Quality Integrity Report

公司应急演练现场
公司应急管理体系

序号	应急预案
1	《触电应急预案》
2	《火灾应急预案》
3	《公司食堂食物中毒应急预案》
4	《中暑应急预案》
5	《起重机械事故应急预案》
6	《防台防汛应急预案》

Solemn Declaration
This Quality Integrity Report issued by the Company is compiled in accordance with relevant national laws, regulations, rules on quality, as well as relevant industry quality standards and norms. The contents of the Report regarding the Company's quality integrity and quality management status are a true reflection of the Company's current situation. The Company is responsible for the objectivity of the Report's contents, and for the authenticity and scientificity of the relevant discussions and conclusions.

General Manager's Message
21 years of trials and tribulations, 21 years of accumulation – from scratch, from good to excellent. Along the way, Sihai has always adhered to the principle that product quality is the guarantee of enterprise development. We believe that only by making good products can we build a good enterprise.
We are committed to the development and production of V-belts, and our products are closely connected with our end customers. Sihai's products demonstrate outstanding performance in all aspects, leading the Chinese and global markets, and we are proud of this.
Since its establishment in 1997, the Company has introduced advanced chemical formulations and technologies from abroad, organized production in accordance with national standards, and maintained stable product quality, enjoying a certain reputation in the industry. The Company has formulated the quality policy of "High Quality, High Efficiency, Safety, Innovation", established a sound and effective quality management system, and passed the ISO9001 Quality Management System Certification. From 2011 to 2017, it was consecutively rated as one of the "Top 50 Excellent Enterprises" by the People's Government of Tiantai County, awarded the AAA-level Enterprise for Contract Abiding and Trustworthiness by the Zhejiang Provincial Administration for Industry and Commerce. The products under Zhejiang Sihai New Materials Co., Ltd. were rated as Zhejiang Famous Brand Products, and also won the title of Taizhou Famous Trademark, etc.
Sihai's development cannot be separated from the support and help of all sectors of society. We thank the government for its care and assistance, our customers for their understanding and support, and all those who have contributed to Sihai. We also thank nature and repay nature.
We have always believed that employees are Sihai's greatest asset. We look forward to creating quality together with our employees, enjoying quality together, and building Sihai's tomorrow together!
We sincerely welcome people of insight from all walks of life to visit and guide the Company, and create a win-win bright future together!
Person-in-charge of the Enterprise (Signature): Gan CaiyongGeneral Manager of Zhejiang Sihai New Materials Co., Ltd.

Enterprise Profile
Zhejiang Sihai New Materials Co., Ltd. was registered and established in March 1997, with a registered capital of 147.46 million yuan and a construction area of 20,000 square meters. Located in China (Tiantai) Rubber Belt Industrial City, it has a registered trademark " ". The Company is a professional manufacturer of V-belts, mainly producing various rubber V-belts such as ordinary V-belts, agricultural machinery belts, narrow V-belts, and joined V-belts, which are rated as Zhejiang Famous Brand Products. Zhejiang Sihai New Materials Co., Ltd. has been recognized as a Zhejiang High-Growth Technology-Based SME (Certificate No.: UE20161360) and a High-Tech Enterprise (Certificate No.: GR201733002355), and is one of the drafting and formulation units of the "Zhejiang Made" Standard (T/ZZB0060-2016) for ordinary V-belts for transmission.
Since its establishment in 1997, the Company has introduced advanced chemical formulations and technologies from abroad, organized production in accordance with national standards, and maintained stable product quality, enjoying a certain reputation in the industry. The Company has formulated the quality policy of "High Quality, High Efficiency, Safety, Innovation", established a sound and effective quality management system, and passed the ISO9001 Quality Management System Certification. From 2011 to 2017, it was consecutively rated as one of the "Top 50 Excellent Enterprises" by the People's Government of Tiantai County, awarded the AAA-level Enterprise for Contract Abiding and Trustworthiness by the Zhejiang Provincial Administration for Industry and Commerce. The products under Zhejiang Sihai New Materials Co., Ltd. were rated as Zhejiang Famous Brand Products, and also won the title of Taizhou Famous Trademark, etc.
The Company has always pursued the goal of building first-class rubber belts in China, adhering to the principle of "People-Oriented, Creating Quality with Personal Integrity", adhering to the market-oriented operation philosophy of honesty, trustworthiness and quality first, and making every effort to provide high-quality services to customers wholeheartedly.

Chapter 1 Quality Philosophy
1.1 Enterprise MissionCreate value for customers, generate benefits for society, and build a growth platform for employees.
1.2 Company VisionBecome a benchmark in the rubber industry, build a national brand, and realize the century-old dream of Sihai.
1.3 Core ValuesBuild the brand with quality, and uphold integrity to win worldwide reputation.
1.4 "Sihai" SpiritSincerity, Cooperation, Win-win, Sharing.
1.5 Quality PolicyForge Ahead through Innovation, Establish the Enterprise with Quality, Satisfy Customers, and Uphold Integrity in Sihai.
1.6 Quality CommitmentDo not accept non-conforming products, do not produce non-conforming products, do not deliver non-conforming products.
1.7 Explanation of the Quality Policy
Forge Ahead through Innovation: It is the foundation for the sustainable development of the enterprise. Upgrading product R&D level, optimizing technological processes, and continuously realizing product upgrading are important means to improve the enterprise's market competitiveness and economic benefits.
Establish the Enterprise with Quality: Implement the brand strategy, strengthen management methods, gradually improve the one-time pass rate of products, shape the brand with quality, and promote development with the brand. This is the fundamental guarantee for the enterprise to grow bigger and stronger and provide customers with high-quality, stable, safe and legal products.
Satisfy Customers: Be market-oriented, take meeting customer needs as our own responsibility, and strive to build China's No.1 rubber belt base. From the general manager to each team, we firmly establish a customer-centric awareness, implement standardized quality management for products from production to delivery, and ensure customers enjoy satisfactory products.
Uphold Integrity in Sihai: The Company continuously creates famous and high-quality products, and with sincere services and good reputation, builds a win-win product sales network with customers. Relying on technological innovation to develop the Sihai brand is the Company's eternal purpose.

Chapter 2 Internal Quality Management
2.1 Quality Management Organization
2.1.1 Organizational Structure Chart
Chairman/General ManagerDeputy General Manager (Multiple)
Technology R&D Department
Safety & Environmental Protection Department
Foreign Trade Department II
Foreign Trade Department I
Procurement Department
Equipment Department
Administrative Department
Warehouse Management Department
Quality Department
Finance Department
Production Department
Domestic Sales Department
Packing Workshop
Testing Center
Flat Workshop
Wrapping Workshop
Extrusion Workshop
Vulcanizing Tank Workshop
Figure B-3 Schematic Diagram of Organizational Structure and Governance System
2.1.2 Management Representative
Appointed and authorized by the top management of the Company to direct and control the quality management system. Responsible for promoting the specific implementation, evaluation and improvement of the Company's quality policy, objectives and strategies. Specific responsibilities include:
Construct and improve the Company's quality management system in accordance with ISO9001:2015 standards to enhance the level of quality management;
Organize the revision and improvement of the "Management Manual" and relevant documents according to the strategic needs of the Company's development;
Publicize and implement the Company's quality policy, and supervise and assess the operation of the quality management system in each unit;
Supervise the implementation of quality improvement plans by business departments and the improvement of quality awareness to enhance the operation effect of the quality management system;
Liaise and communicate with external parties on matters related to quality management on behalf of the Company;
Report the performance of the quality management system to the Company, including requirements for improvement.
2.1.3 General Manager's Office
Organize the promotion and implementation of the quality policy, objectives and the "Management Manual";
Organize the decomposition of the Company's development strategy and quality objectives to each functional department, and be responsible for supervising and coordinating the implementation of the decomposed objectives by each department;
Assist the management representative in planning the monitoring, measurement and continuous improvement of the quality management system;
Assist the management representative in organizing internal quality system audits, and be responsible for the organization, coordination, follow-up and verification of second-party and third-party audits;
Assist in the preparation of management review and the follow-up verification of the implementation of the output report;
Be responsible for the centralized management of quality management system documents and records;
Formulate quality management systems, continuously improve the level of quality management, and carry out quality improvement activities;
Be responsible for the implementation and execution of quality assessment for each functional department;
Be responsible for organizing and guiding the application of data analysis methods and supervising their implementation;
Be responsible for the management of certification product marks.
2.1.4 Quality Department
Specifically implement quality management for this process, carry out various quality management activities, formulate annual quality improvement plans, and support the achievement of the Company's high-quality manufacturing and quality objectives;
Under the leadership of the general manager, be responsible for the hierarchical decomposition and implementation of the Company's quality objectives;
Organize incoming inspection, in-process inspection and finished product inspection;
Formulate inspection standards for incoming, in-process and final products (excluding raw materials) in accordance with product standards and technical requirements;
Be responsible for the review and disposal of non-conforming products within each department, and monitor and confirm waste products arising in the production process and transferred to subsequent processes;
Be responsible for sending measuring tools and equipment for inspection when due, and correctly use monitoring and measuring devices;
Be responsible for the collection, statistics and analysis of quality data, and the follow-up verification of the implementation of corrective measures taken due to product quality problems;
Be responsible for coordinating and organizing the resolution of technological and quality problems between workshops;
Be responsible for the investigation and handling of quality accidents, and follow up to verify the results of corrective measures;
Be responsible for participating in contract review;
Be responsible for routine inspection and confirmation inspection of certified products;
Organize the implementation of ex-factory supervision and random inspection tests, new product trial evaluation tests, customer inspection and other work;
Approve inspection standards for incoming, in-process and final products in accordance with product standards and technical requirements;
Participate in the testing and review of new product trial production and trial run to verify their performance and processability;
Be responsible for investigating quality accidents and putting forward handling opinions;
Be responsible for handling customer complaints and supervising the improvement of responsible units;
Be responsible for the control, supervision and inspection of special processes and key processes;
Be responsible for participating in the review, evaluation and performance summary of suppliers, and have the final veto power over suppliers;
Be responsible for the statistics, collection and analysis of the Company's quality costs;
Be responsible for monitoring the consistency of certified products to ensure product consistency;
Be responsible for various certification testing work of products;
Be responsible for the registration, numbering, marking, periodic inspection, maintenance and filing of monitoring devices;
Formulate operating specifications according to the importance and characteristics of each monitoring and measuring instrument.
2.2 Quality Management System
The Company has established a quality management system in accordance with the requirements of ISO9001:2015 technical specifications, documented it, maintained and implemented it, and continuously improved its effectiveness. To this end, the following requirements shall be met:
a) Determine the processes needed for the quality management system and their application throughout the organization, and implement corresponding control according to the impact of these processes on product quality and their complexity;
b) Determine the internal connections, sequence and interaction between processes;
c) Determine the necessary criteria and methods to ensure the effective operation and control of these processes;
d) Ensure the availability of necessary resources and information to support the operation and monitoring of these processes;
e) Monitor, measure (where applicable) and analyze these processes to understand the operation trend of the processes and the degree of achieving the planned results, and take necessary measures for the processes based on the analysis to achieve continuous improvement;
f) The Company shall ensure the identification and control of any outsourced processes that affect the conformity of products to requirements. The outsourced processes involved by the Company are product transportation service processes. The control of outsourced processes shall be carried out in accordance with the requirements of Clause 8.4 of ISO9001:2015 standard.
The top management shall determine quality objectives and measurement methods at relevant functions and levels of the organization, and the Company's quality objectives and measurement methods shall be included in the business plan. Quality objectives must be achievable, measurable, and consistent with the quality policy.
Quality objectives must include content necessary to meet product requirements and reflect customer expectations; the current quality objective items of the Company are:
The one-time acceptance rate of finished products ≥ 99%;
The customer complaint rate about delivery date ≤ 2%.
The actual target values for the above items are set in the annual plan every year.
The Company has successively passed ISO9001:2015 Quality Management System Certification, ISO14001:2015 Environmental Management System Certification, and ISO45001:2018 Occupational Health and Safety Management System Certification, and effectively implemented them in all positions to improve the management level of each unit.

Chapter 3 Quality Integrity
3.1 Quality Integrity Management in Product Design, Procurement of Raw Materials or Components, Production and After-sales Processes
3.1.1 Quality Integrity Management in Product Design
The Company's Technology Center is a municipal-level high-tech R&D center, and one of the drafting and formulation units of the "Zhejiang Made" Standard (T/ZZB0060-2016) for ordinary V-belts for transmission.
In the design process, the Company fully considers the internal and external environment of each process, carefully identifies the input and output requirements of the process, sets up corresponding functional departments, defines the internal and external responsibilities and mutual cooperation relationships of the departments, and monitors the results of the process with indicators. To ensure that the process meets key needs, assessment indicators are set for relevant departments undertaking the process, so that the performance of the process corresponds to departmental assessment and the corresponding employee performance to ensure the long-term effectiveness of the process. Thus, corresponding flow charts, procedures or work instructions, and key performance indicators are formed. Innovation and efficiency are the main concepts of process design. The Company fully considers new methods, new technologies, new knowledge and flexibility in the design of work processes, and controls the design of requirements such as time cycle, productivity and cost control in the process.
The Company especially encourages personnel from the Technology Center to participate in first-class domestic technical exchange meetings. Last year, 2 personnel participated in the Qingdao Rubber Professional Technology Exchange Summit. The motivation and training of human resources promote the sound development of the enterprise. Enterprise employees have participated in technological innovation, and nearly 10 innovation proposals have been received, including 8 effective ones. In terms of scientific and technological achievements, the Company has currently obtained 6 patents, including 2 invention patents.
3.1.2 Quality Integrity Management in Procurement of Raw Materials or Components
The Company standardizes the procurement system and improves the management system. In accordance with the principles of cost-effectiveness, quality first, schedule coordination, fair competition, and "comparing prices for the same quality, comparing quality of service for the same price, comparing strength for the same service" in procurement management, it has formulated relevant procedural documents such as the "Non-conforming Product Control Procedure", "Procurement Control Procedure", "Supplier Management System", "Raw Material Inspection Regulations" and "Raw Material Standards and Inspection" to regulate procurement-related work with systems.
Implement a supplier performance evaluation system to control and measure process factors. The Company classifies suppliers into five categories: key materials (Class A), auxiliary and packaging materials (Class C), candidate suppliers and potential suppliers according to the importance and quality requirements of the outsourced parts or raw materials provided by suppliers. At the same time, in accordance with the "Supplier Management System", the Company assesses and scores suppliers on items such as delivery, quality, service and process audit on a monthly basis. Through assessment, key materials (Class A), auxiliary and packaging materials (Class C) are screened, and the assessment results are linked to the supplier's supporting ratio and fund payment.
3.1.3 Quality Integrity Management in Production Process
The Company has designed the product production process in combination with strategic objectives, technical level and production reality, and formulated procedural documents such as the "Production and Service Control Procedure", "Non-conforming Product Control Procedure" and "Continuous Improvement Control Procedure".
The production department reasonably allocates plans to each workshop according to orders, inventory and procurement status. Each workshop organizes production in accordance with the plan. The production department conducts inspection, coordination and review of the entire production process in a fast, timely and effective manner, and implements hierarchical management control to ensure that each workshop provides qualified products on time, with guaranteed quality and quantity.
Formulate procedural documents to standardize the production process. In accordance with guiding documents such as the "Production and Service Control Procedure" and "Design and Development Control Procedure", combined with the production characteristics of products, prone problems and the requirements of relevant parties, formulate a series of procedural documents, implementation rules, inspection standards and norms. Control relevant factors affecting product output and quality to ensure that the production process is carried out under controlled conditions in accordance with determined procedures, and ensure that product output and quality meet requirements.
Implement data-based management to effectively support process control. Based on industry characteristics, problems in output and quality are often reported by workshop directors on behalf of employees, and there is a risk of concealment and omission in this link. The Company improves the timeliness and accuracy of data by increasing on-site statistics. Data results are transmitted to managers through ERP system, OA platform and emails, making them fully aware of the monthly output and quality status, and facilitating the proposal of rectification requirements to subordinate departments based on various prominent problems in the reports.
Focus on product quality control and adopt various methods for continuous improvement. The Company attaches great importance to product quality and sets up full-time inspector positions. Following the "Three No's" principle of "not accepting, not producing, not transferring" non-conforming products, employees and full-time inspectors strictly implement the three steps of first article inspection, in-process patrol inspection and last article inspection to effectively ensure the quality of end products. Workshop managers or quality managers regularly conduct training on quality improvement for employees to improve the quality awareness of operating employees, requiring workshop workers to strictly carry out production operations in accordance with regulations. For quality problems found on-site that can be handled immediately, workshop directors or inspectors promptly organize relevant personnel to make improvements; for quality problems found through long-term data statistics, they are identified and rectified through monthly, quarterly and semi-annual quality management meetings. By setting quality control points and semi-finished product inspections, search for weak links in product quality, and encourage employees to carry out quality research targeting these links. Set up special groups to identify the internal causes of quality defects in the production process reflected by statistical data, and take corresponding measures to eliminate quality problems.
Pay attention to on-site management and safety management. The Company has established on-site management indicators and strictly implemented them in accordance with 5S standards. Produce process operation kanbans to realize the exchange and interaction of internal information. Require workshops to integrate machines, methods, personnel, materials and environment, eliminate running, emitting, dripping and leaking, adopt the method of on-duty mutual inspection, solve problems in a timely manner once found, and higher-level departments will also conduct irregular on-site assessments of workshop production sites.
In terms of safe production, employees are required to strictly implement the "Employee Safety Manual" in daily production activities. At the same time, the Company holds safety activities every year and every month to improve employees' safety awareness and reduce unnecessary losses to employees and the Company caused by improper operations of employees.
3.1.4 After-sales Quality Integrity Management of Products
The Company's products are directly matched with main engine customers, so after-sales service is particularly important. According to customer needs, the Company has set up marketing service institutions in more than 20 provinces, municipalities directly under the Central Government and autonomous regions across the country, with dedicated marketing service personnel. For strategic customers or key customers, the Company also sets up dedicated customer managers, and marketing service personnel provide on-site services to customers on a regular monthly basis. The Company also has a logistics center in Singapore and sales points in Vietnam, Laos and other countries to provide after-sales service and technical docking for customers nearby.
3.2 Quality Culture Construction
3.2.1 Integrity Education
Carry out integrity education for employees. The Company regards employee learning and development as an "investment", and building a learning organization and creating an atmosphere of full-staff learning as an important part of the Company's long-term development strategy. With the expansion of the Company's scale and the implementation of the global development strategy, the Company's employee training work has been put on the agenda. Short-term training courses can no longer meet the Company's development requirements. The Company is in urgent need of conducting planned and systematic training for all employees to improve their overall quality. The Company has established the "Sihai Employee Training Center" (see Figure 3.2-1: Employee Training Site).
Figure 3.2-1 On-site of Employee Training Center
Every year, according to the actual situation and market trends, the Company identifies the training needs of each department, formulates employee training plans and annual plans, and carries out employee education and training, including quality awareness, quality knowledge, quality management systems, professional knowledge and other training contents. The Company formulates and issues the "Annual Employee Training Plan" every year, arranging and deploying quality integrity education.
In accordance with the Company's education and training plan, all employees receive education and training on quality integrity and quality management awareness, with plans, arrangements, inspections, assessments and summaries to ensure training effectiveness and quality.
3.2.2 Integrity and Self-discipline
While the Company's brand awareness is constantly improving, it has always regarded the construction of enterprise quality integrity as an important part. Establish advanced corporate values and correct business philosophy, operate in accordance with the law, and consciously accept the supervision and management of relevant departments. The Company strictly discloses information truthfully, accurately, timely and completely in accordance with the provisions of relevant laws and regulations and the Company's "Information Disclosure Management System", and publishes information irregularly on the Company's official website and WeChat official account to ensure that all investors can obtain the information released by the Company in a timely manner; at the same time, the Company communicates and exchanges with investors through multiple channels such as investor interaction platforms, investor hotlines and interactive mailboxes.
3.2.3 Corporate Culture
To make employees and relevant parties understand the organizational values and other corporate culture, senior leaders communicate with employees, customers, suppliers, government and social organizations in an all-round and multi-angle way through various methods and channels (Table 3.2.3-1) to achieve evaluation, promote the enterprise, and promote the continuous prosperity and development of corporate culture.
Table 3.2.3-1 Ways of Disseminating Corporate Culture

Communication Object	Communication Channels	Communication Methods
Employees	Outward bound training, induction training, on-the-job training, professional training, selection training, etc.	Employee Participation
	"Sihai Co., Ltd. Employee Handbook", company official website, WeChat official account, company documents, corporate culture wall, workshop publicity boards, slogans and banners, corporate promotional videos, etc.	Imperceptible and Extensive Dissemination
	Company website, WeChat official account, internal telephone, OA system, ERP system, email system, general manager's mailbox	Two-way Communication
	Various cultural and sports activities such as reading exchange meetings, Spring Festival art performances, group celebration dinners, comprehensive labor skills competitions, safety knowledge competitions, Mid-Autumn fellowship activities, employee birthday parties, outbound team building, sports meetings, basketball games, table tennis games, etc.	Employee Participation
	Excellent employee awards, rationalization proposal awards, year-end summary conferences and advanced commendation conferences, etc.	Role Model Incentive
	Staff representative congresses, employee forums, advanced deeds forums, daily production morning meetings, departmental monthly meetings, special seminars, performance review meetings, performance interviews, annual summary and commendation conferences, employee satisfaction surveys, Party branch meetings, League committee annual meetings	Exchange and Discussion
Customers	Company official website, corporate brochures, product manuals, promotional videos, various exhibitions, faxes, emails	Dissemination-oriented with Emphasis on Feedback
	High-level mutual visits, customer-supplier consortium meetings, participation in customers' supplier annual meetings, special exchange meetings, information systems	Two-way Communication
Shareholders	General meetings of shareholders, individual communication, news media, websites, newspapers, investor relations hotlines	Two-way Communication
Suppliers	Supplier conferences, supplier forums, excellent supplier selection, supplier satisfaction surveys, procurement exhibitions, field visits, telephone communication, emails, contracts and agreements	Two-way Communication
Government and Public	Work reports, visits and guidance, public welfare activities, charitable donations, paired poverty alleviation, corporate website, announcements of major events, corporate publications, brochures, publicity	Dissemination-oriented with Emphasis on Feedback

Table 3.2.3-1 Ways of Disseminating Corporate Culture
Figure 3.2.3-2 Sihai Safety Knowledge Competition with the Theme of "Forge Ahead through Innovation, Pursue Excellence, Be Honest and Trustworthy, and Develop Together"
Figure 3.2.3-3 Rich and Colorful Cultural and Sports Activities
The Company has compiled the "Employee Handbook" incorporating Sihai's values, strategic objectives and business strategies, making it the "Company Constitution" that every employee must know and abide by, covering the company's purpose, basic business policies, basic organizational policies, basic human resources policies, basic management control policies and other contents. In line with the concept of continuous improvement and democratic decision-making, the "Employee Handbook" is revised every five years, jointly discussed and reviewed and approved by outstanding employees at all levels of the Company and senior leaders to ensure the rationality and practicality of the contents of the constitution and improve the execution of corporate culture. The Company also disseminates its culture through the website, WeChat official account and brochures to make the corporate culture deeply rooted in people's hearts.
Figure 3.2.3-4 Sihai Official WebsiteSIHAI Zhejiang Sihai Rubber Co., Ltd.Chinese | ENGLISH | ESPANOLHome | About Us | Technology Center | Product Display | Contact Us | Online MessageSihai Transmission Drives Forward the PowerThe Company has strong technical force, advanced equipment, high-precision testing instruments, and advanced computer-controlled automated machines.It organizes production in strict accordance with national standards. The products have stable performance and excellent quality, selling well all over the country and exporting to earn foreign exchange.
3.3 Creating an Environment of Integrity and Compliance with Laws
3.3.1 Upholding Integrity
The Company abides by business ethics and adheres to the principles of honest operation and fair competition. The values summarized and refined by the Company from years of business practice are "Forge Ahead through Innovation, Pursue Excellence, Be Honest and Trustworthy, and Develop Together", which it has always followed as a criterion. Senior leaders take the lead in learning laws and regulations such as the "Company Law", "Product Quality Law", "Environmental Protection Law" and "Labor Law", and cultivate behavioral norms of being honest to customers, abiding by contracts and keeping promises; being honest to society, abiding by public morality and engaging in public welfare. The Company's annual sales volume is nearly 40 million yuan, and it has never breached contracts, nor has it had disputes with merchants over price, quality, delivery date, payment collection and payment, winning the trust of customers at home and abroad. For this reason, the Company has successively won honors such as "Zhejiang Provincial AA-level Enterprise for Creditworthiness of Industrial and Commercial Enterprises (Contract Abiding and Trustworthy)", "Zhejiang Famous Brand Product", and "Enterprise Credit Rating AA".
3.3.2 Compliance with Laws and Regulations
Senior executives of the Company take the lead in earnestly learning relevant laws such as the "Company Law", "Contract Law", "Product Quality Law" and "Work Safety Law", conduct production and business activities within the scope of national laws, regulations, rules and systems, and abide by the Company's articles of association, resolutions and systems. The "Employee Handbook" clearly stipulates the directors' and general managers' implementation of laws and administrative regulations, and their performance of obligations of integrity and diligence, and through signing confidentiality agreements, non-compete agreements, authorized agency agreements, etc., adheres to legal operation, pays taxes in accordance with the law, takes integrity as the foundation, and ensures that all activities comply with Chinese laws, decrees and relevant regulations.
As a listed company, the Company strictly abides by the listed company management guidelines, formulated the Company's "Information Disclosure Management System" in accordance with the "Listed Company Information Disclosure Management System", and discloses financial information and other major information in a timely, accurate and strict manner in accordance with the system. During the quarterly, semi-annual and annual periods, the Company issues financial reports that fairly reflect the Company's financial position and operating results in all material aspects.
The Company earnestly implements the "Labor Law" and other relevant national laws and regulations, signs labor contracts with all employees in accordance with the law, establishes a sound trade union organization, actively protects employees' rights and interests, and specifically stipulates contents involving employees' interests such as remuneration, labor safety, social insurance and welfare, and vocational training, organizes regular physical examinations and health training, effectively safeguarding the legitimate rights and interests of employees. Since 2017, the Company has introduced the OHSAS18001 Occupational Health and Safety Management System Certification, effectively controlled the Company's production and management activities, carried out full-staff and whole-process safety management for human unsafe behaviors, material unsafe states and enterprise management defects, and actively organized a series of activities such as "5S" management and safe operation training. In addition, it has actively carried out ventilation renovation in production areas, installed waste gas treatment equipment, etc., to continuously improve employees' living and working environment.

Chapter 4 Quality Foundation
4.1 Product Standards
The Company has a complete system of documents. In accordance with the requirements of ISO9001:2015 technical specifications and the actual situation of the Company, it ensures that processes related to management activities, resource provision, product realization and measurement are effectively planned, and appropriate documents are compiled to ensure the effective operation of the quality management system.
Structure of the Company's Quality Management System Documents
First-level documents: Management Manual
Second-level documents: Procedural Documents
Third-level documents: Work Instructions, Technical Documents, Drawings, Process Documents, Enterprise Standards, Quality Plans, Control Plans
Fourth-level documents: Quality Records
The Company has established a standard system with technical standards as the main body, clear levels, reasonable structure and covering all professions. Up to now, Zhejiang Sihai New Materials Co., Ltd. has been recognized as a Zhejiang High-Growth Technology-Based SME (Certificate No.: UE20161360) and a High-Tech Enterprise (Certificate No.: GR201733002355), and is one of the drafting and formulation units of the "Zhejiang Made" Standard (T/ZZB0060-2016) for ordinary V-belts for transmission.
4.2 Metrological Level
Adhering to the principle of "Accurate Measurement, Scientific and Fairness", the Company, in accordance with the requirements of ISO10012 Measurement Management System, has equipped with measuring, pressure and other testing equipment to meet the requirements of production and operation and quality management for the whole process management from material procurement inspection to product ex-factory delivery, and regularly sends measuring instruments for inspection to ensure the accuracy of measurement and testing results.
Figure: Metrological Instrument Verification Certificate (Partial)
4.3 Certification and Accreditation Status
The Company has successfully passed and obtained Energy Management System Certification, ISO9001 Quality Management System Certification, ISO14001 Environmental Management System Certification, and ISO45001:2018 Occupational Health and Safety Management System Certification.
Figure: Certification Certificates (WanTai Certification)
Zhejiang Sihai New Materials Co., Ltd. - GB/T19001-2016 idt ISO9001:2015 Quality Management System Certification
Zhejiang Sihai New Materials Co., Ltd. - ISO14001:2015 Environmental Management System Certification
Zhejiang Sihai New Materials Co., Ltd. - GB/T45001-2020 idt ISO45001:2018 Occupational Health and Safety Management System Certification
4.4 Safety Management of Special Equipment
In accordance with the requirements of relevant national laws, regulations, rules and standards, the Company has established and improved safety production management systems, management systems and safe operating procedures, which are posted on the wall. It strengthens the publicity and education of employees, pays close attention to the implementation of systems to ensure the implementation of various systems, and effectively eliminates the occurrence of "three violations" (violation of regulations, rules and labor discipline).
To effectively prevent the occurrence of major and extraordinarily serious accidents, the Company has strengthened the safety management of special equipment and special operation personnel, improved the safety management systems for special equipment and special operation personnel, regularly maintained and tested special equipment, timely rectified existing problems to ensure that the equipment is in good operating condition. The Company's special operation personnel have received training from higher competent departments, passed examinations, obtained certificates and taken up their posts, and operated in a standardized manner to ensure operational safety.

Chapter 5 Product Quality Responsibility
5.1 Product Quality Commitment
The enterprise strictly abides by the "Product Quality Law of the People's Republic of China" and other relevant laws and regulations, and operates in good faith in accordance with the law.
The enterprise manages and produces in accordance with the law, and fulfills the main responsibility for quality safety. Establish and improve various management systems, and improve various records and account books.
The enterprise maintains the validity of its qualifications, and the products produced have obtained the corresponding industrial product production license and are within the validity period.
The surrounding environment and production site of the enterprise meet the requirements specified by national standards.
The enterprise strictly implements the raw and auxiliary materials inspection system, and the raw and auxiliary materials and packaging materials used comply with the corresponding national standards, industry standards and their relevant regulations.
The enterprise takes "zero defects" as the goal to ensure that non-conforming products are not delivered from the factory.
5.2 Product Honor Status
In accordance with the basic business principles of "operating in accordance with the law and paying taxes in accordance with the law", the Company strictly complies with the requirements of various laws and regulations such as the "Company Law" and "Work Safety Law", forming a good environment of abiding by moral norms. It has repeatedly won honors and commendations from the government, financial institutions, social organizations and other relevant parties.
Figure: Zhejiang Famous Brand Product CertificateZhejiang Sihai Rubber Co., Ltd.Your company's ordinary V-belts for general use are recognized as Zhejiang Famous Brand Products.Hereby issue this certificate.Certificate No.: 2016 (Industry) - 160Validity Period: 2016.12 - 2019.12
Other Honors:
Sihai Environmentally Friendly and Energy-Saving Rubber Belts (Zhejiang Famous Brand Product)
Provincial High-Tech Enterprise Research and Development Center (Issued by Zhejiang Provincial Department of Science and Technology, December 2018)

Chapter 6 Quality Risk Management
6.1 Quality Complaints
The Company's products are directly matched with main engine customers, so after-sales service is particularly important. According to customer needs, the Company has set up marketing service institutions in more than 20 provinces, municipalities directly under the Central Government and autonomous regions across the country, with dedicated marketing service personnel. For strategic customers or key customers, the Company also sets up dedicated customer managers, and marketing service personnel provide on-site services to customers on a regular monthly basis. The Company also has a logistics center in Singapore and sales points in Vietnam, Laos and other countries to provide after-sales service and technical docking for customers nearby.
Complaint Handling Process: The Quality After-sales Service Section of the Marketing Department is responsible for collecting customer information, receiving and handling customer complaints (see Figure 6.1-01: Complaint Management Process). The responsibilities of the after-sales service department include: handling customer quality complaints, three guarantees (guarantee of repair, replacement and refund) claims, receiving and handling external returns/exchanges; supporting salesmen in external quality handling, organizing and implementing major after-sales services; participating in the ex-factory review of sample new products; assisting salesmen in handling and replying to quality information; identifying and inputting customer quality requirements and managing them; interfacing with various quality management functional departments of the Company; external quality operation, customer quality satisfaction analysis and organizing improvement, etc. The Company stipulates that customer complaints shall be given a clear reply within 12 hours; for quality problems requiring on-site handling, the Company shall arrive at the scene within 24 hours domestically and 36 hours abroad.
Figure 6.1-01 Complaint Management ProcessStart → 1.1 Quality Complaint (Fill in Quality Information Form) → 1.2 Audit and Transfer Online → 1.3 Analyze and Transfer Internally → 2.1 Analyze whether on-site dispatch is needed according to customer requirements → 2.2 Analyze quality problems → 3.1 On-site handling / 3.2 Check completeness of 8D report / 3.3 Dispatch special personnel for on-site handling / 3.4 Rectification report → 4.1 Whether customer requirements are met → 4.2 Follow-up verification → 4.3 Online tracking and verification of 8D time nodes → 4.4 Online 8D follow-up verification → End
Minimize customer dissatisfaction and business loss. The Marketing Department is responsible for receiving and collecting customer complaints, recording customer opinions, and transmitting relevant information to the Quality Department through the "Corrective Action Form" or customer-specific format. The Quality Department promptly organizes relevant personnel to conduct analysis/testing/review.
While conducting analysis, contain suspected non-conforming products. Upon receiving customer complaints, the Quality Department immediately organizes relevant personnel to contain suspected products based on complaint information: ① Suspected products to be contained include work-in-progress, finished products in warehouse, in-transit shipped products, external inventory; for outsourced parts and raw materials involved, raw material warehouse and corresponding sub-suppliers shall be included; ② The Quality Department and relevant personnel determine temporary measures according to abnormal conditions, inspect, rework, repair or scrap the contained products; if necessary, fill in the "Abnormal Report Form"; ③ Return relevant information to customers within 24 hours; if customers have special requirements, fill in relevant forms according to customer requirements.
If the analysis confirms that the problem is caused by the Company's manufacturing quality, the Quality Department organizes relevant personnel to analyze the causes to determine the root cause, put forward corrective and preventive measures and organize their implementation, and appropriately adopt error-proofing technologies commensurate with risks. The Quality Department evaluates the effectiveness of corrective and preventive measures to prevent the recurrence of problems. If customers have specified formats (such as 8D, 7-step method, etc.), the customer-specified format shall be adopted.
Accumulation and Analysis of Complaint Information: The Marketing Department and Quality Department are responsible for regularly counting customer complaints. The Quality Department is responsible for analyzing the "Abnormal Report Form", "Corrective Action Form" and other documents returned by customers without specific faulty parts returned. Based on the information in relevant documents, analysis is carried out in the form of bar charts according to the month of document receipt, month of product production, operating mileage of faulty parts, etc., to find out the rules, such as the concentration of product production and the concentration of operating mileage of faulty parts. If there are rules to follow, further investigate the causes and formulate solutions to reduce customer complaints. The frequency of analysis is generally once a month for major product categories, and centralized analysis once every six months and every year. If necessary, analysis can be carried out for a specific customer or a specific product.
6.2 Quality Risk Monitoring
6.2.1 Quality Control Points: The Company focuses on controlling risks in key and important characteristics of product quality and adopts appropriate management measures and methods. Through the planning of personnel capabilities, equipment, work instructions, environment, etc. for quality control points, risks in key and important characteristics of product quality are kept under control.
6.2.2 Layered Audits: Composed of workshop directors and team leaders, conduct supervision and inspection on the production process and implementation of process discipline in each production plant at three levels (monthly, weekly, daily), and supervise the rectification of problems found in quality supervision and inspection to ensure timely and effective rectification.
6.2.3 Reliability Verification Tests: The Company has a multi-functional testing center covering an area of more than 500 square meters, equipped with advanced testing equipment purchased at home and abroad successively, including vulcameters for testing vulcanization speed, tensile testing machines for testing strength, Mooney viscometers for testing Mooney viscosity and other experimental equipment. It has the ability to conduct a series of tests on products from raw materials to finished products.
6.3 Emergency Management
The Company holds fire drills and various disaster emergency drills every year. The Company has formulated the "Hazard Identification/Risk Assessment and Risk Control Procedure", 6 "Emergency Plans for Sudden Environmental Events", etc., with corresponding emergency measures for fires, typhoons, mechanical failures, power outages, etc., and established an emergency headquarters and office.
Figure: Company Emergency Drill Site
Company Emergency Management System

Serial Number	Emergency Plan
1	"Electric Shock Emergency Plan"
2	"Fire Emergency Plan"
3	"Emergency Plan for Food Poisoning in the Company Canteen"
4	"Heat Stroke Emergency Plan"
5	"Emergency Plan for Hoisting Machinery Accidents"
6	"Emergency Plan for Typhoon and Flood Prevention"

Conclusion
In 2025, Zhejiang Province takes improving standard requirements and certification as means, leads the building of the "Zhejiang Made" brand with high standards, and emphasizes continuously improving the quality integrity standard system and accelerating the construction of quality credit informatization. In accordance with the requirements, the Company has successively improved relevant systems, earnestly implemented them, and consciously accepted the supervision and management of relevant departments.
The construction of the quality integrity system is a long-term and systematic task. To improve the rules and regulations for the construction of the quality integrity system, consolidate and deepen the achievements made in the construction of enterprise quality integrity, it is necessary to establish a long-term mechanism, implement it scientifically and adhere to it unremittingly. The Company will consolidate the foundation of quality integrity, take the path of quality and efficiency, and strive to become a world-class excellent enterprise providing efficient solutions and related products.