2020 Social Responsibility Report

　　Zhengzhou Far East Refractory Materials Co., Ltd., as a socially responsible enterprise, never forgets the social responsibilities it should bear while continuously developing and growing itself. It insists on achieving a win-win concept for society, employees, customers, and investors, promoting harmonious, healthy, and sustainable development between the enterprise and society.

　　(1) Employee Rights

　　An excellent enterprise cannot do without the support of outstanding talents. Far East Company has always adhered to the principle of "people-oriented," actively building harmonious labor relations, creating a good working atmosphere and environment for employees, valuing employee career development, enhancing employees' sense of belonging, and providing a platform for various talents to fully display their abilities, forming a virtuous mechanism for the common development of employees and the company.

　　1. Legally protect employees' legitimate rights and interests. The company strictly follows the requirements of the Labor Law of the People's Republic of China, the Labor Contract Law of the People's Republic of China, and other laws and regulations to sign labor contracts with employees, establish standardized labor relations, clarify the rights and obligations of both parties, handle various social insurances for employees according to law, and safeguard employees' legitimate rights and interests.

　　2. Focus on employee career development and build a platform for employee growth. The company strengthens human resource planning, combines corporate development goals with employees' personal development goals, formulates career development objectives, builds smooth career development channels, provides various vocational skills training, promotes comprehensive employee development, and offers a broad platform for employee growth; the company encourages employees to participate in industry skill competitions and has established a reward system for participation; the company, in conjunction with the competent personnel department, has handled professional title certificates, skill certificates, and special equipment operation certificates for employees. In 2020, the company actively applied for intermediate engineer evaluations for more than three assistant engineer employees. Throughout the year, the company held about 180 lectures on job skills, safety production, production management, and sales skills, including about 150 internal training sessions and about 15 external training sessions, covering all positions in the company.

　　3. Care for and cherish employees, providing a pleasant working environment. The company equips employees with necessary labor protection supplies and protective facilities; in April 2004, the company passed ISO9001 quality management system certification, ISO14001 environmental management system certification, and GB/T28001 occupational health management system certification. Meanwhile, the company formulated the "Employee Health Check Management Measures" and conducts regular health checks for all employees annually. The company comprehensively standardizes and improves occupational health and safety management, minimizes various casualties and occupational disease hazards, ensures employee health and safety, and enhances the company's social image and employee cohesion. The company's safety inspection leadership team invites the fire department annually to conduct fire prevention knowledge training and fire drills for all employees. Monthly, the company regularly carries out in-depth safety hazard inspections and rectifications, assigns special personnel to regularly check fire-fighting equipment and record inspection results, ensuring that hazards and unsafe factors are discovered and effectively handled in a timely manner, effectively preventing and avoiding safety accidents caused by hazards.

　　4. Organize colorful cultural and sports activities to enhance employees' sense of belonging. The company values humanistic care, carries out rich and colorful activities, holds annual meetings and tourism activities to continuously improve employee satisfaction; the company publishes an internal corporate newsletter every October, all created and contributed by employees, writing about work experiences, sharing experiences, and expressing feelings towards the company, greatly promoting emotional communication among employees, enhancing their sense of belonging, allowing employees to live healthily and work happily.

　　5. Improve the salary assessment and incentive mechanism. The company follows the principles of equal pay for equal work, distribution according to work, and more work more pay, ensuring openness, fairness, and justice. At the same time, based on the company's actual situation, it has formulated reasonable incentive measures such as promotion incentives, salary incentives, project incentives, innovation incentives, and year-end assessments. In 2020, the company implemented equity incentives for 10 core employees, effectively stimulating the enthusiasm and creativity of all employees.

　　6. Build a "harmonious culture" and strengthen humanistic care. The company always puts employees first and extends a helping hand to employees facing special difficulties and urgent needs. In 2020, the company improved the established employee consolation fund system, distributing 20,000 yuan in consolation funds throughout the year, with more than 20 instances of consolation.

　　(2) Protection of Supplier and Customer Rights

　　The company focuses on improving suppliers' responsibility fulfillment capabilities, actively builds industry exchange platforms, adheres to market orientation, customer-centricity, and efficiency goals, continuously enhances customer value, and strives to create a mutually beneficial and win-win cooperation situation.

　　1. Mutual benefit and win-win with suppliers

　　The company strives to build a fair and honest procurement and supply system by establishing and improving relevant systems, strengthening fund management and financial risk control, ensuring asset and fund security, thereby effectively protecting the legitimate rights and interests of suppliers, maintaining good cooperative relationships, and achieving the goals of risk sharing and win-win cooperation.

　　2. Actively protect customer rights

　　The company always adheres to customer-centricity and customer actual needs orientation, actively creates and improves domestic and international distribution networks, logistics systems, and service systems, strictly follows the ISO9001:2008 quality management system to build a standardized quality control system, and adopts meticulous quality control measures to provide customers with first-class products and services.

　　The company follows the quality policy of "quality first, customer satisfaction, compliance with laws and regulations, continuous improvement," fully enhancing customer satisfaction and loyalty. The company has established a professional R&D center and has been recognized as the "Xinxiang City Engineering Technology Research Center." By continuously introducing advanced production equipment and professional talents, it improves product quality and meets diversified customer needs.

　　In recent years, under the leadership of the company's management, all employees have united as one, focusing on the research, production, and sales of fluid filtration products, implementing product structure adjustments, achieving enterprise transformation and upgrading, fully playing the role of demonstration and leadership, and maintaining a leading position in the filtration industry.

　　(3) Environmental Protection and Sustainable Development

　　Enterprise development prioritizes environmental protection. The company has always placed environmental protection work first, established and adhered to the overall concept of "environmental protection serving business management, and business management promoting environmental protection," strengthened investment, comprehensively deepened enterprise environmental management, and continuously improved environmental standards.

　　In 2020, the company encouraged employee technological innovation, eliminated outdated production processes, built an environmentally friendly enterprise, and the production system collected rationalization proposals around the theme of "energy saving, environmental protection, increased production, and efficiency." This fully improved the comprehensive utilization rate of energy and raw materials. Through equipment improvements, pipeline routes, and waste facility renovation proposals, it reduced the consumption of water, electricity, and gas energy and promoted resource recycling. The company optimized existing production processes, arranged effective production plans, concentrated the use of effective energy, maximized production efficiency, reduced comprehensive energy consumption during production, avoided energy waste, and achieved energy saving, emission reduction, increased production, and efficiency.

　　(4) Public Relations and Social Welfare

　　The company actively cooperates with regulatory and tax authorities for inspections and supervision and has established good communication relationships with relevant government agencies. The company actively shapes a good image as a "responsible enterprise," supports social construction and public welfare undertakings, and provides more employment opportunities to society.

　　The company actively fulfills corporate social welfare responsibilities, regularly donating 10,000 yuan annually to the local government assistance center to support families in difficulty.

　　In 2020, the company introduced five high-end talents with graduate degrees, strengthening the company's technical R&D team, and recruited more than 30 migrant workers. With the continuous development of the enterprise, it provides more employment opportunities to society.

　　(5) The company continuously improves its technological innovation system, adhering to the strategic policy of "seeking production through quality and promoting development through technology." It adopts methods such as independent innovation and industry-university-research cooperation to build an independent intellectual property system, enhance the company's technological innovation capabilities, continuously improve product quality and technical level, and drive technological progress across the entire industry.