NPP Releases Social Responsibility Report

1.Corporate Governance System
Good corporate governance is the intrinsic driving force for enterprises to achieve sustainable development. Since the establishment of the Company in 2014, the Company has organically combined corporate governance with production and operation work. Strictly in accordance with the requirements of the Company Law and relevant national laws, rules and regulations, the Company has established a modern enterprise system, improved the corporate governance structure and standardised the operation of the Company. It has established a systematic and scientific regulation system based on the Articles of Association, with the Rules of Procedure of the General Meeting of Shareholders, Rules of Procedure of the Board of Directors, Rules of Procedure of the Supervisory Board, and Rules of Procedure of the General Manager, etc. as the main structure. A systematic and scientific regulation system has been formed based on the General Meeting of Shareholders
It has formed a check and balance mechanism for decision-making, execution, operation management and effective supervision with the shareholders' general meeting, board of directors, supervisory board and management as the main bodies, which ensures the healthy operation of the company's production and operation and other business activities, and realises the sustainable and healthy development of the company.

2.Development of the Company
In 2023, the company focused on the main body of reform and innovation, thoroughly implemented the Party's 19th New Era Socialist Thought with Chinese Characteristics, innovated marketing strategies, actively responded to market changes, carried out independent innovation, focused on financial budget and cost assessment, strengthened the company's ability to defend and control risks, and promoted the company's sustained and rapid growth in operating performance. 2023, the company realised a sales revenue of 450 million yuan, total profit of 21.92 million yuan, and achieved sustained and rapid growth in operating results. The total profit is 21.92 million yuan, and the tax paid is 21.77 million yuan.

3.Product Management
The company has always adhered to the ‘scientific management, high-quality products, focus on customers, honest and trustworthy’ pursuit of the enterprise, adhere to the ‘quality of the brand, the quality of efficiency, quality and development’ quality policy. Depending on the quality of the product as the life of the enterprise, strict quality control of products, the establishment of long-term mechanism of product quality management and comprehensive quality management system, from the control of raw materials, technology, production process control, sales control and other links to strengthen the quality control and ensure that provide customers with assured products. The company has won the Hunan Province contract and trustworthy enterprises, Hunan Province, speciality and new small and medium-sized enterprises, integrity management demonstration enterprises, heavy service and trustworthy enterprises, enterprise credit rating certificate, quality and service integrity enterprises, contract and trustworthy enterprises, enterprise credit rating certificate, quality and trustworthy enterprises, high-tech enterprises and other honorary titles, set up offices in various provinces in the country; in the United States, Los Angeles, Rotterdam, Netherlands, Nigeria, and set up offices in the Middle East and Southeast Asia. There are professional management and technology research and development team, the company's lead-acid battery products is the company's focus on the development of products.

4.Fourth, talent training
The company has formulated a series of preferential policies to recruit and introduce talents, the introduction of talents for their spouses to solve the work, housing, etc., so that they feel that our work is sincere, come to be happy and satisfied with the work. Through the introduction of talent measures, during the 10 years our company introduced a college degree or above, intermediate and senior technical titles of 56 professionals for the development of science and technology innovation in the enterprise to provide a guarantee of talent.

The company organises and implements all kinds of on-the-job training for more than 500 people, and encourages employees to take the road of self-learning. These efforts have added vitality to the company's development.

Employees are the greatest wealth of the enterprise, the company from the care and protection of the fundamental interests of the staff from strict management, while in the daily work and attaches great importance to caring for the staff life and thinking. In order to solve the problem of staff accommodation, to create the warmth of home, the company invested more than 900 million yuan to build new dormitory buildings for employees to live. Every year in the Spring Festival, the leadership of the company is also all employees for condolences, the family conditions of the more difficult employees to give condolences to the subsidies.

5.Environmental Protection
The company takes environmental protection as an important part of its sustainable development strategy, pays attention to the fulfilment of its responsibility for environmental protection, and actively practices environment-friendly and resource-saving development.

Environmental protection management is integrated into the enterprise's management system and penetrated into all aspects of product production. Firstly, the company strengthens the publicity in all departments to enhance the awareness of environmental protection among all employees. Secondly, the environmental management indexes are implemented into every link of the product production process, and the company establishes an environmental management system from the top management, middle management to the grassroots level.
Secondly, we implement the environmental management indexes to every link in the production process, establish the target responsibility system from the top management, middle management to the grassroots of the team, form the management network, inform the production and sewage discharge situation of each department in time, and make the responsibility in place, with clear rewards and penalties, so as to truly deepen the environmental protection and the environmental concept in the heart of every employee. The company was awarded as the Provincial Environmental Protection Integrity Unit of Hunan Province in 2023.

Utilising modern information technology means, implementing paperless office and promoting the construction of an economical society. The company actively introduces modern information technology means such as financial computerisation, ERP management and intranet. Continuously improving the OA office system not only saves paper consumption, communication costs and mailing costs, but also reduces the occupation of social communication lines and postal resources by the use of telephone, fax and postal contacts. Actively promote the construction of a conservation-oriented society.

In addition, the enterprise also encourages its employees to innovate technology, eliminate outdated production processes, and build an environmentally friendly enterprise. The production system collects rationalisation proposals around the theme of ‘energy saving, cost reduction, production and efficiency’, fully improves the comprehensive utilisation rate of energy and machinery and materials, and reduces the consumption of energy and resources such as water, electricity and gas by proposing rationalisation proposals for innovation and improvement of equipment, pipelines and lines, waste equipment and facilities, machinery and material materials, and waste energy. We also propose optimisation and improvement of existing production processes to achieve energy saving and emission reduction, increase production and efficiency.

Chenzhou Nepo Power Supply Co.
23rd May 2024