Decai Decoration Group Co., Ltd.

On May 27th, DeCai Shares officially released its "2023 Sustainable Development Report". In 2023, DeCai Shares continued to deepen its lean management path, focusing on building a future-oriented full-scenario management system for construction. It made innovative practices and achieved remarkable results in the fields of risk management, low-carbon development, and supply chain management. During the reporting period, the company continued to increase its investment in research and development, with R&D investment of 123 million yuan and 316 R&D personnel. It obtained a total of 900 patents and formulated and published 44 national, industry, local, and group standards. It also increased its efforts in employee training, with an investment of 928,200 yuan in employee training and 23,000 participants. The union establishment rate reached 100%. It fulfilled its social responsibility in combination with its own situation, with a total investment of 1.271 million yuan in external donations and public welfare projects. In addition, the company regards the continuous reduction of carbon dioxide emissions per 10,000 yuan of output value as an unshakable task. By optimizing architectural design, adopting low-carbon building materials, promoting green construction technology, and utilizing renewable energy, it ensures that the overall carbon emissions of the enterprise peak by 2030 and gradually decline on this basis. 

As an active practitioner of ESG principles in the construction industry, Decai Corporation has established an ESG Committee and formulated detailed work guidelines to ensure the deepening and practical implementation of the company's strategic planning for environmental protection, social responsibility, and corporate governance, continuously strengthening ESG management. In 2023, the company's S&P Global CSA score exceeded that of 66% of enterprises in the global construction and engineering industry, and its Wind ESG rating was upgraded to A. It ranked 29th among listed companies in the A-share and Hong Kong stock markets in the construction and engineering industry, ranking among the top in the industry. 

Strengthen risk control management and solidify the cornerstone of development 

The company continues to improve its governance structure, unwaveringly prioritizing the construction of the "three major systems" and establishing a systematic, information-based, and digital internal governance and risk management system. Through various methods such as standardization construction, litigation management, internal control management, and supervision management, it has built a "three lines of defense" for risk management and control, comprehensively identifying and managing various risks faced by corporate operations and management, and strengthening the barrier for operational risk management and control. 

Meanwhile, the company has continuously improved its quality and safety management system and regulations, strictly enforced engineering safety, and rigorously managed project management. The annual investment in safety production was approximately 72.79 million yuan, achieving a monthly inspection coverage rate of 100% for projects, a project acceptance rate of 100%, and zero major safety and casualty accidents. The company has won 27 provincial and municipal safety awards. The company strictly follows the OPDCA cycle management requirements, implements refined quality management, achieves full coverage of quality management, and promotes steady improvement in quality management level. 

Implement low-carbon management and jointly build a beautiful China 

The company actively responds to the national dual-carbon goals, continuously practices the concept of sustainable development, and continuously promotes green and low-carbon development through deepening green innovation, promoting green buildings, and carrying out green operation practices. During the reporting period, Decai Shares was successfully selected as a pilot enterprise for the construction of a green, low-carbon, and high-quality development pilot zone in Shandong Province. 

To further enhance the scientific and systematic management of carbon emissions, the company has engaged a third-party verification agency to conduct carbon emission inventories/verifications for its own buildings and some key projects it has undertaken. The verification results for greenhouse gas emissions from the main science hall building exhibition project of Qingdao Science and Technology Museum Phase I and the expansion project of Qingdao Museum are 808.6tCO2 and 727.52tCO2, respectively. The greenhouse gas emission inventories for De Cai Building and De Cai·Zhongfang International Creative Design Center Building are 812.88tCO2 and 343.99tCO2, respectively. In 2023, the greenhouse gas emissions from the production end of De Cai High-Tech, a wholly-owned subsidiary of the company, amounted to 478.54tCO2. The application of the "Door and Window Starlight" 70 series side-hung door products can achieve a carbon reduction of 151.25tCO2, the 111 series external screen window integration can achieve a carbon reduction of 94.33tCO2, and the 91 series double inner-opening window small screen window can achieve a carbon reduction of 22.11tCO2. In October 2023, some series of products from De Cai High-Tech's "Door and Window Starlight" were successfully selected into the list of Qingdao's eleventh batch of green building materials credit and green insurance inventory products. 

Carbon verification report for key projects 

Strengthen supply chain management and build a harmonious ecosystem 

 In the process of building a sustainable supply chain, the company has set its sights on the management objectives of full-process visualization, supply chain collaboration, and whole-process standardization. It has established a closed-loop management system of "three flows and one ecosystem" and a sunshine procurement platform control system. Through digital supplier management, open procurement platform, and efficient material turnover rate, it helps achieve the four major goals of cost reduction, efficiency improvement, speed increase, and win-win situation, and promotes the joint construction of an ecosystem with suppliers. The report shows that the company has more than 20,000 suppliers in its sunshine procurement, with 29,000 bidding projects online, and the annual growth rate of excellent suppliers is about 25%. 

Meanwhile, the company has established a supplier lifecycle management system encompassing supplier introduction, supplier evaluation, and supplier optimization. To date, the company has reviewed and approved over 3,800 suppliers for inclusion in its database, conducted over 800 social responsibility audits on suppliers, and conducted over 8,000 annual supplier evaluations. 

In 2023, Decai Shares, based on its core business and focusing on strategic objectives, continuously enhanced its operational and management capabilities with lean management principles. Looking ahead, Decai Shares will persist in deepening reform and innovation, embracing the concept of sustainable development, and promoting harmonious economic, social, and environmental progress. It is striving to become an internationally influential boutique enterprise across the entire construction industry chain!