In 2020, Yuancheng Cable Co., Ltd. (hereinafter referred to as "Yuancheng" or "the Company") actively protected the legitimate rights and interests of employees, suppliers, and customers while pursuing economic benefits and protecting shareholder interests. It treated suppliers and customers with integrity, consciously integrated the requirements of fulfilling social responsibilities, promoting sustainable development, and green development into the company's development strategy and corporate culture, and regarded the organic unity of fulfilling the company's economic and social responsibilities as a value pursuit, thereby promoting the coordinated and harmonious development of the company itself and the whole society.

1、 Basic information of the company:

Yuancheng Cable Co., Ltd. was founded in 2001 and is located in Guanlin Town, Yixing City, Jiangsu Province, known as the "China Cable City" with significant influence in the wire and cable industry. The company has a registered capital of 718.146 million yuan and is a high-tech enterprise specializing in the design, development, production, sales, and service of wire and cable. It has a provincial-level engineering technology research center.

The company's main products are four categories: power cables with voltage levels of 500kV and below, special cables, bare conductors, and wires and cables for electrical equipment. The company's products have passed ISO9001:2015 quality management system certification, ISO14001:2015 environmental management system certification, ISO45001:2018 occupational health and safety management system certification, ISO10012:2003 excellent measurement management system certification, and obtained national mandatory product CCC certification, PCCC electrical product certification, civil nuclear safety equipment design and manufacturing license, South African SABS certification, US UL certification, Dutch KEMA certification, EU CE certification, environmental ROHS certification, TUV Rheinland certification, and Australian SAA certification. The quality of the company's products has been widely recognized by customers.

The company has multiple product varieties that have competitive advantages within the industry: the company's nuclear power plant cables have obtained the "Civil Nuclear Safety Electrical Equipment Design/Manufacturing License" issued by the National Nuclear Safety Administration, and supply nuclear grade cables and non nuclear grade cables to nuclear power plants; Ultra high voltage cross-linked polyethylene insulated power cables such as 110kV and 220kV are widely used in power systems and have received high praise from customers; Mineral insulated cables are widely used in important public facilities, optoelectronic composite cables are widely used in the intelligent transformation project of State Grid, and electric vehicle cables are widely used in the automotive industry.

2、 The company's fulfillment of social responsibility in 2020

(1) Protection of Shareholders' Rights and Interests

1. Improve the corporate governance structure.

In 2020, the company held a total of 7 board meetings and 4 supervisory meetings. At the same time, the company attaches great importance to the role of the specialized committees of the board of directors, and each specialized committee of the board of directors exercises its powers in accordance with the provisions of the company's articles of association and the working rules of each specialized committee of the board of directors. The management of the company strictly operates in accordance with laws and regulations and the authorization of the board of directors, and strives to maximize shareholder rights and social interests.

2. Actively carry out investor relations management.

In order to strengthen the protection mechanism for small and medium-sized investors, the company has formulated an investor relations management system. In 2020, the company actively engaged in good interaction and communication with small and medium-sized investors through the investor relations interactive platform, online performance briefing meetings, answering investor phone calls, and other means, providing patient and meticulous responses to various questions from investors. On the interactive platform, the company earnestly and timely responds to questions raised by investors, increasing the transparency of the company's operations and facilitating shareholders, especially the majority of small and medium-sized shareholders, to timely understand the company's business dynamics, financial status, and progress of major issues.

3. Do a good job in information disclosure and strengthen the quality of information disclosure.

In 2020, the company strictly complied with relevant laws and regulations and voluntarily fulfilled its information disclosure obligations, ensuring the authenticity, accuracy, timeliness, and completeness of information disclosure, and enhancing the effectiveness of information disclosure. In 2020, the company released announcements on designated information disclosure media, including annual, semi annual, quarterly reports and related documents, shareholder meetings, board of directors and other related announcements, without any violation of fair disclosure of information.

(2) Protecting the rights and interests of employees

1. Protecting the rights and interests of employees in accordance with the law

The company always adheres to the core values of people-oriented, strictly abides by the requirements of laws and regulations such as the Labor Law, the Labor Contract Law, and the Special Provisions on the Labor Protection of Female Employees, and adheres to the principles of equality, voluntariness, and consensus through consultation to sign labor contracts with all employees. The establishment, performance, modification, termination, or cancellation of labor contracts are strictly handled in accordance with the procedures stipulated by national laws and regulations. The company actively pays medical insurance premiums, pension insurance premiums, unemployment insurance premiums, work-related injury insurance premiums, maternity insurance premiums, and housing provident fund premiums for its employees in accordance with the regulations of the country and the competent authorities where the company is located. At the same time, based on relevant regulations and combined with the actual situation of the company, the company establishes employee attendance and labor discipline management standards and various holiday management systems to safeguard employees' rights and interests in rest and vacation.

In addition, the company actively supports the trade union in carrying out its work in accordance with the law, and listens to the opinions of employees through democratic forms such as employee representative conferences and trade union meetings on matters related to their immediate interests, such as wages, benefits, and labor safety and health. It cares about and values the reasonable needs of employees.

2. Actively fighting against the epidemic, resuming work and production

In the face of the COVID-19 that broke out at the beginning of 2020, the company put the safety and health of all employees first, actively responded to the requirements of the national prevention and control work deployment, and took a series of preventive measures. After receiving the government notice, the company immediately established an epidemic prevention and control working group, established relevant epidemic prevention and control mechanisms, and maintained attention to the epidemic. According to the changes in the epidemic, the return time was adjusted, and measures such as working from home and quarantine observation were gradually implemented to timely understand the physical health status of employees and provide as much assistance as possible. After resuming work, in order to effectively ensure the physical health of employees, the company distributed free masks and other epidemic prevention materials to all employees, carried out daily disinfection and sterilization work in various areas of the factory and office areas, and implemented measures such as staggered meals, daily meal sets, and "college entrance examination style" seating arrangements in the cafeteria to minimize the risk of infection and create a safe and healthy working and living environment for every employee.

(3) Actively promote environmental protection work

1. Emphasize the cultivation of environmental protection awareness among enterprise employees.

The company attaches great importance to environmental protection, energy conservation, and green emission reduction management. The environmental protection laws and regulations issued by the state are promptly communicated and organized for employees to learn. Environmental protection publicity work is carried out to enhance employees' awareness of environmental protection, and clean production audits are organized and passed. The company disseminates and implements the concept of environmental protection, energy conservation, and emission reduction through various forms.

2. Comply with national environmental laws and regulations, establish the company's environmental management system and emergency plan.

The company strictly adheres to national environmental protection laws and regulations in its production and operation activities. Based on the actual situation and needs of the company's environmental management, it has formulated management systems such as "Environmental Management Standards", "Environmental Emergency Response Cases", "Waste and Waste Material Disposal Management Standards", "Regulations on Standardized Management of Hazardous Waste", etc. The existing systems can meet the environmental protection requirements of the current production and operation process.

3. Environmental protection management and governance.

In the daily production and operation process, strictly fulfill environmental protection responsibilities and carry out environmental management and prevention work according to requirements. Improve workflow within the company, introduce an electronic office platform, and launch a green paperless office. The company actively applies new energy-saving technologies and processes, continuously increases efforts in energy-saving technological transformation, elimination of backwardness, clean production, and comprehensive utilization of resources, and has achieved significant results in energy-saving work. In the daily production process, the company strictly operates in accordance with national environmental protection requirements to minimize the adverse impact of the enterprise on the environment.

(4) Protection of the rights and interests of suppliers and customers

The company adheres to the business philosophy of integrity, cooperation, and win-win, and has established good social relationships with suppliers, customers, and consumers. According to the company's procurement management system, procurement bidding business is carried out in accordance with the principles of openness, fairness, and impartiality. Supplier qualifications are strictly screened, contract agreements are strictly observed and fulfilled, and the intellectual property rights and trade secrets of suppliers and customers, such as trademarks and patents, are protected. The legitimate rights and interests of suppliers and customers are fully respected and safeguarded. At the same time, the company adheres to a responsible attitude towards customers, improves and perfects its quality management system, understands the needs of customers and consumers, and enhances their satisfaction with the products.

3、 Self evaluation of fulfilling social responsibility

(1) Voluntary blood donation

Since the promulgation and implementation of the Blood Donation Law of the People's Republic of China, company leaders have attached great importance to it and widely promoted it through various means, so that company employees can understand the spirit and methods of blood donation work, and enhance their sense of honor and responsibility for voluntary and unpaid blood donation. The company responds to the government's call every year and organizes voluntary blood donation activities.

(2) Party building activities

The Fifth Plenary Session of the 19th Central Committee of the Communist Party of China was an important meeting held at the historical intersection of the "Two Centenary Goals". In order to implement and study the spirit of the Fifth Plenary Session of the 19th Central Committee of the Communist Party of China, the company's party branch held relevant meetings to organize party members at all levels to study and implement the "14th Five Year Plan".

4、 Future prospects

In 2020, the company has made certain efforts in promoting sustainable development of the enterprise, promoting environmental and ecological sustainability, and promoting social sustainability, fulfilling certain social responsibilities. However, there is still a certain gap compared to the expectations of stakeholders and beneficiaries. The company will adhere to the concept and obligation of fulfilling social responsibility in the long run, and better do a good job in all aspects of work.

The company will continue to actively fulfill its social responsibilities in future work, create a harmonious enterprise, actively participate in social welfare, education, environmental protection and other undertakings, promote the harmonious development of the company and regional economy, and contribute to the implementation of scientific development and the construction of a harmonious society.　

Yuancheng Cable Co., Ltd

March 15th, 2021