Corporate Social Responsibility Report

II. Social Responsibility in Pursuing High-quality Products and Services
The company believes that the greatest social responsibility of an enterprise is to provide customers with high-quality products and services, and this belief runs through the entire operation of the enterprise. The purpose of enterprise operation is to obtain profits, but the way to obtain profits is to create value for society. Therefore, we constantly pursue progress and innovation. Guided by the core values of "Sincerity, Cooperation, Win-win, Sharing", we create value for customers through innovative technology and improved services, which is our primary social responsibility.
The company has successively passed the ISO9001:2019 Quality Management System Certification, ISO14001:2019 Environmental Management System Certification, and OHSAS18001:2011 Occupational Health and Safety Management System Certification. In 2018, it successfully introduced the Performance Excellence Model, and at the same time, passed the acceptance of the Level 3 Enterprise in Work Safety Standardization. These management systems and standards ensure the comprehensiveness, sustainability and effectiveness of all our management actions, and guarantee product quality.
To fulfill the responsibility of ensuring the quality and safety of products and services provided by the organization and guide the organization to assume the main responsibility for quality and safety, the company attaches great importance to the construction of the quality management system. While strictly controlling product quality and meeting various standard indicators, it has established a sound quality management system.
At present, the company has formulated a series of quality control measures covering all links from product design, raw material procurement, product manufacturing, product inspection, performance testing, packaging, storage and transportation to customer service, effectively guiding and supervising the quality control work of various departments. Meanwhile, taking meeting customer requirements as the standard, the company, with special departments in charge, earnestly promotes the continuous improvement of product quality.

III. Social Responsibility in Complying with National Laws and Regulations
The company's products, services and operations mainly involve impacts on quality and safety, environmental protection, energy conservation, comprehensive utilization of resources, safe production, public health and other aspects. In strict accordance with national laws and regulations such as the Environmental Protection Law, the Air Pollution Prevention and Control Law, the Water Pollution Prevention and Control Law, and the Work Safety Law, the company has formulated systems including the Emergency Plan for Sudden Environmental Events, the Measures for the Assessment of Environmental Sanitation Management, the Employee Safety Manual, the Environmental Protection Management System, and the Safety Management System for Major Equipment Overhaul and Installation. Over the past three years, the company's wastewater, waste gas and noise have all met the emission standards stipulated by the state and local governments; all industrial solid wastes of the company have been treated and disposed of, with a 100% disposal rate of hazardous wastes; special personnel are assigned to operate and manage the company's pollution control facilities, with a stable operation rate of over 95% for environmental protection facilities; the company has legally obtained a pollutant discharge permit, and the discharged pollutants meet the national standards, with the total discharge volume within the control range. The company has passed the cleaner production audit.

Results of Public Responsibilities in the Past Three Years

Item	Environmental Factor	Legal and Regulatory Indicator Requirements	2022	2023	2024
Quality Safety	Product Quality	No casualties caused by the use of the company's products	0	0	0
Environmental Protection	Waste Gas	Dust (150mg/m³)	90mg/m³	85mg/m³	85mg/m³
		Benzene (12mg/m³)	8mg/m³	8mg/m³	8mg/m³
	Wastewater	PH (6-9)	6-9	6-9	6-9
	Solid Waste	100% treatment	100% treatment	100% treatment	100% treatment
	Noise	Night 55 dB, Daytime 65 dB	50/58 dB	50/55 dB	50/55 dB
Energy Consumption	Energy Consumption	Comprehensive energy consumption per 10,000 yuan of output value (tons of standard coal/10,000 yuan)	149	230	280

The company pays close attention to potential public concerns about the future quality and safety, environment, energy consumption, comprehensive utilization of resources and public health caused by its products, services and operations, and actively studies countermeasures and makes advance preparations. To this end, in March 2018, the company, in conjunction with Tiantai County Limin Environmental Protection Engineering Technology Co., Ltd., formulated the Emergency Plan for Sudden Environmental Events of Zhejiang Sihai New Materials Co., Ltd., fully incorporating the above public concerns into the institutional norms. See the following table for details:

Foreseeability and Response to Public and Environmental Concerns

Public Concern	Causes	Response Measures
Environmental Pollution	Noise caused by abnormal operation of equipment; wastewater and waste gas generated during employees' daily life and production processes	1. Introduce cleaner production, starting with analyzing the technological process and material balance, identify the parts where waste is generated, analyze the causes, improve processes and equipment, reduce the generation of solid waste and mitigate the impact on the environment, meeting all environmental monitoring indicators; 2. Distribute labor protection supplies in a timely and sufficient manner, and carry out technological transformation and process improvement on key parts; 3. Renovate the ventilation facilities of all factories and strengthen workshop ventilation.
Energy Consumption and Comprehensive Utilization of Resources	Shortage of resources such as electricity will lead to rising energy prices and increased product costs	1. Introduce cleaner production to reduce energy consumption; 2. Utilize electricity during peak and valley periods, and promote the use of new energy-saving technologies, new materials, new equipment and new processes.
Safe Production	Safety hazards such as fires, combustion and explosion of dangerous goods, and electric shock	1. Strictly implement the Employee Safety Manual and conduct performance assessment for safety management; 2. Immediately activate the Emergency Plan for Sudden Environmental Events in case of emergencies.

6 Public Concerns, Causes and Response Measures

Public Concern	Causes	Response Measures
Product Safety	Directly related to people's lives and property safety in case of fire and electric shock; products contain harmful elements	1. Set up a special Quality Management Department to implement quality management, physical quality supervision and assessment; 2. Obtain various certification systems; 3. Ensure the effective operation and continuous improvement of the quality management system through internal audits, management reviews and third-party follow-up audits.
Public Health	Potential occupational diseases, domestic waste, pollution from solid waste, etc.	1. The company stipulates annual physical examinations for employees; 2. The company stipulates centralized collection and transportation of garbage to the garbage transfer station, which is uniformly handled by the garbage treatment plant; 3. Sewage is incorporated into the sewage pipe network and pre-treated at the company's treatment station before being incorporated into the urban sewage treatment plant; 4. Hazardous solid waste is collected uniformly and handled by the solid waste treatment center.

The company identifies risks in quality and safety, environmental protection, energy conservation, comprehensive utilization of resources, safe production, product safety, public health and other aspects in its products, services and operations, establishes objectives and measurement methods, and takes strong measures in key processes.

Public Responsibility Control Measures and Indicators

Control Item	Influencing Factors	Company Requirements	Legal and Regulatory Requirements	Measurement Methods and Processes
Environmental Protection (Pollution)	Waste gas, noise, wastewater, dust, etc.	Comply with the ISO14001 management system, the Environmental Management System Certification, the Environmental Protection Law, etc. (Wastewater: e.g., pH: 6-9; CODcr ≤ 100 mg/L; suspended solids ≤ 70 mg/L; ammonia nitrogen ≤ 15 mg/L. Waste gas emission concentration: xylene ≤ 1.2 mg/m³; Noise: Category 3 ≤ 85 dB)	Comply with relevant national laws and regulations on environmental protection	Entrusted external testing
Energy Consumption	Comprehensive electricity, water, steam, oil, etc.	Implement the energy conservation and consumption reduction target responsibility for energy-using enterprises in Tiantai County; comply with the ISO14001 management system, the Environmental Management System Certification, the Environmental Protection Law, etc. Implement the energy consumption per unit product formulated by the company as the assessment indicator, and assign it to managers at all levels for assessment	Comply with the Energy Conservation Law, etc.	Internal monitoring, outsourced monitoring
Comprehensive Utilization of Energy	Energy crisis caused by shortage of electricity, water resources, etc.	Implement energy conservation in accordance with the Metrology Law of the People's Republic of China and the Detailed Rules for the Implementation of the Metrology Law, etc. Implement energy conservation in accordance with the energy-saving rules and regulations, energy-saving management norms and energy-saving plans formulated by the company	Comply with relevant national laws on energy conservation	Internal monitoring, outsourced monitoring
Safe Production	Personal accidents caused by fires, etc.	Implement in accordance with the Work Safety Management System and the Emergency Plan for Sudden Events formulated by the company	Comply with the Labor Contract Law, the Work Safety Law, the Occupational Disease Prevention and Control Law, etc.	Regular monitoring
Product Safety	Fires caused by products, etc.	Comply with the Quality Management System Certification, the Product Quality Law, the Regulations on the Quality Liability of Industrial Products, the Regulations on the Administration of Product Quality Certification, etc.	Comply with the Product Quality Law, GB/T14001 and other quality/environmental management systems, the Work Safety Law, etc.	Regular monitoring
Public Health	Canteen garbage, domestic sewage, domestic waste, hazardous solid waste, etc.	The company stipulates centralized collection and transportation of garbage to the garbage transfer station, which is uniformly handled by the garbage treatment plant; sewage is incorporated into the sewage pipe network and pre-treated at the company's treatment station before being incorporated into the urban sewage treatment plant; hazardous solid waste is collected uniformly and handled by the municipal solid waste treatment center	Comply with the ISO14001 management system, the Environmental Management System Certification, the Environmental Protection Law, etc.	Internal monitoring, outsourced monitoring

With "Sincerity, Cooperation, Win-win, Sharing" as its core values, the company adheres to and advocates integrity in the development process, emphasizing honest operation, honest quality, honest tax payment, and honest compliance with laws and regulations, earnestly fulfilling laws, regulations and ethical norms. The company is honest to customers, customer-oriented, and focuses on product sales and after-sales service, winning the trust, support and recognition of customers. It is honest to employees, caring for employees in work and life, and improving employee satisfaction. The company's contract performance rate is 100%, ensuring the establishment of a healthy and standardized cooperative relationship with partners and building a creditworthy enterprise.
Through honest operation, the company was recognized as a "Taizhou Famous Brand" by the Taizhou Famous Brand Product Recognition Committee in 2012, and won the "Zhejiang Famous Brand Product" issued by the Provincial Bureau of Quality and Technical Supervision in 2016. In December 2018, it was awarded the honor of Provincial High-tech Enterprise Research and Development Center, winning wide praise from customers, suppliers, government, industry and commerce, taxation, banks and other departments. In 2021, it was rated as a "Top 100 Private Industrial Enterprises" by the CPC Tiantai County Committee, enjoying a high reputation in the industry.
To ensure that internal operations comply with ethical requirements, the company has formulated ethical behavior measurement indicators and methods, as shown in the following table:

8 Corporate Ethical Behavior Monitoring System

Behavior Type	Supervision Object	Supervision Department	Measurement Methods and Processes	Measurement Indicators
Internal Enterprise	Senior Leaders	Board of Directors	The Board of Directors audits the company's sales, finance, compliance with laws and regulations, and authenticity of information, taking the Company Law as the criterion to ensure legal production and operation, etc.	Vertical evaluation of corporate profits, safety, leadership ability, etc.
	Middle-level Cadres and Functional Departments	Higher-level Departments, Trade Union	1. Internal audit; 2. Complaints and reports through suggestion boxes; 3. Training for middle-level cadres; 4. Records of violations of laws and disciplines.	Performance appraisal scores
	Employees	Administrative and Human Resources Department	1. Scientific selection of leaders and employees; 2. Active organization of regular training for employees; 3. Strengthen moral training to improve employees' quality; 4. Formulate the Code of Ethical Conduct for Employees and carry out advanced evaluation activities; 5. Formulate the Employee Handbook and the Articles of Association, and conduct rotation training and learning, pre-job training, etc.	Implementation of the staff representative congress system, employee satisfaction surveys, employee training hours, etc.
Inter-enterprise	Suppliers and Distributors	Marketing Department, Procurement Department	1. Conduct business with suppliers and distributors in strict accordance with the company's rules and regulations such as the Marketing Management and the Procurement Management System; 2. Ensure moderate prices, on-time delivery, stable product quality and timely delivery; 3. Strengthen product quality control, improve high-quality products, and respond to customer complaints in a timely manner; 4. Implement an open, fair and impartial "bidding procurement" system in procurement.	Contract breach rate, claim amount, customer satisfaction, etc.
External Enterprise	Shareholders	Finance Department	Ensure the timeliness and transparency of information disclosure in accordance with the requirements of listed companies, and accept the supervision of shareholders and the public	Timeliness and accuracy of disclosure of major information
	Government		1. Pay taxes in accordance with the law and maintain integrity and self-discipline; 2. Operate in strict accordance with national tax laws, accounting laws and other laws and regulations.	Tax payment amount, etc.
	Banks		Audit by internal and external accounting firms.	Accuracy of account books
	Public		1. Operate with integrity and protect public interests; 2. Carry out cleaner production and protect the environment, etc.	Donation amount, etc.

In terms of quality and safety, in line with the quality policy of "Forge Ahead through Innovation, Establish the Enterprise with Quality, Satisfy Customers, and Uphold Integrity in Sihai", the company actively fulfills its quality and safety responsibilities, strictly implements industry standards and laws and regulations, regularly passes the international certification review of the ISO9001 Quality Management System, and establishes and improves the company's quality management system and quality assurance system to align Sihai's quality management and quality assurance system with international standards. The company has always believed that superior performance and reliable product quality are the keys to product competitiveness. Quality is formed throughout the entire product life cycle, including research and design, trial production, testing, manufacturing, distribution, service and use. Therefore, it is necessary to keep various factors affecting product quality under control throughout the product life cycle, and implement full-process and full-staff total quality management, enabling the company to continuously provide products that meet quality standards and customer satisfaction, establish a corporate image of superior quality, and serve customers wholeheartedly.
In terms of environmental protection, since the launch of the green enterprise initiative, Sihai Company has greatly improved the environment inside and outside the factory area and workshops. In recent years, the company has invested a large amount of funds in improving the workshop operating environment, such as investing more than 300,000 yuan to add 15 exhaust equipment in each workshop; it spends more than 50,000 yuan every year to purchase seedlings and flowers, carry out large-scale renovation of the company's green areas, increase the variety of flowers and trees, build off-season landscapes, and strive to achieve the goal of "flowers in three seasons and evergreen all year round", with the factory greening rate reaching more than 30%. At the same time, it adheres to promoting cleaner production, deepens energy conservation and consumption reduction, takes a new development path of high efficiency, low investment, low consumption and low emission, realizes a win-win situation for the enterprise and society, and promotes the sustainable development of the economy, society and environment. In recent years, it has invested nearly 1 million yuan in the renovation of the company's waste gas treatment equipment and the construction of a centralized wastewater treatment station to ensure that the company's wastewater and waste gas meet the discharge standards.
In terms of energy conservation and comprehensive utilization of resources, as a responsible enterprise, the company takes it as an important task to be responsible to society and reduce enterprise costs. Sihai has always adhered to the principle of "energy conservation, consumption reduction, pollution reduction and efficiency improvement" to do a good job in environmental protection. The company has set up a "Leading Group for Energy Conservation and Consumption Reduction Work" to strongly promote energy conservation and consumption reduction, carry out technological transformation of backward production equipment and technological processes, eliminate equipment with high pollution, high energy consumption and high material consumption, and introduce and use high-tech products that are environmentally friendly and low-consumption.
In terms of safe production, the company has always followed the work policy of "Safety First, Prevention First". To avoid safety accidents and ensure the personal safety of employees, the company has formulated and improved asset preservation, fire and theft prevention management systems to ensure the safety of enterprise property. Meanwhile, starting from cultivating employees' safety awareness and carrying out three-level safety education, aiming at the safety characteristics of different positions, it has taken safety precautions such as on-the-job safety training, provision of labor protection supplies, and payment of pension and work-related injury insurance for all employees to ensure that all employees master the safety knowledge and skills required by their positions, so as to guarantee the personal safety of employees. The company organizes free physical examinations for all employees every two years, and for employees in special types of work and married women every year. If diseases are found in the physical examinations, reminders and medical arrangements will be given.
In particular, we have established a system to encourage employees to voluntarily participate in the construction of the company's safety management system, such as the volunteer firefighter system and the extensive 5S campaign carried out by the company. Through these activities in which employees participate deeply, we create a more deeply rooted safety culture.
Growth and development are crucial for employees. The company attaches importance to the introduction and training of talents, provides career planning for employees, and organizes various enterprise training to improve employees' quality. By the end of 2019, the company had invested more than 270,000 yuan in training funds, trained more than 500 person-times, with a total training hours of more than 1,500 hours. Based on the basic principle of "matching people with positions and making the best use of their talents", it has formed two career development channels: management and professional, giving employees the right to choose their career development direction, ensuring the optimal allocation of the company's human resources, creating a good promotion channel for employees, and realizing the common growth of employees and the enterprise.

IV. Attention to Employees' Cultural Construction and Health
In addition to paying attention to production safety, the company also attaches great importance to employees' cultural construction and health. This is mainly reflected in our efforts to create a comfortable working and living environment for employees, such as offices and workshops, canteens and dormitories, sports and leisure, reading and entertainment, etc. In addition to hardware guarantees, we also mobilize employees' work enthusiasm and enrich their spare time life through employee activities such as labor skills competitions, employee dinners and recreational activities, which have won wide praise from employees. As shown in the figure below:
1 Rich and Colorful Cultural and Sports Activities
Pay attention to employees' physical and mental health, organize employee forums, evening galas and other activities to enrich their spare time life, and establish an "Employee Mutual Aid Foundation" to help employees solve family difficulties, creating a good atmosphere of "everyone helps when one is in trouble". Throughout 2020, the company's "Employee Mutual Aid Foundation" provided assistance to a total of 5 employees and their families who were ill or suffered sudden accidents at home, with a total assistance amount of 200,000 yuan. For migrant employees, the "Three Stability Projects" have been implemented, namely enabling migrant employees to "settle down, calm down and build a home in Tiantai".
The company adheres to the people-oriented principle, holds regular staff representative forums to solve employees' concerned problems in a timely manner; ensures the growth of employees' salaries, continuously improves employees' meals; gradually reduces the labor intensity of front-line employees, makes employee rewards and punishments open and transparent, and curbs unfairness; provides warmth and humanistic care to employees in difficulty, such as issuing hardship subsidies, enhancing employees' sense of identity and belonging to the company.
In accordance with the characteristics of enterprise development under the new situation, Sihai Company launched new corporate cultural initiatives such as "Five Do's and Five Don'ts" and "Integrity Culture Construction" in 2021. The promotion of the "Five Do's and Five Don'ts" fully taps into the good professional ethics willingness hidden in every employee's heart from the perspective of knowledge and practice, internalizes it into personal awareness and externalizes it into personal behavioral norms, so as to unite people's hearts and gather strength and stimulate combat effectiveness. For the integrity culture construction, the company issued Document No. 02, established a leading group and office for integrity culture construction, clarified the specific plan for promoting integrity culture construction, and formulated supporting documents such as the Code of Conduct for Employees' Integrity, the Employee Integrity Pact, and the Integrity Responsibility Letter between the company and cooperative units. This makes integrity and self-discipline deeply rooted in people's hearts, forms a high-pressure situation against "unhealthy tendencies", and continuously enhances the enterprise's cohesion and competitiveness.

V. Repay Society and Participate in Public Welfare Undertakings
While developing, the company does not forget to repay society, and has gradually built a Sihai public welfare and charity system characterized by "company-led, Party committee-led, full participation and emphasis on practical results", carrying out various forms of public welfare activities over the years. Responding enthusiastically to the call of the Tiantai County Party Committee and Government, Sihai people have actively participated in four key areas of public welfare support: "charitable donations, development of education, promotion of environmental protection, and support for new rural construction". According to statistics, the company has donated more than 1 million yuan to society since 2010.
Charitable Donations and Development of Education: In 2010, to revitalize Tiantai's education, it donated 30,000 yuan to the Tiantai County Education Fund. In 2013, it supported and helped the fertility care cause in Hongchou Town and was awarded the title of "Fertility Care Ambassador". The company carried out a "paired assistance for education" activity with Tiantai Special School, pairing up to help 13 poor children, and formed a long-term attention mechanism. As long as they are dedicated to learning (including university and postgraduate studies), the company will fund their tuition fees all the way. Every June 1st, it prepares school supplies gift packs, computers and other materials for each child in the special school, and also brings different teaching courses and interactive exchanges to the children, making all students of the special school feel the warmth and care from society.
Support for New Rural Construction: To build a new countryside, together with the cadres of Xiawang Village and Minggong Village, the company made reasonable arrangements for money and materials: used for road construction, purchase of fruit tree seedlings, renovation of the elderly association, condolence to sick and disabled elderly, etc.
Active Carrying Out Various Social Assistance Work: Organize employees to participate in various poverty alleviation and donation activities organized by the county Party committee, government and various social charitable organizations. Throughout 2020, the company's employees participated in a total of 8 poverty alleviation and donation activities organized by the county Party committee, government and various social charitable organizations; in October 2021, the company took the initiative to contact the Tiantai County Central Blood Station and carried out a blood donation activity with the theme of "Voluntary Blood Donation, Dedicate Love - Sihai in Action". A total of 60 people signed up, 32 were qualified after initial testing, and the blood donation volume reached 6000 milliliters (Note: The original text has "600 milliliters", which is obviously unreasonable, and it is corrected to 6000 milliliters here).
Honorary Certificate
Zhejiang Sihai Company (Comrade)Donated RMB yuan to the Tiantai County Education Fund for the development of Tiantai's education cause, making contributions to Tiantai's education, which is beneficial to the present and future generations.Issued on February 10, 2010Tiantai County Education Foundation
Employee Mutual Aid Association Activities
To carry forward the traditional Chinese virtue of helping those in need and mutual assistance, fully reflect the company's people-oriented corporate philosophy, and wholeheartedly care for employees and assist social disadvantaged groups, the company has established an Employee Mutual Aid Association and set up a special fund for assisting employees in difficulty. The company has formulated system documents such as the Articles of Association of the Employee Mutual Aid Association and the Implementation Rules for Assistance of the Employee Mutual Aid Association, clearly stipulating the organizational structure and management responsibilities of the Employee Mutual Aid Association, the management methods of the mutual aid fund, and the assistance standards. Since its operation, the Employee Mutual Aid Association has effectively solved difficulties for assisted employees, making them truly feel the company's care and warmth, adding courage and strength to overcome difficulties, interpreting the true meaning of the "mutual assistance and fraternity" spirit with the warmth of home, and further creating a fine tradition of "helping the poor and donating love" and a noble sentiment of "sincere care and mutual assistance" in the company.

Assistance Level	Assistance Amount	Applicable to (in principle)
Level 1 Assistance	More than 30,000 yuan	Families suffering from sudden disasters or accidents; family members suffering from serious illnesses
Level 2 Assistance	10,000 - 30,000 yuan (inclusive)	Families suffering from sudden disasters or accidents; family members suffering from serious illnesses; losses caused by acting bravely for a just cause
Level 3 Assistance	5,000 - 10,000 yuan (inclusive)	Families suffering from sudden disasters or accidents; losses caused by acting bravely for a just cause; families with special economic difficulties
Level 4 Assistance	5,000 yuan and below	Families with special economic difficulties

VI. Win-win Development of the Company and Employees
The company focuses on the win-win development of the company and employees. While the company develops steadily, it provides employees with a good working environment, suitable living conditions and competitive salary and welfare. As shown in the following table:

Employee Benefits

Item	2022	2023	2024
Per Capita Income (yuan/person/year)	60,000	80,000	100,000
Wage Growth Rate (%)	7	9.1	12.02
Welfare Expenses (10,000 yuan)	163.90	171.34	171.34
Welfare Growth Rate (%)	8.6	10.2	10.2
Investment in Five Social Insurances and One Housing Fund and Liability Insurance (10,000 yuan)	857.59	2134.2	2230.5
Number of Insured Persons	All employees	All employees	All employees
Employee Physical Examinations	All employees receive a physical examination once a year; employees in special types of work and married women receive a physical examination once a year.

In the daily operation process, the company attaches great importance to employee complaints. When complaints arise, it promptly coordinates relevant departments to understand the situation and handle them as soon as possible to eliminate employees' dissatisfaction, enabling them to fully devote themselves to work, learn happily, work happily and live happily.
In addition, the company conducts an overall employee satisfaction survey every year, forms a report after statistical analysis, and makes targeted improvements. This work has been carried out continuously year by year, achieving good results, and employee satisfaction has been increasing year by year.
In a word, social responsibility is Sihai's bounden duty and the best way to repay society, and we will strive to fulfill it from beginning to end.