Jiangsu Shentong Valve Co., Ltd. 2023 Annual Social Responsibility Report

Report Description

1. Important Tips
The board of directors and all directors of Jiangsu Shentong Valve Co., Ltd. (hereinafter referred to as "the Company", "the Company" or "Jiangsu Shentong") guarantee that there are no false records, misleading statements or material omissions in the contents of this report, and shall bear individual and joint and several liability for the authenticity, accuracy and completeness of its contents.
This report is the 13th social responsibility report compiled by Jiangsu Shentong since its listing. The purpose is to objectively and truly reflect the company's corporate governance, integrity management, safe production, employee rights, environmental protection, supplier and customer relations, Information on various aspects of social responsibility such as public relations and the public aims to strengthen the understanding and connection between various stakeholders and the company.
2. Preparation Basis
This report is compiled by the company in accordance with the "Shenzhen Stock Exchange Listed Companies Self-Regulatory Guidelines No. 1-Standardized Operation of Listed Companies on the Main Board", "Shenzhen Stock Exchange Listed Companies Business Handling Guidelines No. 2-Periodic Report Disclosure Related Matters", "China Corporate Social Responsibility Report Guide" and other relevant documents, combined with the actual situation of the company.
3. Time Range
The period of this report is from January 1, 2023 to December 31, 2023. However, based on the long-term and continuous performance of social responsibility, some contents covered in this report will be moderately extended forward, including but not limited to 2023.
4. release cycle
This report is an annual report and is released annually at the same time as the annual report of Jiangsu Shentong Valve Co., Ltd.
5. Report Scope
The organizational scope of this report is the business of Jiangsu Shentong and its subsidiaries operating in the People's Republic of China.
6. data sources
The operating data in the report are derived from the audited company's 2023 financial statements, and other data are derived from the company's internal documents and information statistics system. Unless otherwise noted, the data are from the Company's consolidated financial statements.
7. reference description
In order to facilitate the presentation and easy to read, in this report, Jiangsu Shentong Valve Co., Ltd. referred to as "company", "the company" or "Jiangsu Shentong".
8. report acquisition
This report was reviewed and approved by the 13th meeting of the sixth board of directors of the company, and was released in the form of an online electronic version. It can be found on the website of Shenzhen Stock Exchange (www.szse.cn) and Juchao Information Network (www.cninfo.com.cn) Access.

Directory
1 Basic information of the company ........................................... 4
2 Protection of shareholders' and creditors' rights and interests
3 Protection of workers' rights and interests ............................................ 9
4 Supplier and customer rights protection .................................. 11
5 Environmental protection and sustainable development ................................... 12
6 Production safety and occupational health ..................................... 13
7 Public relations and social welfare undertakings ................................. 14
8 Party building work ............................................... 14
9 Summary and Vision ............................................. 15

Foreword
As a backbone enterprise in China's valve industry, the company, as always, adheres to the mission of "industry serving the country and benefiting mankind", and takes "single champion, industry pioneer, century-old magic, respected" as the phased goal, adhere to the market positioning of "consolidating metallurgy, developing nuclear power, expanding petrochemical, serving energy, based on domestic, going global, high-end products serving high-end customers" and the corporate purpose of "creating value for users, creating opportunities for employees, creating returns for shareholders, and creating wealth for society", and serve high-end customers with high-tech and high-end products, while committed to achieving sustainable development of the company, striving to create shareholder value and protecting shareholder rights and interests, it also assumes corresponding responsibilities for the harmonious development of the economy and society, the balanced use of the natural environment and resources, and other stakeholders such as employees, customers, and suppliers. Responsibility has promoted the comprehensive and coordinated development of the company and all stakeholders in the society.
In 2023, facing the severe and complex domestic and foreign economic situation, while ensuring its own steady development, the company will more firmly shoulder the important task of helping the development of the market and the industry, and is committed to achieving sustainable development of the company, creating value for shareholders, and actively Maintain the legitimate rights and interests of creditors and employees, protect the health and safety of workers, treat suppliers, customers and consumers with integrity, vigorously develop a circular economy, protect the environment, save energy and reduce emissions, actively participate in various social welfare undertakings such as social donation and sponsorship, and fulfill the responsibility of "corporate citizen" with concrete actions.
In a complex and changeable business environment, the company has always strengthened its confidence, continuously improved and improved the corporate governance structure of the company, formulated various governance systems that meet its own development requirements, improved the level of corporate governance, strictly prevented risks, and worked hard to steadily improve performance. Investors create higher returns. The company actively responds to the national call for energy conservation and consumption reduction, and uses energy legally, reasonably and efficiently in accordance with relevant national laws and regulations.
In 2024, the world's unprecedented changes in a century will accelerate the evolution. A new round of technological revolution and industrial transformation such as digitalization, informatization and AI artificial intelligence will develop in depth. We are also facing new development opportunities. We must adhere to the guidance of General Secretary Xi's thoughts on socialism with Chinese characteristics, continue to "set industry benchmarks and create international brands" as the goal, recognize the internal and external situation, clarify the development direction, and create new brilliance. We hope that this report can serve as a bridge for communication and exchanges with all sectors of society, and we are also willing to accept social supervision to promote better and faster development of the company.

Chapter I Basic Situation of the Company
Jiangsu Shentong Valve Co., Ltd. was established in January 2001 and listed on the Shenzhen Stock Exchange in June 2010 (securities referred to as "Jiangsu Shentong", securities code "002438"). The company specializes in the research and development, production and sales of new special valves. The main products include butterfly valves, ball valves, check valves, regulating valves, filters, instrument valves and other nine categories, 145 series and more than 2000 specifications, which are widely used in nuclear power, Metallurgy, thermal power, coal chemical industry, petroleum and natural gas gathering and transportation, petroleum refining and other fields.
The company has established scientific and technological innovation platforms such as Jiangsu Province Nuclear Power Valve Engineering Technology Research Center, Jiangsu Province Enterprise Technology Center, Jiangsu Province Nuclear Power Valve Key Laboratory, Jiangsu Province Special Valve Engineering Center, and National Postdoctoral Research Workstation. The company has undertaken 29 scientific research projects at or above the provincial level, including national major special projects, national torch plan, national major scientific and technological achievements transformation projects, industrial transformation and upgrading strong foundation projects, Jiangsu scientific and technological achievements transformation projects, and Jiangsu high-end equipment development catch-up projects. Presided over and participated in the system (revision) and set 51 national or industry standards, and developed 9 national key new products. The company has obtained API6D, API609, API600, API608 certificates and German TUV fire protection certificate. It has passed CCS certification of China Classification Society, CE certification of EU, TS certification, CNAS laboratory accreditation and CU-TR(EAC) product certification, and ISO9001 quality management system, ISO10012 measurement management system, ISO14001 environment management system, ISO45001 occupational health and safety management system, GB/T29490 intellectual property management system, GJB9001C national military standard management system, APIQ1 management system, two integration management system, intellectual property management system.
In 2023, with the joint efforts of all employees, the company was successively awarded Nantong "Social Outstanding Contribution Enterprise Award", Nantong Charity Award "Most Caring Donation Enterprise", and Nantong "Five Have Five Good" private enterprise. The performance evaluation of Jiangsu Province Nuclear Power Valve Engineering Technology Research Center was "Excellent. Approved Jiangsu Province Science and Technology Business Incubator (Jiangsu Shentong High-end Equipment Incubator). Shentong Company passed the identification of high-tech enterprises, and its subsidiary Shentong New Energy Company passed the identification of high-tech enterprises for the first time. "Localized cryogenic axial flow check valve for key valves for liquefied natural gas" was awarded the third prize of the 2023 Machinery Industry Science and Technology Award; the non-dynamic nuclear-grade pneumatic butterfly valve was awarded the second prize of the Science and Technology Award of the Jiangsu Engineering Thermophysics Society and the second prize of the Science and Technology Progress Award of the Nantong Mechanical Society.

In 2023, the company closely focused on the unified deployment of the party committee and the board of directors, focused on high-quality development tasks, comprehensively strengthened various operations and management work, overcome unprecedented difficulties, and successfully completed various goals and tasks throughout the year. In 2023, the company achieved operating income of 2133.0356 million billion yuan, an increase of 9.10 percent over the same period last year; operating profit of 296.7365 million billion yuan, an increase of 15.39 percent over the same period last year; and net profit belonging to shareholders of listed companies was 268.8666 million billion yuan, an increase of 18.15 percent over the same period last year.
Chapter II Protection of the Rights and Interests of Shareholders and Creditors
During the reporting period, in strict accordance with the Company Law, the Securities Law, the Code of Governance of listed companies and the relevant laws and regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange, the company continued to improve and improve the corporate governance structure, standardize operations, strengthen information disclosure management and investor relations management, effectively prevent operational risks, achieve steady and rapid growth of business performance and continuous improvement of profitability, the rights and interests of the company's shareholders and creditors are effectively protected.
1. Continuously Improve the Corporate Governance Structure and Safeguard the Interests of Investors
During the reporting period, the company strictly followed the requirements of laws, regulations, and rules such as the Company Law, the Securities Law, the Shenzhen Stock Exchange Stock Listing Rules, and the Governance Guidelines for Listed Companies to further improve the corporate governance structure, standardize operations, and hire Institutions with professional qualifications comprehensively sort out and improve the company's internal control system, and help the company strengthen the construction of internal control systems, we have improved and perfected the decision-making, supervision and operation system with the general meeting of shareholders, the board of directors, the board of supervisors and the management as the main structure, and continuously promoted internal control evaluation and risk management. The board of directors conducts self-evaluation of the company's internal control every year and discloses the Internal Control Self-Evaluation Report. Since 2022, the company has also hired professional institutions with securities qualifications to conduct audits and issue opinions on the construction and operation of the company's internal control system.
The company actively organizes directors, supervisors and senior managers to participate in various trainings organized by Shenzhen Stock Exchange, Jiangsu regulatory bureau of China Securities Regulatory Commission and sponsor institutions, so as to improve the awareness of standardized operation and internal control management, strengthen the awareness of eliminating illegal occupation of funds and illegal guarantee, and better perform the duties of corporate governance and protecting the interests of investors.
2. standardize the operation of the "three meetings" and safeguard the legitimate rights and interests of shareholders.
The company's general meeting of shareholders, the board of directors, and the "three meetings" of the board of supervisors operate in a standardized manner, and various systems have been implemented, forming a set of mutual checks and balances and effective internal control system to effectively protect the legitimate rights and interests of all shareholders and creditors. In 2023, the company held 3 general meetings of shareholders (including 1 annual general meeting of shareholders and 2 extraordinary general meetings of shareholders),7 board of directors, and 6 board of supervisors. The convening procedures, convening procedures, qualifications of attendees and voting procedures of the meeting are in compliance with The "Articles of Association", "Rules of Procedure of the General Meeting of Shareholders", "Rules of Procedure of the Board of Directors" and "Rules of Procedure of the Board of the Board of the Board of Supervisors.
Since its listing, the company has organized and prepared the relevant work of the general meeting of shareholders, the board of directors, the board of supervisors and the special committees of directors in strict accordance with the regulations. The company has provided convenience for shareholders to exercise their rights in a variety of effective ways to ensure the right to speak of small and medium shareholders. The company's general meeting of shareholders is held by a combination of on-site voting and online voting to facilitate shareholders to participate in the general meeting and exercise their voting rights, ensure that the legitimate rights and interests of all shareholders, especially small and medium shareholders, are not infringed. For the important matters such as related party transactions, guarantee matters, deposit and use of raised funds in 2023, the independent directors of the company can take measures to actively listen to the opinions and suggestions of small and medium-sized shareholders, and express corresponding independent opinions, effectively safeguarding the legitimate rights and interests of small and medium-sized shareholders.
3. companies strengthen investor relations management, timely and effective information disclosure
In strict accordance with the articles of association, information disclosure management system and other laws and regulations, the company voluntarily and consciously performs the obligation of information disclosure, truthfully, accurately, completely and timely discloses all information that may affect the decision-making of investors, so as to ensure that all investors fully understand the company's financial status, operating performance and the progress of major issues of the company. During the reporting period, the company adhered to the principle of fair treatment of all investors, and there was no unfair information disclosure such as selective information disclosure, and there were no major accounting errors, performance corrections, etc., which ensured the quality and transparency of information disclosure. The Shenzhen Stock Exchange's interactive platform responded to investors' questions in a timely manner, strengthened interaction and communication with investors, and demonstrated the image of a transparent and responsible listed company.
In 2023, the Company disclosed a total of 67 periodic reports and interim announcements in accordance with the regulations, the contents of which are true, accurate and complete, and there are no false records, misleading statements or material omissions. The directors, supervisors and senior managers of the company faithfully and diligently perform their duties and ensure that the information disclosed is true, accurate, complete, timely and fair. After the announcement of the 2022 annual report and the 2023 semi-annual report, the company also held the 2022 and 2023 semi-annual online performance briefing in a timely manner. Mr. Wu Jianxin, director and president of the company, Mr. Yan Jun, independent director, Mr. Zhang Qiqiang, vice president and secretary of the board of directors, Ms. Lin Dongxiang, chief financial officer, Mr. Hong Xueshao, audit director, and Mr. Zhang Yi, the sponsor representative, attended the above performance briefing. At the performance presentation meeting, small and medium investors actively participated in asking questions, and the company's directors and executives gave detailed answers to the questions raised by investors to help investors have a more comprehensive and in-depth understanding of the company's operating conditions and development strategic planning.
   
4. establish a long-term and stable profit distribution policy and focus on return to shareholders.
The Company attaches importance to reasonable returns to investors while maintaining sustained and steady growth in operating results. Since its listing, in line with the core concept of creating value for shareholders, the company has continued to carry out profit distribution and cash dividends, bringing investors a sustained and stable return on investment. The Company has established and improved the requirements for cash dividends in the Articles of Association of the Company, implemented policies and measures for the return of continuous dividends to shareholders, and established a scientific, continuous and stable dividend mechanism, which institutionally protects the dividend rights of the majority of shareholders. According to the relevant requirements of the regulatory authorities, combined with the actual situation of the company, the company has formulated the "shareholder return plan for the next three years (2023-2025)", and proposed the minimum proportion of cash dividends to actively return to shareholders.
The Company's cash dividends for the last three years are as follows:
Unit: ten thousand yuan
Dividend annual cash dividend amount (including tax) Dividend annual ratio of net profit attributable to shareholders of the listed company in the consolidated statement to net profit attributable to shareholders of the listed company in the consolidated statement Annual distributable profit
2022 2,537.69 22,755.12 11.15% 117,427.01
2021 2,537.69 25,339.74 10.01% 99,035.66
2020 2,428.78 21,603.35 11.24% 78,654.92
Cumulative cash dividends in the last three years as a percentage of average annual net profit (%) 32.30
2023 profit distribution plan: according to the "2023 profit distribution plan" approved by the 13th meeting of the sixth board of directors of the company, it is planned to distribute cash dividends of 1.60 yuan (including tax) to all shareholders for every 10 shares based on the existing total share capital of 507,537,461 shares, with a total cash dividend of 81,205,993.76 yuan. In 2023, the company will not transfer the capital reserve fund to increase the share capital, will not send bonus shares, and the remaining undistributed profits will be carried forward to the following year.
Note: If there is a change in the share capital between the disclosure date of the annual report and the equity registration date for the implementation of the profit distribution plan, the total amount of distribution shall be adjusted accordingly on the basis of the total share capital on the equity registration date at the time of the future implementation of the distribution plan, and the total amount of distribution shall be adjusted accordingly in accordance with the principle that the amount of distribution per share remains unchanged.
Chapter III Protection of the Rights and Interests of Employees
The company always adheres to the people-oriented concept, regards employees as valuable resources for the survival and development of the enterprise, constantly improves the employment mechanism of the enterprise, strives to create a safe and healthy working environment for employees, builds a harmonious labor and employment environment, cares about the physical and mental health of employees, pays attention to safeguarding the basic rights and interests of employees, carries out special activities to promote the spiritual prosperity of employees throughout the company, and stimulates the enthusiasm and creativity of employees, provide opportunities and space for employees to promote and develop, and effectively safeguard the legitimate rights and interests of employees. At the end of 2023, the company had a total of 1571 employees.
1. companies protect the legitimate rights and interests of employees in accordance with the law
The company strictly implements laws, regulations and policies on labor and employment, treats all kinds of employees equally, standardizes labor and employment management, and establishes harmonious and stable labor relations. The company and its holding subsidiaries have signed written labor contracts with employees in accordance with the principle of "equality, voluntariness, and consensus", and handled social insurance, provident fund and other related procedures in a timely manner in accordance with relevant laws and regulations to ensure that employees enjoy social insurance benefits, so that employees Can get help and compensation in time in the case of pension, illness, work injury, unemployment, childbirth, etc., and implement a system of paid annual leave, make employees work and develop in a fair and just environment.
2. rational planning of employee compensation structure
At the same time of efficiency improvement and benefit growth, the salary and treatment of employees are increased. Through reasonable salary structure planning, the overall income level of employees is improved, and the happiness of employees is improved. At the same time, the company encourages employees to improve their innovation ability and carry out innovation and technology research and development in different subject areas. The company has set up a number of innovation awards and incentives to praise employees' innovation achievements, so that employees actively participate in technological innovation has become a powerful driving force for the company's sustainable development.
3. training is carried out as planned
In order to meet the needs of the comprehensive ability improvement of various departments, team building, staff skills improvement, and the personal development of the company and employees. A total of 272 internal and external trainings were organized throughout the year, with a total of 4491 trainees, covering management, technology, quality control, system, warehousing, production and other positions. The three-year rotation training for middle and senior executives will proceed as planned. In 2023, two people will be arranged to participate in the training course for leading talents in the operation and management of small and medium-sized enterprises of the Ministry of Industry and Information Technology of Shanghai Jiaotong University. Actively promote the new apprenticeship fitter skills training and appraisal project, organize and carry out 39 fitter senior workers' vocational skills certification examination, all of which were successfully obtained. Actively promote the new apprenticeship fitter skills training and appraisal project, organize and carry out 39 fitter senior workers' vocational skills certification examination, all of which were successfully obtained. In cooperation with Jiangsu Engineering Vocational and Technical College, a mechanical college class has been set up. 15 people are writing papers and are expected to graduate in June 2024.
  
4. companies attach importance to strengthening communication and communication with employees
Through the company's employee congress, production scheduling meeting, employee birthday symposium and other meetings, as well as the company's intranet instant messaging, WeChat public number and other forms, timely and extensive communication and communication with the company's employees, so as to achieve the upper and lower feelings. The company's leaders timely publicize the company's development strategic planning, target positioning and annual plan implementation to employees through monthly regular meetings.

5. companies actively promote staff spirit rich series of activities
In order to enrich the spare time life of employees, a fully equipped employee's home has been established within the company, with employee multimedia classrooms, gymnasiums, table tennis, billiards rooms, KTV rooms, and reading rooms. The company's party committee and labor union organize new year's party, Lantern Festival, summer cool party, youth association, fun games, singing competitions, meritorious service competitions, voluntary activities and other employee-friendly activities, through various forms of employee activities, make the communication between the company's employees more fully, so that the talent of employees can be well reflected, enhance the cohesion of the enterprise, enrich the amateur cultural life of employees, promote the spiritual prosperity of employees to a new level, and create a good corporate culture atmosphere.
   
Chapter IV Protection of the Rights and Interests of Suppliers, Customers and Relevant Parties
The company always adheres to the customer demand as the center, creates value for customers and makes customer satisfaction as the starting point and foothold of marketing work, constantly improves the level of management and service, fairly treats and protects the legitimate rights and interests of suppliers, customers and related parties, develops and progresses together with the majority of stakeholders, and creates an honest, harmonious and fair atmosphere of cooperation.
1. The company and suppliers have always maintained equal communication and scientific management, adhere to the principles of honesty and trustworthiness, mutual benefit, respect for the reasonable quotation of suppliers, win-win cooperation, and seek common development. Through training, assessment and other measures to enhance the supporting capacity of suppliers, to help suppliers and the company to achieve common growth. For the procurement of goods involving related parties, the "Management System for Related Transactions" is strictly implemented. Ensure that all purchases are made under the principle of "openness, fairness and impartiality", creating a good competitive environment for suppliers.
2. The company is committed to establishing long-term and stable cooperative relations with customers. Through technical exchanges, mutual visits, cooperative research and development, the company has maintained a mutually beneficial and good cooperative relationship with customers. The company implements strict quality and technical standards, adopts strict quality control measures to ensure the continuous, stable and effective operation of the quality assurance system, improves product quality and service quality, and provides customers with high quality products and warm and thoughtful services. Quality inspection, transportation, delivery and other links are checked layer by layer. In order to meet the personalized needs of all kinds of customers, in the process of "valve housekeeper" business promotion, the company finds out customers' preferences and needs through systematic market research, and helps users to realize the service of the whole life cycle of the valve; in addition to maintaining regular communication with customers through telephone, e-mail, fax and other ways, the company also organizes marketing and technical personnel to visit customers regularly and provide technical support to customers on the spot, provide high-quality pre-sales, sales and after-sales service, improve customer satisfaction, create a good brand image.
3. The company organizes regular marketing work meetings every year. According to the market and customer demand information fed back by the salesmen, the company formulates effective marketing strategies to guide customer demand and continuously improve customer satisfaction. The marketing department holds a quarterly market strategy analysis meeting to analyze the market competition in the last quarter, analyze and plan the market development plan in the next quarter, and consolidate and expand the market share through market expansion management.

Chapter V Environmental Protection and Sustainable Development
During the reporting period, the company strictly abides by the laws and regulations related to national environmental protection, strictly implements the "three simultaneous" system of construction projects, and timely and standardized treatment of waste gas, waste water, noise and solid waste in accordance with management and control procedures to achieve discharge standards. Invest in the introduction of modern pollutant online detection equipment and online monitoring equipment and facilities to strengthen the protection of the surrounding environment of the factory boundary, vigorously advocate low-carbon, environmental protection, green office concept, improve staff awareness of environmental protection. During the reporting period, the Company's pollutants were discharged up to standard and no major environmental pollution accidents occurred.
According to the characteristics of the production and operation of the valve industry, the company's management includes the number of safety accidents and the number of environmental pollution accidents into the key performance indicators, implements a one-vote veto on the assessment of major safety production accidents and environmental pollution accidents, and clearly puts forward the requirements of "people-oriented, safety first; strict management, put an end to violations; found violations, timely stop" requirements, through strong management measures, ensure that employees and the public have a safe production environment and a harmonious living environment.
In order to promote the sustainable development of enterprises and the environment, firmly establish General Secretary Xi's green development concept of "green water and green mountains are golden mountains and silver mountains", and unswervingly implement the new development concept, the company will adhere to the system concept, handle the relationship between development and emission reduction, overall and local, short-term and medium-term, take the comprehensive green transformation of economic and social development as the guide, take the green and low-carbon development of energy as the key, and implement the integrated development, eliminate outdated high-energy-consuming equipment and facilities, accelerate the formation of an industrial structure, production methods, and management policies that save resources and protect the environment, unswervingly follow the path of ecological priority, green and low-carbon high-quality development, and take the initiative to assume social responsibility for environmental protection. Comply with environmental protection laws and regulations, fully implement various environmental protection measures, and earnestly fulfill environmental protection self-discipline responsibilities.
Chapter VI Safety in Production and Occupational Health
In 2023, all departments of the company closely focused on the safety and environmental protection goals, adhered to the safety production policy of "safety first, prevention first, and comprehensive management" and the environmental protection policy of "reducing pollution and increasing efficiency, continuous improvement, and ensuring compliance". Various tasks have been carried out in a solid and effective manner, and safety production has been achieved without accidents. Employees have carried out regular health examinations, and occupational health and safety work has been carried out in an orderly manner.
1. Organize the establishment and implementation of a dual prevention mechanism for safety risk classification control and hidden danger investigation and management, and update the "one map, two orders and three cards". During the reporting period, the company's leaders took the lead in carrying out monthly 6S inspections, the heads of production workshops carried out daily self-inspections, and the safety and environment department carried out daily safety inspections. At the same time, external experts were invited to carry out safety inspections. A total of 333 hidden dangers were found through internal and external inspections, with a rectification completion rate of 100.
2. Adaptively revised the "Compilation of Safety Rules and Regulations", "Compilation of Space Operation Safety System", "Compilation of Environmental Protection System", and "Compilation of Staff Safety Operation Regulations", and newly compiled "Red Vest" Safety Management System (Trial) "Standardize the management of external workers coming to the factory, and achieved good results.
3. More than 700 front-line operators have been trained and tested on knowledge of safety, environmental protection, occupational health, fire fighting and special equipment at different levels to promote the improvement of knowledge and skills of front-line employees.
4, nuclear energy equipment company successfully obtained the safety production standardization three-level certification, sewage permit. The discharge of water, sound and gas in each plant area met the standards, and there were no external safety and environmental protection administrative penalties during the reporting period.
5. During the reporting period, the company successively organized 22 emergency rescue drills for sudden production safety accidents such as fire evacuation, electric shock, metal melt leakage, food poisoning, etc., and 1 emergency drill for sudden environmental pollution accidents. Through the drill, the staff's ability to deal with all kinds of emergencies has been improved.
  
6. Actively safeguard the legitimate rights and interests of employees. The company organized all employees involved in the post to carry out occupational health on-the-job physical examination, carried out special inspection on the correct use of all kinds of labor protection supplies, urged employees to do a good job in occupational disease prevention, and actively safeguarded the legitimate rights and interests of employees.
Chapter VII Public Relations and Social Welfare Undertakings
Since its establishment, the company has strictly abided by laws and regulations, actively practiced and assumed social responsibility while pursuing its own profitability and development. In order to implement the national poverty alleviation and development strategy and spirit, the company actively participates in charity and social donations, lays a good foundation for establishing the company's reputation, establishing a good brand image, and contributing to the comprehensive construction of a well-off society.
1. The company actively maintains communication with relevant government departments, regulatory agencies, and the media, and actively accepts the administrative supervision of government departments and regulatory agencies and the social supervision of the public and news media to create sincere and harmonious public relations. During the reporting period, the company received a total of 29 institutional and individual investor research visits, and issued 29 investor research and exchange information disclosure announcements on the interactive platform in a timely manner.
2. Business integrity, pay taxes in accordance with the law, and contribute to the development of the country and society. The company regards paying taxes in accordance with the law as the most basic requirement for fulfilling social responsibilities and giving back to the society, so as to declare taxes truthfully and pay taxes in a timely manner. The company has been one of the top 20 tax paying enterprises in Qidong City for many years, which has strongly supported the national and local economic development, and has been commended by governments at all levels, taxation and relevant competent departments for many times.
3. Actively create more job opportunities. While developing and growing, the company also actively creates more employment opportunities for the society, and contributes to alleviating the employment pressure of the society and promoting the development of the local economy. During the reporting period, the company recruited a total of 236 new employees.
4. Actively support public welfare undertakings. In 2023, the company donated 100000 yuan to the Nantong Old Area Poverty Alleviation Foundation. The fund is used to promote the revitalization and development of Nantong Old Revolutionary Area and to support social assistance and development projects for families in need and economically weak areas. Donate 500000 yuan to Zhang Jian's charity fund. Donate 160000 yuan to Qidong Charity Foundation. The company also joined hands with Qidong Football Association to carry out the "Together for the Future" charity donation activity in Xixiang County, Shaanxi Province. The company donated 100000 yuan to the local charity association for the construction of sports stadiums in mountain schools and the purchase of related sports goods to enrich the sports and cultural life of mountain children.
Chapter VIII Party Building Work
2023 is the year of the 14th Five-Year Plan, and it is also the first year to fully implement the spirit of the Party's 20th National Congress. The party committee of the company carried out its work around the spirit of the twenty great spirits and Xi Jinping's thought of socialism with Chinese characteristics in the new era, with self-confidence, self-improvement, innovation, hard work and courage. The company has organized and carried out party members' meritorious service competitions, employee skills competitions, rationalization proposal activities, knowledge competitions, theme party day activities, etc. Throughout the year, a party member conference was held once, the party committee 7 times, 27 outstanding party members were commended, 4 party members were recruited, and 3 party members were converted. The party committee of the company continues to carry out the activity of "studying and implementing Xi Jinping's ideological theme education on socialism with Chinese characteristics in the new era", normalizing and institutionalizing the party's learning and education, and actively guiding party members, cadres, and workers to make full use of the platform of "learning to strengthen the country." we will innovate the way of party organization activities and improve the consciousness and initiative of learning. Closely integrate party building work with enterprise development, realize the convergence and deep integration of party building work and enterprise development, and lead the high-quality development of enterprises.
  
Chapter 9 Summary and Vision
The development of the company and the active commitment to social responsibility complement each other and are inseparable. In the past year, under the correct leadership of the company's party committee and board of directors, all cadres and employees adhered to the guidance of General Secretary Xi's new era of socialism with Chinese characteristics, fully implemented the spirit of the 20th National Congress of the Party, and further promoted the leadership of party building. Internal management, speeding up the transformation and upgrading of enterprises, all work has achieved positive results. I would like to thank government departments at all levels, customers, suppliers, people from all walks of life and investors for their strong support and love for the company.
At present, the world's unprecedented changes in a century are accelerating the evolution, and a new round of technological revolution and industrial transformation such as digitalization, informatization and AI artificial intelligence are developing in depth. We are also facing new development opportunities. We must strengthen the wisdom of change, the way to adapt, and the courage to seek change, and effectively deal with the uncertainty of the external environment with the certainty of our own efforts. We must adhere to the guidance of General Secretary Xi's thoughts on socialism with Chinese characteristics, continue to "set industry benchmarks and create international brands" as the goal, recognize the internal and external situation, clarify the development direction, and create new brilliance.
The company will make persistent efforts, sum up the past successful experience, improve the existing deficiencies, and constantly strengthen the important role of fulfilling social responsibility in the company's development strategy while doing a good job in the company's operation; firmly establish the awareness of corporate citizenship, abide by social morality and business ethics, accept the supervision of the government and the public, and protect the legitimate rights and interests of employees while pursuing economic benefits and protecting the interests of shareholders, establish and maintain an excellent corporate image through solid work and continuous improvement.

People from all walks of life and investors are welcome to put forward valuable opinions on this report to help the company continue to improve in fulfilling its social responsibilities. We will listen carefully to your feedback and express our heartfelt thanks.
Our contact information:
Department: Office of the Board of Directors of Jiangsu Shentong Valve Co., Ltd.
Address: No.8 Shengtong Road, Qidong City, Jiangsu Province
Tel: 0513-83335899
Fax: 0513-83335998
Mail: zhangqq@stfm.cn;chenmd@stfm.cn

Board of Directors of Jiangsu Shentong Valve Co., Ltd.
21 April 2024