Fujian Xinsen Synthetic fiber Technology Co., Ltd. 2025 Annual Social Responsibility Report

This report is the third publicly released social responsibility report of Fujian Xinsen Synthetic fiber Technology Co., Ltd. (hereinafter referred to as “the Company”), aimed at strengthening communication with all sectors of society, better showcasing the Company’s fulfillment of its social responsibilities, and promoting harmonious development. We sincerely welcome valuable comments and suggestions from all walks of life.

The Board of Directors and all directors of this company hereby solemnly declare that the contents of this report are true, accurate, and complete, with no false information, misleading statements, or material omissions, and assume full responsibility for such accuracy.
I. Introduction
This report is the third publicly released social responsibility report of Fujian Xinsen Synthetic fiber Technology Co., Ltd. (hereinafter referred to as “the Company”), aimed at strengthening communication with all sectors of society, better showcasing the Company’s fulfillment of its social responsibilities, and promoting harmonious development. We sincerely welcome valuable comments and suggestions from all walks of life.

II. Company Overview
Fujian Xinsen Synthetic fiber Technology Co., Ltd. is located in the Chengnan Park of the Youxi Economic Development Zone. Established on March 6, 2013, with a registered capital of RMB 140 million and a planned site area of nearly 669 mu, it is one of Fujian Province’s top 100 enterprises, integrating nylon research and development, production, and sales. Currently, the company’s nylon fiber production capacity stands at 155,000 tons, ranking fifth globally in the nylon spinning industry. The company is committed to becoming a “ten-billion-yuan flagship enterprise” in Sanming City. It employs approximately 787 staff members, including over 200 managerial personnel. In addition to producing three major categories of civilian nylon filaments—HOY, FDY, and DTY—the company has also developed differentiated, high-tech nylon products with specialized functions, such as bio-based nylon 56 filament, high-strength nylon 6 filament, military-grade special nylon 66 filament, long-lasting antibacterial nylon 6 filament, and white bamboo‑charcoal‑modified nylon 6 filament. These products are designed to supply high-quality raw materials to downstream industries, including warp knitting, weft knitting, yarn‑covering, fancy yarns, seamless garments, lace, and hosiery. The company boasts an experienced technical and management team in the nylon sector, rigorously enforces production process controls and inspection standards, and implements 6S management for product launch. Its products have successively obtained the GRS Scope Certificate, OEKO‑TEX 100 international certification, and ISO 9001/ISO 14001/ISO 45001/ISO 50001 system certifications, earning widespread recognition from leading domestic and international manufacturers of high-end underwear, apparel, and fabrics, including Li Ning, Anta, Xtep, and ZARA.

III. Status of Social Responsibility Implementation

1. Protection of Employee Rights and Interests

Protection of Legitimate Rights and Interests: Our company strictly complies with the Labor Law, the Labor Contract Law, and other relevant laws and regulations, and enters into labor contracts with employees on the basis of equality, voluntariness, and mutual agreement. In accordance with the law, we implement the Regulations on Paid Annual Leave for Employees, arrange social insurance—including medical, pension, unemployment, work-related injury, and maternity coverage—as well as housing provident fund contributions, and provide a healthy and safe working and living environment. In 2025, the company proactively implemented government policies by issuing the Regulations on Nursing Leave for Only Children, revising the Standards for Sick and Personal Leave Benefits, increasing basic living allowances for employees, and introducing a mid-shift meal allowance scheme while raising the subsidy rates for work meals, thereby demonstrating the company’s commitment to humanistic care.

Occupational Safety and Health Assurance: By 2025, the company will continue to refine its occupational safety management system, develop comprehensive safety management plans, and sign annual safety production responsibility agreements to ensure full coverage of the safety production accountability framework. The company will revise its safety production management regulations and emergency response plans, conduct regular safety inspections, safety audits, and hazard identification activities, and actively carry out safety awareness campaigns and training programs to enhance employees’ safety consciousness and competencies, thereby effectively preventing and mitigating the occurrence of workplace accidents.

Assistance for Employees in Need: Our company, through the trade union, reaches out to the grassroots level, establishes information files for employees facing difficulties, and organizes “Warmth‑Sending” initiatives. We provide hardship allowances to those in extreme poverty and promptly offer condolences and support to employees who fall ill, experience the death of a family member, or suffer work‑related injuries. In 2025, the company conducted over one hundred visits to comfort employees affected by work‑related injuries, hospitalization due to illness, extended sick leave at home, as well as model workers and those in severe financial distress, disbursing more than RMB 400,000 in birthday gifts and condolence payments. At the same time, the company actively encourages employees to participate in medical mutual aid programs and specialized health insurance for female staff, assists those who are ill with claims processing and reimbursement procedures, and ensures the overall health and well‑being of its workforce.

Employee Competency and Skill Enhancement: By 2025, the company will conduct more than 80 training programs, strengthening operational skills for frontline workshop positions and enhancing the self‑directed professional development capabilities of functional departments. The company will actively organize labor competitions and job‑specific skill contests to foster team cohesion and boost production line efficiency, while also hosting knowledge‑based quizzes to reinforce employees’ sense of responsibility and mission.

2. Protection of the Rights and Interests of Suppliers, Customers, and Consumers

Customer Service: Our company places customer satisfaction and the delivery of safe, high‑quality products at the heart of our operations, continuously enhancing the quality of our pre‑sale, in‑sale, and after‑sale services. We strengthen our dealer and sales teams, expand market reach, establish new distribution outlets, streamline channels, and maintain stable pricing, thereby providing customers with convenient purchasing options and an excellent shopping experience. Our official website features a dedicated after‑sales service section to promptly address and resolve customer complaints and feedback. In addition, we have obtained product liability insurance to offer consumers robust protection.

Supplier Collaboration: By 2025, the company will strengthen its due diligence and qualification review of suppliers to ensure that raw and auxiliary materials comply with applicable laws, regulations, and the latest industry standards. Key suppliers will undergo on-site assessments and green‑performance evaluations, helping them optimize production management processes and enhance their quality‑assurance capabilities. The company remains committed to honoring its obligations, rigorously fulfilling contractual commitments, and fostering long-term, stable, mutually beneficial, and trustworthy strategic partnerships with its suppliers.

Operational Risk Management: By 2025, the company will revise and refine its internal control framework, including the Articles of Association and the Rules of Procedure for the General Shareholders’ Meeting, and strengthen internal control assessment activities. It will rigorously enforce anti‑fraud and risk management policies, and intensify targeted oversight and review of key processes such as financial operations, procurement, engineering projects, and investment management. Furthermore, the company will enhance training on the interpretation and implementation of relevant laws and regulations, fostering a corporate culture that promotes legal awareness, compliance, and ethical conduct, while upholding integrity and self‑discipline.

3. Environmental Protection and Sustainable Development

Energy Conservation and Consumption Reduction: Our company has established a leading group for energy‑saving initiatives, set up an Energy‑Saving Office, and refined its energy management system. By 2025, the company will implement a management strategy focused on “reducing inventory, streamlining product lines, and cutting costs,” while introducing performance‑based accountability and standardized consumption‑quota management. We will strengthen coordination across all production stages to enhance line efficiency. Through process optimization, targeted research projects, equipment upgrades, and technological innovation, we will continue to advance energy‑saving and consumption‑reduction efforts, achieving significant results.

Environmental Protection: The company maintains comprehensive hardware and software infrastructure for environmental management and has formulated environmental protection policies, objectives, performance indicators, and management plans in accordance with the ISO 14001 standard. It employs dedicated environmental protection personnel and has established operating procedures and an emergency response plan system. Additionally, the company is equipped with backup equipment and regulating ponds, enabling effective prevention and handling of sudden pollution incidents.

Emergency Preparedness and Protection: The company adheres to the principle of “safety first, prevention foremost, and comprehensive management,” and has strengthened its emergency preparedness and protection management. It has re‑identified hazards and environmental factors, revised emergency response plans and relevant regulations, and conducted regular comprehensive safety and environmental inspections. The company also organizes company‑wide activities to identify and address potential risks, and conducts fire‑prevention and typhoon‑response emergency drills to enhance employees’ ability to respond to unforeseen incidents.

4. Public Relations and Social Welfare Initiatives

Social Welfare Activities: Adhering to the business philosophy of “generously rewarding shareholders and giving back to society,” our company actively supports the development of local cultural and sports initiatives. We recruit workers from impoverished regions such as Ningxia and Gansu, and leverage new media channels to broaden our outreach, earning positive public recognition.

IV. Conclusion

Fujian Xinsen Synthetic fiber Technology Co., Ltd. will continue to uphold the principle of social responsibility, strengthen communication and cooperation with all sectors of society, strive to fulfill its social responsibilities, and achieve harmonious development between the enterprise and society. We look forward to the oversight and support of all sectors of society, working together to promote the company’s sustainable development.