ESG shipbuilding introduction

It is exciting to see your latest announcement talking about the focus to become world's leading ESG shipbuilding company. it would be great if you could illustrate help the public to better understand your capabilities in the following 4 areas:

1. How does YZJ add value in building energy efficient ships, such as the involvement in the design process, the choice of production methods, material, etc.

YZJ: It’s well known that IMO strategy for decarbonization ambition is very intensive, the global industry is looking into extensively to figure out how to achieve the goal or even better by the application of green energy technologies. As ship builder, we also feel strong obligation to improve the efficiency of ships as far as possible. Following summary is our effort we’ve made in recent years:

a) Keeping developing our own design vessels, including:

ü The latest 82,500DWT bulk carrier which could achieve EEDI（Energy Efficiency Design Index）phase III stage while almost other similar ship type still at EEDI phase II stage.

ü The upgraded 50,000DWT oil tanker with very competitive daily fuel oil consumption and deadweight by combining the resource of classification and towing tank facility.

b) Offering to owner the most efficient design in line with the current state of art available by cooperating with different design house for the specific ship types which they are good at and popular in the market.

Meanwhile, we promote the application of new energy save technologies such as hull air lubrication system to reduce resistance from water, pre swirl stator before propeller and high efficiency rudder to improve propulsion efficiency, shaft generator to reduce fuel oil consumption, anti-fouling paint to reduce resistance from fouling hull surface, low resistance structure of accommodation to reduce resistance from wind and so on. Several energy saving and high efficiency projects are very popular and successful in the market as following:

c) Taking LNG dual fuel projects orders are becoming more and more important part of ship building business, although LNG is regard as “transition fuel” to carbon neutral fuel, it still no doubt that it is much more environmentally and friendly fuel with barley zero Sox, and 20% reduction of CO2 comparing with conventional fossil fuel. Up to now we got several LNG dual fuel projects including: 13000DWT chemical tanker, 690FEU carrier, 7000TEU and 14000TEU container vessels.

d) Absorbing advanced design concept from our collaboration with MES who has several successful and famous bulk and LNG carrier projects with Japanese design which is well known for economical and practical design. then we could convert and apply for our projects and even make it standardization further.

Continuously optimizing our own production design practice to reduce weight of out-fittings which can bring extra load capacity to make ship more efficiency.

2. How much YZJ has achieved in terms of production efficiency, such as % of recycled materials, energy consumption savings, etc

YZJ: Keeping improving production efficiency is the second most important work to make us survive and success in this competitive market in addition to cost control management. Following achievements for your information:

a) Introducing digital design and management system, including modern 3D design software AM, further developing function of software and files management PDM, to improve design efficiency.

b) Extending the range of automation equipment for production, including using more and more automation welding machines, electrical nacelles, vertical lifting device and so on to achieve better quality and higher efficiency as well as less safety risk for workers.

c) Workmanship routing optimization is also very valuable what we’ve been paying high attention on. This not only enormously shortens the period of docking stage, but also improves construction completeness ratio before launching.

d) Standardization for both design and producing process is also very necessary for the ship builder like us who is capable to design and build many kinds of vessel simultaneously, such as bulk carriers, container vessels, tankers, LNG carrier and so on. More and more standard documents have been published internally every year.

3.What YZJ has done / plan to do in terms of production safety, especially on workforce's welfare?

A certain number of measures are taken to better workforce’s welfare continuously. Firstly, planning and organizing constant training programs in every quarter, inviting the outer trainer or selecting the outstanding person of each section to make a lecture or share their experiences; secondly increasing the lunch allowance of each employee, making sure the intake of nutrition can meet the physical consumption; thirdly organizing the free travelling for 50 persons’ team, domestic or worldwide, when each vessel is delivered (given that around 50-60 vessels delivered each year, every employee has the chance to join the travelling program. Lastly, what is the most important is to implement the break time on every day during lunch time (70 minutes in winter season and 120 minutes in summer season) and day off on Saturday and Sunday so that employees are able to maintain freshness.

4. The quality / safety about the ships you built, anything you track / monitor to measure and improve the quality of your end-product.

YZJ: Our organization includes one dedicated Guarantee Department to follow operation condition of vessels we built, they collect information from the delivered vessels, then analyses these defectives and share them in yard wide weekly, relevant departments will research the case and submit solution swiftly, meanwhile we will check if the similar defective is existing on the ships under building and correct it immediately before delivery, if any. Based on above fact, we can proudly say that the ships we built would always have the best quality in this dynamic quality management system.

Fast, reliable, and efficient 24/7 after-sales Service Support. With 24/7 After-sales service support, Owners don’t need to worry about any warranty problem might cause downtime of vessels. After-sales service team handles the warranty from the time it is received to the time the issue is resolved in high efficiency with Owner’s satisfaction. The specialists can be contacted at any time for the complex issues. Our priority is to ensure safe and smooth fleet operation.