Part 1: Compilation Specifications

1. Statement of content objectivity

The social responsibility report published by Jiangsu Gai's Auto Parts Co., Ltd. is compiled with an objective and impartial attitude, strictly adhering to relevant laws, regulations, and industry standards. The authenticity, accuracy, and completeness of the report content are ensured through a systematic process of data collection, review, and verification. This report aims to systematically analyze and evaluate sustainable development performance, thereby promoting sustainable development practices throughout the entire company.

2. Scope of organization

Jiangsu Gai's Auto Parts Co., Ltd. The terms "company" and "we" mentioned in the report refer to Jiangsu Gai's Auto Parts Co., Ltd.

3. Time range

From January 2024 to December 2024, to maintain the coherence and readability of the report, some content extends beyond the aforementioned time frame.

4. Release cycle

This report is released annually, and this annual report is the second one to be released.

5. Data description

The financial data disclosed in this report is sourced from various financial statements of the company, while other data is obtained from internal statistics of the company, unless otherwise specified.

6. Acquisition method

This report is in print format and printed on environmentally friendly paper approved by environmental organizations. Copies can be obtained from the company's sales outlets;

Part II: Report Text

1. Company Profile: Jiangsu Gai's Auto Parts Co., Ltd. was established in 2010 and now boasts two production bases. The first production base is located in Taicang, Jiangsu, while the second is situated in Changshu, Jiangsu. Additionally, the company has established a technology research and development center as well as an experimental center.

Since its establishment, the company has focused on the research, development, and manufacturing of aluminum wheel decorative covers and wheel hub decorative parts for automobiles. Its products are supplied to multiple domestic and foreign brand automobile manufacturers through primary or secondary supply channels. Currently, we have become a component supplier for various automobile brands such as Volkswagen, Chery, BYD, Guangzhou Automobile Group, Leap, Beijing Automotive Group, Nissan, SAIC-GM-Wuling, VF, Daihatsu, Shiqiao (Bridgestone), WEDS, TOPY, and Dunlop. Our wheel hub decorative covers have covered the domestic market, and some of our products have been exported to Japan, Europe, and the United States. The company has successively obtained quality system certification, environmental system certification, occupational health certification, and energy system certification, and established the SA8000 system. "Technology changes the world, innovation leads the future." Innovation-driven and green development are eternal themes. The company has continuously made breakthroughs in technological innovation and industrial upgrading. The R&D team works together to overcome difficulties and has obtained 11 national invention patents, 76 utility model patents, 3 design patents, and several patent applications are currently in progress. In 2015, the company joined the China Association of Automobile Manufacturers and has successively passed the assessments and certifications of "Jiangsu Province Technology-based Small and Medium-sized Enterprises" and "Jiangsu Province Private Technology Enterprises". In November 2016, the company passed the assessment and certification of "High-tech Enterprise" in Jiangsu Province and obtained the "High-tech Enterprise Certificate". In 2024, it was awarded the title of "Jiangsu Province Specialized, Fine, Unique, and Innovative Enterprise".

2. Strategic objectives of social responsibility

1. Protection of shareholders' equity

Treat all shareholders fairly, actively fulfill information disclosure obligations, and actively reward shareholders by formulating long-term and relatively stable profit distribution policies and methods. While pursuing the maximization of shareholder interests, also take into account the interests of creditors.

2. Protection of employee rights and interests

①institutional development

The company has established the "Employee Handbook" and "Personnel Management System" to clarify behavioral norms and safeguard employee rights and interests. It has implemented the SA8000 system, respecting employees' and cultural rights through an occupational health and safety management system, correctly handling labor relations, and creating a harmonious, suitable, safe, and healthy working environment. The company pays attention to employees' career development and health welfare, aiming to achieve mutual development between the enterprise and its employees. The company will continue to conduct compliance inspections, eliminate phenomena that do not comply with the "Labor Law", and establish a complaint mechanism and channels for employees.

②Compliant Employment

Compliant employment is the cornerstone for building harmonious labor relations and ensuring the sustainable development of the company. The company strictly adheres to relevant laws and regulations, upholds the principles of equality and non-discrimination, prohibits the use of child labor and any form of forced labor, and ensures the legality and standardization of employment management.

③welfare care

The company provides its employees with a wide range of benefits for the Spring Festival and Mid-Autumn Festival every year. During Women's Day, the company prepares exquisite gifts for female employees to express their care and respect, and to thank them for their contributions to work.

④Training and Development

The company regularly conducts training for its employees and assesses them through question-and-answer sessions. The pass rate for the 2024 annual assessment was 100%

3、Energy conservation, environmental protection, and sustainable development

①institutional development

Having obtained certification for its energy management system, the company has implemented the "Energy Management Manual" and "Energy Management Procedure Documents", encompassing energy procurement, measurement, statistics, and assessment. The company is vigorously promoting the establishment of energy, environmental, occupational health, and safety management systems. It actively advocates for green and environmentally friendly concepts, emphasizes environmental protection, and prevents pollution. Environmental protection and resource conservation are included as indicators for departmental assessment, effectively advancing the company's environmental protection efforts and fulfilling its responsibility for sustainable development.

②Improve energy efficiency

The technical transformation project includes projects such as lighting source transformation, frequency conversion air conditioning upgrade for office buildings, and power supply circuit optimization to reduce power consumption. The "Power Factor Compensation Project for the Power System" (power factor/0.9) aims to reduce reactive power loss and improve power utilization efficiency. Intelligent manufacturing introduces integrated intelligent manufacturing technology and production management systems, optimizing production energy consumption through data interconnection and precise control, thereby achieving energy efficiency improvement.

 ③Apply renewable energy

Photovoltaic power generation project

In 2024, an investment of 323,000 yuan will be made to construct a rooftop photovoltaic power station (with a capacity of 323KW), which will generate 10.2% of the building's total annual energy consumption, with excess power being fed into the grid. The intelligent microgrid system prioritizes the use of solar energy, reducing reliance on traditional electricity.

④risk management

Extreme weather conditions caused by climate change, such as high temperatures, rainstorms, and typhoons, will affect the equipment and electrical safety in production areas, leading to production disruptions. To address this, the company adopts operation methods that avoid extreme weather, reducing the resulting personal injuries. Additionally, emergency power supplies are equipped to ensure power stability in temporary situations, minimizing the impact of weather conditions on production.

 ⑤pollutant emissions

 The solid waste generated by the company is primarily classified into general solid waste, which includes household garbage and waste plastic scraps. The household garbage is uniformly collected and transported by the environmental sanitation department, while the waste plastic scraps are recycled by qualified third-party organizations.

The company does not have production water, and the wastewater generated is domestic sewage. After pretreatment in the septic tank, it meets the acceptance standards and is then connected to the municipal wastewater treatment plant.

The company regularly monitors the emission of waste gas and wastewater, and conducts third-party inspections on waste gas emissions every year to ensure that pollution emissions comply with national standards.

staff training

photovoltaic power station

3. Tax contribution

①The company pays taxes in good faith and fulfills its tax obligations in accordance with the law, without any non-compliance issues such as late payment. In 2024, Jiangsu Gai's Auto Parts Co., Ltd. achieved an operating revenue of RMB 200 million. The company has always regarded paying taxes in accordance with the law as its best business integrity card. It starts with the details in tax management, and regards strengthening financial management and ensuring tax payment in accordance with the law as an important task in fulfilling corporate social responsibility. In 2024, Jiangsu Gai's Auto Parts Co., Ltd. paid a total of RMB 4.18 million in taxes.

②integrity building

The company conducts anti-corruption training to continuously enhance the anti-corruption awareness of all employees. It continues to improve its compliance management system and promotes contract compliance and institutional compliance.

4、Greenhouse gas emissions

In 2025, we will initiate industry research projects, establish a professional network, and obtain the PMP project management certification. In 2026, we aim to advance to middle management positions and establish a health management system. Fitness three times a week, along with being green and low-carbon, are essential conditions for sustainable development. As a socially responsible enterprise, our company annually commissions a third party to verify greenhouse gas emissions and issues a "Greenhouse Gas Emissions Report." In 2024, greenhouse gas emissions amounted to 2,778 tons (Scope 1 plus Scope 2)

The company actively adopts new energy-saving and emission-reducing equipment and utilizes green energy to reduce greenhouse gas emissions.

While ensuring green and sustainable development, the company also actively encourages its employees to contribute to societal green development. For instance, it has implemented a policy for the economical use of air conditioning and other electrical appliances, advocates green and new energy travel, established photovoltaic power stations and new energy charging stations, and gives priority to purchasing low-carbon and green transportation vehicles.

The company has clearly outlined design requirements for environmental protection, energy conservation, and clean production in its product design and technological transformation plans, incorporating ecological design concepts. This has reduced material consumption and achieved the goal of energy conservation and emission reduction. Based on the greenhouse gas emissions and carbon emission intensity of Gezi Automobile in 2023, its greenhouse gas emission intensity will slowly increase and reach a peak in 2030, then rapidly decrease in 2031, and achieve near-zero carbon emissions by 2040.

New energy vehicle charging station

5、Supply chain management situation

①The supplier survey company conducts supplier surveys through the following dimensions, including but not limited to: product quality, production capacity, and in terms of environmental and social assessments, the company attaches importance to the investigation of suppliers' relevant management system certifications, such as ISO 9001, ISO 14001, ISO 45001, and ISO 5000.

②Dynamic management of suppliers

Suppliers are evaluated quarterly based on set criteria, with a maximum score of 10. Those with an annual average score >7 will be included in the list of qualified suppliers; those with a score of 5≤ but <7 will be required to make corrections within a specified timeframe and undergo re-evaluation. If their score remains <7 after rectification, their qualification for supply will be revoked.

③Sustainable supply chain companies sign "Purchase Contracts" and "Safety and Environmental Protection Commitments" with all suppliers. The "Safety and Environmental Protection Commitments" explicitly require suppliers to reduce the use of harmful substances, ensure safe production, and safeguard employee rights and interests, setting clear assessment indicators and compliance standards.

6、Performance of social responsibility

①The company is a major taxpayer in the local area and actively participates in local charity activities.

②Consumption assistance is provided by purchasing daily necessities from families in need in the community as a token of sympathy, in order to support rural revitalization.

We strictly adhere to relevant laws, regulations, and industry standards, ensuring the authenticity, accuracy, and completeness of the report content through a systematic process of data collection, review, and verification. This report aims to systematically analyze and evaluate sustainable development performance, assist enterprises in identifying areas for improvement, and promote further enhancement of the entire company's sustainable development practices.

Relevant honor certificates

END