2022 Corporate Social Responsibility Report

I. Preface

     Yan'an JIASHENG Company As a socially responsible enterprise, we remain committed to fulfilling our corporate social responsibilities even as we continue to grow and thrive. We firmly uphold the principle of creating win-win outcomes for society, employees, customers, and investors, thereby fostering harmonious, sustainable development that benefits both our business and the communities we serve.

Outstanding companies cannot thrive without the support of exceptional talent. Yan'an JIASHENG Company We have consistently prioritized talent development and respect for talent in our company’s growth, striving to create a harmonious and dynamic environment that fosters learning and innovation. We actively embrace "Our talent philosophy—'people-oriented, valuing talent above all else'—creates a vibrant platform where individuals from all backgrounds can fully showcase their abilities. At the same time, we ensure that employees share in the fruits of the company’s growth, fostering a truly positive, mutually beneficial cycle of development between talent and the organization. Moreover, we actively promote the philosophy of 'work happily, live joyfully,' encouraging a joyful and optimistic mindset as our business rapidly advances. We’re committed to cultivating a warm, healthy, and harmonious workplace environment, continuously nurturing corporate harmony—and contributing meaningfully to societal well-being in the process. Through various charitable initiatives, we actively engage in public service projects, fulfilling our social responsibilities with integrity. By embracing gratitude and compassion, we remain steadfastly dedicated to giving back to society, strengthening our commitment to people, the environment, and the broader community and nation. Together, we strive to build a truly happy and socially responsible enterprise."

• Company Profile

YAN'AN JIASHENG PETROLEUM MACHINERY CO., LTD originated from In 1989, the company relocated to the Yan'an High-Tech Industrial Development Zone in 2005. Its production and R&D base spans 68,003 square meters. The facility has an annual capacity of producing 400,000 tons of oil pipes and casing, as well as remanufacturing (repairing) 50,000 tons of oil pipes and providing corrosion protection for another 50,000 tons. We are a technology-driven enterprise integrating R&D, design, manufacturing, sales, and comprehensive service solutions. Our product portfolio includes the full range of API (American Petroleum Institute)-certified products, along with JIASHENG’s proprietary TC-50 steel series, specialized thread designs, corrosion-resistant solutions, repair services, and licensed processing solutions. The company is recognized as a high-tech enterprise in Shaanxi Province and is a key beneficiary of the Yan'an municipal government’s support program for outstanding private enterprises. Our products have earned certifications from both domestic and international oil machinery industries, making us a Tier-1 material supplier for China National Petroleum Corporation (CNPC). Additionally, our offerings are listed on Energy No.1 Network, one of China’s leading energy platforms. Our primary customer base includes the Yanchang Petroleum Group. 、 PetroChina's Changqing Oilfield, Xinjiang Oilfield, Chuanqing Drilling Company, Yan'an Petroleum & Natural Gas Company, PetroChina Coalbed Methane Company, and Sulige Oilfield also export their products to countries and regions such as Kyrgyzstan and Kazakhstan.

To adapt to the development needs of the new era, the company has established The integrated "Industry, Education, Research, and Application" technology innovation platform is unlocking vibrant momentum for scientific and technological advancement. In May 2019, the first private-sector petroleum equipment manufacturing industry academician workstation in Northwest China—the Yan'an JIASHENG Academician Workstation—was established. By August 2021, the company brought together experts from leading domestic petroleum institutions, oilfields, and steel plants to form the "Yan'an JIASHENG Expert Committee." Additionally, it partnered with renowned universities and research institutes across China to jointly create a "Technology Innovation and High-Quality Development Platform." Complementing these efforts, the company has independently set up an "Engineering Technology R&D Center" and a "Key Laboratory of Yan'an City," providing robust support for its sustained drive toward high-quality growth.

Looking ahead, the company will further strengthen its technological innovation, enhance its proprietary intellectual property rights, and develop customized, differentiated products tailored to the specific operating conditions of various oilfields. At the same time, the company will align with the nation’s policies supporting the growth of the private economy by strategically shaping its future business direction. Building on its existing core business segments, it will also position itself for green industry development—focusing on areas such as corrosion-resistant oil casing steel design, advanced surface treatments and protective coatings, and the sustainable repair and reuse of oil casings—ultimately positioning the company as a leader in its field. "Specialized, refined, distinctive, and innovative" enterprises—contributing to and advancing the nation's oil and gas development as well as the overarching goals of "carbon peaking and carbon neutrality."

3. Product Services

1. Yan'an JIASHENG Company Our product after-sales service system is robust and fully functional, with strict implementation of the "Customer Service Management System." Guided by the principles of integrity and customer satisfaction, the company has established a dedicated team of technical and after-sales service professionals. A 24-hour standby system ensures that sales and technical staff are available anytime, anywhere, to promptly address customer issues. When customers require technical services, we provide them free of charge—and have established a robust customer complaint and feedback management system to ensure their concerns are handled effectively.

2. The company regularly conducts customer satisfaction surveys through visits or questionnaires, ensuring that customer requests and suggestions are actively addressed, improved upon, and implemented. Additionally, customer satisfaction levels are monitored and analyzed on a regular basis.

3. To strengthen quality management, enhance business efficiency, boost customer confidence, expand market share, and improve the company’s corporate image, the company has obtained GB/T 19001-2008 certification for its quality management system. Currently, this quality management system has been effectively in operation for nearly a decade.

4. There have been zero instances of negative information or reports regarding product or service quality.

IV. Responsibilities to Supply Chain Partners

1. Safeguard the legitimate rights and interests of enterprise owners, treating all owners equally.

2. Fulfill creditors' commitments and implement appropriate measures to safeguard their interests.

3. Procurement Responsibility System and Guidelines. The procurement manager is responsible for the quality of both suppliers and purchased products. They must promptly prepare procurement plans based on production needs, submit these plans to the company for review and approval, and then proceed to arrange incoming inspections of the products as outlined in the procurement contract. Only materials that pass inspection are permitted to enter the facility. For any materials that fail acceptance checks, the procurement manager must firmly request returns or replacements.

4. Safeguard the legitimate rights and interests of suppliers, subcontractors, and customer distributors. The company strictly adheres to procurement contracts when making payments to suppliers, ensuring their rights are fully protected under the law. This fosters a positive partnership with suppliers and earns their trust.

5. Uphold Integrity Responsibilities

1. Lawfulness and Integrity

1.1 Comply with laws, regulations, social ethics, business ethics, and industry standards. The company is committed to operating in full accordance with the law, maintaining honesty and integrity. In our business activities, we set a shining example by strictly adhering to legal requirements, social ethics, business principles, and industry guidelines. We promptly and fully pay taxes, faithfully fulfill contractual obligations, uphold strong business credibility, and firmly oppose unfair competition. At the same time, we rigorously ensure product quality and continuously enhance our technical service capabilities, striving to deliver high-quality, safe, innovative, and dependable products and services that earn the trust and recognition of our valued customers. We also prioritize workplace safety, working diligently to provide employees with secure, healthy, and hygienic working and living environments, safeguarding their occupational health while consistently upholding laws, regulations, social ethics, business ethics, and industry standards—without any significant negative records of legal or regulatory violations.

1.2 Oppose unfair competition and eliminate corrupt practices in business activities. Externally, the company wins customer satisfaction by delivering first-class product and service technologies. Internally, we actively promote Party conduct and integrity-building initiatives to root out corruption in all business dealings.

2. Integrity in Business Operations and Customer Service: Establish a strong commitment to ethical business practices and implement systems that uphold integrity. The company fosters employees' sense of honesty and trustworthiness by embedding these values into the organization’s moral framework, while also emphasizing their critical role in ensuring the company’s survival and enhancing employees’ personal appeal. At the same time, legal measures are put in place to hold employees accountable—after all, businesses that lack integrity cannot possibly operate within the bounds of the law. Additionally, regulatory efforts are strengthened to promote corporate honesty, such as tracking contract compliance and conducting regular customer feedback initiatives.

3. Disaster Relief and Charitable Donations: Details on the company’s initiatives for disaster relief and charitable giving. The company actively engages in a variety of disaster relief and philanthropic activities. 。 This includes 2012 Charity Association Ring Environmental Sanitation Improvement Fund 100,000 yuan; in 2012, donated 300,000 yuan to the Guangcai Fund; from 2005 to 2016, provided cumulative charitable donations totaling approximately 600,000 yuan to employees facing financial hardship; in 2013, contributed 10,000 yuan to the Caijiaren Welfare Foundation; in 2015, funded the construction of a Hope School with 500,000 yuan; in 2016, donated 100,000 yuan to support severely ill and financially struggling employees within the company; and in 2019, donated 50,000 yuan to honor veterans. Since the onset of the COVID-19 pandemic, the company’s production and operations have been severely impacted. Yet, even under these challenging circumstances, all employees collectively made their utmost effort to donate 100,000 yuan to the Yan'an Red Cross Society, earmarked for pandemic prevention and control efforts.

6. Establish a Trade Union

Yan'an JIASHENG Company To advance union development and enhance employee benefits while enriching employees' leisure activities, 2008 Year 1 Month 1 Japan was established. Yan'an JIASHENG Company The first-ever Trade Union Committee was established, thoughtfully designing the organizational structure as well as outlining membership criteria, responsibilities, and benefits. To date, all company employees have voluntarily joined the union. This is crucial for fostering stable and harmonious labor relations, safeguarding workers' legitimate rights and interests, and simultaneously strengthening the company's corporate culture.

7. Assume responsibility for environmental protection, occupational health, and safety

1. Environmental Management Aspects

1.1 Yan'an JIASHENG Company Through GB/T 24001-2004 Environmental Management System certification and strict compliance with environmental protection laws and regulations have led to the issuance of a Pollutant Emission Permit, along with regular monitoring of the three major waste categories.

1.2 Conducted an environmental impact assessment as required by laws and regulations.

1.3 No incidents have occurred since the factory was established Larger Level Sh or higher Negative information on environmental violations.

2. Occupational Health and Safety Aspects

2.1 Yan'an JIASHENG Company Through GB/T 28001-2011 Occupational Health and Safety Management System certification was obtained, and strict compliance with occupational health and safety-related laws and regulations was ensured through the submission of occupational health hazard declarations.

2.2 The company has achieved national standardization. Good Conduct Enterprise AA Grade The company’s approval, and it has achieved national standardization. Good Conduct Enterprise AA Grade Business Of the Certificate.

2.3 All annual safety training plans developed this year have been fully implemented. Employee safety awareness has been further strengthened.

2.4 Occupational health checkups were conducted for both general positions and roles with potential occupational hazard risks; no abnormalities were detected in any of the employees' examination results.

2.5 Since the establishment of the factory, there have been no negative reports of occupational health and safety violations.

2.6 All specialized equipment has successfully passed the annual inspection.

3 . Conducting occupational health and safety management activities. To further strengthen all employees' awareness of safe production, enhance the company's overall safety management standards, boost workers' safety consciousness, self-protection capabilities, and reinforce the company's collective safety vigilance—ultimately preventing accidents, ensuring the company’s sustainable and secure development. 2021 Conducted training for all workshop and department personnel Twice During the fire-fighting drill, the company's safety engineer demonstrated how to use fire extinguishers, explained effective firefighting techniques, and showed employees how to properly connect and hold fire hoses and water guns. Participants then got hands-on experience, truly highlighting the importance of preparedness and teamwork in emergency situations. The fire safety policy of "prevention first, combining prevention with firefighting" fosters a sense of collective prevention and community-based management.

VIII. Outlook 2023 Year

1. Strengthen and improve the science and technology innovation system. We will focus on building an independent intellectual property system and enhancing enterprises' core capabilities in technological innovation, adopting approaches such as independent innovation, integrated innovation, introducing, adapting, and further improving technologies through absorption, as well as fostering collaborative research efforts between industry, academia, and government. This will enable us to vigorously develop cutting-edge, modern technologies that lead the industry, while also advancing the development scope of national key science and technology projects. Transform the company's resource advantages and industrial foundation strengths into tangible technological and economic benefits, ensuring that innovation efforts provide robust technical support for the company's sustained and healthy growth.

2. Caring for the comprehensive and healthy development of employees. We will continue to prioritize caring for, relying on, and uniting our employees. The company will further refine its employee compensation system to significantly enhance workers' living standards. Additionally, we will actively organize employee education, training, and skills-development initiatives, fostering greater enthusiasm for learning and boosting professional capabilities across the board. We’ll also expand opportunities for democratic management within the organization, ensuring that employees’ legitimate rights and interests are fully protected. Finally, we’ll strengthen our efforts to support and assist those in need, providing tangible help to vulnerable groups.

3. Enhance energy conservation and consumption reduction while strengthening environmental management. Actively promote advanced, energy-efficient, and high-performance technologies, equipment, and processes; refine energy-saving organizational practices; and focus on building resource-efficient and environmentally friendly enterprises.

4. Always adhere to the environmental, occupational health, and safety policy: prioritize energy conservation, environmental protection, health, and safety. Follow rules and regulations, with prevention as the top priority. Encourage full-team participation and continuous improvement.

5. Caring for employees' physical health, in 20 22 Annual assessment for occupational diseases Hazardous factors Employees at the position undergo occupational health checkups.

6. Giving back to society for a win-win outcome between the enterprise and the community. We will continue to drive business growth, creating more employment opportunities for society; strengthen our support for social welfare initiatives, encouraging acts of mutual care and assistance; and place a strong emphasis on the local community’s development in areas such as culture, education, healthcare, and safety, while also showing concern for vulnerable groups and actively fostering social harmony.

YAN'AN JIASHENG PETROLEUM MACHINERY CO., LTD  

                      2022 Year 12 Month 25 Day