May 2022

Table of Contents

Part One: Report Preface
1. Report Preparation Standards
2. Speech
3. Company Profile
Part Two: Main Body of the Report
1. Overview of Operations and Development
2. Social Responsibility Practices
(1) Corporate Governance System
(2) Protection of Shareholder Rights
(3) Protection of Employee Rights
(4) Protection of Rights of Suppliers, Customers, and Other Stakeholders
(5) Environmental Protection and Sustainable Development
(6) Public Relations and Social Welfare Initiatives
3. Conclusion
Part One: Report Preface
1. Report Preparation Standards
"The Social Responsibility Report" reviews the concepts, systems, measures, and achievements in social responsibility practices. The disclosure content of this report is explained as follows:
(1) Scope of the Report
Organizational Scope of the Report:
Time Scope of the Report: From the establishment of the company to May 2022
Publication Cycle of the Report: Annually published
Form and Interpretation of the Report: This report is published in electronic format. To obtain an electronic version of the report,
please visit the Yiming website.
Contact information for inquiries about the report and its content:
Contact Person: Zhang Shuqin Phone: 13812812758
Contact Address: Shidangwu Village, Lanjing Street, Lanxi City
(2) Objective Statement on Report Content
This report is entirely based on the actual production and operation situation of the company, with objective and fair content, absolutely no false information, and is published regularly to accept social supervision and guidance.
2. Speech
In the past three years, due to the impact of the pandemic, both international and domestic economies have declined, raw material prices have continued to rise, and the market faces significant challenges. In response to opportunities and challenges brought by the macro economy and policy environment, the company will continue to take creating value and contributing to society as its mission, actively develop its clothing fabric product business, striving to provide higher quality products and first-class services to ensure better product quality and customer satisfaction. The company has always placed a high emphasis on corporate social responsibility work. As an important part of the overall corporate strategy system, it continuously promotes a long-term mechanism for corporate social responsibility, gradually advancing sustainable development strategies into every business segment.
Focusing on core business in clothing fabric products, we adhere to product innovation and management enhancement. The company grasps the lifecycle of enterprises and products, continuously advancing sustainable development strategies for products, services, and talent.
In terms of sustainable development for products and services, we regard product quality and environmental protection as key guarantees for sustainable development for both enterprises and society as a whole. Quality safety is an uncompromising pursuit goal for enterprises. From new product design, raw material procurement, product manufacturing to sales, enterprises continuously improve technology and production processes to provide safer and higher-quality products and services. To standardize and enhance the quality management system, our company has developed a quality environment occupational health safety management manual that establishes programmatic requirements for the enterprise's quality system from aspects such as quality/environment/occupational health safety management systems, management responsibilities, resource management, product realization, testing analysis, and improvement.
The enterprise further reduces pollutant emissions, optimizes energy resource utilization efficiency, enhances process safety management capabilities, strengthens training and supervision in occupational health and safety, achieving good results. At the same time, we actively promote environmental protection policies, strictly manage three waste pollution emissions, implement clean production. Additionally, through technological advancements, process improvements, and capacity layout adjustments among other means, we achieve energy conservation and emission reduction.
We strictly adopt supplier management regulations and supplier assessment methods to scientifically evaluate suppliers' qualifications, production sites, process technology levels, quality assurance systems etc., managing them in a hierarchical manner to ensure product quality and safety from the source.
In terms of sustainable development for talent, we are committed to continuously improving a people-oriented human resources system that focuses on existing employees' career development while actively cultivating reserve talents. Meanwhile, through educational donations for social welfare via funding donations, employment practices, school-enterprise cooperation etc., we reserve excellent talents for both enterprise and social development.
In the past year, we have made continuous progress in corporate governance, economic performance, environmental health & safety, products & services as well as employee & societal aspects while actively fulfilling our responsibilities as corporate citizens. In the future we will continue through practice to actively fulfill social responsibilities striving for comprehensive coordination between enterprises with society and environment.

3. Company Profile
Lanxi Yiming Weaving Co., Ltd. is a privately-owned enterprise specializing in producing various types of medium- to high-end clothing fabrics. The company was established in 2001 with an area of 32,000 square meters and a building area of 24,000 square meters; it has a greening area of 8,200 square meters. It is a key taxpayer enterprise in Lanxi City as well as a national high-tech enterprise and a technology-based small-to-medium-sized enterprise in Zhejiang Province.
After years of hard work in entrepreneurship and equipment transformation, the company has achieved remarkable results. Since 2006 it has gradually introduced advanced Japanese Toyota looms; currently it owns a total of 308 units (including two-spray and four-spray multi-arm machines totaling 50 units) of Japanese Toyota JAT710 & JAT810 jet looms along with two sizing production lines equipped with corresponding software and hardware facilities that produce high-end clothing fabrics at an annual output of 38 million meters.
For many years the company has adhered to its business philosophy of 'Integrity, Innovation, Diligence & Harmony'. The company's organizational structure is sound with complete management systems; it has a united team with an efficient leadership team. Currently it boasts talented personnel with excellent production technology skills along with advanced testing methods; based on national industrial guidance it employs advanced equipment along with new differentiated materials while optimizing product structures continuously meeting various special needs from customers.
'People-oriented quality assurance; customer first' is our principle; we sincerely welcome guests from all walks of life to visit our company or contact us via phone or letter for samples or orders; we look forward to sincere cooperation hand-in-hand towards progress while inviting talents from around the world to join us for mutual development.

Part Two: Main Body of the Report

1. Overview of Operations and Development
(1) Business Situation in the Past Year
In the past year under the joint efforts of all employees facing severe external environments we innovated through difficulties together maintaining stable production volume sales volume sales revenue among other major economic indicators while tax contributions steadily increased fulfilling various work targets set by the company satisfactorily.
(2) Future Development Plans
The company has determined its strategic plan for growth over the next five years focusing on quality management supported by technological innovation guided by market demand backed by talent cultivation driven by management innovation further expanding market share while enhancing domestic brand awareness ensuring both product quality and brand reputation are prioritized adapting continuously to changes in market environments adjusting business directions and goals.
2. Social Responsibility Practices
(1) Corporate Governance System
The company organically combines corporate governance with production and operation work. It strictly establishes a modern enterprise system in accordance with the requirements of the Company Law and relevant national laws, regulations, and rules, improves the corporate governance structure, and standardizes company operations. The company has built a flat organizational structure, reasonably reduced management levels, shortened vertical communication distances, and improved work efficiency. Each department serves as both an internal customer and service provider to other departments, with mutual job responsibilities promoting communication and cooperation between employees in different processes, maximizing operational efficiency.

Based on the company's development needs, responsibilities for each department are formulated along with their job descriptions and authority. Job responsibility descriptions are established.
In order to better listen to and adopt various opinions and suggestions from employees and customers, which is conducive to achieving effective communication and skill sharing among different departments, positions, and regions, the company has designed targeted work systems and established specific departments for feedback on various types of information, clarifying their responsibilities.
Departments at all levels of the company work together according to clear job descriptions and authority to ensure the quality of the company's products and services.
(2) Protection of Shareholder Rights
The company values the protection of shareholder interests. The year-end financial statements are audited and submitted to the board of directors to determine the profit distribution plan, which is approved by the shareholders' meeting for dividend distribution; when reviewing major issues, a shareholders' meeting is convened to effectively safeguard shareholder rights.
(3) Protection of Employee Rights
While seeking its own development, Yiming never forgets to contribute to the company. The company's leadership cares about employee needs and effectively conveys the company's concern and care for employees to every individual, allowing all employees to share in the achievements of corporate development.
1. Create a people-oriented environment that is healthy, safe, and comfortable for work.
(1) To ensure employee safety and occupational health, the company has established a safety production committee. The committee enhances overall safety awareness through safety knowledge training and safety competitions, reducing accident rates. The company strictly implements the Labor Law, Safety Production Law, and Occupational Disease Prevention Law, providing special protection for special types of work and equipping necessary labor protection supplies.
(2) To standardize safety operations, the company regularly conducts 5S safety inspections in workshops and office areas, promptly recording safety hazards. Employees are encouraged to report unsafe factors and non-standard operations through internal meetings or documents or directly via the general manager's mailbox, submitting improvement suggestions. The company also organizes various activities annually to involve employees in improving safety environments.
(3) The most impactful factors on employees' physical health in the workshop environment are dust, noise, and high temperatures. For dust and noise, the company monitors according to environmental assessment acceptance standards to ensure compliance; during high-temperature seasons in summer, cooling supplies are provided to frontline employees.
2. Protect employee rights, care for employees, and address practical problems and difficulties in their work and life.
The signing rate of various employee contracts is 100%, contract execution is at 100%, overtime hours are implemented according to national legal regulations, social insurance is fully paid according to legal requirements. The company has developed a wage distribution system based on job performance pay in accordance with national labor laws and regulations, ensuring timely payment of employee salaries that match business performance.
Senior leaders listen promptly to employees' voices, understand the effectiveness of support measures for employees, and further address practical problems and difficulties in their work and life; for named employee complaints, the company has established a smooth employee complaint management channel. Whether suggestions or opinions are made by employees at all levels, detailed feedback is provided so that employees know their thoughts are valued by the company.
The company actively advocates a people-oriented management philosophy while identifying the needs of different job categories; it pays special attention to specific groups within these populations such as female employees regarding their working environment, working hours, workload intensity as well as long-term career development opportunities. It also focuses more on the characteristics of the growing post-90s and post-00s generations. Additionally, various support measures have been formulated based on different levels of employee needs while providing targeted personalized comprehensive support to make the company a true growth platform.
The company actively conducts employee satisfaction surveys periodically to gather employee needs and expectations while actively meeting these demands. Employee satisfaction is very high.
3. Help employees establish career development plans and facilitate promotion channels.
To ensure that employees with different abilities, qualities, and career interests can find suitable paths for advancement, the company has clarified promotion evaluation criteria and management methods for different job series. It provides a dual-track career development path that includes both 'horizontal' and 'vertical' advancement opportunities for employees. Employees can choose their career development approach based on their actual situations: 'vertical development', 'horizontal development', or 'comprehensive development'.
To enhance employees' awareness of career planning, the company's office has specifically formulated a career planning system. After completing their probation period, employees undergo personal strengths assessment, skills evaluation, and career inclination surveys conducted by the company to help them gain self-awareness. This includes investigating employees' career interests, qualifications, skills, personal backgrounds etc., setting future career goals, formulating development plans etc. Meanwhile, administrative staff regularly track management of employees' career goals to guide them towards achieving their set objectives.
On top of providing guidance for employee career development, the company actively builds various learning growth platforms such as three-tier training programs within the company, job rotation opportunities for employees, talent cultivation plans etc., collaborating with training institutions for training in quality control, safety measures as well as personal capabilities among other aspects. This helps employees achieve career development while initially forming a virtuous cycle of pre-employment training coupled with post-employment development enhancing professional education systems that promote rapid yet stable career growth for employees.
The company organizes regular or irregular internal and external training sessions aimed at enhancing overall employee quality and work capabilities.
4. Organize various forms of mass activities.
The company actively encourages employee participation in mass quality management activities fully leveraging each employee's strength to improve quality efficiency within the organization. The mass quality management activities adhere to principles of 'broad mobilization' and 'full participation', positioning ordinary frontline workers as key players in quality innovation while using QC groups, rationalization suggestions as well as 5S activities as platforms for all staff quality initiatives. Various technical competitions along with rankings for rationalization suggestions stimulate enthusiasm among employees for participation. The company provides necessary resources for these activities while evaluating results from these initiatives recognizing contributions that motivate employee engagement in quality management activities.
(4) Protection of rights for customers, suppliers, and other relevant parties.
The company adheres to the core values of "integrity, innovation, diligence, and harmony" and aims to be "people-oriented, quality-trustworthy, and customer-first." It engages in friendly negotiations and cooperation with customers, suppliers, and other stakeholders, strictly fulfilling contracts, maintaining integrity in interactions, achieving mutual benefits, developing together, and sharing value. The company protects customer interests mainly through the following methods: ensuring product safety and effectiveness from production to logistics; establishing a comprehensive mechanism for handling product quality issues and complaints; providing comprehensive product usage consulting services; implementing a customer management mechanism characterized by regular visits from business representatives and managers; and improving customer satisfaction survey mechanisms. The company has always adhered to the principles of integrity in operation, shared benefits, and mutual cooperation, continuously improving procurement processes and mechanisms. It follows risk management methods and lifecycle models in supplier management, establishing long-term cooperative relationships with suppliers for raw and auxiliary material procurement, continuously strengthening supplier management, and helping suppliers improve quality management levels. Quality agreements have been signed with major material suppliers, clearly defining the quality responsibilities of both parties. Operational procedures for auditing and approving material suppliers have been established, clarifying supplier qualifications, selection principles, quality assessment methods, quality audit content, evaluation standards, composition and qualifications of quality auditors, as well as determining the on-site quality audit cycle and the approval process for material suppliers.
(5) Environmental Protection and Sustainable Development
1. Energy conservation and emission reduction
Emphasizing energy conservation and environmental protection work: actively carrying out energy conservation month activities, organizing energy conservation working groups, establishing clean production working groups, forming safety management departments, etc. Integrating energy conservation and environmental protection into the manufacturing process by continuously improving production processes, optimizing production techniques, researching new environmentally friendly energy-saving technologies to reduce material and energy consumption, minimize waste generation, and commit to building a green factory that is harmless to the environment.
The company has established and operates an ISO14001 environmental safety management system, conducting regular and irregular inspections of the operation of the company's environmental management system. The company adopts advanced processes, technologies, and equipment to fully implement clean production practices that reduce unit consumption and improve raw material utilization rates while minimizing pollutant generation at the source. Various pollution prevention measures have been implemented with a focus on the following areas:
(1) Wastewater prevention
The company uses a rainwater-sewage diversion system for drainage. Production cooling circulating water is regularly replenished for losses without being discharged externally. Domestic sewage is pre-treated in septic tanks before being discharged into the municipal sewage network; its main pollutants include chemical oxygen demand (COD), ammonia nitrogen, petroleum substances, etc. The company regularly promotes reducing detergent usage. The company strictly controls according to legal regulations. Daily management of chemical usage is conducted to reduce pollution generation.

(2) Air pollution prevention
The company's current air emissions mainly consist of textile dust with minimal unorganized emissions. To address dust issues, the company enhances ventilation in workshops to prevent dust accumulation.
(3) Noise prevention
Low-noise equipment is selected while reasonably arranging high-noise equipment locations; vibration reduction measures are taken for equipment; soundproof materials are used in workshops; equipment maintenance is strengthened to ensure good operational status; work hours are reasonably arranged while enhancing employee awareness of environmental protection to prevent noise pollution; noise emissions at factory boundaries comply with the standards set forth in the "Industrial Enterprise Factory Boundary Environmental Noise Emission Standards" (GB12348-2008). Monitoring results show compliance.
(4) Solid waste prevention
The company's solid waste mainly consists of waste packaging bags, waste scraps, defective products, and domestic garbage. Following the principles of "resource utilization, reduction at source, and harmlessness," solid waste is disposed of properly according to regulations to improve comprehensive utilization rates while preventing secondary pollution. Plastic scraps and defective products are collected for crushing and reused in production. Waste packaging materials are collected for sale to legitimate recycling companies for reuse. The company strictly controls according to legal regulations while managing hazardous waste collection and inventory management daily. All solid waste can be classified and disposed of in compliance.
(5) Energy conservation
The company adheres to the green ecological concept of "green manufacturing," utilizing energy-saving facilities and equipment that significantly conserve electrical energy. Environmental protection management systems have been improved. Daily management has been strengthened along with maintenance and inspection of various types of equipment; emergency response plans for accidents have been developed; all emergency measures have been implemented to ensure that "three wastes" (wastewater, waste gas, solid waste) are comprehensively stabilized within emission standards while ensuring safe disposal of solid waste.
2. Green environmental protection
The company actively responds to the national call for building "resource-saving and environmentally friendly" enterprises by placing high importance on environmental responsibilities. It consistently implements scientific development concepts alongside environmental protection while adhering to national and local laws regarding environmental protection as well as emission targets. The company earnestly implements various environmental management systems while actively pursuing sustainable development strategies that continuously promote energy conservation and emission reduction alongside environmental protection efforts in pursuit of coordinated economic and environmental development.
The company values education on energy-saving clean production practices while adhering to policies on environmental occupational health safety by continuously striving for clean production.
(6) Public Relations and Social Welfare Initiatives
Public relations serve as a bridge between enterprises and external communication while public welfare activities represent an important way for enterprises to give back to society. While ensuring corporate development, the company emphasizes maintaining public relations by actively participating in social welfare activities that promote mutual progress between enterprises and society. Harmonious public relations contribute positively to shaping corporate image. The company consciously cooperates with government departments' supervision and inspections; it proactively pays attention to social opinions by accepting media interviews while introducing relevant information about the company to various sectors of society while humbly accepting feedback from all parties involved with full respect for all groups or individuals related to the company in building harmonious public relations.
As a major taxpayer in Lanxi City, the company has been awarded tax-related honors by the government for several consecutive years.

The company has always remembered its responsibility towards society by undertaking social responsibilities primarily reflected in four key areas: charitable donations, education culture support as well as assistance during major disaster events through formulating annual public welfare activity plans that ensure budgetary allocations along with personnel support for planned public welfare activities.
The company has consistently viewed social welfare activities as an important component of corporate activities. Senior leadership systematically plans public welfare support based on different stages of corporate development along with strategic priorities determining principles for investment in public welfare support while ensuring that it genuinely benefits society as well as corporate development. Public welfare support is determined based on the company's mission, vision values along with its development strategy focusing on key areas such as education culture support disaster relief assistance poverty alleviation as well as community support.
In recent years, the company has donated annually to Lanxi City Charity Hall's Love Association contributing towards charitable causes.

In response to government calls in 2019 supporting beautiful countryside construction efforts, the company donated 50 thousand yuan towards a special fund for beautiful countryside initiatives in Hou Ren Village located within Lanjiang Street of Lanxi City contributing towards beautiful countryside construction.

The future domestic and international situation is unpredictable. The company will seize opportunities, respond to challenges, strengthen brand value enhancement, continuously improve brand image and premium capability; enhance product quality to drive sales growth; improve production efficiency to adapt to market demand to the greatest extent; enhance operational quality to effectively increase profitability; improve management level, innovate management models, and achieve breakthroughs in management. The company will continue to earnestly fulfill its social responsibilities: deeply standardize corporate governance, operate steadily, and bring more benefits to shareholders; fully motivate employees, provide development space for them, continuously care for employees, actively listen to their voices, and solidify the two core projects of ideological and cultural construction and corporate image enhancement to shape employee spirit; strengthen communication and cooperation with stakeholders, maintain an equal, mutually beneficial, and trustworthy strategic partnership; increase product design efforts, continuously enrich the product line, ensure product quality, optimize customer service, strengthen customer communication, and maximize customer satisfaction; continue to adhere to the scientific outlook on development, engage in environmental protection work, improve environmental protection systems, use environmental protection equipment technology to reduce and avoid pollution, increase environmental protection publicity efforts, carry out energy-saving activities, raise employees' awareness of environmental protection and energy conservation, and build a green and environmentally friendly enterprise; continuously maintain public relations, enthusiastically engage in social welfare undertakings, shape a good corporate image, promote local economic development, and pursue harmonious coexistence between the enterprise and society.