Social Responsibility Report 2023

Shaoxing Jinyang Textile Co., Ltd.

Corporate Social Responsibility Report 2023

To build Jinyang Textile into a first-class green textile enterprise that is responsible and committed to a development path of brand quality and efficiency, we have earnestly implemented the Scientific Outlook on Development. We adhere to the principles of customer satisfaction and integrity in business operations, while attaching great importance to the legitimate rights and interests of all shareholders. We continuously strive for the harmonious unity of interests among the enterprise, employees, society, and nature.

This report focuses on the year 2023 and provides a comprehensive and objective reflection of the company's performance in fulfilling its social responsibilities during its business management activities. The purpose of this report is to enhance communication and interaction between the company and all sectors of society, further promoting the implementation of the Scientific Outlook on Development in our daily business operations and driving the coordinated development of the economy, society, and environment.

I. Lawful Operation and Integrity

In 2023, the company continued to advocate and shape a corporate culture of "integrity and win-win cooperation." We improved the internal credit system of the enterprise and strengthened management in areas such as business credit, credit lending, quality credit, and tax payment credit. We followed the principles of fair competition, conducted our production and business activities in accordance with the law, and ensured credibility, contract fulfillment, scientific management, standardized operations, and fair competition.

II. Protection of Shareholders' and Creditors' Rights and Interests

While pursuing the maximization of shareholders' interests, the company also endeavored to ensure financial stability and the safety of corporate assets and funds, taking into account the interests of creditors. In the decision-making process of major business operations, the legitimate rights and interests of creditors were fully considered. The company focused on embodying its social value, committing to creating prosperity for society. By developing itself, the company influenced and drove local economic growth and shared its economic achievements with society.

III. Protection of Suppliers' and Customers' Rights and Interests

The company pursued a win-win relationship with suppliers, adhering to the principles of shared benefits, shared risks, and common development. We evaluated suppliers based on their delivery capabilities, cost management, manufacturing capabilities, quality control, service capabilities, and collaborative cooperation. We established cooperative, win-win, and sustainable partnerships with major suppliers.

We adhered to the principle of customer first and rapid response, creating value for customers and meeting their evolving needs. We effectively implemented responsibilities at every stage, including contract signing, contract processing, production organization, and transportation. We carefully analyzed weaknesses and anomalies in each link and continuously improved to ensure high-quality, timely contract fulfillment. Through product research and development, combined with quality management goals, we continuously enhanced product quality and physical performance. Guided by the idea of "improving customer satisfaction and enhancing service capabilities," we conducted customer service work, focusing on customer experience, and won more customers with high-quality products and excellent services. During the reporting period, the company did not engage in any illegal or disciplinary violations or commercial bribery.

IV. Protection of Employees' Rights and Interests

1. Safeguarding Employees' Legal Rights and Interests

In accordance with the provisions of the Labor Contract Law, the company signed labor contracts with employees, standardized the management of labor contracts, and safeguarded employees' legal rights and interests. During the reporting period, the company paid wages and bonuses on time and in full every month, processed and paid social insurance for employees, and continuously carried out poverty alleviation and warmth-giving activities to help employees in need. Employees enjoyed the fruits of the company's development, which motivated them to work more actively and promoted harmonious and stable labor relations.

In terms of protecting employees' rights and interests, the company signed labor contracts with all employees, achieving a 100% signing rate. The company paid five types of social insurance for all employees, established quarterly star awards and annual star employee reward funds, and paid housing provident funds for eligible employees. During traditional festivals such as the Dragon Boat Festival, Mid-Autumn Festival, and Spring Festival, the company distributed physical welfare, and every employee celebrating a birthday received a cake from the company on that day. In addition, the company's trade union, through setting up suggestion boxes, publicly displaying relevant leaders' WeChat IDs, and holding symposiums, showed concern for employees' lives, listened to their voices, and resolved actual problems and difficulties in their work and daily lives, effectively safeguarding employees' legal rights and interests.

2. Ensuring Employee Occupational Safety

The company focused on employee safety production and labor protection, continuously conducting safety education and training. In the course of development, the company always adhered to the principle of "people-oriented," respecting and caring for employees, providing them with broad career development opportunities, and creating a good working environment. This maintained the long-term cohesion and stability of the employee team, achieving harmonious enterprise development and employee growth. The company established and improved labor safety and health systems, implemented national labor safety and health regulations and standards, and provided necessary labor protective equipment and facilities for employees in different positions. Regular comprehensive safety inspections were conducted, and old equipment with safety hazards was renovated or updated. A healthy and safe working environment was provided for employees.

3. Focusing on Employee Career Development

The company was committed to creating a career development platform for employees to grow together with the enterprise. Based on job nature and characteristics, combined with employees' career interests and expertise, career development channels were established for management, technical, marketing, and skilled worker positions. The company established a scientific talent evaluation mechanism and a selection and elimination mechanism, fully promoted the echelon construction of various talent teams, and provided diversified growth opportunities for employees. The company also conducted multi-level and multi-theme training based on job requirements and employee wishes, including new employee onboarding training, pre-job training, technical lectures, on-the-job training, management training, and promotion training. Over the past year, management and production backbone personnel who graduated from on-the-job professional training have played leading roles in their respective positions.

Leveraging the Role of the Trade Union and Workers' Congress

The company's trade union strengthened its own construction, effectively implemented the employee rights protection project, and continuously enhanced its cohesive role by showing real concern for employees' lives. The company gradually improved the workers' congress system, further promoted democratic management and supervision, and ensured and implemented employees' democratic rights to be the masters of the enterprise. In accordance with the provisions of the Company Law and the Company Articles of Association, the company established a system for the selection of employee supervisors. Among the three members of the company's board of supervisors, one employee supervisor was elected by the workers' congress. At the same time, the company actively carried out rationalization suggestion activities among employees, and rewarded those whose suggestions achieved significant economic benefits or greatly improved work efficiency. This greatly motivated employees to participate in the company's management.

V. Improving Resource Comprehensive Utilization

During production, the company continued to promote the reuse of old materials and comprehensive utilization. Timely maintenance and care of electromechanical equipment were ensured to improve equipment integrity rates and extend their service life. The company persisted in carrying out waste heat and clear water recycling, as well as waste heat utilization from wastewater, thereby improving the comprehensive utilization rate of resources.

While focusing on production, the company also paid attention to the discharge of "three wastes" (waste gas, wastewater, and solid waste). It strengthened organizational leadership, improved systems, and established long-term mechanisms for supervision and inspection. The company ensured timely maintenance and scientific operation of relevant equipment, monitored the discharge indicators of "three wastes" to ensure compliance, and continuously enhanced the process innovation capabilities of dyeing and printing enterprises. The successful promotion and application of alternative alkalis, reactive dyes replacing traditional dyes, and various one-bath production methods have been achieved. The full-scale implementation and operation of the reclaimed water reuse project have yielded good economic and social benefits.

VI. Environmental Protection and Sustainable Development

The company continued to focus on the environmental protection policy of "green dyeing and printing, energy conservation, and sustainable development." Relying on technological transformation, it further promoted energy-saving and consumption-reducing processes and increased investment in and efficient operation of environmental protection equipment, effectively reducing production costs and emissions of "three wastes." The company strictly implemented all discharge requirements, installed online monitoring and control equipment for wastewater, and connected it with environmental protection departments for real-time monitoring. The company also publicly disclosed the monitoring results through the corporate publicity screen, accepting public supervision.

VII. Public Relations and Social Welfare

The company actively expanded domestic and international markets, vigorously developed a circular economy, strengthened comprehensive resource utilization, and enhanced ecological environment construction and protection. It continuously improved the competitiveness and sustainable development of the textile industry. The company played a demonstrative role in the local dyeing and printing industry agglomeration and upgrading project and made positive contributions to the transformation and upgrading of traditional textile advantageous industries. Together with all sectors of society, it created a harmonious society.

In 2023, although the company made certain achievements in safeguarding shareholders' rights and interests, protecting employees' interests, protecting customer rights and interests, focusing on environmental protection, and implementing energy conservation and emission reduction, it also clearly recognized that there were still gaps between the company's performance in fulfilling social responsibilities and the expectations of shareholders, customers, and other stakeholders. The company needs to continue to consciously adhere to the concept and obligation of fulfilling social responsibilities in the long term and constantly strengthen and innovate the ways of fulfilling social responsibilities in the production and operation process to better fulfill its social responsibilities.

In 2024, the company will continue to focus on the goal of being "green, high-end, and world-leading," comprehensively implement the Scientific Outlook on Development, and fully fulfill its corporate social responsibilities. It will strive to promote coordinated and harmonious development between the company and the whole society.

Shaoxing Jinyang Textile Co., Ltd.

April 22, 2024