On April 28, 2025, ShangGong Group Co., Ltd. (hereinafter referred to as “ShangGong” or “the Company”) actively responded to domestic and international regulatory requirements and officially released its 2024 Sustainability (ESG) Report, continuously improving the quality of environmental, social, and governance information disclosure. In the face of global economic uncertainty and intensifying market competition, ShangGong adhered to its business objective of “comprehensive quality management with a focus on cost reduction and efficiency improvement,” firmly advanced its established strategies, upheld the business philosophy of “global market layout and innovative green development,” accelerated digital transformation, and built an intelligent manufacturing industrial ecosystem. In 2024, the Company achieved a social contribution value per share of RMB 1.52, striving to create long-term sustainable value for shareholders, customers, employees, partners, and other stakeholders.
Environmental Responsibility
Promoting green transformation and addressing climate change.
ShangGong actively responds to carbon neutrality goals by formulating climate change strategies and implementing carbon footprint management. In 2024, in accordance with the international GHG Protocol, the Company took its German DA Group as a pilot area and completed the accounting of Scope 1 and Scope 2 carbon emissions for six major European production bases for the period 2023–2024. Total Scope 1 and Scope 2 emissions in 2024 were approximately 7,700 tons, a significant reduction of more than 1,700 tons year-on-year. At the same time, the Company actively promoted Scope 3 emissions accounting, gradually establishing a full life-cycle carbon data management system and continuously enhancing environmental management capabilities. Based on these efforts, the German DA Group achieved an EcoVadis score of 56/100, demonstrating the Group’s sustainable performance in global operations and its commitment and actions in global climate governance.
Creating green value together and leading low-carbon development.
ShangGong integrates the concept of green development into every aspect of its operations by introducing advanced energy-saving equipment and technologies, optimizing production processes, improving resource recycling efficiency, and expanding the deployment of renewable energy such as photovoltaics. In 2024, the total use of clean energy at home and abroad reached approximately 8 million kWh, accounting for over 20% of total energy consumption. In addition, the Company continues to achieve breakthroughs in energy-saving and environmental protection technologies, providing customers with advanced green products and process solutions, including the DA e-con green intelligent sewing control system, PFAFF ECO-MODE intelligent energy-saving hot-air welding technology, and Sonotronic ultrasonic eco-friendly welding technology. These innovations support green transformation across the upstream and downstream value chain and aim to enhance environmental benefits throughout the entire industry chain.
Social Responsibility
Customer-centric approach and empowerment through technological innovation.
ShangGong continuously improves product quality and service experience, and develops innovative products featuring automation, digitalization, and low carbon. The Company’s DA 911 Revolve CNC fully automatic pattern sewing machine won the 2024 Texprocess Innovation Award in Frankfurt. At the same time, ShangGong vigorously promotes the development of the KSL intelligent vision material sewing system and continues to expand the application of carbon fiber composite sewing technologies in areas such as wind turbine blades, aerospace structural components, and lightweight parts for new energy vehicles, injecting sustainable innovation momentum into strategic emerging industries.
People-oriented development and building a better society together.
ShangGong is committed to creating a safe, inclusive, and growth-oriented working environment for its employees. In 2024, the Group carried out more than 320 training programs with nearly 2,000 employee participants. Meanwhile, the Company actively engaged in community development and public welfare, with external donations exceeding RMB 260,000 in 2024 to support people’s livelihoods, rural revitalization, regional economic prosperity, and social harmony. For 11 consecutive years, the Company has organized the “Butterfly Fabric Art Experience” public welfare training program, demonstrating its corporate social value and humanistic care through concrete actions.
Corporate Governance
Global strategic deployment and governance system upgrading.
The Company continues to optimize its governance structure and operational processes, formulating a global resource integration strategy to adapt to international market competition and business expansion, and to promote resource sharing, complementary advantages, and coordinated development. Overseas, ShangGong accelerated the integration of its European manufacturing operations to enhance production capacity and cost efficiency. Domestically, the Company launched multiple production relocation initiatives to promote centralized, specialized, and large-scale development of manufacturing resources. At the same time, it actively advanced the localization of certain European products and components in China to strengthen supply chain stability and reduce production costs.
In response to the complex changes in the global economic environment, especially the impact of the downturn in German industry, the Company promptly adjusted its operating strategies and implemented a series of cost-reduction and efficiency-enhancement measures, including strict expense control, strengthened accounts receivable collection, and accelerated inventory reduction, in order to stabilize operating cash flow.
Steadfast and striving forward.
In 2025, ShangGong Group celebrates the 60th anniversary of its founding. Looking back over six decades since its origins as the Shanghai Industrial Sewing Machine Factory, the Company has always upheld “quality first” as its fundamental principle and advanced steadily on the strength of its profound industrial heritage. Entering a new stage of development, ShangGong will continue to take innovation as its driving force and responsibility as its foundation, focus deeply on its two core areas—material joining technologies and intelligent equipment—advance the localization of the ICON A5 aircraft, lead “ShangGong Intelligent Manufacturing” to new heights, and forge new sustainable global competitive advantages.