Dalian Dongfang Yipeng Equipment Manufacturing Co., Ltd. 2024 Social Responsibility Report

I. Preface

Dalian Dongfang Yipeng Equipment Manufacturing Co., Ltd. continues to uphold its core values of "pursuing excellence, focusing on quality, continuous innovation, and customer supremacy" in 2024. The company has not only achieved remarkable results in its business areas but also actively fulfilled its social responsibilities, taking the initiative and bravely shouldering its duties. It always takes the responsibility of China's high-end equipment manufacturing industry as its own, contributing to the high-quality development of the social economy. This report will detail the company's performance in fulfilling its social responsibilities in 2024.

II. Company Overview

Dalian Dongfang Yipeng Equipment Manufacturing Co., Ltd., established in 2004, has, after more than 20 years of development, become a national high-tech enterprise integrating scientific research, design, production, manufacturing, installation, corrosion prevention, logistics, and services. The company's products cover various fields, including petroleum refining, petrochemicals, coal chemicals, natural gas, new energy, new materials, nuclear industry, military industry, and environmental protection. The company has more than 500 sets of manufacturing equipment and possesses the annual production capacity of 50,000 tons of pressure vessels and the design and manufacturing capabilities of A1-level pressure vessels.

The company's products are represented by high-pressure vessels, hydrogenation reactors, vaporizers, large towers, nuclear industry vessels, threaded locking ring high-pressure heat exchangers, and coiled tube heat exchangers. It is an important equipment supplier for major petrochemical enterprises such as CNPC, Sinopec, CNOOC, and China National Nuclear Corporation. Products are exported to many countries and regions worldwide, including Russia, Kazakhstan, Saudi Arabia, Zambia, Algeria, Turkey, Switzerland, the Netherlands, South Korea, and Argentina. The company is a "Top 100 Chinese Innovation Demonstration Enterprise," a Dalian national-level "high-tech enterprise," a Liaoning Province "specialized, refined, and unique small and medium-sized enterprise," a Liaoning Province "innovative small and medium-sized enterprise," and a "Dalian Enterprise Technology Center." For many years, the company has been among the "Top 100 Manufacturing Enterprises in Dalian" and is also ranked among the "Top 500 Petroleum and Chemical Enterprises in China."

III. Social Responsibility Performance

(I) Technological Innovation and Industrial Development

1. Participation in International Exhibitions: From June 10 to 14, 2024, Ms. Xing Qi Yuan, Vice Chairman of the company, led the International Business Department team to participate in "ACHEMA 2024," the 2024 German Achema Chemical and Biological Industrial International Exhibition, held at the Frankfurt Exhibition Center in Germany. At the exhibition, through special booth displays, product model displays, video broadcasts, and business consultations, the company conveyed its core values, attracting numerous exhibitors and potential clients. This showcased the company's strong and leading manufacturing capabilities in the heavy industrial equipment manufacturing sectors such as petroleum and chemicals, laying the foundation for expanding overseas markets, strengthening business and technical exchanges, and implementing the dual circulation development strategy.

2. Strengthening International Exchanges: In 2024, world-renowned companies such as SIBUR (Russia), KBR (USA), LUMMUS TECHNOLOGY (USA), and DAELIM (South Korea), all giants in the petrochemical industry, visited Dongfang Yipeng for tours and business exchanges. SIBUR (Russia) also partnered with Dongfang Yipeng on projects, signing several purchase orders. In 2024, Dongfang Yipeng was awarded the Outstanding Supplier Annual Award by SIBUR (Russia).

3. Technological Innovation Achievements: In the field of patent technology, Dongfang Yipeng obtained 6 utility model patents in 2024. The patent for "A jig for straight tubes of coiled tube heat exchangers" (Authorization Announcement No. CN 222134687 U) uses a structure with a slider, roller shaft, and rollers that can clamp multiple straight tubes together. The rollers allow for rolling transport, and the slider can be freely moved to adjust the distance between the rollers to accommodate heat exchanger straight tubes of different lengths. This effectively reduces the human resource consumption during the transport of heat exchanger straight tubes and avoids the risks of tube dropping and collision damage during manual transport. By the end of 2024, the company had 65 patent technologies.

4. Major Project Delivery: A key project in the 14th Five-Year Plan, Sinopec's "Ten Dragons" scientific and technological research project: The extra-large coiled tube heat exchanger for the Sinopec Zhenhai Refinery's propane dehydrogenation unit, manufactured by Dongfang Yipeng over 8 months, passed expert acceptance and was successfully delivered. This equipment has an inner diameter of 6.1 meters, a length of approximately 28 meters, a metal weight of approximately 850 tons, and a heat transfer area of approximately 36,000 square meters. In terms of single-unit mass, diameter, length, heat transfer area, technical requirements, and manufacturing difficulty, this equipment has reached a world-class level, setting a new record for the manufacture of extra-large, high-efficiency coiled tube heat exchangers in China. This has milestone significance for the large-scale development of China's petrochemical industry and injects new impetus into the development of the petroleum refining and high-end synthetic materials industries.

(II) Industry-Academia-Research Cooperation

Dongfang Yipeng actively deepened its industry-academia-research cooperation. Since 2015, it has signed industry-academia-research cooperation agreements with numerous universities and research institutes, including Dalian University of Technology, Liaoning University of Petrochemical Technology, Dalian Maritime University, Dalian Petrochemical Research Institute, Dalian Institute of Chemical Physics, and Beijing University of Chemical Technology, carrying out various forms of cooperation. Through industry-academia-research cooperation, the company has completed the research and development of products such as the "cylinder longitudinal seam alignment adjuster," "simple buffer," and "heat treatment device for the fillet weld between the tube and tube sheet." Since the beginning of 2021, the company has collaborated with Dalian Maritime University at the undergraduate and master's levels to establish a teaching and internship base. In 2024, Dongfang Yipeng signed an agreement with Beijing University of Chemical Technology to establish an "off-campus practical teaching base," becoming a teaching and internship base for the university. The stable industry-academia-research cooperation relationship provides a good technical guarantee for the company's product research and development, technical improvement, production, and industrial application, laying a solid foundation for school-enterprise cooperation, talent training, and technological achievement transformation.

Due to its outstanding performance in the field of industry-academia-research, on March 17, 2024, at the 15th China Industry-Academia-Research Cooperation Innovation Conference held in Beijing, Dongfang Yipeng was awarded the "China Industry-Academia-Research Cooperation Innovation Award." This is another honor for the company following its recognition as a "Top 100 Chinese Industry-Academia-Research Cooperation Demonstration Enterprise."

(III) Green Development

1. Photovoltaic Power Generation Project: Dongfang Yipeng cooperated with New Hope Energy, a top 500 enterprise in China, to utilize standardized factory rooftops to install photovoltaic components in the heavy container workshop, machining workshop, and riveting and welding workshop, constructing a 2MW distributed photovoltaic power generation project. The photovoltaic power generation adopts a "self-generation and self-consumption, surplus power grid-connected" model. The annual power generation is 2.1 million kWh, saving approximately 600,000 yuan in electricity costs annually, saving 258.09 tons of standard coal, and reducing greenhouse gas CO2 emissions by approximately ₂ approximately 1168.44 tons, contributing to the achievement of the "dual carbon" goals.

2. Environmental Product R&D: During product R&D and production, the company emphasizes the integration of environmental protection concepts and is committed to developing and manufacturing more environmentally friendly and efficient equipment to reduce its environmental impact. The company actively implements factory digitalization reform, enhances intelligent manufacturing, builds a green factory, and actively promotes the green development of the industry.

(4) Social Contribution

   1 . Overseas Project Expansion: In 2024, Dongfang Yipeng signed several overseas projects. Such as the 200,000-ton/year MTBE (methyl tertiary butyl ether) project for Algeria's National Oil and Gas Company (SONATRACH), a joint EPC (Engineering, Procurement, and Construction) project between Sinopec Guangzhou Engineering Company (LPEC) and China National Technical Import & Export Corporation (CNTIC); the EPC project for the upgrade and renovation of the DS2 produced water treatment and gathering station at the Majnoon oil field of the Basra Oil Company (BOC) in Iraq, undertaken by Huayou Huibopu Technology Co., Ltd. (HBP); and the EPSS (Engineering, Procurement, and Supply Service) project for SIBUR PDH/PP in Russia, etc.

2. Enterprise Product Export: In order to implement the spirit of the Beijing Summit of the Forum on China-Africa Cooperation, In 2024, Dongfang Yipeng manufactured and exported 30 condensers and heat exchangers for the Zambia UCFCL 300,000 MTPA Urea Project in Zambia, Africa, greatly promoting local economic and social development. Important petrochemical equipment for Algeria is also in the manufacturing cycle. The Zambia United Capital 300,000-ton/year fertilizer project is an important component of industrial and agricultural cooperation between China and Zambia. This is another milestone in pragmatic cooperation and friendship between China and Zambia following the "Tanzan Railway," contributing to the construction of the "Belt and Road" initiative and the development of China-Africa trade.

3. Employment and Talent Cultivation: Dongfang Yipeng has continued to grow and develop, providing a large number of jobs locally. At the same time, the company focuses on talent cultivation, improving employees' professional skills and comprehensive quality through internal training and external further education, providing broad space for employees' career development. In order to cultivate and create "national skilled workers," in addition to holding internal skills training and competitions, the company has also participated many times in the welding (SMAW) skills competition "Million Workers' Competition, Striving for Trillion-Dollar Achievements" hosted by the Lushunkou District Federation of Trade Unions of Dalian City, and has won numerous first and second prizes. In 2024, Dongfang Yipeng welder Liu Guangyu received the "Liaoning May 1st Labor Medal".

4. Tax Contribution: The company pays taxes according to law, actively cooperates with the tax authorities, contributes to local fiscal revenue and local economic development, and has been a major taxpayer in Lushunkou District for many years. The Lushunkou District Tax Bureau continuously follows up on the progress of the company's major projects and promotes "policy publicity + tracking service + one-to-one file assessment" closed-loop service to promptly resolve tax problems encountered during the company's manufacturing and R&D process, accurately deliver policy benefits, and help the company's development.

IV. Future Outlook

The world today is undergoing a major transformation unseen in a century. International geopolitical risks are rising, trade protectionism is on the rise, industrial chains and supply chains are undergoing deep adjustments, and the world economy is stumbling forward amid numerous uncertainties.

Under the current environment and in future development, Dalian Dongfang Yipeng Equipment Manufacturing Co., Ltd. will continue to adhere to technological innovation and continuously improve product quality and technical level; continuously strengthen industry-academia-research cooperation and promote the transformation of scientific and technological achievements; actively practice the concept of green development and make greater contributions to achieving the "dual carbon" goals; further expand the domestic and international "dual circulation" market, strengthen international exchanges and cooperation, and contribute more to the construction of the "Belt and Road"; at the same time, actively fulfill its social responsibilities, pay attention to social welfare undertakings, contribute to the harmonious development of society, and contribute Dongfang wisdom and strength to the realization of Chinese-style modernization and the promotion of high-quality economic development.