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欧派家居:欧派家居2021年社会责任报告(英文版) 下载公告
公告日期:2022-07-01

2021

OPPEIN HomeSocial Responsibility Report

Social Responsibility Report

Customer service hotline:400-884-1868Sales hotline:400-884-1869Official website: www.oppein.comE-mail for investor relations: oppeinir@oppein.com

This report is made of environmental paper

2021

CUSTOMIZATION

FORBETTER LIFE

Oppein Home Group Inc.

Company profile 07Corporate brand 08Business layout 09Corporate culture 10

DESCRIPTION 03DEAR SIR 05

ABOUT US 07

RESPONSIBILITY FOCUS 11

RESPONSIBILITYMANAGEMENT

TABLE OF CONTENTS

OPERATIONSteady forfar-reaching

PARTNERSHIPDevelopment based onwin-win cooperation

Employee-oriented care

EMPLOYEE

Innovation ofservices andproductsINNOVATION

Protect thenatural ecology

NATURE

Key performance 63Index of indicators 64

APPENDIX

Respond to the United Nations Sustainable Development Goals (SDGs) 65Feedback 66

With great honor obtained in the past27 years, we will forge aheadFollow right management path andenhance cohesion with good cultureGather the power of love to createhappy families

Establish responsible organizations 21Identify responsibility issues 21Enhance responsibility capacity 21Implement responsibility communication 22

Deepen the partybuildingConsolidate corporategovernanceStrengthen operationand managementAdhere to businessethics

Promote strategiccooperationBuild a chain ofresponsibilityPromote progress inthe industry

Protect the rights andinterests of employeesSupport staff developmentBalance work and lifeValue health managementEnsure production safetyFulfill commitment to carefor employees

Focus on productinnovationProvide high-qualityproductsProvide excellent andsincere servicesOptimize productionprocess

StrengthenenvironmentalmanagementProduce greenproductsAdvocate greenoperationShare green life

PUBLIC

Public welfareactivities benefitpeople's livelihood

Pay attention tocommunity harmonyEnthusiastic involunteer serviceSupport localdevelopmentImplement epidemicprevention andcontrol

DESCRIPTION

The 2021 Social Responsibility Report is provided by Oppein Home Group Inc. (hereinafterreferred to as "OPPEIN Home" , "OPPEIN" , "we" , "our"). It is our first social responsibilityreport since we went public.Adhering to the principles of objectivity, standardization, transparency and comprehensive-ness, we, in the Report and disclose in detail our practices and performance in 2021 in thefields of economy, society, environment, etc.

◎ ScopeReporting organization: Mainly involving Oppein Home Group Inc., including its subsidiaries.Reporting period: January 1, 2021 to December 31, 2021. To enhance comparability andintegrity of the Report, some information of prior years is used as appropriate.Release cycle: Annually.

◎ Release formChinese version of the Report is released, both in paper and e-format (PDF). For consulta-tion and download, please visit our official website www.oppein.com, or the website ofShanghai Stock Exchange www.sse.com.cn.

◎ Basis of preparation

The Report is prepared in accordance with the GRI Sustainability Reporting Standards (GRI-Standards), and Guidelines on Corporate Social Responsibility Reporting for ChineseEnterprises by Chinese Academy of Social Sciences (CASS-CSR 4.0), with informationdisclosure guided by the Environmental, Social and Governance Reporting Guide (ESGGuide) issued by Hong Kong Stock Exchange.

◎ ContactAddress: 366 Guanghua 3rd Road, Baiyun District, GuangzhouOfficial website: www.oppein.comHotline for investor relations: 020-36733399E-mail for investor relations: oppeinir@oppein.com

◎ Data descriptionThe financial data in the Report is from our annual report while other data is obtained throughmanual collation internally. In the Report, CNY should be used as the currency unit for mea-surement, unless otherwise specified. We guarantee that this Report is free from any falserecords, misleading statements or material omissions.

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

DEAR SIR

explore new modes of development. We endeavor to improve supplier management, support the growthof partners and boost the sustainable development of the home furnishing industry. We support andparticipate in the preparation of industry-related standards, co-organize or host industry associationmeetings and forums, and guide the industry development as a "leader".Adhere to the people-oriented concept and care for employees with inclusivecultureWe strive to create a corporate atmosphere of equality, diversity and mutual assistance, protect thelegitimate rights and interests of employees, guard the physical and mental health of employees, andcarry out a variety of corporate cultural activities. We make unremitting efforts to perfect the comprehen-sive, multi-level talent training system in order to grow with our talents together.Persist in green development to elaborately create environmental and healthyproductsWe unswervingly follow the path of sustainable development and consciously practice the concept ofecological civilization. We adhere to green management and make unremitting efforts to enhanceenvironmental governance. We are concerned about consumers' healthy home environment and creategreen process products. We actively tackle climate change and respond to national goals of carbon peakand carbon neutrality.The growth of enterprises is closely linked to the country and the development of society. The Report isthe first social responsibility report since our foundation 27 years ago. In the Report, we systematicallyand comprehensively reviewed the practice and performance of fulfilling responsibilities in the homefurnishing industry. We now officially step into a new stage of performing responsibilities in the fields ofenvironment, society and governance. In the future, we will always bear in mind our original intention andmission, actively practice the great spirit of the new era of socialism with Chinese characteristics,unswervingly follow the righteousness culture, and lead business transformation with innovation. We willalso make sustainable development constantly drive our future transformation and development, andstrive to build us into a world-class outstanding home furnishing enterprise!

In the past 27 years since establishment, OPPEIN Home, a caring and responsible listed company, hasactively responded to the call of the Party and the state, focused on the responsibilities, adjusted theapproach of development to keep pace with the times, and kept improving home furnishing products.OPPEIN Home is becoming more and more socially responsible.Persist in innovation and development to offer excellent products and services

We are steadfastly guided by national policies, industry trends and market demand, and make continu-ous effort to innovate our products and services. We keep improving the product quality, establishing andperfecting the product quality management system, and strengthening the quality management through-out the process of production and operation. We also attach importance to the quality of customerservice, continuously enrich the service form, and endeavor to enhance our customers' sense offulfillment.Persist in the provision of public welfare services and implementation of corporateactivities of compassionTo inherit and develop the culture of "focus on families", we established a "Project of Focus on Families",and set the day of May 15 as "Day of Focus on Families" and "Public Welfare Foundation of Focus onFamilies". In the past 8 consecutive years, we have paid attention to families in need and suffering fromsub-health, and explored new modes of "Public Welfare of Focus on Families". We, based on our owncorporate advantages and industry features, have actively made donations to help students in needreceive good education, promoted the integration of social enterprises, actively prevented andcontrolled the COVID-19 pandemic, and contributed to the healthy and harmonious development of thecommunity.Persist in win-win cooperation to jointly facilitate the industry developmentWe deepen the cooperation and exchange with government departments, research institutes anddomestic and foreign enterprises, sign a number of strategic cooperation agreements and vigorously

Oppein Home Group Inc.

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

ABOUT USCompany profile

603833.SHStock code

1994

Founded in

Corporate brand

In 2021OPPEIN HomenewLOGO

In 2021, OPPEIN Home released a new LOGO to highlight its efforts and focus on space.The upgrade of brand LOGO also implies the significance of the service transformationtowards integrated home furnishing solutions from simple products by provider OPPEIN.The new LOGO, breaking the restraint brought by the original color block, adopts a designof open structure with three sides, vividly showing the brand upgrade concept from "cabi-net" to "space".

Brand innovation

At present, OPPEIN Home has three major sub-brands covering consumers at differentconsumption levels: Target consumers of OPPEIN, OPPOLIA and BAUNIS are those withmiddle and high-end income, young and fashionable consumers, and high-end crowd,respectively; OPPEIN will offer consumers the service of door and window customization;and the brands for whole house design catering to the price needs of different homedecoration channels, namely, OPPEIN integrated whole house service and STAR-HOMES.

Brand matrix

In 2018, OPPEINHome wasincluded into theMSCI ChinaIndex, highlight-ing its value ofglobal invest-ment.

Founded in 1994, OPPEIN Home was listed with stock code 603833.SH. The Company isthe first listed company in China's home furnishing customization industry with a marketvalue of over 100 billion CNY. With the vision of "building OPPEIN into a world-class

outstanding home furnishing enterprise", OPPEIN has extended its business fieldsfrom the integrated cabinet to closet, whole house customization, wooden door, bathroom,soft decoration, kitchen appliance, metal door and window, armored door, supportingservice of furniture, integrated whole house service, etc., becoming an integrated serviceprovider of whole house design with joint development of multiple business sectors.Since the foundation 27 years ago, OPPEIN Home, with large scale and great strength,has been pursuing core competence, and serving domestic and foreign consumers withcompetitive products of "European quality at Chinese price". Thanks to these efforts,OPPEIN Home has been widely recognized by all walks of life.

From 2016 to 2021,the Companyranked among theTop 500 MostValuable ChineseBrands for sixconsecutive yearsand ranked 138th in2021 with a brandvalue of 49.351billion CNY.

Capital marketBrand valueRanked among the 500 Most ValuablePrivate Enterprises in China's Manu-facturing Industry for five consecutiveyears from 2017 to 2021;Ranked among the 500 Most ValuableEnterprises In China's ManufacturingIndustry for three consecutive yearsfrom 2019 to 2021;Ranked among the Hurun China 500Most Valuable Private Enterprises forthree consecutive years from 2019 to2021.

Corporate strength

高端品牌

年轻时尚品牌

欧派品牌欧铂尼品牌中高端品牌

整装渠道品牌

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

Business layoutCorporate cultureOPPEIN Home has the world's largest production base of custom home furnishings, and itsproducts are well sold in 118 countries and regions on 6 continents.

Products are well sold in 118 countriesand regions on 6 continents

Integrate the elements of Chinese traditional cultureconcept and European and American fashion design,and make use of the production advantages of benigninteraction development between standardization andscale to realize the best quality-to-price ratio, provideconsumers with high-end customized home products,and create a better and more comfortable high-qualitydaily life for the public.

Core valuesFairness, brightness,cooperation, freedom

Corporate philosophyCorporate vision

Build OPPEIN into aworld-class outstand-ing home furnishingenterprise

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIP

Development based onwin-win cooperation2021 Social Responsibility Report

In the past 27 years, we started a revolution focusing on kitchens in China and took the lead in the industry's second revo-lution by releasing the strategy of integrated whole house service. OPPEIN Home has always been at the forefront of theindustry and is the pioneer and trendsetter of China's home furnishing industry.

Focus on home furnishings for further development

In 1994Guangzhou Optima Kitchen Cabinet Ltd.(Guangzhou Optima) was established.Guangzhou Optima first introduced theEuropean concept of "integrated kitchens"into China. OPPEIN's first set of integratedkitchens was soon manufactured, setting aprecedent for the industrial production ofmodern cabinets in China.

In 1995The Company was the first one thatintroduced "one-stop kitchen anddecoration" service.

In 2006

The Company became the first onecertified with "attestation of Chineseenvironment mark" in the domesticcabinet industry;Oupai Integration Furniture Co., Ltd.was established to explore the marketof integrated closets.In 2007The Company was the first one titled as"China Famous Brand" in the industry,and awarded the honorary title of"China Cabinet Leading Enterprise" forseveral times.

In 2008Chairman Yao Liangsong was elected asthe chairman of the "Kitchen FurnitureProfessional Committee of China NationalFurniture Association" and the first chairmanof the "Kitchen and Bathroom EngineeringCommittee of China Building DecorationAssociation" ;The Company held with CCTV an eventcalled "Joyful Journey in China-CharmingOPPEIN", creating a model for entertain-ment marketing.

In 2011

The Company was awarded the "VicePresident Unit of the Home DecorationChamber of Commerce of All-ChinaFederation of Industry and Commerce" .

In 2015

Sun Li was signed as the spokesperson of the Group, and the youngfashion brand "OPPOLIA" was launched in the same year, forming apyramid layout of double brands "OPPEIN+ OPPOLIA" .

In 2020

The Company launched high-endbrands to form a multi-level brand matrixcovering different consumer groups;It officially put forward the target of"building OPPEIN into a world-classoutstanding home furnishing enterprise" .In 2021The Company became the first one in thehome furnishing industry whose marketvalue was over 100 billion CNY andwhose sales volume exceeded 20 billionCNY;The Central China Intelligent Manufac-turing Base Project settled in Wuhan,marking the completion of its base layoutacross the county.

In 2017

The Company was listed on themain board of Shanghai StockExchange, with the stock code of603833.

In 2018

The sales volume reached over 10billion CNY in the first year uponlisting, setting an industrymilestone;The strategy "Three Motors andOne Car" was developed to sprintfor a new sales peak of 100 billionCNY.

In 2013

"Oppein Home Group Inc." was officiallyestablished.

In 2014

The Company launched the strategicdevelopment plan for the next three years-"Dream Building Plan" , and put forwardthe sales goal of "10 billion CNY withOPPEIN" ;The "Project of Focus on Families" wasactivated to create a new model for entire-ly transparent public welfare donation;The Company joined in the project of"Free Lunch" to help children in need andtheir families.

In 2009

Guangdong Oppein Group Co., Ltd. wasestablished;The Company was awarded the "ChinaFamous Trademark" by the TrademarkOffice of the State Administration forIndustry and Commerce and the Trade-mark Review and Adjudication Board.

In 2010

Parent company of the Group officiallychanged its name to "Guangdong OppeinHome Furnishing Group Co., Ltd." ;The Company was awarded the "2010Top 10 Demonstration Brand for Qualityand Integrity in China's Cabinet Industry" ;The Company was awarded the "Execu-tive President Unit of the Closet Profes-sional Committee of All-China Federationof Industry and Commerce" .

In 1999

The Company promoted the constructionof a national marketing network and markthe beginning of chain operation in thecabinet industry.

In 2001

The Company took the lead in introducingthe concept of environmentally friendlykitchen cabinets, launching a series ofgreen products called "Style of 21stCentury" .

In 2003

The Company marched into thesanitary ware industry and set up"Guangzhou Oppein Sanitary WareCo., Ltd" .The Company was titled as "amember of the Housing FacilitiesCommittee of China Housing andReal Estate Academy" and "a drafterof Kitchen for Housing published bythe Ministry of Construction" .

In 2005

The Company established the slogan"Open for Love, OPPEIN for Home",and hired Jiang Wenli as the corpo-rate image spokesperson to fullyimplemented its brand strategy;It started to go into the market ofintegrated closets.

RESPONSIBILITY FOCUS

With great honor obtained in the past 27 years,we will forge ahead

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

OPPEIN Home, since its estab-lishment, has won a series ofhonorary awards and titles for itsquality products and services,which constantly drive the Com-pany for advancement and devel-opment.

New journey with great honor

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

Over the past ten years, OPPEIN Home, striving for a clean corporate environment, has attached importance to integritymanagement and conducted series of activities, including case investigation, publicity, institution building, etc.

The righteousness culture, forming an integral part of the corporate culture of OPPEIN Home, is not formed anddeveloped in one step but with the practical exploration of the Company's management for many years. From2012 to 2021, OPPEIN Home has always upheld the banner of anti-corruption and integrity promotion, andcontinuously promoted integrity management and enhances the awareness and recognition of the righteous-ness culture among the Company's employees and all OPPEIN partners.

RESPONSIBILITY FOCUSFollow right management pathand enhance cohesion with good culture

Constantly say no to corruption with ten years of practice

OPPEIN Home has conducted intensive investigation and punishment on cases involving corruption and fraud in thesupply system, making leaders set a high value on the growth of employees and plan for the future of the Company. Toenhance the effective administration of management cadres and personnel in key positions, the Company organized aspecial lecture on "Anti-corruption" with the theme- "Create an environment free of corruption for sustainable develop-ment of OPPEIN" .

In 2012

Intensive publicity and investigation activities of anti-corruption were continuously carried out, for all cadres, personnelin key positions, marketing staff, with the theme- "Strive to build OPPEIN into an outstanding home furnishing group withthe implementation of 'anti-corruption' activities" . Meanwhile, the Handbook for Combating Corruption and PromotingIntegrity was formulated, laying the institutional foundation for anti-corruption work.

From 2013

to 2014

The audit and supervision departments of the Company carried out a strict investigation and crackdown on corruption,and enhanced the supervision, investigation and disclosure of the corruption behavior by terminal marketing personneland terminal agents and in the marketing supply system.A total of 13 cases of corruption, fraud, etc. have been handled this year, resulting in a dismissal of 11 regional managersand punishment of dozens of marketing personnel; the Company timely adjusted its terminal policies for agents toestablish more direct information feedback channels and protection measures.

In 2015

Early this year, Chairman of the Company Yao Liangsong proposed the "righteousness culture" for the first time, and itthen became the core concept of anti-corruption and anti-fraud construction of OPPEIN Group. Moreover, the auditand supervision departments of the Company kept conducting information collection and inspection for the terminalmarket, focusing on the investigation and review on the performance of personnel in the marketing center and involvedin the terminal operation. A number of regional managers were investigated and punished, causing relevant units of themarketing system to reflect on the construction of personnel team, update the system of "ten prohibitions", and perfectthe norms for the management of marketing personnel.Since 2016, the topic "Incorruptible OPPEIN" has been separated from the course of "Corporate Culture" , and has beenan independent compulsory course for new employees participating in induction training. The promotion of such coursehas been conducted by the audit and supervision departments. The course "Incorruptible OPPEIN" for new leaders(including managers and others at higher level) was provided in person by leaders of the audit and supervision depart-ments.

In 2016

In addition to continuous strict investigation on the marketing system, the Company began to build a comprehensiveaudit and supervision system in the manufacturing base to investigate and handle the fraud and corruption in basicservices in the base.Besides, the Company revised the "Reward and punishment system of the Group" and issued the "Integrity system ofthe Group" to facilitate the construction of listed companies. The integrity codes of "Dedication, compliance, self-disci-pline and rational management of others, proper exercise of powers, self-cultivation, prudence and cautiousness, andintegrity" were included into systems and the employee manual.In 2017

A special supply chain supervision team was established to investigate and handle the corruption and fraud in the supplysystem of main materials, internal affairs and supporting goods, eliminating the problems not easily detected such as thebidding collusion, peripheral communities of common interests, internal and external collusion, etc.All suppliers and partners were organized to sign the Contact Letter of "Integrity Cooperation" with Suppliers. Suchactivity helps remind providers of relevant obligations and restrain their behavior, and facilitates the development of anenvironment of "Integrity Cooperation" together with the supply partners. A total of 1,029 partners signed the ContactLetter with the Company this year.

In 2018

For the propaganda month of the "righteousness culture" , the Company carried out an activity with the theme- "Followright path and be a model of integrity" , and since then such activity has been regularly organized. The cultural propagan-da was then conducted actively rather than passively. The audit and supervision departments were responsible for thetraining, development and management of department personnel (especially those in key departments) liable for thepropaganda of the righteousness culture. And such personnel continuously conducted and regulated the learning andeducation of department staff and made reports, and also organized departments to participate in relevant culturalactivities of the Group.The Company also officially joined the "China Corporate Anti-Fraud Alliance" .

In 2019

The Notice on the Setting of "Million Award" for "OPPEIN Pioneer" was issued and the protection policies for suppliers,partners and distributors were reiterated. The propaganda month in 2020 for the righteousness culture was alsostarted.The Company has successively cracked the cases of marketing terminal personnel committing the acceptance ofbribes and those of purchasers in the supply system committing the acceptance of kickbacks. And both cases weresubmitted to judicial authorities.The management of cadres was enhanced with efforts to establish the Inspection Regulations for Cadres to LeaveOffice to clarify the significance to be cautious in appointment and the principle of no exemption from responsibility whenleaving office; efforts were made to enhance the deterrent effect and the educational and warning effect of investigationand punishment, and to formulate the System for the Announcement of Violations against Regulations to disclose allviolators and relevant behavior.

In 2020

Propaganda work of the "righteousness culture" was conducted every month by each grass-roots department.Anti-corruption and integrity promotion trainings in various forms such as department lectures, quizzes, speechcontests and summary conferences were carried out so as to well implement anti-corruption education at thegrass-roots level, with a 100% coverage rate of grass-roots employees.In 2021

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

Quizzes on the righteousness culture at the Tianjin base

Conduct speech contests on the righteous culture

Conduct lectures on the righteous culture at Wuxi baseTraining in the supporting OEM warehouse department of kitchen,appliance and sanitary at the Qingyuan base

Over the past ten years, the righteousness culture has become animportant part of the corporate culture construction of OPPEIN Home.Such culture has become a compulsory work content that all employ-ees of OPPEIN Home should learn and gain a basic understanding,and has served as a fundamental basis for the cooperation betweenOPPEIN Home and its partners. In 2021, the Company continued todeepen the construction of the righteousness culture. To this end, aseries of activities, including trainings, speeches, lectures, quizzes, ofthe righteousness culture, were conducted in the functional depart-ments in the Company's headquarters, and at the four bases, forminga sight of the cultural construction of OPPEIN Home.

Efforts pays off and a common practice is established

In 2021

According to the definition by the Company for the first time, the "righteousness culture" forms an integralpart of the Group's corporate culture- "fairness, brightness, cooperation and freedom" . In such culture, theCompany, guided by the "Integrity Management System of the Group" and with the establishment of asound system and supervision mechanism, investigates and punishes violations, publicizes and imple-ments the concept of righteous operation, builds a work order of integrity, anti-corruption and righteous-ness, and supports the organizational cultural activities of production and management of the Group.OPPEIN Home well understands the significance of incorruptible culture construction to boost the anti-corruption andintegrity promotion work of the Company. Over the past ten years, OPPEIN Home has made unremitting efforts to developthe righteousness culture, and enrich and deepen the knowledge of such culture, to help superficially and fundamentallyfacilitate the Company's integrity management, and at the same time, continuously enhance the Company's culturaldeposits.

Proceed step by step and in the ascendant

OPPEIN personnel should be alert to the decline caused by "irrationality, aging and internal corruption" , especially the last cause.

Decline caused by internal corruption

In such case, corruption within an enterprisecauses damages to the foundation of theenterprise as the infectious disease to humanbody. Then, the enterprise will be as vulnerableas a tree riddled with woodworm, and any lightattack will result in a collapse. Even if there is nounforeseen situations, a resulting collapse isinevitable. The resulting decline in such case ismainly attributable to the failure in management.

Decline caused by aging

In such case, aging or conserva-tism or bureaucratization resultsin low efficiency in the manage-ment and poor innovation ability.The Company gradually loses itscompetitiveness and marketshare. The resulting decline insuch case is mainly attributableto the failure in operation.

Decline caused by irrationality

In such case, the supremo of the Companyseems to lose the "mind". The constantachievements obtained in the past makethe supremo blindly think that there are alleasy paths to future success. Therefore,the supremo makes irrational decisions,neglects objective conditions, and makesblind investment. The resulting decline insuch case is mainly attributable to thefailure in investment.

Phase From 2012 to 2013I

Adhere to the core principle of OPPEIN - to follow laws and rules.

RectificationAnti-corruption work withgreat achievements by theaudit and inspection depart-ments played an importancerole in rectifying our oncedeviation from the righteous-ness culture.

Laws

If we follow the laws,we will get rewards.The more strictly weimplement laws andrules, the morerewards we will obtain,and vice versa.

Rules

"No efforts to eliminate latent rules will result in poor implementation ofcorrect rules" : Only a "right path" will lead to innumerable great achieve-ments! This is because only following a "right path" will eliminate adverseeffect brought by the adherence to a "wrong path" ; only adopting the rulesof "right path" will actually participate in the competition and gain access toreal talents; only steadfastly persist in the rules of "right path" will avoid anydamages to the foundation of OPPEIN and any self-inflicted behavior.

Phase From 2014 to 2017II

The parasite is the exploiter to us ; the "hitchhiker" causes damages to the fairness.

Innovation

"All-round Innovation" . We should make use of the coreadvantage of OPPEIN mechanism to develop a moreeffective and powerful innovation mechanism, and weshould value innovation and offer a large sum of bonusaccordingly. Faced with growing challenges and fiercemarket competition, we must stick to innovation in orderto survive in the market, break through a tight encircle-ment, and embrace a bright future!

Specialization & simplification & high salary

To realize the "specialization& simplification & high salary" ,efforts should be made toeliminate any unnecessaryelements and all functionaldepartments and staff shallplay their roles.

Parasite & exploiter

Organizations free from corruptionmay not always succeed, but thosewith corruption will definitely fail!Adhere to the core values of "fairnessand brightness" .No pains, no gains. And all achieve-ments can only be made with unremit-ting efforts!

Phase From 2018 to 2020

III

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

OPPEIN with "Free Lunch"launched a large-scale publicservice activity to offer freelunch to school children in poormountainous areas in China ;and produced a noncommer-cial microfilm Till Death Do UsPart based on real-life storiesof families in need, leading to anational discussion on thetopic of family love.

Practice of public servicesIn 2014In 2015In 2016

In 2018

OPPEIN started the 515"Super Love+" confer-ence, released a seriesof micro-videos with thetheme of "One hour off forbetter companionship" ,and adopted approacheslike celebrity appeal forlove transmission, to callon everyone to put downcell phones and accom-pany their families.

In 2017OPPEIN, with PuCunxin and HuangHan, called oneveryone to bravelyexpress love andincrease the familywarmth index bygiving a "love hug"to family members.

OPPEIN released the video My Dad Is A Robot on its Day ofFamilies on May 15. The video, sticking to the social focus of"anxiety" , aroused collective resonance, and put forwardrelevant proposi-tion of "Successlies where loveand family stay" ,and proposed to"Hold hands andlove each otherforever" .

In 2019OPPEIN released the creativevideo Dad Sharing on its Dayof Families on May 15. TheCompany caused concernamong audiences for the"absence" of "dad" in modernfamilies with an APP "DadSharing" and the video, callingon the audiences to return tothe family.

In 2020

OPPEIN released the creative video"Alibis of Love" on its Day of Familieson May 15, calling on the public toreturn to the family.

In 2021

OPPEIN released the microfilm Marriage or Divorce todiscuss the hot topic of marriage closely related to everyfamily, and call for attention to family health.

OPPEIN launched the publicwelfare call of "One hour offfor love" and selected May 15every year as its Day ofFamilies. The Company hiredSun Li to be the ambassador,and released the publicwelfare microfilm "One houroff "starring Zhou Dongyu tofurther put forward the propo-sition of focus on families.

Based on the insight into the connotation of "Love & Home" and the refinement of brand culture, OPPEIN Homeofficially launched a diversified integration plan of public services - Plan of Focus on Families in 2014, withemphasis placed on families in need and suffering from sub-health. Since then, the Company has taken theInternational Day of Families on May 15 as the initiative point every year to launch an initiative of focusing onfamilies around the phenomenon of family subhealth. In 2020, upon approval of Guangzhou Civil Affairs Bureau,OPPEIN Public Services Foundation was officially registered. Focus was put on families in trouble and plaguedby subhealth so as to fulfill the corporate social responsibility, and the International Day of Families on May 15was also selected as OPPEIN's Day of Families.

RESPONSIBILITY FOCUSGather the power of love to create happy families

Fill "home" with "love" for abetter life.

Mission ofpublic services

Warm home with love.

Vision ofpublic services

Focus ofpublic services

Gather the power of love, pay attentionto the families in need and sufferingfrom subhealth, offer assistance tovulnerable groups, constantly supportand enhance education programs,

and facilitate the harmonious

development of society.

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

Significance to OPPEIN HomeSocial responsibility issues matrix of OPPEIN Home

Stakeholder attention

Great

Great

Implement responsibility communication

OPPEIN Home values the communication with internal and external stakeholders, and constantly enriches the relevantcommunication methods. Through mechanisms and methods such as shareholders' meeting, the Company's officialwebsite, satisfaction survey, public welfare activities and media communication, the Company has built a diversified inter-nal and external communication platform to disseminate its corporate philosophy and social responsibility work dynamicsso that stakeholders' understanding and support of the company is enhanced.

Communication with stakeholders

Shareholders and investors, governments and regulators, customers, employees, suppliers, communities and theenvironment are all valuable stakeholders of OPPEIN Home. The Company attaches great importance to the expectationsand demands of its stakeholders. The Company maintains regular communication with its stakeholders through theestablishment of various channels, and responds to their issues of concern.

Response to stakeholders

RESPONSIBILITY MANAGEMENT

Enhance responsibility capacityOPPEIN Home pays attention to enhancing the awareness and ability of fulfilling the Company's social responsibility, andactively participates in the social responsibility training activities organized by the supervision department. Meanwhile,emphasis is placed on the combination of social responsibility trainings, and various types of business training and brandmarketing promotion training, in our daily work, in order to promote the deep integration of social responsibility manage-ment and operation service, and facilitate the application of the social responsibility concept and objectives into our dailyoperation service.

Establish responsible organizations

To effectively promote the fulfillment of the Company's social responsibility, OPPEIN Home has gradually established asound organizational system for relevant work. Chairman serves as the leader in the fulfillment of the Company's socialresponsibility, and is responsible for the review, decision-making and guidance of the strategy and action plans in relationto the Company's social responsibility. Human Resources Department, Audit Department, Supervision Department, LaborUnion, EHS Department, Quality Department, etc. and relevant subordinate units, of the Company, all perform theirrespective functions, helping form a social responsibility governance mechanism with integrated supervision, coordinationat different levels and comprehensive coverage.Identify responsibility issuesOPPEIN Home values the determination and management of corporate social responsibility issues. To enhance therelevance and responsiveness of the report content, ensure a scientific and efficient issue identification work, and coverthe concerns and basic demands of the company's internal and external stakeholders, OPPEIN Home, during the reportpreparation, systematically studied the development trend of the domestic and international home furnishing industry,comprehensively analyzed the Company's work focus throughout the year, benchmarked against excellent reports in theindustry, and conducted interviews and surveys with stakeholders. With these efforts, the social responsibility issueshighly concerned by stakeholders and closely related to the performance of OPPEIN Home were screened out, and weregiven priority in the information disclosure in the report.

Expectations and demandsCommunication channels and methodsStakeholders

Prevention of business risksPreservation and appreciation of thevalue in assetsActive market developmentReturns of robust investmentCompliance operationTax payment in accordance with the lawPromotion of economic developmentProtection of employees' rights andinterestsEmployee training and developmentOccupational health and safetyWork-life balanceProduct quality improvementQuality customer serviceAccessible communication channelsFair and equitable procurementHonestyCommunity public servicesJob creationEnvironmental managementConservation of energy and resourcesReduction of emission and pollution

Annual report and announcement of the CompanyRoad showsSpecialized meetingsOfficial website and hotline for investor relationsSupervision and assessmentProactive tax paymentSpecialized meetingsWorkers' congressLetters and visits and complaints of employeesEmployee developmentSatisfaction surveyOfficial website and WechatCustomer service hotlineSatisfaction surveyLetters and visits and complaintsSupplier conferenceSupplier trainingVisit to suppliersActive in charitable donationEngagement in social servicesNew jobsImprovement in use efficiency of resourcesImplementation of energy saving and emissionreductionGreen production

Shareholders and investors

Governments and regulators

Employees

Customers

SuppliersCommunitiesEnvironment

Supply chainmanagementSci-techinnovation

BusinessperformanceProduct qualityProduct safetyCorporategovernanceEpidemic prevention

and controlVolunteer

serviceCommunitydevelopment

Strategiccooperation

Energy saving andemission reductionGreen production

Job creationPublic charity

Green products

Employee careVocational

training

Employees' rights

and benefits

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation2021 Social Responsibility Report

STEADY FORFAR-REACHING

Deepen the party buildingConsolidate corporategovernanceStrengthen operation andmanagementAdhere to business ethics

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation2021 Social Responsibility Report

欧派家居党建荣誉

Members of the party committee team and secretariesof branches studied the party history.Celebration of the 100th Anniversary of the Founding of the CPCand Summary Commendation Conference on July 1

Party day activity with the theme of "Learning party history and staying true to the mission" was organized.Party School of CPC Oppein Home Group Inc. was officially established.

Focus on the integration of party buildingAs the first private enterprise in Baiyun District with a party organization set in 2005, OPPEIN Home has been exploring the partybuilding model of private enterprises with its own features. In 2021, Party Committee of the Company, making full use of thecustomer-oriented thinking, developed the management mode of cross-appointment between the party organization team andthe management of the Company according to the principle of "the branch is in the business department and the demonstrationpoint of party members is in the key positions" . Nearly 50% of the Company's party members also serve as middle and seniormanagers in various business divisions, playing a pioneering role in production and operation, realizing a pattern of "party mem-bers available in marketing innovation and solutions to technical problems and other problems".

Strict team construction

Party Committee of the Company steadfastly follows the principle of high standards, strict requirements and quality first in therecruitment of party members, and implements the "Double Excellence Project" , that is: To actively develop outstandingemployees at all levels to join the Party, and recommend excellent party members and cultivate them into business backboneand management elites in core departments and key positions, so as to provide talents and solid guarantee for the scientificdevelopment of the Company. In 2021, a total of 4 preparatory party members were approved to be full party members, and 4activists of party application and 3 party members admitted were organized to attend special training courses.Comprehensive anti-corruptionUnder the leadership of Party Committee of the Company, OPPEIN Home explored the management mode of "mutual checkand balance, collaborative participation and mutual supervision" according to its own features, and formed an all-round preven-tion and control system in which the integrity will be realized with systems, honesty, and culture. Internally, the Company set upthe Supervision Department and the Audit Department, and with the Discipline Inspection Commission, promoted the educationof anti-corruption among all staff, and implemented the activities of the propaganda month of righteousness culture. Externally,the Company joined the China Corporate Anti-Fraud Alliance to comprehensively advance an effective mechanism for theprevention of "employees' corruption" , and to maintain a good business order of the Company.Strengthen the education of party building

Party Committee of the Company always takes the building of a learning-oriented party organization as its key responsibility. In2021, the Company actively organized theme education activities and study of party history to continuously improve the ideolog-ical quality of party members. In addition, the Company, focusing on exploring innovative forms and carriers of learning, set upthe first party school in the home furnishing industry in Baiyun District, issued party building publications, provided a special partybuilding learning area on the "E Orange College Platform" , took the lead in recording micro videos of party lessons by the secre-tary, held knowledge competitions of party history, invited and hired experts and scholars to give party lessons, and developeda special learning platform for intelligent party building. With these efforts, the Company created e a three-dimensional learningsystem, helping ensure the orderly and healthy development of learning party organizations.

In 2021, Party Committee of the Company, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristicsfor a New Era and focusing on the production, operation and stability of the Company, adheres to the existing work pattern of"deepening the party building for development" to effectively lead high-quality development with excellent party building.

DEEPEN THE PARTY BUILDING

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

20.442 billion CNY

38.68 %

YOY increase of

Net profit attributable to shareholdersof the parent companyCompany's operating income

2.666 billion CNY

29.23 %

YOY increase of

Pay attention to communication with investorsAttaching great importance to the management of investor relations, OPPEIN Home has arranged full-time staff to communicatewith investors, established several channels to actively reply to investor's consultations, visits and investigations, such as interac-tive platform of investor relations, a special hotline, a special fax, a special email address and so on. The continuous developmentand update of Internet technology have given new momentum to the Company's management of investor relations. Under theCOVID-19 pandemic, in order to effectively protect the legitimate rights and interests of every investor, especially small and medi-um-sized investors, the Company actively organized survey and investigation, regular report briefings and other activities by waysof online teleconferences and live stream, in which the Company's management has participated actively.In 2021, the Company participated in the campaign of the SSE Investor Service Week in Guangdong with theme of "Staying Trueto Our Original Aspiration and Leading Value Investment" , and carried out investor education and service work; our 2020 AnnualPerformance Briefing and the 2021 Mid-year Performance Briefing were held by way of webcast, with over 100,000 online visitors.

3 times

Board of Directors

Strategy CommitteeAudit Committee

NominationCommittee

Remuneration andAssessment Committee

Improve governance structure

In accordance with provisions specified in the Company Law, Articles of Association and soon, OPPEIN Home has established a scientific and efficient corporate governance structure,in which the resources from all parties are able to be fully mobilized for coordination, andcontinuously improved the corporate governance level. The Company's Board of Directors(BOD) consists of six directors, including three independent directors. The BOD is principallyresponsible for formulating the Group's overall strategy and policies, setting performance andmanagement goals, and assessing business performance and management performance.The BOD has four special committees, such as Strategy Committee, Audit Committee, Nomi-nation Committee and Remuneration and Assessment Committee, to ensure rigorous andefficient decisions made by the Company. In 2021, the Company held 3 general meetings ofshareholders, 11 BOD meetings and 6 BOS (Board of Supervisors) meetings.

Standardize information disclosure

OPPEIN Home has constantly standardized the information disclosure by strictly following thenational laws and regulations such as Securities Law and Administrative Measures for Disclo-sure of Information of Listed Companies, as well as our company's provisions as specified inthe Regulation of OPPEIN Home Group on Management of Information Disclosure. The Com-pany has disclosed periodic reports and various temporary announcements truthfully, accu-rately, completely, timely and fairly. In 2021, with regard to the information disclosure, the Com-pany won the A-level evaluation of Shanghai Stock Exchange for the third consecutive year.

With continuous consolidation of its corporate governance level, OPPEIN Home has attached great importance to performing itsduties by law to ensure the standardized operation of the board of directors, strengthened the construction of information disclo-sure, and paid attention to investor communication, so as to return our investors with better business performance.

CONSOLIDATE CORPORATE GOVERNANCE

STRENGTHEN OPERATION AND MANAGEMENT

Steady business growthMinimizing the impact of COVID-19 pandemic on domestic and foreign market environment actively, OPPEIN Home has strivedto enhance its operation and management, continuously improved the product layout, and optimized the business structure, soas to achieve sustainable and steady growth in the annual business results. In 2021, the Company's operating income hit arecord high, reaching 20.442 billion CNY, with a year-on-year increase of 38.68%; the net profit attributable to shareholders ofthe parent company was 2.666 billion CNY, with a year-on-year increase of 29.23%.

Based on the development and transformation opportunities of the home furnishing industry, OPPEIN Home has intensifiedinnovation and transformation to actively cope with market and environmental changes, continuously strengthened the marketposition of our core products, promoted rapid business growth, and constantly improved the level of operation and control, so asto consolidate our leading position in the market sustainably.

A -level evaluation

Shanghai Stock Exchange forthe third consecutive year

General meetingsof shareholders

11 times

6 times

BOS (Board ofSupervisors)meetings

BOD meetings

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIP

Development based onwin-win cooperation2021 Social Responsibility Report

Moreinformation

What is "Four Irrespective"

Irrespective of relationship, irrespective of position, irrespective of how muchcontribution has been made, and irrespective of how much the amount is, onceit is verified that he has misappropriated the Company's property or hadcorrupt conducts, which constituted a serious violation of rules and regulations,the Company shall have the right to terminate his employment contract andrequired him to quit.

ADHERE TO BUSINESS ETHICS

Management of whistle-blowing and complaint

OPPEIN Home has continuously promoted the construction of management system as it lays stress on the management ofwhistle-blowing and complaint. In 2021, for the purpose of encouraging and rewarding whistleblowers to complain and report allkinds of matters that harm the interests of the Group and provide clues, the Company revised the Regulations of OPPEIN HomeGroup on the Management of Complaints and Whistle-blowing for the fifth time, which provides an effective protection mecha-nism for complaints, whistleblowers' identities and contents to avoid disclosure of relevant information and protect whistleblow-ers from retaliation. At the same time, the Company not only protects the rights and interests of whistleblowers, but also givesdifferent targeted policies and resource support to employees, suppliers and distributors, who actively cooperate with investiga-tion and provide important information or evidence, according to different groups.

Adhering to business ethics, OPPEIN Home has always kept the channels for complaints and feedback unblocked, attachedimportance to the construction of anti-corruption culture, aiming to build an honest and upright corporate image of the Company.

Sustainable product development

As OPPEIN Home keeps carrying out product innovation and development, our products extend from customized cabinets towhole house products, covering integrated kitchen, integrated wardrobe (whole-house customized), integrated bathroom,customized interior wooden door system, aluminum doors and windows, soft decoration, supporting furniture and other wholehome products, which supports the sustainable development of our business.

OPPEIN One-Stop Whole House Products

Customized integrated bathroomOPPEIN wooden door system

Customized cabinetCustomized wardrobe (whole house customization)

Create an honest and clean culture

With the "righteousness culture" as its foundation, OPPEIN Home has built an anti-corruption and anti-fraud system from insideto outside for its continuous promotion of the anti-corruption construction. In 2021, we strictly implemented the IntegrityManagement System of OPPEIN Home Group, strengthened the integrity education and integrity commitment management forstaff in key positions such as development, process, technology, quality identification, procurement and marketing, andstandardized the management of duty performance and exercise of power. Any employee who violated the integrity manage-ment system has been dealt with based on the principle of "Four Irrespective" .In addition, as we attached great importance to the business ethics performance of our partners, we have carried out integritytraining regularly, sign the Contract of Anti-Commercial Bribery with all distributors and suppliers, supervised and managed theirintegrity performance in daily work, and required those who violate the integrity management of OPPEIN Home to pay liquidateddamages and terminate business cooperation.

DEVELOPMENTBASED ON WIN-WINCOOPERATION

Promote strategic coop-erationBuild a chain of responsi-bilityPromote progress in theindustry

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecology

NATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

SergioCastiglia

Marco Fumagalli

Armando Ferrianiand his wife Elena D'AmatoMarco Bortolin

Enhance cooperation with professional firmsIn order to improve the training service level of the Company, OPPEIN Home has maintained friendly and cooperative relations withexternal professional consulting firms, which can not only keenly acquire the relevant information of cutting-edge human resourcesand pay attention to the development trend of the industry, but also help to tap external high-quality resources to make up forinternal shortcomings. In recent years, the Company has cooperated with 17 large-scaled service agencies, including GuangzhouTimes Sinobiz Training Co., Ltd., Guangzhou Goodidea Education Consulting Co., Ltd., Guangzhou Yingjichangkong EnterpriseConsulting Co., Ltd., Guangzhou Zero Consulting, etc.

Build a top design allianceOPPEIN has cooperated with designmasters from all over the world toinsist on original design. In order tolead the international trend with topdesign level, we have reachedstrategic cooperation alliances withfamous Italian designers such asSergio Castiglia, Marco Bortolin,Marco Fumagalli and ArmandoFerriani, so as to create the ultimateexperience for our users.

Strategic cooperation between OPPEIN Home and colleges and universities

Visit to well-known enterprises by OPPEIN Home and professional firms

Deepen the cooperation with institutions of higher educationIn order to deepen college-enterprise cooperation, OPPEIN Home has steadily improved the supply efficiency of high-qualityhuman resources for the strategic reserve of talents and technological innovation and development, and promoted theinfrastructure construction of talent echelon, so as to effectively reduce the labor cost. In recent years, on the principles of"mutual benefit, complementary advantages and coordinated development" , the Company has successively established talentcooperation and training relationship with such institutions of higher learning as Central South University of Forestry and Tech-nology, South China University of Technology, Northeast Forestry University, South China Agricultural University, NorthwestA&F University and so on, to have long-term and stable comprehensive cooperation of production, education and research inthe fields of teaching, scientific research, training and production.Meanwhile, the Company has launched internship programs with more than ten colleges and universities, including GuilinUniversity of Electronic Technology, Guangzhou Industry and Trade Technician College, Guangzhou Light Industry TechnicianCollege and Guangzhou City Construction Vestibule School, etc., which helped the college students in their research study andinnovative practice in the internship bases by ways of special recruitment, oriented classes and dual-system classes.

As the bellwether of China's home furnishing industry, OPPEIN Home has actively carried out cross-sector cooperation to buildan extensive cooperation platform, and strived to cooperate sincerely with world-renowned designers, key enterprises, scientificresearch institutions, financial institutions, etc., for mutual benefit and common development, so as to help the Company'ssustainable development.

PROMOTE STRATEGIC COOPERATION

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIP

Development based onwin-win cooperation2021 Social Responsibility Report

The Company was titled as a drafter of Kitchen for Housing published by the Ministry of Construction.Guangzhou OPPEIN Sanitary Ware Co., Ltd. was selected as the "drafter of Bathroom Unit for Hous-ing, the industrial standard of construction of the People's Republic of China" .OPPEIN wooden door was titled as the major drafter of the national group standard of Ecologic InteriorDoor for Building.OPPEIN led the global top brand in the pan-home furnishing industry to set up the "Global HealthyEcological Strategic Alliance" , aiming at linking production, education and research to industrial chainand exploring a more effective green upgrading path.OPPEIN cabinets took the initiative to establish China Kitchen Rebuilding Alliance, and cooperatedwith major top brands in the pan-home furnishing industry to give full play to the advantages of indus-try chain resources.

In 2003In 2004In 2017In 2020In 2021

PROMOTE PROGRESS IN THE INDUSTRY

As a leading enterprise in the customized home furnishing industry, OPPEIN Home has been actively responding to the govern-ment policies, supporting and participating in the publicity activities of industry associations, participating in drafting standardsrelated to the home furnishing industry, and co-organizing or hosting industry association meetings and related forums, so asto continuously improve the Company's technical level and competitiveness, and keep the Company's innovative technology inthe forefront of the industry.As of 2021, as for revision of 26 standards engaged by us, the Company has participated in revising 7 national standards andindustry standards and 11 group standards, and led in revising 3 national standards and industry standards and 5 groupstandards. In 2021, the Company was awarded the honor of "Advanced Enterprise in Standardization Work".

OPPEIN Home paid special visits to partnersCases

In order to safeguard the fundamental interests of the Company and its partners, from September to December 2021, OPPEIN Home paid specialvisits to partners in terms of publicizing the righteousness culture of OPPEIN, corresponding rewards and protection measures under the complaintand whistle-blowing mechanism, and feedback on outstanding problems of partners, striving to create a clean and honest cooperation environment.

Respect for exchanges and cooperationWith continuous optimization of supplier structure, OPPEIN Home has attached importance to strengthening exchanges andcooperation with suppliers, actively paid a visit to key suppliers to provide technical service support, so as to promote the strategicpartnership of key suppliers and form unique procurement competitive edges.

OPPEIN Home's Supplier Day

Over 7,000distribution stores

Construction of marketing channels

With considerable dealer resources in the industry, OPPEIN Home has established the largestnationwide marketing service network in the home furnishing industry, which cooperatesclosely and grows together with the Company, with over 7,000 distribution stores. In terms ofterminal management, the Company has always kept win-win cooperation in mind, putforward the concept that dealers are the root of the enterprise in the industry for the first time,and created such dealer management systems as 1000-point assessment mechanism,"10+1" OPPEIN terminal marketing system, dual 50 theory and 4S management of stores. Atthe same time, the Company has caught up with the development trend of the industry, deep-ened the omni-channel development strategy, and built a relatively mature channel operationmode with whole-house retail channels as the main backbone, engineering and e-commercechannels as two wings, and direct sales and foreign trade channels as the important support.

Cultivation of sense of responsibilityOPPEIN Home has laid great stress on the cultivation of suppliers' sense of social responsibility. While providing professionaltraining to excellent suppliers, we also keep close contact with suppliers in a customized communication mechanism, activelypublicize OPPEIN Home's management requirements for suppliers and the goals of ecological construction of supply chain, andclearly clarify our management orientation and requirements.

OPPEIN Home has actively cooperated with the upstream and downstream of the industrial chain to create an ecosystem ofco-construction, co-governance, symbiosis, win-win and co-development, with an initiative to act as a leader and responsibleperson to promote the high-quality development of the industry.

BUILD A CHAIN OF RESPONSIBILITY

PUBLIC WELFAREACTIVITIES BENEFITPEOPLE'S LIVELIHOOD

Pay attention to communityharmonyEnthusiastic in volunteerserviceSupport local developmentImplement epidemic pre-vention and control

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

Make donation for educationAiming to support the healthy growth and development of local young students, OPPEIN Home has actively held various donationactivities to provide care and assistance to students in need within its ability, which fully demonstrates the social responsibility ofOPPEIN Home. In 2021, the Company carried out activities such as subsidizing the "OPPEIN Endowment for Students" , donatingteaching equipment and granting study grants.

Consolation to the personnel on duty during the Spring Festival in QingyuanDonation for education at Tianxin Hope Primary School in Shijiao Town

Donation for education in Dazhe TownConsolation to the needy people in Shakeng Village, QingyuanConsolation to senior Party members in difficultyin Tangbei Village, Jianggao Town

Pass on love from public welfare activities

For the purpose of carrying forward Chinese traditional virtues, OPPEIN Home has vigorously advocated care, assistance andsympathy for the elderly in nursing homes, lonely elderly, disabled people, needy people, stay-at-home people and othergroups to convey our Company's public welfare concept and fulfill our commitment to the society.

The enterprises can not develop without support and understanding from the community. Based on our own enterprise advan-tages and industry characteristics, OPPEIN Home has actively integrated into the local community, paid attention to sincerecommunication with stakeholders, established good community relations by providing service locally, so as to facilitate thehealthy and harmonious development of the community.

PAY ATTENTION TO COMMUNITY HARMONY

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

◎ Keep the employees informed of epidemic information toimprove their awareness of epidemic prevention◎ Try our best to seek for epidemic prevention materials tomake preparation for epidemic prevention◎ Disinfect the plant to create a safe and healthy environment

◎ Strengthen epidemic safety management and providehuman-oriented services◎ Strictly control the management of epidemic preventionmaterials to ensure safe resumption of work for employees◎ Standardize the epidemic detection process and strictlyobserve the safety bottom line of employees

While focusing on our own development, OPPEIN Home also attaches importance to supporting local economic and socialdevelopment, and actively makes contributions to the local economy and the public with its industrial resource advantages.SUPPORT LOCAL DEVELOPMENT

Since the outbreak of COVID-19 pandemic in 2020, facing the dual tasks and challenges of epidemic prevention and control andbusiness development, OPPEIN Home has actively responded to the call of the state, strictly implemented the various arrange-ments for epidemic prevention and control made by government departments, established an emergency mechanism, definedemergency measures and disposal procedures, actively strengthened control measures, and promoted the normalization ofepidemic prevention work in an orderly manner, so as to ensure the Company's resumption of work and the health of employees.

IMPLEMENT EPIDEMIC PREVENTIONAND CONTROL

OPPEIN gave assistance in nucleic acid test in Guangzhou and was awarded a banner

Promote the integration of enterprise and communityOPPEIN Home has carried out various activities with the community where it is sited to promote the integration and harmoniousdevelopment of the Company and the community, so as to realize the integration of business value and social value of the enter-prise and make contributions to the society with its actions.

OPPEIN Chengdu Base wrote a new chapter in the integration of enterprise and communityOn April 29, 2021, OPPEIN Chengdu Base and Qingyunsi Community Neighborhood Committee of Huangjia Sub-district held the specialactivity with the theme of "New Chapter in the Integration of Enterprise and Community" in the living quarter of the base, which attractedmore than 300 employees from enterprises around Qingyunsi Community and Chengdu Base. This activity enhanced the relations between thecommunity and enterprises, jointly writing a new chapter in the integration of enterprise and community.

Cases

Love My Hometown, Reward My Hometown-- VOLUNTARY Construction of DongtaiEco-industrial Park by the Chairman of OPPEIN HomeAs a respected villager in Pingyuan, Meizhou, Yao Liangsong, Chairman of OPPEIN Home, was always concerned about the social andeconomic development of his hometown. In May 2017, we decided to jointly build Guangdong Pingyuan Dongtai Eco-industrial Parkwith Pingyuan County government, and invested 200 million CNY for voluntary construction. As of May 2021, the first phase of the parkhas been completed, which attracted six emerging growing enterprises to settle in, bringing an estimated annual output value of 482 millionCNY, tax revenue of 21.295 million CNY and more than 500 new jobs.

Cases

Based on the principles of voluntariness, honesty and legality, OPPEIN Home promotes and advocates volunteer service,encourages and supports employees to fulfill the volunteer service spirit of "dedication, friendship, mutual assistance andprogress" , and guides employees to actively participate in volunteer activities, which gives full play to the responsibility of a listedenterprise and shows the good spirit of OPPEIN people to the society.

ENTHUSIASTIC IN VOLUNTEER SERVICE

EMPLOYEE-ORIENTED CARE

Protect the rights and interestsof employeesSupport staff developmentBalance work and lifeValue health managementEnsure production safetyFulfill commitment to care foremployees

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

117,200 CNY

Per capita annual income of employees

5.9 %

Promotion rate ofemployees had aYoY increase by

Dual-channel career development

Technical

Management

technical levels

management levels

SUPPORT STAFF DEVELOPMENT

Pay attention to employee growth

We value the personal career growth and development of employees, and give them broadcareer development space and fair promotion opportunities. Based on the qualification levelswhich are classified according to the scope and depth of knowledge and skills requirements,professional qualities and the scope of responsibility, the Company establishes a dual-channelcareer development path for managerial and technical staff, divides jobs at A, B, C and D levelsinto 23 management levels and 16 technical levels, and specifies the qualification standards foremployees at all levels, including service years, performance and skills, which provides clearguidance for the development of employees, and strives to realize the self-development ofevery employee while creating values for the company. In 2021, the promotion rate of employ-ees had a YoY increase by 5.9%.

Putting employee development to a strategic height, OPPEIN Home actively builds dual engines of "personnel development"and "system construction", scientifically evaluates and selects talents, and trains personnel in all directions and at multiple levels,so as to fully tap the potential of employees, enhance the professional ability and leadership of employees at all levels, buildcareer development channels, and promote the sustainable growth of employees.

7 daysPer capita paid vacation days

100 %

Participation rate

Guarantee remuneration and benefits

Keeping the concept of "sharing operation results with employees" , OPPEIN Home establishes a remuneration distribution mech-anism based on business performance, and improves the performance incentive system, for the purpose of improving the remu-neration and benefit level of employees; OPPEIN Home also pays "five social insurances and housing fund" for employees andstrictly implements the paid vacation system to guarantee the implementation of employees' rights and interests of paid vacationand paid annual leave on public holidays. In 2021, the per capita annual income of employees is 117,200 CNY, and the per capitapaid vacation days are 7 days, with participation rate of 100%.

24,660 peopleOur total number of employees reached

32.1%

Proportion of female employees

Sharing of rationalization proposalsAnnual workers' congress

Adhere to fair employment

Strictly abiding by the Labor Law, Contract Law and other laws and regulations, OPPEIN Home has never employed any childlabor nor performed any other forced labor, and has strongly opposed to harassment and maltreatment. We continue payingattention to the employment of the disabled, actively create jobs for the disabled, and strive to build a diverse and inclusive team.As we adhere to equal employment and equal pay for equal work, we treat employees of different nationalities, races, religiousbeliefs, genders and ages fairly, so as to create a diverse, inclusive, fair and reasonable workplace environment for all employ-ees. In 2021, our total number of employees reached 24,660, 32.1% of which was female employees.

Improve democratic management

OPPEIN Home values employees' demands and opinions, continuously deepens democratic management, constantlyimproves the democratic communication mechanism, and makes the communication channels between the management andgrassroots employees smoothly through workers' congresses, symposiums and rationalization proposals, and actively solicitsthe views of employee representatives to protect employees' right to know and participate in democracy. In 2021, the Companyreceived and settled 14 complaints and feedback from employees, conducted 3 surveys on employees' thoughts and ideas, andadopted 973 rationalization suggestions from employees, which fully reflected employees' sense of ownership and honor.

Advocating and following the "people-oriented" concept, OPPEIN Home places great importance to the protection of employees'rights and interests, continuously improves the employee management system, and deepens the democratic managementmechanism, so as to provide a fair and just working environment for every employee. No major employee relations incidentshave occurred in the Company in recent three years.

PROTECT THE RIGHTSAND INTERESTS OF EMPLOYEES

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

OPPEIN and Nanfang Hospital jointly held a free clinic for employeesCasesIn May 2021, OPPEIN Group and Nanfang Hospital reached a strategic cooperation intention on matters such as "Green Channel forMedical Treatment", introduced high-quality medical resources of Nanfang Hospital to Guangzhou Headquarters, and held large-scaledpublic welfare activity of free clinic, which opened up a green channel for employees to seek medical treatment, helped employees under-stand basic health care knowledge, and provided convenient and professional medical services for employees.

VALUE HEALTH MANAGEMENTManagement of employee healthAs OPPEIN Home considers the occupational health of employees is very important, it establishes and improves the rules andregulations such as Management Standards of Environmental Health and Safety (EHS) of Group, Regulations of OPPEINHome Group on EHS (Environmental Health and Safety) Assessment Incentive Management, and Eight Prohibitions onEnvironmental Health and Safety (EHS) of OPPEIN Home Group, and incorporates occupational health protection intostandardized management; in addition, by upgrading the infrastructure in the plant, optimizing the visual management of work-shop management, standardizing labor insurance supplies and strengthening the occupational health training of senior employ-ees and newcomers, we continuously improve the occupational health management level. In 2021, no occupational diseasecase was found in the Company.

EAP AssistanceIn order to improve the mental health of employees, OPPEIN Home is committed to establishing a three-level psychologicalprevention mechanism. Over the years, the EAP project team of the Training and Development Department has implemented512 online knowledge promotion sessions, 156 offline trainings and 572 times of psychological counseling services by ways ofonline and offline training, departmental support and crisis intervention, with over 100,000 cumulative participants. With thegradual popularization of EAP psychological care, employees' awareness of mental health has been improved, which reducesthe losses of enterprise caused by psychological distress and mental illness to a certain extent.

Tug-of-war in Wuxi BaseGarden party in Mid-Autumn Festival

20 million CNY

Company staff traininginvestment

46.3 hours

Training duration percapita

"OPPEIN IP Star Plan" sales master practice series training"Eagle Plan" for talent echelon construction

Improve the ability of employees

As we emphasize the construction of learning organizations, we have established atraining system of "whole-course, targeted and three-dimensional learning and devel-opment ecosystem for all employees". Under the guidance of the "6+1" new trainingmodel of the Group, with the training mode of "mutual complementation of internal andexternal trainings, and synchronous development of primary, secondary and tertiarytrainings" , the online and offline learning are adopted to ensure that employees of differ-ent types and at different levels can get opportunities for learning and improvement andprovide employees with opportunities and space for sustainable development. In 2021,the Company invested more than 20 million CNY in employee training with averagetraining time of 46.3 hours per person and 100% completion rate of training plan, and thesatisfaction of employee training reached 9.81 points.

In order to ensure the employees balance their work and life, the Company organizes diversified cultural and sports activities toenrich employees' daily life and enhance their sense of belonging and happiness. In 2021, the headquarters of the Companyinnovated the form of activities, and cooperated with all bases to carry out singing contest, garden party in Mid-Autumn Festival,music day and other activities, striving to create a cozy working atmosphere.

BALANCE WORK AND LIFE

Morethan

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation2021 Social Responsibility Report

504,100 CNYwas subsidized for 51 employees

17 times

Employee's condolences

Difficulty in children's schooling has always become a headache for migrant workers to integrate into the city, and it is also a challenge for thesurvival and development of the home furnishing industry. As a listed company with a sense of social responsibility, OPPEIN Home provideshumanistic care to the best of its ability according to the actual needs of employees, and actively assists in solving the problem of school enroll-ment for children of migrant employees in addition to protecting the rights and interests of employees.With the help of relevant government policies, the Company actively strives for enrollment places for the children of migrant employees.From 2016 to 2021, the places of public schools that the Company got from the government for migrant workers' children have increasedyear by year, with a total of 145 places of public schools in 2021.

Policies for problem settlement

Distribute the gift packages of cooling products in summerCare for employees staying in the company during the Spring Festival

FULFILL COMMITMENT TO CARE FOR EMPLOYEESProvide care for employeesOPPEIN Home always adheres to the people-oriented principle, cares for the work and life of every employee, pays attention tosolving the problems that employees and their family members are concerned, and improves the working environment ofemployees, so as to make employees truly feel the warmth of "home" .

Assist employees in difficultyOPPEIN Home attaches great importance to employees' consolation and assistance, and actively implements various assis-tance mechanisms in accordance with the Management Standards of OPPEIN Home Group for Visit to the Injured and Sick andAssistance to Employees in Difficulty. We carry out various assistance activities for employees and their family members, whoare difficult in life and who suffer from critical diseases, so as to effectively help employees get through difficult time.In 2021, the Company organized fund-raising for 5 employees in difficulty, provided subsidies of over 500,000 CNY for 51employees who had suffered from serious illness, natural and man-made disasters and difficulties in life, and offered consolationto them for 17 times.

Strict safety management

We insists on improving the safety management system, strictly abides by such laws and regulations as the Production SafetyLaw of the People's Republic of China, Fire Protection Law of the People's Republic of China and so on, follows and improvesthe Management Standards of Environmental Health and Safety (EHS) of Group, and enhances safety supervision and emer-gency management capabilities.

The safety of employees is of paramount importance in OPPEIN Home, so we always take production safety as the top priorityin the development of enterprises. Strictly planning, promoting and implementing safety work in production, we adheres to thesense of bottom line and consolidates the foundation of production safety to ensure the safety in production and construction. In2021, the Company's accident rate at work per one million hours reached 1.56%, keeping a continuous downward trend.

Cultivate safety culture

In order to implement the requirements of national production safety laws and regulations and our safety rules and regulations,OPPEIN Home constantly standardizes and strengthens the management of various safety trainings by making safety trainingplans, carries out 8 major training programs, including "fire safety knowledge, operation of fire equipment and fire drill", "knowl-edge on accident emergency rescue and analysis and summary of typical accident case", "technical knowledge on hazardouschemicals, environmental protection, awareness of safety risk, electrical equipment, transportation, moving and 5S safety" toimprove the safety knowledge level and safety operation skills of employees, and reduce and avoid all kinds of production safetyaccidents.

ENSURE PRODUCTION SAFETY

INNOVATION OFSERVICES AND PRODUCTS

Focus on product innovationProvide high-quality productsProvide excellent and sincereserviceOptimize production process

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecology

NATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcareEMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

Training of quality personnelWe have launched the "Quality Skills Improvement" training camp for the corebackbone personnel in the manufacturing system, with a view to building aquality personnel team that adapts to the development of enterprises andleads the home furnishing industry, and promoting business development.

Strengthen system certificationAll products of the Company havepassed ISO9001: 2015 certification

PROVIDE HIGH-QUALITY PRODUCTS

Strengthen quality managementOPPEIN Home strictly abides by national laws and regulations, and carries on product quality management in the whole chain andwhole process in accordance with the quality management principles of focusing on customers, leadership, active participation ofall employees, process methods, improvement, evidence-based decision-making and relationship management.

Over the years, with the enterprise spirit of "pursuit of perfection", OPPEIN Home has kept improving the product quality,constantly establishing and enhancing the product quality management system, and strengthening the quality managementthroughout the process of production and operation, so as to ensure the controllable risks, safety and stability of our productswith stable and lean operation.

Design management platform

Promoting cooperation with Central South University of Forestry and Technology, OPPEIN Home has established aplatform of "Joint Provincial Key Enterprise Laboratories" based on college-enterprise cooperation to focus on innovativeresearch capabilities in the field of green home furnishing technology. Moreover, we have also built a design managementplatform to give decision-making support for rational allocation of design tasks and improvement of capabilities, whichhelps the Company improve its design efficiency and level.

Creation of an innovation platform

Enhance innovation abilityAs the leader of customized home furnishing industry, OPPEIN Home is famous for its large-scaled R&D investment, and itsannual R&D investment accounts for more than 3%, ranking first in the industry. Relying on powerful R&D strength, we havebuilt the core competitiveness of product and process innovation.

Marketresearch

Productplanning

ProductreviewTrialproduction

of newsamples

Introductionof newsamplesSamplepromotion

Sampleproductlaunch

FOCUS ON PRODUCT INNOVATION

Insist on product research and development

OPPEIN Home insists on promoting development through innovation, setting up a R&D centerfor home products at the group level, as well as product planning and R&D departments invarious business segments, to jointly promote the development and management of theCompany's product and technology. Over the years, the Company's product developmenthas gradually transitioned from single customized product to whole-house customizedproduct, integrated home customized product and one-stop whole house product, and fromsingle new product design to new product design, extended design and functional design. Bythe end of 2021, OPPEIN had been granted with a total of 595 authorized patents.

Flow chart of research anddevelopment of OPPEINHome's products

595 items

had been grantedwith a total of autho-rized patents

Quantity of patent applications (item)InventionUtility modelAppearanceQuantity of patent grants (item)InventionUtility modelAppearance

Classification

OPPEIN Home highly values the construction of R&D team. The Company continues to increase the recruitment of experts andtechnical personnel to set up expert teams in various technical segments, and also carries out efficient college-enterprise coop-eration and personnel exchange with vocational colleges such as Central South University of Forestry and Technology andSouth China Agricultural University. Meantime, we also set up our Milan R&D and Design Center in Italy for the purpose ofactively promoting external exchanges and cooperation of production, education and research.By the end of 2021, the Company had more than 2,900 R&D personnel, with annual R&D investment reaching 0.9 billion CNY,accounting for 4.4% of the operating income, which effectively guaranteed the product upgrading and technological innovation.

Construction of innovation team

OPPEIN Home highly values the protection ofintellectual property rights, so we set up a specialdepartment with special personnel to manage, use,protect and monitor our intellectual property, andformulate a complete patent and trademarkmanagement system. Apart from holding profes-sional and rich trainings to continuously improve theawareness of intellectual property protection of themanagement and employees, the Company alsoestablishes a sound intellectual property networksystem with the intellectual property managementspecialist to maintain its content and keep it updated.

Protection of intellectual property

In 2019In 2020In 2021

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

Elements of OPPEIN production mode

Standardization

Scalespecializationandcustomization

Smartmanufacturing

InformatizationFlexibilityAutomationTimeliness

OPTIMIZE PRODUCTION PROCESSAs we pay attention to the innovation and optimization of production mode, OPPEIN Home creatively establishes a way to matchthe information platform with modular production in the industry, and forms a "large-scaled non-standard customization" systemto solve the contradiction between the individualized needs of consumers and the mass production of enterprises. By way of the"modular production", we can not only make to orders to avoid inventory, but also realize mass production to reduce costs andmeet different customization requirements, thus realizing the information management of the whole process from placing anorder to production.

Professional after-sales serviceOPPEIN Home highly values the protection of customers' rights and interests, constantly establishes and improves the custom-er-oriented after-sales service guarantee system, and clarifies the after-sales service management process. Consideringevery demand of customers, OPPEIN honors its promise to customers, and provides customers with 16-step one-stopservices such as on-site measurement, computer follow-up, regular maintenance, 5-year warranty and lifelong maintenancebased on the four dimensions of "experience, specialty, speed and respect" to ensure the satisfaction of every customer.Respond to customer's demandsOPPEIN Home has formulated such regulations as the Regulations on Management of End Customer Complaints andAfter-sales, Standards for Implementation of Quality Complaint Handling and Improvement, Measures for Management ofLeft-over Orders, Regulations on Implementation of Product Quality Supervision and so on to standardize the managementprocess of customer complaint handling. Establishing feedback channels such as customer service hotline, official website,e-commerce platform and WeChat official account, we develops a complaint handling process of complaint information accep-tance, preliminary feedback, investigation and handling, feedback reply and analysis.Ensure compliant publicity

OPPEIN Home has continuously improved the Regulations of OPPEIN Home Group on Management of Advertising Projects toensure that the advertising content of all products comply with national laws and regulations, and strictly implemented the VIstandard of the Group. If necessary, the advertising project should be submitted to the Brand Management Center and theDepartment of Legal Affairs of the Group for review according to the Application for Approval of Legality and Compliance ofAdvertising Project.

Set up an offline experience store at Guangzhou Baiyun Airport

Guarantee of product quality and safety◎ Select the worldwide top suppliers to ensure qualityand safety from the very beginning◎ Our raw materials are green and eco-friendly, withtheir environmental protection levels higher thanthe ENF specified in the new national standard

◎ Our products are tested in CNAS certification lab to

ensure the safety of products

Guarantee of quality incident handling◎ For our dealers: We have established an after-sales service system by classifications

◎ For our consumers: We have established a 4S

customer service center

◎ Quality incident classification system: ABCD

4-Level Complaints

Ensure product safety

OPPEIN Home makes the quality and safety the top priority, which is directly responsible by our president, therefore, the qualityand safety will be ensured from two aspects: guarantee of product quality and safety and guarantee of quality incident handling.In 2021, the qualified rate of incoming materials, qualified rate of spot check in processing and first-pass yield of final inspectionwere 99.36%, 97.41% and 97.54%, respectively.

PROVIDE EXCELLENT AND SINCERE SERVICEImprove the service level

Paying attention to the efficiency and quality of service provided to customers, OPPEIN Home has established over 7,000 salesand service outlets in China and around the world, so that consumers can enjoy OPPEIN's consultative selling and one-stoppersonalized service anytime and anywhere. We also actively summarize all kinds of service problems encountered in customerservice, compile them into a standard textbook which is used to implement unified training for service teams, so as to achieve aunified national level to provide high-quality services for customers.

Broaden marketing channelsOPPEIN Home adheres to the marketing strategy ofmulti-channel, multi-form and multi-content, andactively develops online and offline sales channels athome and abroad to convey OPPEIN's care forconsumers and narrow the distance between productbrands and users, so that more people can remember,experience and afford them. In 2021, the Company'sfirst offline high-end experience store was set up atGuangzhou Baiyun Airport, which created a new era ofscene marketing in the industry and took an initiative inscene marketing in home furnishing industry.

Public welfare activitiesbenefit people's livelihoodPUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report

PROTECT THENATURAL ECOLOGY

Strengthen environmentalmanagementProduce green productsAdvocate green operationShare green life

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIP

Development based onwin-win cooperation2021 Social Responsibility Report

OPPEIN Home built a rooftop photovoltaic power generation project in Qingyuan Base

In 2021, OPPEIN Home cooperated with Guangdong Electric Power Co., Ltd. of China Energy Investment Corporation to build a rooftopphotovoltaic power generation project in Qingyuan Base, which was the largest rooftop photovoltaic project built at one time in GuangdongProvince by now. Combined with the local peak-valley electricity price and rooftop photovoltaic power generation, the project tookenergy-saving measures such as electrical energy storage, ice storage,energy-saving motors and energy-saving lighting. With the mode of "consum-ing the power generated by ourselves and transmitting surplus electricity to thepower grid", 95% of self-generated power was consumed by Qingyuan Base.Such power generation project is estimated to have average annual power genera-tion of 17.29 million kWh, which can save 4,900 tons of standard coal per year,reduce 10.93 tons of soot emissions, 61.17 tons of sulfur dioxide emissions, 53.18tons of nitrogen oxides emissions and 18,700 tons of carbon dioxide emissionsevery year, which is of great positive significance for helping Guangdong Provinceachieve the goals of peak carbon emissions and carbon neutrality.

OPPEIN Home passed the certification ofenvironmental labeling productsOPPEIN Home passed the certification ofenvironmental management system

Improve the environmental protection systemAccording to the Environmental Protection Law of the People's Republic of China and other laws and regulations, OPPEINHome has formulated environmental-related systems such as Regulations of Group on Environmental Protection Manage-ment, Management Standards of Environmental Health and Safety (EHS) of Group and Manual of Environmental Management,implemented EHS management system, passed ISO14001 environmental system certification and certification of environmentallabeling products to ensure that every step from material selection, production process to installation strictly follow greenenvironmental protection standards, for the purposes of building a comprehensive green environmental protection productionsystem and promoting the sustainable development of enterprise and the environment.

Environmental protection management of construction projects

OPPEIN Home has continuously strengthened the environmental protection management of the whole process of constructionprojects in Qingyuan, Tianjin, Wuxi and Chengdu, strictly carried out feasibility study, basic design review and countersigning ofconstruction projects, promoted the enterprise to strictly implement the requirements of project environmental assessment andapproval, and completed the environmental protection acceptance of project completion on schedule. The environmentalcompliance rate of new projects reached 100% throughout the year.

OPPEIN Home has always adhered to the philosophy of green development, continuously strengthened the construction ofenvironmental management system, established and improved environmental early warning mechanism, strengthened preven-tion of environmental risks, carried out environmental impact assessment of projects, and effectively enhanced the environmen-tal governance of enterprise to make contributions to the construction of ecological civilization.

STRENGTHEN ENVIRONMENTAL MANAGEMENT

Build a low-carbon plant

Actively responding to the national "dual carbon" goals, OPPEIN Home makes full use of the national green manufacturingpolicies and builds green and low-carbon plants to achieve win-win economic, social and environmental benefits.

In order to fulfill its commitment to green production and low-carbon operation, OPPEIN Home advocates energy conservationand environmental protection in every link of the industrial chain, carries out special treatment in key production areas to improveenergy efficiency, reduce the emission of air pollutants and greenhouse gas, regulate waste emissions, and save energy andresources, for the purpose of building an environment-friendly enterprise.

ADVOCATE GREEN OPERATION

In order to the develop green products, OPPEIN Home continuously provides users with energy-saving, green and eco-friendlyproducts and a healthy home environment for consumers with leading technology and green manufacturing in strict accordancewith the requirements of relevant international and domestic standards. In 2021, OPPEIN Home developed a series of neweco-friendly products, such as the second generation of aldehyde-free antibacterial particle board, PP film, PETG film, PET film,etc., and developed follow-up board care to realize the integrated design of sterilization products and cabinets to meet the healthneeds of consumers.

PRODUCE GREEN PRODUCTS

Cases

20211,373.6

1,591.2

2020 1,265.6

1,470.1

2019

3,604.7

4,810.0

2019

195.1

41.8

2020

118.1

24.8

2021

106.0

23.4

Apply environmental protection technologyIn 2021, OPPEIN Home actively upgraded its technology and took the lead in introducing and building the first furniture paintspraying line in Asia. There was no VOC emission in the painting process, which reduced the overall carbon emission by morethan 75% compared with baking varnish. At the same time, we explored the production process of replacing oily paint withwater-based paint to control pollution from the beginning.

Implement energy conservation and consumption reductionOPPEIN Home advocates and promotes the efficient use of energy, actively finds ways to save energy and reduce energyintensity, rationally adopts energy-saving equipment, and applies energy-saving and consumption-reducing technologies topromote hydropower energy conservation and consumption reduction with various measures.

Strengthen pollution prevention and control

When focusing on the "three simultaneities" of newly-built, renovated and expanded environmental protection projects, OPPEINHome pays special attention to the renovation and upgrading of facilities, introduces the advanced international environmentalprotection facilities to treat waste gas, waste water, solid waste and noise in the production process in compliant manner, andentrusts professional qualified company to dispose of hazardous waste generated by the production process, with an annualenvironmental protection investment of over 30 million CNY.

◎ Dusts from wood processing are collected by a central dust removal system;◎ Waste gas from painting is treated by "multi-stage filtration + rotary adsorption and

concentration + RTO treatment system" ;◎ Organic waste gas from production of quartz stone is treated by "low-temperatureplasma + activated carbon adsorption device".Treatment ofwaste gas

◎ Waste water produced by water-carrying operation in mesa processing is treated

by coagulation and air flotation for recycled utilization;◎ Waste water generated by painting process is collected as hazardous waste by

entrusted company with hazardous waste treatment qualification.Treatment ofwaste water

◎ Choose low-noise equipment, and take noise elimination and insulation measures

for some high-noise equipment;◎ High-noise equipment should be away from the plant boundary as far as possible;◎ Build tree lawns along the plant boundary.Noise control

◎ General solid waste is stored by categories and regularly handed over to

qualified company for treatment and recycling of solid waste;◎ Hazardous waste is regularly handed over to the qualified company for disposal

of hazardous waste.Treatment ofsolid waste

Electricity consumption in 2019-2021

Electricity charge(10,000 CNY)

Electricity consumption(10,000 cubic meters)

Water consumption in 2019-2021

Water charge(10,000 CNY)

Water consumption(10,000 cubic meters)

As OPPEIN Home actively promotes green operation, it strengthens education of environmental protection, joins in and initiatesvarious advocacy activities concerning environmental protection, and calls on more people to participate in the actions ofprotecting the ecological environment by posting notices in community publicity boards and organizing the training of environ-mental protection volunteers.

SHARE GREEN LIFE

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

Index of indicators

Table of ContentsGRI indicatorsCompany profileBusiness layoutCorporate brandCorporate cultureWith great honors obtained in the past 27 years, we will forge aheadFollow right management path and enhance cohesion with good cultureGather the power of love to create happy familiesEstablish responsible organizationsIdentify responsibility issuesEnhance responsibility capacityImplement responsibility communicationDeepen the party buildingConsolidate corporate governanceStrengthen operation and managementAdhere to business ethicsPromote strategic cooperationBuild a chain of responsibilityPromote progress in the industryPay attention to community harmonyEnthusiastic in volunteer serviceSupport local developmentImplement epidemic prevention and controlProtection of employees' rights and interestsSupport staff developmentBalance work and lifeValue health managementEnsure production safetyFulfill commitment to care for employeesFocus on product innovationProvide high-quality productsProvide excellent and sincere serviceOptimize production processStrengthen environmental managementProduce green productsAdvocate green operationShare green lifeKey performanceIndex of indicatorsRespond to the United Nations Sustainable Development Goals (SDGs)Feedback

102-3/102-45/102-46/102-48/102-49102-14102-1/102-2/102-5102-4/102-6/102-7102-6102-16102-10/102-13205-3102-12102-20/102-29/102-32102-31/102-47/103-1102-17102-17/102-21/102-34/102-40/102-42205-2102-18/102-19/102-22/102-26/102-27201-1205-2203-2102-9/308-1/414-1203-2203-2203-2203-1/203-2203-2102-35/401-2/405-1404-1/404-2/401-2/401-2/102-30102-43/102-11/103-2/103-3/305-5302-5302-1/302-2/302-4/302-5/305-7/307-1302-4102-8/201-1/305-1/305-2/305-3102-55//

DescriptionDear SirAbout UsResponsibility FocusResponsibility Management

O PERATION

Steady for far-reaching

E MPLOYEE

Employee-oriented care

N ATURE

Protect the natural ecologyAppendix

Operating incomeNet profit attributable to shareholders of the parent company

R&D investmentTotal number of employeesProportion of female employees

Number of R&D personnelCoverage rate of anti-corruption training

Participation in anti-corruption training

Quantity of standard revisionsQuantity of patent applications

Quantity of patent grantsPer capita annual income of employees

Major employee relations incidents

Per capita paid vacation daysInsurance participation rate of employeesConfirmed number of employee suffering from occupational diseases

Number of volunteersInvestment in training

Annual training time per capita

Completion rate of training plan

Training satisfactionAccident rate at work per one million hours

Qualified rate of incoming materialsQualified rate of spot check in processing

First-pass yield of final inspection

Annual water consumptionAnnual electricity consumption

Carbon dioxide emissions

Investment in public welfare activities

Indicator

100 million CNY100 million CNY100 million CNY

Person

%Person

%Person-time

ItemsItemsItems10,000 CNY

CaseDay

%PersonPerson10,000 CNY

Hour

%Point

%

%

%

%10,000 cubic meters

10,000 kWh

Ton10,000 CNY

Unit

135.33

21.19

6.42

21,660

31.8

2,533

36,000

10.02

1,874

42.8

9.74

2.51

99.29

94.67

95.05

41.8

4,81028,119.5

10.36

In 2019

147.40

24.13

7.00

20,022

32.5

2,866

40,000

10.11

6.5

1,712

45.4

9.76

2.02

99.42

96.41

96.76

24.8

1,470.19,872.67

553.42

In 2020

204.42

26.66

9.00

24,660

32.1

2,954

42,000

11.72

2,160

46.3

9.81

1.56

99.36

97.41

97.54

23.4

1,591.210,715.21,255.75

In 2021

※ Only refer to the carbon dioxide emissions of OPPEIN Guangzhou

APPENDIXKey performance

P ARTNERSHIP

Development based onwin-win cooperationP UBLIC

Public welfare activitiesbenefit people's livelihood

I NNOVATION

Innovation of services andproducts

OPERATION

Steady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand products

INNOVATION

Protect thenatural ecology

NATUREPARTNERSHIP

Development based onwin-win cooperation

2021 Social Responsibility Report

Your informationName: Tel:

Employer: E-mail:

Multiple choice (please tick the corresponding choice )

1. Your overall evaluation of Social Responsibility Report of OPPEIN Home in 2021:

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2. How about OPPEIN Home's performance in customer service?

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3. How about OPPEIN Home's performance in technological innovation?

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4. How about OPPEIN Home's contributions to the industry development?

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5. How about OPPEIN Home's performance in the construction of employee teams?

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6. How about OPPEIN Home's performance in voluntary public welfare?

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7. How about OPPEIN Home's performance in environmental protection?

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8. What other opinions do you have on the social responsibility work of OPPEIN Home?

Feedback

Thank you for reading the Social Responsibility Report of OPPEIN Home in 2021. In order to improveOPPEIN Home's environmental, social and governance work, further enhance the Company's sustain-able development ability and level, and strengthen communication with all sectors of society, yourvaluable opinions and suggestions on our work and report will be fully appreciated.Sustainable development goals

Promote sustained, inclusive and sustainable economicgrowth, full and productive employment and decent work for allBuild resilient infrastructure, promote inclusive and sustain-able industrialization and foster innovation

Protect, restore and promote sustainable use of terrestrialecosystems, sustainably manage forests, combat desertification,and halt and reverse land degradation and halt biodiversity lossPromote peaceful and inclusive societies for sustainabledevelopment, provide access to justice for all and buildeffective, accountable and inclusive institutions at all levels

End poverty in all its forms everywhereEnd hunger, achieve food security and improved nutritionand promote sustainable agricultureEnsure healthy lives and promote well-being for all at allagesEnsure inclusive and equitable quality education andpromote lifelong learning opportunities for allAchieve gender equality and empower all women and girlsEnsure availability and sustainable management of waterand sanitation for allEnsure access to affordable, reliable, sustainable andmodern energy for all

Provide subsidies for employees who have suffered fromserious illness, natural and man-made disasters and difficul-ties in life

Pilot construction of rooftop photovoltaic power generationprojects to increase the efficient utilization of renewableresourcesImplement a localized management strategy to increase theproportion of local employees and create more employmentopportunities for local peopleEstablish and implement a strict quality management system;actively build a cooperative research and developmentplatform with colleges and universitiesStrengthen the environmental protection management in thewhole process of construction projects in four bases andenhance the local sustainable development ability

Reduce coal consumption and greenhouse gas emissions bythe pilot construction of photovoltaic power generationprojects to increase the utilization of clean energyRegularly disclose financial and non-financial information toenhance our transparency; continue to strengthen theintegrity managementCommunicate with stakeholders and make survey of them toidentify their issues of concern and carry out correspondingactions

Adhere to equal pay for equal work for male and femaleemployees, support the career development of female employ-ees, and create a diverse and inclusive workplace environmentReduce energy consumption by adopting energy-saving equipment andapplying energy-saving and consumption-reducing technologies; reducecarbon dioxide emissions by upgrading environmental protection technologies

Visit the needy people and senior Party members to makethe public welfare activities benefit more people in needDevelop safe, eco-friendly and high-quality products toprovide consumers with a healthy living environment

Carry out consolation and assistance activities in pover-ty-stricken areas to reduce regional differencesImprove the service level, guarantee the service quality andsafeguard the legitimate rights and interests of consumersReduce the direct impact on the environment by reducingcarbon dioxide emissions in the course of productionStrengthen waste water treatment in production process andenhance the efficiency of waste water recycling

Set up the "OPPEIN Endowment for Students" and makedonations to help students to promote balanced education

Reduce inequality within and among countriesMake cities and human settlements inclusive, safe, resilientand sustainableEnsure sustainable consumption and production patternsTake urgent action to combat climate change and its impactsConserve and sustainably use the oceans, seas and marineresources for sustainable development

Strengthen the means of implementation and revitalize theGlobal Partnership for Sustainable Development

OPPEIN Home's responsibilities and actions

Goal 1Goal 2Goal 3Goal 4Goal 5Goal 6Goal 7Goal 8Goal 9Goal 10Goal 11Goal 12Goal 13Goal 14Goal 15Goal 16Goal 17

Respond to the United Nations Sustainable Development Goals (SDGs)

In 2015, the United Nations adopted the sustainable development issues in 2030 and put forward 17 sustainable developmentgoals, aiming at solving the development problems in three dimensions of society, economy and environment in an integrated wayby 2030 and turning to the sustainable development path, so as to propose a new action direction for global enterprises. With thevision of "building OPPEIN into a world-class outstanding home furnishing enterprise", OPPEIN Home actively responds to theUnited Nations Sustainable Development Goals (SDGs) and strives to become a model of sustainable development.

OPERATIONSteady forfar-reaching

Public welfare activitiesbenefit people's livelihood

PUBLIC

Employee-orientedcare

EMPLOYEE

Innovation of servicesand productsINNOVATION

Protect thenatural ecologyNATUREPARTNERSHIPDevelopment based onwin-win cooperation2021 Social Responsibility Report


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