Sichuan Jinxing Yidu Building Materials Co., Ltd.Corporate Social Responsibility Report

(2023Annual)

Sichuan Jinxing Yidu Building Materials Co., Ltd. was established in2007, specializing in research, development, manufacturing, sales, construction engineering, and technical services for building waterproofing and thermal insulation new materials. As a national high-tech enterprise, the company provides comprehensive waterproofing system solutions for large-scale infrastructure projects such as high-speed rail, metro systems, highways, tunnels, airports, industrial and civil buildings, and utility corridors. It is a leading supplier of waterproofing systems in Southwest China, offering a wide range of products and advanced technological capabilities.

As a company located in a city (prefecture) recognized for steady industrial growth and successful transformation, we are committed to enhancing our independent innovation capacity and advancing high-tech industries. We aim to build a high-level innovation platform, focusing on R&D of waterproofing membranes, and implementing four strategic initiatives: 'Talent Development, Sustainable Growth, Leading Enterprise Revitalization, and Technical Standards'. Through continuous research on waterproofing membrane technologies, we have developed a series of proprietary composite material core technologies and launched high-tech, high-value-added product lines, accelerating industrialization and scale-up. We are increasing investment in science and technology to strengthen innovation and intellectual property acquisition, cultivating and expanding our innovation team, gradually achieving a virtuous cycle of talent, technology, and economic development. We promote integrated industry-academia-research collaboration, positioning ourselves as a key R&D and production base with nationally leading technical capabilities, supporting the advancement of our company’s and Sichuan Province’s waterproofing membrane technologies, talent cultivation, technology transfer, and industrial upgrading.__T8__

The companyadheres to"Pioneering a Green Future" as itscorporate mission, having received multiple honors including High-Tech Enterprise certification, Sichuan Provincial Enterprise Technology Center, China Building Materials Top 500, China's Top 20 Waterproofing Companies, National Leader in Building Materials Quality, Sichuan Province's "Specialized, Precise, Unique, and Innovative" Small & Medium-Sized Enterprise, Sichuan Province's 2021 "Honest Enterprise", Sichuan Famous Product, Sichuan Renowned Trademark, and full product line certification from China Environmental Labeling and Green Building Materials standards.

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I. Employee Growth and Rights Protection

We uphold equal consultation and enforce labor contracts through various channels—including forums, grassroots surveys, and employee WeChat groups—to actively listen to staff feedback. For key concerns such as welfare, workplace safety, labor protection, and training management, information is communicated transparently across all levels to ensure policy clarity and widespread awareness.

(1) Improve Leadership Selection Procedures to Foster a Fair Competitive Environment

To broaden career pathways, the company continues refining leadership appointment processes, fully engaging employees’ initiative and motivation to identify, nurture, and retain talent while establishing a fair, just, and open competitive culture. Key measures in talent development include:

1. Annual promotion competitions for key positions; incumbent staff participate via performance reports, enabling a flexible 'up-or-down' mechanism.

2、Refine talent development plans for management, technical, and operational roles and implement them.

3、Clearly define promotion criteria and methods for all management and technical roles; conduct annual performance evaluations to ensure merit-based advancement and talent optimization.

4、Establish incentive mechanisms for talent development to boost motivation among both mentors and trainees.

5、New hires are paired with experienced mentors to ensure rapid job proficiency.

6、Implement support mechanisms for external talent—offering preferential treatment in housing, leave, family visits, and compensation—to attract and retain top professionals.

(2) Conduct Employee Training to Enhance Skill Levels

Based on company development and operational needs, we carry out diverse training programs according to the annual training plan.2023Year, the company organized 24 internal training sessions at department level or above, involving 639 participants, significantly improving skills in critical technical roles. A working group was established to guide implementation. Employees participated in safety and occupational health training and exams, watched 7 safety education videos, conducted 4 fire drills and comprehensive emergency exercises (239 participants). Regular inspections were carried out, with corrective actions taken for identified safety hazards and environmental issues. All staff took part in labor protective equipment experience sessions. The company union also organized job skill contests based on actual needs.__T42__

(3) Optimize Performance and Compensation Systems with Salary Increases

To further standardize performance management, we continuously improve performance systems to build core competitiveness, foster a competitive environment between high- and low-performing employees, and support the achievement of overall business goals.Since 2019, the company has adopted a 'same position, different pay' performance management model, clearly defining evaluation criteria for high and low performance levels. This approach effectively motivates employees. The Administration and HR Department conducts performance coaching across departments, using performance management as a key tool in team building and organizing performance evaluation activities that significantly enhance team-level performance management.

To maximize the motivational impact of compensation, the companysince 2020 has introduced the Rationalization Proposal Award and Special Contribution Award, categorizing rewards into first, second, and third prizes based on the benefits generated by suggestions or the magnitude of contributions.

(4) Prioritize Public Welfare and Create a Comfortable, Harmonious Work Environment

1. Organized summer cooling campaigns distributing refreshing drinks such as Banlangen granules, Huoxiang Zhengqi liquid, cooling oil, and mung bean soup. 2. Launched assistance and visitation programs for hospitalized employees, elderly party members, and underprivileged students, providing help where needed. 3. Organized cultural and sports activities for International Women’s Day and Labor Day. 4. Enforced an 8-hour workday, 40-hour workweek schedule with paid leave. Overtime during statutory holidays is compensated per regulations. For employees unable to follow fixed schedules due to work demands, flexible or irregular work hours are implemented. Leave entitlements for holidays, maternity leave, and bereavement leave comply fully with national laws.__T50__

(5) Uphold Scientific Rights Protection and Build a Harmonious, Win-Win Labor Relationship

1、Continuously strengthen legal and policy learning to improve democratic management. The union organizes ongoing study of laws such as the Trade Union Law and the Law on Women’s Rights Protection, enhancing employees’ awareness of participation in corporate democracy.

2、Further deepen factory affairs transparency and democratic management, gradually institutionalizing and standardizing practices. The company leads this effort through comprehensive oversight, regular discussions, and timely resolution of challenges. To make transparency truly a 'people-centered' 'benefit-the-people' project, we adhere to the principle of enabling employees to 'know the company’s situation, manage company affairs, and supervise company operations.' We integrate transparency into team building, addressing employees’ most pressing concerns through pre-shift meetings, team discussions, heart-to-heart talks, and team learning sessions.一项得民心的"Benefit-the-People" project, aiming to let employees "understand company conditions, manage company matters, and monitor company actions."、manage company affairs, supervise company actions"，through team meetings, discussions, one-on-one conversations, and team learning.

3、Continue deepening factory affairs transparency. First, strengthen democratic management systems and lay solid foundations. Ensure trade union representatives exercise their rights, safeguard employees’ right to know and participate in company development, and conduct assessments for matters affecting employees’ immediate interests, ensuring effective representation in monitoring major labor relations and critical employee issues. Second, establish robust democratic management mechanisms and a coordinated work structure, ensuring unified leadership by Party committees, joint responsibility by Party and administration, collaborative efforts by relevant parties, and broad employee involvement. Third, strengthen supervision of system implementation to improve quality. Establish a closed-loop process: "establish standardized operation → evaluation criteria → strict inspection and rectification → improvement," driving continuous self-improvement and healthy development of democratic management systems. Fourth, stimulate intrinsic motivation for democratic management and enhance practical effectiveness. Continuously enrich effective forms such as 'Internet +' democratic management and information disclosure, improving convenience, flexibility, and interactivity of factory affairs transparency so employees gain greater satisfaction during participation. Party committee-led, jointly managed by Party and administration, coordinated by relevant departments, and widely participated in by employees."Establish system, standardized operation—evaluation criteria—strict inspection, rectification, and improvement"the closed-loop democratic management workflow, promoting continuous self-improvement and healthy development of democratic management systems.

4、Continuously standardize equal consultation and labor contract systems. Maintain consistency between equal consultation and contract signing, aligning with the Labor Law and other laws and regulations, and adapting to the company’s actual development needs. Continually improve collective contract quality. Strengthen accountability for contract execution, ensuring checks, supervision, and implementation to enhance the seriousness of labor contracts.

II. Giving Back to Society and Fulfilling Corporate Social Responsibility

(1) Advocate Low-Carbon Emissions and Build a Green Home

For years, the company has prioritized land conservation, waste resource recovery, non-toxic raw materials, and clean production. We continue increasing environmental investments to build a green enterprise. By using low-noise fans and motors, we reduce noise pollution. Automatic soundproof and dust-proof roll-up doors are installed in workshops and warehouses, effectively protecting residents’ living environments and minimizing occupational risks for inspection personnel.

The company implements regionalized greening management. It has developed the "Emergency Response Plan for Sudden Environmental Incidents" and strictly follows environmental warnings issued by regulatory authorities, publicly disclosing environmental monitoring data.

The company upholds the core philosophy of"Quality Assurance with Energy Reduction, Green Development," striving to become a resource-efficient, environmentally friendly, innovative, and socially responsible enterprise. We place great emphasis on greening within and around the factory. To improve overall greenery, we divide the entire plant into zones managed by respective departments. Drought- and cold-resistant tree species are used, achieving optimal ecological benefits at lowest cost, resulting in well-balanced, layered landscaping with varied density and height.

2023Year, the company achieved 100% disposal rate for solid waste through recycling and authorized third-party handling, realizing significant social benefits through waste resource utilization—benefiting both the nation and its people—and making substantial contributions to regional solid waste management and urban development.__T91__

(2) Engage in Public Welfare and Give Back to Society

Participating in public welfare and giving back to society is a vital way modern enterprises fulfill their social responsibilities. While growing steadily, the company actively contributes to society by participating in various charitable activities, creating greater social value, enhancing its reputation, and achieving a balance between business performance and social impact.

Pay taxes to support local economic development.In 2023the company maintained strong business performance, contributing meaningfully to local economic growth.

Actively engage in public welfare initiatives.In 2023the company organized multiple employee donation drives for left-behind children and underprivileged students, voluntary blood donations, and care visits to elderly party members.

III. Continuous Development

Under the support of government agencies and strong leadership, we are committed to transforming old and new drivers of growth, exploring green, intelligent, and eco-friendly upgrades, embracing innovation and forward-thinking strategies, constantly challenging ourselves, and pushing boundaries to drive faster, better development. We aim to create outstanding economic, environmental, and social benefits, making even greater contributions to local economic development!

Sichuan Jinxing Yidu Building Materials Co., Ltd.

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