This report, prepared in accordance with the principles of authenticity, objectivity, comprehensiveness, and transparency, outlines the company’s efforts and achievements in fulfilling social responsibility throughout its 2020 production and operational activities. The data disclosed in the report related to the company’s operations are current as of December 31, 2020. Given the long-term and sustained nature of corporate social responsibility initiatives, certain forward-looking statements have been included in the reporting period. The company and all members of its Board of Directors hereby affirm that the data presented in this report are true and accurate, and that the facts stated are objective and impartial.

I. Company Overview
　　Qingdao Haitong Vehicle Bridge Co., Ltd. was established in 1994 with a registered capital of 20 million yuan. Located at No. 106 Jiefang Second Road, Jimo District, Qingdao City, Shandong Province, the company has successively earned prestigious accolades such as "China Integrity Enterprise," "Nationally Recognized Laboratory," "High-Tech Enterprise," "Shandong Provincial Enterprise Technology Center," "Shandong Provincial Contract-Honoring and Trustworthy Enterprise," "Shandong Provincial Famous Trademark," "AAAAA-Level Quality and Credit Enterprise," and "AAA-Level Enterprise Credit Rating." Additionally, the company has successfully achieved certifications for multiple management systems, including quality, environmental, occupational health and safety, and the integration of IT with industrialization.
　　In recent years, the company has established a corporate vision: "We aim to become a world-class automotive components supplier that earns the trust of our users, inspires pride among our employees, fosters harmonious corporate relationships, and earns respect from society." Our corporate mission is clear: "We are committed to driving product innovation, ensuring uncompromising quality, and delivering exceptional service—empowering China’s automotive industry to enhance its global competitiveness while creating greater value for customers worldwide." At the heart of our values lies a guiding philosophy: "Loyalty and integrity, passionate inspiration, wise resource management, courageous accountability, collaborative teamwork, steadfast adherence to principles, a relentless pursuit of knowledge, and unwavering dedication to our work." Through this robust framework of values, we’re pioneering a new, technology-driven industrial model—one that leverages innovation to strengthen our competitive edge and redefine industry standards.

2. Ensure the quality and safety of vehicle axles, and earnestly fulfill our social responsibilities.
　　The company aims to become the "leader in China's axle industry" and is fully committed to building a state-of-the-art axle production base. "Paiche Bridge has successively earned prestigious accolades such as 'Shandong Province Famous Trademark' and 'Shandong Province Brand-name Product.' The company prioritizes ensuring the quality and safety of its bridge products as its top priority, consistently reinforcing comprehensive quality control throughout every stage of production. We’ve strengthened our robust quality traceability system to guarantee seamless oversight, while steadily advancing the orderly operation of our integrated management systems for safety, quality, environmental protection, and occupational health and safety. By leveraging superior resources and aligning with evolving market trends, we’re building an industry-leading bridge production base that meets the highest standards from the outset. At the same time, we’re enhancing bridge safety management, establishing a well-rounded quality management framework, and rigorously controlling quality across all production processes—resulting in significant improvements in product quality. Notably, our company has achieved 100% coverage of product standards, along with flawless factory inspection and industry-wide sampling compliance rates for finished products. This commitment ensures that we deliver safe, reliable, and high-quality bridge solutions to customers both domestically and internationally. Moreover, we continue to drive excellence in performance management, actively engaging in QC problem-solving initiatives that foster the efficient integration of production units. We’re also dedicated to cultivating a culture of quality-focused craftsmanship, passing on the spirit of artisanal dedication to future generations. In addition, we’re ramping up innovation efforts to develop cutting-edge new products that meet the diverse needs of our clients. Simultaneously, we’re intensifying our focus on advancing production technologies, firmly embracing the principles of "green, intelligent, and digital" manufacturing. By implementing state-of-the-art clean production practices and continuously upgrading our facilities, we’re paving the way toward creating truly sustainable, eco-friendly factories. Through these initiatives, we’re not only reducing environmental impact but also laying the groundwork for a highly efficient, clean, low-carbon, and circular green manufacturing ecosystem—solidifying our position as a leader in the industry."

3. Strengthen internal control management within the company to mitigate business risks.
　　The company strictly adheres to all relevant laws and regulations, as well as social ethics, business integrity, and industry standards. We are actively fostering a culture of honesty and trustworthiness, upholding commercial credibility, and striving to become a trustworthy enterprise. In line with the Company Law and other applicable regulations, we continuously refine our corporate governance structure, enhance operational management practices, and establish robust internal control systems—strengthening our overall governance capabilities. For "Triple Major" decisions—covering significant matters, major projects, critical personnel appointments, and substantial financial allocations—we follow a rigorous process of thorough research, careful deliberation, and informed decision-making. This approach has effectively minimized investment costs and risks, while enhancing the scientific rigor and efficiency of our business operations. We also reinforce financial management by optimizing capital utilization, thereby reducing financial expenses. Additionally, we have revised internal control policies such as contract management procedures and upgraded our contract management information platform. Now, all contracts undergo online submission, review, and collaborative approval, significantly shortening the review cycle and boosting overall administrative efficiency. Furthermore, we’ve streamlined procurement processes by prioritizing quality, timely delivery, and suppliers’ credit ratings as key evaluation criteria, helping us build a reliable and transparent supply chain rooted in ethical business practices. Since our establishment, the company has maintained impeccable integrity, never engaging in activities that harm national interests, society, or consumers, or disrupt market order. Upholding our commitment to honest tax compliance, we proactively fulfill our legal tax obligations, fostering open communication and collaboration with tax authorities. We ensure accurate invoicing and timely payment of all taxes, avoiding underreporting, underpayment, or any form of tax evasion or delay.

4. Leveraging technological management innovation to drive the development of a circular economy
　　The company adheres to the principles of safety first and green development, meticulously planning and carefully executing initiatives to achieve efficient allocation and utilization of production resources, thereby driving simultaneous improvements in both production capacity and operational flexibility. Additionally, the company has launched a "Safety, Quality, and Environmental Improvement Season" campaign and introduced key policies such as the "Axle Assembly Quality Incident Handling Regulations" and the "Safety Production Responsibility System," continuously enhancing its management capabilities in safety, quality, and environmental protection.
　　The company has established a comprehensive safety management network that spans from the Safety Production Committee down through administrative departments, workshops, and grassroots teams. From top to bottom, safety responsibility agreements and safety commitment letters are signed at each level, with employees at the grassroots level formally pledging their commitment to safety. Monthly assessments are conducted to monitor performance continuously. Regular weekly, monthly, and quarterly inspections are carried out, complemented by targeted checks during major holidays and seasonal transitions. This rigorous approach ensures that unsafe practices—such as unauthorized operations, improper instructions, and violations of labor discipline—are strictly prevented. A key focus is placed on implementing the "Three Nos" system: "No overlooking, no tolerating, and no condoning" of unsafe behaviors. Additionally, identified safety hazards are addressed promptly through the "Five-Step Implementation" process, ensuring that all corrective actions are effectively put into practice.
　　The company is committed to building a "resource-efficient and environmentally friendly" enterprise. Leveraging R&D platforms such as the Shandong Provincial Enterprise Technology Center, we are strengthening our independent innovation capabilities, which in turn bolster our long-term potential for sustainable growth. We consistently prioritize environmental protection, seamlessly integrating it with our production and business operations. To this end, we have established comprehensive management systems covering quality, environment, and occupational health & safety, while vigorously promoting clean production practices and undertaking extensive upgrades to achieve ultra-low emissions. These efforts mark significant strides in our commitment to embracing a green corporate development philosophy.

5. Strengthen coordination and communication mechanisms to effectively safeguard investors' interests.
　　The company diligently engages in investor relations management and shareholder advocacy, actively facilitating investor consultations and exchanges. We promptly address various concerns raised by investors, helping them gain a clear understanding of the company’s strategic vision, growth prospects, and operational status. This fosters a long-term, stable, and mutually trusting relationship between the company and its investors. To ensure inclusivity and fairness, we hold shareholders’ meetings through a combination of in-person gatherings and online voting. Voting is conducted via a named ballot system, with legal representatives invited to witness the process. This approach guarantees that all shareholders—regardless of size—are treated equally, enabling them to fully exercise their rights as owners. Effective two-way communication and engagement play a crucial role in enhancing the company’s public image, cultivating a positive corporate environment, and maintaining stable market value for our shareholders.
　　The company consistently maintains mutually respectful, trustworthy, and mutually beneficial partnerships with all stakeholders. We remain committed to proactively addressing the key concerns of our stakeholders from their perspective, while establishing smooth and standardized communication channels to foster open dialogue. Together, we strive to achieve shared growth and harmonious success with all stakeholders. As the company accelerates its development, we also prioritize delivering value to our shareholders and remain dedicated to sharing the fruits of our growth with investors.

6. Focus on caring for talent and employees, and actively participate in public welfare initiatives.
　　The company remains committed to a people-first approach, closely aligning with its corporate development strategy to establish a scientific and transparent talent acquisition mechanism. In building its talent pool, we have created five distinct career paths tailored to employees' professional growth, seamlessly connecting technical, operational, marketing, and other career pathways. Additionally, we’ve introduced an internal system for engineering and technical experts, leveraging their expertise to guide and inspire innovation across the organization. We’ve also successfully completed an open recruitment process for R&D personnel focused on developing new axle products, ensuring that each individual’s skills are matched with the right roles—maximizing both talent and organizational effectiveness. Furthermore, the company consistently prioritizes business skills training as a valuable benefit aimed at fostering continuous employee growth and development.
　　The company strictly adheres to labor laws, contract laws, and other relevant regulations, ensuring robust implementation of internal rules governing employment management, wage compensation, working hours, and leave policies—thereby safeguarding the legitimate rights and interests of employees. We meticulously follow legal requirements when handling tasks such as drafting, terminating, or ending employment contracts, achieving a 100% contract-signing rate. During the reporting period, the company promptly and fully disbursed salaries to employees in strict accordance with applicable laws and regulations, with no instances of wage arrears reported. Additionally, we have established a monthly union information reporting system, actively listening to employees' concerns and requests while addressing their most pressing issues effectively. This proactive approach helps us resolve conflicts early on, preventing potential social unrest and fostering a harmonious, stable workplace environment. At year-end, the union provided appropriate financial assistance to employees facing economic hardships, demonstrating our commitment to supporting those in need. Beyond its core business operations, the company enthusiastically engages in social公益 activities, organizing numerous initiatives aimed at promoting community well-being, alleviating poverty, extending compassion, and giving back to society. These efforts have not only strengthened our corporate image but also reinforced our dedication to making a positive impact on the broader community. In 2020 alone, the company contributed a total of 102,000 yuan to charitable causes, further solidifying its reputation as a socially responsible enterprise committed to giving back to society.
 

7. Looking ahead, we will forge ahead with determination, striving to achieve harmonious development.
　　The company has always upheld its core value philosophy: "Though the road may be long, persistence will lead to success; though the task may be challenging, determination ensures achievement." While striving to enhance economic efficiency, we remain firmly committed to building on new foundations and steadily advancing all operational initiatives. We are further deepening our commitment to social responsibility by refining our corporate social responsibility (CSR) implementation mechanisms. By integrating CSR into every facet of business operations and management, we are intensifying our efforts to cultivate a culture of integrity, safeguarding the legitimate rights and interests of shareholders, employees, and customers alike. At the same time, we continue to strengthen our robust foundations in safety, environmental protection, and quality management. Actively engaging in social公益 activities, we are systematically enhancing our CSR oversight and management framework, ultimately achieving a harmonious balance between economic and societal benefits.

Qingdao Haitong Vehicle Bridge Co., Ltd.
June 15, 2021