Social Responsibility Report

Hangzhou Jinke Technology Co., Ltd.
March 2023

Contents

Compilation Instructions ------------------------------------------------------3
Preface ----------------------------------------------------------4
1. Social Responsibility Focusing on Cultural Construction ------------------------------------5
2. Social Responsibility Pursuing High-Quality Products and Services ----------------------------6
3. Social Responsibility Complying with National Laws and Regulations --------------------------------7
4. Social Responsibility Caring for Employees' Cultural Construction and Health ---------------------------------10
5. Giving Back to Society and Participating in Public Welfare -----------------------------------15
Conclusion -------------------------------------------------------15

Compilation Instructions

Corporate Social Responsibility Report (abbreviated as CSR report) refers to the systematic sorting and summarizing of a company's philosophy, strategy, methods of fulfilling social responsibility, the direct and indirect impacts of its business activities on the economy, environment, society, achievements, and shortcomings.
The "Hangzhou Jinke Technology Co., Ltd. 2022 Annual Social Responsibility Report" (hereinafter referred to as the "Report") is the first corporate social responsibility report issued by Hangzhou Jinke Technology Co., Ltd. It is also the overall report on the company's fulfillment of social responsibility in 2022. This report truthfully and objectively reflects and discloses the company's overall performance in building a harmonious society, promoting sustainable economic and social development, protecting the natural environment and resources, and actively assuming and fulfilling social responsibilities towards shareholders, creditors, employees, suppliers, consumers, and other stakeholders in 2020. The company guarantees that the information contained in the report does not include any false records or misleading statements and is responsible for the authenticity and accuracy of its content.
This report is prepared with reference to the "Guidelines for the Preparation of Chinese Corporate Social Responsibility Reports" (CASS-CSR3.0) by the Chinese Academy of Social Sciences.
Report organizational scope: Hangzhou Jinke Technology Co., Ltd.
Report time scope: January 2022 to December 2022. Some data beyond this range are subject to explanations in the text.
Report release cycle: Annual cycle. This is the first release.
Report disclosure scope: This report is published in written form to relevant parties.
Report access method: http://www.inkecnc.com
Preface
Hangzhou Jinke Technology Co., Ltd. is an integrated company of research and development, production, and sales, covering an area of more than 30 acres. It is a professional CNC engraving and milling machine manufacturer in western Zhejiang. Since its establishment, the company has focused on advanced European technology in the global CNC industry. Through technical cooperation with professional manufacturers from Japan, France, Spain, Taiwan, and others, and relying on a high-level, experienced, and responsible R&D team, it has made breakthrough developments in precision CNC engraving and milling machine design and production, mechanical processing, mold manufacturing engraving technology, as well as CAD/CAE/CAM research and development. The products produced by the company are strictly designed, manufactured, and inspected according to relevant international, national, and enterprise standards, with a strong focus on assembly technology. Over the years, product quality has been stable, performance continuously improved, and with excellent cost performance and comprehensive after-sales service, the market share has continuously expanded, successfully realizing the transformation from CNC technology to industrialization.
As one of the outstanding representatives in the CNC engraving and milling machine industry, Hangzhou Jinke Technology Co., Ltd. has always maintained a vigorous, united, and enterprising posture. With strong technical strength and rigorous scientific management, it has continuously grown and innovated, winning multiple honors such as "Zhejiang Quality Trusted Product" and "Top Ten Recognized Brands of CNC Engraving and Milling Machines in China," maintaining its leading technological advantage. Currently, the company has become a manufacturer of large CNC engraving and milling machines with the Jinke (JKM) series and dozens of models. Advanced manufacturing processes, large-scale production, high-quality product quality, professional user training, and timely after-sales service have firmly established the company's position in the industry. The products produced by the company have been sold nationwide and are widely used in machinery, research institutes, universities, chemical industry, advertising, woodworking, stone processing, automotive industry, injection molds, hardware molds, engraving molds, and other industries. The company has established an after-sales service system that promptly handles returns, exchanges, and effective repairs of customer machines based on customer situations, minimizing customer losses and winning widespread praise from customers.
  

1. Social Responsibility Focusing on Cultural Construction
The company management attaches great importance to corporate culture construction and has proposed the company's values and vision:

The company creates a good communication atmosphere by setting up a general manager mailbox, carrying out rationalization proposal activities, and widely listening to opinions or suggestions from employees at all levels to maintain smooth internal communication; through exhibitions, negotiation meetings, seminars, visits, and other forms, it listens to opinions and suggestions from customers, suppliers, and other stakeholders. Company leadership advocates "barrier-free communication," establishing an interactive two-way communication mechanism, listening to employees and other stakeholders through multiple channels, and achieving effective communication among different departments, positions, and regions in various ways, as shown in the following chart.

　　II. Social responsibility of pursuing high-quality products and services

　　The company believes that the greatest social responsibility of an enterprise is to provide customers with high-quality products and services. This belief runs through the entire operation of the enterprise. In recent years, quality has increasingly attracted the attention of society and the public, and related requirements have been frequently proposed in government development plans, such as the State Council's "Guiding Opinions on Carrying out Quality Improvement Actions." Against the backdrop of profound changes in the external environment, the company continuously promotes quality improvement actions, strengthens process quality control, advances supplier quality management, and improves customer complaint and service systems. Creating value for customers through innovative technology and improved services is the company's primary social responsibility.

　　The company has successively passed ISO9001 Quality Management System, ISO14001:2015 Environmental Management System, and ISO45001:2018 certifications. In 2021, it successfully introduced the Excellence Performance Model and actively participated in the municipal government quality award selection. The continuous improvement of management systems and standards ensures the comprehensiveness, continuity, and effectiveness of system operations, laying a solid foundation for the stability and improvement of product quality levels.

　　To fulfill product quality and safety responsibilities and ensure the quality and safety of products and services provided by the organization, the company attaches great importance to the construction of the quality management system. While strictly controlling product quality and meeting various standard indicators, a sound quality management system has been established.

　　Currently, the company has formulated a series of quality control measures covering all processes from product design, raw material procurement, product manufacturing, product inspection, performance testing, packaging and storage, to customer service. These measures effectively guide and supervise the quality control work of various departments. At the same time, the company takes meeting customer requirements as the standard, with specialized departments responsible for conscientiously promoting continuous improvement of product quality.

　　III. Social responsibility of complying with national laws and regulations

　　The company's products, services, and operations mainly involve impacts on quality and safety, environmental protection, energy conservation, comprehensive resource utilization, production safety, and public health. The company strictly follows national laws and regulations such as the "Environmental Protection Law," "Air Pollution Prevention and Control Law," "Water Pollution Prevention and Control Law," and "Production Safety Law," and has formulated systems including the "Emergency Plan for Sudden Environmental Incidents," "Environmental Sanitation Management Assessment Measures," "Customer Complaint Management Measures," and "Control Procedures for New, Modified, and Expanded Construction Projects." The company's wastewater, exhaust gas, and noise emissions meet national and local discharge standards; industrial solid waste is treated and disposed of, with a 100% hazardous waste disposal rate; pollution control facilities are managed by dedicated personnel, with an environmental protection facility stable operation rate above 95%; pollutant emissions meet national standards and total emissions are controlled within limits.

　　Company public responsibility results

　　The company pays great attention to potential public concerns regarding future quality safety, environment, energy consumption, resource comprehensive utilization, and public health related to its products, services, and operations, actively researching countermeasures and making preparations in advance. See the table below:

Foreseeing and responding to public and environmental concerns

　　The company identifies risks in quality safety, environmental protection, energy saving, resource comprehensive utilization, production safety, product safety, and public health in products, services, and operations, establishes goals and measurement methods, and takes strong measures in key processes.

Public responsibility control measures and indicators

　　The company upholds "Integrity and Loyalty, Honesty and Humility, Kindness and Harmony" as its core values, insisting on and advocating integrity during development, emphasizing honest operation, product quality, tax compliance, and law-abiding conduct, earnestly fulfilling legal and ethical standards. The company is honest with customers, customer-oriented, focusing on product sales and after-sales service, earning customers' trust, support, and recognition; honest with employees, caring for them in work and life, improving employee satisfaction. The company has a 100% contract fulfillment rate, ensuring healthy and standardized good cooperative relationships with partners, building a creditworthy enterprise.

　　Through honest operation, the company has been awarded the Zhejiang Province AA-level "Contract-abiding and Credit-worthy Enterprise". It has received widespread praise from customers, suppliers, government, industry and commerce, taxation, banks, and other departments.

　　To ensure internal operations meet ethical requirements, the company has formulated ethical behavior measurement indicators and methods. See the table below:

　　Company Ethical Behavior Monitoring System

　　Quality and Safety: The company adheres to the quality policy of "using high technology, manufacturing high-quality products, meeting customer needs, and continuous improvement and development," actively fulfilling quality and safety responsibilities, strictly implementing industry standards and laws and regulations, regularly undergoing ISO9001:2015 quality management system reviews, and establishing and improving the company's quality management and quality assurance systems to continuously enhance Jinke Technology's quality management and assurance systems. The company firmly believes that superior performance and reliable product quality are the keys to product competitiveness. Quality is formed throughout the entire product life cycle, including design and development, trial production, testing, manufacturing, distribution, service, and usage. Therefore, all factors affecting product quality throughout the product life cycle must always be under control; comprehensive quality management involving all processes and all employees must be implemented, enabling the company to continuously provide products that meet quality standards and customer satisfaction, establish an outstanding corporate image, and wholeheartedly serve customers.

　　Environmental Protection: Since implementing the environmental management system, the company has made significant improvements to the factory area and the environment inside and outside the plant buildings. In recent years, the company has invested heavily in improving the workshop working environment, such as investing more than 1.8 million yuan to build multiple refining units; classified collection of solid waste; entrusting professional companies to handle solid waste; environmental impact assessments and the "Three Simultaneities" system; annually spending more than 50,000 yuan to purchase seedlings and flowers, extensively renovating the company's green areas, increasing plant varieties, creating off-season landscapes, striving to achieve the goal of "flowers in three seasons, evergreen all year round," with a greening rate of over 30% in the factory area. At the same time, the company insists on promoting clean production, deepening energy conservation and consumption reduction, pursuing a new development path of high efficiency, low input, low consumption, and low emissions, achieving a win-win situation for the enterprise and society, and promoting sustainable economic, social, and environmental development.

　　Energy Conservation and Consumption Reduction: As a responsible enterprise, the company regards this as an important task and includes it in the corporate assessment system. Jinke Technology has always focused on "energy saving, consumption reduction, pollution reduction, and efficiency improvement" to do a good job in environmental protection. The company has established an "Energy Conservation and Consumption Reduction Leadership Group" to vigorously promote energy-saving and consumption-reduction work, technically transforming outdated production equipment and processes, eliminating high-pollution, high-energy consumption, and high-material consumption equipment, and introducing and using environmentally friendly, low-consumption high-tech products.

　　Safety Production: The company consistently follows the work policy of "abiding by laws and regulations, improving all employees' environmental safety awareness; effective utilization, emphasizing comprehensive environmental safety benefits; sustainable development, improving environmental safety management systems." To prevent safety accidents and ensure employees' personal safety, the company formulates and improves asset protection, fire prevention, and theft prevention management systems to ensure the safety of corporate property. At the same time, starting from cultivating employees' safety awareness and conducting three-level safety education, the company implements safety training tailored to different job safety characteristics, provides labor protection supplies, pays pension and work injury insurance for all employees, and other safety precautions to ensure all employees master the safety knowledge and skills required for their positions, guaranteeing employees' personal safety. The company arranges free annual physical examinations for employees in special positions.

　　It is especially worth noting that we have a system that motivates employees to voluntarily participate in the construction of the company's safety management system, such as the established volunteer firefighter system and the widely carried out 5S campaign. Through monthly 5S evaluation activities, employees are deeply involved in various activities, creating a more deeply rooted safety culture.

　　Growth and development are crucial for employees. The company values talent introduction and training, provides career planning for employees, organizes various corporate training sessions to improve employee quality. By the end of 2022, the company had invested more than 200,000 yuan in training funds, trained over 100 people, with a total training duration of more than 60 hours. Based on the basic principle of "matching people to posts and making the best use of talents," the company has formed two career development paths: management and professional, giving employees the choice of career development direction, ensuring the optimization of human resources allocation, creating good promotion channels for employees, and achieving common growth for employees and the enterprise.

　　4. Focus on Employee Cultural Construction and Health

　　In addition to safety concerns in production, the company also attaches great importance to employee cultural construction and health. This is mainly reflected in our efforts to create a comfortable working and living environment for employees, such as offices, workshops, canteens, etc. Besides hardware guarantees, we also stimulate employees' work enthusiasm and enrich their leisure life through activities such as labor skills competitions, employee dinners, and cultural and recreational activities, which have been widely praised by employees.

　　The company adheres to a "people-oriented" approach, regularly holds employee representative meetings to promptly resolve employee concerns; ensures reasonable salary increases for employees, continuously improves employee meals; gradually reduces frontline employees' labor intensity, maintains transparency in employee rewards and punishments, curbs unfairness; provides warmth and humane care to employees in difficulty, such as issuing hardship subsidies, enhancing employees' sense of identity and belonging to the company.

　　Hangzhou Jinke Technology Co., Ltd., based on the characteristics of enterprise development under the new situation, launched new corporate culture initiatives such as "Integrity Culture Construction" in 2020. Through publicity from the perspectives of knowledge and action, the company fully explores the good professional ethics intentions hidden in the hearts of every employee, internalizes them into personal consciousness, externalizes them into personal behavior norms, to unite and inspire fighting spirit. Regarding integrity culture construction, the company has clarified specific promotion plans and formulated supporting documents such as employee integrity behavior norms, employee integrity self-discipline conventions, and integrity self-discipline responsibility letters between the company and cooperating units. This deeply ingrains integrity and self-discipline, forms a high-pressure stance against "unhealthy practices," and continuously enhances the company's cohesion and competitiveness.

　　5. Giving Back to Society and Participating in Public Welfare

　　While developing, the company does not forget to give back to society and has gradually established a Jinke Technology public welfare and charity system characterized by "company-led, party committee-led, full participation, and focus on effectiveness." Over the years, various forms of public welfare activities have been carried out. Jinke Technology actively responds to the calls of the Changxing County Party Committee and government, actively participates in four key areas of public welfare support: "charitable donations, development of education, promotion of environmental protection, and support for public health renovation." According to statistics, since its establishment, the company has donated more than 100,000 yuan to society.

　　While the company continuously develops, it actively gives back to society. Enterprises come from society and must give back to society; this is a social relationship under the current situation. To promote the traditional virtues of the Chinese nation in poverty alleviation and charity, and to support Changxing County's charity undertakings, fully leveraging the company's corporate value, the company's public welfare situation in the past three years is shown in the following table.

　　6. Win-Win Development of the Company and Employees

　　The company focuses on win-win development with employees, providing good working environments, suitable living conditions, and competitive salary and benefits while steadily developing. As shown in the table below:

Employee Benefits

　　In the daily operations of the company, great attention is paid to employee complaints. When employee complaints arise, relevant departments are promptly coordinated to understand the situation and handle it as soon as possible to eliminate employee dissatisfaction, allowing them to fully engage in their work, happily learn, happily work, and happily live.

　　In addition, the company conducts an annual employee satisfaction survey for all staff. After statistical analysis, a report is generated and targeted improvements are made. This work continues year by year, achieving good results, with employee satisfaction increasing annually.

　　Closing Remarks

　　As a law-abiding company, Jinke Technology fully realizes that corporate growth and social responsibility are complementary and inseparable. The company values achieving the best returns for shareholders and protecting investors' legitimate rights and interests; focuses on establishing win-win cooperative relationships with suppliers; values giving back to employees, achieving synchronized growth of personal development and company development; and emphasizes that the company's development should integrate into society and actively give back to the community.

　　Looking to the future, the company will continue to actively fulfill its social responsibilities and obligations, focusing on development to promote the economic and social development of the company and the region. In business management, the company will further adhere to the principles of honesty and credit, comply with social ethics and business ethics, treat suppliers and customers with integrity, protect the rights and interests of shareholders and other stakeholders, and also safeguard the legitimate rights and interests of the broad workforce. The company will actively protect the environment, placing greater emphasis on social and environmental benefits while pursuing economic benefits, to promote coordinated and harmonious development between the company and society as a whole.