2024 Social Responsibility Report

Corporate social responsibility refers to the obligations that enterprises should undertake to seek and enhance social benefits beyond maximizing profits, including operating in accordance with the law, being honest and trustworthy, ensuring safe production, promoting occupational health, protecting the legitimate rights and interests of workers, meeting human development needs, protecting the environment, conserving and cherishing resources, supporting charitable causes, donating to social welfare, pursuing innovation, and promoting technological progress, among others. Internally, it means ensuring the dignity and welfare of employees; externally, it means playing a positive role in the social environment.

I. Basic Information of the Company

Zhongguang Electric Co., Ltd. was founded in 2005 and is located in the city of instrument transformers, Dalian Pulandian. The factory covers an area of over 35,000 square meters, with a building area of over 28,000 square meters, and a registered capital of 105 million yuan, boasting a team of experienced and high-quality professionals. Zhongguang is a high-tech enterprise that integrates the research and development, production, and sales of instrument transformers. The company produces over 300 models and more than 10,000 specifications of products, and can provide comprehensive technical support as needed, offering the most personalized high-quality products and the most complete after-sales service.

The company implements standardized, quantitative, and standardized management internally, with a complete ISO 9001 quality management system, ISO 14001 environmental management system, and OHSAS 18001 occupational health and safety management system. The system certification covers the entire production and operation process of the enterprise. The company continuously improves its competitiveness, promotes better, faster, and greater development, and always adheres to the principles of "quality first" and "customer first," carefully summarizing successful experiences, firmly establishing the service concept of "manufacturing quality products and serving the world," prioritizing quality work in the company's operations, and all employees embodying the corporate spirit of "quality is character, products reflect personal integrity." The company warmly welcomes close cooperation with friends at home and abroad, scientific development, and jointly creating brilliance.

The company actively recruits talents from around the world, establishing a good human resource structure. Currently, the total number of employees is over 200, with 35% holding a college degree or above. The company has strong technical strength and research and development capabilities, with a team led by master's supervisors as academic leaders, and graduate students and senior engineers as professional backbones, leading the domestic industry with a high-quality professional technical talent team. In long-term large-scale production, the company has formed a strong enterprise unit with comprehensive strengths in research, development, production, and application.

The company has currently passed ISO 9001:2000 quality system certification, ISO 14001:2015 environmental management system, and ISO 45001:2018 occupational health and safety management system.

II. About Safety

(1) Safety Production Management

The company adheres to the safety production policy of "safety first, prevention first." It gradually implements modern safety management and formulates safety production management systems. When preparing various plans and annual plans, safety work is prioritized. Based on the safety production policies, regulations, and requirements of the party and the state, as well as the directives from higher authorities, the company sets safety production target values for the entire company according to its specific situation. The content includes the frequency of work-related injuries, mortality rates, and serious injury rates, as well as the qualification rate of occupational disease hazard areas and safety technical measures costs; each unit should also include safety target responsibility systems when signing contracts or assigning tasks with teams or individuals, as one of the assessment criteria; the company implements a safety veto system, and any unit or individual that experiences major casualties or exceeds safety production target values will be disqualified from awards for that year; a major safety inspection is organized monthly, during which the completion of safety production targets is analyzed and summarized.

(2) Safety Production Investment

The company formulates and strictly implements safety production budgets according to national laws and regulations, organizing the implementation of safety improvement projects. Each year, funds are invested to provide employees with necessary safety resources, including personal protective equipment and labor protection supplies, to prevent occupational injuries, diseases, and accidents, as well as to respond to emergencies. Following the safety prevention requirements of "strengthening control and enhancing safety crisis awareness," the company implements "safety technical prevention projects" to protect corporate property safety, safeguard employees' interests, and maintain normal business management order, thereby enhancing the company's safety management level.

(3) Safety Production Education and Training

The company adheres to the safety production policy of "safety first, prevention first, comprehensive governance," formulates safety production training systems and plans, and organizes employees to receive safety production education and training to master the safety production knowledge and skills required for their work. The company implements the safety concept of "people-oriented, safety first, harmonious development," encouraging and motivating employees to consciously learn safety production laws, regulations, and knowledge, continuously consolidating the company's safety foundation and improving the safety long-term mechanism. The company emphasizes cultivating a safety culture within the enterprise, integrating the implementation of safety systems with team building, continuously optimizing the on-site working environment, and promoting steady development in production, employee safety, and health.

(4) Safety Production Inspection

The company's safety management department conducts focused safety inspections on a quarterly, monthly, and weekly basis. During holidays and periods of resumption of work, special safety inspections are organized. Any safety hazards identified during inspections must be rectified by the responsible department within a specified time. Monthly statistics and analyses are conducted, and evaluations are made public, clarifying the key work focus for each stage.

III. About System Construction

The company has established and improved various management systems, achieving standardized, normalized, and institutionalized management, fully implementing the safety production responsibility system and hazard investigation system; it has successively passed API, ISO 9001:2015 quality management system certification, ISO 14001:2015 environmental management system certification, and ISO 45001:2018 occupational health and safety management system certification, obtaining relevant certificates, further improving production quality and ensuring employee health and safety.

IV. About Occupational Health and Safety

(1) Labor Contracts and Compensation

The company strictly complies with and fully implements the Labor Contract Law of the People's Republic of China and other laws and regulations, signing written labor contracts with employees based on the principles of legality, fairness, equality, and voluntariness, and performing, modifying, terminating, and ending labor contracts in accordance with the law. The labor contract signing rate is 100%.

The company has established a fair and reasonable compensation system, paying employees' salaries on time and in full. Following the principle of synchronizing the improvement of business efficiency with employee income, the company determines the annual average salary increase based on the annual business objectives, in conjunction with the wage growth guidelines issued by the city, and in comparison with the labor costs of the same industry and the wage guidance prices in the labor market, implementing a monthly advance payment and an annual summary settlement for income distribution. The company strictly adheres to national and local laws and regulations, and based on its actual situation, formulates labor contracts that clarify the working hours of employees. If overtime is required due to production and operation needs, it must be agreed upon by employees, and the extra working hours will be settled.

(2) Occupational Health and Safety

The company focuses on the physical and mental health of employees and conducts health check-ups for all employees. The company conducts health check-ups for employees once a year and provides gynecological examinations for female employees. An electronic health record system for employees has been established. At the same time, for those suffering from chronic diseases such as hypertension and diabetes, a follow-up check is conducted every six months to understand the development of the condition and the effectiveness of treatment. The company actively carries out health consultation activities, using comprehensive means such as disseminating information and knowledge on disease prevention to care for employees' health and reduce the harm of diseases.

(3) Democratic Management

The company legally establishes and improves the trade union organization to protect employees' rights and interests. It supports the trade union in carrying out various activities according to the law, communicates regularly with the trade union, and actively responds to reports, suggestions, and opinions submitted by the trade union and its representatives. The trade union chairman participates in the formulation and discussion of rules and regulations that involve the immediate interests of employees, which are reviewed and determined through employee (representative) meetings and other channels. The company signs a "Collective Contract" with the trade union; establishes a collective bargaining mechanism for wages, and conducts equal negotiations on major issues related to wages, such as wage adjustment mechanisms, incentive wages, overtime wages, and minimum wage levels; before implementing any reform measures that involve employee interests, the company insists on holding employee representative meetings to vote and approve.

The company fully supports employees in participating in the trade union and encourages employees to engage in democratic management through various channels, such as the employee representative meeting system and democratic evaluations of leaders. The company has established a labor dispute mediation committee composed of the party branch, trade union, and employee representatives, and has established procedures for handling labor dispute mediation.

(4) Employee Training and Development

The company conducts comprehensive, multi-level, and systematic education and training. The training content is divided into four categories: academic training, onboarding training, professional training, and management training, and the training methods are divided into four types: public courses, internal training, in-house training, and training projects. The company implements personalized employee learning and development plans. For management staff, the company sponsors outstanding employees for capacity enhancement training every year. For professional technical personnel, industry technical experts are invited to give special lectures, technical research report meetings, etc., to pass on knowledge and experience. For manufacturing site personnel, a series of activities and training are conducted for different positions, such as on-the-job training, team leader training, job skills training, and academic training.

V. Regarding Supplier Management and Customer Rights Protection

Suppliers, customers, and consumers are the providers of the company's products, the conveyers of services, and the consumers of products. They produce and create value together with the company. The company adheres to the principles of integrity, mutual benefit, and equal negotiation, strictly fulfills contracts, establishes and maintains good relationships with partners, creates communication platforms, complements each other's advantages, and builds a win-win pattern.

The company pays attention to and protects the interests of suppliers, achieving win-win situations with suppliers, aiming to maintain a good strategic partnership with suppliers as a work goal in recent years. To effectively evaluate and select qualified suppliers, optimize the company's supply structure, improve the company's supply system, enhance supply levels, ensure that the quality, price, and production delivery capabilities of suppliers continuously meet the company's requirements, and provide high-quality after-sales service to ensure the company's normal production needs. The company has established and improved the supplier management system and supplier evaluation system, manages and updates supplier files in a timely manner, establishes a "Qualified Supplier Directory," organizes supplier qualification assessments, and manages and evaluates business dealings with qualified suppliers.

VI. Regarding Environmental Protection, Energy Conservation, and Sustainable Development

The company has always actively undertaken various social public responsibilities, strictly evaluating issues such as environmental pollution, energy consumption, resource utilization, safe production, and product safety brought to society during production, service, and operation processes, and has formulated a series of indicators to study corresponding improvement measures. The company continuously improves and perfects the environmental protection system construction, obtains ISO14001 environmental management system certification, establishes production target responsibility systems, implements job assessment systems, and minimizes human resource waste and pollutant emissions.

During the project construction process, the company earnestly implements the "three simultaneous" system of designing, constructing, and putting into use environmental protection facilities and main projects simultaneously. The emissions of various pollutants have met the national and local relevant emission standards, and the project has passed the environmental protection acceptance upon completion. According to national pollutant discharge permit regulations, the company has obtained pollutant discharge permits, achieving good economic benefits while realizing good environmental and social benefits. In 2024, the company commissioned a third-party professional organization to conduct comprehensive monitoring of waste gas, wastewater, and noise generated during the production process, all of which meet national industry standards. In 2024, the company did not experience any major environmental protection accidents.

VII. Regarding Future Development