I. Corporate Governance System

　　Good corporate governance is the intrinsic driving force for a company's sustainable development. Since 2003 the year the group was established, the company has organically combined corporate governance with production and operation. Strictly following the requirements of the Company Law and relevant national laws, regulations, and rules, a modern enterprise system has been established, the corporate governance structure has been improved, and company operations have been standardized. A systematic and scientific regulatory system has been established, based on the Company Articles of Association and with the shareholders' meeting rules of procedure, board of directors' rules of procedure, supervisory board's rules of procedure, and general leadership work details as its main framework. A decision-making, execution, operation management, and effective supervision power-checking mechanism has been formed, with the shareholders' meeting, board of directors, supervisory board, and management as the main structure, ensuring the healthy operation of the company's production, operation, and other business activities, and achieving the company's sustainable and healthy development.

　　II. Company Development

2003 In the year, the company, centering on the themes of reform and innovation, deeply implemented the Scientific Outlook on Development, innovated marketing strategies, actively responded to market changes, carried out independent innovation, paid attention to financial budgeting and cost assessment, strengthened the company's risk prevention and control capabilities, and promoted the continued maintenance of rapid and sustained growth in the company's operating performance. 2021 In the year, the company achieved operating income of 37000 ten thousand yuan, and the company's total profit was 400 ten thousand yuan.

　　III. Product Management

The company has always adhered to the quality policy of "survival through quality, brand building through quality, efficiency through quality, and development through quality." Regarding product quality as the lifeblood of the enterprise, strict control over product quality is maintained, and a long-term mechanism and comprehensive quality management system for product quality management have been established. Quality control and assurance are strengthened at every link, from raw material control, technical support, production process control, to sales link control, providing customers with reliable products. The company has been successively rated as a key enterprise, AAA credit-rated enterprise.

IV. Talent Cultivation

　　The company has formulated a series of preferential policies and implemented methods for recruiting and introducing talent. For introduced talent, the company helps solve issues such as spouse's employment and housing, allowing them to feel that our work is sincere and earnest, making them happy to come and satisfied to work. Through this method, in recent years, we have introduced more than a number of engineering and technical personnel with a college degree or above and intermediate or senior technical titles from all over the country 20 more than a number, providing a talent guarantee for the company's technological innovation and development.

　　The company organized and implemented various on-the-job training programs for 400 more than a number of people. Employees are also encouraged to pursue self-study; currently, more than a number of employees have obtained college or university diplomas, and talent is boldly utilized. In recent years, more than 10 a number of personnel have taken on middle-management positions, 20 and more than a number have taken on technical management positions. The development of these initiatives has added vitality to the company's development.

　　Employees are the company's greatest asset. Employees face many hardships under current social conditions. The company starts from caring for and cherishing the full interests of its employees, implementing strict management, while also paying great attention to caring for employees' lives and thoughts in daily work. The company provides diverse training and development opportunities to help employees improve their skills and achieve their personal career goals. Every year during the Spring Festival, company leaders visit all employees.

　　V. Environmental Protection

　　The company regards environmental protection as an important part of its sustainable development strategy, paying attention to fulfilling its corporate environmental protection responsibilities and actively practicing environmentally friendly and resource-saving development.

　　Environmental protection management is incorporated into the company's management system and deeply integrated into all aspects of product production. First, the company strengthens publicity in various departments to improve the environmental awareness of all employees. Second, environmental management indicators are implemented in every link of the product production process, establishing a target responsibility system from the company's senior management to middle management and to the grassroots level, forming a management network, and timely reporting the production and emission situations of various departments to ensure that responsibilities are in place and rewards and punishments are clear, truly integrating environmental protection and environmental concepts into every employee.

Using modern information technology, paperless office work is implemented, promoting the construction of a resource-saving society. The company actively introduces computerized accounting, ERP management, internal networks, and other modern information technology tools, continuously improving OA office systems, achieving paperless office work. This not only saves paper, communication costs, and postage, but also reduces the occupation of social communication lines and postal resources by using and mailing communication methods, actively promoting the construction of a resource-saving society. Employees are encouraged to carry out technological innovation and eliminate outdated production processes to build an environmentally friendly enterprise.

The production system revolves around the theme of "energy saving, cost reduction, increased production, and increased efficiency," collecting rationalization suggestions, fully improving the comprehensive utilization rate of energy and materials. Rationalization suggestions are proposed for equipment, pipelines, waste equipment and facilities, material materials, waste energy, etc., to reduce the consumption of water, electricity, and gas energy and promote resource recycling. Existing production processes are optimized to achieve energy saving and emission reduction, increased production, and increased efficiency.

Fenghua Cable Co., Ltd.

                                                                                                     2022.12.31