Hubei Botao Synthetic Fiber 2024 Annual Social Responsibility Report 

Hubei Botao Synthetic Fiber Co., Ltd.

Hubei Botao Synthetic Fiber Co., Ltd. is located in Jingmen High-tech Industrial Development Zone, covering an area of 300,000 square meters. It is a high-tech enterprise integrating the research and development, production and sales of polypropylene, polyester, composite fibers, polylactic acid staple fibers and various non-woven fabrics. The company produces over 100,000 tons of polypropylene staple fibers, 30,000 tons of polyester staple fibers and 10,000 tons of composite fibers annually. The products are widely used in non-woven fabrics, automotive interiors, geotextiles, carpets, filtration and many other fields.

With outstanding product quality and a good market reputation, the company has maintained a leading position in the field of polypropylene fiber manufacturing in Asia for many consecutive years. Since its establishment, the company has always regarded social responsibility as an important cornerstone of its development. Adhering to the business principles of integrity, mutual benefit and equality, it is committed to pursuing economic benefits while actively fulfilling its social responsibilities to shareholders, employees, suppliers, customers, consumers and the environment.

This report aims to comprehensively and deeply expound on the company's practices and achievements in social responsibility in 2024, demonstrating our commitment and actions as a "corporate citizen", as well as our firm commitment to sustainable development.

01 Management Rights Protection

The company strictly adheres to the requirements of relevant laws and regulations such as the Company Law and the Articles of Association, and has established a corporate governance structure featuring clear rights and responsibilities, scientific decision-making, and coordinated operation. The board of directors, the board of supervisors and the management team each perform their duties, check and balance each other, and jointly promote the healthy development of the company. The company attaches great importance to the construction and improvement of the internal control system. By formulating and implementing a series of rules and regulations, it ensures the standardization and transparency of the company's operation. Meanwhile, the company actively strengthens communication and interaction with investors, holds regular shareholders' meetings, discloses company information in a timely manner, and effectively safeguards the legitimate rights and interests of shareholders and investors.

02 Employee Rights Protection

(1) Improve the guarantee system: The company strictly adheres to national laws and regulations, provides equal employment opportunities for employees, and establishes and improves the salary and welfare system to ensure that employees enjoy benefits such as the five social insurances and one housing fund. Meanwhile, the company has also established a complete labor protection system, providing employees with a safe and healthy working environment. Regular occupational health examinations are conducted for employees to ensure their physical and mental well-being.

(2) Strengthening training and Development: The company attaches great importance to employee training and career development. Through various means such as internal training, external further education, skills competitions, and online learning platforms, it continuously enhances the professional skills and comprehensive qualities of its employees. The company has also established a complete promotion mechanism, providing employees with broad career development space and promotion opportunities, and encouraging them to constantly pursue excellence.

(3) Emphasizing humanistic care: The company pays close attention to the spiritual and cultural needs of its employees and regularly organizes a variety of cultural and sports activities, such as employee sports meets and art evenings, to enhance employees' sense of belonging and cohesion. Meanwhile, the company has also established channels for employees to express their demands, such as suggestion boxes and online feedback platforms, actively listening to their opinions and suggestions, and striving to build harmonious labor relations.

(4) Ensuring work Safety: The company has always prioritized work safety, established and improved work safety management systems and emergency response plans, strengthened work safety publicity and education, and enhanced employees' safety awareness and self-protection capabilities. Through regular safety inspections and hazard investigations, potential safety hazards can be identified and eliminated in a timely manner to ensure the safety and stability of the company's production and operation.

03 Protection of suppliers, customers and Consumers' rights

(1) Safeguarding the interests of suppliers: The company adheres to the principles of fairness, impartiality and transparency in procurement, and establishes long-term and stable cooperative relationships with suppliers. By providing value-added services such as technical support, information sharing, and cooperative research and development, we help suppliers improve product quality and service levels, achieving mutual benefit and win-win results. Meanwhile, the company also attaches great importance to the social responsibility performance of its suppliers and gives priority to those that meet environmental protection, labor rights and other standards.

(2) Meeting customer Needs: The company always puts customers at the center, pays close attention to changes in market demands, and constantly optimizes the product structure and service processes. By providing high-quality products, personalized solutions and considerate services, we have won the trust and support of a wide range of customers. The company has also established a customer feedback mechanism to promptly collect and handle customer opinions and suggestions, and continuously enhance customer satisfaction.

(3) Protecting consumers' rights and interests: The company strictly controls product quality and implements a full-cycle quality monitoring system to ensure that products comply with national and industry standards. Meanwhile, the company has also established a complete after-sales service system, providing services such as product warranty and return and exchange, promptly resolving problems encountered by consumers during use, and safeguarding the legitimate rights and interests of consumers. In addition, the company also actively carries out consumer education activities to enhance consumers' understanding and usage skills of the products.

04 Environmental Protection, Energy Conservation and sustainable Development

(1) Technological Innovation and Green Development: The company has always adhered to the concepts of technological innovation and green development, actively introducing advanced environmental protection technologies and equipment, such as highly efficient and energy-saving production facilities and wastewater treatment and reuse systems, to enhance resource utilization efficiency and reduce environmental pollution. In 2024, the company successfully applied for a provincial enterprise technology center and a provincial industrial design center, further promoting the process of technological innovation and green development. Meanwhile, the company has also increased its investment in research and development innovation, and is committed to developing new products and technologies that are more environmentally friendly and energy-saving.

(2) Environmental Protection System Construction: The company has passed the ISO9001:2015 Quality Management System Certification, ISO14001:2015 Environmental Management System Certification, IOS50001:2018 Energy Management System Certification, IOS45001:2018 Occupational Health and Safety Management System Certification, and the third-level safety Production Standardization Certification. The company is constantly improving its environmental protection system and management framework to ensure environmental compliance during the production and operation process. Meanwhile, the company has also established an environmental protection monitoring and reporting system, regularly releasing environmental protection data to the public and accepting social supervision.

(3) Completion of Photovoltaic projects and Energy conservation and emission Reduction: In July 2024, the company's photovoltaic project was successfully completed and put into use. This project adopts high-efficiency photovoltaic modules and an intelligent monitoring system, with an annual power generation of approximately 6.5 million kW·h. It not only meets part of the company's production electricity demand but also significantly reduces the company's operating costs. More importantly, the implementation of this project effectively reduced carbon dioxide emissions by approximately 7,896 tons, taking a solid step towards the company's goal of achieving carbon neutrality. The successful implementation of the photovoltaic project not only demonstrates the company's determination and strength in environmental protection and energy conservation, but also sets a model of green development for the industry. In the future, the company will continue to explore and utilize renewable energy sources such as wind and geothermal energy to further reduce carbon emissions.

(4) Green Factory Construction: The company actively responds to the national call for green manufacturing and regards the construction of green factories as an important measure for its sustainable development. Through measures such as optimizing the production process, adopting clean energy (such as natural gas replacing coal), and promoting the circular economy (such as waste recycling and reuse), the company continuously reduces energy consumption and emissions, and enhances the green level of the production process. Meanwhile, the company has also strengthened its cooperation and communication with environmental protection institutions, jointly promoting the development and application of green manufacturing technologies. In addition, the company also attaches great importance to green supply chain management, encouraging suppliers to adopt environmentally friendly materials and processes, and jointly build a green industrial chain.

(V) Environmental Protection Publicity and Education: The company actively conducts environmental protection publicity and education activities to enhance employees' environmental awareness and sense of responsibility. By organizing environmental protection knowledge lectures, carrying out environmental protection theme month activities and other means, guide employees to start from small things around them, save resources and protect the environment. Meanwhile, the company also actively participates in community environmental protection activities, such as garbage classification promotion and environmental protection public welfare runs, contributing its own strength to building a beautiful community.

05 Social Responsibility

(1) Honest operation and Tax payment in accordance with the law: The company has always adhered to the principle of honest operation, strictly abided by national laws, regulations and tax policies, and actively fulfilled its tax obligations. The company has won a good social reputation and the trust and support of the government through honest operation and tax payment in accordance with the law. Meanwhile, the company also attaches great importance to business ethics and professional conduct, and resolutely resists unfair competition and illegal acts.

(2) Giving back to society and public welfare: The company actively participates in social public welfare activities, giving back to society through donating materials, funding education, poverty alleviation and assistance, and supporting the reconstruction of disaster-stricken areas. The company also pays attention to the protection of the rights and interests of vulnerable groups, such as providing employment opportunities for the disabled and offering assistance to poor families. Meanwhile, the company also actively participates in public welfare and charity activities, such as organizing employee volunteer teams to carry out volunteer service activities and donating money and materials to charity organizations.

(3) Promoting Industry progress and Development: As a leading enterprise in the industry, the company actively promotes the progress and development of the industry. Promote technological innovation and industrial upgrading in the industry by participating in the formulation of industry standards, holding industry forums, and conducting technical exchanges and cooperation. Meanwhile, the company also attaches great importance to communication and cooperation with industry associations and government departments to jointly promote the healthy and orderly development of the industry.

Looking to the future, Hubei Botao Synthetic Fiber Co., Ltd. will continue to uphold the concept of social responsibility and adhere to the path of technological innovation and green development. We will continuously enhance product quality and service levels, strengthen communication and collaboration with customers, suppliers and partners, and jointly promote the progress and development of the industry. Meanwhile, we will actively fulfill our social responsibilities, pay attention to environmental protection, energy conservation and sustainable development issues, and strive to contribute our own strength to building a beautiful China.

Specifically, we will continue to increase investment in environmental protection and energy conservation, and explore more green and low-carbon production methods and technologies. We will further strengthen cooperation and communication with suppliers, customers and partners, and jointly build a green industrial chain and ecological system. We will continue to pay attention to social public welfare undertakings and the protection of the rights and interests of vulnerable groups, and actively participate in public welfare and charity activities as well as social responsibility projects. We will actively promote technological progress and industrial upgrading in the industry, and contribute more wisdom and strength to its development.