Zhejiang SHUIMOJIANGNAN New Material Technology Co., Ltd.

2017 Corporate Social Responsibility Report

March 2018

About this report

1. Introduction to the report: The report reviews the company's work on social responsibility in 2017, and discloses the company's philosophy, practice and achievements in fulfilling its economic, environmental and social responsibilities.

2. Compilation basis: The preparation of this report refers to the "Guidelines for Compiling Chinese Corporate Social Responsibility Reports (CASS-CSR 2.0)".

3. Time range: 2017 in the report refers to January 1st to December 31st, 2017, and part of the content appropriately traces back to previous years.

4. Data source:? Zhejiang Shuimo Jiangnan New Material Technology Co., Ltd. internal documents and information statistics system data.

5. Title of the report: For the convenience of presentation and reading, "Zhejiang Shuimo Jiangnan New Material Technology Co., Ltd." is also expressed in this report as "Shuimo Jiangnan", "we", "company", etc.

6. This report has a paper version and an electronic version. The paper version is obtained from the company's administrative department. The electronic version uses the company website as a carrier to display the "Corporate Social Responsibility Report" and download it for reading.

table of Contents  

2017 Milestones-1-

 1. Company Overview-3-

2. Overview of Operation and Development-5-

(1) Operation in 2017-5-

(2) Development plan for 2018-6-

 3. Efficient management-9-

(1) Continuously optimize management-9-

(2) Standard and transparent corporate governance-9-

(3) Internal control reduces risks-10-

(4) Development of internal supervision and internal control self-evaluation-11-

4. Social Responsibility Practice-12-

(1) Protection of the rights and interests of employees-12-

(2) Protection of the rights and interests of suppliers and customers-14-

(3) Environmental protection and sustainable development-14-

(4) Public relations and social welfare undertakings-15-

V. Summary and Prospects-16-

2017 Milestones

March 2017

On March 1, 2017, it was certified as an annual high-quality supplier member of Zhejiang Real Estate Recruitment Managers Alliance

April 2017

On April 23, 2017, the company organized the "Moganshan Volunteers' Environmental Protection Trip" in order to enhance employees' environmental awareness.

May 2017

On May 16, 2017, in order to improve employees' awareness of firefighting and improve their self-rescue ability in the face of safety production accidents, the 2017 corporate firefighting training was held. After the training, under the guidance of the officers and soldiers of the county fire brigade, a fire drill was carried out.

June 2017

Wang Qinying, Deputy Secretary of the County Party Committee and County Mayor of Deqing County, led relevant persons in charge to visit the company for investigation.

July 2017

On July 6, 2017, painted solid wood flooring and painted solid wood composite panels obtained ISO9001:2015 quality management system certification.

In July 2017, the Shanghai Federation of Industry and Commerce Real Estate Chamber of Commerce organized members to visit the company.

In July 2017, in order to truly relieve the worries of employees, the company opened the first summer school for employees' children.

August 2017

From August 10th to 12th, 2017, in order to improve employees' self-management capabilities and skills, the company organized all employees to participate in the "Corporate Heartline" series of courses held by the Shanghai "Langyu" Training Center.

September 2017

On September 11, 2017, the company passed the ISO14001:2015 environmental management system and ISO18001:2007 occupational health and safety management system certification.

October 2017

In October 2017, the company’s "Key Technologies and Applications of Biomimetic Construction of New Biomass Composite Materials" project participated in the Liangxi Forestry Science and Technology Award selection activity hosted by the State Forestry and Grassland Administration and the Chinese Forestry Society, and was awarded Liangxi Forestry in July 2018 The second prize of Science and Technology Award.

On October 14, 2017, in order to improve team cohesion and communication skills within the company, the company organized administrative staff and workshop team leaders to participate in training on team cohesion building and cross-departmental communication skills.

November 2017

On November 29, 2017, the company's wooden flooring obtained the "China Green Material Mark Authorized Use Certificate" issued by China Building Materials Circulation Association, China Timber Circulation Association, and China Chemical and Light Industry Material Circulation Association.

 In November 2017, the company’s senior employees Zhang Lijian, Ji Xiaofeng, and Shuai Genqun participated in the 170th Jianfeng Production Manager Qualification Training held by the Jianfeng Management Technology Research Center and obtained the "Jianfeng Production Manager Qualification" certificate.

In November 2017, in order to improve employees' own management and execution capabilities, as well as the communication and coordination skills required as a qualified manager, the company arranged management personnel Zhong Siqing, Shen Dan, Tian Weishun, Liu Jianfang, Xu Bin, Lei Shunyong , Wang Jinxing, etc., participated in the management training held by Jianfeng Management Technology Research and Training Center.

December 2017

In December 2017, the company passed the "Zhejiang Science and Technology Small and Medium-sized Enterprise" certification by Zhejiang Science and Technology Department. In December 2017, the company's "Water Mo Jiangnan" brand solid wood composite floor won the honorary title of Zhejiang Famous Brand Product.

In December 2017, in order to improve the employees' own management and execution capabilities, as well as the communication and coordination skills that a qualified manager needs to have, the company arranged a production workshop team leader to participate in the workshop team leader held by the Jianfeng Management Technology Training Center Training.

1. Company profile

Zhejiang Shuimo Jiangnan New Material Technology Co., Ltd. was founded in 2011 and is a group enterprise specializing in the manufacturing and sales of multilayer solid wood flooring. The company is located at the foothills of Mogan Mountain in Deqing, Zhejiang, with beautiful scenery, 30 kilometers away from Hangzhou and 180 kilometers away from Shanghai. The company covers an area of more than 100 acres, with a plant and office area of 70,000 square meters. Our company has many world-leading automated multilayer solid wood composite flooring production lines, with offices in East China, South China, North China, Central China, Northwest China, Northeast China and other regions. After years of hard work and accumulation of professional teams, the company has now formed a A complete set of multi-layer solid wood flooring production, sales, installation and service management system. With an annual output of more than 3 million cubic meters of multilayer solid wood composite flooring, it is the most influential domestic manufacturer of multilayer solid wood composite flooring. The strategic effect of the international brand has created the road to the rise of Shuimo Jiangnan.

The company has more than 200 technical talents and employees. It has a management team that understands business and fine technology, and a team of highly skilled, high-quality, and strong execution staff. It also has independent raw material procurement, production, sales, installation, and after-sales. system. At the same time, it has independent raw material procurement, production, sales, installation, and after-sales systems, and has established long-term strategic partnerships with many well-known domestic real estate companies and foreign well-known flooring companies. At the same time, the products are exported to the United States, Canada, France, Italy, South Korea, Japan and other international markets, and have been highly praised by customers and peers.

Since its establishment, the company has always paid attention to corporate culture and corporate team building, meticulously building the core competitiveness of the company, focusing on creating a first-class working environment for employees, and promoting employees to pursue the corporate core values of "standards, innovation, and harmony". The company’s social responsibility concept is in the same line as the company’s corporate culture. It advocates respect for people and nature, gratitude to society, customers and employees, strives to create value for customers, employees and society, deepens the market, strengthens management, and constantly strives for good The economic benefits and growth of the company, give back to customers, give back to the society, and promote the harmonious development of the company and society.

"Establish a business steadily, seek long-term innovation, and seek development with the spirit of craftsmanship". Practicality is the foundation of any company's growth and development. Shuimo Jiangnan always believes that only by taking a market-oriented path of exploration and innovation, focusing on quality and talent training can drive the company's continuous development and finally achieve the improvement of brand value. Under the requirements of ISO9001 quality management system standard, ISO14001 environmental management system standard and ISO18001 occupational health and safety management system standard, the production scale of the enterprise has been continuously expanded and the product grade has been continuously improved.

With the purpose of creating a healthy and high-quality human settlement environment for every customer, Shuimo Jiangnan is to build a respected century-old flooring enterprise.

Ink and wash Jiangnan-as a master of mind, it has been passed down for a long time!

 2. Overview of operation and development

 (1) Operation in 2017 In 2017, with the business philosophy of "creating floor art, establishing a century-old enterprise", the company comprehensively expanded its product sales business, expanded its business scale, improved market competitiveness, and continuously deepened its product segmentation structure. In 2017, the company achieved a total operating income of 85.7 million yuan and a net profit of 1.02 million yuan.

Engineering and sales departments continue to deepen cooperation with major customers. Sales departments (foreign trade and domestic sales) continued to achieve steady and rapid development in 2017, consolidating and continuing to promote a variety of services and cooperation methods. The original domestic sales department has deepened cooperation in customer sales business, and new cooperation projects and sales outlets have been continuously increased. The Ministry of Foreign Trade has successively opened up markets in Europe, America, Japan, South Korea and other countries and regions, and the Engineering Department has implemented the assessment indicators for each dealer one by one, with responsibilities and rewards in place.

The domestic sales department has achieved results in increasing sales and reducing fees. On the basis of consolidating floor sales, the domestic sales department focused on strengthening sales for major customers, strengthening cooperation with key home improvement customers, and increasing the proportion of key home improvement customers. The growth rate has continued to increase. The account period has been compressed significantly, and remarkable results have been achieved. Overdue accounts receivable have gradually declined, and individual historical issues have been properly resolved to prevent new overdue accounts. Strengthen upstream and downstream customer service. With the cooperation of the warehouse, optimize the return operation process, establish a return mutual assistance mechanism, and reduce the loss of reported damage. Carry out various activities to strengthen communication with upstream suppliers. In terms of internal management, we implemented automatic generation of internal control indicators for accounts receivable and a strict expense reimbursement system.

Strengthen internal management and improve sales and operation efficiency. The warehouse has ensured the overall stable operation of the warehouse by optimizing the operation process, integrating and decomposing operating personnel, redefining department responsibilities and professional quality classification, and adjusting the salary system. With the cooperation of cooperative logistics enterprises, the distribution difficulties of the peak sales period have been overcome. The Engineering Department and the Finance Department carefully check to ensure the smooth progress of the review or certification of 16 general distributors, 10 major cooperative customers, and 5 logistics companies. Through the above measures, the company's sales operation efficiency has been enhanced, and in March 2017, it was certified as an annual high-quality supplier member of the Zhejiang Real Estate Product Purchasing Managers Alliance.

The procurement department has increased the supply rate and supported the key projects of the engineering department. In 2017, the procurement department attached great importance to supply work. It established a list of suppliers and products that are prone to shortages due to seasons, raw material price increases, production suspensions, and production schedules, and strengthened communication , Predict in advance. In 2017, the quality assurance rate of raw materials and the timely delivery rate reached 100%, which was affirmed by the company, major cooperative customers and distributors. At the same time, the Purchasing Department and the Quality Control Department actively cooperate with key engineering projects to provide key support in the quality of raw material procurement, production, and logistics. In 2017, the Purchasing Department added 2 purchasing personnel, reduced the number of single-person management of raw material varieties, suppliers, and engineering projects, improved the echelon construction of the purchasing department; regularly provided professional training for buyers, and strictly refined the departmental performance evaluation system.

The product successfully passed the "green" certification, and various methods were used to invigorate the operation. In November 2017, the company submitted a "green" material certification application to the China Timber Circulation Association. The wooden floor products were inspected by the National Wood-based Panel Quality Supervision and Inspection Center and all indicators were in line with the green Product quality requirements, and obtained the "China Green Material Mark Authorized Use Certificate" jointly issued by China Building Materials Circulation Association, China Timber Circulation Association, and China Chemical and Light Industry Material Circulation Association. Through the establishment of a marketing star mechanism, the domestic sales department and the foreign trade department require regional managers to be responsible for the store, cooperate with key home improvement companies in sales, and break through a series of competition methods such as star single products to promote sales growth, activate employee morale, increase sales enthusiasm, and sales performance in the second half of the year constant increase.

(2) Development plan for 2018

Innovation: Leapfrogging development requires an innovative model.

Responsibility: Seek a job in his place, overcome inertia, and work harder.

Execution: All work is implemented in accordance with a clear work schedule, responsibilities are assigned to individuals, and rewards and punishments are clear.

Domestic sales department: Seek breakthroughs in product sales and service cooperation, promote business development and prepare for project bidding, give full play to the enthusiasm of all sales managers, strengthen communication with home improvement companies and distributors, increase delivery varieties, and obtain support from key cooperative customers. Prioritize delivery to key customers and key projects. Strengthen team building, implement a new performance appraisal system, and guide sales managers and project managers to expand sales and increase revenue; conduct marketing cooperation program competitions with departments as teams every quarter to improve the planning and creativity of the management team; conduct sales every quarter Professional skills training for managers and project managers, improve product and engineering construction professional skills and knowledge, pay attention to service etiquette; conduct job reports for all sales managers and project managers every six months, rank all, encourage progress and promote backwardness.

The Ministry of Foreign Trade: Consolidate the existing market, continue to promote overseas business to consolidate the existing overseas market share with high-quality products and services, combine the favorable opportunities of the country’s “One Belt and One Road” strategic layout, and actively contact domestic real estate companies and companies participating in the “One Belt and One Road” construction. Well-known real estate developers and distributors in countries and regions along the “Belt and Road” quickly cut into the home furnishings of countries and regions along the “Belt and Road” by relying on the accumulation of rich real estate customer resources and outstanding architectural decoration service experience of internationally renowned real estate companies and distributors Decoration market. In overseas business, the growth rate is used as an evaluation indicator in the sales units that have been developed to be linked to the performance evaluation of sales managers. Sales competitions continue to be carried out to strengthen the momentum and creativity of the team, to complete the ranking of sales indicators, and to reward the good and punish the poor.

Warehouse: Optimize the operation and distribution management system, strictly control costs, strengthen safe operations, continue to do a good job in the existing high-quality third-party logistics cooperation services, optimize the process in accordance with the reasonable requirements of customers, and modify the software and hardware to meet the management ideas of key customers. Improve your management level to ensure long-term stability of key account cooperation. Strictly control costs. Formulate and implement a departmental expense budget system, link the performance of department managers with departmental expenses; do a good job of daily maintenance of equipment and facilities, reduce maintenance costs, and ensure that equipment and facilities are intact and functioning well; and control the costs of water, electricity, and office consumables. Develop corresponding safety management systems in terms of equipment and facility safety, product safety, personnel safety, corporate property safety, transportation safety, product quality and operation safety, etc., establish key risk control points, identify responsible personnel, conduct normal inspections, set up emergency plans, and implement them effectively Risk management and control.

Purchasing Department: Take the opportunity of developing key customers and improve the level of operation. Take the opportunity of developing key home improvement customers to expand the quantity and quality of the company's products. Strengthen communication with key customers, and provide support to customers in the notification of bidding information. Ensure the supply of products, clarify the responsibilities of buyers, reduce the out-of-stock rate, and ensure that the gross profit rate of product sales is stable and rising. Increase the gross profit margin of raw material procurement.

Distributors: Strengthen sales promotion and mobilize the enthusiasm of distributors. Continue to launch different types of sales competitions for all distributors and focus on promoting products, and work closely with distributors to meet their individual wishes as much as possible, mobilize the enthusiasm of distributors, and promote sales increase. Pay attention to the sales of key products in dealer stores. Strengthen the marketing and after-sales service training for dealers, determine suitable categories for dealers to sell, clarify sales indicators, and clarify purchase rebates.

3. Efficient management

(1) Continuous optimization of management The company follows the requirements of modern enterprise management, follows corporate governance norms, implements the management and control system of the management team, and strengthens the standardization and institutionalization of decision-making procedures and rules of procedure. To ensure the scientific, standardized and professional level of major decision-making, the company comprehensively considers the economic, environmental and social impact of the project in the process of making investment project decision-making, and earnestly conducts research on both corporate benefits and social effects to build a company and society A win-win situation, and continue to achieve sustainable development. The management consists of financial department, office, quality control department, research and development department, production department, purchasing department, domestic sales department, foreign trade department and other departments. Establish a customer service department to establish a system of rules and regulations, to provide customer service to major positions at the levels of procurement, production, sales, logistics, and invoicing. Through direct access to upstream and downstream customers to understand the service effect, the evaluation indicators are broken down, service scores are performed, and they are included in each Performance appraisal, strengthen feedback and rectification, and effectively improve the company's product quality and service image.

(2) Corporate governance norms and transparency In 2017, the company further revised the "Articles of Association" in accordance with the requirements of the "Company Law" and other relevant laws and regulations and regulatory documents, improved the corporate governance structure, and improved the modern corporate system.

1. Performance evaluation and incentive and restraint mechanism: The company actively establishes performance evaluation standards and procedures for senior managers, and makes corresponding revisions and improvements in a timely manner based on the implementation. In 2015, the company formulated the "Work Rules for the General Manager (Director) of Zhejiang Shuimo Jiangnan New Material Technology Co., Ltd." to further standardize and refine the responsibilities of senior management personnel, and promptly announce to all employees.

 2. Stakeholders: The company can fully respect the legal rights of banks and other creditors, employees, consumers, suppliers, distributors and other stakeholders, and actively cooperate with them to jointly promote the company's sustainable and healthy development. Regarding information disclosure and transparency: the company strictly complies with laws, regulations, the "Articles of Association" and the company's "Information Disclosure System" to fully fulfill the company's information disclosure obligations; at the same time, the company has formulated the "Inside Information Insider Management System" and "Annual Report" The Accountability System for Major Mistakes in Information Disclosure, and implement it in earnest to ensure that the company’s information disclosure is timely, fair, truthful, accurate and complete. ? Zhejiang Shuimo Jiangnan New Material Technology Co., Ltd. Organizational Framework Chart

(3) Internal control to reduce risks. In accordance with the requirements of relevant laws and regulations such as the "Basic Standards for Enterprise Internal Control" promulgated by the five national ministries and commissions, and supporting guidelines, an internal control system that meets the needs of enterprise development and management is established. The five aspects of control activities, information and communication, and internal supervision are comprehensively promoted and operated effectively to ensure the legality and compliance of business management, asset safety, financial reports and related information are true and complete, improve operating efficiency and effectiveness, and promote The enterprise realizes its development strategy. In accordance with the "Company Law" and other relevant laws and regulations and requirements, under the original management control system, the company has perfected and improved various management systems. Authorized supervision level: Strengthen corporate management operations, improve corporate financial management systems, and strengthen the decision-making and supervisory functions of the "three committees" for corporate foreign investment, guarantees, lending, major asset disposal, budgeting and strategic planning. Business control level: implement investment due diligence on the proposed investment company, adhere to the principle of independent investigation and independent reporting for each professional line, and the scope of due diligence covers finance, law, marketing, sales, human resources, etc. Internal information management and disclosure: In strict accordance with the company's relevant regulations, strengthen the management of the company's information insiders, and strictly prevent the occurrence of insider trading incidents. (IV) Internal supervision and internal control self-evaluation work carried out. In 2017, the company commissioned relevant qualified institutions to audit multiple business processes such as corporate governance, sales and collection, procurement and payment, financial revenue and expenditure, inventory management, and asset management. , Issued an audit report. Through internal auditing, the company’s environmental control, the establishment and improvement of internal control systems and the implementation of internal control have been supervised and inspected to ensure the implementation of the internal control system and the normal operation of production and operation activities. The company's management team reviews the self-evaluation report of the internal control of the company's various departments every year, and puts forward sound and perfect opinions. Regularly listen to the implementation and inspection of the company's various departments and business processes, and make suggestions. Through the continuous development and effective rectification of internal control work this year, the company’s existing internal control can adapt to the company’s management requirements and development needs, can further ensure the authenticity, legality and integrity of the company’s accounting information, and can ensure the company’s property The security and integrity of the materials can be true, accurate, complete and timely to report and disclose information in strict accordance with the content and format requirements of the information disclosure stipulated by laws, regulations and the company's articles of association. In 2018, the company will continue to strengthen the improvement of internal control and self-evaluation, improve relevant management measures, and promote the company's sustainable and healthy development.

 4. Social Responsibility Practice

(1) Protection of the rights and interests of employees

1. The company strictly abides by the "Labor Law" and "Labor Contract Law", standardizes the implementation of the labor employment system, signs labor contracts with employees through equal negotiation, strictly implements the working hours and rest and vacation system, and implements statutory holidays with paid vacation and paid years Holiday System. The company continuously negotiated and adjusted wages to maintain a steady increase in the wage level of employees; paid a total of about 1.5 million yuan in pension, medical, unemployment, work-related injury, and maternity social insurance; supplementary medical reimbursement borne by the company more than 26 people, the amount is 51,400 yuan; A total of more than 98,000 yuan was paid for employee welfare.

2. The company adheres to the concept of “emphasis on talents and knowledge”, builds a work, study, and living environment with ink-and-water Jiangnan characteristic culture, advocates people-oriented, and improves the salary distribution system based on job performance. Increase the introduction, reserve and training of key core talents, provide opportunities and platforms for employee growth, provide a good competitive environment for employee development, and promote the common growth of employees and the company.

3. The company attaches great importance to the business function training of each position. In 2017, the company invested a total of 334,100 yuan in continuing education. Among them, there were 3 continuing educations for production managers, 47 continuing educations for workshop directors and team leaders; a large-scale organization of employees for the 2017 "Corporate Heartline" series of courses training, safety production training, fire protection training, policy lectures, skills training, and ten There were 1750 attendees in 7 sessions including 9 major topic studies.

4. The company's trade union fully performs the function of representing the interests of employees, and regularly convenes the employee representative meeting as scheduled. When formulating, modifying or deciding on labor remuneration and other regulations or major matters directly related to the vital interests of employees, the labor union and employee representatives are involved. The employees’ right to know, participate, vote, and supervise has been implemented; rationalized suggestions, supervision and inspection, etc. have been adopted to extensively listen to the opinions and suggestions of employees; provide warmth to the needy employees and carry out condolences and assistance. The company provided nearly 500,000 yuan for the labor union.

5. The company attaches great importance to the business and cultural life of employees, composes the song of the company, opened up propaganda windows, corporate newspapers, websites, cultural activity rooms, employee bookstores, opened moral lectures, popular science lectures, held fitness festivals, line dance competitions, and fun sports games , Dumpling festival, pen pal club and other entertainment activities. The company takes the creation activities as the starting point to guide employees to consciously integrate into the construction of "cultural workshops". Strengthen publicity and guidance, and guide employees to consciously integrate into the construction of "cultural workshops" in a subtle and silent way. For example, in the corporate song "Water Ink Jiangnan" not only sings the dreams and hopes of the company, but also the common aspirations of the employees. After the launch, the beautiful and moving melody and elegant style immediately won the love of the employees.

6. The company actively cares about the physical and mental health of employees and helps them resolve their worries. In 2017, the company organized and carried out health lectures on the prevention and treatment of breast diseases, AIDS prevention publicity, and opened breastfeeding rooms, psychological counseling rooms, summer vacation classes for employees' children, etc., to solve the worries of employees.

7. Strictly implement labor safety and environmental sanitation laws, regulations and standards, and actively take various measures to improve and perfect labor safety and sanitation conditions. Reiterate the importance of the "Safety Precaution Work Instructions", "Specialty Store Safety Regulations", and "Public Security and Fire Prevention Regulations" in terms of project construction, cost investment, intrinsic safety of equipment and facilities, implementation of responsibility systems, safety inspections, and rectification of hidden dangers. All aspects of the operation of environmental protection facilities are carried out in accordance with the requirements of regulations and standards.

(2) Protection of the rights and interests of suppliers and customers

1. The company always "takes customers as the focus", highlights the quality mechanism, and comprehensively improves the effectiveness of the product quality management system and after-sales service system; practically improves products and services with "prudent, solid, practical, strict, and serious" work Quality level, to provide users with high-performance, high-quality, high-reliability products and truly satisfactory services to users.

2. The company adheres to the supplier management philosophy of "cooperation and win-win", takes cooperation as the link and honesty as the foundation to promote the common development of both supply and demand. Regarding suppliers as an important link in the corporate value chain, we provide assistance and support in terms of capital and technology. Through deepening the supplier management mechanism and establishing a long-term contact mechanism with key suppliers, it promotes suppliers to continuously improve service quality, thereby promoting the improvement of supplier quality management.

(3) Environmental protection and sustainable development

1. The company continues to increase environmental protection management efforts in daily management, working hard in the aspects of refinement and standardization, environmental protection basic management, and equipment and facility operation and maintenance, timely revision of the management system, strengthening internal assessments, and strict standardization of operations to protect the company’s environmental protection. And sustainable development provide strong support.

 2. The company vigorously develops circular economy. Formulate and implement a circular economy promotion plan, and organize the design and construction of product production and decoration projects in accordance with the principle of "reduction, reuse, and resource utilization" in accordance with the requirements of environmental protection, and promote the business cycle of business operations and the development of forest products regeneration.