Recently, Shanggong Shenbei (Group) Co., Ltd. (hereinafter referred to as "Shanggong Shenbei") officially released the "2022 Corporate Social Responsibility (ESG) Report", fully demonstrating Shanggong Shenbei's business development philosophy of "market orientation, innovation leadership, global layout, green and low-carbon", promoting innovation and technological progress, accelerating green and low-carbon transformation, promoting employee professional competence improvement, actively investing in community development, consolidating compliance management and corporate governance, continuously building its own high-quality and sustainable development advantages, and striving for coordinated progress in economic and social development and environmental and ecological protection.

In 2022, facing the impact and challenges of the macro environment, Shanggong Shenbei withstood pressure and made steady progress, achieving a revenue of 3.329 billion yuan, a year-on-year increase of 6.54%, an operating profit of 144 million yuan, a year-on-year increase of 54.99%, and a total output value of over 2 billion yuan for the year, a year-on-year increase of nearly 5%, achieving a social contribution value of 1.40 yuan per share. The sustained improvement in business performance is stabilizing the company's ability to emerge from the recent business downturn and welcome a new round of accelerated development.

Environmental responsibility aspect

• Promote the development of green and intelligent manufacturing.Actively responding to the national call for "peak carbon emissions and carbon neutrality", integrating the "comprehensive digitalization" strategy into various aspects of production management, product research and development, and exploring new models for energy conservation and carbon reduction. Launching the E-CON project, which ensures efficient and environmentally friendly production processes through the application of advanced technology. Compared with similar digital competitors, it has a higher level of sewing effect while saving 25% of energy consumption.。

• Continuously improve the efficiency of green production.A "smart+green" factory with an annual output of 390000 electromechanical integrated sewing equipment has been built in Huangyan, Taizhou, significantly improving the digitalization, intelligence, and low-carbon level of the production process, enhancing product qualification rate, reducing energy consumption caused by rework and repair, and adopting technologies such as powder spraying and powder recycling. Waste gas, wastewater, and dust can be effectively treated and recycled, minimizing environmental pollution.

• Comprehensively build resource-saving enterprises.In 2022, the group headquarters relocated to Shensi Building in Baoshan Science and Technology Park, Shanghai, implementing centralized management, vigorously promoting digital management and green low-carbon office, improving administrative office efficiency, and effectively saving office resources. As of the end of 2022, a total of 60959 electronic approvals have been completed within the group, reducing carbon emissions by 1067 kilograms.

In terms of social responsibility

• Adhere to the principle of "market-oriented, customer first".Continuously accelerating precise research and development, digital products have rapidly expanded their applications in shoe upper processing automation, environmentally friendly filter bag automatic sewing production lines, safety airbag automatic production lines, automotive interior parts processing, and other fields. Multiple product technologies have achieved disruptive innovations, playing an important role in upgrading traditional industries such as footwear, clothing, and luggage, and continuously empowering the development of emerging industries, further consolidating the global leading industry position in technology, leading the forefront of sewing industry technology and intelligent manufacturing fast lane.

• Adhere to the principle of "people-oriented" and respect diverse cultures.Carry out localized management of employees, promote the improvement of their professional abilities, attach importance to the protection of their rights and interests, and create a safe and healthy working environment for employees. In 2022, a total of 164 training sessions were organized for domestic and foreign employees, with a total of 1732 participants. Actively participate in public welfare undertakings, invest funds and time in poverty alleviation, community development, and other aspects, practice the spirit of volunteer service, and work together with stakeholders to build a harmonious society. In 2022, a total of 15 butterfly fabric experience public welfare activities were held, involving 400 people including street residents, enterprise employees, school students, and faculty.

In terms of corporate governance

• Building an ESG management system.Explicitly incorporating ESG management into the company's business philosophy and group development strategy, formulating the "Social Responsibility Management System", and releasing the "Corporate Social Responsibility (ESG) Report" in sync with the annual report every year, responding to the concerns of stakeholders such as the government, customers, employees, and the public, and building sustainable development competitiveness.

• Implement employee stock ownership plan.Establish and improve a mechanism for sharing the interests of employees and shareholders, improve corporate governance, mobilize employees' enthusiasm and creativity, and promote the long-term healthy development of the company.

In the future, Shanggong Shenbei will continue to adhere to the business strategy of "innovation and service driven development", continuously leverage its three advantages of technological leadership, innovative development, and global layout, comprehensively promote green intelligent manufacturing, create a "Shanggong sample" of service-oriented new manufacturing, build a new pattern of value co creation and sharing, and draw up a new blueprint for high-quality development.