Yantai Zhonglian Industrial Co., Ltd. 2024 Corporate Social Responsibility Report

Yantai Zhonglian Industrial Co., Ltd. 2024 Corporate Social Responsibility Report

I. Chairman’s Address

2024 The year marks the 24th year of relentless progress for Yantai Zhonglian Industrial Co., Ltd. (hereinafter referred to as “Zhonglian Industrial”). As a home‑textile enterprise rooted in China and serving the global market, we have consistently upheld the core philosophy of “driving development through innovation and shaping the future with responsibility,” delivering high‑quality products to markets worldwide while giving back to society and the environment through sustainable practices. This report provides a comprehensive overview of the company’s responsible initiatives and achievements across economic, environmental, and social dimensions in 2024, and outlines our vision and strategic direction for the years ahead.

II. Company Overview

1 Enterprise Name: Yantai Zhonglian Industrial Co., Ltd.

2 • Date of establishment: March 2000.

3 Enterprise size: 300 employees, with a total land area of 14,285.4 square meters and a production facility covering 12,456.56 square meters.

4 Main business: design and R&D, manufacturing, and global sales of home textiles.

5 Annual production capacity: over 100 million bedding sets.

6 Market Coverage: Our products are exported to more than 30 countries and regions worldwide, with partnerships established with over 80 international brands.

7 Core brands: the domestic New Chinese‑style home‑furnishings brand “OneCalmRomance,” and the international brand “YESNOW.”

8 Honors and Qualifications: National Beautiful Workshop, High-Tech Enterprise, Shandong Province Gazelle Enterprise, Shandong Province Specialized, Refined, Distinctive, and Innovative Enterprise, Shandong Province Demonstration Base for Employment of Persons with Disabilities, and one of Yantai City’s Top 100 Private Enterprises, among others.

III. Responsibility Management: A Dual-Drive Approach to Innovation and Sustainable Development

1 , Technological innovation leads the industry

1 ), R&D Investment: In 2024, R&D spending accounted for 6.5% of revenue, with a focus on eco-friendly materials, digital manufacturing processes, and the upgrading of intelligent production equipment.

2 ), Global R&D Network: Leveraging three major R&D centers in Beijing, Shanghai, and Yantai, and collaborating with international design firms in New York, Paris, and Melbourne, the company secured five new patents throughout the year, spanning areas such as antibacterial fiber technology and low-carbon dyeing and finishing processes.

3 ), Digital Empowerment: By implementing an AI‑driven design platform and a lean production management system, we have achieved a 20% increase in order‑fulfillment efficiency and a 15% reduction in resource waste.

4 ), Operation of the innovation system: Improving is innovation, with participation from all employees, continuous improvement across the board, targeted enhancements, and timely rewards—this innovation-driven approach has taken root at Zhonglian. In 2024, more than 150 company-wide innovation initiatives were launched, with total rewards exceeding RMB 20,000.

2 , Green Industry Chain Development

1 ）、Use of environmentally friendly materials: 100% of bedding fabrics are OEKO-TEX® certified, and the proportion of recycled fibers has been increased to 35%.

2 ）、 Energy conservation and emissions reduction: The factory’s photovoltaic power generation system reduces carbon emissions by 320 tons annually, and the wastewater recycling rate reaches 90%.

3 ), Sustainable Packaging: Implement biodegradable packaging materials and reduce plastic usage by 120 tons in 2024.

IV. Employee Responsibility: People-Oriented, Co-Creating Value

1 , Employee Rights Protection

1 ), 100% of all employees are covered by labor contracts, and the insurance contribution rate is 100%.

2 ), free meals for all employees.

3 ）、 Social insurance contributions were fully paid for 61 persons with disabilities, along with a monthly living allowance of 400 yuan.

4 ), Daily transportation allowance for frontline employees.

5 ), national statutory holidays.

6 ), Conduct annual occupational health examinations for employees and workplace environmental monitoring.

7 ), free accommodation, and a lunch break.

2 Career Development and Training

1 ）、 Throughout the year, 120 skills-training sessions were conducted, with an average of 40 training hours per person, and a 100% certification rate for technical positions.

2 ）、Each year, the company’s Party-building organization, trade union, and Women’s Federation irregularly organize training sessions on road traffic safety, financial security, mental health, and other topics, with a focus on employees’ well-being and health.

3 ）、All personnel at the team leader level and above are required to adhere to a daily reading schedule and engage in the exchange and sharing of experiences and insights through the company’s digital platform. Each month, outstanding readers are selected and recognized, thereby motivating employees to pursue lifelong learning.

4 ), Care for female employees

As a model unit of the “National Beautiful Workshop” initiative, the company has a female workforce comprising 65% of its employees and offers tailored benefits such as flexible working hours and on-site nursing rooms.

V. Social Contributions: Cultural Heritage and Export, Spreading Warmth

1 , Public Donations and Educational Support

1 ), Red Pomegranate Council

Each quarter, the company convenes a Pomegranate Deliberation Meeting with all ethnic-minority employees and their representatives, proactively addressing their academic, professional, and personal needs, helping to resolve their practical challenges, and recognizing outstanding ethnic-minority employees with awards. In 2024, a total of 12 employees were honored, and related charitable activities received funding of RMB 5,000, benefiting 12 individuals.

2 ), donating medical masks

During the COVID‑19 pandemic in 2020, the company donated 80,000 medical masks to the Red Cross Society of Muping District, Yantai City, for epidemic prevention and control, with a total value of RMB 200,000. It also donated another 80,000 medical masks to the Education and Sports Bureau of Muping District, Yantai City, for the same purpose, valued at RMB 200,000, benefiting over 8,000 people. In June 2022, amid the pandemic, the company, through the All-China Women Entrepreneurs Association, donated 60,000 medical masks to Shanghai Municipality for epidemic prevention and control, worth RMB 60,000, benefiting more than 6,000 individuals. In September 2022, the company donated 500 sets of disposable medical protective suits—each valued at RMB 100—to the Red Cross Society of Wushan County for COVID‑19 prevention and control, totaling RMB 50,000 and benefiting over 500 people.

3 ), Enterprises host National Day for Assisting Persons with Disabilities events.

The company has established a public‑welfare fund to support persons with disabilities and, every May, organizes “Disability Support Day” events. On this occasion, it presents condolence gifts to each employee with a disability and hosts a group meal, fostering inclusive coexistence and shared prosperity between employees with and without disabilities.

4) Cultural Export

Participating in the “Carnation Charity Campaign,” the company’s chairwoman, Jiang Xuelian, annually joins the “Carnation Charity Campaign” organized by the Mouping District Women Entrepreneurs Association, personally donating RMB 20,000 to support and assist 20 mothers facing hardship.

As a member of the China Association of Female Entrepreneurs, the company’s chairwoman, Jiang Xuelian, serves as an executive director and has participated in numerous international women’s summits, where she has delivered remarks as a representative, conveying the spirit of Chinese women entrepreneurs.

As a vice president of the Yantai Women Entrepreneurs Chamber of Commerce, the company’s chairwoman, Jiang Xuelian, has proactively spearheaded resource collaboration and sharing among Yantai’s female entrepreneurs, fostered cultural exchanges within the business community, and opened up new avenues for corporate economic development.

5 ), cultural heritage

The brand “Yi Si Nong” carries forward the intangible cultural heritage of ethnic minority batik, tie-dye, and other traditional crafts, has launched a new series of New Chinese‑style products, and organized more than 20 cultural‑heritage‑themed experience events, thereby promoting the preservation and transmission of these time‑honored traditions.

Throughout the export process, the R&D team has consistently integrated elements of Eastern aesthetics into product design, launching a variety of new items each week and steadily promoting Chinese culture on the global stage.

VI. Global Responsibility: Win-Win Cooperation, Boundless Accountability

1 ), Compliance-Based Operations and Fair Trade

By obtaining international social responsibility certifications such as BSCI and SEDEX, we ensure supply chain transparency and uphold workers’ rights worldwide.

2) Wastewater and sludge testing

Through SGS international certification, we ensure the environmental sustainability of our raw materials, laying the foundation for green development.

VII. Future Prospects

2025 This year, Zhonglian Industrial will continue to deepen the following responsibility objectives:

Green Intelligent Manufacturing: A 20-million-yuan investment has been made to build a zero-carbon demonstration plant, with the use of recycled materials increased to 50%.

Tech for All: Opening up a digital design platform to empower small and medium-sized home textile enterprises in their transformation.

Joint Efforts in Ethnic Integration: Expanding the Catalog of Special-Need Goods Produced by Ethnic Minorities to Promote Common Prosperity and National Unity.

Zhonglian Industrial will always uphold the mission of “weaving a better life,” fulfill its social responsibilities, drive high-quality development in the home textile industry, and work hand in hand with global partners to co-create a sustainable future!

Yantai Zhonglian Industrial Co., Ltd.

                                    2024 December of the year