2022 Corporate Social Responsibility Report

I. Preface

Advanced equipment, first-class technology, quality first, and brand first are the business philosophy pursued by our company. We always adhere to the sustainable development concept of “low-carbon, environmental protection, high efficiency, and energy saving”, put energy conservation, emission reduction, and environmental protection at the top of the company's strategic planning, and manage production to develop in a green, low-carbon, resource-saving, and environmentally friendly direction.

In order to improve internal management and optimize environmental control measures, it has successively passed the certification of ISO9001 quality management system, ISO14001 environmental management system, ISO45001 occupational health and safety management system, ISO15001 energy management system and the evaluation of the two integrated management systems, laying the foundation for the company's future development and providing our customers with high-quality gypsum board surface protection paper products.

2. Company profile

Shanxi Qiangwei Paper Co., Ltd. is a comprehensive enterprise integrating waste paper recycling, pulp and paper making, pollutant prevention and control, comprehensive resource recycling, and scientific and technological research and development innovation. It settled in Shouyang Economic and Technological Development Zone (formerly Industrial Park) in 2009. It is a key enterprise in Shouyang County to attract investment and realize economic transformation. It is also the largest paper-making enterprise in Shanxi Province and the largest gypsum board surface protection paper manufacturer in the country.

The company is divided into north and south districts. The north district covers an area of 317.54 acres and has a total investment of 2 billion yuan. In 2011 and 2014, two high-grade gypsum board surface protection paper production lines were completed and put into operation, with a total annual production capacity of 300,000 tons. In 2017, the company expanded in response to the national plastic restriction order policy to achieve innovation and leapfrog development, promote the comprehensive utilization of renewable resources, realize economic transformation, and expand the packaging paper industry.It plans to invest a total of 2.778 billion yuan, covering an area of 1,000 acres, and invest in the construction of a “gypsum board surface protection paper and wrapping paper production line with an annual output of 1.1 million tons”. Three production lines are planned: the first phase has an annual output of 300,000 tons of gypsum board surface protection paper production line (PM6), the second phase has an annual output of 450,000 tons of environmentally friendly wrapping paper production line (PM7&PM8), the third phase has an annual output of 350,000 tons of wrapping paper production line (PM9) and two “sewage treatment stations with a daily treatment capacity of 40,000 cubic meters”, hot-drying rooms, warehouses, office areas and other supporting facilities.At present, the first phase of the gypsum board surface protection paper production line (PM6) with an annual output of 300,000 tons in the southern District was completed and put into operation at the end of June 2022, covering an area of 358 acres; the second phase of the environmental protection packaging paper production line (PM7&PM8) with an annual output of 450,000 tons is expected to be completed and commissioned in September 2023.

Shanxi Qiangwei Paper Co., Ltd. currently has three papermaking production lines, advanced copying equipment, stable operation technology, and more than 740 employees.In 2022, the output value will be 1.72 billion yuan, the industrial added value will be 380 million yuan, the operating income will be 2.06 billion yuan, and the tax paid will be more than 200 million yuan.The business scope is general items: paper manufacturing; paper product manufacturing; recycling of renewable resources (except for productive scrap metals); import and export of goods; sales of coal and products; sales of non-metallic minerals and products; sewage treatment and its recycling; metal processing machinery manufacturing; research and development of resource recycling technology.(Except for projects that must be approved in accordance with the law, independently carry out business activities in accordance with the law with the business license) Licensed projects: road cargo transportation (excluding dangerous goods).(For projects that must be approved in accordance with the law, business activities can only be carried out after approval by the relevant departments. The specific business projects are subject to the approval documents or license documents of the relevant departments).

Since 2016, the company has actively carried out product technology research and development, and has applied for “a multi-stage crushing device for environmentally friendly waste paper”, “a production process for high-whiteness gypsum board surface protection paper”, “a production process for increasing the strength of gypsum board surface protection paper”, “a papermaking device for paper water removal”, “A gypsum board surface protection paper on paper and under paper production process”, “A production process for laminating paper on paper and under paper”, “A Dulong bar for the storage and transportation of gypsum board surface protection paper finished paper rolls” and many other utility model patents, All have now been granted patent rights.

The company has established close supply and demand relations with large gypsum board groups such as Saint-Gobain of France, Knauf of Germany, USG BORAL, Beixin New Materials, Taihe Group, etc.The products not only sell well in China, but some products are also exported to Southeast Asia, the Middle East, Central Asia, West Asia and other countries, gradually integrating with the world.

In the course of its development, the company has successively won dozens of honors such as “high-tech enterprise”, “Provincial-level Enterprise Technology Center”, “Advanced Enterprise in Scientific and Technological Innovation”, “Advanced Enterprise in Project Construction”, “Advanced Enterprise in Production and Efficiency”, “Advanced Enterprise in Safe Production”, “Advanced Enterprise in Economic Development”, “Advanced Enterprise in Tax Contribution”, “Top 100 Manufacturing Enterprises in Shanxi Province” and so on.

3. Responsibility to supply chain partners

1. Effectively safeguard and protect the legitimate rights and interests of enterprise property owners, and treat all property owners equally.

2. Fulfill the promises of creditors and arrange corresponding measures to protect the interests of creditors.

3. Procurement responsibility system and policy. The person in charge of procurement is responsible for the quality of suppliers and purchased products, proposes a procurement plan in a timely manner according to demand, signs a procurement contract after review and approval by the company's leaders, and arranges the purchase inspection of the product in accordance with the purchase contract, and calculates and deducts the impurities based on the inspection results to ensure that the quantity and quality of the purchased goods are consistent with the purchase contract.

4. Protect the legitimate rights and interests of suppliers.Implement the ”win-win cooperation" strategic partnership. On this basis, the company strictly complies with the requirements of the quality system and conducts annual reviews of all suppliers as qualified suppliers. The corresponding procurement contract also performs contract reviews to ensure that the supplier's qualifications, supply capabilities, and after-sales service meet our requirements. Of course, the company also pays strictly in accordance with the payment method agreed in the procurement contract to effectively protect the legitimate rights and interests of suppliers, in order to cooperate happily with suppliers and obtain the trust of suppliers, in order to lay a more solid foundation for cooperation.

4. Assume responsibility for integrity

1.Abide by laws and regulations, social ethics, business ethics and industry rules, and the company insists on operating in accordance with the law and in good faith.In business operations, model compliance with laws and regulations, social ethics, business ethics and industry rules, pay taxes in full and on time, faithfully perform contracts, abide by commercial credit, and oppose unfair competition; effectively control product quality and improve product technical service levels, and strive to provide the society with high-quality, safe, scientific and reliable product technical services.Obtain the trust and recognition of our customers, ensure production safety, and strive to provide employees with a safe, healthy and hygienic working and living environment, protect the occupational health of employees, abide by laws and regulations, social ethics, business ethics and industry rules, and have no negative information about violations or violations.

2.Oppose unfair competition and eliminate corruption in commercial activities.Foreign companies rely on excellent products and technical services to win customer orders, carry out clean government construction activities internally, and resolutely eliminate corporate corruption.

3.Integrity management and service, establish the concept of integrity management and legal management, and fully implement the system of integrity management.The company improves the concept of integrity of its employees from the ethical category, promotes the importance of integrity to the survival of the enterprise and the significance of enhancing the personal charm of its employees, and restricts employees from the legal category. Dishonest enterprises will inevitably not be able to abide by discipline and the law, and promote corporate integrity from the regulatory aspect, including contract performance statistics, customer return visits, etc.

5. Assume responsibility for safety, environmental protection, occupational health and safety

In response to the country's emphasis on safety and environmental protection and corresponding policy requirements, the company has set up a full-time safety management department, which is responsible for the company's safety, environmental protection and occupational health, and is equipped with corresponding management personnel to engage in related work full-time.

1.Safety aspects

The company established a safety and environmental Department to be in charge of the company's environmental protection, occupational health and safety production work, implement and improve the company's safety production responsibility system, and effectively perform the main responsibilities of enterprise safety.

The company is completing the audit and certification of safety production standardization enterprises, strictly implementing the requirements of the various provisions of safety standardization, ensuring safe production, and resolutely implementing the “safety first, prevention first, comprehensive management” safety production work policy.To effectively fulfill the requirements of “safety must be managed in production, and safety must be managed in business”, the company has formulated various emergency plans and drill plans for safety accidents, and requires all departments and personnel to carry out emergency drill activities in fire protection, safety, and environmental protection to enhance the awareness of fire protection, environmental protection, and safety of all employees.

2.Environmental aspects

The company has passed ISO14001:2015 environmental management system certification and strictly complies with relevant laws and regulations on environmental protection, has applied for a "Sewage Discharge Permit", and conducts regular three-waste testing.

The company invests funds every year for the optimization, improvement and effective operation of waste gas environmental protection facilities; in accordance with relevant laws and regulations and the requirements of the Ecological Protection Bureau, it conducts regular self-testing.

Every year, the company hires qualified third-party institutions to conduct environmental monitoring and issue corresponding test reports. At the same time, the Environmental Protection Bureau will also conduct supervisory monitoring of our company from time to time.

In terms of greening, the company has always insisted that greening is one of the important aspects of environmental protection. A large number of trees have been planted in the factory area to green the factory area, beautify the factory area, purify the air, prevent the spread of noise, regulate the temperature, and improve the climate of the factory area.

3.Occupational health and safety aspects

By strictly complying with the requirements of occupational health-related laws and regulations, the company organizes qualified medical institutions to conduct occupational disease physical examinations for employees in occupational disease hazard positions every year, strictly implements occupational disease physical examinations for employees before they take the job and before they leave the job, and establishes and improves the guardianship files of occupational health practitioners.

6. Environmental and social responsibility

The company has always taken “energy conservation and consumption reduction, compliance with regulations, and environmental improvement” as its policy, and regards the construction of resource-saving and environment-friendly enterprises to achieve the harmonious development of energy and the environment as the company's important social responsibility, and insists on environmental protection and the promotion of energy conservation and emission reduction as important tasks, and insists on taking the road of sustainable development.

1. Energy saving and consumption reduction management

The company's energy management organization is complete, and a leading group for energy-saving work headed by the general manager has been established to conduct special research and deploy the company's energy-saving work. The comprehensive office is used as the daily office to be responsible for the daily work of energy-saving management, clarify work responsibilities, and improve the rules and regulations of energy management, and effectively implement the system to workshops, sections, teams and individuals.In 2022, the company will continue to implement economic responsibility system assessment, production management assessment and consumption quota management, focusing on strengthening the assessment of backward indicators to promote management with assessment and reduce consumption with management.At the same time, strengthen the convergence and coordination of all aspects of production, strengthen the efficiency assessment of production lines, consolidate the establishment of the concept of circular economy, strengthen the recycling and reuse of energy, and continuously improve the efficiency of energy use.Through process optimization, subject research, equipment transformation, technological innovation, standardization and refinement of operations and other measures at the same time, the enthusiasm of employees for innovation burst out, and many energy-saving measures and technological transformation plans were independently proposed by employees and successfully implemented. Energy-saving and consumption-reducing work has continued to advance, with remarkable results.

2. Environmental protection management

The company's environmental protection management hardware and software facilities are complete, and the company's environmental protection policies, goals, indicators and management plans are formulated in accordance with the ISO14001 system standards to effectively control each environmental factor.Equipped with full-time environmental protection personnel, a series of operating instructions covering all positions of environmental protection have been established.

In 2022, the company will always carry out production activities in accordance with the requirements of environmental impact assessment and “three simultaneous”, and there will be no problem of excessive emissions.The emission reduction effect is obvious, which is lower than the standard of the sewage discharge permit, the emergency measures have been continuously improved, and the environmental management work has been significantly improved.

7. assume social responsibility

Over the years, the company has adhered to people-oriented, actively participated in social welfare undertakings, initiated and participated in social welfare activities many times, and actively communicated with stakeholders to promote long-term stable development and social harmony.We have always adhered to the concept of ”rejuvenating the country with science and technology, serving the country with industry", fulfilling our commitment to repay the society, and actively assuming social responsibilities.

In 2022, the situation of the new crown pneumonia epidemic is serious and affects the hearts of countless people. Our company actively supports the prevention and control of the epidemic, and has voluntarily donated many times free of charge to contribute to the fight against the epidemic. It fully demonstrates the spirit of social responsibility of Qiangwei Paper and also demonstrates the entrepreneurial spirit of Shouyang in the new era.Qiangwei Paper hopes to make some contributions to the medical heroes fighting on the front line, send love, support and encouragement, and fight with them.

Shanxi Qiangwei Paper Co., Ltd.

January 2023