Social Responsibility Report

Kaixin Pipeline Technology Co., Ltd.

2020

Table of Contents

Preface

1. Company profile

2. The company's understanding of social responsibility

3. Social responsibility fulfilled in promoting sustainable economic development

(1) Improve corporate governance and operate in compliance with laws and regulations

(2) Pay taxes in good faith

(3) Building a harmonious relationship between related parties

(4) Provide customers with high-quality products and services

4. Social responsibility fulfilled in promoting the sustainable development of society

(1) Protection of the rights and interests of shareholders and creditors

(2) Protection of company employees' rights and interests

(3) Protection of the rights and interests of suppliers and customers

(4) Environmental protection and sustainable development

Preface

1. Social responsibility means that while creating profits, pursuing development, and safeguarding the interests of shareholders, the company assumes responsibility for employees, customers, the environment, and society. As a leading domestic manufacturer of plastic valves, plastic pipes, plastic pipe fittings, plastic pumps and other products, Kaixin Pipeline Technology Co., Ltd. has the courage to assume social responsibility. While the company develops, it constantly improves the corporate governance structure, strengthens technological innovation and employees Develop construction, implement lean production management, carry out in-depth energy conservation and emission reduction work, actively participate in social welfare undertakings, and promote the comprehensive, natural and coordinated development of the company and society.

2. This report as a whole covers the company's social responsibility performance in 2020. Based on the long-term and continuous performance of social responsibility, the content of this report includes but is not limited to 2020. It is hoped that this report can become a bridge for communication and circulation between the company and all walks of life, and a window for investors, suppliers, customers and creditors to understand and recognize the company. At the same time, all sectors of the society are welcome to supervise the company and provide more valuable opinions for the company's sustainable development, so as to promote the company's better progress and development, and better return to the society.

3. This report is prepared in accordance with the "Company Law" and other relevant laws, regulations and normative documents, combined with the company's actual performance of social responsibility, and is a summary of the company's social responsibility related work in 2020.

1. Company profile

Kaixin Pipeline Technology Co., Ltd. (formerly: Ningbo Kaixin Pump & Valve Manufacturing Co., Ltd.) was established in 1999. It is a large-scale comprehensive high-tech enterprise integrating product development, production, sales and service. The company has a factory area of ​​25,000 square meters and has more than 130 employees of various types. It is mainly engaged in R&D and manufacturing of plastic pipe fittings, plastic pipes, plastic valves, corrosion-resistant pumps and other non-metallic chemical anti-corrosion equipment. The products are exported to more than 30 countries and regions at home and abroad. The annual sales are nearly 120 million yuan. Products are widely used in chlor-alkali, petroleum, copper foil, lithium batteries, pharmaceuticals, chemical fiber, steel and other fields. The main cooperation units are Tangshan Sanyou Group, Jinchuan Group, PetroChina Co., Ltd., Zhejiang New Times Zhongneng Technology Cycle Co., Ltd., Lingbaohua Xin Copper Foil Co., Ltd., Baosteel Engineering Technology Group Co., Ltd., etc.

Over the past 20 years, Kaixin has always adhered to the tenet of high quality and customer first, promoting development with quality and seeking benefits with reputation. The company has strong technical force, advanced technology, complete testing equipment, and a complete enterprise standardization management system. It is the first to pass the national pressure pipeline registration safety license (TS) certification, and has successively obtained the ISO9001: 2000 international quality system certification, and the national industrial product production license Certificate and other industry certificates.

In the new era and new journey, under the guidance of the company's foreign trade development strategy, Kaixin closely follows the market trend and uses "Internet +" to sell "Made in China" to the world. With the excellent quality built by ingenuity, we continue to deepen the corporate image of "good pumps and valves, made by Kaixin".

Figure 1-1 Modern workshop

Figure 1-2 Main products and customers

Figure 1-3 UPVC turbine butterfly valve Figure 1-4 CPVC pipe

2. The company's understanding of social responsibility

Social responsibility is a part of the company's management concept system, and its value is also reflected in the service concept, manufacturing concept, craftsman concept, brand concept, environmental protection concept, caring for employees, and social responsibility. The company always believes that while operating for a long time and maximizing profits, the company must also assume responsibility to stakeholders and the entire society in order to achieve sustainable development of the company and the economy and society. Seriously fulfilling social responsibility is not only the only way for the company to enhance its own value and truly realize the leap to a modern new type of enterprise, but also to implement the people-oriented scientific development concept and build a socialist harmonious society.

The company takes the promotion of the harmonious development of the society as its mission, and integrates the concept of sustainable development and building a harmonious society into the corporate culture to better meet customer requirements and bring more returns to stakeholders. The company continues to pursue the harmonious development of the company, employees, society, and nature, repaying society with practical actions, caring for nature, creating a harmonious development environment, and fulfilling social responsibilities.

The social responsibilities undertaken by the company in practice are mainly reflected in:

1. Pay attention to public responsibility. Identify risks in environmental protection, energy saving, production safety, and public health, and take corresponding countermeasures, and actively assume public responsibilities in environmental protection and safety;

2. Pay attention to ethical behavior. The company leaders attach great importance to the construction of integrity and ethics, emphasizing on integrity management, abiding by laws and regulations, abide by professional ethics, and actively assume the responsibilities and obligations for products.

3. Pay attention to public welfare support. The company actively fulfills and assumes corporate citizenship responsibilities and obligations, and actively repays society in a planned way. The company actively organizes and participates in volunteer services, and makes charitable donations for charitable relief projects and public welfare undertakings such as poverty relief, medical assistance, and disaster relief.

3. Social responsibility fulfilled in promoting sustainable economic development

(One)Improve corporate governance and operate in compliance with laws and regulations

The company's senior leaders adhere to the business philosophy of "professionalism creates strength, innovation promotes development", abide by national laws and regulations, adhere to their commitments to customers and related parties, and always educate employees to implement the core values ​​of the company.

Implement the internal market operation mechanism of "the last process is responsible for the next process" within the company, do a good job in organizing production and quality control, and provide satisfactory products for the next process.

To customers and to the market, establish a market view of "Quality First, Customer First", do everything possible to meet customer needs and strive to exceed customer expectations, as the eternal theme of enterprise development, to provide customers with satisfactory products and services.

The company's business management, project investment, environmental protection and safety, employee rights protection, and purchase and sales contracts all strictly abide by laws and regulations to ensure that the interests of related parties are not harmed.

Formulated and publicized and implemented the "Employee Handbook" (including basic code of conduct, job descriptions, work discipline regulations), and formed a good atmosphere of compliance and law

The company continues to improve its corporate governance structure, establishes a sound internal system, and makes clear provisions for directors, middle and senior management, and employees to implement laws, administrative regulations, and fulfill their obligations of integrity and diligence, adhere to legal operations, and pay taxes in accordance with the law. Honesty, fulfill legal and ethical responsibilities.

At the same time, the company has established and improved systems for information disclosure, internal control, asset management, cost management, and financial report management in accordance with laws and regulations and the requirements of related parties. It has further improved the company’s management system, improved the level of standardized operations, and made it legal for the company. , Compliance operation provides system guarantee.

(2) Pay taxes in good faith according to law

Paying taxes in accordance with the law is an obligation of an enterprise, and it is also a concrete manifestation of the enterprise's social responsibility. While taxation guarantees the sustained and healthy growth of national finances, it also has a positive guiding role in accelerating the transformation of economic development mode, optimization and upgrading of industrial structure, energy conservation and emission reduction, and the practice of low-carbon economy. In 2020, the company paid 1.6021 million yuan in taxes, making a positive contribution to national taxation and local economic development.

(3) Building a harmonious relationship between related parties

The company pays attention to the relationship between related parties (customers, employees, shareholders, suppliers, partners, society), especially the long-term strategic partnership with suppliers and partners, in order to meet the needs of the company's strategy.

• Establish strategic partnerships with suppliers

① Supply rational cooperation company classifies suppliers into three categories: commercial, priority, and strategic partner based on annual purchases and materials, and follows the principle of equal emphasis on quality, cost, delivery and service. The company attaches great importance to the hidden cost management of supply (hidden costs such as procurement cycle, inventory, transportation, etc.). The company incorporates suppliers into the timely delivery system to minimize inventory and reduce the company's total cost.

②Supplier appraisal The company adjusts the content of the list of qualified suppliers based on the comprehensive appraisal results of suppliers every year. When entering into annual supply agreements with priority suppliers and strategic partner suppliers, the company also signs quality technical agreements as attachments to standardize and evaluate supply.

Supplier quality management ability.

2. Focus on customer needs

Providing customers with reliable products and solutions is one of the important social responsibilities of an enterprise. The company has made innovations and breakthroughs in product quality management and new product development.

① Establish a product quality tracking system. The products produced by the company implement a strict inspection system. The next process must be inspected on the previous process, and the quality inspector must implement a strict comprehensive inspection system.

②Establish a quality management team The company organizes the establishment of a quality management working group. When the market reports quality problems or accidents, the quality team will work with the market, technology, procurement, quality and production departments to solve the problems and implement the supervision of the implementation of improvement measures. .

3. After-sales service management

The company summarizes service and quality complaint information every month, and addresses major or repetitive quality issues.

The questions are fed back to the technical, quality, and production departments in a timely manner. Quarterly reports are analyzed and summarized every quarter. The technical, quality, and production departments conduct cause analysis, propose improvement measures, and communicate them to each department in the form of document notifications, and each department will implement and implement the report. Improve. The company has also formulated service systems related to after-sales service management, service commitments and service plans, clarifying the responsibilities of the service department, after-sales service content, standards and service implementation procedures.

(4) Provide customers with high-quality products and services

The company has always adhered to the tenet of "Quality Quality, Customer First", and will improve product quality and establish a brand as the common goal of all employees. The customer satisfaction survey score in 2020 is 97.31 points, which exceeds the annual target value of 95%. This is the customer's recognition of the company's product quality and service quality, and an affirmation of the company's brand.

4. Social responsibility fulfilled in promoting the sustainable development of society

(1) Protection of the rights and interests of shareholders and creditors

1. Shareholders are the foundation of the survival of an enterprise, and their approval and support are the driving force for the sound development of the enterprise. As the company's investor, shareholders enjoy the owners' rights to share profits, make major decisions, and choose managers. The creditor, as the company's advance payment, has the right to recover the principal and interest of the loan when it is due. It is the company's duty and responsibility to protect the rights and interests of shareholders and creditors and treat all shareholders in a fair and open manner.

During the reporting period, the company strictly followed the "Company Law" and other relevant provisions of laws, regulations and systems, through corporate governance self-inspection and supervision activities, rectified the company's internal control issues, revised and improved the "Articles of Association". Continuously strengthen and improve corporate governance, honestly standardize company operations, establish and improve internal management and control systems, and effectively improve the company's management level.

• Company related honors

(2) Protection of company employees' rights and interests

Employees are the company's most important resource and wealth. The relationship between the company and its employees is not just the relationship between employment and being employed, but a cooperative relationship of interdependence and harmonious development. The company established and improved the labor union organization to promote the company's healthy and harmonious development.

1. Build harmonious labor relations, guarantee and safeguard the basic rights of employees. The company strictly abides by the "Labor Law", "Labor Contract Law", "Labor Contract Law Implementation Regulations" and other laws and regulations. The company follows the principles of equality, voluntariness, and consensus. Sign labor contracts with all employees to protect their legal rights and interests. The rate of signing labor contracts reaches 100%. The company has no labor disputes arising from labor relationship management throughout the year.

2. Salary and benefits. For employees, salary is a manifestation of personal value and social status, and is the most effective incentive method in line with social value orientation. The company has continuously improved its labor management system, strengthened labor management, and established a complete salary management system for many years. The Human Resources Department has established a "remuneration design system based on employee abilities", which determines remuneration based on personnel's relevant years of service, education, and work ability. The company's salary and welfare policies comply with relevant national laws and regulations, and monthly wages are paid in full and in time. Employee remuneration comprehensively considers external competitiveness, internal corporate and incentives, the company’s overall remuneration level, and corporate benefits to determine a reasonable range. The company pays social insurance for its employees, and implements paid vacations, physical examinations and other benefits.

3. Training and development The company has established a complete training system. Based on the talent reserve requirements for the company’s development and the employees’ personal career development, it has formulated a talent echelon development plan according to the principle of stratification and classification, and in the reporting period according to the plan. Be implemented. At the same time, the company strives to develop an internal high-tech talent team, combined with external resources, implements diversified training methods, systematic training courses, and strives to promote the evaluation and improvement of training effects. Through systematic training, employees can improve their knowledge, skills, working methods and concepts, increase their sense of belonging and cohesion, and enable employees to achieve continuous improvement and surpassing of their self-worth.

4. Caring for employees. The company invested in the construction of a comfortable living area for employees, equipped each employee dormitory with air conditioners, water heaters, desks, wardrobes and bathrooms, allowing employees to live in the well-equipped dormitory of the employee group. In terms of cultural life, organize and carry out cultural and sports activities to improve the spare-time cultural life of employees. The annual Mid-Autumn Festival and Spring Festival provide related benefits. The enterprise trade union often organizes cultural and sports activities and sports competitions. The New Year party is held every year. Compiled, self-created and self-acting programs; every year on Women’s Day, the company will provide benefits to female employees.

The company leaders attach great importance to the love fund and poverty alleviation work. The senior leaders listen to the voices of employees in a timely manner, understand the implementation effects of employee support and safeguard measures, and further solve the actual problems and difficulties of employees in work and life. The employee love fund is established every year. Provide financial support to some employees who have difficulties or illnesses, and make non-targeted donations every year to contribute to the development of charity. For named employees’ complaints, the company has opened a hotline for the general manager to ensure a smooth passage for employees’ complaints. Regardless of suggestions or opinions, the office has carried out detailed processing and feedback on the information provided by employees at all levels to let employees know that the company pays attention to employees’ ideas, the company values ​​employees’ ideas, and rewards employees for reasonable suggestions to the company. .

5. Implementation and improvement of safety and environmental management. In order to ensure safe production, the company signs responsibility details and letters of responsibility at all levels. All departments and workshops start with improving safety awareness, strengthening safety concept propaganda, and implementing various rules and regulations to systematically establish and maintain a safe production management system. The general manager of the company signs the "Safety Production Responsibility Letter" with the heads of various departments and workshops to refine and quantify the safety objectives in each workshop, and then from the workshop to every employee.

In carrying out safety publicity and education, the company adopts expert training, watching safety education videos, and separate training based on job safety characteristics. Adhere to the three-level safety education for new employees, and conduct safety education for management personnel, team leaders, and technical personnel. Make full use of safety conferences, middle-level cadre meetings, all-staff meetings, etc. to deploy, publicize, and communicate safe work, so that all employees are aware of the "people-oriented, caring for life" safe work concept, and propose from "self-injury" to "protecting others" The safety awareness of “no harm” has changed.

The company conducts safety education and training for all employees, regularly publicizes safety laws and regulations, and analyzes safety incidents. The workshop is educated on the characteristics of production, and the teams and groups are educated on production safety issues. For safety accidents that have occurred, analyze the causes of emergency accidents, formulate preventive measures, conduct on-site inspections of the same type of safety risks, and carry out safety education for all employees. At the same time, various themed "Safety Month" activities are held every year to strengthen education and solidify the management system in view of the main safety hazards exposed during the production process.

(3) Protection of the rights and interests of suppliers and customers

The company adheres to the principles of honest operation, mutual benefit, and common development, and focuses on protecting the legitimate rights and interests of various market entities. Insist on improving quality from the source to achieve sustainable development. Adhering to the concept of "cooperation and win-win", the company conducts "bundling" management of suppliers and partners, and also dispatches professionals to provide on-site guidance and improvement to suppliers and partners to achieve a win-win situation.

1. Establish a strategic partnership with suppliers

①Supply rational cooperative company. According to the annual procurement volume and procurement materials, the suppliers are classified into three categories: business type, priority type and strategic partner type, and follow the principle of equal emphasis on quality, cost, delivery and service.

The company attaches great importance to the hidden cost management of supply (hidden costs such as procurement cycle, inventory, transportation, etc.). The company incorporates suppliers into the timely delivery system to minimize inventory and reduce the company's total cost.

②Supplier assessment. The company adjusts the content of the list of qualified suppliers based on the comprehensive evaluation results of suppliers every year. When entering into annual supply agreements with priority suppliers and strategic partner suppliers, the company also signs quality technology agreements as attachments to standardize and evaluate suppliers' quality management capabilities.

2. Focus on customer needs

Providing customers with reliable products and solutions is one of the important social responsibilities of an enterprise. The company has made innovations and breakthroughs in product quality management and new product development.

① Establish a product quality tracking system. The products produced by the company implement a strict inspection system. The next process must be inspected on the previous process, and the quality inspector must implement a strict comprehensive inspection system.

②Establish a quality management team. The company organizes and establishes a quality management working group. When the market reports quality problems or accidents, the quality group will work with the market, technology, procurement, quality and production departments to solve the problems and implement the supervision of the implementation of improvement measures.

3. After-sales service management

The company summarizes service and quality complaint information every month, and timely feedbacks major or repeated quality problems to the technology, quality, and production departments, analyzes and summarizes quarterly to form a quarterly report, and analyzes the causes of the technology, quality, and production departments, and proposes improvement measures , Communicated to all departments in the form of document notifications, etc., and implemented and improved by each department. The company has also formulated service systems related to after-sales service management, service commitments and service plans, clarifying the responsibilities of the service department, after-sales service content, standards and service implementation procedures. At the same time, in order to quickly handle customer complaints, maintain the company’s reputation, refine the responsibilities, principles and procedures for handling complaints, strictly follow the standards and requirements of the quality system for procurement, acceptance, warehousing, storage, processing, production, inspection, packaging, transportation, The whole process of commissioning and after-sales service is controlled to meet the needs of users to the greatest extent and to ensure quality and progress.

(4) Environmental protection and sustainable development

The company attaches great importance to environmental protection and has obtained ISO 14001 environmental management system certification and ISO 45001 occupational health and safety management system certification. In recent years, we have been continuously improving the environmental and occupational health and safety management systems. The company has formulated a series of procedural documents on environmental protection and occupational health and safety management, such as "Environmental Factor Identification and Judgment Control Procedure", "Waste Control Procedure", "Compliance Evaluation Management Procedure", "Hazard Source Identification and Control Procedure" Risk Evaluation Control Procedures, Emergency Preparedness and Response Control Procedures, Non-conformity, Corrective and Preventive Measures Control Procedures, Monitoring and Measurement Device Control Procedures, and other management procedures, and the relevant regulations of the management procedures are strictly implemented. In addition, according to environmental protection requirements, the company's production facilities have been transformed and improved. Entrust professional qualified units to conduct inspections on waste water, waste, and noise regularly every year, such as the collection and treatment of waste gas, waste oil and scrap metal, the transformation of storage management of hazardous chemicals, the elimination and isolation of noise, etc. In addition, the company has also strengthened the publicity, education and training of employees' environmental protection knowledge, so that employees are aware of the importance of environmental protection, and environmental protection starts from themselves and from around. Actively implementing the environmental protection measures system is also conducive to the company's safe and energy-saving production and operation and promotes the company's healthy and sustainable development.