Social Responsibility Report

Part I: Report Preface
I. Report Preparation Standards
This "Social Responsibility Report" reviews the company's philosophies, systems, measures, and achievements in implementing social responsibility practices. The following explains the disclosures in this report:
(I) Report Scope
Report Organization: Zhejiang Pujiang Wushi Lock Industry Co., Ltd.
Report Timeframe: October 2024 to October 2025
Report Publication Cycle: Annual
Report Publication Format and Interpretation: This report is published electronically. To obtain an electronic copy, please visit the Wushi website.
For questions regarding the report and its contents, please contact:
Contact: Zheng Qingchuan, Tel: 13868911441
Address: No. 35, Xinggong Road, Huangzhai Town, Pujiang County, Zhejiang Province
(II) Objectivity of the Report Content
This report is compiled entirely based on the company's actual production and operations. Its content is objective and impartial, without any false information. It is published regularly to receive public supervision and guidance.

II. Message
Over the past two years, the market has faced significant challenges due to the global and domestic economic downturn, the Russia-Ukraine crisis, and rising raw material prices. Facing opportunities and challenges presented by the broader economic and policy environment, the company will continue to focus on creating value and contributing to society, actively developing its metal padlock business. We strive to provide high-quality products and first-class service, ensuring longer lifespans, enhanced product quality, and greater customer satisfaction.

The company has always attached great importance to corporate social responsibility. As a key component of its overall strategic framework, we are continuously promoting long-term CSR mechanisms and gradually integrating sustainable development strategies into every aspect of our business.

Focusing on our core metal padlock business, we are committed to product innovation and management improvement. We prioritize the life cycles of our businesses and products and continuously promote sustainable development strategies for our products, services, and talent.

Regarding the sustainable development of our products and services, we consider product quality and environmental protection key to ensuring the sustainable development of our company and society as a whole. Quality and safety are our uncompromising goals. From new product design, raw material procurement, product manufacturing, to sales, we continuously improve our technology and production processes to provide safer, higher-quality products and services. To standardize and enhance our quality management system, our company has compiled a Quality, Environment, and Occupational Health and Safety Management Manual, which establishes guiding principles for the company's quality system, encompassing quality/environment/occupational health and safety management systems, management responsibilities, resource management, product realization, testing, analysis, and improvement.
We have achieved positive results by further reducing pollutant emissions, optimizing energy and resource utilization, improving process safety management capabilities, and strengthening occupational health and safety training and supervision. We are also actively promoting environmental protection policies, strictly controlling the discharge of three wastes, and implementing clean production. Furthermore, we are achieving energy conservation and emission reduction through technological advancement, process improvements, and capacity planning.
We strictly implement supplier management regulations and supplier assessment methods, scientifically evaluating supplier qualifications, production sites, process technology levels, and quality assurance systems, and implementing tiered management to ensure product quality and safety from the source.
In terms of sustainable talent development, we are committed to continuously improving our people-oriented human resources system, prioritizing the career development of existing employees and actively cultivating future talent. Furthermore, we cultivate outstanding talent for both our company and society through social welfare education donations, financial donations, job placement opportunities, and school-enterprise partnerships. Over the past year, we have made continuous progress in corporate governance, economics, environmental health and safety, products and services, employees, and society, actively shouldering our responsibilities as a corporate citizen. In the new year, we will continue to actively fulfill our social responsibilities through practice, striving to achieve comprehensive harmony between the company, society, and the environment.

III. Company Profile
Zhejiang Pujiang Wushi Lock Industry Co., Ltd. was founded in 1992 and established in 1999 with registered capital of 30.08 million yuan. It is a leading manufacturer of padlocks in China, offering a comprehensive range of products and specifications. The company primarily produces over 300 types of padlocks, which are exported to China, Russia, Europe, South America, Southeast Asia, and other countries and regions. The company currently has over 170 employees, including 35 management and technical personnel. The factory occupies a land area of ​​34,978.37 square meters and has a building area of ​​34,480.47 square meters. The company has an annual production capacity of 20 million locks and aims to achieve sales revenue of 69.06 million yuan, tax payments of 4 million yuan, and export earnings of 6.92 million US dollars in 2024. It has successively won the titles of "Zhejiang Famous Brand Product", "Zhejiang Famous Trademark", "Zhejiang Well-known Trademark", "AAA Credit Unit" of Zhejiang Industrial and Commercial Service Enterprise for Honoring Credit and Abiding by Contract, China's Outstanding Lock Making Enterprise, Zhejiang High-tech Enterprise, Zhejiang Science and Technology-based Small and Medium-sized Enterprise, Zhejiang Manufacturing Certification, and National Enterprise Standard Leader.

Part II: Report Content
I. Operation and Development Overview
(I) Operational Performance in the Past Year
Over the past year, thanks to the concerted efforts of all employees, the company has faced a challenging external environment, innovated to overcome challenges, and worked together to overcome difficulties. Key economic indicators such as production and sales volume, sales revenue, and profits have remained stable, with steady economic growth, and the company successfully completed all annual targets.
The company actively fulfills its social responsibilities and pays taxes. For many consecutive years, it has been awarded honorary titles such as "Enterprise with Tax Payments Exceeding 1 Million Yuan" and "Excellent Taxpayer" by the Pujiang County People's Government.

The company was also awarded the honorary titles of "Excellent Taxpayer" in 2024 and "High-Tech Enterprise" in 2024.

(II) Future Development Plan
The company has established a "growth strategy" for the next five years. Focusing on quality management, relying on technological innovation, guided by market demand, supported by talent development, and driven by management innovation, the company aims to further expand its market share and enhance its domestic brand awareness, focusing on both product quality and brand awareness. The company will adapt to changes in the market environment and continuously adjust its business direction and goals.
II. Social Responsibility Practices
(I) Corporate Governance System
The company organically integrates corporate governance with production and operations. In strict accordance with the Company Law of the People's Republic of China and relevant national laws, regulations, and rules, the company has established a modern enterprise system, improved its corporate governance structure, and standardized its operations. The company has established a flat organizational structure, rationally reducing management levels, shortening vertical communication gaps, and improving work efficiency. Each department serves as an internal customer and service provider for other departments. Two-way job responsibilities are closely linked, promoting communication and cooperation between upstream and downstream employees, thereby maximizing organizational efficiency.

Based on the company's development needs, each department has established its responsibilities, along with its job descriptions and authority, forming a "Position Responsibility Statement."
To better listen to and implement the opinions and suggestions of employees and customers, and facilitate effective communication and skills sharing across departments, positions, and regions, the company has designed a targeted work system and assigned specific departments for each type of information communication and feedback, clarifying their responsibilities.
All departments at all levels of the company work together to ensure the quality of the company's products and services, following clear job descriptions and authority.
(II) Protection of Shareholder Rights
The company prioritizes the protection of shareholder interests. The audited year-end financial statements are submitted to the Board of Directors, which determines the profit distribution plan and distributes dividends to shareholders upon approval by the shareholders' meeting. When major matters are discussed, a general meeting of shareholders is convened to ensure shareholder rights are effectively protected.
(III) Protection of Employee Rights
While pursuing its own development, Wu Shi always remembers the employees who contribute to the company. Company leaders are mindful of their employees' needs and ensure that the company's care and concern are conveyed to every employee, allowing all employees to share in the fruits of the company's development. 1. Create a people-oriented, healthy, safe and comfortable working environment
(1) To protect the life safety and occupational health of employees, the company has established a safety production committee. The safety production committee strengthens the safety awareness of all employees and reduces the accident rate through safety knowledge training and safety competitions. The company conscientiously implements the "Labor Law of the People's Republic of China", "Safety Production Law of the People's Republic of China" and "Occupational Disease Prevention and Control Law of the People's Republic of China", takes special protection measures for special types of work, and provides necessary labor protection supplies.
(2) In order to standardize safe operations, the company will regularly conduct 5S safety inspections in workshops and office areas, and promptly record safety hazards to improve the workshop and corporate management environment. The company will encourage employees to directly report unsafe factors and irregular operations through internal meetings or documents, and submit improvement suggestions through the general manager's mailbox. The company will also organize various activities every year to allow employees to participate in safety environment improvement work.
(3) The most influential factor in the working environment of the company's workshops on employees' health is high temperature. The company is equipped with cooling equipment such as fans and air conditioners, and provides employees with heatstroke-resistant drinks and heatstroke medicines during the hot summer season, effectively solving the harm caused by high temperatures.

2. Protecting employee rights and interests, caring for employees, providing various benefits, and addressing practical issues and difficulties in their work and daily lives.

The company boasts a 100% contract signing rate for all types of employees, with 100% contract execution. Overtime hours are implemented in accordance with national laws, and social security contributions are fully compliant with legal requirements. The company has established a wage distribution system based on performance-based pay, in accordance with relevant national labor laws and regulations. Employee salaries are paid on time and in full, ensuring that employee compensation aligns with the company's operating results.

Senior leadership promptly listens to employees' concerns, understands the effectiveness of employee support and protection measures, and further addresses practical issues and difficulties in their work and daily lives. For named employee complaints, the company has established a smooth employee complaint management channel. Whether it's suggestions or opinions, detailed feedback is provided to all levels of staff, ensuring that the company pays attention to and values ​​their opinions.

The company actively promotes a "people-oriented" management philosophy. While identifying the needs of employees in different job categories, it also pays special attention to specific groups within these groups, such as the working environment, working hours, workload, long-term career development, and equal opportunities for female employees. The company also prioritizes the unique characteristics of the growing post-2000 generation. At the same time, the company has developed various safeguards tailored to the needs of employees at different levels, providing targeted, personalized, and comprehensive support to build a true platform for growth. The company actively conducts employee satisfaction surveys to regularly assess employee needs and expectations, and proactively addresses them. Employee satisfaction is very high.

Employees are our most valuable asset, and our long-term development depends on the hard work of all employees. Zhejiang Pujiang Wu's Lock Industry Co., Ltd. always prioritizes people, striving to provide employees with a comfortable working environment, excellent benefits, and ample opportunities for development. This fosters confidence and aspirations in our employees' future. We believe that in the years ahead, we will all continue to work hard and strive to create a brighter future together! During the holidays, to express our gratitude for our employees' dedication, we distribute a variety of carefully selected benefits to all employees as a token of our holiday greetings and care.
3. Actively provide employees with various training programs, help them develop career development plans, and facilitate career advancement opportunities.
To ensure that employees with diverse abilities and interests can find suitable career paths, the company has established clear promotion assessment and management methods for different job series. This provides employees with a dual-track career development system, combining both "horizontal" and "vertical" development, providing ample opportunities for continuous advancement. Employees can choose from a variety of career development options, including vertical, horizontal, and comprehensive development, tailored to their individual circumstances. To enhance employees' career planning awareness, the company's Administration Department has established a dedicated career planning system. After the probation period, employees undergo a personal strengths and skills assessment, along with a career orientation survey, to help them understand themselves. This includes surveys of their career interests, qualifications, skills, and background, helping them set future career goals and develop development plans. HR specialists also regularly track and manage employees' career goals, guiding them toward their goals and ultimately achieving them.

Beyond providing career development guidance, the company is actively developing a variety of learning and growth platforms, including three-level company training, employee rotation programs, and a talent development program. The company also collaborates with renowned training institutions to provide training in areas such as quality, safety, and personal development to support employee career development. This has led to the establishment of a virtuous cycle of pre-employment training, post-employment development, and training enhancement, fostering rapid and stable career advancement for employees.

The company regularly organizes internal and external training sessions to enhance the overall quality and work capabilities of its employees.

4. Organize and carry out various mass activities.

The company actively encourages employee participation in mass quality management, fully leveraging the potential of each employee to improve the company's quality and efficiency. The company's mass quality management activities adhere to the principle of "extensive mobilization and full participation," with ordinary front-line employees as the main force in quality innovation. QC groups, rationalization suggestions, and 5S activities serve as platforms for all-staff quality activities. Various activities, such as technical competitions and rationalization suggestion rankings, stimulate employee enthusiasm for participation. The company provides the resources required for each activity and evaluates and recognizes the results of these activities to motivate and encourage employee participation in quality management activities.

(IV) Protection of the Rights and Interests of Customers, Suppliers, and Other Stakeholders

The company adheres to the corporate spirit of "harmony, dedication, innovation, and excellence" and the service philosophy of "keenly grasping application trends and promptly meeting customer requirements." We engage in friendly negotiations and cooperation with customers, suppliers, and other stakeholders, strictly fulfilling contracts, cooperating with integrity, and pursuing mutual benefit, win-win outcomes, common development, and shared value. The company protects customer interests primarily through the following: ensuring product safety and effectiveness from production to logistics; establishing a comprehensive mechanism for handling product quality issues and complaints; providing comprehensive product usage consulting services; a customer management system featuring regular visits by sales representatives and managers; and a robust customer satisfaction survey system. The company consistently adheres to the principles of integrity, shared interests, and mutual benefit, continuously improving its procurement processes and mechanisms. It employs risk management methods and a lifecycle model for supplier management, establishing long-term collaborative relationships with suppliers in the procurement of raw and auxiliary materials. The company continuously strengthens supplier management and helps suppliers improve their quality management. Quality agreements are signed with major material suppliers, clearly defining the quality responsibilities of both parties. Operating procedures for material supplier audits and approvals are in place, clarifying supplier qualifications, selection principles, quality assessment methods, quality audit content, assessment standards, the composition and qualifications of quality auditors, and establishing a defined on-site quality audit cycle and procedures for material supplier approval. (V) Environmental protection and sustainable development
1. Energy conservation and emission reduction
Attach importance to energy conservation and environmental protection: actively carry out energy conservation and emission reduction month activities, organize energy conservation and emission reduction working groups, establish clean production working groups, set up safety management departments, etc. Integrate energy conservation and environmental protection into the manufacturing process, continuously improve production processes, optimize production processes, research new environmentally friendly and energy-saving process technologies, reduce material and energy consumption, reduce waste, and strive to build a green factory that is harmless to the environment.
2. Environmental protection
The company has established and operated the ISO14001 environmental safety management system, and conducts regular and irregular inspections on the operation of the company's environmental management system. The company adopts advanced processes, technologies and equipment, fully implements clean production, reduces unit consumption, improves raw material utilization, and reduces pollutant generation from the source. Various pollution prevention and control measures have been implemented, and the following work has been done with emphasis:
(1) Wastewater prevention and control
The company's external wastewater is mainly used for employees' living water. After being treated in septic tanks to meet the third-level standard of the Integrated Sewage Discharge Standard (GB 8978-1996), domestic sewage is introduced into the municipal sewage network and discharged to Pujiang Fuchun Ziguang Water Co., Ltd. (Plant 1) for treatment to meet the Class A standard of the Pollutant Discharge Standard for Urban Sewage Treatment Plants (GB18918-2002). CODCr, ammonia nitrogen, and total phosphorus meet the emission limits for major water pollutants from existing urban sewage treatment plants in the Pollutant Discharge Standard for Urban Sewage Treatment Plants (GB18918-2002). Water curtain wastewater: The company recycles and regularly replenishes water from the water curtain. After a certain level of recycling, the wastewater is replaced and then disposed of by a qualified entity. Routine maintenance is performed to prevent spills. Sprayer wastewater: The project's spray tower wastewater is recycled and regularly replenished. After a certain level of recycling, the wastewater is replaced and then disposed of by a qualified entity. Routine maintenance is performed to prevent spills. Annual testing results have shown compliance with standards. (2) Exhaust gas prevention and control
Currently, the company's exhaust gas mainly comes from drilling, drilling, and polishing dust. The company has set up special dust collection devices to collect metal dust in drilling and other processes. The company strengthens the operation and maintenance management of environmental protection facilities on a daily basis. After years of testing, it has been found that the standards are met.
(3) Noise prevention and control
The noise at the company's factory boundary is mainly caused by the noise of equipment such as air compressors, punching machines, cutting machines, die-casting machines, and polishing machines. According to analogy, the noise source intensity of the equipment is 70~90dB. To ensure that the noise at the factory boundary meets the standards, the company has taken the following measures: Purchase low-noise equipment and maintain the equipment regularly. Strengthen management to reduce noise caused by collisions. Noise and equipment must be maintained and managed daily. According to the noise source, the three categories of standards in the "Environmental Noise Emission Standards for Industrial Enterprises" (GB12348-2008) should be followed. After years of testing, it has been found that the standards are met.
(4) Solid waste prevention and control
According to the solid waste disposal principle of "resource utilization, reduction, and harmlessness", solid waste is properly disposed of in accordance with regulations, the comprehensive utilization rate is improved, and secondary pollution is prevented. The general solid waste generated by the company mainly includes metal scraps, copper chips, punching dust, polishing dust, waste packaging materials, and domestic garbage. Hazardous waste mainly includes waste oil. General solid waste is collected and sold for comprehensive utilization. Hazardous solid waste must be entrusted to a qualified hazardous waste unit for disposal after collection. Domestic garbage is collected and entrusted to the sanitation department for transportation and disposal.
3. Energy conservation and consumption reduction
The company adheres to the green ecological "green manufacturing" concept and adopts energy-saving facilities and equipment, which greatly saves electricity and energy.
The environmental protection management system has been improved. Daily management and maintenance and inspection of various equipment have been strengthened, accident handling emergency plans have been formulated, and various emergency disposal measures have been implemented to ensure that the "three wastes" are fully and stably discharged in compliance with standards and solid waste is safely disposed of. 4. Green Environmental Protection
The Company actively responds to the national call to build a "resource-saving and environmentally friendly" enterprise. We attach great importance to environmental protection responsibilities, consistently adhere to the comprehensive implementation of the Scientific Outlook on Development and environmental protection, comply with national and local laws and regulations on environmental protection, and comply with emission targets. We conscientiously implement various environmental management systems, actively implement sustainable development strategies, and continuously promote energy conservation, emission reduction, and environmental protection, pursuing the coordinated development of the economy and the environment.
The Company emphasizes education on energy conservation and clean production, adheres to environmental and occupational health and safety policies, and continuously strives for clean production.
(VI) Public Relations and Social Welfare
Public relations serve as a bridge for communication between the company and the outside world, and public welfare is an important way for the company to give back to society. While striving for corporate development, the Company prioritizes maintaining public relations and actively participates in social welfare activities to promote the mutual progress of the company and society. Harmonious and positive public relations contribute to the shaping of the corporate image. The Company consciously and actively cooperates with government supervision and inspections; proactively monitors public opinion, accepts media interviews, and provides information about the company to the public. We humbly accept opinions and suggestions from all parties, fully respect all groups and individuals related to the company, and foster harmonious public relations. The company always prioritizes giving back to society and fulfilling its social responsibilities, primarily through four key areas: charitable donations, education and culture, and major disaster relief. By formulating an annual public welfare activity plan, we ensure a planned implementation of public welfare support activities, including budgeting and personnel.

We have always considered social welfare activities a crucial component of our corporate activities. Senior leadership and relevant departments systematically plan public welfare support, determining the principles and priorities for public welfare support based on the company's different development stages and strategic priorities, ensuring that it truly benefits both society and the company. Public welfare support is determined in accordance with the company's mission, vision, values, and development strategy.

In December 2023, the company donated RMB 50,000 to the Huangzhai Hometown Talents Fund in Pujiang County, specifically to support private enterprises and contribute to the economic development of Huangzhai.

In 2023, the company joined the Pujiang County Veterans Care Association and was elected as the vice-chairman unit. The company donated 50,000 yuan to the Veterans Care Association.

Due to its outstanding performance in public welfare, the company was awarded the honorary title of "Caring Enterprise" by the Pujiang County Committee of the Communist Youth League, the Pujiang County Volunteer Association 100% Public Welfare, and the Pujiang County 100% Social Work Service Center.

The domestic and international situations in the future are unpredictable. The company will seize opportunities, meet challenges, strengthen brand value enhancement, and continuously improve brand image and premium ability; strengthen product quality improvement, and use quality improvement to drive sales expansion; strengthen production efficiency improvement, and adapt to market demand to the greatest extent; strengthen operating quality improvement, and effectively improve profitability; strengthen management level improvement, innovate management models, and achieve management breakthroughs. The company will continue to conscientiously fulfill its social responsibilities: thoroughly standardize corporate governance, operate steadily, and bring more benefits to shareholders; fully motivate employees, provide them with development space, continue to care for them, actively listen to their voices, implement the two core projects of ideological and cultural construction and corporate image enhancement, and shape the spirit of employees; strengthen communication and cooperation with stakeholders, and maintain an equal, mutually beneficial, and honest strategic partnership; increase product design efforts, continuously enrich product lines, ensure product quality, optimize customer service, strengthen customer communication, and maximize customer satisfaction; continue to adhere to the implementation of the Scientific Outlook on Development, devote ourselves to environmental protection, improve environmental protection systems, use environmental protection equipment and technology to reduce and avoid pollution, increase environmental protection publicity, carry out environmental protection and energy-saving activities, improve employees' awareness of environmental protection and energy conservation, and build a green and environmentally friendly enterprise; continue to maintain public relations, be enthusiastic about social welfare undertakings, shape a good corporate image, drive local economic development, and pursue harmonious coexistence between enterprises and society.