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Nantong Textile Co., Ltd. Social Responsibility Report (Part 1)

1. Company Profile

The company was founded in 1977 and restructured into a private enterprise in 2003. It is a professional manufacturer of high-end clothing yarns, with 150,000 spindles, 860 employees, a plant area of ​​170,000 square meters, and total assets of 350 million yuan. The company has the right to operate self-operated exports, and is a Chinese chemical fiber blended yarn boutique base, a national knitting yarn research and development production base, and a national differentiated green yarn development base.

"Double Great" brand yarn has won the titles of China's well-known trademark, national inspection-free product, Jiangsu Province famous brand product and national user-trusted product. The company has internationally advanced and domestically spinning equipment, and has introduced the world's top drawing frames, combing machines, spinning machines, automatic winding machines and double twisting machines, a full set of USTER inspection and testing instruments, and complete testing methods. It has passed CNAS certification and USTER certification. It mainly produces pure spinning and differentiated blended yarns such as cotton, polyester, viscose, acrylic, recycled polyester, environmentally friendly viscose, modal, Tencel, etc. The company is located at No. 191, Shuanglou Road, Qutang Town, Hai'an City, Nantong City, Jiangsu Province.

The company has established a national textile industry technology innovation center, a provincial enterprise technology center, a provincial technology research center, and a provincial industrial design center. It has developed 50 new products at or above the provincial level, of which 3 were awarded national new products; 5 were awarded provincial textile technology innovation awards; 1 was awarded provincial high-tech products; 17 process technologies were awarded national invention patents; 10 were awarded national utility model patents; and more than 10 products were awarded provincial, municipal, and county science and technology progress awards. Among them, the production process technology of "Cationic Polyester Viscose Blended Yarn" was awarded a national invention patent; the new product "Nano Antibacterial Polyester Blended Yarn" filled the domestic gap, the research results reached the domestic level, and won the provincial textile technology innovation award; the new product "Aircell Yarn" filled the domestic gap, the research results reached international advanced level, and won the provincial textile technology innovation award, provincial high-tech products, and municipal science and technology progress award. He presided over the drafting of 1 national standard, 9 industry standards, and 5 group standards.

The company pays attention to product quality management, ecological environment and occupational health and safety construction. While developing steadily, the company keeps pace with the times, adheres to green development, and has low pollution and low energy consumption in the production process. It has passed the quality, environment, occupational health and safety and measurement, and energy management system certification. It has successively won the National Contract-abiding and Credit-worthy Enterprise, the National Model Enterprise of Harmonious Labor Relations, the China Textile and Apparel Federation Energy Conservation and Emission Reduction Technology Innovation Award, the China Textile and Apparel Federation Sustainable Textile Product Development Good Energy Efficiency Award, the National Double Love and Double Evaluation Advanced Enterprise, the National Model Workers' Home, the National Top 50 Cotton Textile Enterprises, Jiangsu Province Water-saving Enterprise, Provincial Civilized Unit, Provincial High-tech Enterprise, Provincial Good Performance Management Advanced Unit, Nantong City Energy-saving Enterprise, City Integrity Enterprise, City Industry-University-Research Demonstration Enterprise and other honors.

The company will always adhere to the development strategy of "setting benchmarks and making high-quality products", follow the development path of "professionalization, differentiation, and technology", build technology research and development platforms, resource integration platforms, talent aggregation platforms and brand expansion platforms, build a domestic research and development, production, and trade industry chain, and promote the sustainable development of the enterprise.

2. Protecting the Rights and Interests of Employees

1. Employ workers in accordance with the law and protect the labor rights and interests of employees

The company has formulated a labor and personnel management system based on the Labor Law and the Labor Contract Law and other laws and regulations to regulate employee recruitment, training, salary and insurance benefits, signing and termination of labor contracts, working hours, and vacations. Adhere to the concept of "money disperses people gather", put the relationship between the two in the right place, form a close partnership with employees, and let the majority of workers enjoy more reform and development results. The general manager of the company writes the goal of increasing employee income by 5% into the work goal every year, and it can exceed the predetermined target growth every year. Although it was affected by the epidemic in 2021, the company still increased employee salary income by 6.5%. The company reasonably formulates the salary standards for each position and publicly solicits employee opinions. On the 20th of each month, the full monthly salary of employees is deposited into each person's bank salary card on time. There has been no arrears or deductions of employee wages in the 46 years since the factory was established. The company handles five social insurances and housing provident funds for all contract employees, and pays social insurance fees in full and in proportion every month in strict accordance with the requirements of laws and regulations. Female employees account for 70% of the company's employees. The labor union has established a Women's Committee, which is responsible for special labor protection for female employees, issuing special allowances to female employees, organizing health examinations for employees, two cancer screenings for female employees and occupational health examinations every year, regularly understanding abnormalities in employees' physical examinations, and establishing an employee health record ERP system to facilitate employee health record management.

Focus on intellectual investment and satisfy employees' cultural learning rights. The company vigorously implements the "employee lifelong training project" to give all employees the opportunity to grow and develop. With the carrier of "creating a learning-oriented enterprise and striving to become knowledge-based employees", the company provides multi-level, multi-category and diversified training for employees. The company maintains long-term cooperative relations with Donghua University, Jiangnan University, Nantong University, Nantong Vocational University and other institutions, and implements the methods of factory-school linkage, off-site training, enterprise training, and in-factory classes to provide professional knowledge training for front-line production technology management backbones. It has successively opened 11 professional training courses in textile engineering, weaving, machinery, electronics, air conditioning, computer application, etc. During the study period, employees will receive full wages and reimburse tuition and miscellaneous expenses. Every year, an operation skills competition is held to select the top ten pacesetters and operation experts from the front-line workers, and the company organizes travel for the winners. The company supports employees' self-study and has a collection of more than 30,000 books. All self-study books purchased by employees are reimbursed. Two employees have obtained postgraduate degrees in textile technology and mechanical design and automation through self-study.

Strictly implement labor safety and health laws and regulations to protect the life and health rights of employees. In recent years, the company has invested more than 30 million yuan to introduce advanced equipment such as automatic winding machines and Qingze long machines, and increased the renovation of fine yarn nodes, which greatly reduced the labor intensity of workers. It has invested more than 10 million yuan to install new dust removal and air conditioning facilities to improve the working environment. Starting from the smallest detail training of employees' safe and civilized walking, it cost 80,000 yuan to set up and paint traffic signs on the company's roads to educate employees to drive in a civilized manner and enhance traffic safety awareness. Leaders and experts of the All-China Federation of Trade Unions and project officials of the Japan International Foundation have visited our company's work on production safety and labor protection many times and fully affirmed it.

2. Equal consultation and respect for employees’ democratic management rights

We always adhere to the people-oriented principle, take "enriching the company and enriching employees" as our common core value, take enterprise efficiency and employee income increase as our common goal, and adhere to the "three mores" in the process of enterprise development, namely: major matters are more often submitted to employees for review, difficult matters are more often discussed with employees, and urgent matters are more often taken the mass line. Form "four mechanisms", namely: a mechanism of democratic management, democratic participation and democratic supervision of employees with the staff representative conference as the basic form; a mechanism for coordinating labor relations with equal consultation and signing collective contracts and individual labor contracts as the basic form; and an employee protection mechanism with "five insurances" as the basic form. Based on the staff representative conference system, with factory affairs disclosure as the platform, and with proposal collection as the carrier, employees are encouraged to actively care about development, support development, and devote themselves to development. The wisdom and strength of employees are jointly condensed in the development of the enterprise and become the main force for the harmonious development of the enterprise. One or two months before the renewal of the labor contract, the company comprehensively conducts quota revision and improvement and wage negotiation from bottom to top. With the participation of all employees, at least two discussions and consultations are made public, and the employee labor contract signing rate, insurance coverage rate, wage growth rate, and wage timely clocking rate are "four hundred percent". We implement open factory affairs, insist on openness in major company decisions, openness in bulk material purchases, openness in major engineering project bidding, openness in salary distribution and benefits, openness in the selection and recruitment of functional management personnel, openness in rewards and punishments, openness in the selection for learning and training, and openness in awards for advanced and model innovation. We appoint people based on their merits and make rewards and punishments public. Good cooperative relationships have been formed among shareholders and close partnerships have been formed among all employees.

3. Improve the organization and maintain harmonious and stable labor relations

The company has set up a credit management office and a legal management office, and a mediation mechanism based on the union and the administration. It has organized personnel to study and train on laws and regulations such as the Labor Contract Law, the Labor Dispute Mediation and Arbitration Law of the People's Republic of China, and the Mediation Law of the People's Republic of China. It has also established a labor dispute mediation committee and a people's mediation committee to provide legal assistance to employees to safeguard their rights in accordance with the law. The company cares about employees in need and extends the harmonious culture to family culture. The company allocates a special fund to the union account every year to establish a mutual aid fund for employees in need and provide living assistance to employees in need. The annual assistance funds for employees in need are more than 100,000 yuan, and the medical expenses are reimbursed for more than 200,000 yuan. The company has launched the "Golden Autumn School Aid" program, donating more than 200,000 yuan in college scholarships for the children of employees in need, and more than 30,000 yuan in social assistance for schooling. The company carries out the "Warmth Project" every Spring Festival, and the company's senior leaders visit and comfort more than 30 families of employees in need. The company provides full-service for employees' children to go to school. For elementary and junior high schools, the company arranges single dormitories for them, providing a quiet and convenient living environment. For employees in the third year of junior high school or the third year of high school, the company arranges day shifts as much as possible, or grants them annual leave, so that employees have sufficient time to take good care of their children. The company strives to create conditions for the children of employees to become successful. Through thoughtful services, employees can work with peace of mind. The company has been rated as a national model enterprise with harmonious labor relations.

3. Protect the rights and interests of customers and suppliers

1. Protecting Customer Rights

Focusing on the strategic goals, the company adheres to the business philosophy of "using the rigorous management, spinning the quality yarn, and climbing the highest-end customers", takes "high brand, high quality, high premium, and high stickiness" as the goal, uses "SWOT, STP" and other tools to investigate and segment the market, lock in key customer groups, adopts "small batch, multiple varieties, fast delivery, high quality" fast marketing strategy, implements "exhibition marketing, word-of-mouth marketing, technical research marketing, knowledge marketing, value marketing, network marketing" and other methods, and uses the "Thirty Articles of the Company's Service Guidelines" to let customers "know the quality, recognize the purpose, compare the benefits, fast delivery, and more comfortable", establish a "long-term, stable, cooperative, and win-win" customer relationship, and form a highly competitive marketing model for the company to win and maintain customer satisfaction and loyalty and achieve the common development of customers and the company.

1. Win customers with distinctive marketing and innovative services

Standardize customer service processes to meet and exceed customer expectations by providing good product quality and thoughtful, humane services.

The company has established 30 customer service guidelines with the business philosophy of "using the strictest management, spinning the yarn, and climbing the  customers". Senior management personnel headed by the chairman and general manager, visit strategic and key customers every quarter to understand customer needs. Listen to the opinions of senior management of customers and enhance mutual friendship. Every year, through various forms of international and domestic yarn, clothing, fabric exhibitions, order fairs, and customer associations, the mutual understanding between customers and customers, customers and the company is enhanced, and the general opinions and feelings of customers, as well as the development trends of the industry, are further grasped. Business personnel regularly visit the company's customers. This method obtains the direct information and has a great role in promoting the improvement of the company's production technology and services. We are anxious about what customers are anxious about and think about what customers think. When the delivery date of customers is really urgent, we will handle special matters and give priority to each route. Help customers solve problems, create value for customers, and improve customer loyalty. Good customer relationships increase the number of customers' repeated orders, so that the company's products are actively recommended by customers. Good customer relationships and word of mouth have become the way to promote the company.

2. Manage customers by category and focus on maintenance

① Classification maintenance

Customer classification maintenance management

② Archives management

The company has established electronic customer files, including basic customer information (corporate form, assets, credit status, etc.), customer characteristic information (product variety, specifications, sales channels, etc.), and customer raw material requirements (demand volume, variety, specifications, quality requirements, etc.). After each survey or contact with customers, sales personnel will promptly collect customer information and store it in customer files, and analyze information on existing customers, competitors' customers, and potential customers, and provide it to the product research and development department. For strategic customers and key customers, in addition to the above information, we also focus on collecting personalized information from their decision makers, technical supervisors, and purchasing supervisors, and establish in-depth connections and communication channels by hiring them as technical consultants.

③Hierarchical maintenance

l For strategic customers and key customers, the company's service features are:

Establish regional managers or full-time sales personnel to provide services. Through a complete pre-sales, sales, and after-sales service system, especially strengthening technical services, we can meet and exceed customer expectations and consolidate customer relationships.

The company regularly invites representatives of strategic customers and key customers to visit the company and promote advanced management system solutions to them.

Except for strategic customers and key customers, the company tries its to meet the needs of other customers.

l For general customers, we strengthen internal management to provide products and services with guaranteed quality and quantity and high efficiency.

l The company also established files of potential customers and carried out targeted brand promotion.

3. Strengthen services and create value for customers

①Product advantages

The company's philosophy is not to simply sell products, but to sell value and services, and to provide customers with value-for-money products, as shown in Figure 3.3.2.1-1. The price of the company's products is one or two thousand yuan/ton more expensive than that of competitors, and it has its own advantages: accurate yarn count and ratio, high completion rate, high production efficiency for customers, low product loss, high rate of products, bright dyeing, many repeat orders from customers, and low loss from garment scrapping, etc.

② "Four Uniforms" Service Concept

With the problem as the guide, the chairman convened the senior management team to formulate the "two obedience" strategy of "products obey market demand, quality obeys customer needs" in a timely manner, and made the "four uniform" rigid regulations: If the customer raises a quality objection, we will provide door-to-door service within 24 hours in the province and within 48 hours outside the province. Second, if proofing is required, no matter how much, we will deliver the proofs to the door. Third, during the contract period, if the price of raw materials increases, we will execute it according to the contract and never regret it. Fourth, when customers need us to test-spin new products for them, no matter how difficult it is or how much, we will cooperate in development. The company currently has more than 4,000 users and an annual business volume of more than 30,000 transactions. Over the years, customers have been very confident in our company.

4. Satisfaction and loyalty survey procedures

The company regularly conducts customer satisfaction and loyalty surveys in the form of questionnaires every year, forming a customer satisfaction and loyalty survey system for the company.

The customer satisfaction survey includes aspects such as products (technological leadership, stability, packaging), delivery (punctuality), service (speed), purchase and sales contract terms, and comparison with competitors. Customer loyalty mainly investigates the willingness of customers to make repeated purchases, recommend others to buy, increase purchase volume, be willing to buy even if the price increases moderately, and continue to pay attention to the company and new products. The questionnaire recovery rate is required to be above 80%. Weighted average is taken for each item, and the questions raised by customers are counted. According to the importance and satisfaction, a "Satisfaction and Loyalty Survey Report" is compiled and notified to the relevant departments of the company, and each relevant department is required to propose improvement plans and time nodes. The company's general manager's office is responsible for following up on the progress and effects of improvements in systems, processes, personnel, training, etc. in various departments.

5. Use satisfaction and loyalty to implement improvements

The main ways for the company to collect information about customer satisfaction and dissatisfaction are: accepting customer complaints, communicating directly with customers, questionnaires and analytical data, and the results of industry research (such as comparative analysis of customer order volumes during the same period and the quality of benchmark and competitor products).

The Company mainly tracks and understands customers' opinions and suggestions on products, services and transactions through the following methods.

① Regular visits

The company has formulated the "User Visit Management Method" and arranged production, sales and research personnel to visit different customer groups according to the plan. Through institutionalized and standardized visit activities, the company understands customers' opinions and suggestions, and the relevant management personnel record, organize, improve and give feedback.

②Conference Exchange

Communicate with customers through sales, technical and other meetings and listen to their opinions and requirements.

Every year, the company actively participates in various activities organized by the industry and associations, such as yarn exhibitions, standard promotion meetings, technical exchange meetings, etc.

③Quality activities

The company organizes production quality technicians to visit the market regularly, communicate and train with customers, understand product usage on site, and listen to customers' opinions.

④Production and Marketing Matchmaking Meeting

Production and marketing docking meetings are held every quarter. Marketing will provide feedback to production on customer satisfaction and specific issues of concern, and production will provide feedback to marketing on recent production conditions and indicator characteristics of related products, so that marketing personnel can pay attention to the correspondence of customer needs during the sales process.

⑤Testing services

The company is a testing agency accredited by the industry association, with a full set of Uster testing instruments and constant temperature and humidity testing laboratories. It also maintains cooperative relations with authoritative institutions such as Nantong Fiber Testing Institute to conduct rapid testing and tracking of the quality and use of new products to meet customer needs to the greatest extent possible.

By adopting the above methods, the information with the customer feedback rate is: customers generally reflect that they are satisfied with the quality stability of the company's products, the timeliness of product delivery and the service of the personnel.

2. Protecting the rights and interests of suppliers

1. Supplier Management

The company has established strategic partnerships with major suppliers and classifies and manages suppliers according to the rule of three.

The main suppliers are: Sinopec Yizheng Chemical Fiber Co., Ltd., Tangshan Sanyou Co., Ltd., Xinjiang Production and Construction Corps No. 3 Agricultural Division Supply and Marketing Cotton and Linen Corporation, Shandong Yamei Technology Co., Ltd., etc., and their supply accounts for 80% of the company's total.

Two-way requirements between the company and its major suppliers

The company pays special attention to the relationship with suppliers and has identified key suppliers and partners. In order to promote long-term cooperation, mutual improvement and win-win development between the two parties, it mainly carries out the following aspects.

2. Procurement implementation measures

According to the planning of the procurement process, the implementation of the procurement process is organized from two aspects: procurement business process and supplier management process.

Procurement Process Implementation Measures

3. Establish a strategic partnership to maximize the interests of both parties

In order to minimize the cost of the procurement process, the company held a procurement meeting to identify the overall cost of the procurement process, mainly including: procurement cycle, raw material cost, transportation cost, etc., and adopted national procurement, negotiation, bidding, and price comparison to ensure that the cost of raw materials is stable and declining.

4. Supplier evaluation incentives

In order to achieve performance indicators such as the quality qualification rate of purchased raw materials and the raw material supply cycle, the procurement process is designed from two aspects: procurement business process and supplier management process, based on ERP software and in accordance with the principle of "long-term stable cooperation and win-win".

Use evaluation and incentive measures for suppliers to promote self-improvement and continuous improvement of suppliers; introduce high-quality supplier resources through supplier development and construction, improve the production scale and management level of existing suppliers, reduce procurement costs, and improve the competitiveness of the supply chain.