Chengli Automobile Group's 2024 Annual Social Responsibility Report

Chengli Automobile Group's 2024 Annual Social Responsibility Report: 

Chengli Automobile Group Co., Ltd. is commonly referred to as "Chengli Group". It was founded in 2004 and its predecessor was Hubei Chengli Special Vehicles Co., Ltd. Its headquarters is located in the birthplace of Emperor Yan and Shennong, the land of ancient chime bells and music, and the capital of China's special vehicles - Suizhou City, Hubei Province. It is a diversified group company that integrates the research, manufacturing, sales, and automotive financial services of automobiles, special vehicles, new energy vehicles, automotive parts, and emergency equipment.

It currently covers an area of over 5,000 mu, has 13,000 registered employees, a building area of more than 2 million square meters, and various large-scale production equipment totaling over 5,000 units (sets). It has 17 subsidiaries, over 100 specialized factories, and 40 member factories. Annually, it can produce 50,000 sets of automotive chassis, 100,000 specialized vehicles, over 10,000 new energy vehicles, and 20,000 sets of emergency equipment. 

The enterprise has complete qualifications and has obtained certifications for ISO 9001 quality management, ISO 14001 environmental management, ISO 45001 occupational health and safety management, after-sales service system, energy management system, national military standards, confidentiality and defense construction supporting service qualifications, 3C mandatory certification, and possesses scarce qualification resources such as dedicated vehicles, truck-mounted cranes, truck cranes, fire trucks, new energy vehicles, complete vehicle assemblies, buses, etc.

1. Chengli Automobile Group Co., Ltd. has established an energy management system. 

Chengli Automobile Group Co., Ltd. has been leading with technological innovation since its establishment and has been committed to developing energy-efficient, high-performance, low-carbon and green industries. To further enhance the management level of energy usage and improve energy efficiency, the company has decided to establish an energy management system based on the GB/T23331 standard. For this purpose, the company has specially established a cross-departmental system construction working group led by the deputy general manager in charge of business. They have successively carried out tasks such as formulating the policy and objectives, planning the process, compiling documents and records, and checking the implementation status, and have achieved good results. The company's energy management system has passed the on-site certification audit.

II. Chengli Automobile Group Co., Ltd. Conducts Special Safety Production Activities 

In conjunction with the safety production month activities, the company organized employees to participate in the safety production knowledge competition and answer questions. The company's trade union awarded cash rewards to those who performed well in the competition. This activity enhanced the enthusiasm of front-line employees in learning safety production knowledge, improved their safety awareness, and was conducive to the continuous advancement of safety work. 

The Safety and Environmental Protection Center has formulated an emergency response plan. During the Safety Month activities, personnel from each production workshop participated in organizing emergency drills. The drill content included how to escape, self-rescue, call for help, and put on protective clothing in the event of a leakage in the production area. Through this emergency drill, the on-site personnel's emergency knowledge and safety awareness regarding how to escape and self-rescue in the event of an unexpected incident were enhanced.

III. Efficient Management of Chengli Automobile Group Co., Ltd. 

The company, in accordance with modern enterprise management requirements and in line with corporate governance norms, implements a management system involving the board of directors and the management team. It strengthens the standardization and institutionalization of decision-making procedures and meeting rules. It ensures the scientific, standardized and professional level of major decisions. During the decision-making process of investment projects, the company comprehensively considers the economic, environmental and social impacts of the projects, conducts in-depth research on both the enterprise interests and social effects, creates a win-win situation between the enterprise and society, and continuously achieves sustainable development. 

Every year, a risk assessment is conducted for all business processes of the entire company. Risks are identified, and major risks and general risks are distinguished. Based on the risk level, preventive plans are established to ensure that risks are under control and to improve high-risk business processes. 

Every year, external consulting firms are hired to conduct internal control audits and evaluations for the company, and to conduct audits on the entire business process of the company, in order to ensure that the company's operations are legal and compliant, assets are safe, financial reports and related information are true and complete, improve operational efficiency and effectiveness, and promote the company to achieve its development strategy.

IV. Social Responsibility Practices of Chengli Automobile Group Co., Ltd. 

The company earnestly implements the safety production policy of "Safety First, Prevention Foremost, Comprehensive Management", always prioritizing safety work. For each position, there are safety operation procedures, operation instructions, and standardized job operation standards. Corresponding labor protection supplies are regularly distributed to ensure the labor safety and occupational health needs of the employees. 

The company strictly adheres to the relevant regulations on recruitment and employment, and has never hired child labor. For newly recruited employees, a written labor contract is signed in accordance with the law, and the employment registration is handled by the relevant authorities. The employment department also handles the employment registration and other related procedures. All the registration procedures remain at 100%. The company strictly implements the relevant policies and regulations on work-related injuries and occupational diseases as stipulated by the state. According to the provisions of the "Occupational Disease Prevention Law", when signing the labor contract (including the employment contract) with the employees, the possible occupational disease hazards and their consequences, as well as the occupational disease prevention measures and benefits during the work process, are truthfully informed to the employees, and this is written in the labor contract without any concealment or deception. During the period of already signed labor contracts, if the job position or work content changes and the employees are engaged in the work that was not informed in the signed labor contract and involves occupational disease hazards, they will be truthfully informed to the employees and the relevant terms of the original labor contract will be negotiated and changed. 

The company ensures that underage workers do not engage in toxic or hazardous work, or work of the fourth level of physical labor intensity as stipulated by the state, nor any other prohibited work. The company safeguards the legitimate rights and interests of female employees, ensuring that female employees, menstruating female employees, pregnant female employees, and lactating female employees do not undertake prohibited work. Pregnant female employees are given a maternity leave of no less than 14 weeks. Female employees who are seven months pregnant or older are assigned to long shifts. The company has never delayed the payment of maternity insurance for employees and has ensured the legitimate rights and interests of female employees. The company strictly follows the regulations of the state and local governments, and pays social insurance for all employees on time and in full, maximizing the protection of employees' rights and interests. 

The company advocates a people-oriented approach, providing employees with a comfortable working environment and safe and reliable working conditions. It also establishes a salary distribution system based on job performance. For key and core talents, it increases the efforts in recruitment, reserve and training, offering opportunities and platforms for employees' growth, creating a favorable competitive environment for employee development, and promoting the common growth of employees and the enterprise. 

The company actively conducts vocational skills training and education. It adopts an internal and external combined approach, organizing training in phases and by categories. Through examinations and on-site operations, it assesses the training outcomes, significantly enhancing the comprehensive management capabilities of managers and the vocational skills of operational personnel.

V. Chengli Automobile Group Co., Ltd. Public Relations and Social Welfare Undertakings 

The company actively participates in social welfare activities and has launched targeted poverty alleviation projects; it visits the local nursing home every year; it has invested 1 million yuan to build infrastructure such as roads, ponds, and water storage tanks in Xin Dong Village of Wanzhen Town, Suixian County, helping to develop characteristic agriculture and benefiting 320 poor households in the village to achieve collective poverty alleviation; it has recruited 260 impoverished college students and migrant workers to return to their hometowns for employment, solving their sources of livelihood; during the "COVID-19" epidemic, the company's chairman and general manager made donations and provided epidemic prevention materials, receiving unanimous praise from the society; in 2021, heavy rain and floods occurred in Zhengzhou, Luolin and other places in Henan Province. The company dispatched 6 batches of emergency vehicles totaling 13 products and some disaster relief materials to assist in flood control and disaster relief in Zhengzhou and Luolin, among which 13 products included road clearing vehicles, emergency rescue vehicles, municipal repair vehicles, drainage power generation vehicles, flatbed trailers, clothing washing vehicles, post-disaster disinfection vehicles, and flatbed trailers, fully demonstrating the company's social responsibility commitment. 

On December 20, 2023, a major earthquake occurred in Jishishan, Gansu Province. Chongli Company immediately formed a rescue team and joined forces with the joint rescue team from Suizhou City to rush to Gansu Province to assist in earthquake relief efforts. The communication command vehicle, power supply vehicle, camping vehicle, as well as quilts and warm clothes, all of which were the most urgently needed equipment and supplies in the disaster area, were included in the rescue team. The company's emergency vehicles have demonstrated significant logistical support capabilities. The Jishishan County Emergency Management Bureau sent a letter of thanks, expressing sincere gratitude and respect for the support and assistance provided by the joint rescue team of the Suizhou emergency equipment enterprises in fully supporting the disaster relief efforts in Jishishan County, Gansu Province. 

In February 2024, two instances of freezing rain and heavy snow occurred in Hubei region, causing significant disruptions to the travel of passengers coming from the south and those residing in the area. The company responded to the snowfall and moved forward to combat the ice. It promptly organized an ice removal and snow removal volunteer team, dispatching 11 professional ice removal vehicles and emergency equipment, and forming 4 subunits to rush to the provincial expressways and towns in Suizhou City. They quickly carried out rescue operations. Chengli's ice-breaking and snow removal vehicles, snow rollers, snow shovels, forklift snow removal vehicles, snow-melting spraying vehicles, expressway-specific cleaning vehicles, anti-collision vehicles, emergency command vehicles, as well as other heavy professional emergency equipment with strong capabilities, such as the aviation turbofan hot blowing snow removal vehicle, played a significant role! 

Chengli Automobile Group Co., Ltd. will surely remain true to its original mission and commitment. While providing customers with more efficient and environmentally friendly services, it will also fulfill its social responsibilities, repay its employees with concrete actions, and enhance the satisfaction of relevant parties.