Actively Fulfilling Social Responsibilities Building an Honest and Harmonious Enterprise

Yuhuan Putian One-Way Clutch Co., Ltd., located in Yuhuan County, Zhejiang Province, was established in 1983. As a specialized automotive parts manufacturer, the company primarily produces automotive starter one-way clutch series products, with an annual production capacity of 12 million one-way clutches and 7 million drive shafts. Over the years, the company has established long-term, stable partnerships with renowned domestic and international starter manufacturers, consistently maintaining its position as an industry leader in Asia. It has become the preferred brand for international procurement of automotive starter one-way clutches. Key clients include Tianjin Denso & Huachuan Denso, Changsha Hitachi, American Remi, Jinzhou Hana, and Beijing Petrel. The company has also become a global procurement supplier for Bosch Germany and the designated heavy-duty automotive supplier for Iskra worldwide. Products are utilized in vehicles including Mercedes-Benz, BMW, Ford, Audi, Chevrolet, Toyota, Honda, Suzuki, Nissan, Hyundai, and Kia. According to industry association statistics, Yuhuan Putian One-Way Clutch Co., Ltd. has ranked first domestically and second globally in sales volume since 2005. Sales revenue reached 288 million yuan in 2015.

After over three decades of development, the company has consistently upheld the philosophy of “Puti's cause is our shared cause.” Through relentless effort and integrity in business operations, it has established an excellent market reputation with high-quality products and superior service. For multiple consecutive years, it has been honored as a “Top 100 Industrial Enterprise” and “Dragon Enterprise” by the Yuhuan County Party Committee and People's Government. The company has also received numerous accolades including “Taizhou Famous Trademark,” “Taizhou Brand Product,” “County Advanced Collective for Quality Work,” “Zhejiang Famous Brand Product,” “Zhejiang High-Tech Product,” “High-Tech Enterprise,” “County Mayor's Quality Award,” “Provincial Advanced Unit for Caring for Migrant Workers,” “Taizhou Technological Innovation Demonstration Workshop,” “Outstanding Enterprise Trade Union for Harmonious Labor Relations,” and “Taizhou Labor Harmony Enterprise.” For multiple consecutive years, the company has also been recognized as an “Outstanding Supplier” and “Outstanding Cooperative Supplier” by renowned domestic host manufacturers including Tianjin Denso, Jinzhou Hana, Beijing Petrel, and Changsha Bosch.

For years, Putian Company has earnestly fulfilled its social responsibilities, consistently operating as a socially responsible enterprise. It upholds socialist core values and places common interests above all as its corporate ethos, organically integrating economic development with social responsibility. The company consciously assumes corresponding economic, environmental, and social responsibilities, viewing corporate social responsibility as the foundation for enhancing competitiveness. This approach has earned recognition from governments at all levels, consumers, and society at large. Specific practices include:

I. Shifting Mindset to Actively Build a CSR Framework. As economic globalization and market economies advance, corporate social responsibility (CSR) is increasingly recognized as a path to: - Enhancing corporate performance - Building reputation and positive image - Reflecting cultural orientation and values - Supporting sustainable development and improving public quality of life - Maximizing stakeholder benefits - Strengthening competitiveness and enhancing capabilities. Given current international and domestic conditions, corporate social responsibility and the establishment of comprehensive CSR systems represent an inevitable trend and the will of the people. Putian Company vigorously promotes its CSR framework, transforming mindsets to embed the principle that enterprises lacking social responsibility cannot survive in increasingly fierce competition into every aspect of its operations. This has driven the establishment of the CSR system and the company's own development.

II. Vigorously Developing the Economy to Alleviate Employment Pressure. With over 700 employees, including 158 technical professionals, the company confronts intensifying domestic and international market competition. Guided by the objectives of “modernized equipment, scaled-up industries, and high-end products,” it has invested in constructing the Shamen Binjiang Industrial Base in Yuhuan County, achieving an annual production capacity of [specific capacity]. This initiative has stimulated local economic growth, addressed partial employment pressures, reduced factors contributing to social instability, and fulfilled the company's social responsibilities.

III. Strengthening Scientific Management and Environmental Protection The company has successively obtained certifications for the ISO9001 Quality Management System, TS16949 Quality Management System, ISO14001 Environmental Management System, and OHS18001 Occupational Health and Safety Management System. Protection of the surrounding environment, employee health and safety, and other aspects further embodies the company's social responsibility. Since establishing these systems, the company has not experienced any production accidents, equipment incidents, or received any environmental complaints.

The company established its quality management system in 1997 and successfully obtained ISO 9001 certification in July of the same year. Since the system's implementation, we have prioritized customer satisfaction, ensuring a first-time inspection pass rate exceeding 98%, a customer satisfaction rate exceeding 98%, and a customer follow-up satisfaction response rate exceeding 98%.

To enhance the measurement management system, continuously improve product quality, and intensify market development efforts, the company passed measurement qualification certification in 2011. The weekly inspection rate, weekly inspection pass rate, and sampling inspection pass rate for in-use measuring instruments all exceed 98%. Notably, for pre-packaged goods measuring instruments, the weekly inspection rate and weekly inspection pass rate both reach 100%. The company has implemented clean production and energy-saving initiatives, elevating overall management standards, intensifying pollution control efforts, and enhancing employee awareness of energy conservation and consumption reduction. This has achieved the objectives of “energy conservation, consumption reduction, pollution reduction, and efficiency enhancement.”

IV. People-Oriented Approach and “Dual Care” Initiative. Putian Company consistently adheres to a people-oriented management philosophy, actively promoting the “Dual Care” initiative. This fosters corporate care for employees and employee dedication to the company, unifying individual values with corporate values to shape a quality-driven corporate culture. The company maintains a 100% labor contract signing rate with employees, providing comprehensive social insurance coverage including pension, unemployment, medical, work injury, and maternity insurance. Regular health checkups are organized, holiday gifts are distributed, and the company annually covers the costs of the Employee Medical Mutual Aid Program, totaling 150,000 yuan to date. Summer heat relief supplies are distributed each year, ensuring the protection of employees' legitimate rights and interests.

A company's conduct is the visible manifestation of its corporate culture. “Leading by example sets the tone; collective harmony defines the norm.” The company has constructed employee dormitories to actively foster an atmosphere where employees can live and work comfortably. The company invests substantial financial, material, and human resources in building a cultural center, providing employees with an excellent environment for learning and recreation. It continuously improves employee accommodation and dining conditions, transforming dormitories into hotel-like facilities and diversifying meal options. The company actively organizes employees to participate in cultural performances, fun sports meets, travel for outstanding employees, labor skill competitions, labor contests, and activities like “I Contribute an Idea for the Five Waters Governance Initiative,” fostering a positive atmosphere of unity, progress, and shared success. Implementing a strict reward and punishment system to effectively safeguard employees' economic income; strengthening labor safety awareness and inspections, enhancing safety education and training to boost employees' occupational safety consciousness, self-protection awareness, and compliance with rules and regulations; Gradually improving employee benefits, the company prioritized enhancing job competencies and production skills. Through various training methods—including inviting experts and sending staff for external training—it elevated overall employee quality, boosted labor productivity, and accelerated enterprise growth. Organizing cultural and sports activities centered on “enhancing ideological integrity, scientific literacy, and physical health,” the company strives to cultivate, shape, and unite employees through diverse recreational initiatives.

Established files for employees facing hardship, proactively assisting those in need and their families. Examples include: Li Yuehui from the Heat Treatment Workshop, who needed to pay tuition for three children attending university while caring for two elderly parents with no income; and Deng Weiquan from the Equipment Department, whose spouse suffered from a serious illness requiring substantial medical expenses. Both families faced unbearable burdens. Upon learning of their situations, the company's Party branch, labor union, Youth League Committee, and all employees spontaneously donated 50,000 yuan. This demonstrated Putian's fine tradition of “supporting those in need” and showcased the collective warmth and corporate responsibility of the enterprise.

VI. Strengthening Corporate Integrity and Implementing Social Responsibility As the company grows steadily, it places increasing emphasis on integrity development, innovating integrity management models, setting integrity objectives, and establishing an integrity management system. The company enhances its foundational credit management by gathering relevant credit information through multiple channels. Concurrently, it diligently manages tax compliance, striving to integrate lawful tax payment with standardized corporate operations, thereby enhancing corporate credibility and reflecting corporate value. By paying taxes lawfully and with integrity, the company has earned high commercial credibility and expanded business opportunities. It has been consecutively recognized as a “Contract-Honoring and Credit-Worthy Enterprise,” a Class A Customs Enterprise, and an AEO-certified enterprise. Additionally, it has been honored as one of Yuhuan County's “Top 100 Industrial Enterprises” and a “Dragon Enterprise” by the Yuhuan County People's Government. The company has also received numerous accolades, including “Taizhou Famous Trademark,” “Taizhou Branded Product,” “County Advanced Collective in Quality Work,” “Zhejiang Famous Brand Product,” “Zhejiang High-Tech Product,” “High-Tech Enterprise,” “County Mayor's Quality Award,” “Provincial Advanced Unit for Caring for Migrant Workers,” “Taizhou Technological Innovation Demonstration Workshop,” “Outstanding Enterprise Trade Union for Creating Harmonious Labor Relations,” and “Taizhou Labor Harmony Enterprise.”

The company strictly adheres to relevant national laws and policies, implementing transparent pricing practices in product sales to serve society. Prioritizing consumer interests, it consistently maintains alignment with market prices, never deceiving consumers through price gouging or strategic dumping. Upholding integrity in dealing with consumers, it has effectively safeguarded the company's reputation and image.

Issues to Address in Implementing Corporate Social Responsibility. As members of society, enterprises inevitably bear certain responsibilities toward the community. Fulfilling these responsibilities promotes societal development, which in turn better drives the enterprise's own growth. The company consciously pursues social responsibility as a corporate mission. In its implementation, we still need to achieve the following:

1. Enhance comprehensive and systematic understanding of corporate social responsibility; increase attention and investment in social welfare initiatives.

2. Further explore ways to foster more harmonious internal employee relations, ensure fairer compensation distribution, achieve equitable performance evaluation systems, and better leverage the initiative of technical talent.

3. The company's product R&D capabilities require continuous strengthening and improvement, while product sales channels need deeper expansion. Taking advantage of the “Fulfilling Corporate Social Responsibility in Response to the International Financial Crisis” educational campaign, we will implement measures based on practical circumstances, learn from experiences gained, and lay a solid foundation for better fulfilling our social responsibilities.