Ningbo Tiansheng Company 2024 Social Responsibility Report

Innovation leads new quality development and high-quality services for national defense construction

And Ningbo Tiansheng Company’s 2024 Social Responsibility Report

( 4Year 202)

Prepared by: Sun Guang

Approval: Lixinggen

Ningbo Tiansheng Seals Co., Ltd.

202501years

Table of contents

Part 1 Preface to the report

Part 2 report content

1. Responsibility for employees

2. Products and services

3. Responsibility for protecting the rights and interests of suppliers and customers

4. Bear integrity responsibilities

5. Establishing trade unions and party branches

6. Responsible for environmental protection and occupational health and safety

7. Corporate social responsibility

8. Social recognition

9. Looking forward to 2024

Major corporate events in 2023-2024:

1. In March 2023, the Chairman of the Provincial Committee of the Chinese People’s Political Consultative Conference came to Ningbo Tiansheng Seals Co., Ltd. for investigation

2. In March 2023, Tiansheng Company held a gas turbine sealing technology review meeting

3. In June 2023, the company and the China Nuclear Energy Industry Association will hold a sealing industry technical training class

4. In May 2024, Tiansheng Company held an expert review meeting for the nuclear reactor pressure vessel sealing surface loss test.

5. In July 2024, the company and the China Nuclear Energy Industry Association will hold a sealing industry technical training class

6. Product appraisal meeting for small C-type sealing rings for nuclear-grade pumps, valves and pressure vessels in nuclear power plants in October 2024

Part 1 Preface to the report

1. Report preparation specifications

'Innovation Leads New Quality Development, High-Quality Services National Defense Construction and Ningbo Tiansheng Company's 2024 Social Responsibility Report' focuses on the company's 2024 work and will comprehensively display to all sectors of society important information on the company's fulfillment of social responsibilities in its production, operation and management activities. We sincerely hope that all sectors of society can deepen their understanding of the company through this report, and sincerely accept supervision from all sectors of society, so as to promote the company to do better in fulfilling social responsibilities and building a harmonious society.

(1) Report scope

Reporting organization scope: Ningbo Tiansheng Seals Co., Ltd.

Reported time frame: January 2024 to December 2024

Report release cycle: This report is an annual report

(2) Statement on the objectivity of the report content

This report is compiled entirely based on the company's fulfillment of social responsibilities and building a harmonious society. The content is objective and fair and contains no false information. We are willing to be responsible for the authenticity of the content of this report and accept social supervision.

(3) Description of report data

All contents in this report are derived from the company's actual situation or data.

(4) How to obtain:

This report is available in paper and electronic versions, which can be obtained from the Company's General Office and the Company's website (www.tiansheng.com) respectively.

2. Chairman’s speech

Chairman of Ningbo Tiansheng Seals Co., Ltd.: Li Xinggen

Tiansheng Company has gone through more than thirty years of ups and downs since its establishment. We have gone through a road of struggle paved with hard work and sweat. We forged ahead amidst challenges and opportunities, and jointly wrote a new chapter in the company's development.

Thanks to all walks of life for their strong support and selfless care for Tiansheng, and thanks to the employees who work hard and conscientiously in various positions!

Market competition is becoming increasingly fierce, and industry changes are surging. However, it is in this environment that we have overcome difficulties one after another and achieved a series of remarkable achievements with our perseverance, innovative and enterprising spirit and the power of unity and cooperation. Our products' market share is steadily increasing, our brand influence is expanding day by day, and customer satisfaction continues to improve. These achievements cannot be achieved without the hard work and selfless dedication of every employee. You have worked silently in your respective positions, using your wisdom and sweat to inject strong impetus into the development of the company.

With a long history and rapid development, Tiansheng today carries the ups and downs of more than 30 years of hard work, the entrepreneurial passion of hundreds of employees, and the difficult journey of realizing 'localization of nuclear power seals' represented by many experts of the company; it is our responsibility as Tiansheng to provide high-quality seals for nuclear power, military industry, aerospace, and petrochemicals.

We know we have a long way to go! ! !

Sincerity leads to gold and stone, we will continue to work hard, constantly pursue first-class quality and service, and strive to be the leader in the high-end sealing field. We adhere to the corporate philosophy of 'teamwork, integrity and dedication, eternal innovation, and self-transcendence' to work hand in hand with customers at home and abroad for win-win cooperation; we sincerely welcome guests and friends from all walks of life to visit Tiansheng to seek common development and create brilliance.

3. Preface

As a socially responsible enterprise, Tiansheng Sealing Company always keeps in mind the social responsibilities of the enterprise as it continues to grow and develop, adheres to the concept of achieving a win-win situation for society, employees, customers and investors, and promotes coordination, harmony and sustainable development between the enterprise and society.

This report is prepared by Tiansheng Sealing Company based on the company’s specific situation in fulfilling social responsibilities. The report truly and objectively explains the company's specific work in fulfilling social responsibilities in 2024, and hopes to accept the supervision and guidance of society and corporate employees to encourage the company to better fulfill and assume social responsibilities.

In 2024, on the one hand, the company will actively carry out production and operation work, strive to develop markets, optimize business models, protect the legitimate rights and interests of employees in accordance with the law, strive to improve the employee happiness index, and build a harmonious atmosphere between the company and employees; on the other hand, establish and maintain integrity, A good image of being law-abiding and fair, paying taxes in accordance with the law, taking the initiative to assume obligations to the natural environment, social and economic development, actively safeguarding national unity and social stability, supporting and sponsoring social welfare undertakings, paying attention to the living environment of vulnerable groups in society, providing poverty alleviation and disaster relief. The company has integrated corporate social responsibility into the company's business development and pursued common progress and development with customers, employees, shareholders and society.

In the process of rapid development of the enterprise, we vigorously promote a happy and joyful attitude, fully create a good environment, healthy and harmonious atmosphere, continuously create corporate harmony, and contribute to social harmony; through various public welfare activities, we participate in public undertakings, assume social responsibilities, strengthen our responsibilities to people, the environment, and society and the country. We constantly participate in various charities with a grateful heart and strive to build a happy enterprise with a sense of social responsibility.

4. Company Profile

Ningbo Tiansheng Seals Co., Ltd. was established in 1993. It is a national high-tech enterprise and is headquartered in Cixi. Its scientific research personnel account for 30% and there are 10 intermediate and senior engineers or above. The company specializes in the R&D, production, sales and service of high-end sealing gaskets, sealing plates, sealing packing (packing), etc. in the nuclear industry, military industry, petroleum, shipbuilding, metallurgy, chemical industry, machinery and aviation and other related fields. It is a single champion product enterprise in the national manufacturing industry and the only enterprise in Ningbo that has won both the National Science and Technology Progress Award and the National Technological Invention Award.

The company has advanced technology, equipment and a complete quality management system. In 1998, it passed Det Norske Veritas (DNV) ISO9001 quality certification; in 2012, it passed ISO14001:2004 environmental management system certification and OHSAS18001:2007 occupational health certification; in 2013, the company's low leakage packing passed ISO15848-1 and AP1622 certification. In 2014, it passed the GJB9001B:2009 quality management system certification.

The company has Ningbo Special Seals Engineering Innovation Center and Nuclear Grade Gasket Testing Center. It is at the international leading level in the fields of key valve seals in nuclear power plants and nuclear grade pipeline sealing. The 'Nuclear Power Plant Sealing Technology, New Products and Applications' completed by the first person to complete it won the second prize of the National Science and Technology Progress Award, and broke the foreign monopoly. In 2018, it won the second prize of the National Technology Invention Award. Sealing technology and products have won more than 100 military, provincial and municipal science and technology awards and more than 40 independent research and development patent certificates. Cooperation has been established with China Nuclear Power Institute, China Nuclear Power Engineering Co., Ltd., China General Nuclear Power Design and Research Institute, Tsinghua University, East China University of Science and Technology, and Zhejiang University of Technology. The company has established the 'Zhejiang Academician Workstation', a nationally recognized CNAS laboratory, the Fluid Sealing Branch of the CMES Fluid Engineering Society, the China Pneumatic and Hydraulic Sealing Industry Association, and the National Packing and Static Seal Standardization Technical Committee and other member units. Daya Bay Nuclear Power Plant is the only nuclear island equipment supplier in China, the first batch of nuclear power standard setting units of the National Energy Administration, and a local manufacturer of nuclear power equipment for the National Energy Administration.

The company has always adhered to the purpose of 'pioneering and innovative for development, and working together to achieve strength', constantly enhancing the core competitiveness of innovation and research and development, carefully designing sealing solutions, solving difficult leakage problems, and becoming a technology leader in the sealing industry at home and abroad.

Tiansheng Company will go hand in hand with customers at home and abroad to achieve win-win cooperation and create a better future!

Ningbo Tiansheng Seals Co., Ltd. Organizational Structure

Part 2 report content

1. Responsibility for employees

(1) Employee education

First, guided by the value orientation of 'Pioneering and innovative for development, and working together to be strong', we guide employees to actively participate in the company's culture and local construction, and form characteristics.

Core values ​​are the unique proposition of an enterprise and the essence of corporate culture. Core values ​​reflect the macro and overall nature of an enterprise based on reality and focusing on the future. The core values ​​that are suitable for the enterprise can unify the individual values ​​of the employees and the group values ​​of the enterprise. Through the influence and guidance of the corporate culture with the core values ​​as the axis, everyone can recognize, yearn for and share this value, so as to achieve the same future development direction of the enterprise, the unified goal, the enthusiasm of the people, and the unity of the people.

The so-called 'pioneering and innovative' means that we must continue to make progress, have 'the vitality of weeds', and constantly induce new vitality and new business vitality through development and innovation, so as to create a path to sustained success. The essence of pioneering and innovation is a comprehensive ability. It is a resultant force formed by the integration, interaction and organic combination of various intellectual factors and ability qualities at a new level. The key to pioneering and innovation is to change, to make quantitative and qualitative changes in new directions and effective aspects, thus forming a basis for development towards a higher level. Therefore, pioneering and innovation are the core values ​​for enterprises to seek rapid development. They are the organizational structure, mechanism, management and technological innovation capabilities of enterprises. They are necessary for enterprises to maintain competitive advantages and growth vitality, and are the foundation for long-term development of enterprises. We are born with 'pioneering innovation and development' as the core slogan. The first sentence is that on the basis of continuous research and development and continuous breakthroughs, we continue to seek new worlds of development, create more high-end technologies and products, and spread them to society, constantly transforming them into productivity and social wealth, and promoting the progress of social civilization.

The so-called 'unity of mind' means that the mind thinks in one place and establishes a sense of spiritual attachment. Its meaning has four levels: First, enterprises must shape a corporate culture concept that is suitable for their long-term development, including management concepts, employment concepts, quality concepts, etc. The second is to allow all employees to establish a conscious willingness to work hard to understand and implement corporate culture. Third, enterprises must create a working environment where employees have a strong desire to 'work together' and create an internal environment where employees can work happily. The fourth is to make customers happy, establish a correct customer attitude, and gain a good reputation with high-quality work and services. A good reputation is the most solid cornerstone for enterprise development. The so-called 'joint force' means to use force in one place to eliminate any factors that may cause internal friction. Let each employee establish a good connection between his or her job and the requirements of the company, and consciously eliminate the gaps in interests and responsibilities between positions, positions and the company. Therefore, we are born to use 'Work together to be strong' as the last sentence of the core slogan, which is to develop and be strong! This is bound to create a combat-effective team and develop the combat cohesion of 'working together as one heart'!

Only by surrounding such a spirit and building a cultural concept that is most conducive to the development of one's own enterprise can the enterprise ultimately achieve brilliant achievements in striving to be the first and surpassing. In this way, no matter which industry we are in, no matter how big or small we are, we can all hold our heads high and proudly say: I have a good corporate culture, which makes my company an evergreen tree and makes my struggle become enjoyment.

The second is the corporate philosophy: teamwork, integrity, dedication, eternal innovation, self-transcendence

Teamwork

'He who has the same desire from above and below wins', 'Harmony is the most precious'. Team spirit is the prerequisite and basic condition for the survival and development of an enterprise. Create a united, harmonious and stable internal atmosphere and interpersonal relationships within the company, integrate group advantages, form unified values, and strive for the common goal of building a first-class enterprise in the same industry!

Eternal innovation

Innovation is the inexhaustible driving force for enterprise development. Through continuous innovation, enterprises cultivate their adaptability and core competitiveness, and create new markets and living space. Based on concept innovation and strategic innovation, we promote management innovation, system innovation, corporate culture innovation, technological innovation, etc., maintain a strong sense of urgency and urgency for innovation, keep pace with the times, and keep the enterprise in a dynamic process of continuous innovation.

Integrity and dedication

'We sincerely invite customers from all over the world, and reputation comes from letters. 'Integrity is the foundation of business operations and the destiny of business. In the process of production, operation and services, 'be an honest enterprise, create high-quality products, create excellent services, and create a perfect image', be honest but not deceive, and keep your word; the enterprise promotes the spirit of patriotism and dedication, which means advocating taking into account the overall situation, striving for excellence, and selfless dedication, so as to create benefits while creating value for the country and society.

self-transcendence

Enterprises must be based on reality and down-to-earth, but also have lofty ambitions and look to the future. Everything they do must have a high starting point, high standards, and strict requirements. They must aim at and keep up with industry development trends, pursue excellent quality, and surpass competitors. It reflects the company's ambition to follow the trend of the times, meet market challenges, and build a first-class enterprise in the same industry, and reflects the company's spiritual realm of pursuing perfection and realizing self-worth.

Third, based on the nature, positioning and responsibilities and obligations of corporate technical and technical services, the company fully implements the spirit of the 19th National Congress of the Communist Party of China and embodies the socialist core value system in the enterprise. The company guides employees to perceive the connotation of happiness through affectionate service to customers; it bravely assumes social responsibilities and stimulates employees' motivation to pursue happiness; it strengthens humanistic care to ensure that employees enjoy a happy life. Through 'party and mass' activities, the company has better integrated the relationship between society, customers, enterprises and employees, enhanced the attractiveness of the enterprise's ideological and political work, and effectively transformed the political advantages of the enterprise's party organization into the core competitiveness of the enterprise. It is an active exploration and innovation in the concept, content and method of ideological and political work.

The fourth is to guide employees to practice the socialist concept of honor and disgrace, know honor and disgrace, distinguish right from wrong, distinguish beauty from ugliness, and develop a scientific, civilized and healthy lifestyle.

1. Guide employees to practice the socialist concept of honor and disgrace, know honor and disgrace, know right from wrong, and distinguish between good and bad. The company carefully organizes study and guides the majority of party members and cadres to establish the concepts of 'honor' and 'shame', let the education of the socialist concept of honor and disgrace enter their minds and hearts, and effectively transform the 'eight honors and eight shame' into conscious actions; increase publicity efforts to create an atmosphere of public opinion on the establishment of the socialist concept of honor and disgrace. Use publicity tools such as the company's 'Bulletin Board' and intranet to vigorously publicize the scientific connotation and basic requirements of the socialist concept of honor and disgrace; use advanced models as role models to guide employees and strengthen the education of employees on the socialist concept of honor and disgrace, so that employees can fully understand that in the company and in the socialist society, they are The boundaries between wrong, good and evil, and beauty and ugliness must not be blurred; employees are required to connect with the actual work and do their jobs well. In particular, party members and cadres are required to implement the specific requirements of the socialist concept of honor and disgrace into practical actions, penetrate into daily work and life, and be active practitioners of the 'Eight Honors and Eight Disgraces'.

2. Develop a scientific, civilized and healthy lifestyle. The company focuses on production and operation. First, through monthly regular analysis meetings, timely conduct of expanded study sessions of the central group to promote and strengthen publicity, implement the study of the party's principles and policies into the specific reality of the company's development, cultivate employees' individual behavioral goals and behavior styles to be consistent and synchronized with the overall situation of the company, decompose various indicators and responsibilities at each stage to all employees, and form a mechanism in which everyone has a responsibility. Second, we carried out activities such as welding competitions, technical and other employee skills competitions, and on-site emergency drills for which employees were not mentally prepared, creating an atmosphere of chasing each other and seeking common development.

Picture: The company carries out special education and training on social responsibility laws and regulations

(2) Protection of rights and interests

First, the company strictly implements the 'Labor Law' and signs labor contracts with employees in accordance with the requirements of relevant national laws and regulations and the principles of 'equality, voluntariness, and negotiation'. The main clauses in the labor contract regarding the labor contract period, work content, labor protection and labor conditions, labor remuneration, labor discipline, labor contract termination conditions, liability for breach of labor contract, etc. are complete and legal. We strictly abide by relevant laws and regulations, pursue an equal and non-discriminatory employment policy, treat employees with different religious beliefs and cultural backgrounds fairly and justly, and resolutely put an end to child labor and forced labor.

The second is to implement an employee rest and vacation system. The company strictly follows national and local systems.

Third, the employee training system has been implemented. The company has a training plan every year and a training summary of the previous year. Workers must obtain certificates for special operations. The company adheres to the education concept of 'valuing talents and valuing knowledge', builds a working, learning, and living environment with a culture characterized by party building, advocates a people-oriented approach, and improves a salary distribution system based on job performance. Increase the introduction, reserve and training of key core talents, provide employees with growth opportunities and platforms, provide a good competitive environment for employee development, and promote the mutual growth of individual employees and the company.

Fourth, social security and insurance are implemented well. The company handles statutory social insurance for each employee, including pension insurance, medical insurance, unemployment insurance, work-related injury insurance, maternity insurance, etc.; social insurance is paid in full and on time, and corporate annuities are also added to the main employees.

The fifth is to implement a regular employee health examination system. The company conducts employee occupational health examinations from August to December every year, and there are currently no occupational diseases.

Sixth, we consciously protect employees’ privacy rights and never disclose employee privacy.

Seventh, efforts are made to safeguard employees’ right to participate. Under the leadership of the company's party committee and with the support of the administration, with the Workers' Congress as the main carrier, we attach importance to and implement the employee representatives' right to know and participate, give full play to the role of employee representatives in participating in political affairs, stimulate enthusiasm for participating in democratic management, gather the wisdom of employee representatives, and provide suggestions for enterprise development.

(3) Security protection

First, safety management is implemented in place and the safety publicity and education atmosphere is good. The company attaches great importance to safety publicity and education, improves employees' safety awareness, hangs production safety slogans and posts 'Safety Production Operating Standards' at the production site, uses intranet, staff meetings, columns and other forms to organically combine 'Safety Month', 'Quality Month' and other activities to widely publicize safety work, and organizes safety knowledge competitions for all employees.

(4) Bear economic and service responsibilities

In 2024, the company's output value will be 122 million yuan, with a total net profit of 49.755 million yuan; the asset-liability ratio is 24.4%; the capital preservation and appreciation rate is 120.4%; the value-added rate of the company's main products is 10.5%. Total tax paid: 19.777 million yuan. On this basis, our technical capabilities are domestically leading and internationally advanced, and we have grown into one of the best companies in the seal industry.

Academician expert workstations, doctoral workstations were established, and one doctor and one master were introduced.

2. Products and services

1. The company fully identifies customer needs and develops new products based on customer needs to meet customer needs and reduce its operating costs. Ensure quality and quantity and complete orders placed by customers in a timely manner to reduce the risk of insufficient quality and supply;

2． The company has developed a sound product after-sales service system and strictly implements the 'After-sales Service and Customer Management Procedures'; when there are hidden dangers in the quality of factory products, nuclear power sealing safety, etc., it can effectively and quickly trace them back to ensure that the related hidden dangers are dealt with smoothly, accurately and effectively. In recent years, the company has never had an actual recall due to safety accidents in nuclear power sealing products. When customers (or contracts) make on-site service requirements, our company will send experienced engineering and technical personnel to the site to provide guidance on installation, debugging, etc.; when a fault occurs or on-site repairs occur, and customers request support, our company will answer customer inquiries and provide suggestions within two hours after receiving the call. When the customer requests to send personnel to the site, our company's technicians will arrive at the destination within 24 hours.

3. Strictly manage customer property in accordance with the requirements of the management system, and sign confidentiality agreements with customers when necessary to ensure customer privacy and intellectual property interests.

4. The company regularly conducts customer satisfaction surveys in the form of visits or questionnaires, strengthens improvement and adoption of customer requirements and suggestions, and regularly checks and analyzes customer satisfaction.

5. In order to strengthen quality management, improve corporate efficiency, enhance customer confidence, expand market share and improve corporate image, the company has passed the GB/T 19001 quality management system certification. The quality management system has been operating effectively for nearly 20 years.

6. There are 0 negative information or reports on product or service quality.

3. Protection of rights and responsibilities of suppliers and customers

1. The company always 'focuses on customers', highlights the quality mechanism, and comprehensively improves the effectiveness of the service system operation; effectively improves the quality of products and services with 'down-to-earth, solid, implemented, strict and conscientious' work, and provides users with high-performance, high-quality, high-reliability products and services that are truly satisfactory to users.

2. The company adheres to the supplier management concept of 'cooperation and win-win', uses cooperation as a link and integrity as the basis to promote the common development of both supply and demand parties. Treat suppliers as an important link in the enterprise value chain and provide assistance and support in terms of capital, technology and other aspects. By deepening the supplier management mechanism and establishing long-term contact mechanisms with key suppliers, we have promoted suppliers to continuously improve service quality, thus promoting the improvement of supplier quality management levels.

3. Safeguard the legitimate rights and interests of enterprise owners and treat all owners equally.

4. Fulfill creditor commitments and arrange corresponding creditor interest protection measures.

5. Procurement responsibility system and policies. The person in charge of procurement is responsible for the quality of suppliers and purchased products, puts forward procurement plans in a timely manner according to production needs, signs a procurement contract upon review and approval by the company, and arranges incoming inspection of products in accordance with the procurement contract. Only those who pass the inspection are allowed to enter. Materials that fail to pass the inspection must be resolutely required to be returned or products replaced.

6. Protect the legitimate rights and interests of suppliers, subcontractors and customer dealers. The company pays suppliers in strict accordance with the procurement contract and legally protects the rights and interests of suppliers. Have fun working with suppliers and gain their trust.

4. Bear integrity responsibilities

1. Law-abiding and honest

1.1 Comply with laws, regulations, social ethics, business ethics and industry rules. The company insists on operating in accordance with the law and being honest and trustworthy. In operations, we must abide by laws and regulations, social ethics, business ethics, and industry rules, pay taxes in full and on time, faithfully perform contracts, abide by commercial credit, and oppose unfair competition; we must effectively control product quality and improve product technical service levels, and strive to provide society with high-quality, safe, scientific, and reliable services. Our products and technical services have won the trust and recognition of our customers; we ensure production safety, strive to provide employees with a safe, healthy and hygienic working and living environment, protect their occupational health, comply with laws and regulations, social ethics, business ethics and industry rules, and have no negative information about major violations or violations.

1.2 Oppose unfair competition and eliminate corruption in business activities. Externally, the company relies on first-class products and technical services to win customer satisfaction, and internally it carries out party-style and clean government building activities to eliminate corruption in commercial activities.

2. Integrity management and service

Establish the concept of honest management and a system to ensure honest management. The company improves employees' concept of integrity from the perspective of ethics, and publicizes the importance of integrity to the survival of the company and its significance to the improvement of employees' personal charm. Employees are constrained from a legal perspective, and companies that are dishonest will inevitably fail to abide by the law. Promote corporate integrity from a regulatory perspective, including statistics on contract performance, customer return visits, etc.

3. Poverty alleviation and charitable donations

Poverty alleviation and charitable donation activities. The company actively carries out various poverty alleviation and charity donation activities. In particular, the company participates in the special action of 'Thousands of Enterprises Connect Thousands of Villages and Eliminate Weak Villages'.

In December 2021, Qunfeng Community donated 940 bags of rice. Love donation in 2021 (Cixi Red Cross Society) 300,000 yuan. In 2023, the elderly in Qunfeng Community donated 70,000 yuan in condolences. In 2024, the Tsinghua University Foundation donated 100,000 yuan. Zhijiang Tongxin. Zhejiang provided assistance to support rural revitalization. In 2024, a donation of 250,000 yuan was donated to the Mutual Wealth Fund. The company configures infrastructure based on the principles of technological advancement, safety, environmental protection, and energy conservation, adopts energy-saving equipment, and promotes energy-saving products. Carry out green supply chain management, adopt ecological and modular design, and develop green sealing products. The company has been included in the national positive list and is the second batch of Ningbo City's ecological and environmental supervision and law enforcement positive list enterprises in 2022.

Ningbo Tiansheng Seals Co., Ltd. has won the satisfaction of users and partners with integrity, and there has been no customer information leakage.

5. Establishing a trade union 、 party branch

In order to promote the construction of the trade union, improve employee welfare and enrich employees' spare time life, Tiansheng Sealing Company established the first trade union committee of Tiansheng Sealing Company on December 10, 2014; the Party branch of Ningbo Tiansheng Sealing Co., Ltd. was established. The organizational structure, membership conditions, obligations and benefits have been reasonably set up; so far, all employees of the company have voluntarily joined the trade union; this is crucial to establishing stable and harmonious labor relations and safeguarding the legitimate rights and interests of employees, and also promotes the construction of the company's corporate culture.

6. Responsible for environmental protection and occupational health and safety

1. Environmental management

1.1 Tiansheng Sealing Company has passed the GB/T 24001-2004 environmental management system certification and strictly abides by relevant laws and regulations on environmental protection, and conducts regular monitoring of three wastes.

1.2 An environmental impact assessment was conducted in accordance with legal and regulatory requirements.

1.3 There has been no negative information about environmental protection violations since the establishment of the factory.

2. Occupational health and safety

2.1 Tiansheng Sealing Company passed the GB/T 45001-2020 occupational health and safety management system certification and strictly complied with the relevant laws and regulations on occupational health and safety, and conducted a physical examination declaration for occupational health hazards.

2.2 The company has passed the approval of the National Level 3 Enterprise of Safety Production Standardization and obtained the certificate of the Level 3 Enterprise of Safety Production Standardization.

2.3 The annual safety training plan formulated this year has been fully implemented, and employees’ safety awareness has been further strengthened.

2.4 Occupational disease physical examinations were conducted for ordinary positions and positions with occupational disease hazards, and no abnormalities were found in all physical examination items of employees.

2.5 Since the establishment of the factory, there has been no negative information about occupational health and safety violations, and a physical examination will be conducted for all employees in 2023.

2.6 All special equipment has passed annual inspection.

3. 2024Annual investment in safety production and environmental protection funds

In 2024, a total of about 1.05 million yuan will be invested in safety production and environmental protection funds to carry out continuous improvement and management plans. For example, 10 wet curtain cooling fans and air conditioners are installed in each workshop, which play a good role in ventilation and dust removal, and eliminate the harm caused by dust to employees; isolation nets are installed in all semi-finished product test workshops to ensure employee safety.

4. Carry out occupational health and safety management activities

In order to further strengthen the company's employees' ideological understanding of production safety, improve the company's safety management level, enhance the employees' awareness of production safety and self-protection capabilities, and strengthen the company's awareness of safety prevention, resolutely prevent accidents from occurring, and ensure the company's scientific and safe development; the company in June 2024 All workshop and department personnel carried out fire extinguishing drills. The company's safety engineers explained to employees the use of fire extinguishers, fire extinguishing methods, the connection and holding of fire hoses and water guns. The employees all had personal experience, which truly reflected the fire protection policy of 'prevention first, combining prevention and firefighting', and instilled the awareness of group prevention and group treatment.

5.2024The annual three waste (wastewater, waste gas, noise) emission indicators are in line with the emission standards l

Environmental Governance Performance In the process of dealing with 'three wastes', the company strictly controls it to achieve emission standards and meet safe operation standards. For waste gas, waste water and noise generated during the production process, the company has stipulated measurement methods and targets, monitors them daily, and regularly invites qualified institutions to conduct testing to ensure a good working environment.

Picture: Environmental management smoke and dust collection and processing equipment

2024 Environmental Testing Report

Since the establishment of Ningbo Tiansheng Sealing Parts Co., Ltd., no major illegal or illegal negative events or information have occurred.

7. Corporate social responsibility

The company's social donation status: In December 2021, Qunfeng Community donated 940 bags of rice. Love donation in 2021 (Cixi Red Cross Society) 300,000 yuan. In 2023, the elderly in Qunfeng Community donated 70,000 yuan in condolences. In 2024, the Tsinghua University Foundation donated 100,000 yuan. Zhijiang Tongxin. Zhejiang provided assistance to support rural revitalization. In 2024, a donation of 250,000 yuan was donated to the Mutual Wealth Fund. The company configures infrastructure based on the principles of technological advancement, safety, environmental protection, and energy conservation, adopts energy-saving equipment, and promotes energy-saving products. Chairman of the company Li Xinggen has made free contributions to Sinopec, nuclear power plants, etc. to preach sealing technology knowledge and solve many sealing problems in the nuclear industry, aerospace, petrochemical, military and other fields, playing an indispensable role in the stability and safety of society.

In April 2024, Li Xinggen was awarded the title of the eighth batch of leading talents in science and technology entrepreneurship under the National High-level Talent Special Support Program; (Li Xinggen was awarded the title of leading talents in science and technology entrepreneurship by Guowan).

The company actively carries out various poverty alleviation and charity donation activities. In the future, poverty alleviation will be a key public welfare area supported by the company, especially the 'Thousands of Enterprises Connect Thousands of Villages and Eliminate Weak Villages' special action to help rural revitalization.

The types of taxes the company should pay include value-added tax, income tax and other taxes. The company insists on paying taxes in accordance with the law and has no tax arrears. The company has been rated AAA by the tax authorities and pays social insurance premiums in accordance with the law.

The company has established rules and regulations on production safety and environmental protection, strictly implements them in accordance with the regulations, and organizes regular inspections. There has never been any accidents related to production safety and environmental protection.

Picture: Go to Lishui to carry out the 'Thousands of Enterprises Connect Thousands of Villages, Eliminate Weak Villages' activity (aid in the construction of Sixian Plaza, Badu Town, Lishui City) to promote common prosperity

8. Social recognition

The main honors received by the company in 2023-2024:

Credit assessment credit rating is AAA	2023
Cixi Mayor Quality Award	2023
Four-star quality enterprise in the national static sealing industry in 2023	2023
Ningbo City’s leading enterprise in military-civilian integration	2023
Excellent supplier of high temperature reactor	2024
China shipbuilding gold medal supplier	2024
Excellent supplier of China General Machinery Industry Association	2024

Picture: Some company honors

9. Looking forward to 5202

The company will continue to adhere to the concept of social responsibility and continuously improve the economic, social and environmental performance of the enterprise. The company will increase investment in environmental protection technology, employee welfare and social welfare, and strive to achieve harmonious coexistence between the enterprise and society.

1． Improve the construction of scientific and technological innovation system

Actively respond to the military-civilian integration strategy. Adhering to the principle of building an independent intellectual property system and strengthening the company's own technological innovation capabilities, we adopt methods such as independent innovation, integrated innovation, and industry-university-research cooperation to tackle key problems, and focus on research and development of industry-leading modern advanced technologies and national science and technology plan projects, and enhance the development level of science and technology plan projects, so that the company The resource advantages and industrial foundation advantages have been transformed into real technical and economic advantages, so that technological innovation can provide strong technical support for the company's sustainable and healthy development. It has established the 'Aerospace Sealing System Military-Civil Integration Collaborative Innovation Center' with the First Academy of Aerospace to carry out research on aerospace sealing and contribute to my country's aerospace industry.

2. Caring for the comprehensive and healthy development of employees

Adhering to caring for employees, relying on employees, and uniting employees, the company will further improve the employee compensation system and comprehensively improve employees' living standards; actively carry out employee education, training and skill improvement activities to improve employees' learning enthusiasm and professional quality; expand corporate democratic management to protect employees' legitimate rights and interests; strengthen poverty alleviation work to provide practical help to disadvantaged groups.

3. Save energy and reduce consumption and strengthen environmental governance

Vigorously promote advanced, energy-saving and efficient technical equipment and processes, improve energy-saving organization and management, and strive to build resource-saving and environment-friendly enterprises.

4. Always adhere to environmental and occupational health and safety policies

Comply with laws and regulations, reduce occupational hazards, focus on continuous improvement, and benefit future generations. Participation of all employees and continuous improvement.

5. Give back to the society and achieve win-win results between local companies and enterprises

Caring for the health of employees and participating in beneficial health activities. Continue to promote enterprise development and create more employment opportunities for the society; increase support for social welfare undertakings and encourage loving and helpful behaviors; focus on the development of local society, culture, education, health, and safety, care for local vulnerable groups, and effectively promote social harmony.

6. According to the improvement and innovation plan

The R&D center company carries out scientific and technological project research to complete product research and development and technological innovation; it also carries out 5S standardized management to achieve cost reduction and efficiency improvement and ensure the effectiveness of improvement activities. Tiansheng Company will continue to fulfill and practice its social responsibilities as always, and will go all out to contribute more to the motherland's national defense scientific research, and use higher-end technology to promote the true and comprehensive localization of nuclear power industry and military equipment. Fulfilling the great dream of strengthening the country, innovation leads new quality development, and serves national defense construction with high quality.

Ningbo Tiansheng Seals Co., Ltd.

January 2025