Chapter 1 Overview

1. Company Profile

Fujian Shunyuan Textile Co., Ltd. was founded in April 2011, located in the Chengxi Garden of Youxi Economic Development Zone, Sanming City, covering an area of 281 acres, with a construction area of over 200,000 square meters. Fujian Shunyuan Textile Co., Ltd. is a provincial-level leading enterprise and high-growth enterprise in Fujian Province, integrating the production, processing, and sales of high-performance, multifunctional yarns. The total design scale is 400,000 spindles, with 380,000 spindles currently in production. The company is equipped with first-class domestic and foreign spinning equipment, has passed ISO9001:2015 quality management system certification, ISO45001:2018 occupational health and safety management system, ISO14001:2015 environmental management system, and ISO50001:2018 energy management system. All product quality indicators reach the Uster 5% level. The company mainly produces: pure cotton, cotton and viscose blended yarn, cotton and polyester blended yarn, rayon yarn, pure silk yarn, slub yarn, core-spun yarn, doubled yarn, blended yarn (polyester-viscose), etc.

The company's equipment configuration has high technological content, using the most advanced domestic and foreign spinning equipment, characterized by high speed, high performance, high quality, and energy saving. The spinning process is advanced: cleaning and carding combined unit → high-speed drawing machine → computer-controlled coarse yarn machine → high-efficiency fine yarn machine → imported automatic winding machine, which has a complete range of high-performance and high-tech textile capabilities including ring spinning, compact spinning, and color spinning.

The company currently has more than 1,000 employees, recruiting a group of skilled and strong R&D product development backbones nationwide, and has formed an experienced and proactive management team, with 6 senior engineers and a total of 159 people in the enterprise technology center, including 85 textile professionals with college degrees or above. Shunyuan Company adheres to a people-oriented cultural view, establishes and improves various scientific management systems, and has established an assessment mechanism based on performance evaluation, full piecework, and comprehensive evaluation of individual work performance; an incentive selection mechanism based on work attitude, work performance, and management ability; a competitive mechanism based on workshops and teams, comprehensively evaluating production, quality, consumption, and safety; and a work-life model led by the trade union organization, promoting happy work and a happy life for employees, achieving efficient management and stable personnel.

2 Corporate Culture

The company establishes a culture of "people-oriented, building a harmonious enterprise", adheres to the product quality view of "today's quality, tomorrow's market", follows the service view of "customer needs, company responsibility", unites and collaborates, keeps pace with the times, and strives to build the company into an excellent textile enterprise, creating value for society and achieving win-win cooperation with customers.

2.1 Corporate Vision

To become a global leading cotton textile enterprise, creating a wonderful life!

2.2 Corporate Mission

Committed to developing high value-added products, creating maximum value for employees, customers, and shareholders, and sincerely giving back to and serving society!

2.3 Corporate Spirit

Dedication, teamwork, innovation!

2.4 Development Strategy

Specialization, internationalization, lean management, differentiation!

2.5 Action Program

(1) Honest cooperation: We adhere to a cooperative relationship based on trust and responsibility.

(2) Innovative excellence: We pursue innovations that are valuable to the company and customers, striving for perfection in everything.

(3) Customer-oriented: We insist on rapid response to meet customer needs.

2.6 Code of Conduct

(1) Continuous learning, eliminating inaction, and implementing actions.

(2) Personal interests subordinate to overall interests, personal honor subordinate to collective honor.

(3) Proactive collaboration, mutual assistance and love, and growing together.

(4) Stay close to the market, explore customer needs, respond quickly, and never delay.

(5) Ensure product quality and high added value, and allow customers to use them at the first opportunity.

(6) Capture innovative breakthroughs in every work detail and continuously improve.

(7) True work is to think about problems, raise questions, and solve problems.

(8) Work should be complete and thorough, without excuses, no shirking, and be brave to correct mistakes.

(9) Save every drop of water, every kilowatt of electricity, every liter of oil, and every grain of food.

2.7 Core Concepts

(1) Provide high-quality products and services.

(2) Complete various work tasks correctly and effectively.

(3) Continuously achieve the company's development goals.

(4) Sincerely give back to and serve society.

Chapter 2 Social Responsibility Strategy

2.1 Social Responsibility Strategy

In the 10 years since Fujian Shunyuan Textile Co., Ltd. was established, while contributing to the revitalization of China's traditional textile industry, it has actively fulfilled its corporate social responsibility, always adhering to the concept of green, environmentally friendly, and sustainable development, committed to creating healthy and environmentally friendly textiles for the world, and promoting sustainable economic, social, and ecological development.

To strengthen corporate social responsibility management, Shunyuan Textile combines the new economic development situation and social development trends, and based on previous corporate social responsibility practices and achievements, has formulated the company's corporate social responsibility and sustainable development strategy. This strategy considers environmental protection, sustainable development, and social care as important areas of corporate social responsibility and sustainable development.

2.2 Social Responsibility System Construction

To ensure the effective implementation of the corporate social responsibility strategy, the company establishes and improves the relevant systems for social responsibility in accordance with laws, regulations, and relevant international standards. This ensures that the company's operations can bring positive impacts to the ecological environment, society, and other stakeholders, promoting the sustainable development of enterprises, society, and the environment.

Chapter 3 Actively Promote the Long-term Mechanism for Safety Production

Safety work is the lifeline of enterprise development and the guarantee for the healthy, stable, and sustainable development of the enterprise. In 2021, the company actively promoted the construction of a long-term mechanism for safety production, establishing a rigorous and scientific safety production responsibility system and supervision system, continuously improving safety production rules and regulations, promoting the standardization and normalization of safety production management, and comprehensively improving the level of safety production management, with the safety production situation continuing to stabilize and improve.

3.1 Safety Production Management System Construction

The company always adheres to the principle of "safety first, prevention foremost, and comprehensive governance," implements safety production standardization, and continuously promotes the construction of safety production management systems. In 2021, the company revised and improved the "Safety Production Management Regulations," "Fire Safety Management Regulations," "Occupational Health Management Regulations," and other safety production rules and regulations, clarifying the safety responsibilities of personnel at all levels from the general manager to grassroots employees. The company improved its safety and fire management network, strengthened safety production culture construction through training and education, and enhanced personnel's awareness of safety production, legal knowledge, and work quality.

3.2 Safety Risk and Hazard Management

The company actively responds to government calls, continuously improves the dual prevention system of safety production risk classification control and hazard investigation and management, and insists on risk prevention and proactive measures. The company bases its approach on risk identification, focuses on risk classification control, uses hazard investigation as a means, and utilizes information technology as a platform to build a dual prevention mechanism for safety production risk control and investigation, standardizing and targeting enterprise safety management.

The company comprehensively identifies environmental factors and sources of danger, implements effective control, and establishes a safety production risk information database, gathering necessary information related to enterprise safety production. The company uses qualitative and quantitative statistical analysis methods to determine the severity of risks, thereby establishing the priority order and control measures for risk management. Through daily safety management by departments and supervision by safety management departments at all levels, effective control is carried out to improve the safety production environment and reduce and eliminate safety production accidents.

Chapter 4 Protection of Stakeholder Rights

Fulfilling social responsibility is an important value orientation for economic and social development. Emphasizing and implementing corporate social responsibility work has gradually become an inevitable trend in contemporary enterprise development and an effective way to enhance corporate competitiveness and build a good corporate image. In 2021, facing new market areas, the company, while striving for sustainable development and creating value for shareholders, actively safeguards the legitimate rights and interests of all stakeholders, ensures the health and safety of workers, and treats suppliers and customers with integrity.

4.1 Public Relations Management

The company actively accepts and cooperates with the supervision and inspection of government departments and regulatory agencies, strengthens contact with government agencies, establishes good communication relationships, takes their feedback seriously, adjusts communication mechanisms and methods in a timely manner based on actual situations, and continuously improves the company's management system.

4.2 Customer Relationship Management

The company is committed to establishing a "long-term, stable, and win-win" industrial chain and cooperative relationship with suppliers and customers with a high sense of responsibility. By continuously improving organizational structure, institutional management, financial supervision, process control, and comprehensive auditing of budgets, the company provides high-quality products and services to customers while creating greater value for society and customers, continuously enhancing its own value, and working hand in hand with suppliers and customers to supervise each other, promote together, and continuously improve, driving overall benefits and enhancement of the industrial chain, creating greater social value.

The company adheres to the principle of integrity and reputation as the foundation of its business, continuously gathers user feedback, strives to improve product quality, and seeks to achieve win-win cooperation. In its business practices, the company has formed a set of low-risk and highly operable business models, and has established practical risk control processes within its management system, creating a standardized and efficient operational mechanism to create value for customers while ensuring the safety of customer funds.

4.3 Employee Relationship Management

The company regards employees as the most valuable resource for its survival and development, always adhering to the management philosophy of "people-oriented." Through various means and channels, it enhances employees' comprehensive social survival capabilities, continuously improves their working environment and conditions, stimulates the work enthusiasm and creativity of every employee, creates and provides a broad development platform and opportunities for employees to showcase their talents, and effectively safeguards employees' legitimate rights and interests.

Creating employment opportunities for society is an important aspect of demonstrating the company's fulfillment of social responsibility. The company adheres to the principles of fairness and justice in employment, recruits employees based on job requirements, and does not discriminate against job seekers or employees based on age, gender, marital status, race, nationality, or other differences, while prohibiting child labor. The company believes that the essence of fulfilling social responsibility is to build a well-rounded employee team, thereby forming a virtuous cycle mechanism. To this end, the company has taken a series of measures to promote the comprehensive development of employees:

① Employee Benefit Protection

Employees are the company's most valuable resource and wealth. The company advocates respect and protection of employees' legitimate rights and interests, cherishing their lives, health, and safety; respecting labor, knowledge, and value creation. The company strictly complies with the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, the Implementation Regulations of the Labor Contract Law of the People's Republic of China, the Social Insurance Law of the People's Republic of China, and other relevant laws and regulations, legally safeguarding employees' legitimate rights and interests. It continues to establish and improve employment systems, including salary systems and incentive mechanisms; revises and improves relevant management systems for labor employment and welfare protection; signs labor contracts with employees, achieving a full labor contract system, establishing a standardized new type of labor relationship, clarifying the rights and obligations of employees; strictly implements national regulations on social insurance, pays housing provident fund, and handles pension insurance, medical insurance, unemployment insurance, work injury insurance, maternity insurance, and other social insurances, ensuring timely and full payment of various insurance fees each month, and promptly handling labor contracts and social insurance for newly hired and departing personnel according to labor department regulations, ensuring employees enjoy social insurance benefits, enabling them to receive timely assistance and compensation in cases of retirement, illness, work injury, unemployment, and maternity, and providing paid annual leave and other benefits, allowing employees to work in a fair and just environment and seek development.

② Employee Welfare

The company strictly follows the requirements of the Labor Law, Labor Contract Law, and relevant laws and regulations, signing labor contracts with all employees and implementing a system of distribution according to labor and equal pay for equal work, fully paying all statutory social insurance and welfare for all on-duty employees who have established labor relations with the company. In addition, the company fully guarantees employees' freedom of belief and the legitimate rights and interests of female employees according to national laws. The company pays great attention to employees' health, organizing regular health check-ups for employees every year.

③ Employee Education and Training

The company has long implemented the "Talent Strengthening Enterprise" strategy, vigorously promoting the cultivation of innovative talents, establishing and improving the talent training system, building innovative platforms, solidifying the foundation for talent training, promoting the construction of information technology platforms, forming a model of diversified talent cultivation and industrial promotion relying on internet platforms and professional training institutions, and enhancing the construction of a layered and categorized talent training system. It has established and improved a mechanism for selecting and employing people that is open, equal, competitive, and merit-based, encouraging employees to firmly establish the concept of continuous learning and lifelong learning, stimulating their enthusiasm, enhancing their quality, and promoting their growth.

Chapter 5: Actively Participate in Social Welfare

The development of enterprises originates from society, and returning to society is the responsibility of enterprises. The company has always attached great importance to the embodiment of corporate social value, driving local economic revitalization through its own development.

5.1 Tax Contribution

For many years, the company has operated in compliance with the law and paid taxes honestly, actively contributing to the national fiscal revenue and effectively promoting the development of the region where the company is located. Honest operation and lawful tax payment are principles that the company has consistently upheld.

5.2 Poverty Alleviation and Delivering Positive Social Energy

To allow the public to enjoy the fruits of economic and social development, the company actively responds to the national call for poverty alleviation and implements targeted poverty alleviation. The company adheres to the traditional virtues of respecting the elderly and caring for the young, practices public welfare and charity, pays attention to vulnerable groups, and actively undertakes the creation of a harmonious social atmosphere.

5.3 Open Development, Promoting Regional Economy

The company steadily promotes enterprise development, drives the development of surrounding areas, and promotes the sustainable development of the company and the harmonious progress of local communities. The company currently employs over 1,000 people and adheres to the value of 'people-oriented' in its development, creating a good working and learning environment for employees from multiple perspectives, building a platform for career development, and contributing to improving the living conditions of local residents and enhancing their quality of life.

Chapter 6: Environmental Protection and Sustainable Development

The company has always adhered to the sustainable development path of 'green, low-carbon, and environmentally friendly', actively conducting research and promotion of advanced technologies and equipment, implementing low-carbon energy-saving projects, and promoting the unity of economic, social, and environmental benefits.

In 2021, the company continued to innovate management, emphasizing the strengthening of top-level design and overall coordination in the construction of the energy management system, continuously improving the systematization, standardization, and execution capability of the energy management system, deepening the reform of rules and regulations, and continuously standardizing management requirements.

6.1 Establishing an Environmental Management System

The company established an energy management center, using automation and information technology to scientifically manage energy, focusing on the energy management policy of 'energy saving, consumption reduction, emission reduction, and efficiency increase', and continuously carrying out 'double increase and double saving' activities.

6.2 Adopting International Advanced Technology to Achieve Energy Saving and Emission Reduction

Keeping pace with the development of low-carbon and environmentally friendly technologies in the industry, the company adopts new technologies, new processes, new equipment, and new energy to implement low-carbon energy-saving projects throughout the production and operation process.

The company systematically reduces resource consumption from the source, reduces waste generation, and achieves comprehensive utilization of various resources; continuously promotes clean production, improves production processes, optimizes production techniques, researches new environmentally friendly energy-saving process technologies, reduces material and energy consumption, and minimizes waste generation.

6.3 Formulating Annual Energy Use Plans and Setting Annual Energy Saving Targets

The company formulates specific measures for energy saving and emission reduction, incorporating energy saving targets into the performance evaluation of management personnel in various departments. It establishes a training mechanism for energy management personnel, formulates annual training plans, and fully utilizes the role of energy managers. The company actively organizes energy efficiency benchmarking activities and utilizes various channels to conduct energy-saving publicity during the national 'Energy Saving Publicity Week', creating a good atmosphere for full participation in energy saving and consumption reduction.

6.4 Emphasizing Environmental Management and Fulfilling Social Responsibility

In terms of environmental governance, the company increases technical investment, utilizing cotton dust and cotton by-products as low-grade yarn raw materials and for comprehensive agricultural utilization, effectively achieving 100% comprehensive disposal and utilization of various wastes.

To improve the air environment around the enterprise, the company continues to plant green belts and green squares around the factory area, transforming the factory into a garden-style factory, purifying the surrounding air quality, and simultaneously enhancing the environmental quality of the production workshop by introducing advanced domestic and foreign efficient dust removal facilities and installing air microcirculation devices in the production workshop, significantly improving both the production environment and the surrounding environment.

6.5 Identifying Hidden Concerns and Preemptively Controlling

The company understands and predicts public concerns regarding the environmental protection, safety, and hygiene of textile products through visits and research. The company utilizes the internet and public newspapers to timely disclose the compliance status of environmental protection and hygiene technologies, allowing public supervision of various data and enhancing management transparency within the factory.

Chapter 7: Outlook on Social Responsibility Development

Currently, the world economy is undergoing deep adjustments, with increasing pressure on resources and the environment, and the international trade pattern becoming increasingly complex. Economic globalization has enabled the rapid flow of industries, capital, talent, and information globally, significantly reducing the costs of international trade and investment, and accelerating and evolving alongside major breakthroughs in technological innovation. At the same time, the textile industry is becoming increasingly interconnected with the world economy, with deepening interdependence. In the face of this new situation, in 2021, the company will uphold a strong sense of social responsibility, create value for society, strictly fulfill and further strengthen the protection of the rights and interests of shareholders, customers, partners, and employees. Focusing on the development direction of traditional industries towards high-end, chain-based, intelligent, and green development, the company will promote quality transformation, efficiency transformation, and power transformation, continuously improving development quality and efficiency, striving to enhance product quality and influence, working to build a new intelligent manufacturing model and a green manufacturing industrial ecosystem, continuously enhancing sustainable development capabilities, and actively contributing to the historical tide of the new era for the development of the world textile industry.

2022Year 8Month 15Day

Fujian Shunyuan Textile Co., Ltd.