The management of our company guarantees that the contents of this report contain no false entries, misleading statements, or material omissions, and assumes individual and joint liability for the truthfulness, accuracy, and completeness of its contents.

I. Company Overview

(1) Basic Company Information

Shaoxing Yeye Electronic Co., Ltd. is a company specializing in the production of wire harnesses and wires.

Since its establishment, the company has consistently adhered to... The eight-character philosophy of “Service, Innovation, Dedication, and Gratitude,” coupled with a business principle centered on people and integrity-based operations, integrates advanced management practices from abroad and rich corporate experience with our company’s specific realities. This approach continuously enhances our management standards and production capabilities, enabling us to achieve rapid and stable growth.

The company boasts a well-balanced talent structure, featuring a development team that dares to innovate and an advisory board composed of highly qualified, internationally experienced experts from various fields. We closely monitor technological advancements and evolving needs in the new energy sector, continuously optimizing our product performance. With professional technical support and prompt after-sales service, we provide customers with high-quality products and superior service.

The company is fully implementing. The IATF/16949:2016 quality management system, guided by the service principles of “integrity-based, people-oriented, innovation-driven for long-term success, and pursuit of excellence,” maintains close cooperative relationships with both domestic and international enterprises. Internally, the company rigorously implements the 5S management system to comprehensively enhance the competence of all employees, fostering both individual employee growth and success as a foundation for the company’s future development.

The company will, through construction... A management system characterized by “institutionalization, standardization, systematization, and normalization” continuously enhances the company’s core competitiveness and boosts its economic benefits.

(2) Corporate Governance Structure

   The company has established, in accordance with the law, a corporate governance structure composed of shareholders and the board of directors, thereby creating a mechanism in which the power body, the executive body, and the supervisory body each fulfill their respective duties, effectively check and balance one another, and coordinate their work seamlessly. Under this framework, the company has also developed and perfected a management team led by professional managers, with the overarching goal of continuously delivering outstanding investment returns to shareholders and maximizing shareholder value.

(3) 2022 Annual Business Overview

In 2022, the company proactively responded to the intricate and complex domestic and international economic environment, closely adhering to the working principle of "technological leadership driven by orders" to propel its leapfrog development. By strengthening operational control and refining management practices, the company achieved integration of diverse cultures and coordinated operations across multiple sites, laying a solid foundation for steady growth and significantly enhancing the company’s value while delivering returns to shareholders.

II. The Company’s Understanding of Social Responsibility

The company’s concept of social responsibility is an integral part of its management philosophy, and its value is reflected in its service philosophy, brand philosophy, environmental protection philosophy, employee care, and social commitment. The company has always believed that, throughout its long-term operations, enterprises must shoulder their responsibilities not only to stakeholders but also to society as a whole, thereby achieving a harmonious balance between corporate development and the sustainable growth of the economy and society. Diligently fulfilling social responsibilities is not merely a way for the company to enhance its own value and a necessary step toward transforming into a modern enterprise; it is also a concrete action that embodies the people-centered scientific development outlook and contributes to building a harmonious socialist society.

The company adheres to Our business philosophy is “Integrity and Pragmatism, Professionalism and Focus, Efficiency and Precision, and Sincere Service.” We aspire to become “a global supplier of wires, cables, and related processing and manufacturing services.” Taking the promotion of harmonious social development as our mission, we firmly implement the Scientific Outlook on Development, seamlessly integrating the concepts of sustainable development and building a harmonious society into our corporate culture. In doing so, we aim to better serve our consumers and deliver greater benefits to all stakeholders. In practice, we continuously strive for harmonious development among the enterprise, its employees, society, and nature. We place great emphasis on energy conservation and environmental protection throughout our production processes, while making every effort to safeguard the environment in which we live. Through concrete actions, we give back to society, protect the environment, care for nature, and create a harmonious development environment, thereby fulfilling our social responsibilities.

The company’s corporate social responsibility philosophy: Create value for customers, generate wealth for shareholders, provide opportunities for employees, and deliver benefits to society.

III. Social Responsibilities in Promoting Sustainable Economic Development

(1) Improve corporate governance and operate legally and in compliance.

Since its establishment, the company has continuously improved its corporate governance structure and refined its internal system framework. It has established clear regulations regarding the management’s compliance with laws and administrative regulations, as well as their fulfillment of obligations to act with integrity and diligence. The company adheres to lawful operations, pays taxes in accordance with the law, prioritizes integrity, and fulfills both legal and ethical responsibilities.

(2) Pay taxes in accordance with the law and with integrity.

Paying taxes in accordance with the law is both an obligation that enterprises must fulfill and a concrete manifestation of their social responsibility. While ensuring the sustained and healthy growth of the national fiscal revenue, taxation also plays a positive guiding role in accelerating the transformation of the economic development model, optimizing and upgrading industrial structures, and promoting energy conservation, emission reduction, and the practice of a low-carbon economy. As the company’s business continues to expand and its profitability keeps improving, ， The taxes the company has paid to the state have also increased significantly year after year. In 2022, the company paid approximately 1.684 million yuan in taxes, making a positive contribution to national tax revenue and the development of the local economy.

(3) Building Harmonious Investor Relations

Maximizing shareholder interests is one of the company’s strategic objectives. Safeguarding the rights and interests of the broad shareholder base and strengthening investor relations management are integral components of the company’s work. The company adheres to the principle of honesty and due diligence in fulfilling its information disclosure obligations. At the same time, to actively promote communication and exchange between the company and its shareholders and enable investors to gain a deeper understanding of the company’s development strategies and operational status, the company engages in proactive communication with investors through various channels, including hosting interviews with financial magazines. On the one hand, this helps better publicize the company’s investment value, boost investor confidence, and attract stable, long-term investors. On the other hand, by listening to professional insights and taking into account the company’s own production and operational conditions, the company provides valuable information and offers constructive advice to its leadership for decision-making.

(4) Provide customers with high-quality products and services.

The company always adheres to... Our quality policy—“Innovate and Improve, Foster Customer Loyalty”—sets the goal of steadily enhancing and elevating product quality as a shared objective for all employees. Through long-term practice, we have gradually established a quality control cycle system that includes: understanding customer needs, collaborative team design, manufacturing according to standardized specifications, monitoring and analyzing for continuous improvement, proactively preventing and mitigating risks, ensuring proper sales and delivery, providing robust technical support services, and continuously boosting customer satisfaction.

1. Fully implement comprehensive quality management.

In 2022, the company took the implementation of the “Great Quality” initiative as its starting point to further establish a comprehensive quality management system and adopt a “big quality” mindset. The company launched a “Quality Year” campaign across all departments, resulting in an overall improvement in work quality and a significant enhancement in product quality.

( 1) Further refine the management system and emphasize quality supervision.

The company has newly developed a set of system guidelines centered on key quality indicators. It has thoroughly reviewed and refined relevant systems and regulations covering incoming material inspection, in-process inspection, finished-product inspection, and performance testing. Emphasis has been placed on the continuous monitoring, tracking, analysis, and improvement of these key quality indicators. Innovative approaches have been introduced for daily on-site inspections, centralized inspections, and follow-up reviews of corrective actions. Monthly quality analysis meetings are held regularly, enabling systematic problem-solving—from the design stage onward—of issues encountered during production, manufacturing, and customer use, thereby ensuring effective control over the quality process. The review process for special quality-improvement projects has been strengthened, project follow-up has been enhanced, the upper limit of rewards has been raised, and the scope of rewards has been expanded, effectively driving quality improvements and significantly reducing the rate of quality complaints.

( 2) Further promote refined management and differentiated management.

The production frontline focuses on refined management, detailing control measures, improving the assessment mechanism, and enhancing operational efficiency—through... “Lean manufacturing” production directly reduces labor costs and enhances production efficiency.

( 3) Focus on deepening structural adjustments.

Continue to accelerate the adjustment of the product structure, in order to... Guided by the principles of “green and environmentally friendly + technology-driven + refined management,” we continuously deepen and optimize product structures by enhancing the versatility of products and components and refining our series and models.

3. Customer Satisfaction Measurement

The company conducts annual customer satisfaction surveys and continuously improves the survey procedures. It carries out categorized satisfaction surveys targeting strategic customers, key customers, and general customers, covering all stages—pre-sales, in-sales, and post-sales.  

IV. Social Responsibilities in Promoting Environmental and Ecological Sustainable Development

As a leading enterprise in the industry, our company is aligning itself with the future trend of low-carbon economic development and striving to build a green product production chain. We are focusing on energy conservation, clean production processes, and eco-friendly products, and meticulously controlling every stage of the product lifecycle and the entire production process. Our goal is to minimize the environmental impact of our operations and production, and we are committed to promoting green and environmentally friendly practices throughout the entire industrial chain. Through continuous innovation, we are exploring a path toward a new development model.

(1) Emphasize energy conservation.

Product manufacturing consumes significant resources and energy. Therefore, the company has consistently prioritized energy conservation as a key area of focus, continuously strengthening the construction of an energy measurement and monitoring system, promoting the adoption of new energy-saving equipment and technologies, and carrying out energy-saving technological upgrades to steadily improve energy utilization efficiency and actively advance... Construction of “Two-Type” Enterprises.

By upgrading the level of existing process equipment, enhancing green production practices, and refining management approaches, the company has improved the energy efficiency of its current production equipment and reduced waste. Before and after the technological upgrades to production equipment, significant improvements have been made in areas such as phasing out outdated equipment, simplifying process flows, and replacing human labor with machinery. As a result, both the energy consumption per unit of output and the energy consumption per unit of value-added have shown a downward trend following these improvements, playing a crucial role in the company’s own industrial upgrading and in achieving energy savings and reduced consumption. The company has also strengthened energy metering management and intensified daily monitoring of energy and resource consumption, while actively implementing technology upgrade projects.

(2) Emphasize clean production and green manufacturing processes.

The company’s production process is strictly in accordance with... We implement the ISO14001 environmental management system and continuously promote green manufacturing. The company collaborates with resource recovery companies to handle waste materials, slag, and waste paper that have no further use value. These materials are collected and processed by the resource recovery companies, and we have signed annual cooperation agreements with them.

(3) Emphasize strengthening innovation-driven development.

The company not only emphasizes energy conservation and emission reduction throughout the production process but also devotes significant effort to developing new high-end products that meet stringent energy-saving and environmental protection standards, thereby extending the concept of energy conservation and environmental protection to downstream sectors of the industry.

To protect the environment and achieve clean production. The company adheres to a high-end product R&D strategy, further refining its product R&D architecture and continuously stepping up efforts in the research and development of new products. We are constantly enhancing the integrated development, basic experimentation, and comprehensive testing capabilities of our R&D center, focusing on developing more specialized and advanced products and system solutions, elevating our technological content, and maintaining our technological leadership.

By adopting new raw materials and advanced processes, we aim to reduce material and energy consumption, conserve water, improve the environment, and actively promote clean production technologies, thereby achieving comprehensive industry leadership in technology, branding, quality, performance, and energy conservation and environmental protection.

V. Social responsibilities undertaken in promoting sustainable social development

(1) Protecting Shareholder Rights

Since its establishment, the company has strictly complied with the Company Law. 《 Articles of Association 》and other relevant laws, regulations, and rules The company is required to operate in a standardized manner, continuously improve its corporate governance structure, treat all shareholders fairly, and ensure that shareholders fully enjoy all rights and interests stipulated by laws, regulations, and rules. The company has formulated and refined its Articles of Association. Rules of Procedure for the Board of Directors, Regulations on the Use and Management of Funds, Supplier Management Regulations, and other relevant rules and regulations. The company’s operational procedures are standardized and effective, fully safeguarding... Employees and customers Interest.

In 2022, the global economy experienced slow growth at a moderate pace. Although China’s macroeconomy generally remained stable, downward economic pressures and risks remained significant, and enterprises continued to face widespread challenges such as operational difficulties. In response to both current and potential market demands, we have identified R&D directions and built up technological reserves to better align enterprises’ capabilities in scientific and technological innovation with their market expansion capacity. The company has stepped up its R&D investment (with annual R&D expenditure accounting for no less than 3% of total revenue), refined its enterprise technology innovation system, cultivated core industrial technologies, key manufacturing processes, and independent intellectual property rights, and conducted research and development on functional and differentiated products to increase the proportion of high-value-added products.

We are continuously intensifying our efforts in research and development of new products. We are constantly enhancing the integrated development, basic experimentation, and comprehensive testing capabilities of the company’s R&D center. We are focusing our R&D efforts on developing more specialized and advanced products and system solutions, thereby boosting the technological content and maintaining our technological leadership.

(2) Strengthen employee training

The training efforts place greater emphasis on practicality and relevance to the workplace. Employees can independently select courses that align with their job roles, personal characteristics, and career aspirations, thereby enhancing their skills and overall competence in various areas. At the same time, the company leverages its platform to provide forward-looking training for mid- and senior-level managers.

1. Systematically identify training needs

Based on the company’s strategic plan and annual work guidelines and objectives, combined with performance evaluation results, job requirements, the alignment between employees’ competencies and their current roles, and taking into account employees’ individual needs, accurately identify training needs at different levels and across various departments.

2. Scientifically develop a training plan.

Based on the survey conducted at the beginning of the year regarding training needs among various departments, relevant levels, and employee representatives—after statistical analysis, summarization, and evaluation—and in alignment with the company’s strategy, we have developed the annual training plan. During the specific implementation process, conduct targeted training in a timely manner based on changes in both internal and external environments as well as adjustments to company policies.

3. Multiple measures ensure the implementation of training.

The company has established systems covering senior executives, mid-level managers, and general management. A comprehensive training curriculum system covering five levels—technical personnel, team leaders, and general production staff—and four major professional modules: R&D, production, marketing, and supply chain. To ensure the effective implementation of training, we have built a tiered internal trainer network. We employ a variety of training methods, including classroom instruction, online learning, case analysis, and action learning, to enhance training effectiveness. Company leaders set an exemplary example by actively participating in training, and employees enthusiastically engage in these programs, fostering a positive atmosphere throughout the company for building a learning organization.

4. Improve the evaluation and assessment mechanism for training effectiveness.

The company employs a variety of assessment methods to evaluate the effectiveness of training, gathering feedback and suggestions from trainees on aspects such as course content, teaching methods, the extent of their learning gains, and how they are applying the knowledge and skills acquired during the training. This provides ample evidence for continuously improving the training process and enhancing its effectiveness.

(3) Deeply understand employee needs and enhance employee satisfaction.

1. Satisfaction Survey

Design of the Satisfaction Survey: The survey will cover six aspects—job content, job rewards, work environment, work group dynamics, organizational satisfaction, and frontline management—to gain a comprehensive understanding of employees’ needs and proactively address them.

2. Improve the employee communication platform and conduct employee needs surveys using various formats.

The company widely collects employees’ concerns and suggestions through various channels, including office platforms, suggestion boxes, and special symposiums. After analysis and evaluation, it identifies the key factors that affect employees’ rights, satisfaction, and motivation.

(4) Strengthen safety in production.

As a manufacturing enterprise, the company has a profound understanding of safety production and consistently adheres to: The concept of “safety is productivity” ensures the safe operation of equipment, safe production processes, and the safe commuting of employees to and from work.

In 2022, the company continued to uphold the working principle of "safety first, prevention-oriented, and comprehensive management," with a focus on implementing the responsibility system for safe production. We fully carried out the safety production target management guidelines formulated at the beginning of the year. Under the business guidance of relevant government departments and with the active participation and joint efforts of all units, we comprehensively conducted safety production management activities covering areas such as safe production, fire safety, safety production education and training, supervision of special operations, monitoring of hazardous chemicals, accident investigation, safety inspections, and food safety.

The company strictly enforces relevant laws and regulations, including the Civil Code, the Law on Work Safety, and the Law on Prevention and Control of Occupational Diseases, and has established... The ISO45001 and ISO14000 management systems have led to the formulation and refinement of documents such as the “Responsibility Letter for Safety Production Target Management” and the “Detailed Implementation Rules for Safety Production Inspections,” continuously improving employees’ working environment.

Organize and carry out the identification of hazards, environmental factors, and critical areas; clearly define measurement methods and indicators; and implement a series of preventive measures, including upgrading, renovating, and improving facilities, distributing personal protective equipment, supervising occupational safety and health practices, monitoring occupational disease risk factors, and conducting regular occupational health examinations.

( 2) Implement the responsibility system for safe production and develop emergency response plans.

The company adheres to Adhering to the work principles of “Safety First, Prevention-Oriented, and Comprehensive Management,” we have refined the three-tier safety production network structure, implemented tiered, quantified assessments for safety production, and comprehensively enhanced the technical safeguards for safety. Investment in safety management has increased compared to the previous year, and new technologies and equipment have been widely adopted. As a result, the accident rate has significantly decreased, ensuring zero fatalities for the entire year and maintaining a zero incidence rate of occupational diseases.

( 3) Actively promote the safe construction of projects.

The company signs agreements with various departments. The “Safety Production Responsibility Letter” covers aspects such as electricity usage, public security, special equipment, specially trained personnel, hot work operations, construction workers and equipment involved in hazardous operations, the configuration of full-time safety supervision and management personnel within the safety management organizational structure, and safety management rules and regulations. It also involves conducting regular and irregular inspections at construction sites, issuing on-site educational notices, ordering corrective actions within specified timeframes, and imposing financial penalties as necessary. Through these measures, we ensure that the “three simultaneous” requirements for new, renovated, and expanded projects are effectively implemented, thereby guaranteeing that no major accidents occur during the construction phase.

(5) Actively engage in public welfare.

The company’s wealth stems from society, and it is its duty to give back to society. The company actively cares for vulnerable groups and promotes social employment. It enthusiastically supports the state’s policies regarding enterprises applying to become welfare enterprises, hiring people with disabilities, helping them become self-reliant and independent, and safeguarding their legitimate rights and interests. While contributing to local economic development, the company also fosters harmonious social progress.     

VI. Company Honors

The company has always attached great importance to building its corporate image and, through continuous efforts, has earned widespread recognition from all sectors of society.

 

Seven, 2023 Annual Outlook

In 2023, the global economy showed a slow recovery trend, while China’s economy faced a period of medium-to-high-speed growth and structural transformation.

Against the backdrop of simultaneous downward economic pressures, China’s economic development has entered a new normal. The company will continue to vigorously promote structural adjustments and transformation and upgrading, solidly advance the building of a socially responsible enterprise, highlight the role of responsibility management in the company’s strategy and development plans, and strive to practice and disseminate the concept of social responsibility. By conducting benchmarking and optimization, issuing social responsibility reports, sharing best practices in fulfilling responsibilities, and continuously improving social responsibility management performance, the company aims to make steady progress toward its goal of becoming a truly socially responsible enterprise.

In 2023, the company will steadfastly seek solutions through structural adjustments and transformation and upgrading.

We will find solutions through market development, long-term innovation, and continuous improvement in quality and efficiency. By embracing proactive reforms, we will unlock hidden benefits and foster the healthy development of our enterprise. The company is committed to rewarding shareholders and other stakeholders with outstanding business performance, leading industry applications through diversified technological innovations, promoting green industrial development by undertaking environmentally friendly projects, supporting employees’ growth with sincere care and concern, and giving back to society by actively participating in and organizing a wide variety of public welfare activities—thereby achieving sustainable development that harmonizes the enterprise with society, its employees, and nature.