Preface

1. Social responsibility refers to the responsibility of a company to its employees, customers, environment, and society while creating profits, pursuing development, and safeguarding shareholder interests. Zhejiang Huixin Transmission Machinery Co., Ltd., as a highly skilled enterprise specializing in research, production, sales, and service in the field of injection molding in China, has the courage to assume social responsibility. While developing the company, it continuously improves its corporate governance structure, strengthens technological innovation and employee development, promotes lean production management, deeply carries out energy conservation and emission reduction work, and actively participates in social public welfare undertakings, Promote the comprehensive, natural, and coordinated development of the company and society. 2. This report covers the overall social responsibility performance of the company in 2019. Based on the long-term and continuous nature of social responsibility performance, the content covered in this report includes but is not limited to 2019. I hope this report can become a bridge for communication and circulation between the company and various sectors of society, and a window for investors, suppliers, customers, and creditors to understand and recognize the company. At the same time, we also welcome all sectors of society to supervise the company, provide valuable suggestions for its sustainable development, promote the company's better progress and development, and also better repay society. 3. This report is prepared based on relevant laws, regulations, and normative documents such as the Company Law, and in conjunction with the actual situation of the company in fulfilling social responsibility. It is a summary of the company's work related to fulfilling social responsibility in 2019.

Chapter 1 Company Overview

Zhejiang Huixin Transmission Machinery Co., Ltd. Established in the 1980s, located in Ouhai District, Wenzhou City, Zhejiang Province. It is a professional R& D. A high-tech manufacturing enterprise that mainly produces and sells reducers, and is also a senior member unit of the China Reducer Association and the China Gear Professional Association. The company has an exquisite and excellent technical service team and numerous cutting-edge processing and testing equipment in China, aiming to create efficient services and more excellent quality. The company adheres to promoting sustainable development of the enterprise through technological innovation. Its main series of products include cycloidal reducers, worm gear reducers, mechanical continuously variable transmissions, modular reducers with hard tooth surfaces, and industrial gearboxes with hard tooth surfaces, which have won the trust and praise of users for many years. The company's unremitting pursuit is to "gather the elites of the world and improve the quality of the Xin nation". We believe that high cost performance products and services, as well as nearly thirty years of honest management, will definitely lay a solid foundation for mutual trust, mutual benefit, and mutually beneficial cooperation, and create brilliance together with our partners who work together with Huixin!

Chapter 2 Protection of Shareholders and Creditors' Rights and Interests

1. Shareholders are the fundamental foundation for the survival of a company, and their recognition and support are the driving force for promoting the healthy development of the company. As investors of the company, shareholders enjoy the rights of owners to share profits, make significant decisions, and choose managers. As the prepayments of the company, creditors have the right to recover the principal and interest of the loan upon maturity. It is the obligation and responsibility of the company to protect the rights and interests of shareholders and creditors, and to treat all shareholders fairly and openly. During the reporting period, the company strictly followed the relevant provisions of laws, regulations, and systems such as the Company Law, conducted self inspection and supervision activities on corporate governance, rectified internal control issues, and revised and improved the Company's Articles of Association. Continuously strengthening and improving corporate governance, standardizing company operations with integrity, establishing and improving internal management and control systems, effectively improving the company's management level.

2. Corporate Honors

Chapter 3 Protection of the Rights and Interests of Company Employees

Employees are the most important resource and wealth of a company, and the relationship between the company and employees is not just about hiring and being hired, but rather a interdependent and harmonious cooperative relationship. The company has established and improved its trade union organization, promoting the healthy and harmonious development of the company. 1. Establish harmonious labor relations, safeguard and safeguard the basic rights of employees. The company strictly complies with laws and regulations such as the Labor Law, the Labor Contract Law, and the Implementation Regulations of the Labor Contract Law. The company signs labor contracts with all employees in accordance with the principles of equality, voluntariness, and consensus through consultation, ensuring the legitimate rights and interests of employees. The labor contract signing rate reaches 100%. The company has not experienced any labor disputes caused by labor relationship management throughout the year. 2. For employees, salary and benefits reflect their personal value and social status, and are the most effective incentive method that aligns with social value orientation. The company has continuously improved its labor management system, strengthened labor employment management, and established a comprehensive salary management system for many years. The company's human resources department has established a "salary design system based on employee abilities", which is based on the relevant length of service, education, and Determine salary based on work ability, etc. The company's salary and welfare policies comply with relevant national laws and regulations, and monthly wages are paid in a timely and sufficient manner. The reasonable range of employee compensation is determined by taking into account factors such as external competitiveness, internal company nature and motivation, the overall salary level of the company, and corporate benefits. The company pays social insurance (pension insurance, medical insurance, maternity insurance, work-related injury insurance, unemployment insurance) for employees, and implements paid leave, medical examination, and other benefits. 3. The training and development company has established a complete training system. Based on the talent reserve requirements required for company development and the personal career development of employees, a talent echelon development plan has been formulated according to the principle of hierarchical classification, and implemented during the reporting period according to the plan process. At the same time, the company strives to develop an internal team of high-tech talents, combines external resources, implements diversified training methods, systematizes training courses, and focuses on promoting the evaluation and improvement of training effectiveness. Through systematic training, employees can improve their knowledge, skills, work methods, and concepts, increase their sense of belonging and cohesion, and enable them to continuously enhance and surpass their self-worth. 4. The Care for Employees company has invested in building a comfortable living area for employees, equipped each employee dormitory with air conditioning, water heaters, desks, wardrobes, and bathrooms, allowing employees to live in a well-equipped collective dormitory building. In terms of cultural life, the company organizes cultural and sports activities to improve the leisure cultural life of employees. The company has invested a large amount of funds to open an employee reading room, equipped with a large number of books related to the work, study, and life of the enterprise, and established a multi-functional employee entertainment center, table tennis activity room, and chess and card room. The company provides relevant benefits during the Mid Autumn Festival and Spring Festival each year, and the enterprise party and labor union often organizes some cultural and sports activities and participate in sports competitions. Every year, a New Year celebration is held, with programs written, created, and performed by employees themselves; Every year on Women's Day on March 8th, the company organizes gatherings for female employees, and also organizes female employees to travel. On July 1st, it also organizes party member outings, "two studies and one action" assistance activities, employee physical examinations, and condolence for impoverished employees.

The company leaders attach great importance to the Love Fund and poverty alleviation work. Senior leaders listen to the voices of employees in a timely manner, understand the implementation effect of employee support and security measures, and further solve the actual problems and difficulties in employees' work and life. They establish an Employee Love Fund to provide assistance to some employees who have difficulties or illnesses in life every year, and make targeted donations every year, making contributions to the development of charity. For named employees' appeals, the company has opened a general manager hotline and email to ensure smooth employee appeal channels. Whether it is suggestions or opinions, the office has conducted detailed processing and feedback on the feedback from personnel at all levels, allowing employees to understand that the company pays attention to their ideas, values their ideas, and rewards employees for providing reasonable suggestions to the company. 5. Implementation and Improvement of Safety and Environmental Management: In order to ensure safe production, the company signs detailed responsibility and responsibility certificates at all levels. Each department and workshop systematically establishes and maintains a safety production management system by improving safety awareness, strengthening safety concept promotion, and implementing various rules and regulations. The general manager of the company signs the "Safety Production Responsibility Certificate" with the heads of various departments and workshops, refining and quantifying the safety objectives layer by layer, implementing them in each workshop, and then implementing them to each employee by the workshop. The company conducts safety publicity and education by inviting experts for training, watching safety education videos, and conducting job training based on job safety characteristics. Adhere to three-level safety education for new employees, and provide safety education for management personnel, team leaders, and technical personnel. Make full use of safety seminars, middle-level cadre meetings, and all employee meetings to deploy, promote, and convey safety work, so that all employees are aware of the safety work concept of "people-oriented and caring for life", and propose a shift in safety awareness from "not harming oneself" to "protecting others from harm". The company provides safety education and training to all employees, regularly promotes safety laws and regulations, and conducts case analysis of safety accidents. The workshop provides education on production characteristics, and the team provides targeted education on production safety issues. Analyze the causes of emergency accidents that have occurred, develop preventive measures, conduct on-site inspections of similar safety hazards, and carry out safety education for all personnel. At the same time, various themed "Safety Month" activities are held every year to strengthen education and solidify management systems for the main safety hazards exposed during the production process.

Chapter 4 Protection of Rights and Interests of Suppliers and Customers

The company adheres to the principles of honest operation, mutual benefit, and common development, and pays attention to protecting the legitimate rights and interests of various market entities. Adhere to ensuring quality from the source and achieving sustainable development. The company adheres to the concept of "win-win cooperation" and operates in a "bundled" manner for suppliers and partners. At the same time, professional personnel are also stationed to provide on-site guidance and improvement for suppliers and partners, achieving a win-win situation.

1. Establishing strategic partnerships with suppliers

① The Supply Rationality Cooperation Company categorizes suppliers into three categories based on annual procurement volume and materials: commercial, priority, and strategic partnership, following the principle of balancing quality, cost, delivery, and service. The company attaches great importance to the implicit cost management of supply (procurement cycle, inventory, transportation and other implicit costs), and incorporates suppliers into the timely delivery system to minimize inventory and reduce the total cost of the company The supplier assessment company adjusts the content of the qualified supplier list annually based on the comprehensive supplier evaluation results. When the company enters into annual supply agreements with priority suppliers and strategic partner suppliers, it also enters into quality technology agreements as attachments to standardize and evaluate supplier quality management capabilities. 2. Customer demand attention

Providing customers with high-quality and reliable products and solutions is one of the important social responsibilities of enterprises. The company has made innovations and breakthroughs in product quality management and new product research and development Establish a product quality tracking system. The company implements a strict inspection system for the products produced. The next process should be inspected for the previous process, and the quality inspector should implement a strict comprehensive inspection system Establish a quality management team to organize the establishment of a quality management working group. When the market provides feedback on quality issues or accidents, the quality team, in conjunction with departments such as technology, procurement, quality, and production, will work together to solve problems and implement improvement measures for supervision.

3. After sales service management

The company summarizes service and quality complaint information on a monthly basis, and promptly feeds back major or repetitive quality issues to the technical, quality, and production departments. Quarterly analysis and summary are conducted to form quarterly reports. The technical, quality, and production departments analyze the reasons, propose improvement measures, and communicate them to each department in the form of document notifications, which will be implemented and improved by each department. The company has also formulated management systems, service commitments, and service plans related to after-sales service, which clarify the responsibilities of the service department, the content, standards, and service implementation process of after-sales service. At the same time, in order to quickly handle customer complaints and maintain the company's reputation, relevant service documents have been formulated, detailing the responsibilities, principles, and processes of complaint handling. The entire process of procurement, acceptance, warehousing, preservation, processing, production, acceptance, packaging, transportation, commissioning, and after-sales service is strictly controlled in accordance with the standards and requirements of the ISO 9001 quality system, to meet the needs of users to the maximum extent and ensure quality and progress.

Chapter 5 Environmental Protection and Sustainable Development

1. Environmental protection

The company attaches great importance to environmental protection and has obtained ISO 14001 environmental management system certification and ISO45001 occupational health and safety management system certification. In recent years, it has been continuously improving and improving its environmental management system. The company has developed a series of procedural documents related to environmental protection, such as compliance evaluation control procedures, environmental monitoring control procedures, operation inspection and supervision control procedures, emergency preparedness and response control procedures, labor protection equipment management procedures, traffic safety management procedures, electrical safety management procedures, identification control procedures, new project control procedures, chemical/oil control procedures, fire equipment control procedures Accident handling control procedures, special equipment control procedures, solid waste control procedures, energy management procedures, stakeholder impact management procedures, exhaust/wastewater/noise control procedures, environmental factor identification and evaluation control procedures, hazard source identification and evaluation control procedures, and other management documents, and strictly implement the relevant provisions of the management procedures. In addition, according to environmental protection requirements, the company's production facilities have been renovated and improved. For example, collection and treatment devices for waste gas, waste oil, and waste metal, renovation of hazardous chemical storage management, elimination and isolation of noise, etc. In addition, the company has strengthened the promotion, education, and training of environmental protection knowledge for employees, making them aware of the importance of environmental protection. Environmental protection starts from themselves and around them. By actively implementing environmental protection measures and systems, it is also beneficial for the company's safe and energy-saving production and operation, promoting the healthy and sustainable development of the company.

2. Actively supporting public welfare undertakings

As a responsible corporate citizen, while operating in compliance with laws and regulations, we will continue to support public welfare undertakings and make positive contributions to social harmony and sustainable development. We have invested nearly hundreds of thousands of yuan.