2020 Social Responsibility Report

　　Science and technology first, innovation and development take repaying the society as its own duty

　　Company Overview

　　Henan Loncin Motorcycle Co., Ltd. (formerly Pingdingshan Loncin Motorcycle Co., Ltd.) (hereinafter referred to as "Loncin Motorcycle") is affiliated to Loncin General Dynamics Co., Ltd., located in Ye County, Pingdingshan City, Henan Province. It is a three-wheeled motorcycle And a professional manufacturer of parts and components. Founded in 1994, it was a three-wheeled motorcycle production enterprise established as a joint venture with Chongqing Longxin Group in 2004. In 2005, it passed the on-site inspection of production access by the National Development and Reform Commission and became a national motorcycle production announcement enterprise.

　　The company has a registered capital of 80 million yuan, and has now built 4 three-wheeled motorcycle industry clusters around Longxin Industrial Park, with an annual production capacity of 300,000 vehicles. The existing factory area is the first phase of the relocation and expansion project, which was officially put into use in 2018, covering an area of ​​266,800 square meters and a building area of ​​220,000 square meters. In 2013, the company signed a strategic cooperation agreement with the Pingdingshan City Government. Relying on the relocation and expansion project, the new factory area was upgraded and the original gasoline-fueled motorcycle production technology was upgraded by adopting the mature production technology of the tricycle of Chongqing Headquarters, without increasing the production of gasoline-fueled tricycles. At the same time, it will increase the production capacity of 300,000 electric tricycles. Currently, the second phase of the relocation and expansion project is under construction.

　　The company has industry-leading electrostatic spinning cup automatic coating piece line, pre-treatment line, stamping production line, welding production line, final assembly production line and complete product inspection line, etc., with more than 300 sets of large and medium-sized equipment and special machines.

　　The company’s "Loncin" brand three-wheeled motorcycles, old-aged vehicles, fully enclosed, semi-enclosed, handicapped, engineering and other three-wheeled motorcycles are beautiful and novel, with excellent performance and durability. The products are sold in more than 30 provinces and cities nationwide. , Autonomous Region, and exported to Southeast Asia, Africa and other countries. It is an ideal transportation, transportation and wealth-making tool, and is deeply favored by consumers.

　　Henan Longxin Locomotive Co., Ltd. complies with "GB/T19001-2016 idt ISO9001: 2015 Quality Management System Requirements", "GB/T24001-2016 idt ISO14001: 2015 Environmental Management System Requirements and Guidelines for Use", "GB/T28001-2011 idt OHSAS 18001:2007 Occupational Health and Safety Management System Requirements" standard requirements, obtained system certification.

　　The company revolves around the business idea of ​​"focusing on strategy, matching and integrating; defining requirements, conforming to the law; practicing methods, upgrading results", focusing on quality, focusing on improving economic efficiency, down-to-earth, working in unity, and making fuel motorcycles Be bigger and stronger, and develop into the relevant tricycle industry. Strive to take a leading position in some market segments, especially in the commercial field of tricycles.

　　With the core business philosophy of "technology patenting, product refinement, manufacturing specialization, and management standardization", the company has successively established and been approved: high-tech research and development center, the only enterprise in the same industry that has obtained the national vocational skills appraisal right, Henan Provincial Motorcycle Engineering Technology Research and Development Center, ISO9001-2008 quality system certification, national compulsory product "CCC" certification, more than 200 approved patent certificates, and high-tech enterprises in Henan Province.

　　The company is recognized as a national key enterprise for creating famous brands by the Ministry of Agriculture of the People's Republic of China, and the Henan Provincial Department of Science and Technology is recognized as a high-tech enterprise and technical product.

　　Organizational structure

　　Group companies wholly-owned or controlled companies have established shareholders meetings, board of directors, board of supervisors (referred to as the "three committees"), employee directors and employee supervisors in accordance with the "Company Law of the People's Republic of China". There are management department, finance department, manufacturing department, quality technology department, design office, sales department, export department, purchasing department and other departments. Each department has a clear division of responsibilities and has formed a set of effective operation and management models, united and pragmatic, efficient in decision-making, and effective in execution.

　　company culture

　　Cherish life and protect employees' health; improve the environment and benefit mankind; technology-based, fulfill quality commitments; continuous improvement to enhance customer satisfaction; compliance with laws and regulations to prevent major pollution

　　Memorabilia

　　Henan Loncin Footprint

　　At present, the domestic sales area of ​​Henan Longxin Locomotive Co., Ltd. has radiated to more than 30 provinces, cities, and autonomous regions, with a total of 500 first-level sales outlets and 1,300 second-level sales outlets. In addition, Henan Loncin Locomotive Co., Ltd. relies on Chongqing Loncin Import and Export Company (stock code: 603766), and on the basis of a strong overseas network, it actively expands the overseas sales channels of tricycles. In December 2012, Henan Loncin successfully delivered its first export orders overseas. Customers have realized orders from scratch. By 2019, the annual export sales volume reached 80,000 units. Now there are 25 overseas networks, and the products are exported to Ghana, Thailand, the Philippines, Afghanistan, Indonesia, Pakistan, Mexico, Morocco, Egypt, etc. More than thirty countries. The sales company currently has more than 30 full-time sales staff. In recent years, the company's performance has been increasing at a growth rate of about 20%, and the annual tax payment has been more than 25 million yuan.

　　Henan Longxin Development History

　　Henan Longxin Product Development History

　　Economic benefits

　　In 2019, the company achieved a substantial increase in production and revenue. For the whole year of 2019, the company's output reached 155,366 vehicles, with a total industrial output value of 1.215 million yuan. The company has continuously improved product quality, carried out in-depth activities of increasing production and saving, increasing revenue and reducing expenditure, strengthened analysis of economic activities, strengthened process control and management, and maintained a stable business situation.

　　Environmental benefits

　　Environmental protection has always been a major issue related to international people’s livelihood. Our company has been paying great attention to environmental protection since its establishment. The company has formulated a series of rules and regulations for this purpose and implemented them in practical work.

　　The company always adheres to the tenet of people-oriented, comprehensive management, health and safety, energy saving and consumption reduction, sustainable development, green manufacturing, and environmental pollution prevention. Adhere to the concept of cleaner production and reduce environmental pollution, adopt advanced manufacturing technology, select efficient and applicable new technologies, new processes, and new equipment, and adopt advanced equipment at home and abroad, such as "enriched regeneration + RCO" environmentally friendly waste gas treatment system, natural gas substitution Infrastructural facilities such as coal burning and garden-style production sites. Achieve clean production and pollution-free emissions.

　　Environmental waste gas treatment: Invest 3.51 million yuan to introduce more advanced production equipment, electrophoretic coating line instead of powder coating line, so that workshop production does not involve paint spraying, and technical upgrades, optimization of production processes, and reduction of pollutant emissions from the source. The utilization rate has been increased from the original 50% to more than 80%, while saving 40% of the paint consumption, effectively improving the material utilization rate, reducing the generation of waste gas, waste water and waste residue, and greatly improving the level of clean production.

　　Before painting, the pretreatment line is equipped with paint mist treatment system and organic waste gas activated carbon fiber adsorption + catalytic combustion system. Outside the painting workshop, invest in the construction of a new, advanced, mature and complete purification treatment for the treated waste gas. The concentrated regeneration + RCO waste gas treatment system realizes clean production.

　　Welding fume control: According to the welding process and workshop layout of the workshop, the company has invested more than 5.2 million yuan in total to install 10 welding fume collection equipment to control the fume under the condition of adopting the ventilation system of the workshop roof ventilation and local ventilation. The soot purification efficiency of the system reaches 99%, and the purified exhaust gas is discharged through the high tower.

　　Sewage discharge treatment

　　According to relevant qualification unit testing, the company invested more than 3.5 million to design and build a comprehensive sewage treatment station with a mature treatment process and a daily capacity of 200㎥/d inclined pipe sinking and floating + air flotation process. The sewage treatment effect is far better than the third-level discharge standard in Table 4 of the "Integrated Wastewater Discharge Standard" (GB8978-1996), ensuring that the company's wastewater is effectively treated and discharged to the urban sewage pipe network.

　　Promotion and use of environmentally-friendly water-based paint: With the introduction of national environmental protection, energy-saving and emission reduction and the increasing requirements of environmental protection laws and regulations, the company has invested 2.68 million yuan to promote the use of environmentally-friendly water-based paints, making the VOC emissions of traditional solvent-based paints approximately 130G /m2, and the VOC emission of water-based paint is about 36G/m2.

　　Employee rights

　　The company actively improves the production and living environment of its employees, and aims at an ecological garden-style enterprise. It actively implements technical measures such as fire prevention, explosion prevention, waterproofing, moisture prevention, ventilation, heat insulation, noise prevention, labor safety, industrial hygiene, etc., and organizes a number of team building Activities to ensure that employees work happily and their reasonable rights and interests are protected

　　Future outlook

　　"Loncin" brand three-wheeled motorcycles, old-aged vehicles, fully enclosed, semi-enclosed, disabled, engineering and other three-wheeled motorcycles produced by Henan Longxin Locomotive Co., Ltd., as well as petrol-electric hybrid tricycles, pure electric tricycles, beautiful models Novelty, excellent performance and durability, it sells well in more than 30 provinces, municipalities and autonomous regions across the country. In addition, the company has formed a relatively complete and stable dealer network in all regions of the country through continuous development and accumulation, with product popularity, recognition, and reputation Degree is higher. In terms of technology, the company has an independent R&D technical team. Team members actively understand the trends of the three-wheeled motorcycle industry and develop and design a best-selling product based on the requirement of customer satisfaction first.

　　The company adheres to the principle of scientific development, adhering to the business philosophy of "technology patents, product refinement, manufacturing specialization, and management standardization", and continuously improves the vertical integration capabilities and professional manufacturing level of core products to provide differentiated features and patents. Technical and trend-oriented market positioning strives to build the first brand in the field of tricycle commercial load, firmly grasps the pulse of the market, and actively researches and develops sanitation vehicles, which are mainly used in urban and rural garbage removal, express logistics, and low-speed transportation tools in urban and rural areas. Special new energy vehicles such as logistics vehicles and new energy vehicles. With Henan Loncin as the leader, actively attract parts supporting enterprises to settle in Loncin Industrial Park, and strive to promote the construction of export production bases for the application of digital technology, and form a complete three-wheeled motorcycle industry chain group to build a well-known motorcycle production and manufacturing in the country. Scientific research and development, foreign trade export base.