other relevant laws and regulations. In 2011, 100% of regular employees signed the labor contract. We insist that all employees be equal, ensure that no employees are discriminated against due to their difference in race, gender, age and other factors, prohibit the use of child labor and oppose forced labor in all its forms.
Principle 5: the effective abolition of child labor; and
Principle 6: the elimination of discrimination in respect of employment and occupation.
Focusing on promoting the building of the system of employees’ representative meetings and making public the corporate affairs, SINOMACH actively provides for all the employees’ rights including democratic participation, democratic management, democratic supervision and democratic decision making, constantly perfects the system of equal consultations and collective contracts and establishes and improves the interests coordination mechanism.In multinational operations, SINOMACH has always pursued equal and unbiased employment policies, worked out labor protection regulations and measures, directly and indirectly provided 13,000 job opportunities for Africa, carried out localized procurement and community investment, got involved in local community welfare activities, advocated on topics of safety, health and education for African children and persisted in serving local communities and residents by various means and in various forms.
Environment
Principle 7: Businesses should support a precautionary approach to environmental challenges;
Environmental protection needs the guarantee of perfect systems and mechanisms. SINOMACH has made efforts to build up the “three systems” for energy effi ciency and emissions reduction (EEER) to reinforce its green management.
Principle8: undertake initiatives to promote greater environmental responsibility; and
During the “11th Five-Year Plan”, SINOMACH formulated the Tentative Measures of China National Machinery Industry Corporation for the Management of Energy Efficiency and Emissions Reduction, strengthened the building of the EEER systems and according to the requirements of SASAC, reported 30 key EEER projects with total investment of RMB460 million.
Principle9: encourage the development and diffusion of environmentally friendly technologies.
SINOMACH fuses advanced environmental protection technologies and techniques in the production process. Aiming at saving energy and reducing consumption and by means of management and technology, the Group accomplishes pollution and waste control in the entire process of production and reduces pollutant emissions and material consumption.
Anti-Corruption
Principle10: Businesses should work against all forms of corruption, including extortion and bribery.
Firmly focusing on the center of production, scientifi c research and operation and on the overall situation of reform, development and stability and giving priority to promoting the building of the punishment and prevention system, SINOMACH has promoted the implementation of the responsibility system of combating corruption and upholding integrity, deepened effi ciency supervision, conducted special supervision and inspection, reinforced publicity and education in combating corruption and upholding integrity and played an active role in accomplishing the corporation’s leap-forward development.
124 China National Machinery Industry Corporation
Rating Report
Rating Report on SINOMACH CSR Report 2011Upon the request of China National Machinery Industry Corporation (hereinafter SINOMACH), CSR Research Center of Economics Division of Chinese Academy of Social Sciences invited experts from Chinese Expert Committee on CSR Report Rating to form SINOMACH CSR Report 2011 Rating Team. The rating team rated SINOMACH CSR Report 2011 (“report”) as follows.1. Rating Criteria Guidelines on Corporate Social Responsibility Reporting for Chinese Enterprises (CASS-CSR 2.0) published jointly by the aforesaid Center, China Enterprise Confederation, China Petroleum and Chemical Industry Association, China Light Industry Federation, the Sino-German Corporate Social Responsibility Project, China WTO Tribune and China Committee of Corporate Citizenship. 2. Rating ResultsCompleteness(★★★☆)The Report discloses information on corporate responsibility practices in terms of corporate responsibility management, production safety, environmental conservation and corporate citizenship. With 65 Key Performance Indicators being disclosed, the report has fair completeness. Materiality(★★★★)The Report discloses many material issues such as business integrity & fair competition, product and technology innovation, quality management, safe production and local employment. The report has good materiality. Balance(★★★☆)This report discloses negative information on the number of safety related incidents, mortality rate per thousand people, the number of injuries and causalities etc. But the negative incidents and countermeasures are not disclosed. Therefore the report has fare degree of balance. Comparability(★★★★★)This Report discloses data on 43 key performance indicators of more than 3 consecutive years. The report has excellent comparability. Readability(★★★☆)This report illustrates responsible practices using pictures and charts, though some parts of the report are unclear and verbose. The report has fair readability. Creativity(★★★☆)This report illustrates corporate environmental reasonability in terms of green stewardship, green production, green innovation and green office. Therefore bears fair creativity. Overall rating(★★★★)Through evaluation and deliberations, the rating team agreed to rate SINOMACH CSR Report 2011 as a good report by giving a four-star rating to it. 3. Suggested improvements 1. Improve the completeness by disclosing more indicators on water and energy resources conservation, obsolete equipment recycling etc. 2. Improve the degree of balance by disclosing the incurring negative incidents and the countermeasures.3. Improve the readability by using more diverse and representative pictures. 4. Rating team Team leader: Peng Huagang, Vice president of executive council of the Center and director general of Research Bureau, SASAC.Team members: Yin Gefei, Deputy Director of WTO Tribune Zhang Wang, Secretary General of China Listed Companies CSR Research Center, Security TimesZhong Hongwu, Director of CSR Research Center, Economics Division, Chinese Academy of Social Sciences Zhang En, Deputy Executive Director of CSR Research Center, Economics Division, Chinese Academy of Social Sciences
Chen Jiagui
Chairman of rating expert panel
Standing committee member of NPC
Acting chairman of Presidium of Divisions,
Chinese Academy of Social Sciences
Peng Huagang
Head of the rating team
Vice president of executive council of the Center
Director general of Research Bureau of SASAC
1252011 Social Responsibility Report
Appendix
Feedback Form
Respectable Reader,
Thank you very much for reading the 2011 Corporate Social Responsibility Report of China National Machinery Industry
Corporation in the thick of things. In the preparation of the Report, it’s hard to avoid flaws and omissions. We request that you
can propose your valuable opinions and feed them back to us so that we can make continuous improvements on it.
Thank you!
China National Machinery Industry Corporation
December 2011
1. How do you generally evaluate the CSR Report of SINOMACH?
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2. How has SINOMACH done in performing market responsibility?
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3. How has SINOMACH done in performing environmental responsibility?
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4. How has SINOMACH done in performing social responsibility?
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5. Do you think whether this Report can reflect the significant impacts of SINOMACH on market, environment
and society?
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6. How objective and complete do you think are the information, data and indicators disclosed in this Report?
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7. How logically do you think this Report has been prepared?
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8. How readable do you think is this Report?
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9. If you have other opinions and suggestions on the SR work of SINOMACH and this Report, you’re welcomed
to put them forward here:
Note: Please mark “√”in the appropriate “□”.
Widely Respected Leader for Sustainable Machinery Industry
Ch
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