Introduction

This report is an annual report and marks the fourth time that Qunsheng Group Co., Ltd. has published a social responsibility report. It primarily highlights the company’s social responsibility performance in 2024. Given the long-term and ongoing nature of social responsibility efforts, Qunsheng Group has thoroughly implemented the Scientific Development Concept and is striving to achieve maximum integrated value—economic, environmental, and social—in its actions and performance.

Time range:

January 1 – December 31, 2024: Some content exceeds the scope mentioned above.

Basis for preparation:

The State Council’s State-owned Assets Supervision and Administration Commission’s “Guiding Opinions on Central Enterprises’ Fulfillment of Social Responsibilities”;

The “Guidelines for Preparing Corporate Social Responsibility Reports of Chinese Enterprises” (CASS-CSR3.0) by the CSR Center of the Department of Economics, Chinese Academy of Social Sciences;

Global Reporting Initiative Sustainability Reporting Guidelines (GRI G4);

International Standard ISO 26000 Guidance on Social Responsibility (2010).

Data description:

All data cited in this report for 2024 are sourced from the company’s official documents and statistical reports.

Reporting System:

Annual Information Disclosure —— Annual Social Responsibility Report;

Daily Information Disclosure —— Company Website Column:

Founded in 1989, Qunsheng Group is headquartered in Yongkang—the “Capital of Hardware in China.” Over more than two decades of hard work and perseverance, the people of Qunsheng have created a remarkable success story for a locally-based Yongkang enterprise. From a small workshop with just over ten employees at its inception, the company has grown into a comprehensive holding group engaged in fields such as housing fittings and building materials manufacturing, real estate investment, and financial investments. Today, Qunsheng Group has over a dozen directly affiliated subsidiaries nationwide and several modern production bases covering a total area of more than 700,000 square meters. The company employs over 2,000 people, with total assets exceeding 10 billion yuan and net assets reaching approximately 8.5 billion yuan. For many years, the company’s economic indicators and overall strength have maintained rapid growth. It was among the first enterprises in the Jinhua region to be listed on the “Top 500 Chinese Private Enterprises,” and its ranking has steadily improved year after year. Alongside achieving significant economic benefits, Qunsheng Group has also earned high recognition from all sectors of society and governments at various levels, receiving hundreds of honors including National-level Enterprise Honoring Contracts and Keeping Promises, one of the “Top 100 Chinese Private Service Enterprises,” a leading enterprise in China’s door industry, an AAA-rated bank credit enterprise, high-tech enterprises at various levels, and a demonstration enterprise for patents.
The Board of Directors of Qunsheng Group has pooled ideas and formulated a medium- and long-term development strategy for the company: Guided by the overarching principle of focusing on core industries through specialization while diversifying into related industries, Qunsheng Group will build upon its strong position in the housing fittings and building materials industry centered around Qunsheng Doors and Windows. On this foundation, it will expand its investments into three key areas—real industry investment, real estate investment, and financial investment—gradually establishing a diversified industrial cluster under the Qunsheng brand. This approach will not only foster core competitiveness in each specialized field but also leverage synergies across the entire industrial group, ultimately realizing the company’s vision of becoming the “World Kingdom of Housing Fittings.”

1. Shift mindsets and proactively build a social responsibility system.

The company has established a modern corporate governance structure in accordance with the law, perfected its Articles of Association, and, taking the Articles of Association as the central document, has accordingly revised and improved relevant rules and regulations. This has clearly defined the responsibilities of all relevant personnel, thereby creating a mechanism in which decision-making bodies, supervisory bodies, and operational management teams each fulfill their respective roles, effectively check and balance one another, and coordinate their efforts harmoniously. The company’s mission is to promote the harmonious development of all stakeholders, including shareholders, employees, society, cooperative customers, and suppliers. The design and management of the company’s work systems facilitate the listening to and incorporation of diverse opinions and suggestions from employees and customers, and also foster effective communication and skill-sharing across different departments, positions, and regions.

In the process of designing and managing jobs and positions, the company has prepared a “Job Description” for each position. Moreover, the company places great importance on listening to and incorporating employees’ various opinions and suggestions—for instance, by placing 30 suggestion boxes in prominent locations throughout the plant, setting up an online feedback box on the company’s website, and assigning dedicated personnel to receive and document suggestions. After the office compiles all suggestions, they are submitted to senior management for discussion. Rationalized suggestions will be adopted and rewarded. Based on extensive input from all sectors, the company has established a flat organizational structure that reduces communication layers and enhances operational efficiency. Additionally, cross-functional teams such as the scoring-item management group have been set up to facilitate horizontal communication, break down departmental barriers, and thereby promote internal collaboration, empower innovation, and continuously refine and develop the company’s culture.

Corporate Spirit: Boldly explore, dare to take risks, work diligently and tenaciously, and benefit society.

Business Philosophy: Pursuit of excellence, honesty and integrity, and leading the trend.

Development Approach: Pursue specialized development, foster diversification, and advance simultaneously across three key areas to build a thriving community and realize the vision of “a century of community growth and a century of brand excellence.”

Development Goal: Strive to build Qunsheng Door Industry into the nation’s largest enterprise specializing in door and building materials; and endeavor to create a first-class brand, first-class quality, first-class service, and first-class management.

In strict accordance with its strategic plan, Qunsheng Group has integrated internal resources and adjusted its industrial structure, resulting in steadily improving performance and exceeding targets across all key indicators. In 2024, the group’s total revenue reached 776 million yuan, making it the only company from Yongkang to be listed among China’s Top 500 Private Enterprises. The development of Daqunsheng is brimming with vitality.

As economic globalization and the market economy continue to develop, corporate social responsibility can enhance business efficiency, build a strong reputation and establish a positive corporate image, reflect the company’s cultural orientation and values, promote sustainable development and improve the quality of life for the general public, help maximize the interests of all stakeholders, and serve as a foundation for strengthening corporate capabilities and enhancing competitiveness—concepts that are increasingly recognized by more and more enterprises. Given the current international and domestic situation, it has become an inevitable trend and a widely shared aspiration for enterprises to assume social responsibility and establish comprehensive social responsibility systems. The group company has vigorously promoted its social responsibility system and fostered a shift in mindset, ensuring that the notion—that enterprises lacking a sense of social responsibility simply cannot maintain a foothold in today’s increasingly fierce competition—permeates every aspect of the business. This has not only accelerated the establishment of the social responsibility system but also driven the company’s own growth and development.

II. Credit Development

Operating with integrity and paying taxes in accordance with the law have been the corporate management principles that Qunsheng Group has consistently upheld and strived for over the years. The company maintains long-term legal and tax advisory contracts with Samsung Law Firm and its internal legal department, providing guidance on the expansion of the company’s economic activities as well as on the drafting and performance of contracts. At the same time, the company rigorously standardizes its internal rules and regulations, leveraging various resources to foster a culture of honest and lawful business practices—from top to bottom. These efforts include:

1. By establishing a dedicated Marketing Planning Department and a Contract Management Leadership Group, we will take unified responsibility for and manage the performance of various economic contracts as well as post-sales follow-up services. By clearly defining the job responsibilities of each department, we will effectively standardize employees’ duties and obligations.

2. By establishing offices and direct-sales outlets nationwide on a year-round basis, we strengthen interaction and communication between the company and its customers, promptly relaying customer feedback to senior management. Customer satisfaction has consistently remained above 90%.

3. Leveraging the company’s advanced information technology resources, we enable 24-hour connectivity and communication between the company and its customers via the internet, striving to address and resolve issues at the earliest possible moment.

4. Actively organize various internal training sessions and lectures to educate employees on the relevant laws and tax-related knowledge involved in foreign trade operations and contract negotiations, and strive to foster a positive atmosphere of integrity and ethical business practices throughout the company.

III. Strengthen scientific management and emphasize environmental protection.

1. Environmental Management

The company has successively obtained certification for its “three-in-one” management system, which integrates the ISO9001 quality management system, the ISO14001 environmental management system, and the ISO45001 occupational health and safety management system. This integrated management system demonstrates the company’s strong commitment to social responsibility by providing comprehensive protection for the surrounding environment and the health and safety of its employees. Since establishing this system, the company has experienced no production accidents, equipment failures, or received any environmental complaints. The company promotes clean and civilized production practices, adopts advanced domestic and international production technologies, uses low-pollution or non-polluting raw materials and fuels, and equips its production facilities with energy-efficient, safe, and environmentally friendly equipment that has undergone national 3C certification. The company has established an environmental management leadership team headed by the Deputy General Manager (who also serves as the Director of Environmental Supervision), clearly defining the environmental management responsibilities of each team member. The company implements daily environmental monitoring and inspection activities in accordance with the requirements of the environmental management system and submits regular monthly reports to the environmental protection authorities on pollutant emissions and the operational status of wastewater treatment facilities. As a key drafting unit, the company actively participated in the formulation of two environmental protection standards: "Technical Requirements for Clean Production in the Steel Metal Door Industry" DB33/T861-2012 and "Technical Requirements for Environmentally Labelled Products—Wooden Doors and Steel Doors" HJ459-2009.

The company continues to strengthen its efforts in controlling pollution from wastewater, exhaust gases, waste residues, and noise, as well as in energy conservation and emission reduction, achieving remarkable results.

The company’s environmental protection efforts are strictly carried out in accordance with the requirements stipulated in the Environmental Impact Assessment (EIA) approval and the “Three Simultaneities” system. In 2020, Qunsheng Group invested nearly 47.5 million yuan to implement an intelligent wood door factory renovation project within the existing idle factory buildings at No. 18 Tangshan Road, Yongkang Economic Development Zone. The project involved the procurement of advanced production equipment such as CNC four-edge saws for door panels, CNC machines for milling keyways in locks, and management software and hardware including MES systems. Additionally, the company acquired new environmentally friendly equipment. Currently, the company boasts a relatively advanced set of production facilities, including two automatic coil unwinding and leveling machines, eight large presses each capable of handling over 1,000 tons, three automated production lines for door frames and door panels, more than ten multi-station combination punching and welding machines, and three automatic painting lines. The company has also established a centralized compressed air station equipped with energy-efficient screw-type air compressor units, a wastewater treatment plant with a daily processing capacity of 800 tons, and installed an online monitoring system. By leveraging advanced technologies and equipment and implementing effective process management, the company has significantly improved its key resource and energy utilization indicators. At the same time, the company has intensified supervision over pollution sources—including gaseous emissions, wastewater, noise, and solid waste—adopting comprehensive control measures that have enabled it to meet emission standards for air pollutants and achieve zero discharge of industrial wastewater from its premises. For domestic sewage, the company employs biological treatment and promotes comprehensive resource utilization. As for industrial wastewater, it undergoes qualified treatment before being discharged in compliance with standards. Regarding solid waste disposal, the company has signed a commissioned treatment contract with Jinhua Laiyi Yuan Environmental Technology Development Co., Ltd. for regular disposal services. The company is committed to producing green products and building a green factory.

2. Reduce pollution and emissions

The company strictly adheres to national and local standards and regulations, conducting regular inspections—either independently or through the environmental protection authorities—of the water, air, noise, and solid waste discharged by the company. It promptly addresses any exceedances of regulatory limits and upgrades its existing older equipment to make it more energy-efficient, environmentally friendly, and resource-conserving.

Focusing on enterprise production, we are implementing the “Five-Water Co-Governance” initiative. First, we promote clean production: In the course of setting up new production lines at our company, we conducted a thorough investigation into various innovative production lines available on the market. We have now put into operation an integrated production line that combines phosphating, plastic spraying, painting, paper drying, paper stripping, and top-coating processes. All production wastewater is routed to the wastewater treatment plant for processing. To ensure even better control over discharged wastewater, the wastewater treatment plant has been equipped with an online monitoring system; currently, all treatment results remain within the prescribed limits. Before treatment, the concentrations of total phosphorus (TP) and chemical oxygen demand (COD) in the discharged wastewater were 90 mg/L and 280 mg/L, respectively. After treatment, these values have dropped significantly to 0.2 mg/L for TP and 90 mg/L for COD, meeting the Class I standards stipulated in GB 8978-1996, the "Integrated Wastewater Discharge Standards," and thus satisfying environmental protection requirements. Approximately 30% of the treated water can be reused comprehensively for purposes such as preparing chemicals for wastewater treatment, irrigating ponds, cleaning operations, flushing toilets, powering air pumps, and circulating heat exchange in oil pump systems. The remaining portion is discharged externally, and all discharged wastewater meets stringent environmental discharge standards. Regarding exhaust gas treatment, since 2010, the company has invested over 10 million yuan in upgrading its 15 existing oven production lines—from those originally heated by oil or coal to gas-fired systems. All heating processes now rely on clean, high-efficiency natural gas, greatly reducing sulfur dioxide emissions into the atmosphere. As a result, ambient air quality within the factory premises and along the factory boundary now complies with the Class II Zone, Phase II standards set forth in GB 13271-2001, the "Emission Standards for Air Pollutants from Boilers." To further reduce noise pollution affecting the external environment, while adopting multi-station combined punching machines and combined welding equipment, we have also rationally arranged noise sources and effectively isolated them using the factory buildings themselves. This approach ensures that noise levels meet environmental protection requirements, with factory boundary noise levels complying with the Class III standards specified in GB 12348-1990, the "Industrial Enterprise Boundary Noise Standards" (less than 65 decibels during daytime and less than 55 decibels at night). The company’s solid waste mainly consists of recyclable resources generated during the production process, including steel plate and pipe scraps, waste paper, and discarded packaging materials—all of which are recycled and reused at a rate of ≥98%. Non-recyclable solid wastes are collected centrally in trash bins and containers and then transported to the municipal waste landfill for disposal. A small quantity of hazardous solid wastes—such as paint sludge and oil-contaminated gloves—is collected in specialized ton bags and sent to designated hazardous waste disposal centers for proper treatment.

Second, we are promoting production savings by integrating the advancement of Party building and the effective utilization of Party members’ roles with the optimization of enterprise process flows, the reduction of enterprise water consumption, and the cultivation of daily frugality habits among employees. Party members take the lead, and Party-mass collaboration drives the effort forward. The company has also hired water-saving experts at a high cost to conduct training sessions for employees, installed water meters at multiple stages of the production process to enable real-time monitoring, and is committed to achieving water conservation in every possible way.

3. Resource conservation

The company monitors the use of resources and energy in real time, firmly preventing any form of resource waste. We are strengthening electricity management in office spaces and making rational allocations of work orders in the workshop, ensuring that not a single drop of water, a single drop of oil, or a single kilowatt-hour of electricity is wasted.

The company’s various environmentally friendly materials are neatly organized and stored, and each area operates in an orderly manner. The company has also established dedicated environmental, fire safety, sanitation, and on-site management teams. Whenever the company detects employees violating its regulations or failing to cherish and protect the environment, it will immediately announce such violations on the company’s internal management platform and impose point deductions as penalties. This encourages employees to strictly adhere to the company’s labor discipline and rules and regulations, and consciously develop a sense of responsibility for caring for and protecting the environment. By fully leveraging its own photovoltaic production resources and in conjunction with the national “Golden Sun” project (20 MW), the company has invested over 100 million yuan to install solar photovoltaic power generation systems on the rooftops of all eligible buildings within its existing factory premises. Once completed, the power plant at the Guangcheng North Factory will annually offset an electricity load of 200,000 to 300,000 kWh per month—accounting for more than half of the entire factory’s electricity consumption—and has thus achieved significant economic and social benefits.

Workplace safety

1. Safety Production Management

The company adheres to the management philosophy of “safe production” and has a dedicated safety officer responsible for overseeing safety matters. Each year, the company signs safety responsibility agreements with township and subdistrict authorities. All newly hired employees must undergo training on safety-related knowledge and pass an assessment before being allowed to perform production operations in the workshop. Each employee in the workshop is provided with appropriate personal protective equipment. In addition, professional personnel are regularly assigned to conduct awareness-raising sessions and training for company employees, ensuring that safety responsibilities are effectively implemented and borne by every single employee.

The company has developed a series of systems and plans, including the “Fire Safety Management System,” “Emergency Evacuation and Fire-Fighting Exercise Procedures,” “List of Employees Subject to Occupational Hazard Exposure for Medical Checkups,” “Safety Production Responsibilities of Qunsheng Group,” “Operational Guidelines for Handling Work-Related Injury Accidents,” “Fire Safety Responsibility Letter of Qunsheng Group,” “Safety Production Management Responsibility Letter of Qunsheng Group,” “6S Management Promotion Training Plan,” “Phase II Implementation Plan for 6S,” and “Implementation Measures for the 6S Slogan Competition.” These systems and plans are designed to ensure employees’ occupational safety and production efficiency, safeguard their rights and interests, and boost their work enthusiasm.

2. Investment in safe production

In accordance with national laws and regulations, the company annually allocates 10% of its annual profits to regularly inspect and replace fire hydrants and other fire safety and security equipment. It also promptly upgrades and maintains aging machinery, promptly identifies and addresses any potential safety hazards in all relevant processes, and ensures the adequate supply and proper use of personal protective equipment necessary for employees to guarantee safe production.

3. Safety Production Education and Training

In addition to the routine training and assessments conducted internally within the company, enterprises also regularly invite experts each year to come to the company for training on safe production practices. Furthermore, they organize employees to participate in safety drills—such as fire evacuation exercises—and emergency response simulations, firmly instilling a strong sense of safety awareness among employees rather than merely treating “safe production” as a mere slogan or catchphrase.

4. Safety Production Inspection

Under the leadership of the person in charge of safe production, the company conducts self-inspections twice a week at the team level and carries out cross-checks among departments. Any safety hazards identified are promptly addressed and rectified, and the company analyzes these issues and summarizes its experiences. Since the establishment of the factory, the company has not experienced a single major safety accident. In 2024, the company achieved a 100% compliance rate in wearing personal protective equipment and a 100% participation rate in medical examinations for high-risk positions, with no major safety incidents or fire accidents occurring.

Protection of the rights and interests of suppliers, customers, and consumers

Suppliers, customers, and consumers are the providers of the company’s products, the deliverers of its services, and the ultimate consumers of those products. Together with the company, they co-create and generate value. The company adheres to the principles of integrity, mutual benefit, and equal consultation, strictly fulfills its contractual obligations, builds and maintains strong relationships with its partners, establishes platforms for communication and exchange, leverages complementary strengths, and fosters a win-win partnership.

1. The company pays attention to and safeguards the interests of its suppliers, achieving win-win outcomes with them.

Maintaining a strong strategic partnership with suppliers has been a key objective of the company’s efforts in recent years. To effectively evaluate and select qualified suppliers, optimize the company’s supply structure, enhance the company’s supply system, and elevate supply standards—while ensuring that suppliers’ product quality, pricing, and production-delivery capabilities consistently meet the company’s requirements and that they provide high-quality after-sales services—thus guaranteeing the smooth operation of the company’s production, the company has established and continuously improved its supplier management system and supplier evaluation framework. The company manages supplier files and updates them promptly, maintains a “List of Qualified Suppliers,” organizes supplier qualification assessments, conducts management and performance evaluations of transactions with qualified suppliers, and incorporates sample verification and supply quality management into the assessment criteria.

2. Strengthen support for customer service and grow together with our customers.

Our extensive network of distributors is the primary and direct contributor to the company’s sales revenue and net profit, serving as the foundation upon which the enterprise relies for its survival and growth. The company believes that only by consistently upholding our commitment to our distributors—providing them with comprehensive services and high-quality products—can we truly realize our corporate value. Ultimately, the company’s development hinges on the growth of our distributors, and growing together with our distributors is a key principle underlying our business management.

The company maintains a long-term, collaborative partnership with its customers, providing franchisees with comprehensive services such as order-planning guidance, employee training, and management skills development to help them establish sound organizational structures. In 2022, the company further intensified its support for customers by offering services including preparation of store-opening plans, training on product knowledge for employees, store management techniques, merchandising skills, store-manager training, and ERP software utilization. Additionally, the company provides on-site supervision, standardizes and streamlines operational procedures, and offers guidelines and training for sales consultants. The company also conducts sales training specifically tailored to key marketing positions. Through these measures, the company ensures the effective implementation of relevant marketing and support policies, fosters the growth and development of promising agents and distributors, continuously optimizes its customer team, and guarantees the healthy development of its distribution channels, thereby achieving win-win outcomes for both the company and its customers.

3. Take consumer rights as the starting point and enhance product and service quality.

The company strictly controls product quality by implementing a comprehensive quality monitoring system that covers everything from fabrics to finished products, thereby ensuring superior product quality. All products manufactured and sold by the company are provided under a one-stop service model—starting from the moment of production, each product is assigned a dedicated specialist who takes full responsibility for its ongoing support and tracking. In recent years, in an effort to further enhance the quality of after-sales service and truly put customers’ interests first, the company has established offices nationwide. These offices promptly relay customer feedback back to the company and are staffed with full-time personnel specifically trained in after-sales installation and commissioning, who provide continuous follow-up services.

Since 2008, the company has consistently been recognized annually by the State Administration for Industry and Commerce as a “Contract-Honoring and Credit-Respecting” unit, by the Zhejiang Provincial Administration for Industry and Commerce as an “Annual Credit Rating AAA Enterprise,” and by the Jinhua Municipal Administration for Industry and Commerce as an “Annual Credit Rating AAA Enterprise.” Moreover, the company was among the first to obtain the “Made in Zhejiang Certification.”

Harmonious Labor Relations

1. Improve the employee protection system and effectively safeguard employees’ rights and interests.

The company strictly adheres to and fully implements laws and regulations such as the Civil Code of the People’s Republic of China, and enters into written employment contracts with employees in accordance with the principles of legality, fairness, and voluntariness. The company has consistently upheld a people-oriented management philosophy, aligning employees’ personal values with the company’s core values and thereby fostering a corporate culture centered on the pursuit of quality. The company has achieved a 100% rate of signing employment contracts with its employees. It carries out the performance, modification, termination, and ending of employment contracts in strict compliance with the law. The company has established formal and lawful labor relationships with its employees, resulting in zero labor disputes. It provides employees with equal opportunities for employment and promotion, offers them identical benefits and welfare treatments, actively promotes mutual development between the company and its employees, and safeguards their legitimate rights and interests. The company actively builds internal platforms for communication and exchange, using various channels—including the company website, the General Manager’s mailbox, the Chairman’s mailbox, the company newsletter, and symposiums—to strengthen communication and interaction between the company and its employees. It proactively adopts employees’ rational suggestions, enhances corporate cohesion, and promotes the company’s harmonious and stable development.

We have established and improved our salary and benefits system to strengthen employee compensation incentives. In 2012, the company reorganized its organizational structure and conducted a comprehensive reassessment and adjustment of its performance appraisal and compensation systems. In terms of the compensation system, the company optimized salary plans and bonus schemes based on changes in local wage levels and industry salary benchmarks, ensuring that employees’ compensation adjustments keep pace with the company’s development. The company strictly adheres to the principle of combining equitable distribution according to labor contribution with rigorous performance appraisal, providing employees with reasonable compensation packages and fostering harmonious and stable labor relations. On the other hand, the company has established a comprehensive performance management system, employing a combination of regular and irregular assessment methods. Assessment results serve as the basis for determining employees’ salaries and bonuses, thereby encouraging and motivating employees, igniting their work enthusiasm, and ensuring the company’s healthy and stable growth. In 2024, employee satisfaction reached 88.78%.

2. Social Insurance and Welfare

The company legally makes timely and full contributions to employees’ social pension insurance, medical insurance, work-injury insurance, unemployment insurance, and maternity insurance. In addition, the company regularly provides employees with free annual health checkups and purchases enterprise employee mutual aid medical insurance for all currently employed staff each year. Furthermore, the company has established a green channel with partner hospitals to provide even greater protection for employees who require medical treatment.

3. Assistance to Alleviate Poverty

In July 2015, the Group Party Committee and the Yongkang City Charity Federation jointly initiated and officially established the Qunsheng Xu Family Charitable Branch. The Qunsheng Xu Family Charitable Branch is dedicated to serving employees in need, providing timely assistance to those facing financial hardship or sudden disasters. Whenever society calls for help, the branch actively encourages all Party members and employees to contribute their enthusiasm and compassion through concrete actions, thus fulfilling their commitment to serving the people. On that same day, our city also saw the establishment of its first corporate charitable volunteer organization—the Qunsheng Charitable Volunteer Team—currently comprising 50 volunteers. The branch will uphold the principles of putting people first, caring for the livelihood of the people, alleviating poverty and helping those in distress, and supporting charitable and public welfare causes. It will focus on providing assistance to 50 particularly disadvantaged employees within the company, promoting the spirit of volunteerism, and fostering stability within the company’s workforce as well as harmonious social development.

4. Democratic Management

The company establishes and improves its trade union organization in accordance with the law, safeguards employees’ rights and interests, and supports the trade union in carrying out various activities in compliance with the law. The company maintains regular communication with the trade union and actively responds to reports, suggestions, and opinions submitted by the trade union and its representatives. The chairman of the trade union participates in the drafting and discussion of rules and regulations that directly affect employees’ interests and ensures their deliberation and approval through channels such as the Employees’ Congress. The company’s administration signs a “Collective Agreement” with the trade union and establishes a mechanism for collective wage negotiations. For major issues of relevance, the company insists on holding an Employees’ Congress to adopt such matters by way of voting before putting them into effect.

5. Employee Education and Talent Development

The company firmly embraces the theme of "caring for employees and fostering a harmonious enterprise," continuously improving its mechanisms for employee education, training, and talent development. With a focus on establishing a virtuous cycle of talent cultivation, selection, and utilization, the company has established and refined mechanisms for corporate learning, training, and the reserve of future talent. The company places great importance on building a talent pool of managerial personnel, strengthening management training for staff at the grassroots, mid-level, and senior levels. Outstanding mid- and grassroots-level managers are sent to advanced training programs, ensuring that the employee training system and promotion platforms are constantly enhanced. Through these training initiatives, the company continually elevates the overall quality of its employees, broadens their career opportunities, strengthens its talent pool, ensures the smooth operation of all departments, and steadily raises the company’s strategic standing.

Social participation

1. Public welfare undertakings

The company adheres to the guiding principle of “bold exploration, willingness to take risks, hard work and perseverance, and contributing to society.” It actively participates in public welfare initiatives, formulating strategic plans for social responsibility and specific programs to support charitable causes. The company prioritizes areas such as “agriculture, rural areas, and farmers,” education, and environmental governance as key focus areas for its philanthropic efforts. The company has clearly defined the responsibilities of relevant departments—including the Party Committee Office, the Trade Union, the Youth League Committee, and the Planning Department—in carrying out public welfare activities. Specifically, the Party Committee Office is responsible for unpaid blood donation and paired assistance for poverty alleviation; the Trade Union manages charitable donations; the Youth League Committee organizes community awareness campaigns; and the Planning Department oversees internship programs for college students. Public welfare initiatives have been integrated into the company’s daily operations. The company has launched “village-enterprise pairing” programs, established educational funds and scholarships, and provided funding for public welfare activities such as the “Five-Water Co-Governance” initiative, thereby supporting the development of education and environmental governance.

Field	Main project	Social Performance
Social donation	In 2024, 512,400 yuan was donated through the Yongkang Charity Federation.
Community Development	In 2024, the Senior Citizens Association provided support of 71,750 yuan for the new rural construction in the community. In collaboration with the school, we are organizing a “Hand-in-Hand for Love” event.	A favorable socio-cultural environment has been established. Enhanced corporate visibility and corporate image. Attracted numerous talents. Receive numerous social honors.
Social employment	In 2024, employment was provided for over 2,000 people, and the Yongkang area paid 35.36 million yuan in taxes.
Medical care	In cooperation with the hospital, we conduct free annual health checkups for employees. Organize employees to participate in voluntary blood donation.

2. Promote employment

Faced with increasingly fierce competition in both domestic and international markets, the company pursues the goals of “equipment modernization, industrial scaling, and high-end product development,” creating more than 4,000 new jobs each year. In the Yongkang region, the company pays taxes totaling 35.36 million yuan, thereby creating favorable conditions for boosting residents’ incomes. Particularly in assisting persons with disabilities to find employment, the company actively fulfills its responsibilities in accordance with relevant regulations, striving to provide them with suitable job opportunities so that they can truly feel the care and concern their employers have for them. This has helped develop the local economy, alleviated some of the pressure on employment, reduced factors contributing to social instability, and demonstrated the company’s commitment to corporate social responsibility.

VIII. Looking Ahead

The company has consistently integrated social responsibility into its overall production, operations, and business management. In 2020, it continued to make significant progress in economic, social, and environmental sustainable development, achieving both excellent economic and social benefits. Moving forward, we remain committed to striking a harmonious balance between economic and environmental benefits. In our management practices, we will continuously learn from and refine our social responsibility management system, uphold integrity in business operations, pay taxes in accordance with the law, further optimize our industrial structure, promote the development of a circular economy, conserve energy and resources, support public welfare initiatives, fully leverage scientific and technological advancements and innovation, enhance our safety governance capabilities, implement major ecological restoration and environmental improvement projects, improve employees’ working conditions, and achieve win-win cooperation with customers, suppliers, and other stakeholders—thus fostering positive interaction and shared development between the enterprise and society.

Qun Sheng Group Co., Ltd.

June 27, 2025