Corporate Social Responsibility Report

(2024 Annual)

Jiangsu Zhongyu Rubber & Plastic Technology Co., Ltd.

 

I. Preface

Jiangsu Zhongyu Elastomer & Plastics Technology Co., Ltd., as a company with a strong sense of social responsibility, continuously grows and thrives while always remaining mindful of the societal obligations it must fulfill. The company remains committed to fostering a win-win approach that benefits society, its employees, suppliers, and customers alike, thereby promoting coordinated, harmonious, and sustainable development between the enterprise and the community.

Outstanding enterprises rely on the support of exceptional talent. Jiangsu Zhongyu Elastomer & Plastics Technology Co., Ltd. has always prioritized talent development and respect for individuals, striving to create a harmonious yet dynamic environment that fosters growth and innovation. We actively embrace a talent philosophy centered on "people first, valuing talent above all else," providing diverse professionals with platforms where they can fully showcase their abilities. At the same time, we share the fruits of our company’s success with our employees, fostering a mutually beneficial cycle of talent and organizational growth. Moreover, we enthusiastically promote the philosophy of "working happily, living joyfully," encouraging a positive, upbeat mindset even as our company continues to thrive. By cultivating a workplace culture that is both healthy and harmonious, we not only enhance employee well-being but also contribute meaningfully to societal harmony. Through various charitable initiatives and active participation in public service, we reinforce our commitment to environmental stewardship, social responsibility, and national duty. Always guided by gratitude, we remain dedicated to supporting philanthropic causes, relentlessly building a truly socially responsible and fulfilling enterprise.

II. Company Profile

Jiangsu Zhongyu Rubber & Plastic Technology Co., Ltd., established in January 2019, has a total investment of 50 million yuan and occupies a site area of 10,000 square meters. The company employs over 150 people and is a manufacturing enterprise integrating the production and sales of high-end rubber seals and rubber-plastic products for new-energy vehicles (with a production capacity that has already been achieved). Relying on China's leading rubber R&D capabilities, the company has also formed a strategic partnership with Shenzhen Feirongda Group, establishing a dedicated technical team focused on rubber material innovation. Additionally, it has introduced advanced equipment such as vacuum vulcanization systems, freeze-trimming machines, CCD inspection devices, and highly precise laboratory testing equipment, ensuring a comprehensive and robust production chain for rubber products.

The company has achieved certifications under the quality management systems ISO 9001:2008, the automotive quality management system IATF16949:2016, the environmental management system ISO 14001, and the occupational health and safety management system ISO 45001. Guided by the quality philosophy of "Customer First, Quality Supreme, Pursuit of Excellence, and Sustainable Development!", we remain committed to our business principles of "Service, Integrity, and Quality." By employing scientific management practices and treating product quality as the lifeblood of our enterprise, we ensure meticulous design, expert craftsmanship, precise manufacturing, and comprehensive customer service—qualities that have earned Zhongyu Rubber & Plastics the trust and recognition of our clients, along with a strong reputation in society.

The achievements we've made through the company's continuous growth have firmly convinced us that effectively fulfilling customer order demands is our sole business objective. Building exceptional customer loyalty has become Zhongyu Rubber & Plastics' unwavering belief. We are committed to enhancing quality, ensuring timely delivery, responding swiftly, and maximizing satisfaction of customer needs—all while laying a solid foundation for long-term development, serving our clients, empowering them, and ultimately creating maximum value for our customers. Guided by these principles, we have introduced cutting-edge management practices, prioritized employee skills training, established a sustainable talent pipeline, integrated corporate resources, and reengineered key processes. Above all, we place customer satisfaction as the top priority in our performance evaluation system.

III. Product Services

The company's main products are primarily specialty rubber seals, including fluorocarbon O-rings, star-shaped rings, conductive silicone, and back-adhesive foam silicone, among others.

Zhongyu Rubber & Plastics, backed by robust rubber formulation technology, precision processing equipment, and advanced mold-development capabilities, as well as the IATF16949 management system, ensures the efficiency and quality of its products. Committed to long-term growth, Zhongyu Rubber & Plastics aims to become a leading enterprise in the industry, supplying sealing rings for lithium battery covers used in new-energy vehicles—and ultimately bringing its innovative products to markets worldwide.

1. Corporate involvement in national industry standards and intellectual property

As intellectual property plays an increasingly significant role in economic development and international trade, countries around the world have placed great emphasis on intellectual property efforts. Intellectual property has become a core element of market competitiveness. Enterprises are not only the main players in independent innovation but also the key entities responsible for creating, utilizing, managing, and protecting intellectual property. Therefore, enhancing the level of intellectual property management within enterprises is crucial to strengthening their capacity for independent innovation.

Intellectual Property Policy:

Protect intellectual property rights and encourage innovation and creation; inspire independent innovation and enhance market competitiveness.

Intellectual Property Goals:

1. Long-term Intellectual Property Goals

– Strengthen intellectual property protection, raise IP awareness, and proactively manage IP-related risks. – Establish quantifiable targets that can be broken down by department, encompassing both quantitative and qualitative indicators. – Intensify efforts to file patent applications for inventions. Fully leverage IP information to enhance corporate technological innovation.

New, creative capabilities.

2. Intellectual Property: 3-5 Year Goals

——Growth exceeds 10%, and the patent authorization rate is above 95%.

— Submitted 3 patent applications this year and added 1 more software copyright.

—– Enhance the protection of intellectual property rights, raise awareness among enterprise employees regarding IP protection, and foster a company-wide culture where everyone actively participates in safeguarding intellectual property.

V. Responsibilities to Supply Chain Partners

1. Safeguard the legitimate rights and interests of enterprise owners, and treat all owners equally.

2. Fulfill creditors' commitments and arrange corresponding measures to safeguard their interests.

3. Procurement Responsibility System and Guidelines. The procurement manager is responsible for the quality of both suppliers and purchased products. They must promptly prepare procurement plans based on production needs, submit these plans for company review and approval, and then proceed to arrange incoming inspections of the products as outlined in the procurement contract. Only materials that pass inspection are permitted to enter the facility. For any materials that fail acceptance testing, the procurement manager must firmly request a return or replacement of the defective products.

4. Safeguard the legitimate rights and interests of suppliers, subcontractors, and customer distributors. The company strictly adheres to procurement contracts when making payments to suppliers, legally protecting their rights and ensuring smooth cooperation. As a result, we enjoy a positive working relationship with our suppliers and have earned their trust.

6. Uphold Integrity Responsibilities

1. Lawfulness and Integrity

1.1 Comply with laws, regulations, social ethics, business ethics, and industry rules. The company firmly adheres to lawful operations and upholds integrity and trustworthiness. In its business activities, it sets an exemplary standard by strictly following legal and regulatory requirements, as well as social and industry norms. It promptly and fully pays taxes, faithfully fulfills contractual obligations, honors commercial credit, and actively opposes unfair competition. Moreover, the company diligently ensures product quality and continuously enhances its technical service capabilities, striving to deliver high-quality, safe, scientific, and reliable products and services that earn the trust and recognition of our customers. At the same time, we prioritize production safety, working hard to provide employees with a secure, healthy, and hygienic workplace and living environment, safeguarding their occupational health. Ultimately, we remain committed to complying with all applicable laws, regulations, social ethics, business ethics, and industry rules, ensuring there are no significant negative incidents related to legal violations or non-compliance.

1.2 Oppose unfair competition and eliminate corrupt practices in business activities. Externally, the company wins customer satisfaction through first-class product and technical services; internally, it actively promotes Party conduct and integrity-building initiatives to stamp out corruption in commercial dealings.

2. Integrity in Business Operations and Service: Establish a philosophy of honest business practices and implement systems that uphold this integrity. The company enhances employees' ethical awareness of integrity, emphasizing its critical role in ensuring the survival of the enterprise as well as its positive impact on fostering personal charisma among staff. At the same time, we enforce legal compliance by holding employees accountable—after all, businesses lacking integrity cannot possibly adhere to laws and regulations. Additionally, we promote corporate honesty through regulatory measures, such as tracking contract performance and conducting customer follow-ups.

7. Establish a Trade Union

Jiangsu Zhongyu Elastomer & Plastics Technology Co., Ltd. has established various employee welfare programs and feedback channels through its trade union, which are crucial for fostering stable and harmonious labor relations, safeguarding the legitimate rights and interests of employees, and simultaneously promoting the company's corporate culture. Moreover, the company’s employee activities not only inspire a sense of identity and belonging among staff toward the Jiangsu Zhongyu Elastomer & Plastics Technology family but also significantly strengthen the company’s cohesion and unity, driving continuous efforts to build a distinctive "Employee Home" culture.

8. Assume responsibility for environmental protection, occupational health, and safety

1. Environmental Management Aspects

1.1 Heavily invest in wastewater, exhaust gas, and dust treatment facilities, strictly comply with laws, regulations, and policy standards related to energy conservation and ecological environmental protection, promptly study and implement new regulations and documents, and, based on the company’s management requirements and the current status of environmental protection efforts, revise and improve environmental protection rules and systems. Firmly fulfill the primary responsibility for ecological and environmental protection, adopt a problem-oriented approach, strengthen supervision and inspection of ecological and environmental protection measures, resolutely address prominent environmental issues, and strive to eliminate ecological and environmental risks at their root.

1.2 The company has successfully obtained ISO 14001:2015 Environmental Management System certification and received the corresponding environmental management system certificate.

1.3 Since the establishment of the factory, there have been no negative environmental violation reports.

2. Occupational Health and Safety Aspects

2. Jiangsu Zhongyu Elastomer & Plastics Technology Co., Ltd. has conducted occupational health hazard reporting after obtaining certification under the Occupational Health Management System and strictly complying with relevant laws and regulations on occupational health and safety.

2.2 The company has obtained ISO 45001:2018 certification for its occupational health and safety management system, along with the corresponding occupational health and safety management system certificate.

2.3 This year's annual safety training plan has been fully implemented, further enhancing employees' safety awareness.

2.4 Occupational health checkups were conducted for both general positions and positions with potential occupational hazard risks; no abnormalities were detected in any of the employees' examination results.

2.5 Since the establishment of the factory, there have been no negative reports of occupational health and safety violations.

2.6 All special equipment has successfully passed the annual inspection.

3. Status of investment in safety production and environmental protection funds.

3.1 Strengthen social responsibility and ensure compliance with local environmental protection regulations. In accordance with the new requirements set by local environmental authorities, we will conduct self-inspections of pollution control facilities and carry out targeted supervision and checks. Based on emission reduction mandates, the company will develop tailored measures to achieve its environmental management goals.

3.2 Focusing on achieving the dual carbon targets, the company has undertaken energy-saving and consumption-reduction initiatives from both technical and management perspectives. In 2024, in the area of new energy technologies, we boldly implemented energy-saving measures such as water and electricity conservation, yielding notably positive energy-saving results.

4. Conducting occupational health and safety management activities. To further strengthen all employees' awareness of safe production, enhance the company's overall safety management level, and boost workers' safety consciousness, self-protection capabilities, and the company's collective safety vigilance—thereby firmly preventing accidents and ensuring the company's scientific and safe development—the company organized a fire-fighting drill for personnel across all workshops and departments during Safety Production Month. The company’s safety engineers demonstrated how to use fire extinguishers, explained effective firefighting techniques, and showed employees how to properly connect and hold fire hoses and water guns. Participants then had hands-on experience, truly embodying the fire safety principle of "prevention first, combining prevention with firefighting," while also fostering a strong sense of community-based prevention and collaborative management.

VIII. Looking Ahead to 2024

1. Enhance the development of the science and technology innovation system. We will consistently focus on establishing an independent intellectual property system and strengthening enterprises' own technological innovation capabilities. By adopting approaches such as independent innovation, integrated innovation, introducing, digesting, absorbing, and re-innovating, as well as fostering industry-academia-research collaborations to tackle key challenges, we will prioritize the research and development of cutting-edge, modern technologies that lead the industry, while also advancing projects under the National Science and Technology Major Programs, thereby elevating the overall level of scientific and technological initiative development. Transform the company's resource advantages and industrial foundation strengths into tangible technological and economic benefits, ensuring that innovation efforts provide robust technical support for the company's sustained and healthy growth.

2. Care for the comprehensive and healthy development of employees. We will continue to prioritize caring for, relying on, and uniting our employees. The company will further refine its employee compensation system to significantly enhance workers' living standards. Additionally, we will actively organize employee education, training, and skills-development initiatives, fostering greater learning enthusiasm and improving employees' professional capabilities. We will also expand opportunities for democratic management within the enterprise, ensuring that employees' legitimate rights and interests are fully protected. Finally, we will strengthen efforts to provide assistance and relief, offering tangible support to vulnerable groups in need.

3. Enhance energy conservation and consumption reduction while strengthening environmental governance. Vigorously promote advanced, energy-efficient, and high-performance technologies, equipment, and processes; refine energy-saving organizational management; and actively strive to build resource-efficient and environmentally friendly enterprises.

4. Always adhere to the environmental, occupational health, and safety policy: energy conservation and environmental protection, coupled with health and safety. Uphold rules and regulations, prioritizing prevention. Encourage full staff participation and continuous improvement.

5. Care for employees' physical health by providing medical check-ups for all staff, and conducting occupational health examinations specifically for employees working in positions with potential risks of occupational diseases.

6. Give back to society for a win-win outcome between the enterprise and the community. Continuously drive corporate growth to create more employment opportunities for society; strengthen support for social welfare initiatives and encourage acts of mutual care and assistance; pay close attention to the local community’s development in areas such as culture, education, healthcare, and safety, while also showing concern for vulnerable groups in the region, thereby genuinely fostering social harmony.

 

Jiangsu Zhongyu Rubber & Plastic Technology Co., Ltd.

March 7, 2024