Chapter 1 Quality Philosophy

1.1 Company Mission

Customer-centric, providing customers with satisfactory products and services.

Shunhao New Materials highly recognizes that employees are the most valuable asset in the company's development. We arrange various talent training programs for employees, continuously improving their professional skills and raising product quality standards. We build a sustainable career platform for employees, enabling them to realize their personal value and happiness through outstanding work.

The company provides customers with high-quality products, services, and systematic solutions. We regularly communicate with customers, solicit their opinions and suggestions, and make improvements. Through mutual cooperation and communication, we work together with customers to achieve success.

The company uses new product development, improved product quality, and service levels as its primary means. Through continuous innovation in technology, equipment, and facilities, the company maintains a leading level and position in the industry. We adapt to national industrial development orientations and social development trends, promoting industrial transformation and upgrading, regional economic development, and social progress.

1.2 Corporate Vision

Shunhao New Materials continuously improves its technology, equipment, and facilities. Through continuous innovation and development of products, improved quality, and excellent service, the company has rapidly developed into a key player in the industry, while continuously setting new goals. Persist in business innovation, challenge cutting-edge technology, and become a socially reliable and sustainable enterprise. This is Shunhao's forward-looking corporate vision.

1.3 Corporate Values

Shunhao New Materials has clearly defined its goal of leading industry development and established a corporate value of "people-oriented, scientific management, and mobilizing the enthusiasm of all employees."

1.4 Corporate Culture

In its years of development, Shunhao New Materials has always regarded corporate culture as the cornerstone and guiding ideology of its development. Centering on the growth and expansion of the enterprise, it has gradually built a unique corporate culture encompassing mission, vision, and values. Corporate culture, as a spiritual resource, continuously drives the company forward.

The company's development goal is to build "Shunhao" into a leading enterprise in the high-tech, high-value-added, comprehensive utilization of environmental service providers that conforms to the characteristics of a circular economy, and to promote the brand to the world. One of the company's missions is to dedicate itself to employee well-being and environmental friendliness. Based on this mission, the company uses improved product quality and service levels as its primary means. Through continuous innovation in technology, equipment, and facilities, the company maintains a leading level and position in the industry, while also focusing on employee growth and development, forming a good interactive atmosphere between employees and the company. The company will leverage its established core competitive advantages, adhering to the corporate tenet of "customer focus, providing customers with satisfactory products and services; people-oriented, scientific management, mobilizing the enthusiasm of all employees, manufacturing excellent products; persisting in business innovation, challenging cutting-edge technology, and becoming a socially reliable and sustainable enterprise." It always adheres to the business philosophy of "customer value-centric rather than enterprise value-centric. Through value innovation activities, continuously creating customer needs and leading market trends. Using innovative technology, quality, and service to provide customers with maximum satisfaction." It focuses on creating and cultivating first-class brands and strives to contribute to the revitalization of China's national industry.

1.5 Quality, Environmental, Occupational Health and Safety Management Policy

Shunhao New Materials strictly abides by the requirements of national laws and regulations and mandatory national standards, such as the Product Quality Law and the Special Equipment Safety Law, in the production and sales of its products. To ensure that product quality, environmental protection, and occupational health and safety always meet customer satisfaction and relevant legal and regulatory requirements, the management representative organized employees to discuss the general manager's policy and objective requirements, forming the company's quality, environmental, and occupational health and safety policy and objectives.

1.5.1 Quality, Environmental, and Occupational Health and Safety Policy:

Quality Policy: Quality is the foundation of the company's survival! The company promises to provide customers with satisfactory products and services anytime, anywhere, and to meet legal and regulatory requirements. Continuous innovation and improvement, pursuing product quality perfection.

Environmental Policy: People-oriented, green production, energy saving and consumption reduction; pollution prevention, compliance with laws and regulations, continuous improvement.

Occupational Health and Safety Policy: Safety first, prevention first; employees first, health and safety!

1.6 Guiding Ideology

Company leaders attach importance to the construction of the quality management system, appointing dedicated personnel to be responsible for quality management, proposing to strengthen the "combat" (spirit, system, motivation) model, improving mechanisms and strengthening capacity building, and clarifying the guiding ideology of "quality creates value, service builds quality."

1.7 Quality and Integrity Commitment

Shunhao New Materials pays attention to the construction of corporate culture, cultivates the moral qualities of diligence, dedication, and responsibility among its employees, and has established a high-quality team of employees who are team-oriented, responsible, and professional. The company always operates under the premise of compliance with laws and regulations, taking customer needs as its center and using high-quality products and services to carry out production and operation activities. The concept of manufacturing high-quality products is integrated into the minds of all employees, continuously strengthening the company's cohesion, enhancing its image, and achieving sustainable development. For products with quality problems, the company provides varying degrees of compensation based on the actual situation.

Under normal transportation, storage, and use conditions, the product warranty period is no less than 12 months.

Customer complaints or suggestions should be responded to within 24 hours.

Chapter 2 Enterprise Quality Management

2.1 Quality Management Organization

2.1.1 Organizational Chart

In accordance with the requirements of the Company Law and the Company Articles of Association, the company establishes its organizational structure based on company requirements and implements a general manager responsibility system under the leadership of the board of directors. Based on existing business and strategic vision, six functional departments have been established: Finance Department, Quality Technology Department, Safety and Environmental Protection Department, Production Department, Administration Department, and Business Department. The general manager ensures that the responsibilities and authorities of the above-mentioned departments and related positions are defined, and that each department performs its duties, cooperates with each other, and makes full use of human resources allocation, capital investment, infrastructure, and equipment to ensure the effective operation of the management system.

Chart 1 Organizational Structure of Zhejiang Shunhao New Materials

2.1.2 Management Representative

Appointed by the company's general manager and authorized to command and control the system operation within the quality management system. Responsible for promoting the specific implementation of the company's quality policy, quality objectives, and quality strategy, as well as its evaluation and improvement. Specific responsibilities include:

--Promote and implement relevant national laws and regulations to ensure the establishment, maintenance, and improvement of the quality management system;

--Responsible for reporting the overall performance, operation, and improvement needs of the quality management system to the general manager;

--Implement the company's quality management policy and objectives, and be responsible for coordinating, organizing, and resolving major issues related to product quality;

--Audit the management functions of various departments and relevant personnel covered by the quality management system;

--Promote the formation and improvement of awareness of meeting customer requirements throughout the company;

--Conduct external communication and liaison on matters related to the quality management system.

2.1.3 Quality Technology Department

As the basic department for controlling product quality, the Quality Technology Department is also the centralized management department for the company's quality management system, playing a crucial role in the construction of quality management. At the same time, it has many responsibilities and obligations in the management process, specifically as follows:

a) Responsible for organizing the preparation of daily product quality reports and monthly assessment and supervision of the production department's quality situation.

b) Responsible for organizing the preparation of annual, monthly, and weekly product quality work plans and summaries, and organizing their implementation, inspection, coordination, and assessment. Regularly conduct statistical analysis and monthly reporting of internal quality conditions.

c) Responsible for improving and enhancing product analysis methods, research and testing of analysis methods for raw materials, intermediate products, and finished products in various stages of new product development, assisting in the analysis of new products, and providing contact for external testing. Simultaneously, accept entrusted testing and provide testing technical services from relevant departments.

d) Responsible for the management of internal auditors within the company, organizing internal auditor meetings and training, and conducting monthly assessments of internal auditors.

e) Responsible for the deployment and implementation of the department's quality indicators, clarifying the responsibilities of various quality control positions. Conduct identification, evaluation, and periodic review of environmental factors and hazards within the department, and implement operational control as required.

f) Responsible for organizing the formulation, revision, or replacement of the "Management Manual" and "Procedure Documents" of the quality management system, organizing implementation and supervision and inspection, and regularly reporting the overall performance, operation, and improvement needs of the quality management system to top management.

g) Responsible for auditing the management functions of various departments and relevant personnel covered by the quality management system; ensure the proper custody and use of certification marks; promote the formation and improvement of awareness of meeting customer requirements throughout the company.

h) Responsible for promoting and implementing relevant national laws and regulations on quality, environment, occupational health and safety, and metrology, ensuring the establishment, maintenance, and improvement of the quality management system, and assisting in the formulation (revision) of the company's inspection technical standards, management standards, and work standards.

2.2 Quality Management System

Shunhao uses high-quality brands and service attitudes to achieve customer satisfaction with its products and continuously makes strategic improvements to its quality policy and objectives to align with the company's development. The company has established a quality management system integrating design, development, production, sales, and service based on ISO9001 standards. To meet the needs of the company's rapid development, continuously strengthen quality management work, and improve the high-quality brand image of product quality, the company has continuously carried out quality management system version upgrades, implemented the ISO14001 environmental management system, and the ISO45001 occupational health and safety management system. After obtaining "three-in-one" management system certification, it has significantly improved Shunhao New Materials' brand awareness in this field and also promoted the brand to the international market.

The company continuously improves the system through annual internal audits, management reviews, and external supervisory audits to ensure the effectiveness of the quality management system and thus ensure product quality. Based on the requirements of ISO9001, ISO14001, and ISO45001 standards, the company implements standardized and standardized management through the implementation of the "Management Manual," procedure documents, and third-level documents to ensure the realization of the company's quality, environmental, occupational health and safety policies and quality objectives, providing satisfactory service to customers and relevant parties.

2.2.1 Quality Integrity Education

Shunhao New Materials adheres to the principle of legal operation and honesty and trustworthiness for sustained and healthy development. Through the "Human Resources Management Control Procedure" and "Job Responsibilities," training programs are developed and implemented for quality integrity education to test the feasibility of the quality integrity education training program, promoting the spirit of quality integrity throughout the company. From management to frontline employees, Shunhao New Materials always adheres to product quality first, regarding quality integrity as the key to opening the market. To this end, it strengthens quality control in all product areas, including enterprise product design, procurement, production, sales, and service; simultaneously organizes the construction, promotion, and activities of enterprise integrity culture; and arranges for employees to receive systematic training on environmental and occupational safety and health. Quality integrity education is the internal driving force for doing a good job in quality integrity management and is a long-term task to establish and consolidate the core values of the enterprise. Shunhao New Materials is committed to this endeavor.

2.2.2 Integrity and Self-Discipline

While its brand awareness continues to grow, Shunhao New Materials always attaches great importance to the construction of corporate quality integrity, establishing the corporate values of "exploration, innovation, integrity, and pragmatism, meticulous innovation, and excellence." It operates legally and voluntarily accepts supervision and audits from relevant departments. The company strictly abides by national and local laws and regulations, national, local, and industry-related social responsibility standards, and presents the company's various rules and regulations information truthfully, accurately, timely, and completely.

2.2.3 Management Objectives

In the quality improvement management system, Shunhao New Materials faces the constantly changing internal and external environmental pressures and the needs of relevant parties, as well as the measures taken to address risks and opportunities. Through mutual communication and exchange, management objectives suitable for current development are set at each stage and improved, implemented and decomposed layer by layer, forming a management objective system for each department.

The company's general manager clearly recognizes that market competition ultimately boils down to talent competition. The company comprehensively strengthens the efforts to educate employees on product quality and conduct business ability training, adhering to the principle of combining training with assessment and adopting a training method that combines internal and external training. The education and training management system is continuously improved. Starting from both employee needs and company development, training content is carefully and reasonably arranged, and multi-level, multi-form, multi-channel, and differentiated training is carried out to enrich employees' abilities in internal business capabilities, quality management capabilities, and other aspects. Through continuous cultivation and adjustment, the company's existing management and technical talents are distinct, and various work positions have a good succession team, laying the personnel foundation for the sound development of quality management.

2.2.4 Quality Objectives

In the process of continuous progress and development, the quality of products is defined in the direction of higher precision and performance requirements, enhancing the company's industry competitiveness. Challenging quality objectives are set, and reasonable and accurate quality indicators are formulated from three aspects: product production inspection, customer satisfaction, and cost input:

a. Rubber sheet and compound rubber products first-time inspection pass rate ≥98%

b. On-time completion rate of product project construction services ≥98%

c. Customer satisfaction rate ≥90%.

2.2.5 Measurement Objectives

With accurate jigs and standard inspection methods, equipment is regularly calibrated to ensure a measurement equipment qualification rate ≥99%. Relevant inspectors also receive training and assessment, requiring a 100% qualification rate for key measurement personnel.

2.2.6 Quality Regulations

To strengthen the supervision and management of product quality, improve product quality, clarify product quality responsibilities, and protect the legitimate rights and interests of customers, we identify relevant quality laws and regulations, such as the "Product Quality Law of the People's Republic of China," "Regulations on the Liability for the Quality of Industrial Products," and "Trial Measures for Product Quality Supervision," among other legal documents. This requires producing high-quality products in a reasonable environment and building the Shunhao brand in a law-abiding environment.

2.2.7 Quality Management System

Shunhao New Materials has established "Product Monitoring and Measurement Control Procedures" and "Inspection Standards" for quality management. Starting from raw materials and workpiece processing, each operator is equipped with testing instruments for self-inspection. Daily inspections are arranged to conduct quality spot checks on process products, and inspectors conduct a full inspection before shipment, strictly controlling product quality and achieving 100% qualified products upon shipment. The company has developed relevant systems such as the "External Provision Process, Product, and Service Control Procedures" and "Product Monitoring and Measurement Control Procedures" for marketing management processes, design and development management processes, procurement management processes, production management processes, inspection management processes, packaging, transportation management processes, outsourcing management processes, and warehousing management processes. These systems track and manage products throughout the entire process to prevent problems and ensure and improve Product Quality 。

Every week, the Administration Department, Production Department, and Quality and Technology Department hold meetings to discuss product quality issues raised by customers. They work together to find reasonable solutions based on the principle of eliminating quality problems, recording customer feedback on quality issues as a warning, and continuously improving and perfecting the quality management system based on actual conditions to meet management requirements and market needs.

2.2.8 Quality Liability Compensation

Quality is the foundation of Shunhao New Materials. We control product quality from the source. First, we control the quality of incoming raw materials. Raw materials purchased from external factories must be tested by professional inspectors to meet the company's requirements for material properties before acceptance. For materials that do not meet the requirements, the company has a dedicated negotiation department to hold suppliers accountable for the detected defects, with specific solutions determined by the nature of the quality problem. Second, we strictly control the process, which refers to in-plant production and processing control. The company has mature production lines and equipment, as well as experienced operators. Products are designed according to customer needs, and reasonable processing routes are established. Production and processing strictly follow process requirements, with self-inspection by operators at each stage, inspections by relevant inspectors at each link, and a final inspection of finished products, with 100% full inspection of products. Third, we provide high-quality after-sales service for shipped products. Regardless of the circumstances, the company takes responsibility for quality problems during the product warranty period, providing solutions and technical support to ensure customer satisfaction.

The company improves product quality and reduces production costs through Total Quality Management. In accordance with the company's overall development requirements and the principle of linking product quality, overall efficiency, and employee benefits, relevant systems have been established. To avoid frequent quality accidents, a problem traceability mechanism has been established to analyze the causes and implement solutions. At the same time, to guarantee the legitimate rights and interests of customers, the company always provides customers with qualified products with quality assurance. The business department formulates relevant sales policies, manages customer complaints and returns, promotes internal company improvements, and assesses the relevant responsible persons.

2.3 Quality and Safety Risk Management

2.3.1 Quality Complaints

To meet the requirements of production and service provision and implement measures to address risks and opportunities, as well as the planned measures for quality objectives and their achievement, the company plans, implements, and controls the processes required by the following measures:

a) Determine quality objectives and requirements for production and services, etc.;

b) Determine the necessary on-the-job self-inspections, audits, approvals, and acceptance criteria, etc.;

c) Implement the procedures and operating procedures of the process, as well as the necessary personnel, facilities, working environment, and information resources;

d) Implement process control according to the criteria;

e) Determine and maintain, retain documented information to the necessary extent and degree:

1) Ensure that the production and service processes have been carried out as planned;

2) Verify that production and services meet requirements.

The results of the planning form relevant procedural documents and work instructions, which are reviewed and approved by the Administration Department and used as the basis for implementing quality management activities.

Chart 4 Customer Complaint Handling Process

Receive customer complaints                 Fill out "Customer Complaint Handling List" and "Customer Complaint Handling Form"             Provide to the quality inspection department for analysis and determination of responsibility             Pass the "Customer Complaint Handling Form" to the department related to the complaint             Relevant compensation or disposal                 Clarify the methods, responsible persons, and deadlines for corrective and preventive measures             The sales department is responsible for replying to customers and confirming satisfaction.

2.3.2 Quality Risk Monitoring

2.3.2.1 Quality Control Points

Shunhao New Materials conducts key assessments of the risks associated with key characteristics, key parts, and weaknesses in product quality and has established process management systems to manage them. A dedicated person is assigned to control each link. This person possesses the ability to coordinate process planning, equipment planning, material planning, work instruction planning, environmental planning, and evaluation planning, utilizing control over quality control points to keep the risks associated with key product characteristics, key parts, and weaknesses under control.

2.3.2.2 Quality Supervision and Audit

Shunhao New Materials has a Quality and Technology Department with quality inspection specialists who supervise and inspect the production processes of various product series, and process management specialists who supervise the production sites and the implementation of process discipline. Based on the company's established quality incentive assessment and process management systems, problems found during quality supervision inspections and defects found by operators during production are rectified and supervised according to actual production conditions.

2.3.3 Emergency Management

The company formulates and implements the "Emergency Preparedness and Response Control Procedure." Each department establishes, implements, and maintains emergency preparedness for identified potential emergencies to prevent or reduce potential environmental impacts. When planning an environmental and occupational health and safety management system, consider:

a) Prepare to respond to emergencies through planned measures to prevent or mitigate harmful environmental impacts;

b) Respond to actual emergencies;

c) Take appropriate measures to prevent or mitigate the consequences of emergencies, according to the severity of the emergency and potential environmental impacts;

d) When feasible, regularly test and practice the planned emergency response measures;

e) Regularly review and revise processes and planned response measures, especially after emergencies or tests/exercises;

f) Where applicable, provide information and training on emergency preparedness and response to relevant parties, including those working under the company's control.

g) Consider the needs and capabilities of all stakeholders at all stages of the process and ensure their participation.

h) Maintain and retain documented information on the process and plans for responding to potential emergencies.

2.3.3.1 Emergency Organization System

The emergency organization system consists of the company's first responsible person, safety officer, and the first responsible person of each department. It is responsible for formulating and improving the company's emergency rescue plan for safe production, implementing the feasibility of daily accident prevention measures and emergency rescue preparedness, organizing various emergency rescue teams, conducting emergency rescue plan drills, and the daily emergency management work is supervised and managed by the company office.

2.3.3.2 Basic Principles of Emergency Response

1 ) People-oriented, safety first. When an accident occurs, before rescue work begins, personal safety protection for rescuers must be ensured. Only after ensuring their own safety can the corresponding rescue steps be taken; when an accident occurs, the priority must be to safely evacuate personnel and provide first aid to the victims.

2 ) Unified command, tiered responsibility. After an accident occurs, the first responsible person will take unified command and make unified arrangements to prevent the rescue scene from becoming disorganized, causing chaos in emergency work, and leading to additional losses.

3 ) Rapid response, decisive action. In the initial stages of an accident, quick and decisive action can completely prevent or eliminate the occurrence of the accident. Personnel at all levels must simulate or practice various possible accidents to ensure efficient handling at the first instance.

4 ) Self-rescue as the primary approach, combining self-rescue and mutual rescue. Accidents are sudden and rapid; even the best emergency response speed cannot match the timely protection and handling by on-site personnel. Therefore, in daily work, all employees should be proficient in necessary self-rescue skills to enable timely self-rescue at the first instance of an accident, and while ensuring self-rescue, make every effort to assist others in avoiding danger.

5 ) Cut off the source first, then control. The accident rescue team prioritizes cutting off the source of the accident, then confirms that surrounding hazards will not be affected, and then controls the accident scene and eliminates the danger.

The Emergency Plan is an effective policy for ensuring the safety of employees' lives and property when dealing with risks, minimizing casualties, property losses, and social impact; it is a standardized emergency indicator for the safety officer to command and coordinate relevant emergency work. The compilation of various plans reflects the company's emphasis on employee production safety.

Chapter 3 Quality Integrity

3.1 Quality Commitment

Shunhao New Materials solemnly pledges to the entire society and self-regulates accordingly:

1. Responsible to employees, establishing a quality integrity education and reward and punishment system. Formulate quality integrity regulations, regularly organize employee training on quality integrity standards, strengthen quality integrity awareness, and require relevant records to be kept; implement quality integrity responsibilities in conjunction with employees' job responsibilities, establish a quality integrity performance evaluation and reward and punishment mechanism, and encourage employees to actively participate in the company's quality integrity construction.

2. Responsible to the company, establishing a quality integrity inspection system. Regularly verify or calibrate the in-use inspection and testing equipment according to relevant regulations to ensure that the inspection and testing equipment meets national standards; under the conditions of accurate testing equipment, equip qualified or capable inspectors to conduct strict inspections or verifications of raw materials and outsourced parts, and keep relevant inspection or verification records according to regulations; equip the necessary factory inspection equipment, conduct strict quality inspections of final products according to standards, ensuring that non-conforming products do not leave the factory, and keep records of qualified product factory inspections according to regulations;

3. Responsible to customers, establishing a complaint acceptance group and after-sales service system. Products sold to customers are accompanied by a certificate of inspection and product instructions are provided to customers; customer files are established and categorized to remember the special requirements of special customers for products; a complaint acceptance group and after-sales service network are established to help customers solve problems encountered during product use within the promised time, properly handle customer complaints about product quality, and strive for customer satisfaction; conduct customer satisfaction surveys to understand customer needs and continuously improve product quality.

4. Responsible to society, establishing a complete product tracking system. Products found to have defects can be recalled in a timely manner; product quality accidents can be handled promptly and properly, and the relevant responsible persons can be held accountable, and improvement plans can be formulated and implemented, using markings to clearly indicate the quality integrity self-discipline behavior of product ownership. The characteristics reflecting the product quality status, such as the raw materials used in the product, the product coating process, or product performance, are clearly indicated or publicly committed to and are the responsibility of the company.

If product quality problems of this company lead to domestic or international reports, returns, or destruction, this company voluntarily accepts the relevant processing made by the state and relevant treaties according to regulations.

5. Product Quality Commitment:

The product warranty period is no less than 12 months. When customers have complaints or suggestions, they should be responded to within 24 hours.

3.2 Operational Management

3.2.1 Improve the Quality System, Strengthen Quality Management

For many years, Shunhao New Materials has always adhered to customer needs as its focus, continuously improving its quality management work in response to product quality requirements. Under the constraints of national and industry standards, it continuously optimizes production processes, improves equipment configuration, and produces high-quality products more efficiently and energy-efficiently. The efficient operation of multiple systems within the company, such as the quality management system, environmental management system, and occupational health and safety management system, has greatly promoted the improvement of work quality and product quality, driving the rapid development of the Shunhao New Materials brand.

3.2.2 Strict Node Control, Emphasis on Process Management

The company's quality technology department implements a management system that achieves full coverage of inspection items through quality control of raw materials, semi-finished products, and finished products, with layers of checks during the production process. A series of effective process management measures are adopted, including fixed positions and responsibilities, process inspections, quality assessments, accountability, quality traceability, and data statistical analysis, to ensure key process control and supervision of standard operations for ordinary processes. Through comprehensive control of the production process and effective supervision of key nodes, the quality technology department ensures product quality.

3.2.3 Establish a Supervision Mechanism, Implement Responsibility Management

The company divides various production management groups and designates regional responsible persons to supervise and inspect the quality of each production group. The quality technology department and relevant groups quickly respond to and handle product quality complaints, proactively implement customer complaint requirements, and supervise the improvement of product processing progress. Records are kept to prevent recurrence, and corrective measures are implemented thoroughly and effectively to restrain groups and responsible persons with frequent quality and customer complaint issues.

3.2.4 Encourage Full Participation, Achieve Quality Improvement

The company attaches great importance to the development of a quality culture, using the principle that 'character determines product quality, and product quality determines company reputation' as the core of its quality training and education. It encourages all employees to participate in quality management, continuously implementing measures such as rationalization proposals, quality improvement suggestions, and equipment automation upgrades. This ensures that employees are fully involved in every aspect of quality improvement. Employees are also required to conduct self-inspections and mutual inspections to collectively enhance product quality and share the results of quality improvements.

3.2.5 Upgrade information transmission, strengthen indicator monitoring

Based on its quality policy, Shunhao New Materials plans its annual quality objectives for the following year. These overall objectives are then broken down and assigned to various functional departments. Each department statistically analyzes its assigned targets, integrating them into the actual production cycle. They monitor the implementation plan, proactively identifying shortcomings and making timely improvements to meet the company's quality objectives. To improve the accuracy and timeliness of quality information transmission, the company has upgraded its quality information system. Real-time information transmission and rapid, accurate statistics are achieved through the ERP software management system, AutoCAD 3D drawing software, and Kingdee financial processing system.

3.3 Marketing Management

The company formulates annual marketing plans, breaking them down into monthly numerical targets assigned to individual sales representatives. The company's main customers are chemical enterprises. To better understand customer needs, dedicated sales representatives are assigned to key accounts.

The company also strengthens its brand image and identifies potential customers by participating in events such as the Chlorine-Alkali Exhibition, as well as industry conferences on forums and standardization. Senior management maintains strong strategic partnerships with key customers through regular high-level reciprocal visits and participation in annual meetings. The relationship between the company and its customers is defined not merely as a buyer-seller relationship, but as a long-term, mutually beneficial strategic partnership. Sales representatives maintain good working relationships with customers through regular follow-up visits and phone calls. A comprehensive customer complaint mechanism has been established to effectively handle customer quality issues, ensuring timely resolution of complaints and improving customer satisfaction.

The company conducts in-depth and detailed market research on target markets and customer groups through telephone consultations, follow-up calls, questionnaires, business meetings, faxes, and emails. This research analyzes customer needs and expectations for products and services, and their relative importance in purchasing decisions. This information guides product development, market expansion, brand building, and process improvement.

Chapter 4 Quality Foundation

4.1 Standardization Management

The company consistently adheres to standardized management, guided by a three-series set of standardized documents: management standards, technical standards, and work standards.

Led by the general manager and supported by department heads, the company plans and guides the development of the enterprise's quality development strategy, annual quality work plans, and quality and safety assurance measures. Regular meetings are held to discuss and refine management policies, which are then documented and implemented throughout the company. While meeting customer product requirements, the company actively adopts international standards (ISO), national standards (GB), and industry standards in the design and manufacturing processes to test product quality. This significantly improves product quality and promotes the company's brand development in both domestic and international markets. The Human Resources Department establishes job responsibilities for each position, creating detailed work standards for the company's decision-makers and various positions. Functional descriptions for each department are also developed to clarify the responsibilities of personnel in each position.

4.2 Metrology Management

In accordance with national laws and regulations, Shunhao has established an effective metrological management policy and a dedicated laboratory for the planning and management of metrological equipment. A dedicated metrologist is responsible for the management of the company's measuring instruments. The company is equipped with a series of precision testing equipment, including a high-speed testing instrument set, Mooney viscometer, digital impact tester, controlled tensile strength tester, new closed-type rotorless vulcanizer, and low-temperature embrittlement tester. This ensures comprehensive control over product quality. To guarantee the accuracy and reliability of measuring instruments, the company actively collaborates with legal metrology institutions for regular calibration and verification. The calibration and verification status is clearly marked, and records are carefully preserved. Reliable measurement data obtained through standardized measuring instruments are used to control and guide production, achieving significant economic and social benefits.

4.3 Certification Management

The company produces high-quality products that meet customer requirements while complying with national environmental laws and regulations. It holds a production license issued by the Zhejiang Provincial Quality and Technical Supervision Bureau, legally manufacturing and selling its products. Continuously improving its production mechanisms to meet the company's development needs, Shunhao has successfully passed ISO9001 quality management system certification, ISO14001 environmental management system certification, and ISO45001 occupational health management system certification. This ensures the production of high-quality products while demonstrating the company's commitment to employee working conditions, safety, and health. It ensures that all production and business activities are conducted in a standardized and regulated manner, leading to faster and better development.

4.4 Inspection and Testing Management

With the goal of establishing "Shunhao" as a leading enterprise in its field and expanding its brand globally, the company continuously expands its inspection team and strengthens the professional capabilities of its inspectors to more effectively improve product quality. Inspection teams are established to conduct inspections at various checkpoints, corresponding to the company's production process routes, which are allocated according to specifications and types. Personnel are evenly distributed among the teams, each responsible for specific inspections.

The company maintains an inventory of testing equipment and conducts regular maintenance of testing instruments and equipment. It also provides equipment and technical support for customer-commissioned testing.

Quality inspection personnel undergo professional training and pass examinations before being allowed to work. Regular meetings are held for quality inspection personnel to discuss problems encountered during inspections, and corrective measures are promptly developed to improve the inspection skills and work quality of the inspection personnel. Various regulations, job responsibilities, instrument operating procedures, safety knowledge, and precautions are posted in the inspection management process for easy implementation.

Chapter 5 Product Quality Responsibility

5.1 Product Quality Level

This Company Main products include rubber engineering and other rubber products. Each product's production and processing has a complete and mature production process, equipped with advanced processing equipment and experienced professional technical personnel to ensure product quality from the start of production. The daily final inspection pass rate for all types of products produced by the company is above 99%. During quality inspection, non-conforming products are strictly rejected, not manufactured, and not released. Monthly data on defective products is collected and analyzed to address quality issues at their root cause. Through the implementation of the quality management policy, the company's product defect rate has gradually decreased. The company's product indicators have reached the level of "Made in Zhejiang" certification standards. The key and important characteristics of the products undergo 100% testing and are only delivered to customers after passing inspection, ensuring that only qualified products are shipped.

5.2 Product After-Sales Responsibility

Shunhao New Materials has a professional after-sales service team that provides high-quality after-sales service. The company has established a strict and mature after-sales service system. For quality problems with products after they leave the factory or malfunctions during the warranty period, the company can quickly implement tracing, repair, replacement, and recall measures. This ensures that defective products are smoothly and accurately recalled and effectively handled. To improve customer satisfaction, the after-sales department provides the following assistance:

1. Technical support: selecting appropriate product structures and materials based on different materials and processes;

2. Analysis and solutions for on-site product conditions, and providing reasonable suggestions;

3. Assisting customers in machine debugging, improving molding processes, and resolving product defects;

In the product service process, we strictly follow relevant regulations and contracts to fulfill our responsibilities and obligations. The products we provide are guaranteed to meet the quantity, quality, specifications, and performance requirements stipulated in the contract. Shunhao New Materials hopes to win the support and recognition of our customers through professional design, processing, testing, and after-sales service.

5.3 Corporate Social Responsibility

Shunhao New Materials' achievements and current scale are attributable to government support, the assistance of partners, and the dedication of Shunhao employees. The company has consistently adhered to a three-tiered approach to social responsibility encompassing legal compliance, stakeholder interests, and ethical considerations, continuously improving its mechanisms.

Regarding legal compliance, since its inception, the company has strictly adhered to national tax laws and regulations. It has established financial systems and procedures for various expense declarations, approvals, and reimbursements, continuously improving tax management and financial control. We comply with tax laws, paying taxes promptly and in full. Dedicated personnel manage tax matters, and financial staff receive training to enhance tax awareness, professional skills, and management capabilities, ensuring legal and orderly tax operations. Simultaneously, we are committed to energy conservation, emission reduction, and environmental protection, optimizing production processes and technologies, upgrading production equipment, improving products, reducing pollutant emissions, and actively building a resource-efficient and environmentally friendly enterprise.

Concerning stakeholder interests, since its establishment, the company has leveraged its employee-centric culture and strived to meet the diverse and personalized needs of its employees. We provide annual health checkups, holiday bonuses and gifts, and visit and support retired employees and those facing financial hardship. The company focuses on integrated supply chain development, continuously improving customer procurement processes and mechanisms, establishing a fair and equitable evaluation system, and creating optimal solutions for customers. We build strategic partnerships with key clients, promoting improvements in the concepts of supply security, quality, pricing, and service among clients and suppliers, fostering mutual understanding and agreement on Shunhao's management and procedures, achieving synergy and shared benefits. The company establishes and implements a "Procurement Control Procedure" to regulate and constrain the procurement process and the management of clients and suppliers, signing bilateral cooperation agreements and strategic agreements. We strictly adhere to contractual agreements, promptly reconcile accounts with clients and suppliers, and complete payments, building a platform of trust and cooperation.

In terms of ethical considerations, Shunhao New Materials actively responds to and complies with national social and ethical guidelines, encouraging employee cooperation. As the company grows, it remains committed to giving back to society, leveraging its resources to support charitable donations, rural development, and other public welfare initiatives, fulfilling its social responsibilities.

5.4 Quality Credit Record

Due to superior quality and reliability, the company has never faced negative publicity from the market, customer disputes regarding quality, or penalties from market regulatory authorities. In recent years, Shunhao New Materials has achieved remarkable success, receiving numerous awards and commendations from government authorities at various levels, and its quality and creditworthiness have earned widespread recognition.

Conclusion

Quality is fundamental to a company's survival, and its quality level is a key indicator of its overall strength. To succeed in fierce competition, companies must prioritize quality and continuously improve their quality management.

While maintaining its existing quality culture, Shunhao New Materials continuously researches and develops new products and processes, using superior products and more efficient work methods to maintain a leading position in the industry. Shunhao New Materials consistently upholds the management principle of "Quality is the foundation of the company's survival! The company promises to provide customers with satisfactory products and services, meeting legal and regulatory requirements, at all times and in all places. We continuously innovate and improve, pursuing product quality perfection." Internally, we control product quality at every stage, from raw materials to semi-finished and finished products. Externally, we ensure that products are 100% compliant before delivery to customers. We also provide regular training and assessments for inspectors to ensure their knowledge remains current and comprehensive, adapting to the evolving quality demands of the company's development.

Building a quality and integrity system is a long-term and systematic undertaking. Adhering to the quality management principle of "Do not accept, manufacture, or release defective products," we strictly control quality checkpoints, promote quality culture, and strive towards the goal of making "Zhejiang Manufacturing" a domestic leader and internationally renowned brand!