2025

Annual Corporate Social Responsibility Report

Cixi Beshida Electric Tools Co., Ltd.

January 2026

About This Report

Report Overview:

This report is the Corporate Social Responsibility Report issued by Cixi Bestda Electric Tools Co., Ltd. to the public. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, Cixi Bestda Electric Tools Co., Ltd. actively fulfills its social responsibilities, treats investors fairly and impartially, and promotes harmonious, win-win development between the enterprise and society. While pursuing sound corporate growth, the company remains committed to giving back to society, thereby effectively advancing the shared progress of both the enterprise and the community. This report provides a comprehensive summary of the aforementioned practices and their outcomes.

Time range:

This report provides a comprehensive overview of the company’s performance in fulfilling its social responsibilities from January 1, 2025, to December 31, 2025. Given the long-term and ongoing nature of social responsibility efforts, the scope of this report encompasses, but is not limited to, the year 2025.

Basis for preparation:

This report was prepared with reference to the “Guidelines for Preparing Corporate Social Responsibility Reports in China” and other relevant regulations, and it is presented from the perspective of all stakeholders.

Organizational Scope:

All cases and data in this report are sourced from Cixi Beshida Electric Tools Co., Ltd.

Release cycle:

This report is an annual report.

Data source:

The data and case studies presented in this report were primarily gathered from the audited 2025 annual financial statements of Cixi Bestda Power Tools Co., Ltd., its internal statistical reports, and the corporate social responsibility practice cases submitted by its affiliated units. Unless otherwise specified, all monetary amounts cited in this report are denominated in Renminbi.

Report Title:

For ease of expression and readability, “Cixi Beshida Electric Tools Co., Ltd.” is also referred to as “we” or “the company” throughout this report.

Report acquisition method:

This report is available in both print and electronic formats; please download it from the company’s website at http://www.gbestgarden.com/.

Table of Contents

Table of Contents II

I. Company Profile 1

(1) Basic Information about the Company 1

(II) Vision and Values 2

(III) Corporate Organizational Structure 2

(IV) Overview of the Company’s Corporate Social Responsibility System / Corporate Social Responsibility Philosophy 3

II. Overview of Corporate Social Responsibility Performance 5

(1) Key Factors Considered in Organizational Governance 5

(II) Protection of Employees’ Rights and Interests 7

(3) Protection of Supplier and Customer Rights 12

(4) Environmental Protection and Workplace Safety 15

(5) Social Welfare Projects 17

III. Summary and Vision 18

I. Company Profile

(1) Basic Information about the Company

Cixi Bestda Electric Tools Co., Ltd., established in 1999, is a national high-tech enterprise specializing in the R&D, manufacturing, and sales of garden power tools. Its product lineup encompasses a full range of electric gardening equipment, including lawn mowers, grass trimmers, blowers/vacuums, branch chippers, hedge trimmers, and more, primarily exported to Europe, North America, Australia, and other regions. In 2025, leveraging its existing battery‑pack platform and expanding into consumer appliances, the company launched its first outdoor fan into mass production and market release. This move not only reduces users’ acquisition costs but also marks a strategic upgrade—from a “tool brand” to an “outdoor power‑life brand.”

Figure 1: Company Products

The company occupies a site of 90 mu and currently operates 90,000 square meters of factory space. Adhering to the quality policy of “quality first, customer paramount,” the company has implemented a rigorous and highly efficient quality management system. In response to the challenges of economic globalization, it has adopted advanced information‑based management systems such as ERP, PDM, OA, and DingTalk. The company has obtained certifications for quality, environmental, and occupational health and safety management systems, undergoes regular BSCI social responsibility audits, and holds numerous international approvals, including CE, TUV, UL, and ETL. Committed to energy conservation, emissions reduction, and workplace safety, the company has established comprehensive safety production procedures and ensures their strict implementation. Upholding its vision of becoming a leader in China’s garden tools industry, the company consistently gives back to society in various ways, proactively assumes corporate social responsibility, and provides substantial support to local communities and the environment. Furthermore, while fostering employment and safeguarding employees’ rights and benefits, the company strives to continuously improve their quality of life.

(II) Vision and Values

(1) Corporate Mission: To create a green and beautiful home for humanity.

(2) Corporate Vision: To become the leading enterprise in China’s garden tools industry.

(3) Core Values: Perseverance, Positivity, Passion for Work, and Dedication.

Core Values Explanation Table:

Core Values	Interpretation
Obsession	Focusing on the landscaping industry, we aim to become a small giant in the sector.
Upward	Positioning ourselves as a premium brand, we strive for excellence and cultivate a positive, forward‑looking corporate culture.
Le Ye	Be dedicated to your work and treat employees with sincerity.
Dedication	Assume social responsibility and contribute to society.

Figure 2: Table of Core Values Explained

(3) Corporate Organizational Structure

The company adheres to the principle of “positioning based on tasks and staffing based on positions,” flexibly adjusting its organizational structure and personnel allocation in response to business needs. In line with the company’s strategic objectives and management requirements, the Management Department conducts timely design and redesign of the organizational structure—guided by the principles of alignment between tasks and goals, professional division of labor and collaboration, appropriate span of control, a balanced mix of centralization and decentralization, and the integration of stability with adaptability—to ensure it meets evolving development needs. In recent years, the company has undertaken multiple rounds of organizational restructuring, reducing managerial layers, establishing a flatter organizational structure, and creating an organizational framework better suited to both current and medium‑term corporate growth. This approach facilitates the rational allocation of enterprise resources and lays a solid foundation for efficient operations. The company’s organizational chart is as follows:

Figure 3: Flat Organizational Structure of the Company

(IV) Overview of the Corporate Social Responsibility System / CSR Philosophy

(1) Corporate Social Responsibility Philosophy

General Secretary Xi Jinping has pointed out: “Enterprises have economic and legal responsibilities, as well as social and ethical responsibilities. Only wealth imbued with compassion is truly meaningful, and only enterprises that actively shoulder social responsibility are the most competitive and resilient.” Corporate social responsibility refers to the obligation of enterprises, while generating profits and fulfilling their legal duties to shareholders and employees, to also assume responsibilities toward consumers, local communities, and the environment. It requires businesses to move beyond the traditional notion of profit maximization as the sole objective, emphasizing respect for human dignity throughout production processes and underscoring contributions to the environment, consumers, and society at large.

Senior management has consistently adhered to the values of “perseverance, upward striving, dedication to work, and selfless contribution,” setting an exemplary standard through their own conduct. The company actively advances its corporate social responsibility initiatives, taking the fulfillment of social responsibilities as its core mission. It seeks to refine its CSR management system, continuously innovate in CSR practices, and proactively explore effective ways to integrate CSR principles into corporate decision-making and daily operations, thereby laying a solid foundation for sustainable development. Upholding its commitment to social responsibility, the company leverages its professional strengths, proactively embedding CSR considerations into its business activities, and prioritizing the rights and expectations of all stakeholders. In its production and operational activities, the company steadfastly upholds the principles of voluntariness, fairness, and good faith, complies with public ethics and business ethics, and remains accountable to government oversight and public scrutiny.

Based on this, the company upholds corporate social responsibility, making it a core value that underpins its growth and development, and strengthening its sense of responsibility and mission toward society. In areas such as production safety, energy conservation and resource efficiency, environmental protection, safeguarding the rights and interests of stakeholders, and fostering harmonious relationships between the enterprise and the community, the company ensures that economic and social benefits, short-term and long-term interests, and its own development and societal progress are properly balanced, thereby achieving healthy, harmonious development among the enterprise, its employees, and society at large, as well as between the enterprise and the environment. In terms of public‑welfare support, the company is committed to social philanthropy and charitable causes. Since 2001, it has been a member of the Cixi City Charity Federation, donating tens of thousands of yuan annually to charitable initiatives. For more than a decade, it has also organized year‑end visits to offer condolences and gifts to residents aged 70 and above in Maima Village, Henghe Town, Cixi City.

The company has implemented the ISO 14001 environmental management system, the ISO 45001 occupational health and safety management system, and the BSCI social responsibility management system. By proactively strengthening relationships with employees and other stakeholder groups, the company enhances its corporate image and reputation, while also bolstering employee engagement, organizational cohesion, and overall competitiveness.

(2) Social Responsibility Organizational System

The specific organization and implementation of corporate social responsibility are jointly undertaken and coordinated by the company’s various management departments.

(3) Governance Structure and Institutional Development

The company, in strict compliance with the Labor Law, Accounting Law, Corporate Income Tax Law, Measures for the Supervision and Administration of Operators of Special Equipment, Regulations on the Safety Management of Hazardous Chemicals, Law on the Prevention and Control of Occupational Diseases, Fire Protection Law, Law on Work Safety, Technical Requirements for Fire Safety in Premises Used Simultaneously for Accommodation, Production, and Business Operations, Design Code for Automatic Fire Alarm Systems, Technical Specifications for Urban Remote Fire Monitoring Systems, and other relevant statutes, has formulated a series of related management systems and incentive mechanisms. These include the Information Communication Control Procedure, the Continuous Improvement Control Procedure, the Anti-Corruption and Anti-Bribery Management Procedure, and the Procedure for Preventing Improper Benefits, among others. The company also promptly updates and refines these systems in accordance with the latest higher-level laws and regulatory requirements. Furthermore, aligned with the company’s strategic objectives and management needs, the Management Department, guided by principles such as task‑goal alignment, professional division of labor and collaboration, appropriate span of control, a balance between centralization and decentralization, and the integration of stability and adaptability, regularly designs and redesigns the organizational structure to ensure it meets evolving business demands. In recent years, the company has undertaken multiple rounds of organizational restructuring, reducing managerial layers and establishing a flatter organizational structure. This new framework is better suited to the enterprise’s current and medium‑term development, facilitating the rational allocation of resources and laying a solid foundation for efficient operations.

Overview of Corporate Social Responsibility Performance

(1) Key Factors Considered in Organizational Governance

1. Clearly define the management’s operational responsibilities, ethical responsibilities, and legal responsibilities.

A set of systems, including financial accounting management and internal control mechanisms, has been established. The enterprise maintains a comprehensive oversight and accountability framework, fulfilling its functions of decision-making on major corporate matters, strategic direction, and objectives, as well as ensuring mutual checks and balances. It implements a resolution‑approval system, a collective deliberation mechanism for significant issues, and a reporting system for the execution of decisions. Additionally, it operates a pre‑emptive financial oversight mechanism, a post‑facto audit‑based monitoring system, and a separation‑of‑duties policy for the custody of funds and assets.

2. Financial Responsibilities

The company has established a financial budgeting and forecasting system, providing comprehensive analysis of product sales profitability and implementing transparent financial controls over operational processes. It conducts annual financial risk assessments and develops and implements an audit‑and‑oversight work plan. In terms of financial management, the company has clearly defined procedures for approving annual financial operating plans as well as major investment and financial decisions, along with a reporting mechanism for any unusual changes in financial conditions. At the same time, it strengthens cash‑management practices, streamlines financial workflows, and effectively mitigates operational risks.

To effectively mitigate financial settlement risks, the company has established a comprehensive end-to-end control mechanism that covers pre‑transaction, in‑transaction, and post‑transaction stages. The specific measures are as follows:

(1) Prior Credit Risk Transfer

At the same time as entering into sales contracts with overseas customers, the company obtains export credit insurance from China Export & Credit Insurance Corporation for each export transaction, thereby covering both the buyer’s commercial credit risk and the political risks of the country of destination, thus minimizing losses on accounts receivable.

(2) In-process payment incentive and constraint mechanisms

A special incentive policy is implemented for sales personnel to accelerate the collection of accounts receivable, linking sales performance directly to actual cash receipts. This motivates sales staff to proactively follow up and expedite debt collection, thereby shortening the capital‑turnover cycle.

(3) Prudent provision for bad debts after the fact

In accordance with the principle of prudence in accounting, the company applies the aging analysis method to accrue allowances for doubtful accounts and other receivables. Specifically, it groups receivables based on the age of each account as recorded in the accounts‑receivable ledger, estimates a differentiated allowance rate for each aging category, and calculates the year‑end allowance by multiplying the balance of each group by its respective percentage. This approach ensures an accurate reflection of asset quality and potential risks. The company continuously establishes and refines fair, transparent, and effective performance evaluation criteria and incentive‑constraint mechanisms for senior management. The appointment of senior executives is conducted in an open and transparent manner, in full compliance with applicable laws and regulations. The General Manager reviews the company’s overall performance as well as the performance of the company’s leadership: annually approving the annual objectives and plans set by senior management, and, through an annual democratic appraisal process, soliciting employees’ feedback and recommendations on the leadership. This process evaluates and assesses the company’s overall performance, its ethical responsibilities, its legal obligations, and the performance of senior executives.

Senior management formulates corrective action plans and measures based on the evaluation results, integrates them into the work plan, and enhances the effectiveness of the leadership system through continuous improvement.

Protection of the Interests of Shareholders and Other Relevant Parties

Stakeholder	Measures for the Protection of Interests
Shareholder	The company has established a consistent and stable shareholder return mechanism, adhering to annual cash dividends to effectively safeguard shareholders’ rights to investment returns.
Employee	The company is committed to fostering a work environment that balances professional fulfillment with opportunities for personal growth. It strictly complies with the Labor Law and other relevant statutes, enters into labor contracts in accordance with the law, and safeguards employees’ legitimate rights and interests. The company has established trade unions and workers’ congresses as required by law, conducts annual specialized occupational health examinations, and effectively protects employees’ health rights. It also regularly reviews the implementation of labor contracts and continuously works to enhance working conditions and quality of life for its workforce.
Customer	The company adheres to the core business philosophy that “quality is the lifeblood of the enterprise” and has established a comprehensive quality assurance system that covers the entire process. By building a standardized management framework, it rigorously controls quality at every stage—product design, manufacturing, and inspection. Furthermore, the company has developed a scientific and impartial customer satisfaction index evaluation system and conducts an annual customer satisfaction survey, using the results as a key basis for continuously improving service quality and enhancing corporate value, thereby striving to achieve the goal of “sustained improvement in customer satisfaction.”
Suppliers and Partner	The company adheres to the cooperative philosophy of “sincere collaboration and shared growth,” fostering fair and transparent supply-chain partnerships. It conducts open, equitable, and impartial selection of key service providers and raw-material suppliers, maintaining and dynamically managing a “Qualified Supplier List.” In strict compliance with the Contract Law, the company promptly settles payments to suppliers with sound creditworthiness and a track record of reliable performance, as stipulated in the contracts, thereby preventing any instances of payment arrears. Each year, the company convenes a Supplier Conference to strengthen strategic communication and promote synergistic development.
Society	We strictly comply with national laws and regulations and conduct business with integrity. We protect the environment, adhere to environmental management system standards, and continuously promote green production and energy conservation and emissions reduction. We actively engage in social welfare and charitable activities, contributing to social harmony and progress.

Figure 4 Stakeholder Protection Measures

4. Independence of Internal and External Audits

(1) Independence of Internal Audit

The company conducts annual self-inspections and self-corrections to ensure compliance with financial and tax regulations, as well as other internal financial policies. Each year, it carries out comprehensive self-assessments and evaluations of the fulfillment of financial responsibilities by all departments and relevant personnel, along with an assessment of budget execution. Furthermore, it implements performance evaluations for economic accountability. The primary scope of internal auditing includes: regularly reconciling accounts receivable and payable; conducting periodic physical inventories of finished goods, raw materials, and other inventory items; performing scheduled or ad hoc physical counts and inspections of fixed assets; and, prior to the preparation of year-end financial statements, conducting a thorough inventory and verification of all fixed assets.

1. Independence of the external auditor

The company engages the external accounting firm Cixi Hongzheng Accounting Firm Co., Ltd. to conduct an annual external audit.

5. Policies on the transparency of business management and information disclosure

The company operates with transparency, designating dedicated personnel to oversee information disclosure, establishing and refining business rules and procedures for disclosure, and standardizing the preparation and submission of all periodic and ad hoc reports.

The General Manager reviews the company’s overall performance and the performance of its leadership: Each year, the General Manager approves the annual objectives and plans set by senior management, and conducts an annual democratic evaluation to solicit employees’ feedback and recommendations on the leadership. This process is used to assess and evaluate the company’s overall performance, its ethical responsibilities, its legal obligations, and the senior leadership team.

Senior management formulates corrective action plans and measures based on the evaluation results, integrates them into the work plan, and enhances the effectiveness of the leadership system through continuous improvement.

The person being evaluated	Evaluator/Department	Evaluation method	Review Content	Frequency	Application of Evaluation Results
Chief Operating Officer	General Manager	Year-end performance review	Operating performance, company operating condition	Once per year	Changes to the leadership structure, such as adjustments to job roles, compensation, performance evaluation metrics, job responsibilities, and management approaches.
Vice President	Chief Operating Officer	Year-end performance review	Indicators such as operating performance, overall capabilities, customer satisfaction, fulfillment of social responsibilities, and budget management levels.	Once per year

Figure 5: Performance Evaluation of Senior Leadership

(II) Protection of Employees’ Rights and Interests

The company’s growth is inseparable from the hard work of all its employees. We have consistently committed ourselves to safeguarding the rights and interests of every employee in multiple ways, ensuring their satisfaction, strengthening their sense of belonging and identification with the company, and thereby boosting their motivation and enthusiasm.

1. Safeguard employees’ legitimate rights and interests in accordance with the law.

To safeguard employees’ legitimate rights and interests, a labor contract is signed with the company on the day of employment, and the Administration Department handles the enrollment and payment of social insurance and commercial insurance.

2. Foster a scientific, safe, and environmentally friendly work environment.

To ensure and continuously improve occupational health and safety, the company has established appropriate measurement indicators and objectives for different workplaces. The specific measurement items and indicators for special workplaces are listed in the table below.

Place	Measurement item	Measurement method	Control Indicator	Monitoring frequency	Monitoring Department
Production workshop	Noise	Instrumental analysis	Complies with national standards; no occupational diseases have occurred.	Once per year	Qualified third-party testing company
	Total dust	Instrumental analysis	Complies with national standards; no occupational diseases have occurred.	Once per year	Qualified third-party testing company
	Mechanical Hazards and the Use of Personal Protective Equipment	Visual Inspection Method	No fatalities or serious injuries occurred; the rate of minor injuries was kept within the national standard, and the rectification rate for potential hazards reached 100%.	Once a month	Management Department
Dangerous Goods Warehouse	Fire and explosion prevention facilities	Visual inspection method, sampling inspection method	No fire or explosion incidents occurred, and the hazard rectification rate reached 100%.	Once a month	Management Department
Industrial/Environmental Living Conditions	Potable water	Instrumental analysis	The waste factor complies with national standards.	Once per year	Qualified third-party testing company
	Exhaust gas	Instrumental analysis	The waste factor complies with national standards.	Once per year	Qualified third-party testing company
	Wastewater	Instrumental analysis	The waste factor complies with national standards.	Once per year	Qualified third-party testing company
	Noise at the plant boundary (day and night)	Instrumental analysis	The waste factor complies with national standards.	Once per year	Qualified third-party testing company
	Solid waste	Recycling and disposal	Centralized disposal in accordance with national standards.	Once per year	Qualified third-party disposal company

Figure 6: Measurement Items and Metrics for Key Workplaces

1. Ensure adequate emergency preparedness for workplace emergencies.

The company has established and implemented an ISO 14000 environmental management system, rigorously controlling all performance indicators, tracking potential issues, and pursuing continuous improvement, thereby maintaining a high level of operational control. A safety production leadership group has been formed, and each year it organizes refresher training for safety production managers and safety officers. Key potential emergency scenarios have been identified, and corresponding response measures have been put in place, as shown in the table below.

Serial number	Disaster Clear Subspecies	Authority and responsibility Department	Scope and Consequences of Potential Impact	Daily Management and Emergency Prevention Measures
1	Typhoons and Floods	Emergency Response Leading Group	Disruptions to inbound and outbound logistics, production line shutdowns, personnel injuries, and property damage	Issue immediate warnings, provide advance notice and evacuate personnel and relocate belongings, and activate the emergency response plan.
2	Fire	Emergency Response Leading Group	Property damage, personal injury, disruption of supply, and violations of the law	1. Fire safety inspections and corrective action implementation, along with regular fire drills. 2. Activate the emergency response plan
3	Earthquake	Emergency Response Leading Group	Inventory disruptions, production line stoppages, and personnel injuries	Activate the emergency response plan.
4	Explosion	Emergency Response Leading Group	Personnel injury	Safety Protection and Enhancement of Employee Awareness and Competencies
5	Environmental pollution incident	Emergency Response Leading Group	Illegal; affects supply.	Activate the emergency response plan.
6	Public health emergencies (such as the COVID-19 pandemic)	Emergency Response Leading Group	Disruptions in inbound and outbound logistics, with staff infections.	Activate the emergency response plan.

Figure 7 Emergency Response Plan

Figure 8: Fire Safety Training

Figure 9 Fire Drill

The company conducts training for relevant personnel and carries out emergency response drills on an irregular basis to enhance employees’ ability to protect themselves and assist others in various emergency situations.

Accident classification	Accident Description	Accident Handling
Major accident	1–2 deaths	The company’s senior management shall organize the handling of the accident and determine its root causes. The accident investigation and analysis shall be led by the company’s safety director, with specialized functional departments taking the lead and relevant departments participating, and the findings shall be reported to the company’s general manager and the pertinent local government authorities.
	1 to 9 or more people seriously injured
	A major accident occurred, resulting in economic losses exceeding RMB 50,000, involving production, equipment, pollution, fire and explosion, traffic, or other categories.
General accident category	Major accidents of various types—such as production, equipment, material spillage, pollution, fire and explosion, and traffic incidents—resulting in direct economic losses of RMB 20,000 to over RMB 200,000 per incident.
	Personal injury accidents resulting in 3 to 50 lost workdays	The company’s safety officer shall convene the head of the department responsible for the accident, along with relevant personnel, to conduct an investigation and analysis, and submit a report on the accident’s causes, findings, and proposed corrective measures to the supervising management.

Figure 10: Classification of Safety Accidents

1. Provide targeted, personalized, and diversified support tailored to different employees.

The company has established a trade union in accordance with the law and fully leverages its role as a bridge between employees and the enterprise, effectively safeguarding employees’ legitimate rights and interests. The union regularly gathers employee feedback and suggestions through diverse channels—including employee forums, the Employees’ Congress, suggestion boxes, and internal communication platforms—and systematically compiles and analyzes the issues raised, identifying the key factors that affect employees’ rights and satisfaction. On this basis, the company continuously refines its benefits policy framework, ensuring the effective implementation of all welfare measures at the institutional level, while providing employees with targeted, personalized, and diversified support and care.

To enrich employees’ spiritual and cultural lives and strengthen team cohesion, the company organizes occasional off-site team-building trips. In 2025, all employees will be invited to visit Wuyuan and Wangxian Valley in Jiangxi Province, as well as Yandang Mountain in Wenzhou.

Figure 11 Employee Travel

The company places great emphasis on the daily well-being of its employees, and on traditional holidays—such as Spring Festival, Dragon Boat Festival, and Mid-Autumn Festival—it distributes festive gifts to express its holiday greetings and gratitude. In 2025, during the Lantern Festival, the company organized a “Lantern‑Shaped Flower Twisting” craft activity, creating a vibrant festive atmosphere that was widely praised by employees. In addition, the company continues to host a variety of cultural and sports events, birthday celebrations, team‑building activities, and more, striving to foster a warm, harmonious, and positively motivated work environment.

Figure 12 Employee Activities

The company always remembers the hard work and selfless dedication of every employee during their tenure, and holds deep respect and gratitude, especially for those who have made exceptional contributions to the company’s growth. To foster a corporate culture that honors and respects seniors while celebrating gratitude and commitment, the company has established a care program for retired employees: For employees retiring under normal circumstances, the company hosts a simple yet dignified farewell banquet, inviting their respective departments and management to join in revisiting the highlights of their careers and expressing the company’s sincere appreciation for their long‑term loyalty and contributions. For retirees who have been recognized as model employees, held key positions, or achieved significant innovations and outstanding results at work, the company provides, in addition to the farewell banquet, a one‑time retirement bonus—a special gesture of recognition and material acknowledgment for decades of unwavering diligence. Furthermore, the company includes retired employees on its annual holiday‑greeting list, sending gifts or extending phone calls during traditional festivals such as Spring Festival and Double Ninth Festival, thereby maintaining an emotional connection between the company and its retired former staff. In this way, every employee who has devoted their youth and wisdom to the company can continue to feel the warmth and respect of the organization even after retirement.

Figure 13: Activities of Retired Employees

Protection of Supplier and Customer Rights and Interests

The company actively fosters strong, mutually beneficial relationships with its suppliers and customers, safeguards their legitimate rights and interests in accordance with the law, and responsibly protects their relevant information. It remains committed to pursuing win-win cooperation and shared growth with both suppliers and customers.

1. Protection of Supplier Rights and Interests

In the course of its day-to-day operations, the company places particular emphasis on fostering strong relationships with suppliers and partners, leveraging long-term collaboration to ensure effective communication and information exchange. Grounded in maintaining a stable base of existing suppliers, the company actively expands and optimizes its supplier network, aligning supplier‑relationship management with the company’s strategic priorities. By guiding and encouraging mutual growth, the company continuously refines its supplier development and management systems.

The company consistently enters into lawful, written agreements and contracts with suppliers, strictly adhering to the terms and conditions stipulated therein, and refrains from any unjustified delays in payment. It has established clear policies regarding supplier qualification reviews, annual performance assessments, and exit mechanisms, and conducts annual supplier performance evaluations each year. Based on these evaluations, the company defines specific guidelines for future collaboration, thereby ensuring a stable and highly efficient supplier base.

The Procurement Department conducts on-site evaluations of selected suppliers in accordance with the “Procedures for Selecting and Qualifying Qualified Suppliers.” The purchasing unit, in collaboration with Quality Control, Development, Engineering, and other relevant departments, performs these on-site assessments using the “Supplier Basic Information Form” and the “Supplier Evaluation Scoring Sheet.”

Following on-site evaluation, suppliers scoring 60 points or above will be provisionally designated as qualified vendors and may, subject to certain conditions, supply the products required by our company. Once provisionally approved as a qualified supplier, they will be required to submit samples for verification testing.

To procure materials that are high‑quality, delivered on time, and cost‑effective—thereby achieving target performance metrics such as incoming‑material pass rate, procurement timeliness, and procurement cost reduction—the company conducts price‑inquiry and quotation processes by material category. Leveraging industry‑leading ERP systems, competitive‑pricing procurement, and other advanced technologies and methodologies, a cross‑functional review panel comprising representatives from production, quality control, engineering, procurement, and finance is established. Guided by principles of fairness and impartiality, the panel evaluates each supplier based on usage patterns, incoming‑material pass rates, on‑time delivery performance, and value for money, ensuring the acquisition of cost‑effective, high‑quality products. To assess supplier delivery performance, the company conducts annual evaluations to verify suppliers’ adherence to quality standards, delivery schedules, pricing, and technical service capabilities. The Procurement Department, in collaboration with Quality Control, records inspection results for every batch of materials supplied by qualified vendors and completes a “Supplier Evaluation Report,” which serves as a key basis for assessing the annual supply‑quality of qualified suppliers. At the beginning of each year, the Procurement Department organizes a reassessment involving relevant internal departments, completing a “Supplier Evaluation Scoring Form.” Following review and the formulation of evaluation comments by the assessment team, the results are submitted to the Procurement Manager for approval and then re‑included in the following year’s “List of Qualified Suppliers.”

To foster the mutual growth and development of suppliers and the company, we regularly organize technical and market‑information exchanges with our suppliers, hold periodic supplier conferences, and implement support initiatives, working collaboratively to drive continuous improvement. At the beginning of each year, we compile a list of suppliers requiring assistance and, in accordance with our plan, conduct on‑site visits to provide guidance on internal management, thereby promoting synergistic development across the supply chain.

Figure 14: Supplier Visits and Support

2. Customer Rights Protection

The company has established a customer‑centric philosophy, demonstrating genuine care for customers in both mindset and action. It strives to meet customer needs by adopting the customer’s perspective on its products and services. Through regular and ad hoc collection and analysis of customer feedback, the company promptly assesses internal and external customer satisfaction, identifies opportunities for improvement, and enhances the satisfaction of both internal stakeholders—such as upstream and downstream processes and employees—and external customers with respect to its products and services.

Customer relationship management is an ongoing process that continuously strengthens communication with customers, deepens understanding of their needs, and iteratively refines products and services to meet those needs. At its core, it involves leveraging information technology and internet-based tools to deliver integrated customer‑centric marketing—both technologically and managerially. To attract and retain diverse customer segments and fulfill their expectations, companies adopt tailored relationship‑management strategies for each group.

In accordance with the Company’s “Regulations on Customer Complaints and Product Return/Recall Management,” the Sales Department serves as the primary unit responsible for receiving customer complaints. It proactively implements measures to address potential factors—such as product quality and after-sales service—that may affect customer satisfaction, striving to minimize or even eliminate complaints regarding the Company’s products and services. The department is also tasked with collecting relevant product‑related feedback from customers, monitoring the timeliness of responses recorded in the Customer Information Handling Register, ensuring prompt submission of completed forms, and providing appropriate follow‑up to customer complaints to achieve customer satisfaction, while tracking and verifying “customer usage outcomes.” Relevant departments are responsible for conducting root‑cause analyses of complaint data, implementing corrective and preventive actions, and continuously improving their processes. They must also analyze and enhance the timeliness of responding to customer inquiries. When necessary, the Technical Department, in coordination with Production, will investigate technical‑related quality issues, develop solutions, and, if process or technology adjustments are required, ensure that production‑technical teams draft and update Standard Operating Procedures (SOPs). The Quality Control Department is responsible for determining the nature of each complaint, reviewing the information provided by the accountable departments, and, in cases where the analysis results are disputed, engaging in further discussions with the relevant parties; when needed, assistance from the General Office may be sought. Additionally, the department tracks and verifies the implementation of corrective measures for customer complaints, and conducts monthly classification, summarization, and archiving of all complaints. The Company stipulates that customer complaints shall be resolved promptly and effectively within one to three business days, and customers are encouraged to share their service experiences with their sales representatives.

The Sales Department compiles customer complaint data on a monthly, quarterly, and annual basis. The Quality Control Department then convenes the relevant departments for “Monthly Quality Meetings” and “Annual Quality Conferences” to analyze trends in customer complaints and incorporate these findings into the customer satisfaction review process. In addition, the company establishes 8D teams to address customer complaints, applies the 8D problem-solving methodology, prepares 8D reports, and uses actual customer complaint cases as quality‑alerting examples on the production line. These incidents are also documented as lessons learned and shared on the company’s internal knowledge platform to facilitate continuous improvement.

The company gathers insights into customer needs through various channels, including its website, trade shows, in-person visits, telephone calls, and email, and leverages these interactions to identify the most effective strategies for nurturing customer relationships. Each year, the Sales Department conducts one to two comprehensive market‑sales analyses, reviews, and assessments to evaluate operational performance, the state of customer‑relationship management, and customer alignment. All approaches are systematically analyzed and evaluated, with the findings reported to the Management Committee to ensure that customer‑engagement strategies align with the organization’s strategic direction and business priorities.

Figure 15: Industry Trade Shows

The Sales Department conducts an annual customer satisfaction survey. In addition to assessing product quality, delivery, and service, the survey also includes measures of customer loyalty. Furthermore, we gather insights into customer loyalty through performance evaluations, mutual visits and exchanges, customer complaints, and changes in order patterns.

Environmental Protection and Workplace Safety

The company conducts comprehensive oversight and compliance with applicable laws and regulations across all aspects of its business operations. It systematically identifies the impacts of its activities on various social factors and the regulatory requirements for its products, while also formalizing control measures for environmental factors and the relevant legal and regulatory requirements through documented procedures, workflows, and defined management responsibilities. The company has established environmental management and occupational health and safety objectives, continuously identifies and evaluates new environmental aspects and potential hazards, and develops management plans for significant environmental aspects and major hazards. Furthermore, legal and regulatory requirements governing corporate management are codified in system‑level documentation, thereby standardizing operational processes at all levels and fostering an organizational culture characterized by integrity and compliance with the law.

Areas involved	Identification method	Responsible for Department	Adverse Impact Matters	Prevention, Control, and Improvement Measures
Product Quality and Safety	Self-assessment Third-party testing Customer Complaint	Quality Control Department	Impact on Health and Property	We rigorously control the quality of materials and products, maintaining strict oversight across every stage—from raw material procurement and manufacturing to quality assurance—and have established a witnessed testing laboratory certified by TUV, UL, and ITS to conduct comprehensive product evaluations, thereby ensuring superior product quality.
Environmental protection	Community engagement, environmental monitoring reports, and complaints from neighboring entities.	Administrative Department	Environmental pollution caused by noise, solid waste, gaseous emissions, and wastewater.	By establishing and maintaining an ISO 14001 environmental management system, we guide safe production and environmental protection, while actively promoting cleaner production. Furthermore, we implement effective measures across all stages—raw materials, manufacturing processes, and production workflows—to conserve resources and reduce pollutant emissions.
Comprehensive Resource Utilization	Waste Disposal Records	Administrative Department	Waste of public resources	Sort and inventory waste, clarify the disposal methods for each type of waste, and achieve the goals of waste reduction, resource recovery, and harmlessness.
Public health	Environmental Health and Health Indicator Monitoring	Administrative Department	Potential risks to public health	We prioritize employees’ occupational health and conduct pre-employment and periodic in-service medical examinations. Form an emergency response team. Prevention and response to infectious diseases, as well as emergency management. Conduct regular sanitary monitoring and reporting of air quality in production work environments, drinking water, and other relevant areas.

Figure 16: Production and Operational Impacts and Mitigation Measures

To meet or exceed the requirements of public liability—both statutory and regulatory—and to manage the risks associated with the organization’s products, services, and operations, the company has established the following measurement metrics and control measures.

Key Process	Important factor	Legal and regulatory requirements	Measurement method	Key points Target value	Control/Improvement Measures
Environment Protection	Wastewater	Class III Standard of the Integrated Wastewater Discharge Standard (GB 8978-1996)	Qualified third-party testing company / once per year	pH between 6 and 9, CODcr ≤ 500 mg/L, suspended solids ≤ 400 mg/L, ammonia nitrogen ≤ 35 mg/L, total phosphorus ≤ 8 mg/L, animal and vegetable oils ≤ 100 mg/L, five-day biochemical oxygen demand ≤ 300 mg/L.	Incorporated into the urban sewage network for unified management.
	Exhaust gas	Limit values of the “Emission Standard for Cooking Fume from the Catering Industry (Trial)” (GB 18483-2001)	Qualified third-party testing company / once per year	Oil fume emission concentration ≤ 2 mg/m³	Canteen exhaust: green fuel, equipped with an oil-fume purifier, and discharged at height.
	Danger Solid waste	Law of the People’s Republic of China on the Prevention and Control of Environmental Pollution by Solid Waste	Internal audits and regular inspections by the Environmental Protection Bureau	100% handled by a qualified entity.	1. Store waste at designated locations and sort it according to the “Waste Management Operating Procedures.” 2. Dispose of all waste in a unified manner through the designated solid waste disposal company for harmless treatment.
	Noise	GB 12348-2008 “Noise Limits at the Boundaries of Industrial Enterprises” — Class III Area Standard	Qualified third-party testing company / once per year	65 dB during the day 55 dB at night	1. Ongoing upgrades to high-noise equipment are being carried out in accordance with the noise control procedures for the manufacturing industry. 2. Employees are provided with professional earmuffs and earplugs.
Energy conservation Reduce consumption	Energy consumption	The Energy Conservation Law of the People’s Republic of China; energy consumption per unit of industrial value added shall be benchmarked against Ningbo City’s industry‑wide average and the enterprise’s annual energy‑saving targets.	Internal Monitoring and Statistics	0.032 tonnes of standard coal per ten thousand yuan	1. Promote new energy-saving technologies. 2. Implementation of energy-saving projects.
	Power consumption	The Energy Conservation Law of the People’s Republic of China; Relevant Requirements for Demand-Side Management of Electricity in Zhejiang Province	Internal Monitoring and Statistics	100 kWh per 10,000 yuan	All high-power machines have been equipped with variable-frequency energy-saving devices.
Safety Production	Work-related injury	Industrial Safety Standards Occupational Health and Safety Records Regulations on the Administration of Work-Related Injury Insurance The Work Safety Law Fire Protection Law	Safety supervision department inspections, internal safety audits, and performance indicator assessments	Zero major work-related accidents	1. Equipment improvement and early warning. 2. Promotion of workplace safety. 3. Regulations on Work-Related Injury Management.
Occupation Health	Dust Noise	Occupational Exposure Limits for Hazardous Agents in Industrial Settings Law on the Prevention and Control of Occupational Diseases	Internal Inspection Statistics External Monitoring Report	Zero occupational diseases reported.	1. Wear personal protective equipment 2. Conduct regular inspections of occupational disease–prone workplaces. 3. Conduct medical examinations for workers exposed to toxic and hazardous substances and establish health records.
Public health	Food safety	Food Hygiene Law Standard for Hygiene of Drinking Water	Outsourced testing	Zero food safety incidents.	1. Entrust third-party companies to carry out contracted operations, and strengthen daily supervision and management. 2. Internal and external inspections and follow-up.

Figure 17 Monitoring Indicators for Key Processes of Public Responsibility

Social welfare undertakings

While continuously advancing its own development, the company has remained committed to giving back to society. Since its inception, it has actively supported and sponsored a wide range of public‑interest initiatives, making significant contributions to both material and cultural progress. As a “Leading Enterprise in Charitable Giving,” the company embraces its social responsibilities and mission, staying true to its original aspirations and taking social responsibility as its guiding principle. It funds educational opportunities for the children of outstanding employees, provides assistance to those in need, supports charitable causes, and engages in humanitarian outreach—efforts that enable it to contribute meaningfully to the nation and society.

Support Field	Supported Projects	Reason	Plan	Planned Amount (Ten thousand yuan)
Industry Development	Industry association-related activities	Enhance industry influence	Support the chamber of commerce’s promotional and public‑interest initiatives.	60
Community Support	Village–enterprise pairing and public welfare activities, such as caring for the elderly.	Providing employment and caring for the elderly	Caring for the elderly, providing employment opportunities, and nurturing societal talent.	35
	School-Enterprise Co-construction	Caring for the next generation	Conduct talent exchanges and provide funding for teaching resources.	30
Charity	Establish a charitable foundation to provide financial assistance for education, relief to those in need, and medical support; to support initiatives for persons with disabilities; and to make donations to impoverished and disaster‑stricken areas.	Cultivate compassion and a sense of responsibility.	Expand the volunteer workforce and post-disaster donations.	60
Environmental protection	The Cixi Beshida Outdoor Rescue Team was established to carry out public‑interest environmental protection initiatives.	Mission-driven	Expand the rescue team’s ranks, enhance the scope and impact of its activities, and attract more environmental advocates to join the environmental protection movement.	30

Figure 18: Philanthropic Support Plan for the Next Three Years

III. Summary and Vision

In the face of the new circumstances, standards, and requirements brought about by China’s transition to a stage of high-quality development, as well as the imperative for enterprises to maintain steady, sustainable growth amid the ongoing pandemic, Cixi Beshida Electric Tools Co., Ltd. is continuously reshaping its mindset and recalibrating its strategic objectives, seeking a path that aligns with its long-term development goals. Looking ahead, the company will accelerate its transformation and upgrading, contributing its share to the advancement of China’s manufacturing sector and helping to build a green, prosperous home for humanity—values that constitute the company’s paramount social responsibility and mission.

The company will continue to uphold its core values of “perseverance, upward momentum, passion for work, and dedication,” innovate its manufacturing processes, and enhance its production technologies. Through sustained investments in talent, capital, and technology, it will continuously optimize its product portfolio and achieve product upgrades. Adhering to the principle that “quality is the lifeblood of the enterprise,” the company will respond to customer needs, build highly efficient management, R&D, and production teams, strengthen technological research and development and innovation, consistently improve product quality, reduce costs, and boost efficiency, and maintain rigorous process control—striving tirelessly to become a leading high-end intelligent manufacturing enterprise in China at an early date.

Email:

jayyu@nbbest.com

Phone:

0574-58968999

Address:

No. 538, Binhai Second Road, Hangzhou Bay New Area, Cixi City, Zhejiang Province