2019 Annual Social Responsibility Report of Schweppes Chemical Co.

I. Preface
       Founded in 1994 and restructured from a state-owned enterprise to a joint-stock company in 2001, headquartered in the national Linyi Economic and Technological Development Zone, SKFH is one of the first enterprises producing compound fertilizers in China.
Company Profile
       The company has more than 3,000 employees and total assets of 6.8 billion yuan, is a national key compound fertilizer enterprise integrating scientific research, production and comprehensive agricultural services, with an annual production capacity of 1.6 million tons, and is the largest manufacturer of stable fertilizers in China, ranking fourth in the same industry in terms of annual production and sales volume, with rapid growth in production and sales volume for five consecutive years from 2013 to 2017, and leading the domestic industry in terms of growth rate. Our products include compound fertilizer, stable long-lasting fertilizer, synchronous nutrient fertilizer, urea-formaldehyde fertilizer, water-soluble fertilizer, microbial fertilizer, organic fertilizer, liquid fertilizer, monoammonium, diammonium, industrial grade monoammonium and so on.
       The company has been recognized as the "National Soil Formula Fertilizer Project Designated Production Enterprise" by the Ministry of Agriculture, the National Torch Plan Key High-tech Enterprise, the Ministry of Industry and Information Technology Industrial Enterprise Intellectual Property Cultivation Advantage Enterprise, Shandong Province Innovative Enterprise, China Patent Shandong Star Enterprise, etc. The company has provincial-level enterprise technology center, postdoctoral research station, Shandong Province Stable Fertilizer Engineering Technology Research Center, Linyi City new fertilizer industry cluster collaborative innovation engineering laboratory and other scientific research platforms, is the permanent executive body of the Shandong Province Stable Fertilizer Industry Technology Innovation Strategic Alliance based on the unit, with the Chinese Academy of Sciences Nanjing Institute of Soil to build a national engineering laboratory for soil nutrient management, with the Chinese Academy of Sciences Liu Xingtu academician It has established 3 national standards and 2 industry standards.
       The company has established long-term cooperation with more than 30 research institutes, including Shenyang Institute of Applied Ecology of Chinese Academy of Sciences and South China Agricultural University. The two achievements of "nitrogen and phosphorus fertilizer slow release and release promotion technology" and "controlled release coating technology" undertaken by Shenyang Institute of Ecology and South China Agricultural University have been industrialized in the company, and two series of new fertilizer varieties of stable long-lasting slow release fertilizer and variable speed controlled release fertilizer have been developed. The company has developed two series of new fertilizers, namely stable and long-lasting slow-release fertilizer and variable-speed controlled-release fertilizer, and has taken the lead in forming a product pattern of "combination of internal slow-release and external control, slow-release and controlled-release" in the same industry, with the core technology at the international leading level. The company has undertaken more than 30 provincial-level scientific research projects, such as the "Eleventh Five-Year Plan" and "Twelfth Five-Year Plan" National Science and Technology Support Program, National Spark Program, National Torch Program, and National Key New Products, etc. The company actively promotes technological progress and new product development, and strengthens the enterprise The company has obtained 54 national patents, including 23 invention patents, 13 utility model patents and 18 design patents, applied for 20 national invention patents and 6 PCT international patents, and developed 16 new products.

I. Fertilizer whole industry chain

      Ltd., Wazagun Mining Co., Ltd., Gansu Shikofeng Ecological Technology Co., Ltd., Liaoning Shikofeng New Fertilizer Co. In order to realize the integrated production and marketing pattern with complementary resources, smooth logistics and full coverage of sales and service radius, the company has formed four production bases in Linyi headquarters, Leibo in Sichuan, Jinchang in Gansu and Beipiao in Liaoning by implementing the strategy of low-cost expansion and reasonable regional layout in resource and market places, realizing the national industrial layout. At present, the headquarters has a capacity of 1.6 million tons of compound fertilizer, the Sichuan Leibo base has a capacity of 1 million tons, the Gansu base has a capacity of 600,000 tons and the Liaoning base has a capacity of 1 million tons.
(I) Industry status
       With its excellent product quality, excellent brand reputation and sound and complete marketing channels, Shikofeng has won a very high production and sales rate; it is the largest manufacturer of stable fertilizers in China and ranks fourth in the country in terms of production and sales volume of compound fertilizers; it ranks first in the industry in terms of production and sales volume of stable long-lasting slow-release fertilizers.
(II) Technical advantages
       The company's products are internationally advanced and domestically leading in terms of technology. It is a key high-tech enterprise under the National Torch Plan, with academician workstation, post-doctoral workstation, provincial enterprise technology center, provincial engineering technology research center, "National Engineering Laboratory of Soil Nutrient Management" and other scientific research platforms. It is the executive chairman of National Stable Fertilizer Industry Alliance and the vice chairman of International Fertilizer Science Center Asia. It has established long-term cooperation between industry, academia and research with more than 30 research institutes such as Shenyang Institute of Applied Ecology of Chinese Academy of Sciences and South China Agricultural University. We have undertaken more than 30 scientific research projects in the 11th Five-Year Plan, 12th Five-Year Plan, 13th Five-Year Plan, National Star and Fire Plan, National Torch Plan, etc. We have developed two series of stable long-lasting slow-release fertilizers and The company has developed two series of new fertilizer varieties: stable long-lasting slow-release fertilizer and variable-speed controlled-release fertilizer, and has taken the lead in forming a product process pattern of "internal slowing and external control, combined with slowing and control" in the same industry in China, with the core technology at the leading level in China, one technology at the international advanced level and three technologies at the international leading level. enterprise, which is still the highest award so far. On behalf of the People's Republic of China, we participated in the development of the first international standard, which was officially promulgated and implemented in March 2016. The company is the maker of the national industry standard. The company has won a total of 1 National Science and Technology Progress Award, 6 First Prize of Provincial and Ministerial Science and Technology Progress Awards, more than 70 national patents and 6 PCT international patents, and is one of the most technologically advanced and influential agricultural brands in the Chinese fertilizer industry. At present, the brand value is 3 billion yuan.
(III) Business model advantages
       The company has made innovations in its business model by operating in different segments of the fertilizer market with the aim of making it more sophisticated, deeper, more thorough and stronger, and at the same time giving full play to the function of e-commerce finance to support the entity.
(1) Water and fertilizer integration to build smart agriculture: The company is the first in China to launch an intelligent self-service liquid fertilizer sales system with IOT intelligent technology (including fertilizer filling machine, fertilizer filling station, fertilizer filling truck and intelligent water and fertilizer integration precision fertilizer dispenser), and has developed plant-derived biological liquid fertilizer in conjunction with scientific research institutions and universities such as the Chinese Academy of Sciences, Nanjing Forestry University and South China Agricultural University. Since the product was put on the market, it has caused a great response in the industry, and the product is in short supply and favored and praised by the farmers. At present, it has realized the investment and construction of factories in Linyi headquarters, Kunming in Yunnan, Dingzhou in Hebei and Xinjiang. In the next five years, the company plans to establish 50,000 fertilizer stations, 10,000 mobile fertilizer trucks and 50,000 intelligent water and fertilizer dispensers nationwide, so as to recreate the leading brand of liquid fertilizer industry after Shikofeng becomes the leading enterprise of stable fertilizer.
Intelligent self-service liquid fertilizer selling system features:
Intelligent, self-service fertilizer sales, reducing labor costs (free salesmen for distribution, unpaid salesmen); issuing cards for fertilizer sales, pre-selling in advance, solving the problem of credit; network pricing monitoring, national unified price, avoiding inter-regional price wars and vicious competition; large-screen LED, LCD outdoor advertising to effectively promote the corporate image and enhance the technological content; the implementation of membership, locking the user base, network monitoring to achieve remote collection of customers, convenient to establish user information; through remote management to control the operation of machinery, to achieve man-machine dialogue, automatic repair, remote price control, liquid level warning.
(2) Expansion into the field of bio-liquid fertilizer. With our own microecology laboratory as the R&D leader, China Agricultural University, Nanjing University of Technology and Cornell University in the United States as the technical support, and Australian microecology research center as the production process support, we have successfully applied the three core microecology technologies of microecology, polyenergy efficiency and mineral chelation, and developed "compound microbial bacterial agent", "crop-specific microbial bacterial agent" and "crop-specific microbial agent". We have developed more than 40 varieties of products such as "compound microbial fungicides", "crop-specific microbial fungicides", "straw decomposer" and other biological fertilizers, water soluble fertilizers with large amount of elements, medium and micro elements and amino acids, and foliar fertilizers, etc., which can provide full nutrition packages for the whole growth period of crops according to the fertilizer requirements and growth characteristics of crops at different times. The whole nutrition package for the whole growth period is highly recognized by the dealers and farmers.
(IV) Sales network advantage
       At present, the company has more than 5,000 primary dealers and 300,000 secondary outlets, with sales network spreading all over the country, forming a four-in-one marketing pattern of sky network, ground network, human network and Internet. Many years of cooperation have also formed a stable team of dealers, with high customer loyalty. The company has been adhering to the sales concept of serving the end customers and carrying out independent systematic planning in market development, product sales, logistics and distribution, agrochemical services, etc. Jointly with the National Agricultural Technology Center 20 provincial soil fertilizer stations and 22 domestic agricultural science academies (institutes) for testing, demonstration and promotion.
(V) Core product advantages
(1) Stable fertilizer
The stability fertilizer is made of long-lasting slow-release inhibitor made by scientific processing such as urease inhibitor, nitrification inhibitor, phosphorus activator and other nutrients such as nitrogen, phosphorus and potassium by double-drying and double-cooling granulation, and the fertilizer utilization rate is increased to 120 days, which is 80 days higher than that of common fertilizer, and the fertilizer utilization rate can be increased to 42%-45% (within 30% of the utilization rate of common fertilizer); it has reached the national level 15 years in advance. 2020 fertilizer nutrient utilization rate to 40% of the target.
(2) Synchronized nutrient fertilizer
Synchronized nutrient fertilizer has the characteristics of synchronization of nutrient release, soil fertilization and crop fertilization needs, which can meet the needs of crops throughout the reproductive period. The nutrient utilization rate is high, and the nutrient utilization rate is increased by 26 percentage points on average. The average yield increase is 12-29%, and it can save 20-30% of fertilizer than using common fertilizer.
(3) Urea formaldehyde fertilizer
Urea formaldehyde slow release fertilizer is an organic micro-soluble slow release fertilizer, the length of its fertilizer effect depends on the length of the molecular chain of urea formaldehyde, the longer the molecular chain the longer the fertilizer effect period will be. Advantages of the product: ①The nitrogen content of the product is increased by more than 30%-40% ②Urea formaldehyde nutrient release is by the action of soil microorganisms, fertilizer residue-free, pollution-free, is safe, green, environmentally friendly ecological fertilizer. ③ complete nutrients, high utilization rate of fertilizer, urea formaldehyde fertilizer nutrient utilization rate can reach 51%, the ordinary fertilizer is only 30%, the activity index AI ≥ 40%, while meeting the needs of crops on trace elements, and overcome all the shortcomings of other slow-release fertilizer.
(VI) Logistics advantage
       Sichuan Leibo chemical industry relying on the Jinsha River built a 1,000-ton Liangshan port Shunhe operation area water transport terminal, and the terminal out of Liangshan, connecting the Yangtze River, canals, coastal ports, an important inland water transport hub, open a "golden waterway", the formation of "Leibo's mineral powder, ammonium to Linyi, Beipiao, Linyi's products to the southwest, to the southwest, to the southwest, to the southwest, to the southwest. The two-way water transport mode of "Linyi's products to the southwest and sulfur from nearby ports to Leibo" has greatly reduced transportation costs; Jinchang in Gansu is close to the raw material production area of Salt Lake Potash and Urnford Ammonium, and the freight cost of 100 yuan per ton of fertilizer basically radiates five provinces in the northwest; the surrounding counties and cities of Shi Ke Feng in Liaoning are rich in phosphate iron ore resources and phosphate ore concentrate powder resources are quite abundant, in addition, the local smelting sulfuric acid by-products are abundant. In addition, the local smelting sulfuric acid by-products are abundant, and the raw material resources have obvious advantages and low production cost, and are sent to the three northeastern provinces, Inner Mongolia and some areas in Hebei, and the freight cost of 100 yuan per ton of fertilizer basically radiates to the above areas, which is 160 yuan lower than the average freight cost per ton from Linyi headquarters to the three northeastern provinces.

Mineral Resources Development

Mineral Resources Development

      In order to effectively control the raw material resources of fertilizers and reduce production costs, the Group has acquired two phosphate mines with reserves of 200 million tons in Leibo, Sichuan Province, and invested in the construction of a 3 million tons/year phosphate mining project and a 1 million tons/year phosphate compound fertilizer project, which has opened up the entire industrial chain of the chemical industry and become one of the few enterprises in the domestic fertilizer industry with upstream resources (of the more than 5,000 fertilizer manufacturers in China, no more than 10 have phosphate mining resources).

E-commerce Finance

      At present, Shikofeng has 300,000 dealer terminals, reaching 400,000 by 2018, with a sales network spreading all over the country and a stable and highly loyal team of dealers formed through years of cooperation; Shikofeng has a superb control over rural terminals through technical services, product advantages, business model advantages, brand advantages and win-win cooperation philosophy. The company's logistics network can solve the problem of the last 100 meters in rural areas, and the company has a large number of controllable dealers and perfect logistics channels throughout the country to become a strong support for the development of the company's e-commerce finance; the company operates the e-commerce finance segment with "Internet+" thinking and carries out a second venture.
(I) Rural Internet Finance
       Through friendly cooperation with Agricultural Bank of China, the company will connect the financial products and services of Agricultural Bank of China with the needs of farmers. We will continue to expand the influence of Agricultural Bank of China in rural areas, improve and extend its functions, and create an upgraded version of services for the benefit of farmers.
       At the same time, based on the "Shi Ke Feng Jin Sui Huinong Tong service points" and the financial settlement of the Agricultural Bank of China as the link, we will do a good job of "inclusive finance + business" by combining the actual needs of farmers, creating a "four-way" system of agricultural capital to agriculture, e-commerce to rural areas, logistics to farmers, and special agriculture to cities. The "four-pass" platform that leads to the city will increase the business flow and enhance the comprehensive income and value of service points with the support of data.
       Service content: accepting other small amount of agricultural withdrawal business such as new agricultural insurance, providing extended financial services such as inquiry, bill payment, money transfer and remittance, investment and finance services for farmers by relying on the electronic product channels such as Huinong Zhifu Tong deployed, etc.; the project has been carried out in ten pilot sites in Lanling County and Junan County.
Five years to build 10,000 in Shandong, to achieve a balance of 100 billion stored money, settlement transfer agency business 150 billion, support the three rural microfinance business 20 billion, the construction of 50,000 in the country.
(II) Agricultural electric business
       Xianglong Yunshang is an O2O agricultural e-commerce platform that integrates current agricultural dealers and rural supermarkets to operate together. Through the combination of online and offline, it integrates promotion, retail, group purchase service and distribution, and provides comprehensive services such as agricultural materials, agricultural machinery, planting solutions, agricultural products, daily necessities, rural finance, intelligent agriculture, Internet of Things and rural big data.
Xianglong Yunshang aims to build China's leading agricultural e-commerce platform and comprehensive agricultural service platform. For the benefit of the cultivator, for the benefit of the eater!
(III) Agricultural technology cooperation and quality tracing services
       To provide farmers with a package of solutions for agricultural planting, fertilizer application, soil testing, pest control, agricultural machinery promotion, agricultural product processing, seed cultivation and online services on the platform of agricultural e-commerce. For all products sold on the platform for the product root quality traceability, so that farmers are using reliable quality and reliable products, so that farmers buy with confidence, use with confidence, service with confidence.
(D) Agricultural products into the community, into the city services
       With agricultural e-commerce as the platform, we find buyers for agricultural products produced by farmers and establish a straight line connection from growers to cities, which not only solves the worries of selling agricultural products but also meets the expectations of cities in purchasing fresh agricultural products.
(E) Daily necessities services
       With agricultural e-commerce as a platform, we provide online procurement of daily necessities for rural areas, which not only ensures product quality but also saves farmers' time in purchasing in the city, and saves a lot of costs and cheaper prices due to online direct purchase.
       The e-commerce financial sector is the new starting point of the company's second venture and has become a powerful wing for the company to take off.
       The company insists on the enterprise spirit of "patriotism, dedication, honesty, friendliness, innovation and development", and takes the mission of "integrating resources, promoting industry and serving the country, and achieving life", and closely focuses on the company's development idea of "one body and two wings "We adhere to the strategic policy of "one vision, two civilizations, three constructions, four communities, new five, six strategies and seven wishes", based on the technology-led products, scientific business model, customer-oriented service system, logistics extending to the last 100 meters, and disintermediated e-commerce channels. Based on technology-led products, scientific business model, customer-oriented service system, logistics extending to the last 100 meters, and disintermediated e-commerce channels, we will build a new agricultural carrier, realize the industrial transformation of the second business, and build a modern enterprise with leading industry, outstanding core competitiveness and comprehensive development of quality and efficiency!
(6) Safety production
       Schofield Chemical always insists on safety first, prevention first, comprehensive management, seriously implements the laws and regulations on safety production and strictly enforces them, ensures the completion of the safety production indexes, constantly improves and enhances the safety management level, invests a lot of resources and takes various measures to ensure and improve the safety level of the workplace.
       In order to ensure the normal production and operation environment and normal order, to protect the integrity of the enterprise's property and the health and life safety of employees, to prevent or reduce their occurrence and the environmental and occupational health and safety impact or minimize the impact, as well as to effectively control and dispose of the sudden events, Schofield Chemical has formulated a series of emergency plans for potential accidents and emergencies. Through the training of safety, fire fighting, self-rescue, rescue and other knowledge, as well as emergency drills, the safety of the enterprise is maintained.

Charity

Helping Longfengyu Village in Liancheng Town, Mengyin County

      At the important juncture of spring production, some areas are unable to purchase fertilizers for spring production due to the epidemic of New Crown Pneumonia. In response to the national call of "fight against the epidemic and ensure the spring plowing", Schofield took active action to support Longfengyu Village in Liancheng, Mengyin County, and donated 5 tons of fertilizer free of charge, contributing to win the battle against poverty!

      In recent years, according to incomplete statistics, we have donated more than 5 million yuan to the Guangcai cause, social welfare and education: 800,000 yuan for Linyi Book Sage Cultural Festival in 2003 and 2004; 1.34 million yuan for road construction in Shengzhuang Office, Luoxi Office and Bachu Town from 2000 to 2006; 1.4 million yuan for the Fei County Guangcai cause from 2006 to 2012. -Donated RMB 400,000 for Fei County Guangcai Primary School and Mengyin Guangcai Primary School in 2012; donated RMB 500,000 for Shunhe Hope Primary School in Liangshan Prefecture, Sichuan Province, RMB 100,000 for Linyi University, RMB 250,000 for the Education Bureau of Hedong, Lanshan and Development Zone from 2013 to 2015; donated fertilizer for precise poverty alleviation in Liguan Township, Lanshan District, and 20 tons for Shengzhuang Township, Luozhuang District in 2016. 20 tons, donations of 180,000 yuan for road repair in Wu Baishuang, Shengzhuang Town, Luozhuang District, donations of 50,000 yuan for funding 10 poor college students, donations of 2.5 tons of fertilizer for precise poverty alleviation in Shunhe Township, Leibo County, Sichuan Province, and donations of 18,000 yuan for corporate culture in the countryside; so far in 2017, donations of 1 million yuan for municipal charity, donations of 30,000 yuan for precise poverty alleviation from the Municipal Environmental Protection Bureau, donations of 20,000 yuan for funding 4 poor college students, donations of 20,000 yuan from the Economic Development Zone The General Labor Union donated 10,000 yuan for precise poverty alleviation (provincial and municipal model labor unit donation); Xie Yongjun donated 30,000 yuan for personal financial assistance to students in need (time unknown); donated 200,000 tons of fertilizer after the snowstorm in Chenzhou, Hunan; called on all employees to donate more than 200,000 yuan after the 5-12 Wenchuan earthquake; organized the "One Day Donation for Compassion" activity every year, and After the 5-12 Wenchuan earthquake, we called on all employees to donate more than RMB 200,000. Schofield Chemical was awarded the honorary title of "Advanced Unit in Education Donation" in Economic and Technological Development Zone. In July 2017, the chairman was awarded the honorary title of "Linyi City Philanthropist".

rgency drills, the safety of the enterprise is maintained.