◇ Enhance governance mechanisms for transparent and ethical decision-making and operations.
◇ Maintain a commitment to fair competition, regulatory compliance, and the fight against corruption.
◇ Advocate innovation, injecting new vitality into Kaifa's development and driving high-quality growth.
Shareholders' Meeting
Guided by green principles, Kaifa has independently developed the Intelligent Factory Green Energy Management and Control System. By digitally upgrading energy management, it establishes monitoring and analysis, optimization control, and collaborative control.
Intellectual property is a significant intangible asset, and Kaifa focuses on and regulates patent layouts in areas such as intelligent manufacturing, high-end process equipment, production process, and industrial product design. Over the years, Kaifa has filed 713 patent applications and been granted 538 patents. In the past four years, it has applied for 217 invention patents and received 164 grants.
Kaifa establishes 8 employee innovation studios to play a mentoring role. Kaifa encourages employees to focus on national strategic needs, industry development trends, and efficient operation of the company, and to actively participate in the growth and development of the company's businesses. As of now, the studio has absorbed and cultivated 15 talents, carried out 171 projects, obtained 35 patents, and created economic benefits of nearly 50 million yuan. Among them, 3 studios have been awarded the title of Industry-level Model Worker and Craftsman Talent Innovation Studio.
Kaifa is deeply engaged in electronic product manufacturing services, and consolidated in a high-end manufacturing environment and process control technology. In the field of ESD control, our technology has gradually been recognized by the domestic ESD, and we have actively strengthened technical exchanges and interactions within the industry. Kaifa has participated in the preparation of multiple national and industry ESD standards in conjunction with the China Electronics Standardization Research Institute and the China Electronic Instrument Industry Association, including three IEC 61340-5 series ESD international standards converted to national standards, one industry standard update, and one independent new national standard. As a manufacturing supplier of core components for hard drives, Kaifa participates in the formulation of domestic hard drive standards, expands into JDM product development services, and actively participates in and supports the activities of industry associations and societies.
Kaifa has established management requirements for product ecological design, applying a lifecycle thinking approach to consider the environmental impact factors of products, and reducing the adverse effects of products on the environment from the source. In order to reduce environmental pollution and improve the reusability of energy and materials, we fully consider the recyclability and upgrade functions of the product from product structure design, software design, hardware design, and manufacturing process, prioritize the selection of recyclable materials, and incorporate product reliability design requirements into the design specifications.
Kaifa is committed to creating a work atmosphere characterized by integrity, frugality, and ethical conduct. Honesty and trustworthiness are the core values of our company, and we firmly oppose corrupt practices and maintain a zero-tolerance policy towards any form of commercial bribery. We follow the Responsible Business Alliance (RBA) Code of Conduct and our own ethical guidelines, ensuring that we gather competitive information in a legal manner and refrain from any improper business activities.
Kaifa has established a robust reporting system that includes defined Reporting Channels, a Confidentiality Principle, an Investigation Timeline, and a Whistleblower Protection Mechanism. We guarantee that individuals who report issues in good faith will be protected from any form of retaliation or discrimination.
Any instances or attempts of retaliation must be reported to the highest authority within Kaifa. Kaifa will take disciplinary measures against supervisors, managers, or individuals involved in retaliation or attempted retaliation, including termination of employment.
Kaifa adheres to the business philosophy of sustainable development and focuses on cultivating lean production capabilities. Since 2002, we have gradually introduced Six Sigma, industrial engineering, lean, and other tools to continuously improve our lean production management level. The company has established a lean production management system with maturity assessment as a long-term mechanism, guided by lean thinking, and built a cross-system and refined comprehensive information control platform. It effectively integrates lean and intelligent technologies, creates a lean automation production system for human-machine collaboration, and improves the level of intelligent manufacturing. We have trained lean production experts and built a lean learning culture that benefits everyone.
Kaifa provides comprehensive intelligent manufacturing technology support and builds a cross-system and refined integrated information control platforms and human-machine collaborative automated production system, to integrate lean thinking. Based on process standardization, we independently develop MES systems to finely control the five major elements of people, machines, materials, methods, and environment, promoting continuous optimization and solidification of processes. We eliminate information silos, with the MES system as the center, to achieve integration with SAP, BI, energy management, and other application systems, building an integrated information control platform for rapid discovery, analysis, and handling.
The coarse grinding machine realizes ALM automation, replacing the original pure manual disc arrangement, saving manpower and improving efficiency, reducing coarse grinding labor by 80%.
Following its pilot launch in 2023, the IDDO rail-in-air logistics system entered full-scale deployment across production lines in 2024. This innovation has significantly reduced manual labor in IDDO turning operations while simultaneously enhancing production efficiency and process automation.
Complementing this advancement, the implementation of an SPC digital sampling control system coordinates robotic arms to perform standardized sampling and inspection at scheduled intervals, further optimizing automated manufacturing capabilities.
Guided by the development strategy, Kaifa started the Lean Intelligent Manufacturing Capability Enhancement 2.0 project in 2022, proposing a 'two-step' action plan. Based on the assessment scores of lean intelligent manufacturing, a lean improvement plan is developed for weak links to reach a 32.4% increase in the average assessment score by 2024, reaching a good level of L3. In 2024, multiple measures were taken to enhance the level of lean intelligent manufacturing, including personnel empowerment, implementation of improvement projects, and implementation of lean month activities. Re-assessment was conducted in 19 business units, and the lean maturity score increased by 9%, achieving the second phase goal.
Kaifa closely adhered to the strategic core of 'Unity and Excellence', and successfully held the Lean Month event. This event is not only a comprehensive review of the company's lean manufacturing capabilities and quality culture construction, but also a profound response to customer needs and employee development. Overseas factories organized the Lean Month activity for the first time and got great support and reaction. During the activity, the President Assistant and BU leaders shared lean knowledge and management's support for lean tools and culture. The Lean Six Sigma Green Belt and Lean Tool Training are extended to overseas subsidiaries to enhance the lean capabilities of overseas employees, and effective incentive measures are implemented to promote full participation. Material rewards and spiritual incentives are given to selected outstanding projects of Green Belt, rapid improvement, and employee proposals.
