Preface

This report is the first publicly released Social Responsibility Report of Hangzhou Aboo Furniture Co.,Ltd. (hereinafter referred to as "the Company" or "the Company"). The Company guarantees that the information contained in the report does not contain any false records or misleading statements, and assumes responsibility for the authenticity and accuracy of its contents.

Report Scope:

The organizational scope of this report is Hangzhou Aboo Furniture Co.,Ltd. This report describes the company's concepts, systems, measures taken and performance achieved in economic responsibility, social responsibility, environmental responsibility, etc. from January 1 to December 31, 2024.

Report release form:

The Company publishes a social responsibility report once every one to two years. This report is published to the public in the form of a PDF electronic document on the Company's website. You are welcome to download, read and provide valuable comments.

1. Company Profile

Hangzhou Aboo Furniture Co.,Ltd. was born in Qiantan Town, Jiande City, Hangzhou, Zhejiang Province, one of the top 100 towns in China and one of the 300 best investment environments in China. It is a well-known enterprise specializing in the production of solid wood and soft furniture. The company was founded in May 2017 and was solely built by Hong Kong Will Company. It is strong. The company has a total investment of 120 million yuan. The overall plan is to build a plant of more than 60,000 square meters, covering an area of 65 acres, and has established a set of scientific and reasonable management models and strategic planning. It currently has 60 professional R&D technicians (9 undergraduates and 34 college graduates), nearly 500 front-line production employees, and obtained the honorary certification of "National High-tech Enterprise" in 2022. At the same time, it has introduced many professional designers from foreign companies. Its products are exported to the United States, Singapore, Japan, the United Kingdom and other countries, and have been listed as the city's key industrial cultivation enterprises. In 2023, the total tax revenue was 1.53 million yuan, with an average tax revenue of 140,000 yuan per mu. With many years of corporate management experience and the efforts of all employees, the output value has increased year by year. Hangzhou Aboo Furniture Co.,Ltd. relies on the business policy of "product specialization", "production scale" and "market globalization". It is also permeated with Aibo's first-class product quality and trustworthy business philosophy. It has been repeatedly rated as an advanced furniture manufacturing and quality-trusted enterprise by foreign institutions.   

Product Introduction

Since its establishment, the company has always focused on the design, research and development, manufacturing and sales of sofas and chairs. The products independently developed by the design team, which is mainly composed of European and American designers, have quickly occupied a place in the sofa and fabric market. The products serve the world and are exported to countries and regions such as the United States, Singapore, Japan, and the United Kingdom, becoming the main supplier of major well-known home furnishing brands in Europe and the United States. With many years of experience in brand OEM and the continuous improvement of its own team building, the company has gained a good reputation in the industry for its quality and service.

Company product display

The company has established a complete quality management system based on its own reality, and implemented the policy of ensuring stable quality by stable raw materials, stable processes, and stable operations. The company is equipped with necessary production equipment and testing equipment such as CNC bending machines, band saws, four-sided planers, circular saws, fiber laser cutting machines, simulated automobile transport vibration machines, compression strength testing machines, sponge depression strength testing machines, etc., which provide strong guarantees for product quality and after-sales service.

2. Economic Responsibility

While focusing on business operations, the company also takes into account the different needs of all stakeholders as much as possible, regards protecting their rights and interests as its own responsibility, and puts it into practical actions. As a well-known company in the soft sofa industry, the company has fulfilled its corporate social responsibility, examined the relationship between social responsibility and the long-term development of the company from the perspective of the harmonious system of society, environment and economy, and transformed social responsibility into the driving force and long-term benefits of corporate development.

1. Strategic Direction

The company will be guided by technological innovation, continue to increase investment in science and technology, and realize enterprise transformation and upgrading. Continue to carry out innovative technical reforms, ensure product advancement, increase production capacity, control costs, focus on improving product quality, adjust product structure in a timely manner, propose broader solutions and applications, and increase product added value and application scenarios. Invest no less than 3% of operating income in research and development each year to ensure that the technical content of products is in the leading position in the industry and surpass Xingchuang. Invade all fields in the field of sofas and chairs and become industry experts. Make AiBo an internationally renowned brand.

2. Financial Performance

The company currently has fixed assets of 137.057 million yuan, and will achieve sales revenue of 157.3471 million yuan and profit of 9.7472 million yuan in 2023. It has now planned to implement a transformation and upgrading strategy to create a national high-end brand.

3. Social Responsibility

1. Honesty and law-abidingness

The company strictly abides by various laws and regulations, operates in good faith, pays taxes in accordance with the law, continuously improves product quality, and pays attention to protecting the interests of relevant parties. The laws and regulations that should be complied with include general laws, quality laws, industry and standard certification laws, etc., see the table below.

Main legal and regulatory environment

The company conducts compliance evaluation every year. The company has established management systems such as GB/T 19001, GB/T 24001, and GB/T 45001, and has fully identified the legal and regulatory requirements for product quality, service quality, production safety, environmental control, occupational health requirements, and company management. It has also obtained the effectiveness of laws and regulations through industry associations, the Internet, books, miscellaneous materials, newspapers, news, customers, and other channels. It has collected more than 100 laws and regulations related to the industry, including production safety laws and regulations, labor protection laws and regulations, environmental protection, product quality, energy management, intellectual property management, etc., and the identification and acquisition are sufficient and effective. The company strictly abides by national and local laws, regulations and standards in the course of operation to create an honest and law-abiding business atmosphere.

2. Quality and Safety

In accordance with the requirements of laws and regulations such as the Product Quality Law of the People's Republic of China, the Environmental Protection Law, the Work Safety Law, and the Fire Protection Law, the company has established and improved the quality management system and the enterprise standard management system, effectively operated the GB/T 19001 quality management system, formulated work instructions and inspection specifications, and continuously improved the quality management level. The company uses LEC, KYT and other methods to identify, evaluate and clarify control measures for the entire process of product manufacturing, forming a quality and safety assurance system for the entire process from research and development, procurement, production, testing, packaging, transportation and delivery to customer service. Implement according to the requirements of GB/T 19001, strengthen daily maintenance work, and regularly organize internal audits and management reviews to promptly discover deficiencies in management and make improvements. At present, in the system management, the responsibilities of each department are clear, the process is perfect, and the quality goals have been improved.

III. Employee Rights

The company adheres to the "people-oriented" management concept of human resources, regards employees as the company's most valuable assets, provides employees with a platform to realize their self-worth, actively promotes the scientific, standardized and institutionalized education and training of employees, conducts training and learning for new employees, on-the-job employees, and skill titles every year, and creates a good promotion environment for employees. As of September 2024, the company has 409 employees, of which technical and management personnel account for more than 20%.

Competition among enterprises is competition among talents. AiBo always adheres to the principle of "people-oriented", fully safeguards the legitimate rights and interests of employees, always strives to create a harmonious and pleasant working atmosphere for employees, provides employees with competitive salary and benefits, and improves them in conjunction with the improvement of the company's overall performance; provides employees with broad career development space, thoughtful career protection and professional and efficient training, so that employees and the company become a community of interests, careers and destiny. The company distributes gifts and red envelopes to employees on New Year's Day, Spring Festival, Lantern Festival, birthdays and other festivals.

AiBo identifies employee needs through employee satisfaction, rationalization suggestions, complaint suggestion boxes, etc., and provides systematic management policies, logistical services and benefits based on key factors that affect employee rights, satisfaction and enthusiasm, to meet the personalized needs of employees at different levels and types. A series of unique support and incentive measures have created a harmonious working atmosphere and provided broad development space for AiBo employees at all levels, enabling them to be proactive, maintain a strong work enthusiasm, and give full play to their intelligence and talents in AiBo.

4. Public Welfare Support

AiBo's senior leaders believe that the company's development and wealth accumulation come from society, and every progress and achievement made by the company is due to the care and concern of leaders at all levels, and is inseparable from the love and support of all sectors of society. Therefore, since its establishment, AiBo has always adhered to the belief of "being a benevolent enterprise, a conscientious enterprise, and an enterprise that consumers trust and understands gratitude to society", actively supporting national and local public welfare undertakings, and encouraging and supporting employees to carry out youth volunteer activities and participate in community services.

5. Social Honors

After years of continuous development and accumulation, the company has been recognized as a national high-tech enterprise and Jiaxing High-tech Research and Development Center, and has successively won the honorary titles of "Jiande International Trade Excellent Quality Enterprise", "Key Industrial Enterprise", "National High-tech Enterprise", "Municipal Key Manufacturing Enterprise", etc. It has also passed the intellectual property management system certification and ISO9001 quality management system certification.

IV. Safety and Environmental Responsibility

1. Environmental Protection

Since its establishment, the company has always attached great importance to environmental protection, insisted on protecting the environment and developing the enterprise simultaneously, and achieved "win-win development and environmental protection". In product research and development, the company uses the product life cycle theory to design product performance, materials used, recycling and other environmental protection requirements. The wastewater, waste gas and solid waste generated in the company's production can be properly handled, and a third-party testing company is regularly commissioned to conduct environmental monitoring every year to ensure that the surrounding environment is not polluted.

The company has established an environmental management system in accordance with GB/T 24001-2016 and GB/T45001-2020 standards, and implements regular and irregular inspections on the operating performance of the company's environmental management system in accordance with the "Operation Control Procedure" to further improve the company's "green level".

2. Save resources

The company insists on technological innovation, energy conservation and emission reduction, and strives to minimize the impact of the company's development on the environment. The company has deepened the awareness of energy conservation and environmental protection into the company's daily operations and production through environmental protection publicity, technological innovation, formulation of relevant procedures and strict compliance with relevant laws and regulations. In addition, the company also publicizes the concepts of energy conservation and environmental protection through publicity columns, banners, etc., in order to enhance employees' active awareness of energy conservation and environmental protection, and encourage employees to develop the habit of consciously saving electricity, water, paper and oil in work and life. The company saves a lot of paper and ink cartridges and reduces resource occupation through unified management of printing and copying, comprehensive reuse of both sides of paper, and replacement of old ink cartridges and toner cartridges.

3. Health and Safety Management

The company strictly implements various national safety laws, regulations and standards during the production process. The company has an occupational health and safety affairs representative who is mainly responsible for establishing and improving the production safety system, formulating safe operating procedures, improving the safety responsibility mechanism, implementing safety protection measures, and ensuring the safety of operators and workers and corporate property. In daily production, the company strictly implements the production safety system, and no major safety accidents occurred during the reporting period.

Summary and Outlook

In the next few years, the company will continue to focus on the capital appreciation of shareholders and the improvement of corporate value to achieve sustainable, stable and healthy development of the company. The company should focus on business improvement and management upgrade, consolidate and improve, develop steadily, expand the market, grasp the site, attach importance to scientific research, strengthen internal control, and strive to build a highly pragmatic, responsible, honest and respected enterprise with leading technology, advanced equipment, scientific management, diversified financing and strong brand influence.

The company will strengthen production safety management, eliminate production safety accidents, increase investment in production safety, and improve the occupational health of employees.

The company will actively promote green and environmentally friendly development, create environmentally friendly technological innovation, accelerate the application of new technologies, new skills and new equipment, and strive to build a resource-saving and environmentally friendly enterprise.

The company will continue to vigorously build a talent team, change the talent structure, and improve the quality of employees; strengthen democratic management of the enterprise and take the construction of corporate culture to a higher level.

The company will continue to conscientiously fulfill its social responsibilities as a corporate citizen, give back to society and shareholders, win market recognition and customer trust, and promote harmonious and coordinated development between the company and society.

Hangzhou Aboo Furniture Co.,Ltd.

September 15, 2024