Public Announcement of Quality and Integrity Status of Shaoxing Jinyang

Table of Contents

Foreword 3

Message from the General Manager 4

I. Company Profile 5

II. Corporate Quality Philosophy 5

III. Corporate Quality Management 6

IV. Quality Integrity Management 9

V. Quality Management Foundation 11

VI. Product Quality Responsibility 12

Closing Remarks of the Report 16

Foreword

The quality integrity report issued by our company is compiled in accordance with relevant national quality laws and regulations, rules and regulations, as well as industry quality standards and specifications. The content of this report regarding the company's quality integrity and quality management is a true reflection of the current status of our company. We are responsible for the objectivity of the report's content and the authenticity and scientific nature of the relevant discussions and conclusions.

Scope of the Report:

The organizational scope of this report is Shaoxing Jinyang Textile Co., Ltd. This report describes the company's philosophy, systems, measures taken, and performance achieved in the areas of quality management, product quality responsibility, and quality integrity management from January 1, 2022, to December 31, 2022.

Publication Format of the Report:

Our company regularly publishes a quality credit report once a year. This report is made available to the public in PDF electronic document format on our company's website. We welcome you to download and read it, and we appreciate any valuable feedback you may provide.

Message from the General Manager

Integrity is the fundamental principle of running a business. Shaoxing Jinyang Textile Co., Ltd. is committed to creating a fair, transparent, and open environment and corporate culture for all participants in our value chain.

Our company is headquartered in Keqiao District, Shaoxing City, Zhejiang Province, with a registered capital of 120 million yuan. The factory covers an area of about 31,000 square meters and employs 350 workers, including five professional sewing teams. We have invested heavily in machinery to become one of the best textile factories in the aviation industry. We possess 126 jacquard looms with a width of 3.6 meters and 500 sewing machines, including 28 highly modernized high - tech electronic jacquard machines. Our annual production capacity for jacquard blankets reaches 6 million pieces. To highlight our flexibility and expectations, we have also purchased 18 new automatic thread - cutting computer embroidery machines to ensure the production of 4.7 million triangular blankets per year. In addition, we have 16 production lines for aviation non - woven headrest covers and pillow covers, with an annual output of 600 million pieces. We are one of the largest textile companies and the only one that has passed the SGS audit for producing permanent flame - retardant and anti - static blankets. We offer a wide range of products for the retail and aviation markets, including blankets, pillows, pillowcases, duvets, headrest covers, airline sheets, airline amenity kits, sleeper - car uniforms, and more. Moreover, we are engaged in import and export business and hold our own export license.

Our company places great emphasis on the establishment of a quality management system. We have built a comprehensive quality management system, implemented, and passed the ISO 9001 Quality Management System certification. We continuously improve the quality management process and control product quality from various aspects such as quality management, quality inspection, and testing. We also ensure the quality safety of the products produced in accordance with standard documents. In addition to this, we have successively established an environmental management system and an occupational health and safety management system, both of which have been certified.

In modern economic society, integrity is not only a moral standard but also an important resource that can bring economic benefits to enterprises. Quality integrity is the core element in winning customers. Our corporate culture requires all employees to be honest, to establish themselves with integrity, to shape an integrity - oriented culture, to enhance the core competitiveness of the enterprise, and to strive to become the most popular medical device and aviation product manufacturing enterprise among customers.

Body of the Report

I. Company Profile

Shaoxing Jinyang Textile Co., Ltd. is a specialized enterprise dedicated to the research and development, production, sales, service, medical supplies, and aviation cabin products. Established in October 2004, the company became a certified supplier for China Medical Device and Swiss SGS certification for Made - in - China Network in 2007. It is currently the only domestic company that has passed the Swiss SGS inspection. Since 2013, the company has been engaged in the research and development of protective clothing products, which are directly sold to the EU market, with multiple products obtaining the EU CE certification, holding an absolute leading position in the domestic market. In 2015, the company began to implement the Excellence in Performance Management model, with a sound management system. It has successively passed the ISO 9001 Quality Management System, ISO 14001 Environmental Management System, ISO 45001 Occupational Health and Safety Management System, and the third - level acceptance of safety production standardization in Keqiao District. The company's economic benefits, scale, profits, and total asset contribution rate rank among the top in the domestic industry. In the past two years, the company has maintained a tax - paying credit rating of A, with a total revenue of 600 million yuan. During the COVID - 19 pandemic, the company actively took on social responsibilities, donating money and materials to the Red Cross and epidemic prevention and control groups multiple times. Leveraging its production advantages, it made significant contributions to the fight against the pandemic and was honored with the title of "Epidemic - Fighting Hero" by the Zhejiang Provincial Department of Economic and Information Technology and the May Day Labor Model Award by Shaoxing City.

Since its establishment, the company has built an intellectual property strategy system. It currently holds six self - developed invention patents and 14 utility model patents, which are widely applied to core technology products.

In the past three years, the company has cumulatively invested 43.6 million yuan in research and development, accounting for 4% of its total revenue, and completed the transformation of 22 scientific and technological achievements, averaging 7.3 items per year. The transformed achievements include more than 20 technical results such as thermal - insulation fabrics, anti - wrinkle fabrics, blackout fabrics, hollow - fiber thermal - insulation fabrics, antibacterial fabrics, textured single - stripe fabrics, pleated fabrics, new - type air - layer fabrics, heat - generating fiber fabrics, one - piece protective suits, and thermal - insulation blankets, all of which are at a domestic leading level.
　　

II. Corporate Quality Philosophy

Since its inception, Shaoxing Jinyang Textile Co., Ltd. has been committed to the control and management of product quality. The company firmly believes that product quality is the cornerstone of its survival and development, and a prerequisite for capturing the market and winning customers. Adhering to the quality philosophy that "quality originates from our hearts and the enterprise depends on customers," the company continuously improves and enhances its quality management level.

After obtaining the quality management system certification, the company has always adhered to the quality policy of "quality first, customer paramount." It strictly complies with relevant legal requirements, quality management system standards, quality manual requirements, and procedural document requirements to ensure the effective operation of the quality management system. This approach has ensured strong quality assurance and continuous improvement of product quality, allowing the company to basically achieve its various quality objectives.

To fundamentally strengthen and enhance quality management and improve the company's business quality, the company has seized the opportunity to introduce the Excellence in Performance Management model and implement comprehensive quality management. Through project management and activities such as internal audits, self - assessments, second - party audits, and third - party audits or evaluations, the company continuously seeks opportunities for improvement in quality management and gradually achieves excellence in performance. Since its establishment, the company has never had any major product quality complaints.
　　

III. Corporate Quality Management

3.1 Quality Management Organization

Products are the output or result of a process. The quality of a product is determined by the quality of the process, and the quality of the process is determined by the quality of the system. To ensure the quality of the system, process, and product, the company has established a quality management framework in accordance with the requirements of the quality management system standards. By employing systematic and process - oriented management methods, the company has identified the required processes and their inter - relationships.

The company comprises six departments: the Procurement Department, Production Department, General Office, Sales Department, Technical Department, and Quality Inspection Department. In recognition of the significance of product and service quality and safety, the company's General Manager has undertaken the following responsibilities:

1. Participate in the formulation and review of the quality strategy.

2. Convey the importance of meeting customer and legal requirements to the organization.

3. Establish a quality policy.

4. Ensure the establishment of quality objectives.

5. Conduct management reviews.

6. Ensure the availability of resources.

7. Participate in monthly quality meetings.

8. Engage in major product quality reviews and quality improvement activities.

9. Participate in quality commendation activities.

10. Take part in quality month activities to popularize quality and safety education.

11. Establish a clear quality accident accountability system and a quality safety traceability system.

3.2 Quality Management System

3.2.1 Quality Management System Policy and Objectives

The quality management system established and implemented by our company is guided by the policy of "Quality First, Customer Paramount." Our quality objectives are as follows:

1. Product qualification rate of 97%.

2. Customer complaint handling rate of 100%.

To continuously improve the company's quality management system, we formulate an annual plan to conduct step-by-step audits of the quality management system. Through internal audits, we identify opportunities for improvement. Additionally, we take full advantage of second-party and third-party audit opportunities to enhance the effectiveness of our quality management system.

By introducing the Excellence in Performance Management model and implementing comprehensive quality management, our company has aligned its quality management system with the pursuit of excellence. We have established an integrated comprehensive quality management system with the company's strategy at its core and the GB/T 19580 Excellence in Performance Management model as its framework. This system meets the requirements of five major stakeholders: customers, employees, suppliers, society, and partners. We have established corresponding strategic plans and quality objectives at all levels of the company. Relying on the company's performance appraisal system, we have set up quality assessment KPIs and a quality accountability system.

　　3.2.2 Quality education
During the operation of the system, the company utilizes various scientific and effective tools based on the PDCA system approach to measure, analyze, and improve the effectiveness of the quality management system and the performance of various departments and levels. It also adopts benchmarking and learning methods to continuously revise individual work thoughts and consciousness, ensuring the achievement of individual and overall company goals. The company establishes an internal training system and carries out various educational and training activities according to the specific situation of the company. Externally, it actively communicates and exchanges with customers, government functional departments, and industry associations, and invites experts to provide special training for company employees in a timely manner. The company regularly conducts targeted quality education for employees at all levels, combining the operation of the system and actual quality performance, and conducts special management of quality control points to ensure the consistency of product quality during the manufacturing process. To firmly establish the integrity awareness of all employees, the company formulates an annual quality integrity education and training plan at the beginning of each year and conducts quality integrity education and training. The company organizes the first-level education work, and department heads prepare educational training plans and content according to company requirements, carefully organizing and implementing the education and training for their subordinates. Team leaders are responsible for the integrity publicity and education of employees. The company communicates through websites and corporate WeChat groups, utilizing various methods such as morning meetings to implement quality integrity education for corporate employees.
3.2.3? Quality regulations and responsibility system
The company collects laws, regulations, and other standards and requirements, formulates internal relevant standards, and ensures that products meet the requirements of national laws, regulations, and national and industry standards (some product indicators are higher than industry standards). It fulfills social responsibility from the perspective of product technology. At the same time, the company has formulated the "Product Monitoring and Measurement Control Procedure" to ensure that various inspection and acceptance standards are fully implemented during the production process, and unverified or unqualified products are not allowed to enter the next process or leave the factory. The company follows the principle of not letting go of quality accidents.
Table 1 Quality standards and other relevant laws adhered to by the company

The company has established Internal Quality System Audit and Management Review Control Procedures, and has cultivated a team of internal auditors. To ensure the effectiveness and continuous improvement of the system's operation, the company schedules internal audits, process audits, and product audits. For any non - conformities identified during the audits, the responsible departments are required to analyze the causes, develop corrective or preventive actions, implement the rectifications, and verify the effectiveness of these actions. The results are then compiled into an internal audit report, which offers suggestions for system improvement and the prevention of non - conformities. This report serves as a crucial input for management reviews and is reported to the top management.

The company has also established Non - Conforming (Non - Conformity) Control Procedure, Corrective Action Control Procedure, and Product Monitoring and Measurement Control Procedure to strictly control non - conforming products. The company has set inspection standards, and products must pass self - inspection, mutual inspection, in - line inspection, and specialized inspection before they can proceed to the next process or be shipped out. Any non - conforming product must have clear identification, documentation, isolation, and handling requirements. All non - conforming products must be re - inspected and found合格 before they can proceed to the next process.

In addition, detailed records are kept for all non - conformities. These records are statistically analyzed by a designated person. Based on this analysis, the responsible unit develops corrective actions in accordance with the Corrective Action Control Procedure and implements the necessary rectifications. Only after the effectiveness of the corrective actions has been assessed and confirmed can the issue be closed.

Furthermore, the company holds accountable those responsible for quality issues and provides education to prevent recurrence. In daily development and production activities, the company emphasizes standardization and fully applies the PDCA cycle to continuously improve and pursue excellence.

3.3 Quality and Safety Risk Management

All products and processes of the company are designed and developed in accordance with the planned implementation, and product characteristics are analyzed. For sections with high risk priority numbers, necessary measures are taken to reduce risks. Control plans, work instructions, and other documents are compiled to conduct risk analysis on each product requirement and process link. The company ensures strict control and inspection of each link to guarantee that every process meets relevant requirements and ensures the final product quality is qualified. The company also implements control over special processes. In the processes, the three main stages of product formation - raw materials, semi - finished products, and finished products - are inspected and monitored, with strict checks at each level. As needed, the company conducts quality management system audits, process audits, and product audits. In terms of quality management and control, the company inspects products at each stage in accordance with established procedures, and only products that pass the inspection are released. To respond quickly and effectively reduce risks, the company has also established a Risk Management Control Procedure to prevent and reduce quality and safety risks.

IV. Quality Integrity Management

4.1 Quality Commitment

(1) Integrity and Compliance

Senior management adheres to the business philosophy of "people - oriented, quality - driven, and innovation - led," strictly following the Company Law, Economic Law, Contract Law, Product Quality Law, Occupational Safety and Health Law, Environmental Protection Law, Labor Law, and other relevant laws and regulations of the industry. The company has established and implemented quality, environment, and occupational health and safety management systems, all of which have passed certification. The company has conducted employee legal knowledge training, cooperated with government departments in legal education activities, and encouraged and commended employees' "positive energy," embedding the style of integrity and compliance into the consciousness and behavior of all employees. The company's contract breach rate is zero, it never defaults on bank loans, and overdue accounts receivable are kept within a reasonable range. Senior and middle - level managers have no records of illegal or disciplinary violations, and employee violations are zero. The company has established a good credit and moral image among customers, suppliers, employees, and society. The company has been recognized as a Zhejiang Province AAA - level "Contract - Abiding and Credit - Valuing" enterprise.

(2) Meeting Customer Needs

The company places great emphasis on technological research and development, developing new products through independent research and development. It currently holds 20 national authorized patents, including six invention patents. The company strives to improve product quality and provides customers with high - level products at a good cost - performance ratio. The company strengthens its research and development capabilities, focuses on industry development, and centers on customer needs to carry out product improvement and innovation activities to meet market demands. In terms of product quality, the company strictly implements the quality management system and ensures product quality safety through measures such as introducing advanced production equipment. Over the years, the company has strictly adhered to confidentiality agreements signed with all relevant parties in its business activities and has received high praise from customers.

4.2 Operational Management

(1) Integrity Management in Product Design

The company's product design and research and development strictly follow the Design and Development Control Procedure, covering the entire process from research and development project initiation, records of various activities in the process, summary of the research and development process, to management evaluation and control. Respecting others' knowledge and participating in the protection of intellectual property rights are important aspects of our company's design and development work.

(2) Integrity Management in Raw Material or Component Procurement

The company classifies materials based on the risk they pose to product quality. In addition to meeting the statutory qualifications, material suppliers are subject to regular on - site inspections. Special materials are subject to risk analysis, and depending on the quality of the materials supplied by the supplier, a decision is made on whether an on - site review is necessary. A quality file should be established for material suppliers. Each batch of raw materials purchased is inspected, and raw materials that do not meet the specified standards are not allowed to be stored or used.

(3) Integrity Management in Production Process

The company controls the factors in the production process that affect product quality to ensure that the production cycle, cost, and quality of products meet the specified requirements. The company identifies the various states of products at each stage to achieve traceability and has established a Production Process Control Procedure.

The production department is specifically responsible for the production management and on - site process management of various products. The technical department assists in formulating and gradually improving various production management systems, work standards, job operation procedures, and all kinds of process, management, and standard operating procedures. Comprehensive job - specific skills training is provided to operators at each position, and various methods are used for supervision and assessment to enhance employees' quality awareness and improve their operational skills. During the production process, managers at all levels strictly fulfill their management responsibilities, conduct timely inspections, and correct errors in a timely manner to ensure the orderliness of production.

The production department strictly implements the production plan. Each section compiles a production task breakdown sheet based on the production task order and hands it over to the relevant teams for production. The production department controls the specific production progress. The specific operating methods and process control for each process are carried out according to the corresponding work instructions for each process. The technical and quality inspection departments assist the production department in solving technical and process problems and product quality issues that arise during production operations. The use of raw materials, auxiliary materials, and packaging materials required for production is verified before use to ensure the quality of semi - finished and finished products. Quality control points are set at key processes, and employees are urged to conduct self - inspection and mutual inspection. The monitoring and verification procedures are strictly followed, and records are managed rigorously to ensure consistency between requisition, issuance, and verification. Material balance is conducted for each production step to ensure that the quantity of materials input and products output is consistent with the process requirements, confirming no potential quality risks and meeting the requirements of consistency between accounts, cards, and materials. Based on industry characteristics and actual conditions, the company strengthens the level of informatization in the production process and implements systematic management of the entire production process. At the same time, the company taps into internal potential, leverages the strength of technical backbone personnel, and carries out continuous improvement or technological innovation of existing equipment. Production employees must undergo training and assessment before taking up their posts. A comprehensive training file is established for all employees. Training is conducted through various methods such as centralized training, pre - shift meeting training, "mentoring," and visualization to enhance their work skills and quality awareness. Production employees strictly adhere to workshop discipline.

4.3 Marketing Management

In accordance with strategic requirements, the company segments the market to enhance the effectiveness and targeting of resources and operations. The company categorizes customers into different types and identifies their needs and expectations. Based on these needs and expectations, appropriate methods are determined, relevant systems and teams are established, and various channels and approaches are set up to gain a targeted understanding of customer requirements. Through channels such as industry conferences, industry standardization committees, public media, the Internet, and external organizations, the company employs methods like questionnaire surveys, face - to - face or telephone interviews, observation and inquiry, and external commissioning to understand customer needs and expectations. Each department of the company regularly collects customer information. After analysis, the identified customer needs are sorted and summarized according to different market segments to form a database of customer requirements and expectations for different customer groups. Summarized information on the overall needs of customer groups in different market segments is derived for reference in decision - making related to product planning, product development and design, process control, etc.

The company requires sales personnel to be热情 and attentive to every customer, regardless of whether they place an order, and to try to meet all their reasonable demands. The company has established relevant processes such as the Customer - Related Process Control Procedure to enhance the skills and quality of sales staff from various aspects and improve customer closing rates. A customer visitation system is in place to promptly understand customer needs and satisfaction levels in order to enhance customer satisfaction. The company has also established a rapid response mechanism for timely feedback and handling of customer complaints and suggestions to resolve issues. Customer inquiries regarding product use are answered through telephone (providing 24/7 hotline service) or written means. When necessary, technical personnel are dispatched for dedicated service. Timely responses and feedback are given to customer complaints and suggestions.

V. Quality Management Foundation

5.1 Standard Management

The company integrates enterprise standardization throughout the entire production process. Standards are established for all aspects, from the procurement of raw and auxiliary materials and packaging materials to the inspection of semi - finished and finished products. This ensures that the entire production process, from the entry of raw and auxiliary materials to the release of finished products, is under standardized and regulated management. This has laid a solid foundation for stabilizing product quality and improving the company's management level.

5.2 Metrology Management

The company strictly complies with the Metrology Law of the People's Republic of China and other relevant documents and regulations. A comprehensive set of management documents and control methods has been established for all aspects, including raw material procurement, process management, production equipment, inspection equipment, process inspection, and finished product inspection. Dedicated metrology personnel are assigned to manage the company's in - use metrology equipment, allocation, and regular calibration. The company emphasizes professional training for metrology management personnel, providing strong support for the standardization of metrology management. To ensure product quality, strict process control is implemented in the product manufacturing process, with enhanced metrology management of raw and auxiliary materials used in the process. This ensures the normal operation of metrology equipment and the accuracy of measurements. Metrology instruments are strictly managed from procurement to storage and issuance. The warehouse has a dedicated person in charge of metrology instruments, with a register and registration procedures in place. Metrology instruments can only be issued and used after passing calibration and obtaining a calibration certificate. In - use metrology instruments are strictly calibrated according to the schedule, with enhanced on - site inspection and supervision to monitor their usage. Any issues found are promptly addressed. Departments with issues are given corrective suggestions and required to take effective measures for rectification. This has laid a solid metrology foundation for the production of high - quality products. In the design and development phase, measurement system analysis is implemented for key characteristics to ensure the validity of measurement results. New measurement systems are only put into use after system analysis and meeting requirements.

5.3 Certification Management

The company has obtained certifications for ISO 9001 Quality Management System, ISO 13485 Medical Device Quality Management System, ISO 14001 Environmental Management System, ISO 45001 Occupational Health and Safety Management System, China Green Product Certification, Customer Complaint Management Certification, BSCI Certification, TUV System Certification, and is also engaged in the certification work for the "Zhejiang Manufacturing" brand. The company strictly operates and improves its systems in accordance with international standards, ensuring the quality of its products and facilitating the smooth implementation of its quality policy of "Quality First, Customer Paramount." Since its establishment, the company has never had any major quality complaints. In annual inspections by quality and technical supervision departments at all levels, the pass rate has consistently reached 100%.

5.4 Inspection and Testing Management

To ensure that raw and auxiliary materials supplied by vendors meet specified requirements, the company conducts incoming inspections. The Quality Inspection Department is responsible for compiling incoming inspection procedures and for the inspection of raw and auxiliary materials. The Procurement Department is responsible for handling non - conforming raw and auxiliary materials, while the warehouse is responsible for receiving and recording the quantity and name of incoming raw and auxiliary materials. To ensure that all products pass the specified inspections before proceeding to the next process, the company has established Product Monitoring and Measurement Control Procedures and Non - Conforming Product Control Procedures for strict in - process inspection. The Quality Inspection Department is responsible for formulating final inspection and testing procedures for the process, setting up final inspection points, and organizing in - process inspection activities. Quality inspectors are responsible for checking at inspection points and inspecting semi - finished and finished products. Production operators are responsible for self - inspection and mutual inspection.

VI. Product Quality Responsibility

6.1 Product Quality Level

The company continuously strengthens its design and development team and continuously improves the technical level and quality performance of its products, which have now been recognized by global customers and the industry.

6.2 Post - Sale Product Responsibility

The company has obtained a customer complaint management certification. By establishing and implementing a customer complaint handling process, it ensures that customer complaints are handled in a timely and effective manner. Customer complaints are handled by dedicated personnel. Each complaint is closely monitored. Based on the type and severity of customer complaints, the company is customer - centric and focuses on collecting and resolving customer feedback, taking necessary corrective/preventive actions to prevent similar issues from recurring. The company follows up on the complaint handling process through telephone callbacks to understand customer satisfaction. Meanwhile, the company's General Office regularly monitors customer complaint information, collects and analyzes recurring issues in the market that affect customer satisfaction and product debugging, and forms reports. Regular internal quality meetings are organized to tackle major product quality issues, eliminate quality risks, and enhance product quality satisfaction.

6.3 Corporate Social Responsibility

While continuously developing the enterprise, the company actively fulfills public responsibilities, civic duties, and adheres to ethical standards. In terms of public responsibility, the company focuses on environmental protection, employee occupational health and safety, and reducing energy consumption, achieving significant results through continuous innovation and improvement. In terms of ethical behavior, the company takes into account the interests of customers, employees, the government, and other relevant parties. In terms of public welfare support, senior management leads by example, and employees actively participate in giving back to society.

(1) Public Responsibility

The company seeks harmonious development between the enterprise and the environment. Under the premise of achieving reasonable profits and economic benefits, it actively invests in advanced equipment and technology. By identifying risks associated with potential harm to society from the company's operations and strictly adhering to various relevant laws and regulations, the company takes effective measures to meet legal requirements and safeguard public interests. Although the company's products and production and operational processes have minimal environmental pollution and social risks, the company still places great emphasis on controlling environmental impacts. It strictly implements national laws and regulations, establishes and implements environmental and occupational health and safety management systems, and formulates and implements emergency response plans for sudden incidents. The company signs annual safety management target responsibility agreements, establishes safety early warning mechanisms and accident response mechanisms, and regularly conducts fire drills and emergency assembly exercises to achieve environmental and safety goals. The company also establishes energy - saving management systems and resource recycling systems to recycle and reuse resources. Measurement indicators, methods, and control processes for the company's environment, safety, and energy consumption are shown in the table below.

Table 3 Measurement and Control Methods for Public Responsibility Indicators

Corporate Social Responsibility Practices

(1) Ethical Conduct

The company regularly conducts internal audits, second - party audits, and third - party surveillance audits to analyze and evaluate its performance in areas such as quality management, environmental protection, energy consumption, resource utilization, and health and safety. Based on the findings, the company takes measures to implement improvements.

(2) Ethical Behavior

The company's ethical behavior is primarily reflected in the following areas:

Within the Company:

- Senior Management: Undergoes an annual democratic evaluation focusing on political ideology, leadership skills, and business performance.
- Middle Management: Adheres to regulations on integrity and professional conduct to enhance ethical standards and management capabilities.
- Employees: Are subject to various administrative regulations and codes of conduct to ensure compliance and ethical behavior.

Between Companies:

- Suppliers: The company maintains strong cooperative relationships with suppliers, engaging in regular meetings and exchanges. The procurement department strictly follows the Contract Law and Procurement Control Procedures to minimize contract breaches and claims.

External to the Company:

- Customers: The company ensures product quality and contract compliance. Its products adhere to three main quality standards: national quality laws and regulations, industry - specific quality standards, and the company's own stringent quality requirements. Given the company's leading position in the industry, its internal standards often exceed national or industry norms, resulting in widespread acclaim for product quality. In terms of marketing contracts, the company consistently operates in accordance with the Contract Law, maintaining good Partnership and Collaboration with customers of all sizes.
- Government: The company is committed to paying taxes in accordance with the law and upholding integrity. Paying taxes legally is a fundamental ethical requirement for businesses and a crucial safeguard for the healthy development of the economy and society. As a leading enterprise in the industry, the company views paying taxes as a responsibility and duty.

(3) Public Welfare Support

The company places great emphasis on its social responsibilities and is dedicated to giving back to society. The company's leadership is committed to continuously developing public welfare initiatives as the company grows. In alignment with its strategic plan, the company allocates annual budgets and identifies key areas for public welfare support.

Table 4 List of Public Welfare Activities

6.4 Quality Credit Record

Since its establishment, the company has never had any major quality complaints. In annual inspections by quality and technical supervision departments at all levels, the pass rate has consistently reached 100%.

Closing Remarks of the Report

The construction of quality integrity is a shared responsibility of the entire society and requires the joint efforts of everyone. The company will continue to strive, operate with integrity, and fulfill its responsibility as the primary entity for product quality and safety. We are committed to contributing to the healthy, orderly, and rapid development of the industry!