Social Responsibility Case of Shanxi Baohang Heavy Industry Co., Ltd.

Shanxi Baohang Heavy Industry Co., Ltd. was established in May 2018, with Li Zhefeng as the legal representative. The company is located at No. 1 Tengda Road, Zhuangli Industrial Gathering Area, Yangfang Township, Dingxiang County, Xinzhou. It is a private enterprise with a registered capital of 80 million yuan. The newly built production line project for 100,000 tons of wind power flanges per year has been rated as a key provincial project in Shanxi Province for four consecutive years from 2021 to 2024.

1. Integrity in Business, Clarifying the Scientific Development Path of the Enterprise

Shanxi Baohang Heavy Industry Co., Ltd. is developed from Shanxi Xingwangda Forging Co., Ltd. and is an intelligent manufacturing forging enterprise. The founder of Baohang Heavy Industry, Mr. Li Baowang, comes from an ordinary farmer family in Shijiawan Village. After graduating from junior high school, he worked in a village forging factory. After several years of hard research, he gradually mastered skills in forging, heat treatment, and machining. In the 1980s, coinciding with the national reform and opening-up policy, he founded Shijiawan Metal Processing Plant, which was later renamed Dingxiang County Wangda Flange Co., Ltd. With his superb technology and standardized management, the company has gradually expanded its scale.

In recent years, the country has begun to vigorously promote new energy, especially wind power generation, which is renewable, non-polluting, and has huge reserves, has received national attention. In March 2007, Dingxiang County Wangda Flange Co., Ltd. officially changed its name to Shanxi Xingwangda Forging Co., Ltd., and began to research, produce, and sell onshore wind power flanges. After more than a decade of development, the company has successfully established its brand in the wind power field.

The company has adapted to the trend of rapid installation of onshore wind power and seized the opportunity for the development of offshore wind power. In May 2018, Shanxi Baohang Heavy Industry Co., Ltd. was established on this basis, mainly engaged in offshore wind power flanges, becoming the third professional supplier of offshore wind power flanges in the country.

The total investment of the newly built production line project for 100,000 tons of wind power flanges is 1.3 billion yuan, covering an area of 200 acres, and is completed in three phases. After the project is fully completed and reaches production capacity, the annual output will be 100,000 tons, with an annual output value of up to 2 billion yuan, achieving a profit and tax of 400 million yuan and providing 600 jobs. From the start of construction on March 26, 2020, to the first batch of 7.5-meter diameter offshore wind power flanges officially rolling off the production line and being shipped on February 6, 2021, it took only 310 days, creating the "Dingxiang Speed" of project construction. With the successful rollout of the 7.5-meter diameter offshore wind power flanges, it has realized the transformation of Dingxiang wind power flanges from small to large, from onshore to offshore, effectively meeting the actual demand for offshore wind power flanges in the country, promoting the breakthrough and upgrading of the wind power industry, and successfully opening a new chapter in the production of large ring parts in our province's forging industry, contributing to the early realization of the country's "30.60" commitment. In 2021, the company was rated as an "Advanced Unit for High-Quality Development Project Construction" by the Dingxiang County Committee of the Communist Party of China and the county government.

2. Epidemic Prevention and Control, the Enterprise Takes the Lead

Proactive response, ensuring safety. "Investigating the epidemic and ensuring the safety of the enterprise and employees is also contributing to epidemic prevention and control." Even before the lockdown of Wuhan, the company had reserved epidemic prevention materials and daily necessities through various channels. On January 28, 2020, the company established an epidemic prevention and control leadership group, with Li Zhefeng as the group leader, to deploy and promote various prevention and control work in an orderly manner. During the epidemic, he went to the epidemic prevention site every day to understand the dynamics of epidemic prevention and control in real-time, and timely conveyed the requirements of command departments at all levels to employees, achieving 100% coverage. The company strictly implemented the "daily report" and "zero report" system, counting employees' health status and epidemic information every day, and comprehensively investigating and sorting out epidemic risks. Through online channels, the company promoted and trained epidemic prevention knowledge, enhancing employees' self-protection awareness and jointly creating a harmonious and stable environment.

Caring for villagers, ensuring livelihood resources. In the face of the nationwide outbreak of the epidemic, issues such as whether villagers have awareness of epidemic prevention and control, whether epidemic prevention publicity is in place, whether villagers have sufficient epidemic prevention materials, and whether daily necessities are adequate urgently need to be addressed. The company arranged party members to actively promote at the village entrance duty point, patiently advising against incoming vehicles and returning personnel from other places. Facing some returning personnel who were anxious, misunderstood, and had complaints, they provided patient guidance. Ensuring timely understanding and handling, fully demonstrating the spirit of party members who can endure hardship and fight, playing a leading role, and showcasing the vanguard nature of party members laid a solid foundation for the epidemic prevention work in Shijiawan Village. During the epidemic, the company raised a total of 10,000 disposable medical masks, 2 infrared electronic thermometers, 10 mercury thermometers, 100 bottles of 100ml 75% alcohol disinfectant, 10,000 disinfectant tablets, 50 bottles of 500ml 84 disinfectant, and 100 boxes of bucket noodles for villagers.

Emergency assistance, doing our part. Before the New Year, the outbreak of the novel coronavirus pneumonia led to a shortage of epidemic prevention materials in Wuhan and other places. "Implement donations, quickly prepare funds, this matter cannot be delayed!" The general manager required the finance department to quickly mobilize 200,000 yuan to assist in epidemic prevention in Wuhan. Under the leadership of the general manager, the company's party members and employees took the initiative to act, generously donating for epidemic prevention, with party members and employees donating more than 5,000 yuan, and the donations have been transferred to the Dingxiang County Red Cross.

Turning crisis into opportunity, strengthening economic response. The Dingxiang County Committee and County Government proposed the work resumption order of "first large enterprises, then small enterprises." As a large enterprise, we made early deployments and prepared carefully for resumption of work. There are more than 50 large enterprises in the county, all of which have tight schedules and heavy tasks. According to the resumption process, the company was already ready for resumption, but the enterprise thought of others first, putting others before itself. "After the epidemic, the economy is the main battlefield. Enterprises are the foundation of people's livelihood, and behind enterprises are many families and jobs. We are always ready, seizing the day, and not wasting our youth!" Li Zhefeng stated that he would work with employees to overcome difficulties together and welcome a bright future. After resuming work, some employees remained on duty, strictly implementing epidemic prevention measures, patrolling every corner, and safeguarding the safety of the factory area. Meanwhile, the company occupied the market in advance through online sales channels, using software such as WeChat, QQ, and DingTalk to work from home, ensuring the normal operation of the company's business and guaranteeing employees' normal treatment, with a resumption rate of over 80%.

3. Donating to Support Education, Accelerating Grassroots Civilization Construction

Since the establishment of the enterprise, the company's scale has been expanding year by year, and the need for funds has also increased. However, whenever villagers encounter difficulties, the company always extends a helping hand to help them solve urgent problems.

For many years, the company has regarded supporting schools as its unshirkable responsibility. To improve the quality of education, it often holds discussions with school leaders and teachers, actively proposing reasonable suggestions, and funding the hiring of excellent teachers, rewarding outstanding substitute teachers and students with excellent results, thereby stimulating teachers' enthusiasm for teaching and students' interest in learning. The quality of teaching in schools has steadily improved, and students' academic performance has continuously progressed. The company also donates tens of thousands of yuan each year to support poor middle school students in completing their studies. In 2021, the "Golden Autumn Scholarship" activity organized by Baohang Heavy Industry supported 8 college students, with a total funding amount of 100,000 yuan.

Shijiawan villager Shi Denglong's only son, Shi Jiaqi, 14 years old, studies at Dingxiang No. 2 Middle School. Due to violating school rules, he dropped out of school for two months. After learning this, the general manager personally talked to him, provided criticism and education, and communicated with the school multiple times, ultimately leading to his return to school, satisfying the parents and making the student happy, earning praise from the villagers.

To activate the cultural and sports activities of the masses, the company has built a table tennis activity room with an elegant environment, meticulous layout, and scientific standards. It regularly organizes various competitions and invests in purchasing prizes to reward the winners materially, thereby stimulating the villagers' interest in sports, while their skill levels have also greatly improved. In addition, the company has donated several times to sponsor villagers in carrying out healthy and vibrant cultural activities, enriching the villagers' leisure life, improving their living environment, and enhancing their quality of life. In May 2018, the Shijiawan Village Committee of Dingxiang County awarded the company a banner for "enthusiastic public welfare, funding road construction, and caring enterprise."

4. Grateful for the Party's kindness, assisting in poverty alleviation.

In 2015, Xi Jinping, General Secretary of the Communist Party of China, President of the country, and Chairman of the Central Military Commission, emphasized that eliminating poverty, improving people's livelihoods, and gradually achieving common prosperity are essential requirements of socialism and an important mission of the Communist Party of China. A major battle against poverty alleviation is being launched across the land of China! The chairman has greatly benefited from the Party's kindness; he knows that the Party Central Committee has always remembered the common people and sees the vigorous progress of the poverty alleviation battle. As an outstanding Party member, he has also devoted himself to this smoke-free battle. As a business owner, he actively engages in targeted employment poverty alleviation using the funds accumulated by his enterprise over the years. To recruit impoverished households and achieve precise and deep poverty alleviation, he donated 50,000 yuan to the "Tulingkou" impoverished village in Dingxiang and assisted several impoverished households in his village.

The company has increased publicity efforts by connecting with the government, widely mobilizing various types of rural poor laborers, returning workers, unemployed individuals, and surplus laborers who are willing to seek jobs to participate in job fairs, driving employment for surrounding farmers. It has lowered recruitment thresholds in terms of age, education level, and work experience, providing favorable conditions such as food and accommodation, allowing impoverished households to work with peace of mind in the enterprise. In addition to meeting the job-seeking needs of surrounding impoverished households, many farmers and surplus laborers from remote areas have come to seek jobs, significantly expanding the coverage of poverty alleviation. It has absorbed many labor-capable impoverished households for local employment, providing them with job positions and driving an annual income increase of tens of thousands of yuan for impoverished households, further enhancing their sense of gain and happiness. In January 2019, the Dingxiang County Federation of Industry and Commerce awarded the company the "Contribution Award" honor in the special action of enterprises helping villages in poverty alleviation.

5. Technological upgrade, establishing a path for brand building.

The company procures key technology equipment for intelligent manufacturing, core supporting software, information security system solutions from domestic independent brands, and constructs and transforms the industrial internet to build an innovative intelligent manufacturing factory. It achieves full-process automated information system management, key process automation, and intelligent analysis, forming a large-scale, intensive, and numerically controlled production line, thereby significantly improving production efficiency and product quality. The proportion of procurement of self-owned brand products exceeds 70%, the numerical control rate of key equipment reaches over 80%, and the automatic data collection rate for production exceeds 90%. In 2022, the company was rated as an "excellent enterprise for high-quality and high-speed development and transformation" by the Dingxiang County Committee of the Communist Party of China and the county government.

The company has always adhered to the development concept of technological innovation, hiring high-salaried technological talents, regularly conducting professional skills training, building provincial-level laboratories, and engaging in strategic cooperation with Taiyuan University of Technology and Jinan Foundry Research Institute for new product development, new technology research, and new process formulation. It has the capability for independent innovation of existing forging equipment and the ability to research and design the control of free forging forming processes. The company has successively obtained 21 utility model patents such as door frame flange lifting devices, door frame flange forming machines, flange heat treatment mist coolers, and flange rotating lifting devices, as well as 6 invention patents including a working method for circulating air cooling equipment suitable for wind power flanges. The company participated in formulating two group standards: "Procurement Guidelines for Wind Turbine Tower Flange" and "Information Construction Guidelines for Flange Forging Enterprises." In June 2022, the company organized and published the "Enterprise Standard for Offshore Wind Power Tower Flange Forgings."

To promote the achievements of the company's founder, Mr. Li Baowang, and due to the precious resources of offshore wind power flanges, the company took the character "Bao" from his name; the company has grown from nothing to something, from small to large, experiencing lows and glories, just like a giant ship in the sea. The development trend of offshore wind power is the "beacon" that guides us to continue moving forward, taking the character "Hang"; thus, the name "Baohang" was chosen, symbolizing that the company will surely ride the wind and waves and set sail far into the future! In 2021, Shanxi Baohang Heavy Industry Co., Ltd. was selected as a "self-owned brand enterprise" for "China Brand Day," representing Shanxi Province at the "2021 China Brand Day" online exhibition.

Baohang Heavy Industry, while meeting customer needs in manufacturing and selling products, is also creating and promoting a culture. Essentially, just as politicians change society and scientists change inventions, private enterprises also bear a significant social responsibility. The greater the energy of the social responsibility undertaken, the greater the contribution, and this is our mission.