Health and Safety
The Group is committed to safe production, consistently complies with the requirements of laws and regulations such as the PRC Labour Law, PRC Safe Production Law and PRC Fire Services Law as well as the requirements of the government, and has established a sound work safety management department and safety management rules. The Group launched "Safe Production Month" activities to carry out promotions and trainings on work safety, aiming to continuously raise safety awareness and consciousness of employees in workplace. We organized work safety supervision and inspection within the Group and required all the units to be equipped with a sound safety regulation system, standardized procedures, effective management and strict inspections, with painstaking efforts to eliminate potential safety risks. We fully implemented a work safety accountability system and formulated emergency response and management measures to eliminate safety hazards. In 2018, the Group did not experience any major work safety incident.
Supply Chain Management
We have formulated the relevant administrative rules on procurement in compliance with relevant laws and regulations such as the PRC Contract Law and the Regulation on the Implementation of the PRC Tender Law, strengthened the monitoring and control over key procedures of, among other things, contract execution, safety management, financial settlement, monitoring and supervision, and strictly implemented the admission, assessment and exit mechanisms for suppliers. Meanwhile, we conducted trainings on specific skills and safety education to personnel in the supply chain and regulated the management on safe production, ensuring that the suppliers comply with the national and local regulations on salary payment and employment management.
The Group has considered business outsourcing as the key area for auditing and supervision. We conducted review on supplier admission, tendering and bidding, outsourcing pricing, signing of outsourcing contracts, materials procurement and settlement of outsourcing costs, with the aim to prevent illegal and non-compliant activities such as violation of the administrative measures of the Company and interests conveyance. Through vigorous promotion and implementation of its system, execution with proper supervision and inspection measures, optimizing its service team by eliminating unqualified subcontractors, strengthening safety production by introducing full insurance coverage for the working personnel of subcontractors, improving project management, building its IT systems, and consolidating its management processes, the Group managed to eliminate the hidden risks and promote the healthy development of the Company.
Product Liability and Customers
The Group is always committed to providing high quality, efficient and safe informatization services for customers and contributing to the improvement of national communications infrastructure and the protection of effective communications networks. The Group has complied with applicable laws and regulations in relation to product liability.
The Group actively participated in large-scale exhibitions and Expos
In 2018, the Group participated in a number of large-scale exhibitions and Expos, demonstrating its brand image and corporate strength and promoting its smart products. Our Jiangsu subsidiary, leveraging on its smart product which is built on the Internet+ security management platform, provided smart inspection and management, secured construction safety and quality, helping its customers reduce costs by about RMB2.5 million and decrease safety accidents by 20%; through its vehicle positioning and risk control products, it helped its customers reduce non-standard driving behavior by 25% and save a total vehicle cost of RMB5.48 million. Our Zhejiang subsidiary completed comprehensive environmental improvement in a total of 802 small towns in Zhejiang Province by leveraging on its smart products such as the underground pipeline management system, smart light poles and smart cloud booths, which has effectively improved the quality of production, living and ecological environment in those towns. Our Guangdong subsidiary participated in the telecommunications network construction project for the Hong Kong-Zhuhai-Macao Bridge, and enabled full 4G network coverage over the Bridge with pre-deployment of 5G networks and informatization upgrade. Particularly, Guangdong Southern Communications Construction Co., Ltd. (廣東南方通信建設有限公司) which is the project team responsible for cable and communication line relocation at the Zhuhai section of the Hong Kong-Zhuhai-Macao Bridge, was dubbed the "National Worker Pioneer" by the All-China Federation of Trade Unions. Our Sichuan subsidiary undertook the poverty alleviation project through telecommunication infrastructure in Lijiazui, Muli County, Liangshan Prefecture, which initiated fiber optic broadband and 4G network coverage in the high and remote mountainous areas. In 2018, the Group's subsidiaries provided communication support for the Boao Forum for Asia Annual Conference 2018, Shanghai Cooperation Organization Qingdao Summit and the Fifth World Internet Conference (Wuzhen Summit), respectively.
1. Our Hainan subsidiary provided communication support for the Boao Forum for Asia
2. Our Sichuan subsidiary undertook the poverty alleviation project through telecommunication infrastructure in Lijiazui, Muli County, Liangshan Prefecture
The Group has participated in the natural disaster relief and telecommunications network restoration during and after major disasters and safety incidents to fulfil our corporate social responsibilities. We assisted in the repair of communications lines to ensure smooth communications network. In 2018, multiple areas of Xuancheng region of Anhui Province and Suiyang County of Zunyi City, Guizhou Province suffered from thunderstorms and strong winds; Typhoon Maria and Typhoon Mangkhut occured; a magnitude 5.0 earthquake hit Tonghai County, Yunnan Province; Mengdong Town, Masupo County, Wenshan Prefecture, Yunnan Province suffered from catastrophic flood and mudslide; and Dingxi City, Gansu Province suffered from snowstorms. Upon the occurrence of above catastrophes, the Group took instant actions and dispatched rescue forces to the disaster-stricken areas and made best efforts to ensure normal operation of the local communication network.
In 2018, the Group dispatched more than 20,000 person-times and more than 6,000 vehicles/times, and repaired more than 30,000 communication facilities while actively participating in post-disaster epidemic prevention and disinfection and environmental cleaning, fully demonstrating our corporate capabilities and commitment to society responsibility in disaster relief.
The Group actively participated in the post-disaster telecommunications network restoration
Information Security and Privacy Protection/Network Security
The Group attaches great importance to the information security, privacy and data protection of the Company, its employees and customers. The Group's internal information security is under strict control, and the Group would enter into data protection agreements at customers' requirements. We also sign relevant agreements with our employees depending on actual needs and comply with it strictly, and no leakage of private information of our customers or employees occurred. In 2018, the Group conducted a new technology and business evaluation for the newly-launched businesses and major existing businesses. Those technologies and products which did not pass the evaluation will not be offered to our customers, which significantly enhanced the Group's risk management and control capabilities on network security.
The Group held information security training activities
Intellectual Property Protection
The Group strictly complies with all the laws and regulations in relation to the protection of intellectual property rights, such as the PRC Contract Law, PRC Trademark Law, PRC Patent Law, PRC Copyright Law and PRC Anti-Unfair Competition Law, while continuously enhancing its awareness of intellectual property rights protection and handling and resolving infringement disputes on a timely basis. The Group strengthens trademark management to prevent the abuse of registered trademarks. It pays attention to brand protection while promoting the brands and enhancing the value of its brands; it conducts research on intellectual property in respect of the emerging businesses of the Group. The Group organizes law-enforcement seminars from time to time to enhance its employees' awareness of, knowledge of, compliance with and usage of relevant laws and regulations and intellectual property rights protection.
In the process of its research and development of various smart society products, the Group attaches great importance to the protection of intellectual properties and the application for corresponding patents or software copyrights. In 2018, the Group received 303 new authorized patents, applied for 477 new patents and obtained 821 new software copyrights.
The Group consistently complies with laws and regulations, social integrity, commercial ethics and industrial standards. We have been devoted to safeguarding the interests of shareholders and creditors and executing contracts in good faith. We honour commercial credibility and oppose improper competition with a view to preventing corruption in business activities.
We focus on strengthening anti-corruption and disciplinary education in various ways, such as seminars, training programmes and themed conferences to draw the awareness of our employees on relevant requirements. In addition, we reinforce our daily supervision by combined supervision efforts such as audit and monitoring, and strictly prevent activities such as bribery, blackmail, fraud and money laundering. The Company has established departments in charge of discipline, inspection and supervision at different levels. The Company also strengthened its supervision by hiring full-time and part-time employees and set up a smooth channel for identifying and resolving existing problems in a timely manner. We have attached great importance to the establishment of an anti-corruption system. An accountability system was established to clearly define responsibilities while anti-corruption responsibility letters were signed with the relevant responsible parties. The Company will duly address relevant illegal and non-compliant activities according to the requirements of laws, disciplines and rules, with a view to safeguarding the normal operation of its businesses. During the year, we continuously launched thorough corporate governance work on business of our management team and their relatives which are related to the Group, off-book accounts and construction procurement, which further eliminated potential risks and optimized our prevention system in respect of bribery, blackmail, fraud and money laundering.
The Group has established a whistle-blowing mechanism. When business partners and internal employees discover corruption and bribery of the Group's personnel, they can report by real-name or anonymously through the post office box (Beijing, 100033 mailbox 33 bin) or Internet mail. The disciplinary inspection and supervision department of the Company will investigate the report, and the information of the whistleblower will be kept strictly confidential.