Shandong Huacheng Sino-German Transmission Equipment Co., Ltd. 2023 Annual Greenhouse Gas Emission Report

According to the "Accounting Methods and Reporting Guidelines for Greenhouse Gas Emissions of Chinese Machinery Equipment Enterprises (Trial)" issued by the National Development and Reform Commission and the Chinese Product Life Cycle Greenhouse Gas Emission Factor Database, this report primarily accounts for the annual greenhouse gas emissions and fills in the relevant data tables. The relevant situation is reported as follows:

I. Basic Information of the Enterprise

Shandong Huacheng Sino-German Transmission Equipment Co., Ltd. is a national high-tech enterprise and currently serves as the chairman unit of the Reducer Branch of the China General Machinery Industry Association. The company has a registered capital of 100 million yuan, with total sales reaching 377 million yuan in 2023. The company is positioned in the high-end equipment manufacturing industry, dedicated to the research and production of high-precision gear transmission equipment. The main products include modular precision reducers, high-power heavy-duty gearboxes, geared motors, high-speed gearboxes, remanufacturing of high-end gearboxes, and high-precision gear component processing.

The company introduced advanced design technology and process standards from Germany and has a product R&D center in Munich, Germany. It has successively developed nine major series with thousands of specifications of gear transmission equipment such as M, HB, KPL, MS, etc., winning the National Machinery Industry and Shandong Province Science and Technology Progress Awards. The products are widely used in industries including coal, ports, metallurgy, alumina, power, building materials, mining, lifting, environmental protection, chemical, papermaking, and light industry. In 2012, it was rated as a "Star SME in Revitalizing Equipment Manufacturing" by the China Machinery Industry Federation. In 2015, the company was recognized as a "Specialized and Innovative Demonstration Enterprise" by the China General Machinery Industry Association. In 2018, it was rated as a "Specialized, Refined, Distinctive, and Innovative SME" in Shandong Province.

II. Greenhouse Gas Emissions

After accounting, the company's fossil fuel combustion emissions during industrial production in 2023 were 173.1 tCO2, emissions from net purchased electricity were 6358.8 tCO2, with a total emission of 6531.938 tCO2.

III. Activity Level Data and Source Description

The types of energy used by the company are electricity, natural gas, liquefied petroleum gas, diesel, and gasoline. Electricity is consumed by production and office equipment; natural gas is consumed by heating boilers and hot water boilers; liquefied petroleum gas is used for kitchen stoves; diesel is used for forklifts within the plant; gasoline is used for official vehicles.

The consumption of electricity and natural gas is statistically managed by the production department, while gasoline and diesel consumption is managed by the transportation department.

During production, the company uses propane and acetylene as cutting gases, and methanol and propane as high-temperature cracking gases for heat treatment. At the end of each month, the company signs procurement contracts with suppliers based on the actual gas purchase volume of the month and settles accounts accordingly. Therefore, the consumption data for methanol, propane, and acetylene gases come from the procurement department's statistics based on procurement contracts.

IV. Emission Factor Data and Source Description

The company did not measure the lower heating value, carbon content per unit heat value, or carbon oxidation rate of the fossil fuels consumed, and all default values from the guidelines were used.

Data for methanol, propane, and acetylene gases come from the Chinese Product Life Cycle Greenhouse Gas Emission Factor Database.

The electricity emission factor uses the 2022 average carbon dioxide emission factor of the Chinese power grid.

V. Conclusion

1. The emission accounting method of Shandong Huacheng Sino-German Transmission Equipment Co., Ltd. complies with the "Accounting Methods and Reporting Guidelines for Greenhouse Gas Emissions of Machinery Equipment Manufacturing Enterprises";

2. Emission Statement

After verification, the 2023 greenhouse gas emissions of Shandong Huacheng Sino-German Transmission Equipment Co., Ltd. are shown in the table below:

Table 1 Company Energy Consumption Statistics

Table 2 Verified 2023 Greenhouse Gas Emissions

This report is true and reliable. If the information in the report does not match the actual situation, the company will bear the corresponding legal responsibility.

Shandong Huacheng Sino-German Transmission Equipment Co., Ltd.

June 10, 2024