Because the traditional ceramic industry is a high-input, high-energy-consuming, and high-pollution industry, local governments have included many ceramic companies as key environmental supervision units in 2024. "Green and low carbon" has become an unavoidable topic in the current building ceramics industry. Under the theme of green development, the production capacity differentiation of ceramic enterprises is also intensifying, and a large number of backward production capacities have been shut down and exited. Green and low-carbon has become the only way for industry development.
Since this year, environmental protection policies across the country have continued to tighten. At the beginning of this year, the Guangdong Provincial Department of Ecology and Environment issued the "Guangdong Province 2023 Carbon Emission Quota Allocation Plan." The ceramic industry is officially included in the scope of carbon emission management and trading. This landmark action shows that the ceramic industry is entering a critical period of green transformation of the industrial structure. It also indicates that the ceramic industry will face increasing cost pressure. . Not only that, on March 29, the Foshan Municipal Ecological Environment Bureau announced the list of Foshan City's 2024 environmental information disclosure companies in accordance with the law, with a total of 696 companies on the list. These include 48 ceramic companies and ceramic-related companies such as Oceano, Henlitai, Langjing, Keda Manufacturing, Xinghui, New Pearl Group, and Mona Lisa Group.
On the one hand, in order to respond to the call to improve the environmental responsibility and public transparency of enterprises, and on the other hand to promote the formation of new productivity, ceramic companies have upgraded their production lines one after another. In this wave of green transformation, Mona Lisa Group, with its forward-looking strategic vision, actively responds to national environmental protection policies and leads the industry towards green, low-carbon and sustainable development through technological innovation and industrial upgrading. In the past two years, photovoltaic power generation has become the focus of green development for ceramics and related enterprises. Mona Lisa continues to promote energy saving and consumption reduction applications in production line upgrades, photovoltaic power generation projects, new energy technology applications, etc., and adheres to the practice of green Action is in full swing.
On March 30, 2024, the green reform of the Mona Lisa Teng County production base in Guangxi ushered in important results. As the largest single power unit in China and currently the largest industrial and commercial rooftop distributed photovoltaic project in Guangxi, the 85MW project was officially launched. It covers a roof area of 640,000 square meters and is expected to generate an average annual power generation of 81.66 million kWh, saving 32,700 tons of standard coal and reducing carbon emissions by 81,400 tons each year.
In addition, the company is deeply involved in industrial pilot projects of zero-carbon energy, demonstrating its determination to continuously explore the use of new energy construction and upgrade low-carbon technologies. As early as 2021, Mona Lisa joined hands with Infineon to start the practice of hydrogen power systems in the field of material handling, promoting the implementation of China's first overall solution for hydrogen forklift applications. On December 28, 2023, Mona Lisa innovatively launched the construction of the world's first ceramic plate (brick) mass production line advanced ammonia-hydrogen zero-carbon combustion technology demonstration project, replacing traditional fossil fuels with zero-carbon renewable Ammonia-hydrogen fuel is an important development that Mona Lisa has made since 2005 in promoting the thinning and reduction of the industry. In addition to comprehensively improving new energyTechnology, Mona Lisa also uses digital and intelligent systems to conduct more scientific energy consumption and greenhouse gas management, and promotes the completion of coal-to-gas conversion at each production base, effectively reducing greenhouse gas emissions and reducing overall energy consumption.
The sustained growth of an enterprise must come from the layout of all aspects. In addition to reducing costs and increasing efficiency, achieving green and low-carbon transformation, incorporating ESG work into the overall management of social responsibility work, and actively grasping and responding to the opportunities and challenges brought by ESG development are becoming the Mona Lisa, and even the entire ceramic industry at present and in the future. mainstream development trends.
At present, my country's green insurance and green bond markets are also showing a rapid growth trend, and the current issuance scale ranks among the top in the world. my country's ESG (environmental, social and corporate governance) theme fund market is now showing a booming development trend. According to statistics, as of June 9, 2024, there are a total of 732 ESG products in existence (another 40 are to be established and 135 have been terminated). Excluding products of undisclosed scale, the total net value of ESG products reached RMB 526.6 billion, and the average product size was RMB 719 million. This trend shows that in the context of carbon peaking and carbon neutrality, the three major factors of environment, social responsibility and governance should be taken into consideration in investment decisions, integrating business principles with social principles, and choosing options with long-term sustainable growth capabilities. Enterprises have become a new investment concept in the fund industry and are a useful supplement to the fundamental analysis and investment portfolio construction strategies of listed companies.
In April 2024, the three major stock exchanges of Shanghai, Shenzhen and North China officially released the "Sustainable Development Reporting Guidelines for Listed Companies (Trial)", which provided a clearer and clearer guideline for the sustainable development information disclosure of Chinese listed companies. Normative guidelines. In terms of ESG/social responsibility report disclosure, the number of state-owned listed companies in the A-share market has shown a steady upward trend. Mona Lisa Group responded positively. At the beginning of this year, Mona Lisa released its first sustainable development report, comprehensively and systematically expounding the company's sustainable development concept and the results achieved in 2023. Mona Lisa Group's sustainable development practices are consistent with ESG investment concepts, providing investors with a new perspective.
It can be foreseen that as the market continues to mature and investors have a deeper understanding of ESG investment concepts, ESG theme funds are expected to usher in a broader development space. With the top-down promotion of low-carbon transformation and ESG information disclosure of listed companies, listed companies that actively seize transformation opportunities and have high letter disclosure quality will be favored by the capital market. Faced with multiple challenges such as gas price fluctuations, difficulty in using electricity, environmental protection and carbon reduction, Mona Lisa Group has demonstrated strong market competitiveness and investment value through cost reduction, efficiency improvement and green and low-carbon transformation. With the vigorous development of ESG theme funds and the standardization of sustainable development information disclosure by listed companies, Mona Lisa Group's green development strategy and investment value will become more prominent, indicating a promising green future. As mentioned in its 2023 annual report, the building and ceramics industry has entered an era of fierce competition in which stocks and even volumes are shrinking.Achieving growth against the trend in the wave of fighting against the existing market and the low-carbon revolution is an important issue for enterprises.
